Value Stream Mapping SIPOC

I was this week in a workshop where we were introduced to a nice set of lean tools. 5 x why, fishbone and kano model were visited briefly, but most of the time we concentrated on value stream mapping. To share the knowledge I will tell you about it in more detail.

We used SIPOC model. The abbreviation comes from the words

• Suppliers
• Inputs
• Process
• Outputs
• Customer

In this example we were creating a breakfast toast for one of our family members. So customers in this case were husband/wife or child.

Outputs can differ if the different customers (or customer segments) have different needs. In our case the child wanted a toast with jam and special attention that the toast isn't burnt. Spouse wanted a cheese sandwich and all the facilities need to be cleaned. No crumbs.

Inputs are all the things we need in the beginning. In the toast example we need a plate, knife, jam, cheese, butter, bread (two different types) and heat.

All the inputs have a supplier. In this case we were thinking where in our kitchen they are located. Not really who made the knife. But the knife is in drawer, butter and jam in the fridge. Heat is provided by the toaster and plate in the cupboard.

Finally, when these pretty evident things are covered we can start to think about the process. WHAT activities are needed in order to create the desired outcomes? We first make a line of post-it notes that define the activities. We can label the different activities with different colors. In our case we used green for processing, yellow for transportation, blue for storage and red for inspection.

Each WHAT phase is broken down into HOW parts. For example toasting phase can be broken down into activities of setting the temperature, putting the bread into the toaster, setting the toaster on and the bread being heated.

We used heart shaped post-its to mark all the value adding phases. In any process there are activities that add value, activities that are necessary but not value adding and thirdly activities that are waste. By identifying these we can measure how much of our activities actually are value adding compared to the whole time used. This performance indicator is known as Value Added Ratio (VAR) or Process Cycle Efficiency (PCE).

PCE = Customer Value added time / Process Cycle Time

As in our example the spouse explicitly wanted to have no crumbs, we tracked all the parts where crumbs could be produced. These phases were connected with a string. This way we can only concentrate on improving those parts to minimize the amount of crumbs.

Finally it makes sense to identify your customer touchpoints. You can goof off in many parts (well, better not to too much..) but you should make sure that you handle the customer touchpoints with care. Think about what happens before, during and after the touchpoint. How does the customer feel?

There you go. A crash course to value stream mapping using SIPOC method. If you want to learn more, I encourage you to find a lean consultant or simply try it out. I know I will.