Continuous Improvement Toolkit Value Stream Mapping www.citoolkit.com The Continuous Improvement Map Managing Selecting & Decision Making Planning & Project Management* Risk PDPC Break-even Analysis Importance Urgency Matrix Daily Planning PERT/CPM FMEA RAID Log* Quality Function Deployment Cost Benefit Analysis MOST RACI Matrix Activity Networks Risk Analysis* Payoff Matrix Delphi Method TPN Analysis SWOT Analysis Stakeholder Analysis Fault Tree Analysis Decision Tree Pick Chart Voting Four Field Matrix Project Charter Improvement Roadmaps Critical-to X Force Field Analysis Portfolio Matrix Traffic Light Assessment PDCA Policy Deployment Gantt Charts Kano Decision Balance Sheet Paired Comparison Lean Measures OEE DMAIC Kaizen Events Control Planning Cost of Quality* Pugh Matrix Prioritization Matrix Process Yield A3 Thinking Standard Work Document control Matrix Diagram Project KPIs KPIs Pareto Analysis Best Practices Implementing Capability Indices Understanding Descriptive Statistics Chi-Square Nonparametric TPM Automation Solutions*** Gap Analysis* Cause & Effect Hypothesis Probability Distributions ANOVA DOE Mistake Proofing Health & Safety Bottleneck Analysis Histograms Normal Distribution Multivariate Multi-vari Studies Simulation Just in Time 5S Reliability MSA Graphical Methods Scatter Plots Correlation Regression Quick Changeover Visual Management Understanding Run Charts 5 Whys Root Cause Analysis Data Mining Product Family Matrix Flow Pull Performance** Control Charts SIPOC* Spaghetti** Process Redesign Benchmarking*** Fishbone Diagrams Relations Mapping Data collection planner* Sampling How-How Diagram*** Tree Diagram* Waste Analysis** Value Stream Mapping** Check Sheets** Interviews Brainstorming SCAMPER*** Attribute Analysis Value Analysis** Process Mapping Questionnaires Focus Groups Affinity Diagrams Morphological Analysis Flow Process Charts** Time Value Map** Data Observations Mind Mapping* Lateral Thinking Flowcharting IDEF0 Service Blueprints Collection Suggestion Systems Five Ws Group Creativity Designing & Analyzing Processes www.citoolkit.com 2 Value Stream Mapping A high-level visual representation of a business process www.citoolkit.com 3 Value Stream Mapping Involves the value-added and non-value-added work needed to create the products and services in response to customer needs www.citoolkit.com 4 Value Stream Mapping Provides a graphical representation of the information and material flows www.citoolkit.com 5 Value Stream Mapping Considered an improvement tool rather than just a definition of how the process operates or should operate www.citoolkit.com 6 Value Stream Mapping Considered as a tool for: Continuous Change Communication Improvement Management www.citoolkit.com 7 Value Stream Mapping Considered as a tool for: Continuous Change Communication Improvement Management A team may see an opportunity for maximizing the production rate to match the rate of customer demand www.citoolkit.com 8 Value Stream Mapping Considered as a tool for: Continuous Change Communication Improvement Management Useful for drawing a future state map or a blue-sky vision toward achieving the desired change www.citoolkit.com 9 Value Stream Mapping Considered as a tool for: Continuous Change Communication Improvement Management Effectively communicates where to focus the continuous improvement and change efforts www.citoolkit.com 10 Value Stream Mapping A dynamic tool as it is continually be updated as the process is improved www.citoolkit.com 11 Value Stream Mapping Often considered as the first and last thing to do during a lean project LEAN www.citoolkit.com 12 Value Stream Mapping Used to identify opportunities for reducing waste and improving quality and performance By making the non-value-added activities easier to identify, and this is the heart of improving any business process www.citoolkit.com 13 Value Stream Mapping Often associated with manufacturing Can also be applied in product development and service-related industries such as healthcare, hospitality and logistics www.citoolkit.com 14 Value Stream Mapping Used when you want improve an end-to-end process in a single site Process Level Start Single Site here Multiple Sites Supply Chain www.citoolkit.com 15 Value Stream Mapping Tends to display more information than a typical process map or flowchart However, a value stream map does not track all possible paths that a process can take (does not include decisions) Consider creating a process map before creating a value stream map as this will help better identify the value stream www.citoolkit.com 16 Value Stream Mapping Preferred over other process mapping techniques . When you want to find out the When you want to improve Lean opportunities that exist 10 productivity, utilization, and in your core processes load distribution of staff When you want to know the 20 When you want to know the various inventories and delays effectiveness of your exist in your processes 30 customer service approach When you want to know the When you want to present the various business systems 40 health of your processes to used by your processes the top management www.citoolkit.com 17 Value Stream Mapping Benefits Helps to understand Provides the opportunity the flow of value as to understand what is perceived by the happening today. customer. It gives everyone a Provides the opportunity chance to see how to discuss and plan the their work fits into needed improvements. the big picture. www.citoolkit.com 18 Value Stream Mapping Benefits Helps making the Enables to see the process as close to LEAN big picture from lean as possible. beginning to end. Helps identify and Helps establishing eliminate waste a future state within the value vision. stream. www.citoolkit.com 19 Value Stream Mapping Benefits Enables to see where problems lie within processes . Non-value- Problems added and Delays activities inconsistencies Excessive Other forms Bottlenecks inventory of waste levels www.citoolkit.com 20 Value Stream Mapping Other Benefits Provides important descriptive information for the operation Help understanding and improving workplace organization Enable to see how improvements in one area will impact on other areas Provides a framework for conversations and problem-solving Provides a common visual language to understand complex processes Demonstrates the interaction between material flow and information flow Provides direction for streamlining, transformation and change www.citoolkit.com 21 Value Stream Mapping Value Stream The set of activities required to convert raw materials to finished products in the hands of the customer SUPPLIERS CUSTOMERS The product here may indicate any part, service or the combination of both www.citoolkit.com 22 Value Stream Mapping Value Stream – Other Definitions The set of all the specific actions required to bring a specific product through the three critical business management tasks: “The steps required to 1- Problem solving create a product or 2- Information management complete a service” 3- Physical transformation Womack and Jones Examining the value stream helps to identify waste and non-value-added activities www.citoolkit.com 23 Value Stream Mapping Value Stream A value stream map is a flow layout of the material and information flows Material flow, Manual and electronic where products information flow flow through the along with the stream material flow www.citoolkit.com 24 Value Stream Mapping Material Flow Includes processing, handling, transport and storage Material flows involve physical product flow from suppliers to consumers, as well as the returns of products, rework, recycling and disposal www.citoolkit.com 25 Value Stream Mapping Inventory It is also important to look at the amount of stored raw materials, work in process (WIP), and finished products Raw Materials Work in Process Finished Goods www.citoolkit.com 26 Value Stream Mapping Information Flow Important to the effective control of the material flow Information is important to ensure that customers and suppliers will provide and receive information before any physical product or material is shipped or received. www.citoolkit.com 27 Value Stream Mapping Information Flow – Information Types Manual – information that is passed on manually or verbally Electronic – information that is passed on via telephone, fax, email, etc. www.citoolkit.com 28 Value Stream Mapping Information flow may include . Demand forecasts The transmission of orders Schedules, instructions, approvals and reports Financial related flows Verbal discussions and communication www.citoolkit.com 29 Value Stream Mapping VSM Manufacturing Example Spans from order taking to product delivery Production control Supplier Customer Daily schedule Material Processing Packaging Shipping handling I FIFO www.citoolkit.com 30 Value Stream Mapping Non-Manufacturing Example – Equipment Installation Forecasting Customer Email request service Supplier Customer Schedule installation Notification Install Functional Pick up parts I equipment test www.citoolkit.com 31 Value Stream Mapping Which Product to Select? No need to map the flow of every product, but the production of a single product or single product family Consider a product which has a high business impact Consider long lead time and high-volume products or services www.citoolkit.com 32 Value Stream Mapping A Product Family Matrix may help! Product Press Shape Bend Paint Package A X X X X B X X X X C X X X D X X X Generate a single flow diagram that is suitable for all product families www.citoolkit.com 33 Value