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Principles of Lean and Value Stream Mapping Overview Presented By:  Jeff Heaton
Principles of Lean VALUE  = To the Customer VALUE STREAM   = Required steps to deliver the product/service Flow  = How the product/service flows through the process Pull  = Producing & delivering a product/service only when requested by the Customer Excellence  = The eliminating of waste
3 Conditions Which Produce Waste Within A Process Type I   =  NON-VALUE ADDED ACTIVITY Type II   =  INCONSISTENCY  Type III  =  UNREASONABLENESS These Conditions will produce Waste – Independently or in a combination
Original Wastes D efects O ver-processing W aiting N eedless procssing T ransportation I nventory M otion E mployee Intelect Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary
What is a Value Stream •  A  visual   tool to help  see   and  understand   the  flow of material and information. •  Map of all  actions  currently  required   to  deliver   a   Product or Service . •  Big picture perspective that focuses on improving the whole , not optimizing pieces of the  process.
Improvement Targets Identify Key Performance Indicators (KPI) and record for the current state performance These metrics will be used to quantify and demonstrate improvement in the Value Stream Current State vs. Future State
Examples of Improvement Targets Reducing process time. Reducing inventory. Cost / Resource reduction. Increasing available capacity. Decreasing space. Reducing time spent waiting on process. Reducing defects, rework, or repair .
Implementation Planning Achieving future state is the goal of value stream mapping. Keys to success... Tasks identified and scheduled. Tasks assigned to individuals or teams. Required support obtained. Regular reviews to adhere to plan. Knowledge and support from management sponsor and leadership team.
Example VSM Improvement - Before
Example VSM Improvement - After
Palo Verde Is Developing a Lean Culture of Continuous Improvement One Which: Produces outputs with fewer defects  Performs processes in less time and with less effort Requires less investment to achieve a given level of production/service capacity Uses fewer suppliers Needs less inventory at every step Reduces worker injuries
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Principles Of Lean And Value Stream Mapping Overview

  • 1. Principles of Lean and Value Stream Mapping Overview Presented By: Jeff Heaton
  • 2. Principles of Lean VALUE = To the Customer VALUE STREAM = Required steps to deliver the product/service Flow = How the product/service flows through the process Pull = Producing & delivering a product/service only when requested by the Customer Excellence = The eliminating of waste
  • 3. 3 Conditions Which Produce Waste Within A Process Type I = NON-VALUE ADDED ACTIVITY Type II = INCONSISTENCY Type III = UNREASONABLENESS These Conditions will produce Waste – Independently or in a combination
  • 4. Original Wastes D efects O ver-processing W aiting N eedless procssing T ransportation I nventory M otion E mployee Intelect Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary
  • 5. What is a Value Stream • A visual tool to help see and understand the flow of material and information. • Map of all actions currently required to deliver a Product or Service . • Big picture perspective that focuses on improving the whole , not optimizing pieces of the process.
  • 6. Improvement Targets Identify Key Performance Indicators (KPI) and record for the current state performance These metrics will be used to quantify and demonstrate improvement in the Value Stream Current State vs. Future State
  • 7. Examples of Improvement Targets Reducing process time. Reducing inventory. Cost / Resource reduction. Increasing available capacity. Decreasing space. Reducing time spent waiting on process. Reducing defects, rework, or repair .
  • 8. Implementation Planning Achieving future state is the goal of value stream mapping. Keys to success... Tasks identified and scheduled. Tasks assigned to individuals or teams. Required support obtained. Regular reviews to adhere to plan. Knowledge and support from management sponsor and leadership team.
  • 11. Palo Verde Is Developing a Lean Culture of Continuous Improvement One Which: Produces outputs with fewer defects Performs processes in less time and with less effort Requires less investment to achieve a given level of production/service capacity Uses fewer suppliers Needs less inventory at every step Reduces worker injuries

Editor's Notes

  • #3: VALUE - What the customer is willing to pay for VALUE STREAM - All the required steps to produce and deliver a product or service FLOW - A product moving through the value stream with no stoppages, scrap or rework PULL - producing and delivering only when the downstream customer signals a need EXCELLENCE - completely eliminating waste so that all activities create value
  • #4: There are three types condition which will produce waste: Type 1 is Non-Value Added Activity Any Activity that is waste ful and doesn't add value or is unproductive A process may be Non-Value Activity but is required to satisfy a business need or regulation. Type II is Inconsistency Condition of unevenness,– Absence of Balance – Variability or Unpredictable Type III is Unreasonableness Condition of overburden, unreasonableness or absurdity Inflexibility