The Secrets to Creating an Effective Value Stream Map

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Tim McMahon and Jeff Hajek talk about the proven steps you should use to create an effective value
stream map. Value stream mapping (VSM) is ideal for creating positive organizational changes, developing efficient future states, and producing system-wide benefits in cost, quality, and flexibility. It is well suited for a broad range of industries and processes. But like any tool, VSM must be applied properly. Jeff and Tim share the secrets they have learned from years of creating VSMs so you can get the most benefit from yours.

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The Secrets to Creating an Effective Value Stream Map

  1. 1. The Secrets to Creating an Effective VSMNovember 2011
  2. 2. The Secrets to Creating an Effective Value Stream Map Presented by Jeff Hajek Tim McMahon Gotta Go Lean A Lean Journey For Internal Use Only 2
  3. 3. Introduction Product/Service “Family” current state drawing future state drawing plan and implementation For Internal Use Only
  4. 4. Define a value streamAll actions (both value added and non value added) required tobring a specific product or service from raw material through to thecustomer. For Internal Use Only
  5. 5. Based on CustomerRequirements• You must understand what the customer values.• “Value” is what the customer is paying for.• Use that as your starting point.• Align your business to your customer’s demands. Image courtesy of Wikimedia Commons http://commons.wikimedia.org/wiki/File:Handshake _(Workshop_Cologne_%2706).jpeg For Internal Use Only 5
  6. 6. Capture The Process As It Is • Be sure you map the process as it happens now, not the way it used to work—or how you wish it worked! • Go to the source to collect actual information. • Don’t ignore opportunities for improvement but don’tImage courtesy of Wikimedia Commons jump ahead either.http://commons.wikimedia.org/wiki/File:Inside_the_Bender_Factory_-_geograph.org.uk_-_1547827.jpg For Internal Use Only 6
  7. 7. Assign A Value Stream MapManager• Assign a value stream map manager to lead the mapping effort.• Input from team members and stakeholders is important, but appoint (or elect) one team member to own the entire value stream map.• This ensures that the manager Image courtesy of Wikimedia Commons http://commons.wikimedia.org/wiki/File:Gr understands the material and een_River_aerial.jpg information flows. For Internal Use Only 7
  8. 8. Walk The Process • Make sure your map reflects the reality of the process— verifying this by following the process from start to finish can reveal crucial details you might haveImage courtesy of Wikimedia Commonshttp://upload.wikimedia.org/wikipedia/co missed.mmons/c/c6/Mag_glass_request.jpg • The process isn’t always how we perceive it. • Walk the process with an eye Image courtesy of Wikimedia Commons for improvement. http://commons.wikimedia.org/wiki/File:F lax_Bourton_footprints.jpg For Internal Use Only 8
  9. 9. One Small Step At A Time• Focus on one small step at a time.• Make sure you capture each step accurately.• For example, don’t trust the clock on the wall to measure cycle times—use a stopwatch. Image courtesy of Wikimedia Commons http://commons.wikimedia.org/wiki/File:Da videSapienza_pen%26paper.jpg For Internal Use Only 9
  10. 10. Identify Critical Paths AndBottlenecks • What prevents flow along the value stream? • Your map may reveal a number of potential areas for improvement. • Which ones will make the biggest difference in meeting customer requirements? Image courtesy of Wikimedia Commons http://commons.wikimedia.org/wiki/File:Wooden_hourglass_2.jpg For Internal Use Only 10
  11. 11. Create A Future State Map• Your current-state map suggests where to focus your efforts.• Based on that you can draft a map that shows how value will flow through an improved process.• Design for flow of material and information. For Internal Use Only 11
  12. 12. Limit The Improvement Plan• Limit the improvement plan to achieve the future state to a one-page document, if possible.• List the actions that need to happen to improve the process.• Use simple, clearly-defined steps.• A3 format can be helpful. A free copy of this A3 template is available at http://www.velaction.com/a3-template/ For Internal Use Only 12
  13. 13. Focus On Individual Areas • To implement the improvement plan quickly, focus on individual areas. • Take a step-by-step approach to putting your plan in action. • Update your future state map as you implement each step. Image courtesy of www.Velaction.com • Then repeat. For Internal Use Only 13
  14. 14. Conclusion1. Define a value stream.2. Base the value stream map process on customer requirements.3. Capture the process as it operates now, not how it’s supposed to operate.4. Assign a value stream map manager to lead the mapping effort.5. Walk through the process to ensure that the flow of materials and information is accurate.6. Focus on one small step at a time.7. Identify critical paths and bottlenecks.8. Create a future state map from the current state map.9. Limit the improvement plan to achieve the future state to a one-page document, if possible.10. To implement the improvement plan quickly, focus on individual areas. For Internal Use Only 14
  15. 15. Follow-up Information http://www.ALeanJourney.com www.facebook.com/ALeanJourney• http://www.GottaGoLean.com• Many new videos posted at http://www.youtube.com/user/ @TimALeanJourney VelactionVideos A Lean Journey LinkedIn Group
  16. 16. QuestionsJeff Hajek Info@Velaction.com www.GottaGoLean.com 1.800.670.5805Tim McMahon http://linkedin.com/in/timothyfmcmahon 860-HOW-LEAN (469-5326) www.ALeanJourney.com
  17. 17. Copyright Terms• You may modify this presentation for use within your own organization.• You may distribute this presentation within your own organization.• You may not distribute this presentation, its derivative works, or images contained within it outside of your own organization. For Internal Use Only

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