Hey everyone, welcome to this lecture. What are value stream maps? As you learned in the previous lecture, value stream mapping is a leading technique used to document analyze and improve the flow of information or materials required to produce a product or service from a customer. The purpose of value stream map is to identify and eliminate waste in a value stream, thereby increasing the efficiency of a given value stream. Value Stream Map reviews the flow of process steps and information from origin to delivery to the customer. It uses a system of symbols to depict various work activities and information flows.

A Value Stream Map extends on a process map. The key difference between the two is that the process map Is the work that should ideally happen on the floor. and the value stream map is the work that actually happens on the floor. For example, in a process map, you will document that a call center associate keeps the customer on hold and researches the information. This is the work that should ideally happen. But it may happen that the associate keeps the customer on hold, and instead of researching the information, gets into a small talk with a beautiful colleague sitting next to him.

Then researches the information. In a value stream map you will observe these process nuances and note the small talk as another activity. Once you have completed the map, you will classify each activity in the map into one of the three categories non value added work or NVA. These are actions that should be eliminated. Essential non value added work such as NVA. These are actions that are wasteful, but essential under current operating procedures and value added work or VA.

These are actions that add value to the customer that the customer pays for. Of course, this small talk example is a non value adding activity unless this talk is related to customers query resolution. After classifying each activity as NVA, E and VA and VA, you add the time taken for each activity. You will then calculate the total time and you will also calculate the total value added time. These calculations give you the process cycle efficiency or PC the purpose Process cycle efficiency is nothing but the value added time divided by the total time. So, if the value added time in a process is 540 seconds and the total time is 1400 seconds, the process cycle efficiency is pi 40 divided by 1400 which gives 38.57%.

This is the process cycle efficiency of this process. After you identify the process cycle efficiency, the value added non value added and essential non value added steps of the assets process, you will evaluate the gaps you will create action plan to eliminate non value adds reduce the time taken for essential non value adds and value added work. after implementing the actions, you will redo the complete value stream map for the future state. The process cycle efficiency for this new future state map should ideally be improved as compared to the Value Stream Map of the as a state.