Value Stream Mapping

1. Value Stream Mapping Sustainable Operations Professor Mellie Pullman

2. What’s in it for you? • A significant tool for improving any process, • Key tool for prototyping an idea before going into action • Designing a new operation, examining needed resource inputs (information, people, materials) • Relevant for existing operation or new operation • Evaluating each step to see if is adding value or generating waste • Determining the costs of inputs and outputs at each step • Puts new eyes on the process when you walk through and document through your map

3. Value Stream Mapping & Analysis • Purpose: to describe a process visually to find ways of improving the current process. • Find repetitive operations • Identify potential bottlenecks • Describe directions and distances of flows (people, material and information) • Look at resource use and minimums • Create better value & reduce waste

4. Detailed Process Map Identifies the specific activities that make up the process. Basic steps are: Identify the entity that will serve as your focal point: • Customer? • Order, item, proposal, event package, or similar concept that passes through a series of process steps. Identify clear boundaries, starting and ending points, and lines of demarcation between customer, order, and other relevant information flows. Keep it simple • Does this detail add any insight? • Do we need to map every exception condition?

5. Typical Mapping Symbols or Operation (task or work activity) Inspection Decision point (typically requires a “yes” or “no”) Document or order created Delay Storage Transportation: Move Materials, customers or employees

6. Other Value-stream Map symbols Identifies improvement opportunity Truck Shipment External Source (suppliers & Customers) Process Process Descriptor Inputs Outputs

7. Map Example: Lean & CleanFinding the current state of resource use and plan for reducing it • Green Suppliers want to understand their resource and toxic material use versus the minimum required at each process (currently done at sustainably focused companies like New Belgium Brewery)

8. 1) Start Big: Look at the major process steps

9. 2. Identify a key resource that you would like to track (water, energy, GGE or carbon, labor, local economy contribution, value-add time) Comparing Usage to Needs Visually (bottom of map)

10. Example: Water used versus needed

11. 3. Focus on an opportunity area for improvement or Innovation for new concept developers

12. 4. Create a process map focusing specifically on that opportunity area

13. 5. Visualize an Improve “Future State” for the opportunity areas (brainstorm about how to do things differently)

14. Value add Lens:Distinguish between Value-Add and Non Value-Add Process Step • Value Add (VA) • Business Non-value-add (BNVA) • Non-value-add (NVA)

15. Value Add Steps • Work that contributes to what your customers want out of your product or service • Cooking a meal • Measuring & Cutting Material • A more sustainable and better life • Does it meet these criteria? • Adds a desired function, form, or feature to the product or service • Enables a competitive advantage (reduced price, faster delivery, socially sustainable) • Includes an activity that a customer would be willing to pay for or would not prefer our competitors if he/she knew we did this task and they did not.

16. Business Non-Value Add • Activities that your customer doesn’t want to pay for (it does not increase value in their eyes) but are required for some reason • Accounting, legal, regulatory • Is task required by law or regulation? • Does task reduce financial/liability risk? • Does task support financial requirements? • Does process break down if task is removed?

17. Non-value Add • Work that does not add value in the eyes of the customer and they would not want to pay for it (nor is it required for BNVA) • Rework, multiple signatures & copies, counting, handling, inspecting, set-up, downtime, transporting, moving, delaying, storage. • Environmental damage • Social injustice

18. Linking Processes to Value with Metrics (i.e. measures A and B) • Possible Measures or Metrics: • Link desired customer value to process • Time (measure distance traveled and task time) • Cost • Quality • Flexibility • Sustainability metrics • Set standards • Guide design of new or redesign of existing process

19. Including Time & Quality Measures

20. Mapping Exercise can lead to Potential Changes: • Raw materials • Product (output) design • Job design • Processing steps used • Management control information • Equipment or tools • Suppliers • i.e. Anything but customers may be changed unless they do not add value!!

21. Questions to ask to improve process • Whatdoes thecustomer need?, operations are necessary? Can some operations be eliminated, combined, or simplified? Can the product be redesigned to address an issue?... • Whois performing the job? Can the operation be redesigned to use labor better? Can operations be combined to enrich jobs? …. • Whereis each operation conducted? Can layout be improved? …. • Whenis each operation performed? Is there excessive delay or storage? Are some operations creating bottlenecks? ….. • Howis the operation done? Can better methods, procedures, or equipment be used? Can we reduce resources and toxic activity?