Value stream mapping is a Lean technique used to analyse and design the flow of materials and information required to bring a product or service to a consumer. It can be used for nearly any value chain, line of business and group of processes to optimize their results and efficiency. During the hands on work-shop each participant will have the opportunity to work with their actual business problems and walk away with a clear roadmap on what to improve and why. Takeaways: work-shop participants will be able to find ways in their organisation to: - improve efficiency - build transparency - increase the quality of the output and customer satisfaction - set strategies for future improvements - create accountabilities

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The Lean Toolkit - Value Stream
Mapping and Problem Solving
Improvement Strategies and Execution
Hanno Jarvet
www.jarvet.com
Agenda
• Defining a Value Stream
– Identifying a suitable process(es)
– Creating a current state Value Stream Map
– Creating a future state Value Stream Map
• Creating an action plan
– Planning and execution (Deming Cycle: Plan, Do,
Check, Act)
– Identifying root causes of problems
– Problem solving with an A3 template
www.jarvet.com
Expected results
After the session the participants are better able to:
• improve efficiency
• build transparency
• increase the quality of the output and customer
satisfaction
• set strategies for future improvements
• create accountabilities
www.jarvet.com
What is Lean?
• Deliver continually increasing customer
value
– Expending continually decreasing effort
– By leveraging the time and energy of bright,
creative workers
Project
noise
level
Simple
Complex
Anarchy
Com
plicated
Technology
Requirements
Far
from
Agreement
Close
to
Agreement
Close
to
Certainty
Far
from
Certainty
Source:
Strategic
Management
and
Organiza0onal
Dynamics
by
Ralph
Stacey
in
Agile
So7ware
Development
with
Scrum
by
Ken
Schwaber
and
Mike
Beedle.
Pilt:
Mountain
Goat
SoKware
www.jarvet.com
What Is Value?
• A capability provided to a customer
– of the highest quality
– at the right time
– at an appropriate price
as defined by the customer.
"Value" is what the customer is buying

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Eliminate Waste
Stop doing things customers don’t value!
Value is…
Seen through the eyes of those who pay for, use,
support, or derive value from our systems.
Waste is…
Anything that depletes resources of time, effort,
space, or money
www.jarvet.com
Stop making customers unhappy
Value Demand
– Demand for work that adds value from a customer
perspective
– The Goal: Deliver products and services that will
delight Customers
Failure Demand
– Demand on the resources caused by your failures.
Eg. Support Calls
– The Goal: Eliminate Failure Demand. Meanwhile
respond as fast as possible.
What creates value?
(SIPOC) Suppliers Input Process Output Customers
• Product and service design
• Product development
• Service development
• Customer Service and sales
• Product and service delivery
• Customer advisory/training
after delivery
• Routine client “maintenance”
• Most management activities
• Customer surveys
• Systems and process design
• HR
• Office and production
facilities cleaning and
maintenance
• Finance / bookkeeping /
Accounting
• Purchasing /Procurement
• Administration
• Training
• Management information
systems
• Service / Production Planning
www.jarvet.com
The Original 7 Wastes
• Transport
– moving products that are not actually required to perform the processing
• Inventory
– all components, work in process and finished product not being processed
• Motion
– people or equipment moving or walking more than is required to perform the
processing
• Waiting
– waiting for the next production step
• Overproduction
– production ahead of demand
• Over Processing
– resulting from poor tool or product design creating activity
• Defects
– the effort involved in inspecting for and fixing defects
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SoKware
Development
7
• ParOally
Done
Work
• Extra
Processes
• Extra
Features
• Handoffs
• Delays
• Task
Switching
• Defects
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If
Each
Handoff
Leaves
50%
Behind
•
25%
of
knowledge
leK
aKer
2
handoffs
•
12%
of
knowledge
leK
aKer
3
handoffs
•
6%
of
knowledge
leK
aKer
4
handoffs
•
3%
of
knowledge
leK
aKer
5
handoffs

3. 13/11/13
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Apply Five Simple Principles
• Specify value from the standpoint of end
customer
• Identify the value stream for each
product family
• Make the product flow
• So the customer can pull
• As you manage toward perfection
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What is the Value that Flows?
• Specify value from the standpoint of the end
customer
• Ask how your current products and processes
disappoint your customer’s value expectation:
– price?
– quality?
– reliable delivery?
– rapid response to changing needs?
– ???
www.jarvet.com
What Flows?
• "ITEMS" flow through a value stream
– In manufacturing, materials are the items
– In design & development, designs are the items
– In service, external customer needs are the items
– In admin., internal customer needs are the items
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Value Stream Mapping Purpose
• Provide optimum value to the customer
through a complete value creation process
with minimum waste in:
– Design (concept to customer)
– Build (order to delivery)
– Sustain (in-use through life cycle to service)
Value Stream Mapping (VSM): Is a special type of flow
chart that uses symbols known as "the language of Lean"
to depict and improve the flow of inventory and
information.
Value Stream Map
Thanks to: Henrik Kniberg, of
Crisp, Stockholm
Used with Permission
Write
up
Idea
Concept
presen-
tation
Lisa
assigns
people
Graphics
design
Sound
design
Develop-
ment
Integrate
& deploy
Game backlog
8
Design-ready
games
15
Product-ready
games
12
3 m value added time
25 m cycle time
Process
= 12% cycle
efficiency
Games out of date
⇒ Missed market windows
⇒ Demotivated teams
⇒ Overhead costs
2d 1m
4h
6m 1w 6m 6m
1m 3w
(Total 3m)
3w2h 1d
2m
1m
Waste
Value
What would you do?
Copyright©2010 Poppendieck.LLC
www.jarvet.com

4. 13/11/13
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Different Organizations
High Reliability Organizations
• Far less than their fair share of accidents.
• Failure is a learning opportunity.
• So small failures are deeply investigated and corrected.
• Noise is not tolerated.
Low reliability Organizations
• Far more than their fair share of major accidents.
• Failure is not an option. So failures are hidden.
• Noise is ignored.
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Excellence
Excellence is the product of good people
and good systems. (Don Reinertsen)
Good people:
– Have the capability and experience to do
their work well.
– Have a disciplined approach to work
– Don’t need to be tightly managed
– Fulfill their commitments
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Seeing Problems is Easy
…Caring about them is not
Everybody sees symptoms
– And ignores them
– Or complains about them
– And works around them and goes on
Problem SOLVING organizations
– Look for symptoms
– Use PDCA to address the underlying problem and find
permanent remedies
– Even for small problems
How do you compete against an organization where
everyone is a problem solver???
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High Velocity Organizations
Improve & adapt faster than their competitors
1. Use well defined team work processes designed to
reveal failure rapidly.
2. Whenever failure occurs, the team swarms the
problem close in space and time to the event.
3. Teams are expected to share what they learn with
the rest of the organization
4. The primary responsibility of leaders and managers:
make sure 1, 2, & 3 happen. (not to deliver results)
Compare: “I thought I was a great problem solver, but I
have been solving the same problem for 20 years!”
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Dr. W. Edwards Deming
Most of the problems we encounter (perhaps 90%) are
the result of multiple influences, they generally can not
be attributed to a single cause. Assigning blame for a
problem to the last person involved is worse than
counterproductive, it will probably make a bad
situation worse.
www.jarvet.com
• Safe Flying
– 1935: Major Ployer Hill was killed while
testing a new plane
– Forgot to release new locking on elevator
and rudder controls
– Conclusion: New planes are too complex to
fly.
– Group of test pilots devised a solution:
Good People Make Mistakes
Good Systems Prevent Mistakes

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Problem Solving A3
For boundary-spanning problems
Develop a Consensus for action
– Boundary –spanning communication
• 30 second glance, 10 minutes to read
– Pull based authority
• Agreement of those affected by the change
– Owner Responsibility
• Team collaboration
– Cautions
• Define the problem carefully
• Find REAL root cause
• Manager as mentor
Sorbek & Smalley: Understanding A3
Thinking
The Deming Cycle
Typical PDCA
• Plan quickly
– Address Symptoms
• Do immediately
– Jump to conclusions
• Check roughly
– Act pretty much the way
you did before
High Velocity Organization
PDCA
• Plan deeply
– Discuss actual situation and
target with everyone
affected
– Really understand/model
the problem and its root
cause
• Do many quick experiments
– Validate your thinking
– Check implications carefully
• Act systematically
– Update and deploy
standards and checklist
disciplines
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Improvement Kata
1. Visualize Perfection
2. Have a first hand grasp of the situation
3. Define a target condition on the way to
perfection (strive to move step by step to
target)
4. As obstacles are encountered, they are
systematically understood and overcome
(You do this until you retire or die. Whichever comes first. ;) )
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Coaching Kata
• Everyone has a mentor
• The mentor
– Knows the details
– Asks questions
– Teaches the improvement kata
– Focuses on learning
• Not results
• We build people before we build cars. (Toyota)
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Theme and Background –
Look Very Carefully
• Theme is A3 Title
– Identifies relevance
– Revised as situation understanding improves
• Background identifies problems impact
– Why this problem matters
• Impact of problem on organization
• Specific and Quantitative –use graphs, tables, etc.
– People affected understand, agree on, and care
• 10 second rule
– Reader can assess relevance of A3 within 10
seconds

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Current Condition –
Ask what we already know
• Specific, detailed, quantitative, concise
– Tables, graphs, histograms, value-stream maps, diagrams
– Countermeasures (Experiments)
– Highlight exactly where problem occurs
– Baseline to compare to metrics after countermeasures
are applied
• Engage everyone affected by or causing symptoms
– Build Consensus on what is
• Symptoms / Undesirable Effects everyone can see
• Foundation of authority to experiment with countermeasures
• Update as understanding improves
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Goal –Next Target Condition
Model what we expect
• What baseline change is wanted?
– What does perfect look like?
– What does the organization need?
• Mentor ensures that the owner has both
– Plausible Hypothesis
• Based on best available model/understanding of how
the system should work
– Consensus among stakeholders
• Target is attainable and desirable
• Update as root cause and countermeasures
developed
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Root Cause –
Model Cause & Effect
• Identify underlying problem(s) causing symptoms
– Root cause is typically faulty thinking or assumptions
• Addressing the root cause(s) improves all levels of
symptoms/undesirable effects/visible damage.
• Build consensus among stakeholders
– Broad agreement on Cause & Effect network
– Reflect best current knowledge about how things work
• Some techniques:
• Some techniques:
– 5 Whys -track down the
– Ishikawa (fishbone) diagram
– Cause-effect diagram
– Current Reality Tree
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Propose Countermeasures –
DO [Many Experiments]
• Identify countermeasures for each candidate root
cause
– Experiments expected to mitigate underlying
problem
– Suggested by people involved or A3 owner
• Assess each countermeasure
– Discuss with Stakeholders affected
– Identify expected changes in meaningful measures
from each countermeasure
– Select those with most promise
• (DO) Try each selected countermeasure to get
evidence for their effectiveness
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Results & Follow-up –
Check& Act: Know WHY, not just know how!
• For each countermeasure implemented
– What actually happened
• If different than expected,
– Why?
– Does the model you used correctly represent what
happens?
– How do the results improve your knowledge of how
to think about your work?
• What will you monitor to know that the problem
remains “solved”?
• What additional problems are revealed after the
countermeasures are in place?
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Learning
Results and Follow-up
• The reliable learning comes from checking the results
of your experiments.
– If the hypotheses in your root-cause analysis are correct,
your countermeasures should make the situation better
by the amount you expected.
– If they do not, either your model is wrong or the
countermeasure is not correct or sufficient to address the
root-cause and you have to try again.
• Learning only has value if it changes the way you act
– Improved workflow, better method, better skills, needed
checklist item, better standards, etc.
– This is the ACT part or PDCA, change the way you do this
kind of work.

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Scopes of A3s
Strategic
(6-­‐12
months)
System
(1
week
–
6
months)
Process
(1
week)
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Ishikawa or Fishbone Diagram
Root Cause Analysis
Root Cause Analysis