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<strong>Value</strong> <strong>St</strong>ream <strong>Mapping</strong><br />

© 2007, Woodside Quality Solutions


What Will We Cover<br />

What is <strong>Value</strong><br />

What is A <strong>Value</strong> <strong>St</strong>ream<br />

Identifying i Waste<br />

<strong>Mapping</strong> the <strong>Value</strong> <strong>St</strong>ream; “Learning to<br />

See”<br />

VSM at the Process Level: Process<br />

Analysis<br />

© 2007, Woodside Quality Solutions


What is “<strong>Value</strong>”<br />

<strong>Value</strong> = Delta between<br />

Raw Material and Sold<br />

Product<br />

What the customer<br />

pays for<br />

© 2007, Woodside Quality Solutions


What is “<strong>Value</strong>”<br />

<strong>Value</strong> = Delta between<br />

Raw Material and Sold<br />

Product<br />

What the customer<br />

pays for<br />

© 2007, Woodside Quality Solutions


First Pass/Final Yield<br />

Rework<br />

30 pieces go<br />

to rework<br />

Machining<br />

100 pieces<br />

produced<br />

d<br />

Inspection<br />

10 pieces<br />

scrapped<br />

Scrap<br />

60 pieces are<br />

“good”<br />

Final<br />

Inspection<br />

Final Inspection<br />

records 90<br />

“good” units<br />

First Pass Yield = 60%<br />

Final Yield = 90 %<br />

So, how many pieces do we have to produce to make $200<br />

© V-21<br />

2007, Woodside Quality Solutions


<strong>Value</strong>: Who Cares<br />

b<br />

Loyalty<br />

a<br />

c<br />

Satisfaction<br />

© 2007, Woodside Quality Solutions


Shewhart - Three Types of<br />

Quality<br />

1. That quality which characterizes a thing<br />

itself independent of all other things and<br />

of human volition and interest.<br />

t<br />

2. That quality which characterizes a thing A in its<br />

relation to another thing B as a part of a whole and<br />

independent of human volition and interest.<br />

3. That quality which makes a thing wantable by some<br />

one or more persons.<br />

Any of these can represent value; only type three<br />

represents the customer’s idea of value!<br />

© I-97<br />

2007, Woodside Quality Solutions


Kano Model<br />

Customer<br />

Satisfied<br />

Attractive<br />

One-Dimensional<br />

Product<br />

Dysfunctional<br />

Indifferent<br />

Must-Be<br />

Product Fully<br />

Functional<br />

Reverse<br />

© 2007, Woodside Quality Solutions<br />

Customer<br />

Dissatisfied<br />

8


Creating <strong>Value</strong>: The<br />

Systems Approach<br />

© 2007, Woodside Quality Solutions


© 2007, Woodside Quality Solutions<br />

Properties of A System<br />

The essential properties p of a system<br />

taken as a whole derive from the<br />

interactions of its parts, not their<br />

actions taken separately. Therefore,<br />

when a system is taken apart it loses<br />

its essential properties. Because of<br />

this — and this is the critical point —<br />

a system is a whole that cannot be<br />

understood by analysis.<br />

- Russell Ackoff


One “Systems” View<br />

Top<br />

Management<br />

Middle<br />

Management<br />

Lower<br />

Management<br />

Supervisors,<br />

and so forth<br />

An 1840s innovation for companies: the basic hierarchical structure of business enterprise.<br />

The Visible Hand, Alfred D. Chandler, Jr.<br />

© 2007, Woodside Quality Solutions


The System<br />

A<br />

A∩B<br />

B<br />

A∩B∩C<br />

A∩B∩D<br />

A∩C<br />

A∩B∩C∩D<br />

B∩D<br />

A∩C∩D<br />

B∩C∩D<br />

C<br />

C∩D<br />

D<br />

© 2007, Woodside Quality Solutions


Going Horizontal – The Process<br />

Functions Drive<br />

Organization<br />

View<br />

Sales and Marketing<br />

Informatio on Systems<br />

Opera ations<br />

Fina ance<br />

Customer<br />

Processes Identified But<br />

Functions <strong>St</strong>ill Prevail<br />

Sale es and Marketi ing<br />

Info ormation System ms<br />

Operations<br />

Finance<br />

Customer<br />

Processes Drive<br />

Organization<br />

New Product Development<br />

Customer Support<br />

Customer<br />

Planning<br />

© 2007, Woodside Quality Solutions


Process View of the<br />

Organization as a System<br />

STAKEHOLDERS<br />

Setting<br />

Direction<br />

Seeking Future<br />

Opportunities<br />

Reviewing<br />

Organizational<br />

Performance<br />

Deploying<br />

Policy<br />

SUPPLIER ERS<br />

Sales<br />

LEADERSHIP PROCESSES<br />

Relationship<br />

Management<br />

Portfolio<br />

Management<br />

VALUE STREAM PROCESSES<br />

Payment<br />

CUSTOME ERS<br />

Hiring New<br />

People<br />

Network<br />

Administration<br />

Payroll<br />

Benefits<br />

Management<br />

SUPPORT OR ENABLING PROCESSES<br />

© 2007, Woodside Quality Solutions


Production<br />

Control<br />

Daily Order<br />

20<br />

20<br />

20<br />

OXOX<br />

<strong>Value</strong> <strong>St</strong>ream<br />

<strong>Mapping</strong> –<br />

Learning to See<br />

the Whole<br />

20<br />

Weld & Assy<br />

L<br />

R<br />

Shipping<br />

<strong>St</strong>aging<br />

2x Daily<br />

© 2007, Woodside Quality Solutions


Rother &<br />

Shook<br />

© 2007, Woodside Quality Solutions


<strong>Value</strong> <strong>St</strong>ream <strong>Mapping</strong> –<br />

Concepts<br />

<strong>Value</strong> <strong>St</strong>ream <strong>Mapping</strong> as a Lean tool<br />

<strong>Value</strong> <strong>St</strong>ream Map – big picture of the flow of<br />

value through a value stream process.<br />

Primary purpose: channeling the flow<br />

<strong>Mapping</strong> begins door-to<br />

to-door door, includes customer<br />

and supplier<br />

Map both information o and material a flow<br />

<strong>Value</strong> <strong>St</strong>ream Manager<br />

Current and Future-<strong>St</strong>ate <strong>Mapping</strong><br />

© 2007, Woodside Quality Solutions


Systems, Processes and the Lean<br />

Enterprise<br />

Toyota Production System, or more generically, Lean<br />

Manufacturing<br />

The primary thrust of Lean is a relentless elimination of<br />

all waste from the system.<br />

The seeds of lean manufacturing were sewn in 1937<br />

• Taiichi Ohno, manager at the weaving plant of Toyoda Spinning<br />

and Weaving<br />

• Heard that t a German worker produced d three times as much as a<br />

Japanese worker, and an American worker produced three times<br />

as much as a German worker<br />

• Was surprised that one American worker could do as much as<br />

nine Japanese workers.<br />

• Realized that the only explanation must be Japanese processes<br />

wasting something. If they could reduce that waste, productivity<br />

should rise by a factor of at least nine. . He began a relentless<br />

pursuit of that waste.<br />

© 2007, Woodside Quality Solutions


General Lean Principles<br />

Workplace Safety, Order and<br />

Cleanliness (5S)<br />

Just-in<br />

in-Time (JIT) Production<br />

Six Sigma Quality<br />

Empowered Teams<br />

Visual Management<br />

Pursuit of Perfection<br />

--Lean Transformation, , Hoisington et al.<br />

© 2007, Woodside Quality Solutions


Eight<br />

Wastes<br />

Eight Wastes Manufacturing Processes Transactional Processes<br />

Overproduction Building WIP, batching, excessive<br />

safety stock, lack of balance<br />

Reports not read, data generated<br />

and not used<br />

Waiting<br />

Materials or finished goods sitting<br />

anywhere; distribution centers;<br />

people waiting for decisions<br />

i<br />

Documents in “in-baskets;”<br />

waiting for documents to arrive or<br />

decisions i to be made; computer<br />

crashes<br />

Transport<br />

Movement of materials or finished Movement of paper documents<br />

goods; long supply lines<br />

Overprocessing Rework, “gold-plating,” audits, Checking and rechecking<br />

inspections<br />

documents, reprinting documents<br />

after every error is found, printing<br />

electronic documents<br />

Inventories WIP, excessive safety stock, cars Documents in out-baskets, emails<br />

sitting on dealer lots, materials printed and filed, hard drives full<br />

sitting in distribution centers of data never used, unused<br />

resources (including people)<br />

Wasted Movement<br />

Production of<br />

Defectives<br />

Intellect<br />

Rework, wasted steps taken in a<br />

process<br />

Making mistakes or producing<br />

materials out of specification<br />

Electronic docs returned for<br />

changes more efficiently made in<br />

real-time by the auditor, twice<br />

touching a document, document<br />

corrections, wasted steps taken in a<br />

process, returned mail<br />

Spelling errors, address errors,<br />

spell-checking errors, amount<br />

errors<br />

Using unqualified people on jobs requiring qualification; using qualified<br />

or certified people on jobs not requiring certification<br />

© 2007, Woodside Quality Solutions


Lean Actions<br />

Identify <strong>Value</strong> – what is value, and who defines it It is<br />

vital to understand d what value we produce, from the<br />

customer’s point of view.<br />

Map the value stream – which processes produce the<br />

value We need to identify, end-to<br />

to-end, those process<br />

steps that contribute to value, and understand each<br />

step’s contribution to that value<br />

Channel the <strong>Value</strong> <strong>St</strong>ream – many value streams<br />

meander like an old river, slowly moving the water<br />

downstream.<br />

• Lean demands that we channel this stream, make it a straight,<br />

uninterrupted flow from supplier to customer with no stops or<br />

detours on the journey. Product flows in single pieces, rather<br />

than batches, eliminating or minimizing Work in Process<br />

inventory (WIP).<br />

© 2007, Woodside Quality Solutions


Identifying the <strong>Value</strong> <strong>St</strong>ream<br />

<strong>Value</strong> <strong>St</strong>reams should be constructed for<br />

each major product or process<br />

<strong>Value</strong> <strong>St</strong>ream analysis looks at each<br />

process step in terms of these criteria:<br />

• It adds value as perceived by the customer<br />

• It adds no value, but is required by the<br />

process<br />

• It adds no value, and can be eliminated<br />

© 2007, Woodside Quality Solutions


<strong>Value</strong> <strong>St</strong>ream <strong>Mapping</strong> -<br />

Definitions<br />

Cycle Time: time to cycle through a step; the time<br />

between one part coming off to the next part coming off<br />

Changeover Time: time to change a setup<br />

EPE (every part every___); production batch size<br />

measured in time…how frequently a process changes<br />

over to produce all part variations. Goal: at least “every<br />

part every day.<br />

”<br />

Takt time: production “beat” synchronized to customer<br />

demand; Available work time (sec)/customer demand<br />

rate<br />

Lead time: time one piece to move all the way through<br />

the value stream<br />

© 2007, Woodside Quality Solutions


<strong>St</strong>eps for documenting the value<br />

stream mapping<br />

Perform a walk through of the process, recording<br />

each step.<br />

<strong>St</strong>art from the shipping dock and work back<br />

through the process to the receiving dock.<br />

Make a note of machine times, cycle times,<br />

operators, changeover times, WIP, available<br />

time, scrap rate, machine reliability, etc.<br />

Record current status on 11 x 17 inch wide<br />

paper.<br />

Planning: Develop a future state map.<br />

© 2007, Woodside Quality Solutions


Define Product Family<br />

Map one product family.<br />

Product family: a group of products that<br />

pass through similar processing steps and<br />

over common equipment.<br />

AV <strong>Value</strong> <strong>St</strong>ream Manager should ldb<br />

be<br />

identified for each product family<br />

© 2007, Woodside Quality Solutions


Current <strong>St</strong>ate Map<br />

<strong>St</strong>art with a quick orientation of process routes<br />

Personally follow the material and information flows<br />

Map the process with a backward flow, from shipping<br />

dock to the beginning<br />

g<br />

Collect the data personally, do not trust the engineering<br />

standard times<br />

Map the whole stream<br />

Create a pencil drawing of the value stream<br />

Some of the typical process data includes: cycle time<br />

(CT), changeover time (COT), uptime (UT), number of<br />

operators, pack size, working time (minus breaks, in<br />

seconds), WIP, and scrap rate. An analysis of the<br />

current status can provide the amount of lead and value-<br />

added time.<br />

© 2007, Woodside Quality Solutions


Future <strong>St</strong>ate Map<br />

Questions to ask when developing a future state map<br />

are:<br />

• What is the required takt time<br />

• Do manufactured items move directly to shipping<br />

• Are items sent to a finished goods supermarket for<br />

customer pull<br />

• Is continuous flow processing applicable<br />

• Where is the pacemaker process (This process controls<br />

the tempo of the value stream.)<br />

• Can the process be leveled<br />

• What is the increment of work to be released for kanban<br />

use<br />

• What process improvements can be used: changeover,<br />

machine uptime, kaizen events, SMED<br />

© 2007, Woodside Quality Solutions


Some <strong>Value</strong> <strong>St</strong>ream <strong>Mapping</strong><br />

Symbols<br />

OXOX<br />

Load Leveling<br />

I<br />

Inventory<br />

Text<br />

Manufacturing Process<br />

500 Pieces<br />

1 Day<br />

Outside Sources<br />

Text<br />

Truck Shipment<br />

© 2007, Woodside Quality Solutions


Some <strong>Value</strong> <strong>St</strong>ream <strong>Mapping</strong><br />

Symbols<br />

Kanban Post<br />

Production<br />

Kanban<br />

Kanban Arriving<br />

In Batches<br />

Withdrawal<br />

Kanban<br />

Finished Goods to<br />

Customer<br />

PUSH movement<br />

© 2007, Woodside Quality Solutions


<strong>Value</strong> <strong>St</strong>ream <strong>Mapping</strong> Symbols<br />

(cont’d)<br />

Manual Info Flow<br />

Electronic Info Flow<br />

Safety <strong>St</strong>ock<br />

C/T = 30 Sec<br />

C/O= 15 Min<br />

Data Box<br />

Supermarket<br />

Text<br />

Kaizen Opportunity<br />

Operator<br />

© 2007, Woodside Quality Solutions


Polymeric<br />

55-Gal. Drums<br />

of Pellets<br />

Every<br />

other<br />

week<br />

I<br />

Coils<br />

8 Days<br />

Weekly<br />

E-mail<br />

Laser Weld<br />

1<br />

Redi-Coil<br />

<strong>St</strong>eel<br />

Wire/<strong>St</strong>amped<br />

Electrodes<br />

I<br />

Every<br />

other<br />

week<br />

2-month<br />

forecast<br />

Weekly<br />

E-mail<br />

2-month<br />

forecast<br />

Production<br />

Control<br />

MRP System<br />

Weekly Schedule<br />

Daily<br />

Order<br />

30/60/90-day<br />

forecasts<br />

Current <strong>St</strong>ate<br />

Map<br />

<strong>St</strong>ampings<br />

8 Days Shipping<br />

Schedule<br />

Surgistikits<br />

26,400 pcs/mo.<br />

20 parts per Tray.<br />

2 Shifts<br />

Every<br />

other<br />

day<br />

C/T = 47 Sec<br />

C/O= N/A<br />

Uptime: 97%<br />

25,200 Sec avail.<br />

I<br />

Pellets<br />

10 Days<br />

Jacket Mold<br />

Sleeve Extr.<br />

Assembly<br />

1 I<br />

1<br />

I<br />

1<br />

I<br />

1<br />

532 Pieces<br />

428 Pieces<br />

512 Pieces<br />

potting<br />

I<br />

120 Pieces<br />

1<br />

Curing<br />

I<br />

611 Pieces<br />

Shipping<br />

8 Days<br />

C/T = 16 Sec<br />

C/O= 12 Min<br />

Uptime = 92%<br />

25,200 Sec avail.<br />

47 Seconds<br />

1.3 Days<br />

C/T = 14 Sec<br />

C/O= 15 Min<br />

Uptime = 90%<br />

25,200 sec avail<br />

EPE= 2 Days<br />

5 Seconds<br />

© 2007, Woodside Quality Solutions<br />

1.05 Days<br />

C/T = 61 Sec<br />

C/O= N/A<br />

Uptime = 100%<br />

25,200 sec avail.<br />

61 Seconds<br />

1.28 Days<br />

C/T = 26 Sec<br />

C/O= 3 Min<br />

Uptime = 95%<br />

25,200 sec avail.<br />

26 Seconds<br />

.3 Days<br />

C/T = 5400 Secs<br />

C/O= 0<br />

Uptime = 100%<br />

Capacity: 100<br />

5400 Secs<br />

1.5 Days<br />

Production<br />

= 13.46 Days<br />

Lead Time<br />

Processing<br />

= 5539 Secs<br />

Time


Considerations for Future <strong>St</strong>ate<br />

Map<br />

Takt Time = 25200 sec/400 units = 63 sec/unit<br />

Kaizen events combined Molding, Extrusion and<br />

Laser Welding ops into one cell with two<br />

operators<br />

Kaizen combined potting and assembly in one<br />

cell, two operators<br />

Characterized and re-configured oven to hold 10<br />

trays of 20. Add one/Remove one every 21<br />

minutes. Changed effective ect e cycle time from 5400<br />

secs to 1260 seconds/batch.<br />

Went to Kanban scheduling<br />

© 2007, Woodside Quality Solutions


Polymeric<br />

Bins<br />

of Pellets<br />

Daily<br />

Run<br />

Daily<br />

E-mail<br />

Redi-Coil<br />

<strong>St</strong>eel<br />

Wire/<strong>St</strong>amped<br />

Electrodes<br />

Daily<br />

Run<br />

2-month<br />

forecast<br />

Daily<br />

E-mail<br />

2-month<br />

forecast<br />

Production<br />

Control<br />

Daily<br />

Order<br />

Future <strong>St</strong>ate<br />

Map<br />

Daily<br />

Order<br />

20<br />

20<br />

20<br />

30/60/90-day<br />

forecasts<br />

Surgistikits<br />

26,400 pcs/mo.<br />

20 parts per Tray.<br />

2 Shifts<br />

2x<br />

daily<br />

20<br />

Wire/<br />

<strong>St</strong>amped<br />

Electrodes<br />

(at the welder)<br />

Mold Extrude &<br />

Weld<br />

1<br />

Assembly and<br />

Potting<br />

20<br />

20<br />

1 tray every<br />

21 mins.<br />

Curing<br />

20<br />

Shipping<br />

<strong>St</strong>aging<br />

Pellets<br />

(in the mold<br />

hopper)<br />

1 Day<br />

Takt = 63 Sec<br />

C/T= 61 Sec<br />

C/O = 2 min<br />

Uptime = 97%<br />

63 Seconds<br />

© 2007, Woodside Quality Solutions<br />

1.05 Minutes<br />

Takt = 63 Sec<br />

C/T= 59 Sec<br />

C/O = 3 min<br />

Uptime = 96%<br />

59 Seconds<br />

21 Mins<br />

C/T = 5400 Secs<br />

C/O= 0<br />

Uptime = 100%<br />

Capacity: 10 Trays<br />

of 20 parts each<br />

5400 Secs<br />

1 tray every<br />

21 mins.<br />

.5 Days<br />

Production<br />

= 1.62 Days<br />

Lead Time<br />

Processing<br />

= 5522 Secs<br />

Time


Process Analysis<br />

Channeling the <strong>Value</strong> <strong>St</strong>ream at<br />

the Process Level<br />

© 2007, Woodside Quality Solutions


High Level Process Maps<br />

(SIPOC Diagram)<br />

Identifies and displays the major activities,<br />

boundaries, and customers of the process<br />

being addressed by the project<br />

A process is:<br />

• A logical l series of related transactions ti that<br />

t<br />

converts inputs to results or outputs.<br />

A process map (flowchart) is:<br />

• A visual display, using common symbols and<br />

format, of a process.<br />

© 80<br />

2007, Woodside Quality Solutions


Process Maps:<br />

Enable people to gain a common visual understanding of<br />

how work gets done.<br />

Provide an objective perspective of how work really gets<br />

done.<br />

Identify rework loops and redundancies.<br />

Provide insight into bottlenecks, cycle times, waste, and<br />

other non-value added activities.<br />

Reveal inconsistencies between work teams.<br />

Help identify when and where to collect data.<br />

Enable both broad and deep level of understanding of<br />

the process through flexibility in depicting level of detail.<br />

Are extremely useful as training and orientation tools.<br />

© 80<br />

2007, Woodside Quality Solutions


Levels of a Process<br />

Business<br />

Process<br />

(“<strong>St</strong>rategic”)<br />

Business<br />

Development<br />

Business<br />

Processes<br />

Sales Underwriting Contracting Customer Service<br />

SIPOC Terms Docs Neg Close<br />

S<br />

Underwriters<br />

C<br />

(ext.) Customers<br />

(int.) Cust. Service Dept.<br />

Detailed<br />

Subprocess<br />

Map<br />

Tasks<br />

Procedures<br />

© 82<br />

2007, Woodside Quality Solutions


Symbols Used in Flowcharting<br />

Activity<br />

Decision<br />

Unknown<br />

Document<br />

<strong>St</strong>art/<strong>St</strong>op<br />

Symbol Guidance:<br />

Connector<br />

• Activity - A step or task within the process.<br />

• Decision - A question that signals alternative paths in the<br />

process.<br />

• Unknown - An unknown or unclear step in the process.<br />

• Document - Paperwork that t is generated in the process.<br />

• <strong>St</strong>art/<strong>St</strong>op - Begins and ends a discrete process<br />

• Connection – Used to connect paths between pages in a<br />

flowchart. This symbol is sometimes used in integrated<br />

flowcharting to indicate information shared between process<br />

players.<br />

© 87<br />

2007, Woodside Quality Solutions


Suppliers Inputs Process Outputs Customers<br />

ACME Foundries Blanks Basketized Parts Grinding Operation<br />

Obtain Bearing Race<br />

Receiving<br />

Baskets<br />

Blanks<br />

Detailed<br />

SIPOC<br />

SIPOC<br />

Interior<br />

Parts Handlers Basketized Parts Blanks with IDs Ground Exterior Diameter Op<br />

Grind Interior<br />

Ace Industrial Machines Grinders Grinder Mud Waste Removal<br />

Diameters<br />

Dent Chemical Coolant<br />

Core Carborundum Wheels<br />

Diameter Op Blanks with IDs Ground Blanks with ODs Ground Heat-Treat<br />

Ace Industrial Machines Grinders Grind Outer Diameters Grinder Mud Waste Removal<br />

Dent Chemical Coolant<br />

Core Carborundum Wheels<br />

Outer Diameter Op Ground Races Heat-Treated Races Washing Operation<br />

ConMach<br />

Heat-Treat Oven<br />

Heat-Treat<br />

CitiGas<br />

Propane<br />

Heat-Treat t Heat-Treated t Races Finished i Races Assembly Parts<br />

Ace Industrial Machines Washer<br />

Wash<br />

Handlers<br />

Dent Chemical Cleaning Solutions<br />

Washing Operation Finished Races Parts slotted to Assemblers<br />

Bearings Production Finished Bearings Obtain Bearings<br />

Assembly<br />

Parts Handlers Races Finished Assemblies Testing<br />

Bearings Assemble Scrap Salvage Dept<br />

Petrochem United Grease<br />

© 90<br />

2007, Woodside Quality Solutions<br />

Assembly Dept Finished Assemblies Tested Assemblies Shipping Dept<br />

Giant Gage Co Test Equipment Test<br />

Consolidated Auto<br />

Rejected Assemblies Salvage Dept


Suppliers Inputs Process Outputs Customers<br />

High-<br />

ACME Foundries Bearing Race Blanks Finished Bearing Shipping Dept<br />

Obtain Bearing Race<br />

Ace Industrial Machines Machines Assemblies Consolidated Auto<br />

Blanks<br />

ConMach<br />

Heat<br />

Dent Chemicals Bearings<br />

Solutions<br />

Grind Interior<br />

Diameters<br />

Level<br />

SIPOC<br />

Grind Outer Diameters<br />

Heat-Treat<br />

Wash<br />

Obtain Bearings<br />

Assemble<br />

Test<br />

© 2007, Woodside Quality Solutions


Hints for creating a high-level<br />

linear process map<br />

Keep it simple — include major steps only<br />

(usually 4 to 8 total)<br />

Use Post-it notes on a flipchart or white<br />

board to enable you to easily adjust the<br />

steps as you develop the map<br />

Begin by defining the first and last steps,<br />

then fill in the middle<br />

Depict the process “as-is”, not how you<br />

would like it to be - you are trying to<br />

understand the current state of the<br />

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Viewing the Process<br />

Flow in Detail<br />

Integrated Process <strong>Mapping</strong><br />

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Levels of a Process<br />

Business<br />

Process<br />

(“<strong>St</strong>rategic”)<br />

Business<br />

Development<br />

Business<br />

Processes<br />

Sales Underwriting Contracting Customer Service<br />

SIPOC Terms Docs Neg Close<br />

S<br />

Underwriters<br />

C<br />

(ext.) Customers<br />

(int.) Cust. Service Dept.<br />

Detailed<br />

Sub process<br />

Map<br />

Tasks<br />

Procedures<br />

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Integrated Process <strong>Mapping</strong> Makes<br />

Sense of Processes that<br />

are large and complex;<br />

cross many functional boundaries;<br />

involve many members in many<br />

locations; and<br />

cover areas in which h people may<br />

have little knowledge.<br />

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Questions that integrated<br />

process maps can address:<br />

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Is there a particular part of the process which is<br />

known to be troublesome<br />

Where do most of the errors occur (as opposed to<br />

where do people fix them)<br />

Will improvements to the initial steps of the<br />

process reduce the number of problems<br />

downstream<br />

At what points in the process should data be<br />

collected<br />

Where are the obvious opportunities for<br />

streamlining the process<br />

What is the cycle time for a step<br />

What is the lead time through the process


Tips for Creating Integrated FlowCharts<br />

BE THE BALL! You must go to the process and walk it! You can’t get the<br />

detail you need in a team meeting room.<br />

Be sure naturally “paired” activities are complete. If someone throws a ball,<br />

it needs to be caught somewhere, or it becomes a confusing and frustrating<br />

“loose-end,” end,” or even “dead-end” end” for the flowchart.<br />

It is not necessary to capture every detail. A process map is merely a tool<br />

to identify areas in need of improvement.<br />

Do not edit the process as you are charting it! The objective is to illustrate<br />

how things are really being done right now. The ultimate objective is<br />

process improvement and, at this stage, the objective is to establish the<br />

baseline. So don’t try to “fix” it now; that would be premature and will<br />

actually hurt improvements later on.<br />

Always include all “bona fide” players in process reviews and work sessions<br />

to analyze and develop improvement. Remember, unless we are<br />

comprehensive in our analysis, today’s solutions will become tomorrow’s<br />

problems.<br />

Capture quality concerns and problems.<br />

Identify additional inputs, outputs, and data collection points.<br />

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Detailed<br />

Flow Chart<br />

Example<br />

© 2007, Woodside Quality Solutions


Hiring<br />

Hiring Employees<br />

Hiring Mgr<br />

Recruiter HR Mgr HR Admin Applicant<br />

Cycle Time<br />

Example Submit<br />

Requisition 4 Days<br />

Review and<br />

Approve<br />

17 Days<br />

Develop<br />

Recruitment Plan<br />

5 Days<br />

Implement<br />

Recruitment Plan<br />

7 Days<br />

Receive and<br />

Route<br />

Applications<br />

2 Days<br />

Screen and<br />

Select<br />

Candidates<br />

Conduct Phone<br />

Interview<br />

Select and set up<br />

On-site<br />

interviews<br />

Log out Nonviable<br />

Candidates<br />

Log out Nonviable<br />

Candidates<br />

2 Days<br />

5 Days<br />

5 Days<br />

Conduct On-site<br />

Interview<br />

Prepare List of<br />

viable<br />

Candidates<br />

Log out Nonviable<br />

Candidates<br />

8 Days<br />

.5 Days<br />

Screen<br />

Candidate List<br />

Log out Nonviable<br />

Candidates<br />

1 Day<br />

Make Offer<br />

1 Day<br />

Y<br />

N<br />

Negotiations<br />

Needed<br />

Orientation &<br />

Paperwork<br />

3 Days<br />

© 2007, Woodside Quality Solutions<br />

<strong>St</strong>art Work


Process<br />

Analysis<br />

Process Analysis<br />

Impact Look For Possible Actions<br />

• Delays<br />

• Reduce<br />

Time<br />

• Illogical, inefficient<br />

sequence<br />

• Complexity<br />

• Change order<br />

• Simplify or automate<br />

Cost<br />

• Numerous sign-offs<br />

• Duplication of efforts<br />

• Excessive documentation<br />

• Bottlenecks and backlogs<br />

• Eliminate or process<br />

simultaneously<br />

• Eliminate<br />

• Eliminate/streamline<br />

• Collect data<br />

Quality<br />

• Rework/redo cycles<br />

• Unclear lines of<br />

responsibility<br />

• Documentation errors<br />

• Vague customer<br />

requirements<br />

• Prevent errors<br />

• Clarify<br />

• Simplify<br />

• Clarify, define<br />

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Measuring Process Time<br />

1. Flowchart the process<br />

2. Do integrated process map to include all the<br />

process performers<br />

3. Gather and validate time data for each process<br />

step<br />

A. Elapsed time<br />

B. <strong>Value</strong>-adding adding time<br />

C. Non-value-adding adding time<br />

D. <strong>Value</strong>-enabling enabling time<br />

4. Complete the process map using time data<br />

and calculate process efficiency<br />

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The 3% Rule<br />

A key concept in cycle time reduction is<br />

the 3% rule which says that only 3% of the<br />

elapsed time for a process is actually<br />

value-adding. adding. The other 97% of the time<br />

is usually consumed in waiting or other<br />

non-value-adding adding activities.<br />

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Non-<strong>Value</strong> Added Work<br />

Internal Failure<br />

• Rework<br />

• Corrective Action<br />

• Process Failures<br />

External Failure<br />

• Service Recovery<br />

• Product Failure<br />

• Warranty Work<br />

Delay/Waiting<br />

• Backlogs<br />

• Bottlenecks<br />

• Queues<br />

© 2007, Woodside Quality Solutions


Non-<strong>Value</strong> Added Work (cont’d)<br />

Movement<br />

• Physical Transport<br />

• Transmission<br />

Preparation<br />

• Data entry<br />

• Information Retrieval<br />

Control<br />

• Inspection<br />

• Approval<br />

• Compliance<br />

© 2007, Woodside Quality Solutions


Eight<br />

Wastes<br />

Eight Wastes Manufacturing Processes Transactional Processes<br />

Overproduction Building WIP, batching, excessive<br />

safety stock, lack of balance<br />

Reports not read, data generated<br />

and not used<br />

Waiting<br />

Materials or finished goods sitting<br />

anywhere; distribution centers;<br />

people waiting for decisions<br />

i<br />

Documents in “in-baskets;”<br />

waiting for documents to arrive or<br />

decisions i to be made; computer<br />

crashes<br />

Transport<br />

Movement of materials or finished Movement of paper documents<br />

goods; long supply lines<br />

Overprocessing Rework, “gold-plating,” audits, Checking and rechecking<br />

inspections<br />

documents, reprinting documents<br />

after every error is found, printing<br />

electronic documents<br />

Inventories WIP, excessive safety stock, cars Documents in out-baskets, emails<br />

sitting on dealer lots, materials printed and filed, hard drives full<br />

sitting in distribution centers of data never used, unused<br />

resources (including people)<br />

Wasted Movement<br />

Production of<br />

Defectives<br />

Intellect<br />

Rework, wasted steps taken in a<br />

process<br />

Making mistakes or producing<br />

materials out of specification<br />

Electronic docs returned for<br />

changes more efficiently made in<br />

real-time by the auditor, twice<br />

touching a document, document<br />

corrections, wasted steps taken in a<br />

process, returned mail<br />

Spelling errors, address errors,<br />

spell-checking errors, amount<br />

errors<br />

Using unqualified people on jobs requiring qualification; using qualified<br />

or certified people on jobs not requiring certification<br />

© 2007, Woodside Quality Solutions


Employee Interview Process<br />

Process <strong>St</strong>ep<br />

Coordinator<br />

Phone<br />

Confer with<br />

Personal<br />

Interview Manager Interview<br />

Decision ii<br />

Notify<br />

Applicant<br />

Total<br />

%Total<br />

Time(hours) 1 24 .5 24 24 .2 73.7<br />

Non <strong>Value</strong>-Adding<br />

• It Internal lFil Failure .3 .3 .4%<br />

• External Failure 0 0<br />

• Delay/Waiting<br />

• Move<br />

22 20 22 64 87%<br />

• Preparation 1.5 1.5 2%<br />

• Control 1 1 1.4%<br />

<strong>Value</strong>-Adding .2 .5 .5 4 1 .2 6.4 8.7%<br />

<strong>Value</strong>-Enabling .5 .5 .7%<br />

Notes/ Missing Data 2 People<br />

Delays<br />

Common<br />

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© 2007, Woodside Quality Solutions


Reducing Cycle Time<br />

Do tasks in parallel<br />

Find and remove bottlenecks<br />

Minimize handoffs<br />

Move steps in the process closer together<br />

Reduce set up time<br />

Synchronize<br />

Cross train<br />

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Recap<br />

A process is one aspect of a system<br />

Aim of production and service systems:<br />

produce value<br />

Three levels of quality translate value into<br />

production system<br />

<strong>Value</strong> stream processes can be mapped<br />

at several levels<br />

Purpose: Gain Knowledge, Eliminate<br />

Waste.<br />

© 2007, Woodside Quality Solutions


Questions<br />

Contact:<br />

Rip <strong>St</strong>auffer<br />

Woodside Quality Solutions<br />

632 Carver Bluffs Parkway<br />

Carver, MN 55315<br />

Business line: 952-361-5518<br />

Cell: 612-916<br />

916-0197<br />

Email: rip@woodsidequality.com<br />

© 2007, Woodside Quality Solutions

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