JWI 550 Strayer University Wk 3 Business Value Stream Mapping and Analysis JWI 550: Operations Management Course Project Part A Value Stream Mapping and A

JWI 550 Strayer University Wk 3 Business Value Stream Mapping and Analysis JWI 550: Operations Management
Course Project Part A
Value Stream Mapping and Analysis
Due: Sunday, Midnight of Week 3 (10% of course grade)
Overview
As we have learned though our readings and discussions in this course, Lean is used to improve operations
and processes in services, manufacturing, healthcare, government and other sectors of the economy. A core
tool in Lean is Value Stream Mapping. This tool helps us to visualize complex work systems (including
material and information flows) so we can better address disconnects, redundancies, and gaps in how work
gets done between the beginning and end of a process.
?
The primary type of value stream is one in which a product or service is requested by (and delivered
to) an external customer. Examples include: request to receipt, order to delivery, and quote to cash.
?
Other value streams support the delivery of value, called value-enabling or support value streams.
Examples include recruiting, onboarding, IT support, and annual budgeting.
Since it is nearly always a mistake to initiate changes without have a clear picture of how the system is
currently functioning, we are beginning our Course Project with the creation and analysis of a Value Stream
Map.
Instructions
For the Assignment, select a value stream in your organization that can benefit from analysis and
improvement. As noted previously, the value stream (or end-to-end process) selected does not need to be
overly large or complex. Select something which has the potential for meaningful improvement, but which is
manageable within the scope of this assignment.
1) Develop a current state Value Stream Map of your selected value stream. Show the customer demand
rate (or Takt), information flow, work flow, and summary timeline on the map.
2) Document key metrics for each process block:
? Process time (PT)
? Lead time (LT)
? Percent Complete and Accurate (%C&A)
? Include any other appropriate metrics, such as number of operators, changeover time or setup time,
batch size, and % uptime.
© Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied,
further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. This course guide is
subject to change based on the needs of the class.
1
JWI 550: Operations Management
Course Project Part A
3) Calculate the current state summary metrics:
? Total lead time (Total LT)
? Total process time (Total PT)
? Activity Ratio (AR)
? Rolled Percent Complete and Accurate (Rolled %C&A)
4) Describe the current state of the value stream and highlight any performance deficiencies and challenges,
such as delays, excessive WIP, bottlenecks, capacity and workload imbalances, rework, poor quality
yields, long lead times, and other operational issues.
Submission Requirements
Your work may be submitted in either Word or PowerPoint.
?
Since you will need to include a diagram to map the value stream for #1, you should select
whatever software you are most comfortable working with. Value stream process maps can easily
be created in PowerPoint, but are more difficult to execute well in Word. You should consider using
https://www.draw.io/ which is a free web-based tool for drawing flowcharts. Instructions for use are
posted in the Course Documents section in Blackboard. You may also use other software such as
Visio if you prefer, but this is not necessary. Note: If you do use a different mapping software and
experience difficulties uploading it into Blackboard, convert your map to a PDF or JPG and paste it
into Word or PPT before submitting.
?
For #2, the information for each process block should be on the value stream map. For #3, it can
be on the map or in tabular form. Show how the summary metrics are calculated. Keep your
written answers brief and to the point. Accuracy is what matters. This should take no more than
one page. There are no additional points for overly elaborate responses.
?
For #4, a thorough response should take no more than one page.
© Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied,
further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. This course guide is
subject to change based on the needs of the class.
2
JWI 550: Operations Management
Course Project Part A
RUBRIC: Assignment Part A
CRITERIA
Develop a current state
Value Stream Map of your
selected value stream.
Show the customer demand
rate (or Takt), information
flow, work flow, and
summary timeline on the
map.
Unsatisfactory
Low Pass
Pass
High Pass
No value stream
map included
and/or incomplete
or inaccurate use of
mapping
conventions or
symbols.
Value stream map
shows the basics of
the work flow, and
process blocks.
Value stream map
shows information
flow, work flow, and
process blocks.
Value stream map
shows customer
demand rate (or
Takt), information
flow, work flow and
process blocks.
Value stream map
gives a complete,
detailed, and
accurate picture of
the current state,
showing customer
demand rate (or
Takt), information
flow, work flow and
summary timeline.
No key metrics
included and/or
metrics are
incorrect.
At least one key
metric documented
for all process
blocks.
At least 2 key
metrics calculated
and documented
correctly for all
process blocks.
All key metrics
calculated and
documented
correctly for all
process blocks.
All key metrics
calculated and
documented
correctly for all
process blocks,
and relevant
additional metrics
are included.
No key metrics are
calculated correctly.
At least one key
metric is calculated
correctly.
At least two key
metrics are
calculated correctly.
Three key metrics
are calculated
correctly
All four key metrics
are calculated
correctly.
Description of the
current state of the
value stream is
missing or lacking
accurate details.
Describes the
current state of the
value stream but
without sufficient
detail.
Satisfactory
description of the
current state of the
value stream, with
sufficient detail.
Complete, correct
and accurate
description of the
current state of the
value stream, with
good use of
relevant metrics
and performance
levels.
Exemplary
description of the
current state of the
value stream, with
excellent use of
relevant metrics
and performance
levels,
Weight: 25%
Document key metrics for
each process block:
Process time (PT)
Lead time (LT)
Percent Complete and
Accurate (%C&A)
Honors
Include any other
appropriate metrics such as
number of operators,
changeover time or setup
time, batch size, and %
uptime.
Weight: 25%
Calculate the current state
summary metrics:
Total lead time (Total LT)
Total process time (Total
PT)
Activity Ratio (AR)
Rolled Percent Complete
and Accurate (Rolled
%C&A)
Weight: 25%
Describe the current state of
the value stream and
highlight any performance
deficiencies and challenges – such as delays, excessive
WIP, bottlenecks, capacity
and workload imbalances,
rework, poor yields, quality,
lead time, and other
operational issues
Weight: 25%
© Strayer University. All Rights Reserved. This document contains Strayer University Confidential and Proprietary information and may not be copied,
further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of Strayer University. This course guide is
subject to change based on the needs of the class.
3
Value Stream Mapping and Analysis:
Part A
Insert Name
Jack Welch Management Institute
Professor Chinue Uecker
JWI 550
July 21, 2019
Title:
Takt time:
Current State Value Stream Map
Please complete
the VSM, add data,
add the IT system,
and add summary
timeline. Refer to
page 87 or 89 in
the VSM text.
Customer
rocess
oes on
Insert text
erforms
ep goes
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert text
Insert LT
Insert PT
Insert LT
Insert PT
Insert LT
Insert PT
Insert LT
Insert PT
Insert LT
Insert PT
Insert LT
Insert PT
Summary Metrics Calculations
Process
Number
Process
Lead Time (LT)
Process Time (PT)
% Complete &
Accurate
Activity Ratio
=
Total Process Time
Total Lead Time
Insert value here
Insert value here

=
=
TOTAL
* Total LT and PT are calculated by summing the LT and PT values for all processes.
** Total %C&A is the Rolled %C&A, which is calculated by multiplying the %C&A for all processes.
XX.X%
Value Stream Current State Overview
Overview of the Process
Describe the process here
Challenges
?
List and briefly describe the challenges here
Bottlenecks
?
List and briefly describe the bottlenecks here
References
?
Martin, K. & Osterling, M. (2014). Value Stream Mapping.
Conduct Sales
Mtg / Demo
10
3
Contact
Customer
Sales / Technical 12
1
2
Customer
7
Sales
25
PT = 2 hrs
LT = 2 wks
%C&A = 75
PT = 3.5 hrs
LT = 4 wks
%C&A = 80
2 hrs
2 wks
3.5 hrs
4 wks
Execute
Proposal
SQO
1
Review Special Bid
Pricers
4
Generate
Quote
5
5
Sales
7
Conduct POC
2
Technical
PT = 5 days
LT = 2 wks
%C&A = 80
2
PT = 2 hrs
LT = 2 hrs
%C&A = 95
Total PT = 138 Hrs (3.4 wks)
Total LT = 605 Hrs (15.1 wks)
AR = 22.7%
Rolled %C&A = 38.6%
10
10
PT = 3 hrs
LT = 1 wk
%C&A = 60
2
6b
Pricers
PT = 4 hrs
LT = 3 wks
%C&A = 99
6a
Review Standard Bid
5
Sales
Deliver
Quote
7
Sales
7
PT = 3 hrs
LT = 3 hrs
%C&A = 99
Finalize 8
Procurement
1
Sales
7
PT = 2 wks
LT = 3 wks
%C&A = 96
PT = 20 min
LT = 1 hr
%C&A = 90
5 days
2 wks
2 hrs
2 hrs
3 hrs
1 wk
3 hrs
3 hrs
2 wks
3 wks
4 hrs
3 wks
9
7
Overview of the Process
The Sales Conversion Process begins with contact with the customer and includes the activities to understand their requirements, present a solution
(both in concept and to prove out), provide pricing proposals through to procuring the software and executing a PO. The Sales Process has not been
traditionally included when mapping operations within an organization; thus, there are no defined metrics for the steps of the process. The PT and
LT times shown are anecdotal and should be more formally assessed by “going to the gemba.”
Challenges
• As a workforce, Sales reps are likely one of the hardest groups to map as many Sales Reps would argue that what they do is more art than science.
Typically, Sales Reps have not been required to account for their time to any detail. This makes the Sales Process challenging in that there have
not been any true time studies to use a foundation. The Sales Process needs to be studied at the process level, not at an individual customer level.
• There are categories of waste within the areas of waiting, extra processing, correction, etc. Much of the process is manual, and likely to continue
to be manual, which means you are relying on human action which is prone to error, distraction, etc. This is further support to study in detail.
• Variability is a third challenge. The variability across reps (personalities and skills), customers, industries, and geographic locations makes it
harder to determine what is value add and what is wasteful which will be critical in establishing a process on a large, repeatable scale. There is
also variability in the execution of the process (what steps are taken, in what order, etc.) which causes variability in the process times.
Bottlenecks
• Within Sales, the customer is heavily involved. There is a lot of external wait time spent waiting for the customer to respond, be available, etc. As
an example, the Meeting noted is on average 2 hours; however, the elapsed time is 2 weeks. This time is waiting for the customer to respond and
to find available time on their calendar that matches your own. Another example is the procurement process. At this point, the Sales Rep is
waiting for the customer to complete their own procurement process. These are not controllable within the Sales Process and therefore
contributes to the longer lead times.
• The primary internal bottleneck has to do with the quote/proposal generation which is a very manual process. The Sales Rep creates the quote,
submits it to a Pricer and then the Pricer reviews it to make sure that it meets specifications. If there is inaccurate or missing information, he will
return the quote to be fixed. If not, he will process it and the quote will be generated and sent to the rep for customer delivery. For a pricer, the
review can be as little as 10 minutes to days of back and forth with the Rep. There is variability in the types of bids being reviewed as well as
volume due to time (end of month, end of quarter, etc.). It is not uncommon to have over 10 bids in their queue at a time and frequently working
3-5 bids at the same time. This is an area that contributes to the long delays but also is an area that could benefit from analysis to determine
value add vs. wasteful steps.
JWMI 550 – Part A: Value Stream Mapping and Analysis – ABC Proposal to Deployment
ABC Customer
Prioritized Initiatives
High Level Design
Doc
Detailed Design
Doc
Development
Tracking Tool
5
Estimate, 7
Commit &
Deliver User
stories
Proposals
Review 1
Proposals
Develop High 2
Level Design &
Features
SEs, SMEs
Product Team
9
15
10
Develop 4
Detailed
Design & Epics
SEs, PODs
20
Develop Epics
and User
Stories
PODs, Dev
Leads
20
Code
Repository
System Test
Integrated
Test Cases
10
Deploy in
Datacenters
9
Integrated Test
8
Integrated Test
Team
System Test
Team
Scrum Teams
100
System Test
Cases
15
15
15
50
50
Scrum Team,
Deployment
Team
20
LT = 20 Days
LT = 25 Days
LT = 20 Days
LT = 60 Days
LT = 60 Days
LT = 20 days
PT = 5 Days
PT = 10 Days
PT = 20 Days
LT = 30 Days
PT = 15 Days
PT = 20 Days
PT = 10 Days
% C&A = 80%
% C&A = 40%
% C&A = 70%
PT = 10 Days
% C&A = 70%
% C&A = 60%
PT = 40 days
% C&A = 90%
% C&A = 90%
% C&A = 90%
LT = 20 Days
Set up Dev & 6
Test
Environment
Estimate & 3
Secure
Funding
SEs, Sponsors,
PMs
20
Current State Value Stream Map
ABC Proposal to Deployment
Demand Rate = 30 proposals per year
Value Stream Champion: XYZ
January 21, 2018
Lab Team
10
LT = 60 Days
LT = 40 Days
PT = 10 Days
PT = 5 Days
% C&A = 80%
% C&A = 80%
20 days
40 days
25 days
60 days
60 days
60 days
20 days
30 days
5 days
5 days
20 days
10 days
20 days
40 days
10 days
10 day
Value Stream Calculations – Current
Total lead time (Total LT) = L1 + L3 + L4 + L6 + L7 + L8 + L9 + L10
= 20 + 40 + 25 + 60 + 60 + 60 + 20 +30
= 315 Days ~ 1.5 Year (1 Year = 206 Days)
Parallel
processes
Total process time (Total PT) = P1 + P3 + P3 + P6 + P7 + P8 + P9 + P10
= 5 + 5 + 20 + 10 + 20 + 40 + 10 + 10
= 120 Days ~ 1 Year
Activity Ratio (AR) = Total Process Time / Total Lead Time * 100
= 120/315 * 100
= 38 %
Rolled %C&A = Multiply %C&A P1 through P10 * 100
= 0.8 * 0.7 * 0.8 * 0.6 * 0.4 * 0.8 * 0.7 * 0.9 * 0.9 * 0.9 * 100
= 4.3%
Assumptions:
• 1 Year = 206 Days
• 1 Day = 1 working Day = 8 hours (No breaks included)
Value Stream Mapping and Analysis
“ABC Proposals to deployment” Workflow Background and Current Metrics:
ABC Customers submit their proposals (request for development) via proposal website. Our product team understands proposals by working with the
customers, sometimes even creating proposals for them. Based on various criteria, product team hands over top 15 prioritized view to develop high level
design and to finance team to secure funding. Detailed design for individual proposals can only start once high level design is agreed on and funding is
approved. Our development teams follow Agile methodology. So, detailed design gets handed over to Scrum teams for further breakdown into epics and user
stories, to which scrum teams commit based on their team’s velocity. However, development and testing cannot start until dev and test environments are set
up. Testing, Integration testing and production deployment work on the batches of 15 proposals.
• Long Lead Time – IT customers expect 30 proposals deployed in a year, while we are able to deploy 30 proposals in 3 years (15 every 1.5 year)!
• Low Activity Ratio – While we think we are all very busy, our activity ratio is only 38%. We are doing non-value added activities approx. 60% of the time.
• Very low Rolled %C&A – This is most alarming at 4% and needs improvement
Performance Deficiencies & Challenges
• Push method – We push work to next level through out, except at dev level where they pull development work into each iteration following Agile method.
• Batching – The batch size of each planned IT release is 15 proposals and release frequency is twice a year. All the teams except for development team
follows this batch size, while development follows a batch size of iteration (2 weeks).
• Excessive WIP –We find excessive WIP due to very large batch size, which reduces to just 1 iteration for scrum teams (with 20 scrum teams). It is a
symptom of overproduction, overburden, batching, poor incoming quality requiring rework, variation in prioritization rules, variation in skill proficiency,
and so on.
• Prioritization Rules – Priority of proposals get changed at each levels of design, dev and testing due to funding, capacity or requirement limitations.
Priority changes cause switch tasking, interruptions, and excessive re-work.
• Shared resources or Inaccessible staff –Typically, when design team is working on a release, dev team is working on the previous release. So, cross-team
feedback such as during design review or dev acceptance, can get delayed due to multiple obligations and priorities on both sides.
• Applying Ohno’s categories of waste:
• Transportation – Multiple handoffs, reviews, and different storage locations with no clear traceability
• Inventory – Large no. of batch size, than downstream systems such as dev can handle
• Waiting – Testing team has to wait for test environment and batch of full release before then can start testing
• Over processing – Various doc Reviews, voting and hand-offs and then grooming in the Dev Tracking Tool.
• Defects – Most of our defects are turn backs, which are the defects found within the process. And, they cause re work.
• Bottleneck – Securing Funding and setting up dev and test environment are the largest bottleneck, increasing the process lead time by 60 days.
Installation of Precast Segments Value Stream
Customer = Construction Manager
Demand Rate = 1 Span Per week
A
1 Item
B
Segments arrive
onsite
Segments set
on gantry crane
Driver
Operator
LT= 15Min
PT= 5 Min
%C&A= 95%
C
12 Item
Installation of
Epoxy on
segment
12 Item
LT= 19 Min
PT =5 Min
%C&A= 100%
~1.4 Days
Temp PT to
stress segment
Iron Workers
Iron Workers
LT= 40Min
PT =36 Min
%C&A= 95%
Crew Size: 0.3 Superintendent
1 Field Engineer
1 Foreman
1 Operator
1 Electrician
1 Laborer
3 Iron Workers
D
LT= 16 Min
PT =8 Min
%C&A= 95%
E
12 Item
Survey for final
alignment of
segment
F
Post Tension
Span
1 Item
PT Team
Surveyors
LT= 11 Min
PT =3 Min
%C&A= 100%
LT= 960 Min
PT = 650Min
%C&A= 100%
~1.2 Days
Total PT
Sum LT
AR
Rolled %C$A
1007
1531
65.8%
85.7%
~2 Day
G
1 Item
Move Gantry
Operator
LT= 480 Min
PT = 300 Min
%C&A= 100%
~1 or .5 days
=A(PT)+B(PT)+C(PT)+D(PT)+E(PT)+F(PT)+G(PT)
=A(LT)+B(LT)+C(LT)+D(LT)+E(LT)+F(LT)+G(LT)
={(Total PT)/(Total LT)} *100
={A(%C&A)*B(%C%A)*C(%C&A)*D(%C&A)*E(%C&A)*F(%C&A)*G(%C&A)}*100
Takt Time = 1 span per week
1 week = 5 day work week, 8 hours per day
Comments and observations:
A – Segments delivered from precast yard staggered to limit backup of trucks at jobsi…
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