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Value Stream Mapping: Welingkar-Exercise

The document describes X's process for preparing tax returns for self-employed clients. It involves X sorting receipts, preparing worksheets, confirming deductions, and signing returns while assistant Y sends reminders, prints forms, and mails returns. The process takes a long time with frequent delays. Improving it could allow X to take on more clients.

Uploaded by

Arjun Vijayakumar
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30 views12 pages

Value Stream Mapping: Welingkar-Exercise

The document describes X's process for preparing tax returns for self-employed clients. It involves X sorting receipts, preparing worksheets, confirming deductions, and signing returns while assistant Y sends reminders, prints forms, and mails returns. The process takes a long time with frequent delays. Improving it could allow X to take on more clients.

Uploaded by

Arjun Vijayakumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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VALUE STREAM MAPPING

WELINGKAR-EXERCISE
X’s Taxes
X maintains a practice in personal, self-employed and small business income tax
preparation. X would like to take on more corporate clients because of the higher
margins. However, during the tax season, self-employed returns require long hours
because of the frequent waits, delays and errors. If X can improve the process for
self-employed clients, he could take on more work during that time of year.

Generally, the sequence of events begins for each client sometime late January with
X’s assistant, Y, sending a reminder to submit their records as soon as possible.
Then, sometime before the first of April, the client must bring in all necessary forms
and receipts. Regular clients drop off or send their box of receipts and tax forms from
various income sources. X sorts the receipts and documents, finding that most of the
time, there is something missing. His next step is to prepare worksheets for the client
in the Tax Software (TS) system. Once X starts filling out the worksheets, he
frequently needs to confirm deductions such as what expenses qualify as business-
related and details regarding retirement or insurance deductions.

Once X has completed the worksheet, his assistant Y actually prints and collates the
TAX forms. For self-employed clients, Y waits until Thursday when he prints all
returns that have accumulated during the week from the TS system. Of course, X
must review and sign each return. Finally, Y completes the process by packaging and
mailing the TAX forms with the necessary attachments to each client.
Tax Season: 8 weeks
40 self-employed clients
Data Set
Send Reminder: Y Print and Collate IRS tax forms: Y
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: X (3 day average)
P/T = 30 min FTQ = 98%
W/T = 1 week in inbox before sorting
FTQ = 10% Review and sign forms: X
P/T = 15 min
Prepare Worksheet: X 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: Y
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: X
P/T = 10 min
W/T = 1 week due to phone tag
FTQ = 50%
Measurable Metrics & Performance
Metric Current From Current Target from Actual
SPQRC Estimate State Map Future State (post
Map implementation)

Process 12 hours
Time (720 Min.)
Lead
Time 6 – 8 weeks
First
Time 100%
Quality

Other(s)
Typical Steps for Current State Mapping
• Document customer information & need
• Identify main processes (in order)
• Select data attributes (Q,R,C - minimum)
• 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 your Value Stream
Process Box
Icons
Customer
MRP
MRP IN
In Box
Technology Used
(Queue) Wait-Time

P/T Electronic Information Flow


W/T Conversation Information Flow
FTQ
Worker Reminder post-card

Data Box Weekly


Schedule Movement of “physical” property

Withdrawal (Pull) Supermarket Iterations


Movement by Push

Kaizen Leveling, Mix First-In


Changeover Lightning XOXO and/or
Burst Volume
FIFO First-Out
Flow
Draw the Current State
Measurable Metrics & Performance
Metric Current From Current Target from Actual
SPQRC Estimate State Map Future State (post
Map implementation)

Process
Time

Lead
Time

First
Time
Quality

Other(s)
Waste Exercise

Participants identify waste on


current state maps.
Future State Mapping
Using the Value Stream Mapping Tool

Scoping the Determine the Value


Value Stream Stream to be improved

Understanding how things


Current State currently operate. This is
drawing the foundation for the
future state.
Future State
Designing a lean flow through
drawing
the application of Lean
principles

Planning and The goal of mapping!


Implementation
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?

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