Your SlideShare is downloading. ×
VSM – Current & Future
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

VSM – Current & Future


Published on

How to maximise the overall flow? …

How to maximise the overall flow?

Published in: Business

1 Comment
  • Quite comprehensive and good presentation.
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. VSM – Current & Future
    How to maximise the overall flow?
    Anand Subramaniam
  • 2. 2
    “If you are going through hell, keep going.”
    - Sir Winston Churchill
  • 3. 3
    VSM – Overview
    VSM – Current State
    VSM – Future State
    Measures & Targets
  • 4. VSM Overview
  • 5. VSM – Why, What, When, Who etc
    Focuses on maximising the overall flow
    Spans the entire value chain, from raw materials receipts to finished goods delivery
    Forms the basis of an improvement plan and a common language
    Key tool for Lean implementation makes process & problems visible.
    Is a qualitative tool for identifying and eliminating waste (or muda)
    Involves drawing - current state, future state & an implementation plan
    Paper and pencil tool to help you visualise and understand the linkage between material and information flow
    Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC)
    Aligns organisations processes, creates a sense of teamwork / ownership
  • 6. Value & Non Value Add
    Non Value Add
    Any activity that consumes time and / or resources & does not add value to the service or product for the customer.
    These activities should be eliminated, simplified, reduced, or integrated.
    • Required – Legal / regulatory
    • 7. Unnecessary - Waste
    Value Add
    Any activity the customer values (and is willing to pay for)
    • Who are your customers?
    • 8. What do they really want?
    To be considered “value add”, a process step must have YES to all these questions
    • Does the customer care?
    • 9. Does it change form / function?
    • 10. Is it done right the first time?
    • 11. Is it required by law or regulation?
  • VSM Principles
    Diagnostic 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
  • 12. Definitions
    Process Name: A brief name for the process for which the VSM is being conducted / process being proposed for improvement. Include key steps and activities
    Customer(s): Identifies the customer(s) of this process, both internal and external to the process itself. Include VOC/ VOB / VOA
    Supplier: The internal and/or external persons/entities that provide information, documents, supplies, people, etc. for the process.
    Boundaries of this Process: Defines specifically where this process begins and ends for the purposes of this intervention. This includes nailing the scope using the SIPOC process.
    Problem Statement: The reason(s) you want to change this process. Use of 5w & 2H – to change, improve, merge, create or do nothing.
  • 13. Definitions (Contd.)
    Value Added: Any activity that adds to the form or function of the work or any activity that the customer** is willing to “pay” for.
    Non-Value-Added: Any activity that consumes resources but creates no value for the customer. Any activity that is not necessary and considered as a waste (use 8w).
    C-T Cycle Time or Lead Time: The amount of time it takes to complete one step / item from the end of the previous step to the end of the current step. Includes changeover time, wait time,)
    C-O Change Over Time: The amount of time it takes to change over from the end of the previous step to the beginning of this step.
    V-A% Value Added %: An estimate of the percentage of Value-Added Time within the Cycle Time for the step. This is what the customer would be willing to pay for – change in form or function)
  • 14. Definitions (Contd.)
    R-N-V-A% Required Non Value Added %:An estimate of Non-Value-Added Time that is required by law, rule, regulation, or other mandate.)
    U-T Up Time %: The percentage of time a person / machine is available
    F-P-Y First Pass Yield %: The percentage of time that quality standards are met the FIRST time
    Parking Lot: Issus and concerns might come up that may not be directly related to process flow. Issues not related to process flow should be "parked" and addressed in another manner - outside of the process mapping exercise.
  • 15. VSM – Current State
  • 16. Current - Process Challenges
    Duplication of effort
    Too many hand-offs / approvals / workarounds
    Lack of skills / training
    Lots of travel
    High WIP
    Waste in process – bottlenecks / backlogs
    Different prioritisation rules
    Lots of waiting / lead times
    Lost time - people looking for work and / or re-work loops to correct errors
    Lack of communication
    Too many Dead zones - places where work gets held up or lost
    Slow throughput/ turnaround
  • 17. Where does one start?
    VSM Scope
    • VSM Charter / Scope
    • 18. Process Boundaries / Scope
    • 19. SIPOC
    • 20. Spaghetti
    • 21. Product Family
    • 22. Start with a single product family
    • 23. Current & Future State
    • 24. Collect data on process & system
    • 25. Be specific
    • 26. How many finished part numbers in family?
    • 27. How much is demanded?
    • 28. How often?
    • 29. Verify & repeat the Process
    • 30. Develop Implementation Plan
    Product Family
    Current state drawing
    Future state drawing
    Work plan & implementation
  • 31. VSM Charter
    Improvement Objectives
    Strategic Plan
    Critical Success Factors
    Process Description
    Manual / Auto System
    Metrics / Measures
    Process - Start / End
    High Level Scope
    Benefits Realisation
    Process Champion
    Risk & Tolerance
    Roles & Responsibilities
  • 32. VSM - Boundary
    Current State
    Define the boundaries
    Define the value
    Identify the tasks and flows of material and information between them
    Identify resources for each task and flow
    Create the current state map
    Future State (Design)
    Visualise the “Ideal State” and design the future state map
    Identify value added and waste from Current State
    Reconfigure the process to eliminate waste & to add “value”
    Implementation Plan
    Develop Action plans and track
  • 33. Defining Boundary - Specifics
    Before 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 returnedto the preceding step.
    Capture the process as it is actually performed and include workarounds, rework, informal activities, feedback loops etc
    In lean, we commonly define “work-in-process” is anything you can’t 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 (Takt at varied times)
  • 34. Material & Information Flow
    Use the “SIPOC” document to map the product flow
    Map the whole value stream by conducting a “walk through” of the 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
    Don’t get bogged down to many details, use assumptions / parking lots
    Bring your stopwatch and do not rely on information that you do not personally see
    Numbers or percentages – use the best data available to you. An estimate, while not 100% accurate, is still closer to being accurate than nothing
    Draw by hand and use a pencil
  • 35. Takt Time
    Enables “continuous flow” and minimum inventory
  • 36. 19
    Takt Time - Example
    Takt time is flow at the speed of customer demand.
    Need to complete a unit every 66 sec to satisfy average customer demand
  • 37. Product Family Matrix
  • 38. Data Collection – Process Analysis
  • 39. Value Stream Map
  • 40. VSM – Future State
  • 41. Future VSM – Improve / Eliminate
    Takt Time
    Just in Time
    Waste Elimination
    Continuous Flow
    Set-up Reduction
    Pull Production
    Look for..
    Standard Work
    Line Balancing
    6S / Workplace Organisation
    Total Productive Maintenance
    Level Production
    Mistake Proofing
  • 42. VSM – Future State Questions
    Where, when and how will scheduling be done?
    How often will we check our performance to customer needs?
    What does the customer really need?
    What should be the Takt time?
    How do we perform load leveling and what will be the product mix?
    Future State
    Is there an opportunity to balance the work load and/or different activities?
    How do we control work between interruptions? How will work be prioritised?
    How can we improve the flow, with fewer interruptions?
    What process improvements are necessary, to achieve the future state?
  • 43. Future State Metrics
    Reducing errors, rework, handoffs, waiting and lead time
    Lead time
    Customer service
    How well do you provide services (internal and external)
  • 44. Future State – Blue Print
    Define 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 / Takt Time
    Draw the Future State Process Flow
    Map the Future State Material & Information Flow
    Future metrics & measures
    Assumptions / Parking Lot
    Outline an Implementation Plan
  • 45. VSM – Measures & Targets
  • 46. Process Measurements
  • 47. VSM - Baseline & Targets
  • 48. Targets & Measures
  • 49. “To repeat what others have said, requires education; to challenge it, requires brains.”
               - Mary Pettibone Poole
  • 50. Good Luck