Lean Value Stream Mapping (VSM) Training Module

1 August 1, 2016 – v8.0
Lean Value Stream Mapping
by Operational Excellence Consulting LLC

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Some Facts about Lean Management – It Really Works
Aberdeen’s March 2009 survey of 117
companies showed top performing
companies are using Lean principles and
software solutions as a long-term strategy
for improving people, processes, and
business results.
 44% of Best-in-Class companies
maintain a cash conversion cycle
time of 22 to 31 days, versus 23%
of Laggards.
 Over the past two years, Best-in-
Class companies decreased
inventory write-offs by 2%, versus
an increase of 2% for Laggards.
 84% is the mean measure for
Overall Equipment Effectiveness
among Best-in-Class companies,
versus 72% among Laggards.
 61% of Best-in-Class companies
rate their internal data accuracy as
very good to excellent, versus
18% of Laggards.
 Best-in-Class companies are 4.8-
times more likely to utilize
automated Lean Kanban execution
to trigger the pull of inventory.

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Section 1: The History of Lean Management
Section 2: The Five Lean Management Principle
Section 3: The Seven Lean Wastes
Section 4: Value Stream Mapping Definition & Benefits
Section 5: Value Stream Mapping Development Process
Section 6: Basic Lean Management Tool Box
Value Stream Mapping (VSM) – Table of Content

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Lean Management – Lean Thinking
“One of the most noteworthy accomplishments in
keeping the price of Ford products low is the gradual
shortening of the production cycle. The longer an article
is in the process of manufacture and the more it is
moved about, the greater is its ultimate cost.”
Henry Ford, 1863 – 1947
“All we are doing is looking at the time line, from the
moment the customer gives us an order to the point when
we collect the cash. We are reducing the time line by
reducing the non-value added activities.”
Taiichi Ohno, 1912 – 1990

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Lean Management – A little Bit of History
Eli Whitney developed the concept of
interchangeable parts around 1799
when he accepted an order from the
U.S. Army for the manufacture of
10,000 muskets at the unbelievably
low price of $13.40 each.
For the next 100 years manufacturers
primarily concerned themselves with
individual technologies.
During this time engineering drawings
developed, modern machine tools
were perfected and large scale pro-
cesses (e.g. the Bessemer process
for making steel) held the center of
attention.
That changed in the late 1890s.

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In the late 1890s, Frederick W. Taylor
began to look at individual workers and
work methods. The result was time
study and standardized work. He
called his ideas Scientific Manage-
ment. The concept of applying science
to management was sound but Taylor
simply ignored the behavioral
sciences.
Frank Gilbreth added motion study and
invented process charting. Process
Charting focused attention on all work
elements including those non-value
added elements which occur between
the "official" elements.
Lillian Gilbreth brought psychology into
the mix by studying the motivations of
workers and how attitudes affected the
outcome of a process.

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Starting about 1910, Henry Ford
fashioned the first comprehensive
Manufacturing Strategy. He took all
the elements of a manufacturing
system -- people, machines, tooling,
and products -- and arranged them in
a continuous system for manufac-
turing the Model T automobile.
Ford is considered by many to be the
first practitioner of Just-In-Time (JIT)
and Lean Manufacturing.
Ford's success inspired many others
to copy his methods. But most of
those who copied did not understand
the fundamentals. Ford assembly
lines were often employed for
products and processes that were
unsuitable for them.

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After WW II, Japan started to study
American production methods with
particular attention to Ford practices
and the Statistical Quality Control
practices of Ishikawa, Edwards
Deming, and Joseph Juran.
At Toyota Motor Company, Taiichi
Ohno and Shigeo Shingo, began to
incorporate Ford production and other
techniques into an approach called
Toyota Production System (TPS) or
Just-In-Time (JIT).
Toyota also “discovered” that factory
workers had far more to contribute
than just muscle power and developed
the concept of Quality Circles.
All of this took place between about
1949 and 1975.

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In 1990 James Womack wrote a book
called "The Machine That Changed
The World".
Womack's book was a straight-
forward account of the history of
automobile manufacturing combined
with a comparative study of Japa-
nese, American, and European auto-
motive assembly plants.
What was new was a term - "Lean
Manufacturing“.

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Lean Management – “Ford – Model T Video”
Observations & Comments:
Ford – Model T (Part 1 → 0:00 - 5:08)
Link:
https://www.youtube.com/watch?v=j
Qwn2d5qhi0
Ford – Model T (Part 2 → 0:00 – 02:30)
Link:
https://www.youtube.com/watch?v=vM74
mPV80J8

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Lean Management – Action → Reflection
The only way to actually learn Lean Management methods and tools is to
apply the techniques yourself hands-on with a bit of coaching. The
willingness to try, fail, and learn simply goes with the territory when
implementing changes in long-established business processes & practices.
Action may not always bring success, but there is no success without action.
Benjamin Disraeli
Action → Reflection → Action → Reflection

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Lean Management – The Five Lean Principles
Define Value - Specify value from the Customer
perspective.
Map Value Stream - Identify the value stream for
each product or service and challenge all of the
non-value adding steps (wastes) currently
necessary to create and deliver this product or
service. Add nothing than value.
Create Flow - Make the product or service creation and delivery process flow
through the remaining value-added steps.
Establish Pull – Introduce pull between all process steps where continuous flow
is possible.
Pursuit Perfection – Manage toward perfection so that the number of steps and
the amount of time and information needed to create and deliver this product or
service is optimized.

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Lean Management – Three Types of Process Activities
Non-
Value
Added
Business-
Value Added
Value-
Added
Customer is not willing to
pay for these activities
and they should be
eliminated, e.g. rework.
Customer are willing to
pay the organization
for these activities, e.g.
assembly.
Customers are not willing
to pay for these activities,
but the organizations
deems these activities as
necessary, e.g. preventive
maintenance.
Many process have
less than 20% value-
added activities.

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Value-Added Work – A Definition
Three criteria for Adding Value
1. Customer wants you to do it (or will pay for it)
2. The material / information is being processed or transformed into final
products or services
3. It is done right the first time
Key Lean Objectives:
Reduce Lead Time
→ Eliminate or Reduce Non-Value-Added Activities

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How do you spend your time?
• Value-Adding (VA) – increases worth of a product or service
• Non-Value-Adding but Necessary (NVABN) – required to keep
the organization operating, e.g. compliance
• Non-Value-Adding (NVA) and Unnecessary – all other tasks not
identified above
• Lean Management reduces lead time through
– Streamlining VA work
– Minimizing NVABN work
– Eliminating NVA work

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Lean Management – The 7 Wastes
The seven wastes originated in Japan, where waste is known as “muda.“ The
elimination of non-value adding activities or waste is one of the most effective ways
to improve customer satisfaction and increase the profitability of any business.
Inventory
Over-Processing
Waiting
Transportation
Defects
Motion
Over-Production
The 7 Wastes

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The 7 Wastes – Transportation
Transportation
Definition: Any material or information movement, mainly between processing
steps, that does not directly support the creation of the product or service.
Causes: Improper Facility Layout – Excessive Handoffs – Large Lot Processing
– Large Lot Purchasing – Poor Workplace Organization – Large Buffers &
Storage Locations – Offsite Storage Locations – Poor Scheduling – …

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The 7 Wastes – Inventory
Inventory
Definition: Any supply, i.e. raw material, work-in-process or finished good, in
excess of processing requirements necessary to produce the product or
service in a just-in-time manner.
Causes: Inaccurate Forecasting Systems – Incapable Processes – Incapable
Suppliers – Long Replenishment Lead Times – Local Optimization – Long
Changeover Times – Poor Inventory Tracking – Poor Management of Work-
in-Process – Unbalanced Processing Steps – …

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The 7 Wastes – Motion
Motion
Definition: Any movement, incl. searching, of people which does not
contribute added value to the product or service.
Causes: Ineffective Equipment, Office or Plant Layout – Lack of Visual
Controls – Poor Workplace Organization – Lack of Standard Work – Poor IT
System Design – Poor Process Documentation – Poor Storage Solutions –
Unclear & Incomplete Instructions – …

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The 7 Wastes – Waiting
Waiting
Definition: Idle time that occurs when codependent processing steps or
activities are not fully synchronized.
Causes: Inconsistent Work Methods – Lack of Proper Equipment & Materials
– Long Setup Times – Low Man & Machine Effectiveness – Poor Equipment
Maintenance – Skills Monopolies – Unnecessary Handovers – Production
Bottlenecks – Unnecessary Approvals – …

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The 7 Wastes – Over-Production
Over-Production
Definition: Producing more than is needed, faster than needed and before it
is needed.
Causes: Incapable Processes – Poor Planning & Scheduling – Low Uptime
– Lengthy Setup Times – Local Optimization – Cost Accounting Practices –
Lack of Communication – Unnecessary Reports – Duplicative Data Entry –
…

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The 7 Wastes – Over-Processing
Over-Processing
Definition: Excessive or redundant effort of production and communication
which adds no value to the final product or service.
Causes: Decision Making at Inappropriate levels – Unclear Roles &
Responsibilities – Too many Handoffs – Inefficient Policies & Procedures –
Poor Configuration Controls – Spurious Quality Standards – Lack of
Customer Input – Unclear Customer Requirements – Unproductive Meetings
– Expediting – Firefighting – Changing Priorities – …

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The 7 Wastes – Defects
Defects
Definition: Repair or rework of a product or service to fulfill customer
requirements, as well as scrap waste resulting from materials deemed to be
un-repairable or un-reworkable.
Causes: Excessive Process Variation – High Inventory Levels – Incapable
Processes – Inadequate Tools & Equipment – Insufficient Training –
Insufficient Mistake Proofing – Unnecessary Handing – Unclear & Incomplete
Customer Requirements – …

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The 7 Wastes – Summary
In the latest edition of the Lean Manufacturing
classic Lean Thinking, Underutilization of
Employees has been added as an eighth
waste.
Organizations employ their staff for their
nimble fingers and strong muscles but forget
they come to work everyday with a free brain.
It is only by capitalizing on employees'
creativity that organizations can eliminate the
other seven wastes and continuously improve
their performance.
Many changes over recent years have driven organizations to become world
class organizations or Lean Enterprises. The first step in achieving that goal is
to identify and attack the seven wastes. As Toyota and other world-class
organizations have come to realize, Customers will pay for value added work,
but never for waste.

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Waste Typical Manufacturing Definitions Translation to Services Examples
Defects /
Rework
Making products that are not suitable for sale, or require
reprocessing to bring them up to standard
Client billing errors, defective client-server systems,
incorrect data entry, incomplete requirements
Over
Production
Producing product that has not been ordered. This is
the worst offender of all as it includes some elements of
all of the other wastes.
Duplicative data entry, making extra copies, producing
data or reports that aren’t needed, starting projects
that won’t be moved forward.
Waiting People or product waiting for processes to finish or
materials/tools to arrive. All inventory build up or delay
between value adding steps for any product.
Employee idle time, waiting on responses, approvals,
or service, delays in processing (including client). All
time between one value adding step and the next.
Non-Value
adding
Processing
Activities carried out on materials/products which do not
add value
(more commonly referred to as Over processing)
Unnecessary extra steps, transactional activities, or
approvals. Excessive reporting, unproductive
meetings, expediting, firefighting, changing priorities
Transport An activity that moves materials or products more than
is required.
Handoffs or reviews, interoffice movement of
materials, offsite storage transport
Inventory Product in storage or waiting for further actions to be
carried out. All parts not immediately needed.
Requirements, Documents, WIP, Assets sitting on the
shelf (e.g. laptops, air cards, people), excess emails
Movement Unnecessary movement of people, examples being
long distances between workstations, double-handling
of materials, poor tool placement.
Unnecessary travel, hunting for information or people,
manual workflow
Employee
Knowledge
Ineffective employee utilization / engagement. No
empowerment; people feel they should “check their
brains at the door and do what they’re told”.
Failing to capture ideas and knowledge, or ignoring
input from the real experts. Retention issues.
Employees used for repetitive or mundane tasks.
The 7 + 1 Wastes – DOWNTIME

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The Three Lean Ms or the Lean Triad
• Lean is often associated with the elimination of Waste, or Muda in Japanese
• However, Lean Thinking also needs to considers two other problems:
– Mura: Irregularity or Variation
– Muri: Strenuous activity, or Overburden
• Together these are sometimes called the “Three Ms”
• In some cases, Waste or Muda may be eliminated temporarily but will keep
coming back if the other two Ms are not addressed simultaneously
• All three Ms must be attacked and substantially reduced to create a
sustainable Lean process or value stream flow.
M
3

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Value vs. Non-Value Added Work
Work Time
Wait Time
Walking Time
A Typical Process or Process Step
 It is not uncommon, when analyzing a process
or process step, to recognize that 60 to 70% of
the total work time is actual non-value added
work – waiting, transportation, walking, and
unnecessary motions.
 Organizations often focus on the value added
activities to further improve productivity and
efficiency, ignoring the often huge opportunities
if they would focus on eliminating non-value
added activities.
Process
Start
Process
End

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Process Mapping – Types of Process Maps
Process Mapping is an important tool in the “Define” and “Measure” Phase
of the Lean Six Sigma Roadmap.
 Process Variables Map
– Focuses on the inputs and outputs of a process and its steps
– Critical first step towards successful process improvement through
identifying, reducing, and removing variation
– Should be completed in 2 to 3 hours
 Value Stream Map (VSM)
– Focuses on the overall product/service and information flow
– Critical first step towards successful process improvement through
identifying, reducing, and removing waste
– May be more complex, as it requires lead times, processing times,
staffing levels, inventory levels, scheduling information, …

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Value Stream Mapping – Definition & Benefits
• A Value Stream represents the sequence of activities required to design,
produce, and deliver a product or service to a Customer, this includes the
flow of material and information.
• Value stream mapping is a Lean Management technique used to analyze
the flow of materials and information currently required to bring a product or
service to a Customer.
• A sophisticated flow charting method that uses symbols, metrics, and
arrows to help visualize processes and track performance. This method
helps determine which steps add value and which do not.
• A pencil-and-paper tool used: a) to follow a product or information (or both)
activity path from beginning to end and draw a visual representation of
every process (value and non-value) in the material and information flows.
b) then to design a future state map which has waste removed and creates
improved flow and c) to end up with a detailed transformation plan for the
future state value stream map.

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Value Stream Mapping – Definition & Benefits
• It is a business-planning tool.
• It is a tool to manage the change process.
• It forms the basis of a transformation plan.
• It is a communication & socializing tool.
• It provides a common language to talk about processes.
• It shows the linkage between the material flow and the information flow.
• It is a powerful tool in identifying waste, so it can be reduced or eliminated,
contributing to improved profitability and customer satisfaction
• It helps us see and focus on flow with a vision of an ideal or improved
state.
• Enabling broad participation in shaping the future state.
“Value Stream Mapping is primarily a Management Responsibility.”

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Value Stream Mapping – From Function to Process
Leadership Team
Customer
Requirements
=
INPUTS
Customer
Satisfaction
=
OUTPUTS
F
U
N
C
T
I
O
N
1
F
U
N
C
T
I
O
N
2
F
U
N
C
T
I
O
N
5
F
U
N
C
T
I
O
N
6
F
U
N
C
T
I
O
N
3
F
U
N
C
T
I
O
N
4
 The Focus is on the Customer & Value Creation
Value Stream #1
Value Stream #2
Value Stream #3
Value Stream #4

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Value Stream Mapping – The Three Types
• Full Value Stream Map
– A good or service is requested by and delivered to an external
Customer
• Support Value Stream Map
– Sometimes called value-enabling value stream
– Examples include annual budgeting process; recruiting, hiring,
and onboarding process; and performance review process
• Value Stream Segment
– In general a part of a Full Value Stream, e.g. product design, new
product introduction, and service delivery.

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Value Stream Mapping – Common Failures
Common Value Stream Mapping Failures include …
• Using the Mapping Process solely as a Work Design Exercise
• Creating Value Stream Maps during a Kaizen Event
• Creating Maps but not taking Actions
• Mapping with an inappropriate Team
• Creating Maps with no Metrics

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Value Stream Mapping – The Development Process
1. Develop a Charter & Establish the Team
2. Document Current State → Kick-off
3. Document Current State → First Value Stream Walk
4. Document Current State → Map Layout
5. Document Current State → Second Value Stream Walk
6. Document Current State → Map Details
7. Document Current State → Information Flow
8. Document Current State → Map Summary
9. Document Current State → Analyze Current State
10. Design Future State
11. Create Transformation Plan
12. Manage Execution

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Value Stream Mapping – Develop a Charter
The charter serves as planning, communication, alignment, and consensus
building tool.
Key element of a Value Stream Mapping Charter include:
• Scope → Value Stream – Specific Conditions – Demand Rate – Trigger
– First Step & Last Step – Boundaries & Limitations – Improvement Time
Frame – …
• Current State Issues & Business Needs
• Measurable Target Conditions
• Benefits to External Customers & Benefits to Business
• Accountable Parties
• Logistics
• …

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Value Stream Mapping – Charter Template
1 Contact Information
2 1
3 2
4 3
4
1 5
2 6
3 7
4 8
1 Contact Information
2 1
3 2
4 3
1 Event Facilitator:
2
3
4 Date:
Signature:Signature:
Date:
Signature:
Executive Sponsor:
Date:
Agreement
Value Stream Champion / Owner:
Benefits to External Customers
Benefits to Business
On-Call Support Resources
Function Name
Measurable Target Conditions
Value Stream Mapping Team Charter
Briefing Dates & Times:
List people to attend the
briefings normally at the end of
Briefing Attendees:
Lunches & Breaks:Logistics Facilitator:
Mapping Location:Event Facilitator:
Value Stream Mapping Team Members
Function Name
Current State Issues & Business Needs
Mapping Event Dates & Times:
Value Stream:
Executive Sponsor:
Value Stream Last Step:
Value Stream First Step:
Value Stream Trigger:
Value Stream Demand Rate:
Specific Conditions:
Value Stream Name:
Boundaries & Limitations:
Future State Time Frame:
Please use your own charter if you have one, but we recommend that you consider
including the elements above.

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Value Stream Mapping – Define Product/Service Family
A product or service family is a group of products or services that pass through
similar processing steps in the value stream, as thus can be analyzed using the
same value stream map.
1 2 3 4 5 6 7
A X X X X
B X X X X X
C X X X X
D X X X X
E X X X X X
F X X X X
Processing Steps & Equipment
Products
Product/
Service
Family 1
Product/
Service
Family 2
ProductorService
Process Step or Activity

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Value Stream Mapping – Establish the Team
Value Stream Mapping teams must include leaders who can influence and authorize
change along the value stream to be improved.
• Executive Sponsor → An individual who oversees the entire value stream. May or
may not participate in the event.
• Value Stream Champion / Owner → An individual who oversees a significant part of
the value stream and is accountable for the performance of the entire value stream.
• Event Facilitator → An individual neither overseeing nor working in the value stream,
serving as teacher, timekeeper, skilled change agent, provocateur, … .
• Logistics Coordinator → An individual responsible for booking the room, ordering
lunches, organizing supplies, … .
• Briefing Attendees → Individuals (no more than 5 to 7) participating in the daily
briefing sessions to ensure common understanding of the current state, and alignment
of the organization around the future state value stream map and transformation plan.
• Mapping Team Members → Individuals (no more than 10) from all key functions
across the value stream participating in the event full-time.

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Value Stream Mapping – Rules of Engagement
 The activity begins and ends on time; being on time is critical.
 No interruptions; the team stays 100% committed, engaged and focused.
 All wireless devices on silent or off. All laptops closed.
 Finger-pointing and blame have no place.
 Use creativity over capital; mind over money.
 No silent objectors.
 Respectful disagreement is encouraged; it is not acceptable to be
disagreeable.
 Eliminate “can’t” and “No, because …” from your vocabulary. Adopt a “Yes, if
…” mindset.
 Eliminate “this is the way we’ve always done it” thinking.
 Ask “why?”, “why not?” and “what if?”.
 One conversation at a time; avoid talking over each other.
 Be bold.

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Value Stream Mapping – “Western Union Video”
“New Agent Process - Current State”
Link: https://www.youtube.com/watch?v=RMZs0j2BZSw
(00:00 – 5:31)

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Value Stream Mapping – Document Current State
A few Value Stream Mapping Rules:
• Always collect current-state information while walking along the
actual pathways of material and information flows yourself.
• Begin with a quick walk along the entire end-to-end value
stream, ...
• Begin wit the product/service delivery and work upstream, ...
• Bring your stopwatch and do not rely on standard times or
information that you do not personally obtain. ...
• Map the whole value stream yourself, ...
• Always draw by hand in pencil, ...

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Value Stream Mapping – Some Guidelines
 Start with as few symbols as possible and add other symbols over time as
needed and as you become more experienced
 Do not waste too much efforts and resources on mapping details before
they are needed
 It often helps to begin from the end of the process and trace the steps
backwards
 Begin with a quick walk along the entire door-to-door value stream
 Bring your stopwatch and do not rely on standard times or information that
you do not personally obtain
 Always prepare the map based on real observations
 Always verify your Value Stream Map by walking and observing the actual
process
 …

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Value Stream Mapping – First Value Stream Walk
The First Value Stream Walk focuses on obtaining basic information:
• The processing steps & activities that form the value stream
• The sequence of these processing steps & activities
• The functions performing each processing step & activity
• The key inputs and outputs of each processing step & activity
 Talk with the people that perform the processing steps & activities to get
first a high-level understanding of what is being done to transform an
input to an output.
 This is the time for learning, not judging.
 Everyone participates in the interviewing process and takes notes.
A critical step in creating a current state value stream map – “Going to the Gemba.”

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Value Stream Mapping – The Building Blocks
5. Information Flow
6. Timeline & Metrics
2. Material Flow
1. Customer
Requirements
3. Supplier
Requirements
4. Process Data

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Value Stream Mapping – Map Layout
The objective is to build a rudimentary view of the value stream.
• Customers & Customer Requirements (TOP 3 – 5)
• Suppliers & Supplier Constraints (TOP 3 – 5)
• Processing Steps – “Verb-Plus-Noun” (5 – 15 Steps)
• Function(s) performing each processing step
• Sequence & Numbering of all Processing Steps
Value Stream Mapping is as much art as it
is science – as long as the art doesn’t
interfere with the science!

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Value Stream Mapping – Process Icons

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Value Stream Mapping – May Layout Example
Customer
Function A
2
Process 1
Function B
4
Process 2
Function D
1
Process 3
Function E
2
Process 4
Supplier

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Value Stream Mapping – Second Value Stream Walk
The Second Value Stream Walk focuses on gaining a deeper understanding about
how the value stream currently performs and identify significant barriers to flow:
• Assess value stream performance in terms of TIME – Takt Time, Lead Time,
Cycle Time, Processing Time, Available Time, Changeover Time, …
• Assess value stream performance in terms of QUALITY – % Complete &
Accurate (%C&A)
• Assess value stream performance in terms of RESOURCES – # of People
• Assess value stream performance in terms of INVENTORY – Raw Materials,
Work-in-Process (WIP), Finished Goods
• Assess Process Efficiency, e.g. Conversion Rates of RFPs, and Work
Triggers
• Identify Barriers to Flow !!!
 Collect or verify your own data !!

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Value Stream Mapping – Metrics Definitions
% Complete & Accurate
• Percentage of the time a processing step provides work that is “usable as is”
by the receiving processing step.
Lead Time (LT)
• The average time it takes for one item to go through the entire processing
step, including time waiting before, during and after the processing step.
Cycle Time (CT)
• The average time between two consecutive items coming out of a processing
step.
Processing (or Touch) Time (PT)
• The average time it takes to actually do the work from beginning to end in a
processing step, if one is able to work on the item uninterrupted.
Value-Add Time (VT)
• The portion of the average processing time that actually transforms the item
in a way that the Customer is willing to pay for.

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Value Stream Mapping – Takt Time
Takt Time (TT)
• Planning drumbeat. How often completed items NEED to come out of the
process or processing step - as established by Customer demand.
Takt Time is the “Production” Rate, in seconds, necessary to satisfy
Customer demand.
Amount of available “Production” Time per Interval
Number of Units needed by the Customer per Interval
7.5 hrs/shift x 60 minutes/hr x 60 seconds/min
450 Units needed by the Customer/Shift
27,000 seconds/shift
450 Units
= 60 Seconds

60 August 1, 2016 – v8.0
Value Stream Mapping – Pitch
For many transactional processes, it is not practical to perform the work according
to the Takt Time, e.g. credit card application processing. In these situations work is
been performed in batches and the concept of “Pitch” is being adopted.
Pitch = Takt Time x Number of Units per “Pitch”
Let us assume, on average, 5,500 credit card applications need to be processed
in a day and the duration of the shift is eight hours with 30 minutes for breaks.
Takt Time = _________ seconds
Number of Units per “Pitch” = _________ units
Let us assume that we decided to move application forms every 30 minutes from
one process step to the next. So, the Pitch is set to 30 minutes.

61 August 1, 2016 – v8.0
Changeover Time (CO)
• The average time it takes to changeover (e.g. reset or change equipment) a
processing step from one item to another (Change Over Matrix).
Queue Time (QT)
• The average time between processing steps that the item gets shuffled
around or sits around waiting for someone to work on it.
Up Time (UT)
• The ratio of the actual available processing time of a processing step to the
available working time. Expressed as a percentage, uptime is calculated by
dividing actual available processing time by the available working time.
Available or Working Time (WT)
• To calculate Working Time - deduct breaks, meetings, beginning of shift set-
up, end of shift clean-up, planned maintenance, and other planned non-
working time. Do NOT deduct unplanned downtime or changeovers.

62 August 1, 2016 – v8.0
Value Stream Mapping – Making Work Flow
• Create Flow - Make the product or service creation and delivery process flow
through the remaining value adding processing steps.
• Ideally, the “work item” passing through the value stream never stops. It moves
effortlessly from person to person, work team/station to work team/station,
department to department, … without hang-ups, hiccups, or (unnecessary)
delays.
• Ask yourself – “What is preventing the lead time from being the same as the
processing time for each and every processing step or activity?”

63 August 1, 2016 – v8.0
Value Stream Mapping – Barriers to Flow
Barriers to Flow include:
1. Quality Issues
2. Shared Resources & Inaccessible Staff
3. Task-switching
4. Large Batch Sizes – Raw Material Purchasing, Order Processing, …
5. System and Equipment Downtime & Performance Issues
6. Prioritization Rules
7. Searching & Waiting for Parts, Information, Requirements, …
8. Long Set-up & Changeover Times
9. Poor Work Area Layout → Excessive Motion & Transportation
10. …

64 August 1, 2016 – v8.0

65 August 1, 2016 – v8.0
Value Stream Mapping – Map Details
The objective is to add now the information obtained from the second value stream
walk to our value stream map.
• Add performance in terms of TIME – Takt Time, Lead Time, Cycle Time,
Processing Time, Available Time, Changeover Time, …
• Add performance in terms of QUALITY – % Complete & Accurate (%C&A)
• Add performance in terms of INVENTORY – Raw Materials, Work-in-
Process (WIP), Finished Goods
• Add RESOURCES – # of People
• Add Barriers to Flow !!!
• …

66 August 1, 2016 – v8.0
Value Stream Mapping – Material Icons

67 August 1, 2016 – v8.0
Value Stream Mapping – May Details Example
Customer
Function A
2
Process 1
Function B
4
Process 2
Function D
1
Process 3
Function E
2
Process 4
Supplier
45 Items
LT = 16 Hours
PT = 5 Minutes
%C&A = 90%
LT = 8 Hours
PT = 10 Minutes
%C&A = 75%
LT = 12 Hours
PT = 15 Minutes
%C&A = 99%
LT = 16 Hours
PT = 25 Minutes
%C&A = 90%
75 Items
65 Items 75 Items

68 August 1, 2016 – v8.0

69 August 1, 2016 – v8.0
Value Stream Mapping – Information Flow
The objective is to visually demonstrate the technology-related disconnects,
voids, and redundancies that exist in many value streams.
• Identify all IT systems and applications in use across the value stream
• Connect IT systems and processing steps with arrows – Arrow head
indicates the direction of the information flow
• Lightning bolt-type arrows indicate automated information flow from one
IT system to another, e.g. auto-upload
• Identify over-processing, errors, and operational complexity caused by
system disconnects, gaps, and redundancies
• …

70 August 1, 2016 – v8.0
Value Stream Mapping – Information Icons

71 August 1, 2016 – v8.0
Value Stream Mapping – Information Icons

72 August 1, 2016 – v8.0
Value Stream Mapping – Information Flow Example
Customer
Function A
2
Process 1
Function B
4
Process 2
Function D
1
Process 3
Function E
2
Process 4
Supplier
45 Items
LT = 16 Hours
PT = 5 Minutes
%C&A = 90%
LT = 8 Hours
PT = 10 Minutes
%C&A = 75%
LT = 12 Hours
PT = 15 Minutes
%C&A = 99%
LT = 16 Hours
PT = 25 Minutes
%C&A = 90%
IT - 1 IT - 2 IT - 3
75 Items
65 Items 75 Items

73 August 1, 2016 – v8.0

74 August 1, 2016 – v8.0
Total Lead Time (critical path only)
• The average time it takes for one item to go through the entire process or
value stream - from start to finish - including time waiting before, during and
after the processing step.
Total Processing Time (critical path only)
• The average time it takes to actually perform the entire process or value
stream - from start to finish - if one is able to work on an item uninterrupted.
Total Value Adding Time (critical path only)
• The average time it takes to actually perform the entire process - from start to
finish - that actually transforms the item in a way that the Customer is willing to
pay for.
% Complete & Accurate
• Percentage of the time a processing step receives work that is “usable as is”.

75 August 1, 2016 – v8.0
Value Stream Mapping – Performance Indicators
Process Efficiency Ratio (PE)
Process Activity Ratio (AR)
Rolled % Complete & Accurate
where n is the number of processing steps.
Total Labor Processing Time
• The average time it takes to actually perform the entire process - from start to
finish - if one is able to work on an item uninterrupted.
𝐴𝑅 =
𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑜𝑐𝑒𝑠𝑠𝑖𝑛𝑔 𝑇𝑖𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐿𝑒𝑎𝑑 𝑇𝑖𝑚𝑒
× 100%
𝑃𝐸 =
𝑇𝑜𝑡𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 𝐴𝑑𝑑𝑒𝑑 𝑇𝑖𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝐿𝑒𝑎𝑑 𝑇𝑖𝑚𝑒
× 100%
𝑅𝑜𝑙𝑙𝑒𝑑 %𝐶&𝐴 = %𝐶&𝐴1 × %𝐶&𝐴2 × ⋯ × %𝐶&𝐴 𝑛

76 August 1, 2016 – v8.0
Value Stream Mapping – Process Efficiency Benchmarks

77 August 1, 2016 – v8.0
Value Stream Mapping – Other Icons

78 August 1, 2016 – v8.0
Value Stream Mapping – Map Summary Example
Customer
Function A
2
Process 1
Function B
4
Process 2
Function D
1
Process 3
Function E
2
Process 4
Supplier
45 Items
LT = 16 Hours
PT = 5 Minutes
%C&A = 90%
LT = 8 Hours
PT = 10 Minutes
%C&A = 75%
LT = 12 Hours
PT = 15 Minutes
%C&A = 99%
LT = 16 Hours
PT = 25 Minutes
%C&A = 90%
5 Minutes
16 Hours
10 Minutes
8 Hours
15 Minutes
12 Hours
25 Minutes
16 Hours
Total Lead Time = 32 Hours
Total Processing Time = 55 Minutes
Total Value-Added Time = TBD
Process Activity Ratio = 2.86%
Process Efficiency Ratio = TBD
Rolled %C&A = 60.1%
Total Labor Processing Time = 55 Minutes
IT - 1 IT - 2 IT - 3
75 Items
65 Items 75 Items

79 August 1, 2016 – v8.0
Value Stream Mapping – Parallel Flow Example
Critical Path is the Flow with the longest Lead Time.
Time Line for the
Critical Path.
Demand:
Once per Month
Customer
Function A
3
Process 2a
Function C
1
Process 3a
Function A
2
Process 1
Function B
4
Process 2b
Function D
1
Process 3b
Function E
2
Process 4
Supplier
LT = 4 Hours
PT = 20 Minutes
%C&A = 50%
100 Items
45 Items
LT = 24 Hours
PT = 5 Minutes
%C&A = 67%
LT = 16 Hours
PT = 5 Minutes
%C&A = 90%
LT = 8 Hours
PT = 10 Minutes
%C&A = 75%
LT = 12 Hours
PT = 15 Minutes
%C&A = 99%
LT = 16 Hours
PT = 25 Minutes
%C&A = 90%
5 Minutes
16 Hours
20 Minutes
4 Hours
5 Minutes
24 Hours
25 Minutes
16 Hours
Total Lead Time = 60 Hours
Total Processing Time = 55 Minutes
Total Value-Added Time = TBD
Process Activity Ratio = 1.5%
Process Efficiency Ratio = TBD
Rolled %C&A = 20.1%
Total Labor Processing Time = 80 Minutes
IT - 1 IT - 2 IT - 3
75 Items
65 Items 75 Items
25 Items

80 August 1, 2016 – v8.0
Value Stream Mapping → Current State Map Example
Raw
Material
Supplier
Tues. +
Thurs.
250 ft
rolls
TOP 1-3
Customer
7.5k pcs/day
-- 2.5k red
-- 5.0k green
25 pcs/box
1X Daily
TOP 1-3
CUTTING
C.T. – 1.5sec
C.O – 0
Up-Time – 75%
2 shifts
25,200 sec avail.
PRINTING
C.T. – 2.5sec
C.O – 65min
Up-Time – 95%
2 shifts
25,200 sec avail
X 3
BINDING
C.T. – 4.0sec
C.O – 25min
Up-Time – 55%
2 shifts
25,200 sec avail
X 4
SHIPPING
Staging
4.5 days 0.8 days 0.2 day 2.0 days
60 s 25 s 45 s % PE = _____ %VA
NVA
Production
Planning
MRP
30-60-90
Days Forecast6-weeks
Forecast
Weekly
Schedule Daily Ship
Schedule
Daily Orders
I I II
4,500 R
1,500 G
600 R
900 G
8,500 R
6,500 G
3 Rolls
4.5 Days

81 August 1, 2016 – v8.0

82 August 1, 2016 – v8.0
Value Stream Mapping – Focus of the Future State
During the current state analysis and future state development activities, the team
shifts now from fact-finding (current state) to the discovery, innovation and
creativity phase (future state).
In terms of priorities, the mapping team should follow the following general rule:
1. Remove unnecessary non-value adding activities
2. Reduce the work effort (or need) to perform necessary non-value adding
3. Find ways to convert todays necessary non-value adding to unnecessary
non-value adding in tomorrow's environment
4. Reduce the work effort to perform value adding activities
Creativity before Capital !!!

83 August 1, 2016 – v8.0
Value Stream Mapping – Common Findings
Loopbacks No documented standard work
Unnecessary handoffs
Excessive inspection (review, approval,
audits, …)
Rework due to errors and lack of clarity Overspecialization of staff
Batching Existing technology not fully leveraged
Functions missing or getting involved too
early or too late in the process
Underutilization of skills
Redundant activities Compliance overkill
High variation in how work is performed
Delays due to juggling multiple
responsibilities
Push and overburden …
Based on our experiences in leading and facilitating Value Stream Mapping
events and activities, common non-value adding activities and improvement
opportunities include:

84 August 1, 2016 – v8.0
Value Stream Mapping – Adding Work Effort
• Improving an organization's value stream may sometimes mean adding new
processing steps or activities to the existing value stream. For example:
• To reduce the order-to-cash lead time it may be beneficial to add a
customer credit check or some other screening process upstream into the
value stream to reduce the time and resources currently consumed to
collect outstanding payments from errant customers.
• Value Stream Mapping improvements almost always requires a holistic
approach and therefore the breakdown of silo-thinking in the organization.
• Remember: if the end-to-end process lead time is reduced and the customer
experience has improved, the value stream design phase has been successful
– even if the time and effort of some departments increases.

85 August 1, 2016 – v8.0
Value Stream Mapping – Analyze Current State
The overall objective of Lean Management is the reduction of lead time of an
organization’s processes and value streams.
The goal of value stream mapping is to highlight sources of waste and eliminate
them by building a chain of processing steps where the individual processing
steps are linked to their customers either by continuous flow or by pull.
Lead time and waste reduction is accomplish by deploying different Lean
methods and tools, depending on the specific opportunity and objective.
• Work Effort Analysis
• Waste Reduction
• Standard or Standardized Work
• Work Effort Balancing
• 5S Visual Workplace Organization
• Kanban Scheduling Systems
• Work Load Level Loading
• Rapid or Quick Changeover

86 August 1, 2016 – v8.0
Value Stream Mapping – Managing the Work
• Another consideration that should drive the future state design and
development focuses on the stabilization and sustainability of the implemented
changes and improvements.
• Continuous performance review and improvements need to be imbedded into
the management of the value stream.
• Many organizations fail with the transformation of a value stream because they
don’t put a robust system and measures in place to address the above
challenges.
• Every value stream needs at least three to five relevant, accurate and precise
Key Performance Indicators (KPIs) that are tracked on a regular basis.
• Common indicators include Time, Cost, Quality, Safety, and Satisfaction/
Morale.

87 August 1, 2016 – v8.0
Value Stream Mapping – Approach & Key Concepts
Step 1 Produce at your Takt Time
Step 2 Develop Continuous Flow wherever possible
Step 3 Reduce Batch or Pitch Size
Step 4 Balance the Cycle Time of each Processing Step
Step 5 Use Kanbans and Supermarkets to control & schedule Work
Step 6 Determine the Pacemaker Process
Step 7 Level the Processing Mix
Step 8 Level the Processing Volume (Paced Withdrawal)
Step 9 Ability to make “Every Part Every Day”

88 August 1, 2016 – v8.0
Value Stream Mapping – The 8 Basic Questions
1. What is the Takt Time ?
2. Will you build to a finished-goods Kanban or Supermarket from which
the Customer pulls, or directly to shipping ?
3. Where can you use continuous flow processing ?
4. Where will you need to use a Kanban or Supermarket pull systems ?
5. At what single point in the production chain (the “pacemaker” process)
will you schedule production ?
6. How will you level the production mix ?
7. What increments of work will you consistently
release ?
8. What process improvements will be necessary ?

89 August 1, 2016 – v8.0
Value Stream Mapping – Future Design Questions
The Future State Design Questions include …
• General Questions
• What are the business issues we like to address?
• What does the customer want?
• How will we monitor value stream performance?
• Which processing steps or activities add value or are necessary non-value adding?
• How can we reduce delays between activities or processing steps?
• How can we reduce work effort and other expenses across the value stream?
• How can we improve the quality of incoming work at each activity or processing
step?
• …
Think “What”, not “How”.

90 August 1, 2016 – v8.0
• Specific Questions
• Touch Points
• Are there redundant or unnecessary processing steps that can be eliminated?
• Are there redundant or unnecessary handoffs that can be eliminated or combined?
• Are there processing steps or handoffs that need to be added?
• …
• Delays
• Can we reduce batch sizes or eliminate batching completely?
• Do we have adequate coverage and available resources to accommodate existing
and future workloads?
• How can we create more capacity or reduce
the load of the bottleneck?
• …

91 August 1, 2016 – v8.0
• Sequencing and Pacing
• Are processing steps being performed too early or too late in the value stream?
• Are key stakeholders engaged at the proper time?
• Can processing steps be performed concurrently (in parallel)?
• Would staggered starts improve flow?
• Can we balance the workload to achieve greater flow (via combining or dividing
activities)?
• Do we need to consider segmenting the work by work type to achieve greater
flow (with rotating but designated resources for defined periods of time)?
• …

92 August 1, 2016 – v8.0
• Variation Management
• Is there internally produced variation, e.g. end-of-quarter, sales incentives, …?
• How can we level incoming workload along the value stream to reduce variation
and achieve greater flow?
• Can we reduce variation in customer or internal requirements?
• How can necessary variation be addressed most effectively?
• Are there common prioritization rules in place throughout the value stream?
• …

93 August 1, 2016 – v8.0
• Technology
• Is redundant or unnecessary technology involved?
• Is the available technology fully utilized?
• Are the systems interconnected to optimize data entry and movement?
• Quality at the Source
• How can higher-quality input be received by each processing step in the value
stream?
• Is there an opportunity to standardize or mistake proof activities?
• Labor Effort
• How can we eliminate unnecessary non-
value adding work, reduce the labor effort
in necessary non-value adding work, and
optimize value adding work?

94 August 1, 2016 – v8.0
• Value Stream Management
• Do policies need to be changed to enable improved performance?
• Are there organization/departmental/reporting structures that can be changed to
reduce conflicting goals or align resources?
• Do existing performance metrics (if any) encourage behavior or discourage
dysfunctional behavior?
• What key performance indicators (KPIs) will we use to monitor value stream
performance?
• Who will monitor the KPIs? How frequently? Who else will results be
communicated to?
• What visual systems can be created to aid in
managing and monitoring the value stream?
• Are the key processes within the value stream
clearly defined with their own KPIs, standard-
ized appropriately, and improved regularly?

95 August 1, 2016 – v8.0
Value Stream Mapping – Kaizen Events or “Bursts”
Raw
Material
Supplier
Tues. +
Thurs.
250 ft
rolls
TOP 1-3
Customer
7.5k pcs/day
-- 2.5k red
-- 5.0k green
25 pcs/box
1X Daily
TOP 1-3
CUTTING
C.T. – 1.5sec
C.O – 0
Up-Time – 75%
2 shifts
25,200 sec avail.
PRINTING
C.T. – 2.5sec
C.O – 65min
Up-Time – 95%
2 shifts
25,200 sec avail
X 3
BINDING
C.T. – 4.0sec
C.O – 25min
Up-Time – 55%
2 shifts
25,200 sec avail
X 4
SHIPPING
Staging
4.5 days 0.8 days 0.2 day 2.0 days
60 s 25 s 45 s % PE = 0.07 %VA
NVA
Production
Planning
MRP
30-60-90
Days Forecast6-weeks
Forecast
Weekly
Schedule Daily Ship
Schedule
Daily Orders
I I II
4,500 R
1,500 G
600 R
900 G
8,500 R
6,500 G
3 Rolls
4.5 Days
Rapid
Changeover
Kanban
Scheduling
Kanban
Scheduling
Uptime
Improvements
Standard
Work

96 August 1, 2016 – v8.0
Value Stream Mapping – Performance Targets
Key Performance
Indicator (KPI)
Current State Projected Future
State
Projected %
Improvement
Total Lead Time 30 Days 10 Days 66.7%
Total Cycle Time 480 Minutes 440 Minutes 8.3%
Total Processing Time 125 Minutes 100 Minutes 20.0%
Total value adding Time 60 Minutes 80 Minutes 33.3%
Process Efficiency 0.42% 1.25% 312.5%
Rolled Throughput Yield 82.3% 92.0% 9.7%
User defined ... … …
Based on the decisions made during the “Design Future State” phase, the Value
Stream Mapping Team should develop a transformation plan (next section) and
calculate the projected future state performance metrics utilizing the performance
matrix initially developed during the “Document Current State” phase (see above).

97 August 1, 2016 – v8.0
Value Stream Mapping – Managing the Work
• The third consideration that should drive the future state design and
development focuses on the stabilization and sustainability of the implemented
changes and improvements.
• Continuous performance review and improvements need to be imbedded into
the management of the value stream.
• Many organizations fail with the transformation of a value stream because
they don’t put a robust system and measures in place to address the above
challenges.
• Every value stream needs at least three to five relevant, accurate and precise
Key Performance Indicators (KPIs) that are tracked on a regular basis.
• Common indicators include Time, Cost, Quality, Safety, and Satisfaction/
Morale.

98 August 1, 2016 – v8.0
Value Stream Mapping – Activity Prioritization Matrix
Balanced Scorecard Project Selection Matrix
KPI#1
KPI#2
KPI#3
KPI#4
KPI#5
KPI#6
KPI#7
KPI#8
Weights 20 10 15 10 5 20 10 10 100 50 30 20 100 70 30 100
Project Definition
1 Project #1 10 0 5 0 0 3 0 0 3.4 5 0 5 3.5 0 5 1.5
2 Project #2 0 3 0 5 0 0 0 0 0.8 0 5 0 1.5 3 0 2.1
3 Project #3 5 5 10 10 3 3 8 8 6.4 3 8 5 4.9 5 8 5.9
4 Project #4 0 0 10 5 0 0 5 0 2.5 0 0 10 2.0 3 3 3.0
5 Project #5 5 10 0 0 1 0 0 3 2.4 10 5 3 7.1 3 5 3.6
Ranking 0 = none Not Started
3 = low On Track
5 = medium At Risk
8= high Behind Schedule
10= very high
CORRELATION MATRIX
MANAGEMENTRISK
TOTALRISK
PROJECTSTATUS
CAPITALRESOURCES
DURATIONOFPROJECT
TOTALEFFORT
TECHNICALRISK
EFFORT RISK
PEOPLERESOURCES
IMPACT
FINANCIALS
CUSTOMERS
PROCESSES
LEARNING&
GROWTH
TOTALIMPACT
Linking Performance Management
and Process Excellence through
focused Project Prioritization &
Selection

99 August 1, 2016 – v8.0
Value Stream Mapping – Activity Ranking Matrix
10
9
8
7
6
5
4
3
2
1
0
0 1 2 3 4 5 6 7 8 9 10
EFFORT
IMPACT
Size of the Ball = Size of the Risk
1
2
3
4 5

100 August 1, 2016 – v8.0
Value Stream Mapping → “Western Union Video”
“New Agent Process – Future State”
Link: https://www.youtube.com/watch?v=zgRRU_Ny4jY
(00:00 – 1:20)

101 August 1, 2016 – v8.0

102 August 1, 2016 – v8.0
Value Stream Mapping – Transformation Plan
1 2 3 4 5 6 7 8 9 10 11 12
3
Reduce Changeover Time for
Process X by 25%
Perfrom series of Kaizen events to
implement countermeasures
KE Tim Ward Jesse Altadonna
Agreement
Value Stream Mapping Faciltator
Date:
Signature:
Status
(0 - 100%)
Value Stream Transformation Plan
Scheduled Review Dates
July 3, 2015
Signature:Signature:
Date: Date:
Date Last Updated: January 21, 2015
Executive Sponsor Value Stream Owner/Champion
May 29, 2015
May 1, 2015
March 27, 2015
February 27, 2015
January 30, 2015
Champion
Execution
Method
Proposed CountermeasureMeasurable Target
Planned Timeline for Execution
November 17, 2014
Frank Adler (Operational Excellence Consulting)
Tim Ward (EVP Supply Chain & Operations Management)
Eva Martinez (Value Stream Manager)
Order Management (from order entry to order delivery)
Future State
Value Stream
Map Block #
Project Leader
Date Created:
Value Stream Mapping Facilitator:
Executive Sponsor:
Value Stream Owner/Champion:
Value Stream Name:
The final step after the transformation plan has been developed, is the briefing to get buy-in from
all relevant leaders about the path forward, the time and resources required to properly execute
the plan, as well as the organization’s ability to absorb the planned changes.

103 August 1, 2016 – v8.0

104 August 1, 2016 – v8.0
Value Stream Mapping – Transformation Plan Execution
• Final approval of Transformation Plan within one week of final briefing session
• Executive Sponsor and Value Stream Champion/Owner lead the socializing of
the Future State Map and the Transformation Plan
• Value Stream Champion/Owner
• drives overall implementation & change initiative,
• support work teams working on realizing the future state map,
• troubleshoots roadblocks & obstacles, and
• runs scheduled review meetings.
• Value Stream Champion/Owner also provides periodic updates to Executive
Sponsor (more frequent than review meetings)
• Executive Sponsor remains fully engaged, attends review meetings, monitors
transformation progress, “goes to the gemba”, address policies, resolve political
issues, …
• No Execution – No Improvement !!!

105 August 1, 2016 – v8.0
Value Stream Mapping Workshop – Example Agenda
Day 1
Morning
Day 1
Afternoon
Day 2
Day 3 →
Preparation

106 August 1, 2016 – v8.0

107 August 1, 2016 – v8.0
Value Stream Mapping – Basic Lean Management Tool Box
Lean Standard
Work
Quick / Rapid
Changeover
Work
Balancing
Kanban
Systems
Level
Loading
5S Visual
Workplace

108 August 1, 2016 – v8.0
Lean Standard
Work
Quick / Rapid
Changeover
Work
Balancing
Kanban
Systems
Level
Loading
5S Visual
Workplace

109 August 1, 2016 – v8.0
 Lean Standard Work (often also called Standardized Work) is one of the
building blocks or cornerstone of any Lean implementation.
 Lean Standard Work is a tool centered around human movement that
combines the elements of a job into the most effective sequence, without
waste, to achieve the most efficient method of performing a specific task.
 Lean Standard Work effectively combines people, product, and process
under the current conditions to improve quality, cost, safety, ease of
operations, etc.
 Lean Standard Work is an excellent tool to introduce an organization to some
basic Lean concepts such as value added vs. non-value added work, 7
Wastes, takt time, cycle time, work balancing, and Kanban methods.
 When implemented successfully, Lean Standard Work leads naturally to the
implementation of other Lean methods and tools, including 5S Visual
Workplace, Value Stream Mapping, Level-Loading, Mistake-Proofing, or Total
Productive Maintenance.
Value Stream Mapping – Lean Standard Work

110 August 1, 2016 – v8.0
Lean Standard Work – Definition & Objectives
A definition of Lean Standard Work is "the most effective combination of
manpower, materials and machinery to complete a specific task".
Standard Work results in a formally defined and documented process to
produce or perform a task at a specified pace.
Standard Work consists of three elements or objectives:
 First, does the rate at which the task is currently been
performed meet Customer demand and requirements?
 Second, does a precise work sequence exist in which an
operator performs the tasks?
 Third, are standard work-in-process inventory levels defined
required to keep the process operating smoothly?

111 August 1, 2016 – v8.0
Lean Standard Work – Benefits
 Lean Standard Work enables an organization to ensure that improvement
made are institutionalized and that best practices are identified, documented
and implemented.
 Documentation of the current process for all shifts results in
 a predictable process through the reduction in variability,
 easier training of new operators, and
 reductions in injuries and strain.
 It forms part of the base for Just-In-Time production by preventing over-
production.
 Standard work also adds discipline to the culture, an element that is
frequently neglected but essential for Lean to take root.
 A learning tool that supports audits, promotes problem solving, and involves
team members in developing mistake-proofing solutions.

112 August 1, 2016 – v8.0
Lean Standard Work – Three Basic Requirements
 Work - It is most likely impossible to establish a standard if the task is not done the
same way each time. If movements are different in each cycle, or if working
conditions constantly change, the standard will no longer function as a basis for
comparison. Since manufacturing often consists of repeating the same actions over
and over, each action can be standardized.
 Equipment - Since Standard Work functions best when in a repetitive cycle, it is
critical that equipment be up and running nearly all the time. When equipment is
down, it disrupts the natural flow of motion and destroys the normal pattern of the job
sequence. To ensure that the maximum benefits from Standard Work are achieved, it
is important to determine the root cause of machine stoppages and prevent them from
recurring.
 Quality - If defective parts are constantly stopping the line, it is extremely difficult to
maintain a smooth repetitive job sequence. Defects created in the process, or parts
and materials from outside the work area, can both play a very disruptive role and
prevent the maximum benefits of Standard Work from being achieved. The causes of
quality problems need to be researched and properly resolved when implementing
Standard Work.

113 August 1, 2016 – v8.0
Lean Standard Work – Implementation Process
Identify
Product or Part
Identify Process
or Process Step
Identify Process
Steps or Work
Elements
Determine
Takt Time
Determine Cycle Times
for each Process Step
or Work Element
Create Standard
Work Process
Study Sheet
Create Standard
Work Process
Capacity Sheet
Identify & Implement
Work Balancing
Opportunities
Changeover Reduction
Opportunities
Create Standard
Work Chart
Determine
Work Sequence
Determine
Standard Work-in-
Process Inventory
Kanban Opportunities
Create Standard
Work Combination
Table

114 August 1, 2016 – v8.0
Lean Standard Work – Process Study Sheet
v 2.0
Page: ____ / ____
Total MACHINE
1 2 3 4 5 6 7 8 9 10 Cycle Time Cycle Time
0 0Total
Notes
Observed Times
Date & Time: _____________Observer: __________________Product: __________________
Lean Standard Work: Process Study Sheet
OPERATOR: ________________________________________
Process Step Work Element
Process: __________________
Enter the Process
and Product Name
Enter Name of the
Process Observer
Enter the Date & Time
of the Process Study
Enter the Page Number
& Total Number of Pages
Enter the Name of the
Process Step being studied
Enter all Work Elements or
Tasks for each Process Step
Perform 6 – 10 Time Studies of each
Work Element for each Process Step
and record the results
Record the Cycle Time
that can be repeatedly
achieved by the Operator.
Enter the Name of the
Operator performing
the Process
Record and observations you have made
during the Process Study, e.g. special
incidences, improvement opportunities, …)
Record the machine time
for the Work Element

115 August 1, 2016 – v8.0
Lean Standard Work – Process Study Sheet
Time Study Tips
 Collect the data real time observing the actual process
 Position yourself so that you can see the operator's hand motions
 Time each work element separately
 Time several (6 to 10) cycles of each work element
 Observe an operator who is qualified to perform the job
 Always separate operator time and machine time
 Select the lowest repeatable time for each element
 Remember shop floor courtesy

116 August 1, 2016 – v8.0
Lean Standard
Work
Quick / Rapid
Changeover
Work
Balancing
Kanban
Systems
Level
Loading
5S Visual
Workplace

117 August 1, 2016 – v8.0
Value Stream Mapping – Making Work Flow
• Create Flow - Make the product or service creation and delivery process flow
through the remaining value-added steps.
• Ideally, the “work item” passing through the value stream never stops. It moves
effortlessly from person to person, work team/station to work team/station,
department to department, … without hang-ups, hiccups, or unnecessary
delay.
• Ask yourself – “What is preventing the lead time from being the same as the
processing time for each and every process step or activity?”

118 August 1, 2016 – v8.0
Value Stream Mapping – Takt Time vs. Cycle Time
 If Takt Time and Cycle Time are not the same, an imbalance exist in the process or
process step. A non-balanced process can result in idle time, excessive in-process
inventory, quality issues, late orders, and therefore waste.
 If Cycle Time is less than or equal to the Takt Time, the process will be able to satisfy
Customer demand.
 If the Cycle Time is greater than the Takt Time, the process cannot satisfy Customer
demand.
0
5
10
15
20
25
30
1 2 3 4 5
Time(s)
Operator
Takt Time
(20s)
Step 1
Step 1
Step 1 Step 1 Step 1
Step 2
Step 2
Step 2
Step 2
Step 2
Step 3
Step 3
Step 3
Step 3
Step 4
Step 5
Step 4
Step 4
Process Flow

119 August 1, 2016 – v8.0
Value Stream Mapping – Planned Cycle Time
 Planned Cycle Time is the required production rate to satisfy the Customer demand
allowing for scrap, rework, downtime, change-overs and other inefficiencies (wastes).
 The objective of other Lean methods and tools is of course to minimize these losses and
reduce the gap between Takt Time and Planned Cycle Time.
0
5
10
15
20
25
30
1 2 3 4 5
Time(s)
Operator
Takt Time
(20s)
Step 1
Step 1
Step 2
Step 2
Step 2
Step 2
Step 2
Step 3
Step 3
Step 3
Step 3
Step 4
Step 5
Step 4
Step 4
Planned
Cycle Time
(18s)
Process Flow

120 August 1, 2016 – v8.0
Value Stream Mapping – Work Balancing
Theoretical # of Workers
= --------------------------------
= --------------------------------
= 3.75 = 4 Workers
0
2
4
6
8
10
12
14
16
18
20
22
1 2 3 4 5
Time(s)
Process Step
Takt Time
(20s)
18s
12s
19s
12s
14s
Total Work Time
Takt Time
18 + 12 + 19 + 12 + 14
20
 The objectives of Work Balancing are to
 ensure that the cycle times for all process steps are similar
 ensure that the cycle time of each process step is below the required takt time

121 August 1, 2016 – v8.0
Value Stream Mapping – Work Balancing
0
5
10
15
20
25
30
1 2 3 4 5
Time(s)
Operator
Takt Time
(20s)
Step 1
Step 6
Step 2
Step 7
Step 11
Step 14
Step 18
Step 3
Step 8
Step 12
Step 15
Step 4
Step 5
Step 9
Step 16
BeforeAfter
0
5
10
15
20
25
30
1 2 3 4 5
Time(s)
Operator
Takt Time
(20s)
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10
Step 11
Step 12
Step 13
Step 14
Step 15Step 16
Step 17
Step 18
Work Balancing Work Balancing

122 August 1, 2016 – v8.0
Lean Standard
Work
Quick / Rapid
Changeover
Work
Balancing
Kanban
Systems
Level
Loading
5S Visual
Workplace

123 August 1, 2016 – v8.0
Value Stream Mapping – 5S Visual Workplace
Japanese Translation English Target
Seiri Organization Sorting Space
Seiton Neatness Simplify Access
(Set in Order)
(Straighten)
Productivity
Seiso Cleaning Sweeping
(Shining)
Facility
Seiketsu Standardization Standardization Maintain
Shitsuke Discipline Sustain (Self-
Discipline)
Culture

124 August 1, 2016 – v8.0
SORT means clearly distinguishing between (1) what is needed and to be kept and (2) what is
unneeded and to be discarded.
SET-IN-ORDER means organizing the way needed things are kept so that anyone can find, use and
return them easily.
SHINE means thoroughly cleaning the work area and everything in it. The goal is (1) to turn the work
area into a clean, bright place where people enjoy working, (2) to review the first two Ss, and (3) to find
the source of dirt or litter and eliminate it. Shine should become so deeply ingrained as a daily work
habit that tools are always kept in top condition and are ready for use at any time.
STANDARDIZE means the development and implementation of a detailed plan to maintain SORT, SET-
IN-ORDER, and SHINE. The plan should include the creation of procedures and simple daily checklists
that are to be visibly posted in each work area; the checklist should serve as a visual to ensure that the
daily 5S requirements are being met. Standardized cleanup integrates sort, set in order, and shine into a
unified whole.
1.
Sort
(Seiri)
2.
Set-in-Order
(Seiton)
3.
Shine
(Seiso)
4.
Standardize
(Seiketsu)
5.
Sustain
(Shitsuke)
Value Stream Mapping – 5S Visual Workplace
SUSTAIN means always following specified (and
standardized) procedures. Sustain requires self-
discipline. Without discipline, it is impossible to
maintain consistent standards of quality, safety, clean
production, and process operation.
SAFETY  Sometimes used as the 6th S. We believe
that Safety is a natural consequence of the successful
implementation of a 5S Visual Workplace initiative.

125 August 1, 2016 – v8.0
1. Reduction of Waste (mainly defects, motion, waiting, &
transportation) results in lower costs !
2. Reduction in equipment breakdowns results in higher
equipment availability !
3. Reduction in delays results in a higher fill rate and on-time
deliveries!
4. Reduction in defects results in less rework !
5. Reduction in complaints results in greater Customer
satisfaction !
6. Reduction in injuries results in lower costs !
7. Reduction in changeover time results in less downtime !
8. A cleaner work environment results in higher employee
satisfaction !
5S Visual Workplace - The Benefits
Ownership
Moral
Productivity
Safety
Shareholder
Satisfaction
9. Lower costs and higher shareholder satisfaction result
in improved profitability !!!

126 August 1, 2016 – v8.0
1. Have an Implementation & Communication Plan !!!
2. Leadership – Drive it from the Top and Walk the Talk.
3. Employee Involvement & Empowerment – Provide adequate training,
nominate 5S Leaders, and establish a 5S Action and Audit Teams.
4. Focus – Establish 5S focus areas with employee ownership.
5. No Scared Cows – 5S is not just about the production floor. Include
shipping & receiving, warehouses, and offices.
5S Visual Workplace - Key Success Factors
6. Organize & Beautify – Paint is an inexpensive
and terrific tool for supporting any 5S
implementation.
7. Accountability – Hold leaders and teams
accountable to the established work area
requirements (discipline).
8. Evaluate & Improve – Perform weekly 5S
audits with owners in each focus area. Measure
progress and post scores.
Make it fun and
celebrate progress !!!

127 August 1, 2016 – v8.0
5S Visual Workplace - Implementation Process
Step 1
Establish a 5S Organization
Step 2
Establish a 5S Implementation Plan
Step 3
Create 5S Campaign Material
Step 4
In-House 5S Education
Step 6
5S Evaluation, Scoring and Follow-Up
Step 5 5S Implementation
SORT
(Red-Tag Strategy)
SHINE
SET-IN-ORDER
(Signboard Strategy)
STANDARDIZE
SUSTAIN

128 August 1, 2016 – v8.0
Lean Standard
Work
Quick / Rapid
Changeover
Work
Balancing
Kanban
Systems
Level
Loading
5S Visual
Workplace

129 August 1, 2016 – v8.0
Value Stream Mapping – Kanban System
Kanban is a Japanese word that means signboard or signal card. Kanban systems were first
introduced by Toyota in the 1950s as a scheduling system to determine what to produce,
when to produce it, and how much to produce.
Kanban systems lead to an improved process flow, reduced scheduling activities and can
result in significant inventory reduction.
Kanban scheduling systems are useful when
• lot sizes differ between process steps,
• processes are unbalanced, or
• when distance introduces time lag or variability

130 August 1, 2016 – v8.0
Value Stream Mapping – Benefits of a Kanban System
• Work in process between processes is always maintained and managed
• Process materials are readily available and easily counted when necessary
• Quicker quality feedback loop
• Fewer errors as the feedback is done more efficiently
• Work place is better organized, more comfortable, and safer
• Over-production (waste) will be at minimum
• Less Finished Goods Inventory is required
• Makes the vision of Lean Management possible
• Many more …

131 August 1, 2016 – v8.0
Value Stream Mapping – Basic Kanban Concept
The basic concept of a Kanban system can be easily observed in a
supermarket.
In a supermarket, every item has a defined inventory location that holds a specific
quantity of the item.
Customers select the required quantity of a specific item and proceed to the
checkout counter.
At the checkout counter, the cashier scans
each item and a signal will be transmitted to
the supermarket’s database, indicating the
items part number and quantity that has
been “consumed”.
Once a certain quantity of a specific item
has been consumed, a supermarket
employee will take for example a carton of
that item from the warehouse and refill the
shelf-space in the store.

132 August 1, 2016 – v8.0
Value Stream Mapping – Kanban Cards
• Originally, Kanban systems utilized physical cards that move back and forth
between the “customer” process and the “supplier” process, serving as a
signaling to trigger the movement, production, or supply of material. Electronic
or e-Kanban systems are nowadays more common, and are able to improve on
some of the drawbacks of manual Kanban systems.
• Kanban cards, which may be multicolored based on priority, show at a
minimum the internal part number & description, supplier name, supplier part
number & description, restocking location, and the re-ordering quantity.
• The most commonly used Kanbans are:
– “Withdrawal" or “Move” Kanbans – This Kanban is used to
relocate items from one work area or sub-process to
another.
– “Production" Kanban – This Kanban is used to replace the
items when they are consumed or sold.
– “Signal” Kanban – This Kanban is used to initiate
production or replenishment of a predetermined batch size
of a specific item.

133 August 1, 2016 – v8.0
Value Stream Mapping – Single-Card Kanban
In a single-card or one-card Kanban scheduling system, a “Signal” Kanban
card is taken from the Kanban location once a defined minimum stock quantity
has been reached.
The card is then for example placed on a Kanban board, signaling the need for
a stock replenishment order.
The “supplier” process responsible for the replenishment of the Kanban location
schedules its production based on the Kanban board and replenishes the
Kanban location.
The minimum stock quantity that signals or triggers the replenishment request
needs to assure that the remaining on hand inventory is sufficient until the
replenishment stock arrives and is based on the average consumption,
consumption fluctuation, and replenishment lead time.

134 August 1, 2016 – v8.0
Value Stream Mapping – Single-Card Kanban Example
The images below illustrate a simple example of a single-card Kanban system to
prevent coffee stockouts in the office.
The minimum stock has been determined as one box of “K-cups” and a Kanban
card is attached to the last box.
As soon as an employee opens the last box, he/she removes the Kanban card
and orders a predefined number of “K-cups” boxes or places the card in a pre-
defined location to trigger the replenishment process.

135 August 1, 2016 – v8.0
Value Stream Mapping – Dual-Card Kanban
A dual-card or two-card Kanban scheduling system uses "Withdrawal" and
"Production" Kanban cards.
One card is attached to each container holding a pre-defined quantity of items.
To relocate or move a container from the “supplier” process to the “customer”
process for consumption, the attached “Production” card is removed from the
container and placed on the Kanban board.
The “Withdrawal” card is then attached to that container and the container is
moved to the “customer” process for consumption.
The “supplier” process schedules production
based on the cards on the Kanban board and
pre-defined scheduling rules.
Once a container of items has been produced,
a “Production” card is removed from the
Kanban board and attached to the container.

136 August 1, 2016 – v8.0
Value Stream Mapping – Dual-Card Kanban – Summary
“Supplier”
Process
“Customer”
Process
Kanban Board
Phase 1: “Customer” process moves an empty
container with a “Withdrawal” card to the
“supplier” process.
“Supplier”
Process
“Customer”
Process
Kanban Board
Phase 2: “Customer” process places the “Production”
card of a full container on the Kanban board and
replaces it with the “Withdrawal” card from the empty
container.
“Supplier”
Process
“Customer”
Process
Kanban Board
Phase 3: “Customer” process moves the full
container with the “Withdrawal” card to the
“Customer” process.
“Supplier”
Process
“Customer”
Process
Kanban Board
Phase 4: “Supplier” process produces new items and
attaches the “Production” card from the Kanban board
to the full container.
Standard Container (full) Standard Container (empty) “Production” Card “Withdrawal” Card
1 2
3 4

137 August 1, 2016 – v8.0
Value Stream Mapping – Dual-Card Kanban Example
A very effective application for a dual-card Kanban scheduling system is the
“decoupling” of two very different sub-processes, for example a machining process
and an assembly process.
A machining process is often fairly automated, resulting in high depreciation costs,
and requires significant setup time to change over from one product to another,
resulting in low utilization when producing small batches of different items.
An assembly process is often less capital intense and requires no or very little
changeover time.

138 August 1, 2016 – v8.0
Kanban Systems – Kanban or Heijunka Board
Empty containers at Supplier Process,
but sufficient inventory at Customer
Process → Production can wait.
Empty containers at Supplier Process
and insufficient inventory at Customer
Process → Production required
immediately.

139 August 1, 2016 – v8.0
Value Stream Mapping – Supermarket
• Customer Process goes to the Supermarket and withdraws what it needs when it needs
it. Supplying Process produces to replenish what was withdrawn.
• Purpose: Controls production at supplying process without trying to schedule. Controls
production between flows.
Supplying
Process
Customer
Process
"Production" Kanban "Withdrawal" Kanban
SUPERMARKET
Product ProductA B

140 August 1, 2016 – v8.0
Value Stream Mapping – FIFO Lane
• In some cases a FIFO Lane between two decoupled processes can be used to
substitute for a Supermarket. A FIFO Lane is like a chute that can hold only a certain
amount of inventory, with the supplying process as the chute entrance and the customer
process at the exit.
• If the FIFO Lane gets full, the supplying process must stop producing until the customer
process has used up some of the inventory.
Supplying
Process
Customer
Process
SUPERMARKET
FIFO Lane
max. 20 pieces
A B
FULL ?
Kanban

141 August 1, 2016 – v8.0
Value Stream Mapping – Sequenced Pull
• Sometimes one can install a “Sequenced Pull” between 2 processes,
instead of a complete Supermarket or a FIFO Lane.
• Sequenced Pull means that the supplying process produces a
predetermined quantity of parts (e.g. one subassembly) directly to the
customer process’ order. This works if lead time in the supplying process is
short enough for “production- or build-to-order”, and if the customer
process follows strict “ordering” rules.
• Sequenced Pull is sometimes called the “Golf Ball
System” because colored balls or disks (that roll nicely
down a chute to the supplying process) are sometimes
used to provide production instruction.

142 August 1, 2016 – v8.0
Value Stream Mapping – Pacemaker Process
• Try to send the Customer schedule to only one production process, the
pacemaker process.
• A process is called the pacemaker process, because it is used to control
production and sets the pace for all upstream processes.
• Note, the material transfer from the pacemaker process downstream to
finished goods need to occur as a flow.
Supplying
Process
Supplying
Process
Customer
Process
Customer
Process
Pull max. 20 pieces
DFIFO Lane CUSTOMERA
max. 50 pieces
FIFO LaneB C
SCHEDULE = Pacemaker Process
FLOW DownstreamUpstream

143 August 1, 2016 – v8.0
Lean Standard
Work
Quick / Rapid
Changeover
Work
Balancing
Kanban
Systems
Level
Loading
5S Visual
Workplace

144 August 1, 2016 – v8.0
Value Stream Mapping – Level Production Volume
• A tool that some organizations use to help level both the mix and the volume of
production is a load-leveling box.
• A load-leveling box has a column of Kanban slots for each pitch interval, and a row of
Kanban slots for each product type. In this system Kanban indicate not only the quantity
to be produced, but also how long it takes to produce that quantity (based on Takt
Time).
• Kanban are placed (loaded) into the leveling box in the desired mix sequence by
product type.
Supplying
Process
Customer
Process
Customer
Process
C
max. 50 pieces
FIFO LaneB
max. 20 pieces
DFIFO Lane CUSTOMER
Schedule for Pacemaker Process

145 August 1, 2016 – v8.0
Value Stream Mapping – Leveling Production Mix
• Leveling the Product Mix means distributing the production of different products evenly
over a time period. For example, instead of assembling all the “Type A” products in the
morning and all the “Type B” products in the afternoon, leveling means alternating
repeatedly between smaller batches of “A” and “B”.
• The more you level the product mix at the pacemaker process, the more able you will be
to respond to different Customer requirements with a short lead time while holding little
finished-goods inventory. This also allows the upstream Supermarket to be smaller.
Inventory &
Customer Dissatisfaction
COST
Changeovers &
Productivity
COST

146 August 1, 2016 – v8.0
Lean Standard
Work
Quick / Rapid
Changeover
Work
Balancing
Kanban
Systems
Level
Loading
5S Visual
Workplace

147 August 1, 2016 – v8.0
Value Stream Mapping – Quick Changeover or SMED
 Quick Changeover or Single-Minute Exchange of Die (SMED) provides a
rapid and efficient way of converting a manufacturing process from running
the current product to running the next product.
 Rapid changeovers are a key to reducing production lot sizes and improving
flow.
 The phrase "single minute" does not mean that all changeovers and startups
should take only one minute, but that they should take less than 10 minutes
(in other words, "single-digit minute").

148 August 1, 2016 – v8.0
Value Stream Mapping – Quick Changeover Definitions
 Changeover or setup activities can be classified using the following three
categories.
 Waste – Activities which do not add value to the changeover or setup
 Internal - Activities that can only be performed while the equipment is shut down
 External - Activities that can be performed without shutting down the equipment
 Key strategies to reduce setup and changeover time are:
 Eliminate the waste activities
 Convert as many internal activities to external activities
 Internal activities can be improved by:
 Use specially designed cart to organize tools
 Use quick-release fasteners instead of bolts and nuts
 Use stoppers to quickly position the jigs.
 Use overhang mechanisms to handle heavy jigs
 Use locating pins and holes to eliminate the adjustment

149 August 1, 2016 – v8.0
Value Stream Mapping – Quick Changeover Process
There are seven basic steps to reducing changeover using the SMED system:
1. OBSERVE the current methodology (A)
2. Separate the INTERNAL and EXTERNAL activities (B).
3. CONVERT (where possible) internal activities into external ones (C) (pre-heating of
tools is a good example of this).
4. STREAMLINE the remaining internal activities, by simplifying them (D). Focus on
fixings – For example, it is only the last turn of a bolt that tightens it - the rest is just
movement (waste).
5. STREAMLINE the external activities, so that they are of a similar scale to the internal
ones (D).
6. DOCUMENT the new procedure, and actions that are yet to be completed.
7. DO IT ALL AGAIN: For each iteration of the above process, a 25-35% improvement
in set-up times should be expected, so it may take several iterations to cross the ten
minute line.

150 August 1, 2016 – v8.0
Quick Changeover – 1. Observe Current Process
1. Observe the current Changeover Process
 I find it often very helpful to start a Quick Changeover reduction
initiative by actually videotaping the major activities currently
performed during the changeover process and to review the video
with the improvement team.
 The key outputs of this first step are to document each step of the
changeover process, as well as determine the cycle time of each
step and for the entire changeover process. A simple Excel
spreadsheet will normally be sufficient to document the results of this
and the following steps.

151 August 1, 2016 – v8.0
Quick Changeover – 2. Separate Activities
2. Separate the Internal and External Activities
 Once the team has a clear understanding of the key activities
involved in a changeover, each step needs to be classified using
one of the following three categories.
 Waste – Activities which do not add value to the changeover
or setup
 Internal - Activities that can only be performed while the
equipment is shut down
 External - Activities that can be performed without shutting
down the equipment
 The results will be documented in the same spreadsheet created in
Step 1.

152 August 1, 2016 – v8.0
Quick Changeover – 3. Convert Activities
3. Convert Internal Activities into External Activities (where
possible)
 During this step, the team identifies internal changeover activities,
means activities that are currently performed while the equipment
is shut down, that can be converted into external activities, means
they can be performed before or after the equipment shutdown.
This can include, organizing all the tools needed for the
changeover or pre-assembling of tools prior to the equipment
shutdown.

153 August 1, 2016 – v8.0
Quick Changeover – 4. Internal Activities
4. Streamline and simplify the remaining Internal Activities
 In Step 4 the team focuses on those activities that currently need to
be performed during the equipment shut down, means the internal
activities, and develops solutions to simplify or speed up those
activities.
 Examples include,
 it is only the last turn of a bolt that tightens it - the rest is just
movement (waste)
 usage of quick-release fasteners instead of bolts and nuts
 usage of stoppers to quickly position jigs
 usage of locating pins and holes to eliminate time consuming
adjustments

154 August 1, 2016 – v8.0
Quick Changeover – 5. External Activities
5. Streamline and simplify the External Activities
 In Step 5 the team focuses now on the external activities, means
activities that can be performed before or after the equipment shut
down, and develops solutions to simplify or speed up those
activities.
 Examples include
 the usage of specially designed cart to organize tools,
 the usage of overhang mechanisms to handle heavy jigs, or
 the training of line operators to perform specific changeover
tasks.

155 August 1, 2016 – v8.0
Quick Changeover – 6. Document & Standardize
6. Document and implement the new Changeover Process
 Once a new and improved Changeover Process has been
established, it needs to be properly documented, all employees
involved need to be trained, and a new baseline for the new reduced
total changeover time needs to be established.

156 August 1, 2016 – v8.0
Quick Changeover – 7. “Do it all again”
7. “Do it all again”
 Based on our experience, it is not uncommon for an organization to
reduce changeover time by 30 – 50% after a successful changeover
reduction project or a series of smaller Kaizen events.

157 August 1, 2016 – v8.0
The End …
“Perfection is not attainable, but if we chase perfection we can catch
excellence.” - Vince Lombardi

158 August 1, 2016 – v8.0
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