Value Stream Mapping Basics - MIT OpenCourseWare

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).


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

$

$


1- Take order

10 - Set up

2 In order


Customer Value Good food Faster service

8 - Add beverage


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%


Yes

8 - Add beverage

No – 10%

10 - Set up T = 48 sec Qual = 100%

2 In order T = 30 sec


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.


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.


• 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 = ___


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.

•


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?


Brainstorm Bursts $

$

11 - Clean up


1- Take order


8 - Add beverage

7 NVA Order Inspection OK

Yes

No

10 - Set up

2 In Order


Balance Work

?

4 - Put in bun, wrap, add fruit

6 Out Order Yes 5 NVA Another dog Inspection ? No


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


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


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


“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.


More Information

Courtesy of Lean Enterprise Institute. Used with permission.


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


Acknowledgements Contributors • Sharon Johnson – Worcester Polytechnic Inst. • Jose Macedo – Cal Poly San Luis Obispo • Hugh McManus – Metis Design • Ted Mayeshiba – USC • Earll Murman – MIT


MIT OpenCourseWare http://ocw.mit.edu

16.660J / ESD.62J / 16.853 Introduction to Lean Six Sigma Methods IAP 2012

For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms.

Value Stream Mapping Basics - MIT OpenCourseWare

Recommend Documents