vsm voc brownbag webinar 06262009 [compatibi
DESCRIPTION
June 26 Brown Bag Webinar Presentation: Value Stream MappingTRANSCRIPT
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Brown Bag University:Brown Bag University:Value Stream MappingValue Stream Mapping
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Brown Bag University:Brown Bag University:Value Stream MappingValue Stream Mapping
• Introductions
• Defining a Value Stream– What is a Value Stream?
– Difference between value add and non-value add
– Determining product families.
– Selecting a product family for analysis
• Creating a Value Stream Map– Walk The Line
– 8 Types of Waste
– Types of Data to Collect
– Steps in Drawing a Current State VSM
• Questions and Answers
• Brown Bag Series
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FacilitatorsFacilitators
Mike PircerMAP Business Solutions, Inc.(248) 379-8344www.mapbizsolutions.comwww.linkedin.com/in/mikepircer
Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.comwww.linkedin.com/in/tentmakerenterprise
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Value Stream MappingValue Stream Mapping
What is Value Stream Mapping?• PENCIL AND PAPER!!!
• Door to Door
• Prioritize Improvement Plans
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Value Stream MappingValue Stream MappingBenefits of Value Stream
Mapping.
• Creates a vision of thefuture.
• Enables broad participation.
• Reduces the risk of creating“islands of excellence”.
• Helps to break downcommunication barriers.
• Provides an implementationroad map.
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Defining a Value StreamDefining a Value Stream
What is a Value Stream?• A value stream is the set of all the actions (value-
added and non-value added) required to bring aproduct or service to the customer.
Value-added or non-value added?Three tests:
1. It changes the shape or form.
2. The customer cares about it.
3. It needs to be done right the first time.
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Defining a Value StreamDefining a Value Stream
Group Your Products into Product Families whenever possible.
Process Step
Product/Service 1 2 3 4 5 6,7,8...
A X X X X
B X X X
C X X X X
D X X X
E, F, G...
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Defining a Value StreamDefining a Value StreamGroup Your Products into Product Families whenever possible.
Service Example: Insurance Claims
Process Step
Product/ServiceDocument
#1SupervisorApproval
ManagerApproval
Document#2
VPApproval
Check tocustomer
Claims under $500 X X XClaims from $500 -
$1000X X X
Claims from $1000- $2,500
X X X X
Claims from$2,500 - $5,000
X X X X
Claims from$5,000 - $10,000
X X X X X X
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Defining a Value StreamDefining a Value Stream
Selecting a Product/Product Family for Analysis
• Depends on your business situation.
• Some criteria to consider:– Highest Product/Service Volume in $$.
– Highest Product/Service Volume in Units.
– Products/Services with the Highest Defect Rates orRework.
– Products/Services with the Highest Customer ReturnRate.
– Products/Services that Visit the Most Processes.
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CurrentCurrent--State Value Stream MappingState Value Stream Mapping
Creating the Current-State VSM• Form the team.
• Educate (if necessary).
• Brainstorm an initial map through:– Team consensus
– “Value Stream Waste Walk”
• Formalize scope and preliminary objectives.
• Draft a rough-cut map.
• Gather necessary data and info.
• Create the final current-state value stream map.
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Defining a Value StreamDefining a Value Stream
Value Stream Waste Walk• Begin with the customer and work backwards.
• As you walk through, consider:– How customer orders are processed.
– How work on the shop floor or offices is triggered.
– How orders are transmitted upstream.
– How materials are supplied.
– How products/services get from the last step in the process to thecustomer.
– Identify waste within value stream.
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8 Types of Waste
Waiting
Transportation
Over-Processing
Motion Over Producing
Defects
InventoryUnderutilized People
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CurrentCurrent--State Value Stream MappingState Value Stream Mapping
What data does the team need?• C/T – Cycle Time
• C/O – Changeover (Setup) Time
• Uptime - % machine is available
• Number of people, by type or classification
• Operating or working time available
• Average days supply in inventory between operations (WIP)
• Queue time between operations
• Scrap rate
• Absenteeism
• Top three reasons for unplanned downtime
• Top three defect causes
• Source of schedule information for each operation
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Drawing the MapDrawing the Map
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Drawing the MapDrawing the Map
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Drawing the MapDrawing the Map
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Drawing the MapDrawing the Map
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Drawing the MapDrawing the Map
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CurrentCurrent--State Value Stream MappingState Value Stream MappingA few VSM Icon DefinitionsA few VSM Icon Definitions
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Questions and AnswersQuestions and Answers
Mike PircerMAP Business Solutions, Inc.(248) 379-8344www.mapbizsolutions.comwww.linkedin.com/in/mikepircer
Dan WalkerRiver’s End Consulting(248) 770-2554www.riversendconsulting.comwww.linkedin.com/in/tentmakerenterprise
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Brown Bag Webinar SeriesBrown Bag Webinar Series
Friday, June 26 (11:30am – 12:15pm)VSM – How To Create a Current State Map
Friday, July 10 (11:30am – 12:15pm)VOC – How To Set Up a Proper VOC Project
Friday, July 24 (11:30am – 12:15pm)VOC/VSM – Group discussion
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Recommended ReferencesRecommended References
Books• Learning to See, Mike Rother and John
Shook
• Value Stream Management for the LeanOffice, Don Tapping and Tom Shuker
• Voices into Choices, Gary Burchill andChristina Hepner Brodie
• Synchronous Management,Mokshagundam Srikanth and MichaelUmble
• Throughput Accounting, ThomasCorbett
Websites• The Lean Enterprise Institute (eVSM
software can be purchased from thissite)www.lean.org
Training:• cpd.engin.umich.edu: University of
Michigan Lean Certification Program.
• www.villanovau.com: VillanovaUniversity Lean Six SigmaCertification Program