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

1. Welcome Value Stream Mapping

3. Introduction Name Current Position VSM Experience (if any)

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

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

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

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

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!!

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

45. Lean Principle: Short Lead Time Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

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

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

56. Lean Principle: People Involvement Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

58. Lean Principle: Standardization Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

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

66. Lean Principle: Standardization Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

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

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

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

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

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