Hi

Could somebody please help me on the prcedures of carrying out a VSM in a BPO? Kindly let me know the steps involved, what are the tools or techniques used in each steps, templates, what are the things that need to be kept in mind while doing VSM, pleaseeeeeeee help

If any of you has a link for the same, kindly share it with me

Regards

Shijoy

Hi Shijoy,

For this you need to draw up a detailed process flow chart. Once that is done, that identify VA and NVA activities, then we work on Value Stream out of that and improvise what further can be done. VSM as a tool is a detailed one basic of which comes from detailed process flow only. Then find out what are metrics of various processes - say -

turnaround time,

Average response time

Average idle time

Average up time

etc. etc. These would come from business objectives, customer requirements, internal identification of wastes, QC monitoring data analysis, etc.

Draw these things up and then we interact.

Yogesh Jain

Hi Yogesh,

 Thanks for the heads up, so the example is the current state, any inputs on what they improved, techniques used, what was the result, etc

 

regards

Shijoy

Hi Guys ,

If u explain what type of process u r looking into to do a VSM will tell u how to do that one out , i had completed VSM for BFSI & Manufacturing process with tangible imprvement in takt time and process cycle efficiency

Regards

Mahendra

Hi Mahendra,

 I am planning to do the VSM in an AP process, any help would be great

 

Shijoy

Hi shijoy ,

surely will help u in perfoming the same in AP process can u give me brief of u r process so that i can design a template for u

Regards

Mahendra

 

Hi Shijoy ,

Invoices are scanned in UK and through a server India team receives the invoice - checks for duplicate - key the invoice details to system - and upload the images to system - system does a three way match - matched ones go for payment - unmatched ones go to a different team for resolution - this team contacts UK branches for confirmation or contacts vendor for confirmation - process invoice for payment once the issue is cleared - another team does adjustments in the ledger for the errors - and another team attends to the supplier calls for issues -

This is the process in high level

this is a paperless accounts payable (PAP), however any system in the AP space cannot exactly identify the fields as vendor name, vendor ID, gross amount, GST etc with an accuracy of 100%, Follow up activity you do is an NVA activity as per my understanding of the process so whatever you receive to do the follow up is an input quality error (cause the system is not able to match the fields and to identify the duplicates), so just map as is process

Procedure:-

1) Group a team of 5 ~ 6 persons include SME also

2) Use Collared Post it and Map the process include all the activity irrespective of time frame involved in the activity/task

3) Typically as is mapping an AP process takes 4~6 hrs , break down those activity into Value added , Non Value added , Business Value activity.

4) After AS-IS-MAP , next day take the count of voulme at each activity , number of FTE involved in that Activity , standard time for that activity , Queue time for that activity .

5) After scribing number's , note calculate the process cycle efficiency (PCE)= Value add time / Total time  

6) Yours PCE would be typically 0.75%

7) Develop an Kaizen plan for removal of NVA or optimising the NVA

try these and let me know what is the outcome / or provide me the above said figures

will do the calculation for you

 

then you need to develop Future MAP

Apart from VSM what i think that you can take a project for Mistaken payment as possibilty is quite high that vendors are overpaid or the three way match of Gross Amount , Vendor ID & Invoice number do have some accuracy issues

correct me if wrong

Regards

Mahendra

 

Hi Mahendra,

 I havent started, will let you know once i start the exercise, however, thanks for the heads up

shijoy