the lean enterprise value analysis/ flow analysis lean foundations continuous improvement training...
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The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseValue Analysis/ Flow Analysis
Lean Foundations
Continuous Improvement Training
Lean Foundations
Continuous Improvement Training
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Motion
Waiting time
Overproduction
Processing time
Defects
Inspection
Transportation
Problems/ 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 handling
Types of Waste (7W’s)Value
Added
Non- Value Added,but necessary
Waste
Focus on reduction
Peo
pl
eP
roce
ss
Pro
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The Causes of Waste in most ProcessesThe Causes of Waste in most Processes
Value AnalysisValue AnalysisOverviewOverview
Value AnalysisValue AnalysisOverviewOverview
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Methodology For Reducing Muda Methodology For Reducing Muda (waste)(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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DefinitionsDefinitionsDefinitionsDefinitions
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 )
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VA/ FA StepsVA/ FA StepsVA/ FA StepsVA/ FA Steps
Step 1
– 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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VA/ FA StepsVA/ FA StepsVA/ FA StepsVA/ FA Steps
Step 2
– 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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VA/ FA StepsVA/ FA StepsVA/ FA StepsVA/ FA Steps
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?
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VA/ FA StepsVA/ FA StepsVA/ FA StepsVA/ 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
Value AnalysisValue Analysis Investigative TechniquesInvestigative Techniques Value AnalysisValue Analysis Investigative TechniquesInvestigative Techniques
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VA/ FA QuestionsVA/ FA QuestionsVA/ FA QuestionsVA/ 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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VA/ FA QuestionsVA/ FA QuestionsVA/ FA QuestionsVA/ 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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VA/ FA QuestionsVA/ FA QuestionsVA/ FA QuestionsVA/ 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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VA/ FA QuestionsVA/ FA QuestionsVA/ FA QuestionsVA/ 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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VA/ FA QuestionsVA/ FA QuestionsVA/ FA QuestionsVA/ 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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VA/ FA QuestionsVA/ FA QuestionsVA/ FA QuestionsVA/ FA Questions
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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VA/ FA Best PracticesVA/ FA Best PracticesVA/ FA Best PracticesVA/ 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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VA/ FA Best PracticesVA/ FA Best PracticesVA/ FA Best PracticesVA/ 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
Value EngineeringValue EngineeringOverviewOverview
Value EngineeringValue EngineeringOverviewOverview
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VA/ VE = Continuous ‘Cost’ ImprovementVA/ VE = Continuous ‘Cost’ Improvement
Attacks the Total Cost of Producing a New Product
Assembly Costs Assembly Time Parts Handling Levels of
Assembly Labor Rate Volume Design Standardization
Tooling Costs• Volume• Process• Tooling Material• Dimensions &
Tolerances• Standardization
Part Costs• Material• Finishing• Design• Dimensions &
Tolerances• Tooling Type• Process• Volume• Standardization• Packaging
OverheadCosts
ManufacturingCosts
PartCosts
= AssemblyCosts
+ ToolingCosts
+ + Overhead
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Approach for Reducing CostsApproach 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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Design for Assembly BenefitsDesign for Assembly Benefits
Fewer Drawings Less Assembly Less Handling, Inventory Less Inspection Improved Quality (Fewer Problems) Less Purchasing
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Methodologies for Reducing Waste 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.
The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseValue Analysis/ Flow Analysis
Lean Foundations
Continuous Improvement Training
Lean Foundations
Continuous Improvement Training