LEAN

SIX SIGMA
L S S
VALUE STREAM MAPPING
(CURRENT & FUTURE STATE)
By: -
Hakeem–Ur–Rehman
MS-TQM, M.I.O.M(Operations Research)
Certified Six Sigma Black Belt (Singapore)
Lead Auditor ISO 9001 (UK)
1
IQTM–PU
 What is a Value Stream Map?
A visual representation of every process in the
material and information flow of a product’s path
from customer to supplier.
Information Flow

Start with the Customer

Material Flow
 What is VSM?
A Value Stream is all the actions (both value added and non-
value added) required to bring a product to the customer.
It is:
 “Big Picture”, not individual processes
 Improving the whole, not just optimizing the parts
 According to Womack and Jones, the authors of the book Lean Thinking,
management must change their focus
o From:
o departments
o functions
o firms
o existing assets and technologies
o To:
o the value stream for specific products
 What is VSM?
A Value Stream is all the actions (both value added and non-value added) required
to bring a product to the customer.
 Value Added and Non Value Added
 Value Added Activity
 Transforms or shapes material or information or people
 And it’s done right the first time
 And the customer wants it

 Non-Value Added Activity – Necessary Waste

 No value is created, but cannot be eliminated based on current
technology, policy, or thinking
 Examples: project coordination, regulatory, company mandate, law

 Non-Value Added Activity - Pure Waste

 Consumes resources, but creates no value in the eyes of the
customer
 Examples: idle/wait time, inventory, rework, excess check offs
 Value Stream Mapping
Uses Goals
 Highlights Sources of  Link Individual
Waste Processes to their
Customer(s) by
 Emphasizes Material Continuous Flow or Pull
and Information Flow  Each Process Produces
only what its Customer
needs when they need it

TWO KINDS OF
KAIZEN
 Three Types of Value Streams
Concept to Launch
VALUE STREAM

Research Engineering Production

Concept New Product

Raw Material to Finished Product
VALUE STREAM
PROCESS PROCESS PROCESS
Assembly
Stamping Welding Cell

Raw Finished
Material Product
Order to Cash
VALUE STREAM

Ordering Accounting Payables

Product Product Sale

Costing
 Value Stream
Plant Value Stream
 Typically we examine the value stream in a
plant - from raw materials to finished goods.
VALUE STREAM

Stamping Process Machining Process Assembly Process

ASSEMBLY Custo
Layout
-mer

Raw Finished
Material Product

VSM methods are also used to

map business processes
 Why do it?
Implementation without a plan will lead to disaster
VP Performance

A Value Stream
Clinic Manager
Clinic Clinic
Regional Supply Performance
Supplies
Supply Manager
Forecast

Map is a simple
Clinic
Performance
Syringes

Frequent

visual tool that

Delivery Billing

X Ray Off-line
Film Operation

helps you see the

Compile data from
Admitting Blood Draw X Ray Doctor Review patient records

FIFO FIFO FIFO

flow, find the

Log Time In Draw Blood Take X Ray Review Blood
Stage for Blood Verify Results Verify Results Review X Ray
Pull patients to Retake if Error Retake if Error Log Time Out
Level Schedule Record Value Record Value C/T 2 Minutes

waste and develop

C/T 3 Minutes C/T 2.5 Minutes C/T 2.5 Minutes
Provide arrival windows for
patients to minimize waiting

an improved LEGEND:
Electronic
Physical Flow
3 Min
(process time) 2 Min
(minimal wait)
2.5 Min
(process time) 3 Min
(minimal wait)
2.5 Min
(process time) 3 Min
(minimal wait)
2 Min
(review time)

TPCT: 18 Minutes

process.
Feedback
Considerably reduced
through improved flow

96% Improvement in TPCT

Eyes for Waste . . .

. . . Eyes for Flow
 VALUE STREAM
Clinic Manager
VP Performance
MAPPING PROCESS
Clinic Clinic
Regional Supply Performance
Supplies

Identify
Supply Manager
Requirements

Syringes
Clinic
Performance

Specific process /
Delivery
Weekly Re Tests Value Stream
X Ray
Film

Admitting Waiting RmA

Direct from A only if B empty
Blood Draw
I
In
Hallway
X Ray
I
In
Hallway
Doctor Review
I
In
Hallway
Billing
product family
I Waiting Rm B

Log Time In Fill Room First I Draw Blood Take X Ray Review Blood Record Values
Send to Waiting A Capacity 4 Patients Record Value Record Value Review X Ray Log Time Out
Stop if “A” is Full Fill Room Next C/T 12 Minutes C/T 13 Minutes Retest if Needed C/T 18 Minutes
C/T 10 Minutes

Random
Arrivals
People
Waiting
Capacity 4 Patients
Overflow to B
Dual Path
FTQ 50%

X Ray
I
In
Hallway
FTQ 50%

Blood Draw
C/T 5 Minutes

Retests Understand how the work

LEGEND:
NO
FIFO !
Lost
Patients
Take X Ray Draw Blood
7+ Hours
Current State
site currently operates
Electronic Low Machine TPCT: 423 Minutes
Physical Flow Record Value Record Value Reliability Unknown due to extreme
Feedback C/T 12 Minutes C/T 13 Minutes

Drawing
variability of data
FTQ 50% FTQ 50%

10 Min 5 Min 12 Min 13 Min 5 Min 18 Min

(process time) 120 Min (Transfer A to B) 40 Min (process time) 60 Min (process time) 50 Min (review time) 90 Min (process time)
(avg. wait in “A”) (avg. wait in “B”) (avg. wait) (avg. wait) (avg. wait)

VP Performance

Clinic Manager
Clinic Clinic
Regional Supply Performance
Supplies
Supply Manager
Forecast
Clinic
Performance
Syringes

X Ray
Film
Frequent
Delivery Billing

Off-line
Operation Identify improvement
Admitting

Log Time In
Stage for Blood
FIFO
Blood Draw

Draw Blood
Verify Results
FIFO
X Ray

Take X Ray
Verify Results
FIFO
Doctor Review

Review Blood
Review X Ray
Compile data from
patient records

Future-State opportunities
Drawing
Pull patients to Retake if Error Retake if Error Log Time Out
Level Schedule Record Value Record Value C/T 2 Minutes

Design a lean flow

C/T 3 Minutes C/T 2.5 Minutes C/T 2.5 Minutes
Provide arrival windows for
patients to minimize waiting

3 Min 2.5 Min 2.5 Min 2 Min

LEGEND:
(process time) 2 Min (process time) 3 Min (process time) 3 Min (review time)
Electronic
(minimal wait) (minimal wait) (minimal wait)
Physical Flow
TPCT: 18 Minutes
Feedback
Considerably reduced
through improved flow

96% Improvement in TPCT

Action Item Responsible - - - 2001 - - - - - - 2002 - - -

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Identify and resolve gaps
Improve X Ray Equipment Reliability Sherry Wilson (Med-Tech)
Improve Blood Draw Process Vlad Action Plan Plan how to get there
Technician Training - Verify Test Results Dr. Choi
Implement Use of Patient Record as Data Log Joe Packer (Billing)
Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly)
Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL)
Develop Level Schedule for Patient Arrival Ed Case (Admitting)
 VSM Current State
SELECTING PRODUCT FAMILY
 Create a matrix if your mix is complicated

Assembly and Equipment

1 2 3 4 5 6
X X X X X
F E D C B A

A Product
X X X X X X
Products

Family
X X X X X
X X X
X X X
X X X X
 VSM CURRENT STATE
FORM A TEAM
 Select a cross-functional
team
 Select team members Sensei Engineering

familiar with the process

 Make sure the team is
Production
Manufacturing
Control
Cross Functional

trained to use VSM

Team

 Designate a Champion Purchasing

Financial

(typically a line manager) Leadership

This step is critical to insure

successful implementation
 VSM CURRENT STATE
Understand The Customer Demand & Map the Current Processes

1. Understand the customer Demand

2. Draw the current Process Map

1.What you THINK it is …

2. What it ACTUALLY is…

3. What it SHOULD be…

 MATERIAL FLOW ICONS
Assembly C/T=45 sec.
XYZ C/O=30 min. I
Corporation 3 Shifts. 300 pieces
2% Scrap 1 day
Process Supplier/
Box Customer Data Box Inventory Supermarket

Mon
+ Wed FIFO

Push Physical Finished Goods First-In-First-Out

Shipment Pull to Customer
General Icons
Uptime

Changeover
“Go See”
Operator Production
Kaizen Buffer or Schedule
Lightning Burst Safety Stock
 INFORMATION FLOW ICONS

Weekly
Schedule OXOX

Manual Electronic Load Sequenced-Pull

Information Flow Information Flow Schedule Leveling Box Ball

Withdrawal Production Signal Kanban

Kanban Kanban Kanban Post
 VSM CURRENT STATE
TOTAL PRODUCT CYCLE TIME METRICS
PC&L Weekly
Order CUSTOMER
MRP
Weekly
Order 6 Week
MSS
Steel Supplier Rolling
Forecast
Volume Info:
6 Week 20,000 pcs/month
Rolling
Weekly Build Daily Ship Std. pack = 300
Forecast
Schedule Schedule pcs 2 shifts
Takt = 54s

Mon &
Wed

1 time
daily

I STAMPING I WELDING I ASSEMBLY I FINISHED GOODS

Layout
Steel 10,000 pcs 2,000 pcs 1,200 pcs
4 days 10 days 2 days 1.2 days

Takt = 5s Takt = 8s Takt = 12s 1 Shift

2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs
5% Downtime 2% Scrap/Rework 10% Downtime/
2 Presses 20% Downtime Scrap/Rework
C/O = 25 min
C/T = 2s WIP = 1,500 pcs
7 Operators
WIP = 5,000 pcs
UPTIME
SCRAP
CHANGEOVER

Inventory Time 4 days 10 days 2 days 1.2 days

Processing Time 5 days 1.5 days .6 days TPc/t = 24.3 days

 Upper line is Production Lead Time measured in days or hours

– Production Lead Time = Inventory Quantity  Daily Customer Requirement
 Lower line is Process Time measured in minutes or seconds
VSM Current State: ACME EXERCISE
VSM Current State: ACME EXERCISE

CUSTOMER: State
StateStreet
Street
“State Street Assembly” Assembly
Assembly

SELECTED PRODUCT FAMILY:

“Stamped–Steel Steering Brackets”
 VSM Current State: ACME EXERCISE
90/60/30 day
forecasts
State
StateStreet
Street
Michigan Steel Production Control Assembly
6 week Assembly
Company forecast
Daily
Order 18400 pieces/month
Weekly
Fax -12000- L
500 ft coils MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Schedule
Tues. & Weekly Schedule
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2
Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 850R 1440R
5 days 600R 640R

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
 VSM - Acme Exercise
 Draw production lead time/value-added timeline
 Calculate production lead time for inventory triangles by dividing
quantity of inventory by the customer daily requirement
 This is a really neat trick! It turns a count of inventory into the
number of production days that inventory represents
 Stamping / Weld
18,400 pieces/mo / 20 days = 920 pieces/day
920 / 16 hours (2 shifts) = 57.5 pieces/hour
7000 pieces (total Inv.) / 57.5 pieces/hour = 121.7 hours of
Inv.
121.7 hours of Inv. / 16 hours = 7.6 days of Inventory
Finish the rest of the calculations.
 What is the inventory production lead time?
VSM Current State: ACME EXERCISE 90/60/30 day
forecasts
State
StateStreet
Street
Michigan Steel Production Control Assembly
6 week Assembly
Company forecast
Daily
Order 18400 pieces/month
Weekly
Fax -12000- L
500 ft coils MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Schedule
Tues. & Weekly Schedule
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2
Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 850R 1440R
5 days 600R 640R
C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
7.6 1.8 2.7 2 4.5
5 days PLT = 23.6 days
days days days days days
1 sec 39 sec 46 sec 62 sec 40 sec
PT = 188 sec.
 VSM: FUTURE STATE
How to Create the Future State
 Issue: You have mapped a current state, so what should your ideal or future state map look
like?
 Overproduction – eliminate overproduction, or attempt to level production.

CHARACTERISTICS OF A LEAN VALUE STREAM

Guideline #1: Produce to your Takt time “Synchronizes pace of production to match
pace of sales”.

“Future State Map; Takt Time is noted in the data box”

 VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #2: Develop Continuous flow wherever possible
 Produce one piece at a time
 Reduce batch sizes and implement material replenishment.

 Should you build to a finished goods Supermarket or

directly to shipping?
 Building directly to shipping is ideal.
 If the competitive lead time is less than your process
lead time, you will need a finished goods
supermarket.
 If customer demand rises and falls unpredictably
it might be better to use a finished goods
Supermarket.
 The cost of holding some finished goods may
well be less than the cost of extra capacity
 VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #3:
 Use supermarkets to control production where continuous flow does not extend
upstream. “Where will you need to use supermarket pull systems?”
 Batching might be necessary
 Where changeover is necessary due to very fast or slow cycle times and multiple product
families.
 Long supply chain…One piece at a time is not realistic
 Some processes have too much lead time or too unreliable to couple directly to other processes
in a continuous flow.
 In these cases install a Supermarket based pull system
 Supermarkets are used when continuous flow is interrupted
Remember, flow is better. There is a cost associated with a supermarket
 VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #4: Try to send the customer schedule to only one production process.
“At what single point will you schedule production? (PACEMAKER PROCESS)”

 How you control the production at this process; sets the pace for all of the
upstream processes.
 Any process after the pacemaker process must be continuous- flow ( no
Supermarkets or pulls downstream of the pacemaker process.
 Therefore, the pacemaker process is frequently the most downstream
continuous-flow process in the value stream.
 VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #5: Distribute the production of different
products evenly overtime at pacemaker process. (Level
the production mix). “How will you level the production
mix at the pacemaker process?”
 Distribute the production of different products evenly over
time at the pacemaker process.
 Grouping products makes it difficult to serve customers who
need something different than the batch being produced at that
time.
 On-time deliveries suffer. A part that is due tomorrow might
not make it because it has to wait for the long batches to
complete.
 The icon for leveling is OXOX
 VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #6: What increment of work will you
consistently release and take away at the pacemaker
process? (Level the Production Volume)
 Start by releasing small consistent amounts at the
pacemaker process, while simultaneously taking away
equal amounts of finished goods or “paced withdrawal”
 This consistent increment of work is called the PITCH
 Can be based on pack–out container quantity
 Establishes interval for monitoring status of production
 The key is to create a predictable flow which enables you
to act quickly to problems.

Example: If Takt time = 30 Seconds & Pack Size = 20 Pieces then Pitch = (30
Seconds X 20 Pieces = 600 seconds = 10 minutes)
 VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #6: (Level the Production Volume …)
 A tool used to by some is the (heijunka box)
 A load leveling box with a column for Kanban slots for each PITCH
interval and a row of Kanban slots for each product type.
 The box indicates both the quantity produced and the time allocated
to make it (based on TAKT time)

8 8.10 8.20 8.30 8.40 8.50 9.00 9.10

One row per
product type
Type Kanban Kanban Kanban
A card A card A card A
Kanbans
responded
to from left Type Kanban Kanban Kanban
to right at card B card B card B
B
pitch
increments Type Kanban Kanban
C card C card C

One column per pitch

Here pitch=10 min.
 VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #6: (Level the Production Volume …)
8 8.10 8.20 8.30 8.40 8.50 9.00 9.10

Type Kanban Kanban Kanban

A card A card A card A

Type Kanban Kanban Kanban

B card B card B card B

Type Kanban Kanban Customer

C card C card C requirement

Drop Kanban
1 Pick up
next
at process
2 kanban

Pacemaker
process

Move finished
parts to Shipping
supermarket
Pick up one
3 finished 4
quantity
 VALUE STREAM MAPPING
FUTURE STATE
ACME EXERCISE

FIRST VIEW of the Future-State map:

Showing Takt Time, Weld/Assembly Cell, and the
Finished-Goods Supermarket
 VALUE STREAM
Acme Co. Future State – 1st View
 Notice that on this Future-State Map the four welding and
assembly process boxes have been combined into one
State St.
Assembly

process box to indicate the continuous flow.

 A small sketch of a cell inside the process box also indicates 18,400 pcs/mo
-12,000 “L”
the cellular manufacturing concept.
-6,400 “R”
Tray=20 pcs.

2 Shifts

Stamping Weld& Assy

1X
L Daily

Takt=60 sec.
R Shipping

C/T=56 sec. Staging

C/O= 0
Uptime=100%l
2 shifts
 VALUE STREAM MAPPING
FUTURE STATE
ACME EXERCISE

SECOND VIEW of the Future-State map:

Showing Stamping and Raw Material Supermarkets
 VALUE STREAM
Acme Co. Future State – 2nd View
 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
Signal or Batch
kanban
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
 VALUE STREAM
Acme Co. Future State – 2nd View

6-WEEK State St.

Forecast PRODUCTION Assembly
CONTROL
State St.
Daily
Assembly
Order 18,400 pcs/mo
coil -12,000 “L”
coil

-6,400 “R”
1X Tray=20 pcs.
Daily
2 Shifts
batch
20
bin

Coils Stamping Weld& Assy

1X
L Daily

Takt=60 sec.
R Shipping

(at the press) C/T=56 sec. Staging

1.5 days C/O= 0
Uptime=100%l
2 shifts
 VALUE STREAM MAPPING
FUTURE STATE
ACME EXERCISE

THIRD VIEW of the Future-State map:

Showing Load Leveling, Changeovers, and Timeline
 VALUE STREAM
Acme Co. Future State – 3rdView
 The material handler pulls the Kanbans out of
the leveling box one-by-one at the PITCH
increment and moves trays of brackets from
Production the finished goods supermarket to the
Control staging area one-by- one according to the
withdrawal Kanban.
Daily Orders

bin Load Leveling Box

bin
bin

OXOX
WELD&ASSY
Shipping
bin

L Staging
R
 VALUE STREAM
Acme Co. Future State – Complete View
6-WEEK 90/60/30 day
State St.
Forecast PRODUCTION Forecasts Assembly
CONTROL
Daily
State St. Daily Order
Assembly
Order 18,400 pcs/mo
coil Daily order -12,000 “L”
coil

-6,400 “R”
1X 20 Tray=20 pcs.
Daily
20 2 Shifts
batch
bin 20 OXOX
20
Coils Stamping Weld& Assy
change 1X
over L Daily

EPE= 1 shift.
EPE <10 min.. Takt=60 sec.
R Shipping

(at the press) C/T=56 sec. Staging

1.5 days Weld
C/O= 0
change
1.5 days Welder Uptime=100%l Production Lead-time= 4.5 days
over
uptime 2 shifts 2 days
1 day
1 sec. 168 sec Processing Time= 169sec
 VALUE STREAM
Acme’s Value Stream Loops

Supplier Loop

Stamping
Loop

Pacemaker Loop
 REFERENCE
• Learning to See Parts IV, V
A Value Stream Mapping Workshop
Mike Rother & John Shook
Lean Enterprise Institute
QUESTIONS