Value Stream Mapping (VSM)

1 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Our Aim Educate you in the use of Value Stream Mapping to help identify & eliminate waste in your organisations. Agenda
Continuous Improvement Introduction Toast Video (Part 1)

What is a VSM and why do them?

VSM Hands on exercise Toast Video (Part 2) Final Thoughts & Questions

2 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Continuous Improvement Tree

Savings

Six Sigma

Dont know solution Problem is with variation / Defects Use DMAIC/DMADV to solve

Time frame 6 Months

Savings

Lean

Problem is with cost / flow /inventory Variety of simple tools

Time frame 1-2 Months

Savings

Just Do It (JDI)

Solution is known

Timeframe < 1 Week

3 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011 Global leaders in sleep and respiratory medicine

What is Value?
Value is what the customer wants, when they want it and in the expected quantity and quality Only a small fraction of total time & effort in an organisation actually adds value for the end customer
4 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011 Global leaders in sleep and respiratory medicine

What is Waste?
Waste = Any activity that absorbs resources but doesnt create value

5 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Examples of Waste

Over-Production

Transportation

Waiting

Over-Processing

6 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Examples of Waste

Inventory

Motion

Defective Product

Latent Talent

7 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

What Is Flow?
The product must move along the process without interruption Constraints to flow Process silos - batch production Bottlenecks in the process Machine downtime and set-up time Untidiness - no standardisation Fire-fighting and expediting Erratic fluctuations in demand Unsynchronised activities
8 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011 Global leaders in sleep and respiratory medicine

Key Improvement Principles

Understand & Specify value in the eyes of the

. customer

Eliminate waste and variation

Make value flow at pull of the customer

Involve, Align & Empower Employees

Continuously improve knowledge in pursuit of perfection
9 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011 Global leaders in sleep and respiratory medicine

Example of Improvement Tool: Value Stream Map (VSM)

VSM
10 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011 Global leaders in sleep and respiratory medicine

Toast Video
(Part 1)

11 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

What is a Value Stream Map?

Value Stream = The entire set of activities required to design, manufacture and deliver product to the customer. Remember! Value is what the customer wants, when they want it in the expected quantity and quality

12 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Why do a Value Stream Map?

Purposes of a Value Stream Map Helps you to visualise flow Helps you see waste & sources of waste Provides a common language for evaluating processes Focuses on customer requirements Helps identify problems that have biggest impact

Significant Few vs Trivial Many

Forms the basis of an implementation plan

Without implemented actions - IT IS ALL WASTE!

13 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011 Global leaders in sleep and respiratory medicine

6 Steps to Running Your Own VSM

14 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Step 1 - Pre-work

15 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Step 2 - Map Current State

16 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Step 3 - Capture VSM Metrics

17 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

VSM Metrics
1. Process Time (P/T): Time spent actually performing the work of the process (step), e.g., hands on time, touch time. 2. Lead Time (L/T): - The average time it takes for one unit to go through the entire process - from start to finish. L/T = P/T + D/T.

3. Percent Complete & Accurate (%CA): Percentage of the time the target is hit coming into a process (step) or flowing to the customer. 4. Who (W): Person or System responsible for the process step.

18 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Step 4 - Chunking

19 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Step 5 - Action Plan & Future State

20 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

What is a Lean Value Stream?

Value
from the perspective of the customer

Flow
No waiting No rework Information available

&
Work
Standardized Built in quality

Managing, Improving & Learning

Milestones and Checkpoints Learning embedded

Global leaders in sleep and respiratory medicine

Step 6 - Implementation

How to get the most out of your VSM?

Just do it! The best way to learn is by doing it, and its easy
See the back of your handout for resources to help you
22 Supplier Training at ResMed (STAR Program) ResMed 12-13 April 2011 Global leaders in sleep and respiratory medicine

Toast Video
(Part 2)

23 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine

Questions?

24 Supplier Training at ResMed (STAR Program)

ResMed

12-13 April 2011

Global leaders in sleep and respiratory medicine