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Value Stream Mapping: Mastering the Essentials of Identifying Opportunities in Clinical Labs and

Pathology Groups

Quality Confab, 2012 San Antonio, TX

When and How to Use Value Stream Mapping During the Course of a Lean or Six Sigma Initiative

Quality Management

2001 - 2003

Six Sigma Black Belt

2003- 2005

DBSL

2005 - 2009

Workflow Consulting

2009 - 2012

Global Solutions Optimizations

Specialist

since 2012

Credentials

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VSM Introduction

VSM Elements

How to Get Started

Create a current state VSM

Analyzing the VSM

Creating a Future State

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VSM Introduction

VSM Elements

How to Get Started

Create a current state VSM

Analyzing the VSM

Creating a Future State

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Value Stream Map - Definition

!!A Value Stream Is the set of Activities Required To Deliver A product or service (Or Product Family) To The Customer

!!Physical !!Information !!Material

!!A value-stream map is a visual tool that maps the process the material and information flows

!! 50.000ft view of your organization

Levels of Value Stream Maps

!!Single Department

!!Multiple Departments

!!Single Institution

!!Multiple Institutions

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What a VSM Can’t Do

!!A VSM is a snapshot in time the day the process is observed and does not deliver statistical relevant data

!!A VSM does not fix the process – it visualizes where the improvement opportunities are

Why executing a VSM?

!! It helps us to effectively implement Continuous Improvement by:

!!Giving a “big-picture” view of the current-state value stream and it’s sources of waste

!!A “Big-Picture” Scope Is Needed To Avoid Selective Implementation Resulting In Isolated Efforts Within a Sub-Optimal Process

!!VSM is extremely straight forward

!!Opportunities for flow improvement are obvious

!!Provides a blueprint for the future state

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Benefits of a VSM – the big picture

!!Focus on each product and its value stream rather than the organization

!!Allows Leader to translate Business Strategy into Site deliverables

!!Basis for the Implementation Plan & Budgeting !!Ties together Continuous Improvement techniques

!!Lean !!Six Sigma !!Validation !!Executive Steering Committee

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VSM Introduction

VSM Elements

How to Get Started

Create a current state VSM

Analyzing the VSM

Creating a Future State

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Value Stream Mapping - A Tool

A Process Improvement Tool Identifying “As-Is” Process and Improving by Creating “To-Be” Processes

Current State Future State

Identify “As-Is” Create “To-Be”

The only way to improve is by eliminating waste!

Elements of a VSM Supplier of

samples

Recipient of reports

Cycle Time and Turn Around Time Calculation

Timings per batch of X Process Steps

Information Flow

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Takt Time / Cycle Time / Turn Around Time

Takt Time Cycle Time Turn Around Time

Takt Time (TT)

!! TT = Frequency to produce a quality slide

!!Customer demand = Daily Workload

!! TT = Available Time per Day Customer Demand per day

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Cycle Time (CT)

!!CT = Total Time required to complete the process

!!HOT (Hands On Time)

!!WAT (Walk Away Time)

!!CT = HOT + WAT

Cycle Time vs Takt Time

Cycle Time = What we can do

Takt Time = What we need to do

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Turn Around Time (TAT)

!! Total Process Time including Wait Time

!! TAT = Cycle Time + Wait Time

Takt Time / Cycle Time / Turn Around Time Benefits

!!Baseline for Improvements

!! Future state should reduce gap

!! Focus What / Where to Improve

!!Re-calculate and Update when Process Improvements are implemented

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VSM Introduction

VSM Elements

How to Get Started

Create a current state VSM

Analyzing the VSM

Creating a Future State

How to Get Started: Chartering the Project or VSM

!! If you don’t put what you are doing in writing, you will probably let the project slide and grow to the point that it is unmanageable.

!!A charter scopes the project !!A charter defines who you need to be on the team

!!When you will start

!!When you will finish

!!What you will accomplish

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Where Can You Engage?

!! Begin by Mapping a Single Process Within a Department or Business Unit

!! Target Processes That Will Big Yield Potential / Opportunities

!!Obtain Necessary Commitment Of Resources

!!Start At The End Of The Process And Move Upstream

!!Define Metrics To Measure Progress

!!Refine The Future State Value Stream Map As Necessary

!!Expand the Mapping to Include Suppliers and Customers

How to Begin

!! There are multiple tools that can be used to document a VSM !! It is important that you use a tool set that will work for you, and

if you are involving others that it is simple enough for them to follow

!! If you don’t understand the tool practice it first !!Never use an unknown tool; you will waste your time and

time of the team

!! My suggestion is to use a roll of brown paper or a very large white board, or a wall (at least 10 feet long)

!! The use of templates and sticky notes can help expedite the process.

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Electronic Version of Value Stream Mapping

!!Visio is an excellent tool to do Value Stream Mapping

in.

!! There are program add-on’s that are specifically engineered for Value Stream Mapping as well as creating Spaghetti Diagrams.

Examples of Icons to Use on Brown Paper or a White Board (or Even a Wall) !! By utilizing VSM Cut-Out Ready Icons we can cut out the

icons and use them to create the VSM without fear of erasing or un-gluing etc.

!! These are the same icons you will see in “Learning to See - value stream mapping to add value and eliminate muda” by Mike Rother and John Shook !!Available though Lean Enterprise Institute (www.lean.org)

and Amazon.com !! Once completed, it can be glued or taped down to make a

record of the work. !! Use larger sized Post-It–Notes with lines to form the process

boxes.

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VSM Introduction

VSM Elements

How to Get Started

Create a current state VSM

Analyzing the VSM

Creating a Future State

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VSM - is teamwork

!! Assign roles for observation !! One person who asks questions !! Tracing Walking Patterns !! Recording Time !! Recording Process Steps and Information Flow !! Resording Waste

!! Inform employees what this process observation is about

!! Ensure the process can be observed that day

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VSM - Lets Practice!

!! Split into groups

!! Listen to your “storytellers” process

!! Record the process in a VSM on the flipchart

!! Identify “wastes”

!! Present to the group

Duration 45 min

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VSM Introduction

VSM Elements

How to Get Started

Create a current state VSM

Analyzing the VSM

Creating a Future State

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Objective for Every Value Stream

!!Correct specification of value

!!Elimination of wasteful steps

!! “Flow where you can”

!! “Pull where you can’t”

!!Management toward perfection

Example “Waste”

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Overproduction Producing too much or too soon – unnecessary testing

Transportation Any unnecessary movement of materials

Inventory Any more than the minimum required to get the job done

Waiting Waiting on parts or

information

Processing Poor designed processes Over-handling due to defects

Rework/Defects Any repair, defect or

rework

Motion Any motion of the employee that does not add value

Intellect Any failure to fully utilize the time and talents of people

Example: Current-State Value Stream

Too many manual checklists

Backlog at Data Entry

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VSM Introduction

VSM Elements

How to Get Started

Create a current state VSM

Analyzing the VSM

Creating a Future State

Lean Thinking

!! Focus on each product and its value stream rather than the organization, it’s assets, and technologies

!!Ask which activities are waste and which truly create

value

!! Then enhance the value & eliminate the waste!

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How to Create a Future State VSM

!!What Do I Do Next?

!!Identify Opportunities

!!Review “As Is” with all Stakeholders !!Develop Implementation Plan

!!Aggressively follow up on implementation plan next steps

!!Utilize all Continuous Improvement Tools

!!Tie VSM to Business Objectives

Questions for the Future

!!Ask why do we do each step and every step !!Do each of the steps create waste based on their

order?

!!Can the order of the steps be changed? !!Because the process has been performed for so long,

are there any assumptions that may not be accurate? !!Investigate!!

!!Are the current controls suitable for the process?

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Questions for the Future

!!Which non-value added steps can be removed from the process?

!!What does the customer really need as an output? !!Which steps create value for the customer? !!Are there any steps that are labeled “Value” that we

can combine? !!What kind of metrics are we going to ensure that the

new process is working?

Example: Future-State Value Stream

Data Entry at clinicians office eliminates

backlog

All materials barcoded and scanned for tracking purposes – eliminates manual checklists

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Breakthrough Thinking Needed

“The Problems That Exist in the World Cannot Be Solved by the Level of Thinking

That Created Them”

-Albert Einstein

QUESTIONS ?

Katja_Lehmann@bd.com

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