Value Stream Mapping

Based on the techniques described in “Learning to See”

by Mike Rother and John Shook
Workshop Agenda

 Introduction
 VSM Overview
 Learn the what’s, why’s, and how to get started
 Take the Shop Floor
 Walk to understand the flow of product and information from door-to-door
 Create our VSM

 Outcome
 Current State VSM
 Priority of activity to enable our future state and reduce lead time for a
product family
 Learn to communicate using a common tool across all plants
What is Value Stream Mapping?

 Tool to help visualize material and information flow, door to door

within a plant
 Method to capture value and non-value adding steps
 Technique to capture current state and identify planned future state
Why Value Stream Mapping?

 Makes material and information flow visually

 Makes system waste easier to see
 Utilizes symbols to create a common language
 Uncovers material and information flow opportunities
 Forms the basis of an implementation plan
 Shows the linkage between the information flow and the material flow
Material & Information Flows

 Material and Information flow are two important elements of

production flow. Both must be considered when trying to improve
production flow.

 Desire – Develop information flow that triggers one process to make

only what the next process needs.

Information

PRODUCTION FLOW
Material
Value Stream Mapping as an Improvement
Process

Product Family

Current State Drawing

Future State Drawing

Improvement Plan
Identify Product Families

 Let the end customer (finished product) guide families

 Typically, product families
 Share common process steps
 Share common equipment
 Are not based upon upstream fabrication steps

 Create product matrix as necessary

Getting Started

 Select the product family that you intend to map

 Familiarize everyone with a quick walk (door-to-door)
 Have one person lead the mapping effort
 Record data as you walk
 Begin at shipping and walk upstream
 Walk both material and information flows
 Map the entire system your self – DO NOT SUBDIVIDE!
Drawing the Current State - Customer

Current State Map

Motors Inc., Plant 1
 Start with customer factory icon in the upper Best Customer
Corporation
right hand corner

18000 pcs/mo
 Fill data-box with important shipping 12000 Black
information 6000 Silver
Tray = 100 pcs
 Demand (pcs/month) 2 Shifts
 Mix
 Shipping frequency (x/day, x/week)
 Standard shipping container quantity
 Number of shifts customer operates
Drawing the Current State - Customer

Current State Map

Motors Inc., Plant 1
 Create a process box for each area of material flow Best Customer
(connected stations grouped together even if not single Corporation
piece flow)
 Disconnected processes get a separate box
 Process data box (underneath process box) 18000 pcs/mo
12000 Black
 Cycle time 6000 Silver
 Changeover time Tray = 100 pcs
 # of Operations 2 Shifts
 Working time
 OEE
 Scrap Rate

Stamping Winding Assembly Test & Pack Shipping

2xOps 4xOps 9xOps 7xOps 2xOps

C/T = 3 secs C/T = 12 secs C/T = 3 secs C/T = 8 secs

C/O = 30 min C/O = 10 min C/O = 30 min C/O = 5 min
1 Shift 2 Shifts 1 Shift 2 Shifts
1% Scrap 2% Scrap 1% Scrap 5% Scrap
Drawing the Current State –
Transportation & Inventory
Steel
Unlimited
Current State Map
Motors Inc., Plant 1
Supplier icon for primary component Best Customer
Corporation

Steel Coils
18000 pcs/mo
6 coils/track
12000 Black
6000 Silver
Tray = 100 pcs
2 Shifts
Broad arrow in direction of flow (pull)

Mon + Wed

Truck icon between customer and shipping Mon + Wed

(boat/air/train icon as needed)

Stamping Winding Assembly Test & Pack Shipping

I 2xOps I 4xOps I 9xOps I 7xOps I 2xOps
10 Coils 10 Coils 10 Coils 10 Coils 10 Coils
1 Week 1 Week 1 Week 1 Week 1 Week
C/T = 3 secs C/T = 12 secs C/T = 3 secs C/T = 8 secs
C/O = 30 min C/O = 10 min C/O = 30 min C/O = 5 min
1 Shift 2 Shifts 1 Shift 2 Shifts
1% Scrap 2% Scrap 1% Scrap 5% Scrap

Warning Triangle to capture inventory

(record amount and mix below triangle)
Drawing the Current State – Information
Flow

 Process box for information control point

 Note MRP, etc.
 Thin arrow for information flow
 “Lightning” arrow for electronic information
 Include scheduling goals
 Forecasts
 Daily ship schedules
 Faxes
 EDI
 “Go See” scheduling
Drawing the Current State - Timeline

 Draw timeline under process and inventory triangles

 Production lead times in days
 Inventory divided by daily customer requirement
 Add value-add items under process boxes
 Calculate total production lead time
 Calculate total value-added time

Note: Production lead time is not the same as inventory days.

Drawing the Current State - Customer

Current State Map

30/60/90 Day
Steel Motors Inc., Plant 1 Forecast Best Customer
Unlimited 30/60/90 Day Corporation
Forecast
Steel Coils Production Control 18000 pcs/mo
6 coils/track
12000 Black
Weekly Fax Daily Schedule
MRP 6000 Silver
Tray = 100 pcs
2 Shifts

Weekly Schedule
Mon + Wed
Mon + Wed

Daily Ship

Stamping Winding Assembly Test & Pack Shipping

I 2xOps I 4xOps I 9xOps I 7xOps I 2xOps
10 Coils 10 Coils 10 Coils 10 Coils 10 Coils
1 Week 1 Week 1 Week 1 Week 1 Week
C/T = 3 secs C/T = 12 secs C/T = 3 secs C/T = 8 secs
C/O = 30 min C/O = 10 min C/O = 30 min C/O = 5 min
1 Shift 2 Shifts 1 Shift 2 Shifts
1% Scrap 2% Scrap 1% Scrap 5% Scrap
Production Lead Time
1 Day 1 Day 1 Day 1 Day 1 Day = 5 days

Value-Added Lead
45 secs 45 secs 45 secs 45 secs Time = 180 secs
Characteristics of a Lean Value Stream

 Produce to Takt time

 Fast response (within takt) to problems
 Eliminate causes of unplanned downtime
 Minimize changeover time
 Eliminate over-production
 Develop continuous flow
 Single piece part transfer
 Reduce WIP
 Combine operations
Characteristics of a Lean Value Stream

 Use “supermarkets” to control production where continuous flow

does not extend upstream
 Some processes are designed to operate at very fast or slow cycle times
and need to change over to serve multiple product families
 Some processes, such as those at suppliers, are far away from shipping,
one piece at a time is not realistic
 Some processes have too much lead time or are too unreliable to couple
directly to other processes in a continuous flow
Characteristics of a Lean Value Stream

 Send schedule to one point (pacemaker/constraint)

 Pacemaker controls the production pace
 Level production mix at pacemaker
 Reduce run/batch sizes
 Reduces pull inventory requirements
 Develop pull by releasing & withdrawing small consistent increments
of work at the pacemaker process
 Use pull signal to schedule production
 Build every part every day/shift/hour in the process upstream of the
pacemaker loop
 Minimize changeover times
Drawing the Future State – Preparation

Key Questions for the Future State

 Demand
 What is the Takt time, based on the available working time of your
downstream processes that are closest to your customers?
 Will you build to a finished goods supermarket from which the customer
pulls, or directly to shipping?

 Material Flow
 Where can you use continuous flow?
 Where will you need to use supermarket pull systems in order to control
production of upstream processes?
Drawing the Future State – Preparation

Key Questions for the Future State

 Information Flow
 At what single point in the production chain (the pacemaker process) will
you schedule production (remember that all material transfers downstream
of the pacemaker process need to occur as a flow)?
 How will you level the production mix at the pacemaker process?
 What increment of work will you consistently release and take away at the
pacemaker process?
Drawing the Future State – Preparation

Key Questions for the Future State

 Supporting Improvements
 What process improvements are necessary to enable the future state?
 Cycle time, machine uptime, C/O time, productivity
 What improvements will reduce production lead-time?
 Reduce inventory, combine operations, eliminate NVA activities
Drawing the Future State – Preparation

 Complete the future state map by reviewing:

 All material flows
 Present and correct
 All information flows
 Present and correct
 All improvement needs
 Listed and lightening bursts
Achieving the Future State

The plan for achieving your future state value stream can be a
compact document that includes the following items:

 Current State Map

 Future State Map
 Detailed process level maps or layouts as necessary
 A yearly value stream plan
Value Stream Mapping Icons

The icons and symbols for current and future state mapping fall into
three categories: Material Flow, Information Flow, and General

Material
Assembly One process box equals an area of flow. All processes
Manufacturing Process should be labelled. Also used for departments, such
as Production Control

Used to show customers, suppliers, and outside

Outside Sources
manufacturing processes

C/T = 3 secs
C/O = 30 min Used to record information concerning a
1 Shift Data Box
manufacturing process, department, customer, etc.
1% Scrap

I Inventory Count and Time should be noted

Value Stream Mapping Icons

Information

Material Information Flow Production Schedule or Shipping Schedule

Electronic Information Flow Electronic Data Interchange

Daily Schedule Information Describes an Information Flow

Production Kanban The “one-per-container” kanban. Card or device that

20 (dotted line = Kanban flow)
tells a process how many of what can be produced
and gives permission to do so

Card or device that instructs the material handler to

Withdrawn Kanban get and transfer parts from the supermarket to the
consuming process
The “one-per-batch” Kanban. Signals when a
reorder point is reached and another needs to be
Signal Kanban produced. Used where supplying process must
produce in batches because changeovers are
required
Value Stream Mapping Icons

Information

Gives instructions to immediately produce a

predetermined type and quantity, typically one unit.
Sequence Pull Ball
A pull system for subassembly process without
using a supermarket

Place where kanban are collected and held for

Kanban Post
conveyance

Kanban Arriving in Batches

Tool to intercept batches of kanban and level the

XOXO Load Leveling
volume and mix of them over a period of time

“GO See” Production Adjusting schedules based on checking inventory

Scheduling levels
Value Stream Mapping Icons

General

Highlights improvement needs at specific processes

C/O Kaizen Lightening Burst that are critical to achieving the Value Stream vision.
Reduction
Can be used to plan Kaizen workshops

Buffer or Safety Stock Buffer or Safety Stock must be noted

Operator Represents a person viewed from above

Value Stream Mapping Icons

General

Truck Shipment Note frequency of shipments

Material that is produced and moved forward before

Movement of Production
the next process needs it, usually based on
Material by Push
schedule

Movement of Finished Goods

to the Customer

A controlled inventory of parts that is used to

Supermarket
schedule production at an upstream process

Withdrawal Pull of materials from a supermarket

Transfer of Controlled Indicates a device to limit quantity and ensure FIFO

Quantities of Material Between flow of material between processes. Maximum
FIFO Processes in a FIFO Sequence quantity should be indicated
Lean Enterprise

Transformation Plan
Transformation Plan

Provides direction and priority to…

 Create & improve flow of products or services

 Reduce inventories and operational expenses

 Create space for growth (increased sales)$$

Transformation Plan

How To:

1. Identify all product families within the facility

2. Segment the plant into different areas (processes and equipment) and
label A – Z
3. With cross functional leaders, walk the flow to understand operations
and illustrate the flow (remember spaghetti diagram)
4. Prioritize and develop a plan of execution with timing
• Use criteria (missing requirements, dual sourcing, 24/7, capacity
constraints for future volume increases)
• Communicate the targets (organize around the transformation plan)
Product / Process
Flow
A
B (42)
C
D
E
F (46)
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Implementation Timing

2004 Y - 2006

2005 N- 2005
E – 2006

on V
2006 H– March to i
t - 2005
December 2004
t aJ
n
e L - 2004
Z m
e K - June to
P – 2006 Aug to
pl e
Dec
F - Feb to i n December 2004

im Mel
2004
Oct 2004
G d
e t i m2005
2005
s X - 2006
p o Q S
O - 2005 ro 2005
R T
U P
W
D – Sep to Dec 2005
2004
A – Jan. to B – Feb to I – 2005 Q
April 2004 June 2004
C – March to Dec
2004