How can Value Time decrease after performing a Makigami process improvement?
Q: VA stands for ‘Value Added Time’ isn’t it?
So than how can it happen that, after we improve the process, this time decreases with 25%? Is that a mistake?
A: No, this is no mistake!
When analyzing the current state, tons of losses will become visible and lots of improvement opportunities and ideas will popup. So it is not unusual to discover that Value Adding activities can be performed in some other way, faster, more efficient etc. In such cases you will achieve the same value in less time!
Of course the trick would be to ‘cash’ this.
There are 2 possibilities:
- Creating the same value in less time = Efficiency gain. This can only be cashed if you do not need to pay for this time anymore.
- Creating more value in the same time= Effectiveness gain. The cost will stay the same, but you will have higher revenues from those costs.