Value Stream Mapping
- 1. Value Stream Mapping SUMMARY OF LEARNINGS IN CLASS BY ~ANAND PANDEY ~by Mohit Budhiraja
- 2. Agenda Introduction Benefits of Value Stream Mapping The 8 waste of lean Calculating Efficiency at different workflow stage Value Stream Mapping Process Current State Mapping Future State Mapping Gap Analysis Implementing Value Stream Mapping 2
- 3. Introduction: Value Stream Mapping, Definition, Purpose Value Stream Mapping: Value Stream Mapping is a lean management tool used to visualize and analyze the steps and activities involved in delivering a product or service to a customer, with the aim of identifying and eliminating waste, improving efficiency, and increasing customer value. Definition: Value Stream Mapping is a visual representation of the flow of materials and information through the process, from the initial order to delivery, with a focus on identifying value- adding and non-value-adding activities. Purpose: The purpose of Value Stream Mapping is to provide a holistic view of the entire process, enabling stakeholders to understand the current state, envision the future state, and identify opportunities for improvement. 3
- 4. 4 Benefits of Value Stream Mapping: Identifying Waste, Improving Efficiency, Increasing Customer Value Identifying Waste: Value Stream Mapping helps to uncover and eliminate various forms of waste, including overproduction, waiting times, unnecessary movement, and defects, leading to cost reduction and improved resource utilization. Improving Efficiency: By visualizing the production process, Value Stream Mapping allows organizations to identify and streamline inefficient activities, reduce lead times, and optimize resource allocation, resulting in improved overall operational efficiency. Increasing Customer Value: Value Stream Mapping enables organizations to focus on value-adding activities and prioritize customer satisfaction, leading to the delivery of higher quality products or services with a reduced time-to-market, enhancing customer value and brand reputation. 4
- 5. 5 The 8 Waste of Lean 5
- 6. 6 Calculating Efficiency at different workflow stage 6 Lead Time: is the total time from initiation to completion. Cycle Time: is the total time for one cycle of a process, including both active and wait times. Wait Time: is the time an item spends waiting between activities. Touch Time: is the time spent actively working on a task. Example: Lets take an example of prioritization state in our ALM: Lead Time : 5 days or 40 hours Actual productive time or touch time: 2 hours Wait time or non-productive time: 4 days 12 hours % efficiency: Touch time/ lead time (2/40)% % effectiveness : 7/10% considering out of 10 7 stories are prioritized
- 7. 7 Value Stream Mapping Process Current State Mapping: Analyzing the existing processes and identifying value-adding and non- value-adding activities Future State Mapping: Envisioning the ideal process flow and identifying improvement opportunities Gap Analysis: Identifying gaps between the current and future state, prioritizing improvement areas Current State Mapping, Future State Mapping, Gap Analysis 7
- 8. 8 Current State Mapping Data Collection: Gathering relevant information about the current processes and their performance metrics Process Analysis: Thoroughly examining the current workflow, time, and resource utilization Value-adding and Non-value- adding Activities: Distinguishing activities that directly contribute to value creation from those that do not Data Collection, Process Analysis, Value-adding and Non-value-adding Activities 8
- 9. 9 Future State Mapping Identifying Improvement Opportunities: Spotting areas for enhancement and streamlining in the workflow and processes Developing Ideal Process Flow: Creating a visual representation of the desired optimized process and identifying key improvements Identifying Improvement Opportunities, Developing Ideal Process Flow 9
- 10. Gap Analysis Identifying gaps between current and future state: Contrasting the existing processes with the envisioned future state to highlight discrepancies and areas needing improvement Prioritizing Improvement Areas: Ranking areas of improvement based on their impact on value, efficiency, and customer satisfaction 10 Identifying gaps between current and future state, Prioritizing Improvement Areas
- 11. 11 Implementing Value Stream Mapping Engaging Stakeholders: Involving and collaborating with relevant stakeholders to gather insights and align on improvement goals Developing Value Stream Transformation Plan: Creating a detailed plan that outlines specific actions, responsibilities, and timelines for implementing improvements Continuous Improvement: Establishing a culture of ongoing improvement and adaptation to enhance value stream processes over time Engaging Stakeholders, Developing Action Plan, Continuous Improvement 11
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