Calculate VA/NVA and add Summary

In the previous step you summarized:

  1. Transfers: every time an actor transfers data to another actor.
  2. Data Carriers: How many screens, forms, systems, telephone calls, faxes etc. are being used to transfer data?
  3. Clock-Time: What was the total throughput time from start till end of the process (24/7).
  4. Activity-Time: The total amount of worked (and thus to be payed) time. (Multiply with xx € per hour to get an idea of the labor cost of one run of the process).

Now that we estimated the Value Adding Time, the 3th line can be added:

5. Value Adding Timeline: The total amount of really value adding time within the total Lead Time (line 1).

Calculate the Ratio’s

1. Work Ratio

Calculate the work-ratio: How much time was being worked on the process during the total Lead Time?

workratio example

2. Value in Work Ratio

Calculate the work/value-ratio: How much of the worked hours was actually adding value?

Work-Value Ratio formula

3. Value Adding Ratio

Calculate the value-ratio: 

The ratio between |Total Value Adding Time| (line 2) and |Lead Time| (line 1) is the ‘value adding ratio‘: How much of the total Lead Time there was actually value being added?

Usually far less than 1% (!)

Value Ratio Formula
current state summary

Summary of the Current State

Making the summary at the right side of the map concludes the current state map.

At this point you should be able to answer the following questions:

  • What is the process we are talking about?
  • Who is ‘the customer’?
  • Where does the process starts?
    Where does it ends?
  • How long does this process takes? (Lead Time)
  • How many value added time is there during the Lead Time?

a Warning

Some facilitators define an intermediate category;

|Not adding value but needed in the current situation|

“The Activity does not contribute as defined at value adding, however is (still) necessary to perform another value-adding step”

Such a category should be considered all the same as a loss. Even when a loss is organised, managed or controlled, it is still a loss to be eliminated!

So whatever you do:

Never ever label a loss as value!

Even when you think it is 100% certain you will never be able to eliminate it: Losses are unacceptable at any circumstance!

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