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Get Lean - Value Stream
Mapping for Office and Service

    Karen Martin                   Kim Scott
    President                      iGrafx Senior Consultant,
    The Karen Martin Group, Inc.   Lean Six Sigma Black Belt
What will you learn?


 Value Stream Mapping helps you
understand and improve your Office
      and Service processes.


 Digitalizing VSMs is easy and makes
            sharing a snap.
Introducing Karen Martin

•    Founder: The Karen Martin Group, Inc. (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:




        Winner - 2013
    Shingo Research Prize
Introducing Karen Martin




www.ksmartin.com/subscribe
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
                                                                            5
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


                                                                     6
The Work We Do:
                      Degrees of Granularity

 Macro View
    Strategic;                        Value     Value Stream
heavy leadership                                    Map
  involvement                         Stream


                            Process   Process    Process



 Micro View                                     Metrics-Based
Tactical; heavy    Step       Step      Step    Process Map
   frontline
 involvement



                                                                7
Office/Service Value Stream Examples:
                   By Industry

•   Repair/maintenance – Customer request to revenue received
•   Financial services – Mortgage application
•   Law – Litigation value stream
•   Healthcare – Patient care; revenue cycle
•   Technology – Software development
•   Government – Permitting
•   Construction – Large equipment installation
•   Law enforcement – Arrest processing
•   Engineering/architecture – Design development
•   Oil & Gas – Fossil fuel exploration & production

                                                                8
Support (Value-enabling) Value Streams

•   Estimating / RFQ response
•   Hiring – Recruitment to 1st (or 90th) day
•   New product development
•   Business plan development
•   Annual sales meeting planning & execution
•   Contract development & execution
•   And more…




                                                9
Value Stream Mapping Benefit:
      Seeing the Whole




     60,000 foot view; Rooftop view

                                      10
VSM Promotes Systems Thinking




 System Efficiency =
Optimal Value Stream
    Performance



                   Individual Efficiency =
                     Sub-optimization




                                             11
Truth                           How are we
                             really performing?
    Truth
           Truth
                 Truth
      CLARITY          Truth
                           Truth
  What’s our customer           Truth
  really experiencing?                 Truth
                                             Truth   12
Value Stream Mapping:
As Much Art as Science




                         13
Create a Value Stream “Storyboard” with
     Paper & Post-Its (Team-Based)




                                          14
Basic Value Stream Map
                                                                  ABC Technology, Inc.
                                                              Current State Value Stream Map
                                                             Softw are Upgrade Order Fulfillment
                                                               Customer Demand = 500/year




                                                                        Custom er




Information
    Flow                                    IT-1                                                        IT-2




                              1                       2                               3                            4                   5
               Process 1               Process 2                        Process 3                   Process 4           Process 5

                                  `

Material &
                   Dept A                  Dept B                           Dept C                      Dept D             Dept E
Data Flow
               5                      2                   45 pcs        3                 10 pcs    2                  4
              LT = 1 days             LT = 0.5 days                    LT = 2 days                 LT = 0.5 days       LT = 1 days
              PT = 10 mins.           PT = 5 mins.                     PT = 3 mins.                PT = 5 mins.        PT = 15 mins.
              %C&A = 99%              %C&A = 75%                       %C&A = 99%                  %C&A = 99%          %C&A = 95%



 Timeline       480 mins.                 240 mins.                         2 days                   240 mins.           480 mins.         Total LT = 5 days
                   10 mins.                5 mins.                          3 mins.                     5 mins.            15 mins.        Total PT = 38 mins.
                                                                                                                                           Activity Ratio = 1.6%
                                                                                                                                           Rolled %C&A = 69.1%
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 you're 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                                    Times
Customer 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 team's success with the mapping activity.                           Executive Sponsor                     Value Stream Champion                 Facilitator
 2
 3                                                                     Signature:                                  Signature:                    Signature:
 4                                                                     Date:                                       Date:                         Date:

                                                                                                                                                                                   16
Value Stream Mapping Process
              Define
          Product Family



            Document
           Current State



             Design
           Future State       3 Day
                              Event


              Create
        Transformation Plan



            Execute!
The Office Version of Product Families

                                 Units

               Domestic       Consumables
                                               Warranty
                              Service Parts
                                              Non-Warranty
  Order
Fulfillment
 Process
                                 Units

              International   Consumables
                                               Warranty
                              Service Parts
                                              Non-Warranty
Value Stream Mapping Process
              Define
          Product Family



            Document
           Current State



             Design
           Future State       3 Day
                              Event


              Create
        Transformation Plan



            Execute!
Step 1 – Define Process Blocks

• Identify all process blocks in the value stream
  (target 5-15 blocks)
  – Each process 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 to another function)
  – Activity format is verb/noun – what happens to what
  – WALK THE VALUE STREAM!




                                                              20
Value Stream Mapping Components
                                                      ABC Technology, Inc.
                                                  Current State Value Stream Map
                                                 Softw are Upgrade Order Fulfillment
                                                   Customer Demand = 500/year




                                                            Custom er




                                IT-1                                                        IT-2




                  1                       2                               3                            4                   5
   Process 1               Process 2                        Process 3                   Process 4           Process 5

                      `


       Dept A                  Dept B                           Dept C                      Dept D             Dept E

   5                      2                   45 pcs        3                 10 pcs    2                  4
  LT = 1 days             LT = 0.5 days                    LT = 2 days                 LT = 0.5 days       LT = 1 days
  PT = 10 mins.           PT = 5 mins.                     PT = 3 mins.                PT = 5 mins.        PT = 15 mins.
  %C&A = 99%              %C&A = 75%                       %C&A = 99%                  %C&A = 99%          %C&A = 95%



    480 mins.                 240 mins.                         2 days                   240 mins.           480 mins.         Total LT = 5 days
       10 mins.                5 mins.                          3 mins.                     5 mins.            15 mins.        Total PT = 38 mins.
                                                                                                                               Activity Ratio = 1.6%
                                                                                                                               Rolled %C&A = 69.1%
Step 2 – Define I.T. Systems

• Identify all I.T. systems used in the process
  and information flow
  – Note any scheduling that occurs (calendar,
    system, etc.)
  – Who tells whom to do what? How do they tell
    them?




                                                  22
Value Stream Mapping Components
                                                     ABC Technology, Inc.
                                                 Current State Value Stream Map
                                                Softw are Upgrade Order Fulfillment
                                                  Customer Demand = 500/year




                                                           Custom er




                               IT-1                                                        IT-2




                 1                       2                               3                            4                   5
  Process 1               Process 2                        Process 3                   Process 4           Process 5

                     `


      Dept A                  Dept B                           Dept C                      Dept D             Dept E

  5                      2                   45 pcs        3                 10 pcs    2                  4
 LT = 1 days             LT = 0.5 days                    LT = 2 days                 LT = 0.5 days       LT = 1 days
 PT = 10 mins.           PT = 5 mins.                     PT = 3 mins.                PT = 5 mins.        PT = 15 mins.
 %C&A = 99%              %C&A = 75%                       %C&A = 99%                  %C&A = 99%          %C&A = 95%



   480 mins.                 240 mins.                         2 days                   240 mins.           480 mins.         Total LT = 5 days
      10 mins.                5 mins.                          3 mins.                     5 mins.            15 mins.        Total PT = 38 mins.
                                                                                                                              Activity Ratio = 1.6%
                                                                                                                              Rolled %C&A = 69.1%
Step 3 – Add Data
• Key metrics for all process blocks
  – Process Time (PT)
  – Lead Time (LT)
  – Percent Complete & Accurate (%C&A)
• Work-in-process (WIP) at every step.
• Significant barriers to flow (e.g. batching,
  shared resources, system downtime, etc.)




                                                 24
Post-it Conventions
                                        Block #
  Process
(Verb/Noun)

 Function


 # Staff (if
 relevant)

                                       Significant
                                     Barriers to Flow




                                     Process Time
   %C&A
                                       Lead Time
Value Stream Mapping Components
                                                     ABC Technology, Inc.
                                                 Current State Value Stream Map
                                                Softw are Upgrade Order Fulfillment
                                                  Customer Demand = 500/year




                                                           Custom er




                               IT-1                                                        IT-2




                 1                       2                               3                            4                   5
  Process 1               Process 2                        Process 3                   Process 4           Process 5

                     `


      Dept A                  Dept B                           Dept C                      Dept D             Dept E

  5                      2                   45 pcs        3                 10 pcs    2                  4
 LT = 1 days             LT = 0.5 days                    LT = 2 days                 LT = 0.5 days       LT = 1 days
 PT = 10 mins.           PT = 5 mins.                     PT = 3 mins.                PT = 5 mins.        PT = 15 mins.
 %C&A = 99%              %C&A = 75%                       %C&A = 99%                  %C&A = 99%          %C&A = 95%



   480 mins.                 240 mins.                         2 days                   240 mins.           480 mins.         Total LT = 5 days
      10 mins.                5 mins.                          3 mins.                     5 mins.            15 mins.        Total PT = 38 mins.
                                                                                                                              Activity Ratio = 1.6%
                                                                                                                              Rolled %C&A = 69.1%
Key Metrics: Time
                 Scenario 1

                  Lead Time (LT)




 Work           Process Time (PT)
                                        Work passed to
Received                                  next step



           LT = PT + Waiting / Delays
                                                     27
Key Metrics: Time
                 Scenario 2

                  Lead Time (LT)




                     Process Time
 Work                                   Work passed to
Received                                  next step



           LT = PT + Waiting / Delays
                                                     28
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 do rework:
    • 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.


                                                           29
Value Stream Mapping Components
                                                     ABC Technology, Inc.
                                                 Current State Value Stream Map
                                                Softw are Upgrade Order Fulfillment
                                                  Customer Demand = 500/year




                                                           Custom er




                               IT-1                                                        IT-2




                 1                       2                               3                            4                   5
  Process 1               Process 2                        Process 3                   Process 4           Process 5

                     `


      Dept A                  Dept B                           Dept C                      Dept D             Dept E

  5                      2                   45 pcs        3                 10 pcs    2                  4
 LT = 1 days             LT = 0.5 days                    LT = 2 days                 LT = 0.5 days       LT = 1 days
 PT = 10 mins.           PT = 5 mins.                     PT = 3 mins.                PT = 5 mins.        PT = 15 mins.
 %C&A = 99%              %C&A = 75%                       %C&A = 99%                  %C&A = 99%          %C&A = 95%



   480 mins.                 240 mins.                         2 days                   240 mins.           480 mins.         Total LT = 5 days
      10 mins.                5 mins.                          3 mins.                     5 mins.            15 mins.        Total PT = 38 mins.
                                                                                                                              Activity Ratio = 1.6%
                                                                                                                              Rolled %C&A = 69.1%
Step 4 – Create Timeline

• Create timeline
• Calculate summary metrics
  – Timeline PT Sum
  – Timeline LT Sum
  – Activity Ratio (AR)
  – Rolled %C&A




                                    31
Summary Metrics: Time

• Activity Ratio
  – The percentage of time anything is being done
    to the work passing through the system (whether
    value-adding or non-value-adding)
  – (∑PT ÷ ∑LT) × 100
  – Common current state finding in office/service =
    1-10% (across entire value stream)




                                                       32
Summary Metrics: Quality

• Rolled % C&A
  – The percent of value stream output that passes
    through the process “clean,” with no “hiccups,”
    no rework required.
  – (%C&A x %C&A x %C&A…) x 100
  – Common current state finding in office/service
    = 0-15%




                                                      33
Value Stream Mapping Components
                                                     ABC Technology, Inc.
                                                 Current State Value Stream Map
                                                Softw are Upgrade Order Fulfillment
                                                  Customer Demand = 500/year




                                                           Custom er




                               IT-1                                                        IT-2




                 1                       2                               3                            4                   5
  Process 1               Process 2                        Process 3                   Process 4           Process 5

                     `


      Dept A                  Dept B                           Dept C                      Dept D             Dept E

  5                      2                   45 pcs        3                 10 pcs    2                  4
 LT = 1 days             LT = 0.5 days                    LT = 2 days                 LT = 0.5 days       LT = 1 days
 PT = 10 mins.           PT = 5 mins.                     PT = 3 mins.                PT = 5 mins.        PT = 15 mins.
 %C&A = 99%              %C&A = 75%                       %C&A = 99%                  %C&A = 99%          %C&A = 95%



   480 mins.                 240 mins.                         2 days                   240 mins.           480 mins.         Total LT = 5 days
      10 mins.                5 mins.                          3 mins.                     5 mins.            15 mins.        Total PT = 38 mins.
                                                                                                                              Activity Ratio = 1.6%
                                                                                                                              Rolled %C&A = 69.1%
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       5 mins.
                                                3
                                                            6     45 mins.          2          7    30 mins.
                                                                                                                 2       8         5 mins.
                                                                                                                                                  2          9    248 mins.
                                                                                                                                                                                  2     10      365 mins.
                                                                                                                                                                                                                6       11       960 mins.
                                                                                                                                                                                                                                                2       12     110 mins.
                                                                                                                                                                                                                                                                              2       13    120 mins.
                                                                                                                                                                                                                                                                                                         6        14
          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%
Outpatient Imaging Value Stream
                Current State Findings

                  Current     Projected          %
     Metric
                   State     Future State   Improvement
Lead Time         32.5 hrs
Process Time      56 mins
Activity Ratio     2.9%
Rolled %C&A         29%




                                                          36
Step 5 – 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




                                                  37
Customer-Defined Value

• Value-Adding (VA) - any operation or activity
  your external customers value, are (or would
  be) willing to pay for, or it’s a requirement of
  doing business with them.
• 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

                                                             38
Eight Wastes (Muda)

•   Overproduction • Motion (people)
•   Inventory       • Transportation
•   Waiting           (material/data)
•   Over-Processing • Underutilized
                      people
•   Errors


                                        39
Typical Current State Findings
                   Unnecessary           Necessary NVA
                      NVA




                                          Work is idle


Order                                                             Delivery
                             Value Add


        Islands of activity (process times) within long lead times.



                                                                       40
Value Stream Mapping Process
              Define
          Product Family



            Document
           Current State



             Design
           Future State       3 Day
                              Event


              Create
        Transformation Plan



            Execute!
Future State Design
• Goal: Eliminate all redundancies and
  barriers to flow (the work should never
  stop)
  – Batches
  – Rework
  – Bottlenecks & WIP
  – Handoffs
  – Setup / changeover
  – Physical layout
  – Motion & transportation

                                            42
Future State Value Stream Map Outpatient                                                                                                                                                  Demand = 15 per day
                                                                                               Imaging Services


                                                                          Standard                                                                                                                                                         Customer Demand:
                    Work                                                                                                     Co-locate
                                                                            Work                                                                                                                                                            15 patients perDay
                   Balance                                                                                                                                                                                                               (Takt Time1920 seconds)
                                                                                                Schedule appt
                                                                                                                                                                                                                                              8 hours per day
                                                                                                 Pre-register
                                                                                                                                                                                                     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                                         Fax Order                  PACS                                             Auto Fax 80%
                                                                                                                                                                      Waiting Room
                                                                                                                                                                                               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.                  5     20 mins.                     6     5 mins.                   7    120 mins.                    8                                 420 mins.                 9      2 mins.                   10     30 mins.                   11
                                   3           4                   2                                  2                                2                                2                                                            2                                2                                 6

                             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
Outpatient Imaging Value Stream
            Projected Future State Results

                  Current     Projected          %
     Metric
                   State     Future State   Improvement
Lead Time         32.5 hrs     11.3 hrs        65%
Process Time      56 mins      43 mins         23%
Activity Ratio     2.9%         6.3%           117%
Rolled %C&A        29%          40%            38%




                                                          44
Value Stream Mapping Process
              Define
          Product Family



            Document
           Current State



             Design
           Future State       3 Day
                              Event


              Create
        Transformation Plan



            Execute!
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 O'Ryan
                                                         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                                                                                               O'Shea

                                                                                                               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                                                                                 O'Shea


    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:
Value Stream Mapping Process
               Define
           Product Family



             Document
            Current State



              Design
            Future State       3 Day
REPEAT




                               Event


               Create
         Transformation Plan



             Execute!
Common Differences - Manufacturing vs. Office VSMs
                                      Manufacturing                              Office
Customer icon                            Upper right                             Center
Supplier icon                             Upper left                              None
                               Raw material, sub-assemblies,          Paper, verbal, and electronic
“The thing” we’re following
                                     finished goods                           Information
                               More structured / formalized I.T.        Multiple I.T. systems and
Information Flow
                                          systems                             work-arounds

Schedule notification            Multiple points across VSM                Work not scheduled

Material flow (via hollow
                                             Yes                               Sometimes
arrow)
WIP icon                              Inventory triangle                   In-bin (if preferred)
                              Based on the time to process all of
LT determination for each                                            Based on a single item passing
                               the accumulated WIP between
block                                                                  through the value stream
                                      process blocks
Hands-on time to do the
                                         Cycle Time                           Process Time
work
                                                                      Percent Complete & Accurate
Quality Metric                      First Pass Yield (FPY)
                                                                                (%C&A)

                                                                    Applicable in areas with dedicated
Takt Time                          Typically can be applied
                                                                                resources
How can we help?


           Karen Martin, President
           7770 Regents Road #635
             San Diego, CA 92122
                858.677.6799

              ksm@ksmartin.com
          Twitter: @karenmartinopex

Blog & newsletter: www.ksmartin.com/subscribe
How can we help?


• www.igrafx.com/lean
• Custom Demonstration
• Process Program Assessments

        www.igrafx.com/contact
           503-404-6050
Thanks!

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Value Stream Mapping in Office and Service

  • 1. Get Lean - Value Stream Mapping for Office and Service Karen Martin Kim Scott President iGrafx Senior Consultant, The Karen Martin Group, Inc. Lean Six Sigma Black Belt
  • 2. What will you learn? Value Stream Mapping helps you understand and improve your Office and Service processes. Digitalizing VSMs is easy and makes sharing a snap.
  • 3. Introducing Karen Martin • Founder: The Karen Martin Group, Inc. (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: Winner - 2013 Shingo Research Prize
  • 5. 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 5
  • 6. 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 6
  • 7. The Work We Do: Degrees of Granularity Macro View Strategic; Value Value Stream heavy leadership Map involvement Stream Process Process Process Micro View Metrics-Based Tactical; heavy Step Step Step Process Map frontline involvement 7
  • 8. Office/Service Value Stream Examples: By Industry • Repair/maintenance – Customer request to revenue received • Financial services – Mortgage application • Law – Litigation value stream • Healthcare – Patient care; revenue cycle • Technology – Software development • Government – Permitting • Construction – Large equipment installation • Law enforcement – Arrest processing • Engineering/architecture – Design development • Oil & Gas – Fossil fuel exploration & production 8
  • 9. Support (Value-enabling) Value Streams • Estimating / RFQ response • Hiring – Recruitment to 1st (or 90th) day • New product development • Business plan development • Annual sales meeting planning & execution • Contract development & execution • And more… 9
  • 10. Value Stream Mapping Benefit: Seeing the Whole 60,000 foot view; Rooftop view 10
  • 11. VSM Promotes Systems Thinking System Efficiency = Optimal Value Stream Performance Individual Efficiency = Sub-optimization 11
  • 12. Truth How are we really performing? Truth Truth Truth CLARITY Truth Truth What’s our customer Truth really experiencing? Truth Truth 12
  • 13. Value Stream Mapping: As Much Art as Science 13
  • 14. Create a Value Stream “Storyboard” with Paper & Post-Its (Team-Based) 14
  • 15. Basic Value Stream Map ABC Technology, Inc. Current State Value Stream Map Softw are Upgrade Order Fulfillment Customer Demand = 500/year Custom er Information Flow IT-1 IT-2 1 2 3 4 5 Process 1 Process 2 Process 3 Process 4 Process 5 ` Material & Dept A Dept B Dept C Dept D Dept E Data Flow 5 2 45 pcs 3 10 pcs 2 4 LT = 1 days LT = 0.5 days LT = 2 days LT = 0.5 days LT = 1 days PT = 10 mins. PT = 5 mins. PT = 3 mins. PT = 5 mins. PT = 15 mins. %C&A = 99% %C&A = 75% %C&A = 99% %C&A = 99% %C&A = 95% Timeline 480 mins. 240 mins. 2 days 240 mins. 480 mins. Total LT = 5 days 10 mins. 5 mins. 3 mins. 5 mins. 15 mins. Total PT = 38 mins. Activity Ratio = 1.6% Rolled %C&A = 69.1%
  • 16. 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 you're 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 Times Customer 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 team's success with the mapping activity. Executive Sponsor Value Stream Champion Facilitator 2 3 Signature: Signature: Signature: 4 Date: Date: Date: 16
  • 17. Value Stream Mapping Process Define Product Family Document Current State Design Future State 3 Day Event Create Transformation Plan Execute!
  • 18. The Office Version of Product Families Units Domestic Consumables Warranty Service Parts Non-Warranty Order Fulfillment Process Units International Consumables Warranty Service Parts Non-Warranty
  • 19. Value Stream Mapping Process Define Product Family Document Current State Design Future State 3 Day Event Create Transformation Plan Execute!
  • 20. Step 1 – Define Process Blocks • Identify all process blocks in the value stream (target 5-15 blocks) – Each process 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 to another function) – Activity format is verb/noun – what happens to what – WALK THE VALUE STREAM! 20
  • 21. Value Stream Mapping Components ABC Technology, Inc. Current State Value Stream Map Softw are Upgrade Order Fulfillment Customer Demand = 500/year Custom er IT-1 IT-2 1 2 3 4 5 Process 1 Process 2 Process 3 Process 4 Process 5 ` Dept A Dept B Dept C Dept D Dept E 5 2 45 pcs 3 10 pcs 2 4 LT = 1 days LT = 0.5 days LT = 2 days LT = 0.5 days LT = 1 days PT = 10 mins. PT = 5 mins. PT = 3 mins. PT = 5 mins. PT = 15 mins. %C&A = 99% %C&A = 75% %C&A = 99% %C&A = 99% %C&A = 95% 480 mins. 240 mins. 2 days 240 mins. 480 mins. Total LT = 5 days 10 mins. 5 mins. 3 mins. 5 mins. 15 mins. Total PT = 38 mins. Activity Ratio = 1.6% Rolled %C&A = 69.1%
  • 22. Step 2 – Define I.T. Systems • Identify all I.T. systems used in the process and information flow – Note any scheduling that occurs (calendar, system, etc.) – Who tells whom to do what? How do they tell them? 22
  • 23. Value Stream Mapping Components ABC Technology, Inc. Current State Value Stream Map Softw are Upgrade Order Fulfillment Customer Demand = 500/year Custom er IT-1 IT-2 1 2 3 4 5 Process 1 Process 2 Process 3 Process 4 Process 5 ` Dept A Dept B Dept C Dept D Dept E 5 2 45 pcs 3 10 pcs 2 4 LT = 1 days LT = 0.5 days LT = 2 days LT = 0.5 days LT = 1 days PT = 10 mins. PT = 5 mins. PT = 3 mins. PT = 5 mins. PT = 15 mins. %C&A = 99% %C&A = 75% %C&A = 99% %C&A = 99% %C&A = 95% 480 mins. 240 mins. 2 days 240 mins. 480 mins. Total LT = 5 days 10 mins. 5 mins. 3 mins. 5 mins. 15 mins. Total PT = 38 mins. Activity Ratio = 1.6% Rolled %C&A = 69.1%
  • 24. Step 3 – Add Data • Key metrics for all process blocks – Process Time (PT) – Lead Time (LT) – Percent Complete & Accurate (%C&A) • Work-in-process (WIP) at every step. • Significant barriers to flow (e.g. batching, shared resources, system downtime, etc.) 24
  • 25. Post-it Conventions Block # Process (Verb/Noun) Function # Staff (if relevant) Significant Barriers to Flow Process Time %C&A Lead Time
  • 26. Value Stream Mapping Components ABC Technology, Inc. Current State Value Stream Map Softw are Upgrade Order Fulfillment Customer Demand = 500/year Custom er IT-1 IT-2 1 2 3 4 5 Process 1 Process 2 Process 3 Process 4 Process 5 ` Dept A Dept B Dept C Dept D Dept E 5 2 45 pcs 3 10 pcs 2 4 LT = 1 days LT = 0.5 days LT = 2 days LT = 0.5 days LT = 1 days PT = 10 mins. PT = 5 mins. PT = 3 mins. PT = 5 mins. PT = 15 mins. %C&A = 99% %C&A = 75% %C&A = 99% %C&A = 99% %C&A = 95% 480 mins. 240 mins. 2 days 240 mins. 480 mins. Total LT = 5 days 10 mins. 5 mins. 3 mins. 5 mins. 15 mins. Total PT = 38 mins. Activity Ratio = 1.6% Rolled %C&A = 69.1%
  • 27. Key Metrics: Time Scenario 1 Lead Time (LT) Work Process Time (PT) Work passed to Received next step LT = PT + Waiting / Delays 27
  • 28. Key Metrics: Time Scenario 2 Lead Time (LT) Process Time Work Work passed to Received next step LT = PT + Waiting / Delays 28
  • 29. 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 do rework: • 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. 29
  • 30. Value Stream Mapping Components ABC Technology, Inc. Current State Value Stream Map Softw are Upgrade Order Fulfillment Customer Demand = 500/year Custom er IT-1 IT-2 1 2 3 4 5 Process 1 Process 2 Process 3 Process 4 Process 5 ` Dept A Dept B Dept C Dept D Dept E 5 2 45 pcs 3 10 pcs 2 4 LT = 1 days LT = 0.5 days LT = 2 days LT = 0.5 days LT = 1 days PT = 10 mins. PT = 5 mins. PT = 3 mins. PT = 5 mins. PT = 15 mins. %C&A = 99% %C&A = 75% %C&A = 99% %C&A = 99% %C&A = 95% 480 mins. 240 mins. 2 days 240 mins. 480 mins. Total LT = 5 days 10 mins. 5 mins. 3 mins. 5 mins. 15 mins. Total PT = 38 mins. Activity Ratio = 1.6% Rolled %C&A = 69.1%
  • 31. Step 4 – Create Timeline • Create timeline • Calculate summary metrics – Timeline PT Sum – Timeline LT Sum – Activity Ratio (AR) – Rolled %C&A 31
  • 32. Summary Metrics: Time • Activity Ratio – The percentage of time anything is being done to the work passing through the system (whether value-adding or non-value-adding) – (∑PT ÷ ∑LT) × 100 – Common current state finding in office/service = 1-10% (across entire value stream) 32
  • 33. Summary Metrics: Quality • Rolled % C&A – The percent of value stream output that passes through the process “clean,” with no “hiccups,” no rework required. – (%C&A x %C&A x %C&A…) x 100 – Common current state finding in office/service = 0-15% 33
  • 34. Value Stream Mapping Components ABC Technology, Inc. Current State Value Stream Map Softw are Upgrade Order Fulfillment Customer Demand = 500/year Custom er IT-1 IT-2 1 2 3 4 5 Process 1 Process 2 Process 3 Process 4 Process 5 ` Dept A Dept B Dept C Dept D Dept E 5 2 45 pcs 3 10 pcs 2 4 LT = 1 days LT = 0.5 days LT = 2 days LT = 0.5 days LT = 1 days PT = 10 mins. PT = 5 mins. PT = 3 mins. PT = 5 mins. PT = 15 mins. %C&A = 99% %C&A = 75% %C&A = 99% %C&A = 99% %C&A = 95% 480 mins. 240 mins. 2 days 240 mins. 480 mins. Total LT = 5 days 10 mins. 5 mins. 3 mins. 5 mins. 15 mins. Total PT = 38 mins. Activity Ratio = 1.6% Rolled %C&A = 69.1%
  • 35. 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 5 mins. 3 6 45 mins. 2 7 30 mins. 2 8 5 mins. 2 9 248 mins. 2 10 365 mins. 6 11 960 mins. 2 12 110 mins. 2 13 120 mins. 6 14 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%
  • 36. Outpatient Imaging Value Stream Current State Findings Current Projected % Metric State Future State Improvement Lead Time 32.5 hrs Process Time 56 mins Activity Ratio 2.9% Rolled %C&A 29% 36
  • 37. Step 5 – 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 37
  • 38. Customer-Defined Value • Value-Adding (VA) - any operation or activity your external customers value, are (or would be) willing to pay for, or it’s a requirement of doing business with them. • 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 38
  • 39. Eight Wastes (Muda) • Overproduction • Motion (people) • Inventory • Transportation • Waiting (material/data) • Over-Processing • Underutilized people • Errors 39
  • 40. Typical Current State Findings Unnecessary Necessary NVA NVA Work is idle Order Delivery Value Add Islands of activity (process times) within long lead times. 40
  • 41. Value Stream Mapping Process Define Product Family Document Current State Design Future State 3 Day Event Create Transformation Plan Execute!
  • 42. Future State Design • Goal: Eliminate all redundancies and barriers to flow (the work should never stop) – Batches – Rework – Bottlenecks & WIP – Handoffs – Setup / changeover – Physical layout – Motion & transportation 42
  • 43. Future State Value Stream Map Outpatient Demand = 15 per day Imaging Services Standard Customer Demand: Work Co-locate Work 15 patients perDay Balance (Takt Time1920 seconds) Schedule appt 8 hours per day Pre-register 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 Fax Order PACS Auto Fax 80% Waiting Room 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. 5 20 mins. 6 5 mins. 7 120 mins. 8 420 mins. 9 2 mins. 10 30 mins. 11 3 4 2 2 2 2 2 2 6 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
  • 44. Outpatient Imaging Value Stream Projected Future State Results Current Projected % Metric State Future State Improvement Lead Time 32.5 hrs 11.3 hrs 65% Process Time 56 mins 43 mins 23% Activity Ratio 2.9% 6.3% 117% Rolled %C&A 29% 40% 38% 44
  • 45. Value Stream Mapping Process Define Product Family Document Current State Design Future State 3 Day Event Create Transformation Plan Execute!
  • 46. 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 O'Ryan 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 O'Shea 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 O'Shea 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:
  • 47. Value Stream Mapping Process Define Product Family Document Current State Design Future State 3 Day REPEAT Event Create Transformation Plan Execute!
  • 48. Common Differences - Manufacturing vs. Office VSMs Manufacturing Office Customer icon Upper right Center Supplier icon Upper left None Raw material, sub-assemblies, Paper, verbal, and electronic “The thing” we’re following finished goods Information More structured / formalized I.T. Multiple I.T. systems and Information Flow systems work-arounds Schedule notification Multiple points across VSM Work not scheduled Material flow (via hollow Yes Sometimes arrow) WIP icon Inventory triangle In-bin (if preferred) Based on the time to process all of LT determination for each Based on a single item passing the accumulated WIP between block through the value stream process blocks Hands-on time to do the Cycle Time Process Time work Percent Complete & Accurate Quality Metric First Pass Yield (FPY) (%C&A) Applicable in areas with dedicated Takt Time Typically can be applied resources
  • 49. How can we help? Karen Martin, President 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopex Blog & newsletter: www.ksmartin.com/subscribe
  • 50. How can we help? • www.igrafx.com/lean • Custom Demonstration • Process Program Assessments www.igrafx.com/contact 503-404-6050