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.
2. Š 2010 Karen Martin & Associates
Welcome!
īļTo new friends and old across the U.S.
(28 states)
īļTo our global friends in:
ī Canada
ī India
ī Ireland
ī Mexico
ī Portugal
ī Spain
ī Sweden
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4. Š 2010 Karen Martin & Associates
Two Ways to Listen
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OR
5. Š 2010 Karen Martin & Associates
Two Ways to Ask Questions
5
1. Raise your hand â you
will be un-muted and
can ask verbally.
2. Type your question
into the question log.
6. Š 2010 Karen Martin & Associates
Please Provide Feedback as you
Exit the Webinar
6
Click File, then
Exit â End Webinar
7. Š 2010 Karen Martin & Associates
Your Instructor
īļ Early career as a scientist; migrated to
quality & operations design in the mid-80âs.
īļ Launched Karen Martin & Associates in
1993; applied Total Quality Management.
īļ Introduced to Lean in 2000.
īļ Specialize in Lean transformations in non-
manufacturing environments.
īļ Co-author of The Kaizen Event Planner;
co-developer of Metrics-Based Process
Mapping: An Excel-Based Solution.
īļ Instructor in University of California, San
Diegoâs Lean Enterprise program.
7
Karen Martin,
Principal
Karen Martin &
Associates
8. Š 2010 Karen Martin & Associates
Learning Objectives
īļParticipants will learn:
ī What a Value Stream Map is â and what it is not.
ī Best practices for holding a Value Stream Mapping
activity.
ī How to define office & service product families.
ī Step-by-step approach for creating current and future
state maps.
ī Key differences between manufacturing and
office/service VMSs.
ī How to create an implementation plan from the future
state VSM.
8
9. Š 2010 Karen Martin & Associates
Webinar Structure
īļValue Stream MappingâĻ
ī What is it?
ī Why is it needed?
ī Whatâs a value stream map look like?
ī How do I create one?
ī Then what?
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11. Š 2010 Karen Martin & Associates
Womackâs Five Principles of a
Lean Enterprise
īļ Value
īļ Value stream
īļ Flow
īļ Pull
īļ Perfection
11
â Jim Womack, Lean Thinking, 1996, 2003
12. Š 2010 Karen Martin & Associates
Value Stream Defined
Value Stream: All of the activities, required to
fulfill a customer request from order to delivery
(and beyond to cash received).
Customer
12
Value Stream
Process Process
Process
Customer
Request
Customer
Receipt
13. Š 2010 Karen Martin & Associates
The Work We Do:
Degrees of Granularity
13
In the
Weeds
(Tactical)
Rooftop
View
(Strategic)
Metrics-Based
Process Map
Value
Stream
Process Process Process
Step Step Step
Value Stream
Map
14. Š 2010 Karen Martin & Associates 14
Who? Accountability Tool
Leadership âWhat has to happenâ Value Stream
Mapping
Workforce âHow it will happenâ Kaizen Events,
Just-do-its,
and Projects
Improvement Roles
Strategic
Tactical
Middle
Management
15. Š 2010 Karen Martin & Associates
Why Value Stream Mapping?
īļTo set strategy before diving into
tactics.
īļEnables us to SEE the process.
īļPromotes systems thinking /
seeing the whole
ī Helps us avoid sub-optimizing
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16. Š 2010 Karen Martin & Associates
VSM Goal: System Efficiency
16
Individual Efficiency =
Sub-optimization
System Efficiency =
Optimal Value Stream
Performance
17. Š 2010 Karen Martin & Associates
Types of Value Streams
īļProduct Value Streams
ī Goods - manufacturing
ī Services
ī§ Healthcare â ED, inpatient, outpatient
ī§ Financial Services â banking, loans, credit, investments
ī§ Repair and maintenance
ī§ Energy
ī§ Government
ī§ Military
ī§ Professional Services â Accounting, legal, architecture,
engineering, etc.
ī§ Non-Profit services
īļSupport Value Streams
īļValue Stream âSegmentsâ
17
18. Š 2010 Karen Martin & Associates
Types of Value Streams
(continued)
īļ Product Value Streams
īļ Support Value Streams
ī Recruiting and Hiring Process
ī Tech Support
ī Accounts Receivable
ī Payroll
ī Physician credentialing
ī Billing
īļ Value Stream âSegmentsâ
ī Order fulfillment
ī Product development
ī New account set-up
ī Laboratory services
ī Imaging services
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19. Š 2010 Karen Martin & Associates
Why Value Stream Mapping?
(continued)
īļShows the linkage between
information and material flow.
īļMakes the disconnects and
obstacles to flow visible at a
macro level
īļMetrics-based decision making:
What are you going to do to
affect the numbers?
19
20. Š 2010 Karen Martin & Associates
Key Metrics: Time
īļProcess time (PT)
ī The time it takes to actually perform the work, if one is
able to work on it uninterrupted
ī Includes task-specific doing, talking, and thinking
ī aka âtouch time,â work time, cycle time
īļLead time (LT)
ī The elapsed time from the time work is made available
until itâs completed and passed on to the next person or
department in the chain
ī aka throughput time, turnaround time, elapsed time
ī Includes Process Time, not merely waiting time.
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21. Š 2010 Karen Martin & Associates
Lead Time vs. Process Time
Scenario 1
21
Lead Time
Work
Received
Work passed
to next step
Process Time
LT = PT + Waiting / Delays
22. Š 2010 Karen Martin & Associates
Lead Time vs. Process Time
Scenario 2
22
Lead Time
Work
Received
Work passed
to next step
Process Time
LT = PT + Waiting / Delays
23. Š 2010 Karen Martin & Associates
Summary Metrics: Time
īļ% Activity (also referred to as Activity Ratio)
ī The percentage of time anything is being done
to the work passing through the system
(whether value-adding or non-value-adding)
ī %Act = (âPT Ãˇ âLT) à 100
ī 100 â %Activity = % Time Work is Idle
ī Common finding = 1-10%
ī Could also calculate %VA Activity to show how
little time is spent on value-adding activities.
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24. Š 2010 Karen Martin & Associates
Key Metrics: Quality
īļ%Complete and Accurate (%C&A)
ī The percentage of input thatâs deemed âusable as isâ
by the person doing the work
ī % of incoming work where the downstream customer
can perform task without having to âCACâ:
ī§ Correct information or material that was supplied
ī§ Add information that should have been supplied
ī§ Clarify information that should have or could have been
clearer
ī Measured by the immediate downstream customer
and all subsequent downstream customers.
ī Similar to first pass yield in manufacturing.
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25. Š 2010 Karen Martin & Associates
Summary Metrics: Quality
īļRolled First Pass Yield (RFPY)
ī The percent of value stream output that passes
through the process âclean,â with no âhiccups,â
no rework required.
ī RFPY = %C&A x %C&A x %C&AâĻ
ī Common finding = 0-15%
ī Multiply ALL %C&Aâs, even if parallel processes
25
26. Current State Value Stream Map
Purchasing â 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 â Non-repetitive purchases less than $5,000
28. Š 2010 Karen Martin & Associates
Metric
Current
State
Projected
Future State
%
Improvement
Lead Time 28.4 days 12.3 days 56.7%
Process Time 65 mins 30 mins 53.8%
% Activity 0.48% 0.51% 6.3%
Rolled First
Pass Yield
4.2% 71.0% 1,590%
# Handoffs 10 5 50%
# IT Systems 6 3 50%
Freed capacity 2.1 FTEs 10%
Purchasing Process
Projected Results
29. Š 2010 Karen Martin & Associates
Summary Metrics: Measuring
Productivity Gains
īļLabor Effort
29
Total PT (in hrs) X # occurrences/year
# FTEs
Available work hrs/year/employee
=
Freed
Capacity
= Current State FTEs â Future State FTEs
Note: Improvement can be expressed as Freed
Capacity (FTEs), Time, or Labor Expense (or all)
# FTEs = Full Time Equivalents; 2 half-time people = 1 FTE
30. Š 2010 Karen Martin & Associates
What do you do with freed capacity?
īļ Absorb additional work without increasing staff
īļ Reduce payroll through natural attrition
īļ Innovate â create new revenue streams
īļ Conduct ongoing continuous improvement activities
īļ Do a better job with fewer errors and higher safety
īļ Talk and work with your customers and suppliers
īļ Mentor staff to create career growth opportunities
īļ Provide additional workforce development; cross-train
īļ Better work/life balance
īļ Slow down & think
īļ Get/stay caught up
īļ Do the things you havenât been able to get to
īļ Collaborate with other areas
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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
36. Š 2010 Karen Martin & Associates
Outpatient Imaging
Projected Results
36
Metric
Current
State
Projected
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
Pass Yield
29% 40% 38%
# Macro Steps 14 11 21%
Tech turnover
(annual)
100% 25% 75%
Note: Freed capacity (PT reductions) allowed the organization to earn
$500,000 additional annual revenue with no additional headcount
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
38. Š 2010 Karen Martin & Associates
Value Stream Mapping
Planning Your Activity
38
39. Š 2010 Karen Martin & Associates
Value Stream Mapping Activity
īļTeam-based
īļHeavily weighted with those who can authorize an
innovative future state.
ī Typically manager and above
ī The team goes to the gemba to obtain the metrics from
those doing the work.
īļThree day activity; three deliverables.
īļLeadership learning is a significant side benefit.
īļKey success factor - interim briefings to
communicate and achieve consensus.
39
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
41. Š 2010 Karen Martin & Associates
Scoping: One VSM per âProduct Familyâ
Process Steps & Equipment
Step A Step B Step C Step D Step E Step F
Products
Product
ABC X X X X X
Product
XYZ X X X X X
Product
IBM X X X
Product
AWR X X X X
Product
ACC X X X
Product
SUB X X X
Product
IDR X X X X X X 41
Group Product Families by similar downstream processes, steps or equipment.
Vol.
50
73
2
5
15
12
1
42. Š 2010 Karen Martin & Associates
Narrowing the Scope:
Selected Specific Conditions
42
Hiring
Process
Replacements
New
Positions
Exempt
Staff
Non-Exempt
Staff
Exempt
Staff
Non-Exempt
Staff
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
45. Š 2010 Karen Martin & Associates 45
The VSM Event
īļ3 days
īļSequestered team composed primarily of those
who can authorize change
īļSchedule
ī Day 1 â Document and analyze the current state
ī§ Go to the Gemba!
ī Day 2 â Design the future state (3-6 months out)
ī Day 3 â Create the implementation plan
īļInterim briefings (preferably daily) to non-team
leadership
46. Š 2010 Karen Martin & Associates 46
Interim Briefings
īļDay 1 â hereâs what weâve learned
ī Establishes a mental framework for embracing
improvements; âsellsâ the need for improvement
īļDay 2 â hereâs what we plan to do
ī Does anyone object? If so, why?
ī Challenge policies
īļDay 3 â hereâs how weâre going to execute
ī Priorities, approach, timeframes, accountability
ī Obtain final buy-in right then and there
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
48. Š 2010 Karen Martin & Associates
The timeline is the most important of the
three defining characteristics of a
VSM:
1) information flow
2) product flow
3) timeline
If your map doesnât include a timeline, it
is not a VSM. If your map has swim
lanes, itâs not a VSM.
48
49. Š 2010 Karen Martin & Associates
Concurrent Work / Parallel Flows
49
LT = 8 hrs
Process
LT = 4 hrs
Process Process Process
Process
Bring longest lead time to the timeline,
unless itâs a âdead end step.â
50. Š 2010 Karen Martin & Associates
Step 1
īļLabel your map
ī Value stream name
ī Current or future state
ī Customer demand (volume of work per time
period)
ī Takt time (if relevant)
ī Date
ī Facilitatorâs name (and/or team)
50
51. Š 2010 Karen Martin & Associates
Takt Time:
The Key to Continuous Flow
51
Available work time
Takt time =
Customer demand
480 minutes/day
Takt time = = 10.6 mins
45 new accounts
ORâĻ
Time Available divided by what Kustomer Takes
âTouch downâ
52. Š 2010 Karen Martin & Associates
Step 2
īļ Identify all blocks in the process (target 5-15 blocks)
ī Customer icon is placed in upper right or middle
ī§ Upper right if supplier exists (supplier is placed in upper left)
ī§ Middle position if a separate supplier doesnât exist
ī Supplier (if relevant) is placed in upper left
ī Each block (post-it) contains an activity or group of activities that
occurs before a break in the timeline occurs - typically a handoff to
another function/work team.
ī Activity format is verb/noun â what happens to what
ī Include the function who performs the task
ī Include number of workers who perform the task
ī Include any obstacles to flow â batches, shared/inaccessible
resources, system downtime, etc.
ī Consider walking the process
52
54. Š 2010 Karen Martin & Associates
Step 3
īļIdentify all I.T. systems used in the
process and information flow
ī For most VSMs, these are placed above the
process blocks
ī In very complicated VSMs with two rows of
process blocks, I.T. systems can be placed
between the rows, if necessary.
ī Note any scheduling that occurs (rare in
current state)
ī Who tells whom to do what?
54
55. Current State Value Stream Map
Purchasing â 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.
56. Š 2010 Karen Martin & Associates
Step 4
īļNumber the process blocks from left to
right.
ī If parallel processes exist, use alpha modifiers
â e.g. 8A, 8B, etc.
īļConnect the customer, supplier (if present)
and process blocks
ī âStripedâ arrow for push systems
ī Hollow arrow for material flow
īļConnect and I.T. systems
56
57. Post-it Conventions
# Staff
(if relevant)
Barriers to flow
PT (process time)
LT (Lead time)
% Complete &
Accurate
Process
(Verb/Noun)
Function
Process Block #
58. Depicting e-Information Flow
58
Process
Block
I.T.
Application
Arrow pointing to
I.T. application:
Staff enters data
Process
Block
I.T.
Application
Arrow pointing from
I.T. application:
Staff views data
Process
Block
I.T.
Application
Two-headed arrow:
Staff both views and
enters data
#1 I.T.
Application
#2 I.T.
Application
Lightning bolt arrow:
Application #1 auto-populates
application #2
59. Current State Value Stream Map
Purchasing â 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.
Material
flow
ERP auto-
populates
P.O.
Push
Arrow
60. Š 2010 Karen Martin & Associates
Step 5
īļAdd key metrics for all process blocks
ī Process Time (PT)
ī Lead Time (LT)
ī Percent Complete & Accurate (%C&A)
īļAdd additional obstacles to flow if any are
identified (e.g. batches, shared resources
system availability/speed, etc.)
īļAdd the WIP (work-in-process) for all
process blocks.
60
61. Post-it Conventions
# Staff
(if relevant)
Barriers to flow
PT (process time)
LT (Lead time)
% Complete &
Accurate
Process
(Verb/Noun)
Function
Process Block #
62. Š 2010 Karen Martin & Associates
Three Places WIP Accumulates
īļBefore the process block â work not yet begun.
īļWithin the process block â work currently being
performed.
īļAfter the process block â Work thatâs complete,
but hasnât been passed on
62
Step 1 Step 2 Step 3
WIP
WIP WIP
63. Current State Value Stream Map
Purchasing â 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.
WIP
64. Š 2010 Karen Martin & Associates
Step 6
īļCreate timeline & calculate summary
metrics
ī Timeline PT Sum
ī Timeline LT Sum
ī % Activity Ratio (AR)
ī Rolled First Pass Yield (RFPY)
64
65. Š 2010 Karen Martin & Associates 65
Process 2
PT
LT LT
Process 1
PT
Office/Service Lead Time â
âĸ From the time work is made available until itâs been completed AND passed on
to the next person/work group/department in the process.
âĸ Placed on the peak of the timeline to the left of the process block it refers to.
âĸ Represents total throughput time, including process time; not merely wait time.
How to Treat Lead Time in
Office/Service Environments
Lead Time
Process Time
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
67. Š 2010 Karen Martin & Associates
Typical Current State Findings
Islands of activity (process times) within long lead times.
67
Value Add
Necessary
NVA
Available
to work on
Available to
next step
Unnecessary
NVA
68. Š 2010 Karen Martin & Associates
Step 7
īļIdentify all value-adding (VA) and necessary
non-value-adding (N) steps
ī Add âVAâ or âNâ smaller post-it to relevant process
blocks
ī All unnecessary non-value-adding blocks remain
unlabelled
68
Enter
Order
Check
Credit
Approve
Order
Customer Rep Sales Rep
Finance
VA N
Value-adding
Unnecessary
Non-Value-Adding
Necessary
Non-Value-Adding
69. Š 2010 Karen Martin & Associates
Customer-Defined Value
īļValue-Adding (VA) - any operation or
activity your external customers value
and are (or would be) willing to pay for.
īļNon-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.
ī Necessary â support processes, regulatory
requirements, etc.
ī Unnecessary â everything else - WASTE
69
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
72. Š 2010 Karen Martin & Associates
Designing the Future State Value
Stream
72
Target All Waste!
74. Š 2010 Karen Martin & Associates
Future State Design
īļGoal: Removing all obstacles to flow (âthe
thingâ should never stop)
ī Batches
ī Rework
ī WIP / Bottlenecks
ī Handoffs
ī Setup / changeover
ī Physical layout
ī Motion & transportation
74
75. Š 2010 Karen Martin & Associates
Eight Questions for
Future State VSM
1. What are the customer requirements? Whatâs the takt
time?
2. With goods, will we produce to order or to finished
goods inventory? (With services, youâre 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
76. Future State Design Considerations
īļ Eliminate steps / handoffs
īļ Combine steps
īļ Create parallel paths
īļ Alter task sequencing
and/or timing
īļ Implement pull
īļ Reduce / eliminate batches
īļ Improve quality
īļ Create an organized, visual
workplace
īļ Reduce changeover
īļ Eliminate motion &
transportation
īļ Standardize work
īļ Eliminate unnecessary
approvals /
authorizations
īļ Stop performing non-
value adding (NVA)
tasks
īļ Co-locate functions
based on flow; create
cells (teams of cross-
functional staff)
īļ Balance work to meet
takt time requirements
76
77. Š 2010 Karen Martin & Associates
The Right Process
īļStandardize work
īļMistake proof work
īļMake problems visual
īļFix problems immediately
īļCreate continuous flow
īļLevel demand
īļBalance work
īļCreate pull systems
77
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
85. Š 2010 Karen Martin & Associates
VSM Software
īļiGrafx FlowCharter â my favorite
īļMinitab
īļe-VSM
īļSystems2Win â Excel-based
85
86. Š 2010 Karen Martin & Associates
Common VSM Facilitation Issues
īļKeeping the team focused on the macro view
(rooftop level); itâs tempting to go into the weeds
īļKeeping the team focused on the current state
īļAssuring the team and leadership that
directionally correct data is good enough
īļTime management
ī Schedule Gemba time and conference room time
very tightly
īļGetting the right people on the team
īļGetting the right people at the interim briefings
87. Š 2010 Karen Martin & Associates
Value Stream Mapping Facilitator
Range of Necessary Traits
īļ Skills / Knowledge
ī Improvement tools (root cause analysis, flow-enhancing tools, etc.)
ī Project & time management
ī Mediation; consensus building
ī People effectiveness â from front line workers to execs
īļ Authority / Respect
ī Designated change agent / influence leader
ī Trustworthy
ī Comfortable removing obstacles & reaching out to senior leadership
īļ Personality / Energy
ī Naturally curious
ī Challenging, yet supportive
ī Positive, upbeat, energetic
ī Pushy without irritating
īļ Objectivity / Fairness
ī No attachment to the work being improved
87
88. Common Differences - Manufacturing vs. Office VSMs
Manufacturing Office
Customer icon Upper right Center
Supplier icon Upper left None
âThe thingâ weâre
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
89. Š 2010 Karen Martin & Associates
Learning Objectives
īļParticipants will learn:
ī What a Value Stream Map is â and what it is not.
ī Best practices for holding a Value Stream Mapping
activity.
ī How to define office & service product families.
ī Step-by-step approach for creating current and future
state maps.
ī Key differences between manufacturing and
office/service VMSs.
ī How to create an implementation plan from the future
state VSM.
89
90. Š 2010 Karen Martin & Associates
Resources to Learn About
Metrics-Based Process Mapping
īļThe Kaizen Event Planner: Achieving
Rapid Improvement in Office, Service, and
Technical Environments (Chapter 12)
īļMetrics-Based Process Mapping: An
Excel-Based Solution
īļWebinar on work standardization â
Tuesday, August 10.
90
91. Š 2010 Karen Martin & Associates
Your Questions
īļ Level of leadership involvement needed (Ram)
īļ Software programs (Arnoldo)
īļ How to VSM in hospitals (many), laboratory settings
(Lynn & Linda), state governments (Cindy), construction
(Marc) and office areas in manufacturing (many).
īļ How to create linear VSMs in a world of âswim laneâ
processes (David).
īļ How to begin VSMâing (been doing Lean but never
VSMâd) (Bonnie)
īļ How to and when to VSM (Carlos).
īļ Who decides what âvalueâ is in the process (Helen).
91
92. Š 2010 Karen Martin & Associates
Your Questions (continued)
īļ Difference between VSM and other process mapping
techniques â advantages & disadvantages (Kathryn).
īļ How non-manufacturing environments benefit from
VSMs. (Manuel)
īļ How to use the VSM as a communication tool (Landy)
īļ How to enact VSM without 5S (Sheila).
īļ How to VSM capital program planning (Robert) and lab
billing department (Linda).
īļ How to define product families (Mike).
īļ How to roll out the technique to the business (Glenda).
92
93. Š 2010 Karen Martin & Associates 93
Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
For Further Questions