value stream mapping

PowerPoint Presentation

What is Value Stream Mapping? Key component of Value Stream Management

Popularized by Mike Rother and John Shook in their book Learning to See: Value Stream Mapping to Create Value and Eliminate Muda, 2003, Lean Enterprise Institute

Simple pencil-and-paper tool which documents flow of material and information within a product family

Current State Map highlights opportunities to reduce waste through the application of lean production principles

Waste minimization activities are addressed through Kaizen Proposal (Continuous Improvement Plan)

This results in the Future State Map which depicts the optimized process

1/21/2017Ronald Morgan Shewchuk1

Operational Excellence

Value Stream MappingWhy is Value Stream Mapping Important?

Lean ManufacturingInfrastructure

Six SigmaThe House of QualityCustomer SatisfactionMarket LeadershipOur People

Our Technology

Our Shareholders

Our Customers

Our CommunityWaste MinimizationVOCStandardized Work5S+SafetyTPMSMEDPull SystemFlowValue StreamPoka-yokeVariation MinimizationDMAICProcess MapC&E DiagramMSASPCANOVAFMEADOEControl PlanValue Stream Management is a Key Component of the Lean Six Sigma Tool Kit1/21/2017Ronald Morgan Shewchuk2



Value Stream MappingLean Six Sigma Tool Kit



Value Stream MappingIs Value Stream Mapping Right for You?

My process is complex with multiple material and information hand-offs. It seems like there are lots of delays. Can Value Stream Mapping help me?

Yes it sounds like you are a good candidate for Value Stream Mapping.1/21/2017Ronald Morgan Shewchuk4



Value Stream Mapping

DefinitionsValue Stream: All the actions involved in bringing a product or group of products from raw material to finished goods accepted by a customer.

Value-Added Time: The process time required to transform the product in a way that the customer is willing to pay for (eg the residence time of an oven in a bakery).

Non Value-Added Time: The process time spent waiting in between value-added unit operations (eg the time a finished good spends in bulk inventory before filling into shipping containers).

Cycle Time (Manufacturing): The residence time of the unit operation (continuous process) or the batch time of the unit operation (non-continuous process) or the time it takes an operator to go through all of their work elements before repeating them.

Cycle Time (Service): The time required to complete a task assuming 100% devotion to the task completion.1/21/2017Ronald Morgan Shewchuk5


Value Stream MappingLead Time (Manufacturing): The time it takes for one piece or one pound of material to move all the way through the process or value stream from start to finish. Consider a pound of material being tagged at the front of the process and then measuring the time for the tagged pound to appear at the end of the process.Lead Time (Service): The actual average time required to complete a task recognizing that personnel cannot devote 100% of their time to a single task completion.Change Over Time: The time required to change a unit operation from manufacturing one product at target yield to manufacturing a different product at target yield.Available Time: Total production time per day minus planned downtime.Up Time: Available Time minus un-planned down time divided by Available Time expressed as a percent. Same as process reliability.Takt Time: Synchronizes production pace to match the pace of sales. Calculated by dividing Available Time per day by Customer Demand per day.

1/21/2017Ronald Morgan Shewchuk6Definitions



Value Stream MappingCalculation Examples

Customer Demand = 100 units/wk = 20 units/day

Operation 1 to Operation 2 Lead Time = Inventory Qty/Daily Customer Demand= 230 units/20 units per day= 11.5 days

Operation 2 Takt Time = Available working time per day/Daily Customer Demand= 22 hr per day/20 units per day= 1.1 hr1/21/2017Ronald Morgan Shewchuk7



Value Stream MappingLean Production PrinciplesIdentify what is of value to the customerMap the current state value streamIdentify opportunities for Lean Waste reductionAct to reduce Lean WastesIdentify new improvement opportunitiesLean Production means one piece flow pulled by customer demand1/21/2017Ronald Morgan Shewchuk8LeanProduction



Value Stream MappingVoice of the Customer1/21/2017Ronald Morgan Shewchuk9Value is defined by the customer. A preliminary step to starting the current state value stream map is to understand the needs of your customer. This could be an internal customer such as a department which receives your work product, or an external customer, the one paying the bills. In either case it is essential for you to define the product quality characteristics, performance requirements, service expectations, etc. which are important to the customer. This is called the Voice of the Customer. The best way for you to understand customer requirements of your product and/or service is to go see them. Observe how the product or service is being utilized within the customers operation. Ask them what their top three frustrations with your product are. Dont make the bold assumption that you know what should be important to the customer. The customer defines the quality and service characteristics which are important. The information that you glean from your observations and simple questions can totally change the focus of your process improvement and ultimately lead to improved levels of satisfaction by both customer and supplier.



Value Stream MappingThe Hallmark of Lean ProductionThe hallmark of Lean Production is the reduction of wasteTaiichi Ohno of Toyota identified the following seven sources of waste1. Mistakes/ Defects Errors requiring correction2. Over Production Items not immediately needed3. Over Processing Steps not actually needed4. Transportation Movement of materials not adding value5. Motion Unnecessary movement of equipment and/or people6. Inventory Work In Process and finished goods excess7. Waiting Production delays

These are the things you will want to identify and document during your Value Stream Mapping walk-through1/21/2017Ronald Morgan Shewchuk10



Value Stream MappingValue Stream Mapping Step 1

Select a Product FamilyA product family is a group of products which pass through similar processing steps and over common equipmentThe product family defines the scope of the Value Stream MapThe following example matrix is a useful way to identify product families

Product Family




Value Stream MappingValue Stream Mapping Step 2Select a Value Stream LeaderValue Stream Leader has the responsibility for understanding a product familys value stream and improving itValue Stream Leader RequirementsHands-on person with the capability to make change happen across functional and departmental boundariesLeads the creation of the current-state and future-state value stream maps and the implementation plan for getting from the present to the future stateMonitors all aspects of implementationWalks and checks the flow of the value stream daily or weeklyMakes implementation a top priorityMaintains, updates and communicates the Kaizen Improvement Plan




Value Stream MappingValue Stream Mapping Step 3Select the Value Stream TeamOne representative from each functional area of the processHave intimate process knowledgeStake-holders within the process, ie they will benefit from the implementation of the kaizen improvement planOpen to new ideasGood communicators especially with shop floor OperatorsNo more than six (6) members per team




Value Stream MappingValue Stream Mapping Step 4Walk the Process BackwardsBegin at the most downstream operation (typically shipping)Introduce yourself and the value stream mapping team to the OperatorsExplain your objectivesAsk which parts of the process are particularly frustrating to the OperatorsAsk if they have any recommendations for improvementMeasure and record process attribute data per the next slideNote the mechanisms of information flow both electronic and hardcopyRecord any opportunities for waste minimization through Lean Manufacturing principles




Value Stream MappingProcess Attributes

The Following Template May Be Used for Process Data Collection




Value Stream MappingValue Stream Mapping TipsGuidance for the Value Stream Leader...Always collect current-state information while walking along the actual pathways of material and information flows yourselfBegin with a quick walk along the entire door-to-door value streamBegin at the shipping end and work upstreamBring your stopwatch and do not rely on standard times or information that you do not personally obtainMap the whole value stream yourself with input from team members and operations personnelUse your team observations to supplement and complement your ownThis will ensure that nothing gets missed

Genchi Genbutsu: Go and See with your own eyes!




Value Stream MappingValue Stream Mapping Step 5 Draw the Current State


Adapted from: Rother, M. & Shook, J., Learning to See: Value-Stream Mapping to Create Value and Eliminate Muda, Version 1.3, 2003, Lean Enterprise Institute, Cambridge, MA, pp 32-33.




Value Stream Map Template





Value Stream Mapping Step 6

Define Lean Metrics and TargetsTotal Lead Time, Total Cycle Time, Total Inventory Value are typical Lean MetricsAlternative Lean Metrics could be Operational Asset Utilization, Yield, Safety Incident Rate, Unscheduled Downtime, Total Change Over Time, Number of Customer Complaints, Inventory Turns/Month, On-Time Delivery Rate, etc.Base = Current State, Proposed = Target after implementation of Kaizen Improvement PlanFill in lower left hand corner of Value Stream Map template





Value Stream Mapping Step 7 Create Kaizen Improvement PlanBased upon the opportunities for improvement identified on the Current State Value Stream Map create a Kaizen (Continuous Improvement) PlanEach improvement task must have a unique item #, date observed, description of the waste, action to address the waste, assignment to a single person responsible for the improvement, current status of the item, target completion date and actual completion dateSee next slide for Continuous Improvement Plan templateFill in lower right hand corner of value stream map template with top 5 items of the Continuous Improvement Plan





Value Stream Mapping Step 7 Continuous Improvement Plan Template

Living and breathing document which tracks your teams continuous improvement efforts1/21/2017Ronald Morgan Shewchuk21



Value Stream MappingValue Stream Mapping Step 7 Continuous Improvement Plan Example




Value Stream MappingValue Stream Mapping Step 8Use DMAIC Process to Facilitate Continuous Improvement Plan




Value Stream MappingValue Stream Mapping Step 9 Draw the Future State


Adapted from: Rother, M. & Shook, J., Learning to See: Value-Stream Mapping to Create Value and Eliminate Muda, Version 1.3, 2003, Lean Enterprise Institute, Cambridge, MA, pp 78-79.



Value Stream MappingValue Stream Mapping Summary




Value Stream Mapping1/21/2017Ronald Morgan Shewchuk26Case Study:ABC Molding Co. is a manufacturer of gear assemblies in the northeastern United States. A typical gear assembly consists of four plastic gears and six stamped metal parts fixtured within an ultrasonically welded plastic housing. ABC Molding produces more than eighty different varieties of gear assemblies.ABC Molding's largest customer is the Precision Motor Co. also located in the northeastern United States. In a typical month, Precision will order 25,000 gear assemblies. Precision and ABC have had a long history together and their businesses have enjoyed consistent growth. Precision has difficulty to forecast their customer demand. They provide 30 day product/volume forecasts to ABC by email but they are not worth the paper they are printed on. Weekly purchase orders are issued to ABC electronically but they are frequently revised and sometimes canceled. ABC customer service considers it bad business to reject an order and thus accepts every order from Precision even if it will result in a production run interruption and/or weekend overtime.ABC purchases a special grade of spring steel with superior anti-corrosive properties from the Brazilian Steel Co. It is the finest specialty steel available but the lead times are rather long - the combination of ocean freight, customs clearance and truck freight is typically 30 days. ABC provides a three month forecast to the Brazilian Steel Co. based upon historical customer demand and releases monthly purchase orders electronically. Plastic pellets used for gear extrusion are purchased from the Minnesota Polymer Co. Monthly purchase orders are transmitted electronically and deliveries arrive once per month. Chemicals used for cleaning the coil steel are purchased locally from the New Jersey Chemical Co. Releases against an annual blanket order are transmitted electronically and delivered weekly from the New Jersey Chemical Co. to ABC.The production group at ABC consists of sixteen Operators and two Production Supervisors. Work time is one or two shifts per day (depending on the process), 8 hrs/shift, 30 minute lunch and two ten-minute breaks. The plant operates on a Monday through Friday schedule. Overtime work is typically scheduled for Saturdays which of late seems more like the norm rather than the exception. They are a close-knit group with long tenure. The most senior of the group is Joe. He operates the coil cleaning process and the 20 ton stamping press (nicknamed the beast). The stamping press is difficult to change over to other products and frequently goes down resulting in extended periods of downtime. Somehow Joe always gets it running though. Due to the poor reliability of the stamping press and the unpredictability of Precision's ordering pattern multiple stamped components must be held in inventory. The coil clean and stamping process operates for one shift per day. Since it is an automated process, Joe does not need to shut it down when he goes on break or to lunch.



Value Stream Mapping1/21/2017Ronald Morgan Shewchuk27Case Study:The metal subassembly process works 2 shifts per day and is a manual operation staffed with two Operators. Cycle time per part is approximately 80 seconds and change over between models takes about 15 minutes. Quality control checks have found this part of the process to be prone to assembly errors.The plastic gear extrusion process is automated and uses a four cavity extrusion tool. One Operator works on each of the 2 shifts per day. Operators need not shut the equipment down during their lunch or breaks. Cycle time is approximately 45 seconds per extrusion. Since change over and start-up routinely take 2 hours a rather large collection of pre-extruded gears is held in inventory.The plastic/metal final assembly process is manual, works 2 shifts per day with one Operator per shift. Cycle time is approximately 85 seconds per part. A large portion of this time is spent collecting the necessary components for the final assembly. Change over time between models is typically 20 minutes.The ultrasonic welding process is rather new and utilizes state of the art welding technology. Consequently, this process has the highest uptime at 97%. Cycle time is 35 seconds per gear assembly with change over time of 30 minutes between models. The ultrasonic welder is a semi-automated process working two shifts per day with one Operator per shift. Due to the high reliability of this process and the relatively low cycle time it is common for this part of the process to be starved for product. The Operators use their time constructively, however, by assisting other Operators when this occurs.The labeling and packaging process is manual, works 2 shifts per day with one Operator per shift. Cycle time is approximately 15 seconds per gear assembly with change over time between models of 10 minutes. The ink-jet system used for product bar coding frequently gets clogged but Operators have learned how to purge the system and unclog the nozzles. Operators maintain the label data file and generate thermal transfer labels on demand. Therehave been customer complaints about label and packaging errors in the past. When Operators get caught up with their work they help out in the warehouse and shipping department getting pallets ready for shipment to customers.The shipping department is staffed by one Operator working one shift per day. Customer shipments are made by truck every Monday, Wednesday and Friday. There are over 18,000 gear assemblies held in finished goods inventory. It is generally felt that this is the bare minimum required to accommodate changes to Precision's weekly purchase order.



Value Stream Mapping1/21/2017Ronald Morgan Shewchuk28

ABC Molding Current State Data SetData Summary



Value Stream Mapping1/21/2017Ronald Morgan Shewchuk29ABC Molding Current State Value Stream Map



Value Stream Mapping1/21/2017Ronald Morgan Shewchuk30ABC Molding Kaizen Improvement Plan



Value Stream Mapping1/21/2017Ronald Morgan Shewchuk31

ABC Molding Future State Value Stream Map



Value Stream MappingReference Materials

Rother, M. and Shook, J., Learning to See: Value-Stream Mapping to Create Value and Eliminate Muda, Version 1.3, 2003, Lean Enterprise Institute, Cambridge, MALearning to See

Tapping, D., Luyster, T., Shuker, L., Value Stream Management: Eight Steps to Planning, Mapping, and Sustaining Lean Improvements, 2002, Productivity Press, New York, NYLean Manufacturing | Productivity Press | Lean books| Lean Production | 5S | Six sigma | Toyota Production System

Dennis, P., Lean Production Simplified: A Plain-Language Guide to the Worlds Most Powerful Production System, 2007, Productivity Press, New York, NYLean Manufacturing | Productivity Press | Lean books| Lean Production | 5S | Six sigma | Toyota Production System1/21/2017Ronald Morgan Shewchuk32




value stream mapping

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