system thinking
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