Value Stream Mapping

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Value Stream Mapping

• Sustainable Operations
• Professor Mellie Pullman

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Whats in it for you?

• A significant tool for improving any process,
• Key tool for prototyping an idea before going
  into action
• Designing a new operation, examining needed
  resource inputs (information, people, materials)
• Relevant for existing operation or new operation
• Evaluating each step to see if is adding value or
  generating waste
• Determining the costs of inputs and outputs at
  each step
• Puts new eyes on the process when you walk
  through and document through your map

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Value Stream Mapping Analysis

• Purpose to describe a process visually to find
  ways of improving the current process.
• Find repetitive operations
• Identify potential bottlenecks
• Describe directions and distances of flows
  (people, material and information)
• Look at resource use and minimums
• Create better value reduce waste

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Detailed Process Map

• Identifies the specific activities that make up
  the process. Basic steps are
• Identify the entity that will serve as your focal
  point
• Customer?
• Order, item, proposal, event package, or similar
  concept that passes through a series of process
  steps.
• Identify clear boundaries, starting and ending
  points, and lines of demarcation between
  customer, order, and other relevant information
  flows.
• Keep it simple
• Does this detail add any insight?
• Do we need to map every exception condition?

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Typical Mapping Symbols

or
Operation (task or work activity)
Inspection
Decision point (typically requires a yes or
no)
Document or order created
Delay
Storage
Transportation Move Materials, customers or
employees
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Other Value-stream Map symbols
Identifies improvement opportunity
Truck Shipment
External Source (suppliers Customers)
Process
Process Descriptor
Inputs
Outputs
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Map Example Lean CleanFinding the current
state of resource use and plan for reducing it

• Green Suppliers want to understand their resource
  and toxic material use versus the minimum
  required at each process (currently done at
  sustainably focused companies like New Belgium
  Brewery)

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1) Start Big Look at the major process steps
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2. Identify a key resource that you would like to
track (water, energy, GGE or carbon, labor, local
economy contribution, value-add time)
Comparing Usage to Needs Visually (bottom of map)
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Example Water used versus needed
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3. Focus on an opportunity area for improvement
or Innovation for new concept developers
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4. Create a process map focusing specifically on
that opportunity area
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5. Visualize an Improve Future State for the
opportunity areas (brainstorm about how to do
things differently)
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Value add LensDistinguish between Value-Add and
Non Value-Add Process Step

• Value Add (VA)
• Business Non-value-add (BNVA)
• Non-value-add (NVA)

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Value Add Steps

• Work that contributes to what your customers want
  out of your product or service
• Cooking a meal
• Measuring Cutting Material
• A more sustainable and better life
• Does it meet these criteria?
• Adds a desired function, form, or feature to the
  product or service
• Enables a competitive advantage (reduced price,
  faster delivery, socially sustainable)
• Includes an activity that a customer would be
  willing to pay for or would not prefer our
  competitors if he/she knew we did this task and
  they did not.

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Business Non-Value Add

• Activities that your customer doesnt want to pay
  for (it does not increase value in their eyes)
  but are required for some reason
• Accounting, legal, regulatory
• Is task required by law or regulation?
• Does task reduce financial/liability risk?
• Does task support financial requirements?
• Does process break down if task is removed?

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Non-value Add

• Work that does not add value in the eyes of the
  customer and they would not want to pay for it
  (nor is it required for BNVA)
• Rework, multiple signatures copies, counting,
  handling, inspecting, set-up, downtime,
  transporting, moving, delaying, storage.
• Environmental damage
• Social injustice

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Linking Processes to Value with Metrics (i.e.
measures A and B)

• Possible Measures or Metrics
• Link desired customer value to process
• Time (measure distance traveled and task time)
• Cost
• Quality
• Flexibility
• Sustainability metrics
• Set standards
• Guide design of new or redesign of existing
  process

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Including Time Quality Measures
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Mapping Exercise can lead to Potential Changes

• Raw materials
• Product (output) design
• Job design
• Processing steps used
• Management control information
• Equipment or tools
• Suppliers
• i.e. Anything but customers may be changed
  unless they do not add value!!

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Questions to ask to improve process

• What does the customer need?, operations are
  necessary? Can some operations be eliminated,
  combined, or simplified? Can the product be
  redesigned to address an issue?...
• Who is performing the job? Can the operation be
  redesigned to use labor better? Can operations be
  combined to enrich jobs? .
• Where is each operation conducted? Can layout be
  improved? .
• When is each operation performed? Is there
  excessive delay or storage? Are some operations
  creating bottlenecks? ..
• How is the operation done? Can better methods,
  procedures, or equipment be used? Can we reduce
  resources and toxic activity?