1 / 36

Value Stream Mapping

[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations]

oeconsulting
Download Presentation

Value Stream Mapping

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Value Stream Mapping 1 © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg Learning Objectives 1. Gain an overview of Lean concepts and principles 2. Gain in-depth understanding about your current work systems and the related barriers to delivering value 3. Design a future state that enables outstanding performance 4. Develop action plan to achieve the future state and lay the foundation for continued improvement 2 © Operational Excellence Consulting. All rights reserved.

  3. Outline 1. Overview of Lean Concepts and Principles 2. Introduction to Value Stream Mapping 3. Value Stream Mapping Icons 4. Phase 1: Define Product Family 5. Phase 2: Document Current State 6. Phase 3: Design Future State 7. Phase 4: Create Implementation Plan 3 © Operational Excellence Consulting. All rights reserved.

  4. Value Stream Defined § Value Stream - All of the activities, required to fulfill a customer request from order to delivery Value Stream Process 1 Process 3 Process 3 Customer Request Customer Receipt 4 © Operational Excellence Consulting. All rights reserved.

  5. Value Stream Mapping vs. Process Mapping Value Stream Mapping Process Mapping § Considers the whole value stream § Concentrates on a single process § Identifies non-value-added activities between processes § Identifies non-value-added activities within a process § Improvements to system are usually significant but difficult to achieve § Improvements to process are usually small but easy to implement § Enables long-term strategy to be planned § Enables short-term tactical planning 5 © Operational Excellence Consulting. All rights reserved.

  6. The Work We Do: Degrees of Granularity Value Stream Value Stream Map Strategic Process Process Process Tactical Metrics-Based Process Map Step Step Step 6 © Operational Excellence Consulting. All rights reserved.

  7. Value stream mapping provides an overview of the end-to-end business process Information flow Management Control Supplier Customer Work & Information Flow • Creates an end-to-end view of the system • Demonstrates interaction between material/work and information flow • Provides a common visual language for understanding a complex system 7 © Operational Excellence Consulting. All rights reserved.

  8. Iterative Cycles from Current State to Future State Next Future State Improvement A P C D Future State Improvement A P A S C D C D Maintenance Current State A S C D Maintenance 8 © Operational Excellence Consulting. All rights reserved.

  9. Value Stream Mapping Process § Develop implementation plan § Define and scope problem 4 § Seek management approval § Pick product family Create Implementation Plan § Determine VSM objective and benefits Define Product Family § Implement the plan and monitor progress § Create VSM charter 1 3 Design Future State § Develop future state value stream map Document Current State § Map current state value stream § Prioritize improvement projects 2 § Quantify current state value stream performance § Analyze and identify improvement opportunities 9 © Operational Excellence Consulting. All rights reserved.

  10. Basic Mapping Icons External Organization Push Arrow Operator / Employee Material Receipts & Shipments Work-in-Process Go See Scheduling Process Block Manual Information Flow CT = 25 min C/O = 25 min In-box 2 Shifts Movement by Truck Takt = 60 min Electronic Information Flow Data Block Hours Hours Hours Lead Time Minutes Minutes Cycle Time Minutes Minutes Timeline 10 © Operational Excellence Consulting. All rights reserved.

  11. Value Stream Mapping Icons Symbol Name Description Represents an electronic flow of electronic data or information. Electronic Information Flow Represents the general flow of information. Manual Information Flow Represents a visual inspection or gathering of information. Go See Scheduling Represents a timeline where activities are considered as value- adding. Represents a timeline where activities are considered as non value-adding. Timeline (Value-Adding Time) Timeline (Non-Value-Adding Time) 11 © Operational Excellence Consulting. All rights reserved.

  12. Value Stream Mapping Process § Develop implementation plan § Define and scope problem 4 § Seek management approval § Pick product family Create Implementation Plan § Determine VSM objective and benefits Define Product Family § Implement the plan and monitor progress § Create VSM charter 1 3 Design Future State § Develop future state value stream map Document Current State § Map current state value stream § Prioritize improvement projects 2 § Quantify current state value stream performance § Analyze and identify improvement opportunities 12 © Operational Excellence Consulting. All rights reserved.

  13. Scoping: Define a Product Family Group Product Families by similar downstream processes, steps or equipment Product family: • The characteristics of a product family are that the products go through the same – or nearly the same – processes (same flow) and that the products have similar process times. Processes Weld. Machining Drilling Assy* Pack* 1 X X 2 3 4 X 5 6 X X X 7 8 9 10 A B C D E F X X X X X X X X X X X X Product family X Products X X X X X X * The two work stations at assembly and packaging respectively are similar. Therefore they are considered as one work station in this analysis. 13 © Operational Excellence Consulting. All rights reserved.

  14. Value Stream Mapping Charter Value Stream Mapping Charter Accountable Parties Scope Schedule & Logistics Value StreamValue Stream being improved Executive SponsorDirector, VP or C-level Event Date(s)3 days typically What circumstances are included and excluded? (e.g type of customer, geographic location, etc.) Specific Conditions Value Stream ChampionIf needed - often director or manager level Start/End TimesStart and end times Customer DemandHow many times is this done per wk, mth, yr? Facilitator / VSM ManagerSkilled person leading the activity LocationNeed ample wall space TriggerWhat need does the value stream address? First StepTask on first process block Last StepTask on last process block Boundaries & LimitationsWhat is the team NOT authorized to change? FS Implementation TimeframeTypically 90-120 days Current State Problems & Business Needs 1 What's driving the need for improvement? 2 3 4 5 Measurable Target Condition 1 Reduce <defined metric> from X to Y (Z% improvement) 2 3 4 5 Benefits to Customers 1 How will internal/external customers benefit as a result 2 of improvements to the value stream? 3 4 5 Benefits to Business 1 What other benefits will the business or internal customers 2 realize as a result of improvements to the VSM? 3 4 5 Meals Provided?Always a nice touch; keeps the team from wandering. Interim Briefing(s)Aid in consensus building and organizational learning. Team LeadNot always needed The person arranging logistics (reserving the room, ordering food, sending meeting notices, etc.) Coordinator Briefing AttendeesList required attendees; others are optional. Mapping Team Function / Role Leadership-heavy Name Contact Information 1 2 3 4 5 6 7 8 9 19 On-Call Support Function / Role SMEs that may not be needed full time Name Contact Information 1 2 3 4 Approvals Executive Sponsor Value Stream Champion Facilitator / VSM Manager Signature: Date: Signature: Date: Signature: Date: 14 © Operational Excellence Consulting. All rights reserved.

  15. Step 2: Define Process Blocks Step 2 – Define Process Blocks § Identify all blocks in the process (suggested target: 5-15 blocks) – Each block (post-it) contains an activity or group of activities that occur before a significant break in the timeline occurs (typically build up of WIP or handoff) Process D Process C Process B Process A 15 © Operational Excellence Consulting. All rights reserved.

  16. Step 5: Add Data Lead Time vs. Cycle Time SCENARIO 1 Lead Time Cycle Time Work received Work passed to next step LT = CT + Waiting / Delays 16 © Operational Excellence Consulting. All rights reserved.

  17. Step 5: Add Data 3 Types of Work-in-Process (WIP) Waiting to be processed Completed, but not yet passed on Currently in process Process 3 Process 2 Process 1 X items 15 items 7 items Y items 10 items Total WIP at Process 2 = 32 items 17 © Operational Excellence Consulting. All rights reserved.

  18. Step 5: Add Data Post-It Conventions 3 Process # Enter Order Process (Verb/Noun) Order Entry Rep Function # Staff (if relevant) = 4 Significant Barriers to Flow Batch 2X daily 15 min 4 hr Cycle Time 90% Quality Lead Time 18 © Operational Excellence Consulting. All rights reserved.

  19. Step 5: Add Data Depicting e-Information Flow I.T. I.T. Application Application Arrow pointing to I.T. application: Staff enters data Two-headed arrow: Staff views and enters data Process Block Process Block I.T. Application #1 I.T. Application #2 I.T. Application Arrow pointing from I.T. application: Staff views data Lightning bolt arrow: Application #1 auto-populates application #2 Process Block 19 © Operational Excellence Consulting. All rights reserved.

  20. Step 5: Add Data Current State Value Stream Map: Manufacturing Process ILLUSTRATIVE Forecasts = 30 days Continuous forecasts MRP Suppliers Component A = 35 pcs per/day. Orders are placed on demand. Lead time from order is placed= 2 days. Customers Demand all families = 100 pcs/day. Demand family A = 35 pcs/day. 2 shifts. Takt time = 532 sec. Daily orders Daily orders Weekly plan Machining Ct = 420s Co = 20m Up = 70% ☺ = 1 Shifts = 3 Drilling Ct = 145s Co = 15m Up = 50% ☺ = 1 Shifts = 2 Welding Ct = 185s Co = 8m Up = 70% ☺ = 1 Shifts = 2 Assembly Ct = 360s Co = 7m Up = 80% ☺ = 1 Shifts = 2 Packaging Ct = 40s Co = 3m Up = 15% ☺ = 1 Shifts = 2 2030 pcs 210 pcs 315 pcs 175 pcs 70 pcs 1470 pcs = 122 days 58 days 6 days 9 days 5 days 2 days 42 days 420 sec 145 sec 185 sec 360 sec 40 sec =1150 sec. 20 © Operational Excellence Consulting. All rights reserved.

  21. Step 5: Add Data Current State Layout: Manufacturing Process ILLUSTRATIVE Drilling (20) Welding (28) Assembly (34) D 18 A A A 16 24 A 30 A 19 20 D 21 17 31 23 22 29 C 32 D 27 C F 34 35 33 C 25 E 28 15 26 37 38 36 3 OFFICE 1 F 39 C 14 42 Packaging (44) A B 13 41 43 12 G 44 A 40 45 11 A 4 46 7 C A A 2 B 10 8 5 9 47 A 6 48 G 49 50 X Transport using truck or man Machining (10) X Inventory or buffer stocks 51 X Value adding process C 21 © Operational Excellence Consulting. All rights reserved.

  22. Step 5: Add Data Current State – Leveling of Cycle Times Manufacturing Process ILLUSTRATIVE • Calculation of takt time: Takt time (3 shifts) = 799 sec. = Lost time Bottleneck Takt time (2 shifts) = 532 sec. • From this figure it is visible why the flow is bad in the current production. The bad flow also causes inventory between all processes. § Takt time = (2 x 7.4 x 3600)* / 100 pcs. = 532 sec. 600 § The daily demand from the packaging process is 100 pcs. 30% 500 20% 400 § The packaging process runs 2 shifts. 300 Machining 420 sec. 50% 30% Assembly 360 sec. 200 • The takt time is 532 sec. based on 2 shifts. It is also clear that 2 shifts is not enough on the machining process. ready for shipping. 85% 185 sec. Welding 145 sec. Drilling 100 • For every 532 seconds there must be a new product 40 P. Sec. * 2 shifts x 7.4 hours per shift x 3600 seconds per hour 22 © Operational Excellence Consulting. All rights reserved.

  23. Step 7: Identify VA & NVA Steps Step 7: Identify VA & NVA Steps 1. Identify all value-adding steps 2. Identify all sustaining non-value-adding steps 3. Identify all non-value-adding steps Enter Order Check Credit Approve Order Customer Rep Finance Sales Rep Sustaining Non-Value-Adding (SNVA) Value-Adding (VA) Non-Value-Adding (NVA) 23 © Operational Excellence Consulting. All rights reserved.

  24. Step 7: Identify VA & NVA Steps The analysis and redesign requires a clear understanding of: Value Added, Non Value Added & Sustaining Activities VA The value related attribute of an activity can only be assessed in the context of the process, never in isolation – Consider other activities upstream and downstream NVA Non Value Added activities are those that are not necessary to deliver the customer’s requirements and can be eliminated in the re-design – These are colored red on the flowcharts Value Added activities are those absolutely necessary to deliver the customer’s requirements – These are colored green on the flowcharts – They are later re-designed into the new process VA NVA SNVA Sustaining activities are those that are not necessary to deliver the customer’s requirements but are either: – absolutely necessary to sustain the business or: – cannot be eliminated due to known severe constraints (often external) – These are colored blue on the flowcharts – They are later re-designed into the new process SNVA Sustaining activities are targeted for gradual elimination during the Continuous Improvement process 24 © Operational Excellence Consulting. All rights reserved.

  25. Step 7: Identify VA & NVA Steps Typical Current State Findings Sustaining Non Value Add Non Value Add Delivery Request Value Add 25 © Operational Excellence Consulting. All rights reserved.

  26. Step 7: Identify VA & NVA Steps Current State Typical Findings Work Effort as Defined by the External Customer Value Add (VA) Sustaining Non-Value Add (SNVA) Non-Value Add (NVA) 26 © Operational Excellence Consulting. All rights reserved.

  27. Step 7: Identify VA & NVA Steps Common Current State Findings § Loopbacks § Excessive inspection (review, approval, audits) § Unnecessary handoffs § Overspecialization of staff § Rework due to errors and lack of clarity § Existing technology not fully leveraged § Functions missing or getting involved too early or too late in the process § Underutilization of skills § Compliance overkill § Redundant activities § Delays due to juggling multiple responsibilities § High variation in how work is performed § Overburden (Muri) § No documented standard work 27 © Operational Excellence Consulting. All rights reserved.

  28. Step 8: Define Goals & Gaps Manufacturing Process: Goals for Future State Design ILLUSTRATIVE • The key goals are: Parameter Current State Goal Half the inventory. § Reduce the number of employees and thereby also the number of shifts. § Value Added Time 0.01% 0.05% Necessary Space 15,000 sq ft -15% Stock “Comp. A” 4,270 pcs. -50% The planning horizon should be reduced to increase the flexibility towards the customers. § Cycle Times OK # Employees 11 9 • Note that the cycle times are not reduced. Focus is on flow! # Shifts Max 3 Max 2 Planning Horizon Week Day 28 © Operational Excellence Consulting. All rights reserved.

  29. Value Stream Mapping Process § Develop implementation plan § Define and scope problem 4 § Seek management approval § Pick product family Create Implementation Plan § Determine VSM objective and benefits Define Product Family § Implement the plan and monitor progress § Create VSM charter 1 3 Design Future State § Develop future state value stream map Document Current State § Map current state value stream § Prioritize improvement projects 2 § Quantify current state value stream performance § Analyze and identify improvement opportunities 29 © Operational Excellence Consulting. All rights reserved.

  30. Future State Value Stream Map: Manufacturing Process ILLUSTRATIVE Forecasts = 30 days Continuous forecasts MRP Suppliers Component A = 35 pcs per/day. Orders are placed on demand. Lead time from order is placed= 2 days. Customers Demand all families = 100 pcs/day. Demand family A = 35 pcs/day. 1 shift. Takt time = 266 sec. Daily orders Daily orders Daily planning Daily plan U-cell Physical layout Flow between work stations etc. Kanban Kanban Orders Machining Ct = 420s Co = 5m Up = 85% ☺ = 1 Shifts = 2 U-Cell Ct = 250s Co = 1-3m Up = 65-80% ☺ = 4 Shifts = 1 Changeover times Increase OEE Task distribution Goal 700 pcs Goal 140 pcs Goal 70 pcs Changeover time Increase OEE = 26 days 20 days 4 days 2 days 420 sec Sum = 730 sec =1150 sec. 30 © Operational Excellence Consulting. All rights reserved.

  31. Future State Layout: Manufacturing Process ILLUSTRATIVE Kanban racks (10) Machining (6) D B 2 6 4 A A 5 L L 7 F 8 G 9 C 3 1 B C L L 10 C 23 OFFICE 27 D 21 11 24 22 20 G 26 12 F 25 19 13 G D 14 18 F 15 E 16 17 X Transport using truck or man X Inventory or buffer stocks (incl. Kanban) X Value adding process Drilling (20) Welding (28) Assembly (34) Packaging (44) 31 © Operational Excellence Consulting. All rights reserved.

  32. Future State – Leveling of Cycle Times Manufacturing Process ILLUSTRATIVE = Lost time 600 Takt time (2 shifts) = 532 sec. • Four of the five processes can be leveled. The machining cannot follow the same takt time as the other four. Kanban* is implemented after machining. • From this figure it is visible why the flow is bad in the current production. The bad flow also causes inventory between all processes. • The takt time of 266 sec. is now calculated for 1 shift. 500 15 % Kanban* stock control 400 300 Takt time (1 shift) = 266 sec. Machining 420 sec. 20% 20 20 % % 35% 200 Packaging Assembly 200 sec. 200 sec. 185 sec. Welding 145 sec. Drilling 100 • The takt time is 532 sec. based on 2 shifts. It is also clear that 2 shifts is not enough on the machining process. Sek. • Flow can be created between the four processes. * Kanban stock control means that a minimum and maximum stock level is defined per code number. The stock should be replenished up to maximum when it reaches the minimum level. 32 © Operational Excellence Consulting. All rights reserved.

  33. PACE Prioritization Matrix Easy Projects/Kaizens Priority Ease of Implementation Action Consider Difficult Eliminate High Low Anticipated Benefit 33 © Operational Excellence Consulting. All rights reserved.

  34. ILLUSTRATIVE Future State Implementation Plan Value StreamOutpatient Imaging Implementation Plan Review Dates Executive SponsorAllen Ward 11/01/2007 Value Stream ChampionSally McKinsey 11/21/2007 Value Stream Mapping FacilitatorDave Parks 12/13/2007 Date Created10/18/2007 01/10/2008 Implementation Schedule (weeks) 3 4 5 6 Date Block # Goal / Objective Improvement Activity Mode Owner 2 7 8 9 10 11 12 Complete 1 Sean O’Ryan Implement standard work for referral process Kaizen 2 Improve the quality of referral Reduce lead time between scheduling and preregistration steps Eliminate the need for two patients check-ins Eliminate bottleneck in waiting area Eliminate lead time associated with transcription step Dianne Prichard Project 3, 4 Cross-train and co-locate work teams Michael O'Shea Dianne Prichard Kaizen 5, 6 Collect copays in Imaging Kaizen 6 Balance work / level demand Project Sam Parks 8 Implement voice recognition technology Kaizen Sam Parks 10 Eliminate batch reading Reduce setup required Reduce inventory costs, regulatory risk and storage needs Michael O'Shea Kaizen 7 5S CT supplies area; implement kanban Project Martha Allen 12 Reduce delay in report delivery Implement additional fax ports Increase percentage of physicians receigin electronic delivery (rather than hard copy) Kaizen Martha Allen 12 Reduce delay in report delivery Approvals Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator Signature: Signature: Signature: Date: Date: Dates: 34 © Operational Excellence Consulting. All rights reserved.

  35. Value Stream Mapping: Summary Draw Customer Requirements Draw Supplier Box Draw Management Control Box Draw Customer Box Draw Draw Draw Push/ Pull Systems Draw Transport to Production Production/ Service Flow Communication Arrows Analyze Value Stream Map Develop Future State Map Identify Kaizen Opportunities Finalize Measurements 35 © Operational Excellence Consulting. All rights reserved.

  36. Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg 36 © Operational Excellence Consulting. All rights reserved.

More Related