June 26 Brown Bag Webinar Presentation: Value Stream Mapping

1. Brown Bag University:
Value Stream Mapping

2. Brown Bag University:
Value 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

3. Facilitators
Mike Pircer Dan Walker
MAP Business Solutions, Inc. River’s End Consulting
(248) 379-8344 (248) 770-2554
www.mapbizsolutions.com www.riversendconsulting.com
www.linkedin.com/in/mikepircer www.linkedin.com/in/tentmakerenterprise

4. Value Stream Mapping
What is Value Stream Mapping?
• PENCIL AND PAPER!!!
• Door to Door
• Prioritize Improvement Plans

5. Value Stream Mapping
Benefits of Value Stream
Mapping.
• Creates a vision of the
future.
• Enables broad participation.
• Reduces the risk of creating
“islands of excellence”.
• Helps to break down
communication barriers.
• Provides an implementation
road map.

6. Defining 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 a
product 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.

7. Defining 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...

8. Defining a Value Stream
Group Your Products into Product Families whenever possible.
Service Example: Insurance Claims
Process Step
Document Supervisor Manager Document VP Check to
Product/Service #1 Approval Approval #2 Approval customer
Claims under $500
X X X
Claims from $500 -
$1000
X 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

9. Defining 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 or
Rework.
– Products/Services with the Highest Customer Return
Rate.
– Products/Services that Visit the Most Processes.

10. Current-State Value Stream Mapping
Current-
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.

11. Defining 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 the
customer.
– Identify waste within value stream.

12. 8 Types of Waste
Motion Over Producing
Defects
Underutilized People Waiting
Inventory
Over-
Processing Transportation

13. Current-State Value Stream Mapping
Current-
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

14. Drawing the Map

15. Drawing the Map

16. Drawing the Map

17. Drawing the Map

18. Drawing the Map

19. Current-State Value Stream Mapping
Current-
A few VSM Icon Definitions

20. Questions and Answers
Mike Pircer Dan Walker
MAP Business Solutions, Inc. River’s End Consulting
(248) 379-8344 (248) 770-2554
www.mapbizsolutions.com www.riversendconsulting.com
www.linkedin.com/in/mikepircer www.linkedin.com/in/tentmakerenterprise

21. Brown 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

22. Recommended References
Books Websites
• Learning to See, Mike Rother and John • The Lean Enterprise Institute (eVSM
Shook software can be purchased from this
site)
• Value Stream Management for the Lean www.lean.org
Office, Don Tapping and Tom Shuker
Training:
• Voices into Choices, Gary Burchill and • cpd.engin.umich.edu: University of
Christina Hepner Brodie Michigan Lean Certification Program.
• Synchronous Management, • www.villanovau.com: Villanova
Mokshagundam Srikanth and Michael University Lean Six Sigma
Umble Certification Program
• Throughput Accounting, Thomas
Corbett