Sixsigmadsi

Value Stream Mapping Is Another Lean Tool

Adapted from https://miro.com/blog/choose-between-agile-lean-scrum-kanban/

Value Stream Mapping

Where we want to get to is Assessment 3, which integrates System Archetypes with Value Stream Mapping

How Does VSM Work?

A value stream focuses on value-adding areas for a product or service

Compare: value chain referring to all activities within a company

Much broader scope than a typical six sigma process map

Often the transition from the current state to the ideal state needs to be staged/phased

Stakeholders need to agree on the journey to the ideal state

For example, start with improving cycle times or reducing defects

VSM is often associated with manufacturing

Other applications are logistics, supply chain, service industries, healthcare, software development, product development, and administrative/office processes

3

A VSM Example

Example of a Value Stream Map for a Printing and Binding Operation

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Steps To Complete A VSM

Understand value

The customer is willing to pay for it

The material or information is being processed or transformed to final products

It is done right the first time

Focus

A VSM is not a process flowchart as it does not track all possible paths the process can take

Use a Product Family Matrix (or other tools) to provide insight into which of the products have the biggest impact by considering:

Customer Return Rates

Defect Rates

Greater Proportion of Units

Largest Dollar Volume

Complex Products (use the most processes)

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Example: Product Family Matrix

Consider that surgeries account for 48% of all hospital revenue. A value stream map can be created to find inefficiencies in for each type of operation

With an effective value stream map, hospitals and clinics can identify any bottlenecks that arise from the moment a patient enters the institution to when that patient leaves

Example: Choose Value In Healthcare

https://mosimtec.com/insights/value-stream-mapping-examples-for-different-industries/

8

Steps To Complete A VSM continued

Walk the process

Do not develop a VSM from reports and Subject Matter Expert accounts without ever experiencing the process yourself

Work backwards

The most difficult aspect is not to turn it into a flowchart where we track all of the different paths of the process

Avoid that mistake by starting from the end of the process and work backwards

Then there is no choice but to track that “one thing”

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Define the basic value stream

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Add The Queue Times

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Process Cycle Time

Much focus in VSM is on the cycle time in each process step

Changeover Time

Pace / TAKT Time / Rate

Defects / Problems Per Day

First Pass Yield

Batch Size

Shifts

Complete data you and the team have deemed important to the process

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Use coloured Post-It notes to quiz the team

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Add Labour Resources To Check For Bottlenecks

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Add the Value Added Percentage (%VA)

https://sixsigmadsi.com/10-steps-to-complete-a-value-stream-map/

Add up all data in the VA section and divide it by the Total Process Cycle Time (the time it takes for the product to travel through the entire value stream)

Convert the resulting number to a percentage (%) by multiplying by 100

Bottlenecks / Constraints

Long Process Cycle Times

Poor Uptimes

Excessive Setup Times

Poor Quality / Rework

Generally: Waste

Interpret The VSM

Ideas For VSM’s In Healthcare