CEE 483-583:

CEE 483-583: ENGINEERING ENTREPRENEURSHIP, SUSTAINABILITY, AND LEAN METHODS

HOMEWORK ASSIGNMENT NO. 05 TITLE Process Mapping DUE DATE Tuesday, April 23, 2019, at the Beginning of Class DESCRIPTION This assignment is in the form of a Lean Process Map. REQUIREMENTS You are to research and develop an “As-Is” Value Stream Map for the cradle-to-grave process for obtaining LEED Certification of a building. The map is to include/address the following:

 Beginning point: Owner decision to develop a facility and become LEED Certified  Address selection/inclusion of the Design Team and their role  Address selection/inclusion of the Contractors and their role  Assume the facility will achieve Platinum Level  Identify major participants in individual swim lanes  A timeline is not required, as project specifics are not known Upon completion of the Value Stream Map, identify activities in narrative/list form as Value- Added Activities, Non Value-Added Activities but Needed Activities, or Non Value-Added Activities. Include a brief analysis defining the reasons for classification as Non Value-Adding Activities. RESOURCES Any available resources may be used in the completion of this assignment. ARTICLES The following supplemental information to be used in fulfilling this assignment:

Naiknimbalkar, Alexis and Pennington. Robyn. (September 2012). “Lean Process Improvement: Value Stream Mapping (VSM).” Western Association of College and University Business Officers. www.wacubo.org. SUBMISSION The assignment is to be submitted in hardcopy form only. Note: The Value Map may be submitted in 11 x 17 format.

Lean Process Improvement

Alexis Naiknimbalkar & Robyn Pennington September 2012

About Us Robyn Pennington, MBA, SPHR, GBA Chief of Staff, Business and Finance California State University Chancellor’s Office [email protected]

Alexis Naiknimbalkar, MBA Assistant Director, Quality and Special Initiatives California State University Chancellor’s Office [email protected]

Value Stream Mapping (VSM)

What is a Value Stream? A value stream is all the steps, both value

creating and non value creating, required to complete a product or service from beginning to end

VSM: It’s Not Just Another Processing Mapping Tool!

• Uses a systems perspective • Focuses on customer requirements • Links work and information flow • Documents delivery and quality

performance • Highlights problems • Allows process redesign to meet specific

agreed-upon objectives

Value Stream Mapping: Why VSM helps us: • understand how the process works now and

how well it’s working • expose waste and problems with flow in the

value stream • reach agreements on what changes need to

be made to improve the process • reach agreements on how to ensure that

those changes are made

Understanding Flow

Value

In the flow of value, there can be many obstacles!

Unnecessary Documents

Unnecessary Queues and Wait Times

Multiple Approvals

Inadequate Resources

Customer

Identify Areas to Improve

Process 1 Process 2

Inbox

3-14 days

1-2 days

Improvement Countermeasure

FLOW CUSTOMER

Individual Efficiency vs. System Effectiveness

Rowing twice as fast

A VSM is a simple tool that visually represents what’s going on in a value stream

Read upper-half from right to left

Supplier Customer

Information Flow

Process Boxes

Process Data Boxes (w/metrics)

Timeline & Summary Statistics (value stream metrics) Read lower-half from left to right

Typical VSM Icons

Value Stream Map Zones

Supplier Customer

Information Flow

Process Boxes

Process Data Boxes (w/metrics)

Timeline & Summary Statistics (value stream metrics) Read lower-half from left to right

Read upper-half from right to left

Typical Steps for Current State Mapping

1. Note customer and supplier issues • Process output(s) and customer(s) • Customer quantity and quality requirements; delivery types • Input(s) and supplier(s) • Supplier quantity and quality; delivery type(s)

2. Main process steps mapped in sequence 3. Value stream “walk” noting

• Information flow • Technology used • Process performance metrics

4. Calculate cumulative range process time (P/T), lead time (L/T), and overall % complete and accurate (%C/A)

Top Down Flowchart: Travel Expense Report Reimbursement Start: Traveler fills out and submits expense report End: Traveler is reimbursed

Lean Metrics • Process Time (P/T) – actual “touch time”

of one work item; exclude interruptions • Delay Time (D/T) – time work item is

delayed or not touched • Lead Time (L/T) – start time to finish time;

L/T=P/T + D/T • % Complete & Accurate (%C/A) - % of

work entering a process that is complete and accurate

Analyzing the Current State VSM: What’s a Problem?

A “problem” is… the gap between the way things are now and the way they’re supposed to be, or you want them to be, in the future

Problem Categories To improve a process look for problems in: • Meeting customer requirements • Making work flow • Doing the work • Managing to improve and learn

Using the “5 Whys” to Identify Root Causes

Identifying Current State Problems: Group Activity

1. Review the current state map 2. Write problems on post-its 3. Post problems where they appear on the

current state map 4. Don’t solve, just identify!

Current State VSM Reflection 1. What have you learned thus far that

changes how you think about your work? 2. What do you need to think/learn more

about before you use it? 3. What can you immediately apply to your

work?

Current State Mapping Tips 1. Identify the basic process boxes before

performing the actual walk through. 2. Identify the metrics that the team will collect

for each process box. 3. Add other information (via visual icons or

metrics) as you observe the process steps in motion.

4. Guard against making the map too unwieldy; start simply, and add boxes as necessary.

Current State Mapping Tips 5. Walk the value stream to gather the

performance data associated with creating the value.

6. Ask questions regarding activities and issues you see to understand potential barriers in designing future states.

7. Map the whole value stream as a team. 8. Assign team members specific tasks to

perform in the mapping process. 9. Always draw by hand and in pencil.

What is a “Lean Value Stream”? • Value - from the perspective of the

customer • Flow - no waiting or rework • Work - standardized, built-in quality • Monitoring performance - milestones,

checkpoints, and lean metrics

Creating a Future State Map 1. Define customer requirements 2. Determine scope of change

• Radical vs. incremental 3. Make the work flow

• Optimize value creating steps • Apply appropriate lean tools/approaches

Creating a Future State Map 4. Improve work quality and reliability

• Control variation • Standardize

5. Monitoring performance • Milestones • Regular checks and reflection • Feedback learning

6. Estimate your results • Quality and process improvements

(% C/A, P/T, L/T)

Quality at the Source • People must be certain that the

product/information they are passing to the next work area is complete and accurate

• People must be given the means to perform inspection at the source, before they pass it along

Techniques for Catching Defects as Close to Source as Possible

• Posted procedures & checklists (for both work steps & quality requirements)

• Self checking (visual confirmations built into work sequence)

• Successive checking (following process checks) • Mistake proofing (automatic error detection) • Zone control (checks before leaving the group or

area) • Product checks (final or functional inspection) • Systems for immediate giving feedback about

abnormalities to the processes where they originated

Summary of Results & Potential Impact

• Entering data directly into PeopleSoft and allowing electronic approvals helped to eliminate data entry and checking steps

• Service-Level Agreements put in-place to meet customer requirements

• New lean value stream has fewer process steps and automatic error checking

Metric Current State Future State Lead Time (L/T) 19 days 44 minutes 6 days 22 minutes

Percent Correct and Accurate (%C/A) 37% 89%

Process Time (P/T) 44 minutes 22 minutes