The document outlines the objectives and fundamentals of value stream mapping (VSM) as a key tool for implementing lean principles in various operational areas. It discusses the significance of standardization, built-in quality, short lead time, and continuous improvement, while highlighting their interdependent nature and practical applications. An illustrative case study of a CPA's tax preparation process exemplifies how VSM can identify and reduce waste, improve efficiency, and enhance customer satisfaction.

1. Welcome Value Stream Mapping

2. Session Goals Provide an overview of Value Stream Mapping Demonstrate Value Stream Mapping as a tool to support Lean implementation. Provide an overview of Lean Principles.

3. Introduction Name Current Position VSM Experience (if any)

4. What are the concepts of Lean? The elements for Operating a Lean Facility Principles and Elements are Interdependent Develops lean thinking leaders to deliver lean business results Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

5. Standardization Definition: Standardization is a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization. Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve. Standardization World Class Continuous Improvement Change Standardization Elements Management by Takt Time Workplace Organization Standardized Work Visual Management

6. Built In Quality Built-In Quality Elements Product Quality Standards Manufacturing Process Validation In-Process Control & Verification Quality Feedback/Feedforward Quality System Management Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence. Purpose: To ensure that defects are not passed to the customer. Solve problems through teamwork! Satisfy your Customer. . . The Built-In-Quality Motto Do not Accept Build Ship a Defect!

7. Short Lead Time Definition: The movement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer. Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty. Short Lead Time Elements Small Lot Packaging Fixed Period Ordering System Controlled External Transportation Simple Process Flow Scheduled Shipping/Receiving Temporary Material Storage Internal Pull/Delivery Level Vehicle Order Schedules Supply Chain Management long lead-time short lead-time

8. Continuous Improvement Definition: A process based on standardization, whereby results are achieved, through a series of small improvements. Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste . Continuous Improvement Elements Andon Concept Business Plan Deployment Total Maintenance System Lean Design of Facilities, Equipment, Tooling and Layout Continuous Improvement Process Early Mfg. Design Integration (DFM/DFA) Problem Solving The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented. The Continuous Improvement Cycle Standardization Improvement Standardization Standardization Standardization Improvement Improvement

9. How Do We Expand VSM Throughout the Enterprise? All the Principles and Elements apply, however, there is one big difference In the factory, the process itself is very visible making it easy to see, study and improve The processes in HR, Engineering, Purchasing, etc... are not as visible What we need is a tool that will help make the process more visible

10. Value Stream Mapping A tool originally used by the Toyota Production System experts to study processes Developed and refined by John Shook and Mike Rother in Learning to See Used in manufacturing, engineering and administrative offices by lean experts to improve business processes

11. What is a Value Stream? A value stream involves all the steps, both value added and non value added, required to complete a product or service from beginning to end

12. How Does Value Stream Mapping Fit With the Lean Journey VSM is a tool used to support the implementation of lean strategies.

13. What Makes Value Stream Mapping Unique? Visualizes the Process Flow from a systems perspective Focuses on the customer and the customer’s requirements Includes information flow and product movement Summarizes the timeline as it relates to delivery to the customer Documents performance characteristics of both the Value Stream and the individual process steps

14. Value Stream Map Elements Process 1 Process 2 Process Time Wait Time FTQ Process Time Wait Time FTQ Customer XYZ Org Supplier Orders Customer Orders Internal Scheduling Delivery Freq. Material Movement via PUSH Delivery Freq. I I I Supplier Inventory Lead Time

15. Value Stream Maps Enable a System View Starts with a Focus on the Customer Links process steps and information flow Reveals problems with flow Documents performance of the process Customer Expectations Process metrics Visibility of progress and quality Reveals waste Establishes a common language Provides a blueprint for improvement Gets People involved in creating the future

16. VSM Analysis – Data Attributes Lead time = Processing time + Wait Time / Delays Typical batch size First-Time Quality Reliability (e.g. system or equipment uptime) Rework / revisions % Complete and Accurate Inputs (% C&A) Design Changes Errors Number of people involved % utilization of people

17. VSM Case Study

18. Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Scoping the Value Stream Designing a lean flow through the enterprise. Future state drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Current state drawing

19. Jack’s Taxes Jack is a CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If Jack can improve the process for self-employed clients, he could take on more work during that time of year. Generally, the sequence of events begins for each client sometime late January with Jack’s assistant, John, sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. Jack sorts the receipts and documents , finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions. Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms . For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return . Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.

20. Data Set Tax Season: 8 weeks 40 self-employed clients Send Reminder : John P/T = 10 min FTQ = 100% Sort receipts & documents : Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet : Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions : Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50% Print and Collate IRS tax forms : John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 – 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms : Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client : John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%

21. Measurable Metrics & Performance Target from Future State Map From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 12 hours (720 Min.) Process Time Actual (post implementation) Current Estimate Metric SP QRC

22. Typical Steps for Current State Mapping Document customer information & need Identify main processes (in order) Select data attributes (Q,R,C - minimum) Perform value stream walk and fill in data boxes (how the process really works) Establish how each process knows what to process next (how work is prioritized) and document information flow Calculate process time, wait time, lead time, first time quality, and any other metrics necessary to evaluate your Value Stream

23. Icons MRP Changeover Kaizen Lightning Burst Movement by Push Electronic Information Flow Weekly Schedule Worker In Box (Queue) IN Wait-Time Conversation Information Flow Data Box P/T W/T FTQ Supermarket XOXO Leveling, Mix and/or Volume Withdrawal (Pull) F I F O First-In First-Out Flow Iterations Movement of “physical” property Reminder post-card Customer Process Box Technology Used MRP

24. Draw the Current State

25. Jack’s Taxes - Current State Start with Customer Then Suppliers 40 clients Customer Suppliers Client

26. Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Process Steps? Jack’s Taxes - Current State 40 clients Client

27. John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week Client 40 clients Tax forms to client by 4/10 Reminder post-card Jack’s Taxes - Current State 50% Process Data, Information Flow, and Process Flow P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 3 days IN 3 days IN 1 day IN 3 weeks Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS IN Receipts & Documents IN Missing documents Clarify deductions Notify of missing documents 1 week P/T W/T FTQ

28. 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min Total Leadtime and FTQ ----- Total of P/T = 140 minutes Total of W/T = 7wks, 2days Jack’s Taxes - Current State ---- ---- ---- ---- Total Lead Time = 7 wks, 2 days, and 140 min. Product of FTQ = 4.7% IN IN IN IN IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Documents Reminder post-card Missing documents Clarify deductions Notify of missing documents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ W/T P/T FTQ X X X X X

29. Measurable Metrics & Performance Target from Future State Map 4.7% 7 Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SP QRC

30. Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min Clarify deductions IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN

31. Waste The elements of production that add no value to the product: waste only adds cost & time Points to Remember About Waste: It is important to consider waste in the context of the value that the process provides to the customer Waste is really a symptom of problems in the system. It shows where the problems are We need to find and address the causes of waste to improve the performance of the system

32. Waste in a Value Stream Muri – Waste of unreasonableness or overburden to a person or a machine Mura – Waste of inconsistency; Waste of unevenness Muda – The seven forms of waste (COMMWIP)

33. FORMS OF WASTE I C O M W P M CURRENT THINKING WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT REQUIRED THINKING CONTINUOUS IMPROVEMENT Correction Over Production Motion Material Movement Waiting Inventory Processing WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE Shift Mindset WASTE Sending back forms for incomplete or inaccurate data Producing reports that are not used, producing reports before they are needed Searching for misplaced items Filing documents that will never be used again Keeping multiple copies of reports Processing excessive written communication to determine issues requiring attention (mental processing) Employee assigned two jobs due to understaffing End of month deadline causing overtime; all projects scheduled in 1Q with none in 2 nd Delays in getting needed information, approvals, or decisions Unreasonable-ness Unevenness

34. Waste Exercise Participants identify waste on current state maps.

35. Jack’s Taxes - Current State MM O IN IN IN IN IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Documents Reminder post-card Missing documents Clarify deductions Notify of missing documents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: W/T P/T FTQ 7 wks, 2 days, 140 min ----- W W I I I I I P P P C C C C

36. Lean Principle: Built-In-Quality Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

37. Understanding Customer Requirements Right Product Right Time! Right Price!!

38. Built-In-Quality Product Quality Standards In-Process Control & Verification Quality Feedback/Feed Forward

39. Product Quality Standards Focus On The Customer J.D. Power Quality Standards must be easily understood by the Team members Quality Standards must be Clear and Unambiguous

40. In Process Control & Verification Quality Feedback / Feed Forward Ability to signal for help when Sensing Abnormalities Quality Must Be Assured In The Process Error Proofing In-Process Verification Feedback / Feed Forward

41. Lean Principle: Continuous Improvement Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

42. Andon ENABLERS BENEFITS 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4 Motion Correction Waiting

43. Andon Implement corrective action Quality in station Inspection and Feedback Open Communication Teamwork Improved Productivity ENABLERS BENEFITS 5 Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4

44. Andon Team System Team Leader Ratio Clear Standards Problem Solving Process Employee Training Standardized Work Mutual Trust/Respect Process Capability Implement corrective action Quality in station Inspection and Feedback Open Communication Teamwork Improved Productivity ENABLERS BENEFITS Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4 4

45. Lean Principle: Short Lead Time Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

46. Lean Principle: Short Lead Time (Just-in-Time Elements) Simple Process Flow (Single Part Flow, Quick Set Up) Small Lot Packaging Level Order Schedules Pull Systems

47. Flow All process steps occur in tight sequence (continuous flow), with little or no waiting?

48. Pull Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.

49. TRY TO SCHEDULE ONLY 1 POINT FLOW WHERE YOU CAN, PULL WHERE YOU CAN’T Schedule Supermarket Schedule

50. CONTINUOUS FLOW PROCESSING Batch & Push Processing 12 Minutes for total order 21 minutes for first piece Continuous Flow “make one, move one” 3 Minutes for first piece

51. One Piece Flow - Order entry - Before File Batch Enter Batch Stack and Hold Acknowledge Orders Calculate Batch Total Batch Orders Open Mail

52. One Piece Flow - Order Entry – After File Order Enter One Order Acknowledge One Order Open One Envelope

53. Leveling - Heijunka Uneven customer demand creates a challenge Variation & fluctuation in volume (spiky customer demand) can lead to waste In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation

54. Leveling Production Schedule Monday…….400 A Tuesday……100 A, 300 B Wednesday..200 B, 200 C Thursday…. .400 C Friday……….200 C, 200 A No Good Daily: 140 A, 100 B, 160 C Better: Every Part Every Day 50 B, 70 A, 80 C 50 B, 70 A, 80 C Monday Even Better: Every Part Every Ship Window

55. Why have small lots and leveling? Small Lot Strategy Shortens Cycle Time (The amount of time it takes to complete the task) Reduces Excess Inventory Improves Responsiveness Production Leveling Minimizes Stocks of Finished Products Reduces Fluctuations in Flow Balances Workload

56. Lean Principle: People Involvement Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

57. Multifunctional Workers Minimal (or no) Job Description Silos Rotate Jobs Perform Several Tasks Balance the Workload Standard Work

58. Lean Principle: Standardization Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

59. Standardized Work The best combination of people, equipment and material to meet customer demand. An agreed upon set of work procedures to establish the best sequence for each process. Start at a baseline and continuously improve If there is no standard, there is no improvement

60. Standardized Work Standardized work is used when there is a definable, repeatable process. Materials Production Office Everyone can perform standardized work

61. Standardized work yields: Shorter lead time Reduced work-in-process Reduced wait time More flexibility, less waste Ability to identify and fix problems Reduced handling Better response to customer demand Balanced workload

62. TAKT TIME – Component of Standardized Work Synchronizes Pace of Production to Match Pace of Demand Rate for producing a product, and its components, based on rate of delivery. Available Time Takt Time = Customer Requirement / Demand

63. Lean Principle: Continuous Improvement Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

64. Continuous Improvement Everything Can Be Improved. Problems Are Opportunities. “No Problem” is a Problem. Worker’s Ideas Are a Source of Improvement Continuous Improvement (Kaizen) Teams Problem Solving Job Rotation Total Productive Maint. Suggestion Program Steps to Improvement Improve, Standardize, Stabilize and Repeat. The Continuous Improvement Cycle Standardization Improvement Standardization Standardization Standardization Improvement Improvement

65. Continuous Improvement Standardized Work contributes to continuous improvement by: Documenting the current best practice that provides a base from which to improve Creating the stability necessary to make changes Providing the tools to make waste highly visible

66. Lean Principle: Standardization Continuous Improvement Standardization Built-In-Quality Short Lead Time People Involvement

67. Workplace Management Workplace Organization - 5S Process Standardized Work Visual Management Grasp the Situation

68. Workplace Management Continuous Improvement to Eliminate Waste Add Value- added Work; Standardize Grasp Current Situation Repeat

69. Where you have problem points in the flow… Set up checks for Quality, Timing, Output Make Progress and Problems Visible Visual Management Process Step 1 Process Step 2 Process Step 3 Process Step 4

70. E-Toyota Application of Heijunka Box

71. Takt Time Bar Chart

72. Future State Questions Relating to Improving Delivery and Flow What are the customer requirements? Where and how will you trigger and sequence work? How will you make work flow smoothly? How will you establish rhythm to pace the work and surface problems? How will you make the progress and delays of the work visible? What process improvements are necessary to achieve your Value Stream vision?

73. Future State Mapping

74. Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Value Stream

75. Future State Questions Relating to Improving Delivery and Flow What are the customer requirements? Where and how will you trigger and sequence work? How will you make work flow smoothly? How will you establish rhythm to pace the work and surface problems? How will you make the progress and delays of the work visible? What process improvements are necessary to achieve your Value Stream vision?

76. Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible? Process improvements? Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Clarify deductions Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day John XOXO IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN COMBINE PROCESSES Stand. Work Accordion File FIFO Customer Incentive

77. Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible? Process improvements? Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Clarify deductions Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day John XOXO IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN COMBINE PROCESSES Stand. Work Accordion File FIFO Customer Incentive

78. Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible? Process improvements? Jack’s Taxes - Current State 40 clients Sort receipts & documents Confirm deductions Mail forms Tax forms to client by 4/10 Receipts & Documents Notify of missing documents Clarify deductions Reminder post-card Review & sign forms Send reminder Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% Missing documents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day John XOXO IN IN IN Print & Collate forms TS IN Prepare worksheet TS P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN COMBINE PROCESSES Stand. Work Accordion File FIFO Data entry Worksheet training Individual 1040, 1040EZ training Reduce process time to 75 min Standardize Work Customer Incentive

79. 40 clients Mail forms forms to client Complete Accordion File Checklist & Accordion File Jack’s Taxes Future State Check & sign forms Send Reminder Client max 1 day max 1 day XOXO 1 per day Over 8 weeks Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day Customer Requirements: Tax Forms completed accurately Finished before filling time Lowest possible cost W/T P/T FTQ 100 min 2 days 98 % 2 days, 100 min 10 min 75 min 15 min 10 min 1 day 1 day John 10 min 100% John 75 min 98% Jack 15 min 1 day 100% John 10 min 1 day 100% 98 % 100 % 100 % 100 % IN IN Data entry + print forms FS FIFO P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ

80. Measurable Metrics & Performance 98% 2 Days, 100 Min. 100 Min. Target from Future State Map 4.7% 7 Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SP QRC

81. Summary of Results – Potential Impact Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time. FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity. Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster. Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients. Reduced personal overtime – Jack does not stay late signing returns anymore. This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically, …

82. Implementation Planning

83. Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Value Stream

84. Current State The Methods / Action Steps are how you will get there Future State Changes The specific changes (Kaizen Bursts) needed to move from CS to FS are your Objectives

85. Business Plan Deployment (BPD) is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change

86. BPD Elements Regular and Consistent Reviews Concrete GOALS Specific OBJECTIVES Clear & Measurable TARGETS A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies Coordination Common Measurements

87. Business Plan Deployment Is a PDCA Cycle 2 1 2 3 4 Plan Do (Communicate & Implement) Check Act (Standardized & Countermeasures) Scorecard Tasks Plant Master Plan Action Annual Business Plan Plan Do Check Act Problem Description Direct Cause Cause Cause Cause Why? Why? Why? Why? Why? Root Cause

88. Leadership’s Role TEACH! Plan Do Check Act

89. Wrap-Up

90. Wrap-up What did you learn today? Did the program meet your expectations? How can we improve this learning event?