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© Mike Rother TOYOTA KATA
1
How to Use
Mike Rother, July 2011
Copyright © 2014 Mike Rother, all rights reserved
1217 Baldwin Avenue / Ann Arbor, MI 48104 USA / tel: (734) 665-5411 / mrother@umich.edu
Value Stream Mapping Correctly
Combining Value Stream Mapping
and the Improvement Kata
© Mike Rother TOYOTA KATA
2
Value stream mapping (VSM) is a Lean method for analyzing the current
state and designing a future state for the series of events that take a
product or service from its beginning through to the customer.
The book Learning to See, which I co-authored with John Shook and Jim
Womack, is an instruction manual for VSM.  We've not found another tool
that works as well for analyzing & designing flows at the system level.
Value Stream Mapping can be used for various purposes, such as:
Helping you quickly understand how a system
works from door to door. (I sketch a simple
map nearly every time I visit a factory.)
Helping you communicate.
A main purpose of Value Stream Mapping is to support an ongoing
process of improvement, adaptation and innovation by providing a
sense of direction. Thatʼs what this SlideShare is about.
INTRODUCTION
q
q
© Mike Rother TOYOTA KATA
3
YOU NEED A SENSE OF DIRECTION,
AND AN EFFECTIVE WAY OF MOVING THERE
The system-level
view, through Value
Stream Mapping
Working
scientifically,
with the
Improvement Kata
© Mike Rother TOYOTA KATA
4
Value stream mapping is not an end in itself. Itʼs something
that assists in the process of improvement.
The purpose of this SlideShare is to encourage you to use
Value Stream Mapping (VSM) as a tool and practice within a
systematic, scientific improvement pattern like the
Improvement Kata / Coaching Kata.
EFFECTIVE USE OF VALUE STREAM MAPPING
In short, you use the future-state
map to focus and aim individual
improvement efforts toward a
common breakthrough challenge.
© Mike Rother TOYOTA KATA
5
Target
Condition ChallengeObstacles Vision
Current
Condition
THE FIRST STEP OF THE IK PATTERN
IS TO HAVE AN OVERARCHING CHALLENGE
“When people see themselves as components in a system
[and] work in cooperation to achieve a shared aim, they
feel that their efforts hold meaning. They experience
interest and challenge and joy in the work.”
~ W. Edwards Deming, The New Economics, page 128
Having an overarching challenge is
important; so that individual target
conditions are seen as meaningful.
Itʼs difficult for us to stay engaged with
something that doesnʼt have a purpose.
© Mike Rother TOYOTA KATA
6
Current State
VS Map
Future State
VS Map
Today
2 Weeks to
3 Months
1-3 Years
Maybe
Never
CURRENT
CONDITION
TARGET
CONDITION
CHALLENGE VISION
TERMINOLOGY
(timeline is not to scale)
It takes
multiple
successive
Target
Conditions
to reach the
Challenge
The Organizationʼs Strategic Concept
Grasp the
Current
Condition
Establish
Your Next
Target
Condition
Get the
Direction or
Challenge
IK Process
Analysis
© Mike Rother TOYOTA KATA
7
Grasp the
Current
Condition
Establish the
Next Target
Condition
Target
Condition
Iterate Toward the
Target Condition
C C
T C
Understand
the
Direction
ONE WAY TO ESTABLISH CHALLENGE
IS WITH FUTURE-STATE
VALUE STREAM MAPPING
With or without directional guidance
from an organizationʼs leader level, Future-
State Mapping at the product-family level
can help provide a necessary sense of
direction and challenge.
A future-state Value Stream map is
sometimes even called a Challenge Map.
Value
Stream
Mapping
© Mike Rother TOYOTA KATA
8
What is the the direction in which process teams should improve?
The future-state map 'connects the dots' of individual improvement
efforts by providing a common challenge to strive for. This aligns
your process-improvement efforts
Vision
Target
Condition
Target
Condition
Target
Condition
Next
Target
Condition
Next
Target
Condition
Next
Target
Condition
THE ROLE OF VALUE STREAM MAPPING
Value Stream Mapping is a tool for analyzing & designing
the flow across multiple processes
Challenge
Process Team A
Process Team B
Process Team C
This is a main
intended role
for VSM!
Typically a
6-month
to 3-year
timeframe
© Mike Rother TOYOTA KATA
9
WHERE VALUE STREAM MAPPING FITS IN
(1)
Understand
the Direction
or Challenge
(2)
Grasp the
Current
Condition
(3)
Establish the
Next Target
Condition
(4)
Iterate
Toward the
Target Condition
PLANNING PHASE EXECUTING
Organization
Level
Value Stream
Loop Level
Process
Level
Future-State
Value Stream
Mapping
The 4 Steps of the Improvement Kata
Current-State
Value Stream
Mapping
Diagram by Emiel Van Est
Organizationʼs Strategic Concept
Value Stream
Level
Future-State
Loop
Mapping
Current-State
Loop
Mapping
IK Process
Analysis
© Mike Rother TOYOTA KATA
10
The diagram on the previous page & below depicts how the four steps
of the Improvement Kata pattern are utilized at each level of an
organization. The diagonal arrows show how the Target Condition at
one level becomes the Direction or Challenge for the next level down.
At the value-stream level, current-state value stream mapping is used
for the Kata step of grasping the current condition, and future-state
mapping is used for the Kata step of establishing the target condition.
VSM is then often also used to assess and design value stream loops.
Future-state value stream
maps define the direction /
challenge for the
improvement process at the
loops and work processes
inside that value stream
HOW IT WORKS
IK Process
Analysis
© Mike Rother TOYOTA KATA
11
Coaches Value Streams
Coaches VS Loops
Coaches Processes
Organizationʼs
Strategic
Goal
Value Stream
Goal
Value Stream
Loop Goal
Process
Goal
COACHING TO AN OVERARCHING CHALLENGE
Finally... a practical way to operationalize strategy deployment!
© Mike Rother TOYOTA KATA
12
Future-State
Value Stream Design
“Build to truck, kitchen at a time”
Build one customer kitchen at a
time and put it right on the truck.
“Same day, next day”
Assemble the day ordered,
and ship the next day.
SUMMARIZE THE FUTURE-STATE GOAL
WITH A CHALLENGE STATEMENT
This is a “theme”... a compact description of
what this value stream is aiming for overall
Future State
Value Stream Map
+
Some actual examples:
Value Stream
Challenge Statement
MAPPING
TIP
© Mike Rother TOYOTA KATA
13
Donʼt value stream map the current
state, highlight problems with lightning
bursts and then just go after those
issues. Thatʼs not an effective way to
improve. Itʼs too random.
The main purpose of drawing a current
state value stream map is not to see
problems, wastes or improvement opportunities
for quick resolution, but to provide the basis for
designing a future state.
MAPPING TIP:
DONʼT MAKE THIS MISTAKE
A common VSM error
© Mike Rother TOYOTA KATA
14
Once youʼve drawn the current state map, the next step is
to design a future value stream that answers the question:
“How do we want this value stream to be functioning (to
flow) 1-3 years in the future?”
LIGHTNING BURSTS DONʼT BELONG ON
THE CURRENT STATE VALUE STREAM MAP
You havenʼt yet defined where you want to go
Then you can draw lightning
bursts onto the future-state
map to indicate construction
sites you think will be
necessary in order to achieve
your future-state flow design.
Here, for example, are the kaizen
bursts from the future-state map
in Learning to See, page 78.
© Mike Rother TOYOTA KATA
15
Do This:
Current-State
Map
Future-State
Map
Current-State
Map
Chasing after problems / wastes / opportunities
WORK IN A GOAL-DIRECTED MANNER
Donʼt Do This:
© Mike Rother TOYOTA KATA
16
Current State
VS Map
Scientifically moving toward the future-state design (iterating)
by applying the Improvement Kata pattern at individual processes
Future State
VS Map
CC TC1 CC TC2 CC TC3 CC TCn
CC = Current Condition, TC = Successive Target Conditions
Value
Stream
Level
Process
Level
Once youʼve drawn the future-state value-stream map,
work toward that objective by utilizing the Improvement
Kata pattern at each level in the value stream.
MOVE TOWARD YOUR FUTURE STATE DESIGN
SYSTEMATICALLY & SCIENTIFICALLY
Work iteratively, with the scientific Improvement Kata pattern
© Mike Rother TOYOTA KATA
17
AS SUGGESTED IN LEARNING TO SEE, BREAK YOUR
FUTURE-STATE VALUE STREAM MAP INTO LOOPS
The future-state characteristics for the loops of a
value stream provide challenge and coordination
for establishing target conditions at the individual
work processes inside those loops. The future-
state design for a value stream loop is a hoshin
for improvement at the processes in that loop.
What do the
processes in this
loop need to work
on, to help achieve
the VS loop goal?
See p.86 in
Learning to SeeA VS loop often corresponds to
a “Department” in an organization
© Mike Rother TOYOTA KATA
18
DEAR VALUE STREAM MAPPERS...
We invite you to use this effective ʻconnectedʼ
approach to Value Stream Mapping (integrating VSM
with the Improvement Kata / Coaching Kata patterns)
and to share what you learn on SlideShare, YouTube,
in articles and so on.

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How to Use VSM Correctly

  • 1. © Mike Rother TOYOTA KATA 1 How to Use Mike Rother, July 2011 Copyright © 2014 Mike Rother, all rights reserved 1217 Baldwin Avenue / Ann Arbor, MI 48104 USA / tel: (734) 665-5411 / mrother@umich.edu Value Stream Mapping Correctly Combining Value Stream Mapping and the Improvement Kata
  • 2. © Mike Rother TOYOTA KATA 2 Value stream mapping (VSM) is a Lean method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. The book Learning to See, which I co-authored with John Shook and Jim Womack, is an instruction manual for VSM.  We've not found another tool that works as well for analyzing & designing flows at the system level. Value Stream Mapping can be used for various purposes, such as: Helping you quickly understand how a system works from door to door. (I sketch a simple map nearly every time I visit a factory.) Helping you communicate. A main purpose of Value Stream Mapping is to support an ongoing process of improvement, adaptation and innovation by providing a sense of direction. Thatʼs what this SlideShare is about. INTRODUCTION q q
  • 3. © Mike Rother TOYOTA KATA 3 YOU NEED A SENSE OF DIRECTION, AND AN EFFECTIVE WAY OF MOVING THERE The system-level view, through Value Stream Mapping Working scientifically, with the Improvement Kata
  • 4. © Mike Rother TOYOTA KATA 4 Value stream mapping is not an end in itself. Itʼs something that assists in the process of improvement. The purpose of this SlideShare is to encourage you to use Value Stream Mapping (VSM) as a tool and practice within a systematic, scientific improvement pattern like the Improvement Kata / Coaching Kata. EFFECTIVE USE OF VALUE STREAM MAPPING In short, you use the future-state map to focus and aim individual improvement efforts toward a common breakthrough challenge.
  • 5. © Mike Rother TOYOTA KATA 5 Target Condition ChallengeObstacles Vision Current Condition THE FIRST STEP OF THE IK PATTERN IS TO HAVE AN OVERARCHING CHALLENGE “When people see themselves as components in a system [and] work in cooperation to achieve a shared aim, they feel that their efforts hold meaning. They experience interest and challenge and joy in the work.” ~ W. Edwards Deming, The New Economics, page 128 Having an overarching challenge is important; so that individual target conditions are seen as meaningful. Itʼs difficult for us to stay engaged with something that doesnʼt have a purpose.
  • 6. © Mike Rother TOYOTA KATA 6 Current State VS Map Future State VS Map Today 2 Weeks to 3 Months 1-3 Years Maybe Never CURRENT CONDITION TARGET CONDITION CHALLENGE VISION TERMINOLOGY (timeline is not to scale) It takes multiple successive Target Conditions to reach the Challenge The Organizationʼs Strategic Concept Grasp the Current Condition Establish Your Next Target Condition Get the Direction or Challenge IK Process Analysis
  • 7. © Mike Rother TOYOTA KATA 7 Grasp the Current Condition Establish the Next Target Condition Target Condition Iterate Toward the Target Condition C C T C Understand the Direction ONE WAY TO ESTABLISH CHALLENGE IS WITH FUTURE-STATE VALUE STREAM MAPPING With or without directional guidance from an organizationʼs leader level, Future- State Mapping at the product-family level can help provide a necessary sense of direction and challenge. A future-state Value Stream map is sometimes even called a Challenge Map. Value Stream Mapping
  • 8. © Mike Rother TOYOTA KATA 8 What is the the direction in which process teams should improve? The future-state map 'connects the dots' of individual improvement efforts by providing a common challenge to strive for. This aligns your process-improvement efforts Vision Target Condition Target Condition Target Condition Next Target Condition Next Target Condition Next Target Condition THE ROLE OF VALUE STREAM MAPPING Value Stream Mapping is a tool for analyzing & designing the flow across multiple processes Challenge Process Team A Process Team B Process Team C This is a main intended role for VSM! Typically a 6-month to 3-year timeframe
  • 9. © Mike Rother TOYOTA KATA 9 WHERE VALUE STREAM MAPPING FITS IN (1) Understand the Direction or Challenge (2) Grasp the Current Condition (3) Establish the Next Target Condition (4) Iterate Toward the Target Condition PLANNING PHASE EXECUTING Organization Level Value Stream Loop Level Process Level Future-State Value Stream Mapping The 4 Steps of the Improvement Kata Current-State Value Stream Mapping Diagram by Emiel Van Est Organizationʼs Strategic Concept Value Stream Level Future-State Loop Mapping Current-State Loop Mapping IK Process Analysis
  • 10. © Mike Rother TOYOTA KATA 10 The diagram on the previous page & below depicts how the four steps of the Improvement Kata pattern are utilized at each level of an organization. The diagonal arrows show how the Target Condition at one level becomes the Direction or Challenge for the next level down. At the value-stream level, current-state value stream mapping is used for the Kata step of grasping the current condition, and future-state mapping is used for the Kata step of establishing the target condition. VSM is then often also used to assess and design value stream loops. Future-state value stream maps define the direction / challenge for the improvement process at the loops and work processes inside that value stream HOW IT WORKS IK Process Analysis
  • 11. © Mike Rother TOYOTA KATA 11 Coaches Value Streams Coaches VS Loops Coaches Processes Organizationʼs Strategic Goal Value Stream Goal Value Stream Loop Goal Process Goal COACHING TO AN OVERARCHING CHALLENGE Finally... a practical way to operationalize strategy deployment!
  • 12. © Mike Rother TOYOTA KATA 12 Future-State Value Stream Design “Build to truck, kitchen at a time” Build one customer kitchen at a time and put it right on the truck. “Same day, next day” Assemble the day ordered, and ship the next day. SUMMARIZE THE FUTURE-STATE GOAL WITH A CHALLENGE STATEMENT This is a “theme”... a compact description of what this value stream is aiming for overall Future State Value Stream Map + Some actual examples: Value Stream Challenge Statement MAPPING TIP
  • 13. © Mike Rother TOYOTA KATA 13 Donʼt value stream map the current state, highlight problems with lightning bursts and then just go after those issues. Thatʼs not an effective way to improve. Itʼs too random. The main purpose of drawing a current state value stream map is not to see problems, wastes or improvement opportunities for quick resolution, but to provide the basis for designing a future state. MAPPING TIP: DONʼT MAKE THIS MISTAKE A common VSM error
  • 14. © Mike Rother TOYOTA KATA 14 Once youʼve drawn the current state map, the next step is to design a future value stream that answers the question: “How do we want this value stream to be functioning (to flow) 1-3 years in the future?” LIGHTNING BURSTS DONʼT BELONG ON THE CURRENT STATE VALUE STREAM MAP You havenʼt yet defined where you want to go Then you can draw lightning bursts onto the future-state map to indicate construction sites you think will be necessary in order to achieve your future-state flow design. Here, for example, are the kaizen bursts from the future-state map in Learning to See, page 78.
  • 15. © Mike Rother TOYOTA KATA 15 Do This: Current-State Map Future-State Map Current-State Map Chasing after problems / wastes / opportunities WORK IN A GOAL-DIRECTED MANNER Donʼt Do This:
  • 16. © Mike Rother TOYOTA KATA 16 Current State VS Map Scientifically moving toward the future-state design (iterating) by applying the Improvement Kata pattern at individual processes Future State VS Map CC TC1 CC TC2 CC TC3 CC TCn CC = Current Condition, TC = Successive Target Conditions Value Stream Level Process Level Once youʼve drawn the future-state value-stream map, work toward that objective by utilizing the Improvement Kata pattern at each level in the value stream. MOVE TOWARD YOUR FUTURE STATE DESIGN SYSTEMATICALLY & SCIENTIFICALLY Work iteratively, with the scientific Improvement Kata pattern
  • 17. © Mike Rother TOYOTA KATA 17 AS SUGGESTED IN LEARNING TO SEE, BREAK YOUR FUTURE-STATE VALUE STREAM MAP INTO LOOPS The future-state characteristics for the loops of a value stream provide challenge and coordination for establishing target conditions at the individual work processes inside those loops. The future- state design for a value stream loop is a hoshin for improvement at the processes in that loop. What do the processes in this loop need to work on, to help achieve the VS loop goal? See p.86 in Learning to SeeA VS loop often corresponds to a “Department” in an organization
  • 18. © Mike Rother TOYOTA KATA 18 DEAR VALUE STREAM MAPPERS... We invite you to use this effective ʻconnectedʼ approach to Value Stream Mapping (integrating VSM with the Improvement Kata / Coaching Kata patterns) and to share what you learn on SlideShare, YouTube, in articles and so on.