Process

Problem Statement

Tax Season: 8 weeks 40 self-employed clients Send Reminder: John P/T = 10 min FTQ = 100%

Data Set
Print and Collate IRS tax forms: John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms: Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client: John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%

Sort receipts & documents: Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet: Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions: Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50%

Measurable Metrics & Performance

Metric From Current State Map Target from Future State Map Actual (post implementation)

Process Time Lead Time First Time Quality Other(s)

Icons
Process Box

MRP MRP
Technology Used

IN
In Box (Queue) Wait-Time

Customer

P/T W/T FTQ Data Box Conversation Information Flow Worker Weekly Schedule

Electronic Information Flow

Reminder post-card Movement of physical property

Withdrawal (Pull)
Movement by Push

Supermarket

Iterations

Changeover

Kaizen Lightning Burst

XOXO

Leveling, Mix and/or Volume

FIFO

First-In First-Out Flow

Draw the Current State

Jacks Taxes - Current State

Client
40 clients

Send reminder

IN
1 week

Sort receipts & documents

IN
3 weeks

Prepare worksheet TS

Confirm deductions

IN
3 days

Print & Collate IN TS forms

3 days

Review & sign forms

IN
1 day

Mail forms

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

Jack 30 min --10%

Jack
P/T 60 min W/T 1 week FTQ 95% P/T W/T FTQ

Jack 10 min 1 week 50%

P/T W/T FTQ

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

P/T W/T FTQ

10 min ----100 % 1 week

30 min ---10 % 3 weeks X

60 min 1 week 95 % X

10 min 1 week 50 % 3 days X

15 min ---98 % 3 days X

15 min ---100 % 1 day X

10 min ---100 %

Total Lead Time:

Measurable Metrics & Performance

Metric From Current State Map SPQRC Target from Future State Map Actual (post implementation)

Process Time Lead Time First Time Quality Other(s)

Jacks Taxes - Current State

Client
40 clients

Send reminder

IN

Sort receipts & documents

Prepare worksheet

Confirm deductions

IN Jack 30 min --10%

TS

IN
3 days

Print & Collate TS forms

Review & sign forms

Mail forms

IN
3 days

IN
1 day

1 week P/T W/T FTQ

3 weeks

John 10 min --100%

Jack
P/T 60 min W/T 1 week FTQ 95% P/T W/T FTQ

P/T W/T FTQ

Jack 10 min 1 week 50%

P/T W/T FTQ

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

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 (COMMWIP)

Shift Mindset
CURRENT THINKING REQUIRED THINKING
Processing Correction Unevenness

Inventory

P I W

Over Production

WASTE

FORMS OF WASTE

O M
Motion

Waiting

M
Material Movement

Unreasonable -ness

WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT

WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE CONTINUOUS IMPROVEMENT

Waste Exercise

Participants identify waste on current state maps.

Jacks Taxes - Current State

Client

O C C C MM
Send reminder Sort receipts & documents

40 clients

W
IN

W C
Prepare worksheet TS Confirm deductions

IN

IN

Print & Collate IN TS forms

Review & sign forms

IN

Mail forms

1 week

3 weeks P/T W/T FTQ

3 days

3 days

1 day

P/T W/T FTQ

John 10 min --100%

Jack 30 min --10%

Jack
P/T 60 min W/T 1 week FTQ 95% P/T W/T FTQ

Jack 10 min 1 week 50%

P/T W/T FTQ

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

P/T W/T FTQ

10 min ----100 % 1 week

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

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 Value Stream

Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state.

Current State drawing

Future State drawing

Designing a lean flow through the application of Lean principles

The goal of mapping!

Planning and 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?

Rhythm (leveling)?

Jacks Taxes - Current State

Client
40 clients

Progress & delays visible? Process improvements?

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

Stand. Work
Send reminder Sort XOXO receipts & documents Prepare worksheet TS Confirm deductions Print & Collate TS forms

FIFO IN
3 days

Review & sign forms

Mail forms

IN

IN Jack P/T 30 min W/T --FTQ 10%

IN

IN
1 day

1 week

3 weeks

COMBINE PROCESSES 3 days

Jack 10 min 1 week 50%
P/T W/T FTQ

John P/T 10 min W/T --FTQ 100%

Jack John P/T 60 min P/T W/T 1 week W/T FTQ 95% FTQ

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)?

Jacks Taxes - Current State

Client
40 clients

Progress & delays visible?

Process improvements?

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

Stand. Work
Send reminder Sort XOXO receipts & documents Prepare worksheet TS Confirm deductions Print & Collate TS forms

FIFO IN
3 days

Review & sign forms

Mail forms

IN

IN Jack P/T 30 min W/T --FTQ 10%

IN

IN
1 day

1 week

3 weeks

COMBINE PROCESSES 3 days

Jack 10 min 1 week 50%
P/T W/T FTQ

John P/T 10 min W/T --FTQ 100%

Jack John P/T 60 min P/T W/T 1 week W/T FTQ 95% FTQ

John 15 min --98%

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 3 weeks 10 %

60 min 1 week 95 %

10 min 1 week 50 % 3 days

15 min 3 days 98 %

15 min 1 day 100 %

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

Jacks Taxes - Current State

Client
40 clients

Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible?

Process improvements?

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

Stand. Work
Send reminder Sort XOXO receipts & documents Prepare worksheet TS Confirm deductions Print & Collate TS forms

FIFO IN
3 days

Review & sign forms

Mail forms

IN

IN Jack P/T 30 min Data entry W/T --Worksheet FTQ 10% training

IN

IN
1 day

1 week

3 weeks

COMBINE PROCESSES 3 days

John P/T 10 min W/T --FTQ 100%

P/T W/T FTQ

10 min 1 week 100 %

30 min 10 %

Jack John Jack John P/T 60 min P/T 10 min P/T 15 min W/T 1 week W/T 1 week W/T --FTQ 95% FTQ 50% FTQ 98% Reduce process time to 75 min Standardize Work 15 min 60 min 10 min
1 week 50 % 3 days 98 %

P/T W/T FTQ

Jack 15 min --100%

P/T W/T FTQ

John 10 min --100%

15 min 3 days 100 % 1 day

10 min 100 % Total Lead Time:

140 min 7 wks, 2 days 4.7 % 7 wks, 2 days, 140 min

3 Individual weeks 1 week

1040, 1040EZ 95 % training

Customer Requirements:
Tax Forms completed accurately Finished before filling time Lowest possible cost

Jacks Taxes Future State Client

40 clients 1 per day Over 8 weeks

Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day

max 1 day Send Reminder IN John

P/T 10 min W/T FTQ 100% P/T W/T FTQ 100 % 98 % 10 min P/T W/T FTQ

max 1 day Check & sign forms IN Jack

P/T 15 min W/T 1 day FTQ 100% 15 min P/T W/T FTQ

XOXO

Data entry + print FS forms John 75 min 98%

FIFO

Mail forms

John 10 min 1 day 100%

100 min 2 days

75 min 1 day

10 min 1 day

100 %

100 %

98 % 2 days, 100 min

Measurable Metrics & Performance

Metric SPQRC Current Estimate From Current State Map Target from Future State Map Actual (post implementation)

Process Time Lead Time First Time Quality Other(s)

Summary of Results Potential Impact