6.1 Value-Added Analysis

  • Value added analysis consists of two stages:
    1. Value classification
    2. Waste elimination

Value Classification

  • Value added analysis = Technique for identifying unnecessary steps in a process, and eliminating them.
    • Step = Part of task, or handover between tasks.
  • Value Classification:
    1. Decompose tasks into steps
      • When no checklists are available, the process analyst needs to conduct interviews to decompose those steps from the task.
    2. Identify customer of the process, and what positive outcomes the customer seeks.
    3. Analyze each step in terms of the value it adds.
      • (VA) Value-adding steps = Directly contribute to positive outcomes of the process.
        • ex. Repairing a dryer.
      • (BVA) Business value-adding steps = Steps that are necessary or useful for the company that performs the process.
        • ex. Recording defect in a information system.
      • (NVA) Non-value adding = The step is none of the above.
  • Result:
    • Classification of steps in the equipment rental process (pg. 189)
    • Not everything is displayed.
Step Performer Classification
Fill request Site Engineer VA
Send request to clerk Site engineer NVA
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Open and examine request Works engineer BVA

Waste Elimination

  • Strive to minimize/eliminate the NVA steps.
    • Some steps can be eliminated via automation.
    • Some steps can be eliminated by reducing the control steps.
      • Weighted against possible consequences.

  • Before eliminating BVA steps, these steps should be mapped to business goals and requirements .

    • ex. Regulations.

  • "What is the minimum amount of work required in order to perform the process to the satisfaction of the customer, while fulfilling the goals and requirements associated to the BVA steps in the process?"