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Value
                  Stream
                  Mapping

INPUT   Process   OUTPUT
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?
The Value Stream
Question: What is the 8th waste?   Talent
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.
Tools Needed For a VSM
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.
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
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...
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
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.
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
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
Steps and Waits
Best Time
Worst Time
Input
Output
Issues
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!!!
Production VSM Example
                                             Raw Materials
Previous Run                    Remove
                 Clean Up                    & Supplies to
    Ends                        Tooling
                                               Machine



 Trials Run
                               New Tooling   Raw Materials
  through      Machine Setup
                                Installed      Checked
 machine




Adjustments     More Trials     Samples
                                              Run Starts
   Made           Run           Approved




How long do your changeovers take?
Office VSM Example
• “Some-cool-data-that-everyone-can-use” report
• Originally started as a request
• Starting situation
Acct Mgr                   Admin
                                 Order Entry     Assistant   President
Sales Mgr




                                               Copy
                                               Room               Plant Mgr


Meeting
Room


            Ops Mgr                                               Equipment
                                                                  Room
Office VSM Example
• “Some-cool-data-that-everyone-can-use”
  report
• Originally started as a request
• Options
  – Change her route
Acct Mgr                   Admin
                                 Order Entry     Assistant   CEO
Sales Mgr




                                               Copy
                                               Room                Plant Mgr


Meeting
Room


            Ops Mgr                                                Equipment
                                                                   Room
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
Acct Mgr                   Admin
                                 Order Entry     Assistant   CEO
Sales Mgr




                                               Copy
                                               Room                Plant Mgr


Meeting
Room


            Ops Mgr                                                Equipment
                                                                   Room
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
Thank you!

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Value Stream Mapping

  • 1. Value Stream Mapping INPUT Process OUTPUT
  • 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?
  • 4. Question: What is the 8th waste? Talent
  • 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.
  • 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. 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. 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. 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. 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. 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. 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. Steps and Waits Best Time Worst Time Input Output Issues
  • 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. Production VSM Example Raw Materials Previous Run Remove Clean Up & Supplies to Ends Tooling Machine Trials Run New Tooling Raw Materials through Machine Setup Installed Checked machine Adjustments More Trials Samples Run Starts Made Run Approved How long do your changeovers take?
  • 17. Office VSM Example • “Some-cool-data-that-everyone-can-use” report • Originally started as a request • Starting situation
  • 18. Acct Mgr Admin Order Entry Assistant President Sales Mgr Copy Room Plant Mgr Meeting Room Ops Mgr Equipment Room
  • 19. Office VSM Example • “Some-cool-data-that-everyone-can-use” report • Originally started as a request • Options – Change her route
  • 20. Acct Mgr Admin Order Entry Assistant CEO Sales Mgr Copy Room Plant Mgr Meeting Room Ops Mgr Equipment Room
  • 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. Acct Mgr Admin Order Entry Assistant CEO Sales Mgr Copy Room Plant Mgr Meeting Room Ops Mgr Equipment Room
  • 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

Editor's Notes

  1. Connie > GaryAsk the audience, on a scale of 1-10, what is everyone’s Lean understanding?