Karen Martin, recognized expert on lean in office and administrative processes, shares instruction on applying value stream mapping to non-manufacturing organizations.
3. Value Stream Administrative & Office
Mapping’s Beginnings Environments
Learning to See, The Complete Lean Enterprise,
Mike Rother & John Shook Beau Keyte & Drew Locher
20. Current State Value Stream Map
Purchasing — Non-repetitive purchases less than $5,000
Inititate Req. 1
Originator
31
PT = 10 mins.
C&A = 10%
Supplies
Hard Copy
Vendor
Form File File Maker Quicken Excel ERP
Website
Data Entry
4 Enter 7 Approve in 8 Submit PO
Review 2 3 Review Review 5 Review 6 9 10
Review Req. 20 Reqs Requisition 10 Reqs ERP 63 Reqs to Supplier
Budget Requisition Requisition Requisition
External
Corp Purchasing Supplier
Sys Engineer Admin Asst Corp Purchasing
Finance Supervisor IS Manager Financial Mgr Manager
6 2 1 1 1 1 1
6
2 hrs. PT = 5 mins.
i 4 hrs. PT = 5 mins.
i 40 hrs. PT = 5 mins. 8 hrs. PT = 5 mins.
i 8 hrs. PT = 10 mins.
i 4 hrs. PT = 15 mins.
i 24 hrs. PT = 5 mins.
i 56 hrs. 80 hrs. PT = 20 mins.
i
PT = 15 mins.
C&A = 60% C&A = 95% C&A = 90% C&A = 100% C&A = 95% C&A = 98% C&A = 90%
C&A = 98%
0.25 days 0.5 days 5 days 1 days 1 days 0.5 days 3 days 7 days 10 days LT = 28.4 days
5 mins. 5 mins. 5 mins. 5 mins. 10 mins. 15 mins. 5 mins. 15 mins. PT = 65 mins.
AR = 0.477%
RFPY = 4.2%
PT = Process Time
LT = Lead Time
Customer Demand: C&A = % Complete & Accurate
615 requisitions per y ear AR = Activ ity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Y ield
21. Future State Value Stream Map
Purchasing — Non-repetitive purchases less than $5,000
Additional
IT access
Enter Req. 1
in ERP
Integrate Form Originator
File with File 31
Maker PT=30 mins.
C&A = 85%
Supplies
Requisition
Checklist
Vendor
File Maker ERP
Websites
Use budget in place
Cross of Quicken
Auto Notify
Training
Standard
Work for
review Approval
Additional
IT access Dedicated
Review Approve Place Buyers
2 3 4 5
Req. in ERP Order External
Supplier
Dept.
Dept
Supervisor Manager Corp Purchasing
2 6 hrs. 1 6 PT=20 mins.
8 hrs. 80 hrs.
4 hrs.
PT=5 mins. PT=5 mins. PT=20 mins.
C&A = 95% C&A = 90% C&A = 98%
0.5 days 0.75 days 1 days 10 days LT = 12.3 days
5 mins. 5 mins. 20 mins. PT = 30 mins.
AR = 0 508%
0.508%
RFPY = 71%
PT = Process Time
LT = Lead Time
Customer Demand: C&A = % Complete & Accurate
615 requistions per year AR = Activity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield
25. Basic Mapping Icons
External
Organization
Push Arrow
Operator / Employee
I
Work-in-Process Material receipts
& shipments
Process Block Go See Scheduling
Manual
PT= 25 m Information Flow
C/O=
C/O 40 m
In-box
2 Shifts
Takt= 60m Movement
Electronic
Data Block Information by Truck
y
Flow
Lead Time Hours Hours Hours
Process Time Minutes Minutes Minutes Minutes
Timeline
26. Current State Value Stream Map Demand = 15 per day
Outpatient Imaging Services
Customer Demand:
15patients perDay
(Takt Time1920seconds)
Pre-register Schedule 8 hours per day
Patient Appointment
Referring
Hospital
Physician
4 1
Lead Time = 24 days 5 3 Lead Time = 990 mins. 6 2 Lead Time = 12 mins.
Cycle Time = 30 mins. Cycle Time = 11 mins. % C&A = 65 %
Lead Time = 990 mins. Lead Time = 12 mins.
% C&A
%C&A = 100 % % C&A
%C&A = 98 %
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
Symposium E Pay Excel ADS Meditech Internet Fax Order PACS
Waiting Room Auto Fax 50%
Solutions
Management
M t Us Mail 25%
System
MD Mailbox 25%
Rework Loop
via Fax 25% of
the time
Prep Complete Transmit Read/Dictate Transcribe Review Print Send
Check-in Check-in
Patient Exam Images Exam Report Draft/Sign Reports Reports
Patient Patient
(Tech) (Tech) (Tech) (Radiologist) (MDI) (Radiologist) (Imaging) (Imaging)
(Admitting) (Imaging)
5 mins.
5
5 5 mins
mins.
3
6 45 mins. 2 7 30 mins.
2 8 5 mins.
2 9 248 mins.
2 10 365 mins.
6 11 960 mins.
2 12 110 mins.
2 13 120 mins.
6 14
Cycle Time = 2 mins. Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 15 mins. Cycle Time = 3 mins. Cycle Time = 15 mins. Cycle Time = 5 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins.
% C&A = 90 % % C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 75 % % C&A = 95 % % C&A = 99 % % C&A = 90 %
0.0833 hrs. 0.0833 hrs. 0.75 hrs. 0.5 hrs. 0.0833 hrs. 4.13 hrs. 6.08 hrs. 16 hrs. 1.83 hrs. 2 hrs. LT = 32.5 hrs.
2 mins. 1 mins. 10 mins. 15 mins. 3 mins. 15 mins. 5 mins. 1 mins. 1 mins. 3 mins. CT = 56 mins.
CT/LT Ratio = 2.87%
Rolled First Pass
yield = 29%
VSM Champion: Paul Scanner
Created: July 17, 2007
27. Future State Value Stream Map Demand = 15 per day
Outpatient Imaging Services
Standard Customer Demand:
Work Co-locate
Work 15 patients perDay
Balance (Takt Time1920 seconds)
Schedule appt
8 hours per day
Pre-register
Referring
Hospital
Physician
3 1
Lead Time = 15 days 6 2 Lead Time = 45 mins.
Cycle Time = 11 mins. % C&A = 85 %
Lead Time = 45 mins
mins.
% C&A = 98 %
Risk
Reduction
(Joint CT=Cycle Time
Commision) LT=Lead Time
%C&A=% Complete & Accurate
Symposium E Pay Excel Meditech Internet
Waiting Room
a g oo
Fax Order PACS Auto Fax 80%
Solutions
Management Us Mail 15%
System MD Mailbox 5%
Pull System Value Stream 5S Rework Loop
(Supplies Alignment via Fax 10% of
Kanban) the time
Remove
Check in
and Reduce Work Batch
System Access Balancing
B l i Visual Reductions
R d ti
Standard Workplace Voice
Work Set-up Continuous Recognition
Reduction Flow
Prep Complete Transmit Read/Dictate Review Print Send
Check-in
Patient Exam Images Exam Draft/Sign Reports Reports
Patient
(Tech) (Tech) (Tech) (Radiologist) (Radiologist) (Imaging) (Imaging)
(Imaging)
5 mins. 35 mins. 5 20 mins. 6 5 mins. 7 120 mins. 8 420 mins. 9 2 mins. 10 30 mins. 11
3 4 2 2 2 2 2 2 6
Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 10 mins. Cycle Time = 2 mins. Cycle Time = 15 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins.
% C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 95 % % C&A = 99 % % C&A = 90 %
0.0833 hrs. 0.583 hrs. 0.333 hrs. 0.0833 hrs. 2 hrs. 7 hrs. 0.0333 hrs. 0.5 hrs. LT = 11.3 hrs.
1 mins. 10 mins. 10 mins. 2 mins. 15 mins. 1 mins. 1 mins. 3 mins. CT = 43 mins.
CT/LT Ratio = 6.32%
Rolled First Pass
yield = 40%
VSM Champion: Paul Scanner
Created: July 18, 2007
29. Value Stream Mapping Process
Define
D fi Products (good or services) with
Product Family common process steps
Foundation (the basis) for the
F d ti (th b i ) f th
Document Current future state; 70-80% accurate is
State acceptable (directionally correct)
Create flow by eliminating waste
Design Future it is now obvious from your
3 Day
State current state map); typically 3-6
at
Repea
Event months out
Create Include accountability and
Implementation Plan timeframes for completion
ti f f l ti
Implement! The
Th goal of mapping!
l f i !
33. Value Stream Mapping Process
Define
D fi Products (good or services) with
Product Family common process steps
Foundation (the basis) for the
F d ti (th b i ) f th
Document Current future state; 70-80% accurate is
State acceptable (directionally correct)
Create flow by eliminating waste
Design Future it is now obvious from your
3 Day
State current state map); typically 3-6
at
Repea
Event months out
Create Include accountability and
Implementation Plan timeframes for completion
ti f f l ti
Implement! The
Th goal of mapping!
l f i !
37. Value Stream Mapping Charter
Event Scope Leadership / Coordination Schedule
Executive 3 days typically; sequential is
Value Stream Engineering design, ED patient flow , Credit processing, etc. VP or C-level Event Date(s)
Sponsor best
Specific What circumstances you're including and Value Stream If needed - often Director or Start/End
6 hrs minimum; 7 or 8 is best
Conditions excluding? Champion Manager level Times
Customer Demand How many times is this done per wk, mo, or yr.?
Facilitator Skilled person leading the activity Location Need ample wall space
Trigger What need does the value stream address?
First Step Task on first process block Meals Always a nice touch; keeps
Team Lead Not always needed
Last Step Task on last process block
p Provided? the team from wandering.
g
Boundaries & Interim Aid in consensus building and
What is the team NOT authorized to change? The person arranging logistics
Limitations Briefing(s) organizational learning.
Coordinator (reserving the room, ordering food,
FS Implementation sending meeting notices, etc.) Briefing List required attendees; others
Typically 90-120 days
Timeframe Attendees are optional
Event Drivers Mapping Team
1 Wh are you doing thi ?
Why d i this? Function Name Contact Information
2 1 Leadership-heavy
3 2
4 3
5 4
Goals & Measureable Objectives
j 5
1 Aim for objectives w/ measurable targets (from X to X). 6
2 7
3 8
4 9
5 10
Planned Deliverables On-Call
On Call Support
1 Current state VSM Function Name Contact Information
2 Future state VSM 1 SMEs that may not be needed full time
3 Implementation Plan 2
4 3
5 4
Potential Obstacles Approvals
1 To the team's success with the mapping activity. Executive Sponsor Value Stream Champion Facilitator
2
3 Signature: Signature: Signature:
Date: Date: Date:
4
37
39. Value Stream Mapping Process
Define
D fi Products (good or services) with
Product Family common process steps
Foundation (the basis) for the
F d ti (th b i ) f th
Document Current future state; 70-80% accurate is
State acceptable (directionally correct)
Create flow by eliminating waste
Design Future it is now obvious from your
3 Day
State current state map); typically 3-6
at
Repea
Event months out
Create Include accountability and
Implementation Plan timeframes for completion
ti f f l ti
Implement! The
Th goal of mapping!
l f i !
41. Order Initiation
Typical VSM Components - Current State Map
Demand = XXXX
Manufacturing
g May 8, 2008
Robert Parker
formation Flow
Production
SUPPLIER Control CUSTOMER
n
1
Inf ow
Process 1 I Process 2 I Process 3 I Process 4
roduct Flo
2
Pr
Hours Hours Hours Hours LT
Timeline
3 Minutes Minutes Minutes Minutes PT
42. Typical VSM Components - ABC Value Stream
Current State Map
Office / Service Demand = XXXX/yr
Date
Key Contact
formation Flow
CUSTOMER
n
1
I.T. I.T. I.T.
Inf ow
Process 1 Process 2 Process 3 Process 4
roduct Flo
2
Pr
Hours Hours Hours
LT
eline
3 Minutes Minutes Minutes Minutes PT
Time
44. Common Differences - Manufacturing vs. Office VSMs
Manufacturing Office
Customer icon Upper right Center
Supplier icon Upper left None
“The thing we’re
The thing” we re Raw material sub-
material, sub Paper, verbal,
Paper verbal and
following assemblies, finished goods electronic Information
More structured / Multiple I.T. systems and
Information Flow
y
formalized I.T. systems work-arounds
Schedule notification Multiple points across VSM Work not scheduled
Material flow (via
(
Yes
Y Sometimes
S ti
hollow arrow)
WIP icon Inventory triangle In-bin (if preferred)
Percent Complete &
Quality M t i
Q lit Metric First P
Fi t Pass Yield (FPY)
Yi ld
Accurate (%C&A)
Only applicable with
Takt Time Typically can be applied
dedicated resources
LT determination for Based on WIP between Based on a single item
each block process blocks passing through
54. Post-it Conventions
Process Block #
Process
(Verb/Noun)
( )
Function
# Staff
(if relevant)
Barriers to flow
PT (process time)
(p )
% Complete &
LT (Lead time)
Accurate
55. Depicting e-Information Flow
I.T. I.T.
Application Application
Arrow pointing to Two-headed arrow:
I.T.
I T application:
li ti Staff b th i
St ff both views and
d
Staff enters data enters data
Process Process
Block Block
I.T.
Application #1 I.T. #2 I.T.
Application Application
Arrow pointing from
I.T. application:
Staff views data Lightning bolt arrow:
Process
Block
Application #1 auto-populates
application #2
55