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13. value stream mapping
This document provides information on value stream mapping (VSM), including: 1. VSM is a visual tool that maps the flow of materials and information needed to bring a product to a customer. It identifies value-added and non-value added activities to improve process flow and eliminate waste. 2. There are three main types of value streams: raw material to finished product, concept to launch, and order to cash. 3. A current state map visually depicts the actual state of the current process flow, including metrics like cycle times and changeover times. 4. A future state map is then created to design an improved process flow based on eliminating waste and improving flow, with goals and an
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13. value stream mapping
- 1. LEAN SIX SIGMA 1 SL S VALUESTREAM MAPPING (CURRENT & FUTURE STATE) By: - Hakeem–Ur–Rehman MS-TQM, M.I.O.M(Operations Research) Certified Six Sigma Black Belt (Singapore) Lead Auditor ISO 9001 (UK) IQTM–PU
- 2. A visual representationof every process in the material and information flow of a product’s path from customer to supplier. What is a Value Stream Map? Information Flow Start with the Customer Material Flow
- 3. What is VSM? According to Womack and Jones, the authors of the book Lean Thinking, management must change their focus o From: o departments o functions o firms o existing assets and technologies o To: o the value stream for specific products A Value Stream is all the actions (both value added and non- value added) required to bring a product to the customer. It is: “Big Picture”, not individual processes Improving the whole, not just optimizing the parts
- 4. What is VSM? Value Added and Non Value Added Value Added Activity Transforms or shapes material or information or people And it’s done right the first time And the customer wants it Non-Value Added Activity – Necessary Waste No value is created, but cannot be eliminated based on current technology, policy, or thinking Examples: project coordination, regulatory, company mandate, law Non-Value Added Activity - Pure Waste Consumes resources, but creates no value in the eyes of the customer Examples: idle/wait time, inventory, rework, excess check offs A Value Stream is all the actions (both value added and non-value added) required to bring a product to the customer.
- 5. Highlights Sourcesof Waste Emphasizes Material and Information Flow Uses Link Individual Processes to their Customer(s) by Continuous Flow or Pull Each Process Produces only what its Customer needs when they need it Goals Value Stream Mapping TWO KINDS OF KAIZEN
- 6. Three Types ofValue Streams Raw Material PROCESS VALUE STREAM Finished Product PROCESSPROCESS Stamping Welding Raw Material to Finished Product Research Engineering Production VALUE STREAM Concept New Product Concept to Launch Product Costing Ordering Accounting Payables VALUE STREAM Product Sale Order to Cash Assembly Cell
- 7. VALUE STREAM Finished Product Raw Material VSM methodsare also used to map business processes ASSEMBLY Layout Stamping Process Machining Process Assembly Process Value Stream Plant Value Stream Typically we examine the value stream in a plant - from raw materials to finished goods. Custo -mer
- 8. Implementation without aplan will lead to disaster A Value Stream Map is a simple visual tool that helps you see the flow, find the waste and develop an improved process. Eyes for Waste . . . . . . Eyes for Flow Why do it? Clinic Supplies Syringes X Ray Film Regional Supply Manager Clinic Manager Clinic Performance Supply Forecast Frequent Delivery VP Performance Clinic Performance Admitting Blood Draw X Ray Doctor Review Billing Stage for Blood Log Time In Record Value Draw Blood Record Value Take X Ray Review X Ray Review Blood Compile data from patient records Log Time OutPull patients to Level Schedule FIFO Retake if Error Retake if Error Verify Results Verify Results Off-line Operation FIFO FIFO Provide arrival windows for patients to minimize waiting (process time) (process time) (process time) (review time) (minimal wait) (minimal wait) (minimal wait) TPCT: 18 Minutes Considerably reduced through improved flow LEGEND: Electronic Physical Flow Feedback 2 Min 2.5 Min 2.5 Min 2 Min 3 Min 3 Min 3 Min C/T 2 Minutes C/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes 96% Improvement in TPCT
- 9. Understand how thework site currently operates Design a lean flow Plan how to get there Identify Value Stream Current State Drawing Action Plan Future-State Drawing VALUE STREAM MAPPING PROCESS Identify improvement opportunities Identify and resolve gaps Specific process / product familyAdmitting I I In Hallway LEGEND: Electronic Physical Flow Feedback Blood Draw X Ray Doctor Review Billing Send to Waiting A Log Time In Record Value Draw Blood Record Value Take X Ray Review X Ray Review Blood Log Time Out Record Values Retest if Needed Clinic Supplies Syringes X Ray Film Regional Supply Manager Clinic Manager Clinic Performance Supply Requirements I In Hallway I In Hallway Low Machine Reliability RetestsRandom Arrivals Delivery Weekly VP Performance Clinic Performance Re Tests Waiting Rm B Capacity 4 Patients Fill Room Next Waiting RmA Capacity 4 Patients Fill Room First Stop if “A” is Full I People Waiting Direct from A only if B empty X Ray Blood Draw Record Value Take X Ray Record Value Draw Blood Dual Path Overflow to B I In Hallway (avg. wait in “A”) (Transfer A to B) (avg. wait in “B”) (process time) (process time) (avg. wait) (process time) (avg. wait) (review time) (avg. wait) (process time) TPCT: 423 Minutes Unknown due to extreme variability of data C/T 10 Minutes C/T 12 Minutes C/T 12 Minutes C/T 13 Minutes C/T 13 Minutes NO FIFO ! Lost Patients C/T 5 Minutes C/T 18 Minutes 10 Min 5 Min 12 Min 13 Min 120 Min 40 Min 60 Min 50 Min 90 Min 5 Min 18 Min 7+ Hours FTQ 50% FTQ 50% FTQ 50% FTQ 50% Clinic Supplies Syringes X Ray Film Regional Supply Manager Clinic Manager Clinic Performance Supply Forecast Frequent Delivery VP Performance Clinic Performance Admitting Blood Draw X Ray Doctor Review Billing Stage for Blood Log Time In Record Value Draw Blood Record Value Take X Ray Review X Ray Review Blood Compile data from patient records Log Time OutPull patients to Level Schedule FIFO Retake if Error Retake if Error Verify Results Verify Results Off-line Operation FIFO FIFO Provide arrival windows for patients to minimize waiting (process time) (process time) (process time) (review time) (minimal wait) (minimal wait) (minimal wait) TPCT: 18 Minutes Considerably reduced through improved flow LEGEND: Electronic Physical Flow Feedback 2 Min 2.5 Min 2.5 Min 2 Min 3 Min 3 Min 3 Min C/T 2 Minutes C/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes 96% Improvement in TPCT Action Item Responsible Improve X Ray Equipment Reliability Sherry Wilson (Med-Tech) Improve Blood Draw Process Vlad Technician Training - Verify Test Results Dr. Choi Implement Use of Patient Record as Data Log Joe Packer (Billing) Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly) Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL) Develop Level Schedule for Patient Arrival Ed Case (Admitting) - - - 2001 - - - - - - 2002 - - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
- 10. VSM Current State SELECTINGPRODUCT FAMILY 1 2 3 4 5 6 A X X X X X B X X X X X X C X X X X X D X X X E X X X F X X X X Products Assembly and Equipment A Product Family Create a matrix if your mix is complicated
- 11. FORM A TEAM CrossFunctional Team Manufacturing Financial Purchasing Leadership Production Control EngineeringSensei This step is critical to insure successful implementation VSM CURRENT STATE Select a cross-functional team Select team members familiar with the process Make sure the team is trained to use VSM Designate a Champion (typically a line manager)
- 12. Understand The CustomerDemand & Map the Current Processes VSM CURRENT STATE 1. Understand the customer Demand 2. Draw the current Process Map 1.What you THINK it is … 2. What it ACTUALLY is… 3. What it SHOULD be…
- 13. MATERIAL FLOW ICONS Assembly XYZ Corporation DataBox C/O=30 min. C/T=45 sec. 3 Shifts. 2% Scrap I 300 pieces 1 day Inventory Supermarket Shipment Push Finished Goods to Customer Physical FIFO First-In-First-Out Process Box Supplier/ Customer Mon + Wed Pull General Icons Uptime Changeover Kaizen Lightning Burst Operator Buffer or Safety Stock “Go See” Production Schedule
- 14. INFORMATION FLOW ICONS Manual InformationFlow Electronic Information Flow Weekly Schedule Schedule OXOX Load Leveling Box Sequenced-Pull Ball Withdrawal Kanban Production Kanban Signal Kanban Kanban Post
- 15. TOTAL PRODUCT CYCLETIME METRICS VSM CURRENT STATE 1 Shift Overtime = 4hr/d C/T = 2s Takt = 5s 2 Shifts C/O = 4 hours 5% Downtime 2 Presses WIP = 5,000 pcs WIP = 1,500 pcs Takt = 8s 4 Operators C/T = 7s 2% Scrap/Rework 20% Downtime 7 Operators Takt = 12s C/T = 11s WIP = 600 pcs 10% Downtime/ Scrap/Rework C/O = 25 min FINISHED GOODS WELDING ASSEMBLYSTAMPING Steel Supplier PC&L MRP MSS I Steel 4 days I 10,000 pcs 10 days I 2,000 pcs 2 days I 1,200 pcs 1.2 days Mon & Wed 1 time daily 6 Week Rolling Forecast Weekly Order Weekly Order 6 Week Rolling Forecast Weekly Build Schedule Daily Ship Schedule UPTIME CHANGEOVER SCRAP Layout 4 days 5 days 10 days 1.5 days 2 days .6 days 1.2 days TPc/t = 24.3 daysProcessing Time Inventory Time CUSTOMER Volume Info: 20,000 pcs/month Std. pack = 300 pcs2 shifts Takt = 54s Upper line is Production Lead Time measured in days or hours – Production Lead Time = Inventory Quantity Daily Customer Requirement Lower line is Process Time measured in minutes or seconds
- 16. VSM Current State:ACME EXERCISE
- 17. VSM Current State:ACME EXERCISE CUSTOMER: “State Street Assembly” SELECTED PRODUCT FAMILY: “Stamped–Steel Steering Brackets” State Street Assembly State Street Assembly
- 18. 1x Daily Coils 5 days II 4600 L 2400 R Stamping 1 S. Weld #1 1 1 S. Weld #2 Ass’y #1 1 1 Ass’y #2 Shipping Staging I 1100 L 600R I 1600 L 850R I 1200 L 640R I 2700 L 1440R C/O=1 hour C/T=1 sec Uptime =85% 27,600 sec. avail. C/T=39 sec Uptime = 100% 27,600 sec. avail. C/O=10 m C/T=46 sec Uptime = 80% 27,600 sec. avail. C/O=10 m C/T=62 sec Uptime = 100% 27,600 sec. avail. C/O = 0 C/T=40 sec Uptime = 100% 27,600 sec. avail. C/O = 0 Production Control MRP 18400 pieces/month -12000- L - 6400- R Tray = 20 pieces 2 shifts Daily Ship Schedule Daily Order 90/60/30 day forecasts Weekly Schedule 6 week forecast Weekly Fax Michigan Steel Company State Street Assembly State Street Assembly 500 ft coils Tues. & Thurs. VSM Current State: ACME EXERCISE
- 19. VSM - AcmeExercise Draw production lead time/value-added timeline Calculate production lead time for inventory triangles by dividing quantity of inventory by the customer daily requirement This is a really neat trick! It turns a count of inventory into the number of production days that inventory represents Stamping / Weld 18,400 pieces/mo / 20 days = 920 pieces/day 920 / 16 hours (2 shifts) = 57.5 pieces/hour 7000 pieces (total Inv.) / 57.5 pieces/hour = 121.7 hours of Inv. 121.7 hours of Inv. / 16 hours = 7.6 days of Inventory Finish the rest of the calculations. What is the inventory production lead time?
- 20. 1x Daily Coils 5 days II 4600 L 2400 R Stamping 1 S. Weld #1 1 1 S. Weld #2 Ass’y #1 1 1 Ass’y #2 Shipping Staging I 1100 L 600R I 1600 L 850R I 1200 L 640R I 2700 L 1440R C/O=1 hour C/T=1 sec Uptime =85% 27,600 sec. avail. C/T=39 sec Uptime = 100% 27,600 sec. avail. C/O=10 m C/T=46 sec Uptime = 80% 27,600 sec. avail. C/O=10 m C/T=62 sec Uptime = 100% 27,600 sec. avail. C/O = 0 C/T=40 sec Uptime = 100% 27,600 sec. avail. C/O = 0 Production Control MRP 18400 pieces/month -12000- L - 6400- R Tray = 20 pieces 2 shifts Daily Ship Schedule Daily Order 90/60/30 day forecasts Weekly Schedule 6 week forecast Weekly Fax Michigan Steel Company State Street Assembly State Street Assembly 500 ft coils Tues. & Thurs. VSM Current State: ACME EXERCISE 5 days 1 sec 7.6 days 1.8 days 2.7 days 2 days 4.5 days 40 sec62 sec46 sec39 sec PLT = 23.6 days PT = 188 sec.
- 21. VSM: FUTURE STATE Howto Create the Future State Issue: You have mapped a current state, so what should your ideal or future state map look like? Overproduction – eliminate overproduction, or attempt to level production. CHARACTERISTICS OF A LEAN VALUE STREAM Guideline #1: Produce to your Takt time “Synchronizes pace of production to match pace of sales”. “Future State Map; Takt Time is noted in the data box”
- 22. VSM: FUTURE STATE CHARACTERISTICSOF A LEAN VALUE STREAM Guideline #2: Develop Continuous flow wherever possible Produce one piece at a time Reduce batch sizes and implement material replenishment. Should you build to a finished goods Supermarket or directly to shipping? Building directly to shipping is ideal. If the competitive lead time is less than your process lead time, you will need a finished goods supermarket. If customer demand rises and falls unpredictably it might be better to use a finished goods Supermarket. The cost of holding some finished goods may well be less than the cost of extra capacity
- 23. VSM: FUTURE STATE CHARACTERISTICSOF A LEAN VALUE STREAM Guideline #3: Use supermarkets to control production where continuous flow does not extend upstream. “Where will you need to use supermarket pull systems?” Batching might be necessary Where changeover is necessary due to very fast or slow cycle times and multiple product families. Long supply chain…One piece at a time is not realistic Some processes have too much lead time or too unreliable to couple directly to other processes in a continuous flow. In these cases install a Supermarket based pull system Supermarkets are used when continuous flow is interrupted Remember, flow is better. There is a cost associated with a supermarket
- 24. VSM: FUTURE STATE CHARACTERISTICSOF A LEAN VALUE STREAM Guideline #4: Try to send the customer schedule to only one production process. “At what single point will you schedule production? (PACEMAKER PROCESS)” How you control the production at this process; sets the pace for all of the upstream processes. Any process after the pacemaker process must be continuous- flow ( no Supermarkets or pulls downstream of the pacemaker process. Therefore, the pacemaker process is frequently the most downstream continuous-flow process in the value stream.
- 25. VSM: FUTURE STATE CHARACTERISTICSOF A LEAN VALUE STREAM Guideline #5: Distribute the production of different products evenly overtime at pacemaker process. (Level the production mix). “How will you level the production mix at the pacemaker process?” Distribute the production of different products evenly over time at the pacemaker process. Grouping products makes it difficult to serve customers who need something different than the batch being produced at that time. On-time deliveries suffer. A part that is due tomorrow might not make it because it has to wait for the long batches to complete. The icon for leveling is OXOX
- 26. VSM: FUTURE STATE CHARACTERISTICSOF A LEAN VALUE STREAM Guideline #6: What increment of work will you consistently release and take away at the pacemaker process? (Level the Production Volume) Start by releasing small consistent amounts at the pacemaker process, while simultaneously taking away equal amounts of finished goods or “paced withdrawal” This consistent increment of work is called the PITCH Can be based on pack–out container quantity Establishes interval for monitoring status of production The key is to create a predictable flow which enables you to act quickly to problems. Example: If Takt time = 30 Seconds & Pack Size = 20 Pieces then Pitch = (30 Seconds X 20 Pieces = 600 seconds = 10 minutes)
- 27. VSM: FUTURE STATE CHARACTERISTICSOF A LEAN VALUE STREAM Guideline #6: (Level the Production Volume …) A tool used to by some is the (heijunka box) A load leveling box with a column for Kanban slots for each PITCH interval and a row of Kanban slots for each product type. The box indicates both the quantity produced and the time allocated to make it (based on TAKT time) Type A Type B Type C 8 8.10 8.20 8.30 8.40 8.50 Kanban card A Kanban card C 9.00 9.10 Kanban card A Kanban card A Kanban card B Kanban card B Kanban card B Kanban card C One column per pitch Here pitch=10 min. One row per product type Kanbans responded to from left to right at pitch increments
- 28. VSM: FUTURE STATE CHARACTERISTICSOF A LEAN VALUE STREAM Guideline #6: (Level the Production Volume …) Type A Type B Type C 8 8.10 8.20 8.30 8.40 8.50 Kanban card A Kanban card C 9.00 9.10 Kanban card A Kanban card A Kanban card B Kanban card B Kanban card B Kanban card C Customer requirement Shipping 4 1 3 2 Pacemaker process Drop Kanban at process Pick up one finished quantity Move finished parts to supermarket Pick up next kanban
- 29. VALUE STREAM MAPPING FUTURESTATE ACME EXERCISE FIRST VIEW of the Future-State map: Showing Takt Time, Weld/Assembly Cell, and the Finished-Goods Supermarket
- 30. VALUE STREAM Acme Co.Future State – 1st View Stamping Takt=60 sec. C/T=56 sec. C/O= 0 Uptime=100%l 2 shifts Weld& Assy L R Shipping Staging 1X Daily State St. Assembly 18,400 pcs/mo -12,000 “L” -6,400 “R” Tray=20 pcs. 2 Shifts Notice that on this Future-State Map the four welding and assembly process boxes have been combined into one process box to indicate the continuous flow. A small sketch of a cell inside the process box also indicates the cellular manufacturing concept.
- 31. VALUE STREAM MAPPING FUTURESTATE ACME EXERCISE SECOND VIEW of the Future-State map: Showing Stamping and Raw Material Supermarkets
- 32. VALUE STREAM Acme Co.Future State – 2nd View The stamping process needs to produce batches larger than 60 pieces. A trigger point is set up in the stamping supermarket which includes changeover, replenishment delay and other stamping problems. In this case stamping will keep 1.5 days of parts in its supermarket A signal Kanban is sent to the stamping process whenever the number of bins remaining drops to a trigger ( minimum ) level Signal or Batch kanban WHAT ABOUT RAW MATERIAL? To build a plant level value stream the Future State must also show a third supermarket at the receiving dock which holds coils of steel Acme can attach an internal withdrawal Kanban to each coil and send these Kanbans to their own production control department whenever another coil is used. Production control can order coils based on their actual usage instead of a best guess determined by MRP The cards are then returned to the receiving dock as a signal for shipments that are due. Milk runs for daily deliveries should be considered at this point
- 33. Stamping Takt=60 sec. C/T=56 sec. C/O=0 Uptime=100%l 2 shifts Weld& Assy L R Shipping Staging 1X Daily State St. Assembly 18,400 pcs/mo -12,000 “L” -6,400 “R” Tray=20 pcs. 2 Shifts 20 1.5 days batch bin Coils PRODUCTION CONTROL State St. Assembly 6-WEEK Forecast Daily Order 1X Daily coil coil (at the press) VALUE STREAM Acme Co. Future State – 2nd View
- 34. VALUE STREAM MAPPING FUTURESTATE ACME EXERCISE THIRD VIEW of the Future-State map: Showing Load Leveling, Changeovers, and Timeline
- 35. The materialhandler pulls the Kanbans out of the leveling box one-by-one at the PITCH increment and moves trays of brackets from the finished goods supermarket to the staging area one-by- one according to the withdrawal Kanban. Production Control Daily Orders bin bin bin OXOX WELD&ASSY L R bin Shipping Staging Load Leveling Box VALUE STREAM Acme Co. Future State – 3rdView
- 36. Stamping Takt=60 sec. C/T=56 sec. C/O=0 Uptime=100%l 2 shifts Weld& Assy L R Shipping Staging 1X Daily State St. Assembly 18,400 pcs/mo -12,000 “L” -6,400 “R” Tray=20 pcs. 2 Shifts 1.5 days batch bin Coils PRODUCTION CONTROL State St. Assembly 6-WEEK Forecast Daily Order 1X Daily coil coil (at the press) EPE= 1 shift. EPE <10 min.. change over Weld change over Welder uptime 1 sec. 1.5 days 1 day 168 sec 2 days Production Lead-time= 4.5 days Processing Time= 169sec 20 20 20 20 OXOX Daily order 90/60/30 day Forecasts Daily Order VALUE STREAM Acme Co. Future State – Complete View
- 37. Pacemaker Loop Stamping Loop Supplier Loop VALUESTREAM Acme’s Value Stream Loops
- 38. REFERENCE • Learning toSee Parts IV, V A Value Stream Mapping Workshop Mike Rother & John Shook Lean Enterprise Institute
- 39.
Editor's Notes
- #8 State that within a plant the value stream map helps to identify waste and layout the flows - this is critical for supporting a viable improvement plan. Restate that this process can also be used for any flow.
- #9 Mention that a Value Stream Map is nothing more than a picture of the operation at a point in time and pictures help us see things more clearly Emphasize - Eyes for Waste and Eyes for Flow
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- #38 MSE595LM - Lean Manufacturing