High mix custom manufacturing and VSM.

1. VSM
Value Stream Mapping
For A Made-To-Order Company
Source: Learning to See
by Mike Rother & John Shook

2. Topics Today
• What is VSM?
• Material/Product & Information Flow
• Product Family
• Current State & Icons
• Analysis & Reducing Waste
• Future State

4. VSM defined
Value Stream Mapping – is all the actions (both
value and non-value added) currently required
to bring a product through the main flows
essential to every product.
2 Flows in Manufacturing:
1) Material/Product Flow 2) Information Flow

5. How is VSM done?
VSM
• Choose & analyze “product families”
• Map Current and develop future state
• Material/Product & Information flow
• Walk the process 2 times & document. Start
at the end – Why?
• One 11 x 17 and a pencil
• Pictorial representation of layout

6. Topics Today
• What is VSM?
• Material/Product & Information Flow
• Product Family
• Current State & Icons
• Analysis & Reducing Waste
• Future State

7. Material & Information Flow
How can we flow information so that one
process will make only what the next
process needs when it needs it?
THINK POINT OF USE

8. Topics Today
• What is VSM?
• Material/Product & Information Flow
• Product Family
• Current State & Icons
• Analysis & Reducing Waste
• Future State

9. Product Families
IDENTIFY your product families
from the customer end of the
value stream.
A PRODUCT FAMILY - is a group of
products that pass through similar
processing steps and over
common equipment in your
downstream processes.
CONSIDERATIONS – how much is
wanted by the customer and how
often? VOLUME & FREQUENCY

10. Product Families

11. Topics Today
• What is VSM?
• Material/Product & Information Flow
• Product Family
• Current State & Icons
• Analysis & Reducing Waste
• Future State

12. ① Take a quick walk along the entire door-to-door value stream.
② Go back and gather information at each process.
③ Begin at the downstream end first (e.g. Shipping). CLOSEST TO THE CUSTOMER
④ Map the whole value stream as one group, DON’T have teams branch off. Nobody will gain
a thorough education of the VSM.
⑤ Always draw by hand in pencil (retractable pencils with erasers work best)
Current State Steps
PRACTICE OFTEN BEFORE GATHERING A TEAM

14. Topics Today
• What is VSM?
• Material/Product & Information Flow
• Product Family
• Current State & Icons
• Analysis & Reducing Waste
• Future State

15. LEAN Value Stream
All we are really trying to do in lean
manufacturing is to get one process to
make only what the next process needs
when it needs it.

16. (2) DEVELOP CONTINUOUS FLOW – This can be achieved with a combination of
continuous flow and some pull/FIFO.
EX. You ship to an outside plating process one time per day. The plater can only handle 50 pieces
per day, so you set up a FIFO lane sized to hold, at most, 50 pieces of plating work. Whenever the
lane is full the upstream process stops producing parts to be plated. In this manner, the FIFO lane
prevents the supplying process from overproducing, even though the supplying process is not
linked to the plater via continuous flow or a supermarket.
(3) PACEMAKER PROCESS – How you control production at this process sets the pace
for all the upstream processes. For custom products, the scheduling point needs to be further
upstream.
Analyzing & Reducing Waste (cont.)

17. (4) LOAD LEVELING – Paced withdrawals of small, consistent quantities of work. A good
visual control system can help achieve this.
Analyzing & Reducing Waste (cont.)

18. Topics Today
• What is VSM?
• Material/Product & Information Flow
• Product Family
• Current State & Icons
• Analysis & Reducing Waste
• Future State

19. Future State Question
1. What is the lead time?
2. Where can you see continuous flow processing?
3. At what single point in the production chain will you schedule
production?
4. How will you level the production mix?
5. What increment of work will you consistently release?
6. What process improvements will be necessary?