1. Value Analysis/ Flow Analysis
The Lean Enterprise
Value Analysis/ Flow Analysis
Welcome and introductions. Allow ½ hour to cover this material. Module provided as a checklist for investigative analysis after Mapping.
(Please retain the free lean site reference with the materials.)
Lean Foundations
Continuous Improvement Training
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2. The Causes of Waste in most Processes
Focus on reduction
Types of Waste
(7W’s)
Problems/ Causes
Incorrect layouts
Lack of proximity of machines
Off-line resources
Waiting workers, machines, materials
Long set-ups and lead times
Large batches, raw material stocks
High WIP, finished goods stocks
Making for the sake of it
Ignoring customer demands
Long cycle times- process, itself
Reduced efficiency- over processing
High overall lead times
Long delays for rectification
Costly rework
Dissatisfied customers
Approvals of approvals
High number of verification steps
Reliance- Mass inspection techniques
Unnecessary movement
Extra handling
Value Added
Waste
Motion
Waiting time
Overproduction
Processing time
Defects
Inspection
Transportation
People
Non- Value Added,
but necessary
Process
This is probably the most important principle and is based upon the categorization of activities into the following:
Value added - Those activities that: 1) Alter the product; 2) Are completed right the first time and 3) The customer is prepared to pay for
Non-value added - Those activities that are essential, but add no value to the product (payroll preparation or in-process quality inspection are examples)
Waste - Those activities which do not add value and are not essential
Progressive reduction of non-value added or elimination of waste activities places a greater focus on what is important to the customer. The waste activities can be addressed in several ways: through improved process layout, better product design from a manufacturability standpoint, improved production scheduling, and more efficient shop floor production techniques through adoption of best practice principles.
In the following viewcells, which focus on the best practices in use today in manufacturing, the common thread is the focus on the elimination of waste.
In JIT manufacturing, you will often hear the term "continuous improvement" or "continuous process improvement." Continuous improvement aims at the gradual elimination of waste through improvements in product design, process design, production planning and production control. This concept is applied seriously by progressive manufacturers to their internal operations and with respect to their suppliers as well, whom they expect to adopt continuous improvement programs to improve the quality and reduce the costs of raw materials.
Product
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3. Value Analysis Overview
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4. Methodology For Reducing Muda (waste)
Value-Added Flow Analysis (VA/ FA)
A Group of Practices (using rigor and discipline) which evaluates the individual steps or activities in a process to determine if they ‘add value’ to the output
VA/ FA can be used to improve the process or aid in the creation of a new process
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5. Definitions Value Added
Any activity or operation performed that helps transform a product or service from its raw state into its finished form.
Completed right the first time.
Any activity customer is prepared to pay for. Activity required to ensure that a product or service is delivered in conformance to specification.
Non-Value Added
Any activity that doesn’t help to transform a product or service into its final 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 )
3 “unique” parts of the VA definition…
1) TRANSFORMS PRODUCT/ SERVICE
2) DONE RIGHT the FIRST TIME
3) CUSTOMER WILLING TO PAY FOR
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6. VA/ FA Steps Define and describe process to be analyzed
Project charter
Clearly define goals
Cost benefit analysis
Signatures – Champion, Controller, Belt (minimum)
Time Frame for completion
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7. VA/ FA Steps Map the process and determine major and minor activities
Start with the customer
Customer – receiving department of an output, the next person in line, or the (external) Customer
Conduct detail inquiry of what occurs
Use investigative questions
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8. VA/ FA Steps 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?
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9. VA/ FA Steps
Step 4
Calculate the time spent on value-added activities or processes (Value Stream Map)
Spread Sheet Analysis (VA to NVA ratios)
Time-Value Analysis
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10. Value Analysis Investigative Techniques
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11. VA/ FA Questions
DECISION POINTS
Does the decision point represent as appraisal, a review, or an inspection which could be eliminated if prevention were built into the process at an earlier point?
Is this a necessary decision or can the process proceed without a decision here?
Is there repetition of decision within the process?
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12. VA/ FA Questions
VALUE ADDED
Does each activity within the process add value to the output, the product, or service which the customer receives?
Is the activity necessary to meet the customer’s requirements and expectations?
Would the customer be willing to pay for that step of the process if the customer knew it existed?
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13. VA/ FA Questions
ACTIVITY FLOW
Does the process move frequently back and forth between various units of the organization?
Can any of these movements be eliminated?
DUPLICATION OF ACTIVITY
Are some of the activities duplicated or repeated?
Can any activities be removed from the process while meeting the customer’s valid requirements for outputs?
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14. VA/ FA Questions
TIME REQUIRED
What is the time required for each of the steps or activities within the process?
Can the time be shortened for any of the steps or activities?
Is unnecessary time wasted on transportation, storage, or delays?
How much time is used between activities?
Can time activities be reduced?
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15. VA/ FA Questions
MATERIALS
Are the supplies and materials used in this activity effective?
Have new materials been developed that would perform the function at less cost?
Has there been any price, delivery, or quality problems?
TECHNOLOGY
What is the cutting edge?
Is there related technology which could be adapted to improve this process?
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16. VA/ FA Questions Why are you doing this?
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 performing the activity correctly?
Where do you get the inputs you need to perform this activity?
What types of errors come to you?
Do you have any problems related to this?
What makes the job difficult?
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17. VA/ FA Best Practices
KEY POINTS
ASK the person if they have any suggestions on how to improve to process!
Value can be viewed as a relationship of functionality or effectiveness over cost
VALUE = Functionality
Cost
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18. VA/ FA Best Practices
KEY POINTS
The VALUE of the output can increase by either reducing costs or by increasing effectiveness
EVALUATE alternatives based on their impact on both efficiency and effectiveness
Achieving a minor increase in functionality at a major cost is not justified
A major increase in functionality with a minor cost could be acceptable
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19. Value Engineering Overview
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20. VA/ VE = Continuous ‘Cost’ Improvement
Attacks the Total Cost of Producing a New Product
Overhead
Costs
Manufacturing
Costs
Part
Costs
Assembly
Costs
Tooling
Costs = + + +
Overhead
Part Costs
Material
Finishing
Design
Dimensions & Tolerances
Tooling Type
Process
Volume
Standardization
Packaging
Assembly Costs
Assembly Time
Parts Handling
Levels of Assembly
Labor Rate
Volume
Design
Standardization
Tooling Costs
Volume
Process
Tooling Material
Dimensions & Tolerances
Standardization
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21. Approach for Reducing Costs
Design for Assembly (DFA)
A Group of Practices which Minimizes Manufacturing Costs
Minimize the Number of Parts
Avoid Separate Fasteners
Establish Assembly Surfaces
Eliminate or Simplify Adjustments
Reduce Handling
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22. Design for Assembly Benefits
Fewer Drawings
Less Assembly
Less Handling, Inventory
Less Inspection
Improved Quality (Fewer Problems)
Less Purchasing
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23. 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 Same Function can be Provided at a Reduced Cost.
Maintains the Focus on Customer Satisfaction.
Value Analysis
Occurs on After the Design has been Completed or on Carryover Products.
Existing Designs are Evaluated to Increase Function or Reduce Cost.
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24. Value Analysis/ Flow Analysis
The Lean Enterprise
Value Analysis/ Flow Analysis
Lean Foundations
Continuous Improvement Training
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