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Welcome Value Stream Mapping

Session Goals
Provide an overview of Value Stream Mapping Demonstrate Value Stream Mapping as a tool to support Lean implementation. Provide an overview of Lean Principles.

Introduction
Name Current Position VSM Experience (if any)

What are the concepts of Lean?


The elements for Operating a Lean Facility Principles and Elements are Interdependent Develops lean thinking leaders to deliver lean business results
Short Lead Time Built-InQuality Continuous Improvement People Involvement Standardization

Standardization
3 Definition: Standardization is a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization. 3 Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve.

Standardization Elements
Management by Takt Time Workplace Organization Standardized Work Visual Management

Change

o us t u ntin emen Co o v r Imp

World Class

Standardization

Built In Quality
3 Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence. 3 Purpose: To ensure that defects are not passed to the customer.

Built-In Quality Elements


Product Quality Standards Manufacturing Process Validation In-Process Control & Verification Quality Feedback/Feedforward Quality System Management

The Built-In-Quality Motto

Satisfy your Customer. . .


Do not Accept Build Ship a Defect!

Solve problems through teamwork!

Short Lead Time


3 Definition: The movement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer. 3 Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty.

short lead-time

long lead-time

3 Short Lead Time Elements Small Lot Packaging Fixed Period Ordering System Controlled External Transportation Simple Process Flow Scheduled Shipping/Receiving

Temporary Material Storage Internal Pull/Delivery Level Vehicle Order Schedules Supply Chain Management

Continuous Improvement
3 Definition: A process based on standardization, whereby results are achieved, through a series of small improvements. 3 Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste. 3 Continuous Improvement Elements
Andon Concept Business Plan Deployment Total Maintenance System Lean Design of Facilities, Equipment, Tooling and Layout Continuous Improvement Process Early Mfg. Design Integration (DFM/DFA) Problem Solving

The Continuous Improvement Cycle


Improvement Standardization Improvement Standardization Improvement
Standardization Standardization

3The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented.

How Do We Expand VSM Throughout the Enterprise?


All the Principles and Elements apply, however, there is one big difference In the factory, the process itself is very visible making it easy to see, study and improve The processes in HR, Engineering, Purchasing, etc... are not as visible What we need is a tool that will help make the process more visible

Value Stream Mapping


A tool originally used by the Toyota Production System experts to study processes Developed and refined by John Shook and Mike Rother in Learning to See Used in manufacturing, engineering and administrative offices by lean experts to improve business processes

What is a Value Stream?


A value stream involves all the steps, both value added and non value added, required to complete a product or service from beginning to end

How Does Value Stream Mapping Fit With the Lean Journey
VSM is a tool used to support the implementation of lean strategies.

What Makes Value Stream Mapping Unique?


Visualizes the Process Flow from a systems perspective Focuses on the customer and the customers requirements Includes information flow and product movement Summarizes the timeline as it relates to delivery to the customer Documents performance characteristics of both the Value Stream and the individual process steps

Value Stream Map Elements


XYZ Org
Supplier Orders Internal Scheduling Customer Orders

Supplier Customer
Delivery Freq. Delivery Freq.

Process 1

Process 2

I
Inventory

Process Time Wait Time FTQ


Material Movement via PUSH

Process Time Wait Time FTQ Lead Time

Value Stream Maps


Enable a System View
Starts with a Focus on the Customer Links process steps and information flow Reveals problems with flow Documents performance of the process
Customer Expectations Process metrics Visibility of progress and quality

Reveals waste Establishes a common language Provides a blueprint for improvement Gets People involved in creating the future

VSM Analysis Data Attributes


Lead time =
Processing time + Wait Time / Delays

Typical batch size First-Time Quality


Reliability (e.g. system or equipment uptime)

Rework / revisions
% Complete and Accurate Inputs (% C&A) Design Changes Errors

Number of people involved


% utilization of people

VSM Case Study

Using the Value Stream Mapping Tool


Scoping the Value Stream

Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the enterprise.

Current state drawing

Future state drawing

Planning and Implementation

The goal of mapping!

Jack is a CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack 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 Jack 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 late January with Jacks assistant, John, 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. Jack sorts the receipts and documents, finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions. Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms. For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return. Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.

Jacks Taxes

Tax Season: 8 weeks 40 self-employed clients Send Reminder: John P/T = 10 min FTQ = 100%

Data Set
Print and Collate IRS tax forms: John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms: Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client: John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%

Sort receipts & documents: Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet: Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions: Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50%

Measurable Metrics & Performance


Metric SPQRC Current Estimate From Current State Map Target from Future State Map Actual (post implementation)

Process Time Lead Time First Time Quality Other(s)

12 hours (720 Min.) 6 8 weeks 100%

Typical Steps for Current State Mapping


Document customer information & need Identify main processes (in order) Select data attributes (Q,R,C - minimum) Perform value stream walk and fill in data boxes (how the process really works) Establish how each process knows what to process next (how work is prioritized) and document information flow Calculate process time, wait time, lead time, first time quality, and any other metrics necessary to evaluate your Value Stream

Icons
Process Box

MRP MRP
Technology Used

IN
In Box (Queue) Wait-Time

Customer

P/T W/T FTQ Data Box Conversation Information Flow Worker Weekly Schedule

Electronic Information Flow

Reminder post-card Movement of physical property

Withdrawal (Pull)
Movement by Push

Supermarket

Iterations

Changeover

Kaizen Lightning Burst

XOXO

Leveling, Mix and/or Volume

FIF O

First-In First-Out Flow

Draw the Current State

Jacks Taxes - Current State


Client Suppliers
40 clients

Customer

Start with Then Customer Suppliers

Jacks Taxes - Current State


Client
40 clients

Send reminder

Sort receipts & documents

Prepare worksheet TS

Process Steps?
Confirm deductions

Print & Collate TS forms

Review & sign forms

Mail forms

Jacks Taxes - Current State


Client
40 clients

st ts ts po en r en e m nd cu um mi Do e oc R d s& g ipt in e s is ec R m of ify ot N


m cu

rd ca -

en t

Ta xf or ms t

Clarify deductions

Send reminder

IN
1 week

Sort receipts & documents

IN
3 weeks

Process Data, Information Flow, & Prepare Confirm Print worksheet deductions Collate and ProcessINFlow forms TS TS
3 days

i ss ing

do

oc lie nt by 4

/10

IN
3 days

Review & sign forms

IN
1 day

Mail forms

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

Jack 30 min --10%

P/T W/T FTQ

Jack 60 min 1 week 95%

Jack
P/T 10 min W/T 1 week FTQ 50% P/T W/T FTQ

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

Jacks Taxes - Current State


Client
40 clients

st ts ts po en r en e m nd cu um mi Do e oc R d s& g ipt in e s is ec R m of ify ot N


m cu

rd ca -

en t

Ta xf or ms t

Clarify deductions

Send reminder

IN
1 week

Sort receipts & documents

IN
3 weeks

Prepare worksheet TS

i ss ing

do

oc lie nt by 4

/10

Total Leadtime and FTQ


Confirm deductions

IN

Print & Collate IN TS forms


3 days

Review & sign forms

IN
1 day

Mail forms

3 days P/T W/T FTQ

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

Jack 30 min --10%

Jack 60 min 1 week 95%

P/T W/T FTQ

P/T W/T FTQ

10 min ----100 % 1 week

30 min ---10 % 3 weeks X

60 min 1 week 95 % X

John Jack Total of P/T 15 min P/T 15 min W/T --= 140 minutes 100% Total of W/T --FTQ 98% Total Lead Time = 7wks, 2days Product of FTQ = 7 wks, 15 min 2 days, andmin 10 min 15 = 4.7% ---1 week 3 days 140----% 3 days 100 % X1 day min.X X 50 % 98 Jack 10 min 1 week 50%
P/T W/T FTQ

P/T W/T FTQ

John 10 min --100%


140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

10 min ---100 %

Total Lead Time:

Measurable Metrics & Performance


Metric SPQRC Current Estimate From Current State Map Target from Future State Map Actual (post implementation)

Process Time Lead Time First Time Quality Other(s)

720 Min. 6 8 weeks 100%

140 Min. 7 Weeks, 2 Days, 140 Min 4.7%

Jacks Taxes - Current State


Client
40 clients
ard ts ts st-c en o p en s um er c t um ind Do oc men em d R s& g cu ipt sin e do s c g mi Re in of ss y i ti f M No
Send reminder Sort receipts & documents Prepare worksheet

Clarify deductio ns

Ta x fo rms to

clie nt b y

4/1 0

Confirm deductions

IN

IN Jack 30 min --10%

TS

IN
3 days

Print & Collate TS forms

Review & sign forms

Mail forms

IN
3 days

IN
1 day

1 week P/T W/T FTQ

3 weeks P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

Jack 60 min 1 week 95%

P/T W/T FTQ

Jack 10 min 1 week 50%

P/T W/T FTQ

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

Waste
The elements of production that add no value to the product: waste only adds cost & time Points to Remember About Waste: It is important to consider waste in the context of the value that the process provides to the customer Waste is really a symptom of problems in the system. It shows where the problems are We need to find and address the causes of waste to improve the performance of the system

Waste in a Value Stream


Muri Waste of unreasonableness or overburden to a person or a machine Mura Waste of inconsistency; Waste of unevenness Muda The seven forms of waste (COMMWIP)

Shift Mindset

Producing reports that for CURRENT Processing excessive written REQUIRED Sending back forms are Keeping multiple not used, producing reports Delays of reports THINKING communicationinaccurate data THINKING incomplete orin getting copies to determine before they are needed needed issues requiring attention information, (mental processing) End of month deadline Processing Correction approvals, or causing overtime; all decisions projects scheduled in 1Q Over P C Inventory with none in 2nd Production

Unevenness

WASTE

I W

FORMS OF WASTE

Motion Waiting Searching for misplaced M items Employee assigned two Material Movement jobs due to understaffing

Filing documents that will never be used again


WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT

Unreasonable -ness

WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE CONTINUOUS IMPROVEMENT

Waste Exercise

Participants identify waste on current state maps.

Jacks Taxes - Current State


Client
rd -ca st ts ts po en r en e m m nd cu cu mi Do & Re do g ts n ei p si is ec R m of ify ot N

O C
M

40 clients

Clarify deductions

cu

en t

Ta xf or ms t

MM
Send reminder

W
IN

i ss ing

do

oc lie nt by 4

/10

W C
Confirm deductions

IN

1 week P/T W/T FTQ

Sort receipts & documents

3 weeks P/T W/T FTQ

Prepare worksheet TS

IN

3 days P/T W/T FTQ

Print & Collate IN TS forms

3 days

Review & sign forms

IN

1 day P/T W/T FTQ

Mail forms

John P/T 10 min W/T --FTQ 100%


P/T W/T FTQ 10 min ----100 % 1 week

Jack 30 min --10%

Jack 60 min 1 week 95%

P/T W/T FTQ

Jack 10 min 1 week 50%

John 15 min --98%

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%


140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

Lean Principle: Built-In-Quality


People Involvement Continuous Improvement Standardization

Short Lead Time

Built-In-Quality

Understanding Customer Requirements Right Product Right Price!! Right Time!

Built-In-Quality Product Quality Standards In-Process Control & Verification Quality Feedback/Feed Forward

Product Quality Standards Focus On The Customer


J.D. Power

Quality Standards must be easily understood by the Team members Quality Standards must be Clear and Unambiguous

In Process Control & Verification Quality Feedback / Feed Forward


Ability to signal for help when Sensing Abnormalities
Quality Must Be Assured In The Process Error Proofing In-Process Verification Feedback / Feed Forward

Lean Principle: Continuous Improvement


People Involvement Continuous Improvement Standardization

Short Lead Time

Built-In-Quality

Andon
ENABLERS
PROCESS NO.

Motion Correction Waiting

O.D. Reference 4

BENEFITS

Andon
ENABLERS
PROCESS NO.

54

Motion Correction Waiting

O.D. Reference 4

BENEFITS
Implement corrective action Quality in station Inspection and Feedback Open Communication Teamwork Improved Productivity

Andon
ENABLERS
Team System Team Leader Ratio Clear Standards Problem Solving Process Employee Training Standardized Work Mutual Trust/Respect Process Capability
1 2 4 3
PROCESS NO.

5 6

Motion Correction Waiting

O.D. Reference 4

BENEFITS
Implement corrective action Quality in station Inspection and Feedback Open Communication Teamwork Improved Productivity

Lean Principle: Short Lead Time


People Involvement Continuous Improvement Standardization

Short Lead Time

Built-In-Quality

Lean Principle: Short Lead Time (Just-in-Time Elements)


Simple Process Flow (Single Part Flow, Quick Set Up) Small Lot Packaging Level Order Schedules Pull Systems

Flow
All process steps occur in tight sequence (continuous flow), with little or no waiting?

Pull
Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.

O SCHEDULE ONLY 1 POINT WHERE YOU CAN, PULL WHERE YOU CANT
Schedule

Schedule

Supermarket

CONTINUOUS FLOW PROCESSING


Batch & Push Processing

21 minutes for first piece

Continuous Flow one

make one, move

3 Minutes for first piece 12 Minutes for total order

One Piece Flow - Order entry - Before

Open Mail

Batch Orders

Calculate Batch Total

Acknowledge Orders

Stack and Hold File Batch

Enter Batch

One Piece Flow - Order Entry After


Enter One Order

Open One Envelope

File Order

Acknowledge One Order

Leveling - Heijunka
Uneven customer demand creates a challenge Variation & fluctuation in volume (spiky customer demand) can lead to waste In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation

No Good
Production Schedule Monday.400 A Tuesday100 A, 300 B Wednesday..200 B, 200 C Thursday. .400 C Friday.200 C, 200 A

Leveling

Better: Every Part Every Day

Daily: 140 A, 100 B, 160 C

Even Better: Every Part Every Ship Window Monday


50 B, 70 A, 80 C 50 B, 70 A, 80 C

Why have small lots and leveling?


Small Lot Strategy
Shortens Cycle Time (The amount of time it takes to complete the task) Reduces Excess Inventory Improves Responsiveness

Production Leveling
Minimizes Stocks of Finished Products Reduces Fluctuations in Flow Balances Workload

Lean Principle: People Involvement


People Involvement Continuous Improvement Standardization

Short Lead Time

Built-In-Quality

Multifunctional Workers
Minimal (or no) Job Description Silos Rotate Jobs Perform Several Tasks Balance the Workload Standard Work

Lean Principle: Standardization


People Involvement Continuous Improvement Standardization

Short Lead Time

Built-In-Quality

Standardized Work
The best combination of people, equipment and material to meet customer demand. An agreed upon set of work procedures to establish the best sequence for each process. Start at a baseline and continuously improve

If there is no standard, If there is no standard, there is no improvement there is no improvement

Standardized Work
Standardized work is used when there is a definable, repeatable process.
Production Materials Office

Everyone can perform standardized work

Standardized work yields:


Shorter lead time Reduced work-in-process Reduced wait time More flexibility, less waste Ability to identify and fix problems Reduced handling Better response to customer demand Balanced workload

TAKT TIME Component of Standardized Work


Synchronizes Pace of Production to Match Pace of Demand Rate for producing a product, and its components, based on rate of delivery.
Available Time Takt Time = Customer Requirement / Demand

Lean Principle: Continuous Improvement


People Involvement Continuous Improvement Standardization

Short Lead Time

Built-In-Quality

Continuous Improvement
Everything Can Be Improved. Problems Are Opportunities. No Problem is a Problem. Workers Ideas Are a Source of Improvement Continuous Improvement (Kaizen) Teams Problem Solving Job Rotation Total Productive Maint. Suggestion Program Steps to Improvement Improve, Standardize, Stabilize and Repeat.

The Continuous Improvement Cycle


Improvement Standardization Improvement Standardization Improvement
Standardization Standardization

Continuous Improvement
Standardized Work contributes to continuous improvement by:
Documenting the current best practice that provides a base from which to improve Creating the stability necessary to make changes Providing the tools to make waste highly visible

Lean Principle: Standardization


People Involvement Continuous Improvement Standardization

Short Lead Time

Built-In-Quality

Workplace Management

Grasp the Situation


Workplace Organization - 5S Process Standardized Work Visual Management

Workplace Management
Repeat
Add Valueadded Work; Standardize

Grasp Current Situation

Continuous Improvement to Eliminate Waste

Visual Management
Where you have problem points in the flow

Process Step 1

Process Step 2

Process Step 3

Process Step 4

Set up checks for Quality, Timing, Output Make Progress and Problems Visible

E-Toyota Application of Heijunka Box

Takt Time Bar Chart


30 25

20

(Sec) 15

10

0 Stamping Body Paint Departments Trim Shipping

Future State Questions Relating to Improving Delivery and Flow


What are the customer requirements? Where and how will you trigger and sequence work? How will you make work flow smoothly? How will you establish rhythm to pace the work and surface problems? How will you make the progress and delays of the work visible? What process improvements are necessary to achieve your Value Stream vision?

Future State Mapping

Using the Value Stream Mapping Tool


Scoping the Value Stream

Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state.

Current State drawing

Future State drawing

Designing a lean flow through the application of Lean principles


The goal of mapping!

Planning and Implementation

Future State Questions Relating to Improving Delivery and Flow


What are the customer requirements? Where and how will you trigger and sequence work? How will you make work flow smoothly? How will you establish rhythm to pace the work and surface problems? How will you make the progress and delays of the work visible? What process improvements are necessary to achieve your Value Stream vision?

Customer requirements? Work flow smoothly? Trigger & sequence work?

er tom ve s Cu enti Inc


Ac co Fi rdio le n

Jacks Taxes - Current State


Client
40 clients
Ta x fo rms to

Rhythm (leveling)?
Progress & delays visible? Process improvements?

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

Send reminder

ard ts ts st-c en o p en s um er c t um ind Do oc men em d R s& g cu ipt sin e do s c Stand. mi ng Re of si Work is ify M ot N Sort XOXO Prepare Confirm

Clarify deductio ns

clie nt b y

4/1 0

IN

receipts & documents

worksheet

deductions

IN Jack P/T 30 min W/T --FTQ 10%

TS

IN

Print & Collate TS forms

FIFO IN
3 days

Review & sign forms

Mail forms

IN
1 day

1 week

3 weeks

COMBINE PROCESSES 3 days


P/T W/T FTQ

John P/T 10 min W/T --FTQ 100%

Jack John Jack P/T 60 min P/T 10 min W/T 1 week W/T 1 week FTQ 95% FTQ 50%

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

er tom ve s Cu enti Inc


Ac co Fi rdio le n

Jacks Taxes - Current State


Client
40 clients
Ta x fo rms to

Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)?

Progress & delays visible?


Process improvements?

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

Send reminder

ard ts ts st-c en o p en s um er c t um ind Do oc men em d R s& g cu ipt sin e do s c Stand. mi ng Re of si Work is ify M ot N Sort XOXO Prepare Confirm

Clarify deductio ns

clie nt b y

4/1 0

IN

receipts & documents

worksheet

deductions

IN Jack P/T 30 min W/T --FTQ 10%

TS

IN

Print & Collate TS forms

FIFO IN
3 days

Review & sign forms

Mail forms

IN
1 day

1 week

3 weeks

COMBINE PROCESSES 3 days


P/T W/T FTQ

John P/T 10 min W/T --FTQ 100%

Jack John Jack P/T 60 min P/T 10 min W/T 1 week W/T 1 week FTQ 95% FTQ 50%

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

er tom ve s Cu enti Inc


Ac co Fi rdio le n

Jacks Taxes - Current State


Client
40 clients
Ta x fo rms to

Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible?

Process improvements?

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

Send reminder

ard ts ts st-c en o p en s um er c t um ind Do oc men em d R s& g cu ipt sin e do s c Stand. mi ng Re of si Work is ify M ot N Sort XOXO Prepare Confirm

Clarify deductio ns

clie nt b y

4/1 0

IN

receipts & documents

worksheet

deductions

IN Jack P/T 30 min Data entry W/T --Worksheet FTQ 10% training

TS

IN

Print & Collate TS forms

FIFO IN
3 days

Review & sign forms

Mail forms

IN
1 day

1 week

3 weeks

COMBINE PROCESSES 3 days

John P/T 10 min W/T --FTQ 100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 10 %

Jack John Jack John P/T 60 min P/T 10 min P/T 15 min W/T 1 week W/T 1 week W/T --FTQ 95% FTQ 50% FTQ 98% Reduce process time to 75 min Standardize Work 15 min 60 min 10 min
1 week 50 % 3 days 98 %

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

15 min 3 days 100 % 1 day

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

3 Individual weeks 1 week 1040, 1040EZ 95 % training

Customer Requirements:
Tax Forms completed accurately Finished before filling time Lowest possible cost

Jacks Taxes Future State Client

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

ile nF o rdi co le Ac Fi & n t lis dio ck or e c Ch Ac te ple m Co

40 clients 1 per day Over 8 weeks

fo rm st

cli en t

max 1 day FIFO Check & sign forms Jack


P/T 15 min W/T 1 day FTQ 100% 15 min 1 day

max 1 day Mail forms IN John 10 min 1 day 100%


100 min 2 days 100 % 98 % 2 days, 100 min

Send Reminder IN John


P/T 10 min W/T FTQ 100% P/T W/T FTQ 100 % 10 min

XOXO

Data entry + print FS forms


P/T W/T FTQ

John 75 min 98%

P/T W/T FTQ

75 min

10 min 1 day

98 %

100 %

Measurable Metrics & Performance


Metric SPQRC Current Estimate From Current State Map Target from Future State Map 100 Min. 100 Actual (post implementation)

Process Time Lead Time First Time Quality Other(s)

720 Min. 6 8 weeks 100%

140 Min.

7 Weeks, 2 2 Days, Days, 140 Min Min. 4.7% 98%

Summary of Results Potential Impact


Reduced PT 40 mins (29%) Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time. FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity. Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster. Moved 70 mins of Jacks high priced time over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients. Reduced personal overtime Jack does not stay late signing returns anymore. This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically,

Implementation Planning

Using the Value Stream Mapping Tool


Scoping the Value Stream

Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles The goal of mapping!

Current State drawing

Future State drawing

Planning and Implementation

Current Current State State

Changes

Future State

The specific changes (Kaizen Bursts) needed to move from CS to FS are your Objectives The Methods / Action Steps are how you will get there

Business Plan Deployment (BPD) is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change

BPD Elements
s ie w Re v
Concrete

GOALS

o Co at in rd

te

nt
Specific

si s

OBJECTIVES

io

Co n

nd

Re gu la

ra

Clear & Measurable

TARGETS

METHOD

to reach the targets / GAP CLOSURE PLAN and Strategies

Common Measurements

Business Plan Deployment Is a PDCA Cycle


4 Act (Standardized & Countermeasures)
Problem Description

1
Tasks

Plan
Plant Master Plan

Direct Cause Why? Cause Why? Why? Cause Why? Cause Why? Root Cause

Act Check

Plan
2

Check

Do

Do (Communicate & Implement)


Annual Business Plan

A c ti o n

Scorecard

Leaderships Role
Plan

Act

TEACH!

Do

Check

Wrap-Up

Wrap-up
What did you learn today? Did the program meet your expectations? How can we improve this learning event?

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