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Non Value Added Activity in Process Optimization Techniques

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This curriculum spans the analytical, technical, and organisational dimensions of eliminating non-value-added activities, comparable in scope to a multi-phase operational excellence program that integrates lean execution, cross-functional problem solving, and enterprise-wide process governance.

Module 1: Identifying and Classifying Non-Value-Added Activities

  • Determine whether inspection steps in a manufacturing line are preventable through poka-yoke, thus reclassifying them from necessary non-value-added to fully eliminable.
  • Map process steps using value stream mapping to distinguish between value-added, non-value-added but necessary (e.g., regulatory compliance), and pure waste.
  • Establish criteria with operations leads to classify rework loops as non-value-added even if they correct defects, emphasizing root cause elimination over containment.
  • Conduct time-motion studies to quantify the labor hours consumed by non-value-added tasks such as material searching or machine setup adjustments.
  • Engage frontline workers in identifying invisible waste, such as waiting due to unbalanced workloads across process stages.
  • Define thresholds for acceptable levels of non-value-added time in service processes, such as internal approvals, to prevent normalization of inefficiency.

Module 2: Root Cause Analysis of Waste Generation

  • Facilitate cross-functional 5 Whys sessions to trace overproduction in a batch process back to inaccurate demand forecasting or misaligned incentives.
  • Use fishbone diagrams to isolate whether transportation waste stems from facility layout, supplier proximity, or scheduling constraints.
  • Analyze defect trends in quality logs to determine if they originate from equipment calibration drift, training gaps, or substandard materials.
  • Assess whether delays in approval workflows are due to role ambiguity, system access issues, or excessive review layers.
  • Deploy process mining tools to detect deviations from standard operating procedures that introduce rework and delays.
  • Interview shift supervisors to uncover undocumented workarounds that create hidden non-value-added steps in daily operations.

Module 3: Quantifying the Impact of Non-Value-Added Activities

  • Calculate labor cost leakage by multiplying hourly rates by time spent on non-value-added tasks such as redundant data entry across systems.
  • Measure inventory carrying costs attributable to overproduction, including storage, obsolescence, and handling labor.
  • Model the opportunity cost of machine downtime caused by changeovers, factoring in lost throughput and scheduling delays.
  • Track defect-related costs, including scrap, rework labor, and potential customer penalties, to justify process improvement investments.
  • Compare cycle time ratios (value-added time vs. total lead time) across departments to benchmark inefficiency levels.
  • Use activity-based costing to allocate overhead to specific non-value-added activities, revealing hidden cost drivers in service operations.

Module 4: Lean and Six Sigma Tools for Waste Elimination

  • Implement 5S in a warehouse to reduce time spent searching for tools and materials, measuring improvement through before-and-after cycle times.
  • Apply SMED techniques to reduce internal setup time in a production line, converting changeover steps to external preparations.
  • Design kanban systems to replace push-based scheduling, thereby reducing overproduction and excess inventory.
  • Use kaizen events to engage teams in redesigning a high-waste process, focusing on eliminating handoffs and approval bottlenecks.
  • Deploy poka-yoke devices at critical control points to prevent defects, reducing reliance on post-process inspection.
  • Integrate Six Sigma DMAIC projects to statistically validate reductions in defect rates after removing non-value-added inspection steps.

Module 5: Process Redesign and Workflow Automation

  • Redesign a manual purchase requisition process by integrating ERP workflows, eliminating paper routing and duplicate data entry.
  • Implement robotic process automation (RPA) to handle repetitive data transfers between legacy systems, reducing processing errors and delays.
  • Consolidate overlapping approval roles in a document review process to reduce cycle time without compromising compliance.
  • Restructure a multi-step inspection process by shifting to statistical sampling, validated through historical quality performance data.
  • Reorganize physical workstation layouts to minimize operator movement, measured through revised time studies.
  • Replace batch processing with single-piece flow in an assembly line, requiring rebalancing of work content across stations.

Module 6: Change Management and Sustaining Improvements

  • Develop countermeasure plans for resistance to eliminating familiar but wasteful practices, such as redundant reporting or manual backups.
  • Establish visual management boards to display real-time performance metrics, making non-value-added activities visible to all team members.
  • Define standard work documents after process changes to prevent reversion to old, inefficient methods.
  • Implement tiered daily management systems to review waste metrics and escalate unresolved issues quickly.
  • Train supervisors to coach teams in identifying new forms of waste as processes evolve, avoiding complacency.
  • Conduct periodic gemba walks with leadership to reinforce accountability for maintaining lean practices.

Module 7: Governance and Continuous Improvement Integration

  • Embed waste reduction KPIs into operational scorecards, aligning them with departmental performance reviews.
  • Integrate process optimization reviews into quarterly business planning cycles to maintain strategic focus on efficiency.
  • Require capital expenditure requests to include waste impact assessments, justifying investments based on elimination potential.
  • Standardize waste classification across business units to enable benchmarking and knowledge sharing.
  • Audit process documentation annually to ensure it reflects current, optimized workflows and not legacy practices.
  • Link improvement ideas from employee suggestion systems to formal project pipelines, ensuring follow-through on waste reduction opportunities.