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chap 5_2010 - Chapter 5 Value Stream Mapping 5 Principles...

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Chapter 5 Value Stream Mapping
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5 Principles of LEAN
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Mapping the value stream Following the product or product family from beginning to end (really from end to beginning). Each value-added and non-value added step is noted and timed What does value added mean?
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What is value added? Value added (VA) activities are those that customer is willing to pay for. (Also called customer value-added CVA). They transform the product service or transaction in a way that is meaningful to the customer. Examples? Non-value-added (NVA) are all those activities required by a business to execute work that adds no value from a customer point of view and that customers are not willing to pay for. Examples?
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Should all NVA steps be eliminated? What about: Equipment maintenance? Janitor service? Payroll? Internal audit? Budget forecasting… These don’t add-value to the customer, but are necessary for the functioning of the business. So really there are 3 types of steps in a value stream: 1. Steps that create value 2. Steps that create no value but are necessary 3. Steps that create no value and therefore can be eliminated.
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Traditional vs. Waste elimination approach Total lead-time through Value Stream Muda (waste) and non value added activities. Value Added Waste elimination focus Muda (waste) and non value added activities. Value Added Reduce wasted time Traditional improvement focus Muda (waste) and non value added activities. Value Added Make value added twice as fast
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So what is Value Stream Mapping? Value stream mapping is a tool that helps you see and understand the flow of material and information as a product/service makes its way through the value stream. Usually a pencil and paper process at first. Carefully draw a visual representation of every process in the material and information flow. Then ask a set of key questions and draw a “future state” map of how value should flow.
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Why is VSM an essential tool? “The real voyage of discovery consists not in making new landscapes but in having new eyes.” –Marcel Proust (1871-1922), Novelist Helps you visualize more than just the single-process level, you can see the whole flow.
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