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Value Stream Mapping

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This presentation posted on Slideshare by Advance Innovation Group will help you to build an understanding about Value Stream Mapping. Value Stream Mapping an organized way of looking at the process designed or to be designed to identify the value adds and non-value adds within the same. This presentation will enhance your knowledge regarding the usage of VSM icons and nomenclature.

Value Stream Mapping when compared with the traditional process mapping technique, is more customer focused. Looks at the end to end value stream, helps in identifying the wastes and their causes.

You may also visit our blog for more videos, articles, documents on the developing better understanding what is Value Stream Mapping. Visit our website www.advanceinnovationgroup.com to access the blog, or follow this link http://advanceinnovationgroup.com/blog.

Published in: Business

Value Stream Mapping

  1. 1. Introduction To Value Stream Mapping
  2. 2. Value Stream Maps vs. Process Maps Value Stream Maps (VSM) •Customer focused •Look at the end to end value stream •Helps us to visualize flow •Helps see waste and its source •Becomes the blueprint for improvement •Shows the linkage between information and physical flows •“Reality Map” Traditional Process Maps •Functional Focused •Varies in scale from Macro to Micro functions •Used to understand the steps in a process •No value judgments made •Used for continuous improvement, business planning, scoping or establishing boundaries of what and where •Planned Map
  3. 3. History of Value Stream Map •Originated in Toyota referred…to as “Material and Information Flow Mapping” •Used by Toyota to show both current and future states (6-9 months in future) as part of the lean deployment process •Concept Introduced in “Lean Thinking” •Further developed by the Lean Enterprise Institute in “Learning to See”
  4. 4. •Time series of all activities & steps (both value add and non-value add) required to bring a product, service or capability to the customer •Value Streams cut across functional Boundaries •Focus on Three Main Value Streams ITA –Inquiry to Award ATO –Award to Order OTR –Order to Remittance Most Value Streams have 2-5% Value Add TimeValue Stream Defines
  5. 5. What is Value Stream TOTAL VALUE STREAM SUPPLIERS YOUR PROCESS CUSTOMER A value stream shows all the tasks (Value and Non-Value) required to bring a product, service, or capability from start to customer delivery Value streams cut across functional boundaries
  6. 6. VSM Convention Info Flow: Flow “Upstream”…moving left on page Product Flow: Flow “Downstream” toward customer …moving right on pageInfo Flow What gets delivered to the customer. Applies equally to mfg & non-mfg Place Customer in upper right hand corner of VSM Typically: Product Flow
  7. 7. VSM Icon Use & Nomenclature Receive Order Write Down Order Part# Lookup Plant Order Review Contact Customer Enter Order I 50 = 24 I 125 I 55 I 60 I 35 = 24 = 24 = 4 = 24 = 5 DOR = 25” Resources = 24 Quality = 50% DOR = 120” Resources = 24 Quality = 98% N/A Resources = 24 Quality = 90% DOR = 600” Resources = 4 Quality = 95% DOR = 200” Resources = 24 Quality = 95% DOR = 60” Resources = 4 Quality = 92% I 75 34 Min. 20 Secs 23 Min. 57 Min. 25 Min. 27 Min. 16 Min. 21 Secs 25 Secs 600 Secs 19 Secs 22 Secs Cycle Time Proc. Time = 182 Min = 12 Min. Process Data Box… Key info about specific process Inventory… Amt sitting in queue waiting to be processed Process Box… A point in the value stream at which flow stops and inventory has the opportunity to accumulate Employees… Number of people required to perform process
  8. 8. VSM Icon Use & Nomenclature Receive Order Write Down Order Part# Lookup Plant Order Review Contact Customer Enter Order I 50 = 24 I 125 I 55 I 60 I 35 = 24 = 24 = 4 = 24 = 5 DOR = 25” Resources = 24 Quality = 50% DOR = 120” Resources = 24 Quality = 98% N/A Resources = 24 Quality = 90% DOR = 600” Resources = 4 Quality = 95% DOR = 200” Resources = 24 Quality = 95% DOR = 60” Resources = 4 Quality = 92% I 75 34 Min. 20 Secs 23 Min. 57 Min. 25 Min. 27 Min. 16 Min. 21 Secs 25 Secs 600 Secs 19 Secs 22 Secs Cycle Time Proc. Time = 182 Min = 12 Min. wait Time Data Summary Box Processing Time… Time it takes to perform the process Wait Time time something waits to be processed Cycle Time = sum of wait Times + sum Processing times
  9. 9. ITEM TITLE Available Work Time Batch Drop Off Rate (DOR) Process Lead Time Setup Time Yield People Observed People Capable Enabled Technology Other BUILD P TO C SHELL P TO C SHELL 8-5 less 1 hour lunch 1 N/A 2 MINUTES REPEAT Unknown 4 4.5 OUTLOOK, EFAX, P TO C, HARD FAX, TELEPHONE, GENIUS, SHARED DRIVE Process Data Box In Use Process Data Box Legend Process Data Box Filled Out TMF CHECK CALL DEALER TO VERIFY ASSIGN MERCHANT NUMBER SEND THANK YOU LETTER 32400 61 32400 115 32400 32400 5-20 5-20 5-20 5-20 75-100 120-300 30-35 15-60 75-100 120-300 30-35 15-60 60-250 30 N/A N/A APP 100% 95-100% 100% 98-100% 6 6 6 6 8 8 8 8 BLANK BLANK BLANK BLANK 1.35DAY 2.5 DAY 75"-100" 75"-100" 33" 15"- 60" I I
  10. 10. VSM by “hand” first…
  11. 11. Example of a Current State Map Then Digitze Map…
  12. 12. Helpful Hints •Use Actual, Observed Data •Begin at Customer delivery & Map in Reverse Flow •Walk the Entire Process first before Recording Data •VSM Should be Created by a Cross Functional team •Use a Standard Unit of Time •Think in terms of Relevancy…not Pinpoint Accuracy Creating a VSM Should Take 6-36 Hours Depending on Your Value Steam
  13. 13. Icons Represents Notes Air Shipment Movement of material by PUSH Create rail or other icons as needed. Identifies material movements that are pushed by producer, not pulled by the customer ( the following process ). Truck Shipment Inventory Count and time should be noted. 225 pieces 1.5 days Tuesday + Thurs Note the frequency of shipments. I
  14. 14. Icons Represents Notes Manual flow of information Electronic flow of information For example: production schedule shipping schedule For example: EDI, Fax, etc. FIFO Movement of finished goods to the customer Supermarket Physical pull Transfer of controlled quantities of material between processes in a first in first out seq. Also shows movement of raw material and components from suppliers if they are not pushed. Pull of materials from a supermarket. Indicates a device to limit quantity and ensure FIFO flow of material between processes. Shows location of SM…not to be confused with a warehouse
  15. 15. Icons Represents Notes 20 Production Kanban Withdrawal Kanban Tells a process how many of what can be producedand gives permission to do so. Tells a process how many of what can be withdrawnand gives permission to do so. OXOX Load leveling Sequence-Pull Ball Tool to level the volume and mix of Kanban over a specific period of time. Gives permission to produce a predetermined type and quantity. Weekly Schedule Information Describes an information flow.
  16. 16. Kaizen ! Icons Represents Notes Kaizen lightning burst Buffer or safety stock Highlights critical improvement needs at specific processes. Can be used to plan Kaizen events. “Buffer” or “Safety Stock must be noted. Signal Kanban Kanban post instruction that orders from a batch process, eg: stamping. Place where Kanban are collected and held for conveyance .
  17. 17. Processes –single or Aggregated…see notes Process Data Box Icons Represents Notes Outside Sources •A point in the Value Stream at which flow stops and inventory has the opportunity to accumulate. •One box equals such a process –or –multiple steps in the process Used to show customers, suppliers and outside manufacturing processes. Process Name ABC COMPANY C/T=120 sec. C/O=22 min. 3 SHIFTS 3% SCRAP W/T=20 hrs Used to record information concerning a process, department, etc...

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