Value Stream Mapping

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Value

• "Value" is what the customer is buying

• A capability provided to a customer

of the highest quality,

at the right time,

at an appropriate price,

as defined by the customer.

• Planning tool to optimize results by eliminating waste

• Removes wasted steps and improves productivity

• Non value adding activities: Scrapping, Sorting, Storing, Counting, Moving, Documentation etc.

• Value adding activities :Machining, Processing, Painting, Assembling

Value Stream Mapping

Why ?

Provide optimum value to the customer

through a complete value creation

process with minimum waste in:

Design (concept of customer needs)

Build (order to delivery)

Sustain (in-use through life cycle to

service)

• Flowchart• Depicts and improves the flow and processing of

inventory • Usage of symbols (the language of lean).

• Usually includes People,Tools and technologies, Physical facilities, Communication channels

How ?

What flows?

“ITEMS” flow in a value stream

In manufacturing, materials are the

items

In service, external customer needs are

the items

Symbols used in VSM

Generally VSM has four major steps as given by Rother and Shook (1996):

• Lean production means continuous improvement, we must keep on changing future state into current state

Lean Production uses Takt Time as the time in which we get a finished product or assembly. If you have a Takt Time of two minutes that means every two minutes a complete product or assembly is produced off the line.

Takt Time

Takt Time = Available time/ customer demand

Welding process:

Takt Time = Available time/ customer demand = 27 *1320 *60/50000 = 42.7 sec.

Complete cycle time of welding (CT+LT):Number of working days - 27 Net working time per day - 1320 min. Demand for month - 50000 Welding Cycle time - 43 sec Lead time - 8 sec Welding Production per day - 1320*60 / (43+8) =1550 parts per day (should be 1854)

Example of one of the improvements

It is found that cycle time of complete welding process exceeds the takt time so there is need to improve the process capability of welding process to meet the demand of customer within the time.We are improving the cycle time of welding process by introducing a new welding machine and by improving layout of weld shop.

Cycle time before improvement = 43sec. Cycle time after improvement = 22 sec. % improvement in production = (2600 – 1550)/1550 There is near about 67% improvement by improvement in value adding activities.

Some wastes of LEAN eliminated by VSM:Overproduction

Defects

Motion

Waiting

Long Transportation Routes

Underutilized people

Extra Processing

Inventory

It helps to visualize the station cycle times, inventory at each stage, manpower and information flow across the supply chain.

Enables a company to ‘see’ the entire process in both its current and desired future state

Bridges the gap between the current state and the future state.

Gives a better value to the customer

Conclusion

Danke!!