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RAPID VSM TM

Rapid Value Stream Mapping makes visual the flow of customer’s products/services to identify waste. A current, “ideal” and a future state are created to strategically align improvement efforts. Many consider Rapid VSM TM the single most powerful tool in the entire Lean Six Sigma toolkit. This guide is for facilitators and participants in Rapid VSM TM sessions.

Ideal Rapid VSM TM sessions build on some hours of prework, and last between a few hours up to a few days. Significant homework is assigned and completed from the “Parking Lots” between sessions. For questions and suggestions, please contact infinitas SA at info@infinitas.eu.com. Wishing you success.

©2007-­‐  2013  infinitas  SA.  .  www.infinitas.eu.com                                  www.infinitas.us.com        

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1.  WALL SPACE AND PAPER - At least 4 (better 8) meters of free wall space and a large piece of paper 1 meter by 4 meters (or larger).

2.  MASKING/PAINTER’S TAPE (to hold the paper to the wall) 3.  MARKERS - 2 each of 4 different colors of thick tip markers and

4 different colors of thin tip markers. 4.  POST IT NOTES - 2 sizes of 3 or 4 different colors of Post-ItTM Notes 5.  DIGITAL CAMERA - A digital camera is a great way to share and to avoid losing your

newfound Value Stream knowledge.

RAPID VSM TM SUPPLIES CHECKLIST

Post-ItTM Notes

Post-ItTM Notes

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RAPID VSM TM STEPS - OVERVIEW

1.  Define the Problem Statement with the Value Stream Owner. What is the purpose of the Rapid VSM TM? High level end to end value stream for project identification? Or to define one or several smaller “localized” projects? Or to improve a 3 person work cell as part of a Kaizen event or Belt project?

2.  Create a SIPOC to “frame” the process, keeping the level of the Rapid VSM TM in mind. 3.  Secure adequate wall space as close to the process as possible. Make certain that a sufficient “Process Experts”

are available. WRITE ONLY ON POST-IT NOTES, NOT ON THE PAPER IN ORDER TO KEEP THE PROCESS COMPLETELY FLEXIBLE Use multiple color Post-It notes and markers to build a legend. Capture electronic versions later offline.

4.  Create Parking Lots (improvement ideas, assumptions, questions, other observations) and begin populating these with Post-It notes. Encourage the use of the Parking Lots.

5.  Reflect on segmentation options for your process, keeping in mind the unit of production, product families and all important production steps. Pick your segment and production unit, returning to this step to re-choose as necessary

6.  Add the information and material flows 7.  Add process data boxes, including as applicable VA, NVA or BNVA classification, VA time, Process Lead Time,

Yield (Quality), Rework, Total Setup Time(s), Batch Size, Surge Capacity, Planned and Unplanned Downtime and other relevant process data

8.  Identify and add Constant (C), Noise (N) and Experimental (X) input classifications where helpful, focusing on the critical process steps first.

9.  Calculate the takt time; add data to calculate Process Lead Time and Process Cycle Efficiency 10. Have all participants sign the VSM, noting also the date, then walk the process (again) to validate/answer

questions/correct the initial Rapid VSM TM 11.  Gather Financial Impact data and work with the Value Stream Owner to prioritize next steps and create an “ideal” and future State Rapid VSM’TM following steps 6 to 10.

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STEP 1 --- Define the Problem Statement With the Value Stream Owner

Problem Statements help to focus the Rapid VSM TM . BE SPECIFIC

The more specific the Problem Statement, the better. A Problem Statement which applies to any process is not highly valuable. Include specific information:

•  What •  Where •  Who •  Since when •  How much

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STEP 2 – Create a SIPOC to “Frame” the Process, Keeping the Level of the Rapid VSM TM in Mind A good SIPOC contains “sharp” process boundaries which are essential to scoping a Rapid VSM TM . Will your Rapid VSM TM be a high level for a 1,000 employee site….., or for a 30 person production line, or for a 2 person work cell? Rapid VSM’s TM apply well to all of these situations, but keep in mind: •  Most improvements take place at the lower levels. •  Strategic project identification and prioritization take place at higher levels.

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STEP 3 -- Secure Adequate Wall Space as Close to the Process As Possible. Make Certain That a Necessary Number of “Process Experts” Are Available. Rapid VSM TM walls are subject to frequent visits and serve as the “process learning hub,” especially for cross functional and multi shift processes. Balancing proximity to the process and a calm work environment is not always easy. •  Strive for open space (at least 50% “empty). (no Post-Its) •  Write only on Post-Its to allow for new findings and adjustments before “freezing” the Rapid VSM TM electronically at the very end of the process. •  Create a color-coded Post-It legend. •  Digital photos make excellent backups.

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STEP 4 -- Create Parking Lots and Begin Populating These

Parking Lots are a facilitator’s best friend. They keep energy levels high, and keep all team members involved even when only one person is speaking at a time. Create four Parking Lot categories:

•  Improvement Ideas, Assumptions, Questions, Other Observations

Disciplined use of Parking lots DRAMATICALLY ACCELERATE the Rapid VSM TM process. • Sort the Parking Lots regularly (highest priority at the top) • Use the Parking Lot as the basis for assigning “offline” data collection/validation “homework” to team members. • Challenge each team member to add at least two Post-Its to the Parking Lots each session.

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STEP 5 --- Choosing Your Segmentation •  Segmentation can be based on the most often produced product family, or on the product which passes “all or the most” process steps. –  Combining several product families in one VSM may be necessary. –  For process improvement, focusing on one family is often essential to

completing data boxes and building deep understanding. •  In determining your segmentation options, keep in mind the Unit Of

Production, Product Families and important Production Steps. •  Pick your Segment and Production Unit. It is common to make a

choice only after rejecting several earlier attempts. Return to this step to re-choose as necessary.

•  The Production Unit can be the most common unit the customer pulls (think beer..is it the Case? Barrel? Bottle? Can?) or a batch size from one of the process steps . Important for Takt time.

•  Unit consistency across all process steps greatly facilitates identifying the bottleneck or constraint.

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STEP 6 --- Add the Information and Material Flows

Which paperwork flows in and out of each process step? Inspection/quality data? • Use straight arrows where paper flows and use “blitz” arrows for electronic flows.

• Add push or pull material flows as appropriate. • Avoid writing on the background paper. Use Post-it notes to indicate flows to preserve flexibility to modify the Rapid VSM TM. Be aware of parallel vs. serial operations and the critical path to calculate the timeline correctly. Converting serial processes into parallel process structures can be a very powerful improvement for lead times, especially for demand peaks (think of the back-office and self-service checkout helping during peak hotel checkout periods) Use Decision Points to understand where outcomes can be different, and capture outcome flow rates.

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STEP 7 -- Add Process Data Boxes

Process Data Boxes are often the “keys” to unlock the potential of your Rapid VSM TM . Include relevant process data, including VA, NVA or BNVA classification, VA time, Process Lead Time, Yield (Quality), Rework, Total Setup Time(s), Batch Size, Surge Capacity, Planned and Unplanned . Be sure to walk the process several times to verify these values. Go, Look, See. REPEAT. Beware of reports which are often far from process reality. A good segmentation really pays off during this step, allowing focus on a single family or product.

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STEP 8 -- Constant (C), Noise (N) and Experimental (X) Input Classifications

Identify and add Constant (C), Noise (N) and Experimental (X) input classifications where helpful. Focus on producing SOPs to stabilize the critical process steps first. Identifying the important inputs (or those which common sense tells us are most likely important) and converting these to constants (with SOP’s, Error Proofing or Kanban) provides stability and allows focus on the other Noise and Experimental variables to review during the Analyze phase.

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STEP 9 – Calculate the Takt Time. Add Data to Calculate Process Lead Time and Process Cycle Efficiency Takt Time = Seconds*/units Takt Rate = Units/seconds*

•  Use the last 12 weeks’ customer demand for units (if phase in or out, adjust) and the seconds worked per week. (working time, less lunch, breaks/time off for team meetings)

Process Lead Time (PLT) = total time for one unit to pass through the process •  Little’s Law provides a good “snapshot” estimate; PLT = WIP/Exit Rate •  PLT can also be calculated using the processing time for each step (including VA and NVA) PLUS the time spent waiting before and after process steps (use units times exit rate to estimate inventory waiting time

Exit Rate is always expressed in units of product/units of time •  for example 1 package of three per 8 seconds

Process Cycle Efficiency (PCE) is the percentage of Value Added Time to total PLT, best drawn as a “wave” with corners.

* Or other units of time, such as minutes or hours

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STEP 9 -- Process Cycle Efficiency Benchmarks1

Process Cycle Efficiency (PCE) benchmarks show how good your process is versus the best in class.

Process Type Typical PCE World Class PCE

Continuous Manufacturing

5% 30%

Fabrication 10% 25%

Service/Creative 5% 25%

Service/ Transactional

10% 50%

Service/Creative 5% 25%

1 Source: Michael George, Lean Six Sigma Pocket Toolbook

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STEP 10 -- Validate the “As Is” Status With Several Process Walks and Have the Team Sign It

Rapid VSM’s TM are extremely powerful process learning tools, which often release the best learning only after multiple revisits. Follow up on your Rapid VSM TM accordingly: • Have all participants sign the Rapid VSM TM • Date the Rapid VSM TM • Walk the process again (and again) to:

•  Validate •  Answer questions •  Correct the initial VSM

Many teams use their Rapid VSM’s TM with great success to share process complexity and issues with senior leaders.

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STEP 11 - Create a Separate “ideal” and futureState Rapid VSM TM

Rapid VSM’s TM are excellent project selection and prioritization tools, especially when they contain data supporting financial prioritization. Necessary Follow Up Steps: •  Gather financial impact data and work with the Value Stream Owner to prioritize the next steps. •  Create an “ideal” and Future State Rapid VSMTM, following steps 6 – 10 and incorporate these into a Multi Generational Project Plan (MGPP) to communicate effectively to the entire organization planned and agreed changes.

For another reference please see www.lean.org Learning to See

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One Example

©2007-­‐  2013  infinitas  SA.  .  www.infinitas.eu.com                                  www.infinitas.us.com