Links between cultural ecosystem services and human wellbeing dimensions

In order to map a value stream, one must first understand what a value stream is. As defined by Mike Rother and John Shook (2009, 1) in Learning to See:

A value stream is all the actions (both value-added and nonvalue-added) currently required to bring a product through the main flows essential to every product:

1. The production flow from raw material into the arms of the customer, and 2. The design flow from concept to launch.

Value stream mapping is simply an illustration of the sequential activities that take place within a value stream. At each step of the map the practitioner evaluates whether value is being created and whether one or more of the wastes exist. The purpose of the value

stream map is to identify those activities that add value and those that create waste, with the latter being targets for elimination. Every organization strives for value streams that add only value and have eliminated all waste.

The following are benefits of value stream mapping:

 It allows visualization of the big picture (more than just a single process) to see the flow of product, service, and information. Other quantitative tools and flow diagrams do not provide the same information at that level.

 It allows visualization of waste and the sources of that waste.

 It provides a foundation for all levels and functions to discuss the value stream and its processes.

 It allows for factual-based decisions about the flow of the process.

 It lays the foundation for creating an improvement strategy and implementation plan for the value stream.

 It shows the relationship between information and product flows.

Value Stream Mapping Steps

In the simplest of terms, the value stream process consists of the steps in Figure 2.3.1.3-1.

Value stream mapping follows the Plan-Do-Check-Act (PDCA) cycle of improvement methodology. The intent is to map the current state of the value stream, plan a future-state value stream with action items to get there, implement the action items, and then check the new current state of the value stream and act accordingly with countermeasures to achieve a new future state. This cycle continues throughout the lean journey. But first, one must know what to map.

Product or Service Family

It is often difficult to determine what value streams are present within an organization.

This is why it is a good first step to understand what product families exist within an organization. A product family is a group of products or services that share similar processes, steps, and equipment. One way to determine the product/service families within an organization is to use a product family matrix (Figure 2.3.1.3-2). Those products or services that share a large number of processes, steps, and equipment are grouped together into a value stream.

Current State

The value stream map can be considered a flowchart on steroids. While a flowchart is a simple visualization of a process, the value stream map is a bigger picture of the flow of a given product/service throughout the entire organization. Before beginning to map the process, it is important to plan how the process will be mapped. The following are considerations for value stream mapping:

1. Collect information while walking the value stream. Common practice is to use a cross-functional team of individuals who operate within the value stream, including the value stream owner and supporting functions at various levels. Each individual should carry an A3-sized piece of paper and document the value stream and information while walking the product/service flow and information flow, from beginning to end of the value stream.

2. It is common practice to begin at the shipping end of the value stream, closest to the customer. This helps keep a customer focus throughout the entire value stream.

3. Obtain all information directly from the value stream through observations, time study, inventory counting, and so on. Bring a stopwatch and physically count work-in-process (WIP). Do not rely on standard times and inventory levels established for the existing financial system, as this information is typically inaccurate.

4. Draw the value stream manually during the mapping exercise. The team does not need to waste time while one plots on a computer and everyone else waits. Each person draws the value stream at the value stream. It is common practice to use butcher paper, markers, and sticky notes on a wall for the entire team to participate in constructing the value stream for discussion and clarifications. Things can sometimes be overlooked by a team, but a number of individuals performing the same task will likely catch information missed by a group.

The common mapping format is for material flow on the bottom from left to right and information flow at the top from right to left (Figure 2.3.1.3-3).

The following are examples of information commonly gathered during the value stream mapping of the current state:

 Cycle time

 Changeover time

 Number of people

 Uptime/Downtime

 WIP

 Inventory

 Packaging size

 Scrap/Defect rate

 Total operating time (minus breaks)

 Value-added time vs. non-value-added time

 Lead time

 Number of changeovers

A number of these pieces of information (Figures 2.3.1.3-4 and 2.3.1.3-5) are metrics associated with lean. Specific definitions can be found in the glossary or in the representative areas of this book.

Future State

With the current state of the value stream now mapped, it is time to look at what improvements are needed. Therefore, the lean value stream needs to be understood.

Rother and Shook (2009, 38-48) offer the following seven guidelines in Learning to See.

1. Produce to the takt time

2. Create continuous flow wherever possible

3. Use supermarket pull systems to control production where continuous flow does not extend upstream

4. Send the customer schedule to only one production process (the pacemaker process) 5. Level the product/service mix evenly over time at the pacemaker process

6. Level the production volume by creating an “initial pull” releasing and withdrawing small, consistent increments of work at the pacemaker process

7. Develop the ability to make “every part every day” in processes upstream of the countermeasures) to reach the future-state value stream goal. It is also suggested that these plans be reviewed and revised yearly. Reconstruction of the current-state value stream map may be triggered when most of the countermeasures have been implemented. As a rule of thumb, a new current-state value stream map should be created when about 80% of the improvements (countermeasures) have been implemented.

In addition to the plan, value stream metrics should be established and monitored to verify performance improvement of the value stream. Rother and Shook (2009, 89) suggest that the measures adhere to the following principles:

1. Encourage desired behavior by those performing the work (adding the value) 2. Provide information to management to make decisions

3. Principle 1 takes precedence over principle 2

Keep value stream mapping in perspective; it is simply a tool to visually show the current flow of product/service and information in the organization and to guide everyone in the organization through the analysis of the process to improve the flows and design improved value streams.