Value Stream Mapping

Course Project Part A - Helpful Notes and Guidance

Black font is text from Course Guide. Please note that my comments are in BLUE.

Instructions

For the Assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) selected does not need to be overly large or complex. Select something which has the potential for meaningful improvement, but which is manageable within the scope of this assignment.

This is a wonderful opportunity for you to choose something that can be impactful, relevant, and practical to your organization. You’ll want to choose the end-to-end process of interest to you.   Examples include: Order-to-Cash, Order-to-Delivery,  Patient Admission-to-Discharge, Customer Call from Problem-to-Resolution, Need for New Hire-to-Employee fully on-boarded, etc.   

1) Develop a current state Value Stream Map of your selected value stream. Show the customer demand rate (or Takt), information flow, work flow, and summary timeline on the map.

I want to emphasize that there are many ways to detail out the VSM.  You can get guidance on the required level of detail and amount of process information by referring to the Value Stream Mapping Book and the many VSM examples in that book’s Appendix. Be sure to start there.

You can use whatever software you prefer. Or none at all. The best value stream maps are done with flip charts, post-its, and marker pen in a facilitated group session with key stakeholders. You can use excel or powerpoint or simply sketch it neatly and legibly on paper, then scan it (or take a picture) and save it as a pdf.

2) Document key metrics for each process block:

A) Process time (PT)

B) Lead time (LT)

C) Percent Complete and Accurate (%C&A)

Explanations for these 3 key metrics for each process block are on page 68-72 of the VSM book. Begin there, calculations are provided.

3) Calculate the current state summary metrics:

a) Total lead time (Total LT)

b) Total process time (Total PT)

c) Activity Ratio (AR)

d) Rolled Percent Complete and Accurate (Rolled %C&A)

Summary metrics notes begin on page 88 of the book.

4) Describe the current state of the value stream and highlight any performance deficiencies and challenges, such as delays, excessive WIP, bottlenecks, capacity and workload imbalances, rework, poor quality yields, long lead times, and other operational issues.

Page 51-98 of VSM book.

Since you will need to include a diagram to map the value stream for #1, you should select whatever software you are most comfortable working with. Value stream process maps can easily be created in Excel or PowerPoint, but are more difficult to execute well in Word. If you like you can use software such as Visio or other software that you are comfortable with. Note: If you do use a mapping software, please convert your map to a PDF or JPG and paste it into Word or PPT before submitting. If not, not to worry because in practice, the best value stream maps are first drawn by hand using post-its and flip charts, done in a group setting getting inputs from key stakeholders in an organization. You can also draw by hand neatly, photograph or scan it (with your smartphone), and then save as pdf and include it in your submission.

For #2, the information for each process block should be on the value stream map. For #3, it can be on the map or in tabular form. Show how the summary metrics are calculated. Keep your written answers brief and to the point. Accuracy is what matters. This should take no more than one page. There are no additional points for overly elaborate responses.

For #4, a thorough response should take no more than one page.

Your submission should be around 3-4 pages in total (no need for a reference page, cover page, or abstract; this is an application paper, not a research paper). Please do not exceed 4 pages. Address ALL questions in the assignment. Be brief, concise, and business-like in your writing!