VSM Gaining Traction

7/31/2019 VSM Gaining Traction

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Value Stream Mapping Value Stream Mapping Gaining Traction,Gaining Traction,Getting ResultsGetting Results

NITHYA.CNITHYA.C


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AgendaAgenda

1 Obstacle to Traction - WASTE1 Obstacle to Traction - WASTE

22 Benefits of Value StreamBenefits of Value Stream

MappingMapping33 What is Value Stream Mapping?What is Value Stream Mapping?

44 A Road Map for ImprovementA Road Map for Improvement


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What is WASTE?

Any Activity that DOES NOT increase theMarket Form or Function of the Product orService based on the Critical Customer

Requirements.

These are things the customer is NOT

willing to pay for.


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Definition of ValueDefinition of ValueAddedAdded

Value Added

Any activity that increases the market form or function of the

product or service. (These are things the customer is willing to

pay for.)

Non-Value Added

Any activity that does not add market form or function or is not

necessary. (These activities should be eliminated, simplified,reduced, or integrated.)


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Lean = Eliminating the WastesLean = Eliminating the Wastes

Value Added

Typically 95% of all lead time is non-value added

Non-Value Added

DDefectsefects

OOverproductionverproduction

WWaitingaiting

NNot Utilizing Employeesot Utilizing EmployeesTTransportationransportation

IInventorynventory

MMotionotion

EExcess Processingxcess Processing


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Where is the Waste?Where is the Waste?DDefects incomplete or incorrect informationefects incomplete or incorrect information

OOverproduction releasing work before nextverproduction releasing work before nextprocess can work on them,process can work on them,

unbalanced work loadsunbalanced work loads

WWaiting unbalanced work loads, slow systemaiting unbalanced work loads, slow systemresponse, incomplete information, approvalsresponse, incomplete information, approvals

NNot Utilizing Employees old guard thinking,ot Utilizing Employees old guard thinking,politics, high turnover, low investment inpolitics, high turnover, low investment in

trainingtraining

TTransportation poor layout, poor flowransportation poor layout, poor flow

IInventory large batches, complexity tonventory large batches, complexity to

complete taskcomplete task

MMotion poor organization, no standard workotion poor organization, no standard work

EExcess Processing excess communication,xcess Processing excess communication,lack of communication, unnecessarylack of communication, unnecessary

approvals, customer requirements are notapprovals, customer requirements are notclearly understoodclearly understood

All processes have waste.


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Without Change

There Can Be No Improvement

The definition of insanity is

doing the same thing overand over and expecting

different results.

Albert Einstein


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Identify

waste

Measure

&

Adjust

Current

state

Future

state

Implement

Continuous

Incremental

Improvement

The Lean Process


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Understanding the Process

Information and Material Flow

Data Driven Decision Process

Benefit of Value Stream Mapping

94% if Failures are due to Poor Systems

6% are caused by Worker Mistakes

Deming


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Whenever there is a product orservice for a customer, there is avalue stream.

The challenge lies in seeing it.

Examples:Raw Materials to Customer - ManufacturingConcept to Launch - EngineeringOrder to Cash Services including Support

Processes

Look for Value Streams


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Value Stream Mapping is a Key ProcessValue Stream Mapping is a Key ProcessDiagnostic ToolDiagnostic Tool

Standardized Work Batch Reduction Teams

5S System Visual Layout

Cellular/FlowPull/Kanban TPM

Value

Stream

Mapping

Continuous Improvement

Ka

ize

n


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Value Stream Mapping StepsValue Stream Mapping Steps

Select product / serviceSelect product / servicefamilyfamily

Draw Current State map.Draw Current State map.Understanding how theUnderstanding how theprocess currentlyprocess currentlyoperates.operates.

Identify opportunities forIdentify opportunities forelimination of waste andelimination of waste andareas of improvement toareas of improvement tomeet customers needs.meet customers needs.

Draw the Future StateDraw the Future Statemap. Design a lean flowmap. Design a lean flowusing lean techniques.using lean techniques.

Develop action plan andDevelop action plan andimplement it.implement it.

Product / Service

family

Future state

drawing

drawing

Current state

Plan and

Implementation


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Future State QuestionsFuture State Questions

1.1. What does the customer really need?What does the customer really need?

2.2. How often will we check our performance toHow often will we check our performance tocustomer needs?customer needs?

3.3. Which steps create value and which areWhich steps create value and which arewaste?waste?

4.4. How can we flow work with fewerHow can we flow work with fewerinterruptions?interruptions?

5.5. How do we control work betweenHow do we control work betweeninterruptions? How will work be prioritized?interruptions? How will work be prioritized?

6.6. Is there an opportunity to balance the workIs there an opportunity to balance the workload and/or different activities?load and/or different activities?

7.7. What process improvements will beWhat process improvements will be


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Implementation RoadImplementation RoadMapMap

Clarify Business Drivers and Key Customer MetricsClarify Business Drivers and Key Customer Metrics

Assess and Map Current Capabilities (Baseline)Assess and Map Current Capabilities (Baseline)Identify Opportunities for Improvement including theIdentify Opportunities for Improvement including the

elimination of WASTEelimination of WASTECreate a Vision for the Future Based on Voice of theCreate a Vision for the Future Based on Voice of the

Customer and Voice of the BusinessCustomer and Voice of the Business

Analyze Gaps and Create Action Plan to SucceedAnalyze Gaps and Create Action Plan to Succeed- Use Robust Set of Tools (i.e. Lean Six Sigma)Use Robust Set of Tools (i.e. Lean Six Sigma)

Determine Priorities and Resources NecessaryDetermine Priorities and Resources Necessary- Structured Process ImprovementStructured Process Improvement

Track Impact through MetricsTrack Impact through Metrics

Celebrate WinsCelebrate Wins- With CustomersWith Customers- With EmployeesWith Employees- With SuppliersWith Suppliers


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Summary:Summary:ALL processes have WASTE that cost you

MONEY.

Improvement requires change. To change aprocess you have to understand the process.

Process Excellence will not be achievedProcess Excellence will not be achievedwithout involving people at all levels of thewithout involving people at all levels of theorganization.organization.

It is Not about Starting.It is Not about Starting.

It is about Getting Things DoneIt is about Getting Things Done!


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Questions?Questions?

Documents

VSM Gaining Traction