Value Stream Mapping Gaining Traction, Getting Results

NITHYA.C

Agenda

1 Obstacle to Traction - WASTE 2 Benefits of Value Stream Mapping 3 What is Value Stream Mapping? 4 A Road Map for Improvement

What is WASTE?
Any Activity that DOES NOT increase the Market Form or Function of the Product or Service based on the Critical Customer Requirements.

These are things the customer is NOT willing to pay for.

Definition of Value Added

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.)

Lean = Eliminating the Wastes

Value Added Non-Value Added

Defects Overproduction Waiting Not Utilizing Employees Transportation Inventory Motion Excess Processing
Typically 95% of all lead time is non-value added
6

Where is the Waste?

Defects incomplete or incorrect information Overproduction releasing work before next
process can work on them, unbalanced work loads

Waiting unbalanced work loads, slow system

response, incomplete information, approvals politics, high turnover, low investment in training

Not Utilizing Employees old guard thinking, Transportation poor layout, poor flow Inventory large batches, complexity to
complete task

Motion poor organization, no standard work Excess Processing excess communication, All processes have waste. lack of communication, unnecessary
approvals, customer requirements are not clearly understood

Without Change There Can Be No Improvement

The definition of insanity is doing the same thing over and over and expecting different results. Albert Einstein

The Lean Process

Current state Identify waste

Measure & Adjust

Continuous Incremental Improvement

Future state

Implement

Benefit of Value Stream Mapping Understanding the Process Information and Material Flow Data Driven Decision Process
94% if Failures are due to Poor Systems 6% are caused by Worker Mistakes
Deming

Look for Value Streams

Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.
Examples: Raw Materials to Customer - Manufacturing Concept to Launch - Engineering Order to Cash Services including Support Processes

Value Stream Mapping is a Key Process Diagnostic Tool

Ka ize n

Continuous Improvement
Pull/Kanban Cellular/Flow TPM

Standardized Work

Batch Reduction

Teams

5S System

Visual

Layout

Value Stream Mapping

12

Value Stream Mapping Steps

Product / Service family Select product / service family Draw Current State map. Understanding how the process currently operates. Identify opportunities for elimination of waste and areas of improvement to meet customers needs. Draw the Future State map. Design a lean flow using lean techniques. Develop action plan and implement it.

Current state drawing

Future state drawing

Plan and Implementation

Future State Questions

1. What does the customer really need? 2. How often will we check our performance to customer needs? 3. Which steps create value and which are waste? 4. How can we flow work with fewer interruptions? 5. How do we control work between interruptions? How will work be prioritized? 6. Is there an opportunity to balance the work load and/or different activities? 7. What process improvements will be

Implementation Road Map Clarify Business Drivers and Key Customer Metrics

Assess and Map Current Capabilities (Baseline) Identify Opportunities for Improvement including the elimination of WASTE Create a Vision for the Future Based on Voice of the Customer and Voice of the Business Analyze Gaps and Create Action Plan to Succeed Determine Priorities and Resources Necessary Track Impact through Metrics Celebrate Wins
- With Customers - With Employees - With Suppliers - Structured Process Improvement - Use Robust Set of Tools (i.e. Lean Six Sigma)

Summary:
ALL processes have WASTE that cost you MONEY. Improvement requires change. To change a process you have to understand the process. Process Excellence will not be achieved without involving people at all levels of the organization.

It is Not about Starting.

It is about Getting Things Done!

Questions?