MEE1016

Lean Enterprises And New Manufacturing Technology

Dr. JAYAKRISHNA KANDASAMY

Associate Professor
School of Mechanical Engineering
VIT University
jayakrishna.k@vit.ac.in
9894968596
 Process Mapping
and
Value Stream Mapping
Process Mapping and Value stream mapping:

• Process mapping
• Need for process map
• Types of process map
• Detailed instructions for mapping
• Common mistakes in mapping
• Value stream mapping Overview
• Where and When to use VSM
• VSM Symbols
• Step by step approach to VSM
• Present and future state mapping of VSM
Work Vs Waste

Work = Physical or Chemical Change in the Product

A Process that physically or chemically transforms / changes / shapes a

product or service which is eventually sold to a customer.

In other words, the activities which increase the value of a product is called
Value Added (VA) activity for which the customer will be willing to pay for.

A Process that takes time, resources, space and effort but does not add any
value to the product or service, for which the customer will not be willing
to pay eventually affecting the profit margin of the company is called Non
Value Added (NVA) activity . NVAs are also called as Wastes.
Work Vs Waste

More than 95% of the time spent inside a factory is Waste

All companies have NVAs, Studies show that in a typical manufacturing unit, VA time
constitutes to less than 5% of the total lead time.

We cannot eliminate all the NVAs, some of them can be eliminated and many of them can be
reduced.
Seven Waste/Muda

1. Transportation

2. Inventory

3. Motion

4. Waiting

5. Over Production

6. Over Processing

7. Defects

https://www.youtube.com/watch?v=Txt_l5dKgtk
The Biggest Poison in every company?
WIP is the Biggest Poison

WIP hides high set up times, poor quality, high transportation, waiting and high
breakdown of machines; all the wastes we had read earlier.

Imagine the overall operations as a ship and there are so many wastes (rocks) at the bottom of
the sea. The water level is the WIP. If the water level is high, the ship will sail without hitting
the rocks. But when the water level is low, the ship starts to get hit by the rocks.

This is the most critical phase, as many companies revert to the earlier production methods
(of having high WIP)

So the problems continue to remain forever…….

Reducing the WIP, solves Problems

Eliminating WIP means, there is no choice but to work on the wastes and reduce /
eliminate the wastes.

When the WIP is reduced, all the major issues in the factory would ‘show up’.
Reducing the WIP, solves Problems

Pressure to revert back to old ways. Lean Fails…

There would be pressure from all the sides to revert to the old way of working (with high WIP).
Don’t revert to the old ways of working. Now these issues have to be addressed one by one, so
that the productivity improves.

One of the primary reason lean initiatives fail across many organizations is because, having
more WIP means there is no pressure for the people to solve the issues. So they would continue
to work in the same way and no results would be achieved
Magic Pill = Continuous Flow

Creating Continuous Flow (Single Piece Flow) would reduce WIP

Single Piece Flow (Small batch Production) would eliminate WIP Continuous
flow is the
which would result in all the wastes getting eliminated / reduced. foundation
of all
LEAN
For e.g. INITIATIVES
• Transportation is reduced as each piece needs to be moved
immediately to the next operation. So the processes have to be set
close to each other (layout has to be modified).
• Similarly Change-over time has to be reduced as no WIP means the
entire line will stop during change over.
All lean tools depend on Continuous Flow

Without Continuous Flow, all other tools fail

All the lean tools are designed to work better along with
Continuous Flow system. Value
Kaizen Kanban Stream
If there is no flow of the products, Wastes would start Mapping
accumulating.
Line
SMED Poke Yoke
For e.g. Balancing
Change-over time reduction would be possible by Single Minute
Exchange of Dies (SMED). However, if there is no flow, and high WIP,
there is no pressure for the teams to reduce the change over time. 5S TPM TQM
They can take as much time as they want for changeover.

But if there is less WIP, the entire line would stop during the change
over. So there is a pressure for the team to reduce the change-over Continuous Flow
time. In this case, SMED cannot be skipped and would be followed
automatically
Introduction to Value Stream Mapping (VSM)
What is Value stream mapping ?
Raw
All the activities inside a factory (from Raw Materials to Finished Material
Goods)

Value gets added in each stage

Operation
Value Stream - It is all the activities (both VA and NVA) currently required to I

complete a product. i.e., from the RM stage to FG stage.

Operation II

Value Stream Mapping(VSM) is a pencil and paper tool which maps the
entire process (both VA & NVA) currently required to bring a product to the Operation III
customer.
Unlike other tools VSM captures both Material flow and Information flow Finished
Goods
of a process. It helps in identifying the source of Non Value Adding(NVA)
activities in a Value stream.
3 flows in Value stream mapping
Value stream mapping:

• Helps us see where value is created, and where waste

exists: Product Family
• Developed by ‘product family’
• Shows flow of both material & information. Current State VSM
• Helps us ‘see’ where/how specific lean tools can be used
to improve flow and eliminate waste Future State VSM

• Consists of two types of maps:

Action Plan for
• Present State (“how it is”) Implementation
• Future State (“how it should be”)
Product Family

What is a Product Family ? Assembly steps & Equipment's

1 2 3 4 5 6 7 8

A Product family is a group of products that pass through A X X X X X

similar processing steps and over common equipment in B X X X X X X

P

your downstream process. In simple words, products R

O
C X X X X X X
D
having same operations. U
D X X X X X
C
E X X X X X
Select a product which goes through most of the T
S
F X X X X X
processes in your unit.
G X X X X X
In many cases this would be the high Volume / Value
product in your company. Select that product to start
creating the VSM.
Current State Map

What is a current state map?

Current state map, as the name implies it maps the existing

processes (for a product) which happens inside the plant.

It is advisable to work in a single plant level (at the initial stages) Process Level
and later create VSM across multiple units.
Single Plant Level

Multiple Plants

Across Companies
VSM Icons/Symbols
Data to be collected for VSM
Data to be collected for VSM

1. Cycle Time (C/T) - Time gap between 2 pieces from the line - in seconds (Note down the

value added and Non- Value added time Separately)

2. Changeover time (C/O) - Time to switch over from producing one product type to another

- in seconds

3. Number of people - Number of people required to operate the process - in numbers

4. Available working time - The available working time per shift at that process (minus the

break time, meeting time & Cleaning time) - in seconds

Data to be collected for VSM

5. EPEx (Every Part Every Interval) - Measure of Production batch size

6. Machine up-time - Actual machine working time - in percentage

7. Pack size/ Bin size - Volume of the bin or the quantity contained in the bin

8. Rejection% & rework %

9. Transportation - If there is transportation of material, note the distance travelled

Some Lean Measurements

Cycle time (C/T)

How often a part or product actually is completed by a process. Also the time it takes an
operator to go through all of their work elements before repeating them.

Value-Adding Time (VA)

Time of those work elements that actually transform the product in a way that the Customer is
willing to pay for.

Lead Time (L/T)

The time it takes one piece to move all the way through a process or a value stream, from start
to finish. Envision timing a marked from part as it moves from beginning to end.
Guidelines

How to collect data for VSM

▪ Start with a product family that’s getting produced in a single plant

▪ Always collect current state information while walking along (Gemba) the actual pathways
of material and information flows yourself
▪ Begin with a quick walk along the entire door-to-door value stream - to have an idea
▪ Begin at the Delivery Stage and Work upstream
▪ Bring your own stopwatch and do not rely on standard times or information given by
others
▪ Map the whole value stream yourself - don't do in bits or outsource
▪ Always draw by hand in Pencil - No computers please
Guidelines

A few mapping tips

▪ Stand at a distance from the operator - do not disturb him/her. Tell them that you are
just observing and not to be nervous. let them continue at their own pace
▪ Do not start measuring the time immediately. Observe the process in detail for at least 5
cycles. What is the work happening in the process?
Guidelines

A few mapping tips

• After 5 cycles, note the sub-activities in the process - loading, unloading, switching on the

machine, cleaning the burr, etc. - note it down in the sheet

• After another 5 cycles - start measuring the time - this is the total cycle time

• After another 5 cycles - Measure the time of the Value Added activity (physical/chemical

change in the product)

• Totally - 20 Cycles for 1 operation.

Current State VSM

STEP 1 – Material Flow

Current State VSM

How to draw the Customer requirement?

XYZ FACTORY
Get yourself with a A3 paper and walk across the entire process Company
flow to under stand the process to have an idea of the process.
Now start creating the map by drawing an Factory icon and
15000 nos.
note down the customer requirements (Month requirement, 10000 - LH
DATA BOX
5000 - RH
Variant, Shipment schedule and Bin/ tray quantity) in the Data
25 pieces/tray
box icon.

Data given in the right side is an example of how to draw the

data.
Current State VSM
How to draw the Process Box?
Now start observing the process from the final operation and start Assembly#1

moving upstream. Note down the data (Cycle time, Changeover time, PROCESS

No. of operators, No. of machines, Uptime, Shift time, No. of Shifts) for
1 BOX

each process in the process box.

A Process box indicates a process or an area of material flow (ideally
C/T = 34 sec
a continuous flow). Example, an assembly process with 3 activities
C/O = 45 mins
done by 1 person in a table, would be drawn as 1 box. But if the DATA BOX
Uptime = 100%
product moves to the next table, it would be drawn as another box. 2 Shifts

Material flow to be drawn from Left to Right according to the Process 27600 sec. avail.

flow sequence, not based on the layout

Current State VSM

How to represent Inventory between stations?

As you move past the processes you may notice inventories piled up
between processes. Capture the inventory locations with the inventory
triangle (Shown right side) in between process and Note down the
I
inventory quantity below each triangle.
3150 pieces
2 Days
If the inventory is in more than one place, then draw a triangle for each
location.
Material Flow
A sample of how process are to be indicated in the VSM XYZ Company

15000
pieces/month
10000 –”L”
5000 – “T”
Tray - 25 pieces
2 shifts

I PRESS I WELDING 1 I WELDING 2 I ASSEMBLY 1 I ASSEMBLY 2 I SHIPPING

Coils 1 5000 L 1
900 L 1 1200 L 1000 L 2500 L
200T 700 R
1 1 Staging
8 Days 3000 R 700 R 1500 R 1500 R
C/T = 1.5 C/T = 50 sec C/T = 40 sec C/T = 30 sec C/T = 60 sec
C/O = 50 mins C/O = 14 mins C/O = 12 mins C/O = NIL C/O = NIL
Uptime = 85% Uptime = 85% Uptime = 90% Uptime = 95% Uptime = 95%
27600 sec 2 shifts 2 shifts 2 shifts 2 shifts
EPE = 1week 27600 sec 27600 sec 27600 sec 27600 sec
Current State VSM

STEP 2 – Information Flow & the VA/LT ratio

Current State VSM

What are the other data that are to be collected?

Note down the other data such as,

• Shipment from supplier

• Information flow from the customer

• Information flow to the production processes & supplier

• Pull or Push movement between the process

Information Flow
Current State VSM

How to calculate the Lead time and processing time?

Draw a timeline under the process boxes and inventory triangles to compile the production
lead time.
Lead time (in days) for each inventory triangle can be calculated as;

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦
= 𝐿𝑒𝑎𝑑 𝑇𝑖𝑚𝑒 (𝑖𝑛 𝑑𝑎𝑦𝑠)
𝐷𝑎𝑖𝑙𝑦 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑚𝑒𝑛𝑡
Adding up all the lead time gives the Total production lead time of the process.
 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
Tray - 25
pieces
2 shifts
Weekly Schedule Daily Schedule

2 x Week 2 x Daily

I PRESS I WELDING 1 I WELDING 2 I ASSEMBLY 1 I ASSEMBLY 2 I SHIPPING

Coils 1 5000 L 1
900 L 1 1200 L 1000 L 2500 L
200T 700 R
1 1 Staging
8 Days 3000 R 700 R 1500 R 1500 R
C/T = 1.5 Sec C/T = 50 Sec C/T = 40 Sec C/T = 30 Sec C/T = 60 Sec
C/O = 50 mins C/O = 14 mins C/O = 12 mins C/O = NIL C/O = NIL
Uptime = 85% Uptime = 85% Uptime = 90% Uptime = 95% Uptime = 95%
27600 Sec 2 shifts 2 shifts 2 shifts 2 shifts
EPE = 1week 27600 sec 27600 sec 27600 sec 27600 sec

8 days 10.6 days 2 days 2.5 days 2.1 days 5.3 days 30 days
1.5 Sec 50 Sec 40 Sec 30 Sec 60 Sec
181.5 Sec
 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
High
Tray - 25
WIP pieces
2 shifts
Weekly Schedule Daily Schedule

2 x Week High 2 x Daily

Transportation

I PRESS I WELDING 1 I WELDING 2 I ASSEMBLY 1 I ASSEMBLY 2 I SHIPPING

Coils 1 5000 L 1
900 L 1 1200 L 1000 L 2500 L
200T 700 R
1 1 Staging
8 Days 3000 R 700 R 1500 R 1500 R
C/T = 1.5 Sec C/T = 50 Sec C/T = 40 Sec C/T = 30 Sec C/T = 60 Sec
C/O = 50 mins C/O = 14 mins C/O = 12 mins C/O = NIL C/O = NIL
Poor Uptime = 85% Uptime = 90%
Uptime = 85% Uptime = 95% Uptime = 95%
5S
27600 Sec 2 shifts 2 shifts 2 shifts 2 shifts
EPE = 1week 27600 sec 27600 sec 27600 sec 27600 sec

8 days 10.6 days 2 days 2.5 days 2.1 days 5.3 days 30 days
1.5 Sec 50 Sec 40 Sec 30 Sec 60 Sec
181.5 Sec
Important Concepts: Part 1

Takt Time, Bottleneck, Kaizen, Line Balancing, Supermarkets

TAKT Time

Takt time is the customer requirement rate of a product. Takt time is calculated by dividing
the customer demand per day to available working time per day(in seconds)

𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑇𝑖𝑚𝑒 𝑃𝑒𝑟 𝐷𝑎𝑦

𝑇𝑎𝑘𝑡 𝑡𝑖𝑚𝑒 =
𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑚𝑒𝑛𝑡 𝑃𝑒𝑟 𝐷𝑎𝑦
“Takt time is the Heartbeat of the Line”
For e.g.: If the customer demand rate is 500 nos. per day for a product and if the
company works 1 shift per day, then
Available time - (8hours × 60minutes × 60seconds) × 90% efficiency = 25900 seconds
Takt time = 25900/500 = 51.84 sec
i.e., For every 51.84 seconds the line should produce 1 product
Bottleneck Activities

What is a Bottleneck operation?

Bottleneck operation is the process for which the cycle time of the process is higher than
the Takt time. There can be more than one bottleneck operation.
Consider the takt time for the following process as 51.8 seconds, then

Process A Process B Process C

C/T = 40 Sec C/T = 75 Sec C/T = 50 Sec

All the improvement projects should be done on the bottleneck operation.

Bottleneck Activities

• Output of the line is determined by the Bottleneck Activities

• To improve the line’s output, cycle times of the bottleneck activities have to be reduced (to
less than take time requirements)
• Do NOT reduce the cycle times of Non-Bottleneck Activities
• It will not have any impact on the overall output of the line
• Even a small reduction of cycle time in the bottleneck activity would have a big impact on
the output of the line
• For e.g.: In our previous example, the current output is 25900/75 = 345 pieces.
And, if the cycle time is reduced to 65 Seconds, the output of the line will be = 25900/65 =
398 pieces.
Kaizen

Kaizen = Continual Improvement

Kaizen means continual improvement through small changes. Kaizen/ Focused improvement is
the process improvement in strategically important areas (Bottleneck operation).

Improvement is like sunlight Lot of energy, but dispersed(Wasted). Focused improvements

concentrates the energy (Little energy), but concentrated and aligned enables
significant(Large) improvements.
Kaizen =
Focused
Improvement
done in
Bottleneck
Activities
What is Kaizen?

• Process Improvement
• In Strategically Important Areas (Bottleneck Operations)
• Significant Improvements
• Sustainable Improvements
• Speedily Executed Improvements
Line Balancing

What is Line Balancing?

The cycle times of the various processes vary and this creates Waiting and Over Production
inside the line. To smoothen the output of the line, Line Balancing is necessary.

“Line balancing is optimizing the workload across all processes in a cell or value stream
to remove bottlenecks and excess capacity”

Line balancing can be done by observing the process for their work elements (VA time vs. NVA
time in the process) and doing Kaizen in the process.
Line Balancing
Cycle Time
Example 70

60
In this example, there are 4 processes.
50

Cycle time of A is only 30 seconds, whereas 40

B takes 65 seconds to complete 1 piece. So 30

there would be WIP piling between A and
20
B (Over Production).
10

Similarly D takes only 26 sec, whereas C 0

takes 53 sec to complete 1 piece. So D A B C D

would be “Waiting”. Cycle Time

Cycle times of
Line Balancing should be done in such a processes should

way that the cycle times of all operations not vary

more than 10%
are almost equal (less than 10% variation)
Line Balancing

What is Line Balancing? 70

60
Combine A and D so that 1 operator becomes
free. 50

40
Create a cell concept where B and C would
work independent and Activities A and D 30

would be done by 1 person. 20

10
Some ways of Line Balancing:
1. Focus on the real VA time inside the process. 0
Try to remove the loading, unloading, tool B C A&D
travel time, increase the machine speed, Series 1 Series 2 Series 3
increase the depth of cut, etc.
2. Break the high cycle time activity into 2 or
more operations.
3. Combine 2 or 3 low cycle time operations.
Supermarkets

Fixed Quantity Shelf for storing materials

Supermarket in lean manufacturing is similar to a conventional supermarket, where a
predetermined quantity will only be allowed to be stored.

Wherever continuous flow is not possible (Very fast process, Supplier is very far away, one
process serving multiple product lines, etc), Super market system can be practiced. E.g. a
conventional heat treatment oven operating in Batch Production. You cannot operate it in single
piece flow. So, you may want to create a supermarket before the oven.

The supermarket icon is open on the Left side and is denoted on the supplying process. This is
because the super market belongs to Supplying process.
Supermarkets

Fixed Quantity Shelf for storing materials

The supermarket icon is open on the Left side and is denoted on the supplying process. This is
because the super market belongs to Supplying process.

Quantity stored in the

supermarket is
FIXED.
Once the quantity is
available, the previous
process stops
producing
Important Concepts: Part 2

Kanban, Pacemaker, Load Levelling, Cell Layout, Pitch

Kanban

What is a Kanban?
Kanban is a visual stock management system. It is used to maintain the inventory level. A
signal is sent to produce when the product is consumed through a card/ signboard/ visual
indicator.
A “Production” Kanban triggers production of parts, while a “Withdrawal” kanban is a
shopping list that instructs the material handler to get and transfer parts.

20

Production Kanban Withdrawal Kanban

 Supermarket and Pull System
Production
Withdrawal Kanban
What is a Kanban? Kanban

20
Supplying Customer
Process Process

A Product
B
Product

Supermarket
1. Customer Process – goes to supermarket and withdraws what it needs and when it needs it.
2. Supplying Process – produces to replenish what was withdrawn
PURPOSE: Controls production at supplying process without trying to schedule;
Controls production between flows
Pacemaker Process

Send the Production Plan (Schedule) to the Pacemaker

In batch processing, production scheduling has to be done at various levels. When using a Pull
system, you will typically need to schedule only one Production process, and this is called
Pacemaker process. Typically, pacemaker processes are present after the Supermarkets.
Material moves from the Pacemaker process to the downstream in a continuous flow
Pacemaker
Process

Process 1 Process 2 Process 3

A B C
Load Levelling

How to distribute the Production of Different products evenly?

Do not schedule long runs of one product type and avoid changeovers, It eventually creates
high WIP / FG in the shop floor.
For e.g. : Instead of assembling all the “Type A” products in the morning and all “Type B”
products in the afternoon, try to alternate repeatedly between “Type A and Type B”, else make
One hour once changeovers

A A A A A B B B B B Not OK

A B A B A B A B A B OK
Pitch

Smallest standard Quantity that can be planned in the line

▪ Normally the Carton Box Quantity can be taken as the pitch
▪ For e.g. If the final product is packed in a box of 50 , Pitch of the line is 50
The Production plan can be given in terms of the Pitch
• We can plan the line to change to another product based on the Pitch (50 Nos)
Cell Layout

▪ A Cell Layout is used when a product flows through a

dedicated set of machines / processes
▪ The cycle times of these machines are balanced in such a way A B
that no of operators are less than the number of machines
▪ I.e. An operator can load machine A, and move to the
C
Machine B for loading. He/She need not stand and watch the
machine running
▪ Sometimes the cells are designed in such a way that 1 E D
operator operates around 3 to 4 machines. He would just
move in a circle inside the cell for loading. All unloading
would take place automatically.
Seven Steps to create Future State
Future state map

What is Future state map?

A Future State Map identifies improvement to be made

to the value stream that will shorten the overall lead
time.
T I M WO O D

Always aim for a future state that is free from the lean
wastes to achieve the optimum production.
Future state map

7 Steps to reduce wastes - Future State

1. Develop Continuous flow wherever possible

2. Produce to your Takt time
3. Use Supermarkets to control production where continuous flow is not possible
4. Try to send the customer schedule to only one production process
5. Distribute the production of different products evenly at the pacemaker process
6. Create an “initial pull” by releasing and withdrawing small increments of work at the
pacemaker process
7. Develop the ability to make “Every Part Every Day” (later improve to shifts, hours , etc)
1. Develop continuous flow

Continuous Flow reduces wastes

Benefits of Continuous Flow Production

1. Less WIP means less supervisory effort
2. Better Quality as the mistakes are corrected
immediately
3. No waiting of the materials
4. Less mix-ups and handling related issues
5. Overall, we had seen an increase of 25% improvement
in productivity, because the operator’s effort in NVA
reduces (like counting, transportation, etc)
2. Produce to Takt Time
Reduce all the cycle times to less than Takt Time

This is where the line supervisors / in charges play a major role

Time and Efforts have to be spent on identifying the bottleneck activities and to reduce the cycle
times to less than the Takt Time requirements
• First level in reducing Cycle time: Focus on the Obvious wastes in the processes. Based on
the current cycle time, how much can we produce and how much we are producing now?
• Second Level: Focus on reducing the NVAs inside the cycle time. Unloading, Frequent stops in
the process, operator doing other work (counting, packing, etc.)
• Third Level: Focus Deeply on the process. Slow Speed, Excess Tool movement, Depth of cut,
etc.
3. Use Supermarkets to control production
Use Supermarkets for managing the WIP and the Flow
Whenever a process cannot be put inside a line, use supermarkets to manage the flow
1. When the machine is designed for Batch Processing - E.g. Oven for baking, Heat treatment Powder
Coating Curing machine, etc.
2. Machines with very high capacity - E.g. Press operations (Stamping / blanking, etc.) typically have 1
or 2 sec cycle times. In our experience, these machines have higher capacity than the downstream
processes.
3. Subcontracting Process - materials which go outside the walls of the company for subcontracting
4. High Cycle Time Operations - In some cases the cycle times of the process cannot be reduced beyond a
limit. In that case where this process’ cycle time is significantly higher than the rest of the process, we
have no option to move the process out of the line and put the other activities in the line. E.g. This
process has to be run 2 or 3 shifts, but the other activities can be managed in 1 shift
4. Send the schedule to only one process

Send the Production Plan (Schedule) to Pacemaker Process

In batch processing, production scheduling has to be done at various levels. When using a Pull
system, you will typically need to schedule only one Production process, and this is called
Pacemaker process. Typically, pacemaker processes are present after the Supermarkets.
Material moves from the Pacemaker process to the downstream in a continuous flow
Pacemaker
Process

Process 1 Process 2 Process 3

A B C
5. Distribute the production of different products evenly in the
pacemaker process

Load Levelling
Do not schedule long runs of one product type and avoid changeovers, It eventually creates
high WIP / FG in the shop floor.
For e.g. : Instead of assembling all the “Type A” products in the morning and all “Type B”
products in the afternoon, try to alternate repeatedly between “Type A and Type B”, else make
One hour once changeovers

A A A A A B B B B B Not OK

A B A B A B A B A B OK
6. Create an Initial Pull
How to Create an initial Pull?

What will happen if you release large batch of work?

• No sense of takt time / No pull from the downstream process
• Work happens unevenly - extra burden on people
• Difficult to monitor - are we behind or ahead of schedule?
• Responding to customer order changes becomes difficult
Start with small, consistent quantity schedules ( 5 to 60 minutes of work)
Pitch = Time taken to fill One Carton size / Bin Size = Takt time × Carton size
E.g. if takt time is 30 seconds and carton size is 20 pieces; pitch = 30X20 Sec = 10 min
Plan based on 10 min pitch. i.e. Once in 10 min there can be a change in the production. Production
plan cannot change in between.
7. Develop the ability to make “Every Part Every Day”
How to make “Every Part Every Day”?

• Shorten the Change-Over Process

• Run Smaller Batches
• Every Part Every Day
➢ Later improve to every shift, hour, pitch
Future State

The guidelines for creating future State VSM

1. Develop Continuous flow wherever possible

2. Produce to your Takt time
3. Use Supermarkets to control production where continuous flow is not possible
4. Try to send the customer schedule to only one production process
5. Distribute the production of different products evenly at the pacemaker process
6. Create an “initial pull” by releasing and withdrawing small increments of work at the
pacemaker process
7. Develop the ability to make “Every Part Every Day” (later improve to shifts, hours , etc)
 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
Tray - 25
pieces
2 shifts
High
Weekly Schedule
WIP Daily Schedule

2 x Week High 2 x Daily

Transportation

I PRESS I WELDING 1 I WELDING 2 I ASSEMBLY 1 I ASSEMBLY 2 I SHIPPING

Coils 1 5000 L 1
900 L 1 1200 L 1000 L 2500 L
200T 700 R
1 1 Staging
8 Days 3000 R 700 R 1500 R 1500 R
C/T = 1.5 Sec C/T = 50 Sec C/T = 40 Sec C/T = 30 Sec C/T = 60 Sec
C/O = 50 mins C/O = 14 mins C/O = 12 mins C/O = NIL C/O = NIL
Poor Uptime = 85% Uptime = 90%
Uptime = 85% Uptime = 95% Uptime = 95%
5S
27600 Sec 2 shifts 2 shifts 2 shifts 2 shifts
EPE = 1week 27600 sec 27600 sec 27600 sec 27600 sec

8 days 10.6 days 2 days 2.5 days 2.1 days 5.3 days 30 days
1.5 Sec 50 Sec 40 Sec 30 Sec 60 Sec
181.5 Sec

Current Value Stream Mapping

 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
Daily Schedule Tray - 25
pieces
Coil
2 shifts
20 20
C
o
BIN 20
i
l
OXOX

WELDING +
ASSEMBLY BIN
1x Daily

PRESS L
1
SHIPPING
200T
R Staging
EPE = 1 Shift
Takt Time = 74 Sec 2 days
C/O < 10 mins
C/T = 60 Secs Total
At the Work
2 days C/O < 1 Min < 180
PRESS
Uptime = 100% Sec

2 Shifts

1.5 days 2 days 2 days 5.5 days

1.5 Sec 180 Sec
181.5 Sec
 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
Daily Schedule Tray - 25
pieces
Coil
2 shifts
20 20
C
o
BIN 20
i
l
OXOX

WELDING +
ASSEMBLY BIN
1x Daily

PRESS L
1
SHIPPING
200T
R Staging
EPE = 1 Shift
Takt Time = 74 Sec 2 days
C/O < 10 mins
C/T = 60 Secs Total
At the Work
Created a Cell with 3 operators -
2 days C/O < 1 Min
PRESS < 180
Sec
combined 4 operations
Uptime = 100%
2 Shifts

1.5 days 2 days 2 days 5.5 days

1.5 Sec 180 Sec
181.5 Sec
 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
Daily Schedule Tray - 25
pieces
Coil
2 shifts
20 20
C
o
BIN 20
i
l
OXOX

WELDING +
ASSEMBLY BIN
1x Daily

PRESS L
1
SHIPPING
200T
R Staging
EPE = 1 Shift
Takt Time = 74 Sec 2 days
C/O < 10 mins
C/T = 60 Secs Total Using
Work
At the
2 days C/O < 1 Min < 180 Supermarkets for
PRESS Sec
Uptime = 100% managing the WIP
2 Shifts

1.5 days 2 days 2 days 5.5 days

1.5 Sec 180 Sec
181.5 Sec
 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
Daily Schedule Tray - 25
pieces
Coil
2 shifts
20 20
C
o
BIN 20
i
l
OXOX

WELDING +
ASSEMBLY BIN
1x Daily

PRESS L
1
SHIPPING
200T
R Staging
EPE = 1 Shift
Takt Time = 74 Sec 2 days
C/O < 10 mins
C/T = 60 Secs Total Kanban for
At the
2 days C/O < 1 Min
Work
< 180
Withdrawal and
PRESS
Uptime = 100% Sec Production
2 Shifts

1.5 days 2 days 2 days 5.5 days

1.5 Sec 180 Sec
181.5 Sec
 PRODUCTION 1/2/3 months
45 days XYZ
forecast CONTROL
ABC Company
Supplier
Daily 15000
Weekly Requirement pieces/month
ERP
Requirement 10000 –”L”
750 ft coils 5000 – “T”
Daily Schedule Tray - 25
pieces
Coil
2 shifts
20 20
C
o
BIN 20
i
l
OXOX

WELDING +
ASSEMBLY BIN
1x Daily

PRESS L
1
SHIPPING
200T
R Staging
EPE = 1 Shift
Takt Time = 74 Sec 2 days From 30 Days, the
C/O < 10 mins
C/T = 60 Secs Total
At the Work
lead time reduced
2 days C/O < 1 Min
PRESS < 180 to 5.5 days
Uptime = 100% Sec

2 Shifts

1.5 days 2 days 2 days 5.5 days

1.5 Sec 180 Sec
181.5 Sec
Benefits of VSM

The guidelines for creating future State VSM

1. Gives a clear understanding of the operations - bird’s eye view

2. VSM brings out the bottleneck activities and other wastes present in the operations
3. Helps in identifying the improvement projects that needs to be done
4. Results can be measured for the entire value stream, not for particular operations /
sections. In some companies we have seen that improvement in some sections, would not
translate into overall line improvements (because they would have worked on non-
bottleneck activities)
5. Everyone in the team can use the same language, so communication among the members is
easy
Calculation Formula for PCE

Lead Time = Value-Add Time + Non-Value-Add Time

Process Cycle Efficiency in % = Value-Add Time / Lead Time

Where,
Value-Add Time = Time spent in ‘In-Progress’ process states.

Non-Value-Add Time = Time work sits in the backlog, the time work is waiting for value-add
work to begin, and of course, it includes the time work is blocked. Let’s also not forget time
work is sitting because defects are being remediated.
Calculation Formula for PCE

Example:
Calculate PCE if

•Lead Time = 155.1 days

•Value Added Time = 15.1 days

• Non Value Added Time = 140 days

Process Cycle Efficiency in % = 15.1/155.1 = 9.7% PCE