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  • The Lean EnterpriseValue Analysis/ Flow AnalysisLean FoundationsContinuous Improvement Training

  • MotionWaiting timeOverproductionProcessing timeDefectsInspectionTransportationProblems/ Causes

    Incorrect layoutsLack of proximity of machinesOff-line resources

    Waiting workers, machines, materialsLong set-ups and lead times

    Large batches, raw material stocksHigh WIP, finished goods stocksMaking for the sake of itIgnoring customer demands

    Long cycle times- process, itselfReduced efficiency- over processingHigh overall lead times

    Long delays for rectificationCostly reworkDissatisfied customers

    Approvals of approvalsHigh number of verification stepsReliance- Mass inspection techniques

    Unnecessary movementExtra handlingTypes of Waste (7Ws)Value AddedNon- Value Added,but necessaryWasteFocus on reductionPeopleProcessProductThe Causes of Waste in most Processes

  • Value AnalysisOverview

  • 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

  • DefinitionsValue AddedAny 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 AddedAny activity that doesnt 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 stepsMovement of inventory, paperwork, etc.Re-work, corrections, etc.Storage between operations, batching inventoryQueue Wait times, delay times, idle times (reference: Time-Value Analysis )

  • VA/ FA StepsStep 1Define and describe process to be analyzedProject charterClearly define goalsCost benefit analysisSignatures Champion, Controller, Belt (minimum)Time Frame for completion

  • VA/ FA StepsStep 2Map the process and determine major and minor activitiesStart with the customerCustomer receiving department of an output, the next person in line, or the (external) CustomerConduct detail inquiry of what occursUse investigative questions

  • VA/ FA StepsStep 3Identify value-added activities or processesUtilize investigative questionsWhat 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?

  • VA/ FA StepsStep 4Calculate the time spent on value-added activities or processes (Value Stream Map)Spread Sheet Analysis (VA to NVA ratios)Time-Value Analysis

  • Value Analysis Investigative Techniques

  • VA/ FA QuestionsDECISION POINTSDoes 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?

  • VA/ FA QuestionsVALUE ADDEDDoes 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 customers requirements and expectations?Would the customer be willing to pay for that step of the process if the customer knew it existed?

  • VA/ FA QuestionsACTIVITY FLOWDoes the process move frequently back and forth between various units of the organization?Can any of these movements be eliminated?

    DUPLICATION OF ACTIVITYAre some of the activities duplicated or repeated?Can any activities be removed from the process while meeting the customers valid requirements for outputs?

  • VA/ FA QuestionsTIME REQUIREDWhat 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?

  • VA/ FA QuestionsMATERIALSAre 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?

    TECHNOLOGYWhat is the cutting edge?Is there related technology which could be adapted to improve this process?

  • VA/ FA QuestionsPROCESS USERSWhy 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?

  • VA/ FA Best PracticesKEY POINTSASK 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

  • VA/ FA Best PracticesKEY 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

  • Value EngineeringOverview

  • VA/ VE = Continuous Cost ImprovementAssembly CostsAssembly TimeParts HandlingLevels of AssemblyLabor RateVolumeDesignStandardizationAttacks the Total Cost of Producing a New ProductTooling CostsVolumeProcessTooling MaterialDimensions & TolerancesStandardizationPart CostsMaterialFinishingDesignDimensions & TolerancesTooling TypeProcessVolumeStandardizationPackagingManufacturingCostsPartCosts=AssemblyCosts+ToolingCosts++Overhead

  • Approach for Reducing CostsDesign for Assembly (DFA)A Group of Practices which Minimizes Manufacturing CostsMinimize the Number of PartsAvoid Separate FastenersEstablish Assembly SurfacesEliminate or Simplify AdjustmentsReduce Handling

  • Design for Assembly BenefitsFewer DrawingsLess AssemblyLess Handling, InventoryLess InspectionImproved Quality (Fewer Problems)Less Purchasing

  • Methodologies for Reducing Waste Value EngineeringOccurs 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 AnalysisOccurs on After the Design has been Completed or on Carryover Products.Existing Designs are Evaluated to Increase Function or Reduce Cost.

  • The Lean EnterpriseValue Analysis/ Flow AnalysisLean FoundationsContinuous Improvement Training

    Welcome and introductions. Allow 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.)freeleansite.comThis 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 forNon-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 essentialProgressive 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. freeleansite.comfreeleansite.comfreeleansite.com3 unique parts of the VA definition 1) TRANSFORMS PRODUCT/ SERVICE 2) DONE RIGHT the FIRST TIME 3) CUSTOMER WILLING TO PAY


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