Value Stream Map in 10 Steps (#20)

In a previous article we discussed the different types of tools a Lean Six Sigma practitioner would have in their “Lean Toolbox.” Out of those tools, the most important one is the Value Stream Map. By using this tool, a LSS practitioner can visually show executive officers, VP’s, and team members where focusing your Continuous Improvement efforts will prove most useful.

A VSM is incredibly easy to use and create in a way that every team member will understand. The images and diagrams make it simple enough for anyone to follow along. For this article, we have created a Printing and Binding Corporation to use as an example.

When developing the Value Stream Map, I have found that it works best when the team writes it out on Post It’s and flip charts. The physical, visual representation cannot be beat.

1.       Value-Added Activities

The first thing you must do when creating a VSM is to define the different types of activities that make up each “step” of your process. Right now, we will look at “Value-Added Activities.” These three benchmarks must be completed for an activity to be considered “Value-Added.”

·         The Customer desires it

·         The physical material or data will be converted to the finished product

·         The activity is correctly finished the first time

Any point of action that does not meet the required benchmarks will be viewed as “waste.” Recognizing what actions are valuable to the company and which are not will allow for us to easily channel out focus into those actions that are considered wasteful.

2.       Goal Focus

A common misconception that many organizations face when beginning to develop a VSM is that they try to use a Value Stream Map to chart every single step (potential or otherwise) that a process may take. A VSM is not a process flow chart. A Lean Six Sigma practitioner should use a VSM to follow one part/service/transaction or a group of parts/services/transactions through the organization’s process. Each Value Stream Map follows just one path of “Value Stream.”

When we specify our project focus, a good tool to use is the Product Family Matrix. This helps the team comprehend the value of different parts/services/transactions as well as decide which individual step or group of steps has the most impact.

Here we have included an example:

When you are searching through which parts/services/transactions to include in your Product Family Matrix, you should consider:

·         Largest Dollar Volume

·         Customer Return Rates

·         Defect Rates

·         Greater Proportion of Units

·         Intricate Products (have the most number or steps/processes)

Remember that doing this will help the team comprehend and specify what adds value to the organization’s process as well as comprehend where the focus of your Continuous Improvement Efforts should be placed.

3.       Walking the Process

It is nearly impossible for a group to intricately understand how a process works if they have never been involved in that process. When a team tries to develop a Value Stream Map in an office that is significantly removed from the process they are working towards improving, they will ultimately fail.

Using verbal statements from your Subject Matter Experts alone will not help you understand where the problem is, you must see it. Go to Gemba! Draw the Ohno Circle! Walk through the process and take notes on what you see. Put your team somewhere where they will be able to connect with the process, either in a room close to it or at the process site.

4.       Working in Reverse

It is so hard to channel your focus into one specific process set when an organization follows so many different and potential processes. However, remember that we are not trying to create a process flowchart to follow all those different paths. Our number one trick to prevent walking down that road would be to work in reverse. If you start at the end of your process and work your way back to the beginning, the only option you have would be to follow that one specific process set.

5.       Illustrate Basic Value Stream

After we have intimately viewed the process and gathered data from our own findings as well as the findings from your Subject Matter Experts, we are able to define the Value Stream’s basic steps.

  

6.       Determine Queue Times

The next step we need to do is determine the waiting (Queue) times from one process step to the other. A typical VSM will put their focus on reducing these Queue times. You should categorize each time set as Value-Added time and Non-Value-Added time. Refer to step one for descriptions if necessary.

7.       Enter Process Data

All important data for the process should be put underneath their corresponding process step. These are found in step 5. Any group of data or measurements that your team has defined as pertinent to the process should be included in your VSM. Some examples of process data include:

·         Shifts

·         Batch Size

·         First Pass Yield

·         Defects/Problems per day

·         Pace/TAKT Time/Rate

·         Changeover Time

·         Process Cycle Time

8.       Smile for the Picture!

Another critical aspect of your Value Stream Map is to recognize the volume of employees stationed at each process step. Having an unbalanced labor force can create a bottleneck in your process. Draw a smiley face over each process step to help you see how many employees work at each step.

9.       Measure your Percentages

Here you should calculate the Value-Added Percentage rate (%VA). To do so, add together all the collected data in the Value-Added Sections. Divide that total by the Total Process Cycle Time. The TPCT is the length of time the product requires to move through each step of the Value Stream. Multiply this total by 100 to change it into a percent, thus giving you the Value-Added Activities Percentage Rate or %VA.

10.   Decipher your Value Stream Map

Your VSM should be a visual representation of the process for one product or group of products. It should show areas of improvement such as:

·         Bottlenecks and Constraints

·         Long Process Cycle Times

·         Poor Uptimes

·         Excessive Setup Times

·         Poor Quality and Rework

Your Value Stream Map needs to be a guide for Continuous Improvement projects that will help correct your process.

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