Value stream mapping - A Simple Primer

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Value stream mapping - A Simple Primer

  1. 1. Value Stream Mapping A Simple Primer
  2. 2. The Story of Manufacturing 2
  3. 3. Beware the Jargonator! 3 Waste Variation Strain
  4. 4. Value Stream Map A Value Stream Map (VSM) is a hand-drawn map that helps people to see and understand process, material and information flow through a value stream, from start to finish. 4
  5. 5. Current & Future States 5 Action Plan
  6. 6. Elements of the VSM Customer Demand • What are the different product variants within this value stream? • Who are the different customers? • What is the high, low and mean ordering pattern? (Monthly/weekly/daily) • How often do we deliver to this customer family? • What is the takt time? • Decide on which product variants to include for rest of VSM analysis 6 Customer Part A = 1000/wk Part B = 500/wk Part C = 500/wk (400 pcs/day)
  7. 7. Elements of the VSM Manufacturing Process Flow 7 • Mark processes that add value (not departments, mark the difference) • Identify metrics for each process (eg. Cycle time, value-added time, lead time, changeover losses, no. of machines, operators, shifts, batch sizes, scrap/rework, etc.)
  8. 8. Elements of the VSM Material Flow 8 Tombstone • Map the material flow along with frequencies • Mark each location of inventory, with quantity
  9. 9. Elements of the VSM Information Flow 9 Weekly Schedule Production Control MRP Daily Orders 30/60/90 Day Forecasts Weekly Fax 6 Week Forecast • What is the sequence of steps to process a customer order? • How are the shop orders and purchase orders generated and distributed? • Who gets them? • How frequently? • How are exceptions handled? • How do we react to customer emergencies? • How do we schedule production (i.e. How does the operator know what to build next)? • Each process block on the VSM must be backed by a process flow chart with as much detail as required by the process • Processing times (for each step of information analysis or communication) and waiting times (between information flow processes) must be measured
  10. 10. Elements of the VSM Information Process Flow Chart 10
  11. 11. Elements of the VSM Lead Time Bar 11 7 Days10 Days 4 Days 4.5 Days 7 Days 2.3 Days 120 Secs 360 Secs 65-73 Secs 120 Secs 62-68 Secs Processing Time = 727-741 secs Lead Time = 34.8 days Path 2 Path 1 Path 1 = 8+2+7+2.3+7 =26.3 Path 2 = 10+4+4.5+7+2.3+7=34.8 • Convert all inventory quantities into DOH and mark processing times on the step graph • Add all DOH times to compute Non-value added time. Add all cycle times to compute Processing Time. The total of the two is lead time
  12. 12. How much longer are you going to sit here? Go draw me a VSM!
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