lean event overview - day 1

Value Stream Mapping

Quick Start

2 Employ Improvement Initiatives

• A series of steps that must be performed in the proper sequence to create value for a customer

• The complete value stream includes information flow and product or material flow

• The value stream includes all steps; value-added and non value-added

Defining A Value Stream

If there is a product, service or process for a customer, there is a value stream.


• Helps you visualize more than just the process level

• Allows you to see the sources of waste

• Define key leverage points for improvements• Displays linkage between information and material flow

- Admin processes may show linkage between information flow and the actions that result from the information flow

Why Value Stream Map?

VSM creates a common understanding of reality and the improvement possibilities.


Extended Value StreamMultiple Facilities: (Includes Suppliers & Customers)

Process Level

Facility Level(Cell or Department)

Value Stream Levels

Choose the level appropriate for your scope.


The VSM Process OverviewCurrent State

Identify key process steps for delivering product/service to customerUtilize information from “go see” (Gemba) or interviewsInclude key metrics with each stepInclude lead time and cycle time dataIdentify Undesirable Observations (UDO’s)Determine data gaps that need to be collected

Identify flow of information from end customer to beginning of processInclude systems that provide informationRecord the frequency and type of information

If information is your “product” you can identify origin of information

Determine if the Value Stream steps are VA or NVA

Analyze wastes and determine improvements

Develop action plan to make improvements


7 Steps to Utilizing a Value Stream Map

1. Identify scope of the Value Stream Map 2. Identify VSM team lead and participants3. Organize and conduct a tour of area to “go see”4. Map the high level process and gather key data5. Identify the value stream (product/process alignment

and the critical path)6. Create the Current State Value Stream Map

• Material Flow• Information Flow• VA/ NVA classification

7. Identify the Waste• Identify areas of opportunities for improvement• Develop an Action Plan to make the improvements


Step 3: “Go See” the Product/ServiceIf the process is visible:• Process map at high level• Walk the process and record individual process steps, UDOs*, cycle

time, distance, # of people, quality, etc.• Ask operators questions• Note metrics, materials, machines, WIP**, finished goods

If the process is not visible:• Create detailed process map• Include UDOs, cycle time, distance, # of people, quality, etc.• Provide process map to all operators• Interview employees involved in process• Analyze portions of process which are visible• Utilize VOC surveys to collect key data points• Validate findings with operators

*UDO (Undesirable Observation) – any observation about the process that is not ideal **WIP (Work In Process inventory) – inventory that is contained in the process


Step 4: Map the High-Level Process

GatherInfo

Approval Meeting

AnalyzeInfo

Developwork-up

Input datainto file

Collect Sub-quotes

Prepare Estimate

• Having 4 to 10 process steps is common• Review the scope if you have more or less• Consolidate detailed process steps into higher level value stream steps • Determine key data to collect, WIP, Distance, Time, # of people, quality, etc.• Capture any variation within the process

Input Boundary Output Boundary

30 minute cycle time

WIP

2 days between processes 6 people involved

Example: Generating an estimate for a customer

On-Line Tool


Step 4: Identify Key Data Elements

• If data not available, use averages based on operators assessment• Check old records, files, reports, etc.• Additional data collection by surveys/interviews• Finalize data during the “Identify Materials Flow” step

Example: Generating an estimate for a customer

GatherInfo

Approval Meeting

AnalyzeInfo

DevelopTakeoff

Input datainto file

Collect Sub-quotes

Prepare Estimate

Cycle Time:

Wait Time:

# of People:

Transport:

WIP:

4 hrs 24 hrs 2 hrs 2 hrs

48 hrs 24 hrs 8 hrs 8 hrs

1 2 1 1 2 6

Manual Phone E-mail E-Mail

2 2 4 3 3

Who: Ops Sales/Ops Sales/Ops Sales Sales

Missing data to be collected prior to VSM


Step 5: Identify the Value Stream

• Determine critical path and area for improvement

“Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.”

Learning to See by Rother and Shook

WIP 870

QTIME72H

MELT903M

INSPCHEM

HoldFurnace

Cast903

INSPPROFILE

WIP 696QTIME

P/T 6N

LOT 75K

P/T 8HWIP 8 COILS

120K

P/T 3 HR15KWIP

STORE STAGE BREAKDOWN911

REC STAGE

LEAD 2231.1

VA 210.17%SCRAP

WIP746KQTIME8 1OK

LOT 1 COILTIME .1WIP 15K

WIP108K8HRQ/T8

DOWNTIME 15%

DOWNTIME 15.5%

8 6 8 3

Value Stream Map –Value Stream Map – OperationalOperational exampleexample

1. Map major process steps2. I.D. Value (green/ yellow) / Non-value (red)3. Capture all times, quantities4. Prioritize areas to improve

X SHIPPED PER DAY

850K

1.870 WIP BEING WORKED

4.276 WIP BEING STORED


Step 6: Create the Current State VSM

• Map the Material Flow

• Map the Information Flow

• Classify VA and NVA activities


VSM Symbols

FIFOmax 10

I

Things pulledby next process

First inFirst out control

Transport

Things pushedto next process

Pull systemPaper trigger

Pull systemReturnable container

Information

ElectronicInformation

Peoplerequired

InventoryPieces

Waiting

In

Out

Input-Basket

Output-Basket


Step 6: Map the Materials Flow

GatherInfo

Approval Meeting

AnalyzeInfo

DevelopTakeoff

Input datainto file

Collect Sub-quotes

Prepare Estimate

Cycle Time:

Wait Time:

# of People:

Transport:

WIP:

4 hrs 8 hrs 24 hrs 2 hrs 4 hrs 2 hrs 2 hrs

8 hrs 48 hrs 8 hrs 24 hrs 8 hrs 8 hrs

1 2 1 1 2 2 6

Manual Manual E-mail Phone E-mail E-Mail

2 2 4 1 3 2 3

Who: Sales Ops Sales/Ops Sales/Ops Sales/Ops Sales Sales

• Come to agreement on process steps as a team

• Include all key data for each process step

• Include UDOs

• Material flows from left to right

No standard

work

No Process

Too many

people

UDO

Push


Step 6: Map the Information Flow

Customer

Sales Funnel

Database

Sales

Representative

Sales

Leader

Estimator

75 Estimates per month

1-30 days

1-5 days1-2 days

2-5 days

• Information should flow right to left, always starting with customer

• Cycle times can be averages or ranges

• The more detail you include, the more waste you will see


Estimator

Step 6: Identify VA & NVA

GatherInfo

Approval Meeting

AnalyzeInfo

DevelopTakeoff

Input datainto file

Collect Sub-quotes

Prepare Estimate

# of People:

Transport:

WIP:

1 2 1 1 2 2 6

Manual Manual E-mail Phone E-mail E-Mail

2 2 4 1 3 2 3

Who: Sales Ops Sales/Ops Sales/Ops Sales/Ops Sales Sales

No standard

work

No Process

Too many

people

VA/NVA VA NVA VA NVA NVA NVA NVA



CustomerSales Funnel Database

Sales Representative

Sales Leader

75 Estimates per month

1-30 days1-5 days

1-2 days

2-5 days

• Customer cares

• Changes form, fit or function

• Correct


• Identify areas of opportunities for improvement

• Develop an action plan to make the improvements

Step 7: Use the VSM to Identify Waste


Step 7: Use the VSM to Identify Waste

Estimator

GatherInfo

Approval Meeting

AnalyzeInfo

Developwork-up

Input datainto file

Collect Sub-quotes

Prepare Estimate

# of People:Transport:WIP:

1 2 1 1 2 2 6Manual Manual E-mail Phone E-mail E-Mail

2 2 4 1 3 2 3Who: Sales Ops Sales/Ops Sales/Ops Sales/Ops Sales Sales

No standard

work

No Process

Too many

people

VA/NVA VA NVA VA NVA NVA NVA NVA



CustomerSales Funnel Database

Sales Representative

Sales Leader75 Estimates per month1-30 days

1-5 days1-2 days

2-5 days

• Cycle times too long• Too much “queue time” between steps• No process standardization• Transportation issues• Too many people involved in Approval

Time Value Map43 days


Step 7: Identify Areas of Improvements

• Improvements should be made based on waste analysis identified during VSM activity.

• Example: Opportunities identified in the Generating an Estimate for a Customer VSM :

- Create standard work for operators to follow- Develop “templates” to use when “Developing Quotes”- Remove NVA steps when possible- Streamline information flow from Customer to Estimator- Mitigate interruptions to “flow” estimate (reduce queue

time)- Improve policies with Sales to obtain timely quotes- Reduce the number of people required for the “Approval

Meeting”


Step 7: Create An Action Plan

• Action plans are critical to successfully implementing VSM improvements

• Determine improvement projects, schedules and owners- Immediate improvements (2 - 5 days): Kaizen Events- Medium term improvements (3-6 months): Lean/ GB projects- Long term improvements (6+ months): Lean Expert/ BB

projects


• Identify the high impact improvements and long term and short term actions

Impact

Effort

High HardSweet Spot

low high

high

Don’t DoJust Do It

Step 7: Create An Action Plan

Value Stream Mapping

Quick Start

lean event overview - day 1

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