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Value Stream Mapping (VSM) Overview Presented By: Jeffrey Heaton

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What is Value Stream Mapping? <ul><ul><li>A visual tool to help see and understand the flow of material and information . </li></ul></ul><ul><ul><li>Map of all actions currently required to deliver a Product or Service. </li></ul></ul><ul><ul><li>Big picture perspective that focuses on improving the whole , not optimizing pieces of the process. </li></ul></ul><ul><ul><li>A pencil and paper tool that requires physically observing the process . </li></ul></ul>

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Why Map a Value Stream? <ul><li>To highlight sources of waste & defects and put in place a plan to eliminate them. </li></ul><ul><li>Shows the linkage between the information flow and material flow . </li></ul><ul><li>To see across the functional boundaries over which a service or product’s value stream flows. </li></ul>

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How Value Stream Mapping Helps? <ul><li>Helps visualize the whole flow … not an isolated process. </li></ul><ul><li>Critical step on Roadmap for Lean implementation. </li></ul><ul><li>Excellent tool to describe what actions are needed to meet business goals . </li></ul>

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Uses for Value Stream Mapping <ul><li>To help understand how your business actually works (it is difficult to understand the current process if you can’t draw it). </li></ul><ul><li>A visual tool and common language for talking about your business process. </li></ul>

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Don’t Forget... <ul><li>The point of value stream mapping is not </li></ul><ul><li>about creating the maps, but to really understand the flow of information and material and then use that understanding to improve your business . </li></ul>

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The Art of Value Stream Mapping <ul><li>Value Stream Mapping seeks out WASTE & DEFECTS ! </li></ul><ul><li>This requires you to be sensitive to WASTE & DEFECTS ! </li></ul><ul><li>We recommend: </li></ul><ul><li>You Constantly Look for Waste & Defects ! </li></ul><ul><li>You Constantly Listen for Waste </li></ul><ul><li>& Defects ! </li></ul>

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Value Stream Mapping Process Current State Drawing Process Future State Drawing Work Plan & Implementation Choose a process Understand how the process currently works Design a lean flow Plan how to get there and execute the plan Repeat

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What is a Current State Map? <ul><li>A pictorial view showing how a service, material and information currently flow. </li></ul><ul><li>Emphasis should be on what actually takes place in the field, not just what the governing documents state. </li></ul>

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Why Map the Current State? <ul><li>To see the entire value stream ...not only an isolated operation or process. </li></ul><ul><li>To show the process simply and visually. </li></ul><ul><li>To clarify an organization’s understanding of how the current system “really works”. </li></ul><ul><li>To create a baseline for future improvements to be made and measured. </li></ul>

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Current State Mapping Process Steps <ul><li>Gather information about the customer </li></ul><ul><li>Walk the process - sketch process boxes </li></ul><ul><li>Fill in data boxes and inventory levels </li></ul><ul><li>Document how goods/services are delivered to the customer </li></ul>

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Current State Mapping Process Steps (cont’d) <ul><li>Gather information on suppliers. </li></ul><ul><li>Add information flows. </li></ul><ul><li>Sketch how material moves between processes. </li></ul><ul><li>Draw production lead time/processing timeline. </li></ul>

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Improvement Targets <ul><li>Gather Key Performance Indicators and record for the current state performance </li></ul><ul><li>These metrics will be used to measure improvements gained in the improvement effort </li></ul><ul><ul><li>Current State vs. Future State </li></ul></ul>

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Examples of Improvement Targets <ul><li>Reducing cycle time. </li></ul><ul><li>Reducing inventory. </li></ul><ul><li>Cost / Resource reduction. </li></ul><ul><li>Increasing available capacity. </li></ul><ul><li>Decreasing space. </li></ul><ul><li>Reducing order lead time. </li></ul><ul><li>Reducing scrap, rework or repair. </li></ul>

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What is a Future State Map? <ul><li>Visual representation of improved material and information flow. </li></ul><ul><li>Unites Lean concepts and techniques. </li></ul><ul><li>Used to drive detailed implementation plans. </li></ul>

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Targeting your Future State <ul><li>What type of improvements are needed and why? </li></ul><ul><li>What is the timeframe for achieving improvements? </li></ul><ul><li>Have budgets been established to manage the costs of improvements? </li></ul><ul><li>Are all stakeholders aligned? </li></ul>

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Future State Questions <ul><li>What is the takt time (customer demand frequency) for the chosen service, product or product family? </li></ul><ul><li>Where can you use continuous flow? </li></ul><ul><li>At what single point in the production chain will you trigger (schedule) actions? </li></ul><ul><li>Should you build to customer order or to stock? </li></ul>

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Future State Questions <ul><li>Is there any batching that needs to be done or can it be a “single piece flow”? </li></ul><ul><li>What process improvements will be necessary for the value stream to flow as your future state design specifies? </li></ul>

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Implementation Planning <ul><li>Achieving future state is the goal of value stream mapping. </li></ul><ul><li>Keys to success... </li></ul><ul><ul><ul><li>Tasks identified and scheduled. </li></ul></ul></ul><ul><ul><ul><li>Tasks assigned to individuals or teams. </li></ul></ul></ul><ul><ul><ul><li>Required support obtained. </li></ul></ul></ul><ul><ul><ul><li>Regular reviews to adhere to plan. </li></ul></ul></ul><ul><ul><ul><li>Knowledge and support from management sponsor and leadership team. </li></ul></ul></ul>

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Implementation Planning Guidelines <ul><li>Develop a realistic timeline. </li></ul><ul><li>Prioritized action items supporting the improvement/transition process ( e.g., critical path). </li></ul><ul><li>Hold regular reviews on adherence to the plan. </li></ul><ul><li>Develop a plan to deal with issues/corrective actions. </li></ul><ul><li>Keep management and the workforce informed of any changes that need to be made. </li></ul><ul><li>Maintain the plan and stick to it . </li></ul>

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Value Stream Implementation Plan <ul><li>Plan will show you: </li></ul><ul><li>Exactly what to do and when to do it, Measurable goals. </li></ul><ul><li>Clear milestones. </li></ul><ul><li>The names of those responsible for the task, additional resources required, as well as reviewers. </li></ul><ul><li>How it maps to your business objectives. </li></ul>