value stream mapping process

5/21/2018 Value Stream Mapping Process

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Value Stream Mapping Process

What, Where, When, Why, Who,Which, How etc

Anand Subramaniam


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Be aware..Lean system implementation requires a high degree of discipline,and sometimes it can stress the workforce.

There is high level of co-operation & trust required betweenoperators and supervisors.

Reward systems and labor classifications must often be revampedwhen a lean system is implemented.

Existing layouts may need to be changed.

Daily production schedules in high-volume, make-to-stock

environments must be stable for extended periods.

If the inventory advantages of a lean system are to be realized,small lot sizes must be used.

If frequent, small shipments of purchased items cannot be arranged

with suppliers, large inventory savings for these items cannot berealised.


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Highlights

1. Overview - Value Stream Mapping (VSM)

2. Pre-VSM

3. VSM Review Current State

4. VSM Review Future State &

Implementation Road Map

5. Excellence Road Map


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Highlights - 1

Lean Process

Value Stream Mapping (VSM)

Value & Non Value AddPrinciples

SIPOC

Definition


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What is a Lean Process ?

Define value

from the

customers

perspective

Map the

value

stream

Create flow;

eliminate the

root causes

of waste

Create pull

where flow

is difficult

to achieve

Seek

perfection via

continuous

improvement


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VSMWhy, What, Where?

Key tool for Lean implementation, makes process & problems visible

Forms the basis of an improvement plan and a common language

Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC)

Is a qualitative tool for identifying and eliminating waste (or muda)

Aligns organisations processes, creates a sense of teamwork / ownership

Involves drawing - current state, future state, & an implementation plan

Spans the entire value chain, from raw materials receipts to finishedgoods delivery

A paper and pencil tool to help you visualise and understand the linkagebetween material and information flow

Focuses on maximising the overall flow


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Value Add & Non Value AddValue Add (VA)

Any activity the customer values (and is willing to pay for) Who are your customers? What do they really want?

To be considered value add, a process step must have YES to allthese questions Does the customer care? Does it change the thing? Is it done right the first time? Is it required by law or regulation?

Non Value Add (NVA)Any activity that consumes time and / or resources & does not addvalue to the service or product for the customer. These activitiesshould be eliminated, simplified, reduced, or integrated. Necessary Legal / regulatory requirements Unnecessary - Waiting, Unnecessary processing, Errors/defects,

Motion (people), Transportation (product), Underutilised people,Inventory


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VSM - PrinciplesDiagnostic Tool Reveals hidden symptoms of larger problems

Strategic Planning Activity Helps prioritise opportunities for improvement

Results in an implementation plan

Macro-Level - Visual Representation Information flow People and material flow Each process block represents a handoff or a break in the timeline

Contains Relevant Metrics Lead time throughput / turnaround / flow time Cycle time touch / process time


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SIPOC - Process Map

S I O CP

Suppliers Inputs Process Outputs Customers


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DefinitionCycle Time (C/T) time to complete a single unit of production

First Time Through (FTT) - % of jobs that are complete andaccurate the first time that they are processed.

Demand average number of units per shift

Batch Size (BS) size of typical batch that is processed as a unit

Takt time rate of demand

Throughput time sum of delays and process time

Process Ratio = Total process time / Throughput time

Value Added Ratio = Total VAT / Throughput time


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Highlights - 2

Current Process Challenges

Conceptual Overview

VSM CharterVSM Boundary

Product Family Matrix

Data CollectionFuture State Questions & Blueprint


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Current Process ChallengesLots of waiting

Lots of travel

Lack of communication

Lack of skills / not trained

Too many handoffsToo many approvals

Too many workarounds

Duplication of work

Dead zones - places wherework gets held up or lost

Lost time - people lookingfor work and / or re-workloops to correct errors

Broken interfaces -ineffective or non-existentinterfaces

Different prioritisation

rules in differentdepartments

High Lead Time (slowthroughput/turnaround)

High WIP (waste in processbottlenecks / backlogs)

Low CT/LT ratio (lots of

waiting)


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Conceptual Overview - Where to start?

VSM Charter & Scope Process Boundaries / Scope Roles & Responsibilities SIPOC

Product Family Start with a single product family

Current & Future State Collect data on process & system Be specific

how many finished part numbers infamily?how much is demanded?how often?

Verify & repeat the Process

Develop Implementation Plan

Product

family

Current state

drawing

Future state

drawing

Work plan &

implementation

Charter / Scope


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VSM Charter

Vision

Mission

ImprovementObjectives

Strategic Plan

Critical SuccessFactors

Drivers

Process DescriptionManagementInformation System

Start / End Date

High Level Scope

Benefits Realisation

Process Champion

Team Leaders

Team Members

Facilitators

Risk & Tolerance

Drivers

Roles &Responsibilities


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VSM - BoundaryCurrent State

Define the boundariesDefine the valueIdentify the tasks and flows of material and informationbetween them

Identify resources for each task and flowCreate the current state map

Future State (Design)Visualise the Ideal State and design the future statemap Identify value added and waste from Current State Reconfigure the process to eliminate waste / Add Value

Implementation PlanDevelop Action plans and track


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Define BoundaryBefore launching on VSM, define the Start and End points

Prepare As-Is physical map How / where (inputs to outputs) Prepare As-Is geographical map - area(s) where process is performed Add process control information flow to as-is physical map

A logical starting point - where Inputs cannot be returned to the

preceding step.

Capture the process as it is actually performed and includeworkarounds, rework, informal activities, feedback loops etc

In lean, we commonly define work-in-process is anything you

cant ship to the customer or return to the supplier

Add As-Is process metrics - counts, rates The number of parts required by customers The number of machines and operators available to work on parts The rates that process steps work on parts


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Eg. Boundary - Start & End Points

Inputs

Market Research

Data - Competition

Firms Strategy

Define Go-

to Market

Drivers

Review

Objectives,

Goals &Strategies

Identify

Risks,

Assumption

&

Constraints

Conduct

What If

Scenarios

START

Evaluate

Scenarios

Approve

Go-to

Market Plan

Outputs

Marketing Plan

KPI

Team

END


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Material & Information FlowUse the Scope document to map the product or service flow

Map the whole value stream by conducting a walk through ofthe actual process and collect information Start with the final step and walk backwards (customer perspective) Outline major process blocks

Chunk of activities that occur before a handoff

Stay focused on the norm Use the 70% rule to avoid getting bogged down with exceptions

Interview workers to obtain data

Cycle time (CT) Lead time (LT)

Bring your stopwatch and do not rely on information that you donot personally see

Draw by hand and use a pencil


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Resource Identification

VSM are strategic in nature The resulting implementation plan is the

tactical component

Nominate a VSM Head, who has Top Management support Power to influence changes

Team composition Team / Process Leaders Team Members who have process knowledge Facilitators / Management Consultants


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Product Family Matrix

Routing - Process / Operations #

P

R

O

D

UC

T

S

1 2 3 4 5 6 7 8

ES X X X X X X

S X X X X X X

M X X X X X X

L X X X X X

EL X X X X X

XX X X X X X X

U X X X X X


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Data CollectionPack sizes at each processWorking hours and breaksInventory Points (location& size)How Operations are

scheduledOvertime per weekProcess cycle timesScrapReworkDowntimeDemand rates by process(Takt Time)Number of productvariations at each stepShipping/Receiving

schedules

ActivityDepartment performingIT systems usedCurrent backlog/WIPDemand rate

Work TimeNumber of people /operatorsPrioritisation rules% Quality (first pass Yield)

Batch sizeRun frequencyEquipment availabilityC/T - Cycle (touch) time(observed & effective)C/O - Changeover time &

frequency


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Future State QuestionsWhat should be the Takt time (available time / customer demand)?What does the customer really need?How often will we check our performance to customer needs?How can we improve the flow, with fewer interruptions?How do we control work between interruptions? How will work be prioritised?Is there an opportunity to balance the work load and/or different activities?

Where can continuous flow be put in place?Where should pull systems be implemented?Where, when and how will scheduling be done?How do we perform load leveling and what will be the product mix?What should the management time frame be?What process improvements are necessary, to achieve the future state?What will the future state metrics be?

QualityErrors

DeliveryLead time

Customer serviceHow well do you provide services (internal and external)

CostReducing errors, rework, handoffs, waiting and lead time


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Design Future StateBlueprintDefine how the plant will operate in the future (blueprint)

Consider whether (remove waste / non value add activities) everything done currently at each stage is really necessary the impact if superfluous tasks was to be removed the process can be rearranged in a more efficient sequence

a different flow layout or transport routing can be introduced

Validate Customer Demand

Draw the Future State Process Flow

Map the Future State Material & Information Flow

Calculate Total Product Cycle Time

Detail Off-Line Activities

Outline an Implementation Plan


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Highlights - 3

Current State (As~Is)

Step 1 - Define Customers Demand

Step 2 - Map Basic Production Processes

Step 3 - Define Data To Be Collected Step 4 - Collect & Map Data

Step 5 - Map Information Flow

Step 6 - Calculate Current State

Step 7 - Compute Takt time

Step 8 - Line Balancing


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Define Customers Demand

Demand = 3,200 pieces / week Type L = 1,000 piece week Type S = 2,200 piece week

Plant Operates 1 shift / day

Packaging = 60 pieces / Tray

Customer Shipment = 1 / day (Truck)

Supplier Shipment = 1 / week (Truck)


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Map Basic Production Process

EnsureMapping begins with customers demand

Conduct a walk through and obtain highlevel process information

Start from the shipping (Staging Process)and work up-stream to the receivingdock

The team involved should map the entire

process stream from start to end


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2007 Pearson Education

Map Process (Contd.)Mapping Icons


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Define Data To Be Collected

Cycle Time (C/T)

Changeover Time (C/O)

UptimeNumber of Operations

Break Time

Work Time (minus breaks)


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Define Data (Contd.) - Work Time Calculation

Day = 1 shift 1 Shift / day = 8 hours = 28,800 seconds / shift

( 8 x 60 x 60 x 1 shift)

Breaks Morning Tea (15 mins) : Lunch (30mins) :

Afternoon Tea (15 mins) Breaks = 60 mins = 3,600 seconds { (15 + 30

+ 15) x 60}

Working Time / Operating Time Shift Time Break = 25,200 working seconds /

shift (28,800 3,600)


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Collect & Map Data (Customer & Supplier)


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Map Information Flow


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Calculate Current State

1 week = 5 working days

Demand = 3,200 pieces / week or

640 pieces / day

Press Process

Type L + S = 2,250 pieces (1,000 + 1,250)Duration = 3.5 days (2,250/640)


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Result - Current State

A Representative Current State Map for a Family of

Retainers at a Bearings Manufacturing Company

2007 Pearson Education


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Compute Takt Time1 week = 5 working days

Demand = 3,200 pieces / week Type L = 1,000 piece week (200/day)

Type S = 2,200 piece week (440/day)

Total Pieces / Day / Shift = 640Operating Time / Working Time = 25,200

Takt Time = Operating Time / ShiftCustomer Requirment / Shift

Takt Time = 25,200= 39 seconds

640


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Total - Processing / Work Time

60 Seconds


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Line Balancing

3

22

35

0

5

10

15

20

25

30

35

Seconds

Press Pierce & Form Finish Grind

Process

Work or Process Time = 60 Sec Takt Time = 39 Sec

Work / Takt time = # of Operators Required = 60/39 = 1.54


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Line Balancing (Contd.)

You require 1.54 operators

Having 2 is costly and having 1 canlead to burnout

We could reduce Takt time from 39sec to say 35 sec or less, bycombining some tasks and avoiding

burnout


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3

32

22

13

35

0

0

5

10

15

20

25

30

35

Press Pierce & Form Finish Grind

Line Balancing (Contd.)


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Highlights - 4

Future State (To~Be)

Implementation Road Map

Improvement Results


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Future State (To~Be)

Objectives Eliminate / reduce unnecessary NVA steps Optimise VA steps

Build Consideration (from current state) Eliminate/merge steps Create parallel paths Implement pull, if continuous flow isnt possible

Reduce or eliminate batches Create standard work Create an organised, visual workplace Eliminate unnecessary approvals Identify NVA tasks from customers point of view Level production mix


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Implementation Road MapClarify Business Drivers and Key Customer Metrics

Assess and Map Current Capabilities (Baseline)

Identify Opportunities for improvement including the eliminationof waste

Create a Vision for the Future Based on Voice of the Customerand Voice of the Business

Analyse Gaps and Create Action Plan to Succeed Use Robust Set of Tools (i.e. Lean Six Sigma)

Determine Priorities and Resources Necessary Structured Process Improvement

Track Impact through Metrics

Celebrate Wins - With Customers : Employees : Suppliers


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Improvement ResultsMetric Current State Future State % Improvement

Lead time

Cycle time

CT/LT ratio

# steps

Morale


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Highlights - 5

Excellence Road Map


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Excellence Road Map

Approach / Develop Plan Deployment/ Execute Plan Results

1

Assess &

understandSet direction

Develop key

plans

2 3

Communicate

& integrateplans

4

Develop cross -functional

strategy teams

5

Develop /

Integrate

detailedimplementation

plans

6

Execute

implementationplans

7

Quarterly ,

integrated

operationsleadership

review

8

Strategic Planning Process

1

Define theprocess

Establishmetrics

Determineperformance

2 3

Analyseprocessstability

4

Set goals

5

Analyse & planimprovements

6

Implementimprovement

7

Process Based Management

Update Future

StateSet initiative

priorities

Initiative #1

Initiative #2

Initiative #3

Initiative #43

Leadership

Perform Enterprise

Strategic Planning

Joint Strategic Planning

Shared Enterprise Vision,Strategies, and Goals

Shared Scorecard/Metrics Linkedto Goals

Provide

Communications

Manage

Risk

Consistent Messagesthroughout Enterprise

Joint Communication Plan

Integrated CustomerFeedback available acrossEnterprise

Single Field Issue Reporting

Comprehensive Risk ManagementProgram

Extensive and ContinuousRisk Identification

Effective Risk Mitigation

Joint Leadership Model withEnterprise Thinking

ProcessManagement Mindsetincluding Benchmarking

Joint Issue Resolution /Objective Problem-Solving

Organization aligns with FutureState ValueStream

Lead & Execute

Program

LifeCycle

ProposeWork

Manage SupplyChain

DefineRequirements

JointlyDefine and ValidateLifecycle CapabilityRequirements

Joint Block ImplementationPlanning

Alpha Contracting Matured

Integrated Planning forDevelopment, Production,and Sustainment(IMP/IMS)

EarlyInvolvement of keySuppliers throughPartnerships

DevelopProduct

Maximize Model-BasedDefinition across Enterprise

Collaborative Developmentwith keyStakeholders

Integrated Product andProcessDefinition (IPPD)Encompasses Lifecycle

Integrated Design Solutionsprovide Best Value Capability

Improved SupplierQualitythrough Enterprise SupplierPartnerships

Integrated Parts Procurementof Production,Retrofit andSpares

SupplyChain Alignment /Leveraging (Boeing

Commercial and DoDMilitary)

Common Lean Processes forall SupplyChain to includeGFE

AssembleProduct

Lean ManufacturingAssessment / Best PracticesDeployed

ProcessSurveillanceConducted Concurrentlywith Assembly

Factory to FightAssemblyIn-Position

Point-of-Use DeliveryofParts, Supplies andTools

MaintainProduct

Predictive LogisticsPlanning

TSSRPerformance andALCPartnership

Enabling

Manage Technology

Roadmap

Network Enabled Operations

TechnologyInsertion Collaboration (Gov/ Industry)

Promote Employee

Collaboration

Empowered Enterprise WorkTeams Align to StrategicDirection

People Understand how theyfitinto Enterprise Big Picture

Working on Program isMeaningful and Fun: Can DoCulture

Seamless Collaboration within

Enterprise

Manage

Knowledge

Shared Databases AcrossEnterprise(Includes Suppliers)

Virtual / Physical Enterprise Co-location

Automated InformationSystems Alignedwith Changing Business needs

Processes to Capture EnterpriseKnowledge Including Lessons Learned

Enterprise Web-based training

Manage Systems/

Quality

Enterprise isfocused on LeanPrinciples

Enterprise Systems Engineering /Management Architecture

Joint Enterprise Process Model

Manage Contracts&

Finance

Business Models support LeanTransformation

Exceed Obligation andExpenditure Goals

Dollars perFlying HourContract

Enable SeamlessTransition betweenDevelopment,Production andSustainment

Reduce TotalOwnership Cost


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Good Luckhttp://www.linkedin.com/in/anandsubramaniam
http://www.linkedin.com/in/anandsubramaniamhttp://www.linkedin.com/in/anandsubramaniam

value stream mapping process

Documents

value addvalue

process block

process step

entire value chain

lean implementation

process problems visibleforms

lean system implementation

implementation planspans