value stream mapping 8/8/20151 © 2009 rlm & associates llc

Value Stream Mapping

04/19/23 1© 2009 RLM & Associates LLC

04/19/23 © 2009 RLM & Associates LLC 2


Purpose to:

Understand the role value stream mapping plays in continuous improvement

Draw a current-state map

Draw a future-state map Develop an implementation plan

Getting Started


Definition of a Value Stream

1.All activities both value-added and non-value-added required to bring a product from a raw material state to a finished product in the hands of a customer.

2.Bring a customer requirement from order to delivery or bring a design from concept to launch.

Getting Started


Key Elements of a Value Stream

1.Specify what does and what does not create value from the customer’s perspective

2.Identify all the steps necessary to order, design and produce across the entire value stream to highlight non-value-added wastes

3.Make those activities that create value flow without interruption, detours, backflows waiting or scrap

4.Only make what is pulled by the customer just-in-time

5.Create a dynamic transparency of strategies, costs and information in the value stream

10 Key Elements of a Value Stream


Key Elements of a Value Stream

6.Address competitive advantage at the value stream network level, moving past simple buyer/supplier partnership rhetoric

7.Use value stream mapping for analysis, diagnosis and implementation of change

8.Focus on key processes, not just separate business departments

9.Address the entire supply chain over time rather than on short-term improvement of individual facilities

10.Strive for perfection by continually removing successive layers of waste as they are uncovered

10 Key Elements of a Value Stream


Value Stream Improvement & Process Improvement

Value Stream

Improvement

MIXING BOTTLING PACKAGING

Outgoing Finished Product

Incoming Raw Materials

Customer



Getting Started

1. Document a product’s production path from incoming raw materials to outgoing finished product.

2. Draw a visual representation of every process in the material & information flows.

3. Then draw a “future state” map of how the production path can be optimized to eliminate the greatest amount of waste.


Using the Value Stream Mapping Tools

Mapping Tool

Product Family

Current State Drawing

Future State Drawing

Plan and Implementatio

n

Understanding how production currently operates. This is the foundation for the future state.

Designing a LEAN flow.


Focus on One Product Family

Product Family

Determine Product Families via: Similar downstream “assembly” steps and equipment.


Value Stream Managers

Value Stream

Each Value Stream Needs a Value Stream Manager

Process 1 Process 2 Process 3

For product ownership assign responsibility for the future state mapping and implementing LEAN value streams to line managers with the capability to make change happen across functional and departmental boundaries.

The Value Stream Manager

KAIZEN

Customer


Types of Value Streams

Value Stream

Multiple Facilities

Single Facility (door to door)

Process Level

Begin Here

Across Organizations


Session 1 QuizMultiple Choice, what’s the best answer?

Quiz 1 Question #1

1. Value stream mapping examines:

A. The people, material, and information flow in a value stream.

B. The material and information flows in a value stream.

C. The detailed operation steps within cells.

D. The steps that people take in designing and producing a product.



Quiz 1 Question #1

1. Value stream mapping examines:

A. The people, material, and information flow in a value stream.

B. The material and information flows in a value stream.

C. The detailed operation steps within cells.

D. The steps that people take in designing and producing a product.



Quiz 1 Question #2

2. A product family matrix:

A. Creates a listing of all your products and the steps that are taken to produce them.

B. Determines which products are most important to your customers.

C. Identifies and groups products into families based on whether they pass through similar steps in your downstream processes.

D. Divides the mapping teams up into groups with individual mapping assignments.



Quiz 1 Question #3

3. A value stream manager:

A. Is a staff person vested with the authority to make change in the value stream.

B. Is a lead hand with the responsibility for understanding a product family’s value stream and improving it.

C. Is responsible for the day-to-day operation of the processes in the value stream plant.

D. Is a line person reporting to the senior person on site, with the lead responsibility for understanding a product family’s value stream and improving it.



Quiz 1 Question #4

4. The starting point for developing a value stream map for a product family is:

A. Corporate wide.

B. Door-to-door in an individual facility.

C. Across multiple facilities.

D. At the process level.


Value Stream Mapping Tools


Process Activity Mapping

The study of the flow of processes

The identification of wastes

Can the process be rearranged into a more efficient sequence

A consideration of a better flow pattern involving different flow layout or transportation routing

A determination of whether each activity is really necessary – what would happen if it was removed?

VSM Tools


Quality Filter Mapping

Identify where quality problems occur in the supply chain

Focuses on: Production defects Service defects Scrap defects

VSM Tools


Decision Point Analysis Where in the supply chain are the key decision points

Are these decision points aligned with the push- pull philosophy

Develop what if scenarios to help develop future state maps

VSM Tools


The Current State Map


Sample VSM Map


Value Stream Mapping Symbols

VSM Symbols



Current State

Product Family




n

Determining how production currently operates.

Material and Information flows

Draw using VSM icons

Start with the “door to door” flow

Walk the production lines and get actualsNo standard timesDraw by hand, with pencil

Foundation for the Future Site


TAKT Time

TAKT Time

Match assembly pace to pace of orders.

Rate for assembling based on orders rate.

Match assembly pace to pace of orders.

Rate for assembling based on orders rate.

Work Time per ShiftTAKT Time =

Customer Requirement per Shift

27,600 sec

460 pieces= 60 seconds


“VSM Example” Data Set

Stamping

VSM Inc. produces several aftermarket components for motorcycle repair and replacement companies. This example investigates one Kawasaki product family: progressive suspension forks in two types: model #VN1500 and VN1600. These components are sent to two distributors (1) supplies requests East of the Mississippi River (customer A) and (2) supplies requests West of the Mississippi River (customer B). Customer A & B receive a 50/50 split of each component.

Customer A & B Requirements: 1980 pieces per month = 1200 per month of Type “VN1500” and 780 per month of Type “VN1600” Customer plant operates on two shifts Palletized returnable tray packaging with 5 forks in a tray and up to 10 trays on a pallet. - The customer orders in multiples of trays. One daily shipment to each distribution center (Customer A & B) by truck.

Work Time: 22 days in a month - Two shift operation in all production departments Eight (8) hours every shift, with overtime if necessary Two 15-minute breaks during each shift - Manual processes stop during breaks - Unpaid lunch


“VSM Example” Data Set (continued)

Stamping

Production Processes: VSM Inc. process for this product family involves milling a metal part followed by welding, painting and subsequent assembly and inspection. The components are then staged and shipped to Customers A & B on a daily basis. Switching between Type ”VN1500 and Type “VN1600” suspension forks requires a 60 minute changeover in milling and a 10-minute fixture change in welding and a 40 minute changeover in painting. Raw materials are supplied by Urbana Metal Co. - Deliveries are made to VSM Inc. on Wednesday. One daily shipment to each customer distribution center by truck.

VSM Inc. Production Control Department: Receives East and West Distributor’s 60/30/10-day forecasts and enters into MRP Issues VSM Inc. 6-week forecast to Urbana Metal Co. via MRP Secures raw materials by weekly FAXed order to Urbana Metal Co. Receives daily order from East (Customer A) and West (Customer B) Distributor’s Generates MRP-based weekly departmental requirements based upon customer A & B’s orders. - WIP inventory levels, F/G inventory levels, and scrap and downtime Issues weekly build schedule to Milling, Welding, Painting, & Assembly/Inspection Issues daily shipping schedule to Shipping Department.



Stamping

Process Information: All processes occur in the following order - each piece goes through all processes.

2) Welding Workstation (dedicated to this product family) Manual process with one operator Cycle time: 150 seconds Changeover time: 10 minutes (fixture change) Reliability: 100% Observed Inventory:

120 pieces of Type “VN1500” 75 pieces of Type “VN1600”

1) Milling (The mill is semi-automated and requires two operators) Cycle Time: 10 minutes (6 pieces per hour) Changeover time: 1 hour (good piece to good piece) Machine reliability: 90% Observed Inventory:

10 days raw materials before milling160 pieces of type “VN1500” finished millings100 pieces of Type “VN1600” finished millings



Stamping

4)Assembly & Inspection Workstation(dedicated to this product family) Manual process with two operators Cycle time: 165 seconds Changeover time: none Reliability: 100% Observed Inventory:

240 pieces of Type “VN1500”150 pieces of Type “VN1600”

3) Painting Workstation(dedicated to this product family) Manual process with one operator Cycle Time: 300 seconds Changeover time: 40 minutes (fixture change) Reliability: 95% Observed Inventory: 100 pieces of Type “VN1500” 60 pieces of Type “VN1600”

5) Shipping DepartmentRemoves parts from finished goods warehouse and stages them for truck shipment to customer A & B.


Team TipsCurrent State Mapping

Team Tips

1. Mapping the Current State:

Review the basic processing steps and calculate assembly takt time.

Everyone draw while on the shop floor. Be sure to draw both the material & information flows.

Always introduce yourself to operators and tell them what you are doing: “Drawing the total factory flow as part of a training session.” Show them your drawings.

Select a scribe and combine drawings into one current state map.

Calculate total lead time versus processing time.

Draw the current state on one of the classroom flip charts.


Team TipsCurrent State Mapping

Team Tips

1. Presenting Your Current State Map:

All team members go up front with presenter. State the product family and takt.

Present from your flip chart. (Less than 5 minutes.)

Start with the customer and information flow into the facility.

State the lead time vs. processing time.

What are the problems you see? Where did you find push and overproduction?

Share any future state thoughts you have so far.



Quiz 2 Question #1

1. How should a Six Sigma project team draw a value stream map?

A. In pencil on the work floor, mapping the entire value stream yourself.

B. In the office with a good drawing software package.

C. In pencil, by dividing the value stream into segments, and assigning each segment to a different mapping team.

D. In pencil, on the work floor using standard times obtained from engineering.



Quiz 2 Question #2

2. What is lead time?

A. The total time of those work elements that actually transform the product in a way that the customer is willing to pay for.

B. The time it takes one piece to move all the way through a process or a value stream from start to finish.

C. The time it takes an operator to go through all of his or her work elements before repeating them.

D. The total time it takes inventory to be depleted from a finished goods warehouse.



Quiz 2 Question #3

3. What information is entered into the data boxes on a value stream map?

A. Engineered standards.

B. The average measurement for a fiscal year.

C. The measurement on an ideal day.

D. What you observe as you draw your map.



Quiz 2 Question #4

4. Where does the project team begin when developing a value stream map?

A. Receiving.

B. Supplier.

C. Customer.

D. End of the line.


Future State Value Stream



Future State

Product Family




n

Designing a LEAN Flow

The power behind Value Stream Mapping is you always need a future state!

Keep Updating. Use pencil!

Material and Information flows

Basis for your Work Plan – like a “blueprint”

Begin by drawing on Current State

1st iteration assumes existing steps & equipment

Can move equipment, combine, take out conveyors, make minor purchases etc.

But, there is a Problem!But, there is a Problem!


Future State Map

Future State


Mass Production

Mass Production

Large Lots, Pushed Ahead, “Island” Mentality

Goal: MORE - FASTER – and BETTER

Order Cash

Value-Added time: MinutesTime in Plant: Weeks

ShippingWarehouse

Receiving Warehouse

Stamping

Storage Welding

Storage

RepairAssembly

Material

Ship

This is not good!


Waste

Waste

What you need to remember about Waste

Waste is a symptom rather than a root cause of the problem

Waste points to problems within the system (at both process and value stream levels)

Address the causes of waste

The elements of production that add no value to the product

Waste only adds cost and time

The elements of production that add no value to the product

Waste only adds cost and time


Overproduction

Overproduction

Making more than is required by the next process

Making earlier than is required by the next process

Making faster than is required by the next process


Individual Efficiency vs. System Efficiency

Efficiency

How fast should we produce?


Build to Supermarket or to Shipping?

Finished Goods

Assembly Shipping

Assembly

Shipping

Customer

Customer

Supermarket

To ShippingTo Supermarket


Batch and Push Processing

Continuous Flow

Continuous Flow

A B C

Lead Time: 30++ minutes for total order

Process C10

minutes10

minutes10

minutes

Process BProcess A


Bottlenecks in the Flow

Determine Exactly Where One-Piece Flow Ends

Problem Points

How can we control production between flows?

Stamping Welding Assembly

Customer


Supermarket Pull System1)Customer process goes to supermarket - withdraws what it needs when it needs it.2) Supplying process produces to replenish what was withdrawn.

Pull System

Purpose: A way to control production between flows. Controls production at supplying process without trying to schedule

Supplying Process

Customer Process

Supermarket

“Withdrawal” KANBAN“Production” KANBAN

Withdrawn ProductNew Product


Minimize Supermarkets & Scheduling

Schedule

Process 1 Process 2 Process 3 Process 4

Supermarket

Customer

Process 1 Process 2 Process 3 Process 4

Supermarket

Customer

FLOW

FLOW

FIFOFIFO


Mixed Production at the Pacemaker(Assembly)

Mixed Production

No GoodAssembly Schedule

Monday………..600 ATuesday……….150 A, 450 BWednesday….300 B, 300 CThursday……..600 CFriday…………..300 C, 300 A

Better: Every Part Every Day

Even Better: Every Part Every Ship Window

Monday: 210 A, 150 B, 240 C

75B 105A 120C 75B 105A 120C

Monday

Important:Near-zero changeover time and frequent changeovers at the Pacemaker Process!


Paced Withdrawal at the Pacemaker What amount of work do you schedule and take away at the pacemaker?

The correct amount is equal to your management time frame. (How often do you verify performance based on customer demand?)

Are you constantly recalculating/updating your takt time?

Paced Withdrawal

1 Week

1 Day

1 Shift

1 Hour

1 Takt

12

6?



Quiz 3 Question #1

1. What is Takt time?

A. The customer demand rate.

B. The rate at which the Sales departments plan to sell products to customers based on promotions.

C. The fastest rate at which your individual operations can produce the products.

D. The average amount of product bought by your customers in a week.



Quiz 3 Question #2

2. Where are supermarkets used?

A. Processes are close together but have different cycle times.

B. A customer requires specialized products from a finished goods warehouse.

C. Continuous flow is not possible due to distance, unreliability, or where processes serve multiple product families.

D. Pull can be implemented throughout the door-to-door value stream.



Quiz 3 Question #3

3. The pacemaker process:

A. Ensures that all processes downstream are controlled by supermarket pull systems.

B. Receives its products from supermarkets controlled by MRP systems.

C. Is always a bottleneck, requiring constant supervision and staff adjustment.

D. Responds to the external customer, and is usually the point at which production is scheduled in the door-to-door value stream.



Quiz 3 Question #4

4. _____________ is usually the most significant source of waste in a value stream.

A. Customer change of mind.

B. Human error.

C. Out-of-spec parts.

D. Overproduction.


Future State Questions What is the takt time?

Will we build to shipping or to a supermarket?

Where can we use continuous flow?

Where do we have to use supermarket pull systems?

At what single point in the production chain do we trigger production?

How do we level the production mix at the pacemaker process?

What increment of work will we release and take away at the pacemaker process? (leveling the volume)

SUPPORTING IMPROVEMENTSWhat process improvements will be necessary? (e.g. uptime, changeover, training)

Future State

value stream mapping 8/8/20151 © 2009 rlm & associates llc

Documents

value stream slide

entire value stream

x slide

use value stream mapping

non value

value flow

x catalina x

value stream network