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This webinar covers the subtle differences between manufacturing-style value stream maps and those in office and service settings.
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8. Current State VSM – ABC Product Family
Production
Control
Forecast
Supplier
Forecast
Customer
PO
PO
Supplier
Loop
Work
Order &
Schedule
Order
Entry
Sales
PO
25
5
Schedule
PT = 20 mins.
%C&A = 90%
PT = 2 mins.
%C&A = 75%
Weekly
Shipper
Production
Loop
Order
Fulfillment
Loop
2x
weekly
On-time Delivery=55%
Fabrication
19 days
5
Assembly
12 days
PT = 3 minutes
C/O = 2.2 hrs.
Uptime = 85%
FPY: 93%
19 days
22
Test & Pack
3 days
PT = 42 mins.
C/O = 0.1 hrs.
Uptime = 60%
FPY: 98%
12 days
3 mins.
Value Stream: Product Family ABC
Current State Value Stream Map
Customer Demand: 200 units / day
4
34 days
PT = 2 mins.
FPY: 100%
3 days
42 mins.
34 days
2 mins.
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield
Total LT = 68.1 days
Total PT = 47 mins.
AR = 0.144%
RFPY = 91.1%
9. Current State VSM - Order Fulfillment Loop
Customer
%C&A = 70%
PO
Excel
SAP System
2x
weekly
Account data
Sales Order
Sales
2 hrs.
Review &
approve PO
25
5
4 hrs.
15 mins.
2 hrs.
PT = 5 mins.
%C&A = 90%
PT = 15 mins.
%C&A = 90%
2 hrs.
Enter Order
Run Credit
1 Check
Value Stream Loop: Domestic Order Fulfillment
Current State Value Stream Map
Customer Demand: 150 orders / day
Warehouse On-time delivery = 55%
2 hrs.
PT = 20 mins.
%C&A = 99%
2 hrs.
5 mins.
Shipper
Finance
Order Entry
4 hrs.
Approval
Pick and ship
order
5
2 hrs.
20 mins.
10 hrs.
PT = 15 mins.
%C&A = 99%
10 hrs.
15 mins.
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield
Total LT = 20.9 hrs.
Total PT = 55 mins.
AR = 4.38%
RFPY = 55.6%
26. HR Value Stream Mapping Charter
Event Scope
Value Stream Recruiting, Hiring, & Onboarding Process
Leadership / Coordination
Schedule
Executive Sponsor Sherrye Hutcherson
Event Date(s) Oct 27, 28 & 29, 2009
Value Stream
N/A
Champion
Specific Conditions External hires
Start/End Times
Oct 27, 28 8:00 am - 4:30 pm
Oct 29 7:30 am - 2:00 pm
Customer Demand 100 per year
Facilitator Karen Martin
Location 9 West Seminar
Trigger Vacancy
First Step Hiring manager completes VPA
Meals Lunch, morning & afternoon
Provided? snacks
Team Lead N/A
Last Step Employee completes NEI
Boundaries &
N/A
Limitations
Interim Oct 27 & 28 3:30-4:30 pm
Briefing(s) Oct 29 1-2 pm
Coordinator Andrew Peacock
Improvement
Future state will be fully implemented by 2/15/2009
Timeframe
Briefing Tim Burke, Sherrye H and other
Attendees Division Managers
Event Drivers
Mapping Team
1 Cumbersome process as perceived by the customer.
Function
Name
Contact Information
2 Need to free capacity and operate more effectively.
1 Staffing
Paula Pittman
3
2 FCS HR
Patty Yager
4
3 Talent Management
Tad Leeper
4 HRIS
Chris Ritz
5 HR Compliance
Carl Olsen
1 Reduce LT from req to offer acceptance from 45-55 days to 30 days.
6 Comp & Benefits
Nyla Cork
2
7 Recruiting
Sheila Love
3
8 Diversity / Affirmative Action
Joyce Cooper
4
9 Hiring Manager, Call Ctr
Deb Emerson
5
Measureable Objectives
5
10 Hiring Manager, Production Ops
Planned Deliverables
On-Call Support
1 Current State VSM
Function
Name
Contact Information
2 Future State VSM
1 IT
Gary Van Osdel
3 Implementation Plan
2 Fort Calhoun - Security
Herb Childs
4
3
5
4
Potential Obstacles
Approvals
1
Executive Sponsor
Value Stream Champion
Facilitator
2
3
Signature:
Signature:
Signature:
4
Date:
Date:
Date:
26
27. Value Stream Mapping Process
Products (good or services) with
common process steps
Document Current
State
Repeat
Define
Product Family
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Design Future
State
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Create
Implementation Plan
Implement!
3 Day
Event
Include accountability and
timeframes for completion
The goal of mapping!
30. Narrowing the Scope:
Selecting Specific Conditions
Units
Domestic
Consumables
Warranty
Service Parts
Order
Fulfillment
Process
NonWarranty
Units
International
Consumables
Warranty
Service Parts
NonWarranty
30
31. Value Stream Mapping Process
Products (good or services) with
common process steps
Document Current
State
Repeat
Define
Product Family
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Design Future
State
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Create
Implementation Plan
Implement!
3 Day
Event
Include accountability and
timeframes for completion
The goal of mapping!
36. Value Stream Mapping Process
Products (good or services) with
common process steps
Document Current
State
Repeat
Define
Product Family
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Design Future
State
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Create
Implementation Plan
Implement!
3 Day
Event
Include accountability and
timeframes for completion
The goal of mapping!
37. Order Initiation
Current State Map
Demand = XXXX
May 8, 2008
Robert Parker
Information Flow
2
3
Timeline
1
Product Flow
Key VSM Components
Production
Control
SUPPLIER
Process 1
I
Process 2
Hours
Hours
Minutes
I
Process 3
Hours
Minutes
CUSTOMER
I
Hours
Minutes
Process 4
LT
Minutes PT
38. 3
Product Flow
2
Timeline
1
Information Flow
Key VSM Components Office / Service
ABC Value Stream
Current State Map
Demand = XXXX/yr
Date
Key Contact
CUSTOMER
I.T.
Process 1
Process 2
Hours
Minutes
I.T.
I.T.
Process 3
Hours
Minutes
Process 4
Hours
Minutes
LT
Minutes
PT
40. Basic Mapping Icons
External
Organization
Push Arrow
Operator / Employee
I
Work-in-Process
Material receipts
& shipments
Go See Scheduling
Process Block
PT= 25 m
C/O= 40 m
2 Shifts
Takt= 60m
Manual
Information Flow
In-box
Data Block
Hours
Lead Time
Process Time
Minutes
Movement
by Truck
Electronic
Information
Flow
Hours
Minutes
Timeline
Hours
Minutes
Minutes
58. Work Effort as Defined by the
External Customer
Unnecessary Nonvalue adding
Necessary non-valueadding
Value-adding
59. Value Stream Mapping Process
Products (good or services) with
common process steps
Document Current
State
Repeat
Define
Product Family
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Design Future
State
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Create
Implementation Plan
Implement!
3 Day
Event
Include accountability and
timeframes for completion
The goal of mapping!
71. Value Stream Mapping Process
Products (good or services) with
common process steps
Document Current
State
Repeat
Define
Product Family
Foundation (the basis) for the
future state; 70-80% accurate is
acceptable (directionally correct)
Design Future
State
Create flow by eliminating waste
it is now obvious from your
current state map); typically 3-6
months out
Create
Implementation Plan
Implement!
3 Day
Event
Include accountability and
timeframes for completion
The goal of mapping!
72. Current State Value Stream Map
Supplies Purchasing - Current State VSM
Purchasing — Non-repetitive purchases less than $5,000
Inititate Req.
1
Originator
31
PT = 10 mins.
C&A = 10%
Supplies
Hard Copy
Form File
File Maker
Quicken
Vendor
Website
Excel
ERP
Data Entry
Review
Budget
2
Review Req.
Finance
PT = 5 mins.
C&A = 60%
0.25 days
4 hrs.
PT = 5 mins.
C&A = 95%
0.5 days
5 mins.
20 Reqs
Review 4
Requisition
40 hrs.
PT = 5 mins.
C&A = 90%
8 hrs.
PT = 5 mins.
C&A = 100%
1 days
5 mins.
8 hrs.
7
10 Reqs
1
PT = 10 mins.
C&A = 95%
4 hrs.
PT = 15 mins.
C&A = 98%
0.5 days
10 mins.
Approve in
ERP
24 hrs.
PT = 5 mins.
C&A = 90%
3 days
15 mins.
Submit PO
to Supplier
8
63 Reqs
9
10
External
Supplier
Corp Purchasing
Manager
1
Admin Asst
Financial Mgr
1
1 days
5 mins.
Enter
Requisition
Review 6
Requisition
IS Manager
1
1
5 days
5 mins.
Review 5
Requisition
Sys Engineer
Supervisor
2
6
2 hrs.
3
Corp Purchasing
6
56 hrs.
PT = 15 mins.
C&A = 98%
7 days
5 mins.
80 hrs.
PT = 20 mins.
10 days
15 mins.
LT = 28.4 days
PT = 65 mins.
AR = 0.477%
RFPY = 4.2%
Customer Demand:
615 requisitions per y ear
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activ ity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Y ield
73. Future State Value Stream Map
Supplies Purchasing - Future State VSM
Purchasing — Non-repetitive purchases less than $5,000
Additional
IT access
Enter Req.
in ERP
Integrate Form
File with File
Maker
1
Originator
31
PT=30 mins.
C&A = 85%
Supplies
Requisition
Checklist
Vendor
Websites
File Maker
Cross
Training
Approval
Additional
IT access
2
4 hrs.
6 hrs.
0.75 days
5 mins.
Place
Order
3
4
5
External
Supplier
6
PT=20 mins.
80 hrs.
PT=20 mins.
C&A = 98%
1 days
5 mins.
Dedicated
Buyers
Corp Purchasing
8 hrs.
PT=5 mins.
C&A = 90%
PT=5 mins.
C&A = 95%
0.5 days
Approve
in ERP
Dept.
Manager
1
Supervisor
2
Use budget in place
of Quicken
Auto Notify
Standard
Work for
review
Review
Req.
ERP
10 days
20 mins.
LT = 12.3 days
PT = 30 mins.
AR = 0.508%
Customer Demand:
615 requistions per year
PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield
RFPY = 71%
75. Current State Value Stream Map
Service Organization
Source Refrigeration & HVAC, Inc.
Current State Value Stream Map
Serv ice Deliv ery
Created February 11, 2009
CONFIDENTIAL
Customer
Great
Plains
Verisae
(Customer)
Special Order
Part
Excel
Spreadsheet
(Customer)
Supplier
Tech
Upload time
card
Close call in
Verisae
Process Time
Cards
Tech
Account
Manager
(West)
Payroll Admin
PT = 0 mins.
%C&A = 70%
Batch: 1x/day
PT = 1 mins.
%C&A = 90%
Batch: 1x/day
Complete Call
in GP
Pick up Part
at Parts Store
Review
Service Call
Data
?%
Tech
40%
Receive
customer call
Select &
Dispatch Tech
Call Center
Dispatcher &
Service
Manager
5 m.
120 m.
PT = 2 mins.
%C&A = 60%
0.0833
hours
PT = 5 mins.
%C&A = 60%
Tech
PT = 90 mins.
%C&A = 90%
PT = 0 mins.
640 m.
240 m.
PT = 5 mins.
%C&A = 80%
PT = 120 mins.
%C&A = 40%
2 hours
75 minutes
Dispatcher
Tech
120 m.
1.25 hours
90 minutes
Make Repair;
Call to raise
the NTE
Get Part from
Truck
75 m.
1.5
hours
5 minutes
?%
Tech
90 m.
2 hours
2 minutes
Assess
Problem
PT = 75 mins.
%C&A = 95%
5 minutes
PT = 15 mins.
%C&A = 85%
Batch: 1x/day
Billing Admin
6 days
PT = 25 mins.
%C&A = 75%
Posting Admin
240 mins.
PT = 3 mins.
%C&A = 98%
Batch: 1x/day
640 m.
Account
Manager
3 minutes
Enter Invoices
into Verisae &
Excel; Mail
Invoices
Billing Admin
120 m.
PT = 10 mins.
%C&A = 85%
Batch: 3-5x per wk
10.7
hours
4 hours
25 minutes
Review
Invoices;
Close in
Verisae (Pac)
Review &
Post Invoices
Review Open
Ticket Report
48
hours
10 minutes
A/P Admin
PT = 10 mins.
%C&A = 90%
Batch: 1x/day
PT = 10 mins.
%C&A = 50%
Batch: 2x/day
10.7
hours
4 hours
120 minutes
Service
Manager
Process A/P
Receive
Cash; Post
Payment
Collections
60 days
PT = 4 mins.
%C&A = 95%
Batch: 1x/week
480
hours
2 hours
10 minutes
4 minutes
Lead Time = 572 hours
Process Time = 349 minutes
Acronym Key
%C&A %Complete and Accurate
AR
Activity Ratio
FTE
Full Time Equivalent
LT
Lead Time
PT
Process Time
RFPY Rolled First Pass Yield
Lead Time to invoice = 86.2 hrs
Process Time =5.9 hrs.
NOTE: Business hours
Activity Ratio = 6.8%
RFPY = 1.1%
Lead time to cash = ? days
75
76. Future Future State Value Stream Map Map
State Value Stream
Source Refrigeration & HVAC, Inc.
Service Organization
Service Delivery
T&M Target example, refrigeration component repair, non-peak season (35 w ork orders per day)
Created February 13, 2009
CONFIDENTIAL
Create Source
preferred T & C's
Explore flat rate
pricing
Customer
%C&A = 99%
Establish
parameters for time
& parts by
service type
EDI Interf ace
Create EDI
Interface w/
Customers
Create Tech
performance
report
Create EDI
Interface w/
Verisae
Supplier
Great
Plains
No EDI
Special Order
Part
Improve Tech
Training; Create
Sub-levels
Improve Tech
Onboarding
Tech
Create Tech
Support Center
Implement
GPS
Contact Tech
Support As
Needed
Install kanban
on trucks
?
Centralize
Dispatch
10%
Assess
Problem
Dispatcher
120 mins.
PT = 7 mins.
%C&A = 85%
2 hrs.
Make Repair;
Complete call
on handheld
Tech
PT = 75 mins.
%C&A = 90%
PT = 0 mins.
`
24 hrs.
PT = 120 mins.
%C&A = 75%
2 hrs.
1.25 hrs.
Create stnd work
for invoicing
PT = 5 mins.
%C&A = 99%
1x daily
Billing Admin
Compare
invoice
register to
invoices and
mail invoices
4 hrs.
PT = 25 mins.
%C&A = 95%
24 hrs.
2 hrs.
Create
Customer Billing
Teams
Review W.O.,
payroll, AP &
invoice; post
immediately
Tech
2 hrs.
1.25 hrs.
1.25 hrs.
Create invoice
exception report
Get Part from
Truck
75 mins.
1.25 hrs.
0.117 hrs.
?
Enter data
into Verisae
and Excel
from Daily
Report
Billing Admin
Standardize
Truck Inventory
PT = 75 mins.
%C&A = 95%
Tech
75 mins.
Separate labor
& payroll
Pick up Part
at Parts Store
Tech
Tech
Create W.O.
Dispatch Tech
Excel
Spreadsheet
(Customer)
Verisae
(Customer)
Billing Admin
Receive
Cash; Post
Payment
Collections
60 days
PT = 5 mins.
%C&A = 99%
1x daily
4 hrs.
0.417 hrs.
480 hrs.
0.0833 hrs.
Lead Time = 520 hrs.
Process Time = 5.12 hrs.
Acronym Key
%C&A %Complete and Accurate
AR
Activity Ratio
FTE
Full Time Equivalent
LT
Lead Time
PT
Process Time
RFPY
Rolled First Pass Yield
Lead Time to invoice = 34.5 hrs
NOTE: Business hours
Process Time = 5.1 hrs.
Activity Ratio = 14.8%
RFPY = 45.4%
Lead time to cash = 67 days
76
78. Future State Implementation Plan - CONFIDENTIAL
Executive Sponsor Lauren Abrams
Implementation Plan Review Dates
Value Stream Champion Lisa Baldewin
Value Stream Mapping Facilitator Karen Martin
Date Created 3/4/2009
Kaizen
Burst #
Objective / Projected Results
Type
Owner
Integrate call center and dispatch.
PROJ
2
Create and implement tech suport
center.
PROJ
Bill V
3
Explore EDI with customers for work
PROJ
orders & invoicing
4
Implement GPS.
4,7
Improvement Activity
Implementation Schedule (months)
J F M A M J J A S O N D
Bill V
1
Pre-req
6
7
35 WO/day = 735 WO/month. 40% to parts store =
294 WO x 75 mins = 367.5 hrs. If 3.25 hrs/repair =
add'l 113 repairs per month x X avg labor
charge/invoice = X potential add'l rev.
X
X
X
Steve M
X
X
PROJ
Curtis C
X
X
Create 90-day onboarding process.
KE
Justin C
KE
Rich T
X
Revise tech level criteria.
5,6
X
Develop & roll-out tech training for
existing employees. DOW
5
X
KE
Husein A
X
X
Create standardization plan for
trucks (e.g. tools, equipment, parts, PROJ
PPE).
PROJ
Fred S
Revise reason codes for credit
memos.
JDI
Lisa B
Design & pilot flat rate pricing
PROJ
Draft preferred Source T & C's
(MAC).
PROJ
Mark K
13
Centralize key customers billing;
create billing standard work.
PROJ
Renae H
14
Separate labor & payroll.
PROJ
Lisa B
X
15
Create Target summary invoice.
JDI
Renae H
Resolve missing invoice situation.
JDI
Lisa B
Create standard work for billing and
PROJ
collections process.
Lauren
19
Explore EDI for tech "complete"
status with Verisae
PROJ
Steve M
PROJ
Rich B
X
X
X
X
X
X
X
X
X
X
X
X
X
KE Complete
working on 30
day List
X
X
17
X
X
16
X
Shawn C
12
X
X
Fred S
5S and pilot kanban on tech trucks;
pilot water spider function for parts.
X
Date
Complete
8
9
8*
10
11
20
24*
24*
Create technician performance
X
X
X
Done
X
X
X
X
X
X
X
In Testing
X
In Process
X
X
X
X
X
X
X
X
X
X
X
X
X
X
78
79. Future State Implementation Plan
Value Stream Outpatient Imaging
Implementation Plan Review Dates
Executive Sponsor Allen Ward
11/1/2007
Value Stream Champion Sally McKinsey
11/21/2007
Value Stream Mapping Facilitator Dave Parks
12/13/2007
Date Created 10/18/2007
Block
#
2
Goal / Objective
Improve quality of referral
Improvement Activity
Type
KE
Implement standard work for referral
process
Owner
Sean O'Ryan
PROJ
1/10/2008
Implementation Schedule (weeks)
2 3 4 5 6 7 8 9 10 11 12
Dianne
Prichard
3, 4
Reduce lead time beween schedulingand
Cross-train and colocate work teams
preregistration steps
5, 6
Eliminate the need for two patient checkins
Collect copays in Imaging
KE
Michael
O'Shea
6
Eliminate bottleneck in waiting area
Balance work / level demand
KE
Dianne
Prichard
9
Eliminate lead time associated with
transcription step
Implement voice recognition technology
PROJ
Sam Parks
10
Eliminate batched reading
Reduce setup required
KE
Sam Parks
7
Reduce inventory costs, regulatory risk
and storage needs
5S CT supplies area; implement kanban
KE
Michael
O'Shea
12
Reduce delay in report delivery
Implement additional fax ports
PROJ
Martha Allen
12
Reduce delay in report delivery
Increase percentage of physicians
receiving electronic delivery (rather than
hard copy)
KE
1
Martha Allen
Approvals
Executive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Signature:
Signature:
Signature:
Date:
Date:
Date:
Date
Complete
83. Common Differences - Manufacturing vs. Office VSMs
Manufacturing
Office
Upper right
Center
Upper left
None
“The thing” we’re
following
Raw material, subassemblies, finished goods
Paper, verbal, and
electronic Information
Information Flow
More structured /
formalized I.T. systems
Multiple I.T. systems and
work-arounds
Multiple points across VSM
Work not scheduled
Yes
Sometimes
Inventory triangle
In-bin (if preferred)
First Pass Yield (FPY)
Percent Complete &
Accurate (%C&A)
Takt Time
Typically can be applied
Only applicable with
dedicated resources
LT determination for
each block
Based on WIP between
process blocks
Based on a single item
passing through
Customer icon
Supplier icon
Schedule notification
Material flow (via
hollow arrow)
WIP icon
Quality Metric
84. Recommended Resources
The Complete Lean Enterprise,
Beau Keyte & Drew Locher
Value Stream Management for
the Lean Office, Don Tapping &
Tom Shuker