Simple Value Stream Mapping Explained

hey welcome back to how to lean six comm this is JT shadrach today we're going to talk about something called the VSM or value stream map so value stream mapping okay now value stream mapping is made up of two components so we're going to think of two components first of which is going to be the information flow and we'll call it two flows okay there's two flows to this string the information flow and then the material flow okay pause in terms of the values we're looking for put those right here the values that you're going to be looking for are going to be value added value added actions and now on the next one a lot people say non-value-added actions but the business value adding actions and keep in mind the the value added actions are simply change the color here are simply what will the customer pay for okay that's it it's that simple so business value we're going to just put bv a business value added actions are critical to the business in its operation so that we can provide the service of the product that the customer is willing to pay for but it's not a product or service of the customer is paying for per se the customer is paying for the thing that we deliver them that has quality or fitness for use per Joseph Duran dr. Joseph Graham so has to have that that's a need if it doesn't have a fitness for use then we haven't giving and we haven't given them anything so that that's critical now they may have a need or desire this would be a need they may have a desire and they may want that product you know quickly so speed may be an issue of speed of delivery okay so how quickly it goes through the supplier input process output customer Sybok map right which is the father of the value stream map both of which are essential for CTQ critical to quality okay now the values that will be in this value stream map as we're saying are going to be value added actions any actions that the cus that they go to the actual physical production of the product the product itself that is value added actions BVA is business value added action so if you have an employee and she is managing a strategy and deployment meeting that is critical for the business to reach its objectives of quality and speed for the customer that is still a business value-added action and the customer is not paying for that so while it's critical for us to provide the product of the service to the customer it's not value-added in the sense that the customers paying for it now the next that we will be concerned with is non-value-added actions now again some people call these over here non-value-added actions but I think it's important to separate them and just let's just call them be bas so we don't clump these together because really our job is to isolate and determine which ones are non value-added and eliminate and which ones are business value-added and improve or excuse me non value business business value-added actions and improve them and of course if we can improve this as well so that's the ultimate objective or outcome of the value stream map so the value stream map ideally you're going to have a value stream manager so a value stream manager and this is a non departmental personnel that is generally going to have an MBA or bachelors in business intelligence something like that it's not really someone that's going to be an engineer it's not somebody that's going to be IT or marketing it's or global development or anything like that it's going to be somebody that is specifically there for the purpose of seeing their job is to be able to see all the many value streams within the organization and be in a state of full-time observation collection in terms of data sorry that's not an L I didn't actually write it with three L's observation collection and improvement really improvement proposal so the VSM or the the value stream manager is an excellent candidate for a let's say a six sigma champion right this is somebody that's going to have the have the Intel through observation collection and the knowledge of improvement processes to champion and push for those six sigma black belts to be collecting teams and launching projects now there are a number of cases where the value stream is not not been mapped this value stream mapping should be done honestly it should be done at least oops there we go at least quarterly okay this is something that should be done at least quarterly there are companies that are years behind in their value stream mapping but the value stream map provides us with a baseline of our process capabilities so if we are years behind on base lining our process capabilities how can we hope to have anywhere to start in order to benchmark to a best-in-class standard it's impossible we have no idea where we are we might be above benchmark we might be below benchmark in truth if we're not process if we're not value stream mapping there's very little chance for above benchmark but in fact we're probably much further below benchmark than we would like to like to be so the regular maintenance of value stream mapping is critical in order to know what your baseline process capabilities are or C sub peak a very important so as we map the information it will be mapped in parallel to the material flow so we're going to have material flow and information flow I apologize for my penmanship so here on the whiteboard you see that we have information flow material flow running in parallel now those may branch out as the information the material are start to be sourced from different places but the main thing we want to be able to do is map the process or the value stream of that information flow and that material flow to combine to make the value stream map now you might say well material flow is easy to see cuz we follow that product through the process through the through the material flow and we can tangibly see it in truth you can see the the information flow as well because you're going to see if 5s standards are being being followed and met that's part of that information flow so you can that's the whole point of a visual management floor or visual management triangle is you want to create an environment where things are easily identified to be in or out of standard in or out of control now as we map this value stream let's talk about how we're going to do that it's a really simple process that's been made much more difficult by by people than it needs to be but it's a very straightforward and simple process it's pencil and paper what we're going to do is we're going to remember Sybok supplier input process output customer that's the overview of what the value stream map is so we're going to pick a particular product within our production environment then we're going to say here's the start and we're going to follow it through each process then maybe it comes to a decision point you can go left or right there's some sort of a binary decision that has that it's made here we'll say and this is a value stream now once we've got a rough draft of the value stream we're going to zoom in so we're going to walk through again and this time we're going to create a table for each process each P ro P sub n each production point once we make that chart we're then going to do a walk through again and we're not going to write anything down we're just going to kind of let it process then we're going to a fourth walkthrough and this time we're going to take a stopwatch we're going to time each process as we go through and once we collect that cycle time lead time tack time once we get all that data collected now we have some we talked about this in the other video what type of data do we have we have continuous data for analysis and statistical inference right so now we've collected some continuous and continuous data for analysis of statistical informant inference excuse me and we can now go back and have a Kaizen in a cross-functional environment where we can begin to cross functionally analyze processes for improvement and that is ultimately a value stream map now we have that baseline set now and once we have that baseline and we maintain it with good current data we can have a good idea of where we are are we below our capabilities of production are we above are we reaching above benchmark and if we're below right there we have an easy calculation that can be made we can get a very good estimate of what type of immediate improvements we can make because we know that we can perform at this level or excuse me at this level because we've done so in the past so we know that we can get there so we know that we have a chance that that's the gimme money right there that's the gimme value and so that baseline allows us to let's let's see let's see this visually here so we have a baseline that's going to come from our value stream map right there that lets us know where we are we're gonna look at the benchmark best-in-class that's our goal right there that's our Kaizen that cross-functional Kaizen we just talked about that's what this is it's the how how do we get to that benchmark and then of course some entitlements up here what can we get beyond that all right that's it's really a simple process and I hope that helped all right Cheers

Channel: Jerry Shadrick

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Keywords: six sigma, black belt, how to lean 6, jd, shadrick

Id: -t36ki0_w5w

Length: 12min 18sec (738 seconds)

Published: Thu Sep 18 2014