Lean Six Sigma

Lean Six Sigma Value Stream Mapping

Value Stream Map Example

Order Mgmt Supervisor
CUSTOMER

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Service lead time = 384 min Weekly Update Customer call time = 24 min

Phone Call

Phone Call

Order Mgmt
Screen for Acct Mgr

P/T = 3 min

Manual Update

SUPPLIERS

Lost calls=10%
Volume=1200

Large Business Order Mgmt Small Business Customer Info

4

Order Mgmt Product Need

Order Mgmt Pricing

4

Order Mgmt Shipping Info 20 Orders

DIST
10

Pick Pack & Ship

P/T = 2 min Error Rate=2% Volume=800

P/T = 6 Min Error Rate=0% Volume=800

P/T = 6 Min Error Rate=2% Volume=800

P/T = 2 Min Error Rate=1% Volume=800

P/T = 120 Min Error Rate=1% Volume=1200

Home

5 min 3 min 2 min 6 min 6 min 2 min

240 min 120 min

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Analysis Tool: Value-Add Assessment

Assessing Types of Tasks
Value Adding Steps essential to deliver product or service according to customer requirements. Three criteria:
1. Transforms the item or service toward completion 2. Customer cares (would be willing to pay for it) 3. Done right the first time

Lean Six Sigma

Business Value Adding Steps that are not essential to the customer but the business has to perform
Non-Value Adding Steps that do not qualify as Value Add or Business Non-Value Adding

Analysis Tool: Process Cycle Efficiency

Process Cycle Efficiency = Value Add Time
Total Cycle Time
Application Machining Assembly Transactional Processes Creative/Cognitive Processes Typical Cycle Efficiency 1% 15% 10% 5%

Lean Six Sigma

World Class Cycle Efficiency 20% 35% 50% 25%

Analysis Tool: Task Time Chart

1. Record task time for each process step

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2. Display the customer takt rate (units to process per time)

Mortgage Delinquency Per Call Task Times
Customer Requirement Rate (Takt Time) = 2.0 min/task 140 120 Seconds 100 80
Need to reduce to meet customer demand! Need to reduce to meet customer demand!

60
40 20 0
Research Process Dial Contact Follow-up

Tasks
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Author

Lean Six Sigma

Steven Bonacorsi is a Senior Master Black Belt instructor and coach. He has trained hundreds of Master Black Belts, Black Belts, Green Belts, and Project Sponsors and Executive Leaders in Lean Six Sigma DMAIC and Design for Lean Six Sigma process improvement methodologies. Steven is a board member for the Boston Chapter of the Industry of Industrial Engineers. Full Bio: http://www.linkedin.com/in/stevenbonacorsi Lean Six Sigma White Belt Certification: Add Lean Six Sigma White Belt (Basic Awareness) Training and Certification to your Resume or Job Skills. Learn topics from one of the original Master Black Belts and world experts on Value Stream Mapping, 5s, Process Capability, Deployment Planning, Roles and Responsibilities, FMEA Risk Analysis, Control Plans and more. Certificates will be signed for all who complete the 2 hour training session.

Learn More about The AIT Group

http://www.theaitgroup.com

Lean Six Sigma

Who is AIT?
AIT is a premier provider of Lean, Six Sigma and Supply Chain solutions. Solutions are customized to the customer not one size fits all. The company was started in 1998 by three individual that recognized extremely early in the industry how well Lean, Six Sigma and Supply Chain disciplines integrate. Our goal is the complete transfer of knowledge via client specific solutions not training. Your instructors from AIT are Certified Master Black Belts and Lean Experts. We have worked with many different clients and some of the largest companies in the world. We have Offices in the US, Europe, Mexico and China.

Lean Six Sigma

The AIT Group is an international consulting firm that has been specifically designed to help companies increase profitability by improving overall business performance and customer satisfaction through the integrated application of:

Lean

Supply Chain Mgmt. Value $ Six Sigma

www.theAITgroup.com

The AIT Group excels in implementation not recommendation!

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