Sep 9, 2008

Value-added (VA) and non-value-added (NVA) - 2

As my discussion in last blog about value-added, all the processes can be classified as value-added and non-value-added process. From here, we can also segment the non-value-added process in necessary non-value-added and unnecessary non-value-added process. I will explain the classification, and to see how to improve here below.

Sometimes, without the supporting of non-value-added process, the value-added process can not be executed. For instant, refilling gas for car, the value-added process is only the period of gas refilling into oil tank. The action of moving the car the gas station is not a value-added process, or we can say it is non-value-added process. However, it is no way to refill the car if the car is out of gas station. Therefore, we are going to classify the non-value-added process to see which part is necessary.

1. We can seperate the processes into two parts. The car move from the existing location to gas station is necessary, otherwise, it is no way to refill, but we can find a closer gas station or a shortcut to go to the gas station. It reduces time because of short distance travelling but it is no way to eliminate. Therefore, we can say the car moving to gas station is necessary non-value-added process, it can be reduced but can not be eliminated.

2. The second part, when the car go into the gas station, the driver needed to found a suitable stop for moving in for refill. The time consumed in this process is not necessary, or we can say it is unnecessary non-value-added process. The gas station would be designed to reduce the time of the driver to find the suitable stop by clear visual identication and layout. If you drive to refill before, you should remember you always needed to stop a moment to see where was the suitable place to stop. I did that every time in China because the gas station in China is really big. Those time of seeking position can be eliminated or reduce it trend to zero. Therefore, the non-necessary non-value-added process should be removed or eliminated.
In simply say, reduce necessary NVA and elminate unecessary NVA. It is the thoery of process improvement but we can to clearly identify them. According to the explanation above, it makes us more easiler to handle the improvment during the kaizen project.