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VSM Basics

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Value Sream Mappig Basics

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  • Value Stream Mapping Basics

  • VSM Basics V7.6 - Slide 2 2012 Massachusetts Institute of Technology

    Learning Objectives

    At the end of this module, you will be able to:

    Sketch a basic value stream map

    Demonstrate basic value stream analysis

    Recognize steps for process improvement using value stream mapping and analysis

  • VSM Basics V7.6 - Slide 3 2012 Massachusetts Institute of Technology

    Hot Dog Stand Process Map

    How can Sasha and Andy improve their productivity to meet growing customer demand?

    No

    Yes

    10 - Set up

    5 Another

    dog ?

    9 - Deliver to customer

    2 In

    order

    3 - Get order Cook dogs

    4 - Put in bun, wrap, add fruit

    8 - Add beverage

    11 - Clean up

    6 Out

    order

    1- Take order 7

    Order OK ?

    Yes

    No

    $

    $

    Image by MIT OpenCourseWare.

  • VSM Basics V7.6 - Slide 4 2012 Massachusetts Institute of Technology Ref: James Womack and Daniel T. Jones, Lean Thinking (New York: Simon & Schuster, 1996).

    Five Lean Thinking Fundamentals

    Specify value: Value is defined by customer in terms of specific products and services

    Identify the value stream: Map out all end-to-end linked actions, processes and functions necessary for transforming inputs to outputs to identify and eliminate waste

    Make value flow continuously: Having eliminated waste, make remaining value-creating steps flow

    Let customers pull value: Customers pull cascades all the way back to the lowest level supplier, enabling just-in-time production

    Pursue perfection: Pursue continuous process of improvement striving for perfection

  • VSM Basics V7.6 - Slide 5 2012 Massachusetts Institute of Technology

    Value Stream Map (VSM)

    A tool used to improve a process by identifying added value and eliminating waste

    A process map that follows the value creation process strap yourself to the product (or service)

    and see where you go

    A process map with data added Times: processing, wait, cycle Quality: number of rejects Inventory Resources

    Number of people Space Distance traveled

    Whatever else is useful for analyzing the process

  • VSM Basics V7.6 - Slide 6 2012 Massachusetts Institute of Technology

    Steps for Creating a VSM

    1. Define customer value and the process Walk the process to identify tasks and flows Identify value-added and waste process steps

    2. Create the current state VSM Gather data on resources, time, quality for each step

    3. Analyze map to determine opportunities for improvement Identify bottlenecks and other flow impediments Brainstorm actions to eliminate waste and add value

    4. Create a future-state map to visualize the desired and realistic next state

    5. Create action plans to move toward future state

  • VSM Basics V7.6 - Slide 7 2012 Massachusetts Institute of Technology

    Step 1: S&A Customer Value and Process Map Current Demand

    50 customers 100 hot dogs Customer Value

    Good food Faster service

    No

    Yes

    10 - Set up

    5 Another

    dog ?

    9 - Deliver to customer

    2 In

    order

    3 - Get order Cook dogs

    4 - Put in bun, wrap, add fruit

    8 - Add beverage

    11 - Clean up

    6 Out

    order

    1- Take order 7

    Order OK ?

    Yes

    No

    This process map follows the value creation process

    Value/waste assessed at each process step

    $

    $

    Image by MIT OpenCourseWare.

  • VSM Basics V7.6 - Slide 8 2012 Massachusetts Institute of Technology

    Step 2: Add Data

    No

    Yes

    10 - Set up 5

    Another dog

    ?

    9 - Deliver to customer

    2 In

    order

    3 - Get order Cook dogs

    4 - Put in bun, wrap, add fruit

    8 - Add beverage

    11 - Clean up

    6 Out

    order 1- Take order

    7 Order

    OK ?

    Yes

    No 10%

    T = 30 sec

    Qual = 100%

    T = 11 sec

    Qual = 90%

    T = 33 sec

    T = 48 sec

    Qual = 100%

    T = 110 sec

    Qual = 100%

    T = 44 sec

    Qual = 100%

    T = 22 sec

    T = 10 sec

    Qual = 100%

    T = 48 sec

    Qual = 100%

    T = 60 sec

    Qual = 100%

    T = 30 sec

    Display of relevant data completes basic VSM

    $

    $

    Image by MIT OpenCourseWare.

    Images by MIT OpenCourseWare.

  • VSM Basics V7.6 - Slide 9 2012 Massachusetts Institute of Technology

    S&A Takt And Cycle Times

    Takt time = Available timeCustomer demand

    =4hrs 60min /hr50 customers

    = 4.8min = 288 sec

    Cycle time (summed from previous data) = 7.4 min = 446 sec

    Open from 10AM - 2PM Current demand 50 customers

    Cycle time > takt time, but two workers can demand be met?

    10 - Set up 11 - Clean up

    Valid alternate calculation assume setup/cleanup is done when things are slow

    Takt time = Available timeCustomer demand

    =4hrs 50min /hr50 customers

    = 4.0min = 240 sec

    Cycle time (excluding set up & clean up) = 5.8 min = 350 sec

    asi122Line

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  • VSM Basics V7.6 - Slide 10 2012 Massachusetts Institute of Technology

    Step 3: Value Stream Analysis

    Sasha Andy

    With your team, take 15 minutes to Calculate the total Value added time Non value added time Wait time

    Calculate the total touch time that Sasha and Andy spend on a single order

    Be ready to report your answers to the class

    Image by MIT OpenCourseWare. Image by MIT OpenCourseWare.

    asi122Line

  • VSM Basics V7.6 - Slide 11 2012 Massachusetts Institute of Technology

    Utilization and Capacity VAT is only slightly over 50% Opportunities for improvement Available time = 4 hours = 240 min Worktime: Touch time per order X number of orders Sashas tasks: /60 min X 50 cust. = _____ min Andys tasks: /60 min X 50 cust = _____ min Utilization: Worktime / time available Sashas: (_____min / 240 min) X 100% = ____% Andys: (_____min / 240 min) X 100% = ____% Capacity: Time available / touch time per order Andy working at 100% = (240min X 60) / _____sec = ___

  • VSM Basics V7.6 - Slide 12 2012 Massachusetts Institute of Technology

    Utilization and Capacity VAT is only slightly over 50% Opportunities for improvement Available time = 4 hours = 240 min Worktime: Touch time per order X number of orders Sashas tasks: /60 min X 50 cust. = _____ min Andys tasks: /60 min X 50 cust = _____ min Utilization: Worktime / time available Sashas: (_____min / 240 min) X 100% = ____% Andys: (_____min / 240 min) X 100% = ____% Capacity: Time available / touch time per order Andy working at 100% = (240min X 60) / _____sec = ___

    159 224

    133 187

    133 187

    55 78

    224 64

    We will consider complications like varying orders or irregularly spaced customers in the Variation Module

  • VSM Basics V7.6 - Slide 13 2012 Massachusetts Institute of Technology

    Summary - S&A Value Stream Analysis (VSA)

    Current production (50 customers) is a little below current capacity (64 customers) of Andy and Sasha Process improvement needed to meet growing

    demand

    Andy and Sasha are both underutilized But utilization is not balanced between them

    Cycle time of 7.43 min per customer (or even 5.8 min) too long Should be able to shorten cycle time to meet

    demands of customers for faster service

    Bottom Line Sasha and Andy should implement process

    improvement for week 3 to meet growing demand!

  • VSM Basics V7.6 - Slide 14 2012 Massachusetts Institute of Technology

    Improvement Brainstorm

    Help Sasha and Andy figure what to improve How can utilization be improved? How can cycle time be reduced? What has to be done to serve 75 customers? What has to be done to serve 100 customers?

    Sasha Andy Image by MIT OpenCourseWare. Image by MIT OpenCourseWare.

  • VSM Basics V7.6 - Slide 15 2012 Massachusetts Institute of Technology

    No

    Yes

    10 - Set up

    5 Another

    dog ?

    9 - Deliver to customer

    2 In

    Order

    3 - Get order Cook dogs

    4 - Put in bun, wrap, add fruit

    8 - Add beverage

    11 - Clean up

    6 Out

    Order

    1- Take order 7

    Order OK ?

    Yes

    No

    Brainstorm Bursts

    NVA Inspection

    NVA Inspection

    Balance Work

    $

    $

    Image by MIT OpenCourseWare.

  • VSM Basics V7.6 - Slide 16 2012 Massachusetts Institute of Technology

    Steps for Creating a VSM

    1. Define customer value 2. Create a current state map

    Walk the process to identify tasks and flows Gather data on resources, time, quality for each

    3. Analyze map to determine opportunities for improvement Identify value-added and waste Brainstorm actions to eliminate waste and add value

    4. Create future-state map to visualize the desired state

    5. Create action plans to move towards future-state

  • VSM Basics V7.6 - Slide 17 2012 Massachusetts Institute of Technology

    Why is VSM a Useful Tool?

    Helps visualize interactions and flows

    Shows linkages between information and product flows

    Provides a common language for talking about a process

    Helps to identify: the constraint(s) - any resource whose capacity is

    less than customer demand; wastes as well as their sources

    Adapted from: M. Rother and J. Shook, Learning to See, Lean Enterprise Institute, 1998

  • VSM Basics V7.6 - Slide 18 2012 Massachusetts Institute of Technology

    Tips for Creating a VSM

    Involve entire team

    Actually walk the process - follow the material and information through the process, starting at the beginning

    Use Post-it notes and butcher paper

    Use symbols or icons that are meaningful to the process but common enough to be understood by all involved

  • VSM Basics V7.6 - Slide 19 2012 Massachusetts Institute of Technology

    Visit Clinic

    Phone call

    Phone call

    LEGEND

    2.1

    4.4

    Disc

    harg

    e

    Disc

    harg

    e

    3.1

    14.0

    1.6

    2.2

    9.7

    19.1

    20.7

    31.2

    Phone call

    - No shows 2%

    - On-time starts 37%

    - Document delays 12%

    Reception

    Obtain Demographics

    mini-reg & Send packet Reception

    Call patient to schedule

    - Volumes by service 13.0%

    - Lead-time by service - varies

    Reception

    Input Med HistoryHot

    Jefferson Healthcare Clinic - Current State MapOVERALL CLINIC DATA

    - Cost per visit - $125.39

    - Avg. Pts per hour - 1.83

    - Available hours per day 67

    PATIENT

    Reception

    Check-in patient for

    visit

    RN

    Room & perform

    vitals, etc.

    - On-time starts 37%

    - Time by diagnosis Chart D

    - Volume by hour Chart E

    - Schedule on 1st call 0% - # of Pts on panel - 5998

    - Days out for first 3rd visit 2.00

    - Days out by provider- see chart C

    2.3

    4.8 walk or return

    Walk tohospital

    Hospital Registration

    Register for Ancillary Services

    - Referral volume 14.5 %

    MD, PA

    See patient

    HOSPTIALAncillary Services

    PATIENT DATA

    - Volumes - 131 visit/day

    - Market share - Hospital 46.7%

    - Cancel by reason - see chart A

    - Payor mix commercial 38%

    - Satisfaction overall 74.4

    - Volume by Diagnosis See chart BWait for ex prov

    to return info

    Wait for pt to

    return packet

    Reception

    Receive call & Send

    registration packet

    Reception

    RequestMed

    History records

    Reception

    Receive Med History

    & Call to Schedule Reception

    InputMed History

    Document delays 2%- Schedule on 1st call 0% - # of Pts on panel 5997

    - Days out for first 3rd visit 3.75

    - Days out by provider - See C

    EXTERNALPROVIDERS

    Disc

    harg

    e

    Reception

    Pre-reg, Schedule, & Send packet

    Reception

    Input Med History

    following Check-in

    - Document delays 30%- Schedule on 1st call 100%

    - # of Pts on panel 5886

    - Days out for new visit - 15.01

    - Days out by provider See Chart C

    Days out for first 3rd visit 1.16

    = JMPG Scheduling

    = OPC Scheduling

    = PTFP Scheduling

    = Clinic flow (all sites)

    = Hospital Services

    = Patient

    Reg PktV1

    Reg PktV2

    Reg PktV2

    Enterprise

    Enterprise

    Enterprise

    Enterprise

    Enterprise

    ROSV1

    ROSV1

    ROSV2

    MedHistory

    Enterprise EMRInterface

    Medlist

    EMR Orders

    Scripts

    Educ.

    Routing Slips

    EXTERNALPHARMACIES

    Referral Coordinator

    Check-outpatient

    MediTechInterface

    Scripts

    EMR Referrals

    Radfilm

    MediTechEMR

    EMR

    EMR

    Salmon reminder (PTFP)

    = Patient on schedule

    - Blocked Hours 67/day

    - Contact Hours 59/day

    - Utilization 88%

    C/T

    L/T

    Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.

    Industrial Strength Example

  • VSM Basics V7.6 - Slide 20 2012 Massachusetts Institute of Technology

    Additional Graphic Elements

    Time

    Org

    aniz

    atio

    n

    Swim Lanes organize tasks by time and organization

    Many ways to clarify the process and present data in easy-to-understand form

    Castle Wall shows task and wait times

    TT TT TT WT WT WT SUMS

    TT WT

    Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.

  • VSM Basics V7.6 - Slide 21 2012 Massachusetts Institute of Technology

    More Information

    Courtesy of Lean Enterprise Institute. Used with permission.

  • VSM Basics V7.6 - Slide 22 2012 Massachusetts Institute of Technology

    Reading List

    Jimmerson, C., Value Stream Mapping for Healthcare Made Easy, Productivity Press, New York, NY, 2010

    McManus, H., Product Development Value Stream Mapping (PDVSM Manual), Release 1.0, Sept 2005. Lean Advancement Initiative.

    Rother, M. and Shook, J. Learning to See, v1.2, The Lean Enterprise Institute, Cambridge, MA June 1999

  • VSM Basics V7.6 - Slide 23 2012 Massachusetts Institute of Technology

    Acknowledgements

    Contributors Sharon Johnson Worcester Polytechnic Inst. Jose Macedo Cal Poly San Luis Obispo Hugh McManus Metis Design Ted Mayeshiba USC Earll Murman MIT

  • MIT OpenCourseWarehttp://ocw.mit.edu

    16.660J / ESD.62J / 16.853 Introduction to Lean Six Sigma MethodsIAP 2012

    For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.


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