value stream mapping training
DESCRIPTION
Full description of value stream mapping and how to implement and get improvements from it, highly recommendableTRANSCRIPT
Welcome
Value Stream Mapping
Session Goals
• Provide an overview of Value Stream Mapping
• Demonstrate Value Stream Mapping as a tool to support Lean implementation.
• Provide an overview of Lean Principles.
Introduction
Name
Current Position
VSM Experience (if any)
What are the concepts of Lean?
• The elements for Operating a Lean Facility
• Principles and Elements are Interdependent
• Develops lean thinking leaders to deliver lean business results
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-Built-In-QualityQuality
ShortShortLead TimeLead Time
People People InvolvementInvolvement
Definition: Standardization is a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization.
Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve.
Standardization
WorldClassContinuous
Improvement
Change
Standardization Elements
Management by Takt Time Workplace Organization Standardized Work Visual Management
Standardization
Built-In Quality Elements
Product Quality Standards Manufacturing Process Validation In-Process Control & Verification Quality Feedback/Feedforward Quality System Management
Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence.
Purpose: To ensure that defects are not passed to the customer.
Do notDo notAcceptBuildShip
a Defect!a Defect!
Solve problems through teamwork!Solve problems through teamwork!
Satisfy your Satisfy your Customer. . . Customer. . .
The Built-In-Quality Motto
Built In Quality
Definition: The movement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer.
Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty.
Short Lead Time Elements
Small Lot Packaging Fixed Period Ordering System Controlled External Transportation Simple Process Flow Scheduled Shipping/Receiving
Temporary Material Storage Internal Pull/Delivery Level Vehicle Order Schedules Supply Chain Management
long lead-time
short lead-time
Short Lead Time
Definition: A process based on standardization, whereby results are achieved, through a series of small improvements.
Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste.
Continuous Improvement
Elements
Andon Concept Business Plan Deployment Total Maintenance System Lean Design of Facilities,
Equipment, Tooling and Layout Continuous Improvement Process Early Mfg. Design Integration
(DFM/DFA) Problem Solving
The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented.
Continuous Improvement
The Continuous Improvement Cycle
Standardization
ImprovementStandardization
Standardization
StandardizationImprovementImprovement
How Do We Expand VSMThroughout the Enterprise?
• All the Principles and Elements apply, however, there is one big difference
• In the factory, the process itself is very visible making it easy to see, study and improve
• The processes in HR, Engineering, Purchasing, etc... are not as visible
• What we need is a tool that will help make the process more visible
Value Stream Mapping
• A tool originally used by the Toyota Production System experts to study processes
• Developed and refined by John Shook and Mike Rother in Learning to See
• Used in manufacturing, engineering and administrative offices by lean experts to improve business processes
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
How Does Value Stream Mapping Fit With the Lean Journey
• VSM is a tool used to support the implementation of lean strategies.
What Makes Value Stream Mapping Unique?
• Visualizes the Process Flow from a systems perspective
• Focuses on the customer and the customer’s requirements
• Includes information flow and product movement
• Summarizes the timeline as it relates to delivery to the customer
• Documents performance characteristics of both the Value Stream and the individual process steps
Process 1 Process 2
Process Time
Wait Time
FTQ
Process Time
Wait Time
FTQ
Value Stream Map Elements
Customer
XYZ Org
Supplier OrdersCustomer Orders
Internal Scheduling
Delivery Freq.
Material Movement via PUSH
Delivery Freq.
I
II
Supplier
Inventory
Lead Time
Value Stream MapsEnable a System View
• Starts with a Focus on the Customer• Links process steps and information flow• Reveals problems with flow• Documents performance of the process
– Customer Expectations– Process metrics– Visibility of progress and quality
• Reveals waste • Establishes a common language • Provides a blueprint for improvement • Gets People involved in creating the future
VSM Analysis – Data Attributes
• Lead time =
– Processing time + Wait Time / Delays
• Typical batch size
• First-Time Quality
– Reliability (e.g. system or equipment uptime)
• Rework / revisions
– % Complete and Accurate Inputs (% C&A)
– Design Changes
– Errors
• Number of people involved
– % utilization of people
VSM Case Study
Using the Value Stream Mapping Tool
Understanding how things currently operate. This is the foundation for the future state.
Scoping the Scoping the Value StreamValue Stream
Designing a lean flow through the enterprise.
Future state drawing
Determine the Value Stream to be improved
The goal of mapping! Planning and Implementation
Current state drawing
Jack’s TaxesJack is a CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If Jack can improve the process for self-employed clients, he could take on more work during that time of year.
Generally, the sequence of events begins for each client sometime late January with Jack’s assistant, John, sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. Jack sorts the receipts and documents, finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions.
Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms. For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return. Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.
Data SetTax Season: 8 weeks40 self-employed clients
Send Reminder: JohnP/T = 10 minFTQ = 100%
Sort receipts & documents: JackP/T = 30 minW/T = 1 week in inbox before sortingFTQ = 10%
Prepare Worksheet: JackTechnology used: Tax Software (TS)P/T = 60 minW/T = 3 weeks in the inbox waiting to prepare worksheetW/T = 1 week due to interruptionsFTQ = 95%
Confirm deductions: JackP/T = 10 minW/T = 1 week due to phone tagFTQ = 50%
Print and Collate IRS tax forms: JohnTechnology used: Tax Software (TS)P/T = 15 minW/T = 1 – 5 days in inbox before form prep (3 day average)FTQ = 98%
Review and sign forms: JackP/T = 15 minW/T = 3 days in inbox before signing FTQ = 100%
Mail forms to client: JohnP/T = 10 minW/T = 1 day accumulation before collation and mailingFTQ = 100%
Metric
SPQRC
Current Estimate
From Current State Map
Target from Future State
Map
Actual
(post implementation)
Process Time
12 hours
(720 Min.)
Lead Time 6 – 8 weeks
First Time Quality
100%
Other(s)
Measurable Metrics & Performance
Typical Steps for Current State Mapping
• Document customer information & need
• Identify main processes (in order)
• Select data attributes (Q,R,C - minimum)
• Perform value stream walk and fill in data boxes (how the process really works)
• Establish how each process knows what to process 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
Icons
Movement by Push
Electronic Information Flow
WeeklySchedule
Worker
In Box (Queue)
INMRP
Wait-Time
Conversation Information Flow
Data Box
P/T
W/T
FTQ
Supermarket
XOXO Leveling, Mix and/or Volume
Withdrawal (Pull)
F I F O
First-In First-Out
Flow
ChangeoverKaizen
Lightning Burst
Iterations
Movement of “physical” property
Reminder post-card
Customer
Process Box
Technology Used
MRP
Draw the Current State
Jack’s Taxes - Current State
CustomerSuppliers
Start withCustomerThenSuppliers
40 clients
Client
Sort receipts & documents
Confirmdeductions
Mail forms
Print & Collate
formsTS
Review & sign forms
Send reminder
Prepareworksheet
TS
ProcessSteps?
Jack’s Taxes - Current State
40 clients
Client
John10 min
---100%
Jack60 min1 week
95%
Jack10 min
John15 min
---98%
Jack15 min
---100%
John10 min
---100%
Jack30 min
---10%
1 week
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
3 days
IN
3 days
IN
1 day
IN
3 weeks
Client40 clients
Sort receipts & documents
Confirmdeductions
Mail forms
Print & Collate
formsTS
Review & sign forms
Send reminder
Prepareworksheet
TS
Tax forms to client by 4/10
IN
Receipts
& Docu
ments
Reminder post-
card
IN
Mis
sing
doc
umen
ts
Cla
rify
de
duct
ion
s
Notify
of m
issing
doc
umen
ts
Jack’s Taxes - Current State
50%1 week
P/T
W/TFTQ
Process Data, Information Flow, and Process Flow
IN IN IN IN IN
Client40 clients
Sort receipts & documents
Confirmdeductions
Mail forms
Print & Collate
formsTS
Review & sign forms
Send reminder
Prepareworksheet
TS
Tax forms to client by 4/10Receipts
& Docu
ments
Reminder post-
card
Mis
sing
doc
umen
ts
Cla
rify
de
duct
ion
s
Notify
of m
issing
doc
umen
ts
John10 min
---100%
Jack60 min1 week
95%
Jack10 min1 week
50%
John15 min
---98%
Jack15 min
---100%
John10 min
---100%
Jack30 min
---10%
1 week 3 weeks
3 days 3 days 1 day
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
10 min 1 week
30 min 3 weeks
60 min
10 min 3 days
15 min
15 min
10 min3
days1 day1 week
100 %
98 % 100 %
50 % 100 %
95 %10 %
1 week
140 min
7 wks, 2 days
4.7 %
Total Lead Time:
W/T
P/T
FTQ
7 wks, 2 days, 140 min
Total Leadtime and FTQ
-----
Total of P/T= 140 minutesTotal of W/T= 7wks, 2days
Jack’s Taxes - Current State
X X X X X
---- ---- ---- ----
Total Lead Time = 7 wks, 2 days, and
140 min.
Product of FTQ= 4.7%
Metric
SPQRC
Current Estimate
From Current State Map
Target from Future State
Map
Actual
(post implementation)
Process Time 720 Min. 140 Min.
Lead Time 6 – 8 weeks
7 Weeks, 2 Days, 140 Min
First Time Quality
100% 4.7%
Other(s)
Measurable Metrics & Performance
Jack’s Taxes - Current State
IN
40 clients
Sort receipts & documents
Confirmdeductions
Mail forms
IN
Tax forms to client by 4/10Rece
ipts & D
ocuments
IN
Notify of m
issing docu
ments
Reminder post-card
Print & Collate
formsTS
Review & sign forms
IN
Send reminder
Prepareworksheet
TS
Client
John10 min
---100%
Jack60 min1 week
95%
Jack10 min1 week
50%
John15 min
---98%
Jack15 min
---100%
John10 min
---100%
Jack30 min
---10%
Miss
ing d
ocum
ents
1 week 3 weeks
3 days 3 days 1 day
W/T
P/T 10 min 1 week
30 min 3 weeks
60 min
10 min 3 days
15 min
15 min
10 min3
days1 day1 week
FTQ 100 %
98 % 100 %
50 % 100 %
95 %10 %
1 week
140 min
7 wks, 2 days
4.7 %
Total Lead Time:7 wks, 2 days, 140 min
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
IN
Cla
rify
dedu
ctio
ns
WasteThe elements of production that add
no value to the 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 of problems in the system. It shows where the problems are
• We need to find and address the causes of waste to improve the performance of the system
Waste in a Value Stream
• Muri – Waste of unreasonableness or overburden to a person or a machine
• Mura – Waste of inconsistency; Waste of unevenness
• Muda – The seven forms of waste (COMMWIP)
FORMS FORMS OFOF
WASTEWASTE
II
CC
OO
MMWW
PP
MM
CURRENTTHINKING
WASTE NOT DEFINEDREACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENT
REQUIRED THINKING
CONTINUOUS IMPROVEMENT
CorrectionCorrection
OverProduction
OverProduction
MotionMotion
MaterialMovementMaterial
Movement
WaitingWaiting
InventoryInventory
ProcessingProcessing
WASTE IS "TANGIBLE"IDENTIFY MANY SMALL OPPORTUNITIES
LEADS TO LARGE OVERALL CHANGE
Shift Mindset
WASTEWASTE
Sending back forms for incomplete or inaccurate data
Producing reports that are not used, producing reports
before they are needed
Searching for misplaced items
Filing documents that will never be used again
Keeping multiple copies of reports
Processing excessive written communication to determine
issues requiring attention (mental processing)
Unreasonable-ness
Unreasonable-ness
UnevennessUnevenness
Employee assigned two jobs due to understaffing
End of month deadline causing overtime; all
projects scheduled in 1Q with none in 2nd
Delays in getting needed
information, approvals, or
decisions
Waste Exercise
Participants identify waste on current state maps.
IN IN IN IN IN
Client40 clients
Sort receipts & documents
Confirmdeductions
Mail forms
Print & Collate
formsTS
Review & sign forms
Send reminder
Prepareworksheet
TS
Tax forms to client by 4/10Receipts
& Docu
ments
Reminder post-
card
Mis
sing
doc
umen
ts
Cla
rify
de
duct
ion
s
Notify
of m
issing
doc
umen
ts
John10 min
---100%
Jack60 min1 week
95%
Jack10 min1 week
50%
John15 min
---98%
Jack15 min
---100%
John10 min
---100%
Jack30 min
---10%
1 week 3 weeks
3 days 3 days 1 day
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
10 min 1 week
30 min 3 weeks
60 min
10 min 3 days
15 min
15 min
10 min3
days1 day1 week
100 %
98 % 100 %
50 % 100 %
95 %10 %
1 week
140 min
7 wks, 2 days
4.7 %
Total Lead Time:
W/T
P/T
FTQ
7 wks, 2 days, 140 min
-----
Jack’s Taxes - Current State
MMW W
I I I I IPP P
CC
C
C
O
Lean Principle: Built-In-QualityLean Principle: Built-In-Quality
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-QualityBuilt-In-QualityShortShort
Lead TimeLead Time
People People InvolvementInvolvement
Right Product
Right Time!
Understanding Customer Requirements
Right Price!!
Built-In-Quality
• Product Quality Standards
• In-Process Control & Verification
• Quality Feedback/Feed Forward
Product Quality Standards
• Focus On The Customer– J.D. Power
• Quality Standards must be easily understood by the Team members
• Quality Standards must be Clear and Unambiguous
In Process Control & VerificationQuality Feedback / Feed Forward
Ability to signal for help when Sensing Abnormalities
– Quality Must Be Assured In The Process
– Error Proofing
– In-Process Verification
– Feedback / Feed Forward
Lean Principle: Lean Principle: Continuous ImprovementContinuous Improvement
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-QualityBuilt-In-QualityShortShort
Lead TimeLead Time
People People InvolvementInvolvement
Andon
ENABLERS
BENEFITS
1 2 3 4 5 6
PROCESS NO.
33
O.D. Reference 4
MotionCorrectionWaiting
Andon
• Implement corrective action
• Quality in station• Inspection and Feedback• Open Communication• Teamwork• Improved Productivity
ENABLERS
BENEFITS
5MotionCorrectionWaiting
1 2 3 4 5 6
PROCESS NO.
33
O.D. Reference 4
Andon
•Team System•Team Leader Ratio•Clear Standards•Problem Solving Process•Employee Training•Standardized Work•Mutual Trust/Respect•Process Capability
• Implement corrective action
• Quality in station• Inspection and Feedback• Open Communication• Teamwork• Improved Productivity
ENABLERS
BENEFITS
MotionCorrectionWaiting
1 2 34
5 6
PROCESS NO.
33
O.D. Reference 4
4
Lean Principle: Short Lead TimeLean Principle: Short Lead Time
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-QualityBuilt-In-QualityShortShort
Lead TimeLead Time
People People InvolvementInvolvement
Lean Principle: Short Lead Time (Just-in-Time Elements)
• Simple Process Flow
(Single Part Flow, Quick Set Up)
• Small Lot Packaging
• Level Order Schedules
• Pull Systems
Flow
All process steps occur in tight sequence (continuous flow), with little or no waiting?
Pull
Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.
TRY TO SCHEDULE ONLY 1 POINTFLOW WHERE YOU CAN, PULL WHERE YOU CAN’T
Schedule
Supermarket
Schedule
CONTINUOUS FLOW PROCESSING
Batch & Push Processing
Continuous Flow “make one, move one”
3 Minutes for first piece
12 Minutes for total order
21 minutes for first piece
One Piece Flow - Order entry - Before
File Batch
Enter Batch
Stack and Hold
Acknowledge
Orders
Calculate Batch Total
Batch OrdersOpen
One Piece Flow - Order Entry – After
File Order
Enter One
Order
Acknowledge
One Order
Open One Envelope
Leveling - Heijunka
• Uneven customer demand creates a challenge
• Variation & fluctuation in volume (spiky customer demand) can lead to waste
• In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation
Production Schedule
Monday…….400 A
Tuesday……100 A, 300 B
Wednesday..200 B, 200 C
Thursday…. .400 C
Friday……….200 C, 200 A
No Good
Daily:
140 A, 100 B, 160 C
Better: Every Part Every Day
50 B, 70 A, 80 C
50 B, 70 A, 80 C
MondayEven Better: Every Part Every Ship Window
Leveling
Why have small lots and leveling?
• Small Lot Strategy– Shortens Cycle Time (The amount of time it
takes to complete the task)– Reduces Excess Inventory – Improves Responsiveness
• Production Leveling– Minimizes Stocks of Finished Products– Reduces Fluctuations in Flow– Balances Workload
Lean Principle:Lean Principle: People Involvement People Involvement
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-QualityBuilt-In-QualityShortShort
Lead TimeLead Time
People People InvolvementInvolvement
Multifunctional Workers
• Minimal (or no) Job Description Silos
• Rotate Jobs
• Perform Several Tasks
• Balance the Workload
• Standard Work
Lean Principle: StandardizationLean Principle: Standardization
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-QualityBuilt-In-QualityShortShort
Lead TimeLead Time
People People InvolvementInvolvement
If there is no standard, there is no improvement
If there is no standard, there is no improvement
Standardized Work
• The best combination of people, equipment and material to meet customer demand.
• An agreed upon set of work procedures to establish the best sequence for each process.
• Start at a baseline and continuously improve
MaterialsProduction
Standardized Work
Standardized work is used when there is a definable, repeatable process.
Office
Everyone can perform standardized work
Standardized work yields:
• Shorter lead time• Reduced work-in-process• Reduced wait time• More flexibility, less waste• Ability to identify and fix
problems• Reduced handling• Better response to customer
demand• Balanced workload
TAKT TIME – Component of Standardized Work
Synchronizes Pace of Production to Match Pace of Demand
Rate for producing a product, and its components, based on rate of delivery.
Available TimeTakt Time =
Customer Requirement / Demand
Lean Principle: Lean Principle: Continuous ImprovementContinuous Improvement
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-QualityBuilt-In-QualityShortShort
Lead TimeLead Time
People People InvolvementInvolvement
Continuous Improvement
• Everything Can Be Improved. Problems Are Opportunities. “No Problem” is a Problem.
• Worker’s Ideas Are a Source of Improvement– Continuous Improvement
(Kaizen) Teams– Problem Solving– Job Rotation– Total Productive Maint.– Suggestion Program
• Steps to Improvement– Improve, Standardize,
Stabilize and Repeat.
The Continuous Improvement Cycle
Standardization
ImprovementStandardization
Standardization
StandardizationImprovementImprovement
Continuous Improvement
• Standardized Work contributes to continuous improvement by:
– Documenting the current best practice that provides a base from which to improve
– Creating the stability necessary to make changes
– Providing the tools to make waste highly visible
Lean Principle: StandardizationLean Principle: Standardization
Continuous Continuous ImprovementImprovement StandardizationStandardization
Built-In-QualityBuilt-In-QualityShortShort
Lead TimeLead Time
People People InvolvementInvolvement
• Workplace Organization
- 5S Process• Standardized Work• Visual Management
Grasp the Situation
Workplace Management
GraspCurrent
SituationContinuous Improvement
to EliminateWaste
Repeat Add Value-
added Work; Standardize
Workplace Management
Where you have problem points in the flow…
Process Step 1
Process Step 2
Process Step 3
Process Step 4
Set up checks for Quality, Timing, Output
Make Progress and Problems Visible
Visual Management
E-Toyota Application of Heijunka Box
Takt Time Bar Chart
0
5
10
15
20
25
30
Stamping Body Paint Trim Shipping
Departments
(Sec)
Future State Questions Relating to Improving Delivery and Flow
• What are the customer requirements?
• Where and how will you trigger and sequence work?
• How will you make work flow smoothly?
• How will you establish rhythm to pace the work and surface problems?
• How will you make the progress and delays of the work visible?
• What process improvements are necessary to achieve your Value Stream vision?
Future State Mapping
Using the Value Stream Mapping Tool
Understanding how things currently operate. This is the foundation for the future state.
Designing a lean flow through the application of Lean principles
Current State drawing
Future State drawing
Determine the Value Stream to be improved
The goal of mapping! Planning and Implementation
Scoping the Scoping the Value StreamValue Stream
Future State Questions Relating to Improving Delivery and Flow
• What are the customer requirements?
• Where and how will you trigger and sequence work?
• How will you make work flow smoothly?
• How will you establish rhythm to pace the work and surface problems?
• How will you make the progress and delays of the work visible?
• What process improvements are necessary to achieve your Value Stream vision?
• Customer requirements? • Work flow smoothly?• Trigger & sequence work?
• Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State
IN
40 clients
Sort receipts & documents
Confirmdeductions
Mail forms
IN
Tax forms to client by 4/10Rece
ipts & D
ocuments
IN
Notify of m
issing docu
ments
Cla
rify
dedu
ctio
ns
Reminder post-card
Print &Collate
formsTS
Review & sign forms
IN
Send reminder
Prepareworksheet
TS
Client
John10 min
---100%
Jack60 min1 week
95%
Jack10 min1 week
50%
John15 min
---98%
Jack15 min
---100%
John10 min
---100%
Jack30 min
---10%
Miss
ing d
ocum
ents
1 week 3 weeks
3 days 3 days 1 day
W/T
P/T 10 min 1 week
30 min 3 weeks
60 min
10 min 3 days
15 min
15 min
10 min3
days1 day1 week
FTQ 100 %
98 % 100 %
50 % 100 %
95 %10 %
1 week
140 min
7 wks, 2 days
4.7 %
Total Lead Time: 7 wks, 2 days, 140 min
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
Takt Time = Available time / Customer Requirements
= 40 days / 40 Clients = 1 per day
INCOMBINE PROCESSES
Stand. Work
John
Acc
ordi
on
File
XOXO FIFO
Customer
Incentive
• Customer requirements? • Work flow smoothly?• Trigger & sequence work?• Rhythm (leveling)?
• Progress & delays visible? • Process improvements? Jack’s Taxes - Current State
IN
40 clients
Sort receipts & documents
Confirmdeductions
Mail forms
IN
Tax forms to client by 4/10Rece
ipts & D
ocuments
IN
Notify of m
issing docu
ments
Cla
rify
dedu
ctio
ns
Reminder post-card
Print &Collate
formsTS
Review & sign forms
IN
Send reminder
Prepareworksheet
TS
Client
John10 min
---100%
Jack60 min1 week
95%
Jack10 min1 week
50%
John15 min
---98%
Jack15 min
---100%
John10 min
---100%
Jack30 min
---10%
Miss
ing d
ocum
ents
1 week 3 weeks
3 days 3 days 1 day
W/T
P/T 10 min 1 week
30 min 3 weeks
60 min
10 min 3 days
15 min
15 min
10 min3
days1 day1 week
FTQ 100 %
98 % 100 %
50 % 100 %
95 %10 %
1 week
140 min
7 wks, 2 days
4.7 %
Total Lead Time: 7 wks, 2 days, 140 min
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
Takt Time = Available time / Customer Requirements
= 40 days / 40 Clients = 1 per day
INCOMBINE PROCESSES
Stand. Work
John
Acc
ordi
on
File
XOXO FIFO
Customer
Incentive
• Customer requirements? • Work flow smoothly?• Trigger & sequence work?• Rhythm (leveling)? • Progress & delays visible?
• Process improvements? Jack’s Taxes - Current State
IN
40 clients
Sort receipts & documents
Confirmdeductions
Mail forms
IN
Tax forms to client by 4/10Rece
ipts & D
ocuments
IN
Notify of m
issing docu
ments
Cla
rify
dedu
ctio
ns
Reminder post-card
Print &Collate
formsTS
Review & sign forms
IN
Send reminder
Prepareworksheet
TS
Client
John10 min
---100%
Jack60 min1 week
95%
Jack10 min1 week
50%
John15 min
---98%
Jack15 min
---100%
John10 min
---100%
Jack30 min
---10%
Miss
ing d
ocum
ents
1 week 3 weeks
3 days 3 days 1 day
W/T
P/T 10 min 1 week
30 min 3 weeks
60 min
10 min 3 days
15 min
15 min
10 min3
days1 day1 week
FTQ 100 %
98 % 100 %
50 % 100 %
95 %10 %
1 week
140 min
7 wks, 2 days
4.7 %
Total Lead Time: 7 wks, 2 days, 140 min
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
Takt Time = Available time / Customer Requirements
= 40 days / 40 Clients = 1 per day
INCOMBINE PROCESSES
Stand. Work
John
Acc
ordi
on
File
XOXO FIFO
Data entryWorksheet
training
Individual1040, 1040EZ
training
Reduce process time to 75 min
Standardize Work
Customer
Incentive
IN
40 clients
Mail forms
forms to client
Complete Acc
ordion File
Checklist &
Accordion File
Jack’s TaxesFuture State
Check & sign forms
IN
Send Reminder
Data entry+
print formsFS
Client
FIFO
max 1 day max 1 day
XOXO
1 per day Over 8 weeks
Takt Time = Available time / Customer Requirements
= 40 days / 40 Clients = 1 per day
Customer Requirements:•Tax Forms completed accurately•Finished before filling time•Lowest possible cost
W/T
P/T
FTQ
100 min
2 days
98 %
2 days, 100 min
10 min
75 min
15 min
10 min
1 day1 day
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
P/T
W/TFTQ
John10 min
100%
John75 min
98%
Jack15 min1 day100%
John10 min1 day100%
98 % 100 %
100 %
100 %
Metric
SPQRC
Current Estimate
From Current State Map
Target from Future State
Map
Actual
(post implementation)
Process Time 720 Min. 140 Min. 100 Min.
Lead Time 6 – 8 weeks
7 Weeks, 2 Days, 140 Min
2 Days, 100 Min.
First Time Quality
100% 4.7% 98%
Other(s)
Measurable Metrics & Performance
Summary of Results – Potential Impact
• Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time.
• FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity.
• Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster.
• Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients.
• Reduced personal overtime – Jack does not stay late signing returns anymore.
• This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically, …
Implementation Planning
Understanding how things currently operate. This is the foundation for the future state.
Designing a lean flow through the application of Lean principles
Current State drawing
Future State drawing
Determine the Value Stream to be improved
The goal of mapping! Planning and Implementation
Scoping the Scoping the Value StreamValue Stream
Using the Value Stream Mapping Tool
Current Current StateState
Current Current StateState
The Methods / Action Steps The Methods / Action Steps are how you will get thereare how you will get there
FutureState
FutureState
Changes
The specific changes The specific changes (Kaizen Bursts) needed to (Kaizen Bursts) needed to move from CS to FS are move from CS to FS are
your Objectivesyour Objectives
Business Plan Deployment (BPD) is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change
Regul
ar a
nd C
onsi
sten
t Rev
iew
s Concrete
GOALS
Specific OBJECTIVES
Clear & Measurable TARGETS
A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies
Coordination
Common Measurements
BPD Elements
Business Plan Deployment Is a PDCA Cycle
2
Tasks
Plant Master Plan
Action
Annual Business
Plan
1
2
3
4 Plan
Do (Communicate & Implement)Check
Act (Standardized & Countermeasures)
Scorecard
Plan
DoCheck
Act
Problem Description
Direct CauseCauseCauseCause
Why?Why?Why?Why?
Why?Root
Cause
Plan
Do
Check
Act TEACH!
Leadership’s Role
Wrap-Up
Wrap-up
• What did you learn today?
• Did the program meet your expectations?
• How can we improve this learning event?