What is a Value Stream?

A value stream involves all the steps, both

value added and non value added, required to
complete a product or service from
beginning to end.

What is a Value Stream Map?

• Visual Representation of a Value Stream
• Pencil & Paper Tool
• Helps Reveal Waste & Problems with Flow
• Establishes a common language to document processes
• Provides a blueprint for improvement
 Value Stream Maps
What Makes Them Unique?
• Visualizes the process flow from a Systems Perspective
• Includes Information Flow and links it to process flow
• Documents Performance of the process
– End results in meeting customer requirements
– Metrics (Process time, Weight time, Lead time, First time
quality) to highlight waste
– Progress and quality become visible
 Using the Value Stream Mapping Tool
Value Stream Determine the Value
Scope Stream to be improved

Understanding how things

Current State
currently operate. This is the
Drawing
foundation for the future state
later improvement
Standardize for

Future State Designing a lean flow

Drawing

Developing a detailed plan of

Implementation
implementation to support
Plan
objectives (what, who, when)

Implementation The goal of mapping!

of Improved Plan
Typical Steps for Current State Mapping
• Document customer information & needs
• Who is it? What do they need? When do they need it?

• Identify main processes (in order)

• Select data attributes
• P/T, W/T and FTQ

• Perform “value stream walk” and fill in data boxes (how the
process really works)
• Pretend that you are the work / document / item being produced

• Establish how each process knows what to do next (how

work is prioritized) and document information flow
• Calculate process time, wait time, lead time, first time quality,
and any other metrics necessary to evaluate your Value
Stream
 Waste
Any element of production, processing, or distribution
that adds no value to the final product:
waste only adds cost & time

Points to Remember About Waste:

• It is important to consider waste in the context of the
value that the process provides to the customer
• Waste is really a symptom rather than a root cause of
the problem
• Waste points to problems within the system
• We need to find and address causes of waste to improve
flow
• Waste is most prevalent in the information flow of non-
manufacturing processes
• Conservative expert analysis suggests up to 40% of
what we do adds no value
 Tips for Identifying Waste
Following are things to look for to help identify waste in a
value stream:
• Low First Time Quality (FTQ)
• Long wait times as compared to process times
• Process steps requiring multiple iterations/reviews &
rework
• Excessive handoffs between people/organizations
• Multiple systems/computer tools used – may point to
redundant data entry & “translations”
• Starting too early – Does the process start earlier than it
needs to, with preliminary data, driving multiple
updates/reworks as “real” data becomes available?
• Look at the “system” level first for opportunities to
make bold moves
– Look for potential to eliminate entire process steps before
focusing on eliminating waste from unnecessary processes
 Changes

Current Future
State State

Grasp the Situation:

“Where Are We?” vs. “Where Should We Be?”
 • Customer requirements?
• Work flow smoothly?
• Trigger & sequence work?
• Rhythm (leveling)?
• Progress & delays visible?

Rule of Thumb for

• Process improvements?

Process Improvements

• To Improve the Performance of a Value Stream, plan at

the “System Level” and implement at the “Process Step
Level”
• Ensure adequate and available resources to implement
improvements in the future state Value Stream
• Process improvements must be standardized and
documented to “take hold” in the organization
• Provide feedback to team members, supervisors, and
managers and make it possible for all employees to
contribute to continuous improvement
 Future State Questions
• What are the customer requirements?
– How can we ensure that the customer gets what they need, when they need it?
– Can the timing of the customer requirements be used to establish a pace of work (takt
time) for the value stream?
• How will you make work flow smoothly?
– How can we get information to the customer with few/no handoffs?
– How can we get information to the customer with no correction or rework required?
– How will multiple or parallel flows be synchronized?
– Is there backflow (repeat or rework) loops that can be eliminated?
– Can a person complete the activity in one sitting?
– Can you touch each piece of paper only once, or go to each screen only once, for each
activity?
– What steps could be combined or eliminated to simplify flow?
• Where and how will you trigger or sequence work?
– Can you have one trigger point with uninterrupted process flow?
• How will you establish rhythm or milestones to pace the work and surface problems?
– How will you use milestones to create an internal pull to establish cadence / rhythm?
– What can be done to level the workload and eliminate the frustrating “peaks” and
“valleys”?
• How will you make work progress and delays visible?
– What visual management tools will you use to make progress & delays visible?
– How will you be sure you know the progress of the work?
• What process improvements are necessary to achieve your Value Stream vision?
– How will you ensure adequate and available resources to improve First Time Quality at
each process step in the value stream?
 Business Plan Deployment
Goal:
Schedule & Control Points
# OBJECTIVE & METHODS RESPONSIBLE TARGET
Jan Feb Mar
Status
1.0
OBJECTIVE: Text area for Objective.
1.1
METHODS: Text area for Methods.
1.2

Objectives
1.3 Targets Timing
1.4

1.5
Methods Status
1.6

2.0
OBJECTIVE: Responsible
2.1
METHODS:
2.2

3.0
OBJECTIVE:
3.1
METHODS:
3.2

3.3

3.4
 Business Plan Deployment
Is a PDCA Cycle
Countermeasure
4 Action Plans 1 BPD Plan
Plant Master Plan
Countermeasures/Action Plans
Tasks
Items

Act Plan
3 2 Do the Plan
Check (evaluation) Check Do
Plan

Do
2

Check

Act
“Typical” VSM Project
Scoping
3 sessions (completed at least 1 wk prior to workshop)
- Pre-Scoping (1-2 hours)
- Scoping (4 hours)
- Confirmation Scoping (2-3 hrs) (if necessary)
- Leadership Panel Conference Call (30 mins)

Workshop
3 days
- Day 1: Training & Current State
- Day 2: Training & Future State & Leadership Panel
- Day 3: Implementation Planning & Leadership Panel

Implementation
90 days or less
- Establish Review sessions (up to 4)
- Kaizen Bursts to be addressed (Potentially other GoFasts)
- Measure Results to bottom line
- Update War Room, Functional VP, other Impl Leaders