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articles:value_added_audits [2023/07/18 17:46] – [Improvement] rrandallarticles:value_added_audits [2023/07/18 21:00] (current) – [Definitions] rrandall
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 Value-Added Audits are far more popular amongst Lean Six Sigma (LSS) companies than ISO 9001 / AS9100 companies. However, Value-Added Audits coupled with the use of LSS tools present an untapped opportunity for ISO 9001 / AS9100 companies to experience significant improvements. However, for best results, companies should utilize auditors who are [[https://goleansixsigma.com/product/online-lean-six-sigma-green-belt-training/|Lean Six Sigma certified Green Belts]]. Value-Added Audits are far more popular amongst Lean Six Sigma (LSS) companies than ISO 9001 / AS9100 companies. However, Value-Added Audits coupled with the use of LSS tools present an untapped opportunity for ISO 9001 / AS9100 companies to experience significant improvements. However, for best results, companies should utilize auditors who are [[https://goleansixsigma.com/product/online-lean-six-sigma-green-belt-training/|Lean Six Sigma certified Green Belts]].
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 +<WRAP center round info 80%>
 +While it is a bit outdated, one of the best books describing these audits is "[[https://www.amazon.com/Understanding-Applying-Value-Added-Assessment-Eliminating/dp/0873893697|Understanding and Applying Value-Added Assessment - Eliminating Business Process Waste]]" by William E. Trischiler.
 +</WRAP>
 ===== Definitions ===== ===== Definitions =====
  
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 Those activities that change the fit, form, or function of the item going through the process of transformation. VA work takes the input and turns it into something of value to your customer — something they are willing to pay you for. Those activities that change the fit, form, or function of the item going through the process of transformation. VA work takes the input and turns it into something of value to your customer — something they are willing to pay you for.
  
-<note>The "output" includes ALL deliverables... which may include products/services, Certificates of Conformance, Certificates of Analysis, User Manuals, etc.</note>+<WRAP center round info 80%> 
 +The "output" includes ALL deliverables... which may include products/services, Certificates of Conformance, Certificates of Analysis, User Manuals, etc. 
 +</WRAP> 
  
 __Necessary Non-Valued Activities (NNVA)__ \\  __Necessary Non-Valued Activities (NNVA)__ \\ 
 Activities that are absolutely necessary to complete work with the present operations and/or equipment. These activities do not add value to the customer but must be performed in order for the process to produce products and/or services that satisfy customer requirements. Activities that are absolutely necessary to complete work with the present operations and/or equipment. These activities do not add value to the customer but must be performed in order for the process to produce products and/or services that satisfy customer requirements.
-<note>NNVAs typically "support" the "core" process(es), and typically includes activities such as purchasing, calibration of Measuring and Test Equipment (M&TE), equipment maintenance, training and/or qualification of personnel, etc.</note>+<WRAP center round info 80%> 
 +NNVAs typically "support" the "core" process(es), and typically includes activities such as purchasing, calibration of Measuring and Test Equipment (M&TE), equipment maintenance, training and/or qualification of personnel, etc. 
 +</WRAP> 
  
 __Non-Value Added (NVA)__ \\  __Non-Value Added (NVA)__ \\ 
 Any action that does __not__ add value to a product or service (value being defined by the customer) and is not necessary for the company to produce products/services satisfying customer requirements. NVA is the waste within a process. Any action that does __not__ add value to a product or service (value being defined by the customer) and is not necessary for the company to produce products/services satisfying customer requirements. NVA is the waste within a process.
  
-The following eight lean manufacturing wastes, mostly derived from the TPS (Toyota Production System), have a universal application to businesses today. The acronym for the eight wastes is DOWNTIME.+The eight lean manufacturing wastes, mostly derived from the TPS (Toyota Production System), have a universal application to businesses today. The acronym for the eight wastes is DOWNTIME.
  
-[[ https://www.huimfg.com/blog/8-wastes-lean-manufacturing|{{ :articles:hui_8_wastes_graphic.jpeg }}]] +----
-===== Preparing for a Value-Added Audit =====+
  
 +{{ :articles:value-diagram_w-smilies_trans.png?direct&600 |}}
 +
 +----
 +
 +===== Preparing for a Value-Added Audit =====
 +[[ https://www.huimfg.com/blog/8-wastes-lean-manufacturing|{{ :articles:hui_8_wastes_graphic.jpeg?direct&350}}]]
 Performing a Value-Added Audit requires a detailed understanding of a company's "core" processes (those processes directly transforming inputs into outputs that are deliverable to the customer). A detailed flowchart (preferably a [[articles:bpmn|BPMN]] flowchart) is essential. While not ideal, text-based instructions/procedures may be used. Performing a Value-Added Audit requires a detailed understanding of a company's "core" processes (those processes directly transforming inputs into outputs that are deliverable to the customer). A detailed flowchart (preferably a [[articles:bpmn|BPMN]] flowchart) is essential. While not ideal, text-based instructions/procedures may be used.
  
-<note>Flowcharts are often superior to text-based instructions/procedures alone because flowcharts are event-driven. Text-based instructions/procedures often omit certain events that occur within the process. However, a Flowchart is often supported by text-based instructions/procedures that describe the conditions leading to specific events that, in turn, dictate specific activities.</note>+<WRAP center round tip 50%> 
 +Flowcharts are often superior to text-based instructions/procedures alone because flowcharts are event-driven. Text-based instructions/procedures often omit certain events that occur within the process. However, a Flowchart is often supported by text-based instructions/procedures that describe the conditions leading to specific events that, in turn, dictate specific activities. 
 +</WRAP>
  
 Consequently, it may be necessary for the auditor to create a flowchart prior to beginning the Value-Added Audit. While it is tempting to begin making changes to a process while creating a flowchart, the flowchart should accurately reflect the "Current State" of the process. The Value-Added Audit will be categorizing those activities as VAA, NNVA, or NVA.  Consequently, it may be necessary for the auditor to create a flowchart prior to beginning the Value-Added Audit. While it is tempting to begin making changes to a process while creating a flowchart, the flowchart should accurately reflect the "Current State" of the process. The Value-Added Audit will be categorizing those activities as VAA, NNVA, or NVA. 
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 When using hard copy (paper) flowcharts, a common technique is to use different color highlighters to categorize each activity. When using a computer or tablet, many flowcharting software programs allow the user to change the color of the symbols. Obviously, there should be a "key" linking each color to the category that the activity has been assigned. When using hard copy (paper) flowcharts, a common technique is to use different color highlighters to categorize each activity. When using a computer or tablet, many flowcharting software programs allow the user to change the color of the symbols. Obviously, there should be a "key" linking each color to the category that the activity has been assigned.
  
-<note>A Value-Added Audit can focus on ANY portion of a process. It doesn't necessarily need to start at the beginning of the process. In fact, when mature processes are evaluated, it is more typical to see the Value-Added Audits focus on specific portions of the process (to make small refinements to the process over time).</note>+<WRAP center round tip 80%> 
 +A Value-Added Audit can focus on ANY portion of a process. It doesn't necessarily need to start at the beginning of the process. In fact, when mature processes are evaluated, it is more typical to see the Value-Added Audits focus on specific portions of the process (to make small refinements to the process over time). 
 +</WRAP> 
  
 ===== Post Audit Analysis ===== ===== Post Audit Analysis =====