Lesson Objectives for Session 2

Illustrate and measure the path of material or information flow using

a Spaghetti Diagram.
Identify the interactions and bottlenecks that dictate material or
information flow of an extended process using a Value Stream Map.
How to characterize processes with a SIPOC Map.
Purpose and components of the Project Charter.
Understand how Customer Expectations drive the process.
Understand the dynamics of Customer Expectations.
Use an Affinity Diagram to identify Critical To Quality Characteristics
(CTQ's or CTQC's).
Use a Tree Diagram to identify Critical To Quality Characteristics
(CTQ's or CTQC's).
Understand the elements of the Value Stream and how to map it with
performance metrics.
Identify non-value-added operations and create a Value-Added Flow
Chart.
2.1 Introduction to the Define Phase

Tools for Improvement - Define

The first step on the path to improvement is to decide what to work on -

prioritizing. The Define Phase of a DMAIC project sets the course of action
by capturing and translating the voice of the customer, and then examines
the organization's business processes to identify the areas of greatest
opportunity. Every organization has limited resources, so setting priorities
correctly to address real customer issues and align actions with intentions
is a necessary foundation for success.

This session provides detailed instruction regarding the process

improvement tools that are used within the Define phase of the DMAIC
process, as shown by the learning objectives link in the right margin.

As with all phases of DMAIC, the Define Phase is all about asking and
answering critical questions. Watch the video below to learn more:
*Explanatory video available online only; Transcript provided.
2.2 Project Charter Toolset - Intro

The Project Charter

Once the priorities for Lean Six Sigma projects are developed, the next
step is to craft a Project Charter, which defines the mission and scope of
action for a Lean Six Sigma team. The Project Charter is reviewed and
approved by the project Champion or Sponsor, and gives the team
authorization to dedicate organizational resources to the project.

The charter gives high level direction and authorization to the team. It
answers several basic questions that are fundamental to Lean Six Sigma:

What is the goal (mission) of the project?

Why are we pursuing this goal (problem/opportunity statement)?
How does it relate to the business plan and to the bottom line (the
business case)?
What are all of the outputs (deliverables) of this project?
Who are the players? -Team Leader, Team Members, Sponsor
Who are the primary stakeholders?
When is the team starting?
When will the project be completed?
How will we measure success?
As the team forms and takes actions the charter will be continually refined
and expanded. As a controlled formal document, all revisions should be
approved by the Champion and tracked.
Case Study

A Good Fix For The Wrong Problem

In 1979, the U.S. Mint introduced the Susan B. Anthony dollar coin in order
to reduce the ongoing cost of replacing one dollar bills. The new coin was
designed to improve durability compared to paper bills. However, the coin
never caught on with the public because it was heavier than paper, too
similar in size to the quarter, and too cumbersome for retailers. So the
new dollar failed to resolve the original problem. It was indeed a more
durable product, but durability doesn't matter if customers won't use the
product in the first place. Durability was more of a problem for the
producer (U.S. Govt.) than for the customer. A well-developed charter
would have helped the U.S. Mint avoid this failed product by stating the
problem in customer terms.
2.2 Project Charter Toolset - Example

Charter Example
In this example, a Lean Six Sigma team at Acme Building Products has
initiated a project to improve the order fill rate. Acme is at risk of losing its
major customer, and 25% of its sales volume, all because fill rates fall short
of customer requirements. Improvement in the fill rate has been identified
as the number one Lean Six Sigma project priority. We'll use this service
process example to illustrate the chartering process, as shown below:

Project Charter

Project Fill Rate Business/Location Acme Building

Name Improvement Products

Team Jess Ficzet Champion Ari Sultz

Leader 123-456-7890 123-456-7972

Project Improve line item order fill rate of outbound

Description/Mission: shipments to meet customer requirements.

Problem Statement: The current line item fill rate average of 95% is far
below customer requirements of 98%.

Business Case: Our largest customer, Mega-Box Home

Improvement Centers, requires an average line
item fill rate of 98% or greater. Mega-Box
represents 25% of sales, or $217,000,000. Failure
to meet delivery requirements may lead Mega-
Box to move all or part of our volume to other
suppliers.
Deliverables: Revised ordering Goals/Metrics
and scheduling
procedures, Line Item Fill
Improved line Rate
item fill rate, Inventory
improved Turns
inventory turns, Labor
increased Hours/Cubic
warehouse Foot Shipped
productivity

Process & Owner: Order Fulfillment Process. Operations Manager

Project Scope Process extends Project Scope Manufacturing

- Is: from Scheduling, - Is Not: production
through process
Manufacturing, to technology
Warehousing and decisions - the
Shipping. production
technology
employed
may be a
second,
longer-term
project.

Key Customers: Mega-Box Home Expectations 98% Line Item

Improvement Fill Rate

Milestones Completion
Project Start: 05/05/2021 Dates
Define Phase 06/15/2021
Measure Phase 08/10/2021
Analyze Phase 9/30/2021
Improve Phase 10/31/2021
Control Phase 11/25/2021
Project
Completion: 11/25/2021

Expected Business Quantify Explanation

Benefits:
 Hard Cost
Soft Cost
Revenue $217,000,000 Offset Potential Revenue Loss
Speed Annual
Compliance
Intangible Improve Capabilities To Serve
All Customers

Team Members Jess Ficzet, Maureen Bedder, Sharon Daetta, Hy

Lowe

Resources Required IT - historical shipment performance by item.

Purchasing Warehouse Management $10,000 for
development of deployment algorithm.

Risks/Constraints Capital not readily available. Inflexible

manufacturing process technology. Quality of
historical shipment information.

Prepared/Revised Ari Sultz Date: 05/05/2021

By:
2.2 Project Charter Toolset - How

How To Develop A Charter

Follow the steps below in creating a charter for your project. Keep in mind
that the charter document is not carved in stone. It should be reviewed
and updated as you collect new information and your project becomes
better defined.

1) The first step toward developing a project charter is to

identify the opportunity for improvement. The outline of an
opportunity statement (also called a problem statement) is
drafted by the Project Champion and the Team Leader.

2) After identifying the opportunity, the Champion and

Team Leader create a draft charter, filling in as much
information as is [Link] business case should
include an estimate of the economic impact of the project
so it is very clear why the project is worth undertaking. A
SIPOC Map is often helpful to define the scope of the
project.

3) The Team Leader and Champion then identify and invite

people to participate as team members. It is advisable to
include people with firsthand knowledge of the process.
 4) The next step is to meet as a team to review the charter,
identify areas where further information is required, and
develop a plan to obtain the required information. For
example, there may be no existing performance metric to
gauge success, which would require development of a
system to capture the necessary data.

5) When the team has completed the charter, the Team

Leader reviews the charter with the Champion for buy-in
and commitment of resources.

A review of over 200 project

charters over the last several
years has revealed several
common problems. Here are
the 3 most frequently
encountered:
1. The business case fails to include any estimate of the economic value
or strategic linkage of the project. There must be a compelling business
reason to initiate the project, and it should be clear to anyone reading
the charter why you are working on this problem rather than all the
other things you might work on instead. It may be difficult to develop
an estimate of the potential economic impact of the project, but a
rough cut is acceptable to get started - just note the nature of the
estimate. A charter is a living document, so as more information
becomes available (particularly in the measure phase), the estimate
can be revised accordingly for greater accuracy.

2. The scope must be appropriate: broad enough to matter and including

a wide enough section of the process to encompass the root cause (it
will be a guess at this point), but tightly focused enough that the
project can get done. It's better to commission several smaller projects
under a common problem "theme" than to attempt a single project
with such a wide scope that it breaks under the complexity of fixing too
much at once. The SIPOC map is a good tool to help nail down the
scope, and is often used in advance of more detailed process mapping
activities that are undertaken after the project gets under way.

3. The improvement goal should be quantified and substantial. A goal

such as "Reduce processing errors" is not very clear and perhaps not
very meaningful. A better goal description is "Reduce processing errors
by 80%". An even better description is "Reduce processing errors by
80%, from 100,000 defects per million opportunities to less than 20,000
defects per million." Ideally, Lean Six Sigma projects should target step
function changes in performance, not just small incremental
improvement.
Deeper Dive

Creating Effective Problem Statements

A well-written problem statement is

a key component of any project
charter. When the problem
statement is well-defined, it forms
an excellent basis for action
because anyone who reads it will
know the following: exactly what the
problem is, the scope and A really succinct problem statement
magnitude of the problem, the
actual impact to the organization thus far, and the potential impact to the
organization of not addressing the problem. When the problem statement
is not well-written, it will most likely lead to inaction or actions that do not
properly address the problem with the result being that mitigation of the
problem is delayed.

A well-written problem/opportunity statement will have many of the

following characteristics:

Be no more than 2 sentences long

Refer specifically to the identified "Y" measure under study and give
actual values
Focus on observable symptoms related to the "Y", not suspicions or
assumptions
Address:

What is happening such that it is considered to be a problem

Where the problem is appearing
How long the problem has been occurring
The magnitude of the problem
The impact or potential impact of the problem on the business
The level of performance needed to avoid the potential impact
A poorly written problem/opportunity statement will have many of the
following characteristics:

Be too broad
Assign blame
State an opinion about what's wrong
Describe the cause of the problem
Presuppose a solution
Describe several problems in one statement

Shown below is an example of a well-written problem statement. Below

that is an example of a poorly written problem statement. The
differentiating characteristics of each are highlighted.

A Well-Written Problem Statement

A Poorly-Written Problem Statement

2.2 Project Charter Toolset - When

When To Develop The Charter

Every Lean Six Sigma project should have a Project Charter that is
developed at the start of the project to guide team activities. The charter
should be started during the Define phase of the process and possibly
revised during the course of the project work.

As new information becomes available, it may be advisable to update the

charter and make a mid-course correction. Any of the following events
may prompt a change to the charter:

New competitive threats

New information that challenges existing operating
assumptions
Product or process development breakthroughs
Feedback on the feasibility of planned actions
Business restructuring

All changes should be approved and documented correctly, and

communicated to all team members.
2.2 Project Charter Toolset - Practice

Practice Constructing a Charter

The administrator of a large hospital has initiated a project to improve

service at the pharmacy operation. The team's mission is to reduce the
cycle time for drug disbursement and delivery while improving the
accuracy of prescription fulfillment. The Project Champion and Team
Leader are working on an initial draft of the project charter.

*Practice exercise available online

2.3 Focus on The Customer

Voice Of The Customer

An essential step in meaningful process improvement work is

understanding the Voice Of The Customer — a five-step process of
establishing clear customer requirements to drive improvement actions in
the right direction.

We have reiterated many times that the goal of Lean Six Sigma is to
produce bottom-line results, which ultimately depends upon satisfying a
customer. It follows, naturally, that the first step of any Lean Six Sigma
project starts outside the process by capturing the voice of the customer.
That customer may be either external to your organization (e.g. a
commercial or retail customer, client, end-user, or patient), or internal
(e.g. another company division, department, or downstream operation).

At GE's 1997 Annual Meeting, Chairman Jack Welch stated:

 “ ”
The best Lean Six Sigma projects begin not inside the business
but outside it, focused on answering the question - how can we
make the customer more competitive? What is critical to the
customer's success? …One thing we have discovered with
certainty is that anything we do that makes the customer more
successful inevitably results in a financial return for us.

Jack Welch

A precise understanding of exactly what the customer wants is absolutely

essential. How can you eliminate defects if you don't know what they are?
Recall that a defect is defined as the failure of a process or product to
meet customer requirements. So what are those requirements?

The customer will be glad to tell you…

2.4 Capturing The Voice Of The Customer

Customer Requirements

At the inception of a Lean Six Sigma project, customer requirements are

gathered, sorted, analyzed and expressed as Critical To Quality
Characteristics, or CTQC's - the characteristics that really drive customer
satisfaction. After identifying which customers you want to focus on, the
next step toward developing CTQCs is to collect information in order to
find out what those customers really want. There may be several different
customer groups, or stakeholders, placing requirements on a process
output. This aggregate Voice Of The Customer information must be
translated into measurable characteristics in order to be actionable. The
overall process is illustrated by the diagram below:

*Practice exercise available online

2.5 Where to Go For Customer Requirements

Sources for Customer Requirements

Your organization may have extensive information on customer
requirements derived from customer surveys and other market research.
In particular, large organizations often have market research departments
that specialize in customer research. Start with available information to
build a profile of general customer requirements that can be translated
into specific operational definitions. You can find additional information
from many sources, both passive and active:

Customer surveys,
Warranty claims
especially verbatim
Complaints, support tickets, comments
and other customer feedback
Customer focus groups
Interviews of customer service
Direct observation
representatives
Self-use (being the
Interviews of dealers or
customer), or simulated
salespeople
use

Expectations are not static. As product quality improves, customer

expectations increase, requiring ever-higher levels of perfection to make
customers happy. The auto industry is a perfect example of this
phenomenon. Twenty years ago, customers expected to take a new vehicle
back to the dealership to correct several defects. Now customers expect
little or no trouble during years of driving. So it is important to continually
gauge customer expectations over time.

You may find that information from these various sources is not
integrated. Combining customer preference information is a good way to
fill in the blanks and build a composite picture of customer expectations.
 Be sure not to ignore two very important
"non-customer" groups: those customers that
have chosen not to buy your product, and
those prospective customers considering
buying your product. If you only focus on
existing customers, you'll miss a big part of the picture. After all, if you
want to grow your business, you really need to know about the customers
that you are not doing business with currently.

Keeping in touch with customer expectations requires active and engaged

listening, observation, and insight.

MoreSteam Note: Information can be categorized as active

or passive. Some information sources are passive in that
customer feedback is not solicited (e.g. complaints,
warranty), while information that is generated through
customer queries and direct observation is active.
Deeper Dive

The Kano Model

The Kano Model was developed to reflect the multiple dimensions of

quality and customer satisfaction. Quality characteristics are identified as
belonging to one of three categories, each with a separate satisfaction
function:

Basic - Dissatisfiers - Presence of these features or functions does not

produce satisfaction, but their absence creates strong dissatisfaction.
Performance - Satisfiers - Increasing these features or functions leads
to higher satisfaction.
Excitement - Delighter - Presence of these unexpected features or
functions leads to "delight" or customers being "pleasantly surprised".

Basic Quality

Basic Quality reflects minimum expected requirements. These

characteristics are dissatisfiers when absent, but do not create much
satisfaction when present because they are expected. Customers expect
their car to start every time. Failure to start causes dissatisfaction, but
success in starting does not create satisfaction (unless they own a Yugo,
and have dramatically lower expectations!). These characteristics are
"table stakes" necessary to get in the game. The relationship between
performance and satisfaction is illustrated below:
Performance Quality

The second type of quality demonstrates a linear relationship between

performance and satisfaction - increased performance generates a
proportional increase in satisfaction, as shown below. Customers are
generally vocal regarding desires in this category, and customer opinions
will be apparent in quality surveys. For example, car buyers may voice a
desire for more horsepower, particularly if fuel economy can remain fixed.
Excitement Quality

The last quality category is Excitement - the delivery of unexpected

features or benefits. Increased satisfaction is generated at any level of
performance because there are no expectations (delight), as illustrated by
the diagram below. Excitement attributes are generally not articulated in
quality surveys because customers don't know that the attribute is likely,
or even possible. A tool-kit integrated into the trunk lid of a car is one
example of an unexpected feature (unless the customer had a similar
model car before).

Performance Quality

A key point of the Kano model is that expectations shift over time. What
was once an unexpected delight becomes a performance feature, and
ultimately an expectation. Expectations are a function of experience. Cup
holders are an example of this phenomenon. Several years ago they were
a pleasant surprise. Now they seem to cover every square inch of a new
minivan, and virtually no minivan could be sold without them. In fact, the
Wall Street Journal reports (August 10, 2006) that "About 58% of car buyers
now say cup holders are somewhat or extremely important, up from about
14% in 1990, according to CNW Marketing Research, Inc." Daimler-Chrysler
recently upped the ante by introducing a cup holder that can warm or cool
liquids - a new delight that could shift over time to become an expectation.
Deeper Dive

Stuck in Neutral

In the mid-'90's, a major auto-maker discovered an improvement paradox.

Despite significant success in reducing the absolute number of defects per
vehicle escaping to customers (as measured by end-of-line data, quality
audits of finished vehicles, and warranty claims), customer reports of
"Things Gone Wrong" on quality surveys showed only a mild decrease.

Satisfaction Model

The answer to this paradox was "Shifting Expectations." As shown by the

following diagram, when the growth rate of expectations exceeds the
growth rate of quality improvement, satisfactions suffers. To improve
satisfaction, quality must be improved at a rate that exceeds the increase
in expectations.

The automaker's experience is summarized by the system diagram below.

Read the system diagram by moving your cursor over the letters in
sequence from A to F - a description of each phase of the system will
appear.
Outcome

The solution to the paradox was to recognize that customer expectations

change over time, so quality standards must continually tighten. The
definition of "what is a defect" is not static, as was demonstrated by the
previous Kano Model slide show.

System diagrams will be covered in greater detail in a subsequent session

(Improve), or you can refer to the Toolbox tutorial.
2.6 Affinity Diagram Toolset - Intro

Affinity Diagram

An Affinity Diagram is a tool that gathers large amounts of language data

(ideas, opinions, and issues) and organizes them into groupings based on
their natural relationships (affinity). The Affinity process is often used to
group Voice of the Customer information derived from Market Research,
or ideas generated by Brainstorming.

The Affinity process is a good way to get people to work on a creative level
to address difficult issues. It may be used in situations that are unknown
or unexplored by a team, or in circumstances that seem confusing or
disorganized, such as when people with diverse experiences form a new
team, or when members have incomplete knowledge of the area of
analysis.

As shown by the illustration below, building an Affinity Diagram is often

the third step to develop Critical to Quality Characteristics by sorting and
organizing Voice of the Customer information gathered in the previous
step.
2.6 Affinity Diagram Toolset - Example

Affinity Diagram Example

The first example of an Affinity Diagram comes from a team working to
remove obstacles in implementing an Operational Excellence program in
an organization. In this case, the Affinity Diagram is used to solve a
problem rather than to organize the Voice Of The Customer (we'll show a
VOC example next).

The team's first step is to generate a list of thoughts, from brainstorming

and interviews. Note: the list contains both real and perceived obstacles -
no distinction is made between the two. Click here to review the raw data.

After generating the unstructured list of obstacles, the team affinitized the
list and established groupings with headings. Now the information starts
to make sense, and can be used to start developing actions.

Click here to review the grouped data.

Second Example

The next example is taken from a Voice Of The Customer exercise at a

hotel chain. Information about customer wants/needs regarding service
and room quality was gathered from several sources. The unstructured list
is shown below.

*Animation available online only.

Link within Lesson

Problem: Obstacles in Implementing Operational

Excellence in an Organization

Categorized Obstacles: Now Solutions Can Be Devised

Already Over Worked

Communication Issues Resource Problems
(Too Busy)

No time to do it Will never be able No funding for

No time for any to sell the idea education and
more work (work throughout the training
day is only 10 organization No ongoing group
hours!) Employees are to model this
We'd have to getting conflicting behavior
restructure to messages about
even begin the importance of
Six Sigma
To busy fighting
fires to start
something new

Educational Problems Trust Problems Reward/Recognition System

Don't Little trust in No major problems,
understand management why do it?
systems Will probably fail like Will really threaten
thinking most new programs middle
Management Will turn into management
will never downsizing Why do it? Won't
accept outside benefit me!
Too much fear in the
help in
organization; Will turn into
beginning the
management has not another
process
demonstrated ability performance
Company has to share information appraisal system
tried too that pits people
many new against each other
things that
Most people will
haven't
just resist change
worked
 Training Leadership

Nobody is trained in Six Sigma No one has done this

Management will never accept outside in our industry
help in beginning the process Direction unclear
Many employees are illiterate and Management has no
won't be able to learn this vision
Don't know what work improvement is Lack of direction
Don't know how to make the Management doesn't
tracking/measurement systems understand their role
necessary Senior management
are not committed
Management has no
credibility
No leadership at the
top
Link within Lesson

PROBLEM: Obstacles in Implementing Operational

Excellence in an Organization

Generated Thoughts:

No one has done this in our industry

Management has no vision
Lack of direction
People don't have the math skills for this
We've never worked in teams; don't know how
Management doesn't understand their role
Senior management are not committed
Will probably fail like most new programs
No time to do it
Direction unclear
No major problems, why do it?
Management has no credibility
No leadership at the top
Will never be able to sell the idea throughout the organization
Will turn into downsizing
To busy fighting fires to start something new
Will turn into another performance appraisal system that pits people
against each other
Too much fear in the organization; management has not
demonstrated ability to share information
Employees are getting conflicting messages about the importance of
Six Sigma
We'd have to restructure to even begin
Untrained in Six Sigma
Don't understand systems thinking
No funding for education and training
Don't know what work improvement is
Don't know how to make the tracking/measurement systems
necessary
Management will never accept outside help in beginning the process
Company has tried too many new things that haven't worked
Will really threaten middle management
No time for any more work (work day is only 10 hours!)
No ongoing group to model this behavior
Why do it? Won't benefit me!
Little trust in management
Most people will just resist change
Many employees are illiterate and won't be able to learn this
2.6 Affinity Diagram Toolset - How

How to Create an Affinity Diagram

Constructing an Affinity Diagram is a team activity. The idea is to meld the
perspectives, opinions, and insights of a group of people who are
knowledgeable about the issues. The process of developing an Affinity
Diagram seems to work best when there are no more than five or six
participants.

Unique Features of the Affinity Process

Some unique features of the Affinity process that are important to its
success include:

Affinitize silently. The most effective way to work is to have everyone

move the displayed ideas at will, without talking. This is a new
experience for many people. It has the following positive results:
It encourages unconventional thinking (which is good)
It discourages semantic battles (which are bad)
It helps prevent one person from steering the Affinity
Go for gut reactions. Encourage team members not to agonize over
sorting but to react quickly to what they see. Speed rather than
deliberation is the order of the day, so keep the process moving.
Handle disagreements simply. The process provides a simple way to
handle disagreements over the placement of ideas. If a team member
doesn't like where an idea is grouped, he or she moves it. This creates
an environment in which it is okay to disagree with people having a
different viewpoint. If consensus cannot be reached, make a duplicate
of the idea and place one copy in each group.

Step-by-Step Affinity Diagram Process

1. Generate ideas. Use the brainstorming tool to generate a list of ideas.
The rest of the steps in the Affinity process will be easier if these ideas
are written on Post-Its.
2. Display the ideas. Post the ideas on a flip-chart, a wall, or a table in a
random manner.

3. Sort the ideas into related groups. The team members physically sort
the cards into groupings, without talking, using the following process:
Start by looking for two ideas that seem related in some way.
Place them together in a column off to one side.
Look for ideas that are related to those you've already set aside
and add them to that group.
Look for other ideas that are related to each other and establish
new groups.

This process is repeated until the team has placed all of the ideas in
groups.

NOTE: Ideally, all of the ideas can be sorted into related

groups. If there are some "loners" that don't fit any of
the groups, don't force them into groupings where they
don't really belong. Let them stand alone under their
own headers.
 4. Create header cards for the groups. A header is an idea that captures
the essential link among the ideas contained in a group of cards. This
idea is written on a single card or post-it and must consist of a phrase
or sentence that clearly conveys the meaning, even to people who are
not on the team. The team develops headers for the groups by:
Finding already existing cards within the groups that will serve well
as headers and placing them at the top of the group of related
cards. Alternatively, discussing and agreeing on the wording of
cards created specifically to be headers.
Discovering a relationship among two or more groups and
arranging them in columns under a super header. The same rules
apply for super headers as for regular header cards.

5. Draw the finished Affinity Diagram.

Write a problem statement at the top of the diagram.
Place header and super header cards above the groups of ideas.
Review and clarify the ideas and groupings.
Document the finished Affinity Diagram.

As a rule of thumb, if fewer than 15 items of information have been

identified, you can skip the Affinity process. Instead, you can clarify and
combine the ideas and then use one of the Decision-Making Tools to
identify the highest priority items.

Developing an Affinity Diagram For Web-based Learning

As we work through the steps of developing an Affinity Diagram, we'll use

an example that you should be familiar with by now - design of web-based
learning. As a first step toward organizing our Voice of the Customer
information to develop CTQ Characteristics, the Affinity Diagram helps us
group raw feedback into meaningful categories.

Following is a list of customer wants/needs under the general heading of

"Easy To Use", which were generated during Steps 1 & 2:
2.6 Affinity Diagram Toolset - When

When to Use an Affinity Diagram

Affinity Diagrams are used in the Define phase of the DMAIC process as
the first step toward turning information about general customer "wants"
into specific CTQC requirements. The organized information that is
developed by an Affinity Diagram is often used as the starting point for a
CTQC Tree Diagram (following lesson), which extends the analysis to a
greater level of detail.
Answering Questions With Affinity Diagrams

Affinity Diagrams can be used to answer the

following questions:

How can we make sense out of a large

volume of information?
How do the individual items within a list of
items relate to one another?
What are the general categories or groupings
of a list of items (customer wants)?
Is there a particular category of items that
represents a large share of the total - a
potential priority area?
2.6 Affinity Diagram Toolset - Practice

Practice - Affinity Diagrams

A large health care organization has initiated a continuous improvement

project to streamline its billing process and provide better information to
customers. As an initial step, the team wants to define the Voice of the
Customer in very specific terms. The team has gathered a wealth of
information and customer feedback from multiple sources, and is ready to
move forward.

*Practice exercise available online

2.7 CTQC Tree Diagram Toolset - Intro

CTQC Tree Diagram

The Tree Diagram is a useful tool for identifying the specific tasks that
must be completed in order to reach a goal. Starting with a general goal,
the Tree Diagram moves from general WHATs to specific HOWs. This is
one of the objectives that must be completed at the onset of the
improvement cycle - translating "Voice of the Customer" (VOC) information
that is often communicated only as general (or even vague) wants and
needs into specific Critical to Quality Characteristics, or CTQCs (also called
CTQs).

As a systematic mechanism, the CTQC Tree Diagram is particularly helpful

when your information on customer wants - the VOC - is too general to be
measured, and not actionable. The CTQC Tree Diagram first identifies
intermediate categories of "drivers" - more specific expressions of
customer wants - then breaks down those drivers into further sub-
categories until customer wants can be expressed as meaningful,
measurable and actionable characteristics - CTQCs.

The CTQC Tree may build upon data that is organized by an Affinity
Diagram in order to develop specific CTQCs. If the process or product is
very complex, a further step may be required to develop specifications for
the inputs that affect the CTQCs - Quality Function Deployment (QFD).
2.7 CTQC Tree Diagram Toolset - Example

CTQC Tree Example

The first example of a CTQC Tree comes from a Lean Six Sigma team
working to improve room service at a luxury hotel:

As you can see from the diagram above, the unspecific need of "Good
Room Service" can be broken down into three Driver categories, which are
in turn broken down into sub-categories of CTQ's. The idea is to move
from general expressions that are hard to measure to specific
requirements that are easy to measure.

Second Example
The next example builds on data from an Affinity Diagram used to
organize customer wants/needs. The subject is a re-design of our content
delivery architecture, so the issues should be familiar to you. Customers of
web-based training want a product that is "Easy To Use", which can be
broken down into several sub-categories, or drivers. This particular
diagram focuses on the category of "Easy Navigation."

Going beyond "Easy Navigation" to a higher level of detail may require a

focus group or interview to probe that need to find out what drives "Easy
Navigation." When we find that "Fast Page Loads" are a more specific
requirement, we need to ask the customer what "Fast Page Loads" means.
We need to keep exploring until we have specified a need that is
measurable, and therefore actionable.
2.7 CTQC Tree Diagram Toolset - How

Constructing A CTQC Tree

As we work through the steps of developing a CTQC tree, we'll use an
example that you should be familiar with by now - design of web-based
learning. Specifically, we'll be examining one element of customer want:
"Easy Navigation".

1. Start with the What - general goal statement. If you are using the Tree
Diagram to identify CTQC's, the "what" statement may be the raw
Voice Of The Customer (VOC) - the high level need or want.

2. This is a team activity, so find a visible workspace that everyone can

see while you build the diagram. Tip: Use a white board or flip chart
with Post-It notes that can be easily moved around as the tree is
organized.
3. Start moving from What to How by identifying the first level of detail -
sub-headings of drivers. This should be based on VOC data, and may
also involve elements of brainstorming. Record the drivers, and then
move to the next level of detail.
4. Break each sub-heading (driver) into greater detail by asking the
question: "What would this mean?" Remember, you are moving from
Whats to specific Hows. Depending on the nature of the information
available, this activity may require extensive probing, interviews, or
focus groups.

Returning to our web-based learning example, when we look at "Easy

to Navigate", and ask "What does that mean?", we get a further
breakdown:

When we ask "What does that mean?" again about "Fast Page Loads",
we get:
5. Now we have identified a specific CTQC that can be measured and
acted upon. Moving to the next level of HOW detail takes us into the
design realm - specific product technologies and component decisions
to satisfy the CTQC of "page loads in 1.5 seconds or less".

6. As a final step, when the CTQC Tree is completed, circle back and
review the diagram for obvious omissions. Read the diagram from
most specific to general and ask: "Will these characteristics lead to
these results?"
2.7 CTQC Tree Diagram Toolset - When

When To Develop CTQC Trees

CTQC Trees are used in the Define step of virtually every Lean Six Sigma
project as the primary mechanism for turning general customer "wants"
into specific Critical-To-Quality requirements. They are a natural next step
for data generated by an Affinity Diagram to extend to a greater level of
detail.

Answering Questions With CTQC Trees

CTQC Trees can be used to answer the

following questions:

What are the specific CTQCs for the process?

What are the Drivers of customer
satisfaction - the categories of CTQCs?
How do the specific CTQCs relate to one-
another?
2.7 CTQC Tree Diagram Toolset - Practice

Practice - CTQC Tree Diagrams

A continuous improvement team from a bottled water supplier has

developed a CTQC Tree Diagram to identify specific Critical To Quality
Characteristics for its large commercial customers. The company has a
wealth of general customer feedback from a variety of sources, including
surveys. Unfortunately, much of the information is very general.

*Practice exercise available online

2.8 Voice Of The Customer As Specifications

Setting Specifications

Affinity Diagrams and CTQ Characteristic Tree Diagrams are useful to sort
and fully develop Voice of the Customer information, but to be truly
effective, the VOC must be taken through one additional step and
expressed as an internal specification, as shown above.

Functional products often

have technical or
mechanical requirements
that can be readily
translated into
specifications using pre-
established design
guidelines. However, many
products/processes do not
have pre-existing
specifications. In general,
specifications are set at the
point where customer satisfaction starts to decrease significantly below
the target. For example, the chart to the right displays customer
satisfaction compared to the speed of web page access. In this case, the
specification for maximum time to load a page is set at the point where
customer satisfaction begins to fall off appreciably.

For complex products and services, the translation process may be much
more involved, requiring more sophisticated tools. One such tool is Quality
Function Deployment (QFD).
Case Study

Specifications For Hot Coffee

A fast food restaurant has chartered a team to reduce the variability in

coffee temperature. The restaurant wants to avoid serving coffee that is
too cold or too hot, according to customer requirements. In the coffee
example, customer requirements are expressed as a minimum
temperature specification (155 ºF) and a maximum temperature
specification (175 ºF).

So how are those requirements established? By evaluating customer

feedback collected over time, the restaurant was able to plot customer
satisfaction with various temperatures of coffee (you can click here for a
detailed explanation). When plotted as a graph, the restaurant was able to
see how customer satisfaction varied as a function of temperature, as
shown below:

The minimum and maximum temperature specifications were set at the

points where customer satisfaction starts to decline significantly below the
satisfaction target.
2.9 Process Thinking

Everything Is A Process

A process is a series of sequenced steps that move products and services

through the organization to achieve a desired output. Processes exist at all
levels throughout the organization. Consider a commercial lending
process: the review of the applicant's credit history is a specific process
within the larger context of the loan review process, which is a part of the
entire commercial lending operation (value stream).

At its most basic level, a process consists of a systematic combination of

inputs (materials, methods, people, machines, environment) to create an
output. The transformation of inputs X into outputs, Y, is often referred to
as the function Y=f(X). This generic description of a process applies to all
processes, whether they are transactional services or manufacturing
operations.

Let's revisit the process of reviewing a loan applicant's credit history. The
underwriter, the financial history of the applicant, and the credit scoring
system (X's) would be used to make a determination on the loan (Y).
2.10 The Source of Value

The Value Stream

Processes that include steps where value is created (as defined by the
customer) are called a Value Stream. This flow may also be called the
Supply Chain. We like the term Value Stream because all continuous
improvement activity strives to eliminate activities that do not produce
value - waste. Value Streams include the tangible flow of material as well
as the intangible flow of information and services - stretching from
product design and raw material procurement, through
manufacturing/service origination, and past delivery to the customer to
include after-sales service.

The value stream can be represented as a Supplier-Input-Processing-

Output-Customer chain of inter-related activities, as shown by the
simplified diagram below:

One of the first steps in any project is to draw a map of the value stream,
or process, of interest. This may be an iterative activity - starting with a
high level map to identify the project area, and followed by a more
detailed map of a specific process of interest - showing all suppliers and
inputs to the process, along with the output and customers.

MoreSteam Note: The term "Supplier" may refer to either

an internal or external input source, while the term
"Customer" may refer to either an internal or external
customer. When drawing a process map, be sure to
specifically identify the suppliers and the customers.
In practice, value streams can be very complicated, with multiple inputs
that resemble the tributaries of a river. Once the value stream has been
fully defined, activities are focused on those inputs to the process that
have the most significant impact on the output. Upstream inputs provide
the most leverage to reduce process variability, so improvement actions
should be prioritized accordingly - at the point of greatest leverage.

The next step to focus on specific upstream operations is to construct a

detailed process map.
2.11 The Source of Value: Gemba

Going to the Source

The first step toward improving a process (or anything) is to develop an

understanding of the process - to define what is value-added, and then
where and how that value is created. If you want to understand what is
really going on, there is no substitute for seeing for yourself. That's why
practitioners of lean methods stress the importance of going to the actual
place where the work is performed to learn by observing and asking
questions.

"You can observe a lot That "actual place" where value is created is
known as Gemba (originally Genba in
by just watching."
Japanese). You may hear the term "Go to
- Yogi Berra
Gemba", which means more than just going
to a place. It also means to observe what is happening, engage the people
who do the work, and ask questions to understand. Toyota developed a
short phrase to describe this process, which has become a mantra for lean
practitioners:

"Go see, ask why, show respect."

The whole point of the exercise is to find and eliminate non-value-added

activities because they represent waste, so it's important to recognize that
the exercise starts with the customer in mind, because only customers can
define what adds value and what does not. Let's break down the three
activities:
 1. "Go see" means to go to where the work is done and observe first-
hand. This activity can be guided by the "3 APs": going to the Actual
Place where the work is done, observing the Actual Process as it is
performed, and talking to the Actual People who perform the process.
2. "Ask why" means to ask questions in order to understand. Getting past
symptoms to the root causes of problems will likely require a series of
questions. Asking why five times (5-Whys) will help get to the heart of
the problem.
3. "Show respect" means to listen, to consider other perspectives, and to
show gratitude for the assistance.

MoreSteam Note: Beware of Gembaphobia (the fear of

going to where the work is actually performed) because
tough problems can't be solved from a conference room!
Process improvement is a contact sport.

Gemba Walks

Value streams run horizontally across an organization's various

departments and functional areas, so it is useful to gather everyone
involved in the process and walk the process together to see and learn.
The purpose of a gemba walk is to develop shared understanding — to see
and learn how more value can be created with less waste.

“A key objective of the lean movement is to teach everyone to

untangle intermingled processes in order to see clearly the
specific process that they manage or touch as it flows from start

”
to finish.
- Jim Womack, Gemba Walks
Walking the gemba together allows group
questioning of the purpose (what value is being
created? what customer problems are being
solved?), process (which activities produce value,
or don't?) and people (are they engaged in
improving the process?).

Gemba walks are a key component of any lean

management system. As a collective exercise in seeing, asking, listening,
and learning, they are used to demonstrate, practice, and build lean
management skills as good habits that become part of the operating
culture.

MoreSteam Note: The act of walking and observing may

take a very different form if the process is virtual or digital.
In that case, the "walk" is less observational, and more
interrogatory (asking what happens next), supported by
digital artifacts and computer logs of activity.
Deeper Dive

Taiichi Ohno's Chalk Circle

Taiichi Ohno was one of the primary architects of the Toyota Production
System, the source of much of what we call lean methods. When teaching
young engineers how to solve problems, he would draw a chalk circle on
the shop floor by the area with the problem and then instruct the engineer
to stand and watch the process. After some time, he would come back and
ask the engineer “what did you see?". If the answer wasn't satisfactory,
the engineer would be assigned to “watch some more". Often, this
went on for hours before Ohno was satisfied. It sounds extreme, but the
practice certainly did develop a strong culture of calm observation at the
source of the problem.
2.12 Process Mapping - Overview

Mapping the Process

Any effort to improve a process, whether conducted within the framework

of a DMAIC project, lean initiative, or any other systematic improvement
approach, begins by capturing operational knowledge of the process.
Defining the process and its myriad components is the first step, and a
visual process map has proven to be the most effective activity. Process
maps capture process knowledge in a visual format that facilitates easy
communication.

Since different processes have many different characteristics, and

improvement projects have different objectives, many process mapping
alternatives have evolved to meet the various requirements. Throughout
the DMAIC process, you may use several different process maps at
different points in the progression of your inquiry, driven by the relevant
questions that you are trying to answer. The following table provides a
summary of the primary types of process maps used in DMAIC projects. To
facilitate comparison, each is illustrated by an example drawn from the
same simple process - making coffee.
 Common Process Map Options

Map Type Distinguishing Features Comments

SIPOC Map Identifies Suppliers, Inputs, Outputs, and Customers High level starting point - used in
most DMAIC projects

Flow Chart Shows decision points and If/Then logic Displays procedures and logic of
process

Deployment Identifies functional responsibilities Communicates who does what

Flow Chart
(Swimlane
Chart)

Value-Added Separates Value-Added from Non-Value-Added operations. Identifies waste of many types.
Flow Chart Stratifies time.

Spaghetti Shows physical flow of material and/or information. Illustrates physical complexity,
Diagram distance traveled, cycle time

Value Stream Identifies physical flow of materials and information. Quantifies inventory Detailed map for lean improvement
Map levels, process characteristics and control mechanisms. projects and Kaizen events.

System Focused on systemic cause and effect - shows reinforcing and balancing Examines behaviors behind process
Diagram forces along with unintended consequences. performance - non-linear.

MoreSteam Note: None of these map types is mutually

exclusive - you can customize your map to add
elements drawn from different map types to suit the
requirements of your project.

The SIPOC Map is a staple of DMAIC projects because it is customer-

focused and easy to understand. As you ask more detailed questions
about a process and delve into sub-processes and their inputs, you may
wish to supplement your initial mapping effort with another type of map.
Link within Lesson

Deployment Flow Chart

Link within Lesson

Flow Chart
Link within Lesson

SIPOC Map
Link within Lesson

Spaghetti Diagram
Link within Lesson

System Diagram
Link within Lesson

Value-Added Flow Chart

Link within Lesson

Value Stream Map

2.13 Process Mapping (SIPOC) Toolset - Intro

Introduction to SIPOC Maps

One popular form of process map is the S-I-P-O-C Map (or SIPOC
Diagram), which is used to create a high level visual representation of a
process or value stream - the so-called "30,000 foot view" of Suppliers,
Inputs, Core Process, Outputs, and Customers. SIPOC Maps are useful in
defining the scope of an improvement project, so they are employed when
developing or refining the project charter. Because SIPOC Maps also
identify the process inputs, they can also be used as the first cut at
identifying potential key process inputs (KPIs).

In order to examine the process of interest in greater detail than allowed

by the SIPOC map, a more specific format of process map is often used to
drill down and provide more "process resolution". The choice of
subsequent process map should reflect the question(s) to be answered.
True Value Stream Maps are used to support Lean improvement efforts
focused on material and information flows, inventories, and cycle times.
Flow Charts or Diagrams can also be used to augment SIPOC Maps; they
are especially useful in charting procedures and decision processes.
Finally, System Diagrams are a useful tool to map the behavior of a system
when there are feedback loops. None of these charts are mutually
exclusive tools - they are best used in combination according to the
circumstances. We'll start with the basic SIPOC Map, which becomes the
foundation for other mapping activities.
 *Explanatory video available online only; Transcript provided.

Process maps can be developed for any process or sub-process, but they
are generally constructed for two reasons:

Identify waste and prioritize Lean Six Sigma projects.

Click here for explanation.
Understand relationships between inputs (X's) and outputs (Y's).
Click here for explanation.
Link within Lesson

Process Mapping — Transcript

Process mapping is one of the most fundamental tools used to identify the
relationship between process inputs and the process output and a tool
that is used in every process improvement project. Diagramming the
sequence of operations, as well as the inputs at each step of the process,
helps identify those inputs (Xs) which might play a significant role in
determining the process output (y). This process knowledge is crucial to
improving performance. Ultimately, understanding how y is a function of
process inputs is the central activity of process improvement projects.

Process mapping can be applied to describe a physical workflow as well as

the steps of a service process or an information flow.

In most processes, there are multiple inputs, some of which are significant
and some of which are not. The systematic identification of the potentially
significant inputs to a process sets the stage for data collection and
statistical analysis to determine which inputs, or combination of inputs,
have the most leverage on the process — the truly significant factors.

Process maps are used to achieve two general objectives: to collect and
sort information. In the collecting phase, we identify all of the potentially
important inputs. In the sorting phase, we focus on the improvement
efforts by identifying which inputs are controllable and which inputs have
a significant impact on Y (the output). Note that completing the sorting
phase of a mapping exercise may identify obvious waste or other
problems that can be readily addressed, or may require deeper
quantitative analytical techniques.
Before we discuss the specific steps to construct a process map, let's
spend a little time to understand the hierarchical nature of process inputs.
Consider the inputs involved in having a good meal of delivered pizza. In
this instance, "good meal" is the process output (y) and is expressed as a
hot, tasty pizza with the correct toppings, delivered within the timeframe
promised, at an acceptable price. In this example, the meal experience
(output) is a function of multiple inputs including the pizza quality, service
level for ordering and delivery, and the price, to name a few. Each of these
inputs can be thought of as the output of a sub-process, also known as a
"small y". For example, the pizza quality is a function of a sub-process with
sub-inputs like the quality of ingredients, amount of toppings, and the
temperature of the pizza. Each of these sub-inputs may also be the output
of another sub-process.

So, there is a hierarchy of inputs with each process input supplied by

either a sub-process or an external supplier. The input at one level is the
output from another level. The internal process consuming output from a
sub-process is said to be an internal customer.

When constructed with sufficient detail to include the entire process from
suppliers to ultimate customer, a process map may take the form of a
SIPOC diagram, a "supplier-input-process-output-customer" diagram — a
particular type of process map that spans the entire value stream. Other
types of process maps can also be very useful. It all depends on what
questions you are trying to answer, and what you are trying to accomplish.

To create a process map, start by diagramming your high-level process

flow and indicate the beginning input (start) and the ending output (result).
The ending output should be the Y or result you are trying to improve.
Also, identify any major process steps — briefly describe them and identify
who are the process owners.

Next, add outputs for each of the process steps. The outputs of the
process steps are the little y's. For each of the process steps, list potential
inputs or factors which could drive the output of the process step. Factors
are those things that may cause variation in the process output. They are
identified by walking the process, observation, construction of cause and
effect diagrams, and through interviews with people performing the
process.
Next, add the supplier of each input. Prioritize which areas of the process
you want to work on and then drill down in that area. Your basic data will
tell you which areas are the most important. The process map you develop
must reflect the actual process "as is" and not the "would like to be"
process. Do not rely on existing documentation or opinion. It is a good
practice to observe the actual process multiple times. Also, as you learn
more about your process, you should update your process map.

To illustrate these points, let's return to the pizza delivery example. The
first step is to draw the major process steps and the output. In this
simplified case, there are four: receive the customer's phone order, make
the pizza, cook the pizza, and deliver the pizza. The output is the delivered
pizza – hot, tasty, with the correct toppings, delivered on time, and at an
acceptable price.

Secondly, identify the output at each step of the process (the small y) to be
consumed by the next step of the process. Next, add the first level of
inputs to each step of the process and the suppliers of those inputs. At this
point, you may wish to group all suppliers, inputs, outputs, and customers
together.

Based on analysis and operational knowledge, you may choose to drill

down a level at a particular step in the process to add greater detail. This
may call for a different format of process map such as a flow chart.

Process maps are a simple but powerful tool with many advantages. They
can be used to identify possible leverage factors. They are also a flexible,
hierarchical tool that can be modified to fit specific needs.

Process maps are an excellent visual communication tool — useful to get

everybody on the same page. They clarify the interfaces between process
steps and they also clarify accountability. Lastly, they provide the
backbone to guide data collection and analysis.
Link within Lesson

Forms of Waste

Waste exists in many forms, both obvious and hidden. Some of the more
common forms of waste are listed below:

Defects or errors that result in scrap, rework, or worse - customer

dissatisfaction and warranty claims
Unproductive movements, unnecessary steps, and double-handling
Excess inventory due to overproduction, bottlenecks, or
discontinuous flow
Unnecessary time delays
Wasted energy or other inputs
Unwanted products
Link within Lesson

Understanding Relationships

Before improving any process, it is important to understand the

relationship between inputs and the process output. The relationship may
be simple, or may be very complicated, with many inputs and multiple
processing steps. Some of the inputs may be intangible and hard to
identify.

At its most basic level, a process consists of a systematic combination of

inputs (materials, methods, people, machines, environment) to create an
output. To revisit our discussion from Session One, all of the inputs are
referred to as Xs, while the process output is Y. The relationship between Y
and the X's is called the "function," so Y is said to be a function of X.

Process maps help to identify the various inputs throughout a process,

and are a first step toward understanding the "function" - how those
inputs affect the output.
2.13 Process Mapping (SIPOC) Toolset - Example

The View From 30,000 Feet

As a first step toward mapping a process, the high level SIPOC map is used
to identify the areas of greatest waste within the overall value stream. The
example below illustrates a process of making coffee. The process step
with the lowest capability (lowest Sigma Level) is identified as a priority for
improvement efforts.

That area of waste then becomes the subject of greater focus, and a more
detailed SIPOC Map or Flow Chart can be created as the next step.

Now let's review a more complex example. A medical insurance company

has determined that the process of approving (credentialing) physicians
for participation in a health care coverage network takes too long. The
overall cycle time averages five and one half months. The following SIPOC
map was constructed to show the classification of process elements into
categories: Supplier-Input-Process-Output-Customer.
 MoreSteam Note: All process elements are grouped
together and displayed in columns, without regard to the
stage of the process to which they relate. SIPOC maps may
also be created which identify Suppliers, Inputs, Outputs,
and Customers (internal or external) by stage of the
process. We'll show you an example of this on the following
page.

After completing a high level SIPOC map, the next step is to look at
performance metrics (covered in another lesson) for each step of the
process to identify the area of greatest opportunity, which then becomes
the focus of a more detailed process map to identify the sources of
variability.
Deeper Dive

The Hidden Factory

The action of walking the process and developing a detailed process map
often reveals that the actual process differs significantly from the
process that is believed to exist. Finesse operations, adjustments, hidden
extra inspection, rework loops, "pick-up" of missed operations, online
repairs and rework, double-handling of material, excess inventories, and
non-processed operations comprise a "hidden factory" of waste, and it's
not just a manufacturing problem, as inefficiencies also get baked into
service operations: documents may be passed back and forth between
operations as endless revisions are made, miscommunications lead to
poor customer response, shipments get hung up due to order entry
errors, and loan closings are delayed because of typos - to name a few.

To measure the cumulative effect of defects that occur throughout a

system, data should be collected on total defects that occur at each step of
the process. This Total Defects Per Unit data can be used directly or
converted to other metrics, like Defects Per Million Opportunities (DPMO).
Hidden operations within a factory or service operation can have a
shocking price tag when added up - easily 20% or more of the cost of
production.

The first step toward eliminating this waste is to identify it - a job for the
Detailed Process Map.
2.13 Process Mapping (SIPOC) Toolset - How

Constructing A Detailed Process (SIPOC) Map

The first step in developing a SIPOC Process Flow Chart is to gather the
team, walk the process, observe the process, and take notes.

When forming your team, you certainly want people who are
intimately familiar with the process, but also consider including
people who are NOT familiar with the process - people who can
supply "fresh eyes."
Using a white board or flip chart, write down all of the steps in the
process - either horizontally or vertically. The example we present will
be arranged vertically.
Keep in mind that this is a working document - don't worry about
making it pretty. You can dress it up later if you need to make a
presentation.
Next, establish columns or rows to add information on each process
category, as shown by the illustration below, which represents the
Manufacturing step within the Acme Building Products value stream
(Acme manufactures ceramic products):
With the basic template established, you can start to add the important
details:

Starting with the processing steps, work backward to identify inputs

and the suppliers of those inputs.
Next, work forward to identify the outputs of each processing step,
and the customers of those outputs. You may wish to include
information on output requirements (specifications) for reference.
Be sure to document the process "As-Is", not the desired future state -
that is a separate exercise.
Start with a high level map and generate detail where needed. Include
all major activities, sub-processes, and interfaces.
Record operating parameters for the inputs that have been identified.
Don't forget queues and rework loops. You may wish to note the
process owner and any other information that is helpful to the team -
remember, this is a working document.
The chart below represents the addition of the first level of detail to the
Acme Manufacturing map - identifying the inputs and their suppliers, the
outputs, and the customers of the outputs:

After identifying and prioritizing the inputs or subprocesses that bear

further investigation, separate process maps can be constructed at a
greater level of detail as the scope of a specific Lean Six Sigma project is
defined. At the most detailed level, inputs can be classified as those that
are Controllable (like settings on a machine), Noise (uncontrollable
factors, like weather or normal person-to-person variability), or Common
Sense Factors (procedures that can be expected to be performed to
execute a process, like turning on a machine). A closely related activity is
the Cause & Effect (Fishbone) diagram, which can be used to help identify
the root cause of input variability.
2.13 Process Mapping (SIPOC) Toolset - When

When To Use Process Mapping

SIPOC maps are employed on virtually every continuous improvement

project. They are very useful to define the project scope, clarify the
mission, and get everybody on the same page. At a big-picture level, they
may be used to set business level priorities, and they may be used again in
greater detail to set individual project priorities. They also may be revised
at later phases of the process as new information becomes available, or if
a finer level of analysis is required.

Throughout this course we will present other tools and methods that also
have wide use at various points of the continuous improvement process. A
good tool can be used wherever it has a positive impact. As a comparison,
consider rough-in carpenters who frame houses and finish carpenters who
install the trim around windows and doors. Their jobs have a much
different scope, but both use hammers. So it is with most continuous
improvement tools.

MoreSteam Rule of Thumb: If you think a quality

improvement tool might help move your project forward -
try it and see.
2.13 Process Mapping (SIPOC) Toolset - Practice

Practice - SIPOC Map

This practice exercise allows you to construct a simplified SIPOC map for a
common process - order fulfillment at a fast food restaurant. Place the
process steps in order and categorize the SIPOC components as Supplier,
Input, Output, or Customer. Don't worry if you misplace a component, this
exercise accommodates trial and error.

*Practice exercise available online

2.14 Flow Charts

Process Flow Charts

Process Flow charts provide a visual representation of the detailed steps in

a process, and are particularly useful to represent procedures and
decision-making routines. Flow charts are used to show a higher level of
process detail, including decision points, decision criteria, feedback loops,
and delays, among others. As you develop an increasingly detailed
Process/Value Stream/SIPOC Map, Flow Charts can be used to document
the full range of process activities, often focusing on one or more subsets
of the overall Process Map.

Some of the benefits of using flow charts are listed below:

Gives everyone a clear understanding of the process

Highlights decision points
Helps to identify non-value-added operations
Facilitates teamwork and communication
Keeps everyone on the same page

Construction:
 There are many symbols used to construct
a flow chart; the more common symbols are shown to the right. It's best to
start out with a large workspace like a white board or flip chart.

The first step is to identify the process steps.

The next step is to assign the appropriate symbol for each step.
Lastly, link the process steps together with direction arrows indicating
the flow of the process - either material or information.

Following is an example of a very simple flow chart for the process of

getting out of bed in the morning:

*Animation available online only.

You can make a flowchart more useful by adding information beside the
boxes. This flowchart gives a better description of the process when you
know that the snooze bar gets hit three times, postponing the inevitable by
five minutes each time.

*Practice exercise available online

Case Study

Value-Added Flow Chart

This case study presents the analysis of Total Cycle Time (Lead Time) for a
manufacturer of appliances. This form of a value stream map is focused
only on cycle time, identifying time used to add value and time that adds
no value. Other forms of waste are not identified.

As shown in the summary below, only 1.5% of the total cycle time is used
to add value. This analysis was used to prioritize a project to improve
manufacturing flexibility.
Deeper Dive

Value-Added Flow Chart

The value-added flow chart is a mechanism to improve cycle times and

productivity by visually separating value-adding from non-value-adding
activities. Creating a value-added flow chart is very straightforward, as
outlined below:

1. List all of the steps in the process from beginning to end.

2. Create a diagram with a box for every step, in sequence.

3. Calculate the time currently required to complete each step of the process, and
add that time to the box.

4. Add the time in each box to yield the Total Cycle Time.
5. Identify those steps that do not add value to the process. Non value-added
operations include: inspection, test, rework, set-up, inventory buffers, product
movement other than customer delivery - any activity that does not improve the
form, fit, or function of the product on the first pass through the process.

6. Move the boxes representing non-value-added processes to the right of the

value-adding steps.

7. Add the time in each of the non-value-added processes to yield the Non-Value-
Added Cycle Time. This is the waste that could be eliminated if only value-added
steps were performed.

8. Add the time in each of the value-added processes to yield the Value-Added
Cycle Time.
9. Calculate the percentage of the Total Cycle Time that is a function of Non-Value-
Added operations. You may wish to construct a pie chart to communicate the
analysis.

10. Identify the target process configuration using benchmarking and best-in-class
analysis.
11. Diagram the target process and determine the Total Target Cycle Time.

12. Analyze the Non-Value-Added steps to identify actions to reduce or eliminate

these operations.
13. Analyze the Value-Added steps to identify improvement opportunities and
implement actions to reduce the cycle time.
14. Diagram the improved process, compare to the target process, and identify
gaps for further improvement actions on an ongoing basis until the target is
achieved.
Deeper Dive

Flow Chart with Swimlanes - (Deployment Flow Chart)

Adding "swim lanes" to a flow chart is a mechanism to show which

functional areas (or individuals) in an organization are involved in each
process step and identify the hand-off points between those functional
areas. Creating a deployment flow chart with swim lanes is
straightforward, as outlined below:

1. List all of the steps in the process from beginning to end.

2. List all of the functional groups (or individuals) involved in the process.

3. Identify the primary group involved with each step.

4. Add the time for each step.

5. Create a flow chart with the group names across the top and the
process flow from top to bottom.

6. Add the elapsed time to the flow chart.

7. Identify and total the hand-off points between groups.

8. Continue with an analysis procedure to optimize the process.
2.15 Value-Added Flow Charts

Value Added Flow Charts

If your project is focused on reducing cycle time or improving productivity,
it may be useful to use a Value-Added Flow Chart to highlight waste in
the process - any part of the process that does not add value. The basic
format of a Value-Added Flow Chart is shown below using the example of
making a bank deposit. Revisit the deeper dive on the right to review the
specific steps involved in creating a Value-Added Flow Chart.

You may be shocked to find that less than 10% of total processing time is
used to actually create value, but this is not uncommon. In fact, the usual
percentage is closer to 5%. As you make improvements to the process by
eliminating non-value-added operations, use a trend chart to track and
communicate the progress:
*Practice exercise available online
Deeper Dive

Value-Added Flow Chart

The value-added flow chart is a mechanism to improve cycle times and

productivity by visually separating value-adding from non-value-adding
activities. Creating a value-added flow chart is very straightforward, as
outlined below:

1. List all of the steps in the process from beginning to end.

2. Create a diagram with a box for every step, in sequence.

3. Calculate the time currently required to complete each step of the process, and
add that time to the box.
4. Add the time in each box to yield the Total Cycle Time.

5. Identify those steps that do not add value to the process. Non value-added
operations include: inspection, test, rework, set-up, inventory buffers, product
movement other than customer delivery - any activity that does not improve the
form, fit, or function of the product on the first pass through the process.
6. Move the boxes representing non-value-added processes to the right of the
value-adding steps.
7. Add the time in each of the non-value-added processes to yield the Non-Value-
Added Cycle Time. This is the waste that could be eliminated if only value-added
steps were performed.
8. Add the time in each of the value-added processes to yield the Value-Added
Cycle Time.
9. Calculate the percentage of the Total Cycle Time that is a function of Non-Value-
Added operations. You may wish to construct a pie chart to communicate the
analysis.
10. Identify the target process configuration using benchmarking and best-in-class
analysis.
11. Diagram the target process and determine the Total Target Cycle Time.

12. Analyze the Non-Value-Added steps to identify actions to reduce or eliminate

these operations.
13. Analyze the Value-Added steps to identify improvement opportunities and
implement actions to reduce the cycle time.

14. Diagram the improved process, compare to the target process, and identify
gaps for further improvement actions on an ongoing basis until the target is
achieved.
Case Study

Value-Added Flow Chart

This case study presents the analysis of Total Cycle Time (Lead Time) for a
manufacturer of appliances. This form of a value stream map is focused
only on cycle time, identifying time used to add value and time that adds
no value. Other forms of waste are not identified.

As shown in the summary below, only 1.5% of the total cycle time is used
to add value. This analysis was used to prioritize a project to improve
manufacturing flexibility.
2.16 Spaghetti Charts

Spaghetti Diagrams

Beyond understanding the functional steps in a process, it is often useful

to identify the physical flow of materials or information (e.g. the flow of a
document through a process). If a process follows a bewildering path from
operation to operation, you can bet that time delays and inefficiencies are
present. The first step to improving the physical flow of a process is to map
it using a Spaghetti Diagram.

There are essentially two flavors of spaghetti diagrams. One is for the
physical movement of material relative to the physical location of the
process steps, and serves to highlight long travel routes and queue times
between process steps. The other examines the movement of
information, and is used to highlight the number of times information is
handled or manipulated, as well as queue times while waiting for an
operation to be performed. The metrics of interest may include: total
distance traveled, total cycle time, and number of process steps.

Following is an example of the first type of spaghetti chart representing

the "flow" of a patient requiring surgery subsequent to visiting the
Emergency Department of a hospital. You can see from the tangled
process flow where Spaghetti Diagrams got their name.
Because of the physical layout of facilities, you can see that total distance
traveled is 1,488 feet!

Much like in a "job shop" layout of a machining center, process steps are
grouped by function rather than flow, so imaging equipment is grouped
together in a Radiology Department that may be located far from the
Emergency Department. Likewise, diagnostic tests are processed in a
centralized laboratory that requires transport of samples and results.

MoreSteam Note: Look at the convenient central location

of the cafeteria. It's convenient for people who want to use
it, but it is clear from the spaghetti diagram that it is
somewhat of a roadblock to smooth patient flow. Another
consideration is the number of waiting rooms (in gold). If
the wait could be minimized or eliminated then the waiting
rooms could be minimized, combined, or eliminated;
thereby freeing up space for more value-added process
steps.
The next example, focusing on information flow, is less concerned with the
actual physical location. This example represents the process used by an
insurance company to credential (approve) new physicians to participate in
a health care plan. What is important in this type of map is the
identification of the number of steps where nothing (queue) is happening
and the number of times the information is handled or manipulated. A
focus of the improvement effort would be to eliminate non-value-added
operations, combine operations to improve flow and minimize the
handoffs, and reduce the queue times.

There are so many delays and rework loops in this process that only a few
hours of value-added time is stretched out over almost six months -
making this process a nice candidate for improvement.

*Practice exercise available online

2.17 Value Stream Mapping Toolset - Intro

Introduction to Value Stream Mapping

A value stream is the complete sequence of activities an organization

performs in order to produce and deliver its end product or service. It
encompasses suppliers, internal processes, customers and end-users. This
toolset focuses on the flow from customer demand backward through the
process to supplier delivery of raw material or information.

A value stream map is a graphical representation of the series of activities

the organization follows in producing and delivering its end product or
service. It shows the flow of information and material and the occurrence
of actions using easy-to-understand symbols.

Value Stream Mapping consists of 2 main steps:

Map the current value stream (current state map) - this will help your
organization to see the total flow of material and information and to
identify sources of waste.
Map the desired value stream (future state map) - this forms the
basis of your lean improvement implementation plan and identifies
the specific areas and magnitude of improvement required.

Value stream mapping is a valuable tool to both lean and Lean Six Sigma
projects. A value stream map should be created prior to any lean initiative.
A SIPOC map, spaghetti diagram, or flow chart should be created in the
first steps of a Lean Six Sigma project and can be used as a guide when
mapping the value stream.
2.17 Value Stream Mapping Toolset - Example

Value Stream Mapping Example - Background

AquaMed Intravenous, a manufacturer of medical products, had received
complaints from its customers that the 11.5 day lead time between order
and delivery was excessive for its saline solution IV bags. Several
customers suggested that they would switch suppliers if the situation did
not improve.

The plant manager formed a Lean Six Sigma improvement team to tackle
the problem. The customer demand is an average of 345 bags per day.

Map the Current State

Before mapping of the value stream could start, the relevant value stream
needed to be identified and defined. In this case, customer data clearly
indicated that the value stream for delivery of saline solution IV bags
should be mapped. Watch a brief video introduction to the Aquamed
Process:

*Video available online only.

A lean improvement team was formed and the current state was mapped.
Follow the reference link to the right to see the standard value stream
mapping icons.

Starting with the shipping step of the value stream, the team worked
backward and identified:

Each step in the value stream

 The number of employees required to run each step
The wait or queue time between each step
The cycle time for each step
The department responsible for each step
The name of each step

Finally, the team selected 2 lean metrics to focus their efforts:

Lead Time - the time (in days) from receiving raw material to shipping
product.
Customer Retention Rate - the percentage of customers who
purchase again, measured monthly.

The map of the current state is shown below:

Map the Future State

In order to envision the future state the team first calculated the pace of
production necessary to meet demand, or takt time, using the information
gathered in mapping the current state. They had found that the facility
runs 8 hours per day and averages 345 saline solution IV bags shipped per
day. The team decided to use a time scale in seconds. 8 hours is equivalent
to 28,800 seconds. The customer demand is 345 bags per day. The takt
time calculation is as follows:

The available processing time = 28,800 sec - (20 min * 60

per day minus breaks sec/min)
= 28,800 sec - 1200 sec
= 27,600 sec

The customer demand per day = 345 bags

The takt time = 27,600 seconds / 345 bags =

80 seconds

Thus, the pace of customer demand (takt time) is 80 seconds per bag. The
facility needs to be able to process a bag every 80 seconds to meet
customer demand.

After performing additional analyses, it was determined that the following

changes would be made:

Combine the Cut, Label and Connector steps into one step
Initiate a stretch objective for the combined step to improve cycle
time from 85 seconds to 75 seconds
Reduce the change-over time for the fill/seal machine from 45
minutes to 9 minutes
Reduce incoming inventory to 1.5 days and have daily supply runs
from the suppliers

The map of the future state is shown below:

Several lean improvement projects were implemented:

The sequential process steps of Cut -- Label -- Connector were

combined into one (Assembly) and performed in a work cell
A supermarket with kanban pull system was set up between the Fill
and Seal step and Assembly step
A FIFO (first-in-first-out) lane was set up between Assembly and
Shipping
Supplier orders were triggered by a kanban set up before the
assembly steps
Suppliers made daily delivery runs to minimize inventory
A cycle time reduction project was undertaken to reduce the cycle
time of the combined steps from 85 sec to 75 sec.
An error-proofing project was undertaken to ensure proper connector
attachment to the bags
Plans were developed for a quick change-over project on the fill/seal
machine to reduce the time necessary to switch from making one
type of IV to another. This project was to be implemented in a
subsequent action.
Watch a brief video summary of the improved process:

*Video available online only.

The results of moving the value stream to the future state were:

The lead time for bags was reduced by 78% from 11.5 days to 2.5 days
Customer defections were avoided
Suppliers maintained pricing because the increased shipping
frequencies were offset by a more consistent demand

MoreSteam Note: Subsequent focused Lean improvement

actions, or Kaizen events, may be executed to continually
reduce cycle time and inventory levels.
Link within Lesson

Aquamed - Improved Process

*Video available online only.

Link within Lesson

Map the Current State - IV Bag Process - Transcript

1. Draw the customer at the end of the value stream in the upper right corner of
the map. Remember, the customer can be internal or external

2. Determine the average daily demand. In this case, work results sent to the
customer

3. Draw the supplier(s) at the beginning of the value stream in the upper left
corner
4. Starting with the final step of the value stream, work upstream (to the left) and
draw and draw each process step
a. Document all process attributes including:

i. Cycle time

ii. Number of workers, and, if applicable,

iii. Setup time

iv. Change over time

b. Identify queue lengths (in pieces or batches) between processes. The queue
time is a function of the queue length and the demand (or consumption
rate)

c. Identify manual and electronic communication within the value stream

d. Identify the type of work with push or pull icons

5. Identify any exceptions that are dealt with within the value stream (there are no
exceptions in this example)

6. Finally, create a timeline showing the process time and queue times at the
bottom of the map
Link within Lesson

AquaMed: Current State - Transcript

Operator A is pulling untrimmed bags from a pile on the left, trimming

bags one at a time and putting them in a pile on the right.

Operator B is pulling single trimmed bags from Operator A's pile and
labels from another pile, labeling the bags one at a time and then putting
them in a pile on the right.

Operator C is pulling single labeled bags from Operator B's pile and
connectors from another pile, putting the connector on one bag at a time
and then putting them in a pile on the right.

Operator D is pulling from Operator C's pile to load the Fill/Seal machine to
load bags and piling up the filled/sealed bags on the right.

Bags are then packaged and shipped.

Link within Lesson

AquaMed: Future State - Transcript

Operator A is working at a table that has untrimmed bags, labels and

connectors arranged neatly in bins, in the order the items are used. The
bins are located to make them easy to access and easy to refill.

Upon receiving an electronic signal, also called a kanban, from the fill/seal
operation (now performed by Operator D), Operator A produces 15
assembled units and sends them to the fill/seal operation. The kanban
signal lets Operator A know that work in the fill/seal operation has
commenced and a replenishment of new bags is needed.

Operator D works at the fill/seal machine. Operator D gets an order

(kanban) for 15 bags from production control inside the plant. Operator D
loads the machine and runs it until there are 15 bags in the bin next to the
workstation.

Shipping grabs a bin and puts it in the truck for shipment.

As soon as Operator D pulls the 1st bag from the pile to the left to load
into the machine, Operator A gets a signal (kanban) to trim/label/connect
15 more bags.
Link within Lesson

Aquamed - Current Process

*Video available online only.

Definition

Value Stream Mapping Icons

Information Flow Icons

Icon Name Description

Electronic Flow of Shows information that is moved electronically.

Information

Manual Flow of Information Shows information that is moved manually.

Production Kanban A physical card that is used to indicate the completion of a particular process
step.

Withdrawal Kanban A physical card that is used to obtain material from inventory.

Kanban in Batches Production kanban arrives in batches.

Signal Kanban A card used to start a batch operation.

Kanban Card Post Shows that a physical kanban card mailbox is used.

Load Leveling Indicates load leveling has been employed (kanban systems).

Information Type Identifies the information type being referenced (e.g. delivery schedule).

Pull Ball Immediately produce a quantity - a pull system without the supermarket.

Go See Scheduling Adjusting schedules based on physically checking inventory levels.

 Material Flow Icons
Icon Name Description

Pull Movement Shows the flow of material required by the next process step.

Push Movement Shows the flow of material provided by the previous process step.

Automated Movement Shows automated handling of material between process steps.

FIFO Lane Shows that the item that has been longest in a batch is the first to be
removed for the next step.

Physical Pull Shows that material is physically pulled from inventory.

Forklift Shows movement of material by forklift.

Truck Shipment over land.

Ship Shipment over sea.

Plane Shipment by air.

Train Shipment by rail.

Inventory, Work in Process, Shows the inventory count or queue time.

Queue Time

Supermarket Controlled inventory of parts used to schedule upstream processes.

Emergency Stock Shows the products contained in emergency stock.

 Production Flow Icons
Icon Name Description

Process Step This icon represents a process step. Place the department name in the top section and the name
of the process step in the bottom section.

Shared Same as Process above except the process is shared between organizations.
Process Step

Outside Suppliers of material and information and Customers of the end product or service.
Source

Data Box Place key data or metrics here such as changeover times, availability, efficiency, etc.

Operator This symbol shows the number of people required to perform a process step / operation.
 Lean Manufacturing Icons
Icon Name Description

Quick Changeover Shows that quick changeover techniques have been employed.

Visual Management Shows that visual management systems have been implemented.

Errorproofing Shows that error proofing has been applied.

Stretch Objectives Shows that stretch goals have been developed and applied.

Performance Boards Shows that performance boards have been created.

Constraining Operation Shows a constraining operation.

Standards / Procedures in Place Shows that process standards / procedures exist.

Deeper Dive

Takt Time Calculation

Takt time is a measure of the pace of customer demand. Takt time is used
to determine how fast a process needs to run to meet customer demand.
Takt time is calculated by dividing the total available process time by the
total quantity required by the customer.

For example, an insurance claims processing center operates on two eight-

hour shifts. All operators get one 30 minute and two 15 minute breaks.
The processing center averages 336 customer claims processed per day.

The available processing time per day = 2 shifts * (480 minutes/shift -

60 minutes/shift) = 840 minutes
The customer demand per day = 336 claims
The takt time = 840 minutes / 336 claims = 2.5 minutes

Thus, the pace of customer demand (takt time) is 2.5 minutes per claim.
The processing center needs to be able to process a claim every 2.5
minutes to meet customer demand.

*Practice exercise available online

Case Study

Value Stream Mapping - Transactional Example

The emergency room of a suburban hospital has received complaints

regarding the time it took to see a doctor. Patients often left the
emergency room in frustration after waiting over an hour without seeing a
nurse or doctor. A secondary complaint was that it took too long to get out
of the emergency room once the doctor had made a diagnosis, often more
than 20 minutes.

The hospital administration formed a lean improvement team to tackle the

problem. The team scoped the project for the green-level patients in the
emergency room. "Green" refers to a level of triage that is assigned to a
patient. There are 3 levels: red requires immediate attention, yellow moves
to the top of the registration wait list and green can be seen according to
the standard process. The emergency room averages 96 green level
patients per day. 100% of the patients who left without being seen were
green level.

Map the Current State

Before mapping could start, a decision on what value stream to map was
made. In this case, it was decided to map the value stream for delivery of
service to green-level triage patients in the emergency room.

A lean improvement team was formed and chartered and the current state
was mapped.

Starting with the Payment step of the value stream, the team worked
backward and identified:

Each step in the value stream

The number of employees required to run each step
The wait or queue time between each step
The cycle time for each step
Finally, the team selected 2 lean metrics to focus on:

"Door-to-Doctor" - the time (in minutes) from the time a patient signs
in at the triage desk to the time the patient is greeted by a doctor.
"Door-to-Door" - the time (in minutes) from the time a patient signs in
at the triage desk to the time the patient is discharged.

The map of the current state is shown below:

Map the Future State

In order to envision the future state the team first calculated the takt time
using the information gathered in mapping the current state. They had
found that the emergency room runs 24 hours per day 365 days per year
and averages 96 green level patients per day. The team decided to use a
time scale in minutes. 24 hours is equivalent to 1440 minutes. The
"customer demand" is 96 patients per day. The takt time calculation is as
follows:

The available processing time per day = 1440 minutes

The customer demand per day = 96 patients
The takt time = 1440 minutes / 96 patients = 15 minutes
Thus, the pace of customer demand (takt time) is 15 minutes per patient.
The emergency room needs to be able to process a patient (green level)
every 15 minutes to meet customer demand.

After performing additional analyses, it was determined that the following

changes would be made:

Combine the Registration, Authorization and Charting steps into one

step
Initiate a stretch objective for the combined step to improve cycle
time from 18 minutes to 12 minutes
Remove the Payment step from the value stream - will remain part of
the Order / Payment value stream
Initiate a stretch objective for the Discharge step to improve cycle
time from 4 minutes to 2 minutes

The map of the future state is shown below:

The results of moving the value stream to the future state were:

The time to see a doctor was reduced by 37% from 83 minutes to 52

minutes
The time from walk in to discharge was reduced by 43% from 120
minutes to 69 minutes
Patient walk-aways were eliminated
Patient satisfaction increased dramatically
2.17 Value Stream Mapping Toolset - How

Using Value Stream Mapping

As with Lean Six Sigma in general, effective value stream mapping efforts
within an organization have several prerequisites:

1. A commitment to lean methods must be made. Without a clear and

consistent commitment from senior management to becoming lean,
any improvement efforts are unlikely to be successful. Depending
upon the accounting system, Lean implementations may result in
short-term financial pain as inventories are reduced and production
rates are balanced with demand.
2. Lean training must be undertaken. It is critical that those employees
who will be leading lean initiatives be trained in the necessary tools
and that all employees understand what lean is and what their role is.

3. A lean team must be formed with the appropriate people who are
familiar with the value stream. Each value stream mapping effort
requires a team charter and a team formed with specific roles such as
leader and scribe.

4. The value stream must be identified and defined. It is tempting to

target a sub-process, but it is necessary to examine the wider value
stream so that sub-optimization does not occur. Subsequent efforts
can focus on sub-processes or elements of the value stream once the
broader context is understood. Practice identifying and selecting the
appropriate value stream:
 *Video available online only.

The five steps involved in performing a value stream map are:

Step 1 - Prepare to Map the Current State

Effective preparation lays the groundwork for a successful value stream

mapping effort. This includes identifying roles within the team,
establishing a mapping plan, establishing a data collection plan, and
following ground rules. Click on the icon below for detailed step by step
instructions:

Step 2 - Map the Current State

With preparations in place, you can begin to map the current state. As
tempting as it may be to rush through this step and start mapping the
future state, be disciplined in documenting the process as-is. The map of
the current state establishes a baseline from which the future state can be
developed and performance targets established. Without the current state,
it is impossible to determine how much improvement is needed and how
much has been accomplished.

Click on the icon below for detailed step by step instructions to Map the
Current State and then view the current state here:

Step 3 - Identify Lean Metrics

In order to assess the level of improvement of the future state over the
current state, metrics need to be established and baselined. Very often,
the primary metric that is selected is Lead Time which is defined as the
total time - including queue - that it takes to create a product from raw
material receipt to shipment. In the case of our example, it is the Lead
Time of 11.5 days that the hospitals are concerned with and the retention
of customers that our company is concerned with. The 2 metrics chosen
were Lead Time in days and Customer Retention Rate (%).

Typically, the lean metrics to be used are strongly suggested by the

problem or concern that lead to the formation of a lean team in the first
place.

Step 4 - Map the Future State

A map of the desired future state is developed to identify and

communicate the achievable first steps toward improvement, realizing
that there will be ongoing efforts to refine the process and realize
incremental gains. Starting with a calculation of takt time, the Future State
Map outlines efforts to balance production, reduce cycle time, reduce lot
sizes and implement continuous flow by pulling rather than pushing work-
in-process.

Click on the icon below for detailed step by step instructions to Map the
Future State then view the future state here:

Step 5 - Identify and Plan Kaizen Events

In order to achieve the future state, improvement activities will have to
take place - it is not enough to just map the value stream future state.
Kaizen (Continuous Improvement) activities are typically what is used to
achieve the future state. These quick, focused efforts may be referred to
as "Kaizen Events", or "Kaizen Blitzes", and may be implemented into the
overall project or may stand alone as shorter-cycle projects. See the
margin link on value stream mapping icons for many of the Kaizen
activities used in value stream mapping.

For our example, 2 Kaizen activities were identified:

1. Stretch Objective of 75 second cycle time for the combined assembly

process. This is needed to bring the value stream closer to continuous
flow.

2. Error Proofing of the assembly process to ensure proper seating of the

connector to the bag. This will greatly reduce scrap and the need for
rework, thereby increasing first pass yield. The value stream will be
closer to producing what is needed rather than overproducing because
of high scrap and rework.
Link within Lesson

Using MoreSteam Templates with Macros

MoreSteam template tools are built in Excel using the Microsoft Virtual
Basic for Applications (VBA) macro language. In order for these Excel
templates to work, you may need to make some alterations to the security
settings in Excel.

Macro-enabled Excel files end with the extension .xlsm (rather than the
typical .xlsx). When you first open a macro-enabled template, depending
on Excel's security level, you may receive a warning at the top of the
spreadsheet that looks like this:

If you have downloaded the template from your MoreSteam course, click
"Enable Content" to activate the macros embedded in the template. If you
don't see the yellow warning message, then one of two things has
happened:

1. Excel is set to ENABLE ALL macro content and the MoreSteam template will
operate correctly. However, this setting is NOT recommended, and you should
follow the instructions below to force Excel to require you to click "Enable
Content" to run macro-enabled Excel files. This is for your protection if you
receive an Excel file from somewhere unknown that is trying to execute macros
without your knowledge.

or

2. Excel is set to DISABLE ALL macro content without notification, and the
MoreSteam template will NOT operate correctly. This is the safest setting Excel
offers, but it also means you can't use the MoreSteam templates without
following the instructions below to enable macros.
To adjust your security settings, click on the "File" menu at the top left of
Excel, and then click on "Options" at the bottom of the left navigation bar.
Select "Trust Center" then "Trust Center Settings".

Click on "Macro Settings" on the left and then select "Disable all macros
with notification". Click "OK" at the bottom to close the "Trust Center" and
"Excel Options" windows. Close Excel.

Restart Excel and open the MoreSteam template file. You should now be
presented with the yellow, "Enable Content" warning bar. Click the button
to enable the MoreSteam template for regular use.
Link within Lesson

Map of the Current State

Link within Lesson

Map of the Future State

Link within Lesson

Prepare to Map the Current State

Identify roles within the team

As mentioned previously, it is assumed that a commitment to lean has

been made, training has been provided and a team formed. There are
several roles within the team that are critical to success:

Leader/facilitator to ensure that the schedule is kept and the effort is

thorough and complete.
Timekeeper to accurately determine cycle times for process steps
and inventory levels or queue times between process steps.
Scribe to document what is seen using common value stream
mapping techniques and icons.

Establish a mapping plan

It is not necessary to have an extremely detailed value stream mapping

plan, but the plan should include, at least, these four elements:

Start with a rough sketch of the value stream; perhaps using a

spaghetti diagram, SIPOC map or swimlane (cross-functional) process
map. Having a view of the overall value stream - both the physical
layout and the flow - helps the team maintain a proper perspective
when working on the details of a particular process step.
Identify main processes.
 Map out the data collection and documentation process from start to
finish. The types of data and information that should be collected are:
Total available time per day
Allotted break time
Planned down time
Average unscheduled downtime
Number of people working each process
Queue time or the amount of time work "waits" before moving to
the next downstream process
Process cycle time
Amount of work performed within the process per unit of time
Any exceptions to the process (e.g. expedited orders in an order
entry process)

Make the start of the mapping effort at the end of the value stream.
This is important because it puts the team in the mindset of looking
upstream to see what is required by the current process which is the
way a lean value stream should be constructed.

Follow ground rules

There are certain ground rules that should be followed to have a minimal
impact on the flow of work while obtaining all of the information necessary
from each process in the value stream:

Get permission from the responsible manager. While you may be

welcome, you are still a visitor and need to obtain all the appropriate
and necessary permissions to do your work.
Communicate the schedule of where you will be and stick to it. A lean
value stream relies on consistent process timing; don't demonstrate
the opposite with your schedule.
Introduce yourself to the people you meet. It would be very
intimidating for someone to walk up to your work area scribbling
notes and running a stopwatch. Wouldn't you like to know who that
person is?
Explain why you are there. Value stream mapping is not and should
not be portrayed as a way to reduce the number of employees.
Ask questions of the people operating the value stream processes -
they are the experts. Many of the solutions to process problems are
known by those who run the processes; all that is needed is to ask.
Link within Lesson

Map the Current State

The following outline details the steps for mapping the current process.

1. Draw the external/internal customer at the end of the value stream

Who is, typically, the end-user of the product or service being produced?

OPTIONAL for transactional processes: map the value stream as planned but
do so using a swimlane (cross-functional) flowchart grid.

2. Determine the average daily volume of work results sent to the

customer
How much of the product or service the customer is requiring?

3. Draw the external/internal supplier(s) at the beginning of the value

stream
Who provides the raw material or information for the value stream?
4. Starting with the final process, work upstream and draw each
process
What are the major processes that comprise the value stream? Typically the
final process is a shipping (product) or delivery (service) process.
a. Document all process attributes:
i. Cycle time - elapsed time to perform the required work of the process
on the product or service

ii. Number of workers - how many operators or employees are needed to

run the process

iii. Set up time - how long does it take to get the process ready to run after
it has been stopped

iv. Change over time - if the process is used for other products or services,
how long does it take to change over

b. Identify queue times between processes - this could be expressed as wait

time for a service item or as inventory (in units of time) of work-in-process
for a product or service item

c. Identify manual and electronic communication within the value stream -

how are the production requirements communicated

d. Identify the type of work movement with push / pull icons

5. Identify any exceptions that are dealt with within the value stream
Example: expedited orders in a standard order entry value stream
Link within Lesson

Map the Future State

1. Determine the takt time. On the previous page (Example) we determined that
the takt time for the value stream is 80 seconds.

2. Determine if the shipping process should pull directly from the upstream
process (true continuous flow) or from a Supermarket. A rule of thumb is that
if customer demand is unpredictable, use a finished goods supermarket,
otherwise pull directly from the upstream process. A second rule of thumb is
that the more customized the product, the less feasible a finished goods
supermarket will be. In our example, customer demand is steady and
predictable, so a FIFO (First In, First Out) lane was established between shipping
and the previous process. Finally, the customers purchase the IV bags in boxes
of 15. This will be used as the kanban size but will be expressed in terms of
minutes of production:

Takt time x box size = pitch (kanban size)

80 seconds x 15 units = 1200 seconds = 20 minutes
3. Implement Continuous Flow where possible. Continuous flow means that
work passes from one process step to the next without delay (queue time or
work-in-process inventory). To help see where continuous flow might be
possible, we examine a graph of the cycle time for each process and compare it
to takt time:

...the idea being that continuous flow can only be achieved when each process
operates at the takt time. In our example, the Fill/Seal process cycle time of 75
seconds is close to the takt time of 80 seconds. The other 3 processes (Cut,
Label and Connector) have cycle times much less than the takt time - which is
why there is currently significant queue time between these process steps.
Looking at the graph, the team suggested that it might be possible to combine
the 3 processes of Cut, Label and Connector. Looking at this in a graph:
It is apparent that the cycle time of the combined process at 85 seconds is more
than the takt time of 80 seconds. However, for the future state, the team has
decided to combine the 3 processes into one in a Cell Build format. In this way,
one operator can perform all three processes rather than one operator
performing each one of the three processes separately (the current state).
There are efficiencies inherent in a cell build format. The team determined that
these efficiencies, combined with a Kaizen stretch objective would allow a 75
second cycle time for the combined process.
 MoreSteam Note: While it may not seem significant
to reduce a process cycle time by 10 seconds when
the overall lead time is expressed in days, it is quite
significant in that the number of operators required
to run the processes was reduced from 4 to 2.

4. Determine where else supermarket pull systems are required.

Supermarket pull systems are needed when true continuous flow
cannot be achieved between processes. We have already shown that
continuous flow can be achieved for part of the value stream by
combining three process steps. Now, we look to the rest of the
process.

Upstream of the shipping process, we have already established a FIFO

lane. Upstream of the new combined assembly process we have the
suppliers. It is impractical to expect the suppliers to ship one bag and
connector at a time so we need to maintain some level of inventory.
This means that we will need a supermarket pull system between the
suppliers and the assembly process.

The best the team can do is a commitment by the suppliers to move to

daily milk run shipments from weekly shipments. Therefore, the best
that can be achieved in inventory is 1 day. The team opts for 1.5 days
and agrees that they will target 1 day after the assembly process cycle
time objective is met. A kanban system will be put in place so that
Production Control will be notified when the inventory for a
component is depleted.

The last place to look in our example is between the new assembly
process and the fill and seal process. Because they both have a future
state cycle time of 75 seconds, they are an ideal candidate for
continuous flow between them. However, the fill/seal machine has a
change-over time of 45 minutes when switching between different
models of IV, so the team opts to implement a supermarket pull
system and keep it in place until the change-over time is reduced, and
the assembly process achieves the 75 second cycle time objective.
5. Determine which process the schedule drives. In the current state,
each process received daily requirements from production control. In a
lean process, only one process receives the schedule. This process is
often called the Pacemaker Process because it sets the pace of
production. All process steps downstream from the pacemaker
process need to occur in a flow. (if there are none, then the shipping or
delivery process would be the pacemaker). In our example, all
downstream processes from the fill and seal process occur in a flow;
therefore, the fill and seal process is the pacemaker process.

Previously, we established the value stream pitch (kanban size) at 20

minutes. Production control, therefore, will release 20 minutes worth
of work at a time to the fill and seal process.
Link within Lesson

KAIZEN - Detailed Actions

Kaizen is the Japanese word for Continuous Improvement - a series of

ongoing incremental improvements by teams focusing on eliminating all
forms of waste from the operation - typically with little capital. Kaizen is a
philosophy, not just a process, and it is a crucial component of the Lean
Enterprise. Many companies have institutionalized the practice of Kaizen
by shop floor teams, and have achieved significant performance
advancement through the accumulation of incremental advancements
over time.

Kaizen activities are frequently organized as focused, action-oriented

"Kaizen Events" over a 2-5 day time period - also known as "Kaizen
Blitzes". A five-day program follows a schedule something like this:

The first day, Monday, is for team formation, initial data collection,
and mapping the process.
Day two is used to brainstorm solutions. The 5-Why tool for analysis is
frequently the foundation of problem-solving. Equipment is moved
and lines are re-arranged Tuesday night.
Wednesday the new process is implemented with adjustments, as
required.
On Thursday, the new process and adjustments are proven out.
Day five is used to display and communicate the accomplishment.
The Kaizen team includes shop floor personnel who are familiar with the
process, and who are tapping to help brainstorm solutions, often with the
help of experts who are trained in problem solving methods. This is not to
say that the Kaizen philosophy does not extend beyond the shop floor. In a
lean enterprise, the spirit of Kaizen pervades the organization and extends
to the supply chain to impact the full scope of the enterprise in all of its
activities.
Definition

Value Stream Mapping Icons

Information Flow Icons

Icon Name Description

Electronic Flow of Shows information that is moved electronically.

Information

Manual Flow of Information Shows information that is moved manually.

Production Kanban A physical card that is used to indicate the completion of a particular process
step.

Withdrawal Kanban A physical card that is used to obtain material from inventory.

Kanban in Batches Production kanban arrives in batches.

Signal Kanban A card used to start a batch operation.

Kanban Card Post Shows that a physical kanban card mailbox is used.

Load Leveling Indicates load leveling has been employed (kanban systems).

Information Type Identifies the information type being referenced (e.g. delivery schedule).

Pull Ball Immediately produce a quantity - a pull system without the supermarket.

Go See Scheduling Adjusting schedules based on physically checking inventory levels.

 Material Flow Icons
Icon Name Description

Pull Movement Shows the flow of material required by the next process step.

Push Movement Shows the flow of material provided by the previous process step.

Automated Movement Shows automated handling of material between process steps.

FIFO Lane Shows that the item that has been longest in a batch is the first to be
removed for the next step.

Physical Pull Shows that material is physically pulled from inventory.

Forklift Shows movement of material by forklift.

Truck Shipment over land.

Ship Shipment over sea.

Plane Shipment by air.

Train Shipment by rail.

Inventory, Work in Process, Shows the inventory count or queue time.

Queue Time

Supermarket Controlled inventory of parts used to schedule upstream processes.

Emergency Stock Shows the products contained in emergency stock.

 Production Flow Icons
Icon Name Description

Process Step This icon represents a process step. Place the department name in the top section and the name
of the process step in the bottom section.

Shared Same as Process above except the process is shared between organizations.
Process Step

Outside Suppliers of material and information and Customers of the end product or service.
Source

Data Box Place key data or metrics here such as changeover times, availability, efficiency, etc.

Operator This symbol shows the number of people required to perform a process step / operation.
 Lean Manufacturing Icons
Icon Name Description

Quick Changeover Shows that quick changeover techniques have been employed.

Visual Management Shows that visual management systems have been implemented.

Errorproofing Shows that error proofing has been applied.

Stretch Objectives Shows that stretch goals have been developed and applied.

Performance Boards Shows that performance boards have been created.

Constraining Operation Shows a constraining operation.

Standards / Procedures in Place Shows that process standards / procedures exist.

Link within Lesson

VSM — Map of the Current State

*Video available online only.

Deeper Dive

Takt Time Calculation

Takt time is a measure of the pace of customer demand. Takt time is used
to determine how fast a process needs to run to meet customer demand.
Takt time is calculated by dividing the total available process time by the
total quantity required by the customer.

For example, an insurance claims processing center operates on two eight-

hour shifts. All operators get one 30 minute and two 15 minute breaks.
The processing center averages 336 customer claims processed per day.

The available processing time per day = 2 shifts * (480 minutes/shift -

60 minutes/shift) = 840 minutes
The customer demand per day = 336 claims
The takt time = 840 minutes / 336 claims = 2.5 minutes

Thus, the pace of customer demand (takt time) is 2.5 minutes per claim.
The processing center needs to be able to process a claim every 2.5
minutes to meet customer demand.

*Practice exercise available online

Deeper Dive

Selecting The Value Stream

There are 3 main value streams within any organization (see the image
below).

Development - The processes involved in the conceptualizing, design,

development and validation of products and services. Examples:
Design
Testing
Simulation
Delivery (or, Transformation) - The processes needed to provide the
product or service to a customer. Examples:
Assembly (product)
Shipping (product)
Delivery (service)
Order / Payment - The processes used to manage the ordering and
payment collection for the product or service. Examples:
Order Entry
Order Verification
Order Acknowledgement

These value streams are applicable to any organization, whether it

produces products or services.
Manufacturing organizations typically produce a variety of products using
many different manufacturing and business processes. Non-
manufacturing organizations typically provide a variety of services using
many different business processes.

The scope of a value stream mapping effort should be one of the 3 value
streams identified above for:

A single product or product family

A single service type or service family

A "family" refers to different products or services that share many

common components or features.

While it may be clear that a particular product or service is part of a family,

this does not mean that the value stream must include the family. In our
example we are focusing on the Delivery value stream.
2.17 Value Stream Mapping Toolset - When

When to Use Value Stream Mapping

A Value Stream Map defining the current state of an organization should

be created as the first step of a lean initiative.

Answering Questions With Value Stream Mapping

Value Stream Mapping can be used to

answer the following questions:

What is the flow of material and information

in our organization?
Where are the linkages between the
information and material flows?
Where are the sources of waste?
What should our flow look like?
Where should our improvement efforts be
focused?
2.17 Value Stream Mapping Toolset - Practice

Practice - Value Stream Mapping

A team at Electron Office Equipment is working to develop a value stream

map and needs some help completing the task.

With your newfound knowledge of Value Stream Mapping, you can assist
Electron in determining what the missing elements of their value stream
map are.

*Practice exercise available online

2.18 Skill Check

Session 2 Wrap-up

Before You Take the Quiz

How did you score on the practice exercises? Review your answers before
you take the quiz. (If you answered a question more than once, your most
recent response is displayed below.)

*Available online only; Sample practice results displayed.

Take the Quiz

Remember, you may refer to the material before answering the questions.
If you answer incorrectly, you will be presented with a link back to the page
from which the question was drawn.