To create a value stream map for Wise Software Corp (WSC) and compute the process cycle
efficiency, we need to understand the current process steps and their respective times. Here's a
value stream map based on the provided scenario:
1. Create Account Process
Create Account Request (10 min)
Account Approval Wait (avg. 12 hrs)
2. Confirmation Email Process
System Sends Email Confirmation (1 min)
Email in Client's Inbox Wait (avg. 12 hrs)
Client Account Confirmation (1 min)
3. Project Request Process
Client Submits New Project Request (1 hr)
Request Waiting for Account Manager (12 hrs)
Sr Account Manager Assignment (1 min)
Waiting for Account Manager to Review (12 hrs)
Account Manager Contacts Client for Requirements (30 min)
Waiting for Client and Account Manager Meeting (72 hrs)
Client and Account Manager Meeting (4 hrs)
Request in Queue for Documentation (24 hrs)
Account Manager Writes Up Requirements (30 min)
Waiting for Solution Architect (48 hrs)
Solution Architect Feedback (1 hr)
Waiting for Account Manager to Read Feedback (24 hrs)
Account Manager Sets Up Meeting with Client (30 min)
Waiting for Client and Account Manager Meeting (72 hrs)
Client and Account Manager Meeting (1 hr)
Request in Development Queue (30 min)
Project Waiting in Development Queue (120 hrs)
Project Team Completes Development and Assigns to Testing (72 hrs)
Project Waiting in Testing Queue (120 hrs)
Testing and Approval for Release (24 hrs)
Project Waiting for Account Manager to Send to Client (12 hrs)
Account Manager Sends Completed Project to Client (10 min)
Client Uses the Deliverables (0 min)
Now, let's calculate the process cycle efficiency (PCE). PCE is a measure of how efficiently a process
operates and is calculated as the ratio of value-added time to the total lead time.
Value-Added Time: Time spent on activities that directly add value to the product or service.
Total Lead Time: The total time it takes from the client's account creation request to the client using
the deliverables.
In this scenario, value-added time includes activities like creating an account, sending confirmation
emails, client meetings, and development/testing work. Non-value-added time includes waiting
times. Here, we assume that waiting times do not add value to the process.
Let's calculate the value-added time and total lead time:
Value-Added Time:
Create Account Process: 10 min + 1 min = 11 min
Confirmation Email Process: 1 min + 1 min = 2 min
Project Request Process: 30 min + 4 hrs + 30 min + 1 hr + 30 min + 10 min = 6 hrs 50 min =
410 min
Total Lead Time: Sum of all the times in the value stream map.
Total Lead Time = 410 min (Value-Added Time) + Sum of all the waiting times
Now, calculate the Process Cycle Efficiency (PCE):
PCE = Value-Added Time / Total Lead Time
PCE = 423 min / (410 min + Sum of waiting times)
To compute the PCE, you need to calculate the total time spent in waiting for approvals, meetings,
and queues. Once you have those waiting times, you can plug them into the formula to find the PCE.
To improve the process, focus on reducing or eliminating non-value-added activities, such as long
waiting times. Reducing these wait times will increase the PCE and make the process more efficient.
Consider streamlining approval processes, reducing meeting times, and optimizing the development
and testing queues.