Value Stream MappingValue Stream MappingEventEvent

Home Healthcare Home Healthcare Service IndustryService Industry

October 20-21, 2011October 20-21, 2011

NEW Lean Consulting GroupNEW Lean Consulting Group

NEW Lean Consulting GroupNEW Lean Consulting Group Provide Lean consulting services Provide Lean consulting services To provide community businesses and not for profits To provide community businesses and not for profits

with a quality resource for their Lean journey.with a quality resource for their Lean journey.

Certified Lean Lead FacilitatorsCertified Lean Lead Facilitators Amy Lauko – Project ManagerAmy Lauko – Project Manager Jamie VosterJamie Voster Lisa RothbauerLisa Rothbauer Lisa CarpiauxLisa Carpiaux

Welcome & IntroductionsWelcome & Introductions

The Case for ChangeThe Case for Change

EXPECTATIONS AND EXPECTATIONS AND RESULTSRESULTS

Insanity is doing the same thing over Insanity is doing the same thing over and over again and expecting and over again and expecting

different results.different results.Albert EinsteinAlbert Einstein

Home Healthcare Home Healthcare Industry ClientIndustry Client

Value Stream MappingValue Stream MappingAgendaAgenda

Lean educationLean education• Customer satisfaction through waste eliminationCustomer satisfaction through waste elimination

• Value stream mappingValue stream mapping

Create current state mapCreate current state map

Create future state mapCreate future state map

Develop action planDevelop action plan

Event SummaryEvent Summary

Day OneDay One• Call to actionCall to action• Lean education and agendaLean education and agenda• Understand current state Understand current state • Build current stateBuild current state• Prioritize improvement areasPrioritize improvement areas

Day TwoDay Two• Review wastes identified in current stateReview wastes identified in current state• Brainstorm on futureBrainstorm on future• Design future state processDesign future state process• Define implementation plans Define implementation plans • Develop action planDevelop action plan

Henry Ford: the first person to truly integrate an entire production process.

The problem with Ford’s system: the inability to provide variety. All Model Ts were essentially identical up through the end of production in 1926.

Based on Ford’s thinking, Mr. Toyoda and Mr. Ohno created the Toyota Production System (TPS).

Toyota believed a series of simple innovations would make it more possible to provide both continuity in process flow and a wide variety in product.

TPS shifted the manufacturing from individual machines to the flow of the product through-out the total process.

Taiichi Ohno

History of LEAN

What is Lean?What is Lean?

A work philosophy of A work philosophy of eliminatingeliminating wastewaste and and increasing increasing value value of of products and servicesproducts and services

Elements of Lean ThinkingElements of Lean Thinking Learning to see Learning to see Continuous Improvement Continuous Improvement Standard workStandard work One piece flowOne piece flow Error proofingError proofing Focus on process not on peopleFocus on process not on people Employee EmpowermentEmployee Empowerment

LEAN Principles

Setup Reductions

Teams 5S

Error Proofing

TPM

Kanban

Work Cell

Standardized

Work

Kaizen

A3 Problem Solving

Value Stream Map

Increased efficienciesIncreased efficiencies Increased ability to serve more customers in the Increased ability to serve more customers in the

same timesame time Increased customer satisfactionIncreased customer satisfaction Increased timely customer access to goods and Increased timely customer access to goods and

servicesservices Improved qualityImproved quality Increased employee engagementIncreased employee engagement Reduced waste, costs, and lost opportunitiesReduced waste, costs, and lost opportunities

Benefits of LeanBenefits of Lean

Lean is not….Lean is not…. a headcount reductiona headcount reduction

an evaluation of your personal performancean evaluation of your personal performance

for companies struggling to stay in businessfor companies struggling to stay in business

a quick one-time fixa quick one-time fix

applicable only to manufacturingapplicable only to manufacturing

What is NOT Lean?What is NOT Lean?

Lean requires change inLean requires change in ThoughtThought Culture Culture PerspectivePerspective

Change must occur to achieve success. Change must occur to achieve success.

Lean Requires Change

Why Change?Why Change?

We cannot solve our problems with We cannot solve our problems with

the same thinking we used when we the same thinking we used when we

created them. created them. Albert EinsteinAlbert Einstein

Critical success factors:Critical success factors:

CommunicationCommunication LeadingLeading TrainingTraining ActingActing SustainingSustaining Plan, Do, Check, Act (PDCA) Plan, Do, Check, Act (PDCA)

Implementing Change

If the solution is not obvious, hold events If the solution is not obvious, hold events that enable small continuous improvementsthat enable small continuous improvements

These are Kaizen or Rapid Improvement These are Kaizen or Rapid Improvement Events (RIEs)Events (RIEs)

Kaizen events use problem solving tools to Kaizen events use problem solving tools to find solution. find solution.

Change in Lean is Focused on Problem Solving

What is Kaizen?What is Kaizen?

Japanese for improvement or change for the better.

It refers to a philosophy or practice that focuses upon continuous process improvement.

Business Process KaizenBusiness Process Kaizen

Teams: Members are diverseTeams: Members are diverse

Targets: Waste, Variables, and non-value added Targets: Waste, Variables, and non-value added activitiesactivities

Typically a 3 - 5 day commitmentTypically a 3 - 5 day commitment

Quick and simple, not slow and elegantQuick and simple, not slow and elegant

Management ensures the necessary resources Management ensures the necessary resources

Immediate resultsImmediate results

Standardize

IMPROVEMENT

TIME

Ka

ize

n

Ka

ize

n

Ka

ize

nFrom “Kaizen”, Masaaki Imai

Standardize

Standardize

Ka

ize

n

Starting Process

“The achievements of an organization are the results of the combined effort of each individual.”

Coach Vince Lombardi

Why do we need Teams?Why do we need Teams?

By working together, rather than By working together, rather than competing with each other, we’ll see: competing with each other, we’ll see:

Increased qualityIncreased quality Higher productivityHigher productivity Reduced costReduced cost

Teams Add ValueTeams Add Value

What’s in it for Me?What’s in it for Me? New job skillsNew job skills

Participate in decisions affecting your jobParticipate in decisions affecting your job

Realize you add value to the companyRealize you add value to the company

Team BuildingBuilding Your Team: Establish Team Guidelines Define Team Mission and Goals Conduct Effective Meetings Identify Team Roles and Responsibilities Develop Communication

Speaking and Listening Resolve Conflicts Make Group Decisions

Teamwork Fundamentals

Open communication

Team members with diverse backgrounds

Common goals

Driven to succeed

A team is a group of people working A team is a group of people working together towards a common goal.together towards a common goal.

The focus of Lean is …The focus of Lean is …

waste elimination. waste elimination.

Waste

Anything other than the Anything other than the minimum minimum resources resources required to required to add value add value to an end product or service.to an end product or service.

What is Waste?

Waste

Non-value added work, also called waste, refers to work that doesn't add value to or is unnecessary for the overall project.

Non-Value Add ActivitiesNon-Value Add Activities

Improve Evaluate

Reduce Eliminate

Value Add•Transforms material and

information into products or services

• The customer wants it•It’s done right the first time

Non-Value Add•Consumes resources but does not contribute to the

product or service

Necessary• Customers require it• Regulatory or legal compliance• Can’t eliminate based on current technology or thinking

Not Necessary

Waste WheelWaste Wheel

12

345

67

8

Motion

Waiting

Value Added Work 5 %

Over Production

Inventory

Transportation

Knowledge

CorrectionsOver

Processing

“Eliminating…waste is not the problem, identifying it is.”

Taiichi Ohno

developer of the

Toyota Production System (TPS)

The Real Problem:The Real Problem:

Examples of Waste in the OfficeMotion Going to copy machine or fax, searching for files, extra key

strokes, hand-offs, going to get signatures.

Waiting(Idle Time)

Waiting for system to come up, customer or supplier responses, handed-off file to come back, decisions.

Transportation Retrieving/storing files, carrying or posting paperwork, loops.

Defects Data entry error, missing information, re-work.

Over-Processing Repeated entry of data, “Cadillac” report when something less would do, unneeded steps, duplication, layers of approval.

Over-Production Doing more than is needed, doing things too far ahead of customer need, creating reports that no one reads, making extra

copies “just in case”.

Inventory Open projects, unread e-mails, office supplies, unused records in database, items waiting for attention.

Misused Resources

Not engaging everyone in improvement, not utilizing all skills available in the organization, unclear roles and responsibilities.

Learning to see waste..…Learning to see waste..…

If we hadn’t challenged the status quo, we wouldn’t have: microwaves, cell phones, Ipads, portable air conditioners, makes/model of cars, laptops.

A one page visual representation showing the A one page visual representation showing the flow of all processes, information and material flow of all processes, information and material

Current state analysis (snap shot) shows Current state analysis (snap shot) shows All current value added and non-value added All current value added and non-value added

processes processes Future state analysis shows Future state analysis shows

Improved value added processes and eliminates Improved value added processes and eliminates as much non-value added work as possibleas much non-value added work as possible

Action plan for target state implementation Action plan for target state implementation

Introduction to Value Stream Mapping (VSM)

Benefits of a VSMBenefits of a VSM See entire process flow of information and See entire process flow of information and

materialsmaterials

Identify waste and the source of wasteIdentify waste and the source of waste

Establish priorities for improvementEstablish priorities for improvement

Focus on low cost or no cost Focus on low cost or no cost improvementsimprovements

Reveals opportunities to improve Reveals opportunities to improve customer satisfactioncustomer satisfaction

1.1. Establish the areas of focusEstablish the areas of focus2.2. Determine Book Ends (Start/Stop points)Determine Book Ends (Start/Stop points)3.3. Identify steps by color:Identify steps by color:

Yellow Process Sheets– tasksYellow Process Sheets– tasks Pink Post-It Notes– problems/opportunitiesPink Post-It Notes– problems/opportunities Green/Red Dots – (Non) Value-Added activitiesGreen/Red Dots – (Non) Value-Added activities

4.4. Brainstorm/Creative Problem Solving as neededBrainstorm/Creative Problem Solving as needed5.5. Map future state / Create Parking LotMap future state / Create Parking Lot6.6. Prioritize changes Prioritize changes

7.7. Create Action Plan Create Action Plan

How to do a VSM

Begin with FrameworkBegin with Framework

ScopeScope Process Start: Initial call for careProcess Start: Initial call for care Process End: Customer’s 1Process End: Customer’s 1stst invoice invoice Out-of-Scope: Out-of-Scope: Needs to be filled inNeeds to be filled in

ObjectivesObjectives Eliminate 3-5 wastesEliminate 3-5 wastes Improve process flowImprove process flow Implement improvements in 30 daysImplement improvements in 30 days

Current StateCurrent State•Map out each process step within the Map out each process step within the boundaries of start / stopboundaries of start / stop•Map flow of materials from one step to the nextMap flow of materials from one step to the next•Map flow of information from start to finishMap flow of information from start to finish•Map takt time and cycle timeMap takt time and cycle time•Identify non value-added stepsIdentify non value-added steps•Identify opportunities for improvementIdentify opportunities for improvement

Current State ProcessCurrent State Process

3838

Request to Proposal Invoice to Cash Receipt

Order Confirmed thru Shipping

Focus Area for improvement due to high number of

wastes

Current StateCurrent StateProcess EffectivenessProcess Effectiveness

April 13, 2023April 13, 2023 3939

Process Metrics

Starting Baseline

Full Process

Starting Baseline

Focus Area

Total Number of Steps 45 26

# Value Adding Steps 23 13

# Non-Value Adding Steps 22 13

Number of Approvals 2 0

Number of Hand-offs 19 12

Number of Recycle Loops 12 5

Number Error Proofing Minimal 0

Prioritized Areas of FocusPrioritized Areas of Focus Brainstormed potential Brainstormed potential

improvement areasimprovement areas

Prioritized using Target Prioritized using Target Sheet and Effort/Impact Sheet and Effort/Impact GridGrid

Incorporated into future Incorporated into future state designstate design

4040

Creating the Future StateCreating the Future State

Brainstorm opportunities for potential Brainstorm opportunities for potential improvementsimprovements

Focus on (8 Wastes) low cost and Focus on (8 Wastes) low cost and no cost improvementsno cost improvements Verify management support Verify management support Verify Future State meets the established Verify Future State meets the established

goals.goals. Develop action plan for implementation Develop action plan for implementation

within 30 -60 dayswithin 30 -60 days

Future State ProcessFuture State ProcessGenerate customer order through shipmentGenerate customer order through shipment

Significantly streamlined processSignificantly streamlined process Eliminated 16 wastes vs target of 5-10 wastesEliminated 16 wastes vs target of 5-10 wastes Implementing improvements next week!Implementing improvements next week!

Future State Future State Process EffectivenessProcess Effectiveness

Process Metrics

Starting Baseline

Focus Areas

Future State Focus Areas

Actual Change

% Improved

Total Number of Steps 26 21 -5 19%

# Value Adding Steps 13 13 No change

# Non-Value Adding Steps 13 8 -5 38%

# Hand-offs 12 4 -8 67%

# Recycle Loops 5 2 -3 60%

# Error Proofing 0 2 +2 200%

Develop Action PlanDevelop Action Plan

Create teams to work on tasks Create teams to work on tasks Ensure the right members are on the Ensure the right members are on the

team team Ensure teams have support and Ensure teams have support and

resources they needresources they need Review progress regularlyReview progress regularly Celebrate successesCelebrate successes

Ensure SuccessEnsure Successof Action Planof Action Plan

IMPORTANT TASKS:IMPORTANT TASKS:

Conduct regular scheduled meetings for Conduct regular scheduled meetings for participants. participants. Inform everyone of the plan Inform everyone of the plan Inform everyone of what was learned in the Inform everyone of what was learned in the processprocess Provide a structure to work on problem solving Provide a structure to work on problem solving and to complete tasksand to complete tasks Verify progress on goals continuouslyVerify progress on goals continuously Give support for the process continuously.Give support for the process continuously. Celebrate the success of the team.Celebrate the success of the team.

Plan Do Check Act

Act -How to improve next time

Plan - What to do.How to do it.

Do -What was planned.

Check -Did things happen as planned?

Keys to SuccessTeamwork

Combat Waste

100% Quality, No Comebacks

By the end of event By the end of event you will …you will …

Create Current State MapCreate Current State Map Understand Current State problems and Understand Current State problems and

opportunities.opportunities. Create a Future State MapCreate a Future State Map Have a plan for implementing future state Have a plan for implementing future state Have started developing standard work and Have started developing standard work and

visual controls to sustain changes. visual controls to sustain changes. Celebrate your success!Celebrate your success!

Basic Ground RulesBasic Ground Rules

Maintain a positive attitudeMaintain a positive attitude Make no assumptionsMake no assumptions Take nothing personallyTake nothing personally Everyone on the team is equalEveryone on the team is equal Each person’s opinion mattersEach person’s opinion matters There are no bad ideas or stupid questionsThere are no bad ideas or stupid questions Resolve all issues respectfullyResolve all issues respectfully

Together we can do what one cannot Together we can do what one cannot do alone!do alone!