Lean Six Sigma

Lean Six Sigma Value Stream Mapping

Copyright 2005, AIT Group Inc. All rights reserved.

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Value Stream Map Example
Order Mgmt Supervisor
CUSTOMER

Lean Six Sigma

Weekly Update
Phone Call

Phone Call

Service lead time = 384 min Customer call time = 24 min

Order Mgmt Screen for Acct Mgr

P/T = 3 min Lost calls=10% Volume=1200

Manual Update

SUPPLIERS

2-5

day s

Large Business Order Mgmt Small Business
4

Customer Info

Order Mgmt
4

Order Mgmt
4

Order Mgmt
4

DIST
10

Product Need

Pricing

Shipping Info 20 Orders

Pick Pack & Ship

P/T = 2 min Error Rate=2%
Home

P/T = 6 Min Error Rate=0% Volume=800

P/T = 6 Min Error Rate=2% Volume=800

P/T = 2 Min Error Rate=1% Volume=800

P/T = 120 Min Error Rate=1% Volume=1200

Volume=800

3 min

5 min

2 min

6 min

6 min

2 min

240 min

120 min

2
2

Copyright 2005, AIT Group Inc. All rights reserved.

Analysis Tool: “Value-Add” Assessment
Assessing Types of Tasks
• Value Adding – Steps essential to deliver product or service according to customer requirements. Three criteria:
1. Transforms the item or service toward completion 2. Customer cares (would be willing to pay for it) 3. Done right the first time

Lean Six Sigma

• Business Value Adding – Steps that are not essential to the customer but the business has to perform • Non-Value Adding – Steps that do not qualify as Value Add or Business Non-Value Adding

Copyright 2005, AIT Group Inc. All rights reserved.

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Analysis Tool: Process Cycle Efficiency
Process Cycle Efficiency = Value Add Time
Total Cycle Time
Application Machining Assembly Transactional Processes Creative/Cognitive Processes Typical Cycle Efficiency 1% 15% 10% 5%

Lean Six Sigma

World Class Cycle Efficiency 20% 35% 50% 25%

Copyright 2005, AIT Group Inc. All rights reserved.

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Analysis Tool: Task Time Chart
1. Record task time for each process step

Lean Six Sigma

2. Display the customer takt rate (units to process per time)
Mortgage Delinquency Per Call Task Times
140 120 Seconds 100 80 60 40 20 0
Research Process Dial Contact Follow-up

Customer Requirement Rate (Takt Time) = 2.0 min/task

Need to reduce to meet customer Need to reduce to meet demand! customer demand!

Tasks
Copyright 2005, AIT Group Inc. All rights reserved.

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Author

Lean Six Sigma

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers. Full Bio: http://www.linkedin.com/in/stevenbonacorsi Lean Six Sigma White Belt Certification: • Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to your Resume or Job Skills. • Learn topics from one of the original Master Black Belts and world experts on Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and Responsibilities, FMEA Risk Analysis, Control Plans and more. • Certificates will be signed for all who complete the 2 hour training session.

Copyright 2005, AIT Group Inc. All rights reserved.

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Learn More about The AIT Group
http://www.theaitgroup.com

Lean Six Sigma

Copyright 2005, AIT Group Inc. All rights reserved.

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Who is AIT?
• AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions. • Solutions are customized to the customer – not one size fits all. • The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate. • Our goal is the complete transfer of knowledge via client specific solutions – not training. • Your instructors from AIT are Certified Master Black Belts and Lean Experts. • We have worked with many different clients and some of the largest companies in the world. • We have Offices in the US, Europe, Mexico and China.

Lean Six Sigma
The AIT Group is an international consulting firm that has been specifically designed to help companies increase profitability by improving overall business performance and customer satisfaction through the integrated application of:

Lean Value $ Six Sigma

Supply Chain Mgmt.

www.theAITgroup.com

The AIT Group excels in implementation … not recommendation!
Copyright 2005, AIT Group Inc. All rights reserved.

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