Value Stream Mapping (VSM)

Workshop
 Agenda
• Intros
• What is VSM?
• Benefits of VSM
• VSM Elements
• Exercise
• Break
• VSM Process
• VSM Symbols
• Summary
• Resources
• Q&A
 Introductions
• 30 seconds each
• Where do you work?
• Why do they pay you? What value do you
provide?
• Where are you from?
• What is your background on Lean?
 What is a Value Stream Map?
• VSM = Value Stream Map
• VSM is a visual means to depict and improve
the flow of processes, as well as the
information that controls the flow of materials
and information through the process
• Starts from customer request for product or
service, to delivery of item back to customer
• Developed in an event format, usually 3-5 days
with a cross-functional team
 VSM Elements

http://www.greensuppliers.gov/tech/tools.html?id=lean_clean

5
 CONFUSION AROUND VALUE STREAM MAPPING TIMELINE
Lead Time = 38 mins

Cycle Time = 30 mins

Example: Review Design Changes Value Added = 10 mins

Waiting:
NVA: Loading VA: Reviewing VA: Make Decision
Busy with other NVA: Inspecting, fixing typos, print out file, complete paperwork
Program changes and Submit
tasks 16 mins
8 mins 4 mins 6 mins 4 mins

Setup Send email with

complete approval
Request arrives
for design change Work starts on
design change

Review Design
Process Name Change

Lead Time 38 mins

Cycle (Working) Time 30 mins
Value Added Time 10 mins
 Benefits of a VSM
• Looking horizontally across a company at the
system level, similar to how a customer would
view the process
• Highlights areas where the product or service
flow stops or is constrained
• Reduces sub-optimizing
• Team building and networking
• Improved communication
 VSM Video

https://www.youtube.com/watch?v=YYsn0X0EVRI (10 mins)

 Others having success…
• Woodfold Manufacturing reduced volatile
organic compound (VOC) emissions by nearly
1,000 lbs per year and diverted 6 tons per year
of solid PVC waste from the landfill through
opportunities identified in a value stream
mapping event.

EPA The Environmental Professional’s Guide to Lean & Six Sigma

 And more…

https://www.epa.gov/lean/lean-environment-toolkit-chapter-3
 Traditional VSM with Water Data

Data Box

http://www.epa.gov/lean/environment/toolkits/water/resources/lean-water-toolkit.pdf
Water VSM using water not timeline

http://www.epa.gov/lean/environment/toolkits/environment/ch3.htm
 Focus on Customer Response Time
• The largest obstacle is the fact that waste
often hides in plain sight, or is designed into
activities
• We cannot eliminate the waste of material,
labor, or other resources until we recognize
it as waste
– A job can consist of 99% waste
• 1 hour task that takes 1 week to provide customer
what they asked for
 Value vs non-value added

Customer View: Before and After Lean

24 mins of work
Before
1 day response

24 mins of work
After
1 hour response

0 100 200 300 400 500 600

Minutes

Remove delays (red) first, before reducing value time (green)

 VSM Before

Add Material Usage to Address Environmental Impact

 Review: TIM WOODS (8 Wastes)
• Waste = Non-value added
• Find and eliminate these 8 forms of waste in
your processes
VSM After
 VSM tie to Process Maps

EHS » Breaks VSM process boxes into

Painting specific process steps
3 people » Helps Lean teams see how the
C/T = 7 min current process works and locate
C/O = 4 hr
Uptime = 48% waste

Process Process Process

Step 1 Step 2 Step 3

Process Process Process

Step 1.1 Step 1.2 Step 1.3
Exercise

Making Pizza
 Pizza Exercise
• Watch the video
• Capture major process steps
• Collect inventory data
• Collect cycle time data
– Lead time and yield will be provided
 Pizza Making VSM Exercise

DOUGH SAUCE TOPPINGS

I I I

TRAYS SCREENS PIZZAS

C/T = _______ C/T = _______ C/T = _______

V/A Time = ____ V/A Time = ____ V/A Time = ____

VSM from Video
15 MINUTE BREAK
VSM Process Steps
 Steps to creating a VSM
• Define key product or service
• Define product family
• Determine improvements needed
• Schedule event with key team members
• Gather data (preparation)
• Conduct event
• Develop Action Plan
• Follow up (30/60/90 days)
• Schedule VSM refresher
 Define key product or service
• Most frequent requests
• Highest volume of work
• Most critical product/service
• Area with most issues/problems
• Future growth areas
• High visibility to customers
• Other strategic reasons
Define product family
 Determine improvements needed
• Customer complaints and issues
• Financial issues
– Overtime, margin, inventory, scrap, warranty
• Flow issues
– Bottlenecks, missed deliveries, shortages, rework
• Employee complaints and issues
– Absenteeism, tools, training, interruptions
 Schedule event with team
• Identify key resources across the value stream
– Use SIPOC diagram (next slide)
• Find people with most experience
– Delay event if not available
• Confirm attendance and expectations
• Review their responsibilities and who they
represent
 SIPOC – Community Recycling

Supplier Inputs Process Outputs Customer

Grocery store Food and drinks Purchase Items Trash Landfill

Department store Gifts Remove from Recycled Materials Residents

packaging
Farmer’s Market Household items Compost Dirt Community
Sort out waste into
Gas station Tools bins Greenhouse Gas Earth /
Emissions Environment
Department store City website Bins collected
Lechete
Restaurant Contents dropped
off to correct
City Officials location

Make sure Earth is included as a Customer!

31
 Gather data (preparation)
• Issues and complaints
• Interviews and focus
groups
• Observations and timings
• Historical data
• Inventory levels
• Scorecard and financial
performance
 Conduct event
• Typically 3-5 days
• Major phases
– Training
– Gemba Walk
– Current State Map
– Identify waste and opportunities
– Ideal State
– Future State Map
 Training
• Overview only to get everyone on same page,
not expert level
• Most learning will be hands-on during event
• Focus on tools used in event
• Interactive with simulations and videos is ideal
 Gemba Walk
• Japanese word for “the real
place”
• Go to where the actual work is
being done, interact with the
workers to improve decision
making and problem solving
• Shows respect for the workers
to understand what they do Courtesy aria-automobile-nord.com

• Referred to as “Gemba Walk”

or “Go and See”
 Current State
• What is happening today (snapshot)
• 80% of what is typically done
– not exceptions and one-off situations
• Based on data gathering and interviews during
event
• Capture problems, not solutions
• Must thoroughly understand current state
before making improvements
• Identify opportunities with burst symbol
 Identify waste and opportunities
• Customer satisfaction
• 8 forms of waste
• Longest lead times
• Longest cycle times
• Most inventory (bottlenecks)
• Frustration areas
• Overburden (muri)
• Instability/variation (mura)
 Ideal State
• How would you setup this process if you were
starting from scratch, with no boundaries, all the
money, all the people, all the resources you
wanted, along with the following principles in
place?
– Defect-free
– Just in time
– One piece flow
– Minimal inventory
– Lowest cost
– All value added processes
– Minimal space
 Future State
• Come back from reality from Ideal State
• How close can be get to Ideal State, given:
– Limited time (6-12 months)
– Limited budget (low cost solutions)
– Limited resources
– Current limitations (regulations, agencies,
customers, procedures/policies)
 VSM States

1 3 2
Current Future Ideal
State State State
 Develop Action Plan
• Identify potential solutions
• Determine impact and ease of implementation
• Vote on best ideas
• Create action plan with names, dates, and
deliverables
 Impact and Ease Matrix
1. Turn down water temp on
High 9 part wash machine
7 2. Dry sweep implementation
3. Water flow in bathroom sinks
8 4. Drip irrigation in landscaping
IMPACT

5. Reuse water in stress testing

1 equipment
5 6. Water flow in toilets
7. Part wash machine pipe
6 2 insulation
8. Water pipe leak fixed
4 3 9. Upgrade chiller
Low 10 10. Plug water pipe at end of
each shift
Hard Easy

EASE OF IMPLEMENTATION
 Multivoting (3-5 dots each)
1. Turn down water temp on part
wash machine
2. Dry sweep implementation
3. Water flow in bathroom sinks
4. Drip irrigation in landscaping
5. Reuse water in stress testing
equipment
6. Water flow in toilets
7. Part wash machine pipe
insulation
8. Water pipe leak fixed
9. Upgrade chiller
10. Plug water pipe at end of each
shift
 Action Item Tracker
# Action Assignee Due Date Deliverable Status Notes
1 Update procedure Vera 12/1/17 Procedure In Process Need
released and new rep
available in from HR
system
2 Email photos from Brion 8/1/17 Email with Complete
event photos
attached sent
to team
3 Kaizen event on Uma 1/15/18 Report out Not
hiring process from event started
 Follow up (30/60/90 days)
• Don’t wait for 30 days to follow-up
• Schedule immediately the week after event,
and each week for first month
• Suggest meeting weekly for first 90 days
• Some actions may require kaizen events to
complete
– Schedule and help facilitate events
• Track progress after improvements
– May be delayed due to backlog of work and metrics
 Schedule VSM refresher
• Typically updated every 6-18 months
– Depends on how much improvement is made
• Put on calendar immediately, including prep
time
• Captures benefits since last event
• Start from beginning, don’t update maps
– Unless nothing has changed 
Symbols
 VSM Symbols
Data Box
Supplier/Customer

Problem/
Opportunity
Process Step

Truck Delivery
Inventory

Manual Information Flow Push Supermarket

Pull
Electronic Information Flow
 VSM Symbols
Kanban Arriving
in Batches
Supermarket First In, First Out
Withdrawal
Signal Kanban

Load Leveling

Withdrawal Kanban

Buffer or Safety Stock

Production Kanban Kanban Post

Go and See
Production
Scheduling
 Summary
• VSM is a good tool for getting teams aligned,
focused on the customer, looking at system
optimization and reducing flow inhibitors
• Leads to plans that can reduce lead time by
50% or more!
• Takes significant effort, but very valuable
• Conduct current, ideal and future state maps
• Key is the follow-up with the action plan (by
process owner, not facilitator)
 Resources

Learning to See: Value Stream

Mapping to Add Value and Eliminate
MUDA
Mike Rother and John Shook

Value Stream Mapping: How to

Visualize Work and Align
Leadership for Organizational
Transformation
Karen Martin and Mike Osterling
Q&A
 Plus/Delta
• Plus (+)
– What did you like?
– What did you learn?

• Delta (Δ)
– What could have gone better?
– What was least valuable?
 What is BPI?
BUSINESS PERFORMANCE IMPROVEMENT

Helping businesses and organizations achieve “triple bottom line” performance

using Lean and Six Sigma

Think Globally Act Locally

 Services
• Mentor Current LSS Experts
• Analyze Data
• Research, Advise and Teach
• Facilitate Events
• Management Coaching
• Network
 Training Classes and Workshops
• Intro to Lean and Six • Variable and Attribute
Sigma Gage R&R
• Lean and Green • Regression and ANOVA
Workshop • Design of Experiments
• 5S Workplace • Advanced SPC
Organization • Value Stream Mapping
• Personal Lean (VSM)
• Statistical Process • Advanced Standard
Control (SPC) Work
• Capability Analysis • More coming soon…
(Cpk/Ppk)
http://www.biz-pi.com/PDX/
 Other Websites
• Business Performance Improvement
– BIZ-PI.com
• Earth Consultants - Lean Six Sigma and the
Environment (Planet)
– LeanSixSigmaEnvironment.org
• Lean Six Sigma for Good
– LeanSixSigmaForGood.com
• Lean Portland
– LeanPDX.org
 Contact
Brion Hurley
Lean Six Sigma Master Black Belt
Portland, Oregon (USA)
[email protected] @brionhurley
321-271-5361

@brionhurley