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 People
a Lean Facility Involvement
Continuous
Improvement Standardization
• Principles and Elements are
Interdependent

• Develops lean thinking

leaders to deliver lean
business results
Short
Lead Time Built-In-
Quality
 Standardization
 Definition: Standardization is a dynamic process by which we set
standards of terminology, principles, methods, and processes within our
organization.
 Purpose: The purpose of standardization is to stabilize, so as to achieve
a base from which to grow and improve.

World
Class
 Standardization Elements
 Management by Takt Time Change
 Workplace Organization
 Standardized Work
 Visual Management
Standardization
 Built In Quality

 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.
 Purpose: To ensure that defects are not passed to the customer.

The Built-In-Quality Motto

 Built-In Quality Elements
Satisfy your Customer. . .
 Product Quality Standards
 Manufacturing Process Validation Accept
 In-Process Control & Verification Do not Build a Defect!
 Quality Feedback/Feedforward Ship
 Quality System Management
Solve problems through teamwork!
 Short Lead Time

 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.
 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

 Short Lead Time Elements

long lead-time

 Small Lot Packaging  Temporary Material Storage

 Fixed Period Ordering System  Internal Pull/Delivery
 Controlled External Transportation  Level Vehicle Order Schedules
 Simple Process Flow  Supply Chain Management
 Scheduled Shipping/Receiving
 Continuous Improvement
 Definition: A process based on standardization, whereby results are
achieved, through a series of small improvements.
 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.

 Continuous Improvement The Continuous Improvement Cycle

Elements Improvement
Improvement

Standardization

Andon Concept Improvement Standardization

 Business Plan Deployment

Standardization


Standardization

Total Maintenance System

 Lean Design of Facilities,
Equipment, Tooling and Layout
 Continuous Improvement Process
 Early Mfg. Design Integration
(DFM/DFA)
 Problem Solving
The 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 customer’s
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
Customer Orders
Supplier Orders
Internal
Scheduling

Supplier
Customer
Delivery
Freq.
Delivery
Freq.

Process 1 I Process 2 I
I
Inventory Process Time Process Time
Wait Time Wait Time
Material
FTQ Movement FTQ Lead Time
via PUSH
 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 Determine the Value
Value Stream Stream to be improved

Understanding how things

Current state currently operate. This is
drawing
the foundation for the
future state.
Future state Designing a lean flow through
drawing
the enterprise.

Planning and The goal of mapping!

Implementation
 Mr Singh’sTaxes
Mr Singh maintains a practice in personal, self-employed and small business income tax
preparation. Mr Singh would like to take on more corporate clients because of the higher fees
he could charge them. However, during the tax season, self-employed returns require long
hours because of the frequent waits, delays and errors. If Mr Singh 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 in April, with Mr
Singh’s assistant, Kapoor, sending a reminder to clients to submit their records as soon as
possible. Then, sometime before the first of July, the client is required to bring in all
necessary forms and receipts. Regular clients drop off or send their box of receipts and tax
forms from various income sources. Mr Singh 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 Mr Singh 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 Mr Singh has completed the worksheet, his assistant Kapoor actually prints and collates
the Income Tax forms. For self-employed clients, Kapoor waits until Thursday when he prints
all returns that have accumulated during the week from the TS system. Of course, Mr Singh
must review and sign each return. Finally, Kapoor completes the process by packaging and
mailing the Income Tax forms with the necessary attachments to each client.
Tax Season: 8 weeks
40 self-employed clients
Data Sheet
Send Reminder: Kapoor Print and Collate I Tax forms: Kapoor
P/T = 10 min Technology used: Tax Software (TS)
FTQ = 100% P/T = 15 min
W/T = 1 – 5 days in inbox before form prep
Sort receipts & documents: Mr Singh (3 day average)
P/T = 30 min FTQ = 98%
W/T = 1 week in inbox before sorting
FTQ = 10% Review and sign forms: Mr Singh
P/T = 15 min
Prepare Worksheet: Mr Singh W/T = 3 days in inbox before signing
Technology used: Tax Software (TS) FTQ = 100%
P/T = 60 min
W/T = 3 weeks in the inbox waiting to Mail forms to client: Kapoor
prepare worksheet P/T = 10 min
W/T = 1 week due to interruptions W/T = 1 day accumulation before collation
FTQ = 95% and mailing
FTQ = 100%
Confirm deductions: Mr Singh
P/T = 10 min
W/T = 1 week due to phone tag
FTQ = 50%
 Measurable Metrics & Performance
Metric Current From Current Target from Actual
Estimate State Map Future State (post
Map implementation)

Process 12 hours
Time (720 Min.)
Lead
Time 6 – 8 weeks
First
Time 100%
Quality

Other(s)
 Typical Steps for Current State Mapping
• Document customer information & need
• Identify main processes (in order)
• Select data attributes (Quality, Time, Changeover)
• 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

IN
Customer
MRP
MRP

In Box
Technology Used Wait-Time
(Queue)

P/T Electronic Information Flow

W/T Conversation Information Flow
FTQ
Worker Reminder post-card
Data Box Weekly
Schedule Movement of “physical” property

Withdrawal (Pull) Supermarket Iterations

Movement by Push

Kaizen
Changeover XOXO Leveling, Mix First-In
FIFO
Lightning and/or First-Out
Burst Volume Flow
Draw the Current State
 Mr Singh’s Taxes - Current State
Client
Suppliers 40 clients Customer

Start with
Then
Customer
Suppliers
 Mr Singh’s Taxes - Current State
Client
40 clients

Process
Steps?
Send Sort Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
documents
TS TS forms
 Mr Singh’s Taxes - Current State
Client
40 clients

Process Data,
Information Flow,
and Process Flow
Send Sort Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
IN documents IN IN IN IN
TS TS forms
1 week 3 weeks 3 days 3 days 1 day

Singh Singh Singh Singh Kapoor Singh Kapoor

P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%
 Mr Singh’s Taxes - Current State
Client
40 clients

Total Lead Time

Send
reminder
IN
Sort
receipts &
documents IN
Prepare
worksheet
and FTQ Confirm
deductions
IN
Print &
Collate
IN
Review &
sign forms
IN
Mail
forms
TS TS forms
1 week 3 weeks 3 days 3 days 1 day

John
P/T 10 min P/T
Jack
30 min P/T
Jack
60 min P/T
Jack
10 min Total
P/T
John
15 min of P/T Jack
P/T 15 min
John
P/T 10 min
---
=Total
140 minutes
of W/T
W/T --- W/T W/T 1 week W/T 1 week W/T --- W/T --- W/T ---

Total Lead Time

FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

=Product
7wks, 2days of FTQ
= 7 wks, 2 days, and
---- = 4.7%
P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T
FTQ
-----
100 %
1 week ----
10 %
3 weeks
X
1 week
95 % X
1 week
50 % X
140
3 days
min.
98 %
3 days
X
----
100 % X
1 day ----
100 %
7 wks, 2 days
4.7 %
7 wks, 2 days,
Total Lead Time:
140 min
 Measurable Metrics & Performance
Metric Current From Current Target from Actual
Estimate State Map Future State (post
Map implementation)

Process
Time 720 Min. 140 Min.

Lead 7 Weeks, 2
6 – 8 weeks
Time Days, 140 Min
First
Time 100% 4.7%
Quality

Other(s)
 Mr Singh’s Taxes - Current State
Client

40 clients

Send Sort Prepare Confirm Print & Review & Mail

reminder receipts & worksheet deductions Collate sign forms forms
IN documents IN IN IN
TS TS forms
IN
1 week 3 weeks 3 days 3 days 1 day
Kapoor Singh Singh Singh Kapoor Singh Kapoor
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %
7 wks, 2 days,
Total Lead Time:
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
(DOWNTIME)
 Shift Mindset Unevenness
Producing
CURRENT Processing
Sending reports
excessive
back
Keeping thatwritten
forms
multipleare
fornot REQUIRED
used, producing
Delays
THINKING communication
incomplete
copies orin reportsdata
togetting
determine
inaccurate
of reports THINKING
before
issues they areattention
needed
requiring needed
information,
(mental processing) End of month deadline
approvals, or Processing Defect
causing overtime; all
E Dndin 1QOver
decisions
projects scheduled
with none in 2

WASTE
Inventory Production

I FORMS O
OF

W M
WASTE

Searching for misplaced

Waiting T Motion
items
Employee assigned
Material two
jobs due toTransportation
understaffing

Filing documents that will Unreasonable

-ness
never be used again

WASTE NOT DEFINED WASTE IS "TANGIBLE"

REACT TO LARGE EXAMPLES IDENTIFY MANY SMALL OPPORTUNITIES
REACTIVE IMPROVEMENT LEADS TO LARGE OVERALL CHANGE
CONTINUOUS IMPROVEMENT
 Waste Exercise

Participants identify waste on

current state maps.
 Mr Singh’s Taxes - Current State
Client

O
40 clients

D
D
D W W D
T
Sort

E I E I E I I I
Send Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
IN documents IN IN IN IN
TS TS forms
1 week 3 weeks 3 days 3 days 1 day

John Jack Jack Jack John Jack John

P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T ----- 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %
7 wks, 2 days,
Total Lead Time:
140 min
Lean Principle: Built-In-Quality

People
Involvement
Continuous
Improvement Standardization

Short
Lead Time Built-In-Quality
Understanding Customer Requirements

Right
Right Time!
Product

Right Price!!
 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 3
PROCESS NO.
1 2 4 5 6 3
Motion
Correction
Waiting

O.D. Reference 4

BENEFITS
 Andon

ENABLERS PROCESS NO.

1 2 3 54 5 6 3
Motion
Correction
Waiting

O.D. Reference 4

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

ENABLERS 4
3 4 5 6
PROCESS NO.
1 2
•Team System 3

•Team Leader Ratio

Motion
•Clear Standards Correction
•Problem Solving Process Waiting
•Employee Training
•Standardized Work
•Mutual Trust/Respect
•Process Capability
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.
TRY TO SCHEDULE ONLY 1 POINT
FLOW WHERE YOU CAN, PULL WHERE YOU CAN’T
Schedule

Schedule

Supermarket
 CONTINUOUS FLOW PROCESSING
• Batch & Queue Processing
Process Process Process
A B C

10 minutes 10 minutes
10 minutes

Lead Time: 30+ minutes for total order

21+ minutes for first piece

• Continuous Flow Processing

Process Process Process

A B C

12 min. for total order

3 min. for first part
 One Piece Flow - Order entry - Before

Batch
Open Orders Calculate Batch
Mail
Total

Stack and
Hold Enter
Acknowledge
Batch
Orders
File
Batch
One Piece Flow - Order Entry – After

Enter
One
Open One Order
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 Leveling
Monday…….400 A
Tuesday……100 A, 300 B
Wednesday..200 B, 200 C
Thursday…. .400 C
Friday……….200 C, 200 A
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
If there is no standard,
continuously improve 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.
• Worker’s Ideas Are a Source
of Improvement The Continuous Improvement Cycle
– Continuous Improvement Improvement
(Kaizen) Teams Improvement Standardization

Improvement
– Problem Solving
Standardization
Standardization

– Job Rotation
Standardization

– Total Productive Maint.

– Suggestion Program
• Steps to Improvement
– Improve, Standardize,
Stabilize and Repeat.
 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 Value-
added Work;
Standardize

Grasp
Current Continuous Improvement
Situation to Eliminate
Waste
 Visual Management

Where you have problem points in the flow…

Process Process Process Process

Step 1 Step 2 Step 3 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 Trim Shipping
Departments
 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 Determine the Value
Value Stream Stream to be improved

Understanding how things

Current State currently operate. This is
drawing the foundation for the
future state.
Future State
Designing a lean flow through
drawing
the application of Lean
principles

Planning and The goal of mapping!

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?

Mr Singh’s Taxes - Current

• Rhythm (leveling)?
• Progress & delays visible?

State
• Process improvements?

Client
Takt Time = Available time / Customer Requirements

= 40 days / 40 Clients = 1 per day

40 clients

Stand.
Work

FIFO
Send Sort XOXO Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
IN documents IN IN IN
TS TS forms
IN
1 week 3 weeks
COMBINE PROCESSES
3 days 3 days 1 day
John Jack Jack John Jack John Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %

Total Lead Time: 7 wks, 2 days,

140 min
 • Customer requirements?
• Work flow smoothly?

Mr Singh’s Taxes - Current State

• Trigger & sequence work?
• Rhythm (leveling)?
• Progress & delays visible?
• Process improvements?

Client Takt Time = Available time / Customer Requirements

= 40 days / 40 Clients = 1 per day

40 clients

Stand.
Work

FIFO
Send Sort XOXO Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
IN documents IN IN IN
TS TS forms
IN
1 week 3 weeks
COMBINE PROCESSES
3 days 3 days 1 day
John Jack Jack John Jack John Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %

Total Lead Time: 7 wks, 2 days,

140 min
 • Customer requirements?

Mr Singh’s Taxes – Current State

• Work flow smoothly?
• Trigger & sequence work?
• Rhythm (leveling)?
• Progress & delays visible?
• Process improvements?

Client Takt Time = Available time / Customer Requirements

= 40 days / 40 Clients = 1 per day

40 clients

Stand.
Work

FIFO
Send Sort XOXO Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
IN documents IN IN IN
TS TS forms
IN
1 week 3 weeks
COMBINE PROCESSES
3 days 3 days 1 day
John Jack Jack John Jack John Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
Data entry
W/T --- W/T ---
Worksheet
W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%
training
Reduce process time
to 75 min
P/T 10 min 30 min 60 min Standardize
10 min Work 15 min 15 min 10 min 140 min
W/T 1 week 3 Individual
weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % I Tax Laws
95 % 50 % 98 % 100 % 100 % 4.7 %
training
Total Lead Time: 7 wks, 2 days,
140 min
 Customer Requirements: Mr Singh’s Taxes Takt Time = Available time / Customer Requirements
•Tax Forms completed accurately
•Finished before filling time
Future State
= 40 days / 40 Clients = 1 per day
•Lowest possible cost

Client

40 clients

1 per day
Over 8 weeks

max 1 day max 1 day

Send XOXO Data entry FIFO Check & Mail forms

+
Reminder print sign forms
forms IN
IN FS
John John Jack John
P/T 10 min P/T 75 min P/T 15 min P/T 10 min
W/T W/T W/T 1 day W/T 1 day
FTQ 100% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 75 min 15 min 10 min 100 min

W/T 2 days
1 day 1 day
FTQ 100 % 98 % 100 % 100 % 98 %
2 days,
100 min
 Measurable Metrics & Performance
Metric Current From Current Target from Actual
Estimate State Map Future State (post
Map implementation)

Process
Time 720 Min. 140 Min. 100 Min.

Lead 7 Weeks, 2 2 Days,

6 – 8 weeks
Time Days, 140 Min 100 Min.
First
Time 100% 4.7% 98%
Quality

Other(s)
 Summary of Results – Potential Impact
• Reduced PT 40 mins (29%) – Mr Singh 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 Mr Singh’s “high priced time” over to John. Mr Singh
can now concentrate on more complicated returns or on obtaining more
higher revenue generating corporate clients.
• Reduced personal overtime – Mr Singh does not stay late signing returns
anymore.
• This new Future State now becomes the next Current State (continuous
improvement). Next Mr Singh could investigate further leveling the work
he receives in, filing electronically, …
Implementation Planning
Using the Value Stream Mapping Tool
Scoping the Determine the Value
Value Stream Stream to be improved

Understanding how things

Current State currently operate. This is
drawing the foundation for the
future state.
Future State Designing a lean flow through
drawing
the application of Lean
principles

Planning and The goal of mapping!

Implementation
Current Future
Changes
State 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
Concrete

GOALS

Specific OBJECTIVES

Clear & Measurable TARGETS

A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies

Common Measurements
 Business Plan Deployment
Is a PDCA Cycle
4 Act (Standardized & Countermeasures) 1 Plan
Problem Description
Plant Master Plan

Tasks

Why? Direct Cause

Why? Cause

Act Plan
Why? Cause
Why? Cause
Why?
Root
Cause
2
3 Check Check Do Do (Communicate & Implement)

Annual
A Business
c Plan
ti
2
o
n

Scorecard
 Leadership’s 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?