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.
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
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-
Built-In-
Quality
Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
Involvement
5. ✦ 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
Standardization
6. ✦ 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.
Do not
Do not
Accept
Build
Ship
a Defect!
a Defect!
Solve problems through teamwork!
Solve problems through teamwork!
Satis
fyyo
u
rCu
s
to
m
e
r...
Satis
fyyo
u
rCu
s
to
m
e
r...
The Built-In-Quality Motto
Built In Quality
7. ✦ 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
Short Lead Time
8. ✦ 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.
Continuous Improvement
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. Process 1 Process 2
Process Time
Wait Time
FTQ
Process Time
Wait Time
FTQ
Value Stream Map Elements
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
18. Using the Value Stream Mapping Tool
Understanding how things
currently operate. This is
the foundation for the
future state.
Scoping the
Scoping the
Value Stream
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. 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
SPQRC
Measurable Metrics & Performance
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
Movement by Push
Electronic Information Flow
Weekly
Schedule
Worker
In Box
(Queue)
IN
MRP
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
Changeover
Kaizen
Lightning
Burst
Iterations
Movement of “physical” property
Reminder post-card
Customer
Process Box
Technology Used
MRP
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
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
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
IN
Receipts &
Docum
ents
Reminder post-card
IN
M
i
s
s
i
n
g
d
o
c
u
m
e
n
t
s
Cla
rify
de
du
ctio
ns
N
otify
of m
issing
docum
ents
Jack’s Taxes - Current State
50%
1 week
P/T
W/T
FTQ
Process Data,
Information Flow,
and Process Flow
28. 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 &
Docum
ents
Reminder post-card
M
i
s
s
i
n
g
d
o
c
u
m
e
n
t
s
Cla
rify
de
du
ctio
ns
N
otify
of m
issing
docum
ents
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
Total Leadtime
and FTQ
-----
Total of P/T
= 140 minutes
Total of W/T
= 7wks, 2days
Jack’s Taxes - Current State
X X X X X
---- ---- ---- ----
Total Lead Time
= 7 wks, 2 days, and
140 min.
Product of FTQ
= 4.7%
29. 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
SPQRC
Measurable Metrics & Performance
30. Jack’s Taxes - Current State
IN
40 clients
Sort
receipts &
documents
Confirm
deductions
Mail
forms
IN
Tax forms to client by 4/10
Receipts &
Documents
IN
Notify of m
issing
docum
ents
Reminder post-card
Print &
Collate
forms
TS
Review &
sign forms
IN
Send
reminder
Prepare
worksheet
TS
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%
M
issing
docum
ents
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
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
C
la
r
if
y
d
e
d
u
c
ti
o
n
s
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
FORMS
OF
OF
WASTE
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
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)
Unreasonable
-ness
Unevenness
Employee assigned two
jobs due to understaffing
End of month deadline
causing overtime; all
projects scheduled in 1Q
with none in 2nd
Delays in getting
needed
information,
approvals, or
decisions
35. 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 &
Docum
ents
Reminder post-card
M
i
s
s
i
n
g
d
o
c
u
m
e
n
t
s
Cla
rify
de
du
ctio
ns
N
otify
of m
issing
docum
ents
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
-----
Jack’s Taxes - Current State
MM
W W
I I I I I
P
P P
C
C
C
C
O
36. Lean Principle: Built-In-Quality
Lean Principle: Built-In-Quality
Continuous
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-Quality
Built-In-Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
Involvement
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:
Lean Principle:
Continuous Improvement
Continuous Improvement
Continuous
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-Quality
Built-In-Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
Involvement
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
Lean Principle: Short Lead Time
Continuous
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-Quality
Built-In-Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
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
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
Continuous Flow “make one, move one”
3 Minutes for first piece
12 Minutes for total order
21 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. 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
Leveling
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:
Lean Principle:
People Involvement
People Involvement
Continuous
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-Quality
Built-In-Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
Involvement
57. Multifunctional Workers
• Minimal (or no) Job
Description Silos
• Rotate Jobs
• Perform Several Tasks
• Balance the Workload
• Standard Work
58. Lean Principle: Standardization
Lean Principle: Standardization
Continuous
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-Quality
Built-In-Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
Involvement
59. If there is no standard,
there is no improvement
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
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:
Lean Principle:
Continuous Improvement
Continuous Improvement
Continuous
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-Quality
Built-In-Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
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
Lean Principle: Standardization
Continuous
Continuous
Improvement
Improvement Standardization
Standardization
Built-In-Quality
Built-In-Quality
Short
Short
Lead Time
Lead Time
People
People
Involvement
Involvement
67. • Workplace Organization
- 5S Process
• Standardized Work
• Visual Management
Grasp the
Situation
Workplace Management
69. Where you have problem points in the flow…
Process
Step 1
Process
Step 2
Process
Step 3
Process
Step 4
Set up checks for Quality, Timing, Output
Make Progress and Problems Visible
Visual Management
71. Takt Time Bar Chart
0
5
10
15
20
25
30
Stamping Body Paint Trim Shipping
Departments
(Sec)
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?
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
Scoping the
Value Stream
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
IN
40 clients
Sort
receipts &
documents
Confirm
deductions
Mail
forms
IN
Tax forms to client by 4/10
Receipts &
Documents
IN
Notify of m
issing
docum
ents
C
la
r
if
y
d
e
d
u
c
ti
o
n
s
Reminder post-card
Print &
Collate
forms
TS
Review &
sign forms
IN
Send
reminder
Prepare
worksheet
TS
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%
M
issing
docum
ents
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
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
Takt Time = Available time / Customer Requirements
= 40 days / 40 Clients = 1 per day
IN
COMBINE PROCESSES
Stand.
Work
John
A
c
c
o
r
d
i
o
n
F
i
l
e
XOXO
FIFO
Customer
Incentive
77. • Customer requirements?
• Work flow smoothly?
• Trigger & sequence work?
• Rhythm (leveling)?
• Progress & delays visible?
• Process improvements?
Jack’s Taxes - Current State
IN
40 clients
Sort
receipts &
documents
Confirm
deductions
Mail
forms
IN
Tax forms to client by 4/10
Receipts &
Documents
IN
Notify of m
issing
docum
ents
C
la
r
if
y
d
e
d
u
c
ti
o
n
s
Reminder post-card
Print &
Collate
forms
TS
Review &
sign forms
IN
Send
reminder
Prepare
worksheet
TS
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%
M
issing
docum
ents
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
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
Takt Time = Available time / Customer Requirements
= 40 days / 40 Clients = 1 per day
IN
COMBINE PROCESSES
Stand.
Work
John
A
c
c
o
r
d
i
o
n
F
i
l
e
XOXO
FIFO
Customer
Incentive
78. • Customer requirements?
• Work flow smoothly?
• Trigger & sequence work?
• Rhythm (leveling)?
• Progress & delays visible?
• Process improvements?
Jack’s Taxes - Current State
IN
40 clients
Sort
receipts &
documents
Confirm
deductions
Mail
forms
IN
Tax forms to client by 4/10
Receipts &
Documents
IN
Notify of m
issing
docum
ents
C
la
r
if
y
d
e
d
u
c
ti
o
n
s
Reminder post-card
Print &
Collate
forms
TS
Review &
sign forms
IN
Send
reminder
Prepare
worksheet
TS
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%
M
issing
docum
ents
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
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
Takt Time = Available time / Customer Requirements
= 40 days / 40 Clients = 1 per day
IN
COMBINE PROCESSES
Stand.
Work
John
A
c
c
o
r
d
i
o
n
F
i
l
e
XOXO
FIFO
Data entry
Worksheet
training
Individual
1040, 1040EZ
training
Reduce process time
to 75 min
Standardize Work
Customer
Incentive
79. IN
40 clients
Mail forms
form
s to
client
Com
plete
Accordion
File
Checklist &
Accordion File
Jack’s Taxes
Future State
Check &
sign forms
IN
Send
Reminder
Data entry
+
print
forms
FS
Client
FIFO
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
P/T
W/T
FTQ
P/T
W/T
FTQ
P/T
W/T
FTQ
P/T
W/T
FTQ
John
10 min
100%
John
75 min
98%
Jack
15 min
1 day
100%
John
10 min
1 day
100%
98 % 100 %
100 %
100 %
80. 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
SPQRC
Measurable Metrics & Performance
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, …
83. 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
Scoping the
Value Stream
Value Stream
Using the Value Stream Mapping Tool
84. Current
Current
State
State
The Methods / Action Steps
The Methods / Action Steps
are how you will get there
are how you will get there
Future
State
Changes
The specific changes
The specific changes
(Kaizen Bursts) needed to
(Kaizen Bursts) needed to
move from CS to FS are
move from CS to FS are
your Objectives
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
87. Business Plan Deployment
Is a PDCA Cycle
2
Tasks
Plant Master Plan
A
c
ti
o
n
Annual
Business
Plan
1
2
3
4 Plan
Do (Communicate & Implement)
Check
Act (Standardized & Countermeasures)
Scorecard
Plan
Do
Check
Act
Problem Description
Direct Cause
Cause
Cause
Cause
Why?
Why?
Why?
Why?
Why?
Root
Cause
