Value Stream Mapping

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 Getting Started

Value Stream Mapping

Purpose to:

 Understand the role value stream mapping plays

in continuous improvement

 Draw a current-state map

 Draw a future-state map

 Develop an implementation plan

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Definitions
Process Mapping
 is a hierarchical method for displaying
processes that illustrates how a product or
transaction is processed.
 is a visual representation of the work-flow
either within a process - or an image of the
whole operation.
 should allow people unfamiliar with the
process to understand the interaction of
causes during the work-flow.
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A simple Process Flow Map

Drawing/ t = __ t = __ t = __
S Annealing Rewinding A
d= __

t = __ t = __

t = __ t = __
t = __ t = __
A d= __ Tempering B

t = __

t = __
B t = __ t = __
d= __ Packaging t = __

t = __
E
Total t =
____
Total d=
Definitions (cont’d)
Value stream mapping
 is a tool that helps you to see and understand
the flow of material and information as a
product or service makes its way through the
value stream.
 is typically used in Lean.
Example
 10 Key Elements of a Value Stream

Key Elements of a Value Stream

1. Specify what does and what does not create value
from the customer’s perspective
2. Identify all the steps necessary to order, design
and produce across the entire value stream to
highlight non-value-added wastes
3. Make those activities that create value flow
without interruption, detours, backflows waiting or
scrap
4. Only make what is pulled by the customer just-in-
time

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 10 Key Elements of a Value Stream

Key Elements of a Value Stream

5. Use value stream mapping for analysis, diagnosis
and implementation of change
6. Focus on key processes, not just separate
business departments
7. Address the entire supply chain over time rather
than on short-term improvement of individual
facilities
8. Strive for perfection by continually removing
successive layers of waste as they are uncovered

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 VSM Symbols

Value Stream Mapping Symbols

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 Getting Started

Value Stream Mapping

1. Document a product’s
production path from incoming
raw materials to outgoing
finished product.
2. Draw a visual representation of
every process in the material &
information flows.
3. Then draw a “future state”
map of how the production
path can be optimized to
eliminate the greatest amount
of waste.
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 Mapping Tool

Using the Value Stream Mapping Tools

Product
Family

Understanding how production

Current State currently operates. This is the
Drawing
foundation for the future state.

Future State
Drawing Designing a LEAN flow.

Plan and
Implementation
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 STEP 1:

Identify the Product Family

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 Product Family

Focus on One Product Family

Determine Product Families via: Similar downstream
“assembly” steps and equipment.
Process Steps & Equipment
Depalletize Spice Batch
Bottles Weighing Making
Fill Packaging Shipping

Light
Raspberry
Vinaigrette
X X X X X X
Light Ranch
X X X X X X
Products

Tuscan
House
Italian
X X X X X X
Thousand
Island X X X X X X
Catalina
X X X X X X
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 Product Family

Focus on One Product Family

Determine Product Families via: Similar downstream
“assembly” steps and equipment.
Process Steps & Equipment
Spot Robot Flash Manual Fixtures Electronic
Paint
Weld Weld Remove Assm. Assm. Test
LH Steering
Bracket X X X X
RH Steering
Bracket X X X X
Products

Instrument
Panel Brace X X X
Seat Rail
X X
Bumper
Brackets X X X
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 STEP 2:

Draw the Current State Map

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 Sample VSM Map

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 VSM Symbols

Value Stream Mapping Symbols

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 Cycle Time vs. Lead Time

Lead time:
Period of time between the initiation and the completion of any process

Cycle time:
Actual amount of time spent working on a product or service.

Note:
Lead time can easily be reduced by eliminating interfaces, whereas reducing
processing time requires usually investments in better equipment and training.
Example 1
KBR Manufacturing Company is a peanut butter and jelly sandwich company. They
operate 5 days per week, 8 hours per day with 30-minute break. The company
supplies sandwich to PBJ Grocery Store. The demand of the grocery store is 700
pieces of sandwich daily. The grocery store sends 30-day electronic forecast as well
as electronic daily orders to KBR Manufacturing Company. Conversely, KBR sends its
bread supplier an electronic weekly forecast with a lead time of 1 day delivery.

KBR sends daily production schedule to each station and it was determined that
the production schedules for each step is in isolation, in other words, each work
station gets its unique production schedule. Each station produces as many units as
it could and then pushed them along the next process.

Additionally, during the observation of the process, it was discovered that there
were 350 sub-assemblies in between peanut butter and jelly application; 480 sub-
assemblies in between jelly application and packaging; and 120 pieces of packed
sandwiches waiting to be shipped.
Processing time for each station is given below:
• Peanut butter application is 25 seconds
• Jelly application is 30 seconds
• Packaging process is 42 seconds
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Example 2
MJJ Production Company supplies crankshafts to Airframes Ltd., a company that
manufactures jet engines. MJJ Production Comp. operates from Monday-Friday,
8am-5pm. The company receives weekly orders from Airframes Ltd thru email.
Airframes Ltd has daily demand of 500 crankshafts per day and delivers the
finished goods in 2 batches daily.

On the other hand, the company sends monthly forecast to SIS Steel Corp., the
supplier of steel coil used in production of crankshaft, and the company
receives the materials in 3 days.

It was determined that the process involved in production of crankshaft are as

follows: Stamping, Welding, and Assembly. The products are then staged and
shipped to the customer in two batches daily.
Switching between type of materials processed by stamping requires 1.2 hours;
while welding process requires 0.6 hours.
Example 2
Based on time study, the cycle time and machine reliability for each process
are as follows:
A. STAMPING:
Cycle Time – 2 secs
Reliability – 85%
B. WELDING
Cycle Time – 25 secs
Reliability – 92%
C. ASSEMBLY
Cycle Time – 55 secs
Reliability – 95%

The company implements a push production system, meaning the production

process of each station is done per batch. It was observed that the batch size of
each process are as follows: Stamping – 2100 pcs; Welding – 1500 pcs and
Assembly – 1620 pcs.

Develop a current state map of the production process to determine the lead
time, cycle time and % Efficiency of the process. Identify the non-value adding
activities in the process and propose a future state map that will improve the
operation.
Example 3
ACME Stamping Company produces several components for vehicle assembly
plants. This case concerns one product family; a steel instrument-panel bracket
sub-assembly in two types: one each for left-hand and right-hand drive versions
of the same automobile model. These components are sent to the State Steel
Vehicle Assembly Plant (customer).

CUSTOMER REQUIREMENT:
• 18400 pieces per month
12,000 pcs of Type “LH”
6,400 pcs of Type “RH”
• The customer plant operates in two shifts
• Palletized returnable tray packaging with 20 brackets in a tray and up to 10
trays on a pallet.
• One daily shipment to the assembly plant by truck

WORK TIME:
• 20 days per month
• Two shift operation in all production departments
• Eight (8) hours every shift, with overtime if necessary
• Two 10-minute breaks during each shift
• Manual process stops during breaks
Example 3
PRODUCTION PROCESS:
• ACME’s process for this product family involves stamping a metal followed by
welding and subsequent assembly. The components are then staged and
shipped to the vehicle assembly plant on a daily basis.
• Switching between Type “LH” and Type “RH” brackets requires 1 hour
changeover in stamping and 10-minute fixture change in the welding
processes.
• Steel coils are supplied by Michigan Steel Co. Deliveries are made to ACME on
Tuesdays and Thursdays; and lead time of delivery of supplies is 5 days.

ACME PRODUTION CONTROL DEPARTMENT:

• Receives State Street’s monthly forecasts thru email and enters them to MRP
system
• ACME issues weekly forecast to Michigan Steel Co via MRP system.
• ACME issues build schedules to Stamping, Welding and Assembly processes via
production request (manual system).
• ACME issues shipping schedule to Shipping Department via shipping request
(manual system)
Example 3
PROCESS INFORMATION:
A. Stamping
- Cycle Time: 1 second
- Changeover Time: 1 hour
- Machine Reliability: 85%
- Batch size processing:
4600 pcs of LH Type
2400 pcs of RH Type
B. Spot-Weld Workstation 1
- Cycle Time: 39 seconds
- Changeover Time: 10 minutes
- Machine Reliability: 100%
- Batch size processing:
1,100 pcs of LH Type
600 pcs of RH Type
C. Spot-Weld Workstation 2
- Cycle Time: 26 seconds
- Changeover Time: 10 minute
- Machine Reliability: 80%
- Batch size processing:
1,600 pcs of LH Type
850 pcs of RH Type
D. Assembly Workstation 1
- Cycle Time: 62 seconds
- Changeover Time: none
- Machine Reliability: 100%
- Batch size processing:
1,200 pcs of LH Type
640 pcs of RH Type
Example 3

PROCESS INFORMATION:
E. Assembly Workstation 2
- Cycle Time: 40 seconds
- Changeover Time: none
- Machine Reliability: 100%
- Batch size processing:
2,700 pcs of LH Type
1,440 pcs of RH Type

F. Shipping Department
o Removes parts from finished goods warehouse and stages them for truck
shipment to customers
Example 4
VSM Inc. produces several aftermarket components for motorcycle repair and
replacement companies. This example investigates one Kawasaki product
family: progressive suspension forks in two types: model #VN1500 and VN1600.
These components are sent to two customers (1) supplies requests East of the
Mississippi River (customer A) and (2) supplies requests West of the Mississippi
River (customer B). Customer A & B receive a 50/50 split of each component.

Customer A & B Requirements:

 1980 pieces per month = 1200 per month of Type “VN1500” and 780 per
month of Type “VN1600”
 Customer plant operates on two shifts
 Palletized returnable tray packaging with 5 forks in a tray and up to 10 trays
on a pallet. - The customer orders in multiples of trays.
 One daily shipment to each distribution center (Customer A & B) by truck.

Work Time:
 22 days in a month - Two shift operation in all production departments
 Eight (8) hours every shift, with overtime if necessary
 Two 15-minute breaks during each shift - Manual processes stop during breaks
- Unpaid lunch
Example 4
Production Processes:
 VSM Inc. process for this product family involves milling a metal part
followed by welding, painting and subsequent assembly and inspection. The
components are then staged and shipped to Customers A & B on a daily basis.
 Switching between Type ”VN1500 and Type “VN1600” suspension forks
requires a 60 minute changeover in milling and a 10-minute fixture change in
welding and a 40 minute changeover in painting.
 Raw materials are supplied by Urbana Metal Co. - Deliveries are made to VSM
Inc. on Wednesday with lead time of 10 days.
 One daily shipment to each customer distribution center by truck.

VSM Inc. Production Control Department:

 Receives East and West Distributor’s monthly forecasts and enters into MRP
 Issues VSM Inc. 6-week forecast to Urbana Metal Co. via MRP
 Secures raw materials by weekly FAXed order to Urbana Metal Co.
 Issues weekly build schedule to Milling, Welding, Painting, &
Assembly/Inspection (manual system)
 Issues daily shipping schedule to Shipping Department (manual system)
Example 4

Process Information: All processes occur in the following

order - each piece goes through all processes.``
1) Milling (The mill is semi-automated and requires two
operators)
 Cycle Time: 10 minutes (6 pieces per hour)
 Changeover time: 1 hour (good piece to good piece)
 Machine reliability: 90%
 Observed batch size:
160 pieces of type “VN1500” finished millings
100 pieces of Type “VN1600” finished millings

2) Welding Workstation (dedicated to this product

family)
 Manual process with one operator
 Cycle time: 150 seconds
 Changeover time: 10 minutes (fixture change)
 Reliability: 100%
 Observed batch size:
120 pieces of Type “VN1500”
75 pieces of Type “VN1600”
Example 4
3) Painting Workstation
(dedicated to this product family)
 Manual process with one operator
 Cycle Time: 300 seconds
 Changeover time: 40 minutes
(fixture change)
 Reliability: 95%
 Observed batch size:
100 pieces of Type “VN1500”
60 pieces of Type “VN1600”
5) Shipping Department
Removes parts from finished goods
warehouse and stages them for truck
shipment to customer A & B.
4)Assembly & Inspection Workstation
(dedicated to this product family)
 Manual process with two operators
 Cycle time: 165 seconds
 Changeover time: none
 Reliability: 100%
 Observed batch size:
240 pieces of Type “VN1500”
150 pieces of Type “VN1600”
The Office

HOWEVER, THE
OBJECTIVE IS TO
ELIMINATE WASTE!
 STEP 3:

Draw the Future State Map

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 Future State

Future State Map

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 Mass Production

Mass Production
This is not
good!

Material Large Lots, Pushed Ahead, “Island” Mentality

Receiving Storage Storage

Warehouse
Shipping
Storage Warehouse

Stamping Repair
Assembly

Ship

Value-Added time: Minutes

Time in Plant: Weeks
Order Cash

Goal: MORE - FASTER – and BETTER

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 Waste

Waste
 The elements of production that add no value to the product

 Waste only adds cost and time

What you need to remember about Waste

 Waste is a symptom rather than a root cause

of the problem

 Waste points to problems within the system

(at both process and value stream levels)

 Address the causes of waste

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 Overproduction

Overproduction
 Making more than is required by the next process

 Making earlier than is required by the next process

 Making faster than is required by the next process

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 Finished Goods

Build to Supermarket or to Shipping?

To Supermarket
To Shipping

Customer
Customer

Assembly
Shipping
Assembly Shipping

Supermarket
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 Continuous Flow

Batch and Push Processing

Process A Process B Process C

10 10 10
minutes minutes minutes

Lead Time: 30++ minutes for total order

Continuous Flow

A B C

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 Problem Points

Bottlenecks in the Flow

Determine Exactly Where One-Piece Flow Ends

Customer

Stamping Welding Assembly

 How can we control production between flows?

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