Value Stream Mapping

Basics

Learning Objectives
At the end of this module, you will be able to:

Sketch a basic value stream map

Demonstrate basic value stream analysis

Recognize steps for process improvement
using value stream mapping and analysis

VSM Basics V7.6 - Slide 2

2012 Massachusetts Institute of Technology

Hot Dog Stand Process Map

$

11 - Clean up

Image by MIT OpenCourseWare.

1- Take order

10 - Set up

2
In
order

9 - Deliver to
customer

8 - Add
beverage

3 - Get order
Cook dogs

7
Order
OK
?
No

Yes

6
Out
order
Yes

4 - Put in bun,
wrap, add fruit
No

5
Another
dog
?

How can Sasha and Andy improve their productivity

to meet growing customer demand?
VSM Basics V7.6 - Slide 3
2012 Massachusetts Institute of Technology

Five Lean Thinking

Fundamentals
Specify value: Value is defined by customer in terms of
specific products and services

Identify the value stream: Map out all end-to-end linked

actions, processes and functions necessary for

transforming inputs to outputs to identify and eliminate
waste

Make value flow continuously: Having eliminated waste,

make remaining value-creating steps flow

Let customers pull value: Customers pull cascades all

the way back to the lowest level supplier, enabling just-intime production

Pursue perfection: Pursue continuous process of

improvement striving for perfection

Ref: James Womack and Daniel T. Jones, Lean Thinking (New York: Simon & Schuster, 1996).

VSM Basics V7.6 - Slide 4

2012 Massachusetts Institute of Technology

Value Stream Map (VSM)

A tool used to improve a process by identifying added

value and eliminating waste

A process map that follows the value creation process

strap yourself to the product (or service)

and see where you go

A process map with data added

Times: processing, wait, cycle

Quality: number of rejects
Inventory
Resources

Number of people
Space
Distance traveled

Whatever else is useful for analyzing the process

VSM Basics V7.6 - Slide 5
2012 Massachusetts Institute of Technology

Steps for Creating a VSM

1. Define customer value and the process

Walk the process to identify tasks and flows

Identify value-added and waste process steps

2. Create the current state VSM

Gather data on resources, time, quality for each step

3. Analyze map to determine opportunities for

improvement

Identify bottlenecks and other flow impediments

Brainstorm actions to eliminate waste and add value

4. Create a future-state map to visualize the

desired and realistic next state
5. Create action plans to move toward future state
VSM Basics V7.6 - Slide 6
2012 Massachusetts Institute of Technology

Step 1: S&A Customer Value

and Process Map

Current Demand
50 customers
100 hot dogs

Image by MIT OpenCourseWare.

1- Take order

10 - Set up

2
In
order

9 - Deliver to
customer

Customer Value
Good food
Faster service

8 - Add
beverage

3 - Get order
Cook dogs

11 - Clean up

7
Order
OK
?
No

6
Out
order

Yes

Yes

4 - Put in bun,
wrap, add fruit
No

5
Another
dog
?

This process map follows the value creation process

Value/waste assessed at each process step
VSM Basics V7.6 - Slide 7
2012 Massachusetts Institute of Technology

Step 2: Add Data

T = 48 sec
Image by MIT OpenCourseWare.

Qual = 100%
T = 11 sec

T = 30 sec

Qual = 100%

Qual = 100%

1- Take order

Qual = 90%

T = 10 sec

T = 60 sec

Qual = 100%

9 - Deliver to
customer

Yes

8 - Add
beverage

No 10%

10 - Set up
T = 48 sec
Qual = 100%

2
In
order
T = 30 sec

3 - Get order
Cook dogs

7
Order
OK
?

4 - Put in bun,
wrap, add fruit

T = 110 sec

T = 44 sec

Qual = 100%

Qual = 100%

11 - Clean up

6
Out
order

T = 33 sec

Yes
5
Another
dog
?
No
T = 22 sec

Display of relevant data completes basic VSM

Images by MIT OpenCourseWare.

VSM Basics V7.6 - Slide 8

2012 Massachusetts Institute of Technology

S&A Takt And Cycle Times

Current demand
50 customers

Open from 10AM - 2PM

Available time
4hrs 60min /hr
=
= 4.8min = 288 sec
Customer demand 50 customers
Cycle time (summed from previous data)
= 7.4 min = 446 sec
Takt time =

Valid alternate calculation

assume setup/cleanup is done when things are slow
10 - Set up

11 - Clean up

Available time
4hrs 50min /hr
Takt time =
=
= 4.0min = 240 sec
Customer demand 50 customers
Cycle time (excluding set up & clean up)
= 5.8 min = 350 sec
Cycle time > takt time, but two workers can demand be met?
VSM Basics V7.6 - Slide 9
2012 Massachusetts Institute of Technology

Step 3: Value Stream Analysis

Sasha

Andy
Image by MIT OpenCourseWare.

Image by MIT OpenCourseWare.

With your team, take 15 minutes to

Calculate the total

Value added time
Non value added time
Wait time
Calculate the total touch time that Sasha and
Andy spend on a single order

Be ready to report your answers to the class

VSM Basics V7.6 - Slide 10
2012 Massachusetts Institute of Technology

Utilization and Capacity

VAT is only slightly over 50% Opportunities for improvement
Available time = 4 hours = 240 min
Worktime: Touch time per order X number of orders
Sashas tasks:
/60 min X 50 cust. = _____ min
Andys tasks:
/60 min X 50 cust = _____ min
Utilization: Worktime / time available
Sashas: (_____min / 240 min) X 100% = ____%
Andys: (_____min / 240 min) X 100% = ____%
Capacity: Time available / touch time per order
Andy working at 100% = (240min X 60) / _____sec = ___

VSM Basics V7.6 - Slide 11

2012 Massachusetts Institute of Technology

Utilization and Capacity

VAT is only slightly over 50% Opportunities for improvement
Available time = 4 hours = 240 min
Worktime: Touch time per order X number of orders
133 min
Sashas tasks:159 /60 min X 50 cust. = _____
Andys tasks: 224 /60 min X 50 cust = _____
187 min
Utilization: Worktime / time available
55
133
Sashas: (_____min
/ 240 min) X 100% = ____%
Andys: (_____min
/ 240 min) X 100% = ____%
187
78
Capacity: Time available / touch time per order
224
64
Andy working at 100% = (240min X 60) / _____sec
= ___
We will consider complications like varying orders or
irregularly spaced customers in the Variation Module
VSM Basics V7.6 - Slide 12
2012 Massachusetts Institute of Technology

Summary - S&A Value Stream

Analysis (VSA)
Current production (50 customers) is a little below

current capacity (64 customers) of Andy and Sasha

Andy and Sasha are both underutilized

Process improvement needed to meet growing

demand
But utilization is not balanced between them

Cycle time of 7.43 min per customer

(or even 5.8 min) too long

Should be able to shorten cycle time to meet

demands of customers for faster service

Bottom Line
Sasha and Andy should implement process
improvement for week 3 to meet growing demand!
VSM Basics V7.6 - Slide 13
2012 Massachusetts Institute of Technology

Improvement Brainstorm

Sasha

Andy
Image by MIT OpenCourseWare.

Image by MIT OpenCourseWare.

Help Sasha and Andy figure what to improve

How can utilization be improved?

How can cycle time be reduced?
What has to be done to serve 75 customers?
What has to be done to serve 100 customers?

VSM Basics V7.6 - Slide 14

2012 Massachusetts Institute of Technology

Brainstorm Bursts
$

11 - Clean up

Image by MIT OpenCourseWare.

1- Take order

9 - Deliver to
customer

8 - Add
beverage

7
NVA
Order
Inspection
OK

Yes

No

10 - Set up

2
In
Order

3 - Get order
Cook dogs

Balance
Work

4 - Put in bun,
wrap, add fruit

6
Out
Order
Yes
5
NVA
Another
dog
Inspection
?
No

VSM Basics V7.6 - Slide 15

2012 Massachusetts Institute of Technology

Steps for Creating a VSM

1. Define customer value
2. Create a current state map

Walk the process to identify tasks and flows

Gather data on resources, time, quality for each

3. Analyze map to determine opportunities for

improvement

Identify value-added and waste

Brainstorm actions to eliminate waste and add value

4. Create future-state map to visualize the desired

state
5. Create action plans to move towards future-state

VSM Basics V7.6 - Slide 16

2012 Massachusetts Institute of Technology

Why is VSM a Useful Tool?

Helps visualize interactions and flows

Shows linkages between information and product

flows

Provides a common language for talking about a

process

Helps to identify:

the constraint(s) - any resource whose capacity is

less than customer demand;
wastes as well as their sources

Adapted from: M. Rother and J. Shook, Learning to See, Lean Enterprise Institute, 1998

VSM Basics V7.6 - Slide 17

2012 Massachusetts Institute of Technology

Tips for Creating a VSM

Involve entire team

Actually walk the process - follow the material
and information through the process, starting
at the beginning

Use Post-it notes and butcher paper

Use symbols or icons that are meaningful to
the process but common enough to be
understood by all involved

VSM Basics V7.6 - Slide 18

2012 Massachusetts Institute of Technology

Industrial Strength Example

Jefferson Healthcare Clinic - Current State Map
OVERALL CLINIC DATA

EXTERNAL
PROVIDERS

Reception

Reception

- Cancel by reason - see chart A

- Payor mix commercial 38%

ROS
V1

- # of Pts on panel 5997

- Days out for first 3

rd

Salmon
reminder
(PTFP)

Document delays 2%

Scripts

visit 3.75

Enterprise

Obtain
Demographics
mini-reg &
Send packet

Hot

Reception

Reception

Enterprise

EMR

Enterprise

Call patient
to schedule

Input Med
History
Reception

ROS
V1

Interface

EMR

Check-in
patient for
visit

Room &
perform
vitals, etc.

Reception

RN

2.2

19.1
1.6

- Schedule on 1 st call 0%

Enterprise

Pre-reg,
Schedule, &
Send packet

Reg Pkt
V2

Reception

- Schedule on 1 st call 100%

- # of Pts on panel 5886
- Days out for new visit - 15.01

Scripts

Routing
Slips
Med
list

Educ.
EMR

Orders

See
patient

- # of Pts on panel - 5998

- No shows 2%

- On-time starts 37%

- Days out for first 3 rd visit 2.00

- On-time starts 37%

- Time by diagnosis Chart D

- Days out by provider- see chart C

- Document delays 12%

- Volume by hour Chart E

EMR

MediTech

MediTech

Referrals

Check-out
patient

Walk to
hospital

Register for
Ancillary
Services

HOSPTIAL
Ancillary Services

Hospital
Registration
4.8 walk
or return

4.4
20.7

Rad
film

Interface

EMR

Referral
Coordinator

MD, PA
31.2

9.7

- Volume by Diagnosis See chart B

EXTERNAL
PHARMACIES

- Days out by provider - See C

Reg Pkt
V2

- Satisfaction overall 74.4

Visit Clinic

Phone call

Phone call
- Schedule on 1 st call 0%

- Market share - Hospital 46.7%

Wait for
ex prov
to
return
info

Input
Med History

PATIENT

Phone call

EMR

rg
ha

Reception

Enterprise

Receive
Med History
& Call to
Schedule

sc
Di

Wait for
pt to
return
packet

Request
Med
History
records

PATIENT DATA
- Volumes - 131 visit/day

Discharge

Reception

Med
History

ge

Reg Pkt
V1

- Utilization 88%

- Available hours per day 67

ha
r

Receive call
& Send
registration
packet

- Contact Hours 59/day

- Avg. Pts per hour - 1.83

Di
sc

Enterprise

- Blocked Hours 67/day

- Cost per visit - $125.39

14.0

L/T

2.3

2.1

- Referral volume 14.5 %

3.1

C/T

- Volumes by service 13.0%

- Lead-time by service - varies

ROS
V2

Input Med
History
following
Check-in

Reception

- Document delays 30%

LEGEND
= PTFP Scheduling

= Hospital Services

= OPC Scheduling

= Patient

= JMPG Scheduling

= Patient on schedule

= Clinic flow (all sites)

- Days out by provider See Chart C

Days out for first 3 rd visit 1.16

Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.

VSM Basics V7.6 - Slide 19
2012 Massachusetts Institute of Technology

Organization

Additional Graphic Elements

Swim Lanes organize tasks
by time and organization
Time
Castle Wall shows task and wait times
TT

WT

TT

WT

TT

WT

SUMS

WT
TT

Many ways to clarify the process

and present data in easy-to-understand form
Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.

VSM Basics V7.6 - Slide 20

2012 Massachusetts Institute of Technology

More Information

Courtesy of Lean Enterprise Institute. Used with permission.

VSM Basics V7.6 - Slide 21

2012 Massachusetts Institute of Technology

Reading List
Jimmerson, C., Value Stream Mapping for Healthcare Made
Easy, Productivity Press, New York, NY, 2010
McManus, H., Product Development Value Stream Mapping
(PDVSM Manual), Release 1.0, Sept 2005. Lean Advancement
Initiative.
Rother, M. and Shook, J. Learning to See, v1.2, The Lean
Enterprise Institute, Cambridge, MA June 1999

VSM Basics V7.6 - Slide 22

2012 Massachusetts Institute of Technology

Acknowledgements
Contributors
Sharon Johnson Worcester Polytechnic Inst.
Jose Macedo Cal Poly San Luis Obispo
Hugh McManus Metis Design
Ted Mayeshiba USC
Earll Murman MIT

VSM Basics V7.6 - Slide 23

2012 Massachusetts Institute of Technology

MIT OpenCourseWare
http://ocw.mit.edu

16.660J / ESD.62J / 16.853 Introduction to Lean Six Sigma Methods

IAP 2012

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