Value Stream Mapping: Theory & Cases

(1)

Value Stream Mapping

1

Value Stream Mapping:

Theory & Cases

(2)

Value Stream Mapping

2 Lean Enterprise Research Centre

Cardiff Business School

Formed in 1994 by Prof Dan Jones &

Prof Peter Hines

–

30 staff now

“Researching, applying,

& communicating

lean thinking”

“Researching, applying,

& communicating

lean thinking”

(3)

Value Stream Mapping

3 Overview

Value Stream Mapping Background

Some of the Value Stream Maps

(4)

Value Stream Mapping

4 Value Stream Mapping

(5)

Value Stream Mapping

5 My Involvement with VSM

1993-1997

Supply Chain Development Programme

* Process Activity Mapping

* Brown Paper Mapping

1997

Paper: The Seven Value Stream Mapping Tools

* Codified Mapping Approach

1997

First Rother & Shook publication

* Big Picture Mapping

1999

Corus-Forge-Volvo Transmission VSM work

2000

Going Lean publication

* see

www.leanenterprise.org.uk

2002

Lean Profit Potential

(6)

Value Stream Mapping

6 What Have I Learned?

Don’t be a ‘happy mapper’

Start by understanding what you are trying to

achieve

–

Can anyone tell me the 4 Lean Principles?

–

And what about a link to Strategy?

Involve the recipients in the mapping

–

Don’t ‘do mapping’ to people

Don’t Just Map Internally

Don’t Just Map Order Fulfilment

No one map will do the job

(7)

7 Relation of Value, Cost &

Waste

Customer

Perceived

Value

Waste/Cost

x

1

2 Creating Lean Solutions:

1. Reduce Internal Waste

2. Develop Customer Value

Creating Lean Solutions:

1. Reduce Internal Waste

2. Develop Customer Value

Cost-Value

Equilibrium

(8)

Value Stream Mapping

8

PROCESS ACTIVITY MAPPING SUPPLY CHAIN RESPONSE MATRIX BIG PICTURE MAPPING FOUR FIELDS MAPPING DEMAND AMPLIF- ICATION MAPPING DECISION POINT ANALYSIS PHYSICAL STRUCTURE VOLUME VALUE Over Production

L M L M M

Waiting

_{H H L H M M}

Transportation

_{H H L}

Inappropriate Processing

H M

M L

Unnecessary Inventory

M H M L H M L

Unnecessary Motion

H L M

Defects

_{L H}

_H

We need to find the waste first

(9)

Value Stream Mapping

9 Awareness Stage: 1980-1990

Theme

Shop Floor Practice

Focus

JIT Techniques, Tools

Business Process

Shop Floor Manufacturing

Industry Sector

Automotive Assembly

Gaps

Outside Shop Floor

Outside Single Firm

Narrow Focus

(10)

Value Stream Mapping

10 Quality Stage: 1990-mid 1990s

Theme

Best Practice Benchmarking

Focus

Cost, Quality, Reengineer

Business Process

Manufacturing & Mat. Mgt

Industry Sector

Automotive Ass./ Supply

Gaps

Human Element

Supply Chain

(11)

Value Stream Mapping

11 Quality, Cost, Delivery Stage:

Mid 1990s-2000

Theme

Lean Enterprise

Focus

Cost / Process QCD

Business Process

Order Fulfilment:

Val. Str.

Industry Sector

(Repetitive) Manufacture

Gaps

(Other) Process Integrate

Relationships

(12)

Value Stream Mapping

12 Value System: 2000+

Theme

System Capability

Focus

Value & Cost

Business Process

Integrated Processes

Industry Sector

All Manufacturing/Service

Gaps

Low Volume Manufacture

Strategic Integration

(13)

Lean Network Systems

Demand

Variability

Volume

Adapted from: Fisher, 1997

Runner

Repeater

Stranger

Low Variability/

Complexity

Kanban

Medium

Variety/Complexity

Make To Order

High

Variety/Complexity

Avoid? Stock?

(14)

Value Stream Mapping

14 Inventory Profile of the

UK Automotive Supply Chain

0 10 20 30 40 50 60 70 80 90 100 Ra w Material Bo ug ht-o ut Parts In-h

ouse built Parts

Pre-Assembly WIP Assembly WIP F inished Compone nts In bo un d T ra nsit On-site P art (VM) Ve hicle Production W IP Loa ding & Despatch Ou tb ou nd T ransit Marketplace Customer

Days of I

nvent

ory

Max

Average

Min

First Tier Suppliers Vehicle

Manufacturers Distribution& Retail

Outbound Logistics Inbound

Logistics

(15)

Value Stream Mapping

15 Some of the Maps

(16)

Back Office Area

Sales Staff Desks

New Car Showroom

Coffee

Area

Service Desks

Parts

Store

Service Workshop

Valeting Area

In-Servicing Vehicle Storage

Customer Car Park

Used Car Storage Area

New Car Storage Area

Customer

Delivering

Car

Technician

& Valeter

Activity

Customer

Collecting

Car

Spaghetti Diagram

(17)

Big Picture Map: Current State

C/T = 5 sec Uptime = 100% 450 sec av Batch = 10 Variety = 3 Operation 1 Red Blocks 510 sec

5 blocks 4 blocks 4 blocks 2 blocks

1 piece per time

Variety = 3

30 pieces per 7.5 min 1 every 15 sec

Lean Ltd.

Operation 2 C/T = 7 sec Uptime = 100% 450 sec av Batch = 7 Variety = 3 C/T = 7 sec Uptime = 100% 450 sec av Batch = 9 Variety = 3 Operation 3 C/T = 5 sec Uptime = 100% 450 sec av Batch = 1 Variety = 3 Operation 4

Batches

Numerous Variety

Random Supply

Blocks R Us

I I I I I

15s Order

30 round

Forecast

Planning

Operator

Manager’s Schedule

30 sec 510 sec 5 sec 60 sec

Prodn Lead Time = 735 sec VA Time = 24 sec 75 sec 7 sec 7 sec 60 sec 5 sec

(18)

Big Picture Map: Future State

Red

Blocks

White

Blocks

Batch

1 piece per time

Variety = 3

TAKT = 15 sec

Lean Ltd.

Standard Number

Supply to Pull

Blocks R Us

C/T = 5 sec Uptime = 100% 300 sec av Batch = 1 Variety = 1 Operation 1 Operation 2 C/T = 5 sec Uptime = 100% 300 sec av Batch = 1 Variety = 1 C/T = 5 sec Uptime = 100% 300 sec av Batch = 1 Variety = 1 Operation 3 C/T = 5 sec Uptime = 100% 300 sec av Batch = 1 Variety = 3 Operation 4

_R

Y

G

60 sec 20 sec 5 sec 20 sec

Prodn Lead Time = 160 sec VA Time = 20 sec 20 sec 5 sec 5 sec 20 sec 5 sec

1

1 Daily Order

30 round

Forecast

10s Order

Planning

Forecast

Order

Changeover Waste Elimination Milk Round Cycle Time

(19)

Value Stream Mapping

19 Some of the Maps

(20)

Value Stream Mapping

20 Process Activity Map

(21)

Value Stream Mapping

21 Identifies where quality problems exist in

the supply chain

3 types of quality defect

–

Product defects - defects in goods that are not caught

by in-line or end-of-line inspection and are therefore

passed on to customers

–

Service defects - problems given to a customer not

directly related to the product but to the level of service

–

Internal scrap - defects produced in a company that

have been caught by in-line or end-of-line inspection

(22)

Value Stream Mapping

22 Quality Filter Chart

0 100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

Blanking

Pressing

Assembly

Paint

Despatch

Parts Pe

r Millio

n

Product Defects

Service Defects

Scrap

(23)

Value Stream Mapping

23 Product Variety Funnel

PIECE PART CUT (SIZING) PACKED PRODUCT (FGS) SEW PRODUCT PIECE PARTS CUT DYE KNIT YARN GREY FABRIC COLOURED FABRIC (TUBE) VARIANT FLEXIBILITY LEAD TIME PACK SIZE COLOUR GAUGE YARN GAUGE KNIT

(24)

RS Components Course

Value Analysis Time Profile

0 50 100 150 200 250 300 350 Time (hours) 0.0 0.5 1.0 1.5 2.0 2.5

cum cost total cum cost val add

c o s t r e d u c tio n o p p o r tu n ity H o riz o n ta l p la te a u s h o w o p p o rtu n itie s fo r le a d -tim e re d u c tio n re c e iv e g o o d s in P re s s o p e ra tio n s P o s t-A s s e m b ly d e c a n tin g , in s p e c tin g e tc A s s e m b ly o p e ra tio n s W IP s to re s to re g o o d s in

(25)

RS Components Course

Value Analysis Time Profile

0 50 100 150 200 250 300 350 Time (hours) 0.0 0.5 1.0 1.5 2.0 2.5

£ 2 .2 9 T o ta l

£ 2 .0 1 V A

3 3 7 h r s

*

(26)

RS Components Course

Value Analysis Time Profile

0 50 100 150 200 250 300 350 Time (hours) 0.5 1.0 1.5 2.0 2.5

£ 2 .0 3 T o ta l

£ 1 .9 6 V A

2 2 5 h r s

(27)

Value Stream Mapping

27 Four Field Map:

Current State

Customer Service Team

Finance Charge C/W Non Charge

C/W

Filing Reception Senior

Finance C/W

Standards & Comments

Finance Phase 2A

Time Reso-urce Monica’s Table Finance Legal/Means Phase 2 Charge

Charge _ChargeNon

Tag No No Yes Yes Pull Need File Skills Skills Get File Yes No Process

Post ProcessPost Post Bucket Post Bucket 4 Senior Case Work’ Yes Yes No No Post Bucket 2 - 7.5 hrs 2 hrs 1 wk -34 wks 1 hr 3 – 9 hrs 1 wk 13 to 248 days

Total

Variance depends on Case Worker, variable location of sort

Backlog calculated using oldest date (worst case scenario) Not FIFO

Reception Tag & Filing All file requests dealt with at the same time

Assume 1 person processing post

Unable to quantify referral time

2 hrs 1 hr 0.25 hr 0.1 –2 hrs 0.5 hr 3:20 to 5:15 hrs

(28)

Value Stream Mapping

28 Four Fields Map:

Future State

Charge Non Charge Filing Senior

Case Worker

Standards & Comments

Finance Phase 2A

Time Reso-urce Charge with files Non Charge With files Pull File Skills Skills Referral Yes Yes No No 10 – 15 mins Read Letter Read Letter Need File Need File Yes Yes No

Get File Get File

Process Process Process

Post Bucket Post Bucket Post Bucket No 5 mins 2 hrs if rqrd 10 mins – 2 hrs 5 mins 30 mins to 4 hrs 25 mins 10 – 15 mins 5 mins 5 mins 10 mins – 2 hrs 5 mins 30 mins to 2 hrs 30 mins

Training needed / cultural issues to be addressed

Charge post is sent to C/W with File (no need to pull file at later stage)

Referral process: Matter would always be passed back to C/W after the Senior C/W has considered it, either with a work solution or guidance notes. This box to be emptied once daily (allocation rota)

Non Charge post, where file needed, files to be supplied by filing 4 times daily (2 am, 2 pm) from a tray in each pod. This activity is a priority

Calculated per piece of post Post split into 1st_{, 2}nd_{, Dx}

(29)

Value Stream Mapping

29 Cases and Examples

(30)

Value Stream Mapping

30 The Research Model

Strategic Level

Operational Level

Business Strategy

Formation and

Policy Deployment

Customer

Understanding

Process Activity

Understanding

Process Costing

Understanding

Business Strategy

Validation and

Action Planning

(31)

Value Stream Mapping

31 Critical Success Factors

Continue to grow markets share in the 3 channels

Recruitment, development and retention of skilled &

motivated workforce

External influenced innovation

Developing the right balance between the 3 channels

Close existing & new customer relationships

Keep the franchise

Long term focus & profitability

(32)

Value Stream Mapping

32 Key Business Targets

Vision

KPIs

Unit

Now Year 1

Year 2

Year 3 Year 4 Year 5

Gross Profit/New Car

%

2.0%

2.3%

2.6%

2.9%

3.2%

3.5%

Gross Profit/Used Car

%

7.0%

7.6%

8.2%

8.8%

9.4%

10.0%

Finance Penetration New Cars %

23.0%

Finance Penetration Used Cars %

16.0%

17.8%

19.6%

21.4%

23.2%

25.0%

Admin Expenses

%

0.9%

1.0%

1.1%

1.0%

0.9%

Market Share: Region vs Nation

%

6.8/6.8

7.0/7.0

7.3/7.3 7.5/7.5 7.8/7.8

8.0/8.0

Retention New: First Service

%

80%

Retention New: 3 years

%

30%

36%

42%

48%

54%

60%

Retention Used: First Service

%

25%

26%

27%

28%

29%

30%

Return on Total Turnover

%

1.4%

1.9%

2.4%

3.0%

3.5%

4.0%

Volumes: New Cars

#

550

580

610

640

670

700 Volumes: Used Cars

#

270

296

322

348

374

400 Service Parts Absorption

%

60%

68%

76%

84%

92%

100%

Stock Turn: Used Cars

#

8

8 Stock Turn: Parts

#

7.9

8

8 OCE: New Cars

%

39.5%

41.0%

42.5%

44.0%

45.5%

47.0%

OCE: Used Cars

%

38.4%

45.6%

52.8%

60.0%

67.2%

74.5%

OCE: Service

%

51.1%

55.2%

59.3%

63.4%

67.4%

71.5%

(33)

Value Stream Mapping

33 New Car Value Attributes Importance vs Satisfaction

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Bran d Prod uct Cha racteristi cs Pric e Pay men t Terms Order/De liver y Tim e Dealer R eput ation Staf f at th e Dealer Dealer F acilities Afte r Sales Serv ice Importance Satisfaction

(34)

Value Stream Mapping

34 The Service Process

Process Activity Mapping Example

FLOW (O/T/I/D/D')

ACTIVITY (FVA/VA/SA

/W)

AREA DIST MTS TIME MIN PEOPLE

Customer comes through the door

Customer arrives to Service desk and sits T SA Showroom 20 0.25 1

Customer waits D W' Showroom 0 2 1

Identify the customer I SA Showroom 0 0.5 2

Control if job card information are correct I W Showroom 0 2 2

Customer signs O SA Showroom 0 0.1 2

Collect customer's keys O SA Showroom 0 0.1 2

Arrangement to return car I SA Showroom 0 1 2

Write arrangement on job card O SA Showroom 0 0.25 1

Find a place for job card D W Showroom 3 0.5 1

Waits for workshop controller D W' Showroom 0 120 0

. .

Ian checks job cards I W Showroom 0 0.5 1

Ian informs Darren who is going to do the service O SA Showroom 0 0.1 2

Darren up-dates Time Sheet O W Showroom 0 0.1 1

Ian hands out work between technicians T SA Showroom/Workshop 20 2 2

TOTALS 43 129.4 20

(35)

Value Stream Mapping

35 The Service Process

Big Picture Map

Lead Time

3,6 days

Lead Time

3,6 days

Routine Regular service Understanding Requirements & Booking 90% phone call 10%personal visit Service at Dealer Concerns :break down , warranty Car Collection 90% customer brings the car 10% car collected at home/work 75% 25% Prepare Service Job Cards 5 min - the day before service Investigation & Paperwork Large Repair Small Repair Done immediatly 5% 95% Hot orders Check parts & Pre -picking 3,5 min 5 min 2 days later 35 cars = 1 day Mechanical Work 5 operators Valeting Service 95% 22 min 5% 1,5 h Custom .collectio n & Payment 50% customers come back later

Accountant (invoice registr .) the day after Found more repairs Call customer Work division Continue scheduling during day Final Road Test 30% 70% 3 cars

= 1 h 15% pick up from_{city centre}

Quality Feed -back Ring 3-5 days later inv oic e 2 valeters Parts storage PC Replenish System 24h - Local storage center 48h -From other dealer Automatic replenishment 1/1,5 hours cur rier 25% waits at dealer 10% courtesy car

(36)

Value Stream Mapping

36

Activities Activity cost %

Visit at Dealer & take order

??

0.0%

??

0.0%

??

0.0%

??

0.0%

??

Source car 0.0% 0.0% 0.0% 0.0%

Car arrival, Delivery arrang. & Service Booking 0.0% 0.0% 0.0% 0.0%

Invoice&AFRL 0.0% 0.0% 0.0% 0.0%

PDI - Mechanical Work&Road Testing 0.0% 0.0% 0.0% 0.0%

Valeting 0.0% 0.0% 0.0% 0.0%

Customer Collection 0.0% 0.0% 0.0% 0.0%

Totals - - - - -

New Car Sales Process

VA FVA SA W

(37)

Value Stream Mapping

37 The Process

Costing Perspective

ASC Area

Storage Centre New CarSource & Take OrderFinalise Deal & Test DriveDealer Visit to PurchaseDecision

Sales DP - 3 Sales DP - 2 Sales DP - 1

10,081.24 4,750.40 6,577.48

Other Dealer Stock

Own Stock Factory Order _{Visit Other Dealer}Think &/or

Invoice Emission & AFRL - Trigger

VW Payment _58,746.75

71,486.00 Administration DP - 1 26,632.86 2,840.40

Car Arrival

& Delivery Check ArrangementDelivery PDI Valeting CollectionCustomer

Sales DP - 5 Sales DP - 6 Mech.Service DP - 6 Mech.Service DP - 1 Sales DP - 4

7,125.60 2,740.61 5,899.91 2,859.94 8,404.55

General

>> Sales DP General Costs >> Commission Stock Mantaining 19% 9% 13% 5% 13% 5% 15% 5% 16%

(38)

Value Stream Mapping

38 The Strategic Change

Programme

Value Creation

Used Car Loyalty Scheme

Service Customer Care

Service Pricing incl. Courtesy Car

Used Car Replacement Cycle

Waste Reduction

Scheduling of Service Bay incl. PDI

Scheduling of Valeting

Right First Time Lean Servicing

Infrastructure

Annualised Hours

Measurement Scheme

Skills/Competency Scheme

External

Improved Supplier New Car

OTD Cycle

(39)

Value Stream Mapping

39 The Profit Potential

(£ annually by end 2002)

Level 1 (Internal Waste Reduction)

£ 49.6K

Level 2 (Customer Value Added)

£ 62.5K

Level 3 (Multiplier Effects)

£ 43.2K

Annual Profit Potential by end 2004

£155.3K

Equivalent to a 105%

increase in profitability

(40)

Value Stream Mapping

40 Cases and Examples

#2 Supply Chain:

Corus - Automotive

(41)

Corus

Steel & Alloy British Steel Distribution

Albion Pressed Metal

Tallent Engineering

LDV

GKN Sankey

Krupp Camford

Wagon Group

LEAP: Participating Companies

First Tier Component

Producers

Steel Service

Centres

Steel

Mill

Automobile

OEM’s

(42)

Value Stream Mapping

42 Specific Improvement Targets

Improvement Area British Steel Strip Products Steel Service Centres Metal Processing Customers

Total for the Three Tiers

1. Lead Time Reduction 40% 40% 40% 40%

2. Time to Market Reduction 30% 30% 30% 30% 3. Stock Reduction 10% 20% 20% 15% 4. Quality Improvement 50% 20% 50% 45% 5. Productivity Improvement

5% per annum 5% per annum 5% per annum 15% over 3 years 6. Increased Mutual

Business

(43)

RS Components Course

35

36

37

38

39

40

41

42

43

44

45

46

47

48

Week number

0 5000

10000

15000

20000

25000

30000

35000

Quantity Blanking plan Blanking Actual Pressing Plan

Demand Amplification

(44)

RS Components Course

0

50

100

150

200 Tonnes

Enduser Demand Wide coil orders

BSSP Deliveries

(45)

C/T = 1 sec C/O = 20 min Uptime = 70% 27,000 secav EPE 10 Days 5 Month Forecast Lead Time = 47 to 69 days VA Time = 7262 sec (121 min) C/T = 1 sec C/O = 30 min Uptime = 70% 27,000 sec av EPE 10 Days C/T = 13 min C/O = 0 min Uptime = 85% 2 shifts 27,000 secav C/T = 1 hour C/O = Uptime = 65% 2 shifts 27,000 secav C/T = 9 min C/O = 0 min Uptime = 85% 2 Shifts 27,000 secav Tray = 14 off 2 shifts 12,000 pcs/mo Coils 3 Days

1200 Sec. 900 Sec. 1 Sec. 1 Sec. 780 Sec.

1.2 Days 2 Days

2 Days 10 Days_{to 32 Days} 6 Days

2 Days

I

I I I I I

Vehicle Assembler

Blanking Pressing Assembly Paint Assembly Dispatch Slit Dispatch Daily Order With Time slots 1 x hours Shipping Schedule 2 shifts

Coils

Steel Service Centre 3 Month Forecast Weekly Order Fax Revision PRODN. CONTROL Weekly Schedule by Day I I Dispatch I Pack I Pickle I Hot roll Iron & Steel

Making

C/T = 120 hrs (includes cooling)

C/T = 15 min

C/O = 10 min C/T =4min/coil C/O = 45 min Uptime = 55% 2 shifts 27,000 secav Weekly Schedule & Revisions STEEL MILL SCHEDULING Check vs

Production Plan Sales PlanCheck vs COMMERCIAL Order (3 months in advance) Promise (Negotiation) Call off weekly

or by day Revisions to Missed Deliveries Individual Schedules

3 Days1 Day 16 Days

240 Sec.

3 Days

3600 Sec. 540 Sec. 0.6 Days 0.27 Days

(46)

coi

l

tote

C/T = 1 sec C/O = 5 min Uptime = 85% 27,000 secav EPE Day Lead Time = 11.5 days VA Time = 6902 sec C/T = 1 sec C/O = 5 min Uptime = 85% 27,000 sec av EPE Day C/T = 60 min C/O = 0 min Uptime = 65% 2 Shifts 27,000 secav Tray = 14 off 2 shifts 12,000pcs/mo

1200 Sec. 1 Sec. 1 Sec.

4 Hours 1 Day

1 Day

Vehicle Assembler

Blanking Pressing Dispatch Slit Dispatch Daily Order With Time slots 1 x hours OXOX 2 shifts

Coils

Steel Service

Centre _CONTROLPRODN.

Dispatch Pack

Pickle

Hot roll Iron & Steel

Making C/T = 120 hrs (includes cooling) RFT = 85% C/T = 15 min

C/O = 10 min C/T =4min/coil C/O = 5 min Uptime = 85% 2 shifts 27,000 secav STEEL MILL SCHEDULING Orders 1 Day 7 Days 1200 Sec. 1 Day 3600 Sec. 1 Day

1414

₁₄

900 Sec.

600

Forecast Transmission (Supply Chain Syvchronisation) 5 Month Forecast

14

Assembly & Paint

14

Batch

tote

Batch Coil 600 Daily Order

600

600 coi

l

Coil 600 F I F O

(47)

Value Stream Mapping

47 LEAP Targets & Results

Area

Target

Results

Lead Time

40%

_u

20-90%

_u

Stock Reduction

15%

_u

20-75%

_u

Quality

50%

_t

50 ppm

Productivity

15%

_t

8-33%

_t

Increased Business

30%

_t

40-50%

_t

Design Time

30%

_u

30%

_u

(48)

Value Stream Mapping

48 Cases and Examples

#3 An Information Based Process:

Insurance Company

(49)

Value Stream Mapping

49 The Twelve Phases Map

1. Planning

2. Pre-audit

3. Initial visit

4. Billing

5. Cert. production

6. Tech. Cert. review

7. Outsourcing

8. Cert. completion

9. Visit cycle

10. Billing Amf

11. Visit 1

12. Strategic review

Mapped at the ‘point of activity’

(50)

Value Stream Mapping

50 Completing the Flow

Current

State

Maps

Paper

work

flow

(51)

Value Stream Mapping

51 Current state map

Start

(52)

Value Stream Mapping

52 Current state map

Finish

(53)

Value Stream Mapping

53 Current State

4 4 14 14

7. Outsourcing

26 21 3 2.5

8. Cert. completion

55 27 6 0.5

9. Visit cycle

12 12 7 1

10. Billing AMF

15 4 15 2 31 2

11. Visit 1

50 10 50 2 26 9

12. Strategic review

57 24 49 8 201.5 42.5

Total of process

30 10 8 2

4. Billing

40 2 32 10 1

5. Cert. Production & proof reading

1 3 9 1 47.5 17.5

6. Tech. cert. review

40 20 30 3

3. Initial audit

Mins

Hours

Days

Hours

Days

40 20 25 30 3

2. Pre-audit

1 10 2

1. Planning process

Maximum

Minimum

Maximum

Minimum

Resource

Time Line (calendar days)

Phases –

(54)

Value Stream Mapping

54

[1]

Phase 1 – Resource Planning

Modules for clients. Education of client. Staff training (pick up on buying signals/leads etc). Opportunity to influence ass via financial incentives etc Always done it this

way Sales target driven.

Communications/Edu cation of client. Information not right Readiness of client

Culture

Comfort/lack of trust Always done it this way Lack of trust Comfort factor Culture Investigate system capability Current systems do not allow for monitoring as per s/s Use of planning spreadsheet/correspondence

log

Obtain alternative contacts from client (education of client re: status of registration) Planning to fail

Single point of contact (1st_time)

Review format of data – sales brief and sales application checklist. Planning to fail (brief may say 6-8 months) Ownership from sales – resp/training to get it right

Information not right Validation of data

Read electronically Print of email (sales brief)

Value Stream Mapping: Theory & Cases

Value Stream Mapping

1

Value Stream Mapping:

Theory & Cases

Value Stream Mapping

2

Lean Enterprise Research Centre

Cardiff Business School



Formed in 1994 by Prof Dan Jones &

Prof Peter Hines

–

30 staff now

“Researching, applying,

& communicating

lean thinking”

“Researching, applying,

& communicating

lean thinking”

Value Stream Mapping

3

Overview



Value Stream Mapping Background



Some of the Value Stream Maps

Value Stream Mapping

4

Value Stream Mapping

Value Stream Mapping

5

My Involvement with VSM

1993-1997

Supply Chain Development Programme

* Process Activity Mapping

* Brown Paper Mapping

1997

Paper: The Seven Value Stream Mapping Tools

* Codified Mapping Approach

1997

First Rother & Shook publication

* Big Picture Mapping

1999

Corus-Forge-Volvo Transmission VSM work

2000

Going Lean publication

* see

www.leanenterprise.org.uk

2002

Lean Profit Potential

Value Stream Mapping

6

What Have I Learned?



Don’t be a ‘happy mapper’



Start by understanding what you are trying to

achieve

–

Can anyone tell me the 4 Lean Principles?

–

And what about a link to Strategy?



Involve the recipients in the mapping

–

Don’t ‘do mapping’ to people



Don’t Just Map Internally



Don’t Just Map Order Fulfilment



No one map will do the job

7

Relation of Value, Cost &

Waste

Customer

Perceived

Value

Waste/Cost

_{H H L H M M}

_{H H L}

_{L H}

_H