iSixSigma

VSM

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  • #54611

    sam123
    Member

    Hi,
    I am wondering how to show the effect of YRT in the lead time? or should I ignore it?
    In banking process, we have about 30% application rejections, these rejections extend a 5 day process up to 10 days (sometimes even more).
    So if a clean process takes 5 days (lead time), and 30% of the time 10 days, in my VSM, should I calculate a weighted lead time like .7×5+.3×10=6.5 dys?

    Thanks

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    #196311

    Chris Seider
    Participant

    You’ve hit on the challenge of a process that varies…oh wait, all processes have variation. The VSM helps scope projects but often variation must be understood to solve a problem.

    Just use the average or median if highly skewed.

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    #196317

    Johnny
    Participant

    The question is: Are the rejections going through a process considered value added to those 30% customers? if that is the case I would treat them in a sub-section of your VSM and assign their own lead-time. If those applications are non-value-added be sure to capture the yield of 70% on the process that rejects them (so you can improve on it later) and I would use your clean process lead-time.

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