Identification and Analysis of Value Added and Non-Value Added Steps in Work Processes.

Topics: Value added, Capital accumulation, Service provider Pages: 3 (811 words) Published: June 5, 2007

Introduction: Every business has many processes involved as a part of their operation. Each step or stage involved in these work processes affect the overall working & profitability of the company. value addition done at each of these stages needs to be analysed to better understand the process as well as improving it further.

For the purpose of this paper we havve considered one of the overseas operation unit of a US based Outsourcing & consulting firm. Identity of the company has not been revealed for security reasons.We hope this report is of assistance to understand implications of value addition in each stage of work processes.

Problem Statement: Analysis of Transportation Processes in XYZ Back Office Processing Pvt Ltd,. (This is just a fictitious name for the actual Outsourcing & consulting MNC, Identity not revealed for security reasons) to identify non value added processes and eliminate or replace them for cost saving. --------------------

Transport (car pools) & billing of transport expenses in XYZ BPO Pvt Ltd,. Services Pvt Ltd,.

For the purpose of this assignment we have considered transport system of XYZ BPO Pvt Ltd,. alone. As a part of the company¡¦s policy XYZ BPO Pvt Ltd,. provides transport facility for almost all its employees. However it is not cost effective to own and maintain a car pooling service with over 2000 cabs. Hence, XYZ BPO Pvt Ltd,.has outsourced the transportation function to a local taxi cab service (identity not disclosed for confidentiality purpose). The normal procedure followed to deliver the transport service and also clearance of the billed expenses to the service provider has been portrayed in Diagram 1(Process 1).

Non value added steps in process 1:

step1:Employees: Request for transport & input information (residence address, shift schedule etc,.) step 2:Team Leader/ representatives or Transport SPOCS:
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