Week 4 Handout PDF

Introduction to Operations Management - I
B Mahadevan
Week 4
Productivity Management
Productivity Paradox
All Rights Reserved, Indian Institute of Management Bangalore

Productivity Paradox B Mahadevan

Week 4
Some examples
Investment in inventory is high market complains of shortages and non-
availability of products
Service delivery system has enough manpower but customers complain of
excessive delay in handling service requests
CRM system in place but customers report of slow response to service
requests
Low cost of labor but not low cost of delivered products and services
Fairly large service and product offerings but customers not yet happy
with the products and services offered by the company

Manufacturing Performance for Company C B Mahadevan

Week 4
Bad Manufacturing System
Total distance Number of items Average distance

Product Line
travelled (metres) Manufactured per item
Product A 375,655 1080 347.83
Product B 415,125 757 548.38
Product C 288,710 301 959.17
Product D 297,110 405 733.60
Company C introduced better products (Product Lines C and D) but

was struggling in the market on account of high cost and lead time.

Lead time for Company A B Mahadevan

Week 4
A Bad Business Process
Stage of Processing Lead time (days) % of Total Lead

Based of 79 sample orders time
Standard Orders Range Average
Order handling 1-3 2.1 5.1
Scheduling 2-24 17.9 46.1
Production 1-3 3.8 7.7
Assembly & Testing 5-15 7.9 20.5
Packing 3-8 4.0 10.3
Invoicing 1-9 4.1 10.3
Company A had a very good manufacturing system

Lead time for Company A B Mahadevan

Week 4
A Bad Business Process
Stage of Processing Lead time (days) % of Total Lead

Based of 13 sample orders time
Special Orders Range Average
Order handling 33-77 71.2 39.6
Scheduling 0-231 79.2 44.1
Production 1-10 3.1 1.7
Assembly & Testing 3-27 12.6 7.0
Packing 0-2 0.3 0.1
Invoicing 0-25 13.7 7.5
Company A had a very good manufacturing system

Lead Time: Company D B Mahadevan

Week 4
Bad Organisation Structure

Customer
Marketing Marketing
Branch Office Head Quarters
Lead time for order intake: 2 weeks
Design
Process
Costing Planning
Even before Company D could reach back to its customers, they often closed the deal
with their competitors.
B Mahadevan
What is productivity paradox?

Week 4
What are we to infer from these examples?

Excellent performance in some parameters but not in order winning
Visible progress in some areas, but
Bad-to-worse in several competitive ratings
No growth in Business
Top line grows in business but bottom line shrinks Profitless Turnover
Apparent improvement in productivity in some areas does not seem to
eventually translate into business gains
Piece-meal improvements appear to be no good

B Mahadevan
What contributes to productivity?

Week 4
Ratio of output to input is a local measure for productivity employed in

economics but it is of limited use in operations
We need to replace output with useful output in order to truly
compute productivity
Improvements and efforts that contribute to order winning alone
contribute to useful output
What is Order winning is eventually determined by the end customers
and not by an organization offering products and services

B Mahadevan
What causes productivity paradox?

Week 4
Piece-meal attributes of excellence does not result in order winning

Local Optima is not as good as Global Optima
Your productivity is moderated by that of your supply chain
Therefore, not paying enough attention to the supply chain is a costly error today
Yesterdays order winners become todays order qualifiers Why?
Customer preferences change over time
Shift in demographic profile, Net savvy citizens, Gen Y etc
Market place change
Role of quality in the 80s its role today
New technologies constantly replace old ones bringing new dimensions to what
creates value to customers

B Mahadevan
Rules for Managing Productivity

Week 4
Rule 1: What creates value alone can contribute to productivity the

rest can only contribute to cost or wasteful expenditure of resources in
any organization
Rule 2: The locus of reference for value is the customer
Rule 3: Multiple entities significantly influence and contribute to the
value creation process for the ultimate customer

B Mahadevan
Week 4
Notion of a Value Stream

B Mahadevan

Week 4
In every business there is a value chain consisting of multiple entities

Value originates from one side and flows through the chain to the
ultimate customer
Some entity conceptualizes the product or a service for a targeted
customer which is the value proposition
Multiple entities take part in creating, adding to this value proposition
and finally hand it over to the ultimate customer

Notion of a Value Stream B Mahadevan

Week 4
Case of a passenger car

Components of the value stream
Design of the car, features, choice of material, cost etc.
Ore mining, extracting the basic material (Metals, FRP)
Tiers of Suppliers of components, sub-assemblies
Manufacturing, Vehicle Assembly
Logistics, FG Inventory
Dealership, Sales
After Sales Service

Notion of a Value Stream B Mahadevan

Week 4
Case of a holiday package
Components of the Value Stream

Conceptualize the holiday, create a workable package, cost, other
details of the service
Travel & Ticketing Management
Holiday Resorts, Destinations
Facilities at each destination, Handling Local Issues
Inter-destination travel, F & B management
Coordination across multiple entities and providing a single window
to the vacationing customer

B Mahadevan

Week 4
In all business situations similar to the above two examples, a path is

created for the value to flow. This is called value stream
One can imagine this to be very similar to a water way in which
water flows from one side to another
Although there is a potential to deliver value, if the value stream is
not well configured value may not flow
Company A has a very good product designed, good capability to
manufacture but a badly developed supply base
Company B has a unique service offering but suffers badly from the last mile
problem because the franchisees are not able to deliver what was promised

B Mahadevan
Week 4
Non-Value Adding Activities

B Mahadevan
Non-Value Adding (NVA) activities in Business

Week 4
If we manage our activities in such a manner that value freely flows in

the value chain then productivity will improve.
Not all activities in an organization add value
Some may be non-value adding or value subtracting in nature
One important issue in addressing the productivity is to analyze the
extent of non-value adding activities in an organization

B Mahadevan
How do people spend time?

Week 4
Category of Activity Typical time Spent

in a working day
Unnecessary phone calls 23 min
Unnecessary meetings 26 min
Reading unnecessary emails 16 min
Searching for missing information 13 min
System failures/errors 48 min
Studies have shown that 20% of the workers activities cause 80% of wasted time
Source: http://www.leanexpertise.com/MTL/LeanOffice/LeanOfficeBasics.htm

B Mahadevan
Inventory Related Waste

Week 4
Manufacturing
Service Organizations
Organizations
Accumulating Inventory Overflowing In Baskets
Waiting for material to Duplication of work
work on Too much of paper work
Stock verification Incomplete information leading
Counting the number of
to pending decisions
parts
Temporary Storage Too many people in the system
Parts Shortage
Source: Mahadevan, B. (2015), Operations Management: Theory & Practice, Pearson Education, 3 rd Edition, pp 361.

B Mahadevan
Waste Due to Processes

Week 4
Manufacturing
Organizations
Defects & Rework Payments not made on time
Machine Breakdowns Wrong service delivery (Service
Watching the machine Failure)
run
Proposals not completed on
time for the bid
Customer Orders taking too
long to be filled

B Mahadevan
Waste Due to Planning

Week 4
Manufacturing
Organizations
Looking for tools Complicated office layouts
Carrying heavy pieces Poorly planned meetings
Transferring parts over Documents handled many times
long distances
before a decision is taken
Over Production & Double
Handling Extra signature needed that
hold up completion
Teams with incomplete or no
direction for carrying out work

B Mahadevan
Week 4
Lean Principles

B Mahadevan
Lean Management
Week 4
A Lean Enterprise primarily deploys an organisational mechanism

Defining value & identifying value stream
From concept to launch
Order to delivery
Raw material to finished product
In a lean enterprise there will be a continuing conference of all
concerned parties
To create a channel for the value stream
Dredging up all the Muda from the system

B Mahadevan
Lean Management (cont.)

Week 4
Japanese Terms
Muda - Waste
Mura - Unevenness
Muri Excess
If we go by the definition of a Lean Enterprise, then we need the
following:
A way to define value and map a value stream for the products & services
Some mechanisms for removing the muda from the system on an ongoing
basis

Lean Management B Mahadevan

Week 4
Processes & Outcomes

Accrued Benefit Less is more Productive !
Process Mapping, Non- Manufacturing Architectural

value added analysis Changes
Continuous Improvement Set-up time Reduction
Tools & Kaizen, Small Group Small Lot size processing
Techniques Improvement Pull Scheduling
Used Benchmarking Simplified Operation Control
Quality Circles (Kanban)
Basic Enabling Total Quality Management

Just in Time (JIT)
Mechanisms (TQM)
Elimination of waste & creating a value stream for products

Basic Premise
& services

Less is in fact more productive B Mahadevan

Week 4
An illustration
Criteria for Comparison Japan@ U.S.*
Production of Vehicles (Million) 4 8
Number of employees 37,000 850,000
Parts on which detailed engineering is done 30% 81%
Number of employees in Purchasing 337 6,000
Number of suppliers for upholstery 1# 25**
@ Toyota figures are used for illustration, unless otherwise specified
* GM figures are used for illustration, unless otherwise specified
# For the Infiniti Q45 model of Nissan there was a single supplier
** In the case of G.M. 25 suppliers were providing 25 needed parts to the seat
building department in its assembly plant.
Based on the data available in Womack, J.P., Jones, D.T. and Roos, D. (1990), The
Machine that changed the world, Rawson Associates.
B Mahadevan
Week 4
JIT Philosophy

Just In Time Philosophy B Mahadevan

Week 4
Basic enabling mechanism for Lean mgmt.
Variable
Unrealistic Process Times Poor
Schedules Quality
Defective
Lack of Material
Training
Inadequate
Bottlenecks
Machine Information
Breakdown
Behavioural /Managerial
Constraints

B Mahadevan
Just In Time Philosophy

Week 4
In order to create a lean enterprise we need

An organization-wide mechanism with the required mandate and top
management support to
Systematically and deliberately expose problems (JIT)
Systematically and sustainably solve problems (TQM)
Both must go hand in hand to achieve lean operations

B Mahadevan
Just In Time Philosophy (cont.)

Week 4
We can summarize the methodology for creating a lean enterprise as

Withdraw buffer deliberately
Thereby expose hidden problems in the system
Identify solutions to the problems, implement and attain smooth
production rates
Repeat the above steps

B Mahadevan
JIT Elements
Week 4
In a JIT system, modifications are made by incorporating certain specific

elements in planning and physical design of the system in the following
areas:
Redesign of the manufacturing system
Pull based Production Planning & Control
Setup time reduction
Lot Size reduction

JIT Elements B Mahadevan

Week 4
Redesigning the operations architecture
Finance
Marketing
Stores Materials Planning
Grinding Milling Turning Quality
Function based structure Product focused structure
Creating a structure consisting of Internal Chain of Customers


B Mahadevan
JIT Elements
Week 4
There are other aspects in the system which are also addressed as part
of a JIT system
These mainly relate to constant waste elimination initiatives
Setup time reduction Lot size reduction
Inventory reduction Removing inventory from the system
Defect free supplies Supplier collaborations

B Mahadevan
Week 4
Process Mapping

B Mahadevan
Process Mapping for NVA Analysis

Week 4
A process mapping exercise will help us understand the potential areas

for improvement.
Process mapping is an exercise in which various steps in the process
are chronologically identified and listed down.
Once the steps are identified, it can be used to also find out what is the
time spent, what kind of resources are consumed in the process and to
what extent.

No. Activity Responsibility Category Introduction to Operations Management - I
B Mahadevan
1. Progress department generates Material Request Cent. PPC WT Week 4
(MR) for Raw Material
2. MR given to shop production control Cent. PPC WT
Process Mapping
5. Take MR to purchase for co-ordination Shop PC WT
6. Check stock of item in stock balance list Purchase WT An example
11. Update bin card and issue material Stores WT
12. Progress department waits for fork lift Shop PPC WT
13. Move material from RM yard to shop 754 Shop PPC MV
Category of Activities
17. Issue job card & Route card to shop Shop PPC WT
18. Wait for fork lift truck Shop PPC WT
19. Move Raw Material (RM) to work centre Shop PPC MV WT Waiting
20. Issue job card to operator Shop WT MV Moving
21. Load required tools and set up machine Shop WT AV Adding Value
22. Wait for overhead crane Shop WT
23. Load RM on machine Shop MV AC Adding Cost
24. Perform flame cutting operation Shop AV
28. Inspection of the finished components QC WT

29. Wait for overhead crane Shop WT
30. Move to shot blasting area Shop MV
31. Load on machine & perform shot blasting operation Shop AC
34. Inspection of the completed component QC WT

35. Wait for fork lift Shop PPC WT
36. Move to sheet metal to shop 727 Shop PPC MV

No. Activity Responsibility Category Introduction to Operations Management - I
B Mahadevan
40. Load on straightening machine Shop MV Week 4
41. Perform straightening operation Shop AC
46. Move to Press shop Shop MV Process Mapping

47. Issue job card to operator Shop WT
48. Set up machine for forming operation Shop WT An example
49. Perform forming operation Shop AV
53. Wait for fork lift Shop WT

54. Move to machine shop 721 Shop MV Category of Activities
55. Wait for crane Shop WT
56. Move the component to the layout table Shop MV
WT Waiting
63. Move to radial drilling machine Shop MV MV Moving
64. Drilling operation Shop AV AV Adding Value
65. Unload from machine Shop MV
AC Adding Cost
70. Move to painting shop 758 Shop MV
74. Apply spray paint primer Shop AV

75. Reverse the plate Shop MV
76. Apply spray paint primer Shop AV
77. Wait for drying Shop WT
80. Wait for fork lift Shop PPC WT

81. Move to fabrication area 789 Shop PPC MV

Process Mapping Example B Mahadevan

Week 4
A Summary
Category of No. of Time % of Total

Activity activities (Hours)
Waiting 53 1098 65.4
Moving 18 373 22.2
Adding Value 5 106 6.3
Adding Cost 5 104 6.1
Total 81 1680 100.0

Process Mapping B Mahadevan

Week 4
Some Alternatives
Customer order walk through
Our previous example of date pertaining to 79 standard orders and 13
specialized orders
Another example was the mapping of 81 activities of a process that we just
now saw
Collaborative brainstorming/charting
Bottom-up approach Interviews of people in functional departments
Executive Judgement

B Mahadevan
Week 4
Process Improvement Methodology

Process Improvement Methodology B Mahadevan

Week 4
A Service Example
Context for Process Improvement
Customers complain excessive delay in addressing their requests
Report errors in the work done by the service personnel
Legacy systems, too much paper work
Broad Objectives for the exercise
Reduce time and paperwork by 25%
Develop job descriptions and procedures
Deliver tangible cost savings
Have an on-line system

Process Improvement Methodology B Mahadevan

Week 4
A Service Example (cont.)
Details of process mapping exercise carried out

Defined categories of activities (Value Adding, Non-value adding)
Based on a sample of past history identified various activities
There were 79 activities in all
Data including Distance, Response Time and Rejects were collected

Data Collection B Mahadevan

Week 4
Time, Distance, Rejects

Time How many days does it take to process?
Average 2.8 days;
Range (2 6 days (based on a sample study))
Distance How many steps from start to finish?
79 Activities
Distance = 1,850 meters to process the request
Rejects How many have defects?
Month 1 5.11%; Month 2 4.60 %;
Month 3 8.70%

Improvement Opportunities B Mahadevan

Week 4
Brainstorming A partial list
Steps
Sl. No. Brainstorm list of improvement ideas
eliminated
1 All requests in on the same day 4
2 Send requests back if infomaton is incomplete 9 - 13
3 Change request data collection format 19 - 21
4 On-line system 19 - 21
5 Share with customers certain identified information 24 - 25
6 Access to CRM database 52 - 55
Medium term solutions Long term solutions

Service Process Improvement B Mahadevan

Week 4
Results after implementation
Response Time:
Sample 25 requests: 22 2 or less days
3 more than 2 days
Average time: 1.1 days
Rejects:
0%
Value Added:
Eliminated 17 non-value added steps

B Mahadevan

Week 4
Step 1: Identify problem areas, set the project scope

The problem areas must be identified in such a fashion that the exercise
leads to waste elimination and not into productivity paradox
Scope must lay out some of the broad objectives to be met by carrying out
the exercise
Step 2: An accepted definition of Value adding is very important
Value Adding (VA)
Non-value adding (NVA)
Necessary but non-value adding (NNVA)

B Mahadevan
Categorization of Activities
Week 4
Value adding (VA): Activities are classified as value adding as

long as the customer is willing to pay for that activity
Non-value adding (NVA): All those activities for which the
customer may not want to pay are classified as non-value adding
activities
Necessary but non-value added (NNVA): The set of activities that
are to be eventually eliminated as and when better systems are
developed in an organization

B Mahadevan

Week 4
Step 3: Obtain measures to assess the process

Distance, Time, Staff deployed, categories of NVA
Step 4: Brainstorm improvement opportunities and develop a list of options
Step 5: Prioritize the option for implementation
Low hanging fruits
Medium term solutions
Longer term solutions
Step 6: Present the options, obtain mandate and budgetary support
Step 7: Implement, measure the results and document

Process Improvement B Mahadevan

Week 4
Organization Structure
Identify Set the scope Map at overall

Product/ Measure Level; Identify
Service current status detailed projects
Project 1 Project 2 Project 3 ... Project N
Adopt Process Improvement Methodology for each project


B Mahadevan
Week 4
Performance Metrics

Performance Measures B Mahadevan

Week 4
An illustration
Employees to supervisor ratio 28:1
Production schedules met (% of time) 100.0 %
On Time Delivery Index (OTD) - Suppliers 97.6 %
Oder-to-Order Lead Time for Customers 2.3 days
Finished product First Pass Yield (FPY) 98.3 %
First Pass yield (Ethylene) 99.4 %
Annual Inventory turns 80.3
WIP turns (Chemicals) 194.2
WIP turns (Petro-chemicals) 203.0

Performance Measures B Mahadevan

Week 4
Traditional Role
Primarily for control
Quarterly or Monthly Performance of all departments vis a vis the targets
etc.
Standard Costing Reports (Variance Analysis)
Spend Analysis
Meant for Top Management
Purely Financial in Nature
Primary vehicle for incentives

B Mahadevan
Performance Metrics for Productivity

Week 4
Primarily for learning and improvement

Meant for everyone
Players need trajectory of the ball (Employees need Operational Measures)
Coaches need the score card as well (Managers need Financial Numbers as
well)
Overwhelmingly Operational
Hierarchy of reports
Not necessarily strictly linked to incentives

B Mahadevan
Measures for Improvement

Week 4
Local/Global Measures
Schedule Adherence
Lead Time
First Pass Yield
Non-Value Adding Content
Global Measures
Cost of Quality
Indirect labour to Direct Labour
Lead Time to Work content
No. of Days of Inventory

B Mahadevan
Measures for Learning/Innovation

Week 4
Local/Global Measures
Average no. of suggestions/employee
Average training time/employee
No. of certified deliveries
Global Measures
Delivery Quote for customised products/Services
New Product/Service introduction time
Time to develop next generation of Products/Services
Average no. of Engineering Change Notices (ECNs)

B Mahadevan
Week 4
Role of Visual Control Aids

B Mahadevan
Visual Control Aids Week 4
Improvements happen well when it is

Data Driven
Employee Centered
Continuous
Therefore the question is what is a good mechanism to achieve all
these?
Visual Control Aids are mechanisms available to achieve all the three in
one shot
Moreover, being visual they are also effective

B Mahadevan
Visual Control System

Week 4
What is a visual control system?

An operational measurement system
Maintained by the operating personnel
Visual as it is displayed prominently in a board
Chosen measures are monitored continuously on some appropriate time
basis
Daily Production/Shift Production
No of rejects, Daily Shipments, Stoppages, Interruptions
Schedule Adherence, Lead Time
Cost of Wastage, Improvements

Visual Control Board B Mahadevan

Week 4
An illustration
Schedule Adherence
Lead Time
Quality
Source: Mahadevan, B. (1999), The New Manufacturing Architecture, Tata McGraw Hill, pp 196.

B Mahadevan
Visual Control Aids

Week 4
What are the possible options for visual control?

Prominent Display boards having charts
Lights (Andon Lights), Floor Paintings
Generous use of color coding
Example of inventory control
Cards, Electrical Signals (Kanban)
Fool Proofing Systems (Poka Yoke)
Options are limited only by our own creativity

B Mahadevan
Example of Visual Control Aids

Week 4
In one organization, there was a lot of oil wastage in a process

A visual control board which monitored certain parameters captured
this information
The group of operating personnel became aware of it (as they were
posting this data on to the board)
The members took a decision to reduce this wastage
They fabricated a gravity chute as a proof of concept to reduce the
wastage
Recovered 80% of wasted oil in one go

B Mahadevan
Visual Control Aids

Week 4
Visual control Aids could be used for a one time gathering of

information about problem and solutions
In this manner it can fuel a series of improvement projects as well if
properly designed

Visual Control Aids B Mahadevan

Week 4
Enables waste elimination
Source: Mahadevan, B. (1999), The New Manufacturing Architecture, Tata McGraw Hill, pp 187.

B Mahadevan
Concluding Remarks
Week 4
Visual control Aids helps one to engage with the problem and solutions
more actively
Being visual it captures ones mind space and puts them into an orbit of
thinking
It compliments an organizations effort towards productivity
improvement and waste elimination
It makes an employee more involved and help take ownership of the
issue

B Mahadevan
Week 4
Implementation Challenges

B Mahadevan
Two main features of Improvement

Week 4
Desire for Excellence is a cultural issue not a technological aspect

It calls for investing in it as a habit
The God is in details
Data Intensive
Takes more time, effort and patience
There are no shortcuts and quick fixes for making lasting improvements

Productivity Management B Mahadevan

Week 4
Journey So far in Organizations

Key Challenges
Starting Trouble
Transition from knowledge to practice
Not knowing how & where to apply these ideas
Mid-way Break Down
Top Management commitment is missing
Middle Management face pressures
End-of-the-road Syndrome
No more areas to apply

Difficulty of implementing Lean B Mahadevan

Week 4
A view from Middle Management
We are not familiar with the tools that can help us

I dont have that responsibility its not my job
No one feels motivated to change
We do not feel empowered to take any action
This department is too busy because
We just cant seem to communicate well to other areas
Source: http://www.leanexpertise.com/MTL/LeanOffice/LeanOfficeBasics.htm

Addressing End of the Road Syndrome B Mahadevan

Week 4
New Trajectories
Addressing the end of the road syndrome requires that we look at three
dimensions for future expansion
Stepping out of the shop floor
How much have we covered in non-manufacturing (office) areas?
Stepping out of ones own organization
What is happening to the supply chain? Whose problem is it anyway?
Stepping out of the current mind-set
Where are the future domains of value creation?

Productivity Management B Mahadevan

Week 4
Beware of traps
Concepts are simple, even obvious

Preach Practice Gap is glaring
Severe deficiency in stamina
Leading is very difficult
Empowering is difficult getting empowered is even more!
Tunnel vision at the top mgmt. Level
Crisis is yet to blow over

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Introduction to Operations Management - I

All Rights Reserved, Indian Institute of Management Bangalore

Productivity Paradox B Mahadevan

All Rights Reserved, Indian Institute of Management Bangalore

Manufacturing Performance for Company C B Mahadevan

Bad Manufacturing System

Total distance Number of items Average distance

Product A 375,655 1080 347.83

Product B 415,125 757 548.38

Product C 288,710 301 959.17

Product D 297,110 405 733.60

Company C introduced better products (Product Lines C and D) but

All Rights Reserved, Indian Institute of Management Bangalore

Lead time for Company A B Mahadevan

A Bad Business Process

Stage of Processing Lead time (days) % of Total Lead

Company A had a very good manufacturing system

All Rights Reserved, Indian Institute of Management Bangalore

Lead time for Company A B Mahadevan

A Bad Business Process

Stage of Processing Lead time (days) % of Total Lead

Company A had a very good manufacturing system

All Rights Reserved, Indian Institute of Management Bangalore

Lead Time: Company D B Mahadevan

Bad Organisation Structure

Lead time for order intake: 2 weeks

What is productivity paradox?

What are we to infer from these examples?

All Rights Reserved, Indian Institute of Management Bangalore

What contributes to productivity?

Ratio of output to input is a local measure for productivity employed in

All Rights Reserved, Indian Institute of Management Bangalore

What causes productivity paradox?

Piece-meal attributes of excellence does not result in order winning

All Rights Reserved, Indian Institute of Management Bangalore

Rules for Managing Productivity

Rule 1: What creates value alone can contribute to productivity the

All Rights Reserved, Indian Institute of Management Bangalore

All Rights Reserved, Indian Institute of Management Bangalore

Notion of a Value Stream

In every business there is a value chain consisting of multiple entities

All Rights Reserved, Indian Institute of Management Bangalore

Notion of a Value Stream B Mahadevan

Case of a passenger car

All Rights Reserved, Indian Institute of Management Bangalore

Notion of a Value Stream B Mahadevan

Case of a holiday package

Components of the Value Stream

All Rights Reserved, Indian Institute of Management Bangalore

Notion of a Value Stream

In all business situations similar to the above two examples, a path is

All Rights Reserved, Indian Institute of Management Bangalore

All Rights Reserved, Indian Institute of Management Bangalore

Non-Value Adding (NVA) activities in Business

If we manage our activities in such a manner that value freely flows in

All Rights Reserved, Indian Institute of Management Bangalore

How do people spend time?

Category of Activity Typical time Spent

All Rights Reserved, Indian Institute of Management Bangalore

Inventory Related Waste

All Rights Reserved, Indian Institute of Management Bangalore

Waste Due to Processes

All Rights Reserved, Indian Institute of Management Bangalore