Value Stream Mapping
The third step in the Blackerby Associates transformation methodology is the improvement plan. The basic tool in developing a transformation improvement plan is Value Stream Mapping.
A value stream mapping process is accomplished in six basic steps:
- Identify the value streams. Printers should identify the classes of work that involve substanially the same processes. Matrix recent jobs against the processes performed, and group products together that share the same processes. These groupings are the value streams.
- Map the current state. Pick the value stream with the highest gross revenues first, but map all the value streams. Using the value stream mapping techniques, map the current state showing how it actually works. Do not map how it is supposed to work, or how you want it to work; map how it actually works.
- Measure the value stream. Take a measurement snapshot of the entire value stream. You need five measurements:
- Inventory: For each inventory point, count the inventory for each product at a set point in time. Typically, count the inventory point that precedes each process.
For each process in the value stream, count:
Identify improvement opportunities. Systematically go through the current state value stream map to identify opportunities to set up inventory supermarkets, replenishment signals, manufacturing cells, one-piece or reduced-batch flows, etc.
Map the future state. Use the value stream mapping techniques to map the future state, showing how the value stream will operate after 6-9 months of continuous improvement, implementing the improvement opportunities identified in the previous step.
Plan implementation. Prioritize and sequence the improvement projects that will move the organization from the current state to the future state. For each project: identify a target measure of improvement (for example, "Reduce set-up time from 30 minutes to 10 minutes"); identify a champion responsible for the implementation; set a start date and an end date; identify any additional resources (people, supplies, etc.) needed, and allocate those resources. Put all the improvement projects onto a single Gantt chart. Execute the implementation plan.
- Cycle time: The amount of time required to execute the process on one product item (or common unit of product).
- Changeover time, or set-up time: If the process requires kitting, preparation or equipment, measure the time from the last good product of the previous run to the first good product of the next run.
- First pass yield: Measure the percentage of products that emerge from the process meeting quality standards.
- Reliability: Measure the percentage of working time that equipment is ready and available for executing the process. The equipment is not ready and available when it is undergoing preventative maintenance or unscheduled down time, or an operator is not available to run it.