Value Stream Mapping Basics
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1 Value Stream Mapping Basics
2 Learning Objectives At the end of this module, you will be able to: Sketch a basic value stream map Demonstrate basic value stream analysis Recognize steps for process improvement using value stream mapping and analysis VSM Basics V7.6 - Slide 2
3 Hot Dog Stand Process Map $ $ Image by MIT OpenCourseWare Clean up 1- Take order 9 - Deliver to customer 8 - Add beverage Yes No 7 Order OK? 6 Out order Yes 10 - Set up 2 In order 3 - Get order Cook dogs 4 - Put in bun, wrap, add fruit 5 Another dog? No How can Sasha and Andy improve their productivity to meet growing customer demand? VSM Basics V7.6 - Slide 3
4 Five Lean Thinking Fundamentals Specify value: Value is defined by customer in terms of specific products and services Identify the value stream: Map out all end-to-end linked actions, processes and functions necessary for transforming inputs to outputs to identify and eliminate waste Make value flow continuously: Having eliminated waste, make remaining value-creating steps flow Let customers pull value: Customer s pull cascades all the way back to the lowest level supplier, enabling just-intime production Pursue perfection: Pursue continuous process of improvement striving for perfection Ref: James Womack and Daniel T. Jones, Lean Thinking (New York: Simon & Schuster, 1996). VSM Basics V7.6 - Slide 4
5 Value Stream Map (VSM) A tool used to improve a process by identifying added value and eliminating waste A process map that follows the value creation process strap yourself to the product (or service) and see where you go A process map with data added Times: processing, wait, cycle Quality: number of rejects Inventory Resources Number of people Space Distance traveled Whatever else is useful for analyzing the process VSM Basics V7.6 - Slide 5
6 Steps for Creating a VSM 1. Define customer value and the process Walk the process to identify tasks and flows Identify value-added and waste process steps 2. Create the current state VSM Gather data on resources, time, quality for each step 3. Analyze map to determine opportunities for improvement Identify bottlenecks and other flow impediments Brainstorm actions to eliminate waste and add value 4. Create a future-state map to visualize the desired and realistic next state 5. Create action plans to move toward future state VSM Basics V7.6 - Slide 6
7 Step 1: S&A Customer Value and Process Map Current Demand 50 customers 100 hot dogs Customer Value $ Image by MIT OpenCourseWare. $ Good food Faster service 11 - Clean up 1- Take order 9 - Deliver to customer 8 - Add beverage Yes No 7 Order OK? 6 Out order Yes 10 - Set up 2 In order 3 - Get order Cook dogs 4 - Put in bun, wrap, add fruit 5 Another dog? No This process map follows the value creation process Value/waste assessed at each process step VSM Basics V7.6 - Slide 7
8 $ Step 2: Add Data $ T = 60 sec Qual = 100% 1- Take order T = 30 sec Qual = 100% 9 - Deliver to customer Image by MIT OpenCourseWare. T = 10 sec Qual = 100% 8 - Add beverage Yes No 10% T = 11 sec Qual = 90% 7 Order OK? T = 48 sec Qual = 100% 11 - Clean up 6 Out order Yes T = 33 sec 10 - Set up T = 48 sec Qual = 100% 2 In order T = 30 sec 3 - Get order Cook dogs T = 110 sec 4 - Put in bun, wrap, add fruit T = 44 sec 5 Another dog? No T = 22 sec Qual = 100% Qual = 100% Display of relevant data completes basic VSM Images by MIT OpenCourseWare. VSM Basics V7.6 - Slide 8
9 S&A Takt And Cycle Times Current demand 50 customers Open from 10AM - 2PM Available time Takt time = Customer demand = 4hrs 60min/hr = 4.8min = 288 sec 50 customers Cycle time (summed from previous data) = 7.4 min = 446 sec Valid alternate calculation assume setup/cleanup is done when things are slow 10 - Set up 11 - Clean up Available time Takt time = Customer demand = 4hrs 50min/hr = 4.0min = 240 sec 50 customers Cycle time (excluding set up & clean up) = 5.8 min = 350 sec Cycle time > takt time, but two workers can demand be met? VSM Basics V7.6 - Slide 9
10 Step 3: Value Stream Analysis Sasha Andy Image by MIT OpenCourseWare. Image by MIT OpenCourseWare. With your team, take 15 minutes to Calculate the total Value added time Non value added time Wait time Calculate the total touch time that Sasha and Andy spend on a single order Be ready to report your answers to the class VSM Basics V7.6 - Slide 10
11 Utilization and Capacity VAT is only slightly over 50% Opportunities for improvement Available time = 4 hours = 240 min Worktime: Touch time per order X number of orders Sasha s tasks: /60 min X 50 cust. = min Andy s tasks: /60 min X 50 cust = min Utilization: Worktime / time available Sasha s: ( min / 240 min) X 100% = % Andy s: ( min / 240 min) X 100% = % Capacity: Time available / touch time per order Andy working at 100% = (240min X 60) / sec = VSM Basics V7.6 - Slide 11
12 Utilization and Capacity VAT is only slightly over 50% Opportunities for improvement Available time = 4 hours = 240 min Worktime: Touch time per order X number of orders Sasha s tasks: 159 /60 min X 50 cust. = 133 min Andy s tasks: 224 /60 min X 50 cust = 187 min Utilization: Worktime / time available Sasha s: ( min 133 / 240 min) X 100% = % 55 Andy s: ( min 187 / 240 min) X 100% = % 78 Capacity: Time available / touch time per order Andy working at 100% = (240min X 60) / sec 224 = 64 We will consider complications like varying orders or irregularly spaced customers in the Variation Module VSM Basics V7.6 - Slide 12
13 Summary - S&A Value Stream Analysis (VSA) Current production (50 customers) is a little below current capacity (64 customers) of Andy and Sasha Process improvement needed to meet growing demand Andy and Sasha are both underutilized But utilization is not balanced between them Cycle time of 7.43 min per customer (or even 5.8 min) too long Should be able to shorten cycle time to meet demands of customers for faster service Bottom Line Sasha and Andy should implement process improvement for week 3 to meet growing demand! VSM Basics V7.6 - Slide 13
14 Improvement Brainstorm Sasha Andy Image by MIT OpenCourseWare. Image by MIT OpenCourseWare. Help Sasha and Andy figure what to improve How can utilization be improved? How can cycle time be reduced? What has to be done to serve 75 customers? What has to be done to serve 100 customers? VSM Basics V7.6 - Slide 14
15 Brainstorm Bursts $ $ Image by MIT OpenCourseWare Clean up 1- Take order 10 - Set up 2 In Order 9 - Deliver to customer 3 - Get order Cook dogs 8 - Add beverage Yes Balance Work NVA Inspection No 7 Order OK? 4 - Put in bun, wrap, add fruit 6 Out Order Yes 5 NVA Another dog? No Inspection VSM Basics V7.6 - Slide 15
16 Steps for Creating a VSM 1. Define customer value 2. Create a current state map Walk the process to identify tasks and flows Gather data on resources, time, quality for each 3. Analyze map to determine opportunities for improvement Identify value-added and waste Brainstorm actions to eliminate waste and add value 4. Create future-state map to visualize the desired state 5. Create action plans to move towards future-state VSM Basics V7.6 - Slide 16
17 Why is VSM a Useful Tool? Helps visualize interactions and flows Shows linkages between information and product flows Provides a common language for talking about a process Helps to identify: the constraint(s) - any resource whose capacity is less than customer demand; wastes as well as their sources Adapted from: M. Rother and J. Shook, Learning to See, Lean Enterprise Institute, 1998 VSM Basics V7.6 - Slide 17
18 Tips for Creating a VSM Involve entire team Actually walk the process - follow the material and information through the process, starting at the beginning Use Post-it notes and butcher paper Use symbols or icons that are meaningful to the process but common enough to be understood by all involved VSM Basics V7.6 - Slide 18
19 Industrial Strength Example Jefferson Healthcare Clinic - Current State Map OVERALL CLINIC DATA - Blocked Hours 67/day Enterprise Receive call & Send registration packet Reception Reg Pkt V1 Wait for pt to return packet Request Med History records Reception EXTERNAL PROVIDERS Med History Enterprise Receive Med History & Call to Schedule Wait for ex prov to return info Reception EMR Input Med History Reception - Cost per visit - $ Avg. Pts per hour Available hours per day 67 ROS V1 - Contact Hours 59/day - Utilization 88% Phone call Phone call Visit Clinic PATIENT EXTERNAL PHARMACIES PATIENT DATA - Volumes visit/day - Market share - Hospital 46.7% - Cancel by reason - see chart A - Payor mix commercial 38% - Satisfaction overall Volume by Diagnosis See chart B - Schedule on 1 st call 0% - # of Pts on panel 5997 Reg Pkt Enterprise V2 Obtain Demographics mini-reg & Send packet Reception - Days out for first 3 rd visit Days out by provider - See C Enterprise Call patient to schedule Reception Hot Document delays 2% EMR Input Med History Reception ROS V1 2.2 Enterprise Check-in patient for visit Reception Interface 19.1 Phone call EMR Room & perform vitals, etc. RN Med list 31.2 EMR Orders See patient MD, PA Salmon reminder (PTFP) Scripts Routing Slips Educ. 4.4 EMR Check-out patient Referral Coordinator Referrals Discharge Walk to hospital 4.8 walk or return Scripts Discharge MediTech Register for Ancillary Services Hospital Registration Discharge Rad film Interface 14.0 MediTech HOSPTIAL Ancillary Services L/T C/T - Schedule on 1 st call 0% - # of Pts on panel No shows 2% - On-time starts 37% - Referral volume 14.5 % - Volumes by service 13.0% - Days out for first 3 rd visit On-time starts 37% - Time by diagnosis Chart D - Lead-time by service - varies - Days out by provider- see chart C - Document delays 12% - Volume by hour Chart E Enterprise Pre-reg, Schedule, & Send packet Reception Reg Pkt V2 EMR ROS V2 Input Med History following Check-in Reception LEGEND = PTFP Scheduling = Hospital Services = OPC Scheduling = Patient - Schedule on 1 st call 100% - Document delays 30% = JMPG Scheduling = Patient on schedule - # of Pts on panel Days out for new visit = Clinic flow (all sites) - Days out by provider See Chart C Days out for first 3 rd visit 1.16 Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission. VSM Basics V7.6 - Slide 19
20 Additional Graphic Elements Organization Swim Lanes organize tasks by time and organization Time Castle Wall shows task and wait times WT WT TT TT TT WT SUMS WT TT Many ways to clarify the process and present data in easy-to-understand form Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission. VSM Basics V7.6 - Slide 20
21 More Information Courtesy of Lean Enterprise Institute. Used with permission. VSM Basics V7.6 - Slide 21
22 Reading List Jimmerson, C., Value Stream Mapping for Healthcare Made Easy, Productivity Press, New York, NY, 2010 McManus, H., Product Development Value Stream Mapping (PDVSM Manual), Release 1.0, Sept Lean Advancement Initiative. Rother, M. and Shook, J. Learning to See, v1.2, The Lean Enterprise Institute, Cambridge, MA June 1999 VSM Basics V7.6 - Slide 22
23 Acknowledgements Contributors Sharon Johnson Worcester Polytechnic Inst. Jose Macedo Cal Poly San Luis Obispo Hugh McManus Metis Design Ted Mayeshiba USC Earll Murman MIT VSM Basics V7.6 - Slide 23
24 MIT OpenCourseWare J / ESD.62J / Introduction to Lean Six Sigma Methods IAP 2012 For information about citing these materials or our Terms of Use, visit:
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