Value Stream Mapping For Office

Get Lean - Value Stream
Mapping for Office and Service

Karen Martin
Kim Scott
President
The Karen Martin Group, Inc.
iGrafx Senior Consultant,

Lean Six Sigma Black Belt
What will you learn?

Value Stream Mapping helps you
understand and improve your Office
and Service processes.
Digitalizing VSMs is easy and makes
sharing a snap.
Introducing Karen Martin
Founder: The Karen Martin Group, Inc. (1993)
Consultant / Coach: Lead Lean transformations

& develop people in office, service and
knowledge environments.
Teacher: University of California, San Diegos

Lean Enterprise program.
Author:
Winner - 2013
Shingo Research Prize
Introducing Karen Martin
www.ksmartin.com/subscribe
Value Stream Mappings Roots
Mike Rother & John Shook, 1999
Beau Keyte & Drew Locher, 2004
Whenever there is a product for a customer,

there is a value stream.
The challenge lies in seeing it.
Mike Rother & John Shook, Learning to See
5
Value Stream Defined

Value Stream: All of the activities, required to fulfill a
customer request from order to delivery (and beyond to
cash received).
Value Stream
Process
Process
Process
Custom er
Customer
Request
Customer
Receipt
The Work We Do:

Degrees of Granularity
Macro View
Strategic;
heavy leadership
involvement
Process
Value
Stream
Value Stream
Map
Process
Process
Step
Metrics-Based
Process Map
Micro View
Tactical; heavy
frontline
involvement
Step
Step
Office/Service Value Stream Examples:

By Industry
Repair/maintenance Customer request to revenue received

Financial services Mortgage application
Law Litigation value stream
Healthcare Patient care; revenue cycle
Technology Software development
Government Permitting
Construction Large equipment installation
Law enforcement Arrest processing
Engineering/architecture Design development
Oil & Gas Fossil fuel exploration & production
8
Support (Value-enabling) Value Streams
Estimating / RFQ response

Hiring Recruitment to 1st (or 90th) day
New product development
Business plan development
Annual sales meeting planning & execution
Contract development & execution
And more
Value Stream Mapping Benefit:

Seeing the Whole
60,000 foot view; Rooftop view

10
VSM Promotes Systems Thinking
System Efficiency =
Optimal Value Stream
Performance
Individual Efficiency =
Sub-optimization
11
Truth
How are we
really performing?
Truth
Truth
Truth
Truth
Truth
Truth
Whats our customer
really experiencing?
Truth
Truth
CLARITY
12
Value Stream Mapping:

As Much Art as Science
13
Create a Value Stream Storyboard with

Paper & Post-Its (Team-Based)
14
Basic Value Stream Map

ABC Technology, Inc.
Current State Value Stream Map
Softw are Upgrade Order Fulfillment
Customer Demand = 500/year
Custom er
Information
Flow
IT-1
IT-2
1
Process 1
Process 2
Process 3
Process 4
Dept B
Dept C
Dept D
5
Process 5
Dept E
Material &
Data Flow
Dept A
5
Timeline
45 pcs
10 pcs
LT = 1 days
PT = 10 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 75%
LT = 2 days
PT = 3 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 99%
LT = 1 days
PT = 15 mins.
%C&A = 95%
480 mins.
240 mins.
2 days
240 mins.
480 mins.
Total LT = 5 days
10 mins.
5 mins.
3 mins.
5 mins.
15 mins.
Total PT = 38 mins.
Activity Ratio = 1.6%
Rolled %C&A = 69.1%
Value Stream Mapping Charter

Event Scope
Leadership / Coordination
Value Stream Contract processing, rebate processing, etc.

Specific What circumstances you're including and
Conditions excluding? (type of cust, time of year, etc.)
Value Stream If needed - often Director or

Champion Manager level
Customer Demand How many times is this done per wk, qtr, mo, or yr.?
Start/End
6 hrs minimum; 7 or 8 is best
Times
Facilitator Skilled person leading the activity
Trigger What need does the value stream address?

First Step Task on first process block
Boundaries &
What is the team NOT authorized to change?
Limitations
The person arranging logistics

Coordinator (reserving the room, ordering food,
sending meeting notices, etc.)
FS Implementation
Typically 90-120 days
Timeframe
Event Drivers
Location Need ample wall space

Meals Always a nice touch; keeps
Provided? the team from wandering.
Team Lead Not always needed
Last Step Task on last process block
Interim Aid in consensus building and

Briefing(s) organizational learning.
Briefing List required attendees; others
Attendees are optional
Mapping Team
1 Why are you doing this? What are the current state issues?
Function
1 Leadership-heavy
Schedule
3 days typically; sequential is
Event Date(s)
best
Executive
VP or C-level
Sponsor
Name
Contact Information
Goals & Measureable Objectives
1 Aim for objectives w/ measurable targets (from X to X).
10
Planned Deliverables
On-Call Support
1 Current state VSM
Function
2 Future state VSM
1 SMEs that may not be needed full time
3 Implementation Plan
Name
Contact Information
Potential Obstacles
1 to the team's success with the mapping activity.
Approvals
Executive Sponsor
Value Stream Champion
Facilitator
2
3
4
Signature:
Date:
Signature:
Date:
Signature:
Date:
16
Value Stream Mapping Process

Define
Product Family
Document
Current State
Design
Future State
Create
Transformation Plan
Execute!
3 Day
Event
The Office Version of Product Families

Units
Domestic
Consumables
Service Parts
Warranty
Non-Warranty
Order
Fulfillment
Process
Units
International
Consumables
Warranty
Service Parts
Non-Warranty

Define
Product Family
Document
Current State
Design
Future State
Create
Transformation Plan
Execute!
3 Day
Event
Step 1 Define Process Blocks

Identify all process blocks in the value stream
(target 5-15 blocks)
Each process block (post-it) contains an activity or
group of activities that occurs before a significant
break in the timeline occurs (typically build up of WIP
or handoff to another function)
Activity format is verb/noun what happens to what
WALK THE VALUE STREAM!
20
Value Stream Mapping Components

Custom er
IT-1
IT-2
1
Process 1
Process 2
Process 3
Process 4
Dept B
Dept C
Dept D
5
Process 5
Dept E
`
Dept A
5
45 pcs
10 pcs
LT = 1 days
PT = 10 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 75%
LT = 2 days
PT = 3 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 99%
LT = 1 days
PT = 15 mins.
%C&A = 95%
480 mins.
240 mins.
2 days
240 mins.
480 mins.
Total LT = 5 days
10 mins.
5 mins.
3 mins.
5 mins.
15 mins.
Total PT = 38 mins.
Rolled %C&A = 69.1%
Step 2 Define I.T. Systems

Identify all I.T. systems used in the process
and information flow
Note any scheduling that occurs (calendar,
system, etc.)
Who tells whom to do what? How do they tell
them?
22

Custom er
IT-1
IT-2
1
Process 1
Process 2
Process 3
Process 4
Dept B
Dept C
Dept D
5
Process 5
Dept E
`
Dept A
5
45 pcs
10 pcs
LT = 1 days
PT = 10 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 75%
LT = 2 days
PT = 3 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 99%
LT = 1 days
PT = 15 mins.
%C&A = 95%
480 mins.
240 mins.
2 days
240 mins.
480 mins.
Total LT = 5 days
10 mins.
5 mins.
3 mins.
5 mins.
15 mins.
Total PT = 38 mins.
Rolled %C&A = 69.1%
Step 3 Add Data

Key metrics for all process blocks
Process Time (PT)
Lead Time (LT)
Percent Complete & Accurate (%C&A)
Work-in-process (WIP) at every step.

Significant barriers to flow (e.g. batching,
shared resources, system downtime, etc.)
24
Post-it Conventions
Block #
Process
(Verb/Noun)
Function
# Staff (if
relevant)
Significant
Barriers to Flow
Process Time
%C&A
Lead Time

Custom er
IT-1
IT-2
1
Process 1
Process 2
Process 3
Process 4
Dept B
Dept C
Dept D
5
Process 5
Dept E
`
Dept A
5
45 pcs
10 pcs
LT = 1 days
PT = 10 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 75%
LT = 2 days
PT = 3 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 99%
LT = 1 days
PT = 15 mins.
%C&A = 95%
480 mins.
240 mins.
2 days
240 mins.
480 mins.
Total LT = 5 days
10 mins.
5 mins.
3 mins.
5 mins.
15 mins.
Total PT = 38 mins.
Rolled %C&A = 69.1%
Key Metrics: Time

Scenario 1
Lead Time (LT)
Work
Received
Process Time (PT)
Work passed to
next step
LT = PT + Waiting / Delays
27
Key Metrics: Time

Scenario 2
Lead Time (LT)
Process Time
Work passed to
next step
Work
Received
LT = PT + Waiting / Delays
28
Key Metrics: Quality

%Complete and Accurate (%C&A)
% of incoming work thats usable as is: the
downstream customer can perform task
without having to do rework:
Correct information or material that was supplied
Add information that should have been supplied
Clarify information that should have or could have
been clearer
Determined by the person receiving the input;

metric goes on the output block.
29

Custom er
IT-1
IT-2
1
Process 1
Process 2
Process 3
Process 4
Dept B
Dept C
Dept D
5
Process 5
Dept E
`
Dept A
5
45 pcs
10 pcs
LT = 1 days
PT = 10 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 75%
LT = 2 days
PT = 3 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 99%
LT = 1 days
PT = 15 mins.
%C&A = 95%
480 mins.
240 mins.
2 days
240 mins.
480 mins.
Total LT = 5 days
10 mins.
5 mins.
3 mins.
5 mins.
15 mins.
Total PT = 38 mins.
Rolled %C&A = 69.1%
Step 4 Create Timeline
Create timeline
Calculate summary metrics
Timeline PT Sum
Timeline LT Sum
Activity Ratio (AR)
Rolled %C&A
31
Summary Metrics: Time

Activity Ratio
The percentage of time anything is being done
to the work passing through the system (whether
value-adding or non-value-adding)
(PT LT) 100
Common current state finding in office/service =
1-10% (across entire value stream)
32
Summary Metrics: Quality

Rolled % C&A
The percent of value stream output that passes
through the process clean, with no hiccups,
no rework required.
(%C&A x %C&A x %C&A) x 100
Common current state finding in office/service
= 0-15%
33

Custom er
IT-1
IT-2
1
Process 1
Process 2
Process 3
Process 4
Dept B
Dept C
Dept D
5
Process 5
Dept E
`
Dept A
5
45 pcs
10 pcs
LT = 1 days
PT = 10 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 75%
LT = 2 days
PT = 3 mins.
%C&A = 99%
LT = 0.5 days
PT = 5 mins.
%C&A = 99%
LT = 1 days
PT = 15 mins.
%C&A = 95%
480 mins.
240 mins.
2 days
240 mins.
480 mins.
Total LT = 5 days
10 mins.
5 mins.
3 mins.
5 mins.
15 mins.
Total PT = 38 mins.
Rolled %C&A = 69.1%

Outpatient Imaging Services
Pre-register
Patient
Customer Demand:
15 patients per Day
(Takt Time 1920 seconds)
8 hours per day
Schedule
Appointment
Referring
Physician
Hospital
Lead Time = 24 days
Lead Time = 990 mins.
Cycle Time = 30 mins.

% C&A = 100 %
Demand = 15 per day

% C&A = 98 %
% C&A = 65 %
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
Symposium
E Pay
Excel
ADS
Internet
Meditech
Fax Order
Solutions
Waiting Room
Management
System
PACS
Auto Fax 50%

Us Mail 25%
MD Mailbox 25%
Rework Loop
via Fax 25% of
the time
Check-in
Patient
(Admitting)
Prep
Patient
(Tech)
Check-in
Patient
(Imaging)
Complete
Exam
(Tech)
Transmit
Images
(Tech)
Read/Dictate
Exam
(Radiologist)
Transcribe
Report
(MDI)
Review
Draft/Sign
(Radiologist)
Print
Reports
(Imaging)
Send
Reports
(Imaging)
5 mins.
5
5 mins.

% C&A = 90 %
45 mins.

% C&A = 98 %
5 minutes
45 minutes
2 minutes
11520
minutes
1 minutes
30 mins.

% C&A = 100 %
30 minutes
10 minutes
5 mins.

% C&A = 90 %
5 minutes
15 minutes
248 mins.

% C&A = 100 %
10
248 minutes
3 minutes
365 mins.

% C&A = 95 %
11
365 minutes
15 minutes
960 mins.

% C&A = 75 %
12
960 minutes
5 minutes
110 mins.

% C&A = 95 %
13
110 minutes
1 minutes
120 mins.

% C&A = 99 %
14

% C&A = 90 %
120 minutes
1 minutes
L/T = 13464 minutes

3 minutes
VA/T = 11576 minutes
Rolled First Pass

yield = 29%
Outpatient Imaging Value Stream

Current State Findings
Metric
Current
State
Lead Time
32.5 hrs
Process Time
56 mins
Activity Ratio
2.9%
Rolled %C&A
29%
Projected
Future State
%
Improvement
36
Step 5 Determine VA & N Steps

Identify all value-adding (VA) and
necessary non-value-adding (N) steps
Add VA or N smaller post-it to relevant
process blocks
All unnecessary non-value-adding blocks
remain unlabelled
37
Customer-Defined Value
Value-Adding (VA) - any operation or activity
your external customers value, are (or would
be) willing to pay for, or its a requirement of
doing business with them.
Non-Value-Adding (NVA) - any operation or
activity that consumes time and/or resources but
does not add value to the product (good or
service) the customer receives.
Necessary support processes, regulatory
requirements, etc.; also referred to as essential or
value-enabling.
Unnecessary everything else - WASTE
38
Eight Wastes (Muda)
Overproduction Motion (people)

Inventory
Transportation
(material/data)
Waiting
Underutilized
Over-Processing
people
Errors
39
Typical Current State Findings

Unnecessary
NVA
Necessary NVA
Work is idle
Order
Delivery
Value Add
Islands of activity (process times) within long lead times.
40

Define
Product Family
Document
Current State
Design
Future State
Create
Transformation Plan
Execute!
3 Day
Event
Future State Design

Goal: Eliminate all redundancies and
barriers to flow (the work should never
stop)
Batches
Rework
Bottlenecks & WIP
Handoffs
Setup / changeover
Physical layout
Motion & transportation
42
Future State Value Stream Map Outpatient

Imaging Services
Standard
Work
Work
Balance
Customer Demand:
15 patients perDay
(Takt Time1920 seconds)
8 hours per day
Co-locate
Schedule appt
Pre-register
Referring
Physician
Hospital
3
Lead Time = 15 days
Demand = 15 per day

% C&A = 98 %
% C&A = 85 %
Risk
Reduction
(Joint
Commision)
Symposium
E Pay
Excel
Internet
Waiting Room
Management
System
Work
Balancing
Standard
Work
35 mins.

% C&A = 98 %
0.0833 hrs.
Complete
Exam
(Tech)
20 mins.

% C&A = 100 %
0.583 hrs.
1 mins.
Transmit
Images
(Tech)
5 mins.

% C&A = 90 %
0.333 hrs.
10 mins.
Visual
Workplace
Set-up
Reduction
Prep
Patient
(Tech)
Check-in
Patient
(Imaging)
Fax Order
Solutions
Auto Fax 80%

Us Mail 15%
MD Mailbox 5%
PACS
5S
Value Stream
Alignment
Pull System
(Supplies
Kanban)
Remove
Check in
and Reduce
System Access
5 mins.
Meditech
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
120 mins.

% C&A = 100 %
Review
Draft/Sign
(Radiologist)
420 mins.

% C&A = 95 %
2 hrs.
2 mins.
Batch
Reductions
Voice
Recognition
Read/Dictate
Exam
(Radiologist)
0.0833 hrs.
10 mins.
Continuous
Flow
Print
Reports
(Imaging)
2 mins.

% C&A = 95 %
7 hrs.
15 mins.
Rework Loop
via Fax 10% of
the time
30 mins.

% C&A = 99 %
0.0333 hrs.
1 mins.
10
Send
Reports
(Imaging)
0.5 hrs.
1 mins.
11

% C&A = 90 %
LT = 11.3 hrs.
3 mins.
CT = 43 mins.
CT/LT Ratio = 6.32%
Rolled First Pass
yield = 40%
Note: Process Time (PT) is referred to as

Cycle Time (CT) on this map
Outpatient Imaging Value Stream

Projected Future State Results
Current
State
Projected
Future State
%
Improvement
Lead Time
32.5 hrs
11.3 hrs
65%
Process Time
56 mins
43 mins
23%
Activity Ratio
2.9%
6.3%
117%
Rolled %C&A
29%
40%
38%
Metric
44

Define
Product Family
Document
Current State
Design
Future State
Create
Transformation Plan
Execute!
3 Day
Event
Future State Implementation Plan

Implementation Plan Review Dates
Value Stream Outpatient Imaging

Executive Sponsor Allen Ward
11/1/2007
Value Stream Champion Sally McKinsey
11/21/2007
Value Stream Mapping Facilitator Dave Parks
12/13/2007
Date Created 10/18/2007

Block
#
2
Goal / Objective
Improve quality of referral
Improvement Activity
Implement standard work for referral
process
Type
Owner
KE
Sean O'Ryan
PROJ
Dianne
Prichard
3, 4
Reduce lead time beween schedulingand

Cross-train and colocate work teams
preregistration steps
5, 6
Eliminate the need for two patient checkins
Collect copays in Imaging
KE
Michael
O'Shea
Eliminate bottleneck in waiting area
Balance work / level demand
KE
Dianne
Prichard
Eliminate lead time associated with

transcription step
Implement voice recognition technology
PROJ
Sam Parks
10
Eliminate batched reading
Reduce setup required
KE
Sam Parks
Reduce inventory costs, regulatory risk

and storage needs
5S CT supplies area; implement kanban
KE
Michael
O'Shea
12
Reduce delay in report delivery
Implement additional fax ports
PROJ
Martha Allen
12
Reduce delay in report delivery
Increase percentage of physicians

receiving electronic delivery (rather than
hard copy)
KE
Martha Allen
1/10/2008
Implementation Schedule (weeks)
2 3 4 5 6 7 8 9 10 11 12
Approvals
Executive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Signature:
Signature:
Signature:
Date:
Date:
Date:
Date
Complete

Define
Product Family
REPEAT
Document
Current State
Design
Future State
Create
Transformation Plan
Execute!
3 Day
Event
Common Differences - Manufacturing vs. Office VSMs

Manufacturing
Office
Upper right
Center
Upper left
None
The thing were following
Raw material, sub-assemblies,

finished goods
Paper, verbal, and electronic

Information
Information Flow
More structured / formalized I.T.

systems
Multiple I.T. systems and

work-arounds
Multiple points across VSM
Work not scheduled
Yes
Sometimes
Inventory triangle
In-bin (if preferred)
Based on the time to process all of

the accumulated WIP between
process blocks
Based on a single item passing

through the value stream
Cycle Time
Process Time
First Pass Yield (FPY)
Percent Complete & Accurate

(%C&A)
Typically can be applied
Applicable in areas with dedicated

resources
Customer icon
Supplier icon
Schedule notification
Material flow (via hollow
arrow)
WIP icon
LT determination for each
block
Hands-on time to do the
work
Quality Metric
Takt Time
How can we help?
Karen Martin, President

7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Twitter: @karenmartinopex
Blog & newsletter: www.ksmartin.com/subscribe
How can we help?

www.igrafx.com/lean
Custom Demonstration
Process Program Assessments
www.igrafx.com/contact
503-404-6050
Thanks!

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Get Lean - Value Stream

Mapping for Office and Service

iGrafx Senior Consultant,

What will you learn?

Introducing Karen Martin

Founder: The Karen Martin Group, Inc. (1993)

Consultant / Coach: Lead Lean transformations

Teacher: University of California, San Diegos

Introducing Karen Martin

Value Stream Mappings Roots

Mike Rother & John Shook, 1999

Beau Keyte & Drew Locher, 2004

Whenever there is a product for a customer,

Value Stream Defined

The Work We Do:

Office/Service Value Stream Examples:

Repair/maintenance Customer request to revenue received

Support (Value-enabling) Value Streams

Estimating / RFQ response

Value Stream Mapping Benefit:

60,000 foot view; Rooftop view

VSM Promotes Systems Thinking

Value Stream Mapping:

Create a Value Stream Storyboard with

Basic Value Stream Map

Value Stream Mapping Charter

Value Stream Contract processing, rebate processing, etc.

Value Stream If needed - often Director or

Facilitator Skilled person leading the activity

Trigger What need does the value stream address?

The person arranging logistics

Location Need ample wall space

Team Lead Not always needed

Last Step Task on last process block

Interim Aid in consensus building and

Goals & Measureable Objectives

1 Aim for objectives w/ measurable targets (from X to X).

1 Current state VSM

2 Future state VSM

1 SMEs that may not be needed full time

Value Stream Champion

Value Stream Mapping Process

The Office Version of Product Families

Value Stream Mapping Process

Step 1 Define Process Blocks

Value Stream Mapping Components

Step 2 Define I.T. Systems

Value Stream Mapping Components

Step 3 Add Data

Work-in-process (WIP) at every step.

Value Stream Mapping Components

Key Metrics: Time

Process Time (PT)

Key Metrics: Time

Key Metrics: Quality

Determined by the person receiving the input;

Value Stream Mapping Components

Step 4 Create Timeline

Summary Metrics: Time

Summary Metrics: Quality

Value Stream Mapping Components

Current State Value Stream Map

Lead Time = 24 days