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The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseValue Stream MappingValue Stream Mapping

Lean Foundations

Continuous Improvement Training

Lean Foundations


The purpose of this module is to present the foundational principles of Waste Identification and

elimination.

Learn the History and Purpose of Value Stream Mapping.

LearningLearning ObjectivesObjectives LearningLearning ObjectivesObjectives

Short HistoryShort HistoryShort HistoryShort History

Origins in Toyota, circa1955 – The way of doing business…

Also called “Material and Information Flow Mapping”

Used by Toyota Motors to show both current and ideal states as part of the lean implementation process

Discussed in “Lean Thinking”Further developed and documented by the Lean Enterprise Institute of Brookline, Mass. “Learning to See”

1996 1998

What is the Value Stream?What is the Value Stream? What is the Value Stream?What is the Value Stream?

Total Value Stream

SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER

All the actions, both value added and non-value added, currently required to bring a product from raw materials to the customer.All the actions, both value added and non-value added, currently required to bring a product from raw materials to the customer.

The Value Stream PerspectiveThe Value Stream PerspectiveThe Value Stream PerspectiveThe Value Stream Perspective

A value stream is all the actions (both value added and non-value added) currently required to bring a product (or transaction) though the main flows essential for every product/ service: from raw material/ (customer need), through all the required steps, then – back to the arms of the customer.

Taking a value stream perspective means working on the big picture, not just individual processes, and improving the whole, not just optimizing the parts.

TOTAL VALUE STREAM

SUPPLY

PARTNERS YOUR PLANT OF COMPANY CUSTOMER TO END USER

Value Stream MappingValue Stream MappingValue Stream MappingValue Stream Mapping

• Let’s look at an EXAMPLE

7

WIP 870

QTIME72H

MELT903M

INSPCHEM

HoldFurnace

Cast903

INSPPROFILE

WIP 696QTIME

P/T 6N

LOT 75K

P/T 8HWIP 8 COILS

120K

P/T 3 HR15KWIP

STORE STAGEBREAKDOWN

911

REC STAGE

LEAD 2231.1

VA 210.17%SCRAP

WIP746KQTIME8 1OK

LOT 1 COILTIME .1WIP 15K

WIP108K8HRQ/T8

DOWNTIME 15%

DOWNTIME 15.5%

8 6 8 3

Value Stream Map – Value Stream Map – OperationalOperational exampleexampleValue Stream Map – Value Stream Map – OperationalOperational exampleexample

1. Map major process steps

2. I.D. Value (green/ yellow) / Non-value (red)

3. Capture all times, quantities

4. Prioritize areas to improve

X SHIPPED PER DAY

850K

1.870 WIP BEING WORKED

4.276 WIP BEING STORED

Customer

MACHINING

C/T=1568 mC/O=50 min.

2 SHIFTSOPER. 48

Daily

FIFO

Prod’n Cont.

Supplier OrdersOrders

IRREGULAR

ASSEMBLY

C/T=936 mC/O=0 min.

1 SHIFTOPER. 24

TEST

C/T=60 mC/O=30 min.1 SHIFTS

OPER. 5

FINISH

C/T=210 mC/O=0 min.

1 SHIFTSOPER. 6

DISPATCH

C/T=30 mC/O=0 min.

1 SHIFTSOPER. 2

FIFOFIFO

OXOX

1 DAY

2 DAYS 2 DAYS

900 MINS 900 MINS 240 MINS 150 MINS 120 MINS

1568 MINS 936 MINS 60 MINS 210 MINS 30 MINS

4 WEEKSOUT

12 WEEK FORECAST

< 1/2 DAY <2 ENGINES <2 ENGINES

PITCH = 60MINUTES

LT<3 1/2 DAYS

MANUFACTURING LEADTIME = 3 1/2 DAYSCUSTOMER LEADTIME = 2 WEEKS

Value Stream Map – Value Stream Map – Big PictureBig Picture exampleexampleValue Stream Map – Value Stream Map – Big PictureBig Picture exampleexample

Why do Value Stream mapping?Why do Value Stream mapping?Why do Value Stream mapping?Why do Value Stream mapping?

• To understand the current situation - The “big picture” point of view (To use as a tool to

improve the whole vs. optimizing the parts…)

• Exposes sources of waste - not just the waste

• Shows linkage between information flow and material flow

• Forms the blueprint to identify areas of improvement

What does Value Stream Map do for us?What does Value Stream Map do for us?What does Value Stream Map do for us?What does Value Stream Map do for us?

• It helps visualize more than just the single-process level, i.e. assembly, welding, etc., in production. You can see the whole flow.

• It helps to see more than waste. Mapping helps to see the sources of waste in your value stream.

• It provides a common language for talking about manufacturing (and transactional) processes.

• It makes decisions about the flow apparent, so you can discuss them. Otherwise, many details and decisions in your area just happen by default.

• By adding data, it ties together lean concepts and six sigma techniques, which helps you avoid “pet projects”.

Value Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential Tool

• It forms the basis of an implementation plan. By helping you design how the whole door-to-door flow should operate - a missing piece in so many lean efforts - value stream maps become a blueprint for improvement. Imagine trying to build a house without a blueprint!

• It shows the linkage between the information flow and the material flow. No other tool does this.

Value Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential Tool

• It enhances the quantitative tools and layout diagrams that produce a tally of non-value added steps, lead time, distance traveled, the amount of inventory, and so on.

• Value stream mapping is a qualitative tool by which you describe in detail how your facility should operate in order to create flow. Numbers are good for creating a sense of urgency or as before/ after measures. Value stream mapping is good for describing what you are actually going to do to affect those numbers.


• Let’s look at an EXAMPLE of Process Mapping

• A good start, but no data, no symbols, no color coding etc

Books: Learning to See, Lean Thinking14

Process MapProcess Map w/ Analysis w/ Analysis - exampleexample

SteelRecd

PartsStocked

Components machined

Plate Steelburned

StructuralSteel Sawed

Steelstocked

Weld Shop Paint Shop

Elect/Mech PartsRecd

Blasting BoothSand Bast

Mech parts to Mech Assembly

Staging

Partsstocked

Inspection

MechAssembly

Elect parts to Elect Assembly

Staging

ElectAssembly

Inspection Run Test Crating ShippingWarehouseShip to

Customer

Steel Fabrication Process (Current State) Can you identify areas for improvement?


SteelRecd

Components machined

Plate Steelburned

StructuralSteel Sawed

Weld Shop Paint Shop

Elect/Mech PartsRecd

Blasting BoothSand Bast

All parts to AssemblyStaging

Inspection

Mech/ElectAssembly

Inspection &Run Test

Ship toCustomer

Steel Fabrication Process (Future State)

Shipping &Crating

Process Map w/ AnalysisProcess Map w/ Analysis - exampleexample

Impact of “Immediate Opportunities”Impact of “Immediate Opportunities”Impact of “Immediate Opportunities”Impact of “Immediate Opportunities”

The Process Map good place to start process analysis activities:

• Safety issues resolved first !

• Visible results in areas Kaizened

• “Low hanging fruit” addressed

Product flows more smoothlythrough that part of the stream

Many pockets of success …

But –Process Maps have limited impact on the total VALUE STREAM

Process Map (functional)Process Map (functional)

Product Family or Main Process/ Information Flow

(door to door)

Product Family or Main Process/ Information Flow

(door to door)

Many products/ information flows share the Many products/ information flows share the same major stepssame major stepsMany products/ information flows share the Many products/ information flows share the same major stepssame major steps

“Value Stream”

Operational Level (SIPOC)Operational Level (SIPOC)

Material and Information FlowsMaterial and Information FlowsMaterial and Information FlowsMaterial and Information Flows

In Process Analysis, the information flow (paper) is treated with just as much importance as the material flow.

Focus on one product family

or “major line”

or

Administrative Procedure.

Routing Standardization via simplified XY MatrixRouting Standardization via simplified XY Matrix

Can we identify “Part/ Product Families” ?Can we identify “Part/ Product Families” ?

Routing Standardization via simplified XY MatrixRouting Standardization via simplified XY Matrix

Can we identify “Part/ Product Families” ?Can we identify “Part/ Product Families” ?

1 2 3 4 5 6 7 8 9

A X X X X X

B X X X X X X

C X X X X X X

D X X X X X

E X X X X X

F X X X X X

G X X X X X

Assembly Steps & Equipment

PR

OD

UC

TS

A Product Family

Production Systembased on Customer pull rate

Just-in-Time (JIT)

Making Products at the Right Time Based on When They’re Sold

Autonomation (Jidoka)

Stop at Every Abnormality

Leveled Production

People

Equipment

Information

Engineering

Raw Material

Wip / Sub Assy’s

Finished Product

Document flow of information and material !

What will be seen?What will be seen?What will be seen?What will be seen?

Value Stream Mapping (VSM)Value Stream Mapping (VSM) builds on Process Mappingbuilds on Process MappingValue Stream Mapping (VSM)Value Stream Mapping (VSM) builds on Process Mappingbuilds on Process Mapping

Quality

Speed

Safety


• Let’s look at an EXAMPLE with data, color codes etc

Supplier

Prep Mach

Assy

Insp

ShipStage Insp Store

C/T 15 minBatch 12Req 450 pcs

Q/T 480WIP150

Dist 285”8 per day

Q/T 60 min50 pcs

C/T 1 minReq 450

C/T 8 minBatch 6

Dist 30”8 per day

Q/T 60 min50 pcs

C/T 5 minReq 450Oper 5

C/T 5 minReq 450Oper 2.5



Q/T 480WIP150

C/T 85 min10 Orders

Store

Customer

StageStore

Rec 90001 deliver each month

(Current State)

Move Move

Move Move

Value Stream Map - Value Stream Map - exampleexampleValue Stream Map - Value Stream Map - exampleexample

Prep

C/T 15 minBatch 12Req 450 pcs

Mach

C/T 1 minReq 450

Assy

C/T 5 minReq 450Oper 5

Ship

C/T 75 min10 Orders

Kan

ban

Kan

ban

15 pc10 Replin

Store orders3 Day ahead of shipping

Supplier

Kan

ban

Customer

Supplier Delivers DailyMaintains 475 in Kanban

35 Pcs25 Replin

(Future State)

Value Stream Map - Value Stream Map - exampleexampleValue Stream Map - Value Stream Map - exampleexample

Value Stream MappingValue Stream MappingBest PracticesBest Practices

• Always map in pencil - rough out 1st, clean later.• Start at the customer and work backwards.• Don’t be too detailed at first, list major process steps.• Walk the actual material and information flows yourself.• Start with a quick walk, to get a feel for the flow and sequence then, go back and talk to the right people for each step. (Don’t forget second and third shifts)

Don’t map the organization. Map the flows through the organization.Don’t map the organization. Map the flows through the organization.

Value Stream MappingValue Stream MappingBest PracticesBest Practices

• Color Code the operations. (Red, Yellow, Green)• Add cycle time, wait time, travel time, quantities, yields, inventory, and number of machines/ operators required.• Always collect ‘current-state’ information while waking along the actual pathways of material and information flows.• Map current and future state. (With Timelines and Target Dates)• Involve the Management team totally.

Don’t map the organization. Map the flows through the organization.Don’t map the organization. Map the flows through the organization.

Value Stream Mapping: ApplicationValue Stream Mapping: ApplicationValue Stream Mapping: ApplicationValue Stream Mapping: Application

Deliverables: Map your current process On completed Value Stream Map, include:

– Color Code (all Value added operations vs. Non-value added operations)

– Document process and cycle times, distances and units (as best as possible)

Develop a “Future State” Map (if time permits) Provide a prioritized list of potential opportunities

for improvement … i.e. – 7 wastes tagged by Safety, Quality or Speed of Execution (SQS categories)


Value Stream Symbols Value Stream Symbols and Definitionsand Definitions

Addendum

Value Stream Symbols Value Stream Symbols and Definitionsand Definitions

Addendum


Manufacturing Process

Process Data Box

I

Truck Shipment

Inventory

Material Icons Represents Notes

Outside Sources

One box equals an area of continuousflow. All processes should be labeled.Box also used to identify departmentssuch as production control.

Used to show customers, suppliersand outside manufacturing processes.

WELDING

ABCCOMPANY

C/T=120 sec.C/O=22 min.

3 SHIFTS

3% SCRAPW/T=20 hrs Used to record information concerning

a manufacturing process, department,etc.

Count and time should be noted.225 pieces 1.5 days

Tuesday+ Thurs Note the frequency of shipments.


Material Icons Represents Notes

FIFO

Air Shipment

Movement of prod’nmaterial by PUSH

Movement of finishedgoods to the customer

Supermarket

Physical pull

Transfer of controlledquantities of material between processes in afirst in first out seq.

Create rail or other icons as needed.

Identifies material movements that arepushed by producer, not pulled by the customer ( the following process ).

Also shows movement of raw materialand components from suppliers ifthey are not pushed.

Pull of materials from a supermarket.

Indicates a device to limit quantityand ensure FIFO flow of materialbetween processes.


Information Icons Represents Notes

Manual flow ofinformation

Electronic flow ofinformation

For example: production schedule shipping schedule

For example: EDI, Fax, etc.

OXOX Load leveling

Sequence-Pull Ball

Tool to level the volume and mixof Kanban over a specific periodof time.

Gives permission to produce apredetermined type and quantity.

WeeklySchedule

Information Describes an information flow.


Information Icons Represents Notes

20 Production Kanban

Withdrawal Kanban

Signal Kanban

Kanban post

Tells a process how many of whatcan be produced and gives permissionto do so.

Production instruction that ordersproduction from a batch process,eg: stamping.

Place where Kanban are collectedand held for conveyance .

Tells a process how many of whatcan be withdrawn and gives permissionto do so.


LatheChangeover

General Icons Represents Notes

Kaizen lightning burst

Buffer or safety stock

Highlights critical improvement needsat specific processes. Can be used toplan Kaizen events.

“Buffer” or “Safety Stock” must benoted.

The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseValue Stream MappingValue Stream Mapping

Lean Foundations


Lean Foundations


Download - The Lean Enterprise Value Stream Mapping Lean Foundations Continuous Improvement Training Lean Foundations Continuous Improvement Training

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