This document summarizes a webinar on applying value stream mapping in non-manufacturing environments. The webinar covered what value stream mapping is, how to create current and future state maps, and how to develop an implementation plan from the future state map. Key components of value stream maps like process time, lead time, quality metrics, and productivity gains were also explained. The webinar aimed to teach participants how to map office and service processes and identify opportunities to reduce waste and improve flow.
26. Current State Value Stream Map
Purchasing — Non-repetitive purchases less than $5,000
Supplies Purchasing - Current State VSM
Finance
Review
Budget
PT = 5 mins.
C&A = 60%
6
Corp Purchasing
Manager
Approve in
ERP
PT = 5 mins.
C&A = 90%
1
0.25 days
5 mins.
0.5 days
5 mins.
5 days
5 mins.
1 days
5 mins.
1 days
10 mins.
0.5 days
15 mins.
3 days
5 mins.
7 days
15 mins.
10 days LT = 28.4 days
PT = 65 mins.
AR = 0.477%
Supervisor
Review Req.
PT = 5 mins.
C&A = 95%
2
Sys Engineer
Review
Requisition
PT = 5 mins.
C&A = 90%
1
IS Manager
Review
Requisition
PT = 5 mins.
C&A = 100%
1
Financial Mgr
Review
Requisition
PT = 10 mins.
C&A = 95%
1
Admin Asst
Enter
Requisition
PT = 15 mins.
C&A = 98%
1
4 hrs. 40 hrs. 8 hrs. 8 hrs. 24 hrs. 56 hrs.
Originator
Inititate Req.
PT = 10 mins.
C&A = 10%
31
2 hrs.
Form File File Maker ERP
Quicken
Vendor
Website
Excel
4 hrs.
Customer Demand:
615 requisitions per y ear
20 Reqs
External
Supplier
PT = 20 mins.
Hard Copy
Supplies
Data Entry
Corp Purchasing
Submit PO
to Supplier
PT = 15 mins.
C&A = 98%
6
10 Reqs 63 Reqs
1
2 3 4 5 6 7 8 9 10
RFPY = 4.2%
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activ ity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield
80 hrs.
27. Supplies Purchasing - Future State VSM
Customer Demand:
615 requistions per year
Dept.
Manager
Approve
in ERP
PT=5 mins.
C&A = 90%
1
0.5 days
5 mins.
0.75 days
5 mins.
1 days
20 mins.
10 days LT = 12.3 days
PT = 30 mins.
AR = 0.508%
Supervisor
Review
Req.
PT=5 mins.
C&A = 95%
2
8 hrs.
Originator
Enter Req.
in ERP
PT=30 mins.
C&A = 85%
31
File Maker ERP
Vendor
Websites
6 hrs.
Standard
Workfor
review
Additional
IT access
Requisition
Checklist
Cross
Training
Additional
IT access
External
Supplier
PT=20 mins.
Supplies
4 hrs.
Auto Notify
Integrate Form
File with File
Maker
Use budget in place
of Quicken
Dedicated
Buyers
Corp Purchasing
Place
Order
PT=20 mins.
C&A = 98%
6
Approval
1
2 3 4 5
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield
RFPY = 71%
80 hrs.
Future State Value Stream Map
Purchasing — Non-repetitive purchases less than $5,000
31. Key VSM Components
Process 1 Process 2 Process 3 Process 4
SUPPLIER CUSTOMER
Production
Control
Information
Flow
Product
Flow
Minutes Minutes Minutes Minutes
Hours Hours Hours
Timeline
1
2
3
I I I
LT
PT
Order Initiation
Current State Map
Demand = XXXX
May 8, 2008
Robert Parker
Hours
32. Key VSM Components -
Office / Service
Process 3 Process 4
CUSTOMER
Information
Flow
Product
Flow
Minutes Minutes Minutes Minutes
Hours Hours Hours
Timeline
1
2
3
LT
PT
ABC Value Stream
Current State Map
Demand = XXXX/yr
Date
Key Contact
I.T. I.T. I.T.
Process 1 Process 2
33. Basic Mapping Icons
Push Arrow
Electronic
Information
Flow
Manual
Information Flow
Operator / Employee
Material receipts
& shipments
Go See Scheduling
External
Organization
Process Block
2 Shifts
Takt= 60m
C/O= 40 m
PT= 25 m
Data Block
Movement
by Truck
In-box
Minutes Minutes
Minutes
Minutes
Hours Hours
Hours
Lead Time
Process Time
Timeline
Work-in-Process
I
34. Current State Value Stream Map
Outpatient Imaging Services
VSM Champion: Paul Scanner
Created: July 17, 2007
Demand = 15 per day
Customer Demand:
15patients perDay
(Takt Time1920seconds)
8 hours per day
Referring
Physician
% C&A = 65 %
Check-in
Patient
(Admitting)
Cycle Time = 2 mins.
% C&A = 90 %
5
Send
Reports
(Imaging)
Cycle Time = 3 mins.
% C&A = 90 %
6
Hospital
5 mins.
Schedule
Appointment
Cycle Time = 11 mins.
Lead Time = 12 mins.
% C&A = 98 %
6
Pre-register
Patient
Cycle Time = 30 mins.
Lead Time = 990 mins.
% C&A = 100 %
5
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
0.0833 hrs.
2 mins.
0.0833 hrs.
1 mins.
0.75 hrs.
10 mins.
0.5 hrs.
15 mins.
0.0833 hrs.
3 mins.
4.13 hrs.
15 mins.
6.08 hrs.
5 mins.
16 hrs.
1 mins.
1.83 hrs.
1 mins.
2 hrs.
3 mins.
LT = 32.5 hrs.
CT = 56 mins.
CT/LT Ratio = 2.87%
Lead Time = 12 mins.
Lead Time = 990 mins.
Prep
Patient
(Tech)
Cycle Time = 10 mins.
% C&A = 100 %
2
Check-in
Patient
(Imaging)
Cycle Time = 1 mins.
% C&A = 98 %
3
Complete
Exam
(Tech)
Cycle Time = 15 mins.
% C&A = 90 %
2
Transmit
Images
(Tech)
Cycle Time = 3 mins.
% C&A = 100 %
2
Read/Dictate
Exam
(Radiologist)
Cycle Time = 15 mins.
% C&A = 95 %
2
Transcribe
Report
(MDI)
Cycle Time = 5 mins.
% C&A = 75 %
6
Review
Draft/Sign
(Radiologist)
Cycle Time = 1 mins.
% C&A = 95 %
2
Print
Reports
(Imaging)
Cycle Time = 1 mins.
% C&A = 99 %
2
30 mins. 5 mins. 248 mins. 365 mins. 960 mins. 110 mins. 120 mins.
45 mins.
E Pay Excel ADS
Symposium Internet
Waiting Room
Management
System
Fax Order
Solutions
PACS
5 mins.
Lead Time = 24 days
Meditech
1
2
3
4
5 6 7 8 9 10 11 12 13 14
Auto Fax 50%
Us Mail 25%
MD Mailbox 25%
Rework Loop
via Fax 25% of
the time
Rolled First Pass
yield = 29%
35. Future State Value Stream Map
Outpatient Imaging Services
VSM Champion: Paul Scanner
Created: July 18, 2007
Demand = 15 per day
Referring
Physician
% C&A = 85 %
Send
Reports
(Imaging)
Cycle Time = 3 mins.
% C&A = 90 %
6
Hospital
Schedule appt
Pre-register
Cycle Time = 11 mins.
Lead Time = 45 mins.
% C&A = 98 %
6
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
0.0833 hrs.
1 mins.
0.583 hrs.
10 mins.
0.333 hrs.
10 mins.
0.0833 hrs.
2 mins.
2 hrs.
15 mins.
7 hrs.
1 mins.
0.0333 hrs.
1 mins.
0.5 hrs.
3 mins.
LT = 11.3 hrs.
CT = 43 mins.
CT/LT Ratio = 6.32%
Lead Time = 45 mins.
Lead Time = 15 days
Prep
Patient
(Tech)
Cycle Time = 10 mins.
% C&A = 100 %
2
Check-in
Patient
(Imaging)
Cycle Time = 1 mins.
% C&A = 98 %
3
Complete
Exam
(Tech)
Cycle Time = 10 mins.
% C&A = 90 %
2
Transmit
Images
(Tech)
Cycle Time = 2 mins.
% C&A = 100 %
2
Read/Dictate
Exam
(Radiologist)
Cycle Time = 15 mins.
% C&A = 95 %
2
Review
Draft/Sign
(Radiologist)
Cycle Time = 1 mins.
% C&A = 95 %
2
Print
Reports
(Imaging)
Cycle Time = 1 mins.
% C&A = 99 %
2
20 mins. 5 mins. 120 mins. 420 mins. 2 mins. 30 mins.
35 mins.
E Pay Excel
Symposium Internet
Waiting Room
Management
System
Fax Order
Solutions
PACS
5 mins.
Set-up
Reduction
Remove
Check in
and Reduce
System Access
Work
Balancing
Standard
Work
Pull System
(Supplies
Kanban)
Visual
Workplace Voice
Recognition
Batch
Reductions
5S
Co-locate
Standard
Work
Work
Balance
Continuous
Flow
Value Stream
Alignment
Auto Fax 80%
Us Mail 15%
MD Mailbox 5%
Rolled First Pass
yield = 40%
Rework Loop
via Fax 10% of
the time
Customer Demand:
15 patients perDay
(Takt Time1920 seconds)
8 hours per day
1
2
3
4
5 6 7 8 9 10 11
Risk
Reduction
(Joint
Commision)
Meditech
37. Value Stream Mapping Process
Define
Product Family
Design Future
State
Document Current
State
Implement!
3 Day
Event
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Products (good or services) with
common process steps
Repeat
The goal of mapping!
Create
Implementation Plan
Include accountability and
timeframes for completion
40. 40
Briefing(s)
Date & Time
1 Contact Information
2 1
3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1 Contact Information
2 1
3 2
4 3
5 4
1
2
3
4 Date: Date:
Signature: Signature:
Name
Facilitator
Meals
Provided?
Location
Value Stream
Champion
Event Date(s)
Logistics
Coordinator
Executive
Sponsor
Specific
Conditions
Value Stream
Customer Demand
Last Step
First Step
Value Stream Mapping Charter
Event Scope Leadership / Coordination Schedule
Start/End
Times
Takt Time
Event Drivers / Current State Issues Mapping Team
Gemba Walk
Date & Time
Required Briefing
Attendees
Boundaries &
Limitations
FS Implementation
Timeframe
Function
Event Goals & Measurable Objectives
Projected Deliverables On-Call Support
Implementation Plan
Current State Value Stream Map Function
Future State Value Stream Map
Approvals
Name
Facilitator
Value Stream Champion
Potential Obstacles to Event Success
Signature:
Date:
Executive Sponsor
43. Narrowing the Scope:
Selecting Specific Conditions
43
Order
Fulfillment
Process
International
Domestic
Service Parts
Consumables
Units
Non-
Warranty
Warranty
Service Parts
Consumables
Units
Non-
Warranty
Warranty
44. Value Stream Mapping Process
Define
Product Family
Design Future
State
Document Current
State
Implement!
3 Day
Event
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Products (good or services) with
common process steps
Repeat
The goal of mapping!
Create
Implementation Plan
Include accountability and
timeframes for completion
47. Value Stream Mapping Process
Define
Product Family
Design Future
State
Document Current
State
Implement!
3 Day
Event
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Products (good or services) with
common process steps
Repeat
The goal of mapping!
Create
Implementation Plan
Include accountability and
timeframes for completion
66. Value Stream Mapping
Projected Results
66
Metric Current State
Projected
Future State
Projected %
Improvement
Lead Time
Process Time
% Activity
Rolled First
Pass Yield
Labor Effort
Others, as
relevant
71. Value Stream Mapping Process
Define
Product Family
Design Future
State
Document Current
State
Implement!
3 Day
Event
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Products (good or services) with
common process steps
Repeat
The goal of mapping!
Create
Implementation Plan
Include accountability and
timeframes for completion
81. Value Stream Mapping
Projected Results
81
Metric Current State
Projected
Future State
Projected %
Improvement
Lead Time
Process Time
% Activity
Rolled First
Pass Yield
Labor Effort
82. Value Stream Mapping Process
Define
Product Family
Design Future
State
Document Current
State
Implement!
3 Day
Event
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Products (good or services) with
common process steps
Repeat
The goal of mapping!
Create
Implementation Plan
Include accountability and
timeframes for completion
83. Value Stream
1 2 3 4 5 6 7 8 9 10 11 12
2 Improve quality of referral KE Sean O'Ryan
3, 4
Reduce lead time beween schedulingand
preregistration steps
PROJ
Dianne
Prichard
5, 6
Eliminate the need for two patient check-
ins
KE
Michael
O'Shea
6 Eliminate bottleneck in waiting area KE
Dianne
Prichard
9
Eliminate lead time associated with
transcription step
PROJ Sam Parks
10 Eliminate batched reading KE Sam Parks
7
Reduce inventory costs, regulatory risk
and storage needs
KE
Michael
O'Shea
12 Reduce delay in report delivery PROJ Martha Allen
12 Reduce delay in report delivery KE Martha Allen
Implement voice recognition technology
Reduce setup required
Cross-train and colocate work teams
Implement additional fax ports
Collect copays in Imaging
Balance work / level demand
5S CT supplies area; implement kanban
Value Stream Mapping Facilitator
Increase percentage of physicians
receiving electronic delivery (rather than
hard copy)
Approvals
Executive Sponsor Value Stream Champion
Signature:
Date: Date: Date:
Signature: Signature:
Block
#
Goal / Objective Improvement Activity
Implement standard work for referral
process
Type Owner
Implementation Schedule (weeks) Date
Complete
Date Created
11/21/2007
Allen Ward
Sally McKinsey
Dave Parks 12/13/2007
10/18/2007 1/10/2008
Future State Implementation Plan
Executive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Implementation Plan Review Dates
11/1/2007
Outpatient Imaging
88. Common Differences - Manufacturing vs. Office VSMs
Manufacturing Office
Customer icon Upper right Center
Supplier icon Upper left None
“The thing” we’re
following
Raw material, sub-
assemblies, finished goods
Paper, verbal, and
electronic Information
Information Flow
More structured /
formalized I.T. systems
Multiple I.T. systems and
work-arounds
Schedule notification Multiple points across VSM Work not scheduled
Material flow (via
hollow arrow)
Yes Sometimes
WIP icon Inventory triangle In-bin (if preferred)
Quality Metric First Pass Yield (FPY)
Percent Complete &
Accurate (%C&A)
Takt Time Typically can be applied
Only applicable with
dedicated resources
LT determination for
each block
Based on WIP between
process blocks
Based on a single item
passing through