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Value Stream Mapping: 
How to Visualize Work & Align Leadership for 
Organizational Transformation
Webinar
October 3, 2013
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After the webinar…
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– www.vimeo.com/karenmartingro...
Value Stream Defined
Value Stream: All of the activities required to
transform a customer request into a good or service.
...
Value Stream Mapping’s Roots
7
Mike Rother & John Shook, 1999 Beau Keyte & Drew Locher, 2004
Whenever there is a product f...
© 2013 The Karen Martin Group, Inc. 8
“The new bible for value stream mapping and 
improving organizational performance."
...
© 2013 The Karen Martin Group, Inc. 9
Book Structure
• Introduction
• Chapter 1 – Value Stream Management
• Chapter 2 – Se...
© 2013 The Karen Martin Group, Inc. 10
Value Stream Mapping is for…
• Organizations who are unfamiliar with value 
stream ...
© 2013 The Karen Martin Group, Inc. 11
Function FunctionFunctionFunction
Core Value Stream
Support Value Stream
Support Va...
© 2013 The Karen Martin Group, Inc. 12
Why Value Stream Mapping?
© 2013 The Karen Martin Group, Inc. 13
Value Stream:
Strategy Before Tactics
Where am I? 
Where do I want 
to go?
I‐80 opt...
Work: Degrees of Granularity
Value 
Stream
Process Process Process
Step StepStep
Micro 
Perspective
• Identify the  
tacti...
© 2013 The Karen Martin Group, Inc. 15
Metrics‐Based Process Mapping:
Improving Tactically; Defining Standard Work 
0
1
0
...
© 2013 The Karen Martin Group, Inc. 16
Value Stream Mapping Benefit:
Seeing the Whole
60,000 foot view; Rooftop view
VSM Enables Systems Thinking
17
Individual Efficiency =    
Sub‐optimization
System Efficiency = 
Optimal Value Stream 
Pe...
18
Value Stream Maps Serve as Visual “Storyboards”
Makes the disconnects 
and obstacles to flow 
visible at a macro level
...
Effective Way to Visualize Relationships between 
IT Systems and the Operation
19
© 2013 The Karen Martin Group, Inc.
© 2013 The Karen Martin Group, Inc. 20
Value Stream Mapping Benefit:
Reaching Leadership Consensus
© 2013 The Karen Martin Group, Inc. 21
Value Stream Mapping Benefits
• Visual unification tool
• Connection to the custome...
22
Value Stream Maps: 
Effective for New Hire Orientation
You 
are 
here
© 2013 The Karen Martin Group, Inc.
© 2013 The Karen Martin Group, Inc. 23
Value Stream Mapping: Common Failings
• Using the mapping process solely as a work ...
© 2013 The Karen Martin Group, Inc. 24
Value 
Stream 
Mapping
Strategy 
Deployment 
(Hoshin Kanri) 
or A3
Projects, 
Kaize...
Components of a Value Stream Map
© 2013 The Karen Martin Group, Inc.
© 2013 The Karen Martin Group, Inc. 26
Common value stream mapping icons
© 2013 The Karen Martin Group, Inc. 27
Key Metrics: Time
• Process time (PT)
– The time it takes to actually perform the w...
© 2013 The Karen Martin Group, Inc. 28
Process time versus lead time 
across the value stream
© 2013 The Karen Martin Group, Inc. 29
Key  Metrics:  Quality
• %Complete and Accurate (%C&A)
– % of incoming work that’s ...
Components of a Value Stream Map
Summary 
metrics
© 2013 The Karen Martin Group, Inc.
© 2013 The Karen Martin Group, Inc. 31
Summary Metrics: Time
• Activity Ratio (AR)
– The percentage of time anything is be...
© 2013 The Karen Martin Group, Inc. 32
Summary Metrics: Quality
• Rolled Percent Complete & Accurate (Rolled %C&A)
– The p...
Summary Metrics: Labor Requirements
• Total PT
– Sum of all activities, not just critical path
• Labor Requirements
33
Tot...
© 2013 The Karen Martin Group, Inc. 34
Common current state findings
© 2013 The Karen Martin Group, Inc. 35
Customer
1
Process 3
Function E
LT = 0.5 days
PT = 30 mins.
%C&A = 95%
4
4
10 mins....
© 2013 The Karen Martin Group, Inc. 36
Time & Quality Value Stream 
Performance Metrics
Metric Current State 
Projected
Fu...
© 2013 The Karen Martin Group, Inc. 37
Acceptable branching on a 
Value Stream Map
Process 5
Function E
5
Process 2
Functi...
© 2013 The Karen Martin Group, Inc. 38
Parallel steps on the timeline
Process 4
Function E
LT = 2 days
PT = 25 mins.
%C&A ...
© 2013 The Karen Martin Group, Inc. 39
Multiple timelines
Customer
1
Perform
repair
Service
LT = 3 days
PT = 4 hrs.
%C&A =...
Prepare
Understand 
Current State
Design
Future State
Develop 
Transformation 
Plan
Execute 
Transformation 
Plan
Three Co...
© 2013 The Karen Martin Group, Inc. 41
1
2 1
3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1
2 1
3 2
4 3
5 4
1
2
3
4 Date: Date:
Name...
© 2013 The Karen Martin Group, Inc. 42
1
2 1
3 2
4 3
5 4
5
1 6
2 7
3 8
4 9
5 10
1
2 1
3 2
4 3
5 4
1
2
3
4 Date: Date:
Name...
Service 
order
Existing 
customer
New 
construction
Repair
Warranty
Non‐
warranty
Planned 
maintenance
New
customer
New 
c...
Patient care
Inpatient
Medical/Surgical
Intensive Care
Pediatric
Outpatient
Vaccine Clinic
Imaging
X‐Rays
CT Scans
MRI
Mam...
Prepare
Understand 
Current State
Design
Future State
Develop 
Transformation 
Plan
Execute 
Transformation 
Plan
Three Co...
© 2013 The Karen Martin Group, Inc. 46
Value Stream Mapping Activity Steps
1. Kick‐off
2. Understand the Current State
– V...
© 2013 The Karen Martin Group, Inc. 47
Post‐it Note after Value Stream Walk #1
© 2013 The Karen Martin Group, Inc. 48
Post‐it Note after Value Stream Walk #2
© 2013 The Karen Martin Group, Inc. 49
How to document multiple downstream customers 
reporting different %C&As from the s...
Prepare
Understand 
Current State
Design
Future State
Develop 
Transformation 
Plan
Execute 
Transformation 
Plan
Three Co...
© 2013 The Karen Martin Group, Inc. 51
1 2 3 4 5 6 7 8 9 10 11 12
2 Improve quality of referral to 85% KE
Sean
Michaels 10...
© 2013 The Karen Martin Group, Inc. 52
Value Stream Mapping:
As Much Art as Science
© 2013 The Karen Martin Group, Inc. 53
Related Webinars
• Metrics based process mapping
– www.ksmartin.com/MBPM
• Kaizen E...
© 2013 The Karen Martin Group, Inc. 54
Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm...
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© 2013 The Karen Martin Group, Inc. 15 Metrics‐Based Process Mapping: Improving Tactically; Defining Standard Work  0 Value Stream Mapping: How to Visualize Work & Align Leadership for Organizational Transformation

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© 2013 The Karen Martin Group, Inc. 15
Metrics‐Based Process Mapping:
Improving Tactically; Defining Standard Work 
0
1
0
15
6
-1
0
Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
1
Fax PO to Sales
Rep
0 0 45%
2
Review PO;
clarify with
customer as
needed
20 2 90%
Fax PO to
warehouse
10 4 90%
5
6
Check inventory
levels; notify
Sales Rep re:
status
5 4 95%
Fax PO to Sales
Rep
5 0.33 90%
0 20 10 5 5
0 2 4 4 0.33
45% 90% 90% 95% 90%
0 20 10 5 5
Rolled %C&A
Critical Path LT
Total PT
Critical Path PT
5431 2
Mary Townsend
Hours Worked per Day Sally Dampier
Occurrences per Year Sam Parks
Current State Metrics-Based Process Map
Dave Morgan25-Jun-08
8 Facilitator
Process Details
Michael Prichard
Order FulfillmentProcess Name
Specific Conditions Domestic orders through sales force
37,500
Date Mapped
Sean Michaels
Sales Rep
Ryan AustinDiane O'Shea
Mapping Team
LT Units
Function /
Department
PT Units
Step # ►
Customer
Finance
Warehouse /
Shipping
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Excel documentation tool available on the CD that accompanies Metrics‐Based Process 
Mapping (Martin & Osterling, 2012, Productivity Press), www.ksmartin.com/MBPM

Publicado en: Empresariales, Educación
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