Brown Bag University:Brown Bag University:Value Stream MappingValue Stream Mapping

Brown Bag University:Brown Bag University:Value Stream MappingValue Stream Mapping

• Introductions

• Defining a Value Stream– What is a Value Stream?

– Difference between value add and non-value add

– Determining product families.

– Selecting a product family for analysis

• Creating a Value Stream Map– Walk The Line

– 8 Types of Waste

– Types of Data to Collect

– Steps in Drawing a Current State VSM

• Questions and Answers

• Brown Bag Series

FacilitatorsFacilitators

Mike PircerMAP Business Solutions, Inc.(248) 379-8344www.mapbizsolutions.comwww.linkedin.com/in/mikepircer

Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.comwww.linkedin.com/in/tentmakerenterprise

Value Stream MappingValue Stream Mapping

What is Value Stream Mapping?• PENCIL AND PAPER!!!

• Door to Door

• Prioritize Improvement Plans

Value Stream MappingValue Stream MappingBenefits of Value Stream

Mapping.

• Creates a vision of thefuture.

• Enables broad participation.

• Reduces the risk of creating“islands of excellence”.

• Helps to break downcommunication barriers.

• Provides an implementationroad map.

Defining a Value StreamDefining a Value Stream

What is a Value Stream?• A value stream is the set of all the actions (value-

added and non-value added) required to bring aproduct or service to the customer.

Value-added or non-value added?Three tests:

1. It changes the shape or form.

2. The customer cares about it.

3. It needs to be done right the first time.

Defining a Value StreamDefining a Value Stream

Group Your Products into Product Families whenever possible.

Process Step

Product/Service 1 2 3 4 5 6,7,8...

A X X X X

B X X X

C X X X X

D X X X

E, F, G...

Defining a Value StreamDefining a Value StreamGroup Your Products into Product Families whenever possible.

Service Example: Insurance Claims

Process Step

Product/ServiceDocument

#1SupervisorApproval

ManagerApproval

Document#2

VPApproval

Check tocustomer

Claims under $500 X X XClaims from $500 -

$1000X X X

Claims from $1000- $2,500

X X X X

Claims from$2,500 - $5,000

X X X X

Claims from$5,000 - $10,000

X X X X X X

Defining a Value StreamDefining a Value Stream

Selecting a Product/Product Family for Analysis

• Depends on your business situation.

• Some criteria to consider:– Highest Product/Service Volume in $$.

– Highest Product/Service Volume in Units.

– Products/Services with the Highest Defect Rates orRework.

– Products/Services with the Highest Customer ReturnRate.

– Products/Services that Visit the Most Processes.

CurrentCurrent--State Value Stream MappingState Value Stream Mapping

Creating the Current-State VSM• Form the team.

• Educate (if necessary).

• Brainstorm an initial map through:– Team consensus

– “Value Stream Waste Walk”

• Formalize scope and preliminary objectives.

• Draft a rough-cut map.

• Gather necessary data and info.

• Create the final current-state value stream map.

Defining a Value StreamDefining a Value Stream

Value Stream Waste Walk• Begin with the customer and work backwards.

• As you walk through, consider:– How customer orders are processed.

– How work on the shop floor or offices is triggered.

– How orders are transmitted upstream.

– How materials are supplied.

– How products/services get from the last step in the process to thecustomer.

– Identify waste within value stream.

8 Types of Waste

Waiting

Transportation

Over-Processing

Motion Over Producing

Defects

InventoryUnderutilized People

CurrentCurrent--State Value Stream MappingState Value Stream Mapping

What data does the team need?• C/T – Cycle Time

• C/O – Changeover (Setup) Time

• Uptime - % machine is available

• Number of people, by type or classification

• Operating or working time available

• Average days supply in inventory between operations (WIP)

• Queue time between operations

• Scrap rate

• Absenteeism

• Top three reasons for unplanned downtime

• Top three defect causes

• Source of schedule information for each operation

Drawing the MapDrawing the Map

Drawing the MapDrawing the Map

Drawing the MapDrawing the Map

Drawing the MapDrawing the Map

Drawing the MapDrawing the Map

CurrentCurrent--State Value Stream MappingState Value Stream MappingA few VSM Icon DefinitionsA few VSM Icon Definitions

Questions and AnswersQuestions and Answers

Mike PircerMAP Business Solutions, Inc.(248) 379-8344www.mapbizsolutions.comwww.linkedin.com/in/mikepircer

Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.comwww.linkedin.com/in/tentmakerenterprise

Brown Bag Webinar SeriesBrown Bag Webinar Series

Friday, June 26 (11:30am – 12:15pm)VSM – How To Create a Current State Map

Friday, July 10 (11:30am – 12:15pm)VOC – How To Set Up a Proper VOC Project

Friday, July 24 (11:30am – 12:15pm)VOC/VSM – Group discussion

Recommended ReferencesRecommended References

Books• Learning to See, Mike Rother and John

Shook

• Value Stream Management for the LeanOffice, Don Tapping and Tom Shuker

• Voices into Choices, Gary Burchill andChristina Hepner Brodie

• Synchronous Management,Mokshagundam Srikanth and MichaelUmble

• Throughput Accounting, ThomasCorbett

Websites• The Lean Enterprise Institute (eVSM

software can be purchased from thissite)www.lean.org

Training:• cpd.engin.umich.edu: University of

Michigan Lean Certification Program.

• www.villanovau.com: VillanovaUniversity Lean Six SigmaCertification Program