valued analysis methodology
DESCRIPTION
Methodology to detect Value and non-value activities in a industryTRANSCRIPT
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Valued Analysis
7 waste types
People
Motion
Incorrect layouts
Lack of proximity of machines
Off-line resources
Waiting TimeWaiting workers, machines, materials
Long set-ups and lead times
Process
Overproduction
Large batches, raw material stocks
High WIP, finished goods stocks
Making for the sake of it
Ignoring customer demands
Processing Time
Long cycle times- process, itself
Reduced efficiency- over processing
High overall lead times
Defects
Long delays for rectification
Costly rework
Dissatisfied customers
Inspection
Approvals of approvals
High number of verification steps
Reliance- Mass inspection techniques
ProductTransportation
Unnecessary movement
Extra handling
Definitions
Value Added
Any activity or operation performed thathelps transform a product or servicefrom its raw state into its finished form.
Completed right the first time.
Any activity customer is prepared to payfor. Activity required to ensure that aproduct or service is delivered inconformance to specification.
Non-Value Added
Any activity that doesn’t help totransform a product or service into itsfinal form. Activity not performed right.Activity customer not willing to pay for.
This includes:
Unnecessary process steps
Movement of inventory, paperwork, etc.
Re-work, corrections, etc.
Storage between operations, batching inventory
Queue –
Wait times, delay times, idle times(reference: Time-Value Analysis
VA/FA Steps
Step 1Define and describe process to be analyzed
Project charter
Clearly define goals
Cost benefit analysis
Signatures – Champion, Controller, Belt (minimum)
Time Frame for completion
Step 2
Map the process and determine majorand minor activities
Start with the customer
Customer – receiving department of anoutput, the next person in line, or the(external) Customer
Conduct detail inquiry of what occurs
Use investigative questions
Step 3
Identify value-added activities or processes
Utilize investigative questions
What does it do?
Why does it work?
What must it do or accomplish?
How does it relate to other systems,units, or components?
What requires this step to be done?
Step 4
Calculate the time spent on value-addedactivities or processes (Value StreamMap)
Spread Sheet Analysis (VA to NVA ratios)
Time-Value Analysis
Destination Points
Does the decision point represent asappraisal, a review, or an inspectionwhich could be eliminated if preventionwere built into the process at an earlierpoint?
Is this a necessary decision or can theprocess proceed without a decision here?
Is there repetition of decision within the process?
Value Added
Does each activity within the processadd value to the output, the product, orservice which the customer receives?
Is the activity necessary to meet thecustomer’s requirements andexpectations?
Would the customer be willing to pay forthat step of the process if the customerknew it existed?
Activity Flow
Does the process move frequently backand forth between various units of theorganization?
Can any of these movements be eliminated?
Duplication of Activity
Are some of the activities duplicated or repeated?
Can any activities be removed from theprocess while meeting the customer’svalid requirements for outputs?
Time Required
What is the time required for each of thesteps or activities within the process?
Can the time be shortened for any of thesteps or activities?
Is unnecessary time wasted ontransportation, storage, or delays?
How much time is used between activities?
Can time activities be reduced?
Materials
Are the supplies and materials used inthis activity effective?
Have new materials been developed thatwould perform the function at less cost?
Has there been any price, delivery, orquality problems?
Tecnolgy
What is the cutting edge?
Is there related technology which couldbe adapted to improve this process?
Process Users
Why are you doing this?
What document controls this activity?
How were you trained?
Was the training adequate?
How do you know you are performingthe activity correctly?
Where do you get the inputs you need toperform this activity?
What types of errors come to you?
Do you have any problems related to this?
What makes the job difficult?
Key Points
ASK the person if they have anysuggestions on how to improve toprocess!
Value can be viewed as a relationship offunctionality or effectiveness over cost
VALUE=functionality/Cost
The VALUE of the output can increase byeither reducing costs or by increasingeffectiveness
EVALUATE alternatives based on theirimpact on both efficiency andeffectiveness
Achieving a minor increase infunctionality at a major cost is notjustified
A major increase in functionality with aminor cost could be acceptable
VA/ VE = Continuous ‘Cost’ImprovementManufacturing Cost
Part Cost
Material
Finishing
Design
Dimensions & Tolerances
Tooling Type
Process
Volume
Standardization
Packaging
Assembly Cost
Assembly Time
Parts Handling
Levels of Assembly
Labor Rate
Volume
Design
Standardization
Tooling Cost
Volume
Process
Tooling Material
Dimensions & Tolerances
Standardization
Overhead
Approach for Reducing Costs
Design for Assembly (DFA)
A Group of Practices which MinimizesManufacturing Costs
Minimize the Number of Parts
Avoid Separate Fasteners
Establish Assembly Surfaces
Eliminate or Simplify Adjustments
Reduce Handling
Design for Assembly Benefits
Fewer Drawings
Less Assembly
Less Handling, Inventory
Less Inspection
Improved Quality (Fewer Problems)
Less Purchasing
Methodologies for Reducing Waste
Value Engineering
Occurs During the Design Process.
Examines the Function of the Design.
Documents the Cost of Each Function.
Explores Alternatives for how the SameFunction can be Provided at a ReducedCost.
Maintains the Focus on Customer Satisfaction.
Value Analysis
Occurs on After the Design has beenCompleted or on Carryover Products.
Existing Designs are Evaluated toIncrease Function or Reduce Cost.
Valued Analysis.mmap - 13/06/2014 - Mindjet