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Introduction to
Value Stream Mapping
Presented by Tracy O’Rourke
1
About Our Presenter
• Managing Partner at
GoLeanSixSigma.com
• Co-Author of
The Problem-Solver’s Toolkit
• Co-host of the
Just-In-Time Café Podcast
Tracy O’Rourke
/Tracy-ORourke
@RourkeTracy
2
Where Are You From?
Share your location in the Question area in your
Control Panel!
3
Our Mission and Core Values
Mission: Revolutionize the way people learn process
improvement⏤making it easy for everyone
everywhere to build their problem-solving muscles
4
Cultivating Community
We create an inclusive and
positive space where
people around the world
connect with each other to
learn and grow.
Servant’s Heart
At our core we are here
to be of service to
others as guides and
teachers to encourage
people’s success.
Trailblazing Spirit
We have the courage to
challenge and inspire each
other to create a constant
state of awesomeness.
Learning Objectives
By the end of this webinar you will be able to:
• Define a Value Stream Map
• Explain why Value Stream Maps are important
• Describe the important Value Stream Map
characteristics
• Recognize the steps for building a
Value Stream Map
5
Today’s Agenda
• What is a Value Stream Map
• What is the purpose of a Value Stream Map?
• What are the key icons and metrics?
• How do I build a Value Stream Map?
• How do I analyze a Value Stream Map?
6
What Is A Value Stream?
• A macro-level end-to-end process from the
start of a product or service to the end result
delivered to the customer.
7
Non-Manufacturing Value Stream
Examples
8
Analyze
Requirements
Procure
to Pay
Hire to
Retire
Billing
to Cash
Source
Vendor
Create
Contract
Contract
Requirements
Fulfilled
Pay Vendor
Contract &
Compliance
Hire Employee Administrator
Compensation
Administrator
Benefits
Employee
Engagement &
Development
Exit Employee
Billable
Activity
Occurs
Send Bill Receive
Payment
Pass to
Collections
Why Map A Value Stream?
9
Horizontal Flow
Lean Principles
10
Lean
Principles
Define
Value
Map the
Value
Stream
Create
Flow
Establish
Pull
Pursue
Perfection
What is a Value Stream Map?
• Maps the Value Stream
• Highlights the current process regardless of
who is doing the work
• Captures material flow, information flow,
barriers to flow, Work-In-Process (WIP) and Lead
Time
• Helps identify waste in the process and barriers
to flow
11
Why A Value Stream Map
• Makes the Value Stream visible
• Helps prioritize cross-functional process issues
• Creates a visual of Wait Time
• Enables calculation of Process and Lead Time
12
Basics of a Value Stream Map
13
The process
steps are listed
from left to right
This shape
indicates
suppliers and
customers of
the process
The bottom half provides
room for process data
and a timeline
Key Icons
14
Poll #1
Have you used Value Stream Maps (VSMs)
before?
A. I’ve heard of them but never used VSMs
B. I have very little experience with VSMs
C. I’m familiar with VSMs and used them
several times
D. We use VSMs a lot to visualize processes
15
Difference With Other Maps
16
Value Stream Missteps
• Not enough planning
• Involving the wrong people
• Not involving leadership enough
• Not gathering metrics
• Inappropriate scope or time management
17
Steps for Building a Value Stream Map
18
Steps for Practical Problem Solving
1. Walk the process
2. Gather process data and metrics
3. Map out the process flow
4. Add information flow, data and metrics
5. Build the timeline
6. Analyze the Value Stream Map
1. Walk the Process
19
Walk the Process
2. Gather Process Data and Metrics
20
Some questions are:
• How long from the time work is
available until it is passed on to
the next step?
• How many units are waiting to be
worked on right now?
• What issues or barriers to flow
make this step painful or time-
consuming?
• What % of units received are
complete and accurate?
3. Map Out the Process Flow
21
Key Metrics & Definitions
• Process Time: The amount of time it takes to
perform and activity. Also known as Touch
Time.
• Wait Time: The amount of time a unit of thing
is waiting to be worked on.
• Lead Time: The elapsed time associated with
an activity or process step. (Total Elapsed Time)
Process Time + Wait Time = Lead Time
22
4. Add Information Flow, Data & Metrics
23
5. Build the Timeline
24
6. Analyze the Value Stream Map
25
Analyze the Value Stream Map
26
Analyze the Value Stream Map
27
Analyze the Value Stream Map
28
Value Stream Map Example
29
Steps for Building a Future State
Value Stream Map
30
1. Determine the right work
2. Make the right work flow
3. Manage the right work
Future State Questions
How can we:
• Eliminate waste?
• Reduce unnecessary hand-offs?
• Balance the workload?
• Create more capacity?
• Minimize Wait Time and/or Lead Time?
• Implement FIFO? Supermarkets? Kanban?
Or Single piece flow?
31
Future State Map
32
Improvement Metrics
33
Question for You
What have your process mapping
experiences been like?
Great? Good? Bad? Ugly?
• Please enter your response in the Chat tab
34
Books on Value Stream Mapping
35
Call To Action
• Buy the Value Stream Mapping Single Module
• Download the VSM Template
• Download the Process Walk Interview Sheet
• Learn more about Process Walks and Value
Stream Maps
36
Today We Covered
37
• What is a Value Stream Map
• What is the purpose of a Value Stream Map?
• What are the key icons and metrics?
• How do I build a Value Stream Map?
• How do I analyze a Value Stream Map?
Questions?
38
Getting Started
Learn more by starting some more training!
• White Belt Training & Certification (Training is FREE)
• Yellow Belt Training & Certification (Training is FREE)
• Green Belt Training & Certification
• Black Belt Training & Certification
• Lean Training & Certification
Coupon Code: 20VSM
20% discount on all courses!
*Expires September 14, 2019
39
Go-Getter Membership
40
• Access to all Single Modules ($337 value)
• Access to Go-Getter Exclusive Webinars
• Support Tools ($226 value)
• 20% discount on ALL
of your purchases!
• Current course access
extended (additional year)
$199 for 1 year access
Upcoming Webinar: Sept. 18, 11am PST
Register today at GoLeanSixSigma.com/webinars
We’ll select upcoming webinars based on your feedback, so please share
your feedback on the survey at the end of close of this webinar.
42
Project of the Month
Check out more success stories from Go-Getters just
like you at GoLeanSixSigma.com/Success
44
Questions?
46
Thank You for Joining Us!
More questions? Ask us at
contact@goleansixsigma.com
Click here to download free tools,
templates, infographics and more!
@GoLeanSixSigma/company/GoLeanSixSigma-com /GoLeanSixSigma 47

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WEBINAR: Introduction to Value Stream Mapping

  • 1. Introduction to Value Stream Mapping Presented by Tracy O’Rourke 1
  • 2. About Our Presenter • Managing Partner at GoLeanSixSigma.com • Co-Author of The Problem-Solver’s Toolkit • Co-host of the Just-In-Time Café Podcast Tracy O’Rourke /Tracy-ORourke @RourkeTracy 2
  • 3. Where Are You From? Share your location in the Question area in your Control Panel! 3
  • 4. Our Mission and Core Values Mission: Revolutionize the way people learn process improvement⏤making it easy for everyone everywhere to build their problem-solving muscles 4 Cultivating Community We create an inclusive and positive space where people around the world connect with each other to learn and grow. Servant’s Heart At our core we are here to be of service to others as guides and teachers to encourage people’s success. Trailblazing Spirit We have the courage to challenge and inspire each other to create a constant state of awesomeness.
  • 5. Learning Objectives By the end of this webinar you will be able to: • Define a Value Stream Map • Explain why Value Stream Maps are important • Describe the important Value Stream Map characteristics • Recognize the steps for building a Value Stream Map 5
  • 6. Today’s Agenda • What is a Value Stream Map • What is the purpose of a Value Stream Map? • What are the key icons and metrics? • How do I build a Value Stream Map? • How do I analyze a Value Stream Map? 6
  • 7. What Is A Value Stream? • A macro-level end-to-end process from the start of a product or service to the end result delivered to the customer. 7
  • 8. Non-Manufacturing Value Stream Examples 8 Analyze Requirements Procure to Pay Hire to Retire Billing to Cash Source Vendor Create Contract Contract Requirements Fulfilled Pay Vendor Contract & Compliance Hire Employee Administrator Compensation Administrator Benefits Employee Engagement & Development Exit Employee Billable Activity Occurs Send Bill Receive Payment Pass to Collections
  • 9. Why Map A Value Stream? 9 Horizontal Flow
  • 11. What is a Value Stream Map? • Maps the Value Stream • Highlights the current process regardless of who is doing the work • Captures material flow, information flow, barriers to flow, Work-In-Process (WIP) and Lead Time • Helps identify waste in the process and barriers to flow 11
  • 12. Why A Value Stream Map • Makes the Value Stream visible • Helps prioritize cross-functional process issues • Creates a visual of Wait Time • Enables calculation of Process and Lead Time 12
  • 13. Basics of a Value Stream Map 13 The process steps are listed from left to right This shape indicates suppliers and customers of the process The bottom half provides room for process data and a timeline
  • 15. Poll #1 Have you used Value Stream Maps (VSMs) before? A. I’ve heard of them but never used VSMs B. I have very little experience with VSMs C. I’m familiar with VSMs and used them several times D. We use VSMs a lot to visualize processes 15
  • 17. Value Stream Missteps • Not enough planning • Involving the wrong people • Not involving leadership enough • Not gathering metrics • Inappropriate scope or time management 17
  • 18. Steps for Building a Value Stream Map 18 Steps for Practical Problem Solving 1. Walk the process 2. Gather process data and metrics 3. Map out the process flow 4. Add information flow, data and metrics 5. Build the timeline 6. Analyze the Value Stream Map
  • 19. 1. Walk the Process 19 Walk the Process
  • 20. 2. Gather Process Data and Metrics 20 Some questions are: • How long from the time work is available until it is passed on to the next step? • How many units are waiting to be worked on right now? • What issues or barriers to flow make this step painful or time- consuming? • What % of units received are complete and accurate?
  • 21. 3. Map Out the Process Flow 21
  • 22. Key Metrics & Definitions • Process Time: The amount of time it takes to perform and activity. Also known as Touch Time. • Wait Time: The amount of time a unit of thing is waiting to be worked on. • Lead Time: The elapsed time associated with an activity or process step. (Total Elapsed Time) Process Time + Wait Time = Lead Time 22
  • 23. 4. Add Information Flow, Data & Metrics 23
  • 24. 5. Build the Timeline 24
  • 25. 6. Analyze the Value Stream Map 25
  • 26. Analyze the Value Stream Map 26
  • 27. Analyze the Value Stream Map 27
  • 28. Analyze the Value Stream Map 28
  • 29. Value Stream Map Example 29
  • 30. Steps for Building a Future State Value Stream Map 30 1. Determine the right work 2. Make the right work flow 3. Manage the right work
  • 31. Future State Questions How can we: • Eliminate waste? • Reduce unnecessary hand-offs? • Balance the workload? • Create more capacity? • Minimize Wait Time and/or Lead Time? • Implement FIFO? Supermarkets? Kanban? Or Single piece flow? 31
  • 34. Question for You What have your process mapping experiences been like? Great? Good? Bad? Ugly? • Please enter your response in the Chat tab 34
  • 35. Books on Value Stream Mapping 35
  • 36. Call To Action • Buy the Value Stream Mapping Single Module • Download the VSM Template • Download the Process Walk Interview Sheet • Learn more about Process Walks and Value Stream Maps 36
  • 37. Today We Covered 37 • What is a Value Stream Map • What is the purpose of a Value Stream Map? • What are the key icons and metrics? • How do I build a Value Stream Map? • How do I analyze a Value Stream Map?
  • 39. Getting Started Learn more by starting some more training! • White Belt Training & Certification (Training is FREE) • Yellow Belt Training & Certification (Training is FREE) • Green Belt Training & Certification • Black Belt Training & Certification • Lean Training & Certification Coupon Code: 20VSM 20% discount on all courses! *Expires September 14, 2019 39
  • 40. Go-Getter Membership 40 • Access to all Single Modules ($337 value) • Access to Go-Getter Exclusive Webinars • Support Tools ($226 value) • 20% discount on ALL of your purchases! • Current course access extended (additional year) $199 for 1 year access
  • 41. Upcoming Webinar: Sept. 18, 11am PST Register today at GoLeanSixSigma.com/webinars We’ll select upcoming webinars based on your feedback, so please share your feedback on the survey at the end of close of this webinar. 42
  • 42. Project of the Month Check out more success stories from Go-Getters just like you at GoLeanSixSigma.com/Success 44
  • 44. Thank You for Joining Us! More questions? Ask us at contact@goleansixsigma.com Click here to download free tools, templates, infographics and more! @GoLeanSixSigma/company/GoLeanSixSigma-com /GoLeanSixSigma 47