Value Stream Mapping Quick Start

2Employ Improvement Initiatives 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 Defining A Value Stream If there is a product, service or process for a customer, there is a value stream.

3Employ Improvement Initiatives 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 Why Value Stream Map? VSM creates a common understanding of reality and the improvement possibilities.

4Employ Improvement Initiatives Extended Value Stream Multiple Facilities: (Includes Suppliers & Customers) Process Level Facility Level (Cell or Department) Value Stream Levels Choose the level appropriate for your scope.

5Employ 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

6Employ Improvement Initiatives 7 Steps to Utilizing a Value Stream Map 1.Identify scope of the Value Stream Map 2.Identify VSM team lead and participants 3.Organize and conduct a tour of area to “go see” 4.Map the high level process and gather key data 5.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

7Employ 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

8Employ Improvement Initiatives Step 4: Map the High-Level Process Gather Info Approval Meeting Analyze Info Develop work-up Input data into file Collect Sub-quotes Prepare Estimate 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 Input BoundaryOutput Boundary 30 minute cycle time WIP 2 days between processes6 people involved Example: Generating an estimate for a customer On-Line Tool

9Employ Improvement Initiatives Step 4: Identify Key Data Elements 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 Example: Generating an estimate for a customer Gather Info Approval Meeting Analyze Info Develop Takeoff Input data into file Collect Sub-quotes Prepare Estimate Cycle Time: Wait Time: # of People: Transport: WIP: 4 hrs24 hrs2 hrs 48 hrs24 hrs8 hrs ManualPhone Who:OpsSales/Ops Sales Missing data to be collected prior to VSM

10Employ 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

WIP 870 QTIME 72H MELT 903M INSP CHEM Hold Furnace Cast 903 INSP PROFILE WIP 696 QTIME P/T 6N LOT 75K P/T 8H WIP 8 COILS 120K P/T 3 HR 15K WIP STORESTAGE BREAKDOWN 911 RECSTAGE LEAD VA % SCRAP WIP 746K QTIME 8 1OK LOT 1 COIL TIME.1 WIP 15K WIP 108K 8HR Q/T 8 DOWNTIME 15% DOWNTIME 15.5% 8683 Value Stream Map – Operational example 1. Map major process steps 2. I.D. Value (green/ yellow) / Non-value (red) 3. Capture all times, quantities 4. Prioritize areas to improve X SHIPPED PER DAY 850K WIP BEING WORKED WIP BEING STORED

12Employ Improvement Initiatives Step 6: Create the Current State VSM Map the Material Flow Map the Information Flow Classify VA and NVA activities

13Employ Improvement Initiatives VSM Symbols FIFO max 10 I Things pulled by next process First in First out control Transport Things pushed to next process Pull system Paper trigger Pull system Returnable container Information Electronic Information People required Inventory Pieces Waiting In Out Input- Basket Output- Basket

14Employ Improvement Initiatives Step 6: Map the Materials Flow Gather Info Approval Meeting Analyze Info Develop Takeoff Input data into file Collect Sub-quotes Prepare Estimate Cycle Time: Wait Time: # of People: Transport: WIP: 4 hrs8 hrs24 hrs2 hrs 4 hrs 2 hrs 8 hrs48 hrs8 hrs24 hrs8 hrs Manual Phone Who:SalesOpsSales/Ops Sales Come to agreement on process steps as a team Include all key data for each process step Include UDOs Material flows from left to right No standard work No Process Too many people UDO Push

15Employ Improvement Initiatives Step 6: Map the Information Flow Sales Funnel Database Sales Representative Sales Leader Estimator 75 Estimates per month 1-30 days 1-5 days 1-2 days 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

16Employ Improvement Initiatives Estimator Step 6: Identify VA & NVA Gather Info Approval Meeting Analyze Info Develop Takeoff Input data into file Collect Sub-quotes Prepare Estimate # of People: Transport: WIP: Manual Phone Who:SalesOpsSales/Ops Sales No standard work No Process Too many people VA/NVAVANVAVANVA 4 hrs8 hrs24 hrs2 hrs4 hrs2 hrs 8 hrs48 hrs8 hrs24 hrs8 hrs Sales Funnel Database Sales Representative Sales Leader 75 Estimates per month 1-30 days 1-5 days 1-2 days 2-5 days C ustomer cares C hanges form, fit or function C orrect

17Employ Improvement Initiatives Identify areas of opportunities for improvement Develop an action plan to make the improvements Step 7: Use the VSM to Identify Waste

18Employ Improvement Initiatives Step 7: Use the VSM to Identify Waste Estimator Gather Info Approval Meeting Analyze Info Develop work-up Input data into file Collect Sub-quotes Prepare Estimate # of People: Transport: WIP: Manual Phone Who:SalesOpsSales/Ops Sales No standard work No Process Too many people VA/NVAVANVAVANVA 4 hrs8 hrs24 hrs2 hrs4 hrs2 hrs 8 hrs 48 hrs 8 hrs 24 hrs 8 hrs Sales Funnel Database Sales Representative Sales Leader 75 Estimates per month 1-30 days 1-5 days 1-2 days 2-5 days Cycle times too long Too much “queue time” between steps No process standardization Transportation issues Too many people involved in Approval Time Value Map 43 days

19Employ Improvement Initiatives 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”

20Employ 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

21Employ Improvement Initiatives Identify the high impact improvements and long term and short term actions Impact Effort High Hard Sweet Spot low high Don’t Do Just Do It Step 7: Create An Action Plan

Value Stream Mapping Quick Start