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Six Sigma Green Belt Certification Workshop

LECTURE 7: VA/NVA Activities and TOC

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ASQ Body of Knowledge I.B.2

I. Overview: Six Sigma and the Organization
B. Lean principles in the organization
2. Value-added and non-value-added activities
3. Theory of Constraints (TOC)

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Heart of TPS; Waste Elimination

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Eight types of Lean Wastes:

Over production
Over processing
Transportation
Waiting
Excess inventory
Excess movements
Defects
Unused Creativity

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Visible and Hidden Waste (Tip of the Iceberg)

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Defect
Rework
Customer return

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Excess inventory
Transportation

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Over processing
Excess movement

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Waiting time
Unused creativity

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KAIZEN

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A Japanese word; means continuous improvement

Improvements without large capital investments
Two types of Kaizen
Flow Kaizen
Process Kaizen
Process kaizen
Kaizen Event: localised small scale improvement taken up as project
Mini-Kaizen: Very small, continuous, ongoing improvements taken
up at grass root level.

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Value Stream Mapping (VSM)

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Paper and pencil representation of every process

Maps MATERIAL AND INFORMATION FLOW
Visualise the picture of entire production process
Steps of VSM

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Product Family

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Draw Current State

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Draw Future State

Plan & Implement

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Value Added Activities (VA)

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Value added activities are those:

Changes nature, Shape or Characteristics of a product inline with
customer requirements
Customers are willing to pay
Eg.
Welding
Painting
Stitching
Typing

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Non Value Added Activities (NVA)

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Non Value added activities are those:

Do not change nature, Shape or Characteristics of a product
Customers not willing to pay
Eg (all forms of wastes).
Movements
Waiting for parts
Rework
Strategy:
eliminate/
reduce/
Simplify

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Required Non Value Added Activities

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Required Non Value added activities are those:

Required to make the product complete
Required for increasing efficiency
However customers not willing to pay
Eg
Inspections
Trainings
Supplier audits
Strategy: Reduce as applicable

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Lean Vs Six Sigma

Lean

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Eliminate waste, create flow.

Reduce variation, improve process

Application

Primarily manufacturing
process

All business process

(manufacturing/services)

Approach

Implementation based on best

practices

Structured problem solving

(DMAIC and DMADV)

Project Selection

VSM approach

Project selection methods

Length of Projects

1 week to 3 months

3 to 6 months

Infrastructure

Team work

Dedicated resources (black belts,

green belts, champion)

Training

Learning by doing

Structure training

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Six Sigma

Goal

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Theory of Constraints (TOC)

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Manufacturing processes use various techniques for scheduling operations.

Despite this there are common problem of:
High inventory and work in process.
Delays, backlogs, unpredictable events etc.
All above are the result of constraints in manufacutirng.
Eliyahu Goldratt developed the Theory of Constraints (TOC).
Developed the analogy of troop of marching soldier with manufacturing
process:
A batch of 10 soldiers begin the march from reference point.
Initially there was equal gap between all soldiers.
After some time the gap between the soldiers was unequal.
Because speed and capacity difference between the soldiers.

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Theory of Constraints (TOC)

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Compare this with any manufacturing processes.

Different machines/people have different capacities.
This results in piling up of inventories between process steps.
TOC focuses on identifying:
Bottleneck resources (any resources whose capacity is less than
demand)
Capacity Constrained Resources (CCR); any resource that deviates
product flow frequently.
TOC suggests the Drum-Buffer-Rope (DBR) methodology to handle the
constraints.

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Theory of Constraints

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Drum-Buffer-Rope (DBR) methodology:

Develop schedule that is consistent with constraints (Drum).
Keep buffers at critical points in system (Buffer).
Tie the product at each resource to the drumbeat (Rope)

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Synchronise other process based on Drum (Rope)

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E

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Bottle neck process

(Drum) Keep Buffer here.

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