Qualitative process analysis

Unveiling Value: A Qualitative Analysis of Process Efficiency

As we set out on the process improvement journey, it is important to visualize how it all looks like from the customer’s perspective. Be it in the information-rich process descriptions or Visual Stream Mapping in the current state, this is all centered around figuring out where the ‘added value ‘ is and establishing the lurking wastes that are embedded within processes. Indeed, it is a waste that is ultimately the root cause of the problems we are experiencing.

Understanding Value-Added, Business Non-Value Add, and Non-Value Added Activities

To gain clarity on where value lies within a process, it’s important to categorize different steps. A Value Stream Mapping (VSM) exercise or any process mapping effort will often use acronyms to differentiate between the types of activities that make up the workflow:

1. Value-Added (VA):
   These activities directly contribute to the creation of a product or service that the customer is willing to pay for. VA activities are the essential elements of a process, creating worth and delivering the end product or service.
2. Business Non-Value Add (BNVA):
   While these activities do not directly add value to the customer, they are necessary for the business to function properly. These can include tasks like compliance, regulatory checks, or quality control that the organization cannot bypass, even if they do not create direct value for the customer.
3. Non-Value Added (NVA):
   These are steps that consume resources but add no value, neither to the customer nor to the business. These are typically classified as waste, or muda in Lean terminology, and should be reduced or eliminated. Examples of NVA activities include unnecessary paperwork, waiting times, or defects that require rework.

Waste Identification in Lean Methodology: Key Considerations and Questions

In Lean methodology, one of the key principles is the elimination of waste, which is categorized into three types: Muda (waste), Mura (unevenness or variation), and Muri (overburden). Among these, the focus is often on muda, or the eight types of waste:

1. Transportation: Unnecessary movement of materials or products.
2. Inventory: Excess products or materials that are not being processed.
3. Motion: Unnecessary movement by employees.
4. Waiting: Delays caused by idle workers or processes.
5. Overproduction: Producing more than is needed or before it is required.
6. Overprocessing: Doing more work than necessary.
7. Defects: Effort spent fixing errors or reworking products.
8. Unused talent: Underutilization of people’s skills and creativity.

To begin waste identification, it is crucial to ask meaningful questions regarding each step of the process. The following questions can help reveal inefficiencies:

• Does this step create material value for the customer?
  If not, can it be eliminated or restructured to provide value?
• Are there accumulations of supplies or work-in-progress (WIP) that indicate inefficiency?
  Excess inventory or WIP can suggest inefficiencies that slow down the process.
• Is this step generating waste or unusable products?
  Steps that consistently produce defects or substandard products need to be reassessed for quality improvements.
• Is this step performing as expected?
  Does the process meet its intended purpose, or is it causing bottlenecks?
• Are the necessary tools and materials within easy reach, and are they properly utilized?
  Inefficient workspace layout or improper use of tools can slow down a process.
• What is the cycle time of this step compared to its capacity?
  If the cycle time is too long, it may indicate that the step is underperforming or needs adjustment.
• Is this step causing employees or machines to wait?
  Idle time is wasted time. Minimizing waiting periods can significantly boost efficiency.
• How is time managed when switching between products or services?
  Long changeover times between tasks can create bottlenecks that hinder the flow of production.
• Can the process flow smoothly, or is this step creating unnecessary interruptions?
  A smooth, continuous flow is key to maintaining process efficiency. Interruptions often signal a problem that needs to be addressed.

Prioritizing and Addressing the Root Causes of Inefficiency

After identifying inefficiencies and areas of waste, it is important to prioritize the root causes that have the most significant impact on the process. Engaging the team in this analysis is crucial—each team member brings valuable insight that can help identify the most pressing issues.

Use shared knowledge to rank causes according to their impact on the problem. Focus first on the inefficiencies that have the greatest potential to improve the process, whether they are bottlenecks, quality issues, or unnecessary steps.

Final Thoughts: Achieving Efficiency and Value

The essence of process improvement lies in understanding where value is added and where waste exists. By conducting a qualitative analysis of processes and using tools like Value Stream Mapping, organizations can gain deeper insights into their operations. This understanding allows them to streamline workflows, reduce inefficiencies, and improve overall productivity.

Identifying value-added activities and eliminating waste is the foundation of Lean methodology. The process of analyzing, categorizing, and addressing inefficiencies leads to more efficient operations, reduced costs, and ultimately, a higher level of customer satisfaction.