Value Stream Mapping Value Stream Mapping (VSM)(VSM)

Overview Overview Presented By: Jeffrey HeatonPresented By: Jeffrey Heaton

What is Value Stream Mapping?What is Value Stream Mapping?

A A visualvisual tool to help tool to help seesee and and understandunderstand the the flow of material and flow of material and informationinformation..

Map of all actions currently required to Map of all actions currently required to deliver a Product or Service.deliver a Product or Service.

Big picture perspective that focuses on Big picture perspective that focuses on improving the wholeimproving the whole,, not optimizing not optimizing pieces of the process.pieces of the process.

A pencil and paper tool that requires A pencil and paper tool that requires physically observing the processphysically observing the process..

Why Map a Value Stream?Why Map a Value Stream?

To highlight sources of To highlight sources of wastewaste & & defectsdefects and put in place a plan to eliminate and put in place a plan to eliminate them.them.

Shows the linkage between the Shows the linkage between the information flowinformation flow and and material flowmaterial flow..

To see To see across the functional across the functional boundaries boundaries over which a service or over which a service or product’s value stream flows.product’s value stream flows.

How Value Stream MappingHow Value Stream MappingHelps?Helps?

Helps visualize Helps visualize the whole flowthe whole flow…… not not an isolated process.an isolated process.

Critical step on Roadmap for Lean Critical step on Roadmap for Lean implementation.implementation.

Excellent tool to describe what Excellent tool to describe what actionsactions are needed are needed to meet to meet business goalsbusiness goals..

Uses for Value Stream MappingUses for Value Stream Mapping

To help understand how your To help understand how your business actually works (it is business actually works (it is difficult to understand the current difficult to understand the current process if you can’t draw it).process if you can’t draw it).

A visual tool and common language A visual tool and common language for talking about your business for talking about your business process.process.

Don’t Forget...Don’t Forget...

The point of value stream mapping is The point of value stream mapping is notnot

about creating the maps, but to really about creating the maps, but to really understand the flow of informationunderstand the flow of information and materialand material and then and then use that use that understanding to improve your understanding to improve your businessbusiness..

The Art of Value Stream MappingThe Art of Value Stream Mapping

Value Stream Mapping seeks out Value Stream Mapping seeks out WASTE WASTE & DEFECTS& DEFECTS!!

This requires you to be sensitive to This requires you to be sensitive to WASTE & DEFECTSWASTE & DEFECTS!!

We recommend:We recommend:

You Constantly Look for You Constantly Look for Waste & Waste & DefectsDefects! !

You Constantly Listen for You Constantly Listen for Waste Waste & Defects& Defects!!

Value Stream Mapping ProcessValue Stream Mapping Process

Current State Drawing

Process

Future State Drawing

Work Plan & Implementation

Choose a process

Understand how the process currently works

Design a lean flow

Plan how to get there and execute the plan

Rep

eat

What is a Current State Map?What is a Current State Map?

A pictorial view showing how a service, A pictorial view showing how a service, material and information currently flow.material and information currently flow.

Emphasis should be on what actually Emphasis should be on what actually takes place in the field, not just what takes place in the field, not just what the governing documents state.the governing documents state.

Why Map the Current State?Why Map the Current State?

To To see the entire value streamsee the entire value stream...not ...not only an isolated operation or process.only an isolated operation or process.

To show the process simply and visually.To show the process simply and visually. To clarify an organization’s To clarify an organization’s

understanding of how the current understanding of how the current system “really works”.system “really works”.

To To create a baselinecreate a baseline for future for future improvements to be made and improvements to be made and measured.measured.

Current State Mapping Process Current State Mapping Process StepsSteps

1. Gather information about the customer

2. Walk the process - sketch process boxes

3. Fill in data boxes and inventory levels

4. Document how goods/services are delivered to the customer

Current State Mapping Process Current State Mapping Process StepsSteps

(cont’d)(cont’d)5.5. Gather information on suppliers.Gather information on suppliers.

6.6. Add information flows.Add information flows.

7.7. Sketch how material moves Sketch how material moves between processes.between processes.

8.8. Draw production lead Draw production lead time/processing timeline.time/processing timeline.

Improvement TargetsImprovement Targets

Gather Key Performance Indicators and Gather Key Performance Indicators and record for the current state performancerecord for the current state performance

These metrics will be used to measure These metrics will be used to measure improvements gained in the improvement improvements gained in the improvement effort effort

Current State vs. Future StateCurrent State vs. Future State

Examples of Improvement TargetsExamples of Improvement Targets

Reducing cycle time.Reducing cycle time. Reducing inventory.Reducing inventory. Cost / Resource reduction.Cost / Resource reduction. Increasing available capacity.Increasing available capacity. Decreasing space.Decreasing space. Reducing order lead time.Reducing order lead time. Reducing scrap, rework or repair.Reducing scrap, rework or repair.

What is a Future State Map?What is a Future State Map?

Visual representation of improved Visual representation of improved material and information flow.material and information flow.

Unites Lean concepts and techniques.Unites Lean concepts and techniques.

Used to drive detailed implementation Used to drive detailed implementation plans.plans.

Targeting your Future StateTargeting your Future State

What type of improvements are needed What type of improvements are needed and why?and why?

What is the timeframe for achieving What is the timeframe for achieving improvements?improvements?

Have budgets been established to Have budgets been established to manage the costs of improvements?manage the costs of improvements?

Are all stakeholders aligned?Are all stakeholders aligned?

Future State QuestionsFuture State Questions

What is the takt time (customer demand What is the takt time (customer demand frequency) for the chosen service, frequency) for the chosen service, product or product family?product or product family?

Where can you use continuous flow?Where can you use continuous flow?

At what single point in the production At what single point in the production chain will you trigger (schedule) chain will you trigger (schedule) actions?actions?

Should you build to customer order or to Should you build to customer order or to stock?stock?

Future State QuestionsFuture State Questions

Is there any batching that needs to be Is there any batching that needs to be done or can it be a “single piece flow”?done or can it be a “single piece flow”?

What process improvements will be What process improvements will be necessary for the value stream to flow necessary for the value stream to flow as your future state design specifies?as your future state design specifies?

Implementation PlanningImplementation Planning

Achieving future state is the goal of Achieving future state is the goal of value stream mapping.value stream mapping.

Keys to success...Keys to success... Tasks identified and scheduled.Tasks identified and scheduled. Tasks assigned to individuals or teams.Tasks assigned to individuals or teams. Required support obtained.Required support obtained. Regular reviews to adhere to plan.Regular reviews to adhere to plan. Knowledge and support from Knowledge and support from

management sponsor and leadership management sponsor and leadership team.team.

Implementation Planning Implementation Planning GuidelinesGuidelines

Develop a realistic timeline.Develop a realistic timeline. Prioritized action items supporting the Prioritized action items supporting the

improvement/transition process ( e.g., critical improvement/transition process ( e.g., critical path).path).

Hold regular reviews on adherence to the Hold regular reviews on adherence to the plan.plan.

Develop a plan to deal with issues/corrective Develop a plan to deal with issues/corrective actions.actions.

Keep management and the workforce Keep management and the workforce informed of any changes that need to be informed of any changes that need to be made.made.

Maintain the plan and Maintain the plan and stick to itstick to it..

Value Stream Implementation PlanValue Stream Implementation Plan

Plan will show you:Plan will show you: Exactly what to do and when to do it, Exactly what to do and when to do it,

Measurable goals.Measurable goals. Clear milestones.Clear milestones. The names of those responsible for The names of those responsible for

the task, additional resources the task, additional resources required, as well as reviewers.required, as well as reviewers.

How it maps to your business How it maps to your business objectives.objectives.