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Value Stream MappingValue Stream MappingEventEvent

Counseling ServicesCounseling ServicesAugust 2-3, 2011August 2-3, 2011

NEW Lean Consulting GroupNEW Lean Consulting Group

The Case for The Case for ChangeChange

EXPECTATIONS AND RESULTS

Insanity is doing the same thing over and over again and expecting

different results.Albert Einstein

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Counseling ClientCounseling ClientValue Stream MappingValue Stream Mapping

Agenda Lean educationLean education

• Customer satisfaction through waste eliminationCustomer satisfaction through waste elimination

• Value stream mappingValue stream mapping

Create current state mapCreate current state map Create future state mapCreate future state map Develop action planDevelop action plan

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Event Ground RulesEvent Ground Rules

Make no assumptionsMake no assumptions Take nothing personallyTake nothing personally Everyone’s opinion mattersEveryone’s opinion matters Everyone on the team is equalEveryone on the team is equal There are no bad ideas or stupid questionsThere are no bad ideas or stupid questions Never leave in silent disagreementNever leave in silent disagreement Maintain a positive attitudeMaintain a positive attitude Think out side of the box!Think out side of the box!

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What is Lean?What is Lean?

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A work philosophy of A work philosophy of eliminating eliminating wastewaste and and increasing increasing value value of of products and servicesproducts and services

Elements of Lean Elements of Lean ThinkingThinking

Learning to see Learning to see

Continuous Improvement Continuous Improvement

Standard workStandard work

One piece flowOne piece flow

Error proofingError proofing

Focus on process not on peopleFocus on process not on people

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LEAN Principles

Setup Reductions

Teams 5S

Error Proofing

TPM

Kanban

Work Cell

Standardized

Work

Kaizen

A3 Problem Solving

Value Stream Map

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What Is Waste?What Is Waste?

Anything other than the Anything other than the minimum resourcesminimum resources required to required to add value add value to to an end product / service.an end product / service.

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““Eliminating…waste is not Eliminating…waste is not the problem, identifying it the problem, identifying it is.”is.”

Taiichi Ohno

developer of the

Toyota Production System (TPS)

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The Real Problem:The Real Problem:

Learning to see waste..…

If we hadn’t challenged the status quo, we wouldn’t have: microwave ovens, cell phones, portable air conditioners, makes/model of cars, rollerblades, Ipods, laptops.

8 Types of Waste8 Types of Waste

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12

345

67

8

Value Added Work 5 %

8 General Types of Business Waste Rework (typing errors, missing

info.) Transportation (material handling) Associate Motion Associate Waiting Time Inventory (supplies, WIP, emails) Over Production (extra copies) Over Processing (cadillac report) Under Utilized Human Resources

Waste is everywhere….

Non-Value Add Non-Value Add ActivitiesActivities

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Improve Evaluate

Reduce Eliminate

Value Add•Transforms material and

information into products or services

• The customer wants it•It’s done right the first time

Non-Value Add•Consumes resources but does not contribute to the

product or service

Necessary• Customers require it• Regulatory or legal compliance• Can’t eliminate based on current technology or thinking

Not Necessary

Waste

Non-value added work, also called waste, refers to work that doesn't add value to or is unnecessary for the overall project.

Why do we need Teams? By working together, rather

than competing with each other, we’ll see:

Increased quality Higher productivity Reduced cost

Teams Add Value

What’s in it for Me? New job skills

Participate in decisions affecting your

job

Realize you add value to the company

Together we can do what one cannot do alone!

Teamwork Fundamentals

Open communication

Team members with diverse

backgrounds

Common goals

Driven to succeed

Basic Ground Rules

for the Team Maintain a positive attitude Make no assumptions Take nothing personally Everyone on the team is equal Each person’s opinion matters There are no bad ideas or stupid

questions Resolve all issues respectfully

A team is a group of people working together towards a common goal.

…but you must be on the same page to succeed.

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What is Kaizen?What is Kaizen?

Japanese for improvement or

change for the better.

It refers to a philosophy or practice that focuses upon continuous process improvement.

Continuous Steady ImprovementContinuous Steady Improvementvia Kaizen Eventsvia Kaizen Events

Standardize

IMPROVEMENT

TIME

Ka

ize

n

Ka

ize

n

Ka

ize

nFrom “Kaizen”, Masaaki Imai

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Standardize

Standardize

Ka

ize

n

Starting Process

What is VSM?What is VSM? One page visual representation One page visual representation Flow of all information and material Flow of all information and material

processesprocesses Current state analysis including all value Current state analysis including all value

added and non-value added processesadded and non-value added processes Future state goalsFuture state goals

• To improves value added processesTo improves value added processes

• To eliminates non-value added work To eliminates non-value added work

Action plan for target state implementationAction plan for target state implementation2525

Benefits of a VSMBenefits of a VSM

See entire process flow of information and See entire process flow of information and materialsmaterials

Identify waste and the source of wasteIdentify waste and the source of waste Establish priorities for improvementEstablish priorities for improvement Focus on low cost or no cost Focus on low cost or no cost

improvementsimprovements Based on objective informationBased on objective information

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More VSM Benefits More VSM Benefits

Forms basis of an implementation Forms basis of an implementation planplan

Creates a vision of the future Creates a vision of the future

Reveals opportunitiesReveals opportunities Enables broad participation Enables broad participation Improves customer satisfaction Improves customer satisfaction

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Blue PrintBlue Print Establish areas of focusEstablish areas of focus Book Ends Book Ends oror Start and Stop points Start and Stop points Identify steps using: Identify steps using:

• Yellow - tasks Yellow - tasks • Pink - problems or opportunities Pink - problems or opportunities • Orange - Non Value Added activitiesOrange - Non Value Added activities

Prioritize changesPrioritize changes Create Action PlanCreate Action Plan

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By the end of event By the end of event you will …you will …

Create Current State MapCreate Current State Map Understand Current State problems and Understand Current State problems and

opportunities.opportunities. Create a Future State MapCreate a Future State Map Have a plan for implementing future state Have a plan for implementing future state Have started developing standard work and Have started developing standard work and

visual controls to sustain changes. visual controls to sustain changes. Celebrate your success!Celebrate your success!

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Remember!Remember!

We cannot solve our problems with We cannot solve our problems with

the same thinking we used when the same thinking we used when

we created them. we created them. Albert Einstein

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Begin with FrameworkBegin with Framework

ScopeScope– Process Start: Customer request receivedProcess Start: Customer request received– Process End: Services paid forProcess End: Services paid for– Out-of-Scope: Out-of-Scope: Needs to be filled inNeeds to be filled in

ObjectivesObjectives– Eliminate 3-5 wastesEliminate 3-5 wastes– Increase Counselor availability by 50%Increase Counselor availability by 50%– Implement improvements by end of weekImplement improvements by end of week

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Current StateCurrent State

•Map out each process step within the Map out each process step within the boundaries of start / stopboundaries of start / stop•Map flow of materials from one step to the nextMap flow of materials from one step to the next•Map flow of information from start to finishMap flow of information from start to finish•Map takt time and cycle timeMap takt time and cycle time•Identify non value-added stepsIdentify non value-added steps•Identify opportunities for improvementIdentify opportunities for improvement

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Creating the Future StateCreating the Future State

Brainstorm opportunities for potential Brainstorm opportunities for potential improvementsimprovements

Focus on low cost or no cost improvementsFocus on low cost or no cost improvements Verify management support Verify management support

Verify Future State meets the established Verify Future State meets the established goals.goals.

Develop action plan for implementation Develop action plan for implementation within 30 -60 dayswithin 30 -60 days

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Focus on Reducing Non-Value Added Work!

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12

345

67

8

Value Added Work 5 %

Develop Action PlanDevelop Action Plan

Create teams to work on tasks Create teams to work on tasks Ensure the right members are on the Ensure the right members are on the

team team Ensure teams have support and Ensure teams have support and

resources they needresources they need Review progress regularlyReview progress regularly Celebrate successesCelebrate successes

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Communication is the Key!Communication is the Key!

Conduct an initial “kick off” event involving all stakeholdersInform everyone what was learned in the processInform everyone what we will be doingProvide a variety of ongoing communicationsCelebrate successes!

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Dr. Peter Bishop – University of Houston

Change is hard ……… but stagnation is fatal.

Current State Current State ProcessProcess

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Request to Proposal Invoice to Cash Receipt

Order Confirmed thru Shipping

Focus Area for

improvement due to high number of

wastes

Future State Future State ProcessProcess

Customer order through shipmentCustomer order through shipment

Significantly streamlined processSignificantly streamlined process Eliminated 16 wastes vs target of 5-10 wastesEliminated 16 wastes vs target of 5-10 wastes Implementing improvements next week!Implementing improvements next week!

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Ensure Successof Action Plan

IMPORTANT TASKS:Conduct regular scheduled meetings for participants.

Provide a structure to work on problem solving and to complete tasks

Verify progress on goals continuously

Give support for the process continuously.

Celebrate the success of the team.

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Chinese ProverbChinese Proverb

If we don’t change we will If we don’t change we will end up where we are end up where we are

headed…headed…

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