Group-13

Sujith Potu Fk-1954

Siju.H.L Fk-2021
Vinay Kumar Fk1883
• Overproduction
• Excess Inventory
• Excess/Unnecessary Travel
• Unnecessary Processing
• Waiting
• Excess Motion
• Defects
• Under-utilized People
1. Precisely specify value by specific product

2. Identify the value stream for each product

3.Make the value flow without interceptions

4. Let the customer pull value from the producer

5. Pursue perfection
 Planning tool to optimize
results by eliminating waste
• Helps visualize process steps and WASTE in the
process.

• View process flow from all perspective.

• Helps “see the whole”

• Helps focus on maximizing overall flow rather than

sub-optimizing specific functions/departments
• Shows the linkage between information and material flow.

• Makes the obstacles in the flow stand out.

• Provides visibility to product/service families.

• Separate maps are drawn for each product/service.

• Groupings based on shared process steps.

• The flowcharts in procedures and quality manual show
how the process should be.

• Process mapping is the detailed mapping of the real

process.

Process maps:

• Bring clarity to complex processes

• Highlight non-value adding activities
• Start the process of thinking about improvements
1. Decide which process going to map and it’s boundaries.

2. Form a multi-disciplinary team with experience of the process steps.

3. Find a room with a large wall space (close to the process if possible)

4. Hang up a roll of paper about 1 metre depth along wall (maps can get very long!)

5. Start at the end of the process and work backwards (this way you are less likely to get
lost)

6. Divide the work amongst the team – no gaps, no duplication.

7. Collect the information and metrics on the process.

8. Use different coloured post-it notes to record each step
and its metrics.

9.Identify problem area and areas for improvement.

10.Use lean tools to design an improved future state.

11.Plan the activities to make the improvements.

12.Improve the process, verify it works and redraw the map.

13.Communicate to relevant people.

14.Continue from step 1 – continuous improvement

1. Start with the customer – information flow.

2. Identify the product or service which is being worked on.

3. Determine the process steps from “cradle to grave”.

4. Determine the “trigger” that initiates action at each

process.

5. Identify the time it takes to perform the task without

delays—”Cycle time”
6. Identify and quantify the time it takes to perform the task
including delays and interruptions – “lead time”
(LT = CT + delays)

7. Investigate the causes of the waste between processes - what

are the “barriers”

8. Calculate total processing time (cycle time) versus total lead

time

9.Do whatever it takes to understand all aspects of the current

state.
Customer/Supplier Inventory Icons:
Icon:

Dedicated Process Shipments Icon:

flow Icon:

Shared Process Icon: Push Arrow Icon:

Data Box Icon: Supermarket Icon:

Workcell Icon: Material Pull Icon:

FIFO Lane Icon: First- Withdrawal Kanban
In-First-Out inventory. Icon :

Safety Stock Icon: Signal Kanban Icon :

External Shipment
Icon: Kanban Post Icon :

Production Control
Icon: Sequenced Pull Icon:

Manual Info Icon : Load Leveling Icon :

Electronic Info Icon : MRP/ERP Icon :

Production Kanban Go See Icon :

Icon :
Kaizen Burst Icon:

Operator Icon :

Other Icon :other useful or potentially useful

information.

Timeline Icon :
 Attribute Data to Collect

 Shipping/Receiving  Work-in-process
schedules inventory
 Pack sizes at each  Overtime per week
process

 Demand rates by process  Process cycle times

(Takt Time)
 Number of product variations at
 Working hours and breaks each step

 Scrap  Batch (lot) sizes

 Inventory Points (location
& size)  Changeover times
 Rework
 How Operations are  Changeover
scheduled  Downtime
frequencies
• Cycle time
• Change over time
• Process reliability (uptime)
• Scrap/Rework/Defect rate
• Number of product variations
• Number of operators
• Production batch sizes
• Working time (minus breaks)
• Pack size
 The Steps

Step 1: Select a Value stream

Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Step 5: Map the Material Flow
Step 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time
Step 8: Detail Off-Line Activities
• Document customer information

• Identify the main processes (i.e., how many process boxes)

• Fill in data boxes, draw inventory triangles, and count inventory

• Document supplier information

• Establish information flow: how does each process know what to

make next?

• Identify where material is being pushed

• Quantify production lead time vs. processing time

STEP: 1

• Draw in Customer and Suppliers data.

Step 1
State
StateStreet
Street
Assembly
Assembly

Michigan Steel 18400 pieces/month

Company -12000- L
- 6400- R

500 ft coils Tray = 20 pieces

Steps 2 & 3

• Draw in process boxes and data.

– Add a shipping box
• Draw in the Inventory triangles and data
Steps 2 & 3
State
StateStreet
Street
Assembly
Assembly

Michigan Steel 18400 pieces/month

Company -12000- L
- 6400- R

500 ft coils Tray = 20 pieces

Ass’y Ass’y
Stamping S. Weld #1 S. Weld #2 Shipping
#1 #2
I I I I I I
1 1600 L 2700 L
Coils 4600 L 1 1100 L 1 1 1200 L 1 Staging
2400 R 850R 1440R
5 days 600R 640R

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
Steps 4 & 5

• Draw in Customer and Suppliers delivery

schedules and method.
Steps 4 & 5
StateStreet
State Street
Assembly
Assembly

Michigan Steel 18400 pieces/month

Company -12000- L
- 6400- R

500 ft coils Tray = 20 pieces

2 shifts
Tues. &
Thurs.
1x Daily

Ass’y Ass’y
Stamping S. Weld #1 S. Weld #2 Shipping
#1 #2
I I I I I I
1 1600 L 2700 L
Coils 4600 L 1 1100 L 1 1 1200 L 1 Staging
2400 R 850R 1440R
5 days 600R 640R

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
Step 6

• Put in production control and schedules

• Draw in Information flows Internal and
external
Step 6 90/60/30 day
forecasts
State
StateStreet
Street
6 week Production Control Assembly
Michigan Steel Assembly
forecast
Company
Daily 18400 pieces/month
Weekly
Order -12000- L
Fax
500 ft coils MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly Schedule Schedule
Weekly Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2
Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 600R 850R 640R 1440R
5 days

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
Step 7

• Material flows between processes

Step 7 90/60/30 day
forecasts
State
StateStreet
Street
6 week Production Control Assembly
Assembly
Michigan Steel
forecast
Company Daily
Order 18400 pieces/month
Weekly
Fax -12000- L
500 ft coils MRP
MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly
WeeklySchedule
Schedule Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2
Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 600R 850R 640R 1440R
5 days

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
Step 7 90/60/30 day
forecasts
State Street
6 week Production Control Assembly
Michigan Steel
forecast
Company Daily 18400 pieces/month
Weekly Order
Fax -12000- L
500 ft coils MRP
MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly
WeeklySchedule
Schedule Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2 Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 600R 850R 640R 1440R
5 days
C/T=1 sec C/T=39 sec
C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m
C/O=10 m C/O = 0 C/O = 0
Uptime Uptime =
Uptime = Uptime = Uptime =
=85% 100%
80% 100% 100%
27,600 27,600
sec. avail. 7.6 sec. avail. 1.8
27,600 2.7
27,600 2
27,600 4.5
5 days
days days
sec. avail. days
sec. avail. days
sec. avail. days PLT = 23.6 days
1 sec 39 sec 46 sec 62 sec 40 sec
PT = 188 sec.
Design considerations:

• Eliminate steps / handoffs

• Merge steps

• Create parallel paths

• Reduce / eliminate batches

• Improve quality
• Create standard work

• Create an organized, visual workplace

• Eliminate unnecessary approvals / authorizations

• Stop performing nonessential (NVA) tasks from the customer’s

point of view

• Co-locate functions based on flow; create teams of cross functional

staff

• Balance work to meet takt time requirements

DEMAND
1) Takt time?

MATERIAL FLOW
2) Where can we use one-piece / continuous flow?
3) Where can we use FIFO lanes?
4) Where do we have to use supermarket (replenishment) pull systems?

INFORMATION FLOW
5) At what single point in the production
chain do we trigger production?
6) How much work do we release & take away?
7) How do we level the production mix?

SUPPORTING IMPROVEMENTS
8) What process improvements are necessary (e.g., uptime, changeover,
cycle-time reduction)?
• The elements for Operating a People
Lean Facility Involvement
Continuous
Improvement Standardization
• Principles and Elements are
Interdependent

• Develops lean thinking leaders

to deliver lean business results

Short
Lead Time Built-In-
Quality
 Definition: Standardization is a dynamic process by which we set standards
of terminology, principles, methods, and processes within our
organization.
Purpose: The purpose of standardization is to stabilize, so as to achieve a
base from which to grow and improve.

o u s World
n tinu ent Class
Standardization Elements Co ovem
r
Imp
 Management by Takt Time Change
 Workplace Organization
 Standardized Work
 Visual Management
Standardization
 Definition: The methods by which quality is built into the process, in a
way that defects are prevented, detected, and countermeasures are
implemented to prevent recurrence.
Purpose: To ensure that defects are not passed to the customer.

The Built-In-Quality Motto

Built-In Quality Elements
Satisfy your Customer. . .
 Product Quality Standards
 Manufacturing Process Validation Accept
Do not Build a Defect!
 In-Process Control & Verification
Ship
 Quality Feedback/Feedforward
 Quality System Management Solve problems through teamwork!
Definition: The movement of product or material in the right quantity, at the right
time, to the right location, with the right equipment, at the lowest possible cost
for both the supplier and the customer.
Purpose: To achieve customer enthusiasm by delivering the customer his/her
product more quickly, while maintaining good quality. Ultimately, our
Company benefits through cost reduction and increased customer loyalty.

 
short lead-time
long lead-time
Short Lead Time Elements
 Temporary Material Storage
 Small Lot Packaging
 Internal Pull/Delivery
 Fixed Period Ordering System
 Controlled External Transportation
 Level Vehicle Order Schedules
 Simple Process Flow
 Supply Chain Management
 Scheduled Shipping/Receiving
Definition: A process based on standardization, whereby results are
achieved, through a series of small improvements.
Purpose: To always advance ahead towards an ever more challenging
target and make progress in Safety, People Involvement, Quality,
Responsiveness, and Cost through the elimination of waste.

The Continuous Improvement Cycle

Improvement
Improvement Standardization

Improvement Standardization
Standardization
Standardization

The diagram above shows how each time an improvement is implemented, it

creates temporary instability.

There will be a short period of instability until new standards are set, and applied.
Only once the situation is truly stable can new improvements be implemented.
 Jack is a CA and maintains a practice in personal, self-employed
Situation: and small business income tax preparation. Jack would like to
take on more corporate clients because of the higher margins.

During the tax season, self-employed returns require long

Problem : hours because of the frequent waits, delays and errors.

Mapped the existing processes and achieved minimum lead

Result : time by implementing the lean techniques in future state.
Tax Season: 8 weeks
40 self-employed clients

Send Reminder: John Print and Collate IRS tax forms: John
P/T = 10 min Technology used: Tax Software (TS)
FTQ = 100% P/T = 15 min
W/T = 1 – 5 days in inbox before form prep
Sort receipts & documents: Jack (3 day average)
P/T = 30 min FTQ = 98%
W/T = 1 week in inbox before sorting
FTQ = 10% Review and sign forms: Jack
P/T = 15 min
Prepare Worksheet: Jack W/T = 3 days in inbox before signing
Technology used: Tax Software (TS) FTQ = 100%
P/T = 60 min
W/T = 3 weeks in the inbox waiting to Mail forms to client: John
prepare worksheet P/T = 10 min
W/T = 1 week due to interruptions W/T = 1 day accumulation before collation
FTQ = 95% and mailing
FTQ = 100%
Confirm deductions: Jack
P/T = 10 min
W/T = 1 week due to phone tag
FTQ = 50%
 Metrics Current From Current Target from
Estimate State Map Future State Map

Process 12 hours
Time (720 Min.)

Lead Time 6 – 8 weeks

First Time
Quality 100%
• Document customer information & need
• Identify main processes
• Select data attributes
• Perform value stream walk and fill in data boxes (how the
process really works)
• Establish how each process knows what to process next (how
work is prioritized) and document information flow
• Calculate process time, wait time, lead time, first time quality,
and any other metrics necessary to evaluate the Value Stream
Jack’s Taxes - Current State

Client
40 clients
 Jack’s Taxes - Current State

Client
40 clients

Send Sort Prepare

Process
Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
documents
TS Steps? TS forms
 Jack’s Taxes - Current State
Client
40 clients

Ta
rd x
t - ca en
ts ts
fo r
ms
os um en

ts
rp c m t oc

en
e
ind Do cu lie

um

deductions
m s& do nt

c
Re t g by

do
ip in 4
ce /1

Clarify
s

ing
s 0
Re i
fm

iss
o
M
y Process Data,
o tif
N Information Flow, and
Send Sort Prepare Process
Confirm Flow Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
IN documents IN IN IN IN
TS TS forms
1 week 3 weeks 3 days 3 days 1 day

John Jack Jack Jack John Jack John

P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%
 Jack’s Taxes - Current State
Client
40 clients

Ta
rd x
t - ca en
ts ts
fo r
ms
os um en

ts
rp c m t oc

en
e
ind Do cu lie

um

deductions
m s& do nt

c
Re t g by

do
ip in 4
ce s /1

Clarify
ing
s 0
Re i
fm

iss
o
M Total Leadtime
y
o tif
N

Send
reminder
IN
Sort
receipts &
documents IN
Prepare
worksheet
and FTQ Confirm
deductions
IN
Print &
Collate
IN
Review &
sign forms
IN
Mail
forms
TS TS forms
1 week 3 weeks 3 days 3 days 1 day

John Jack Jack Jack Johnof P/T

Total Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min
P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week =Total
140 minutes
W/T ---
of W/TW/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98%FTQ 100% FTQ 100%
Total =Lead
7wks,Time
2days
= 7 wks, 2 days, andof140
Product FTQ
P/T 10 min 30 min 60 min 10 min 15 min= 4.7% 15 min 10 min 140 min
min.
W/T ----- 1 week ---- 3 weeks 1 week 1 week 3 days ---- 3 days ---- 1 day ---- 7 wks, 2 days
FTQ 100 % 10 % X 95 % X 50 % X 98 % X 100 % X 100 % 4.7 %
7 wks, 2 days,
Total Lead Time:
140 min
 Metrics Current From Current Target from
Estimate State Map Future State Map

Process
Time 720 Min. 140 Min.

7 Weeks, 2 Days,
Lead Time 6 – 8 weeks
140 Min

First Time
Quality 100% 4.7%
 Client

40 clients
Tax
rd nts ts
os t - ca m e
en
f or
ms
r p cu m s to c
de Do cu nt

ns
in & d o e lien
m t by

deductio
Re p ts in g c um

Clarify
i 4/1
iss
ce d o 0
Re f m n g
o si
ify is
t M
No
Send Sort Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
documents
IN TS IN TS forms IN IN
IN
1 week 3 weeks 3 days 3 days 1 day
John Jack Jack Jack John Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %
7 wks, 2 days,
Total Lead Time:
140 min
 Jack’s Taxes - Current State

Client
40 clients
O
Ta
rd x
t - ca en
ts ts
fo r
ms
os um en C

ts
rp c m t oc

en
e
ind Do cu lie

m
Cng

deductions
s& do nt

cu
m by
Re t

do
ip i 4
ce ss /10

Clarify
g
C Re i
in
fm iss
W o W C
M
ify
MM ot
N

Send Sort Prepare Confirm Print & Review & Mail

reminder receipts & worksheet deductions Collate sign forms forms
P I
IN
P
documents
I
IN
TS P IN
I TS forms
IN
I I
IN

1 week 3 weeks 3 days 3 days 1 day

John Jack Jack Jack John Jack John

P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T ----- 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %
7 wks, 2 days,
Total Lead Time:
140 min
 Future State Questions
Relating to Improving Delivery and Flow

• What are the customer requirements? 

• Where and how will you trigger and sequence work?
• How will you make work flow smoothly?
• How will you establish rhythm to pace the work and surface
problems?
• How will you make the progress and delays of the work
visible?
• What process improvements are necessary to achieve your
Value Stream vision?
 Jack’s Taxes - Current State

Takt Time = Available time / Customer Requirements

Client

n
Fi rdio
co = 40 days / 40 Clients = 1 per day
le 40 clients
Ac

Tax
rd nts ts
os t - ca m e
en
f or
ms
r p cu m s to c
de Do cu nt

ns
in & d o e lien
m t by

deductio
Re p ts in g c um

Clarify
i 4/1
iss
ce d o 0
Re of m in g Stand.
s Work
is
o tify M
N
FIFO
Send Sort XOXO Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
documents
IN TS IN TS forms IN IN
IN
1 week 3 weeks
COMBINE PROCESSES
3 days 3 days 1 day
John Jack Jack John Jack John Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %

Total Lead Time: 7 wks, 2 days,

140 min
 Jack’s Taxes - Current State

Takt Time = Available time / Customer Requirements

Client

n
Fi rdio
co = 40 days / 40 Clients = 1 per day
le 40 clients
Ac

Tax
rd nts ts
os t - ca m e
en
f or
ms
r p cu m s to c
de Do cu nt

ns
in & d o e lien
m t by

deductio
Re p ts in g c um

Clarify
i 4/1
iss
ce d o 0
Re of m in g Stand.
s Work
is
o tify M
N
FIFO
Send Sort XOXO Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
documents
IN TS IN TS forms IN IN
IN
1 week 3 weeks
COMBINE PROCESSES
3 days 3 days 1 day
John Jack Jack John Jack John Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
W/T --- W/T --- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 30 min 60 min 10 min 15 min 15 min 10 min 140 min
W/T 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %

Total Lead Time: 7 wks, 2 days,

140 min
 Jack’s Taxes - Current State

Takt Time = Available time / Customer Requirements

Client

n
Fi rdio
co = 40 days / 40 Clients = 1 per day
le 40 clients
Ac

Tax
rd nts ts
os t - ca m e
en
f or
ms
r p cu m s to c
de Do cu nt

ns
in & d o e lien
m t by

deductio
Re p ts in g c um

Clarify
i 4/1
iss
ce d o 0
Re of m in g Stand.
s Work
is
o tify M
N
FIFO
Send Sort XOXO Prepare Confirm Print & Review & Mail
reminder receipts & worksheet deductions Collate sign forms forms
documents
IN TS IN TS forms IN IN
IN
1 week 3 weeks
COMBINE PROCESSES
3 days 3 days 1 day
John Jack Jack John Jack John Jack John
P/T 10 min P/T 30 min P/T 60 min P/T 10 min P/T 15 min P/T 15 min P/T 10 min
Data entry
W/T --- W/T
Worksheet--- W/T 1 week W/T 1 week W/T --- W/T --- W/T ---
FTQ 100% FTQ 10% FTQ 95% FTQ 50% FTQ 98% FTQ 100% FTQ 100%
training
Reduce process time
to 75 min
P/T 10 min 30 min 60 min Standardize
10 min Work 15 min 15 min 10 min 140 min
W/T 1 week 3 weeks 1 week 1 week 3 days 3 days 1 day 7 wks, 2 days
FTQ 100 % 10 % 95 % 50 % 98 % 100 % 100 % 4.7 %

Total Lead Time: 7 wks, 2 days,

140 min
 Jack’s Taxes Future State

Customer Requirements: Takt Time = Available time / Customer Requirements

•Tax Forms completed accurately
•Finished before filling time = 40 days / 40 Clients = 1 per day
•Lowest possible cost

Client

File 40 clients
o n
o rdi le fo
rm
A cc Fi st
t& io n 1 per day o
lis o rd Over 8 weeks cli
en
k c
hec Ac t
C te
ple
m
Co max 1 day max 1 day

Send XOXO Data entry FIFO Check & Mail forms

+
Reminder print sign forms
IN
IN FS forms
John John Jack John
P/T 10 min P/T 75 min P/T 15 min P/T 10 min
W/T W/T W/T 1 day W/T 1 day
FTQ 100% FTQ 98% FTQ 100% FTQ 100%

P/T 10 min 75 min 15 min 10 min 100 min

W/T 2 days
1 day 1 day
FTQ 100 % 98 % 100 % 100 % 98 %
2 days,
100 min
Measurable Metrics & Performance
Metrics Current From Current Target from
Estimate State Map Future State Map

Process
Time 720 Min. 140 Min. 100 Min.

7 Weeks, 2 Days,
Lead Time 6 – 8 weeks 2 Days,100 Min.
140 Min

First Time
Quality 100% 4.7% 98%
 Summary of Results – Potential Impact

• Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients
without adding work hours! Increased revenue, no more time.

• FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity.

• Turn around time is now well within customer expectations (from 7 weeks and 2 days
down to 2 days). Able to respond to customer needs faster.

• Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on
more complicated returns or on obtaining more higher revenue generating corporate
clients.

• This new Future State now becomes the next Current State (continuous
improvement). Next Jack could investigate further leveling the work he receives in.