Value Stream Mapping Quick Start Defining A Value Stream • A series of steps that must be performed in the proper sequence to create value for a customer • The complete value stream includes information flow and product or material flow • The value stream includes all steps; value-added and non value-added If there is a product, service or process for a customer, there is a value stream. 2 Employ Improvement Initiatives Why Value Stream Map? • Helps you visualize more than just the process level • Allows you to see the sources of waste • Define key leverage points for improvements • Displays linkage between information and material flow - Admin processes may show linkage between information flow and the actions that result from the information flow VSM creates a common understanding of reality and the improvement possibilities. 3 Employ Improvement Initiatives Value Stream Levels Process Level Facility Level (Cell or Department) Extended Value Stream Multiple Facilities: (Includes Suppliers & Customers) Choose the level appropriate for your scope. 4 Employ Improvement Initiatives The VSM Process Overview Current State Identify key process steps for delivering product/service to customer Utilize information from “go see” (Gemba) or interviews Include key metrics with each step Include lead time and cycle time data Identify Undesirable Observations (UDO’s) Determine data gaps that need to be collected Identify flow of information from end customer to beginning of process Include systems that provide information Record the frequency and type of information If information is your “product” you can identify origin of information Determine if the Value Stream steps are VA or NVA Analyze wastes and determine improvements Develop action plan to make improvements 5 Employ Improvement Initiatives 7 Steps to Utilizing a Value Stream Map 1. 2. 3. 4. 5. Identify scope of the Value Stream Map Identify VSM team lead and participants Organize and conduct a tour of area to “go see” Map the high level process and gather key data Identify the value stream (product/process alignment and the critical path) 6. Create the Current State Value Stream Map • Material Flow • Information Flow • VA/ NVA classification 7. Identify the Waste • Identify areas of opportunities for improvement • Develop an Action Plan to make the improvements 6 Employ Improvement Initiatives Step 3: “Go See” the Product/Service If the process is visible: • Process map at high level • Walk the process and record individual process steps, UDOs*, cycle time, distance, # of people, quality, etc. • Ask operators questions • Note metrics, materials, machines, WIP**, finished goods If the process is not visible: • • • • • • • Create detailed process map Include UDOs, cycle time, distance, # of people, quality, etc. Provide process map to all operators Interview employees involved in process Analyze portions of process which are visible Utilize VOC surveys to collect key data points Validate findings with operators *UDO (Undesirable Observation) – any observation about the process that is not ideal **WIP (Work In Process inventory) – inventory that is contained in the process 7 Employ Improvement Initiatives Step 4: Map the High-Level Process Example: Generating an estimate for a customer 2 days between processes Gather Info Input Boundary Analyze Info Develop work-up 30 minute cycle time Input data into file Collect Sub-quotes On-Line Tool 6 people involved Prepare Estimate Approval Meeting WIP Output Boundary • Having 4 to 10 process steps is common • Review the scope if you have more or less • Consolidate detailed process steps into higher level value stream steps • Determine key data to collect, WIP, Distance, Time, # of people, quality, etc. • Capture any variation within the process 8 Employ Improvement Initiatives Step 4: Identify Key Data Elements Example: Generating an estimate for a customer Gather Info Cycle Time: Analyze Info Who: Missing data to be collected prior to VSM 9 24 hrs 2 hrs 48 hrs 1 Transport: WIP: Input data into file 4 hrs Wait Time: # of People: Develop Takeoff 2 1 1 8 hrs Ops 4 Sales/Ops Approval Meeting 8 hrs 2 Phone 2 Prepare Estimate 2 hrs 24 hrs Manual 2 Collect Sub-quotes 6 E-mail 3 Sales/Ops E-Mail 3 Sales Sales • If data not available, use averages based on operators assessment • Check old records, files, reports, etc. • Additional data collection by surveys/interviews • Finalize data during the “Identify Materials Flow” step Employ Improvement Initiatives Step 5: Identify the Value Stream • Determine critical path and area for improvement “Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.” Learning to See by Rother and Shook 10 Employ Improvement Initiatives Value Stream Map – Operational example DOWNTIME 15% REC STAGE WIP 870 WIP 696 QTIME QTIME 72H 8 MELT 903M INSP CHEM Hold Furnace Cast 903 LOT 75K P/T 8H WIP 8 COILS 120K P/T 3 HR 15K WIP 6 8 3 P/T 6N DOWNTIME 15.5% INSP PROFILE 7% SCRAP 1. 2. 3. 4. STORE WIP 746K QTIME 8 1OK STAGE WIP 108K 8HR Q/T 8 BREAKDOWN 911 LOT 1 COIL TIME .1 WIP 15K Map major process steps I.D. Value (green/ yellow) / Non-value (red) Capture all times, quantities Prioritize areas to improve LEAD 2231.1 VA 210.1 X SHIPPED PER DAY 850K 1.870 WIP BEING WORKED 4.276 WIP BEING STORED Step 6: Create the Current State VSM • Map the Material Flow • Map the Information Flow • Classify VA and NVA activities 12 Employ Improvement Initiatives VSM Symbols FIFO Information First in First out control max 10 People required Things pulled by next process Electronic Information Things pushed to next process I Waiting Transport Pull system Paper trigger Pull system Returnable container 13 Employ Improvement Initiatives Inventory Pieces In InputBasket Out OutputBasket Step 6: Map the Materials Flow No Process No standard work Cycle Time: Gather Info Analyze Info Develop Takeoff Input data into file Collect Sub-quotes Prepare Estimate Approval Meeting 4 hrs 8 hrs 24 hrs 2 hrs 4 hrs 2 hrs 2 hrs Wait Time: # of People: Too many people 8 hrs 48 hrs 1 2 Transport: Manual 8 hrs 1 Manual WIP: 2 2 Who: Sales Ops 24 hrs 1 E-mail 4 Sales/Ops 8 hrs 2 Phone 1 Sales/Ops 2 E-mail Push • Material flows from left to right 14 Employ Improvement Initiatives E-Mail 2 3 Sales/Ops Sales Sales • Include all key data for each process step • Include UDOs 6 3 • Come to agreement on process steps as a team UDO 8 hrs Step 6: Map the Information Flow Sales Funnel Sales Database Customer Leader 1-5 days 75 Estimates per month Sales Estimator Representative 2-5 days • Information should flow right to left, always starting with customer • Cycle times can be averages or ranges • The more detail you include, the more waste you will see 15 Employ Improvement Initiatives Step 6: Identify VA & NVA Sales Funnel Database Sales Leader Customer 1-5 days 75 Estimates per month Sales Representative Estimator 2-5 days No Process No standard work Gather Info Analyze Info 4 hrs 8 hrs 8 hrs # of People: 1 Transport: Develop Takeoff 24 hrs 48 hrs 2 Manual 2 2 1 Who: Sales Ops VA/NVA VA NVA Sales/Ops VA Prepare Estimate Approval Meeting 4 hrs 2 hrs 2 hrs 24 hrs 1 8 hrs 8 hrs 2 E-mail 4 Collect Sub-quotes 2 hrs 8 hrs Manual WIP: Input data into file Too many people Phone 1 2 E-mail E-Mail 3 Sales/Ops NVA Sales/Ops 2 3 Sales Sales NVA NVA NVA • Customer cares • Changes form, fit or function • Correct 16 Employ Improvement Initiatives 6 Step 7: Use the VSM to Identify Waste • Identify areas of opportunities for improvement • Develop an action plan to make the improvements 17 Employ Improvement Initiatives Step 7: Use the VSM to Identify Waste Sales Funnel Database Customer Sales Leader 1-5 days Sales Representative Estimator 2-5 days No No Process standard work Gather Info Analyze Info 4 hrs 1 2 4 Sales/Ops VA 2 hrs 2 hrs 2 Phone 1 Sales/Ops NVA • Cycle times too long 3 Sales/Ops NVA 8 hrs 2 E-mail 6 E-Mail 2 Sales NVA 3 Sales NVA Time Value Map • Too much “queue time” between steps • No process standardization • Transportation issues • Too many people involved in Approval 18 Approval Meeting 8 hrs 1 E-mail Prepare Estimate 4 hrs 24 hrs 1 Too many people Collect Sub-quotes 2 hrs 8 hrs Manual 2 Ops NVA Input data into file 24 hrs 48 hrs Manual 2 Sales VA Develop work-up 8 hrs 8 hrs # of People: Transport: WIP: Who: VA/NVA 75 Estimates per month Employ Improvement Initiatives 43 days Step 7: Identify Areas of Improvements • Improvements should be made based on waste analysis identified during VSM activity. • Example: Opportunities identified in the Generating an Estimate for a Customer VSM : - Create standard work for operators to follow - Develop “templates” to use when “Developing Quotes” - Remove NVA steps when possible - Streamline information flow from Customer to Estimator - Mitigate interruptions to “flow” estimate (reduce queue time) - Improve policies with Sales to obtain timely quotes - Reduce the number of people required for the “Approval Meeting” 19 Employ Improvement Initiatives Step 7: Create An Action Plan • Action plans are critical to successfully implementing VSM improvements • Determine improvement projects, schedules and owners - Immediate improvements (2 - 5 days): Kaizen Events - Medium term improvements (3-6 months): Lean/ GB projects - Long term improvements (6+ months): Lean Expert/ BB projects 20 Employ Improvement Initiatives Step 7: Create An Action Plan • Identify the high impact improvements and long term and short term actions high Sweet Spot High Hard Just Do It Don’t Do Impact low high Effort 21 Employ Improvement Initiatives Value Stream Mapping Quick Start
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