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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

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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