13. value stream mapping

LEANSIX SIGMA

1

SL SVALUE STREAM MAPPING

(CURRENT & FUTURE STATE)By: -

Hakeem–Ur–RehmanMS-TQM, M.I.O.M(Operations Research)

Certified Six Sigma Black Belt (Singapore)Lead Auditor ISO 9001 (UK)

IQTM–PU

A visual representation of every process in the material and information flow of a product’s path from customer to supplier.

What is a Value Stream Map?

Information Flow

Start with the Customer

Material Flow

What is VSM?

According to Womack and Jones, the authors of the book Lean Thinking, management must change their focuso From:

o departmentso functionso firms o existing assets and technologies

o To: o the value stream for specific products

A Value Stream is all the actions (both value added and non-value added) required to bring a product to the customer. It is:

“Big Picture”, not individual processes Improving the whole, not just optimizing the parts

What is VSM?

Value Added and Non Value Added Value Added Activity

Transforms or shapes material or information or people And it’s done right the first time And the customer wants it

Non-Value Added Activity – Necessary Waste No value is created, but cannot be eliminated based on

current technology, policy, or thinking Examples: project coordination, regulatory, company

mandate, law

Non-Value Added Activity - Pure Waste Consumes resources, but creates no value in the eyes of

the customer Examples: idle/wait time, inventory, rework, excess check

offs

A Value Stream is all the actions (both value added and non-value added) required to bring a product to the customer.

Highlights Sources of

Waste

Emphasizes Material

and Information Flow

Uses

Link Individual Processes to their Customer(s) by Continuous Flow or Pull

Each Process Produces only what its Customer needs when they need it

Goals

Value Stream Mapping

TWO KINDS OF KAIZEN

Three Types of Value Streams

RawMateri

al

PROCESS

VALUE STREAM

Finished

Product

PROCESSPROCESS

Stamping Welding

Raw Material to Finished Product

Research Engineering Production

VALUE STREAM

Concept New Product

Concept to Launch

Product Costing

Ordering Accounting Payables

VALUE STREAM

Product Sale

Order to Cash

AssemblyCell

VALUE STREAM

FinishedProduct

RawMaterial

VSM methods are also used tomap business processes

ASSEMBLYLayout

Stamping Process Machining Process Assembly Process

Value StreamPlant Value Stream

Typically we examine the value stream in a plant - from raw materials to finished goods.

Custo-

mer

Implementation without a plan will lead to disaster

A Value Stream Map is a simple visual tool that helps you see the flow, find the waste and

develop an improved process.

Eyes for Waste . . . . . . Eyes for Flow

Why do it?

Clinic Supplies

Syringes

X RayFilm

Regional SupplyManager

Clinic Manager

ClinicPerformance

SupplyForecast

FrequentDelivery

VP Performance

ClinicPerformance

Admitting Blood Draw X Ray Doctor Review

Billing

Stage for BloodLog Time In

Record Value

Draw Blood

Record Value

Take X RayReview X RayReview Blood

Compile data frompatient records

Log Time OutPull patients toLevel Schedule

FIFO

Retake if Error Retake if ErrorVerify Results Verify Results

Off-lineOperation

FIFO FIFO

Provide arrival windows forpatients to minimize waiting

(process time) (process time) (process time) (review time)(minimal wait) (minimal wait) (minimal wait)

TPCT: 18 MinutesConsiderably reducedthrough improved flow

LEGEND: Electronic Physical Flow Feedback

2 Min 2.5 Min 2.5 Min 2 Min3 Min 3 Min3 Min

C/T 2 MinutesC/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes

96% Improvement in TPCT

Understand how the work

site currently operates

Design a lean flow

Plan how to get there

Identify Value Stream

Current StateDrawing

Action Plan

Future-StateDrawing

VALUE STREAM MAPPING PROCESS

Identify improvement opportunities

Identify and resolve gaps

Specific process / product family

Admitting

I

IIn

Hallway


Blood Draw X Ray Doctor Review Billing

Send to Waiting ALog Time In

Record ValueDraw Blood

Record ValueTake X Ray

Review X RayReview Blood

Log Time OutRecord Values

Retest if Needed

Clinic Supplies

Syringes

X RayFilm


Clinic Manager

ClinicPerformance

SupplyRequirements

IIn

Hallway

IIn

Hallway

Low MachineReliability

RetestsRandomArrivals

DeliveryWeekly

VP Performance

ClinicPerformance

Re Tests

Waiting Rm B

Capacity 4 PatientsFill Room Next

Waiting RmA

Capacity 4 PatientsFill Room First

Stop if “A” is Full

I

PeopleWaiting

Direct from A only if B empty

X Ray Blood Draw

Record ValueTake X Ray

Record ValueDraw Blood

Dual PathOverflow to B I

InHallway

(avg. wait in “A”)(Transfer A to B)

(avg. wait in “B”)(process time) (process time)

(avg. wait)(process time)

(avg. wait)(review time)

(avg. wait)(process time)

TPCT: 423 MinutesUnknown due to extremevariability of data

C/T 10 Minutes

C/T 12 Minutes

C/T 12 Minutes C/T 13 Minutes

C/T 13 Minutes

NOFIFO !

Lost Patients

C/T 5 MinutesC/T 18 Minutes

10 Min 5 Min 12 Min 13 Min120 Min 40 Min 60 Min 50 Min 90 Min5 Min 18 Min

7+ Hours

FTQ 50% FTQ 50%

FTQ 50% FTQ 50%

Clinic Supplies

Syringes

X RayFilm


Clinic Manager

ClinicPerformance

SupplyForecast

FrequentDelivery

VP Performance

ClinicPerformance

Admitting Blood Draw X Ray Doctor Review

Billing

Stage for BloodLog Time In

Record Value

Draw Blood

Record Value

Take X RayReview X RayReview Blood

Compile data frompatient records

Log Time OutPull patients toLevel Schedule

FIFO

Retake if Error Retake if ErrorVerify Results Verify Results

Off-lineOperation

FIFO FIFO

Provide arrival windows forpatients to minimize waiting

(process time) (process time) (process time) (review time)(minimal wait) (minimal wait) (minimal wait)

TPCT: 18 MinutesConsiderably reducedthrough improved flow


2 Min 2.5 Min 2.5 Min 2 Min3 Min 3 Min3 Min

C/T 2 MinutesC/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes

96% Improvement in TPCT

Action Item ResponsibleImprove X Ray Equipment Reliability Sherry Wilson (Med-Tech)

Improve Blood Draw Process Vlad

Technician Training - Verify Test Results Dr. Choi

Implement Use of Patient Record as Data Log Joe Packer (Billing)

Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly)

Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL)

Develop Level Schedule for Patient Arrival Ed Case (Admitting)

- - - 2001 - - - - - - 2002 - - -Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

VSM Current StateSELECTING PRODUCT

FAMILY

1 2 3 4 5 6

A X X X X X

B X X X X X X

C X X X X X

D X X X

E X X X

F X X X X

Pro

duct

s

Assembly and Equipment

A Product Family

Create a matrix if your mix is complicated

FORM A TEAM

Cross Functional Team

Manufacturing

FinancialPurchasing

Leadership

ProductionControl

EngineeringSensei

This step is critical to insure successful implementation

VSM CURRENT STATE

Select a cross-functional team Select team members

familiar with the process

Make sure the team istrained to use VSM

Designate a Champion(typically a line manager)

Understand The Customer Demand & Map the Current Processes

VSM CURRENT STATE

1. Understand the customer Demand2. Draw the current Process Map

1.What you THINK it is …

2.What it ACTUALLY is…

3. What it SHOULD be…

MATERIAL FLOW ICONSAssembly

XYZCorporation

Data Box

C/O=30 min.C/T=45 sec.

3 Shifts.2% Scrap

I300 pieces

1 day

Inventory Supermarket

Shipment Push Finished Goodsto Customer

Physical

FIFO

First-In-First-Out

ProcessBox

Supplier/Customer

Mon + Wed

Pull

General IconsUptime

Changeover

KaizenLightning Burst

Operator Buffer orSafety Stock

“Go See”Production Schedule

INFORMATION FLOW ICONS

ManualInformation Flow

ElectronicInformation Flow

WeeklySchedule

Schedule

OXOX

LoadLeveling Box

Sequenced-PullBall

WithdrawalKanban

ProductionKanban

SignalKanban

KanbanPost

TOTAL PRODUCT CYCLE TIME METRICS

VSM CURRENT STATE

1 ShiftOvertime = 4hr/d

C/T = 2s

Takt = 5s2 ShiftsC/O = 4 hours5% Downtime

2 Presses

WIP = 5,000 pcsWIP = 1,500 pcs

Takt = 8s4 Operators

C/T = 7s2% Scrap/Rework

20% Downtime

7 Operators

Takt = 12sC/T = 11sWIP = 600 pcs10% Downtime/Scrap/Rework

C/O = 25 min

FINISHED GOODSWELDING ASSEMBLYSTAMPING

Steel Supplier

PC&LMRP

MSS

ISteel4 days

I10,000 pcs

10 days

I2,000 pcs

2 days

I1,200 pcs1.2 days

Mon &Wed

1 timedaily

6 WeekRolling

Forecast

WeeklyOrder

WeeklyOrder

6 WeekRolling

Forecast Weekly BuildSchedule

Daily ShipSchedule

UPTIMECHANGEOVER SCRAP

Layout

4 days5 days

10 days1.5 days

2 days.6 days

1.2 daysTPc/t = 24.3 daysProcessing Time

Inventory Time

CUSTOMER

Volume Info:20,000 pcs/month

Std. pack = 300pcs2 shiftsTakt = 54s

Upper line is Production Lead Time measured in days or hours– Production Lead Time = Inventory Quantity Daily Customer Requirement

Lower line is Process Time measured in minutes or seconds

VSM Current State: ACME EXERCISE


CUSTOMER:“State Street Assembly”

SELECTED PRODUCT FAMILY: “Stamped–Steel Steering

Brackets”

State Street AssemblyState Street Assembly

1x Daily

Coils

5 days

I I4600 L2400 R

Stamping

1

S. Weld #1

1 1

S. Weld #2 Ass’y #1

1 1

Ass’y #2Shipping

Staging

I1100 L600R

I1600 L850R

I1200 L640R

I2700 L1440R

C/O=1 hour

C/T=1 sec

Uptime =85%27,600

sec. avail.

C/T=39 sec

Uptime = 100%27,600

sec. avail.

C/O=10 mC/T=46 sec

Uptime = 80%27,600

sec. avail.

C/O=10 m

C/T=62 sec

Uptime = 100%27,600

sec. avail.

C/O = 0

C/T=40 sec

Uptime = 100%27,600

sec. avail.

C/O = 0

Production Control

MRP

18400 pieces/month-12000- L - 6400- R

Tray = 20 pieces

2 shiftsDaily Ship Schedule

Daily Order

90/60/30 day forecasts

Weekly Schedule

6 week forecast

Weekly Fax

Michigan Steel Company


500 ft coils

Tues. &

Thurs.


VSM - Acme Exercise Draw production lead time/value-added timeline Calculate production lead time for inventory triangles by

dividing quantity of inventory by the customer daily requirement This is a really neat trick! It turns a count of inventory

into the number of production days that inventory represents Stamping / Weld

18,400 pieces/mo / 20 days = 920 pieces/day920 / 16 hours (2 shifts) = 57.5 pieces/hour7000 pieces (total Inv.) / 57.5 pieces/hour = 121.7 hours of Inv.121.7 hours of Inv. / 16 hours = 7.6 days of InventoryFinish the rest of the calculations.

What is the inventory production lead time?

1x Daily

Coils

5 days

I I4600 L2400 R

Stamping

1

S. Weld #1

1 1

S. Weld #2 Ass’y #1

1 1

Ass’y #2Shipping

Staging

I1100 L600R

I1600 L850R

I1200 L640R

I2700 L1440R

C/O=1 hour

C/T=1 sec

Uptime =85%27,600

sec. avail.

C/T=39 sec

Uptime = 100%27,600

sec. avail.

C/O=10 mC/T=46 sec

Uptime = 80%27,600

sec. avail.

C/O=10 m

C/T=62 sec

Uptime = 100%27,600

sec. avail.

C/O = 0

C/T=40 sec

Uptime = 100%27,600

sec. avail.

C/O = 0

Production Control

MRP

18400 pieces/month-12000- L - 6400- R

Tray = 20 pieces

2 shiftsDaily Ship Schedule

Daily Order

90/60/30 day forecasts

Weekly Schedule

6 week forecast

Weekly Fax

Michigan Steel Company


500 ft coils

Tues. &

Thurs.


5 days

1 sec

7.6 days

1.8 days

2.7 days

2 days

4.5 days

40 sec62 sec46 sec39 secPLT = 23.6 days

PT = 188 sec.

VSM: FUTURE STATE

How to Create the Future State Issue: You have mapped a current state, so what should your ideal or future state

map look like? Overproduction – eliminate overproduction, or attempt to level production.

CHARACTERISTICS OF A LEAN VALUE STREAMGuideline #1: Produce to your Takt time “Synchronizes pace of production to match pace of sales”.

“Future State Map; Takt Time is noted in the data box”

VSM: FUTURE STATECHARACTERISTICS OF A LEAN VALUE

STREAMGuideline #2: Develop Continuous flow wherever possible Produce one piece at a time Reduce batch sizes and implement material replenishment.

Should you build to a finished goods Supermarket or directly to shipping?

Building directly to shipping is ideal. If the competitive lead time is less than your

process lead time, you will need a finished goods supermarket.

If customer demand rises and falls unpredictably it might be better to use a finished goods Supermarket.

The cost of holding some finished goods may well be less than the cost of extra capacity


STREAMGuideline #3: Use supermarkets to control production where continuous flow does

not extend upstream. “Where will you need to use supermarket pull systems?” Batching might be necessary

Where changeover is necessary due to very fast or slow cycle times and multiple product families.

Long supply chain…One piece at a time is not realistic Some processes have too much lead time or too unreliable to couple directly to

other processes in a continuous flow. In these cases install a Supermarket based pull system Supermarkets are used when continuous flow is interrupted

Remember, flow is better. There is a cost associated with a supermarket


STREAMGuideline #4: Try to send the customer schedule to only one production process. “At what single point will you schedule production? (PACEMAKER PROCESS)”

How you control the production at this process; sets the pace for all of the upstream processes.

Any process after the pacemaker process must be continuous- flow ( no Supermarkets or pulls downstream of the pacemaker process.

Therefore, the pacemaker process is frequently the most downstream continuous-flow process in the value stream.


STREAMGuideline #5: Distribute the production of different products evenly overtime at pacemaker process. (Level the production mix). “How will you level the production mix at the pacemaker process?” Distribute the production of different products evenly

over time at the pacemaker process. Grouping products makes it difficult to serve customers

who need something different than the batch being produced at that time.

On-time deliveries suffer. A part that is due tomorrow might not make it because it has to wait for the long batches to complete.

The icon for leveling is OXOX


STREAMGuideline #6: What increment of work will you consistently release and take away at the pacemaker process? (Level the Production Volume) Start by releasing small consistent amounts at

the pacemaker process, while simultaneously taking away equal amounts of finished goods or “paced withdrawal”

This consistent increment of work is called the PITCH Can be based on pack–out container quantity Establishes interval for monitoring status of production

The key is to create a predictable flow which enables you to act quickly to problems.Example: If Takt time = 30 Seconds & Pack Size = 20 Pieces then

Pitch = (30 Seconds X 20 Pieces = 600 seconds = 10 minutes)


STREAMGuideline #6: (Level the Production Volume …) A tool used to by some is the (heijunka box) A load leveling box with a column for Kanban slots for each

PITCH interval and a row of Kanban slots for each product type.

The box indicates both the quantity produced and the time allocated to make it (based on TAKT time)

Type A

Type B

Type C

8 8.10 8.20 8.30 8.40 8.50

Kanbancard A

Kanbancard C

9.00 9.10

Kanbancard A

Kanbancard A

Kanbancard B

Kanbancard B

Kanbancard B

Kanbancard C

One column per pitchHere pitch=10 min.

One row per product

typeKanbans responded

to from left to

right at pitch

increments


STREAMGuideline #6: (Level the Production Volume …)

Type

A

Type

B

Type

C

8 8.10 8.20 8.30 8.40 8.50

Kanbancard A

Kanbancard C

9.00 9.10

Kanbancard A

Kanbancard A

Kanbancard B

Kanbancard B

Kanbancard B

Kanbancard C

Customerrequirement

Shipping

4

1

3

2Pacemaker

process

Drop Kanban

at process

Pick up one finished quantity

Move finished parts to

supermarket

Pick up next

kanban

VALUE STREAM MAPPING FUTURE STATE

ACME EXERCISE

FIRST VIEW of the Future-State map:Showing Takt Time, Weld/Assembly Cell, and the Finished-Goods Supermarket

VALUE STREAM Acme Co. Future State – 1st View

Stamping

Takt=60 sec. C/T=56 sec.

C/O= 0Uptime=100%l

2 shifts

Weld& Assy

L

R Shipping

Staging

1XDaily

State St. Assembly

18,400 pcs/mo

-12,000 “L”

-6,400 “R”Tray=20 pcs.

2 Shifts

Notice that on this Future-State Map the four welding and assembly process boxes have been combined into one process box to indicate the continuous flow.

A small sketch of a cell inside the process box also indicates the cellular manufacturing concept.


ACME EXERCISE

SECOND VIEW of the Future-State map:Showing Stamping and Raw Material Supermarkets

VALUE STREAM Acme Co. Future State – 2nd View

The stamping process needs to produce batches larger than 60 pieces. A trigger point is set up in the stamping supermarket which includes

changeover, replenishment delay and other stamping problems. In this case stamping will keep 1.5 days of parts in its supermarket

A signal Kanban is sent to the stamping process whenever the number of bins remaining drops to a trigger ( minimum ) level

Signal or Batch kanban

WHAT ABOUT RAW MATERIAL? To build a plant level value stream the Future State must also show a

third supermarket at the receiving dock which holds coils of steel Acme can attach an internal withdrawal Kanban to each coil and send

these Kanbans to their own production control department whenever another coil is used.

Production control can order coils based on their actual usage instead of a best guess determined by MRP

The cards are then returned to the receiving dock as a signal for shipments that are due.

Milk runs for daily deliveries should be considered at this point

Stamping


C/O= 0Uptime=100%l

2 shifts

Weld& Assy

L

R Shipping

Staging

1XDaily

State St. Assembly

18,400 pcs/mo

-12,000 “L”

-6,400 “R”Tray=20 pcs.

2 Shifts

20

1.5 days

batch

bin

Coils

PRODUCTIONCONTROL

State St. Assembly

6-WEEKForecast

DailyOrder

1XDaily

coil

coil

(at the press)

VALUE STREAMAcme Co. Future State – 2nd View


ACME EXERCISE

THIRD VIEW of the Future-State map:Showing Load Leveling, Changeovers, and Timeline

The material handler pulls the Kanbans out of the leveling box one-by-one at the PITCH increment and moves trays of brackets from the finished goods supermarket to the staging area one-by- one according to the withdrawal Kanban.

ProductionControl

Daily Orders

binbin

bin

OXOXWELD&ASSY

LR

binShipping

Staging

Load Leveling Box

VALUE STREAM Acme Co. Future State – 3rdView

Stamping


C/O= 0Uptime=100%l

2 shifts

Weld& Assy

LR Shipping

Staging

1XDaily

State St. Assembly

18,400 pcs/mo

-12,000 “L”

-6,400 “R”Tray=20 pcs.

2 Shifts

1.5 days

batch

bin

Coils

PRODUCTIONCONTROL

State St. Assembly

6-WEEKForecast

DailyOrder

1XDaily

coil

coil

(at the press)

EPE= 1 shift. EPE <10 min..

changeover

Weld

changeoverWelder

uptime

1 sec.

1.5 days

1 day

168 sec

2 daysProduction Lead-time= 4.5 days

Processing Time= 169sec

20

20

20

20

OXOX

Daily order

90/60/30 dayForecasts

DailyOrder

VALUE STREAM Acme Co. Future State – Complete

View

Pacemaker Loop

Stamping Loop

Supplier Loop

VALUE STREAM Acme’s Value Stream Loops

REFERENCE• Learning to See Parts

IV, VA Value Stream Mapping Workshop Mike Rother & John Shook

Lean Enterprise Institute

QUESTIONS

13. value stream mapping

Business