Value Stream Mapping Case Study

see the value of one of the basic lean management tools value stream mapping exemplified by the case of Perfector centrum rectum e perfecta was established in 1994 the company designs and manufactures devices that support the products of its customers perfected decided to use the value stream mapping tool in order to shorten the lead time of the acquiring order process let's see the framework of the process the acquiring order process consists of four main phases identification of customer needs preparation of the initial offer in the form of a sketch building a prototype and customer acceptance the outcome of a successful project is a production order from the customer all office processes are burdened with waste in order to reveal the waste of office processes and expose the improvement potential the process of acquiring orders true perfecter was analyzed waste is only thing that adds cost or time without adding value the most common wastes are waiting for example of documents to be signed or people to be given information rework caused by errors that have to be corrected or specifications that require completion overproducing for example making too many copies or documents processed too early inventory storing too many materials or documents in relation to real needs excessive motion of people or needless transport of documents devices and so on over processing for example making reports that no one looks over let's see the process of acquiring orders through perfecta taking into consideration the types of wastes that we are now aware of appointment with customer waiting potential project analysis waiting resource planning waiting talking to details over sketch waiting pricing waiting delivery to the customer waiting modifications to the project new prototype waiting another pricing appointment with customer waiting customer approval or resignation the process consists of 53 steps among which 37 are classified as waste which means that they don't add value from the customers point of view it appears that only 16 steps can be found as value adding the whole process lasts 74 days while the total time for value adding steps is 11 days let's look at two definitions value stream is a sequence of steps both value adding and non value-adding required to complete a product document or service from beginning to end value stream mapping is the visual representation of the value stream the method is designed for identifying and eliminating waste in the analyzed process in order to increase customer satisfaction drawing the value stream map starts with recognizing all steps in the screen we do it in Reverse sequence which means starting from the last step and moving toward the beginning of the process the Square symbol represents a single step the last step in acquiring the order process is customer acceptance and placing a production order the preceding step is prototype presentation which is represented in the same way unfortunately there is waiting time between the steps this is represented by the symbolic pile of documents for the analyzed process waiting time comes between 0 and 30 days an arrow between steps represents documents materials work or information flow in order to analyze the process properly it is essential to collect particular information concerning every single step we can write the information in the table below or inside the symbol of the step process time is the time spent actually performing the work of the particular step sometimes called hands on time or touch time delay time is the time of disruptions inside the step for example waiting for a callback it is represented by the icon of a clock placed above the step another type of delay time is the time that appears between steps and causes the extension of the lead time for example a document waiting in an inbox lead time is the total time required to complete the process it is the sum of process time and delay time percent complete and accurate is the measure of the quality of work or information it represents this part of work or set of information which was completed and correct in the first pass through the process in order to ensure clarity of the scheme all data of the particular steps on the map for perfecta are placed inside the step symbols in case a group of activities is not correctly performed the first time repeating it is necessary multiple repetition of the group of activities creates a loop that is represented by the round arrow inside the arrow we note the number of repetitions in order to analyze the lead time of the process a timeline below the map is created we note the times of particular steps and waiting times between them on the line now that we understand the meaning of the symbols let's see the current state map of the acquiring order process of perfection the timeline of the analyzed process is produced to calculate the results of value stream mapping the lead time without taking loops into consideration varies from 21 to 74 days and differs from the process time significantly as the latter is from 8 to 20 days the value of % complete and accurate rate is surprising it reveals that only 1% of the projects were completed successfully and successfully means that the customer made a production order after the product passed through the process without repetitions the great majority of the projects needed to be corrected in the analyzed process we could observe numerous problems among which can be mentioned low completeness of data passed downstream waiting times both between and inside steps loops which means multiple repetitions of a particular group of activities incorrect analysis of potential projects lack of a system of setting a project's priority isolated activity of particular departments lack of proper worker training unfavorable time distribution in the process identifying the current state doesn't close the mapping process the next phase is developing methods of eliminating problems this is the second goal of value stream mapping it consists of devising improvement actions that will enable the elimination of the root causes of problems implementing these actions will give rise to the future state of the analyzed process we mark improvements actions on the map with a burst symbol the number of people engaged in the analysed process submitted improvement actions that correspond to the particular problems some of these actions are developing checklists in order to provide the process with comprehensive data from the customer developing objective criteria for evaluating potential projects uniting the sales apartment and project apartment in order to improve information flow projects and people balancing system of effective task realization planning FIFO rule in queueing projects designer and builder training developing work standards in order to eliminate loops and corrections realization of independent tasks simultaneously implementing the mentioned actions will eliminate both delays inside individual steps and queues between them significantly shorter lead time will be the result what's more the data quality and complementarily will increase considerably which will reduce the number of loops to a maximum of one some steps will be performed in parallel and it will assure additional reduction of lead time the timeline created for the future improved state shows that the lead time will be shortened from 74 to a maximum of 45 days the total process time varies between 4 and 16 days estimated results our lead time reduced by 70% process time reduced by 85% every product or service is performed within the value stream learning to see waste in it is the first step to improvement that as a result will benefit the company with lower process costs a convenient work environment and higher fulfilment of customer requirements value stream mapping is applicable both to the plant and to the office the application of value stream mapping to office activity turned out to be successful for the acquiring order process in perfected the company is currently implementing changes and has already noticed the effects of the utilization of this comprehensive tool

Channel: Bryan Kearney

Views: 15,747

Rating: 5 out of 5

Keywords: Perfecta Centrum Reklamy, Lean, Value Stream Mapping, Poland, Educational, futuresme

Id: O3eIlej1OW8

Length: 10min 41sec (641 seconds)

Published: Fri Feb 24 2012