Post on 08-Apr-2018
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Class Presentation PPT: NVA & VA
Welingkar/Mukundan/PGPMS 1
Efficiency
Any production method relies on efficiency this can
be viewed in different ways:
Productivity a measurement of output per unit of
the factor used (labour, capital or land)
Total Output
Productivity = -------------------
Units of Factor
Technical Efficiency output produced using the
fewest possible inputs
Productive Efficiency output produced at the
lowest possible cost
Efficiency
Production decisions involve deciding methodsfor new production runs and analysis of existing
methods.
Decisions may include:
Substitute machinery for labour?
Use of new technology?
Organisation of the production layout?
Change of production method?
What is MUDA?
Muda means any wasteful activity or anyobstruction to smooth flow of an activity
Activity = Work + Muda
Expenditure = Cost + waste
That is, for each activity there is expenditure and every
work there is a cost associated. Any expenditure on
the Muda is a waste!
What is Mura?Mura = Inconsistencies in the system
Happens sometimes?
Happens some places
Happens to some people
One side is ok; the other side is not ok
What is Muri?Muri = Physical Strain
Bend to work?
Push hard?
Lift weight?
Repeat tiring action?
Wasteful walk?
All this is Muri
8/7/2019 003NVA
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Class Presentation PPT: NVA & VA
Welingkar/Mukundan/PGPMS 2
Removing Waste
Shrinking Lead Times
Order Lead Tim es Manufacturing Lead Times Deliver y L ead Time s
Manufacturing Lead TimesOrder Lead Times Delivery Lead Times
Reducing the overall time from receiving the order to delivering theproduct makes your company more responsive to the customer.
This can become the deciding factor when the customer makes their
selection.
As can be seen, manufacturing is only one part of the entire
process. Inputting, processing, and issuing orders is an area for
improvement, as well as, assembly, loading and delivery to thecustomer`
Removing Waste
Wheres the Time in Lead Time
This timeline represents an overall lead-time, with very littletime spent on adding value to the product.
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
Improvement EffortsConcentrated on reducing VA
time, with no attention given to
NVA.
Non-Value Added Time (NVA)
99% of Total Lead time
VA
1/2 %
Results of Common Improvement efforts, did not improve
response time. VA time is reduced, but, the costs for those
improvements in lead time was substantial.
Common
Removing WasteWheres the Time in Lead Time
NVA Time
95% of Total Lead time
VA
5%
When we look at attacking the NVA Activities in the Timeline
and compare that to the original timeline:
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
This shows a 5X improvement in lead timeGreat Job!!
Greatest Opportunities are actually here!
Focus on Reducing NVA
NVA Reduction is a Non Traditional Approach
Major Impact on Lead Time and QCD
Value-Add Activity
Non-Value-Add Activity
Some examples NVA Activities:
WalkingWaiting on
machine cycle
Transporting
parts
Generating
useless reports
THE GOAL IS TO ELIMINATE THE
NON-VALUE ADDED ACTIVITIES.
Unnecessary
motion
Unnecessary
stock on hand
SHIFT MINDSET
CURRENTTHINKING
REQUIRED
THINKING
WASTE NOT DEFINED
REACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENT
WASTE IS "TANGIBLE
IDENTIFY MANY SMALL OPPORTUNITIES
-LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT
WASTETYPES
OFWASTE
Correction
Processing
Motion
Waiting
Inventory
Transportation
Over-Production