Value Stream Mapping

Value Stream MappingDefining the Value Stream

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Value StreamValue Stream: The flow of materials and information through a process to provide a product or service to a customer; including operations and equipment needed.Value Stream MappingValue Stream Mapping: Involves walking and drawing the processing steps (material and information) for one product/service family from door to door.

Systems ApproachValue Stream AValue Stream BValue Stream CBenefits of Value Stream MappingVSM allows you to see beyond the single process step and see process flow.VSM allows you to see sources of waste in the value stream.VSM provides a common language to discuss issues.VSM links lean concepts and techniques.VSM provides a blueprint for improvement.

Benefits of Value Stream MappingVSM shows the linkage between information flow and material flow.VSM makes decisions regarding flow apparent.VSM is both a quantitative and qualitative tool, with the qualitative being most significant.

Consider..what benefits might be realized within your organization using Value Stream Mapping?

VSM UsesProject planning and reportingHigh level strategizingAligning improvements with strategic planTraining (visual aids)Patient educationExplaining procedures to patients

VSM UsesDemonstrating/documenting improvements to regulatory agenciesCommunicating change between departmentsInitiating new policiesReplacing or augmenting policy manuals

Value Stream MappingValue Stream Mapping ProcessDefining a Product/Service FamilyProcess Steps and EquipmentProducts/Services12345678A

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XXXXFlow Chart versus VSMFlow Charting

Visual representation of processGenerally localized within functional areaIdentifies process steps Value Stream Mapping

Visual supplemented with selected process dataCrosses functional boundaries (door to door)Illustrates process steps and information flowProduct/Service FlowProduct/Service FlowInformationMaterialValue Stream ManagerValue Stream Manager: In an organization structure designed most fully to reflect lean philosophy, all the support groups related to making a value stream operate would report on a solid line to Value Stream Manager.

Value Stream Manager ApproachValue Stream AValue Stream BValue Stream CVSM AVSM BVSM CVSM Job DescriptionReports lean implementation progress to top person on sitePerson with capability of making change across functional and departmental boundariesLeads the creation of current state and future state maps and implementation plansMonitors all aspects of implementation

VSM Job DescriptionWalks and checks the flow of the value stream daily or weeklyMakes implementation a top priorityMaintains and periodically updates the implementation planInsists on being a hands on person

Two KaizensFlow Kaizen(Value Stream Improvement)Process Kaizen(Elimination of Waste)FocusTask LevelSenior Management.VSM StepsProduct/Service FamilyCurrent State DrawingFuture State DrawingImplementation PlanValue Stream MappingCurrent State Map

Four Levels of MappingProcess LevelSingle Facility(Door to Door)Multiple FacilitiesAcross CompaniesMapping TipsCollect current state information while walking the actual pathway of material and information flowBegin with a quick walk along the entire door-to-door value streamBegin at discharge and work upstreamBring your stopwatch and do not rely on standard timesMap the whole process yourselfConfirm observations with task experts

One Final TipDraw by hand with a pencil

can be done without delayallows task expert ability to do the mappingfocuses on understanding of material and information flow, rather than how to use computer

Questions to AskIs it clear what should happen, in what order, and is there an approximate time frame for completion?Is every step in the current process adding value to the patient?Is the participation of every person that touches the process necessary?Does everyone do the process the same way?

Questions to AskHow does new worker learn the process?How did you learn the process?About how long should it take to complete the process?Is the expected outcome clearly understood?What is the expected outcome?

Takt Time: literally the beat of the process, it is the pace of production or service based on customer consumption.

Lean Definitions

Cycle Time: total amount of elapsed time from the time a task, process or service is started until it is completedLean DefinitionsC/TValue-Creating Time: time of work element that actually transforms product or service in a way that the customer is willing to pay for Lean DefinitionsVCT Lead Time: time it takes one product or delivery of service to move all the way through the value stream from start to finishLean DefinitionsL/TYour Data and Your AssignmentDetermine the source of process data needed

Develop a plan to collect the data

Bring the data with you to the next session

Three Zones of VSMUpper Third-Information Flow

Middle Third-Process Flow

Bottom Third-Process DataMaximum, minimum, and average process timeValue added timeNon-value added timeStep #1Begin with the CustomerCardiac PatientStep #1-Add Customer RequirementsCardiac PatientImmediate attentionAppropriate treatmentAccurate diagnosisStep #2-Process StepsAdd Process Steps, Data Boxes, Task Experts, Delay and Inventory Triangles across the bottomIC/T=C/O=VCT=Uptime=Seconds available=

C/T=C/O=VCT=Uptime=Seconds available=

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IDCheck inRN ConsultMD ConsultStep #3-Add Material FlowIC/T=C/O=VCT=Uptime=Seconds available=

C/T=C/O=VCT=Uptime=Seconds available=

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IDCheck inRN ConsultMD Consult37Step #4-Add Information FlowIC/T=C/O=VCT=Uptime=Seconds available=

C/T=C/O=VCT=Uptime=Seconds available=

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ICheck inRN ConsultMD ConsultDStep #4-Add Push ArrowsIC/T=C/O=Uptime=Seconds available=

C/T=C/O=Uptime=Seconds available=

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ICheck inRN ConsultMD ConsultDStep #5-Add TimelineIC/T=C/O=Uptime=Seconds available=

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ICheck inRN ConsultMD ConsultDPractice TimeWorking in table groups create a Current State Value Stream Map for a Value Stream in your organization

Value Stream MappingLean Value Stream

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Lean Value Stream GoalAll we are trying to do in lean value stream is to get one process to deliver product or service to the customer in the most efficient way possibleWe are trying to link all processes-from the final customer back upstream in a smooth flow without detours that generates the shortest lead time, highest quality, and lowest cost.

Transport (Conveyance)InventoryMotion (Movement)Waiting (Delay)OverproductionOver-processingDefects (Correction, Repair, Rejects)

Which source is costing you the most?

Sources of Waste (Muda)

Timeline and WasteIC/T=C/O=Uptime=Seconds available=

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ICheck inRN ConsultMD ConsultDReview your current state value stream map. Label areas of waste.

Which source is costing you the most?

Sources of Waste (Muda)

Old paradigm:Cost + Profit = Price

New paradigm:Price (fixed) Cost = Profit

Key to profitability:Cost reductionThe Goal Is..Fixed Price48Consider.how are costs established in your organization?

how is waste impacting cost to your organization?

Cost Dollars of OutputCost = Dollars of Input

Guidelines to a Lean Value StreamProvide service at your takt timeConsider whether process is necessaryEvaluate activities within a process boxOptimize order of activities Optimize order of processes Consider information flowEvaluate complexityDetermine consistency

Guideline #1Provide service at your takt time

available working time per day=customer demand rate per day

Timeline and Takt TimeIC/T=C/O=Uptime=Seconds available=

C/T=C/O=Uptime=Seconds available=

C/T=C/O=Uptime=Seconds available=

ICheck inRN ConsultMD ConsultDTakt TimeSynchronizes pace of delivery with pace of demand

Tells you how often service needs to be completed or product produced to meet customer requirements

Tells you how you are doing and where improvement is needed

Guideline #1 requirements:

Rapid response (within takt) to problems

Eliminate causes of unplanned disruptions

Eliminate non-value added steps

Reflectwhat inherent changes associated with the first guideline would be necessary in your organization?

what might be the challenges to implementing these changes?

Guideline #2Consider whether process is necessaryWhat is its purpose?Does it add value?Can it be eliminated?

AIBCACDI57Guideline #2Evaluate.Each process step of your value steam using guideline #2

What did you find?

Guideline #3Evaluate activities within a process boxAre all steps adding value?Are they being done consistently?Do they involve more people than necessary?

a.1a.2a.3a.etcProcess AGuideline #4Optimize order of activities Are process activities being done in same order consistently?Are they being done in the best order?Are there redundant activities?Could activities be done more efficiently in a different process box?a.1a.2a.3a.etcGuidelines #3 and #4Your TurnEvaluate and Optimize activities within each Process Boxa.3a.1 a.3 b.1Process AProcess AGuideline #5Optimize order of processes Are process boxes in optimal order?Can process steps be combined?

AIBCBACD62Guideline #6Consider information flowIs information flow direct and simple?Is information in each box original (not redundant)?What information is missing?

Guideline #7Evaluate complexityAre there more process steps necessary to provide the intended outcome?How can processes be simplified?

Your Turn.Optimize order of processesConsider Information FlowEvaluate complexity

Share your results

Guideline #8Determine consistencyWhat areas of inconsistency exists within the value stream?What might you learn from these inconsistencies?

Value Stream MappingFuture State Map

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Purpose of Value Stream MappingPurpose: to highlight sources of waste and eliminate them by implementation of a future-state value stream that can become a reality within a short period of time.

Source: Learning to See by Rother and Shook

Goal of Value Steam MappingGoal: to build a chain of product or service delivery where the individual processes are linked to their customer(s) either by continuous flow or pull, and each gets as close to possible to providing only what its customer(s) need when they need it.Source: Learning to See by Rother and Shook

Future-State Map AssumptionsFirst iteration future-state map should take as givens:Product or Service DesignProcess TechnologiesCurrent Facilities

Ask: What can we do with what we have?

Source: Learning to See by Rother and ShookQuestions to Ask-Future-State MapWhat is the takt time?Where is the bottleneck operation?What is the pacemaker process?Where can you achieve continuous flow processing?Where will you need to use supermarket pull systems?

Questions to Ask-Future-State MapAt what single point in the value stream (pacemaker process) will you schedule work?How can work be smoothed at the pacemaker process?What process improvements/changes will be necessary?

Question #1What is the takt time?

Available Working Time = takt timeCustomer Demand

Evaluate each process step relative to takt time

Question #2Where is the bottleneck process?

Determine which process has longest cycle timeHow does longest cycle time compare to takt time?What are the implications?What actions are suggested?

Question #3What is the pacemaker process?The pacemaker process:Sets the pace for the value streamIs the only operation scheduledIs process closest to the customer that provides continuous flow

Determine your pacemaker processWhat are the implications?

Question #4Where can you achieve continuous flow processing?

Evaluate the cycle time of your processesWhere do you see interruptions in flow?How might you achieve continuous flow?

Question #4

Is there continuous flow?Question #4

Closer to continuous flow?Question #4

Continuous flow achieved?Question #4

What changes will be necessary to achieve flow

Where can you achieve continuous flow processing?KaizenQuestion #5Where will you need to use supermarket pull systems?

Used as a store of in-process work where continuous flow cannot be achievedOften necessary when a single process is serving multiple value streams

Question #5 Where will you need to use supermarket pull systems?

Process 1Process 2KanbanSupermarketKanbanQuestion #5 Where will you need to use supermarket pull systems?Kanban is a signal that triggers replenishment or withdrawal in a pull system

Where and what types of kanban will you use in your value stream?

KanbanQuestion #6 At what single point in the value stream (pacemaker process) will you schedule work?How is this different from current practice?What challenges does it present?

Process 1Process 3Process 2ScheduleQuestion #7How can work be smoothed at the pacemaker process?

What are sources of mura?How might they be overcome?

Demand Equal to Takt TimeQuestion #8

What process improvements/changes will be necessary?Kaizen1Kaizen 2Kaizen 3Value Stream MappingAchieving the Future State

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Reality CheckIn considering the future state you should realistically assess:Do we have the human resources to commit to make the change happen?Is there sufficient support from leadership?Are improvements consistent with strategic direction of the organization?Are there constraints of cost and competing initiative?

Break Implementation into StepsPacemaker Loop:Encompasses the flow of materials and information between your customer and your pacemaker process. The most downstream loop in a facility, it impacts all upstream processes.Additional Loops: Upstream of the pacemaker loop are material and information flow loops between pulls.Establish OutcomesFor the pacemaker loop and all other loops establish objectives and goals.

The Value Stream PlanBased on the future state map the value stream plan shows:Exactly what you plan to do by when, step-by-stepMeasureable goalsClear checkpoints with real deadlines and named reviewers

Future State Map to A3Report Theme:

BackgroundCurrent ConditionGoalRoot-Cause AnalysisCountermeasuresEffect ConfirmationFollow-up ActionsPlanDo, Check, ActKaizenAnd finallyValue Stream Plan Review

Maintains commitment and accountability

While recognizing the need for flexibility in executing implementation plan

Share an insight, question, concern, or confusion regarding Value Stream MappingReview Time

Chart1Process 11Process 239Process 346Process 462Process 540

Takt TimeCycleTime

Sheet1CycleTimeProcess 11Process 239Process 346Process 462Process 540

Chart1Process 1/240Process3/453Process 455Process 540

Takt TimeCycleTime

Sheet1CycleTimeProcess 1/240Process3/453Process 455Process 540

Chart1Process a47Process b47Process c47Process d47

Takt TimeCycleTime

Sheet1CycleTimeProcess a47Process b47Process c47Process d47

Chart1Hour 13Hour 240Hour 338Hour 415Hour 514Hour 615Hour 712Hour 83

Demand

Sheet1DemandHour 13Hour 240Hour 338Hour 415Hour 514Hour 615Hour 712Hour 83