Professional Documents
Culture Documents
VSM - 2
VSM - 2
Solectron
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Preparation
Current State
Agreeing on a well understood map of the current situation. Agreeing on a shared vision of a Lean future state. Agreeing on how to implement the future state plan
Future State
Planning
Preparation
Current State
Future State
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Preparation
Current State
Future State
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Step 1
Corp. Finance
Feedback
Approval
Calculate allocations
manual
Upload to Oracle
Oracle
Final Review
Oracle 30
Make corrections
Day of lose
Fri
rocessing
minutes
20
240
300
30
Preparation
Current State
Future State
Step 3
Summary:
Wait Time
minutes
500
500
20
540
0 0 30
9 0
to + Fri - Mon
+3 We
+3 We
rocessing time
+3 We
+3 We
30
+ 3 to + 4 We -Thurs Total 0
Preparation
Current State
Future State
Step 5
S S F i
Corp. Fin n
SD l
&
p o
u o
&L
v nues
allocations
manual
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Preparation
Current State
Future State
Step 6
51
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9 9 B C0
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6. Capture the wait & process times, First Time Quality, & summary metrics here Su ry:
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manual
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Calculate
acle
COMDEF
manual
Oracle
Step 4
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Oracle
5. Identify what triggers that the process step can start and Fo at JE s Validate pload to Final Make how fo upload to accounts vs. information flows Oracle Review corrections
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Release final figures to Corp.
Oracle T t l 66 96
VSM Icons
Process Box RP Technology Used
IN
In Box (Queue) External Schedule or Event Movement by Push
Customer
Weekly Schedule
Reminder post-card
Supermarket
Withdrawal (Pull)
Monitoring
Iterations
Changeover
XOXO
FIFO
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Jacks Taxes
ack is a Licensed Accountant and maintains a practice in personal, self-employed and small business income tax preparation. ack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If ack can improve the process for self-employed clients, he could take on more work during that time of year. Generally, the sequence of events begins for each client sometime in late anuary with acks assistant, ohn, (1) sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. ack (2) sorts the receipts and documents, finding that most of the time, there is something missing. He notifies clients asking for missing documents. His next step is to (3) prepare worksheets for the client in the TS tax system. Once ack starts filling out the worksheets, he frequently needs to (4) confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions. Once ack has completed the worksheet, his assistant ohn actually (5) prepares the IRS forms. For self-employed clients, ohn waits until Thursday when he prints all returns that have accumulated during the week from the TS tax system. Of course, (6) ack must review and sign each return. Finally, ohn completes the process by packaging and (7) mailing the IRS forms with the necessary attachments to each client.
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Data Set
Tax Season: 8 weeks / 40 Self-Employed Clients (1) Send Reminder: ohn P/T = 10 min FTQ = 100% (2) Sort receipts & documents: ack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% (3) Prepare Worksheet: ack Technology used: TS P/T = 60 min W/T= 4 week wait to prepare worksheet FTQ = 95% (4) Confirm deductions: ack P/T = 10 min W/T = 1 week to complete confirmations FTQ = 50% (5) Prepare IRS tax forms: ohn Technology used: TS P/T = 15 min W/T = 1 week in inbox before form prep. FTQ = 98% (6) Review and sign forms: ack P/T = 15 min W/T = 1 day avg. in inbox before signing FTQ = 100% (7) Collate and mail forms to client: ohn P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100% KEY P/T = Process Time W/T = Wait Time FTQ = First Time Quality TS = Tax Software
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Preparation
Current State
Future State
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Preparation
Current State
Future State
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Send reminder
Sort receipts & IN documents ack 30 min 1 week 10% 30 min 1 week 4 week
Confirm deductions
Review & sign forms IN ack 15 min 1 day 100% 15 min 1 day 1 day
ail forms
Total Waiting Time = 7 weeks + 2 days Total Processing Time = 150 min FTQ=4.7% 57
Preparation
Current State
Future State
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Why?
Why?
issing Documents isplaced documents unlikely New Client unlikely
Why?
1 Document all potential root causes 2 Ask if any causes are more likely the root than another 3 Drill down by asking why on most likely root causes
When using 5 Whys? ask the following . . . Do you think this is the root cause? Should we ask why again? Does it matter any more?
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Now think about ways that you could eliminate the waste. Draw your solutions on the Current State map.
Preparation
Current State
Future State
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Preparation
Current State
Future State
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Takt Time = Available time / Customer Demand = 40 days / 40 Clients = 1 per day
Customer Demands:
Tax Forms completed accurately Finished before filing time
Send reminder
Sort receipts & IN documents ack 30 min 1 week 10% 30 min 1 week 4 week
Confirm deductions
Review & sign forms IN ack 15 min 1 day 100% 15 min 1 day 1 day
ail forms
Total Waiting Time = 7 weeks + 2 days Total Processing Time = 150 min FTQ=4.7% 63
Preparation
Current State
Future State
64
Takt Time = Available time / Customer Demand = 40 days / 40 Clients = 1 per day
Customer Demands:
40 clients Tax Forms completed accurately Finished before filling time
Send reminder
Sort receipts & IN documents ack 30 min 1 week 10% 30 min 1 week 4 week
Review & sign forms IN ack 15 min 1 day 100% 15 min 1 day
ail forms
CO BINE PROCESSES
Total Waiting Time = 7 weeks + 2 days Total Processing Time = 150 min
FTQ=4.7% 65
Preparation
Current State
Future State
66
Takt Time = Available time / Customer Demand = 40 days / 40 Clients = 1 per day
Customer Demands:
40 clients Tax Forms completed accurately Finished before filling time
Send reminder
Sort receipts & IN documents ack 30 min 1 week 10% 30 min 1 week 4 week
Review & sign forms IN ack 15 min 1 day 100% 15 min 1 day
ail forms
CO BINE PROCESSES
Total Waiting Time = 7 weeks + 2 days Total Processing Time = 150 min FTQ=4.7% 67
Preparation
Current State
Future State
68
Takt Time = Available time / Customer Demand = 40 days / 40 Clients = 1 per day
Customer Demands:
Tax Forms completed accurately Finished before filling time
Send reminder
Sort receipts & IN documents ack 30 min 1 week 10% 30 min 4 week
ail forms
CO BINE PROCESSES
1 week
1 week
Total Waiting Time = 7 weeks + 2 days Total Processing Time = 150 min FTQ=4.7% 69
Can you establish a rhythm to pace the work and eliminate problems?
Preparation
Current State
Future State
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Takt Time = Available time / Customer Demand = 40 days / 40 Clients = 1 per day
Customer Demands:
40 clients Tax Forms completed accurately Finished before filling time
Send reminder
Prepare worksheet TS
ail forms
ack ack 30 min XOXO 60 min P/T 1 week 4 weeks W/T 10% 95% FTQ 100% 30 min 60 min 10 min 1 4 week week
ohn 10 min
CO BINE PROCESSES
1 week
1 week
Total Waiting Time = 7 weeks + 2 days Total Processing Time = 150 min Total Lead Time = 2 days FTQ=4.7% FTQ ~ 100%
What process improvements are necessary to achieve the Future State Value-Stream?
Preparation
Current State
Future State
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Takt Time = Available time / Customer Demand = 40 days / 40 Clients = 1 per day
Customer Demands:
Client
40 clients
Send reminder
Prepare worksheet TS
ail forms
CO BINE PROCESSES
ack ohn 10 process time 15 min Reducemin 1 to 75 min week 1 week 50% 98% Standardize Work Total Waiting Time = 7 weeks + 2 days Total Processing Time = 150 min
Takt Time = Available time / Customer Demand = 40 days / 40 Clients = 1 per day
Client
40 clients 1 per day Over 8 weeks
Customer Demands:
Tax Forms completed accurately Finished before filing time
max 1 day Send reminder IN ohn 10 min 100% 10 min XOXO Data entry + print TS forms Check & FIFO sign forms
Reduce process time ohn to 75 min 75 min Standardize Work 100% 75 min 1 day
Total Waiting Time = 2 days Total Processing Time = 110 min FTQ ~ 100% 74
Reduced personal overtime ack does not stay late signing returns anymore. This new Future State now becomes the next Current State (continuous improvement). Next ack could investigate further leveling the work he receives in, filing electronically,
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easure
Preparation
Current State
Future State
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O O O
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Support:
Resp: Jack
Support:
||
Jack
Project Goal:
Implementation Objective
Preparation
Obtain higher margins via more corporate clients; retain current customer base.
Methods/Action Steps
Current State
OWNER TARGET
Future State
axe
Dec-04
imeline Jan-05
Feb-05
7 2 72 %
O j
77
| z
Next Steps
1. Identify opportunities that could benefit from a Value-Stream apping analysis 2. Get people into the VS 3. Complete some VS 4. Post results to training
activities
ySolectron
Preparation
Current State
Future State
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