Your SlideShare is downloading. ×

Value stream mapping training

19,875

Published on

Full description of value stream mapping and how to implement and get improvements from it, highly recommendable

Full description of value stream mapping and how to implement and get improvements from it, highly recommendable

Published in: Business, Technology
3 Comments
14 Likes
Statistics
Notes
No Downloads
Views
Total Views
19,875
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1,899
Comments
3
Likes
14
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Facilitator: Inform participants they should not take more than 30 secs. Remember, there is a lot of material to get to, don’t let yourself get caught up in introductions. It is great if someone has NO experience with GMS – that’s why they are here.
  • Concepts are depicted as an ATOM. The structure contains protons, neutrons, and electrons. Removing one of these will effectively change the structure of the atom. The system was designed with the parts required to work together. It is a fragile system, one that will begin to fail if all of the elements are not in place. So many times in the past, we have taken only one of the elements and tried to implement it, wondering why the production system is not delivering the bottom-line results of lean. We must remember that is the integration of the entire system (with people involvement forming the DNA of the system) that brings the lean results.
  • Element: Workplace Organization Definition: The safe, clean, and orderly arrangement of the workplace environment that eliminates anything that is not required, provides a specific location for everything, contributes to higher quality, and the opportunity to standardize and increase efficiency. Purpose: To put order to and maintain the workplace by making "out of standard" conditions readily visible.   Element: Management By TAKT Time Definition: A measurement system that regulates and levels the production output to meet sales demand:   Available Production Time Production Demand (Sec./Unit) Purpose: To level the production schedule and produce what is needed when it is needed.   Element: Standardized Work (People Focused Practices) Definition: The documentation of work functions performed in a repeatable sequence, which are agreed to, developed, and maintained by the production floor. Purpose: To establish a repeatable, predictable baseline for continuous improvement and to involve the operator in both the initial and ongoing improvements to achieve the highest levels of safety, quality, and productivity.   Element: Visual Management Definition: A process in which standards and actual conditions become quickly visual in the workplace. Purpose: Visual Management enables all employees to immediately see the current situation (normal/abnormal), grasp the situation and take action to return to the normal (standard) condition.  
  • Element: Product Quality Standards Definition: Measurable requirements for product characteristics, which when satisfied, ensure our products meet internal/external customer requirements. Purpose: To provide criteria for product evaluation.   Element: Manufacturing Process Validation Definition: The method by which processes are prepared and validated before starting full volume production. Purpose: To ensure that each manufacturing process is capable of meeting defined product quality standards, while achieving schedule.   Element: In-Process Control & Verification Definition: The system of building quality in station through prevention, detection, and containment of abnormalities. Purpose: To minimize process variation to ensure that all products are OK in station and are confirmed as soon as possible following manufacture and to reduce waste associated with defects.   Element: Quality Feedback/Feed Forward Definition: The communication of quality expectations and results between customers and suppliers through standardized communication pathways. Purpose: To ensure that information on quality reaches those who need it.   Element: Quality System Management Definition: Common documentation, practices, procedures, and organizational structure that support managing the quality system. Purpose: To define and regulate the intended operation of the quality activities.
  • Element: Simple Process Flow Purpose: To design and implement processes that maintain FIFO, allow traceability, are visual, reduce lead time, easily detects problems while optimizing cost, and reduces inventory and work in process. Element: Small Lot Packaging Purpose: To provide parts to the operator in a user-friendly package that facilitates damage-free and economical handling during shipment, storage and delivery. Element: Fixed Period Ordering System / Order Parts Purpose : To ensure predictable, reliable flow of materials through the pipeline. Element: Controlled External Transportation Purpose: To provide a predictable method for frequent material movement that maximizes use of resources. Element: Scheduled Shipping/Receiving Purpose: To level and standardize shipping/receiving activities and resource requirements. Element: Temporary Material Storage - CMA (Central Material Area) Purpose: To organize and control inventory to meet manufacturing and material flow needs. Element: Pull Systems Purpose: To manage the flow of material and minimize inventory while satisfying the user. Element: Level Vehicle Order Schedules Purpose: To enhance efficient lean manufacturing by leveling out the workload and enabling standardized work to support lean materials management and customer satisfaction. Element: Supply Chain Management Purpose: To deliver customer requirements and to ensure continuous improvement at lowest total cost.
  • Element: Problem Solving Purpose: To identify the root cause and implement a countermeasure(s) that prevents recurrence and contributes to continuous improvement. Element: Business Plan Deployment Purpose: To align and integrate all employees to work together, to take action, and to develop a culture of continuous improvement. Element: Andon Concept Purpose: To empower operations to prevent the occurrence or passing of defects to the next process and call for assistance when behind in work sequence; prioritize and initiate the problem solving process; drive management and support groups to go and see the problems on the floor and take action and communicate operational information. Element: Lean Design of Facilities, Equipment, Tooling and Layout Purpose: To design, build, and install equipment and facilities to support the culture needed to attain the company goals and principles. Element: Early Manufacturing and Design Integration (DFM/DFA) Purpose: To build upon current and past experiences to assure that new products/processes enable the simple processing and assembly of products. Element: Total Maintenance System / Total Productive Maintenance Purpose: To reduce costs, improve plant throughput, quality and safety through ownership, accountability, and the development of multi-functional employees. Element: Continuous Improvement Process Purpose: To remain flexible and profitable in the face of changing business conditions.
  • We have just learned a bit about lean manufacturing concepts. We see examples of how applying lean concepts to our manufacturing facilities can impact our business. Now, how do we expand this to non-manufacturing?
  • Although Toyota has a “flow mentality” where flow problems are continually being addressed on their manufacturing shop floors, there has not been an emphasis on flow within administrative processes. Providing a copy of the book Learning to See during the training will allow participants to thumb through it during breaks. Stress that the book is a workbook and uses manufacturing shop floor examples.
  • It is important to note that a value stream must be an honest depiction of what is really happening. In order for the greatest improvements to take place, there must be thorough documentation of all non-value added activities.
  • Emphasize the point that what we are doing is beginning the “Lean” journey and value stream mapping is a tool to help implement it.
  • Systems Perspective : Looks at the relationship of the system to the environment as well as what is inside the system itself. First consideration is the survival of the system – effective exchange with the environment. Information Flow : One of the powerful aspects of value stream mapping is the documentation of the “information flow.” Process engineering tools may not show information flow, yet experience has told us that 75% of the waste lies in the information flow. Timeline : Another powerful aspect of value stream mapping is the tracking of time – or, how long it takes a single product to progress through the value stream. Performance Characteristics : Value stream focuses on the flow of the process (improving flow removes waste). Improving individual process steps should be secondary to flow improvements.
  • There are six key components to a value stream map. Customer Process Steps Data Attributes Supplier with Materials Information Flow Calculate the overall performance of your value stream
  • The linkage of process steps and information flow allows employees to see how the entire process is working. Problems with flow and and waste become readily apparent with this linkage. Keep in mind that value stream mapping focuses on flow first, leading to waste elimination. The common language is achieved by using a visual method and icons understandable by all. The value stream process is iterative; therefore, the blueprint for improvement can later become the present state to be improved once again. One of the greatest enablers of successful process improvement/value stream mapping is people involvement. Those closest to the process must be included in developing the value stream maps.
  • Process time, Wait Time, Lead Time and First Time Quality are the most important metrics – want to summarize at the bottom of the map. These are the key metrics we have committed to use; however, other metrics important to the particular map/value stream may also be selected and tracked.
  • We have picked what might seem like a simple case study because we are trying to teach the basics of a value stream map and how you draw one. This is a real case study of an existing tax firm. Remind the students to draw the map as it will be used in an afternoon activity. The best way to learn is by actually drawing.
  • Each step must be included in its entirety. The planning and implementation phase must be implemented with an effective “management check” system that is supported by visual controls.
  • Ask participants to read aloud. Select one participant for each paragraph.
  • Typically, people view first-time-quality as their own measure of performance accuracy—in other words, “How am I performing?” As you will see from the present state of Jack’s taxes, first-time-quality is affected greatly by the quality of incoming information flow.
  • The ICONS above the line are typically used on Current State Maps. Icons below the line are typically used for Future State Maps. This is not a hard and fast rule as there may be a need to use Future State icons on a current state map.
  • When drawing the present state map, follow the process steps in slide #31. 1) Draw the customer and customer requirements first. 2) Fill in the process steps/boxes, labeling each step. 3) The data attributes have already been chosen for this map (Person, P/T, W/T, FTQ). 4) Fill in the data boxes of each step concurrently with the information flow. They are linked so closely that the student needs to see their inter-relationship as the process data boxes are filled in (moving from left to right). Do not forget to show the inboxes, clock, and push arrows between processes, where applicable. Do not forget to draw in the arrows linking the customer with the process boxes. 5) Transfer down the data box information and calculate the totals for process time, wait time, first-time-quality, and leadtime (the sum of process time and wait time).
  • Customer
  • Process Boxes
  • Data Boxes
  • Timeline
  • Note the difference between how we view our jobs and what is really happening.
  • Use the clock as a visual reminder in areas where the process “Waits” a long period of time. The operator can’t perform the task because he is waiting for information from the customer. In this example, three weeks. Use the inbox to show wait times that are occurring because the employee performing the next step of the process is tied up doing other things. How this differs from the clock is the wait time is a result of the employee being unavailable to do the work. With the clock, the employee is waiting for an input and cannot do the work if he/she wanted to perform it.
  • Look for systemic cause of problems/waste in the process. Stress the fact that waste is a symptom of a deeper problem. Problem solving tools are effective for determining the root cause of waste in order that waste can be corrected and prevented in the future.
  • In a Value Stream, the most significant form of waste is MURI – There is a need to understand the capability of your process first. Is it overburdened? Is it underutilized? Where? For example, you would not look for waste in the process steps if your overall system is broken and not capable of meeting requirements. Note for facilitator – Example of Muri is the Body person in the airplane exercise. MURI – Is the process capable of delivering based on customer demand? MURA – In identifying mura, look for variation in the systems. Are there high peaks of activity and then slower phases of activity? Are there spikes in demand? MUDA – The wastes of correction, overproduction, motion, material movement, waiting, inventory and processing make up muda (COMMWIP). The worst form of waste is overproduction because it contributes to all other forms of waste.
  • Correction: Rework, work done because of errors in the previous process Overproduction: Making more than is necessary or making things faster than is necessary, working ahead Motion: Unnecessary people motions, travel, walking, searching Material Movement: Unnecessary handoffs, transfers, distances of material, designs, information Waiting: People waiting on machines or for information. Information waiting on people or machines Inventory: Information or material waiting in queue Processing: Redundant or unnecessary processing, work that is giving the customer more than he/she is willing to pay for. Processing is also applied to unnecessary mental processing. Now take them back to Jacks and have them identify waste in the current state as an exercise.
  • Built-In-Quality is one of the Five Principles of the Lean Manufacturing System. We need all of them to make the system work, just like an Atom it is dynamic and becomes unstable if one of the elements is missing.
  • The goal of good customer response requires us to deliver the right product to the customer at the right time. In other words, we will build the product as ordered and finish it on time. We will price the product to support an increase in demand. Example: A car is usually the largest purchase a person will make in their life time (after a house), and is a very important decision. If the customer has ordered a car with air conditioning, it should arrive with air conditioning, and it should arrive as quickly as possible! If the customer has to wait for his car, or if the car comes and is not what he ordered, we will have created a disappointment for that customer.
  • We’ll be discussing 3 of the elements under the Built In Quality Principle If one of the elements above is mentioned in the discussion refer to it. Use illustrations / examples from the exercise where appropriate.
  • Standards must focus on the customer Today’s Ship Standards are the same as the Shipping Priority Audit These standards must be usable by the team member in-station The Team Member needs to know immediately that the result of their work is defect free
  • In process control and verification (abnormality control) is achieved by a number of techniques: Each technique improves quality in the process through 100% verification and feedback Error Proofing In-Process Inspections
  • Continuous Improvement
  • Points to Make Communication Tool (cry for help) Not a tool to shut the production line down as the first action -shutting down the line is a last resort -problem is attempted to be resolved in-station before fixed position stop is reached Go and See Team Leader & Group Leader are Responsible CIP motivator What are the benefits of Andon?…wait...let them answer When they give you several responses, advance to the next slide.
  • Affirm their knowledge and identify any benefits they didn’t name. Now ask, “What are the things that must be in place in order for Andon to work effectively?”….WAIT….make them think about it…let them answer your question. After they’ve named several benefits….advance to the next slide.
  • Recognize and thank them for their input while identifying enablers which they missed. Relate the concept of andon to the non-manufacturing environment. We don’t need a pull cord and music, but we do need a method to communicate problems in completing the task, a support structure to provide the help in eliminating the problem, and an idea of when to communicate the problem. Example: Not waiting until there is no time to make any necessary adjustments. Problems need to be communicated early to avoid not meeting timelines. Stress the importance of visual controls in communicating problems or deviations in the process.
  • Now let’s discuss a few of the elements in the “Short Lead Time” Principle….
  • Here’s a few of the concepts that compliment the SLT elements. Read Slide….. Now let’s take a closer look at each of these (flip to the next slide)
  • In each example above, a customer is depicted as the pull signal. In a lean environment we only produce when we have a customer requirement (pull signal) Trigger points – (Schedules) should always be placed as close to the customer as possible and then work should flow from there The top example demonstrates a process where we cannot achieve flow. Work is therefore triggered at the last process and a pull occurs from there. Process 4 pulls from the store inventory signaling process 3 to commence work to fill the inventory store and so on back through the system. In the lower process, flow is achieved at process 2. Therefore this is the trigger point, work is scheduled here and flows downstream to the customer. Why is this a leaner process? (less in-process inventory) Where is the trigger in the airplane exercise? (Stamping – schedule & sequence point and work flows from there)
  • The uneven nature of customer demand creates a significant challenge: how to provide customers exactly what they need when they need it without having to maintain large inventories. Even small unforeseen spikes in demand can create significant disruptions when those fluctuations amplify as they move upstream through the supply chain. In a multi-product environment, demand leveling (heijunka) absorb fluctuations in demand while keeping inventories low.
  • Facilitator: Teach in relation to Jacks Taxes. As an example, A is Small Business, B is Personal, and C is Self Employed. Jack must level the work. He can’t work on one to the exclusion of the other clients. Demand leveling breaks down the total volume of orders for a given planning period (example two months, one month) into scheduling intervals (weekly, daily)
  • Before reading the slide, explain that these are some of the things that we mean when we talk about Multi-Functional Workers. Read the slide Thought Starters for discussion: The benefits of Multi functional workers are obvious when there is need for replacement of a worker due to an absenteeism or something because multi functional workers can fill in and shuffle easily to assure the proper expertise is in every job assignment. But the benefits go far beyond this obvious benefit: if 4-5 people know every job in their area very well then that’s 4-5 times the number of idea’s to identify waste and improve that job. As jobs are being balanced, if there’s one light job, while we’re waiting for enough idea’s and improvements to eliminate this job, than all people have a chance to work that one job. When problems occur, 4-5 minds are involved in identifying the root cause and implementing corrective action. 53
  • Speaker’s Notes Say: “Definable, repeatable process” - Even what we might think of as unpredictable situations, like problems or repairs. Even these have standardized work. Production Repair Work Materials Office All can be Standardized
  • Notes: Explain that Takt Time is necessary to always keep our eye on the gap (the waste) between true customer requirements and what we need to run our plants at to meet that requirement. Read the slide: Now let’s do an exercise to confirm your understanding: For this next exercise our customer needs 36 airplanes and we have 6 minutes to build these planes. What’s our Takt Time (in seconds) Work at the easel to calculate this TAKT time. Answer: 360 seconds/36 airplanes = 10 seconds
  • Now, we’ll discuss some of the elements that fall under the Principle of Continuous Improvement….
  • A major contributor to the success of a “lean facility” lies in their ability to continuously improve. This requires a shift in the mindset of the culture from one that hides problems to one that wants to surface problems. We must continue to think that… Read the slide … (give examples as you go) The small continuous improvement steps are what will make up the giant overall improvement. We can’t forget the importance of standardizing the process and allowing it to stabilize before moving on and trying to improve even more.
  • Previous best practice Current best practice Next best practice Speaker Notes SW contributes to Continuous Improvement. It documents the current best practice, so that each time there is an improvement, we start from a higher point than before Draw on the flip chart to illustrate:
  • Some of the tools that make Waste become very obvious are; 5S (Sort, Straighten, Sweep, Standardize, Sustain) Standardized Work Visual Indicators In Quality Network the program is referred to as the 5 Step Process. The steps are Clear, Organize, Clean, Maintain, and Continuous Improvement
  • 44 Once the waste has become obvious or easier to see then it’s not too difficult to find ways to eliminate it, improve, and then fill the space from the old waste with value added work. As we standardize this new work cycle, we must continue this same process……….
  • Software Development Department at Toyota. There were three teams of developers visually shown above by the 3 rows in the heijunka box. A Manager could quickly see whether or not his team was on time based on where the work was in the box. Each slot represented a day in the month.
  • This chart reflects the actual process time for each position.
  • Now we are moving back to Jacks Taxes. You need to improve Jack’s business by developing a future state. To do this, we will be applying many of the Principles and Elements learned in the airplane exercise to the Value Stream Map.
  • To support achievement of our Vision, we must have Realistic and Concrete GOALS. These are broken down into Specific Department OBJECTIVES. We must have Clear TARGETS by which we can measure if we have achieved our objectives. We also need a METHOD to reach our target. All of this is held together through formal COORDINATION and Regular and Consistent REVIEWS. As we go from the top to the base of the pyramid the focus shifts from general to more specific and detailed.
  • Leaders must teach Leaders must mentor
  • Transcript

    • 1. Welcome Value Stream Mapping
    • 2. 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.
    • 3. Introduction Name Current Position VSM Experience (if any)
    • 4. 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 Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 5. Standardization
      • 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 World Class Continuous Improvement Change
      • Standardization Elements
        • Management by Takt Time
        • Workplace Organization
        • Standardized Work
        • Visual Management
    • 6. Built In Quality
      • 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.
      Solve problems through teamwork! Satisfy your Customer. . . The Built-In-Quality Motto Do not Accept Build Ship a Defect!
    • 7. Short Lead Time
      • 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
    • 8. Continuous Improvement
      • 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 Improvement Standardization Standardization Standardization Improvement Improvement
    • 9. How Do We Expand VSM Throughout 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
    • 10. 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
    • 11. 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
    • 12. How Does Value Stream Mapping Fit With the Lean Journey
      • VSM is a tool used to support the implementation of lean strategies.
    • 13. 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
    • 14. Value Stream Map Elements Process 1 Process 2 Process Time Wait Time FTQ Process Time Wait Time FTQ Customer XYZ Org Supplier Orders Customer Orders Internal Scheduling Delivery Freq. Material Movement via PUSH Delivery Freq. I I I Supplier Inventory Lead Time
    • 15. Value Stream Maps Enable 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
    • 16. 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
    • 17. VSM Case Study
    • 18. Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Scoping the Value 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
    • 19. Jack’s Taxes Jack 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.
    • 20. Data Set Tax Season: 8 weeks 40 self-employed clients Send Reminder : John P/T = 10 min FTQ = 100% Sort receipts & documents : Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet : Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions : Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50% Print and Collate IRS tax forms : John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 – 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms : Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client : John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%
    • 21. Measurable Metrics & Performance Target from Future State Map From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 12 hours (720 Min.) Process Time Actual (post implementation) Current Estimate Metric SP QRC
    • 22. 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
    • 23. Icons MRP Changeover Kaizen Lightning Burst Movement by Push Electronic Information Flow Weekly Schedule Worker In Box (Queue) IN 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 Iterations Movement of “physical” property Reminder post-card Customer Process Box Technology Used MRP
    • 24. Draw the Current State
    • 25. Jack’s Taxes - Current State Start with Customer Then Suppliers 40 clients Customer Suppliers Client
    • 26. Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Process Steps? Jack’s Taxes - Current State 40 clients Client
    • 27. John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week Client 40 clients Tax forms to client by 4/10 Reminder post-card Jack’s Taxes - Current State 50% Process Data, Information Flow, and Process Flow P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 3 days IN 3 days IN 1 day IN 3 weeks Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS IN Receipts & Documents IN Missing documents Clarify deductions Notify of missing documents 1 week P/T W/T FTQ
    • 28. 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week 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 Total Leadtime and FTQ ----- Total of P/T = 140 minutes Total of W/T = 7wks, 2days Jack’s Taxes - Current State ---- ---- ---- ---- Total Lead Time = 7 wks, 2 days, and 140 min. Product of FTQ = 4.7% IN IN IN IN IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Documents Reminder post-card Missing documents Clarify deductions Notify of missing documents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ W/T P/T FTQ X X X X X
    • 29. Measurable Metrics & Performance Target from Future State Map 4.7% 7 Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SP QRC
    • 30. Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 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 min 3 days 1 day 1 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 Clarify deductions IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN
    • 31. Waste
      • The 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
    • 32. 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)
    • 33. FORMS OF WASTE I C O M W P M CURRENT THINKING WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT REQUIRED THINKING CONTINUOUS IMPROVEMENT Correction Over Production Motion Material Movement Waiting Inventory Processing WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE Shift Mindset WASTE 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) Employee assigned two jobs due to understaffing End of month deadline causing overtime; all projects scheduled in 1Q with none in 2 nd Delays in getting needed information, approvals, or decisions Unreasonable-ness Unevenness
    • 34. Waste Exercise Participants identify waste on current state maps.
    • 35. Jack’s Taxes - Current State MM O IN IN IN IN IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Documents Reminder post-card Missing documents Clarify deductions Notify of missing documents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 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 ----- W W I I I I I P P P C C C C
    • 36. Lean Principle: Built-In-Quality Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 37. Understanding Customer Requirements Right Product Right Time! Right Price!!
    • 38. Built-In-Quality
      • Product Quality Standards
      • In-Process Control & Verification
      • Quality Feedback/Feed Forward
    • 39. 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
    • 40. In Process Control & Verification Quality 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
    • 41. Lean Principle: Continuous Improvement Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 42. Andon ENABLERS BENEFITS 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4 Motion Correction Waiting
    • 43. Andon
      • Implement corrective action
      • Quality in station
      • Inspection and Feedback
      • Open Communication
      • Teamwork
      • Improved Productivity
      ENABLERS BENEFITS 5 Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4
    • 44. 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 Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4 4
    • 45. Lean Principle: Short Lead Time Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 46. 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
    • 47. Flow
      • All process steps occur in tight sequence (continuous flow), with little or no waiting?
    • 48. Pull
      • Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.
    • 49. TRY TO SCHEDULE ONLY 1 POINT FLOW WHERE YOU CAN, PULL WHERE YOU CAN’T Schedule Supermarket Schedule
    • 50. CONTINUOUS FLOW PROCESSING Batch & Push Processing 12 Minutes for total order 21 minutes for first piece Continuous Flow “make one, move one” 3 Minutes for first piece
    • 51. One Piece Flow - Order entry - Before File Batch Enter Batch Stack and Hold Acknowledge Orders Calculate Batch Total Batch Orders Open Mail
    • 52. One Piece Flow - Order Entry – After File Order Enter One Order Acknowledge One Order Open One Envelope
    • 53. 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
    • 54. Leveling 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 Monday Even Better: Every Part Every Ship Window
    • 55. 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
    • 56. Lean Principle: People Involvement Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 57. Multifunctional Workers
      • Minimal (or no) Job Description Silos
      • Rotate Jobs
      • Perform Several Tasks
      • Balance the Workload
      • Standard Work
    • 58. Lean Principle: Standardization Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 59. 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
      If there is no standard, there is no improvement
    • 60. Standardized Work
      • Standardized work is used when there is a definable, repeatable process.
      Materials Production Office Everyone can perform standardized work
    • 61. 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
    • 62. 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 Time Takt Time = Customer Requirement / Demand
    • 63. Lean Principle: Continuous Improvement Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 64. Continuous Improvement
      • 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 Improvement Standardization Standardization Standardization Improvement Improvement
    • 65. Continuous Improvement
      • 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
    • 66. Lean Principle: Standardization Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement
    • 67. Workplace Management
      • Workplace Organization
        • - 5S Process
      • Standardized Work
      • Visual Management
      Grasp the Situation
    • 68. Workplace Management Continuous Improvement to Eliminate Waste Add Value- added Work; Standardize Grasp Current Situation Repeat
    • 69. Where you have problem points in the flow… Set up checks for Quality, Timing, Output Make Progress and Problems Visible Visual Management Process Step 1 Process Step 2 Process Step 3 Process Step 4
    • 70. E-Toyota Application of Heijunka Box
    • 71. Takt Time Bar Chart
    • 72. 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?
    • 73. Future State Mapping
    • 74. Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Value Stream
    • 75. 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?
    • 76.
      • Customer requirements? 
      • Work flow smoothly?
      • Trigger & sequence work?
      • Rhythm (leveling)?
      • Progress & delays visible?
      • Process improvements?
      Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Clarify deductions Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 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 min 3 days 1 day 1 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 Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day John XOXO IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN COMBINE PROCESSES Stand. Work Accordion File FIFO Customer Incentive
    • 77.
      • Customer requirements? 
      • Work flow smoothly?
      • Trigger & sequence work?
      • Rhythm (leveling)?
      • Progress & delays visible?
      • Process improvements?
      Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Clarify deductions Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 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 min 3 days 1 day 1 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 Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day John XOXO IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN COMBINE PROCESSES Stand. Work Accordion File FIFO Customer Incentive
    • 78.
      • Customer requirements? 
      • Work flow smoothly?
      • Trigger & sequence work?
      • Rhythm (leveling)?
      • Progress & delays visible?
      • Process improvements?
      Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Clarify deductions Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 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 min 3 days 1 day 1 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 Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day John XOXO IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN COMBINE PROCESSES Stand. Work Accordion File FIFO Data entry Worksheet training Individual 1040, 1040EZ training Reduce process time to 75 min Standardize Work Customer Incentive
    • 79. 40 clients Mail forms forms to client Complete Accordion File Checklist & Accordion File Jack’s Taxes Future State Check & sign forms Send Reminder Client max 1 day max 1 day XOXO 1 per day Over 8 weeks Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day
      • 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 day 1 day John 10 min 100% John 75 min 98% Jack 15 min 1 day 100% John 10 min 1 day 100% 98 % 100 % 100 % 100 % IN IN Data entry + print forms FS FIFO P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ
    • 80. Measurable Metrics & Performance 98% 2 Days, 100 Min. 100 Min. Target from Future State Map 4.7% 7 Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SP QRC
    • 81. 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, …
    • 82. Implementation Planning
    • 83. Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Value Stream
    • 84. Current State The Methods / Action Steps are how you will get there Future State Changes The specific changes (Kaizen Bursts) needed to move from CS to FS are your Objectives
    • 85.
        • 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
    • 86. BPD Elements Regular and Consistent Reviews Concrete GOALS Specific OBJECTIVES Clear & Measurable TARGETS A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies Coordination Common Measurements
    • 87. Business Plan Deployment Is a PDCA Cycle 2 1 2 3 4 Plan Do (Communicate & Implement) Check Act (Standardized & Countermeasures) Scorecard Tasks Plant Master Plan Action Annual Business Plan Plan Do Check Act Problem Description Direct Cause Cause Cause Cause Why? Why? Why? Why? Why? Root Cause
    • 88. Leadership’s Role TEACH! Plan Do Check Act
    • 89. Wrap-Up
    • 90. Wrap-up
      • What did you learn today?
      • Did the program meet your expectations?
      • How can we improve this learning event?

    ×