Value Stream Mapping

Introduction to Value Stream Mapping

Definition of Value Stream

A Value Stream includes all elements

(both value and non-value added)
that occur to a given product from its
inception as a raw material through
delivery to the customer.

Krishna Heda
 Value stream mapping

❖Value stream mapping is a lean-management

method for analyzing the current state and
designing a future state for the series of events
that take a product or service from its beginning
through to the customer. At Toyota, it is known as
"material and information flow mapping“.
 Current State

Va l u e S t r e a m M a p p i n g

C U R R E N T- S TAT E D R AW I N G
Product Family
C u r re n t - S t a t e
Drawing
F u tu r e - S ta te
Drawing
I m p le m e n ta tio n
KKririsshnahna
U n d e r s t a n d i n g h o w the s h o p
floor currently operates.
Material & information flows
Draw using icons
S ta r t w it h th e “ d o o r to d o o r ” flo w
H a ve to w a lk t h e fl o w & g e t a c t ua ls
* n o s ta nd a r d ti m e s
* draw by hand, with pencil
F o u n d a t i o n for t h e F u t u r e State
1 1/ 1/ 99
Process

Value Stream Improvement &

Process Improvement
VALUE STREAM

PROCESS PROCESS PROCESS

Assembly
Stamping Welding Cell

Raw Finished
Material Product

VALUE STREAM = All actions (both value added and non-value added)
required to bring a product through:

Raw material to finished product

Order to delivery
Concept to launch
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 Value Stream Mapping Purpose

❖Provide optimum value to the customer through a

complete value creation process with minimum waste in:

❖Design (concept to customer)

❖Build (order to delivery)

❖Sustain (in-use through life cycle to service)

Introduction to Value Stream Mapping

Objectives of Value Stream Mapping

◆ Provide a means of visualizing product and
information flow for the value stream
◆ Facilitate the identification and elimination of
waste and the sources of waste
◆ Support the prioritization of continuous
improvement activities at the plant and value
stream levels
◆ Provide the basis for site plan development

Eliminate Waste
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 Why important
❖Many organizations pursuing “lean” conversions have
realized that improvement events alone are not enough

❖Improvement events create localized improvements,

value stream mapping & analysis strengthens the
gains by providing vision and plans that connect all
improvement activities

❖Value stream mapping & analysis is a tool that allows

you to see waste, and plan to eliminate it
 What Is Value?
❖A capability provided to a customer

– of the highest quality,

– at the right time,

– at an appropriate price,

❖as defined by the customer.

– "Value" is what the customer is buying

 What Is Value Stream Analysis?

Planning tool to optimize

results of eliminating waste

Current State VSM Future State VSM

Lean
Basics
Value Steam Mapping Steps
 Value Stream Mapping

Va l u e S t r e a m M a p p i n g

T HE N E X T STEP:

F o l l o w a p ro d u c t ’s p r o d u c t i o n p a t h
f ro m beginning to end, and d r a w a
visual representation of ev ery process in
the material a n d information flows.

T h e n d r a w a “future state” m a p of h o w
v a l u e s h o u l d f l o w.
KKririsshnahna 11 / 1/ 99
 Agenda - Session 1

✔ Introduction to Value Value Stream Mapping

✔Data Collection

◆ Map Current State

◆ Activity: Map Current State

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Data Collection
Attribute Data to Collect

◆ Shipping/Receiving ◆ Work-in-process
schedules inventory
◆ Pack sizes at each
◆ Overtime per week
process
◆ Demand rates by ◆ Process cycle times
process (Takt Time) ◆ Number of product
◆ Working hours and variations at each step
breaks
◆ Scrap ◆ Batch (lot) sizes
◆ Inventory Points
(location & size) ◆ Rework ◆ Changeover times
◆ How Operations are ◆ Changeover
◆ Downtime
scheduled frequencies
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Data Collection

◆ It is not necessary that attribute data be

precise.
◆ It is necessary that the information at least be
directionally correct.
– Knowing that uptime is 82.7% vs. 82%
is normally not necessary.
– An assumption of 80%, however,
when reality is 65% can be
detrimental in that it may substantially
misdirect the future state development
and the prioritization of improvement
activities.
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 Agenda - Session 1

✔ Introduction to Value Value Stream Mapping

✔Data Collection

◆ Map Current State

◆ Activity: Map Current State

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Map Current State
The Steps

Step 1: Select a Product Family

Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Step 5: Map the Material Flow
Step 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time
Step 8: Detail Off-Line Activities

Krishna Heda
Introduction to Value Stream Mapping
Tools

Scrap

Manufacturing Kaizen
Process Lightning
Burst

Outside
Buffer or
Source/
Safety Stock
Customer

Manual
Information Flow
Data Box

Electronic

I Information Flow

Inventory

Production Kanban

oTruck
oo
Shipment

Withdrawal Kanban

Finished
Goods to Customer

Push Arrow Signal Kanban

Supermarket Kanban Post

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Map Current State

Step 1: Select a Value Stream (Product Family)

◆ Define value stream (product family)
– Identify value stream from the customer end
– Product should pass through similar processes
and over common equipment
– Door-to-door in scope (within plant walls
– Select the highest cost. (Major component)
– List on top left corner of VSM.

◆ List part numbers

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Current State
Step 2: Form a Team
◆ Select a cross-functional team
Industrial
◆ Select team members Sensei Engineering

who are familiar with Product

Manufacturing
the product Cross Functional
Team
Engineering

◆ Ensure that team Maintenance

PC & L

members are trained in the

Leadership
use of VSM

◆ Designate a champion (typically a line manager)

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Map Current State
Step 3: Understand Customer Demand
◆ Plan for Every Part
Customer
◆ Industrial Engineering budgeted
volumes Demand/month:
Part A =
Part B =
Part C =

◆ ProductionControl # of shifts =

(monthly/weekly forecasts)
◆ Production history (day-to-day, month-to-month
variation)
◆ Sales (product changes, new business etc.)

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Map Current State
Step 4: Map the Process Flow

Customer

Demand/month:
Part A =
Part B =
Part C =
# of shifts =

Stamping Welding Assembly Shipping

Takt = Takt = Takt = Inventory

C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =

Changeover Downtime FTQ

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Map Current State
Step 6: Map the Information Flow
PC & L
6 week rolling
Weekly Order forecast
6 week rolling Weekly Order
Customer
forecast
Supplier Daily Ship Schedule
Demand/month:
Part A = 705 pcs.
Weekly Build Schedule
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =

2 x/ 2 x/
week day

Stamping Welding Assembly Shipping

I I I I
1,200 pcs 1,500 pcs 800 pcs 500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

Changeover Downtime FTQ

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Map Current State
Step 7: Calculate Total Product Cycle Time
PC & L
6 week rolling
Weekly Order forecast
6 week rolling Weekly Order
Customer
forecast
Supplier Daily Ship Schedule
Demand/month:
Part A = 705 pcs.
Weekly Build Schedule
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =

2 x/ 2 x/
week day

Stamping Welding Assembly Shipping

I I I I
1,200 pcs 1,500 pcs 800 pcs 500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

.4 days
Changeover
.5 days
Downtime
.02 days Krishna Heda
.27 days
FTQ
.17 days
TPc/t = 2.5 days
.008 days .18 days 1.0 days
 Current State

Mapping the
Current State
90 /6 0/3 0 d ay
S ta t e S t re e t
Michigan 6 - week PRODUCTIO Forecasts A s se m b ly
Steel C O . F or ec a s t C O N TR O L
1 8 ,4 0 0 p cs /m o
MRP Daily Order -1 2 , 4 0 0 “L ”
W eekly F a x
5 0 0 ft c o i l s - 6 ,4 0 0 “R ”
Tray = 20 pieces

2 Shifts
Daily Ship
W eek ly S c h e d u l e Schedule
T ues . & Thurs.
1X Daily

S T A M P IN G S. W E L D # 1 S. W E L D # 2 A S S E M B L Y #1 ASSEMBLY # 2 SHIPPING
I 200 T I I I I I
Staging
Coils
4600 L 1100 L 1600 L
5 days 1200 L 2700 L
2400 R 600 R 850 R
640 R 1440 R
C/T = 1 second C/T = 61 seconds
C/T = 3 8 seconds C/T = 4 5 seconds C/T = 39 seconds
C/O = 1 hour C / O = 1 0 minutes C / O = 10 minutes C/O = 0 C/O = 0
Uptime = 85% Uptime = 85% Upt im e = 100% Uptime= 100% Uptime = 100%
2 7 , 0 0 0 s e c . a va i l . 2 7 , 0 0 0 s e c . a va i l . 2 Shif ts 2 Shifts 2 Shifts
E P E = 2 weeks E P E = 2 weeks 2 7 , 0 0 0 s e c . avai l . 2 7 , 0 0 0 s e c . avai l . 2 7 , 0 0 0 s e c . avai l .

5 7. 6 d ay s 1. 8 d ay s 2 . 6 d ay s 2 days 4 . 5 d a y sP r o d u c t i o n
da y s 1 second 39 L e a d T i m e = 23.5 days
38 s ec onds 45 s ec onds 61 s ec onds
KKririsshnahna s ec o nd s Value Added Tim e=
184 sec.
Map Current State
Step 8: Detail Off-Line Activities

◆ Show on the map using general icons

◆ Detailout on another sheet using either
reference VSM and/or process flow-charting
Press Room

Fork Truck

Die Bench
Die Room Die Room
Receiving Shipping
(Remove from
Schedule
I I Board)

Dies Dies
12 shifts 2 shifts

Schedule Board
(Forecast)

Krishna Heda
 Apply Five Simple Principles

❖Specify value from the standpoint of end customer

❖Identify the value stream for each product family

❖Make the product flow

❖So the customer can pull

❖As you manage toward perfection

 Lean Guiding Principles

VALUE
VALUE
PERFECTION STREAM

PULL FLOW
 What Flows?

❖"ITEMS" flow through a value stream

– In manufacturing, materials are the items

– In design & development, designs are the items

– In service, external customer needs are the items

– In admin., internal customer needs are the items

❖Analysis begins with part of a total value stream, that
part of the value stream has customers too
 TAKT TIME
❖The word takt is German and literally means pace or
rhythm. When we speak of takt time we're attempting

to understand the rate at which we need to produce our

product in order to satisfy customer demand.

 Step by Step Guide

❖Step 1 - Select your sponsor and set expectations

–appoint someone who is responsible to make
decisions, arbitrate solutions, and plan the project.

–The sponsor usually selects the processes that will be

mapped and will usually have a firm grasp of what
achievement is being targeted.
 Step by Step Guide

❖ Step 2 - Select your team

– You should ensure that each area or stakeholder of
the process is represented e.g. Sales, Purchasing,
Warehouse etc.
 Step by Step Guide

❖ Step 3 -Select process to be mapped

– Value Stream Mapping is suitable for most businesses
and can be used in Manufacturing, Logistics, Supply
Chain and some Service orientated Organizations.
 Step by Step Guide

❖Step 4 - Collect data and produce current state map

–process times, inventory or materials information,
customer (or demand) requirements.

–the future state maps will be developed using

information captured here so it’s imperative you have a
correct understanding of the business.
 Step by Step Guide

❖Step 5 - Critique Current state

– challenge the current thinking, encourage your
team to make suggestions, look for areas of waste.
 Step by Step Guide

❖ Step 6 - Map Future State

– compile a future state map based on the
current state map and the critiques
 Step by Step Guide

❖ Step 7 - Create Action Plan and deploy

– taking the Future State map consider an
action plan that could be implemented to
change the current process to the future
state.
 Step by Step Guide

❖ Step 8 - Measure benefits

– check to ensure that the benefits expected
have been obtained – review each change
made and analyze benefits
 Present State Value Stream Map

Value Stream Mapping

 Establish Takt Time

Takt Time = Demand Rate

Takt Time = Work Time Available
Number of Units Sold

Takt Time = 900 Seconds = 10.6 Sec/Board

85 Boards
Cycle Time
Takt Time = Minimum # of People

GOAL: Produce to Demand

Value Stream Mapping

 Future State Value Stream Map

Value Stream Mapping

THANK YOU