Per Hoerl And Snee 2012: Eliminate Or Reduce Non-Value Add ✓ Solved
Per Hoerl And Snee 2012 To Eliminate Or Reduce Non Value Added Work
Per Hoerl and Snee (2012) state that eliminating or reducing non-value-added work is a core step in improving the profitability or efficiency of a business process. The assignment asks for an opinion on whether you agree or disagree with this statement, with the requirement to include an example of a business process that supports or criticizes this statement to substantiate your position, referencing the work by Hoerl and Snee (2012).
Sample Paper For Above instruction
In the realm of business process improvement, the emphasis on eliminating or reducing non-value-added (NVA) work is widely regarded as a fundamental strategy. According to Hoerl and Snee (2012), focusing on NVA activities is crucial for enhancing overall efficiency and profitability. I strongly agree with this assertion because identifying and removing tasks that do not add value can streamline operations, reduce costs, and improve customer satisfaction. However, it is also important to recognize that some activities classified as NVA might have indirect value or strategic importance in certain contexts. Therefore, the decision to eliminate such tasks should be made with careful consideration of the broader process and organizational goals.
The concept of non-value-added work originates from Lean manufacturing principles, which aim to eliminate waste. Waste can be categorized into several types, including overproduction, waiting time, unnecessary transportation, excess inventory, unnecessary motion, defects, and over-processing. Eliminating these wastes directly contributes to increased efficiency and reduced costs, which in turn enhances profitability. For example, in a manufacturing setting, eliminating excessive movement of components or workers can significantly reduce production time and costs (Womack & Jones, 1996).
A pertinent example supporting the importance of reducing NVA work can be found in the healthcare industry, specifically in the administrative processes of hospitals. Administrative tasks such as redundant documentation, unnecessary approvals, and excessive paperwork do not add value to patient care but consume significant resources. By streamlining these processes through digital transformation and eliminating redundant steps, hospitals can improve service delivery and reduce costs (Duffy, 2010). This case aligns with Hoerl and Snee's (2012) viewpoint that eliminating NVA activities is essential for performance improvement.
Conversely, some activities categorized as NVA might serve strategic purposes, such as quality checks or compliance-related steps, which, while not directly adding to the product or service, are crucial for maintaining standards and customer trust. An example is the quality inspection process in manufacturing. Although inspections may be viewed as NVA because they do not directly enhance the product, they prevent defective products from reaching customers, thereby protecting brand reputation and customer satisfaction (Deming, 1986). Hence, a blanket elimination of such activities might be detrimental.
In conclusion, I agree with Hoerl and Snee (2012) that reducing or eliminating NVA work is a vital component of improving business performance. Nonetheless, it is crucial to evaluate each activity's strategic importance before its removal. Practical implementation should focus on identifying genuine waste and balancing efficiency improvements with maintaining quality and compliance. Properly managed, this approach can lead to significant enhancements in profitability and operational excellence.
References
- Deming, W. E. (1986). Out of the crisis. MIT Center for Advanced Educational Services.
- Duffy, J. T. (2010). Healthcare Lean: Transformational Improvement. Jossey-Bass.
- Hoerl, R., & Snee, R. (2012). Statistical thinking: Improving business performance (2nd ed.). Hoboken, NJ: John Wiley and Sons.
- Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. Simon and Schuster.