Six Sigma

Analyse Phase
BITS Pilani Rama Mohan KV
Faculty Department
Pilani Campus

Session 10 12th march’2021

 BITS Pilani
Pilani Campus

< MM ZG539/QM ZG539, Six Sigma>

Lecture No. 10
Analyse Phase

• Value Stream Mapping

• Spaghetti Charts

BITS Pilani, Pilani Campus

Value stream mapping is a lean management tool that helps
visualize the steps needed to take from product creation to
delivering it to the end-customer. As with other business
process mapping methods, it helps with introspection
(understanding your business better), as well as analysis
and process improvement.
A value stream map allows you to see a top-down overview of
your business processes. Then, you can analyze the process
or workflow, identifying wastes and inefficiencies. Typically, here’s
a couple of things you’d want to be on the lookout for:
– Delays that hold up the process
– Restraints that limit the process
– Excess inventory that ties up resources unproductively
– While value stream mapping is usually used for
manufacturing processes, the same principles can apply to
other industries too.
 Why do Value Stream Mapping?
• Understand current situation — big picture point of view.

• Show the ratio of non-value added to value added time.

• Expose sources of waste — not just waste.

• Show linkage between the different types of flow.

• Develop and prioritize action plan for waste removal

Forms the Blueprint for a Lean Implementation Plan

Step #1: Decide How Far You Want to Go
• Typically, you would start your mapping by indicating a start and end point.
This would show where your internal process begins and ends. Some
companies, however, prefer to map out the entire value chain. This, of
course, has it’s pros and cons – while it does give you a better idea of the
whole process, there’s usually not much you can do about any external
processes.
• Your average value stream map begins with the delivery of materials from
direct suppliers and ends with delivery to the customer. Place the icon you
have chosen to represent your starting and ending points on the left and
right of your map.
• If your production processes are complex, you might decide to map each of
the value-adding processes in greater detail after completing your overall
map. In this case, you would start with the process that allocates the work as
“supplier” and the process that receives it as the “client.”
Step #2: Define the Steps
• Now determine what processes are involved in order to get from point A to
point B.
• As a simple example, a nursery producing ornamental plants begins with
seed from a supplier and delivers plants to a customer. Intervening steps that
add value along the way might include:
– Sowing
– Transplanting
– Growing
– Grading
– Shipping
Step #3: Indicate the Information Flows
• One of the advantages of value stream mapping is that it includes
information flows. To continue with the example above, our plant nursery
needs to place orders for its suppliers and its customers will place orders for
delivery. How often is this done and how? Record it on your map.
• The teams or individuals responsible for each process that takes the product
from input to output also need information. Where does it come from and
how is this information passed on? Perhaps our flower grower has a
centralized planning department which receives sales information and places
orders with the seed supplier. It then uses this info and provides a weekly or
monthly schedule for each of the processes.
• Add this department in the middle of the sheet between the input and
output blocks, draw another block below it to indicate the weekly plan, and
draw arrows from the plan to each of the departments it informs.
Step #4: Gather the Critical Data
• You now have the basics, and it’s time for an in-depth look at each process.
To do so, you need real data and some of your mapping team might have to
spend a little time collecting the information you need. Typical points to look
at would include:
– The inventory items held for each process
– The cycle time (typically per unit)
– The transfer time
– The number of people needed to perform each step
– A number of products that must be scrapped
– The pack or pallet size that will be used
– The overall batch size that each step handles
Step #5: Add Data and Time Lines to the Map
• Once you have all the information, you can start adding it to your map. Draw
a table or data box under each process block to do so. If you’ve used
historical data, be sure to verify it using the current inputs and outputs for
each process.
• Indicate the timeline involved in each process beneath your data blocks. This
shows the lead time needed to produce products and the actual time spent
on producing each unit, pack size, or batch. Don’t be surprised if a product
with a lead time of weeks takes just a few hours to produce.
Step #6: Identify the Seven Wastes of Lean
• Just creating a value stream map without using it would be a complete waste of time. Now
that you have one, it’s time to start looking for the “seven wastes” that could be eating up
your profits.
• Transport doesn’t add value to your final product – unless you’re in the transport business!
See if you can reduce steps involving transport of materials or information that don’t add
value.
• Inventory of inputs and finished products costs you money which could have been earning
income elsewhere. The lower your inventory levels can be without stonewalling production,
the better it will be.
• Motion costs time and time is money. As an example, our nursery worker has to move her
transplanted seedling 10 feet from the potting table to the tractor wagon. That’s wasted
time.
• Waiting because there’s a bottleneck in a previous process or sub-process is another clear
waste of valuable resources.
• Over-processing can be hard to gauge, but if an item can move from one process to another
in an acceptable condition with less input, it should do so.
• Overproduction is an additional pitfall to avoid. Even if your product isn’t perishable, storing
it and monitoring it until such time as a customer buys it is clearly a waste.
• Defects mean reworking or scrapping and are clear money-eaters. How can you reduce
defects in each step of the process you’ve mapped?
Step #7: Create the Ideal Value Stream Map
• You know how things are if you maintain the status quo, but how would you
like them to look? Use your team to help you map out an ideal value stream
map that eliminates, or at least reduces, all the wastes you spotted when
analyzing the results of your value stream mapping exercise.
• It’s unlikely you’ll be able to get there in one step, so you can create a series
of intermediate future state maps. Your business would aim to reach these
milestones at specific dates, and ultimately, they’d reach the goal you
identified when you drew up your ideal state map.
• What should you do now? Start the mapping process all over again! Few
processes are so perfect that there’s no more room for improvement! Your
aim is nothing less than operational excellence.
 Value Stream Mapping Process

select product family current state future state plan and

to map drawing drawing implementation

Understanding how the value stream Designing a leaner flow.

currently operates. The foundation
for the future state.
Levels of a Value Stream
Process
ProcessLevel
Level Balance charting and ‘cell’ design

Single
SinglePlant
Plant
((door-to-door
door-to-door))
Start Here!

Multiple
Multiple Plants
Plants Macro Mapping

Across
Across Companies
Companies Macro Mapping

Can Be Used at Any Level in the Business

How Do We Start?

1 Product/Process
Product/Process  Identify the Value Stream for the product
or process being worked on.

Current
CurrentState
State  Map the current state. Identify all the
2
Drawing
Drawing actions that don’t create value.

Future
FutureState
State  Develop and map concepts for the future
3 Drawing
Drawing state with stakeholders and process
participants.

4 Implementation
Implementation
Plan  Define actions and drive toward the future
Plan state.
 Value Stream Mapping – Two
phases
A. Follow a product or service’s production path from
beginning to end and draw a visual representation of
every process in the material and information flows.

B. Then draw (using icons) a “future state” map of how

the value should flow.
 From Process Map to Value
Stream Map

• Using the standard icons for a process of a Value

Stream Map, translate your Process Map into a
working “Current State Value Stream Map.”

• Add to the Map: data boxes, information flow,

transportation flow, inventory location, waiting etc.
 Value Stream Mapping Symbols
Process Icons Represents Notes
Process Step

Step in the Process One box equals an area of continuous

flow. All processes should be labeled.

Used to indicate when the process leads to or

Outside Sources comes from a customer, supplier and/or
ABC outside process.
COMPANY

C/T=120 sec.
C/O=22 min.
Used to record information concerning
3 SHIFTS a process, department,etc. Placed beneath each step
W/T=20 hrs
Process Data Box in the process.
3% SCRAP

Placed in Process Map to indicate inventory level,

noting count and days of inventory (time it would take
I Inventory to process the current inventory level or queue at the
225 pieces
1.5 days current production rate).

Indicates frequency and timing of shipments

Daily
(inputs or outputs to the process).
6:00 am Shipment of Materials
Value Stream Mapping Symbols
Process Icons Represents
Air shipment
Movement of production
material by PUSH
Movement of finished
goods to next
user/customer by PULL
Supermarket (Storage)
Physical pull
Transfer of controlled
FIFO quantities of material
between processes in a
First In/First Out sequence
Notes
Use icons to represent the shipping method, as
an aid to understanding potential cost or time
drivers.
Identifies material movements pushed by
producer, not pulled by the customer.
Can also be used to indicate movement of
material and components from suppliers if
they are not pushed.
Used to indicate when the supermarket system of
storage is being implemented to manage variation in
inventory (e.g., queue of customer calls, stored
inventory).
Used to indicate when materials are pulled from a
supermarket storage system. Placed in the Process
Map between the process steps.
Used to indicate when a FIFO system is
implemented to limit quantity and ensure FIFO flow
of material between processes. Symbols indicate
variety of parts in process and the sequence within
which they are pulled.
Value Stream Mapping Symbols
Information Icons Represents Notes

Manual flow of For example: production schedule, shipping

schedule, loan application.
information

Electronic flow of For example: EDI, Fax, phone, email, etc.

information

Weekly Information Describes an information flow. Is placed on

Schedule the line indicating flow of information.

Used to indicate when load leveling is used in

OXOX Load leveling production to meet unexpected changes in
customer demand. X’s and O’s indicate
different products.
Value Stream Mapping Symbols
General Icons Represents Notes

Lathe
Changeover Change needed Highlights critical improvement needs
at specific process steps.

Buffer or Indicates the amount of “safety stock” kept in

inventory to ensure that production is not halted
safety stock by problems in shipments; placed on map
wherever this storage resides.
Example
Forecast Production Forecast
Control
Supplier Weekly Weekly Customer
order order
Weekly Schedule

Daily Weekly

Cut Sew Pack Ship

I 1 I 1 I 1 I 1
5 days 200 400 150
PT = 60 sec PT = 45 sec PT = 90 sec
CT = 60 sec CT = 45 sec CT = 90 sec
UT = 100% UT = 100% UT = 80%
CO = 0 CO = 10 min CO = 15 min
 Disclaimer: Mapping and creating a future state
is not an exact science. If your analysis looks a little

Example
different than this it doesn’t mean that it’s wrong!

Central Engineering
Customer Database software Customer

Clarification

Design Quote Email

Stored Quote
Email Log
Specs File

Clarification Clarification
Clarification

Duplication!
data re-entry Searching Waste
5S Needed
Section Section Section
Email/Voicemail Outbox Inbox Inbox Inbox Inbox Inbox Inbox

File Prep Design Eng BOM Validation Quote Prep

I W I I I W I I W W I I
4 Estimates Meeting 3 Files 7 Files 2 Files Clarify 7 Files 3 Files Clarify Meeting Inbox 4 Files
0.5 Hours 3 Hours Finished 3 Hours 2 Days 2 Days 5 Hours 2 Days 1 Day 1 Day ½ Day 8 Hours
PT = 10 Min PT = 5 Hrs PT = 3 Hrs PT = 2 Hrs
1 Sales Rep 1 Engineer 1 Purchase 1 Sales Rep
Analyst
Total
0.07 Days 3 Hrs 3 Hrs 2 Days 2 Days 5 Hrs 2 Days 1 Day 1 Day 0.5 Days 1 Day 11 Days

Total
10 Min 5 Hrs 3 Hrs 2 Hrs 10 h 10 m

Estimating Process
Heat Sinks
Current State
November 14th, 2001
Example
Focus on one product/service family
Based on similar ‘downstream’ steps
Process Steps & Equipment
Step Step B Step C Step D Step E Step F Step G
A

Collections
(Equipment) X X X X
Collections
(Field X X X X
Service

Service)
AP (PO)
X X X
AP (Face
Approved) X X
Accounts
Receivable X X X
Takt Time
Synchronizes the pace of
production to the pace of sales
The rate of production based on
customer demand

Effective working time per shift

Takt Time =
Customer demand per shift

460 minutes
= = 1 min
460 pieces
• What is the takt time?
– Takt is the German word for the baton a conductor uses to control his orchestra’s speed, beat, and timing. Takt
time refers to how frequently a part or component must be produced to meet your customers’ demand. The
formula is the time available (per shift) divided by the demand (per shift). For example:
• 22,000 seconds (time available)
• ÷ 200 pieces (demand)
• = 110 seconds/piece
• Are there bottlenecks or constraints?
– From the data collection during the kaizen, look at the cycle times or processing times. If any of these are greater
than your takt time, you have a candidate for a bottleneck or constraint. This may be causing overproduction
waste or work in process (WIP) in some areas, or extra processing time, such as overtime, to meet demand.
• Where can inventory (or queue time) be reduced or supermarkets used?
– A supermarket is a controlled inventory system—the downstream process removes items from the shelf and the
process owners upstream replenish that amount to the supermarket.
– Look at raw material, WIP, buffer stock, safety stock, and finished goods inventories to see whether these can be
reduced. Does it make sense to put in a supermarket replenishment system?
– The key is to find ways to reduce inventory in a logical manner. Also look for opportunities for paperwork to flow
and not sit around, like in batching.
• Where can you improve flow?
– Is it possible to put materials into a cell or eliminate materials from stopping and waiting? If flow improvement
isn’t possible, could a "first in, first out" lane be established between processes?
• What other improvements are required?
– For instance, does the reliability of equipment need to be improved? Are the first pass yield or quality levels
acceptable? Is training in 5S (workplace organization) needed? Does a new layout for an area need to be created?
• On the VSM, place a kaizen burst (a sticky note or thought bubble) around any items to signal improvement is needed.
Items may include low equipment reliability or first pass yield; long changeover times; large batches; any waste such as
overproduction, motion, transportation, waiting, defects, or adjustments; and over or extra processing.
 Sphagetti Diagram
• A spaghetti diagram is defined as a visual representation using a
continuous flow line tracing the path of an item or activity through a
process. As a process analysis tool, the continuous flow line enables
process teams to identify redundancies in the work flow and
opportunities to expedite process flow.
• For example, areas where many walkways overlap are causes of
congestion and delay. Waiting is one of the eight wastes of lean,
because it is considered "unnecessary motion." The spaghetti diagram
helps highlight major intersection points such as these that may not be
noticed otherwise.