Graphically viewing the flow of value as its fit, form and/or function is improved from suppliers to customers. It shows value-added and non-value-added activities.

1. 1
Value Stream Maps
An Overview

2. 2
Enter Key
Data
I
Enter Key
Data
I
Enter Key
Data
Order Given Order Filled Order Packed
What is a Value Stream Map (VSM)?
• A Map of all the processes (value-added and non-value-added)
required to deliver a product or service (within a product family) to
the customer from start to end
• Identifies material flow and information flow
• Establishes the current state and helps develop the future state
• Identifies improvement opportunities
The Value Stream

3. 3
Value Stream Maps Defined
A Value Stream Map is a graphical depiction of all processes required to
transform a product or service (product/service family) from start-to-finish. It
includes both value added and non-value-added activities.
Definition of a VSM
Elements
 Processes
 Data for each process
 Suppliers
 Customers
 Information processing
 Value object
Features
 First developed by the Lean Enterprise
Institute.
 Illustrates how value flows through a
company
 Shows relationship between
product/service and information
needed
 Highlights where waste resides

4. 4
VSM and Process Map Difference
Value Stream Map
Process Map
It’s the sequence of operations and the tools
required to manufacture a product or deliver a
service. It’s one part of a value stream.

5. 5
• Helps us to visualize the material and information flow
• Helps us understand the relationship between material
and information flow
• Helps us to see waste
• Establishes the basis of the formation of a Lean
production system
• Allows everyone to gain a common understanding of the
current state and develop a future vision
• It becomes a roadmap for improvement
Why Map a Value Stream

6. 6
To visualize the flow of the value (as an object) and identify waste in
customer order to delivery operations
Purpose of a Value Stream Map
When to Use
 When customer demand is being met but
to do so wastes time and resources
 As a means to make improvements in
manageable steps
 To understand how the entire
organization works together on a specific
set of processes
When to Use a Value Stream Map
Benefits
 Can help shorten lead times
 Can improve asset utilization
 Establishes expectations for
improvements
 Avoids focusing on the wrong
process(es)
 Allows everyone to gain a common
understanding of the current state and
future expectations

7. 7
The Value Object
PRODUCT or
SERVICE
VALUE OBJECT
Tax Preparation Filing Form
Lunch Customer Order
Printed Wiring Board Circuit Board Fab
Consumer Loan Credit Application
Engineering Change Engineering Change Order (ECO)
The value object is a perceptible item who's fit, form and
function is improved as it makes its way through the
processes
Value Object Examples

8. 8
What is a Product/Service Family?
• A group of products or services that pass through similar
processes offering similar characteristics and features
Tools
• Quantity / Route Analysis (Q/R Analysis)
Information to record
• Product Family Name & Description
• Number of Products or Services within Family
• Demand for each Product or Service
 Quantity
 Frequency
Selecting a Product/Service Family
(Review of Q/R Analysis)

9. 9
Selecting a Product/Service Family
A product or service family requires materials, information and/or
people to go through all or nearly all the same processes.
– The sequence of processes required is the most important to be in a
family
– The frequency of demand is the second most important to belong
– The characteristics and/or features of the product or service can
disqualify a product from belonging to a family
– Use of process routes and quantity charts help to determine what’s in
and what’s out.

10. 10
Selecting a Product Family
Process Routing
87% of
demand Quantities

11. 11
0
500
1000
1500
2000
2500
E2987 E3871 E4832 E4888 E5842 E5951 E6821 E6952 E7822 E7999
Demand
Product/Service Quantity Chart
37%
68%
87%
95% 97% 98% 99% 99% 100% 100%
Pump 3 Pump 5 Pump 6 Pump 4 Pump 8 Pump 10 Pump 2 Pump 7 Pump 1 Pump 9
Selecting a Product/Service Family

12. 12
Common Issues
• Variability and Volatility
– Avoid by only capturing the as-is of operations. Don’t use averages if
variation is high. Make sure data also reflects non-standard work.
– Make sure to capture all issues that are causing processes to be
wasteful, don’t try to make reality fit into the map. Make sure the map
reflects reality.
• Process Routes (PR) identify families that have large variation in
time required.
– Capture the range of process times (not to be confused with cycle
times), and document the high and low times along with pertinent data
• Data Availability
– If unable to capture real time data, utilize the best available data and keep
moving forward

13. 13
Process Identification
Data Gathering
Map Creation
Process
Creating the Current State Map
 Walk the entire stream to document all processes
 Begin at the end and go upstream
 Draw map of processes
 Decide what data will be collected for each process
 Walk delivery to beginning again and collect data
 Use actual, observed data wherever possible
 Consolidate data and construct a single map by
consensus of the team
 Review map as a team to verify and validate

14. 14
Some Value Stream Mapping Icons
Customer /
Vendor
90/60/30
Forecast
Electronic
Signal (App/Email)
Machine
= 6
DOR = 1500”
C/O = n/a
Uptime 100%
Quality 95%
Process
People
Process
Base-Line
Data
Push
System
Monthly
Transportation
I
Inventory
1.9 Days 1.8 Days
150 Secs 800 Secs
Process Rate
Value Added
Time

15. 15
• Process Rate (Time / Unit)
• Changeover Time (C/O)
• Machine Availability (Uptime)
• Production Batch Size
• Number of Operators
• Pack Size
• Available Working Time - # shifts & time
• Scrap Rate
• Product Variations (i.e. L, R)
• Space Used
Typical Process (Baseline) Data

16. 16
Get customer to
share as much
about their
request
(6
representatives)
Research
relevant data
lakes and
proprietary
databases
(11 admin)
Manual process
to run through 3
disjointed AI
apps.
(15 analysts)
Data sets are
compiled in an
acceptable
report format
(12 Analysts)
Reports are
reviewed for
accuracy and
precision as well
as ease of read
(5 QA Analysts)
Report is
attached to a
secure email
with a read
receipt. (2
admin)
1500 seconds 800 seconds 2040 seconds 1600 seconds 1640 seconds 500 seconds
None None 1/4 hour None 1/4 hour 1/8 hour
N/A 99% 98% 99% 100% 99.9%
5%, all “orders”
are missing
important
information
98% first pass
some missing
data and need to
go back to
customer
94% first pass,
all can be
reworked.
90% first pass
most can be
reworked
98% first pass,
most can be
reworked
100
10 58 packages
waiting for data
gathering
100 data sets
are in inventory
awaiting
analysis
179 data sets
are in inventory
or staged for
compilation
54 compiled
reports are in
inventory
10 reports are
awaiting send
Customer
Places
Order
Gather
Relevant
Data
Analyze and
Process Data
Organize
Data into
Information
Verify &
Validate Email Order
Operation
Description
Drop Off Rate
Observed
Changeover
Reliability
Quality
WIP
Data Example

17. 17
Definition: The rate a single
product or service “drops off”
from a process
 DOI is observed
 If DOI can’t be observed use
time stamps or other
indicators of process rates
Defining Drop Off Intervals (DOI)
Observing DOI Example
Cure
Oven
Claims Processing = 5 Clerks
Each Clerk Takes to Process = 45 minutes
DOI = (45 min. cycle ÷ 5 clerks) x 60 = 540 sec.
VSM Overview

18. 18
Definition: The time it takes for a
product or service to go through
a process
 Processing Time for each unit is
independent of the quantity that
are processed together
 Processing Time is an
observation
Defining Processing Time
Observing Process Time Example
Cure
Oven
Claims Processing = 5 Clerks
Each Clerk Takes to Process = 45 minutes
Processing Time = 45 min. x 60 = 2,700 sec.

19. 19
= 1
Stamp
DOI = 15”
C/O Time = 30’
Uptime = 99%
Quality = 98%
= 1
Brake Form
DOI = 20”
C/O Time = 120’
Uptime = 99%
Quality = 85%
• Demand =
100k/month
• 1 Shift
Customer
Timmy’s Tin Shop
Supplier
1X
Week
Ship
Daily
27,000 Sec
5k Pcs
Takt Time
= 5.4 sec
10 days 7 days 9 days 5 days
200 sec 15 sec 20 sec
I
15,000 Sheets
I
25k Pieces
I
45k Pieces
I
2,300 Enclosures
Current State Map Example
= 5
Cut
DOI = 10”
C/O Time = 30’
Uptime = 99%
Quality = 99%
5 Machines
Production L.T. = 31 days
Processing Time = 235 seconds
Monthly P.O.
EDI
Weekly Orders
(EDI)
ERP
System
Production Control
Weekly Build
Schedule
(Paper)
Weekly Build
Schedule
(Paper)
Weekly Build
Schedule
Paper
VSM Overview
Supplier Information Systems & Flow Customer
Lead Time and Processing Time Calculations
Processes and Data Blocks

20. 20
Questions for the Current State Map
 Will you produce to finished goods or produce to deliver?
 Are all the current processes producing to takt time?
 Which processes can be coupled using continuous flow?
 Where can pull systems couple processes that cannot flow?
 Where will supermarkets and FIFO lanes be implemented?
 At which single point (pacemaker) will you schedule production?
 How will you level the production mix?
 Where does changeover time need to be addressed?
 Where do improvements in machine uptime need to be addressed?
 Where are manpower improvement opportunities?
 Which processes need quality (first time yield) improvements?
 What changes to scheduling need to be implemented?
 What other information flow improvements are required?

21. 21
What About Those Issues?
• Our Inventory & Process Blocks Could Look Like This:
Machine
DOR – 1600” – 2500”
High Variation in Milling
Time based on Model Variation
Uptime – 50% - Equipment
Unreliable / Trouble Holding
Tolerances
Scrap Rate 20% - (See above)
Process steps vary machine ops
Not always after inspection
I
Inventory of 1200
Pieces
Variable / Does Not
Represent Avg.
State
Historical Avg. Flow
Days @ 6 Days

22. 22
Marked-Up Current State Map Example
• Demand = 30,000
Enclosures/month
• 1 Shift
Production L.T. = 19.7 days
Processing Time = 275 seconds
= 5
Cut
DOI = 12”
C/O Time = 30’
Uptime = 99%
Quality = 99%
5 Machines
I = 1
Stamp
DOI = 15”
C/O Time = 30’
Uptime = 99%
Quality = 98%
= 1
Brake Form
DOI = 20”
C/O Time = 120’
Uptime = 99%
Quality = 85%
Ship
Supplier Customer
Timmy’s Tin Shop
I II
1X
Week Daily
27,000 Seconds
5k Pieces
Takt Time
= 5.4 seconds
8.5 days 3.5 days 6.2 days 1.5 days
240 sec 15 sec 20 sec
Monthly P.O.
(Faxed)
Daily Orders
(EDI)
ERP
System
Production Control
Weekly Build
Schedule
(Paper)
Weekly Build
Schedule
(Paper)
Weekly Build
Schedule
Paper
Daily Ship
Schedule
(Paper)
3,200 Sheets 5,250 Pieces 9,300 Pieces 2,300 Enclosures
30/60/90
Forecast
Reduce
Manpower
Improve
DOI
VSM Overview

23. 23
Steps to Draw the Future State Map
 Start with Marked-Up Current State Map
 Draw the pieces of the map that are the same
 Combine processes that flow
 Add supermarkets and kanban
 Add additional information flow
 Calculate lead-time and processing time
 Identify loops on the map
VSM Overview

24. 24
Supermarket
Production
Kanban
Withdrawal
Kanban
Signal
Kanban
Kanban Path
Kanban Arriving
In Batches Withdrawal
XOXO
Level Mix/Volume
FIFO
max 20 pcs
FIFO Lane
Lean Lighting
Burst
More Value Stream Icons
Push
Production
Paper
Flow
Electronic
Information
Flow

25. 25
• Demand =
100k/month
• 1 Shift
Future State Map Example
Ship
Supplier Customer
Timmy’s Tin Shop
1X
Week Daily
27,000 Seconds
5k Pieces
Takt Time
= 5.4 seconds
Daily Orders
(EDI)
Production
Control
Processes
Daily Ship
Schedule
(Paper)
= 2
Stamp/ Form
DOI = 15”
C/O Time = 120’
Uptime = 99%
Quality = 98%
Weekly
Replenishment.
30/60/90 day
Forecast (email)
6 days 2 days 2 days
Production L.T. = 10 days
Processing Time = 230 seconds
6 days 2 days 2 days
30 sec200 sec
= 4
Cut
DOI = 12”
C/O Time = 30’
Uptime = 99%
Quality = 99%
4 Machines
VSM Overview

26. 26
 What waste will be eliminated and what will still exist?
 What is the Takt Time & Pitch?
 Will we “Build to FG Supermarket” or “Build to Shipping” ?
 Where can we use continuous flow ?
 Where do we need pull systems ?
 At which single point (pacemaker) will we schedule production ?
 How will we level the production mix ?
 What increment of work will be released & withdrawn at pacemaker ?
 What process improvements are required as Future State dictates ?
Future State Key Questions

27. 27
An Example
• Takt Time = 5.4 seconds
• Container Size = 25
• Pitch = 135 seconds (2 1/4 minutes)
PITCH
What is Pitch?
Pitch is the Takt Time multiplied by an amount, usually a
container quantity, that allows for a reasonable amount of time
to deliver and take away work from a pacemaker or monument
process.

28. 28
Do You Make to Order or to a Supermarket?
• Goal is to have only one scheduling point
• Answer to the above question will determine where that point needs to be
Process 1 Process 2
Schedule
Process 3
Customer
Build to Supermarket:
Process 1 Process 2 Process 3
Customer
Schedule
FIFO
Process 4
FIFO
Build to Order:
STOP
If full

29. 29
Flow where you can
• Combine de-coupled processes
Caution!
• Keep in mind product families and similar work content
• Look for logical breaks
For Starters
• Combine Continuous Flow with Pull/FIFO systems
• Proceed to Continuous Flow as more capability,
availability, & adequate equipment established
Flow Production

30. 30
“Pull where you cannot Flow”
• Operation Cycle Time Limitations
• Process Location
• Unreliable Processes
• Long Lead Time Processes
• Upstream Processes operating in Batch Mode
Caution!
• Product/Service variations may be limiting factor
Pull Production

31. 31
Additional Things to Think About
• How can we move forward with our implementation without hurting
production?
• How will we manage the new production system (Visual Controls)?
• Who will perform the various roles in the new system?
– Cross training requirements
– Material Handling (Water Spider Concepts)
– Focused Teams
• Production
• Supervision
• Material Support
• Engineering Support
• Customer Service
• Scheduling
• Planning
• Purchasing
• Quality
• Continuous Improvement (Lean)

32. 32
Identifying “Loops” in the Future State Map
• A “Loop” is a logical grouping of improvements to be made to the
Current State in order to achieve the Future State
• Loops are used to link focus improvement activities in the Value
Stream Plan in a manner around a particular new capability in the
Future State
• Loops are used to logically sequence improvement activities in the
Value Stream Plan so that the Future State is achieved through
incremental phased implementation vs. “big bang” (everything at
once)
VSM Overview

33. 33
• Demand =
100k/month
• 1 Shift
Future State Map Example with Loops
Ship
Supplier Customer
Timmy’s Tin Shop
1X
Week Daily
27,000 Seconds
5k Pieces
Takt Time
= 5.4 seconds
Daily Orders
(EDI)
Production
Control
Daily Ship
Schedule
(Paper)
= 2
Stamp/ Form
DOI = 15”
C/O Time = 120’
Uptime = 99%
Quality = 98%
Weekly
Replenishment.
30/60/90 day
Forecast (email)
6 days 2 days 2 days
Production L.T. = 10 days
Processing Time = 230 seconds
6 days 2 days 2 days
30 sec200 sec
Pacemaker Loop
Information Loop
= 4
Cut
DOI = 12”
C/O Time = 30’
Uptime = 99%
Quality = 99%
4 Machines Mfg Loop
Supplier
Loop
VSM Overview

34. 34
• Prioritizes specific actions
• Measures progress and success
• Assigns responsibilities
• Ensures actions are completed on time
Plan to Achieve Future State Value Stream

35. 35
Value Stream Plan Example
VSM Overview
Process Owner:
Action Item Who Start Date
Planned
Completion
Date
Actual
Completion
Date
Mon Tue Wed Thur Fri
Comments
Action Plan
Timeline
Team Members:

36. 36
Role of Leadership in the use of Value Stream Mapping
• Support VSM events and activities
– Create an environment for teams to be successful
– Funding, Time and Resources
– Decision-making as needed
• Define and communicate the context of the improvements in
relation to overall business strategy
– Ensures employees don’t make changes that will later be negated by
decisions outside their control
• Communicate business priorities of improvements to be made

37. 37
Role of the Value Stream Manager
• The Value Stream Manager is operational responsible for the
processes, people and technology.
• Responsible for chartering improvement events related to the Value
Stream
• Responsible for the Value Stream Plan

38. 38
• When the Future State becomes a reality, it
automatically becomes the new current state
• Go back to the strategy developed for the company
and re-prioritize value stream maps needed
• Communicate, communicate, communicate
Is That It?