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Value Stream Mapping
Webinar
March 27, 2014
Value Stream Mapping 
Case Studies
© 2014 The Karen Martin Group, Inc.
Welcome!
• Austria
• Australia
• Belgium
• Bolivia
• Brazil
• Botswana
• Canada
• Denm...
 Coach / Facilitator / Consultant / Trainer: 
Lean transformation & business performance 
improvement in all industries.
...
© 2014 The Karen Martin Group, Inc. 4
After the webinar…
• Recordings:
– www.ksmartin.com/webinars
– www.vimeo.com/karenma...
5
Wednesday, April 23, 2014 
11:00 am – Noon PT
Hosted by Gemba Academy 
http://www.gembaacademy.com/webinars
Value Stream...
© 2014 The Karen Martin Group, Inc. 6
May, June, July Webinars:
The Agenda is Yours!
• Refresher & current thinking on 
pr...
© 2014 The Karen Martin Group, Inc. 7
Share your learning needs & wants
at the end of today’s webinar
When you leave today...
© 2014 The Karen Martin Group, Inc. 8
You will learn…
• What the driver was for value stream 
improvement.
• What the plan...
© 2014 The Karen Martin Group, Inc. 9
To order from Amazon: www.bitly.com/VSMbk
For more information: www.ksmartin.com/VSM...
Prepare
Understand 
Current State
Design
Future State
Develop 
Transformation 
Plan
Execute 
Transformation 
Plan
Three Co...
© 2014 The Karen Martin Group, Inc. 11
www.ksmartin.com/VSM
Value Stream Defined
Value Stream: All of the activities required to
transform a customer request into a good or service.
...
Degrees of Granularity: 
Hiring Value Stream
Hire
Recruit Select Onboard
Write job 
description
Post externallyPost intern...
© 2014 The Karen Martin Group, Inc. 14
Value Stream Mapping Benefit:
Seeing the Whole
14
Value Stream Mapping enables a   ...
15
Value Stream Mapping: A Storyboard 
Visualize the flow of work on a single sheet of paper
© 2014 The Karen Martin Group...
© 2014 The Karen Martin Group, Inc. 16
Value Stream Map ≠ Process Flow Chart
Value Stream Map ≠ Swim Lane Process Map
Benefits
Administrator
Receive
negative
drug screen
results
Complete
“New Hire
Ap...
© 2014 The Karen Martin Group, Inc. 18
Value Stream Mapping Benefit:
Reaching Leadership Consensus
© 2014 The Karen Martin Group, Inc. 19
Why do organizations 
map their value streams?
• To provide greater customer value
...
Value Stream Mapping
Value Stream Mapping 
Case Study #1
© 2014 The Karen Martin Group, Inc. 21
Manufacturing: Quote to Cash
Why VSM?
• New General Manager who has 
extensive Lean...
Projected Results*
• Reduced lead time (PO to Ready‐to‐Ship) 
from 17 months to 7.5 months.
• Freed capacity: the equivale...
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Contact Information
Budget-to-actual expens...
© 2014 The Karen Martin Group, Inc. 24
Mid‐Mapping Charter Revisions
Improvement
Timeframe
Future state realized by Decemb...
© 2014 The Karen Martin Group, Inc. 25
3. Expanded scope to include receive cash. Modified 
definition of “shipped” to “re...
© 2014 The Karen Martin Group, Inc. 26
Current and Future State Maps
End‐of‐Day Briefing #2
J F M A M J J A S O N D
1 PROJ Joakim
2 PROJ Leia
3 KE Kellie
4 KE Joakim
5 PROJ Joakim
6 PROJ Ed
7 KE Sharon
8 PROJ Mark
...
© 2014 The Karen Martin Group, Inc. 29
Significant improvements
not reflected in kaizen bursts
• Better customer informati...
© 2014 The Karen Martin Group, Inc. 30
Defined Key Performance Indicators
• Total Lead Time (PO to Ready to Ship)
• % On‐t...
Value Stream Mapping
Value Stream Mapping 
Case Study #2
Healthcare: 
Outpatient Imaging Value Stream
• History
– Hospital lost 25% outpatient imaging business in 1
year. 
– Radio...
© 2014 The Karen Martin Group, Inc. 33
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Name...
Imaging
Inpatient
Outpatient
X‐Rays 
(15%)
MRI
(20%)
CT Scans
(30%)
Mammography
(25%)
Value Stream Scoping Diagram
Definin...
© 2014 The Karen Martin Group, Inc. 35
Outpatient Imaging Current State VSM
© 2014 The Karen Martin Group, Inc. 36
Current State Value Stream Map
Outpatient Imaging
© 2014 The Karen Martin Group, Inc. 37
Future State Value Stream Map
Outpatient Imaging
Imaging Value Stream Transformation –
Round #1 Results
Metric Before After
% 
Improvement
Timeline Lead Time 4.0 days 1.3 ...
© 2014 The Karen Martin Group, Inc. 39
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2 Improve quality of referral to 85% KE
Sean
Michaels 10...
Interesting Developments
• Worst LT problem was super easy to fix.
• During kanban and 5S work, team discovered 
$25,000K ...
© 2014 The Karen Martin Group, Inc. 41
Storage room was converted into a break room, boosting morale.
Miscellaneous Tips
• Team composition – Leaders; You may have 
to pay subcontractors
• Choosing when to go to the Gemba an...
Prioritization Grid
Creating the Transformation Plan
43
© 2014 The Karen Martin Group, Inc. 44
Questions?
• What tips and tricks do you have for 
ensuring that transformation eff...
© 2014 The Karen Martin Group, Inc. 45
Karen Martin, President
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm...
© 2014 The Karen Martin Group, Inc. 46
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Prochain SlideShare
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© 2014 The Karen Martin Group, Inc. 7 Share your learning needs & wants at the end of today’s webinar When you leave today’s webinar,  Value Stream Mapping: Case Studies

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© 2014 The Karen Martin Group, Inc. 7
Share your learning needs & wants
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  • nice share Karen,..i'm very interest about vsm. Have a projet to reduce lead time manufacturing at my company. succes for you..
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  • Hi Karen! I'm a finance analyst, officer in charge of human capital investments in a well known direct selling company in the Philippines. In scope of my work is people and the process. I am very pleased with all your webinars and resource materials. You have been very generous to have these materials to use. More power to your group! - Cherphil Ann Libunao, CPA (Philippines)
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