Value Stream Mapping and Analysis

A core tool in Operational Excellence is Value Stream Mapping. This tool helps stakeholders visualize
complex work systems (including material and information flows) and address disconnects,
redundancies, and gaps in how work gets done between the beginning and end of a value stream or
end-to-end process.

  • The primary type of value stream is one in which a product or service is requested by, and
    delivered to, an external customer. Examples include request to receipt, order to delivery, and
    quote tocash.
  • Other value streams which support the delivery of value are called value-enabling or support
    value streams. Examples include recruiting, onboarding, IT support, and annual budgeting.
    Since it is nearly always a mistake to initiate changes without having a clear picture of how the
    system is currently functioning, we are beginning our Course Project with the creation and analysis of
    a Value Stream Map.
    Instructions
    For this assignment, select a value stream in your organization that can benefit from analysis and
    improvement. As noted previously, the value stream (or end-to-end process) selected does not need to
    be overly large or complex. Select something which has the potential for meaningful improvement, but
    which is manageable within the scope of this assignment.
    1) Develop a current state Value Stream Map of your selected value stream. Show the
    customer demand rate (or Takt), information flow, work flow, and summary timeline on the
    map.
    2) Document key metrics for each process block:
  • Process Time (PT)
  • Lead Time (LT)
  • Percent Complete and Accurate (%C&A)
  • Any other appropriate metrics, such as number of operators, changeover time or setup
    time, batch size, and % uptime.
    3) Calculate the current state summary metrics:
  • Total lead time (Total LT)
  • Total process time (Total PT)
  • Activity Ratio (AR)
  • Rolled Percent Complete and Accurate (Rolled %C&A)
    JWI 550: Operational Excellence
    Assignment 1
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    550 Assignment 1 (1236) Page 2 of 4
    4) Describe the current state of the value stream and highlight any performance deficiencies and
    challenges, such as delays, excessive WIP, bottlenecks, capacity, and workload imbalances,
    rework, poor quality yields, long lead times, and other operational issues.
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