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Global leaders in sleep and respiratory medicine1 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011

Value Stream Mapping (VSM)


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Global leaders in sleep and respiratory medicine

Our Aim Educate you in the use of Value Stream

Mapping to help identify & eliminate waste inyour organisations.

Continuous Improvement Introduction Toast Video (Part 1)

What is a VSM and why do them?

VSM Hands on exercise

Toast Video (Part 2)

Final Thoughts & Questions

2 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011

Agenda


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Continuous Improvement Tree


Solution is known

Problem is with cost / flow /inventory

Variety of simple tools

Dont know solution

Problem is with variation / Defects

Use DMAIC/DMADV to solve

Time frame 6 Months

Time frame 1-2 Months

Timeframe < 1 Week

Lean

Six Sigma

Just Do It (JDI)Savings

Savings

Savings


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What is Value?

Value is what thecustomer wants,when they want it and

in the expectedquantity and quality

Only a small fraction

of total time & effortin an organisation

actually adds valuefor the end customer



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What is Waste?


Waste = Any activity that absorbs resources but doesnt create value


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Examples of Waste

Over-Production Transportation

Waiting Over-Processing



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Examples of Waste

InventoryMotion

Defective Product Latent Talent

http://1.bp.blogspot.com/_eMKj04WreR0/ScjBldMpxPI/AAAAAAAAAJM/0T-W2E_DucI/s1600-h/LeanManufacturingAndHumanResource.jpg



What Is Flow?

The product must move along the process withoutinterruption

Constraints to flow Process silos - batch production

Bottlenecks in the process

Machine downtime and set-up time

Untidiness - no standardisation

Fire-fighting and expediting

Erratic fluctuations in demand

Unsynchronised activities




Key Improvement Principles

Understand & Specify value in the eyes of the. customer

Eliminate waste and variation

Make value flow at pull of the customer

Involve, Align & Empower Employees

Continuously improve knowledge in pursuitof perfection




Example of Improvement Tool:

Value Stream Map (VSM)

VSM




Toast Video(Part 1)




What is a Value Stream Map?

Value Stream = The entire set of activities required todesign, manufacture and deliver product to the customer.

Remember! Value is what the customer wants, when they wantit in the expected quantity and quality




Why do a Value Stream Map?

Purposes of a Value Stream Map

Helps you to visualise flow

Helps you see waste & sources of waste Provides a common language for evaluating processes

Focuses on customer requirements

Helps identify problems that have biggest impact

Significant Few vs Trivial Many

Forms the basis of an implementation plan

Without implemented actions - IT IS ALL WASTE!




6 Steps to Running Your Own VSM




Step 1 - Pre-work




Step 2 - Map Current State




Step 3 - Capture VSM Metrics




VSM Metrics

1. Process Time (P/T): Time spent actuallyperforming the work of the process (step),e.g., hands on time, touch time.

2. Lead Time (L/T): - The average time it takes

for one unit to go through the entire process- from start to finish. L/T = P/T + D/T.

3. Percent Complete & Accurate (%CA):Percentage of the time the target is hitcoming into a process (step) or flowing to thecustomer.

4. Who (W): Person or System responsible forthe process step.




Step 4 - Chunking




Step 5 - Action Plan & Future State



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&

Valuefrom the perspectiveof the customer

FlowNo waitingNo reworkInformation available

WorkStandardizedBuilt in quality

Managing, Improving& LearningMilestones and CheckpointsLearning embedded

What is a Lean Value Stream?


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Step 6 - Implementation


How to get the most out of your VSM?

Just do it! The best way to learn is by doing it, and its easy

See the back of your handout for resources to help you


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Toast Video

(Part 2)



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Questions?

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