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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.

What is a Value Stream Map?
• • • • • Visual Representation of a Value Stream Pencil & Paper Tool Helps Reveal Waste & Problems with Flow Establishes a common language to document processes Provides a blueprint for improvement

Value Stream Maps
What Makes Them Unique?
• • • Visualizes the process flow from a Systems Perspective Includes Information Flow and links it to process flow Documents Performance of the process
– End results in meeting customer requirements – Metrics (Process time, Weight time, Lead time, First time quality) to highlight waste – Progress and quality become visible

Using the Value Stream Mapping Tool
Value Stream Scope

Determine the Value Stream to be improved
Understanding how things currently operate. This is the foundation for the future state Designing a lean flow

Current State Drawing
Standardize for later improvement

Future State Drawing

Implementation Plan

Developing a detailed plan of implementation to support objectives (what, who, when)

Implementation of Improved Plan

The goal of mapping!

Typical Steps for Current State Mapping
• • • • Document customer information & needs
• Who is it? What do they need? When do they need it?

Identify main processes (in order) Select data attributes
• P/T, W/T and FTQ

Perform “value stream walk” and fill in data boxes (how the process really works)
• Pretend that you are the work / document / item being produced

• •

Establish how each process knows what to do 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

Any element of production, processing, or distribution that adds no value to the final 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 rather than a root cause of the problem • Waste points to problems within the system • We need to find and address causes of waste to improve flow • Waste is most prevalent in the information flow of nonmanufacturing processes • Conservative expert analysis suggests up to 40% of what we do adds no value

Tips for Identifying Waste
Following are things to look for to help identify waste in a value stream: • Low First Time Quality (FTQ) • Long wait times as compared to process times • Process steps requiring multiple iterations/reviews & rework • Excessive handoffs between people/organizations • Multiple systems/computer tools used – may point to redundant data entry & “translations” • Starting too early – Does the process start earlier than it needs to, with preliminary data, driving multiple updates/reworks as “real” data becomes available? • Look at the “system” level first for opportunities to make bold moves
– Look for potential to eliminate entire process steps before focusing on eliminating waste from unnecessary processes


Current State

Future State

Grasp the Situation: “Where Are We?” vs. “Where Should We Be?”

Rule of Thumb for Process Improvements

• • • • •

Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible?

• Process improvements?

• To Improve the Performance of a Value Stream, plan at the “System Level” and implement at the “Process Step Level” • Ensure adequate and available resources to implement improvements in the future state Value Stream • Process improvements must be standardized and documented to “take hold” in the organization • Provide feedback to team members, supervisors, and managers and make it possible for all employees to contribute to continuous improvement

Future State Questions
• What are the customer requirements? – How can we ensure that the customer gets what they need, when they need it? – Can the timing of the customer requirements be used to establish a pace of work (takt time) for the value stream? How will you make work flow smoothly? – How can we get information to the customer with few/no handoffs? – How can we get information to the customer with no correction or rework required? – How will multiple or parallel flows be synchronized? – Is there backflow (repeat or rework) loops that can be eliminated? – Can a person complete the activity in one sitting? – Can you touch each piece of paper only once, or go to each screen only once, for each activity? – What steps could be combined or eliminated to simplify flow? Where and how will you trigger or sequence work? – Can you have one trigger point with uninterrupted process flow? How will you establish rhythm or milestones to pace the work and surface problems? – How will you use milestones to create an internal pull to establish cadence / rhythm? – What can be done to level the workload and eliminate the frustrating “peaks” and “valleys”? How will you make work progress and delays visible? – What visual management tools will you use to make progress & delays visible? – How will you be sure you know the progress of the work? What process improvements are necessary to achieve your Value Stream vision? – How will you ensure adequate and available resources to improve First Time Quality at each process step in the value stream?

• •


Business Plan Deployment
OBJECTIVE: Text area for Objective.
METHODS: Text area for Methods.

1.0 1.1 1.2 1.3 1.4 1.5 1.6 2.0 2.1 2.2 3.0 3.1 3.2 3.3 3.4


Schedule & Control Points TARGET Jan Feb Mar


Objectives Methods


Timing Status



Business Plan Deployment Is a PDCA Cycle
Countermeasure Action Plans 4
Countermeasures/Action Plans
Items Tasks


BPD Plan
Plant Master Plan

3 Check (evaluation)
Plan Do

2 Do the Plan

Check Do

Check Act

“Typical” VSM Project
Scoping 3 sessions (completed at least 1 wk prior to workshop) - Pre-Scoping (1-2 hours) - Scoping (4 hours) - Confirmation Scoping (2-3 hrs) (if necessary) - Leadership Panel Conference Call (30 mins)

Workshop 3 days - Day 1: Training & Current State - Day 2: Training & Future State & Leadership Panel - Day 3: Implementation Planning & Leadership Panel

Implementation 90 days or less - Establish Review sessions (up to 4) - Kaizen Bursts to be addressed (Potentially other GoFasts) - Measure Results to bottom line - Update War Room, Functional VP, other Impl Leaders