What is value stream mapping?
Value stream mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. At Toyota, it is known as “material and information flow mapping”.[1] It can be applied to nearly any value chain.
See:
VSM wordbook
- Value Adding (VA): any activity that your external customers value, and would be willing to pay for.
- Necessary Non-Value Adding (N NVA): any activity that is necessary but does not add value, for example any necessary support processes, legal regulatory requirements, etc.
- Unnessary Non-Value Adding (U NVA): any activity that is unnessary, a.k.a. waste.
VSM metrics
In order of importance.
- Value Time (VT)
- The time spent on adding value. This is actually performing the work.
- Process Time (PT)
- A.k.a. touch time, work time, cycle time.
- The time it takes to actually perform the work, if a person is able to work on it fully and focus on it fully.
- Include task-specific doing, talking, thinking, etc.
- Lead Time (LT)
- A.k.a. throughput time, turnaround time, elapsed time.
- The elapsed time from when the input to a step is available, until the step is compeleted i.e. the work is sent along to the next step.
- Include Process Time, not just the waiting time.
- Percentage Activity (%A)
- Calculate (PT / LT) * 100
- Input Percentage Complete & Accurate (%C&A)
- The percentage of inputs that are fully usable, i.e. that are complete and that are accurate, as measured by the person receiving the inputs.
- Similar to “first pass yield” in manufacturing.
- Rolled first pass yield (RFPY)
- A.k.a. %Clean, %C&A for stream
- Calculate %C&A * %C&A * %C&A …
- The percent of value stream output that goes through the process cleanly, i.e. without any need for rework.
- Number of Handoffs (#HO)
- Number of IT Systems (#IT)
- Freed capacity
Types of waste
- Overproduction
- Inventory
- Waiting
- Over-processing
- Errors
- Motion (people)
- Transportation (material, data, etc.)
- Underutilized people
Continue at: https://github.com/joelparkerhenderson/value_stream_mapping
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