Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Value Stream Mapping - Strategy Before Tactics

20,666 views

Published on

Recorded webinar: http://slidesha.re/1hT4EZ4

Subscribe: http://www.ksmartin.com/subscribe

To purchase the book: http://bit.ly/VSMbk

Value Stream Mapping (VSM) remains one of the most powerful yet underutilized strategic improvement tools that also transforms organizational thinking and behavior.

In this practical how-to webinar, learn the mechanics of VSMs, the differences between manufacturing and non-manufacturing value stream maps and best practices for holding a Value Stream Mapping Event.

Published in: Business, Technology

Value Stream Mapping - Strategy Before Tactics

  1. Value Stream Mapping: Strategy Before Tactics Karen Martin Webinar August 23, 2012
  2.  Founder: Karen Martin & Associates, LLC (1993). Consultant / Coach: Lead Lean transformations & develop people in office, service and knowledge environments. Teacher: University of California, San Diego’s Lean Enterprise program. Author: Karen Martin,  Principal Just released! 2nd Edition  October 2012!
  3. Value Stream Mapping’s Roots Mike Rother & John Shook, 1999 Beau Keyte & Drew Locher, 2004 Whenever there is a product for a customer,  there is a value stream.  The challenge lies in seeing it. — Mike Rother & John Shook, Learning to See© Karen Martin & Associates, LLC 3
  4. Value Stream Defined Value Stream: All of the activities, required to fulfill a customer request from order to delivery (and beyond to cash received). Value Stream Process Process Process Custom er Customer Customer Request Receipt 4© Karen Martin & Associates, LLC
  5. Why Value Stream Mapping?© Karen Martin & Associates, LLC 5
  6. Value Stream Mapping Benefit #1: Seeing the Whole 60,000 foot view; Rooftop view© Karen Martin & Associates, LLC 6
  7. VSM Promotes Systems Thinking System Efficiency = Optimal Value Stream  Performance  Individual Efficiency =     Sub‐optimization 7
  8. Value Stream Mapping Benefit #1: Seeing the Whole 60,000 foot view; Rooftop view© Karen Martin & Associates, LLC 8
  9. Truth Value Stream Mapping  Truth Benefit #2 Truth Truth Truth Truth Truth How are we really performing? Truth What’s our customer really experiencing?© Karen Martin & Associates, LLC Truth 9
  10. Value Stream Maps Serve as Visual “Storyboards” Makes the disconnects  Shows the linkage  and obstacles to flow  between material and  visible at a macro level information flow 10© Karen Martin & Associates, LLC
  11. AMBIGUITY 11
  12. Problems Nearly Always Extend Outside the Functional Silos in Which They’re Discovered© Karen Martin & Associates, LLC 12
  13. Value Stream Mapping Benefit #3: Consensus Building© Karen Martin & Associates, LLC 13
  14. Value Stream Mapping Benefit #4: Metrics-Based What are you  going to do to  change the  numbers?© Karen Martin & Associates, LLC 14
  15. Outpatient Imaging Value Stream Projected Results Current Projected % Metric State Future State Improvement Lead Time 32.5 hrs 11.3 hrs 65% Process Time 56 mins 43 mins 23% Percent Activity 2.9% 6.3% 117% Rolled First 29% 40% 38% Pass Yield # Macro Steps 14 11 21% Tech turnover 100% 25% 75% (annual) Note: Freed capacity (PT reductions) allowed the organization to earn  $500,000 additional annual revenue w/o increasing staff.© Karen Martin & Associates, LLC 15
  16. Value Stream Mapping Benefit #5: Strategy Before Tactics Where am I?  Where do I want  to go? ? Which route  ? should I take? ? I‐80 option I‐40 option I‐70 option© Karen Martin & Associates, LLC 16
  17. The Work We Do: Degrees of Granularity Rooftop Value Value Stream View Map (Strategic) Stream Process Process Process In the Metrics-Based Weeds Step Step Step Process Map (Tactical)© Karen Martin & Associates, LLC 17
  18. Value  Stream  Mapping Projects,  Kaizen Events,  Just‐Do‐Its© Karen Martin & Associates, LLC 18
  19. Value Stream Mapping: As Much Art as Science© Karen Martin & Associates, LLC 19
  20. ABC Widget Value Stream Key VSM Components: Current State Map  Demand = 1,800/year   Manufacturing 08/08/2012      Facilitator: Sally Parker Information Flow Production  SUPPLIER Control CUSTOMER1 Product Flow Process 1 I Process 2 I Process 3 I Process 42 Hours Hours Hours Hours LT Timeline3 Minutes Minutes Minutes Minutes PT© Karen Martin & Associates, LLC
  21. Key VSM Components:                        XYZ Value Stream Current State Map  Demand = 250/year   Information Flow Office / Service 08/08/2012 Facilitator: Robert Parker CUSTOMER 1 I.T. I.T. I.T. Product Flow Process 1 Process 2 Process 3 Process 4 2 Timeline PT 3 LT© Karen Martin & Associates, LLC
  22. Current State Value Stream Map  Demand = 15 per day Outpatient Imaging Services Customer Demand: 15 patients per Day (Takt Time 1920 seconds) Pre-register Schedule 8 hours per day Patient Appointment Referring Hospital Physician 4 1 Lead Time = 24 days 5 3 Lead Time = 990 mins. 6 2 Lead Time = 12 mins. Cycle Time = 30 mins. Cycle Time = 11 mins. % C&A = 65 % Lead Time = 990 mins. Lead Time = 12 mins. % C&A = 100 % % C&A = 98 % CT=Cycle Time LT=Lead Time %C&A=% Complete & Accurate Symposium E Pay Excel ADS Meditech Internet Fax Order PACS Waiting Room Auto Fax 50% Solutions Management Us Mail 25% System MD Mailbox 25% Rework Loop via Fax 25% of the time Prep Complete Transmit Read/Dictate Transcribe Review Print Send Check-in Check-in Patient Exam Images Exam Report Draft/Sign Reports Reports Patient Patient (Tech) (Tech) (Tech) (Radiologist) (MDI) (Radiologist) (Imaging) (Imaging) (Admitting) (Imaging) 5 mins. 5 5 mins. 6 45 mins. 7 30 mins. 8 5 mins. 9 248 mins. 10 365 mins. 11 960 mins. 12 110 mins. 13 120 mins. 14 5 3 2 2 2 2 6 2 2 6 Cycle Time = 2 mins. Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 15 mins. Cycle Time = 3 mins. Cycle Time = 15 mins. Cycle Time = 5 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins. % C&A = 90 % % C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 75 % % C&A = 95 % % C&A = 99 % % C&A = 90 % 5 minutes 45 minutes 30 minutes 5 minutes 248 minutes 365 minutes 960 minutes 110 minutes 120 minutes L/T = 13464 minutes 2 minutes 11520 1 minutes 10 minutes 15 minutes 3 minutes 15 minutes 5 minutes 1 minutes 1 minutes 3 minutes VA/T = 11576 minutes minutes Rolled First Pass yield = 29%© Karen Martin & Associates, LLC
  23. Value Stream Mapping Process Define Products (good or services) with Product Family common process steps Foundation (the basis) for the  Document Current  future state; 70‐80% accurate is State acceptable (directionally correct) Create flow by eliminating waste  Design Future  (now obvious from your 3 Day  State current state map); typically 3‐6Repeat Event months out Create  Include accountability and Implementation Plan timeframes for completion Implement! The goal of mapping!
  24. Value Stream Mapping Charter Event Scope Leadership / Coordination Schedule Executive 3 days typically; sequential is Value Stream Contract processing, rebate processing, etc. VP or C-level Event Date(s) Sponsor best Specific What circumstances youre including and Value Stream If needed - often Director or Start/End 6 hrs minimum; 7 or 8 is best Conditions excluding? (type of cust, time of year, etc.) Champion Manager level TimesCustomer Demand How many times is this done per wk, qtr, mo, or yr.? Facilitator Skilled person leading the activity Location Need ample wall space Trigger What need does the value stream address? First Step Task on first process block Meals Always a nice touch; keeps Team Lead Not always needed Last Step Task on last process block Provided? the team from wandering. Boundaries & Interim Aid in consensus building and What is the team NOT authorized to change? The person arranging logistics Limitations Briefing(s) organizational learning. Coordinator (reserving the room, ordering food,FS Implementation sending meeting notices, etc.) Briefing List required attendees; others Typically 90-120 days Timeframe Attendees are optional Event Drivers Mapping Team 1 Why are you doing this? What are the current state issues? Function Name Contact Information 2 1 Leadership-heavy 3 2 4 3 5 4 Goals & Measureable Objectives 5 1 Aim for objectives w/ measurable targets (from X to X). 6 2 7 3 8 4 9 5 10 Planned Deliverables On-Call Support 1 Current state VSM Function Name Contact Information 2 Future state VSM 1 SMEs that may not be needed full time 3 Implementation Plan 2 4 3 5 4 Potential Obstacles Approvals 1 …to the teams success with the mapping activity. Executive Sponsor Value Stream Champion Facilitator 2 3 Signature: Signature: Signature: 4 Date: Date: Date: 24
  25. Team-Based Improvement Activities Rules of Engagement1. The team starts and ends the day together; begin and end breaks together.2. No interruptions or distractions – 100% focus; phones on silent; no email; no texting.3. Rank has no privilege.4. Seek the wisdom of ten instead of the knowledge of one.5. Use creativity before capital (in designing improvements).6. Finger-pointing and blame has no place: “It is what it is.”7. Respectful disagreement is encouraged. (It’s OK to disagree; it’s not OK to be disagreeable.)8. No veto power from outside the team.9. No silent objectors; don’t leave in silent disagreement.10. One conversation at a time; no side bars.11. What’s said in the room stays in the room.12. Ask Why? Why not? What if?13. Ban “Can’t” and “No, because…” from your vocabulary. Think/say: “Yes, if…”14. Ban internal, silo’d thinking; think externally (customer); value stream. 25
  26. Step 1 – Label Map • Label your map in upper right corner: – Value stream name – Current or future state – Customer demand (volume of work per time period) – Takt time (if relevant) – Date – Facilitator’s name (and/or team)© Karen Martin & Associates, LLC 26
  27. Takt Time:                  The Key to Continuous Flow Available work time Takt time =  Customer demand 480 minutes/day Takt time =                                         = 10.7 mins 45 new accounts/day “Touch Down” OR… Time Available divided by what Kustomer Takes 27© Karen Martin & Associates, LLC
  28. Step 2 – Define Process Blocks • Identify all blocks in the process (target 5-15 blocks) – Each block (post-it) contains an activity or group of activities that occurs before a significant break in the timeline occurs (typically build up of WIP or handoff) – Customer icon is placed in upper right or middle • Upper right if supplier exists (supplier is placed in upper left) • Middle position if a separate supplier doesn’t exist – Supplier (if relevant) is placed in upper left – Activity format is verb/noun – what happens to what – Include the function who performs the task – If relevant, include number of workers who perform the task – Include any major barriers to flow – batches, shared/inaccessible resources, system downtime, etc. – When possible, walk the process!© Karen Martin & Associates, LLC 28
  29. Step 3 – Define I.T. Systems • Identify all I.T. systems used in the process and information flow – For most VSMs, these are placed above the process blocks – In very complicated VSMs with two rows of process blocks, I.T. systems can be placed between the rows, if necessary. – Note any scheduling that occurs (calendar, system, etc.) – Who tells whom to do what? How do they tell them?© Karen Martin & Associates, LLC 29
  30. Current State Value Stream Map Outpatient  Demand = 15 per day Imaging Services Customer Demand: 15 patients per Day (Takt Time 1920 seconds) Pre-register Schedule 8 hours per day Patient Appointment Referring Hospital Physician 4 1 Lead Time = 24 days 5 3 Lead Time = 990 mins. 6 2 Lead Time = 12 mins. Cycle Time = 30 mins. Cycle Time = 11 mins. % C&A = 65 % Lead Time = 990 mins. Lead Time = 12 mins. % C&A = 100 % % C&A = 98 % CT=Cycle Time LT=Lead Time %C&A=% Complete & Accurate Symposium E Pay Excel ADS Meditech Internet Fax Order PACS Waiting Room Auto Fax 50% Solutions Management Us Mail 25% System MD Mailbox 25% Rework Loop via Fax 25% of the time Prep Complete Transmit Read/Dictate Transcribe Review Print Send Check-in Check-in Patient Exam Images Exam Report Draft/Sign Reports Reports Patient Patient (Tech) (Tech) (Tech) (Radiologist) (MDI) (Radiologist) (Imaging) (Imaging) (Admitting) (Imaging) 5 mins. 5 5 mins. 6 45 mins. 7 30 mins. 8 5 mins. 9 248 mins. 10 365 mins. 11 960 mins. 12 110 mins. 13 120 mins. 14 5 3 2 2 2 2 6 2 2 6 Cycle Time = 2 mins. Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 15 mins. Cycle Time = 3 mins. Cycle Time = 15 mins. Cycle Time = 5 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins. % C&A = 90 % % C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 75 % % C&A = 95 % % C&A = 99 % % C&A = 90 % 5 minutes 45 minutes 30 minutes 5 minutes 248 minutes 365 minutes 960 minutes 110 minutes 120 minutes L/T = 13464 minutes 2 minutes 11520 1 minutes 10 minutes 15 minutes 3 minutes 15 minutes 5 minutes 1 minutes 1 minutes 3 minutes VA/T = 11576 minutes minutes Rolled First Pass yield = 29% VSM Champion:  Paul Scanner Created:   July 17, 2007© Karen Martin & Associates, LLC
  31. Step 4 – Number the Process Blocks • Number the process blocks • Connect the customer and supplier, process blocks and I.T. systems – “Lightning bolt” arrow for electronic/automatic information flow – Regular arrow for push systems – “Hollow” arrow for product flow • If parallel processes exist, use alpha modifiers – e.g. 8A, 8B, etc.© Karen Martin & Associates, LLC 31
  32. Step 5 – Add Data • Add key metrics for all process blocks – Process Time (PT) – Lead Time (LT) – Percent Complete & Accurate (%C&A) • Add work-in-process (WIP) at every step.© Karen Martin & Associates, LLC 32
  33. Key Metrics: Time • Process time (PT) – The time it takes to actually perform the work, if one is able to work on it uninterrupted – Includes task-specific doing, talking, and thinking – aka “touch time,” work time, cycle time • Lead time (LT) – The elapsed time from the time work is made available until it’s completed and passed on to the next person or department in the chain – aka throughput time, turnaround time, elapsed time – Includes Process Time, not merely waiting time.© Karen Martin & Associates, LLC 33
  34. Key Metrics: Time Scenario 1 Lead Time (LT)  Work  Process Time (PT) Work passed to  Received next step LT = PT + Waiting / Delays© Karen Martin & Associates, LLC 34
  35. Key Metrics: Time Scenario 2 Lead Time (LT)  Process Time Work  Work passed to  Received next step LT = PT + Waiting / Delays© Karen Martin & Associates, LLC 35
  36. 3 Types of Work-in-Process (WIP) Waiting  Completed,  to be  Currently but not yet  processed in process passed on WIP WIP WIP Process 1 Process 2 Process 3 Step 2’s WIP 36© Karen Martin & Associates, LLC
  37. Current State Value Stream Map Purchasing — Non‐repetitive purchases less than $5,000 WIP only noted at the 3  Inititate Req. 1 steps where it has  Originator 31 PT = 10 mins. accumulated. C&A = 10% Supplies Hard Copy Vendor Form File File Maker Quicken Excel ERP Website Data Entry Review 4 Enter 7 Approve in 8 Submit PO Review 2 3 Review 5 Review 6 9 10 Review Req. 20 Reqs Requisition 10 Reqs ERP 63 Reqs to Supplier Budget Requisition Requisition Requisition External Corp Purchasing Supplier Sys Engineer Admin Asst Corp Purchasing Finance Supervisor IS Manager Financial Mgr Manager 6 2 1 1 1 1 1 62 hrs. PT = 5 mins. 4 hrs. PT = 5 mins. 40 hrs. PT = 5 mins. 8 hrs. PT = 5 mins. 8 hrs. PT = 10 mins. 4 hrs. PT = 15 mins. 24 hrs. PT = 5 mins. 56 hrs. 80 hrs. PT = 20 mins. PT = 15 mins. C&A = 60% C&A = 95% C&A = 90% C&A = 100% C&A = 95% C&A = 98% C&A = 90% C&A = 98% 0.25 days 0.5 days 5 days 1 days 1 days 0.5 days 3 days 7 days 10 days LT = 28.4 days 5 mins. 5 mins. 5 mins. 5 mins. 10 mins. 15 mins. 5 mins. 15 mins. PT = 65 mins. AR = 0.477% RFPY = 4.2% PT = Process Time LT = Lead Time Customer Demand: C&A = % Complete & Accurate 615 requisitions per y ear AR = Activ ity Ratio (PT/LT x 100) RFPY = Rolled First Pass Y ield© Karen Martin & Associates, LLC
  38. Key Metrics: Quality • %Complete and Accurate (%C&A) – % of incoming work that’s “usable as is”; the downstream customer can perform task without having to “CAC”: • Correct information or material that was supplied • Add information that should have been supplied • Clarify information that should have or could have been clearer – Determined by the person receiving the input; metric goes on the output block. – Measured by the immediate downstream customer and all subsequent downstream customers. – Similar to first pass yield in manufacturing.© Karen Martin & Associates, LLC 38
  39. Post‐it Conventions Process # Process  (Verb/Noun) Function # Staff  (if  relevant) Significant   Barriers to flow Process Time %C&A Lead Time© Karen Martin & Associates, LLC
  40. Step 6 – Create Timeline • Create timeline • Calculate summary metrics – Timeline PT Sum – Timeline LT Sum – % Activity Ratio (AR) – Rolled First Pass Yield (RFPY)© Karen Martin & Associates, LLC 40
  41. Concurrent Work / Parallel Flows Process Process LT = 8 hrs Process Process Process LT = 4 hrs Bring longest lead time to the timeline,  unless it’s a “dead end step.” 41© Karen Martin & Associates, LLC
  42. Summary Metrics: Time • Percent Activity (%Act) – Also referred to as Activity Ratio – The percentage of time anything is being done to the work passing through the system (whether value-adding or non-value-adding) – %Act = (∑PT ÷ ∑LT) × 100 – 100 – %Act = % Time Work is Idle – Common current state finding = 1-10% (across value stream) – Could also calculate %VA to show proportion of value- adding time (often significantly lower than % Act).© Karen Martin & Associates, LLC 42
  43. Summary Metrics: Quality• Rolled First Pass Yield (RFPY) – The percent of value stream output that passes through the process “clean,” with no “hiccups,” no rework required. – RFPY = (%C&A x %C&A x %C&A…) x 100 – Example: (0.80 x 0.50 x 0.99 x 0.75) x 100 = 29.7% – Common current state finding = 0-15% 43
  44. Summary Metrics: Labor Requirements • Total PT – Sum of all activities, not just critical path • Labor Requirements Total PT (in hrs) X # occurrences/year # FTEs = Available work hrs/year Freed  = Current State FTEs – Future State FTEs Capacity * FTE = Full‐time Equivalent (2 half time employees = 1 FTE)© Karen Martin & Associates, LLC 44
  45. What do you do with freed capacity? • If expanding market, absorb add’l work without increasing staff • If flat market, reduce payroll through natural attrition • Reduce paid overtime • In-source • Better work/life balance • Slow down & think • Innovate – create new revenue streams • Conduct ongoing continuous improvement activities • Do a better job with fewer errors and higher safety • Get to know your customers better; build stronger supplier relationships • Mentor staff to create career growth opportunities • Provide additional workforce development; cross-training • Do the things you haven’t been able to get to; get caught up • Collaborate with other areas© Karen Martin & Associates, LLC 45
  46. Step 7 – Determine VA & N Steps • Identify all value-adding (VA) and necessary non-value-adding (N) steps – Add “VA” or “N” smaller post-it to relevant process blocks – All unnecessary non-value-adding blocks remain unlabelled© Karen Martin & Associates, LLC 46
  47. Customer-Defined Value • Value-Adding (VA) - any operation or activity your external customers value and are (or would be) willing to pay for. • Non-Value-Adding (NVA) - any operation or activity that consumes time and/or resources but does not add value to the product (good or service) the customer receives. – Necessary – support processes, regulatory requirements, etc.; also referred to as “essential” or “value-enabling.” – Unnecessary – everything else - WASTE© Karen Martin & Associates, LLC 47
  48. Typical Current State Findings Unnecessary  Necessary NVA NVA Order Delivery Value Add Islands of activity (process times) within long lead times. 48© Karen Martin & Associates, LLC
  49. Current State Typical Findings: Work Effort as Defined by the  External Customer Unnecessary non-value adding Necessary non-value- adding Value-adding© Karen Martin & Associates, LLC
  50. Value Stream Mapping Process Define Products (good or services) with Product Family common process steps Foundation (the basis) for the  Document Current  future state; 70‐80% accurate is State acceptable (directionally correct) Create flow by eliminating waste  Design Future  (now obvious from your 3 Day  State current state map); typically 3‐6Repeat Event months out Create  Include accountability and Implementation Plan timeframes for completion Implement! The goal of mapping!
  51. Future State Design • Goal: Eliminate all obstacles to flow (“the thing” should never stop) – Batches – Rework – Bottlenecks & WIP – Handoffs – Setup / changeover – Physical layout – Motion & transportation© Karen Martin & Associates, LLC 51
  52. Eight Wastes (Muda) • Overproduction • Motion (people) • Inventory • Transportation  • Waiting (material/data) • Over‐Processing • Underutilized  people • Errors 52© Karen Martin & Associates, LLC
  53. Eight Questions for Future State VSM 1. What are the customer requirements? What’s the takt time? 2. Will we produce to order or to finished goods inventory? (In office/service sector, you’re almost always producing to order.) 3. Where can continuous flow be put in place? 4. Where should pull systems be implemented? 5. What is the single point of scheduling? 6. How do we level the load and the mix? 7. What should the management time frame be? 8. What process improvements are necessary to achieve the future state? ‐‐ Rother & Shook, Learning to See© Karen Martin & Associates, LLC
  54. Future State Design Considerations • Eliminate steps / handoffs • Implement pull • Combine steps • Create an organized, visual  • Create parallel paths workplace • Alter task sequencing and/or  • Reduce setup &  timing changeover • Improve quality (error‐proof) • Eliminate motion &  • Eliminate unnecessary  transportation approvals / authorizations • Co‐locate functions based  • Stop performing non‐value  on flow; create cells  adding (NVA) tasks (teams of cross‐functional  staff) • Standardize work • Balance work to meet takt  • Reduce / eliminate batches time requirements 54© Karen Martin & Associates, LLC
  55. Future State Value Stream Map Outpatient  Demand = 15 per day Imaging Services Standard Work Co-locate Customer Demand: Work 15 patients perDay Balance (Takt Time1920 seconds) Schedule appt Pre-register 8 hours per day Referring Hospital Physician 3 1 Lead Time = 15 days 6 2 Lead Time = 45 mins. Cycle Time = 11 mins. % C&A = 85 % Lead Time = 45 mins. % C&A = 98 % Risk Reduction (Joint CT=Cycle Time Commision) LT=Lead Time %C&A=% Complete & Accurate Symposium E Pay Excel Meditech Internet Waiting Room Fax Order PACS Auto Fax 80% Solutions Management Us Mail 15% System MD Mailbox 5% Pull System Value Stream 5S Rework Loop (Supplies Alignment via Fax 10% of Kanban) the time Remove Check in and Reduce Work Batch System Access Balancing Visual Reductions Standard Workplace Voice Work Set-up Continuous Recognition Reduction Flow Prep Complete Transmit Read/Dictate Review Print Send Check-in Patient Exam Images Exam Draft/Sign Reports Reports Patient (Tech) (Tech) (Tech) (Radiologist) (Radiologist) (Imaging) (Imaging) (Imaging) 5 mins. 35 mins. 2 5 20 mins. 2 6 5 mins. 2 7 120 mins. 2 8 420 mins. 2 9 2 mins. 2 10 30 mins. 6 11 3 4 Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 10 mins. Cycle Time = 2 mins. Cycle Time = 15 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins. % C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 95 % % C&A = 99 % % C&A = 90 % 0.0833 hrs. 0.583 hrs. 0.333 hrs. 0.0833 hrs. 2 hrs. 7 hrs. 0.0333 hrs. 0.5 hrs. LT = 11.3 hrs. 1 mins. 10 mins. 10 mins. 2 mins. 15 mins. 1 mins. 1 mins. 3 mins. CT = 43 mins. CT/LT Ratio = 6.32% Rolled First Pass yield = 40% Note: Process Time (PT) is referred to as Cycle  Time (CT) on this map© Karen Martin & Associates, LLC
  56. Value Stream Mapping Process Define Products (good or services) with Product Family common process steps Foundation (the basis) for the  Document Current  future state; 70‐80% accurate is State acceptable (directionally correct) Create flow by eliminating waste  Design Future  it is now obvious from your 3 Day  State current state map); typically 3‐6Repeat Event months out Create  Include accountability and Implementation Plan timeframes for completion Implement! The goal of mapping!
  57. PACE Prioritization Matrix Policy 21 5 10 I.T. 6 15 Easy 13 ProcessEase of Implementation 2 20 14 23 18 17 25 7 9 26 16 1 8 12 22 24 19 27 4 Difficult 11 3 High Low Anticipated Benefit 57
  58. Downloadable Excel Prioritization Chart www.ksmartin.com/the‐outstanding‐organization The Outstanding Organization: Achieving Focus Chart Title Prioritization Chart To use this Template: 1) Enter the title of the chart in Cell B2 Number of Items 5 2) Enter the number of items (e.g. projects, improvement activities, etc.) in cell B4 4 3) Enter the item name and ranking information into A8-D8 and so on. Organizational Degree of Item Name Benefit Execution Ease Urgency* Item 1 9 1 1 Prioritization  Chart Item 2 7 3 2 10 Item 3 5 5 3 Item 4 3 7 4 9 Item 5 1 9 5 8 7 Execution Ease 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 Organizational Benefit * Degree of urgency is indicated by bubble size. 58© Karen Martin & Associates, LLC
  59. Future State Implementation Plan Value Stream Outpatient Imaging Implementation Plan Review Dates Executive Sponsor Allen Ward 11/1/2007 Value Stream Champion Sally McKinsey 11/21/2007 Value Stream Mapping Facilitator Dave Parks 12/13/2007 Date Created 10/18/2007 1/10/2008 Block Implementation Schedule (weeks) Date Goal / Objective Improvement Activity Type Owner # 1 2 3 4 5 6 7 8 9 10 11 12 Complete Implement standard work for referral 2 Improve quality of referral KE Sean ORyan process Reduce lead time beween schedulingand Dianne 3, 4 Cross-train and colocate work teams PROJ preregistration steps Prichard Eliminate the need for two patient check- Michael 5, 6 Collect copays in Imaging KE ins OShea Dianne 6 Eliminate bottleneck in waiting area Balance work / level demand KE Prichard Eliminate lead time associated with 9 Implement voice recognition technology PROJ Sam Parks transcription step 10 Eliminate batched reading Reduce setup required KE Sam Parks Reduce inventory costs, regulatory risk Michael 7 5S CT supplies area; implement kanban KE and storage needs OShea 12 Reduce delay in report delivery Implement additional fax ports PROJ Martha Allen Increase percentage of physicians 12 Reduce delay in report delivery receiving electronic delivery (rather than KE Martha Allen hard copy) Approvals Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator Signature: Signature: Signature: Date: Date: Date:© Karen Martin & Associates, LLC
  60. Where Should We Start?© Karen Martin & Associates, LLC 60
  61. What’s the Problem?© Karen Martin & Associates, LLC 61
  62. Which comes first? A3 or VSM? “We need to  “We have a  MAJOR  problem.” e.g., losing market share A3 VSM improve our  entire value  stream.” e.g., new construction “Let’s look at  “Let’s explore  the entire  value stream.” VSM A3 this problem  in the value  stream.” e.g., to look at overall  product quality and the  e.g., why plans are so far off in  reason(s) for long lead times terms of construction logistics © Karen Martin & Associates, LLC 62
  63. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopexSubscribe: www.ksmartin.com/subscribe 63

×