Visual Representation of a Value Stream

1
What is a Value Stream?
A value stream involves all the steps, both value
added and non value added, required to complete a
product or service from beginning to end.
What is a Value Stream Map?

• Visual Representation of a Value Stream
• Pencil Paper Tool
• Helps Reveal Waste Problems with Flow
• Establishes a common language to document
  processes
• Provides a blueprint for improvement

2
Value Stream Maps What Makes Them Unique?

• Visualizes the process flow from a Systems
  Perspective
• Includes Information Flow and links it to process
  flow
• Documents Performance of the process
• End results in meeting customer requirements
• Metrics (Process time, Weight time, Lead time,
  First time quality) to highlight waste
• Progress and quality become visible

3
Using the Value Stream Mapping Tool
Value Stream Scope
Determine the Value Stream to be improved
Understanding how things currently operate.
This is the foundation for the future state
Current State Drawing
Designing a lean flow
Future State Drawing
Standardize for later improvement
Developing a detailed plan of implementation to
support objectives (what, who, when)
Implementation Plan
Implementation of Improved Plan
The goal of mapping!
4
Typical Steps for Current State Mapping

• Document customer information needs
• Who is it? What do they need? When do they need
  it?
• Identify main processes (in order)
• Select data attributes
• P/T, W/T and FTQ
• Perform value stream walk and fill in data
  boxes (how the process really works)
• Pretend that you are the work / document / item
  being produced
• Establish how each process knows what to do next
  (how work is prioritized) and document
  information flow
• Calculate process time, wait time, lead time,
  first time quality, and any other metrics
  necessary to evaluate your Value Stream

5
Waste
Any element of production, processing, or
distribution that adds no value to the final
product waste only adds cost
time

• Points to Remember About Waste
• It is important to consider waste in the context
  of the value that the process provides to the
  customer
• Waste is really a symptom rather than a root
  cause of the problem
• Waste points to problems within the system
• We need to find and address causes of waste to
  improve flow
• Waste is most prevalent in the information flow
  of non-manufacturing processes
• Conservative expert analysis suggests up to 40
  of what we do adds no value

6
Tips for Identifying Waste

• Following are things to look for to help identify
  waste in a value stream
• Low First Time Quality (FTQ)
• Long wait times as compared to process times
• Process steps requiring multiple
  iterations/reviews rework
• Excessive handoffs between people/organizations
• Multiple systems/computer tools used may point
  to redundant data entry translations
• Starting too early Does the process start
  earlier than it needs to, with preliminary data,
  driving multiple updates/reworks as real data
  becomes available?
• Look at the system level first for
  opportunities to make bold moves
• Look for potential to eliminate entire process
  steps before focusing on eliminating waste from
  unnecessary processes

7
Current State
Future State
Grasp the Situation Where Are We? vs. Where
Should We Be?
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Rule of Thumb for Process Improvements

• Customer requirements? 
• Work flow smoothly?
• Trigger sequence work?
• Rhythm (leveling)?
• Progress delays visible?
• Process improvements?

• To Improve the Performance of a Value Stream,
  plan at the System Level and implement at the
  Process Step Level
• Ensure adequate and available resources to
  implement improvements in the future state Value
  Stream
• Process improvements must be standardized and
  documented to take hold in the organization
• Provide feedback to team members, supervisors,
  and managers and make it possible for all
  employees to contribute to continuous improvement

9
Future State Questions

• What are the customer requirements? 
• How can we ensure that the customer gets what
  they need, when they need it?
• Can the timing of the customer requirements be
  used to establish a pace of work (takt time) for
  the value stream?
• How will you make work flow smoothly? 
• How can we get information to the customer with
  few/no handoffs? 
• How can we get information to the customer with
  no correction or rework required?
• How will multiple or parallel flows be
  synchronized?
• Is there backflow (repeat or rework) loops that
  can be eliminated?
• Can a person complete the activity in one
  sitting?
• Can you touch each piece of paper only once, or
  go to each screen only once, for each activity?
• What steps could be combined or eliminated to
  simplify flow?
• Where and how will you trigger or sequence work?
• Can you have one trigger point with uninterrupted
  process flow?
• How will you establish rhythm or milestones to
  pace the work and surface problems?
• How will you use milestones to create an internal
  pull to establish cadence / rhythm?
• What can be done to level the workload and
  eliminate the frustrating peaks and valleys?
• How will you make work progress and delays
  visible?
• What visual management tools will you use to make
  progress delays visible?
• How will you be sure you know the progress of the
  work?

10
Business Plan Deployment
Status
Methods
Responsible
11
Business Plan Deployment Is a PDCA Cycle
Countermeasure Action Plans
1
BPD Plan
4
Plant Master Plan
Tasks
Do the Plan
2
3
Check (evaluation)
Plan
Do
2
x
Check
Act
12
Typical VSM Project