value stream mapping for service

Apr 12, 2023 www.leanteamsusa.com 1

Robert BairdPresident

+1 215 353 0696

Value Stream Mapping for Service (Case Study)


Step 1 Step 2 Step 3Receive Order

Customer Value

Any organization

that has collective goals

completes work in Process


Value Stream Mapping benefited manufacturing since 1950

Why not in Service?

A Misunderstanding of Terms?

Obtaining System Targets

So What Measures Are Used

in Value Stream Mapping

to Facilitate Obtaining Targets


Manufacturing• Cycle Time

• Time to complete one unit (Minutes)• Throughput

• Units/Hr.• Uptime

• % of schedule processing units• Changeover

• Preparation time for next order• Inventory

• Unit WIP• Defects

• Yield Loss%• Distance Traveled

• From one process to another (Feet)• Value Add Time

• Part of cycle time adding customer value• Non-Value Add Time

• Part of cycle time adding no value to customer

Service• Cycle Time

• Time to complete one item (Hour)• Throughput

• Items/Hr.• Uptime

• % of work hours processing step items• Changeover

• Preparation time for next order• Inventory

• Item WIP• Defects

• Item error%• Distance Traveled

• From one process to another (Feet) • Value Add Time

• Part of cycle time adding customer value• Non-Value Add Time

• Part of cycle time adding no value to customer

Value Stream Term Comparison

www.leanteamsusa.com 6

Service Organization Case

Customer OrderProcess

Apr 12, 2023 7

Small sporting equipment business is experiencing strong growth but customers are complaining about the time to fulfill their orders

Problem

Apr 12, 2023 8

Customer Order Charter

Reduction of Lead Time to 1 hourOrders Processed per day Increase capability to 40

Customer Order Process


Customer RequirementScheduled Time 7 HoursOrders per day 30Takt Time 0.23 Hr.

Receive Order

2

Package

6 4

.33 Hr..17 Hr.

.14 Hr..14 Hr.

.75 Hr..25 Hr.

Current StateOrder Entry

Fulfill

1

.67 Hr..17Hr. Lead

Time = 2.62 Hr.

Receive OrderCycle Time (Hr.) 0.17Throughput (items/Hr.) 6Items per day complete 30Uptime (%) 71.4%Changeover (min) 20Inventory (WIP) (items) 2WIP Time (Hr.) 0.33Defects 99.99%Distance travelled (Ft.) 400Value Add Time (Hr.) 0.12Non-Value Add (Hr.) 0.05Number of People 1

Order EntryCycle Time (Hr.) 0.14Throughput (items/Hr.) 7Items per day complete 33Uptime (%) 67.5%Changeover (min) 10Inventory (WIP) (items) 1WIP Time (Hr.) 0.14Defects 99.95%Distance travelled (Ft.) 0Value Add Time (Hr.) 0Non-Value Add (Hr.) 0.14Number of People 1

FulfillCycle Time (Hr.) 0.25Throughput (items/Hr.) 4Items per day complete 34Uptime (%) 60.0%Changeover (min) 30Inventory (WIP) (items) 6WIP Time (Hr.) 0.75Defects 98.00%Distance travelled (Ft.) 2100Value Add Time (Hr.) 0.2Non-Value Add (Hr.) 0.05Number of People 2

PackageCycle Time (Hr.) 0.17Throughput (items/Hr.) 6Items per day complete 32Uptime (%) 75.0%Changeover (min) 20Inventory (WIP) (items) 4WIP Time (Hr.) 0.67Defects 99.99%Distance travelled (Ft.) 300Value Add Time (Hr.) 0.08Non-Value Add (Hr.) 0.09Number of People 1

Total0.73

430

8013

1.8997.93%

28000.4

0.335

Visual Review



Receive Order

2

Package

6 4

.33 Hr..17 Hr.

.14 Hr..14 Hr.

.75 Hr..25 Hr.

Current StateOrder Entry

Fulfill

1

.67 Hr..17Hr. Lead

Time = 2.62 Hr.

Receive OrderCycle Time (Hr.) 0.17Throughput (items/Hr.) 6Items per day complete 30Uptime (%) 71.4%Changeover (min) 20Inventory (WIP) (items) 2WIP Time (Hr.) 0.33Defects 99.99%Distance travelled (Ft.) 400Value Add Time (Hr.) 0.12Non-Value Add (Hr.) 0.05Number of People 1

Order EntryCycle Time (Hr.) 0.14Throughput (items/Hr.) 7Items per day complete 33Uptime (%) 67.5%Changeover (min) 10Inventory (WIP) (items) 1WIP Time (Hr.) 0.14Defects 99.95%Distance travelled (Ft.) 0Value Add Time (Hr.) 0Non-Value Add (Hr.) 0.14Number of People 1



Total0.73

430

8013

1.8997.93%

28000.4

0.335


Path to Charter Objectives

• Determine new Takt time

• Identify downtime causes• Eliminate or combine unnecessary process

steps (non-value add)• Reduce items waiting in WIP• Reduce distance travelled between process

steps – question current layout



Identify Solutions to Meet Charter

Lead Time

Combine process steps

New layout (cell structure)

One Piece Flow

Throughput

Kaizen downtime causes

Improve changeover time

Improve Quality

WIP Reduction Increase Operator Uptime

Customer Order Process



Receive & Enter Order

1 1

.17 Hr..17 Hr. .10 Hr.

.20 Hr.

Future StateFulfill Package

1

.17 Hr..17Hr. Lead

Time = 0.97 Hr.

Receive & Enter OrderCycle Time (Hr.) 0.17Throughput (items/Hr.) 6Items per day complete 40Uptime (%) 95.0%Changeover (min) 12Inventory (WIP) (items) 1WIP Time (Hr.) 0.17Defects 99.99%Distance travelled (Ft.) 10Value Add Time (Hr.) 0.16Non-Value Add (Hr.) 0.01Number of People 1



Total0.53

540

35

30.43

99.97%38

0.480.06

4

• Combining process steps because of a new layout reduced information and product travel, this was the most significant contribution towards achieving the growth to 40 orders per day and reduction of lead time by -63%

• Non-value added time was reduced by -81.8% through combining process steps and two Kaizen events.

• Reducing changeover time contributed towards improving Uptime• New layout enabled “one piece flow” of order completion and one less person

(this person moved to continuous improvement efforts)• Improving quality at Fulfill step contributed towards improving Uptime

Apr 12, 2023 14

Result

From Lean Teams USA

Contact Us • Lean Teams USA Lean Consulting

• View My Profile on LinkedIn

• Lean Teams USA +1 215 353 0696


http://www.leanteamsusa.com/

http://www.linkedin.com/in/robertbaird10

value stream mapping for service

Business

wip time

changeover time

manufacturing cycle

order cycle time

package cycle time

order entry cycle time

new takt time

reduction of lead time