Engineering

Management
Learning to See Parts IV, V
A Value Stream Mapping Workshop
Mike Rother & John Shook
Lean Enterprise Institute
MSE507
Lean Manufacturing
Value Stream Mapping
Workshop Goals
! To understand the complete value stream
! To introduce Value Stream Mapping (VSM)
! To draw a current state map
Learn the mapping concepts and icons
! To be able to design an improved value stream
Develop the ability to see the flow of a value stream
! To draw a future state map
Learn the mapping concepts and icons
Value Stream Mapping
Topics
Topic Page
Overview
The Process (Steps 1-3)
The Process (Step 4 Case Study)
The Process (Step 5)
The Process (Step 6) 4
The Process (Step 6 Acme Stamping Case Study) 35
The Process (Steps 7-9) 45
The Process (Step 10) 52
Conclusions 54
Value Stream Step 6
Draw the Future State Map
THE PURPOSE:
! Highlight sources of waste
! Eliminate them
! In a short period of time.
THE GOAL: To build a chain of production where the individual
processes are linked to the customer(s) either by continuous flow
(the best) or pull and each process gets as close as possible to
producing only what the customer(s) need when they need it.

What can we do with what we have?
Value Stream Map - Current State
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Competitive LT = 3 days
Takt Time = 18.2 min
Customer Data
On-Time Delivery
Demand = 45/day
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Raw = 5 days
WIP = 12.1 days
FG = 6.5 days
Inventory
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Touch Time = 89 min
Flow of Value
Lead Time
Lead Time = 23.6 days
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
CT (67) > Takt Time (18)
Constraints
OTD, Lead Time
Max Wip = 7.6 days
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
CO = 23 min
CO = Changeover
Setup Times
OP Margin, Lead Time
CO = 1 hour
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Maintenance
OTD, Lead Time
Uptime = 70%
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
Quality FTY = 67%
Customer

Demand = 45 per day
2 shifts
Stamping
342

CT=1sec
Co=1 hr.
Uptime=85%
S. Weld # 1



CT=3 min
Co=10 min.
Uptime=70%

I
I
I
I
Coils
5 days

CT= 15 min
Co=0 min.
Uptime=100%
2 shifts

CT= 67 min
Co= 23 min
FTY = 67%
2 shifts
Shipping
I
I
81
202
122
Assembly Test
90
1X
Daily
90/60/30 day
Forecasts
Order Entry
Production
Control



MRP
6 WEEK
Forecast
Suppliers
WEEKLY SCHEDULE
Lead Time - 34 Days
5 days
1 sec
7.6 days
3 min
1.8 days
15 min
2.7 days
67 min
4.5 days
4 min
2 days
Lead Time
=23.6 days
1 shift 1 shift

CT= 4 min
Co=0
Uptime=100%
2 shifts
Competitive Lead Time
= 3 Days
Takt Time
= 18.2 Minutes
Orders/day
= 36
Queue
= 1.5 Days
Touch Time
= 89 min
What is the pitch time?
Flow of Value
OTD, Lead Time
Who is setting the pace?
The Office
! Office functions support many shop floor value streams -
purchasing, payroll
! The rate of customer demand is often hard to see
! Inventory can be forms, paperwork, in-baskets, out-baskets,
voicemail, email
! Cycles of activity often are random - little standard work
! Confusion about who the customer is and what is value
The Office
HOWEVER, THE
OBJECTIVE IS TO
ELIMINATE WASTE!
The Office Current State
! Define boundaries of your value stream
! There has to be a product or service to follow - like a
purchase order or payroll document - otherwise use a normal
flowchart (LEI)
The Office Current State
! What capability do you provide?
! Is the demand stable?
If not, what is the range ?
! What is the customers expectation of performance?
Constructing Office Current State
! Waiting should be recorded if there is no apparent end takt
time and the next process is far away
! Use Cycle Time of customer process to understand total lead
time
I
Outbox
1 Day
w
Waiting
1/2 Day at
meeting
I
Inbox
1 Day
Constructing Office Current State
State Street
Assembly
Customer
Make notes where you see
obvious Waste on the Map
Poor workplace
Organization
Re-enter Data:
Legacy System
Duplication:
Many Signatures
Paper Form Rework:
Incomplete Data
State Street
Assembly
Supplier
1 sales Rep
State Street
Assembly
Michigan Steel
Company
Customer
Customer
Central
database
Engineering
database
I
Outbox
2 files
1 Day
w
Waiting
1/2 Day at
meeting
I
Inbox
2 files
1 Day
I
Outbox
3 files
1 Day
w
Waiting
1/2 Day
Customer
I
Inbox
10 files
1 Day
I
Outbox
4 files
1 Day
w
Waiting
I
Inbox
2 files
1 Day
w
Waiting
1/2 Day
Purchasing
quote
I
Inbox
7 files
1 Day
Clarify
1 Day
I
Email /
voicemail
W
Meeting
3 hours
4 Estimates
.5 hours
Total 10 Days
Total CT 8 hrs 20 min
60 min 3 hrs 20 min 4 hrs 10 min
.5 hr 3 hr 1 Day .5 Day 1 Day 1 Day .5 Day 1 Day .5 Day 1 Day 1 Day 1 Day 1 Day

Order
Receipt

Manf.
Eng.

Eng.

Review

Quote
Prep
BOM
Validation
1 Sales Rep 1 Eng. 1 Eng. 1 sales Rep
Email
Quote
Design
Log file
Phone
Clarification
Email -
Clarification
EmailO
rder
Phone
Clarification
Phone
Clarification
Constructing Office Current State
Product Family
Plan &
Implementation
Current State
Drawing
Future State
Drawing
Value Stream Step 6
Draw the Future State Map
Designing a Lean Flow
You always need a future state
Use pencil, update regularly, 70%
correct is fine
Basis for work plan - blueprint
Begin by drawing a current state
1st iteration assumes using existing
equipment, only minor purchases
Use the list of future state questions
Value Stream Step 6
Future State Map - Icons
Value Stream Step 6
Future State Map Question Summary
! What is the takt time?
" Will we build to shipping or to a supermarket?
# Where can we use continuous flow?
$ Where do we have to use supermarket pull systems?
% At what single point in the production chain do we trigger
production?
& What levels of work will we release and take away from the
pacemaker process?
' How will we level the production mix at the pacemaker
process?
( What supporting improvements will be necessary?
(e.g. uptime, set-up, training)
ACME Stamping
Case Study
Value Stream Step 6
Future State Map Acme Co. Example
First View of the Future-State map Showing
Takt Time, Weld/Assembly Cell, and the
Finished-Goods Supermarket
Value Stream Step 6
Acme Co. Future State 1
st
View
Stamping

Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts




Weld& Assy
L
R
Shipping
Staging
1X
Daily

State St.
Assembly
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Notice that on this Future-State Map the four
welding and assembly process boxes have been
combined into one process box to indicate the
continuous flow. A small sketch of a cell inside the
process box also indicates the cellular
manufacturing concept.
Value Stream Step 6
Acme Co. Future State 2
nd
View
Second View of the Future-State Map
Showing Stamping and Raw Material
Supermarkets
Value Stream Step 6
Acme Co. Future State
Signal or Batch kanban
! The stamping process needs to produce batches larger than 60
pieces.
! A trigger point is set up in the stamping supermarket which
includes changeover, replenishment delay and other stamping
problems. In this case stamping will keep 1.5 days of parts in its
supermarket
! A signal Kanban is sent to the stamping process whenever the
number of bins remaining drops to a trigger ( minimum ) level
Value Stream Step 6
Acme Co. Future State
What about Raw Material?
! To build a plant level value stream the Future State must also
show a third supermarket at the receiving dock which holds
coils of steel
! Acme can attach an internal withdrawal Kanban to each coil and
send these Kanbans to their own production control department
whenever another coil is used.
! Production control can order coils based on their actual usage
instead of a best guess determined by MRP
! The cards are then returned to the receiving dock as a signal for
shipments that are due.
! Milk runs for daily deliveries should be considered at this point
Stamping

Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts




Weld& Assy
L
R
Shipping
Staging
1X
Daily

State St.
Assembly
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
20
1.5 days
batch
bin
Coils
PRODUCTION
CONTROL


State St.
Assembly
6-WEEK
Forecast
Daily
Order
1X
Daily
c
o
i
l

coil
(at the press)
Value Stream Step 6
Acme Co. Future State 2
nd
View
Value Stream Step 6
Acme Co. Future State 3
rd
View
Third (Final) view of the Future State Map
Showing Load Leveling, Changeovers, and Timeline
! The material handler pulls the Kanbans out of
the leveling box one-by-one at the PITCH
increment and moves trays of brackets from
the finished goods supermarket to the staging
area one-by- one according to the withdrawal
Kanban.
Production
Control


Daily Orders
bin
bin
bin
OXOX
WELD&ASSY




L
R
bin
Shipping

Staging

Load Leveling Box
Value Stream Step 6
Acme Co. Future State
Stamping

Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts




Weld& Assy
L
R
Shipping
Staging
1X
Daily

State St.
Assembly
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
1.5 days
batch
bin
Coils
PRODUCTION
CONTROL


State St.
Assembly
6-WEEK
Forecast
Daily
Order
1X
Daily
c
o
i
l

coil
(at the press)

EPE= 1 shift.
EPE <10 min..
change
over
Weld
change
over
Welder
uptime
1 sec.
1.5 days
1 day
168 sec
2 days
Production Lead-time= 4.5 days



Processing Time= 169sec
20
20
20
20
OXOX
Daily order
90/60/30 day
Forecasts
Daily
Order
Value Stream Step 6
Acme Co. Future State Complete View
Value Stream Step 7
Generate a Value Stream Plan
! Create the yearly Value Stream Plan
! Tie it to business objectives
! Relate the Future State Map to your layout
! What to do, by when, by whom
! Fix the obvious
! Broken equipment, needed maintenance
! Purchase small tools, replace home-made fixtures
! 5S
! Break the implementation into steps
! Break your future state into loops
! Each loop contains the flow up to and including a supermarket
Pacemaker Loop
Stamping
Loop
Supplier Loop
Value Stream Step 7
Acmes Value Stream Loops
Value Stream Step 7
Example Value Stream Plan
Value Stream Step 8
Start Making the Improvements
! Make continuous Value Stream Improvement the responsibility
of management
! Dont wait to get your future state map perfect
! The main point is ACHIEVING the future state
Value Stream Step 9
Conduct Value Stream Reviews
! Make continuous Value Stream Improvement the responsibility
of management
! Conduct regular Value Stream Reviews while walking the floor
! Value Stream Manager and Plant Manager
! Focus on obstacles to implementation
Assy
Stamping
Coils
Suggestions:
- Review walking the flow
- Concentrate on the problems
Value Stream Step 9
Example Value Stream Review
Value Stream Step 10
Repeat the Cycle
! Keep working for perfection
What Can Be Achieved?
! 75% of wasted steps eliminated
! Throughput time shrinks to less than 10% of current state time
! Demand amplification is eliminated
! Quality higher and consistent from start to finish
! Transport links and information needs shrink dramatically
Concluding Comments
! A future state cant be implemented all at once
! Kaizen events help work towards the future state
! Value Stream Mapping:
! Helps you visualise more than a single process level
! Links the material and information flows
! Provides a common language
! Provides a blueprint for implementation
! Can be more useful than quantitative tools
! Ties together lean concepts and techniques
Review of Goals
and Expectations
! To introduce Value Stream Mapping (VSM)
! To draw a current state map
! Learn the mapping concepts and icons
! To be able to design an improved value stream
! Develop the ability to see the flow of a value stream
! To draw a future state map
! Learn the mapping concepts and icons