Value Stream Mapping

Value Stream Mapping (VSM)

 To have good value proposition both Material and Information must flow together

1. VSM is used when there is an established process under investigation.

2. The primary benefit of using VSM is the ability to visualize the entire process instead of
single, isolated processes.

3. Traditionally, activities are focused on improving individual operations which may or

may not impact the overall value stream.

4. In the value stream approach however, improvement activities are prioritized depending
on their effect on the overall process.
 Symbols used in Value Stream Mapping

(employees)
I

Inventory Transportation Customer Supplier

Kaizen
Manual Electronic Operator /
Information Information Material flow employee
Kaizen Burst

Printing
NVA 3 People
NVA
C/T = 60 min
VA C/O = 120 min
Batch = 1000 sheets
Uptime = 70%

Time line / Queue Times Total Lead time

Process Box
 Cycle Time (C/T) - Rate at which a product is completed by a process.

 Changeover Time (C/O) - Time to switch from one product type to another.

 Uptime - Measure of machine use (100% = Always running).

 Every Part Every Interval (EPEI) / Heijunka - Batch sizes and changeover Cycle.

 Available Work Time - Per shift of a process (in seconds, minus break, meeting, and cleanup times.)

 Quality Level - % First time yield.

 Number of Operators - Required personnel for a process.

 TAKT Time – Net available time / customer demand

 Production / Manufacturing Lead Time (MLT) - Time for entire production.

 Process Lead Time - Lead time though each process, including time in inventory (waiting time).

 Processing Time = Value Added Time. Actual time spent processing the part
Steps in VSM
 Step 1 - Go to Gemba (Walk the Process) and work
Backwards
 Step 2 - Track only one path of “Value Stream.”
(Select a product family to examine)
 Step 3 - Define the basic Value Stream and fill in the
process data
• Process name
• Number of people
• Process Cycle Time
• Changeover Time
• Pace / TAKT Time / Rate
• Uptime / batch size
 Step 4 – Fill in the queue time (VA and NVA time
line)
Steps in VSM
 Step 5 – Add the Value Added Percentage (%VA)
• Identify,
• Bottlenecks / Constraints
• Long Process Cycle Times
• Poor Uptimes
• Excessive Setup Times
• Poor Quality / Rework
 Step 6 - Identify the improvement areas and draw the future state map
 Step 7 - Proceed to implement changes within one segment at a time.
• The work plan should have measurable goals as well as checkpoints.
Door – Tech Value Stream Mapping case
A building materials company in Bengaluru orders 12,600 PVC extrusion molded doors
every month by e-mail to Door-tech, Hyderabad.
• The doors are sent weekly by truck to Bengaluru.
• Door-tech production department receives internal order on daily basis.
• PVC granules are purchased from Reliance Industries and granules are delivered to Door-
tech once a week.
• Door-tech runs the door mold for 30 days a month @ one shift per day one break of 30
minutes and two breaks of 15 minutes each.
• Door making process consists of three activities; molding, sub assembly and final
assembly.
• Find out
• Whether the company will be able to meet the demand ?
• How many days inventory is being carried by the company ?
 Value Stream Mapping - data collected during walk though
Demand = 12,600 / 30 = 420 doors / day
Actual working 7 hrs / day = 7 x 60 = 420 minutes
Takt-Time = 420 / 420 = 1 minutes or 60 secs.

 Data collected during walk through

• They found raw material inventory of 1,890 pcs
• There are 2 employees at molding station
• Molding produces 50 components / hour =
• processing time (PT) = 60 x60 / 50 = 72 secs
• Cycle time for molding = (72)/2 = 30 secs (ignoring the set-up time)
• Note: if set up time is considered on molding machine as = 15 minutes = (15X60) / 50
18 secs. then cycle time for molding = (72+18)/2 = 45 secs.
 Value Stream Mapping - Value track to reduce bottleneck 12,600 doors /month (20days)

Weekly order monthly order Customer

Supplier Door-Tech
Reliance
Ind.
daily schedule
Weekly
delivery
Production Supervisor

ule
edule
Dai weekly delivery
h ly

d
Sc Sch
Daily
Daily

he
edu

Sc
le

ily
Da
Molding Sub Assly.
Final Assly.
2 FTE 1 FTE
3 FTE
P/T 72 ec P/T
I I I I
C/T 36 sec 945 C/T
PVC for molded parts
1890 S/T 75 min S/T
doors
Util. 90 % Util.
Value Stream Mapping - data collected during walk though

• Average set up time on molding machine is = 15 minutes

• Batch size is not known, so simply take set up time as a note
• Capacity utilization of molding section / station =
• time required / time available = 72 x 420 / 2 x 7 x 60 x 60 = 0.60 = 60%
• Capacity utilization = C.T/T.T = 36/60 = 0.6= 60%
• At the end of the molding cycle there were 945 components
 Value Stream Mapping - Value track to reduce bottleneck 12,600 doors /month (20days)

Weekly order Six weeks order Customer

Supplier Door-Tech 630 / day
Reliance Ind.
takt time = 40 secs.
daily schedule
Weekly They found raw material inventory of 1890 pcs 7 x60 x60= 420 /630
delivery
Production Supervisor = 40 secs

S ch e dul e Dai
ly Shipping

ule
Daily
Sch Daily
e dule

ed
Sch
ily
Da
Molding Sub Assly.
Final Assly.
1 FTE
3 FTE
P/T P/T
P/T
C/T C/T
I
C/T
S/T I S/T I I
PVC S/T
for Util. Util.
945 Util.
1890
molded parts
doors
Value Stream Mapping - data collected during walk though
• At sub assembly they found that one employee working and producing 45 sub
assemblies every 30 minutes.
• PT = 30 x60 = 1,800 / 45 = 40 sec
• CT = PT = 40secs.
• S/T = 25 mints
• Capacity Utilization = CT/TT = 40/60 =0.66 = 660%
• Inventory after sub assembly = 630 pcs

• At assembly = They found 3 FTE, one employees is assembling 4 boxes of 5

components 30 minutes
• PT = 30 x 60 = 1,800/ 4x 5 = 90 secs
• CT = 90 / 3 = 30 secs
• C/U = 30/60 =0.50 = 50%
• S/T = 0
• Inventory = 300 boxes of 5 components = 1,500 pcs
 Value Stream Mapping - Value track to reduce bottleneck 12,600 doors /month (20days)

r
Weekly order Six weeks orde Customer
Supplier Door-Tech
Reliance 4200 / day
Ind. takt time = 40 secs.
daily schedule
Weekly
delivery
Production Supervisor

ule
edule
Dai weekly delivery
h ly

d
Sc Sch
Daily
Daily

he
edu

Sc
le

ily
Da
Molding Sub Assly.
Final Assly.
2 FTE 1 FTE
3 FTE
P/T 72 sec P/T 40 sec
P/T 90 sec
I I I I
C/T 36 sec 945 C/T 40 sec
C/T 30 sec
PVC for 630 1500
molded parts S/T 25 min
1890 S/T 75 min sub- assemblies S/T 0 sec finished parts
doors
Util. 90 % Util. 100%
Util. 75%
3 days 1.5 days 1.0 days 2.4 days
72 sec 40 sec 90 sec total PT = 202 sec
 Value Stream Mapping - data collected during walk though

• Time line
• Total Process Time = 72 + 40 + 90 = 202 secs
• Inventory days at = 1,890 / 420 = 4.5 days
• Inventory before sub assembly = 945 / 420 = 2.25 days
• Inventory before final assembly = 630/420 = 1.5 day
• Inventory after final assembly = 1,500 /630 = 3.5 days
• Total time required to deliver all the raw material converted and delivered to customer
• = 4.5 days + 2.25 days + 1.5 day + 3.5 days = 11.75 days
Improvement (Kaizan)
 what are the non-value adding activities / type 2 muda in the system
1. Proportion of value adding and non value adding time = 7.9 days vs 202 secs
2. Inventory in the system at every process step is uneven
3. Uneven utilization at every process step (uptime)
4. Uneven information = six weeks fore cast, daily schedule and weekly order placement to
supplier
5. Raw material delivery and finished goods delivery is weekly
 Process metrics for different aspects of value stream
• Value – Does elimination of step affect value for customer ?
• Available – Does process consistently provide good out-put ? measure scrap and rework
• Capable – To what extent is the process up running when needed ? track availability
• Adequate – Does the capacity of the process match demand rate – Asses utilization
• Flexible – Can the processes efficiently switch from one product to another ? consider
change over
 Value Stream Mapping 12,600 doors /month (20days)
Kaizen
r
Weekly order Six weeks orde Customer
Supplier Door-Tech
Reliance 630 / day
Ind.
daily schedule
Weekly
delivery
Production Supervisor

ule
edule
Dai weekly delivery
h ly

d
Sc Sch
Daily
Daily

he
edu

Sc
le

ily
Da
Molding Sub Assly.
Final Assly.
2 FTE 1 FTE
3 FTE
P/T 72 sec P/T 40 sec
P/T 90 sec
I I I I
C/T 36 sec 945 C/T 40 sec
C/T 30 sec
PVC for 630 1500
molded parts
1890 S/T 75 min S/T 25 min sub- assemblies S/T 0 sec finished parts
doors
Util. 60 % Kaizen Util. 66%
Util. 50%
3 days 1.5 days Kaizen1.0 days 2.4 days
Kaizen
72 sec 40 sec 90 sec total PT = 202 sec