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Value Stream Mapping Value Stream Mapping Gaining Traction,Gaining Traction,Getting ResultsGetting Results
NITHYA.CNITHYA.C
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AgendaAgenda
1 Obstacle to Traction - WASTE1 Obstacle to Traction - WASTE
22 Benefits of Value StreamBenefits of Value Stream
MappingMapping33 What is Value Stream Mapping?What is Value Stream Mapping?
44 A Road Map for ImprovementA Road Map for Improvement
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What is WASTE?
Any Activity that DOES NOT increase theMarket Form or Function of the Product orService based on the Critical Customer
Requirements.
These are things the customer is NOT
willing to pay for.
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Definition of ValueDefinition of ValueAddedAdded
Value Added
Any activity that increases the market form or function of the
product or service. (These are things the customer is willing to
pay for.)
Non-Value Added
Any activity that does not add market form or function or is not
necessary. (These activities should be eliminated, simplified,reduced, or integrated.)
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Lean = Eliminating the WastesLean = Eliminating the Wastes
Value Added
Typically 95% of all lead time is non-value added
Non-Value Added
DDefectsefects
OOverproductionverproduction
WWaitingaiting
NNot Utilizing Employeesot Utilizing EmployeesTTransportationransportation
IInventorynventory
MMotionotion
EExcess Processingxcess Processing
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Where is the Waste?Where is the Waste?DDefects incomplete or incorrect informationefects incomplete or incorrect information
OOverproduction releasing work before nextverproduction releasing work before nextprocess can work on them,process can work on them,
unbalanced work loadsunbalanced work loads
WWaiting unbalanced work loads, slow systemaiting unbalanced work loads, slow systemresponse, incomplete information, approvalsresponse, incomplete information, approvals
NNot Utilizing Employees old guard thinking,ot Utilizing Employees old guard thinking,politics, high turnover, low investment inpolitics, high turnover, low investment in
trainingtraining
TTransportation poor layout, poor flowransportation poor layout, poor flow
IInventory large batches, complexity tonventory large batches, complexity to
complete taskcomplete task
MMotion poor organization, no standard workotion poor organization, no standard work
EExcess Processing excess communication,xcess Processing excess communication,lack of communication, unnecessarylack of communication, unnecessary
approvals, customer requirements are notapprovals, customer requirements are notclearly understoodclearly understood
All processes have waste.
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Without Change
There Can Be No Improvement
The definition of insanity is
doing the same thing overand over and expecting
different results.
Albert Einstein
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Identify
waste
Measure
&
Adjust
Current
state
Future
state
Implement
Continuous
Incremental
Improvement
The Lean Process
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Understanding the Process
Information and Material Flow
Data Driven Decision Process
Benefit of Value Stream Mapping
94% if Failures are due to Poor Systems
6% are caused by Worker Mistakes
Deming
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Whenever there is a product orservice for a customer, there is avalue stream.
The challenge lies in seeing it.
Examples:Raw Materials to Customer - ManufacturingConcept to Launch - EngineeringOrder to Cash Services including Support
Processes
Look for Value Streams
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Value Stream Mapping is a Key ProcessValue Stream Mapping is a Key ProcessDiagnostic ToolDiagnostic Tool
Standardized Work Batch Reduction Teams
5S System Visual Layout
Cellular/FlowPull/Kanban TPM
Value
Stream
Mapping
Continuous Improvement
Ka
ize
n
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Value Stream Mapping StepsValue Stream Mapping Steps
Select product / serviceSelect product / servicefamilyfamily
Draw Current State map.Draw Current State map.Understanding how theUnderstanding how theprocess currentlyprocess currentlyoperates.operates.
Identify opportunities forIdentify opportunities forelimination of waste andelimination of waste andareas of improvement toareas of improvement tomeet customers needs.meet customers needs.
Draw the Future StateDraw the Future Statemap. Design a lean flowmap. Design a lean flowusing lean techniques.using lean techniques.
Develop action plan andDevelop action plan andimplement it.implement it.
Product / Service
family
Future state
drawing
drawing
Current state
Plan and
Implementation
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Future State QuestionsFuture State Questions
1.1. What does the customer really need?What does the customer really need?
2.2. How often will we check our performance toHow often will we check our performance tocustomer needs?customer needs?
3.3. Which steps create value and which areWhich steps create value and which arewaste?waste?
4.4. How can we flow work with fewerHow can we flow work with fewerinterruptions?interruptions?
5.5. How do we control work betweenHow do we control work betweeninterruptions? How will work be prioritized?interruptions? How will work be prioritized?
6.6. Is there an opportunity to balance the workIs there an opportunity to balance the workload and/or different activities?load and/or different activities?
7.7. What process improvements will beWhat process improvements will be
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Implementation RoadImplementation RoadMapMap
Clarify Business Drivers and Key Customer MetricsClarify Business Drivers and Key Customer Metrics
Assess and Map Current Capabilities (Baseline)Assess and Map Current Capabilities (Baseline)Identify Opportunities for Improvement including theIdentify Opportunities for Improvement including the
elimination of WASTEelimination of WASTECreate a Vision for the Future Based on Voice of theCreate a Vision for the Future Based on Voice of the
Customer and Voice of the BusinessCustomer and Voice of the Business
Analyze Gaps and Create Action Plan to SucceedAnalyze Gaps and Create Action Plan to Succeed- Use Robust Set of Tools (i.e. Lean Six Sigma)Use Robust Set of Tools (i.e. Lean Six Sigma)
Determine Priorities and Resources NecessaryDetermine Priorities and Resources Necessary- Structured Process ImprovementStructured Process Improvement
Track Impact through MetricsTrack Impact through Metrics
Celebrate WinsCelebrate Wins- With CustomersWith Customers- With EmployeesWith Employees- With SuppliersWith Suppliers
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Summary:Summary:ALL processes have WASTE that cost you
MONEY.
Improvement requires change. To change aprocess you have to understand the process.
Process Excellence will not be achievedProcess Excellence will not be achievedwithout involving people at all levels of thewithout involving people at all levels of theorganization.organization.
It is Not about Starting.It is Not about Starting.
It is about Getting Things DoneIt is about Getting Things Done!
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Questions?Questions?