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articles:value_added_audits [2023/07/18 20:52] – [Preparing for a Value-Added Audit] rrandallarticles:value_added_audits [2023/07/18 21:00] (current) – [Definitions] rrandall
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 __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. 
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 __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. 
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 +---- 
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 +{{ :articles:value-diagram_w-smilies_trans.png?direct&600 |}} 
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 +----
  
 ===== Preparing for a Value-Added Audit ===== ===== Preparing for a Value-Added Audit =====
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 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.
  
-<WRAP center round tip 40%>+<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. 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> </WRAP>
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 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 =====