eliminating non value adding activities

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  • 1. Eliminating nonvalue addingactivities

2. FICCICEEliminating non value adding activitiesAn important method of doing continuousimprovement is to eliminate Waste and nonvalue adding activities from the organization.Mismanagement of time constitutes one ofthe most important reasons of failure ofimprovement initiatives in any organization. 3. FICCI CEEliminating non value adding activitiesThe key to continuous improvement is not aboutdriving people and machines faster, but about theelimination of waste.Waste is often confused with materials ruined ordiscarded or time which could obviously have beenbetter spent. However this view is only partial.Waste is any operation which does not addvalue. 4. FICCICE Sources of unproductive Time.Waiting time.Set - up times.Time spent on over production .Avoidable Transportation.Ineffective communication.Inopportune timing of activity. 5. FICCI CETime spent on non value adding activitiesThe organization must therefore eliminatenon value adding activities from the systemand the time saved from these activitiesmust be utilized in improvement activities.A typical matrix of how the organizationspends time is given on the next slide. 6. Matrix of organizational activitiesImprovement activitiesPositive activitiesTime spent: 10% Time spent : 60%Negative activitiesIneffective activities Time spent: 10% Time spent: 20% 7. Matrix of organizational activitiesImprovement activities Positive activities Commitment to quality Dealing effectively with:- Customer driven approach Customer queries Willingness to improve Rush orders Effective problem solving Surge of demand Improvement targets Staffing shortages Information sharing Resource shortages Company wide approachNegative activitiesIneffective activities Avoiding quality problems Chasing information Interdepartmental rivalry Misdirected queries Secrecy Unproductive meetings Putting self needs before team needs Seeking authority to act Defensiveness Bureaucracy Ineffective procedures 8. FICCICETime spent on non value adding activitiesThus if an organization is able to eliminate itsineffective and negative activities from thematrix, it is able to save 30% time which canstraight away be utilized in its improvementactivities as depicted on the next slide. 9. Matrix of organizational activitiesImprovement activitiesPositive activitiesTime spent: 40% Time spent : 60% Negative activities Ineffective activitiesTime spent: nil Time spent: nil 10. FICCI CE

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