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08/15/2005 11:46 AM
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Our company has attempted to Value Stream Map the office functions(HR, Finance, Logistics) and integrate these maps into our High Level Value Stream Map.
However, we have found ourselves struggling with whether these are really Value Streams themselves, or processes which support our Value Streams.
Our fundamental question, if you believe that these process in of themselves are not value streams, is how to show their relationships with each other (other functional areas) and how they interact with our Value Streams in a meaningful manner.
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08/19/2005 12:06 PM
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(I asked LEI faculty member Kirk Paluska, who teaches mapping workshops, for his thoughts. -Moderator)
Every business is a collection of primary and supporting value streams.
We sometimes use the terms value stream and business process interchangeably. Primary value streams serve external customers and contain the "value-added" work.
Secondary/supporting value streams serve internal customers or external non-customer stakeholders and contain the "incidental"
work. Incidental work is technically nonvalue added, but required to run the business.
The mapping tool is designed to visualize a single value stream at a particular "flight level." Maps can be drawn for any value stream: primary or secondary. To answer the question specifically, there is no prescribed method to show the relationship between primary and secondary value streams.
One method of illustrating this relationship is a fishbone diagram, with the primary value stream process boxes as the backbone and the supporting value streams as branches. This method can get a little messy as many supporting value streams support multiple internal customers, but it is the only method I have used or seen. I would be interested in seeing other methods of illustrating the relationship between primary and secondary value streams.
Kirk Paluska
Value Stream Solutions, LLC
office: 860.430.1360
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08/21/2005 11:49 AM
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Scott, Value Stream is equal to Process. Value Stream Mapping is just a Process Mapping with a set of special visualized symbols to reflect the operations on paper. This tool helps you to identify ¡§Improvement Opportunities¡¨ (refer to ¡§Lean Six Sigma Handbook¡¨ for details).
I think your question should be rephrased as ¡§Is Administrative Process Really A Value-Added one?¡¨ To answer your question, you must first know the definition of ¡§Value-Added¡¨. Value-Added Activity is the activity that favors to the customers. It has a few guidelines: 1) Customer requests and/or is willing to pay for it, 2) Physically transforms the material status, or information is processed, 3) It is defined and judged from the customer's view. (quoted from ¡§Lean Six Sigma Handbook (2005)¡¨.
According to the definition above, Administrative Process (HR/Accounting/Logistics/Adm/Internal Audit/Training) is non-value-added (NVA). To me, there are only VA and NVA, and nothing in between (e.g.: NVA, but necessary or required by your boss or mgt). For NVA, we should eradicate it. If we cannot eradicate it due to the current restrictions or limitations, we should reduce, isolated or outsource it.
Re: Link between the core and office VSMs:
To me, core and office function maps are at the SAME level. If you want to sell/buy to/from a customer/vendor, transactions must pass through the a/c dept. for reference/line check and billing/paying purposes. Those office function maps must be shown/integrated to the core one because those are the NVA and must be eradicated or reduced.
For Kirk¡¦s Primary and Secondary VSM level question, strictly technical speaking, Fishbone Diagram may not be applied to this situation. There is no cause-effect relationship between the primary and secondary (or Sub) processes. However, the problems in the primary level can be linked to the sub-processes (Cause-Effect relationship exists). In order to serve this purpose, there are 3 ways to do it: 1) Tree Diagram. It is a hierarchical tool to show and stratificate a broad issue into different levels of detail, 2) SIPOC. It is a tool in table format to display the relationship among Suppliers, Inputs, Process, Outputs, and Customer and the details of each. We can drill down to sub-processes for ¡§P¡¨ if necessary. 3) QFD. It is a series of tabular form tool to link critical customer and business requirements to different product types, the process, the process's characteristics and parameters. I used to apply those 3 tools frequently in my consultancy projects.
Hope it helps.
Eddie
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08/21/2005 01:15 PM
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I find distinctions between core work and support work not very helpful in value stream mapping administrative and support work flows. From a total systems point of view material core work and informational support work are both critical to getting a quality product to the customer on time at the right price.
I have done many value stream maps in support and upstream line organizations like engineering,purchasing,HR,finance etc.. They key to improvement work in these organizations is getting the proper portion of the workflow defined. Getting the right people in the room to do the analysis, and identifying the customers of the flow. In professional workflow analysis "everything is connected to everything" and you improvement technologies have to be robust, disciplined and precise enough to handle it.
Lou English Ph.D.
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08/26/2005 12:04 AM
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You have to go back and clarify the reason you are doing the value stream in the first place. Like all models, a value stream is an abstraction, and necessarily obscures some aspects of reality while highlighting others. The choice of what to highlight and what to obscure depends on what you want the model to accomplish.
I did whole series of value stream all focused on the processing of a single manufacturing order. It combined manufacturing flow, information flow, and document flow - including the routing sheets, sewn in care labels and carton labels. While the activities where distributed and diverse, they were unified by their association with a lifecycle of a single order. The resulting model(s) provided and continues to provide a catalyst as well as a sound intellectual foundation that drives all process improvement and process redesign we do.
Once you know the job you want the model to perform, debates like the one about whether administrative processes are value-added or not become less compelling.
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12/16/2005 10:31 AM
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My experience in seeking lead time reduction is that the critical path between order and delivery needs to be identified and targeted first. In some (many?) cases business processes (like taking the customer order)are in the critical path and must be looked at.
I hope that helps,
Jason
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05/25/2006 03:21 PM
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When I begin VSMs I always start by identifying the Value Stream Product. It makes mapping much easier especially in either administrative processes or even in the service industry. For example, in recruiting, an HR function, I begin by clarifying that the VS product is the "recruitment of a qualified candidate". For each administrative activity if you look at the "end result", the Value Stream Product you can then map it. And every process whether production, administrative, healthcare, etc has a Value Stream Product even if it is not something you can hold in your hand and look at.
It makes the mapping much easier. Hope this helps.
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