Peter Hines

Value Stream Mapping:
Theory & Cases

Professor Peter Hines
Value Stream Mapping
1
Professor Peter Hines, 2005
Lean Enterprise Research Centre

Cardiff Business School
Formed in 1994 by Prof Dan Jones &

Prof Peter Hines
30 staff now
Researching,
Researching, applying,
applying,
&
& communicating
communicating
lean
lean thinking
thinking
2
Overview
Value Stream Mapping Background

Some of the Value Stream Maps
Cases and Examples
3

Background
4
My Involvement with VSM

1993-1997
1997
1997
1999
2000
2002
Supply Chain Development Programme

* Process Activity Mapping
* Brown Paper Mapping
Paper: The Seven Value Stream Mapping Tools
* Codified Mapping Approach
First Rother & Shook publication
* Big Picture Mapping
Corus-Forge-Volvo Transmission VSM work
Going Lean publication
* see www.leanenterprise.org.uk
Lean Profit Potential
* see www.leanenterprise.org.uk
5
What Have I Learned?
Dont be a happy mapper

Start by understanding what you are trying to
achieve
Can anyone tell me the 4 Lean Principles?
And what about a link to Strategy?
Involve the recipients in the mapping

Dont do mapping to people
Dont Just Map Internally

Dont Just Map Order Fulfilment
No one map will do the job
Chose the right maps
6
Relation of Value, Cost &

Waste
Customer
Perceived
Value
Cost-Value
Equilibrium
2
1
x
Creating
CreatingLean
LeanSolutions:
Solutions:
1.
1.Reduce
ReduceInternal
InternalWaste
Waste
2.
2.Develop
DevelopCustomer
CustomerValue
Value
Waste/Cost
7
We need to find the waste first

PROCESS
ACTIVITY
MAPPING
SUPPLY
CHAIN
RESPONSE
MATRIX
Over
Production
Waiting
Transportation
Inappropriate
Processing
Unnecessary
Inventory
Unnecessary
Motion
Defects
BIG
PICTURE
MAPPING
FOUR
FIELDS
MAPPING
DEMAND
AMPLIFICATION
MAPPING
DECISION
POINT
ANALYSIS
H
M
PHYSICAL
STRUCTURE
VOLUME
VALUE
L
L
H
M
H
H = Highly useful, M = Medium, L = Low

8
Awareness Stage: 1980-1990

Theme
Shop Floor Practice
Focus
JIT Techniques, Tools
Business Process
Shop Floor Manufacturing
Industry Sector
Automotive Assembly
Gaps
Outside Shop Floor

Outside Single Firm
Narrow Focus
9
Quality Stage: 1990-mid 1990s

Theme
Best Practice Benchmarking
Focus
Cost, Quality, Reengineer
Business Process
Manufacturing & Mat. Mgt
Industry Sector
Automotive Ass./ Supply
Gaps
Human Element
Supply Chain
Systems Perspective
10
Quality, Cost, Delivery Stage:

Mid 1990s-2000
Theme
Lean Enterprise
Focus
Cost / Process QCD
Business Process
Order Fulfilment: Val. Str.
Industry Sector
(Repetitive) Manufacture
Gaps
(Other) Process Integrate

Relationships
Integrating Industries
11
Value System: 2000+

Theme
System Capability
Focus
Value & Cost
Business Process
Integrated Processes
Industry Sector
All Manufacturing/Service
Gaps
Low Volume Manufacture

Strategic Integration
Total Systems Capability
12
Lean Network Systems

Demand
Variability
High
Stranger
Variety/Complexity
Avoid? Stock?
Medium
Repeater
Variety/Complexity
Make To Order
Low Variability/
Complexity
Runner
Kanban
Adapted from: Fisher, 1997
Volume
Inventory Profile of the

UK Automotive Supply Chain
90
Max
80
Average
70
Min
Vehicle
Manufacturers
Outbound
Logistics
Distribution
& Retail
60
50
40
30
20
10
Customer
Marketplace
Outbound
Transit
Loading &
Despatch
Vehicle
Production WIP
On-site Part
(VM)
Inbound Transit
Finished
Components
Assembly WIP
Pre-Assembly
WIP
In-house built
Parts
Bought-out Parts
0
Raw Material
Days of Inventory
Inbound
Logistics
First Tier
Suppliers
100
Source: Holweg (2002)
14
Some of the Maps

Big Picture Level
15
Spaghetti Diagram
Customer Car Park
In-Servicing Vehicle Storage
Back Office Area
Used Car Storage Area
Valeting Area
Customer
Delivering
Car
Parts
Store
Service Workshop
Technician
& Valeter
Activity
Sales Staff Desks
New Car Storage Area
Service Desks
Coffee
Area
New Car Showroom
Customer
Collecting
Car
Big Picture Map: Current State

Blocks R Us
30 round
Forecast
Planning
Operator
Random
Supply
Lean Ltd.
30 pieces
per 7.5 min
1 every 15 sec
15s Order
Numerous Variety
Batches
Operation 1
I
Red
Blocks
510 sec
Variety = 3
1 piece per time
Managers Schedule
Operation 2
I
C/T = 5 sec 5 blocks
Uptime =
100%
450 sec av
Batch = 10
Variety = 3
510 sec

Uptime =
100%
450 sec av
Batch = 7
Variety = 3
7 sec
Operation 4
I
Uptime =
100%
450 sec av
Batch = 9
Variety = 3
60 sec
75 sec
5 sec
Operation 3
I
C/T = 5 sec
Uptime =
100%
450 sec av
Batch = 1
Variety = 3
30 sec
60 sec
7 sec
2 blocks
5 sec
Prodn Lead Time =

735 sec
VA Time = 24 sec
Big Picture Map: Future State

30 round
Forecast
Planning
Forecast
Blocks R Us
Lean Ltd.
TAKT =
15 sec
10s Order
Supply to
Pull
Order
Daily Order
Standard Number
Changeover
Milk
Round
1
Operation 1
Red Batch
Blocks
White
Blocks
20 sec
Variety = 3
1 piece per time
Operation 2
Operation 3
Operation 4
Waste
Elimination
C/T = 5 sec
Uptime =
100%
300 sec av
Batch = 1
Variety = 1
5 sec
20 sec
C/T = 5 sec
Uptime =
100%
300 sec av
Batch = 1
Variety = 1
Cycle C/T = 5 sec

Time Uptime =
100%
300 sec av
Batch = 1
Variety = 1
20 sec
20 sec
C/T = 5 sec
Uptime =
100%
300 sec av
Batch = 1
Variety = 3
5 sec
5 sec
5 sec
R
Y
G
60 sec
Prodn Lead Time =

160 sec
VA Time = 20 sec
Some of the Maps

Detailed Level
19
Process Activity Map

Step
Flow VA % Area Dist Time People C/T Up/T Avail. T Batch Var
20
Quality Filter Map
Identifies where quality problems exist in

the supply chain
3 types of quality defect
Product defects - defects in goods that are not caught
by in-line or end-of-line inspection and are therefore
passed on to customers
Service defects - problems given to a customer not
directly related to the product but to the level of service
Internal scrap - defects produced in a company that
have been caught by in-line or end-of-line inspection
21
Quality Filter Chart

1000000
900000
800000
Parts Per Million
700000
600000
Product Defects
500000
Service Defects
Scrap
400000
300000
200000
100000
0
Blanking
Pressing
Assembly
Paint
Despatch
22
Product Variety Funnel

YARN
GAUGE
KNIT
SIZE
COLOUR
PIECE PART CUT

(SIZING)
PIECE
PARTS
GREY
FABRIC
YARN
KNIT
DYE
PACK
CUT
SEW
PRODUCT
PACKED
PRODUCT
(FGS)
COLOURED
FABRIC
VARIANT
FLEXIBILITY
LEAD TIME
(TUBE)
PACK
SIZE
COLOUR
GAUGE
23
Value Analysis Time Profile

2.5
cost
r e d u c t io n
o p p o r t u n it y
2.0
1.5
H o r iz o n ta l p la te a u s h o w
o p p o r tu n itie s fo r
P o s t- A s s e m b ly
d e c a n tin g , in s p e c tin g
e tc
W IP s to r e
le a d - tim e r e d u c tio n
1.0
A s s e m b ly
o p e r a tio n s
0.5
re c e iv e
g o o d s in
s to r e g o o d s in
P r e s s o p e r a tio n s
cum cost total

cum cost val add
0.0
100
50
200
150
300
250
350
Time (hours)
RS Components Course

2.5
2.0
2 .2 9 T o ta l
2 .0 1 V A
3 3 7 h rs
1.5
*
*
1.0
*
*
0.5
cum cost total

cum cost val add
0.0
100
50
200
150
300
250
350
Time (hours)

2.5
2.0
2 .0 3 T o ta l
1 .9 6 V A
2 2 5 h rs
1.5
1.0
cum cost total

cum cost val add
0.5
100
50
200
150
300
250
350
Time (hours)
Customer
Service Team
Finance
Charge C/W Non Charge

C/W
Filing
Reception
Senior
Time
Finance C/W
2 - 7.5 2 hrs
hrs
Monicas
Table
Finance
No
Charge
Standards & Comments
Variance depends on Case

Worker, variable location of sort
Legal/Means
Phase 2
Yes
Finance Phase 2A
Resource
Four Field Map:

Current State
No
Yes
Charge
Non
Charge
2 hrs
1 wk 34 wks 1 hr
Backlog calculated using oldest

date (worst case scenario)
Not FIFO
Tag
1 hr
Pull
0.25 hr
Need Yes
File
Reception Tag & Filing
39
hrs
Get File
All file requests dealt with at the

same time
Assume 1 person processing post
No
Skills
No
Yes
Skills
No
0.1 2
hrs
4 Senior
Case Work
Unable to quantify referral time
Yes
Process
Post
Process
Post
Post
Bucket
Post
Bucket
1 wk
0.5 hr
Post
Bucket
13 to
248
days
3:20 to
5:15
hrs
Total
27
Finance Phase 2A
Charge
Non Charge
Charge
with files
Non Charge
With files
Read
Letter
Read
Letter
Skills
Yes
No
Skills
Filing
Senior
Case Worker
Time
Resource
Standards & Comments
Training needed / cultural issues

to be addressed
Four Fields Map:

Future State
No
Referral
Yes
Need No
File
Need
File
Yes
No
Charge post is sent to C/W with

10 15 10 15 File (no need to pull file at later
stage)
mins
mins
Referral process: Matter would

always be passed back to C/W
after the Senior C/W has
considered it, either with a work
solution or guidance notes. This
box to be emptied once daily
5 mins 5 mins (allocation rota)
Yes
Get File
Get File
Pull File
Non Charge post, where file

2 hrs if
5 mins needed, files to be supplied by
rqrd
Process
Process
Process
Post
Bucket
Post
Bucket
Post
Bucket
filing 4 times daily (2 am, 2 pm)

10 mins10 mins from a tray in each pod. This
activity is a priority
2 hrs
2 hrs
5 mins 5 mins
Calculated per piece of post
Post split into 1st, 2nd, Dx
30 mins 30 mins
to 4 hrs to 2 hrs
25 mins 30 mins
Total
28
Cases and Examples

#1 Internal: Main Motors
29
The Research Model

Strategic Level
Business Strategy
Formation and
Policy Deployment
Business Strategy
Validation and
Action Planning
Operational Level
Customer
Understanding
Process Activity
Understanding
Process Costing
Understanding
30
Critical Success Factors

Continue to grow markets share in the 3 channels
Recruitment, development and retention of skilled &
motivated workforce
External influenced innovation
Developing the right balance between the 3 channels
Close existing & new customer relationships
Keep the franchise
Long term focus & profitability
Continuing to develop brand presence
31
Key Business Targets

KPIs
Unit
Now Year 1
Year 2
Gross Profit/New Car
%
2.0%
2.3%
2.6%
Gross Profit/Used Car
%
7.0%
7.6%
8.2%
Finance Penetration New Cars %
23.0%
23.0%
23.0%
Finance Penetration Used Cars %
16.0%
17.8%
19.6%
Admin Expenses
%
0.9%
1.0%
1.1%
Market Share: Region vs Nation %
6.8/6.8
7.0/7.0 7.3/7.3
Retention New: First Service
%
80%
80%
80%
Retention New: 3 years
%
30%
36%
42%
Retention Used: First Service %
25%
26%
27%
Return on Total Turnover
%
1.4%
1.9%
2.4%
Volumes: New Cars
#
550
580
610
Volumes: Used Cars
#
270
296
322
Service Parts Absorption
%
60%
68%
76%
Stock Turn: Used Cars
#
8
8
8
Stock Turn: Parts
#
7.9
8
8
OCE: New Cars
%
39.5%
41.0%
42.5%
OCE: Used Cars
%
38.4%
45.6%
52.8%
OCE: Service
%
51.1%
55.2%
59.3%
ILU skills/competency
%
45.20%
65%
75%
Vision
Year 3 Year 4 Year 5
2.9%
3.2%
3.5%
8.8%
9.4%
10.0%
23.0% 23.0%
23.0%
21.4% 23.2%
25.0%
1.0%
0.9%
0.9%
7.5/7.5 7.8/7.8
8.0/8.0
80%
80%
80%
48%
54%
60%
28%
29%
30%
3.0%
3.5%
4.0%
640
670
700
348
374
400
84%
92%
100%
8
8
8
8
8
8
44.0% 45.5%
47.0%
60.0% 67.2%
74.5%
63.4% 67.4%
71.5%32
85%
95%
100%
New Car Value Attributes Importance vs Satisfaction

5.00
4.50
4.00
3.50
3.00
Importance
2.50
Satisfaction
2.00
1.50
1.00
0.50
Te
O
rm
rd
er
s
/D
el
iv
er
y
Ti
m
D
e
ea
le
rR
ep
ut
at
io
St
n
af
fa
tt
he
D
ea
le
r
D
ea
le
rF
ac
Af
ilit
ie
te
s
rS
al
es
Se
rv
ic
e
ic
e
Pr
Pa
ym
en
t
Pr
od
uc
tC
Br
an
d
ha
ra
ct
er
is
tic
s
0.00
33
The Service Process

Process Activity Mapping Example
Process Activity: Car collection & Work division
FLOW
(O/T/I/D/D')
Customer comes through the door

Customer arrives to Service desk and sits
Customer waits
Identify the customer
Control if job card information are correct
Customer signs
Collect customer's keys
Arrangement to return car
Write arrangement on job card
Find a place for job card
Waits for workshop controller
ACTIVITY
AREA
DIST MTS
TIME MIN
PEOPLE
(FVA/VA/SA
/W)
SA
W'
SA
W
SA
SA
SA
SA
W
W'
.
.
W
SA
Showroom
Showroom
Showroom
Showroom
Showroom
Showroom
Showroom
Showroom
Showroom
Showroom
20
0
0
0
0
0
0
0
3
0
0.25
2
0.5
2
0.1
0.1
1
0.25
0.5
120
1
1
2
2
2
2
2
1
1
0
Ian checks job cards

Ian informs Darren who is going to do the service
T
D
I
I
O
O
I
O
D
D
.
.
I
O
Showroom
Showroom
0
0
0.5
0.1
1
2
Darren up-dates Time Sheet
Showroom
0.1
Ian hands out work between technicians
SA
Showroom/Workshop
20
TOTALS
43
129.4
20
34
The Service Process

Big Picture Map
Car
Collection
90% customer
brings the car
10% car collected
at home/work
35
cars
= 1 day
Check parts
& Pre -picking
3,5 min
Hot orders
PC Replenish
System
Work
division
cur
rier
Continue
scheduling
during day
Parts
storage
Mechanical
Work
5 operators
Prepare
Service Job
Cards
5 min - the day
before service
30%
24h - Local
storage center
48h -From other
dealer
Found more
repairs
Call customer
Final Road
Test
1/1,5 hours
70%
2 days
later
Understanding
Requirements
& Booking
90% phone call
10%personal visit
5 min
Large Repair
Small Repair
Done immediatly
Routine
Regular service
75% Service at
Dealer
25%
Concerns :break
5% down , warranty
Investigation &
Paperwork
95%
Lead
LeadTime
Time
3,6
3,6 days
days
Automatic
replenishment
Custom .collectio
n & Payment
Valeting
50% customers
Service
come back later
3
95% 22 min
25% waits at dealer
cars
5% 1,5 h
15% pick up from
= 1 hValue2 Stream
valeters Mapping
city centre
10% courtesy car
inv
oic
e
Accountant
(invoice
registr .)
the day after
Quality
Feed -back
Ring 3-5
days later 35
The Costing Model
New Car Sales Process

Activities
Visit at Dealer & take order
VA
??
Source car
Car arrival, Delivery arrang. & Service Booking
Invoice&AFRL
PDI - Mechanical Work&Road Testing
Valeting
Customer Collection
Totals
FVA
0.0%
??
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-
SA
0.0%
??
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-
W
0.0%
??
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-
Activity cost %
0.0%
??
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-
36
The Process
Costing Perspective
ASC Area
Storage Centre
Source
New Car
Finalise Deal
& Take Order
Sales DP - 3
10,081.24
Dealer Visit
& Test Drive
Sales DP - 2
19%
4,750.40
Decision
to Purchase
Sales DP - 1
9%
6,577.48
13%
Other Dealer
Stock
Own Stock
Think &/or
Visit Other Dealer
Factory Order
Invoice Emission
& AFRL - Trigger
VW Payment
Stock
Mantaining
71,486.00
Administration DP - 1
5%
2,840.40
Car Arrival
& Delivery Check
Delivery
Arrangement
Sales DP - 5
Sales DP - 6
7,125.60
13%
2,740.61
PDI
5,899.91
>> Sales DP General Costs

>> Commission
15%
Mech.Service DP - 1
2,859.94
58,746.75
26,632.86
Customer
Collection
Valeting
Mech.Service DP - 6
5%
General
5%
Sales DP - 4
8,404.55 16%
37
The Strategic Change

Programme
Infrastructure
Value Creation
Used Car Loyalty Scheme

Service Customer Care
Service Pricing incl. Courtesy Car
Used Car Replacement Cycle
Annualised Hours
Measurement Scheme
Skills/Competency Scheme
External
Waste Reduction
Scheduling of Service Bay incl. PDI

Scheduling of Valeting
Right First Time Lean Servicing
Improved Supplier New Car

OTD Cycle
38
The Profit Potential

( annually by end 2002)
Level 1 (Internal Waste Reduction)
Level 2 (Customer Value Added)
Level 3 (Multiplier Effects)
Annual Profit Potential by end 2004
49.6K
62.5K
43.2K
155.3K
Equivalent to a 105%
increase in profitability
39
Cases and Examples

#2 Supply Chain:
Corus - Automotive
40
LEAP: Participating Companies

Steel
Mill
Steel Service
Centres
First Tier Component

Producers
Automobile
OEMs
Albion Pressed Metal

Steel &
Alloy
Tallent Engineering
LDV
Corus
GKN Sankey
British Steel
Distribution
Krupp Camford
Wagon Group
Specific Improvement Targets

1. Lead Time Reduction 40%
40%
Metal
Processing
Customers
40%
2. Time to Market
Reduction
30%
30%
30%
30%
3. Stock Reduction
10%
20%
20%
15%
4. Quality Improvement
50%
20%
50%
45%
5. Productivity
Improvement
5% per annum
5% per annum
5% per annum
15% over 3
years
6. Increased Mutual
Business
30%
30%
30%
30%
Improvement Area
British Steel
Strip Products
Steel Service
Centres
Total for the

Three Tiers
40%
42
Demand Amplification
35000
Blanking plan
Blanking Actual
Pressing Plan
30000
Quantity
25000
20000
15000
10000
5000
0
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Week number
Demand Amplification
Tonnes
200
150
Enduser Demand
Wide coil orders
100
BSSP Deliveries
50
Current State Map for a Larger part of of Value Stream

Check vs
Production Plan
Check vs
Sales Plan
Order (3
months in
advance)
COMMERCIAL
STEEL MILL
SCHEDULING
Steel
Service
Centre
Promise
(Negotiation)
Call off weekly
or by day
Revisions to
Missed
Deliveries
Pickle
Hot roll
C/T = 120 hrs

(includes
cooling)
2 Days
Coils
Daily
Order
With
Time
slots
Fax
Revision
2 shifts
5 Month
Forecast
Vehicle
Assembler
12,000 pcs/mo
Tray = 14 off
2 shifts
Shipping
Schedule
Weekly
Schedule
by Day
1x
hours
Coils
3
Days
Pack
I
Dispatch
I
C/T = 15 min
C/O = 10 min
2 Days
PRODN.
CONTROL
Weekly
Order
Weekly
Schedule
& Revisions
Individual
Schedules
Iron & Steel

Making
3 Month
Forecast
Slit
I
C/T =
4min/coil
C/O = 45 min
Uptime = 55%
2 shifts
27,000 secav
3 Days1 Day 16 Days
1200 Sec. 900 Sec.
Dispatch
Blanking
I
C/T = 1 sec
C/O = 20 min
Uptime = 70%
27,000 secav
EPE 10 Days
10 Days
3 Days
to 32 Days
240 Sec.
Pressing
I
C/T = 1 sec
C/O = 30 min
Uptime = 70%
27,000 secav
EPE 10 Days
2 Days
1 Sec.
Assembly
I
C/T = 13 min
C/O = 0 min
Uptime = 85%
2 shifts
27,000 secav
6 Days
1 Sec.
Paint
Dispatch
C/T = 1 hour
C/O =
Uptime = 65%
2 shifts
27,000 secav
C/T = 9 min
C/O = 0 min
Uptime = 85%
2 Shifts
27,000 secav
0.6 Days
780 Sec.
Assembly
Lead Time
0.27 Days 1.2 Days = 47 to 69
3600 Sec.
540 Sec.
days
VA Time =
7262 sec
(121 min)
Future State Map for a Larger part of of Value Stream

Forecast
Transmission
(Supply Chain
Syvchronisation)
Steel
Service
Centre
Orders
STEEL MILL
SCHEDULING
Daily
Order
Coils
PRODN.
CONTROL
Daily
Order
With
Time
slots
2 shifts
Coil
600
600 600
Pickle
Hot roll
Pack
Dispatch
Slit
Dispatch
Batch
tote
12,000 pcs/mo
Tray = 14 off
2 shifts
OXOX
14
14
14
coil
600
600
600
coil
Iron & Steel

Making
Coil
600
Vehicle
Assembler
5 Month
Forecast
Batch
tote
14
Blanking
Pressing
Assembly
& Paint
C/T = 1 sec
C/O = 5 min
Uptime = 85%
27,000 secav
EPE Day
C/T = 1 sec
C/O = 5 min
Uptime = 85%
27,000 secav
EPE Day
C/T = 60 min
C/O = 0 min
Uptime = 65%
2 Shifts
27,000 secav
1x
hours
14
Dispatch
FIFO
C/T = 120 hrs
(includes
cooling)
RFT = 85%
1 Day
C/T = 15 min
C/O = 10 min
1 Day
1200 Sec. 900 Sec.
C/T =
4min/coil
C/O = 5 min
Uptime = 85%
2 shifts
27,000 secav
7 Days
1 Day
1200 Sec.
1 Day
1 Day
1 Sec.
1 Sec.
4 Hours
3600 Sec.
Lead Time
= 11.5
days
VA Time =
6902 sec
LEAP Targets & Results

Area
Lead Time
Stock Reduction
Quality
Productivity
Increased Business
Design Time
Target
40% u
15% u
50% t
15% t
30% t
30% u
Results
20-90% u
20-75% u
50 ppm
8-33% t
40-50% t
30%
u
47
Cases and Examples

#3 An Information Based Process:
Insurance Company
48
The Twelve Phases Map

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Planning
Pre-audit
Initial visit
Billing
Cert. production
Tech. Cert. review
Outsourcing
Cert. completion
Visit cycle
Billing Amf
Visit 1
Strategic review
Mapped at the point of activity
S A Partners, 1993-2005
49
Completing the Flow

Current
State
Maps
Paper
work
flow
50
Current state map

Start
51
Current state map

Finish
52
Current State
Phases
Time Line (calendar days)

Minimum
Days
Hours
Maximum
Days
Hours
Resource
Minimum
Hours
Maximum
Mins
Hours
1
Mins
1. Planning process
10
25
2. Pre-audit
30
20
40
3. Initial audit
30
20
40
4. Billing
10
30
5. Cert. Production & proof reading
10
32
40
17.5
47.5
7. Outsourcing
14
14
8. Cert. completion
2.5
21
26
9. Visit cycle
0.5
27
55
10. Billing AMF
12
12
11. Visit 1
31
15
15
12. Strategic review
26
50
10
50
42.5
201.5
49
24
57
6. Tech. cert. review
Total of process
53
Phase 1 Resource Planning

Root Cause
Major Wastes
Process
Print of email (sales brief)
Culture
Opportunities
Process
Comfort factor
Read electronically
Validation of data
Information not right
Lack of trust
Review format of data

sales brief and sales
application checklist.
Planning to fail (brief
may say 6-8 months)
Ownership from sales
resp/training to get it
right
Single point of contact (1st time)
Planning to fail
Always done it this

way
Obtain alternative
contacts from client
(education of client re:
status of registration)
Use of planning spreadsheet/correspondence

log
Current systems do
not allow for
monitoring as per s/s
Comfort/lack of trust
Investigate system
capability
Readiness of client
Sales target driven.

Communications/Edu
cation of client.
Information not right
Always done it this

way
Modules for clients.

Education of client.
Staff training (pick up on
buying signals/leads etc).
Opportunity to influence
ass via financial
incentives etc
Culture
[1]
S A Partners 2004
54
Future State
Time Line (calendar days)
Phases
Minimum
Days
Hour
s
Maximum
Days
Hour
s
Resource
Minimum
Hour
s
Min
Hour
s
Min
35
Planning
35
Pre-Audit visit and Reports
10
Visits and reports
15
Post visit support service
Total
32
Maximum
15
10
13
30
55
18
26
85% reduction in time

50% reduction in resources
55
What Have You Learned?
Dont be a happy mapper

Start by understanding what you are trying to
achieve
Can anyone tell me the 4 Lean Principles?
And what about a link to Strategy?
Involve the recipients in the mapping

Dont do mapping to people
Dont Just Map Internally

Dont Just Map Order Fulfilment
No one map will do the job
Chose the right maps
56

Peter Hines

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Value Stream Mapping:

Theory & Cases

Value Stream Mapping

Lean Enterprise Research Centre

Formed in 1994 by Prof Dan Jones &

Value Stream Mapping

Value Stream Mapping Background

Value Stream Mapping

Value Stream Mapping

Value Stream Mapping

My Involvement with VSM

Supply Chain Development Programme

What Have I Learned?

Dont be a happy mapper

Involve the recipients in the mapping

Dont Just Map Internally

Relation of Value, Cost &

We need to find the waste first

H = Highly useful, M = Medium, L = Low

Awareness Stage: 1980-1990

Shop Floor Practice

JIT Techniques, Tools

Shop Floor Manufacturing

Outside Shop Floor

Quality Stage: 1990-mid 1990s

Best Practice Benchmarking

Cost, Quality, Reengineer

Manufacturing & Mat. Mgt

Automotive Ass./ Supply

Quality, Cost, Delivery Stage:

Cost / Process QCD

Order Fulfilment: Val. Str.

(Other) Process Integrate

Value System: 2000+

Value & Cost

Low Volume Manufacture

Lean Network Systems

Adapted from: Fisher, 1997

Inventory Profile of the

Source: Holweg (2002)

Value Stream Mapping

Some of the Maps

Value Stream Mapping

In-Servicing Vehicle Storage

Back Office Area

Used Car Storage Area

Sales Staff Desks

New Car Storage Area

New Car Showroom

Big Picture Map: Current State

C/T = 7 sec 4 blocks

Prodn Lead Time =

Big Picture Map: Future State

Cycle C/T = 5 sec

Prodn Lead Time =

Some of the Maps

Value Stream Mapping

Process Activity Map

Value Stream Mapping

Quality Filter Map

Identifies where quality problems exist in

Value Stream Mapping

Quality Filter Chart

Value Stream Mapping