Non-value-added activities

Ensure that time is the driving force not budgets. To achieve this make sure that non-value added activities are eliminated. Going faster on every topic will not be enough there will be a need to eliminate the less fruitful activities. Whilst this is happening, quality or safety must not be compromised. The procedures inherent in the continuous improvement methodology of TQM should be employed wherever possible. 

Reducing the cost of sales by removing non-value-added activities (e.g., quality inspections, exception handling, rework, and scrap). 

I rocess Maps are basic flowcharts that depict the progression of steps, decisions, and handoffs involved in transitioning a new product or service from paper (its design) into production/ delivery to customers. Value Stream Maps do this, too, but they add a level of sophistication related to time and the identification of value-added versus non-value-added activity (waste identification). 

Identify the value stream for each product, service, or solution—and eliminate, consolidate, or streamline all steps that are wasteful or include waste (non-value-added activity). 

Depending on how complex your process is, you may need different Process orA/alue Stream Maps—one that provides a high-level view of the process, and any number of more detailed maps that document the subprocesses. In each case, you should attempt to eliminate or minimize non-value-added activities and wasted motion, and strive for one-piece flow. 

Transportation and distribution play a critical role in the successful planning and implementation of today s supply chains. Although many view the transportation of goods as a non-value-added activity, effective transportation planning and execution will not only enhance a company s productivity but will also increase customer satisfaction and quality. 

Activity-based budgeting is ideal for tracking plant engineering functions. Identifying activities actually performed along with the cost drivers aUows real-time information to be generated and problem areas identified quickly. Cost distributions between plant engineering and other departments can be done more equitably, and non-value-added activity can be spotted more easUy. 

Use activity-based costing to identify and eliminate non-value-added activity. 

This has resulted in less non value-added activities, which is necessary in lean to increase flow. A lean culture is also promoted where everyone ought to be committed in adopting the principles, otherwise the benefits would not be fully realized if the company s employees do not cooperate. Recommendations from the students also stated that additional metrics and transformation strategies be explored to further see the benefits of lean outside of just reducing WIP and lead time. Health and safety metrics can be added since lean tools can also be used to improve health and safety measures. Furthermore, with the growing trend of going green, lean can be applied to reduce environmental impacts and... 

FVA uses standard forecast performance measurements (metrics) to identify value-added or non-value-added activities in the process that contribute to the accuracy or inaccuracy of the demand forecast. The result is a mechanism that reduces non-value-added touch points, thus improving the overall accuracy. Companies that have successfully implemented FVA have experienced significant improvement in overall forecast accuracy and reduced cycle times. If an activity does not improve the accuracy of the statistical baseline forecast, it should be eliminated, or minimized (simplified), to reduce cycle time and resources. 

The wastes noted above are commonly referred to as non-valued-added activities, and are known to Lean practitioners as the Eight Wastes. Taiichi Ohno (co-developer of the Toyota Production System) suggests that these account for up to 95% of all costs in non-Lean manufacturing environments. These wastes are ... 

Check-sheets - indicate non-conformities, machinery breakdown, and non-value-adding activities through a simple recording of data... 

The main purpose of this research is to find the optimal number of operators. We assume that the entire staffs can work at the same constant man-hour level which is 1 h per person per period. The number of operators can be interpreted as total man-hours available during each one-hour period. Subsequently, as shown in Eq. 9, the number of operator in each shift can be calculated by the summation of total man-hour for inbound call, outbound call, administration tasks, and non-value added activities. 

Figure 14.2 Non-value adding activities. (Note Three Separate Computer Systems.)...

The initiatives and processes in lean project management are deriving benefits from two sources. Firstly, the traditional approach of critical path scheduling, Basu (2004, p. 129) is to optimize time for completion and secondly derived from the lean tools applied in supply chain management (such as value stream and process mapping) to reduce procurement lead-time and non-value adding activities. 

Flow process chart A flow process chart that sets out the sequence of the flow of a product or a procedure by recording all the activities in a process. The chart can be used to identify steps in the process, value adding activities and non-value adding activities. 

Being world class involves two opposite but equal activities eliminating all waste and focusing on value-added functions. Identilying non-value-added activities on a factory floor has always been relatively easy, but how do we identify non-value-added activities in our own lives Here are a couple of guidelines ... 

The value stream incorporates all the events and activities in a product or a process s supply chain that would affect those items to which the customer gives value. Which brings us to the point where we need to differentiate between value-added and non-value-added activities. 

Non-value-added activity any support activity that does not directly add value to the product or service. Activities that add cost or time to the process, such as control systems, are non-value added. 

For example, drilling a hole is value added. But positioning the item to be drilled, changing the drill bit, cleaning the workstation, moving the item to inventory, and so on, are all non-value-added steps. In a service environment, value added is the performing of the service. Non-value added includes all the support functions that occur and that prepare the environment to perform the service. In Value Stream Mapping (VSM) we try to differentiate between value added and non-value-added activities. 

Non-Value Added Activities or actions taken that add no real value to the product or service, making such activities or action a form of waste. 

Value-Added Analysis With this activity, a process improvement team strips the process down to its essential elements. The team isolates the activities that in the eyes of the customer actually add value to the product or service. The remaining non-value-adding activities ( waste ) are targeted for extinction. Value Chain Activities outside of your organization that add value to your final product, such as the value-adding activities of your suppliers. 

Lean focuses on the elimination of non-value-added activities (the elimination of waste). 

There is also a growing recognition that time compression in the supply chain not only enhances customer service but can also reduce costs through the reduction of non-value-adding activities. This is an issue that we shall return to in Chapter 6. 

On the other hand, non-value-adding time is time spent on an activity whose elimination would lead to no reduction of benefit to the customer. Some non-value-adding activities are necessary because of the current design of our processes but they still represent a cost and should be minimised. 

The effect that such groups can have is often dramatic. Because all the key people in the order fulfilment process are brought together and linked around a common entity - the order - they are better able to sort out problems and eliminate bottlenecks. Order cycle times can be dramatically reduced as teamwork prevails over interdepartmental rivalry. New ways of dealing with problems emerge, more non-value-added activities are eliminated and customer service problems - when they arise - can quickly be resolved, since all the key people are in close connection with each other. 

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