Lean Six Sigma: Value Stream Mapping

welcome everyone topic for today is value stream mapping so what are you going to learn today first of all you're going to learn what a value stream map is second of all you're going to learn how in which situations can it be applied and third of all you're going to actually learn how to construct one and so how it is composed basically what is to start with the first question what is a value stream map this is a value stream map what you see here this is an example of a value stream map doesn't mean that all value stream maps must contain the exact same amount of columns and rows as this one but this is how a typical value stream map looks like if yours does not have to look exactly like this but this is a typical example of a value stream map now what is actually shown here what is shown here and in the most concise terms is a picture of the organization and in this picture it's going to get revealed how value is flowing through the organization and in which areas of operations we still have waste and muda present okay now typically when you make a value stream map you make two so you make one for the current situation and now you think about the following if I eliminate this form of waste and that form of waste and this part and that part and I stream this part and I say streamline this part how would then the future situation look like so you make a theoretical value stream map also for the future State and then with the current value stream map and the future value stream map you can for instance approach managers and explain to them what exactly want to do what your plan is where you find currently waste what you're planning to do about it and whether you can get a resource x and y and z at your disposal to actually do something about it okay and my experience is that managers react very very well - something visual as a value stream map they react much better to that than if you would provide them the same kind of information in a I don't know at 20 30 40 50 page word file so I have a lot of good experiences with this value stream mapping integral part of lean now you'll find actually an example of a value stream map just an example so that means that yours does not have to look exactly like that in fact it should not look exactly like that because this is a snapshot of a theoretical organization and obviously if you take a snapshot of another organization it's going to look different that's the whole point alright so that's nothing to worry about typically on a value stream map you would find three kinds of flow flow of information which is shown here flow in terms of materials which is shown here and a flow in terms of time which is actually shown here alright now how do you construct this value stream map do you do that from behind your desk no my experience is that the best way to start creating a value stream map is just by walking around and the process ask this manager ask that manager ask this employee ask that employee how are you doing things what what what is the flow of information here how long does it take you to do this or that or the other thing yeah based on this information this primary information you construct the value stream for instance by walking around and asking you come to the conclusion that the purchasing department does communicate with your supplier but it's a one direction communication not two direction maybe you also come to the conclusion that there seems to be no internal communication bilateral communication between the production control department and the production and I'm the purchasing department now the lack of this or the absence of this is already very interesting information for your manager to see and the apps of this is also very important information for your manager to have okay the fact that it's not there it should be a reason for that if there is a reason then what is that reason there is no good reason and we should have bilateral communication here so that's basically it's for the information flow let's continue to the material flow we see that we get from our supplier on a weekly basis we get supplied raw materials our raw materials would typically indicate that with a symbol of a triangle same goes for working progress or inventory in general we use a triangle for that purpose and how many units do we have twelve and a half thousand units on a weekly basis how do we calculate this twelve and a half thousand that was actually a question that many of my students asked when I actually explained that to them if you do not calculate this twelve and a half thousand that is something that you can just ask okay you can ask the supplier or ask the person in charge of receiving the supplies and then based on that you include it on the value stream map okay let's have a look at what is actually being produced here it seems that we take raw materials and then we form them we drill them now we package and finally we ship them okay so it could be some kind of a toy okay that you take some raw materials you form your drill and you package and ship them now with each part you try to get as much information as you can I would say the absolute essential information is that you know the cycle time so the time frame or the time interval between one unit being formed and another unit which in this case is 11 seconds how do I arrive at that all I ask or I stand there with a stopwatch and I measure it so cycle time is the absolute minimum information that should be there but you can augment it with other kinds of information such as set up time set up time is basically the amount of time that you need to prepare the forming okay the amount of time that you need to prepare performing an uptime as a percentage that gives you an idea of the percentage of the time that this forming process was actually active so in 90 percent of the time it was active ten percent of the time where it could be used it was not used that could have several reasons it could be that the process is broken down or it could be simply this underutilized okay I do the same principle for all the other ones so for drilling and packaging and that's how I get this information now let's continue to the time ladder okay now the time ladder consists of two parts the up parts I am the down part the up part shows me the amount of time where value is not added and the down portion shows me the amount of time where value is added now when is value added value is added when you take the raw material and you form it and when you drill it when you package it then value is added other activities do not really add value for the client the client if this is a toy the client wants the raw material to be formed drilled and packaged then the toy is basically done and that adds value of other activities do not have value now on top of these you see actually some numbers how do I arrive at this five days and these stands for days how do I arrive at this five days simple I know that I have here twelve and a half thousand units of raw material each unit of raw material can be turned into a final goods or product in this case a toy since I know that my daily demand is two and a half thousand that means that it takes five times a daily demand or five days for this to be completely eliminated because five times two and a half thousand is twelve and a half hours okay so I hope this part is clear to you now how do I arrived at this 11 second that is simply the cycle time time interval between one unit being formed on another unit being formed okay 11 seconds Chango is here how do I arrive at this 0.48 days because 1200 1200 is 0.48 or 48 percent of the daily demand okay so I hope you noticed something here is that if you compare the time where some value is added to the time where value is not added if you add them all up non value-adding time if you add five days plus 0.2 days plus 3.48 days plus 2.08 days you arrive at seven point seven six days and if you add all the times where value is added you Allah you arrive on just 34 seconds okay very shocking this information well that means look at the ratio here of the amount of time that the lead time is actually quite long several days but actually for a product we turned into a finished good you only need 34 seconds now you take this value stream map to your superior and then you try to convince them based on the information here that something should be done with regard to this this this and this in order to bring down this to a more acceptable level now what is a more acceptable level that's personal that is basically what you and a manager agree on that's personal depends on your ambitions all right some last words with regard to this is that you have some freedom here if you want to change this arrow into a different color please do if you want to change this symbol of a supplier into something like this please do you have some freedom there as you can play around with what the symbols that I show you here they are semi Universal that means that they are used very often by name practitioners but they're not absolutely 100% Universal so you do have some freedom there okay so in the previous section I showed you how to create and interpret a value stream map so you start with a value stream map of the day's line or the current state and then you try to come up with a future one which has in it integrated a lot less waste or non-value-added activities how do you do that well definitely not from behind your desk okay what I always advise to my students is try to live the process try to actually walk the walk that clients walk try to walk the walk that suppliers walk etcetera etcetera and try to use your creativity together which you are coupled with your skills as a Six Sigma or lean professional try to cut away as much of the waste and non-value-added activities as possible I thought it would be nice if you actually do an exercise and I made this exercise for you I give you your hypothetical foods that okay called international food very political correct and this is how this stamp is actually arranged so here is the cook cash register the ingredients which end up in the pan something delicious from this menu is made and I'm served to the customer and the customer basically interact with the cook from this sense of an in front of the cooker so let's go through the process let's live the process basically might be a busy time Friday night before people actually go out and have drink and have some fun before that they want something to eat so the place is crowded and the cook asks who's next takes five seconds there is some confusion about who is exactly next this takes 10 seconds suddenly there's a client's maybe the dominant alpha male he decides you know what our next two seconds again this Clyde approaches the counter and attempts to read the wall menu but it's quite far away and the font size is also not that big and especially if the cook routes the name of the dishes in the native language in his or her native language then you're gonna have the situation the client tries to pronounce the name of the dish correctly and tries to find out whether it's gluten-free or or not the cook gets annoyed because you know what his language is being butchered right in front of his eyes and then the client finally finds out that indeed it is gluten-free and he says then I have one of those okay look at the amount of time that is basically spent on these activities the cook asks which size and if you look here there's no way that the client can actually know which sizes are available how big exactly is large how big is medium how big is small okay so what has to happen is that the client says I don't know which sizes do you have can I see them the cook grabs three sizes from below the counter and shows him another 15 valuable seconds of loss the client says you know what the middle one kind of looks okay the cook charges and gets paid and he actually cooks and he walks from the register to the pan and ingredients and starts cooking so he goes from here to here starts cooking and you know what happens because the client is here when he's done he walks back okay let's go back she takes the food back towards the cash register grabs chopsticks from below the register and presents the food and the chopsticks to the client and finally at the end it cleans the floor so there is no danger of slipping thirty seconds in total it takes and why does he do that because when he's walking back and forth with the food he spills sometimes the food of or get slippery ah he slipped and broke his arm once and he doesn't want that to reoccur any time in the future but what I did here is I indicated whether each activity is waste then I use the color red or value-added then I use the color green or still waste but let's say kind of necessary waste and then I use the color yellow yellow means that they're still waste but it's difficult to eliminate this waste you don't have value to the client but it's difficult to eliminate so I sign basically each category to an activity and I end up with this and I come to the conclusion to the shocking conclusion that the only thing that is really adding value to the client is when the dish is being prepared all the other parts here in this process are not really adding value to the client the client for instance should know whether a dish is gluten free or not and he should know what you know what a medium size looks like what a large size looks like what our small size looks like but he should not get that information by engaging into this conversation with the cook with a rather expensive assets in this hole but he should get this information in some other way all right so for this reason I say it's not really value adding to the client this conversation so how do we get rid of some of the waste there we use some creativity and some of our skills and then I use some of my creativity and I rearrange the place now look how it is rearranged at the beginning there was some confusion about who is next okay that took valuable seconds so by having here a number okay and here a number and say take a number and then it this this one shows who is next you actually eliminate those steps the client does not know okay how to pronounce the names of these exotic dishes so by certain we can circumvent that by just assigning numbers to these dishes and showing them with clear pictures how they look like on what is in them gluten or not gluten and what the ingredients are and clearly indicate the price by doing that we eliminate the need of the client to to you know to say what how do I pronounce this on what is in it etc etc we put clearly on the counter the different sizes that we have available chopsticks the client can grab themselves and we move the pan and the ingredients from here to here which means there's shorter there's less walking required when the cook goes from this position where he's helping the clients to the position of cooking and I'm coming back the fact that it is now closer to him also means that he has to clean a smaller area where potentially some of this food might be you know might fall on the floor and make the floor slippery okay so here we already see some actions we took and by doing that we cut away a lot of the waste or non-value-added activities that were present in the process and look how the process now looks like you see we still have some of the waste okay some of the ways we still have but if you compare it to the previous stage okay it is much much less so this is basically input for our value stream map or future value stream map okay now just maybe final things about the yellow parts which are non value-added but necessary these are difficult to eliminate they don't add value for the customer but difficult to eliminate but not impossible to eliminate them maybe in the future with different resources and different techniques you can eliminate them but at this point you accept them as necessary waste alright that's it for this session I hope it was all clear thank you very much for your valuable time thank you

Channel: Six Sigma Academy Amsterdam

Views: 77,696

Rating: 4.8580246 out of 5

Keywords: Value Stream Map, Value stream mapping, vsm, lean, lean management, lean manufacturing, lean six sigma, six sigma, muda, waste, explanation, easy, explained, course, tutorial

Id: cOsnd4v85as

Length: 19min 40sec (1180 seconds)

Published: Thu Jan 05 2017