Value Added Activity

In 2002, the Parliamentary Secretary to the Treasurer requested the Productivity Commission, the government s review and advisory body on microeconomic policy and regulation, to investigate the rationale, effectiveness and efficiency of the programme. The commission s report recommended that there should be a programme to follow PUP but that it should be modified to be oriented to reward only R D investment, not production value-adding activity. 

Not considered a value-added activity. Costs too much and offers no financial reward. 

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. 

Ergonomics is seen today as a vital component of the value-adding activities of the company, with weU-documented cost-benefit aspects of the ergonomics management programs (GAO 1997). A company must be prepared to accept a participative culture and utilize participative techniques in implementation of work design principles. The job design-related problems and consequent interven-... 

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. 

Value Added. Activity of industry is affected by corrosion through inputs such as costs of research and development and technical services. When the coefficients (industry indicators) in the lO matrix are modified to reflect the absence of corrosion, the lO matrix can be used to indicate the inputs needed to produce... 

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. 

Density is the measure of workspace to total space, that is, how much of the factory floor is occupied by value-adding activities as a proportion of total space. Density should be as high as possible. 

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 ... 

BPR is normally seen as the radical reshaping of existing business processes linked with the application of IT technology to map and remodel internal processes and systems so that they are less complex and easier to operate. BPR is essentially an attack on silo or functional management structures within organisations and is focused on waste removal and the focus on value adding activities. 

Operational capacity is the maximum level of value-adding activity that a process can achieve over a given period under normal operating conditions. Measuring capacity is problematic owing to the complexity of resoiuces. Input and output measures are those most commonly utilised. In practical terms, it... 

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

China s desire for increased self-sufficiency in key commodity chemicals and higher value added activities in downstream segments. 

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