Value Stream Mapping
Basics
Learning Objectives
At the end of this module, you will be able to:
• Sketch a basic value stream map
• Demonstrate basic value stream analysis
• Recognize steps for process improvement
using value stream mapping and analysis
VSM Basics V7.6 - Slide 2
© 2012 Massachusetts Institute of Technology
Hot Dog Stand Process Map
$
$
11 - Clean up
Image by MIT OpenCourseWare.
1- Take order
10 - Set up
2
In
order
9 - Deliver to
customer
8 - Add
beverage
3 - Get order
Cook dogs
7
Order
OK
?
No
Yes
6
Out
order
Yes
4 - Put in bun,
wrap, add fruit
No
5
Another
dog
?
How can Sasha and Andy improve their productivity
to meet growing customer demand?
VSM Basics V7.6 - Slide 3
© 2012 Massachusetts Institute of Technology
Five Lean Thinking
Fundamentals
• Specify value: Value is defined by customer in terms of
specific products and services
• Identify the value stream: Map out all end-to-end linked
actions, processes and functions necessary for
transforming inputs to outputs to identify and eliminate
waste
• Make value flow continuously: Having eliminated waste,
make remaining value-creating steps “flow”
• Let customers pull value: Customer’s “pull” cascades all
the way back to the lowest level supplier, enabling just-intime production
• Pursue perfection: Pursue continuous process of
improvement striving for perfection
Ref: James Womack and Daniel T. Jones, Lean Thinking (New York: Simon & Schuster, 1996).
VSM Basics V7.6 - Slide 4
© 2012 Massachusetts Institute of Technology
Value Stream Map (VSM)
•
A tool used to improve a process by identifying added
value and eliminating waste
• A process map that follows the value creation process
•
“strap yourself to the product (or service)
and see where you go”
• A process map with data added
•
•
•
•
Times: processing, wait, cycle
Quality: number of rejects
Inventory
Resources
•
•
•
Number of people
Space
Distance traveled
• Whatever else is useful for analyzing the process
VSM Basics V7.6 - Slide 5
© 2012 Massachusetts Institute of Technology
Steps for Creating a VSM
1. Define customer value and the process
•
•
“Walk” the process to identify tasks and flows
Identify value-added and waste process steps
2. Create the “current state” VSM
•
Gather data on resources, time, quality for each step
3. Analyze map to determine opportunities for
improvement
•
•
Identify bottlenecks and other flow impediments
Brainstorm actions to eliminate waste and add value
4. Create a “future-state” map to visualize the
desired and realistic next state
5. Create action plans to move toward future state
VSM Basics V7.6 - Slide 6
© 2012 Massachusetts Institute of Technology
Step 1: S&A Customer Value
and Process Map
Current Demand
50 customers
100 hot dogs
$
$
Image by MIT OpenCourseWare.
1- Take order
10 - Set up
2
In
order
9 - Deliver to
customer
Customer Value
Good food
Faster service
8 - Add
beverage
3 - Get order
Cook dogs
11 - Clean up
7
Order
OK
?
No
6
Out
order
Yes
Yes
4 - Put in bun,
wrap, add fruit
No
5
Another
dog
?
This process map follows the value creation process ✔
Value/waste assessed at each process step ✔
VSM Basics V7.6 - Slide 7
© 2012 Massachusetts Institute of Technology
Step 2: Add Data
$
$
T = 48 sec
Image by MIT OpenCourseWare.
Qual = 100%
T = 11 sec
T = 30 sec
Qual = 100%
Qual = 100%
1- Take order
Qual = 90%
T = 10 sec
T = 60 sec
Qual = 100%
9 - Deliver to
customer
Yes
8 - Add
beverage
No – 10%
10 - Set up
T = 48 sec
Qual = 100%
2
In
order
T = 30 sec
3 - Get order
Cook dogs
7
Order
OK
?
4 - Put in bun,
wrap, add fruit
T = 110 sec
T = 44 sec
Qual = 100%
Qual = 100%
11 - Clean up
6
Out
order
T = 33 sec
Yes
5
Another
dog
?
No
T = 22 sec
Display of relevant data completes basic VSM
Images by MIT OpenCourseWare.
VSM Basics V7.6 - Slide 8
© 2012 Massachusetts Institute of Technology
S&A Takt And Cycle Times
Current demand
50 customers
Open from 10AM - 2PM
Available time
4hrs 60min /hr
=
= 4.8min = 288 sec
Customer demand 50 customers
Cycle time (summed from previous data)
= 7.4 min = 446 sec
Takt time =
Valid alternate calculation –
assume setup/cleanup is done “when things are slow”
10 - Set up
11 - Clean up
Available time
4hrs 50min /hr
Takt time =
=
= 4.0min = 240 sec
Customer demand 50 customers
Cycle time (excluding set up & clean up)
= 5.8 min = 350 sec
Cycle time > takt time, but two workers – can demand be met?
VSM Basics V7.6 - Slide 9
© 2012 Massachusetts Institute of Technology
Step 3: Value Stream Analysis
Sasha
Andy
Image by MIT OpenCourseWare.
Image by MIT OpenCourseWare.
• With your team, take 15 minutes to
• Calculate the total
• Value added time
• Non value added time
• Wait time
• Calculate the total “touch time” that Sasha and
Andy spend on a single order
• Be ready to report your answers to the class
VSM Basics V7.6 - Slide 10
© 2012 Massachusetts Institute of Technology
Utilization and Capacity
VAT is only slightly over 50%  Opportunities for improvement
Available time = 4 hours = 240 min
Worktime: Touch time per order X number of orders
Sasha’s tasks:
/60 min X 50 cust. = _____ min
Andy’s tasks:
/60 min X 50 cust = _____ min
Utilization: Worktime / time available
Sasha’s: (_____min / 240 min) X 100% = ____%
Andy’s: (_____min / 240 min) X 100% = ____%
Capacity: Time available / touch time per order
Andy working at 100% = (240min X 60) / _____sec = ___
VSM Basics V7.6 - Slide 11
© 2012 Massachusetts Institute of Technology
Utilization and Capacity
VAT is only slightly over 50%  Opportunities for improvement
Available time = 4 hours = 240 min
Worktime: Touch time per order X number of orders
133 min
Sasha’s tasks:159 /60 min X 50 cust. = _____
Andy’s tasks: 224 /60 min X 50 cust = _____
187 min
Utilization: Worktime / time available
55
133
Sasha’s: (_____min
/ 240 min) X 100% = ____%
Andy’s: (_____min
/ 240 min) X 100% = ____%
187
78
Capacity: Time available / touch time per order
224
64
Andy working at 100% = (240min X 60) / _____sec
= ___
We will consider complications like varying orders or
irregularly spaced customers in the Variation Module
VSM Basics V7.6 - Slide 12
© 2012 Massachusetts Institute of Technology
Summary - S&A Value Stream
Analysis (VSA)
• Current production (50 customers) is a little below
current capacity (64 customers) of Andy and Sasha
•
•
Andy and Sasha are both underutilized
•
•
Process improvement needed to meet growing
demand
But utilization is not balanced between them
Cycle time of 7.43 min per customer
(or even 5.8 min) too long
•
Should be able to shorten cycle time to meet
demands of customers for faster service
Bottom Line
Sasha and Andy should implement process
improvement for week 3 to meet growing demand!
VSM Basics V7.6 - Slide 13
© 2012 Massachusetts Institute of Technology
Improvement Brainstorm
Sasha
Andy
Image by MIT OpenCourseWare.
•
Image by MIT OpenCourseWare.
Help Sasha and Andy figure what to improve
•
•
•
•
How can utilization be improved?
How can cycle time be reduced?
What has to be done to serve 75 customers?
What has to be done to serve 100 customers?
VSM Basics V7.6 - Slide 14
© 2012 Massachusetts Institute of Technology
Brainstorm Bursts
$
$
11 - Clean up
Image by MIT OpenCourseWare.
1- Take order
9 - Deliver to
customer
8 - Add
beverage
7
NVA
Order
Inspection
OK
Yes
No
10 - Set up
2
In
Order
3 - Get order
Cook dogs
Balance
Work
?
4 - Put in bun,
wrap, add fruit
6
Out
Order
Yes
5
NVA
Another
dog
Inspection
?
No
VSM Basics V7.6 - Slide 15
© 2012 Massachusetts Institute of Technology
Steps for Creating a VSM
1. Define customer value
2. Create a “current state” map
•
•
“Walk” the process to identify tasks and flows
Gather data on resources, time, quality for each
3. Analyze map to determine opportunities for
improvement
•
•
Identify value-added and waste
Brainstorm actions to eliminate waste and add value
4. Create “future-state” map to visualize the desired
state
5. Create action plans to move towards future-state
VSM Basics V7.6 - Slide 16
© 2012 Massachusetts Institute of Technology
Why is VSM a Useful Tool?
•
Helps visualize interactions and flows
•
Shows linkages between information and product
flows
•
Provides a common language for talking about a
process
•
Helps to identify:
•
•
the constraint(s) - any resource whose capacity is
less than customer demand;
wastes as well as their sources
Adapted from: M. Rother and J. Shook, Learning to See, Lean Enterprise Institute, 1998
VSM Basics V7.6 - Slide 17
© 2012 Massachusetts Institute of Technology
Tips for Creating a VSM
• Involve entire team
• Actually walk the process - follow the material
and information through the process, starting
at the beginning
• Use Post-it notes and butcher paper
• Use symbols or icons that are meaningful to
the process but common enough to be
understood by all involved
VSM Basics V7.6 - Slide 18
© 2012 Massachusetts Institute of Technology
“Industrial Strength” Example
Jefferson Healthcare Clinic - Current State Map
OVERALL CLINIC DATA
EXTERNAL
PROVIDERS
Reception
Reception
- Cancel by reason - see chart A
- Payor mix – commercial 38%
ROS
V1
- # of Pts on panel – 5997
- Days out for first 3
rd
Salmon
reminder
(PTFP)
Document delays – 2%
Scripts
visit – 3.75
Enterprise
Obtain
Demographics
“mini-reg” &
Send packet
Hot
Reception
Reception
Enterprise
EMR
Enterprise
Call patient
to schedule
Input Med
History
Reception
ROS
V1
Interface
EMR
Check-in
patient for
visit
Room &
perform
vitals, etc.
Reception
RN
2.2
19.1
1.6
- Schedule on 1 st call – 0%
Enterprise
Pre-reg,
Schedule, &
Send packet
Reg Pkt
V2
Reception
- Schedule on 1 st call – 100%
- # of Pts on panel 5886
- Days out for new visit - 15.01
Scripts
Routing
Slips
Med
list
Educ.
EMR
Orders
See
patient
- # of Pts on panel - 5998
- No shows – 2%
- On-time starts – 37%
- Days out for first 3 rd visit 2.00
- On-time starts – 37%
- Time by diagnosis – Chart D
- Days out by provider- see chart C
- Document delays – 12%
- Volume by hour – Chart E
EMR
MediTech
MediTech
Referrals
Check-out
patient
Walk to
hospital
Register for
Ancillary
Services
HOSPTIAL
Ancillary Services
Hospital
Registration
4.8 walk
or return
4.4
20.7
Rad
film
Interface
EMR
Referral
Coordinator
MD, PA
31.2
9.7
- Volume by Diagnosis – See chart B
EXTERNAL
PHARMACIES
- Days out by provider - See C
Reg Pkt
V2
- Satisfaction – overall 74.4
Visit Clinic
Phone call
Phone call
- Schedule on 1 st call – 0%
- Market share - Hospital 46.7%
e
Wait for
ex prov
to
return
info
Input
Med History
PATIENT
Phone call
EMR
rg
ha
Reception
Enterprise
Receive
Med History
& Call to
Schedule
sc
Di
Wait for
pt to
return
packet
Request
Med
History
records
PATIENT DATA
- Volumes - 131 visit/day
Discharge
Reception
Med
History
ge
Reg Pkt
V1
- Utilization 88%
- Available hours per day – 67
ha
r
Receive call
& Send
registration
packet
- Contact Hours 59/day
- Avg. Pts per hour - 1.83
Di
sc
Enterprise
- Blocked Hours – 67/day
- Cost per visit - $125.39
14.0
L/T
2.3
2.1
- Referral volume – 14.5 %
3.1
C/T
- Volumes by service – 13.0%
- Lead-time by service - varies
ROS
V2
Input Med
History
following
Check-in
Reception
- Document delays – 30%
LEGEND
= PTFP Scheduling
= Hospital Services
= OPC Scheduling
= Patient
= JMPG Scheduling
= Patient on schedule
= Clinic flow (all sites)
- Days out by provider – See Chart C
Days out for first 3 rd visit – 1.16
Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.
VSM Basics V7.6 - Slide 19
© 2012 Massachusetts Institute of Technology
Organization
Additional Graphic Elements
“Swim Lanes” organize tasks
by time and organization
Time
“Castle Wall” shows task and wait times
TT
WT
TT
WT
TT
WT
SUMS
WT
TT
Many ways to clarify the process
and present data in easy-to-understand form
Courtesy of Jefferson Healthcare, Port Townsend, WA. Used with Permission.
VSM Basics V7.6 - Slide 20
© 2012 Massachusetts Institute of Technology
More Information
Courtesy of Lean Enterprise Institute. Used with permission.
VSM Basics V7.6 - Slide 21
© 2012 Massachusetts Institute of Technology
Reading List
Jimmerson, C., Value Stream Mapping for Healthcare Made
Easy, Productivity Press, New York, NY, 2010
McManus, H., “Product Development Value Stream Mapping
(PDVSM Manual)”, Release 1.0, Sept 2005. Lean Advancement
Initiative.
Rother, M. and Shook, J. Learning to See, v1.2, The Lean
Enterprise Institute, Cambridge, MA June 1999
VSM Basics V7.6 - Slide 22
© 2012 Massachusetts Institute of Technology
Acknowledgements
Contributors
• Sharon Johnson – Worcester Polytechnic Inst.
• Jose Macedo – Cal Poly San Luis Obispo
• Hugh McManus – Metis Design
• Ted Mayeshiba – USC
• Earll Murman – MIT
VSM Basics V7.6 - Slide 23
© 2012 Massachusetts Institute of Technology
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