Value Stream Mapping and

Project SelectionJOBSMATE.C

OM

JOBSMATE.COM

A Value Stream is the set of all actions (both value added and non value added) required to bring a specific product or

service from raw material through to the customer.

Value Added Activities:

A step or activity is considered “Value Added” if it meets all of the following criteria:

• Changes the Form, Fit or Function of the Product or Service.

• Adds something to the Product or Service that the Customer is willing to pay for.

• Does not cause a defect resulting in scrap or rework.

Three Insidious Wastes

How waste gets built into the process:• Muda – Non-Value Adding activities

• Overproduction (creating unneeded product)• Time spent by waiting for work

• Numerous hand-offs and movement of product• Over-processing (adding NVA work)• All inventory! (especially in process inventory or WIP)• Unnecessary travel and motion of employees• Defects in product

•Muri – Overburden of running a process too hard/fastMuri is generally a byproduct of poor process management. If the process is not capable, the result is overburden in an

attempt to “catch-up.”•Mura – External variability (usually in the marketplace).

Mura is a result poor product/process design. External variation is always present and our products must be designed to be robust against these fluctuations absorbing the variability and never causing customer impact.

JOBSMATE.COM

Using the Value Stream Mapping as an Improvement Tool

JOBSMATE.COM

The Continuous Improvement Principle

Once the Future State becomes the Current State – you do the Process again!

JOBSMATE.COM

Steps - Value Stream Mapping

• Walk the workplace (Gemba)

• Arrange to walk through the process with the owners ahead of time.

• Walk through the process from start to finish

FROM THE PERSPECTIVE OF THE ITEM BEING PROCESSED

• Observe, ask questions, get clarification, ask questions, take notes, ask questions, take pictures, record operator

comments, and ask questions.

THIS IS NOT A PASSIVE PROCESS

• Identify the time required to complete each step (estimates may initially suffice)

JOBSMATE.COM

• Using notes, recent observations, relevant documentation, and operator experience, create a pictorial

representation of the process (“Current State” value stream)• Create map on a white board or on paper (don’t use a computer yet)

• Record both material and information flow, connecting each step in the process

• Include all handoffs, “workaround” processes and decision points

• Record all versions of this flow (if there are several present)

Record what is actually being done, not what should be done

JOBSMATE.COM

Steps - Value Stream Mapping

• Review the Eight types of Muda

• Identify where these types of muda are present in your process map

• Identify the “Value Added” Steps in the process.

• Create a map of the process which eliminates much of the muda identified.(“Future State” value stream)

• Not all forms of Muda may be eliminated. Some is required. Our goal is to minimize the amounts in our

process.

• This future State may not represent the “Very Best” process possible, but an improved state which may be

attainable in the near future.(i.e. what must be done to convert the “Current State” to the “Future State”).

• Compare the “Current State” to the “Future State” process maps to identify “Gaps”(i.e. what must be

done to convert the “Current State” to the “Future State”).

• Identify and prioritize projects which will address the identified gaps

JOBSMATE.COM

Value Stream Map

JOBSMATE.COM

.

JOBSMATE.COM

Value Stream Map

JOBSMATE.COM

Muda

How waste gets built into the process

Muda - Non - value Adding Activities

• Overproduction (Creating unneeded product)

• Time spent by waiting for work

• Numerous hand offs and movement of product

• Over-processing (adding NVA work)

• All inventory! (especially in process inventory or WIP)

• Unnecessary travel and motion of employees

• Defects in product

• Intellectual waste

JOBSMATE.COM

Additional Points Regarding Value Stream Mapping

• The Map is just a picture of ideas!

• The Fundamental change is in how we choose to manage the value stream as an integrated system of

decisions and tasks.

• Continuously improving fundamentally flawed processes will yield limited results

• Simply automating existing manual processes can also yield limited results

• Seriously challenging old practices will provide the dramatic results desired.

JOBSMATE.COM

.

JOBSMATE.COM

.

JOBSMATE.COM

Project Selection

• Criteria for a Good Project

• Establishing Project Charter

• EStablishing Project Scope

JOBSMATE.COM

.

JOBSMATE.COM

Selection of Good Projects

• General Criteria

• Clear connection to business priorities

• Solution to problem of major importance to the organization

• Directly and overtly impacts the customers’ perception of WK Health

• Has a clear and quantifiable benefit both to the overall business and to the team who will be executing

the project.

• Reasonable scope – can be done in 3-6 months

• Does not have a readily known solution – i.e., if you know the solution, execute it now!

• Clear quantitative measures of success

• Support and approval of management

JOBSMATE.COM

Poor Project Selection

• Fuzzy Objectives

• Poor Metrics

• No tie to Financials

• Overly broad scope

• Lack of connection to strategic or annual plans

• Projects whose solution is already identified

• Projects with too many objectives

Choose Projects that have Impact not projects that “Seem like a Good idea.”JOBSMATE.COM

Key Project Success Criteria

• Selection of good Six Sigma Projects linked to bottom line results and aligned with Company goals.

• Entire team has both a passion for solving the problem and will directly and personally benefit (ie their

job will be easier, more secure, etc) from the solution of this issue.

• Assignment of top talent and Black Belts, team members, and Champions.

• Proper support (IT, Finance, HR, etc.)

• Regular, well-structured project reviews

• Clear project close -out criteria

JOBSMATE.COM

JOBSMATE.COM

Thank you!