Value Stream Mapping

Basics
 Learning Objectives

At the end of this module, you will be able to:

Sketch a basic value stream map

Demonstrate basic value stream analysis

Recognize steps for process improvement

using value stream mapping and analysis

VSM Basics V7.6 - Slide 2

2012 Massachusetts Institute of Technology
 Hot Dog Stand Process Map
$

Image by MIT OpenCourseWare. 11 - Clean up

7 6
1- Take order 9 - Deliver to 8 - Add Yes Order Out
customer beverage OK order
No ?
Yes

5
2 3 - Get order 4 - Put in bun, Another
10 - Set up In Cook dogs wrap, add fruit dog
order
?
No

How can Sasha and Andy improve their productivity

to meet growing customer demand?

VSM Basics V7.6 - Slide 3

2012 Massachusetts Institute of Technology
 Five Lean Thinking
Fundamentals
Specify value: Value is defined by customer in terms of
specific products and services

Identify the value stream: Map out all end-to-end linked

actions, processes and functions necessary for
transforming inputs to outputs to identify and eliminate
waste

Make value flow continuously: Having eliminated waste,

make remaining value-creating steps flow

Let customers pull value: Customers pull cascades all

the way back to the lowest level supplier, enabling just-in-
time production

Pursue perfection: Pursue continuous process of

improvement striving for perfection

VSM Basics V7.6 - Slide 4

Ref: James Womack and Daniel T. Jones, Lean Thinking (New York: Simon & Schuster, 1996). 2012 Massachusetts Institute of Technology
 Value Stream Map (VSM)
A tool used to improve a process by identifying added
value and eliminating waste

A process map that follows the value creation process

strap yourself to the product (or service)
and see where you go

A process map with data added

Times: processing, wait, cycle
Quality: number of rejects
Inventory
Resources
Number of people
Space
Distance traveled
Whatever else is useful for analyzing the process
VSM Basics V7.6 - Slide 5
2012 Massachusetts Institute of Technology
 Steps for Creating a VSM

1. Define customer value and the process

Walk the process to identify tasks and flows
Identify value-added and waste process steps
2. Create the current state VSM
Gather data on resources, time, quality for each step
3. Analyze map to determine opportunities for
improvement
Identify bottlenecks and other flow impediments
Brainstorm actions to eliminate waste and add value
4. Create a future-state map to visualize the
desired and realistic next state
5. Create action plans to move toward future state

VSM Basics V7.6 - Slide 6

2012 Massachusetts Institute of Technology
 Step 1: S&A Customer Value
Current Demand and Process Map
50 customers
100 hot dogs $
$

Customer Value
Good food
11 - Clean up
Image by MIT OpenCourseWare. Faster service

7 6
1- Take order 9 - Deliver to 8 - Add Yes Order Out
customer beverage OK order
No ?
Yes

5
2 3 - Get order 4 - Put in bun, Another
10 - Set up In Cook dogs wrap, add fruit dog
order
?
No

This process map follows the value creation process

Value/waste assessed at each process step
VSM Basics V7.6 - Slide 7
2012 Massachusetts Institute of Technology
 $
Step 2: Add Data
$

T = 48 sec
Image by MIT OpenCourseWare.
Qual = 100%
T = 11 sec
11 - Clean up
T = 60 sec T = 10 sec Qual = 90%
T = 30 sec
Qual = 100% Qual = 100%
Qual = 100%
7 T = 33 sec
6
1- Take order 9 - Deliver to 8 - Add Yes Order
Out
customer beverage OK
order
?
No 10%
Yes

5
2 3 - Get order 4 - Put in bun,
10 - Set up Another
In Cook dogs wrap, add fruit dog
order
?
T = 48 sec
No
Qual = 100%
T = 30 sec
T = 110 sec T = 44 sec T = 22 sec
Qual = 100% Qual = 100%

Display of relevant data completes basic VSM

Images by MIT OpenCourseWare. VSM Basics V7.6 - Slide 8
2012 Massachusetts Institute of Technology
 S&A Takt And Cycle Times
Current demand
Open from 10AM - 2PM
50 customers

Available time 4hrs 60min /hr

Takt time = = = 4.8min = 288 sec
Customer demand 50 customers
Cycle time (summed from previous data) = 7.4 min = 446 sec
Valid alternate calculation
assume setup/cleanup is done when things are slow
10 - Set up 11 - Clean up

Available time 4hrs 50min /hr

Takt time = = = 4.0min = 240 sec
Customer demand 50 customers
Cycle time (excluding set up & clean up) = 5.8 min = 350 sec
Cycle time > takt time, but two workers can demand be met?
VSM Basics V7.6 - Slide 9
2012 Massachusetts Institute of Technology
 Step 3: Value Stream Analysis

Sasha Andy
Image by MIT OpenCourseWare. Image by MIT OpenCourseWare.

With your team, take 15 minutes to

Calculate the total
Value added time
Non value added time
Wait time
Calculate the total touch time that Sasha and
Andy spend on a single order
Be ready to report your answers to the class
VSM Basics V7.6 - Slide 10
2012 Massachusetts Institute of Technology
 Utilization and Capacity
VAT is only slightly over 50% Opportunities for improvement

Available time = 4 hours = 240 min

Worktime: Touch time per order X number of orders

Sashas tasks: /60 min X 50 cust. = _____ min
Andys tasks: /60 min X 50 cust = _____ min

Utilization: Worktime / time available

Sashas: (_____min / 240 min) X 100% = ____%
Andys: (_____min / 240 min) X 100% = ____%

Capacity: Time available / touch time per order

Andy working at 100% = (240min X 60) / _____sec = ___

VSM Basics V7.6 - Slide 11

2012 Massachusetts Institute of Technology
 Utilization and Capacity
VAT is only slightly over 50% Opportunities for improvement

Available time = 4 hours = 240 min

Worktime: Touch time per order X number of orders

133 min
Sashas tasks:159 /60 min X 50 cust. = _____
Andys tasks: 224 /60 min X 50 cust = _____
187 min

Utilization: Worktime / time available

133
Sashas: (_____min 55
/ 240 min) X 100% = ____%
187
Andys: (_____min 78
/ 240 min) X 100% = ____%

Capacity: Time available / touch time per order

224
Andy working at 100% = (240min X 60) / _____sec 64
= ___

We will consider complications like varying orders or

irregularly spaced customers in the Variation Module
VSM Basics V7.6 - Slide 12
2012 Massachusetts Institute of Technology
 Summary - S&A Value Stream
Analysis (VSA)
Current production (50 customers) is a little below
current capacity (64 customers) of Andy and Sasha
Process improvement needed to meet growing
demand
Andy and Sasha are both underutilized
But utilization is not balanced between them
Cycle time of 7.43 min per customer
(or even 5.8 min) too long
Should be able to shorten cycle time to meet
demands of customers for faster service
Bottom Line
Sasha and Andy should implement process
improvement for week 3 to meet growing demand!
VSM Basics V7.6 - Slide 13
2012 Massachusetts Institute of Technology
 Improvement Brainstorm

Sasha Andy
Image by MIT OpenCourseWare. Image by MIT OpenCourseWare.

Help Sasha and Andy figure what to improve

How can utilization be improved?
How can cycle time be reduced?
What has to be done to serve 75 customers?
What has to be done to serve 100 customers?

VSM Basics V7.6 - Slide 14

2012 Massachusetts Institute of Technology
 Brainstorm Bursts
$

Image by MIT OpenCourseWare. 11 - Clean up

NVA
7 6
1- Take order 9 - Deliver to 8 - Add Yes Order
customer beverage Inspection
OK
Out
Order
No ?
Balance Yes
Work 5
2
10 - Set up In
3 - Get order 4 - Put in bun, NVA
Another
Cook dogs wrap, add fruit dog
Order Inspection
?
No

VSM Basics V7.6 - Slide 15

2012 Massachusetts Institute of Technology
 Steps for Creating a VSM
1. Define customer value
2. Create a current state map
Walk the process to identify tasks and flows
Gather data on resources, time, quality for each
3. Analyze map to determine opportunities for
improvement
Identify value-added and waste
Brainstorm actions to eliminate waste and add value
4. Create future-state map to visualize the desired
state
5. Create action plans to move towards future-state

VSM Basics V7.6 - Slide 16

2012 Massachusetts Institute of Technology
 Why is VSM a Useful Tool?

Helps visualize interactions and flows

Shows linkages between information and product

flows

Provides a common language for talking about a

process

Helps to identify:
the constraint(s) - any resource whose capacity is
less than customer demand;
wastes as well as their sources

VSM Basics V7.6 - Slide 17

Adapted from: M. Rother and J. Shook, Learning to See, Lean Enterprise Institute, 1998 2012 Massachusetts Institute of Technology
 Tips for Creating a VSM

Involve entire team

Actually walk the process - follow the material
and information through the process, starting
at the beginning
Use Post-it notes and butcher paper
Use symbols or icons that are meaningful to
the process but common enough to be
understood by all involved

VSM Basics V7.6 - Slide 18

2012 Massachusetts Institute of Technology
 Industrial Strength Example
Jefferson Healthcare Clinic - Current State Map
OVERALL CLINIC DATA - Blocked Hours 67/day

- Cost per visit - $125.39 - Contact Hours 59/day

EXTERNAL - Avg. Pts per hour - 1.83 - Utilization 88%

PROVIDERS
- Available hours per day 67
PATIENT DATA
Med
History - Volumes - 131 visit/day
Enterprise Reg Pkt
Enterprise
Receive call V1
Request Receive EMR Phone call PATIENT - Market share - Hospital 46.7%

& Send Med Med History Input - Cancel by reason - see chart A

registration History & Call to Med History - Payor mix commercial 38%
packet ROS
records Schedule Reception V1 - Satisfaction overall 74.4
Reception Reception Wait for Reception Visit Clinic - Volume by Diagnosis See chart B
Wait for ex prov Phone call EXTERNAL
pt to to
return
PHARMACIES
return
packet info

Discharge

e
rg
ha
ge

sc
Salmon Scripts

r
Phone call

Di
ha
reminder
(PTFP) Rad

sc
- Schedule on 1 st call 0% - # of Pts on panel 5997 Document delays 2% film

Di
rd Scripts
- Days out for first 3 visit 3.75
Routing
- Days out by provider - See C
Slips
Interface MediTech
Reg Pkt Med Educ.
Enterprise Interface MediTech
V2 EMR Enterprise EMR list EMR Referrals
Enterprise
Obtain EMR Orders Register for
Demographics Call patient Input Med Check-in Room &
See Check-out
Ancillary
HOSPTIAL
patient for perform Walk to
mini-reg & to schedule Hot History patient
ROS patient hospital Services Ancillary Services
visit vitals, etc.
Send packet Reception Reception V1 Referral
MD, PA Hospital
Reception RN Coordinator
Reception Registration
4.8 walk
2.2 19.1 31.2 4.4 14.0 L/T
or return

1.6 9.7 20.7 2.1 2.3 3.1 C/T

- Schedule on 1 st call 0% - # of Pts on panel - 5998 - No shows 2% - On-time starts 37% - Referral volume 14.5 % - Volumes by service 13.0%

- Days out for first 3 rd visit 2.00 - On-time starts 37% - Time by diagnosis Chart D - Lead-time by service - varies

- Days out by provider- see chart C - Document delays 12% - Volume by hour Chart E

ROS
V2
Reg Pkt EMR
Enterprise
V2 Input Med
Pre-reg,
History
Schedule, &
following
Send packet
Check-in
Reception LEGEND
Reception
= PTFP Scheduling = Hospital Services

= OPC Scheduling = Patient

- Schedule on 1 st call 100% - Document delays 30%

= JMPG Scheduling = Patient on schedule
- # of Pts on panel 5886

- Days out for new visit - 15.01

= Clinic flow (all sites)
- Days out by provider See Chart C

Days out for first 3 rd visit 1.16

Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.

VSM Basics V7.6 - Slide 19

2012 Massachusetts Institute of Technology
 Additional Graphic Elements

Swim Lanes organize tasks

by time and organization
Organization

Time

Castle Wall shows task and wait times

WT WT WT WT
TT TT TT SUMS
TT

Many ways to clarify the process

and present data in easy-to-understand form
Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.
VSM Basics V7.6 - Slide 20
2012 Massachusetts Institute of Technology
 More Information

VSM Basics V7.6 - Slide 21

Courtesy of Lean Enterprise Institute. Used with permission. 2012 Massachusetts Institute of Technology
 Reading List
Jimmerson, C., Value Stream Mapping for Healthcare Made
Easy, Productivity Press, New York, NY, 2010
McManus, H., Product Development Value Stream Mapping
(PDVSM Manual), Release 1.0, Sept 2005. Lean Advancement
Initiative.
Rother, M. and Shook, J. Learning to See, v1.2, The Lean
Enterprise Institute, Cambridge, MA June 1999

VSM Basics V7.6 - Slide 22

2012 Massachusetts Institute of Technology
 Acknowledgements

Contributors
Sharon Johnson Worcester Polytechnic Inst.
Jose Macedo Cal Poly San Luis Obispo
Hugh McManus Metis Design
Ted Mayeshiba USC
Earll Murman MIT

VSM Basics V7.6 - Slide 23

2012 Massachusetts Institute of Technology
MIT OpenCourseWare
http://ocw.mit.edu

16.660J / ESD.62J / 16.853 Introduction to Lean Six Sigma Methods

IAP 2012

For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.