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Administration and Finance


Contact Us
Vice President for Administration and Finance
Montana State University
P.O. Box 172440
201 Montana Hall
Bozeman, MT 59717-2440

Tel: (406) 994-2712

Project Leader
Christopher Catlett
christopher.catlett@montana.edu

Jo Oudshoorn
joudshoorn@montana.edu

Project Manager
Kelly Raymond
kelly.raymond@montana.edu

VA-NVA Analysis

Objective

To distinguish between activities that are essential from the customer’s perspective (i.e., have value) and those that are not essential to the customer and should be minimized over time. In a word, this analysis helps reduce complexity in a process and allows the redesign process to focus on what is really important to customers. VA/NVA is used in conjunction with Process Flowchart Analysis and Work Distribution Analysis.

Directions to Use

By answering the following four (4) questions about each activity, BPR Teams determine if an activity is value-added/non value-added

  1. Could this activity be eliminated if some prior activity were done differently or correctly?
  2. Does technology exist that would eliminate this activity?
  3. Could this activity be eliminated without affecting the form, use, or purpose of the final product or service from the customer’s perspective?
  4. Is this activity required by a customer, and will that customer value this activity?

The four (4) questions discussed are simple but compelling. They distill the value-added activities and focus the BPR team on meeting customer needs and eliminating waste. In Phase I, II, and III, VA-NVA directs the BPR Teams course of action.

Could this activity be eliminated if some prior activity were done differently or correctly?

If an activity exists simply to compensate for poor quality workmanship “upstream” in a process, then the activity is non-value-added. If improved coordination or communication would eliminate the need for this activity, then it is also NVA.

Examples of NVA Activities That Fall Into This Category
  • Inspections
  • Approvals
  • Proofreading,
  • Error research / correction
  • Document or data replacement
  • Rework
  • Idle time
  • Complaint investigation / response
  • Additional filing

Does technology exist that would eliminate this activity?

Most universities do not fully leverage existing technology or sufficiently invest in available technologies. If a particular activity (or group of activities) could be eliminated by better utilizing technology, then the activity is NVA.

Examples of NVA Activities That Fall Into This Category
  • Coding forms by hand
  • Key punching
  • Batching (grouping) forms for processing
  • Sorting
  • Hand mailing (where e-mail is available)
  • Budget checking
  • Error checking
  • Verifying data
  • Entering duplicate data
  • Reconciling data

Could this activity be eliminated without affecting the form, use, or purpose of the final product or service from the customer’s perspective?

The key issue here is; “Will the Customer care if this activity is done or not?” More specifically “If the desired output can be delivered to the customer without this activity, then the activity is NVA!” It is important to note that some NVA activities are important and required by the university therefore may not be eliminated. For example approvals, audit trails, random audits, other steps mandated by state or local regulations etc. can not be discarded. Limiting controls to areas of identified risk and minimizing NVA activities is the goal of the redesign teams. Some commonly encountered waste tasks are:

  • Rework
  • Expediting
  • Multiple Signatures
  • Counting
  • Handling
  • Inspecting
  • Setup
  • Downtime
  • Transporting
  • Moving
  • Delaying
  • Storing

Is this activity required by a customer, and will that customer value this activity?

If the answer is yes, then the activity is marked as Value-Added, otherwise Non-Value-Added.

Return to BPR HOME

  Updated: 05/17/2007
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