Value Stream Mapping and Analysis

Overview

As we have learned though our readings and discussions in this course, Lean is used to improve operations and processes in services, manufacturing, healthcare, government and other sectors of the economy.

A core tool in Lean is Value Stream Mapping. This tool helps us to visualize complex work systems (including material and information flows) so we can better address disconnects, redundancies, and gaps in how work gets done between the beginning and end of a process.

The primary type of value stream is one in which a product or service is requested by (and delivered to) an external customer. Examples include: request to receipt, order to delivery, and quote to cash.

Other value streams support the delivery of value, called value-enabling or support value streams. Examples include recruiting, onboarding, IT support, and annual budgeting.

Since it is nearly always a mistake to initiate changes without have a clear picture of how the system is currently functioning, we are beginning our Course Project with the creation and analysis of a Value Stream Map.

Instructions

For the Assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) selected does not need to be overly large or complex. Select something which has the potential for meaningful improvement, but which is manageable within the scope of this assignment.

1) Develop a current state Value Stream Map of your selected value stream. Show the customer demand rate (or Takt), information flow, work flow, and summary timeline on the map.

2) Document key metrics for each process block:

Process time (PT)

Lead time (LT)

Percent Complete and Accurate (%C&A)

Include any other appropriate metrics, such as number of operators, changeover time or setup time, batch size, and % uptime.

3) Calculate the current state summary metrics:

Total lead time (Total LT)

Total process time (Total PT)

Activity Ratio (AR)

Rolled Percent Complete and Accurate (Rolled %C&A)

4) Describe the current state of the value stream and highlight any performance deficiencies and challenges, such as delays, excessive WIP, bottlenecks, capacity and workload imbalances, rework, poor quality yields, long lead times, and other operational issues.