Value stream mapping training

Welcome

Value Stream Mapping

Session Goals

• Provide an overview of Value Stream Mapping

• Demonstrate Value Stream Mapping as a tool to support Lean implementation.

• Provide an overview of Lean Principles.

Introduction

Name

Current Position

VSM Experience (if any)

What are the concepts of Lean?

• The elements for Operating a Lean Facility

• Principles and Elements are Interdependent

• Develops lean thinking leaders to deliver lean business results

Continuous Continuous ImprovementImprovement StandardizationStandardization

Built-In-Built-In-QualityQuality

ShortShortLead TimeLead Time

People People InvolvementInvolvement

Definition: Standardization is a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization.

Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve.

Standardization

WorldClassContinuous

Improvement

Change

Standardization Elements

Management by Takt Time Workplace Organization Standardized Work Visual Management

Standardization

Built-In Quality Elements

Product Quality Standards Manufacturing Process Validation In-Process Control & Verification Quality Feedback/Feedforward Quality System Management

Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence.

Purpose: To ensure that defects are not passed to the customer.

Do notDo notAcceptBuildShip

a Defect!a Defect!

Solve problems through teamwork!Solve problems through teamwork!

Satisfy your Satisfy your Customer. . . Customer. . .

The Built-In-Quality Motto

Built In Quality

Definition: The movement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer.

Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty.

Short Lead Time Elements

Small Lot Packaging Fixed Period Ordering System Controlled External Transportation Simple Process Flow Scheduled Shipping/Receiving

Temporary Material Storage Internal Pull/Delivery Level Vehicle Order Schedules Supply Chain Management

long lead-time

short lead-time

Short Lead Time

Definition: A process based on standardization, whereby results are achieved, through a series of small improvements.

Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste.

Continuous Improvement

Elements

Andon Concept Business Plan Deployment Total Maintenance System Lean Design of Facilities,

Equipment, Tooling and Layout Continuous Improvement Process Early Mfg. Design Integration

(DFM/DFA) Problem Solving

The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented.


The Continuous Improvement Cycle

Standardization

ImprovementStandardization

Standardization

StandardizationImprovementImprovement

How Do We Expand VSMThroughout the Enterprise?

• All the Principles and Elements apply, however, there is one big difference

• In the factory, the process itself is very visible making it easy to see, study and improve

• The processes in HR, Engineering, Purchasing, etc... are not as visible

• What we need is a tool that will help make the process more visible

Value Stream Mapping

• A tool originally used by the Toyota Production System experts to study processes

• Developed and refined by John Shook and Mike Rother in Learning to See

• Used in manufacturing, engineering and administrative offices by lean experts to improve business processes

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

How Does Value Stream Mapping Fit With the Lean Journey

• VSM is a tool used to support the implementation of lean strategies.

http://www.snopes.com/photos/graphics/iceberg.jpg

What Makes Value Stream Mapping Unique?

• Visualizes the Process Flow from a systems perspective

• Focuses on the customer and the customer’s requirements

• Includes information flow and product movement

• Summarizes the timeline as it relates to delivery to the customer

• Documents performance characteristics of both the Value Stream and the individual process steps

Process 1 Process 2

Process Time

Wait Time

FTQ

Process Time

Wait Time

FTQ

Value Stream Map Elements

Customer

XYZ Org

Supplier OrdersCustomer Orders

Internal Scheduling

Delivery Freq.

Material Movement via PUSH

Delivery Freq.

I

II

Supplier

Inventory

Lead Time

Value Stream MapsEnable a System View

• Starts with a Focus on the Customer• Links process steps and information flow• Reveals problems with flow• Documents performance of the process

– Customer Expectations– Process metrics– Visibility of progress and quality

• Reveals waste • Establishes a common language • Provides a blueprint for improvement • Gets People involved in creating the future

VSM Analysis – Data Attributes

• Lead time =

– Processing time + Wait Time / Delays

• Typical batch size

• First-Time Quality

– Reliability (e.g. system or equipment uptime)

• Rework / revisions

– % Complete and Accurate Inputs (% C&A)

– Design Changes

– Errors

• Number of people involved

– % utilization of people

VSM Case Study

Using the Value Stream Mapping Tool

Understanding how things currently operate. This is the foundation for the future state.

Scoping the Scoping the Value StreamValue Stream

Designing a lean flow through the enterprise.

Future state drawing

Determine the Value Stream to be improved

The goal of mapping! Planning and Implementation

Current state drawing

Jack’s TaxesJack is a CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If Jack can improve the process for self-employed clients, he could take on more work during that time of year.

Generally, the sequence of events begins for each client sometime late January with Jack’s assistant, John, sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. Jack sorts the receipts and documents, finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions.

Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms. For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return. Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.

Data SetTax Season: 8 weeks40 self-employed clients

Send Reminder: JohnP/T = 10 minFTQ = 100%

Sort receipts & documents: JackP/T = 30 minW/T = 1 week in inbox before sortingFTQ = 10%

Prepare Worksheet: JackTechnology used: Tax Software (TS)P/T = 60 minW/T = 3 weeks in the inbox waiting to prepare worksheetW/T = 1 week due to interruptionsFTQ = 95%

Confirm deductions: JackP/T = 10 minW/T = 1 week due to phone tagFTQ = 50%

Print and Collate IRS tax forms: JohnTechnology used: Tax Software (TS)P/T = 15 minW/T = 1 – 5 days in inbox before form prep (3 day average)FTQ = 98%

Review and sign forms: JackP/T = 15 minW/T = 3 days in inbox before signing FTQ = 100%

Mail forms to client: JohnP/T = 10 minW/T = 1 day accumulation before collation and mailingFTQ = 100%

Metric

SPQRC

Current Estimate

From Current State Map

Target from Future State

Map

Actual

(post implementation)

Process Time

12 hours

(720 Min.)

Lead Time 6 – 8 weeks

First Time Quality

100%

Other(s)

Measurable Metrics & Performance

Typical Steps for Current State Mapping

• Document customer information & need

• Identify main processes (in order)

• Select data attributes (Q,R,C - minimum)

• Perform value stream walk and fill in data boxes (how the process really works)

• Establish how each process knows what to process 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

Icons

Movement by Push

Electronic Information Flow

WeeklySchedule

Worker

In Box (Queue)

INMRP

Wait-Time

Conversation Information Flow

Data Box

P/T

W/T

FTQ

Supermarket

XOXO Leveling, Mix and/or Volume

Withdrawal (Pull)

F I F O

First-In First-Out

Flow

ChangeoverKaizen

Lightning Burst

Iterations

Movement of “physical” property

Reminder post-card

Customer

Process Box

Technology Used

MRP

Draw the Current State

Jack’s Taxes - Current State

CustomerSuppliers

Start withCustomerThenSuppliers

40 clients

Client

Sort receipts & documents

Confirmdeductions

Mail forms

Print & Collate

formsTS

Review & sign forms

Send reminder

Prepareworksheet

TS

ProcessSteps?


40 clients

Client

John10 min

---100%

Jack60 min1 week

95%

Jack10 min

John15 min

---98%

Jack15 min

---100%

John10 min

---100%

Jack30 min

---10%

1 week

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

3 days

IN

3 days

IN

1 day

IN

3 weeks

Client40 clients


Confirmdeductions

Mail forms

Print & Collate

formsTS

Review & sign forms

Send reminder

Prepareworksheet

TS

Tax forms to client by 4/10

IN

Receipts

& Docu

ments

Reminder post-

card

IN

Mis

sing

doc

umen

ts

Cla

rify

de

duct

ion

s

Notify

of m

issing

doc

umen

ts


50%1 week

P/T

W/TFTQ

Process Data, Information Flow, and Process Flow

IN IN IN IN IN

Client40 clients


Confirmdeductions

Mail forms

Print & Collate

formsTS

Review & sign forms

Send reminder

Prepareworksheet

TS

Tax forms to client by 4/10Receipts

& Docu

ments

Reminder post-

card

Mis

sing

doc

umen

ts

Cla

rify

de

duct

ion

s

Notify

of m

issing

doc

umen

ts

John10 min

---100%

Jack60 min1 week

95%

Jack10 min1 week

50%

John15 min

---98%

Jack15 min

---100%

John10 min

---100%

Jack30 min

---10%

1 week 3 weeks

3 days 3 days 1 day

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

10 min 1 week

30 min 3 weeks

60 min

10 min 3 days

15 min

15 min

10 min3

days1 day1 week

100 %

98 % 100 %

50 % 100 %

95 %10 %

1 week

140 min

7 wks, 2 days

4.7 %

Total Lead Time:

W/T

P/T

FTQ

7 wks, 2 days, 140 min

Total Leadtime and FTQ

-----

Total of P/T= 140 minutesTotal of W/T= 7wks, 2days


X X X X X

---- ---- ---- ----

Total Lead Time = 7 wks, 2 days, and

140 min.

Product of FTQ= 4.7%

Metric

SPQRC

Current Estimate



Map

Actual


Process Time 720 Min. 140 Min.


7 Weeks, 2 Days, 140 Min

First Time Quality

100% 4.7%

Other(s)



IN

40 clients


Confirmdeductions

Mail forms

IN

Tax forms to client by 4/10Rece

ipts & D

ocuments

IN

Notify of m

issing docu

ments

Reminder post-card

Print & Collate

formsTS

Review & sign forms

IN

Send reminder

Prepareworksheet

TS

Client

John10 min

---100%

Jack60 min1 week

95%

Jack10 min1 week

50%

John15 min

---98%

Jack15 min

---100%

John10 min

---100%

Jack30 min

---10%

Miss

ing d

ocum

ents

1 week 3 weeks

3 days 3 days 1 day

W/T

P/T 10 min 1 week

30 min 3 weeks

60 min

10 min 3 days

15 min

15 min

10 min3

days1 day1 week

FTQ 100 %

98 % 100 %

50 % 100 %

95 %10 %

1 week

140 min

7 wks, 2 days

4.7 %

Total Lead Time:7 wks, 2 days, 140 min

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

IN

Cla

rify

dedu

ctio

ns

WasteThe elements of production that add

no value to the 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 of problems in the system. It shows where the problems are

• We need to find and address the causes of waste to improve the performance of the system

Waste in a Value Stream

• Muri – Waste of unreasonableness or overburden to a person or a machine

• Mura – Waste of inconsistency; Waste of unevenness

• Muda – The seven forms of waste (COMMWIP)

FORMS FORMS OFOF

WASTEWASTE

II

CC

OO

MMWW

PP

MM

CURRENTTHINKING

WASTE NOT DEFINEDREACT TO LARGE EXAMPLES

REACTIVE IMPROVEMENT

REQUIRED THINKING

CONTINUOUS IMPROVEMENT

CorrectionCorrection

OverProduction

OverProduction

MotionMotion

MaterialMovementMaterial

Movement

WaitingWaiting

InventoryInventory

ProcessingProcessing

WASTE IS "TANGIBLE"IDENTIFY MANY SMALL OPPORTUNITIES

LEADS TO LARGE OVERALL CHANGE

Shift Mindset

WASTEWASTE

Sending back forms for incomplete or inaccurate data

Producing reports that are not used, producing reports

before they are needed

Searching for misplaced items

Filing documents that will never be used again

Keeping multiple copies of reports

Processing excessive written communication to determine

issues requiring attention (mental processing)

Unreasonable-ness

Unreasonable-ness

UnevennessUnevenness

Employee assigned two jobs due to understaffing

End of month deadline causing overtime; all

projects scheduled in 1Q with none in 2nd

Delays in getting needed

information, approvals, or

decisions

Waste Exercise

Participants identify waste on current state maps.

IN IN IN IN IN

Client40 clients


Confirmdeductions

Mail forms

Print & Collate

formsTS

Review & sign forms

Send reminder

Prepareworksheet

TS

Tax forms to client by 4/10Receipts

& Docu

ments

Reminder post-

card

Mis

sing

doc

umen

ts

Cla

rify

de

duct

ion

s

Notify

of m

issing

doc

umen

ts

John10 min

---100%

Jack60 min1 week

95%

Jack10 min1 week

50%

John15 min

---98%

Jack15 min

---100%

John10 min

---100%

Jack30 min

---10%

1 week 3 weeks

3 days 3 days 1 day

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

10 min 1 week

30 min 3 weeks

60 min

10 min 3 days

15 min

15 min

10 min3

days1 day1 week

100 %

98 % 100 %

50 % 100 %

95 %10 %

1 week

140 min

7 wks, 2 days

4.7 %

Total Lead Time:

W/T

P/T

FTQ

7 wks, 2 days, 140 min

-----


MMW W

I I I I IPP P

CC

C

C

O

Lean Principle: Built-In-QualityLean Principle: Built-In-Quality


Built-In-QualityBuilt-In-QualityShortShort

Lead TimeLead Time


Right Product

Right Time!

Understanding Customer Requirements

Right Price!!

Built-In-Quality

• Product Quality Standards

• In-Process Control & Verification

• Quality Feedback/Feed Forward

Product Quality Standards

• Focus On The Customer– J.D. Power

• Quality Standards must be easily understood by the Team members

• Quality Standards must be Clear and Unambiguous

In Process Control & VerificationQuality Feedback / Feed Forward

Ability to signal for help when Sensing Abnormalities

– Quality Must Be Assured In The Process

– Error Proofing

– In-Process Verification

– Feedback / Feed Forward

Lean Principle: Lean Principle: Continuous ImprovementContinuous Improvement



Lead TimeLead Time


Andon

ENABLERS

BENEFITS

1 2 3 4 5 6

PROCESS NO.

33

O.D. Reference 4

MotionCorrectionWaiting

Andon

• Implement corrective action

• Quality in station• Inspection and Feedback• Open Communication• Teamwork• Improved Productivity

ENABLERS

BENEFITS

5MotionCorrectionWaiting

1 2 3 4 5 6

PROCESS NO.

33

O.D. Reference 4

Andon

•Team System•Team Leader Ratio•Clear Standards•Problem Solving Process•Employee Training•Standardized Work•Mutual Trust/Respect•Process Capability

• Implement corrective action

• Quality in station• Inspection and Feedback• Open Communication• Teamwork• Improved Productivity

ENABLERS

BENEFITS

MotionCorrectionWaiting

1 2 34

5 6

PROCESS NO.

33

O.D. Reference 4

4

Lean Principle: Short Lead TimeLean Principle: Short Lead Time



Lead TimeLead Time


Lean Principle: Short Lead Time (Just-in-Time Elements)

• Simple Process Flow

(Single Part Flow, Quick Set Up)

• Small Lot Packaging

• Level Order Schedules

• Pull Systems

Flow

All process steps occur in tight sequence (continuous flow), with little or no waiting?

Pull

Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.

TRY TO SCHEDULE ONLY 1 POINTFLOW WHERE YOU CAN, PULL WHERE YOU CAN’T

Schedule

Supermarket

Schedule

CONTINUOUS FLOW PROCESSING

Batch & Push Processing

Continuous Flow “make one, move one”

3 Minutes for first piece

12 Minutes for total order

21 minutes for first piece

One Piece Flow - Order entry - Before

File Batch

Enter Batch

Stack and Hold

Acknowledge

Orders

Calculate Batch Total

Batch OrdersOpen

Mail

One Piece Flow - Order Entry – After

File Order

Enter One

Order

Acknowledge

One Order

Open One Envelope

Leveling - Heijunka

• Uneven customer demand creates a challenge

• Variation & fluctuation in volume (spiky customer demand) can lead to waste

• In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation

Production Schedule

Monday…….400 A

Tuesday……100 A, 300 B

Wednesday..200 B, 200 C

Thursday…. .400 C

Friday……….200 C, 200 A

No Good

Daily:

140 A, 100 B, 160 C

Better: Every Part Every Day

50 B, 70 A, 80 C

50 B, 70 A, 80 C

MondayEven Better: Every Part Every Ship Window

Leveling

Why have small lots and leveling?

• Small Lot Strategy– Shortens Cycle Time (The amount of time it

takes to complete the task)– Reduces Excess Inventory – Improves Responsiveness

• Production Leveling– Minimizes Stocks of Finished Products– Reduces Fluctuations in Flow– Balances Workload

Lean Principle:Lean Principle: People Involvement People Involvement



Lead TimeLead Time


Multifunctional Workers

• Minimal (or no) Job Description Silos

• Rotate Jobs

• Perform Several Tasks

• Balance the Workload

• Standard Work

Lean Principle: StandardizationLean Principle: Standardization



Lead TimeLead Time


If there is no standard, there is no improvement

If there is no standard, there is no improvement

Standardized Work

• The best combination of people, equipment and material to meet customer demand.

• An agreed upon set of work procedures to establish the best sequence for each process.

• Start at a baseline and continuously improve

MaterialsProduction

Standardized Work

Standardized work is used when there is a definable, repeatable process.

Office

Everyone can perform standardized work

Standardized work yields:

• Shorter lead time• Reduced work-in-process• Reduced wait time• More flexibility, less waste• Ability to identify and fix

problems• Reduced handling• Better response to customer

demand• Balanced workload

TAKT TIME – Component of Standardized Work

Synchronizes Pace of Production to Match Pace of Demand

Rate for producing a product, and its components, based on rate of delivery.

Available TimeTakt Time =

Customer Requirement / Demand

Lean Principle: Lean Principle: Continuous ImprovementContinuous Improvement



Lead TimeLead Time



• Everything Can Be Improved. Problems Are Opportunities. “No Problem” is a Problem.

• Worker’s Ideas Are a Source of Improvement– Continuous Improvement

(Kaizen) Teams– Problem Solving– Job Rotation– Total Productive Maint.– Suggestion Program

• Steps to Improvement– Improve, Standardize,

Stabilize and Repeat.

The Continuous Improvement Cycle

Standardization

ImprovementStandardization

Standardization

StandardizationImprovementImprovement


• Standardized Work contributes to continuous improvement by:

– Documenting the current best practice that provides a base from which to improve

– Creating the stability necessary to make changes

– Providing the tools to make waste highly visible

Lean Principle: StandardizationLean Principle: Standardization



Lead TimeLead Time


• Workplace Organization

- 5S Process• Standardized Work• Visual Management

Grasp the Situation

Workplace Management

GraspCurrent

SituationContinuous Improvement

to EliminateWaste

Repeat Add Value-

added Work; Standardize

Workplace Management

Where you have problem points in the flow…

Process Step 1

Process Step 2

Process Step 3

Process Step 4

Set up checks for Quality, Timing, Output

Make Progress and Problems Visible

Visual Management

E-Toyota Application of Heijunka Box

Takt Time Bar Chart

0

5

10

15

20

25

30

Stamping Body Paint Trim Shipping

Departments

(Sec)

Future State Questions Relating to Improving Delivery and Flow

• What are the customer requirements?

• Where and how will you trigger and sequence work?

• How will you make work flow smoothly?

• How will you establish rhythm to pace the work and surface problems?

• How will you make the progress and delays of the work visible?

• What process improvements are necessary to achieve your Value Stream vision?

Future State Mapping



Designing a lean flow through the application of Lean principles

Current State drawing

Future State drawing




Future State Questions Relating to Improving Delivery and Flow

• What are the customer requirements?

• Where and how will you trigger and sequence work?

• How will you make work flow smoothly?

• How will you establish rhythm to pace the work and surface problems?

• How will you make the progress and delays of the work visible?

• What process improvements are necessary to achieve your Value Stream vision?

• Customer requirements? • Work flow smoothly?• Trigger & sequence work?

• Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State

IN

40 clients


Confirmdeductions

Mail forms

IN


ipts & D

ocuments

IN

Notify of m

issing docu

ments

Cla

rify

dedu

ctio

ns

Reminder post-card

Print &Collate

formsTS

Review & sign forms

IN

Send reminder

Prepareworksheet

TS

Client

John10 min

---100%

Jack60 min1 week

95%

Jack10 min1 week

50%

John15 min

---98%

Jack15 min

---100%

John10 min

---100%

Jack30 min

---10%

Miss

ing d

ocum

ents

1 week 3 weeks

3 days 3 days 1 day

W/T

P/T 10 min 1 week

30 min 3 weeks

60 min

10 min 3 days

15 min

15 min

10 min3

days1 day1 week

FTQ 100 %

98 % 100 %

50 % 100 %

95 %10 %

1 week

140 min

7 wks, 2 days

4.7 %

Total Lead Time: 7 wks, 2 days, 140 min

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

Takt Time = Available time / Customer Requirements

= 40 days / 40 Clients = 1 per day

INCOMBINE PROCESSES

Stand. Work

John

Acc

ordi

on

File

XOXO FIFO

Customer

Incentive

• Customer requirements? • Work flow smoothly?• Trigger & sequence work?• Rhythm (leveling)?

• Progress & delays visible? • Process improvements? Jack’s Taxes - Current State

IN

40 clients


Confirmdeductions

Mail forms

IN


ipts & D

ocuments

IN

Notify of m

issing docu

ments

Cla

rify

dedu

ctio

ns

Reminder post-card

Print &Collate

formsTS

Review & sign forms

IN

Send reminder

Prepareworksheet

TS

Client

John10 min

---100%

Jack60 min1 week

95%

Jack10 min1 week

50%

John15 min

---98%

Jack15 min

---100%

John10 min

---100%

Jack30 min

---10%

Miss

ing d

ocum

ents

1 week 3 weeks

3 days 3 days 1 day

W/T

P/T 10 min 1 week

30 min 3 weeks

60 min

10 min 3 days

15 min

15 min

10 min3

days1 day1 week

FTQ 100 %

98 % 100 %

50 % 100 %

95 %10 %

1 week

140 min

7 wks, 2 days

4.7 %


P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ



INCOMBINE PROCESSES

Stand. Work

John

Acc

ordi

on

File

XOXO FIFO

Customer

Incentive

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

• Process improvements? Jack’s Taxes - Current State

IN

40 clients


Confirmdeductions

Mail forms

IN


ipts & D

ocuments

IN

Notify of m

issing docu

ments

Cla

rify

dedu

ctio

ns

Reminder post-card

Print &Collate

formsTS

Review & sign forms

IN

Send reminder

Prepareworksheet

TS

Client

John10 min

---100%

Jack60 min1 week

95%

Jack10 min1 week

50%

John15 min

---98%

Jack15 min

---100%

John10 min

---100%

Jack30 min

---10%

Miss

ing d

ocum

ents

1 week 3 weeks

3 days 3 days 1 day

W/T

P/T 10 min 1 week

30 min 3 weeks

60 min

10 min 3 days

15 min

15 min

10 min3

days1 day1 week

FTQ 100 %

98 % 100 %

50 % 100 %

95 %10 %

1 week

140 min

7 wks, 2 days

4.7 %


P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ



INCOMBINE PROCESSES

Stand. Work

John

Acc

ordi

on

File

XOXO FIFO

Data entryWorksheet

training

Individual1040, 1040EZ

training

Reduce process time to 75 min

Standardize Work

Customer

Incentive

IN

40 clients

Mail forms

forms to client

Complete Acc

ordion File

Checklist &

Accordion File

Jack’s TaxesFuture State

Check & sign forms

IN

Send Reminder

Data entry+

print formsFS

Client

FIFO

max 1 day max 1 day

XOXO

1 per day Over 8 weeks



Customer Requirements:•Tax Forms completed accurately•Finished before filling time•Lowest possible cost

W/T

P/T

FTQ

100 min

2 days

98 %

2 days, 100 min

10 min

75 min

15 min

10 min

1 day1 day

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

P/T

W/TFTQ

John10 min

100%

John75 min

98%

Jack15 min1 day100%

John10 min1 day100%

98 % 100 %

100 %

100 %

Metric

SPQRC

Current Estimate



Map

Actual


Process Time 720 Min. 140 Min. 100 Min.


7 Weeks, 2 Days, 140 Min

2 Days, 100 Min.

First Time Quality

100% 4.7% 98%

Other(s)


Summary of Results – Potential Impact

• Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time.

• FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity.

• Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster.

• Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients.

• Reduced personal overtime – Jack does not stay late signing returns anymore.

• This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically, …

Implementation Planning


Designing a lean flow through the application of Lean principles

Current State drawing

Future State drawing





Current Current StateState

Current Current StateState

The Methods / Action Steps The Methods / Action Steps are how you will get thereare how you will get there

FutureState

FutureState

Changes

The specific changes The specific changes (Kaizen Bursts) needed to (Kaizen Bursts) needed to move from CS to FS are move from CS to FS are

your Objectivesyour Objectives

Business Plan Deployment (BPD) is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change

Regul

ar a

nd C

onsi

sten

t Rev

iew

s Concrete

GOALS

Specific OBJECTIVES

Clear & Measurable TARGETS

A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies

Coordination

Common Measurements

BPD Elements

Business Plan Deployment Is a PDCA Cycle

2

Tasks

Plant Master Plan

Action

Annual Business

Plan

1

2

3

4 Plan

Do (Communicate & Implement)Check

Act (Standardized & Countermeasures)

Scorecard

Plan

DoCheck

Act

Problem Description

Direct CauseCauseCauseCause

Why?Why?Why?Why?

Why?Root

Cause

Plan

Do

Check

Act TEACH!

Leadership’s Role

Wrap-Up

Wrap-up

• What did you learn today?

• Did the program meet your expectations?

• How can we improve this learning event?

Value stream mapping training

Business

Transcript of Value stream mapping training