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Value Stream Mapping

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Value Stream Mapping is a great tool to visually display a process. Used properly, a VSM is a powerful business tool.

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Value Stream Mapping

  1. 1. Value Stream MappingINPUT Process OUTPUT
  2. 2. Today’s Objectives• What is the Value Stream• What is a Value Stream Map (VSM)• Tools needed• Who should be involved• Defining the scope• Sections of a VSM• The VSM is done, now what?
  3. 3. The Value Stream
  4. 4. Question: What is the 8th waste? Talent
  5. 5. What is a Value Stream Map?• A visual way to review each step in the value stream or process.• Used to identify value (or lack of) in a process.• Value must be in the eyes of the customer – What your customer is willing to pay for – Internal/External Customers• Everything is a process, therefore everything can be mapped.
  6. 6. Tools Needed For a VSM
  7. 7. All Stakeholders Involved!• When doing a VSM it is VITAL to have ALL stakeholders present.• If it is not possible to have ALL stakeholders then you must have a representative who can speak for anyone not present – For example, if you can’t pull an entire department, take one or two people who know the process.
  8. 8. Define Your Scope• Where does the process begin/end• It’s easy to get distracted by issues outside of your scope• Everyone has to agree on the scope• Doesn’t matter how big or small the scope is
  9. 9. Different Types of Value• Value Added – Value is in the eyes of the customer – If time permits, consider this for both external and internal customers• Non Value Added / Waste (8 wastes)• Business Value Added / Regulatory – Something that you determine is essential to your business but may not be value added by the customer – Good time to look at your company policies...
  10. 10. Qualifying Steps• Here’s a method to determine if a step is value added. – Would the customer see the value and be willing to pay for it? – Was it done right the first time? – Did it change in form, appearance, or material from the previous step? – Is it required by law?• Need to capture “waits” in a process too.• Mark each step with which type of value it is
  11. 11. Best and Worst Times• For each step, understand the fastest and slowest times it could take to complete that step.• Large gaps in best/worst times will identify a potential bottleneck in the process• This is where the stop watch could come in handy. However, for most processes, the stakeholders will already have a good idea of the best/worst times.
  12. 12. Inputs and Outputs• Inputs and outputs need to be understood and captured for each step in the VSM• INPUTS – Is there anything required for that step to happen? Something from an external process?• OUTPUTS – Does that step produce anything? Information?• There may not be a new INPUT or OUTPUT for every step
  13. 13. Issues• No-blame environment! – Look to the process, not the individual – “A bad system will defeat a good person every time.” - W. E. Deming• What prevents the step from flowing?• Examples: – Error(s) – Misguided controls (inspector, a signature) – miscommunication
  14. 14. Steps and WaitsBest TimeWorst TimeInputOutputIssues
  15. 15. The VSM is done, now what?• Eliminate non-value added and wasteful steps• Take the “waits” out of the process• Reduce the time it takes to complete the bottleneck steps• Generate a future state once the above is done. – Ensure ALL stakeholders are involved with this• APPLY THE 5 WHYS!!!
  16. 16. Production VSM Example Raw MaterialsPrevious Run Remove Clean Up & Supplies to Ends Tooling Machine Trials Run New Tooling Raw Materials through Machine Setup Installed Checked machineAdjustments More Trials Samples Run Starts Made Run ApprovedHow long do your changeovers take?
  17. 17. Office VSM Example• “Some-cool-data-that-everyone-can-use” report• Originally started as a request• Starting situation
  18. 18. Acct Mgr Admin Order Entry Assistant PresidentSales Mgr Copy Room Plant MgrMeetingRoom Ops Mgr Equipment Room
  19. 19. Office VSM Example• “Some-cool-data-that-everyone-can-use” report• Originally started as a request• Options – Change her route
  20. 20. Acct Mgr Admin Order Entry Assistant CEOSales Mgr Copy Room Plant MgrMeetingRoom Ops Mgr Equipment Room
  21. 21. Office VSM Example• “Some-cool-data-that-everyone-can-use” report• Originally started as a request• Options – Change her route – Just email it to everyone
  22. 22. Acct Mgr Admin Order Entry Assistant CEOSales Mgr Copy Room Plant MgrMeetingRoom Ops Mgr Equipment Room
  23. 23. Office VSM Example• “Some-cool-data-that-everyone-can-use” report• Originally started as a request• Options – Change her route – Just email it to everyone – Find out who really uses the info – Just email it to them
  24. 24. Thank you!

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