Create a Value Stream Map For the Assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) s
Part A: Value Stream Mapping and Analysis
Lean is used to improve operations and processes in services, manufacturing, healthcare, government and other sectors of the economy. A core tool in Lean is Value Stream Mapping. This tool helps us to visualize complex work systems (including material and information flows) so we can better address disconnects, redundancies, and gaps in how work gets done between the beginning and end of a process.
The primary type of value stream is one in which a product or service is requested by (and delivered to) an external customer. Examples include: request to receipt, order to delivery, and quote to cash.
Other value streams support the delivery of value, called value-enabling or support value streams. Examples include recruiting, onboarding, IT support, and annual budgeting.
Since it is nearly always a mistake to initiate changes without have a clear picture of how the system is currently functioning, we are beginning our Course Project with the creation and analysis of a Value Stream Map.
Instructions
For the Assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) selected does not need to be overly large or complex. Select something which has the potential for meaningful improvement, but which is manageable within the scope of this assignment.
1) Develop a current state Value Stream Map of your selected value stream. Show the customer demand rate (or Takt), information flow, work flow, and summary timeline on the map.
2) Document key metrics for each process block:
Process time (PT)
Lead time (LT)
Percent Complete and Accurate (%C&A)
3) Calculate the current state summary metrics:
Total lead time (Total LT)
Total process time (Total PT)
Activity Ratio (AR)
Rolled Percent Complete and Accurate (Rolled %C&A)
4) Describe the current state of the value stream and highlight any performance deficiencies and challenges, such as delays, excessive WIP, bottlenecks, capacity and workload imbalances, rework, poor quality yields, long lead times, and other operational issues.
Submission Requirements
Your work may be submitted in either Word or PowerPoint.
Since you will need to include a diagram to map the value stream for #1, you should select whatever software you are most comfortable working with. Value stream process maps can easily be created in PowerPoint, but are more difficult to execute well in Word. You should consider using https://www.draw.io/ which is a free web-based tool for drawing flowcharts. Instructions for use are posted in the Course Documents section in Blackboard. You may also use other software such as Visio if you prefer, but this is not necessary. Note: If you do use a different mapping software and experience difficulties uploading it into Blackboard, convert your map to a PDF or JPG and paste it into Word or PPT before submitting.
For #2, the information for each process block should be on the value stream map.
For #3, it can be on the map or in tabular form. Show how the summary metrics are calculated. Keep your written answers brief and to the point. Accuracy is what matters. This should take no more than one page. There are no additional points for overly elaborate responses.
For #4, a thorough response should take no more than one page.
Part A Helpful Notes From the Professor
Please note that my comments are in BLUE.
Instructions
For the Assignment, select a value stream in your organization that can benefit from analysis and improvement. As noted previously, the value stream (or end-to-end process) selected does not need to be overly large or complex. Select something which has the potential for meaningful improvement, but which is manageable within the scope of this assignment.
This is a wonderful opportunity for you to choose something that can be impactful, relevant, and practical to your organization. You’ll want the process you choose to also be interesting to you.
For example, if I worked at IKEA, and were the customer service manager, I may choose to review the process of handling returns. There are many steps involved in this and decisions to make during the flow of the process (i.e., if they want an exchange vs. refund to their credit card, I may take different action).
Develop a current state Value Stream Map of your selected value stream. Show the customer demand rate (or Takt), information flow, work flow, and summary timeline on the map.
I want to emphasize that there are many ways to detail out the VSM.
You can use whatever technology you prefer, but I recommend free software on the internet. It’s easy, use-friendly, and free. Great resources to have in your toolkit as well when you graduate (being able to know how to develop process maps).
Customer demand rate (or Takt): Here is a link to a worked out example that should help: http://www.six-sigma-material.com/Takt-Time.html
Takt is the German word for the baton that an orchestra conductor uses to regulate the tempo of the music. Takt time may be thought of as a measurable “beat time,” “rate time” or “heartbeat.” In Lean, takt time is the rate at which a finished product needs to be completed in order to meet customer demand.
For example, if customer demand requires 1 product every 30 seconds, then we know if we are producing products in 30 seconds of less, we will meet demand “Just-in-time” without a need for inventory.
Document key metrics for each process block:
Process time (PT)
Lead time (LT)
Percent Complete and Accurate (%C&A)
Information on these 3 metrics can be found here: https://www.mmsonline.com/columns/a-simple-yet-effective-way-to-identify-opportunities
3) Calculate the current state summary metrics:
Total lead time (Total LT)
Total process time (Total PT)
Activity Ratio (AR)
Rolled Percent Complete and Accurate (Rolled %C&A)
Step 1 on this website shows how to calculate these:
https://patrickroose.wordpress.com/advisory-community/business-process-value-streams-how-to/
Describe the current state of the value stream and highlight any performance deficiencies and challenges, such as delays, excessive WIP, bottlenecks, capacity and workload imbalances, rework, poor quality yields, long lead times, and other operational issues.
Value stream process maps can easily be created in PowerPoint, but are more difficult to execute well in Word. You should consider using https://www.draw.io/ which is a free web-based tool for drawing flowcharts. Instructions for use are posted in the Course Documents section in Blackboard. You may also use other software such as Visio if you prefer, but this is not necessary. Note: If you do use a different mapping software and experience difficulties uploading it, convert your map to a PDF or JPG and paste it into Word or PPT before submitting.
For #2, the information for each process block should be on the value stream map.
For #3, it can be on the map or in tabular form. Show how the summary metrics are calculated. Keep your written answers brief and to the point. Accuracy is what matters. This should take no more than one page. There are no additional points for overly elaborate responses.
For #4, a thorough response should take no more than one page.
This project should be around 2-3 pages in total (no need for a reference page, cover page, or abstract). Please do not exceed 3 pages. Be brief, concise, and business like in your writing
