VA-NVA (an acronym for "Value Added-Non-Value Added") analysis is a Lean technique aimed at maximising the generation of value for the customer within a process, i.e., everything the customer would be willing to pay for. It enables the identification, quantification, and elimination of all time spent on activities that do not add value.
Definitions
VA-NVA analysis is a crucial technique for identifying and quantifying waste within a business process, laying the foundation for more efficient and value-oriented redesign.
To apply this technique, it is essential to identify processing time – the total time required to complete the analysed process. This is broken down into:
- VA Time (Value Added): The time spent on activities that directly contribute to the creation of value perceived by the customer.
- NVA Time (Non-Value Added): The time spent on activities that do not contribute value and represent waste that should be eliminated or reduced to optimise process flow.
VA-Time
Time spent on activities that bring value to the product from the customer's perspective:
- Activities that change the form of an input (e.g. bending a sheet of metal);
- Activities that change the substance of the input (e.g. chemical transformation of a product);
- Activities that combine several inputs together (e.g. assembling parts).
NVA-Time
Time spent on activities that do not bring value to the product from the customer's point of view, identified as waste (muda). These fall into two categories:
- Type 1 NVA: Activities that cannot be eliminated in the short or medium term due to physical, legal, financial, or technological constraints. Knowing about their existence is useful, as changes in technology or law may allow for their future elimination.
- Type 2 NVA: Activities that can be eliminated in the short term through the application of Lean techniques. All activities in this category should be reduced or eliminated to ensure the process flows efficiently through its various stages.
The benefits of VA-NVA analysis
The main benefits of using this technique are:
- Identification, quantification, and elimination of waste: Companies can improve efficiency by identifying and reducing activities that do not add value to the product. This leads to reduced processing times, shorter lead times, quicker delivery, lower operational costs, and improved profitability.
- Quality improvement: By focusing on critical activities, it becomes possible to identify deviations from standard process that may cause defects. Reducing NVA activities minimizes opportunities for errors during production.
- Increased productivity: Optimising the use of resources – employing them only for value-adding activities – frees up production capacity.
- Customer satisfaction: Eliminating non-value-adding time accelerates production and enables faster responses to customer demand, positively impacting lead times and overall satisfaction.
- Culture of continuous improvement: This technique encourages employee participation in identifying waste, promoting a culture of ongoing improvement.
How to conduct a VA-NVA analysis
1. Observation and selection of the correct approach
The first step is to select a significant product to analyse, preferably one with a major impact on the company's production process or market.
Once the product has been identified, it is essential to involve one or more experienced practitioners with in-depth knowledge of the production process, as their input is crucial for conducting a detailed analysis and effectively redesigning the workflow.
Next, the mode of recording the activity is defined. Choose between video recording or direct observation with a transcription of the steps and times on a digital or paper medium. The choice depends on the duration of the process: if it is short, video recording allows for repeated review of each step; if long, real-time documentation is preferable to avoid excessive footage and ensure accurate analysis.
2. Process analysis via video or manual phase detection
Plan and carry out a session to record the entire production process of the selected product, from start to finish, without pauses or cuts. Document every single activity performed by the operators, without interrupting the natural workflow. Operators should explain the main operations performed and tools used.
3. Video review (unwinding )
Once filming is complete, the next step to unwinding – a detailed transcription of all recorded activities, including notes on the time taken for each action. After transcription, the total time is categorised into the three types defined earlier: value-added time (VA), type 1 non-value-added time (NVA1), and type 2 non-value-added time (NVA2).
NVA2 is typically grouped by waste type (e.g. waiting, searching for materials, etc.).
4. AS-IS formalisation.
To make the findings readable and shareable, group data by macro-steps of the analysed process and prioritise actions based on waste categories.
5. Check with the operator
Review the analysed sequence and timings with the operator to confirm that they align with the actual working norms.
6. Formalisation with TO-BE status redesign.
Redesign activities with the operator to eliminate identified waste. Aim to eliminate NVA2 and reduce unavoidable ones to NVA1. Ensure the redesigned process remains balanced, as time savings in certain steps can lead to workload imbalances.
7. Action plan and implementation
Create a plan outlining specific actions to eliminate or reduce identified waste and improve efficiency. This sets the foundation for a redesigned, streamlined production process with minimal wasted time and resources.
Finally, implement the new process and monitor the results to ensure the improvements deliver the expected benefits. Make adjustments as needed to maintain efficiency and quality.
Throughout every stage, people involvement is crucial. The team must remain aligned and share the goals of the analysis. Their insights are essential to identifying waste that hinders optimal conditions and to ensuring the process and is effectively redesigned.
You can find practical examples of this technique in our Case Histories!