By David Brunt of Lean Enterprise Academy shown at the Lean Supply Chain Forum on 5th June 2007 ran by Lean Enterprise Academy

1. Lean Enterprise Academy www.leanuk.org
David Brunt 5th June 2007
Lean Enterprise Academy
Supply Chain Forum
Creating a Value Stream Plan

2. Lean Enterprise Academy www.leanuk.org
Objectives of Mapping Extended
Value Streams
Seeing the Whole Extended Value Stream
Raise consciousness in every firm & function touching the
value stream of the enormous waste of time, effort &
movement
Typical current state 9 out of 10 steps & 99% of elapsed time are
wasted
Raise consciousness in every firm & function of the effect of its
actions on every other firm & function touching the value
stream
Learn how a value stream team with representatives from
every firm can envision a series of Future States & an Ideal
State for their shared value stream
Learn how the team can progressively implement:
A Future State 1 in which smooth, levelled pull & flow are
introduced within every facility touching the value stream
A Future State 2 in which smooth, levelled pull & frequent
replenishment loops are introduced between every facility touching
the value stream (eliminating warehousing & cross docking in the
process)
An Ideal State (providing a North Star for collectively steering
towards the perfect value stream with zero waste) by compressing
the value stream & introducing right-sized technologies
Learn how value stream teams can share costs & gains to
create win-win-win outcomes for every value stream
participant

3. Lean Enterprise Academy www.leanuk.org
Your Check List
Is top management willing to lead lean?
Is there a common language across the
whole organisation for seeing processes
and for root cause problem solving?
Is there a common way to manage lean
projects – and to sustain the results?
Is someone responsible for
reconfiguring each product value stream
through the facility and beyond?
Is there an active policy deployment
process based on value stream plans to
prioritise and resource them?

4. Lean Enterprise Academy www.leanuk.org
Current State Summary
Quality & Delivery
Demand Amplification
Consumption Map
Geography etc.
Purpose Select Product FamilySupply Chain Network & VS
Selection
Alpha Motors
Platform A
Apex
Wheels
Beta wipers
Epsilon
Fuel Pumps
Cosmic
Brakes
Eclipse
Engine
Computers
Gamma
Stampers
Ampersand
Magnets
Utopia
Castings
Michigan
Steel
Odyssey
Fasteners
Smith Heat
Treatment
Current State by Facility
PRODN.
CONTROL
Weekl
y
Sched
ule
Prod’n
Plan
Foreca
st
Daily
Call In
Foreca
st
Weekl
y Call
In
Weekly
Suppliers Customer
Mon.
+ Wed.
PRESS ASSEMBLY SHIP
I I
C/T = 30 sec.
C/O = 30 min.
3 shifts
2% Scrap
C/T = 90 sec.
C/O = 5 min.
2 shifts
3% Scrap
600 pieces
2 Day
300 pieces
1 Day
30 sec
2 days
90 sec
1 day
Total lead time 3 days
VA time 2 mins
LH Steering Bracket
RH Steering Bracket
Instrument
Panel Brace
Seat
Rail
Bumper
Brackets
X X XX
X X XX
XXX X
XX
XXX
Products
BLUES
95%
50%
Cumulative % Product RangeCumulative % of Sales
Last 1%
Supply Chain Current State

5. Lean Enterprise Academy www.leanuk.org
Summary
Supply Chain Ideal State
Future State by Facility
Quality & Delivery
Demand
Amplification
Consumption Map
Geography etc.
Purpose Select Product
Family
Supply Chain Network &
VS Selection
Alpha Motors
Platform A
Apex
Wheels
Beta wipers
Epsilon
Fuel Pumps
Cosmic
Brakes
Eclipse
Engine
Computers
Gamma
Stampers
Ampersand
Magnets
Utopia
Castings
Michigan
Steel
Odyssey
Fasteners
Smith Heat
Treatment
Current State by Facility
PRODN.
CONTROL
We
ekl
y
Sc
he
dul
e
Pro
d’n
Pla
n
For
eca
st
Dai
ly
Call
In
For
eca
st
We
ekl
y
Call
InWeekly
Suppliers Customer
Mon.
+ Wed.
PRESS ASSEMBLY SHIP
I I
C/T = 30 sec.
C/O = 30 min.
3 shifts
2% Scrap
C/T = 90 sec.
C/O = 5 min.
2 shifts
3% Scrap
600 pieces
2 Day
300 pieces
1 Day
30 sec
2 days
90 sec
1 day
Total lead time 3 days
VA time 2 mins
LH Steering
BracketRH Steering
BracketInstrument
Panel BraceSeat
RailBumper
Brackets
X X XX
X X XX
XXX X
XX
XXX
Products
BLUES
95%
50%
Cumulative % Product
Range
Cumulative % of
Sales
Last 1%
Supply Chain Current State
Supply Chain Future State Action Plan

6. Lean Enterprise Academy www.leanuk.org
What is a Plan?
“The documented results of the planning
process”
Consists of: who, why, what, where,
when, how?
Goals, objectives
Deliverables, tasks, actions
Timing
Responsibilities (& roles)
Measures
Review process

7. Lean Enterprise Academy www.leanuk.org
What is Planning?
“Planning is a process considering”
Goals, objectives
Factors
Options
Barriers
Deliverables, tasks, actions
Timing
Responsibilities (& roles)
Measures

8. Lean Enterprise Academy www.leanuk.org
What is a Lean Project
Plan?
All the above
A Gantt chart with bookends (goals,
deliverables, schedule,review process,
responsibilities)
Follows the PDCA process
Is a contract - a commitment to actually
accomplish something by a specific
time
Ref: John Shook: Leadership for Value Stream Management

9. Lean Enterprise Academy www.leanuk.org
A Format for Planning &
proposing - A3
A3 because it’s done on A3 paper
Originally used in Quality circles
Power lies in the process & thinking
behind it
An A3 lays out an entire plan (large or
small) on one piece of paper
It should be visual & concise
It should tell a story - upper left to
lower right that everyone can
understand

10. Acme Stamping Steering Bracket Value Stream Improvement
Background
Acme supplies stamped steel steering brackets (LH & RH) to State
Street Assembly. The product goes through 5 manufacturing processes &
shipping.
The customer uses 18,400 pcs/month & requires daily shipments in
pallets of 10 trays of 20 brackets. A pallet is either all RH or LH.
Current Situation
Lead time for steering bracket from coil steel to shipment = 23.6
days.
Of 23.6 days, only 188 seconds are spent making a bracket.
Large inventories of material between each process.
Long changeover times, downtime in welding.
State Street
Assembly
Michigan
Steel Co.
1x daily
I
Production
Control
Daily
Ord
er
Weekly
Fax
6 Week
Forecas
t
90/60/3
0 Day
Forecas
t
Weekly Schedule
Daily
Ship
ping
Sche
dule
Recommendations
Create continuous flow through weld & assembly
Establish TAKT time . Base the pace of work through weld & assembly
on customer demand.
Set new weld - assembly cell as pacemaker for entire value stream.
Establish EPE_ build schedule for stamping based on actual use of
pacemaker cell & pull steel coils from supplier based on actual usage by
stamping.
Improve uptime in weld.
Establish material handling routes for frequent withdrawal & delivery.
Establish new production instruction system with Levelling Box.
Analysis
Each process operates as isolated islands, disconnected from the
customer.
Push system, material builds up between each process.
Each process builds according to its own operating constraints
(changeover, downtime etc.)
Plans based on 90 & 30 day forecasts from customer. Weekly
schedule for each department. System is frequently overridden to make
delivery.
Goals
Improve profitability of steering bracket value stream.
Reduce lead time - 23.6 days to 4.5 days.
Reduce inventories:
Stamping 7.6 days to 1 day.
Welding 6.5 days to 0 days.
Shipping 4.5 days to 2 days.
Production
Control
Daily
Orde
r
Daily
Order
6 Week
Forecas
t
90/60/3
0 Day
Forecast State Street
Assembly
Michigan
Steel Co.
Daily
Order
20
OXO
X
Current State Map
Future State Map
Deliverables Responsible Review
CCF at pacemaker
Kaizen each CT to >TT
Weld uptime to 100%
CO reduction to < TT
Pull at pacemaker
FG = 2 days
KB
Matl handling
Levelling Box
Pull from Stamping
WIP = 1 day
CO < 10 min
Pull from supplier
Info flow
Daily delivery
RM = 1.5 days
Action Plan
Follow Up
Reviews & involvement of related departments TBD.
Other functions: Production Control Material Handling, Purchasing,
Maintenance, Human Resources, Finance.

11. Acme Stamping Steering Bracket Value Stream Improvement
Background
Acme supplies stamped steel steering brackets (LH & RH) to State
Street Assembly. The product goes through 5 manufacturing processes &
shipping.
The customer uses 18,400 pcs/month & requires daily shipments in
pallets of 10 trays of 20 brackets. A pallet is either all RH or LH.
Current Situation
Lead time for steering bracket from coil steel to shipment = 23.6
days.
Of 23.6 days, only 188 seconds are spent making a bracket.
Large inventories of material between each process.
Long changeover times, downtime in welding.
State Street
Assembly
Michigan
Steel Co.
1x daily
I
Production
Control
Daily
Ord
er
Weekly
Fax
6 Week
Forecas
t
90/60/3
0 Day
Forecas
t
Weekly Schedule
Daily
Ship
ping
Sche
dule
Analysis
Each process operates as isolated islands, disconnected from the
customer.
Push system, material builds up between each process.
Each process builds according to its own operating constraints
(changeover, downtime etc.)
Plans based on 90 & 30 day forecasts from customer. Weekly
schedule for each department. System is frequently overridden to make
delivery.
Goals
Improve profitability of steering bracket value stream.
Reduce lead time - 23.6 days to 4.5 days.
Reduce inventories:
Stamping 7.6 days to 1 day.
Welding 6.5 days to 0 days.
Shipping 4.5 days to 2 days.
Recommendations
Create continuous flow through weld & assembly
Establish TAKT time . Base the pace of work through weld & assembly
on customer demand.
Set new weld - assembly cell as pacemaker for entire value stream.
Establish EPE_ build schedule for stamping based on actual use of
pacemaker cell & pull steel coils from supplier based on actual usage by
stamping.
Improve uptime in weld.
Establish material handling routes for frequent withdrawal & delivery.
Establish new production instruction system with Levelling Box.
Follow Up
Reviews & involvement of related departments TBD.
Other functions: Production Control Material Handling, Purchasing,
Maintenance, Human Resources, Finance.
Production
Control
Daily
Orde
r
Daily
Order
6 Week
Forecas
t
90/60/3
0 Day
Forecast State Street
Assembly
Michigan
Steel Co.
Daily
Order
20
OXO
X
Current State Map
Future State Map
Deliverables Responsible Review
CCF at pacemaker
Kaizen each CT to >TT
Weld uptime to 100%
CO reduction to < TT
Pull at pacemaker
FG = 2 days
KB
Matl handling
Levelling Box
Pull from Stamping
WIP = 1 day
CO < 10 min
Pull from supplier
Info flow
Daily delivery
RM = 1.5 days
Action Plan
Background/current
situation
Historical/organisatio
nal/ business context
Goal/objective
The issue to be
addressed
Analysis/detailed Current State
The specifics of the issues
Fishbones
Causes
5 Whys
Requirements, constraints &
alternatives

12. Acme Stamping Steering Bracket Value Stream Improvement
Background
Acme supplies stamped steel steering brackets (LH & RH) to State
Street Assembly. The product goes through 5 manufacturing processes &
shipping.
The customer uses 18,400 pcs/month & requires daily shipments in
pallets of 10 trays of 20 brackets. A pallet is either all RH or LH.
Current Situation
Lead time for steering bracket from coil steel to shipment = 23.6
days.
Of 23.6 days, only 188 seconds are spent making a bracket.
Large inventories of material between each process.
Long changeover times, downtime in welding.
State Street
Assembly
Michigan
Steel Co.
1x daily
I
Production
Control
Daily
Ord
er
Weekly
Fax
6 Week
Forecas
t
90/60/3
0 Day
Forecas
t
Weekly Schedule
Daily
Ship
ping
Sche
dule
Analysis
Each process operates as isolated islands, disconnected from the
customer.
Push system, material builds up between each process.
Each process builds according to its own operating constraints
(changeover, downtime etc.)
Plans based on 90 & 30 day forecasts from customer. Weekly
schedule for each department. System is frequently overridden to make
delivery.
Goals
Improve profitability of steering bracket value stream.
Reduce lead time - 23.6 days to 4.5 days.
Reduce inventories:
Stamping 7.6 days to 1 day.
Welding 6.5 days to 0 days.
Shipping 4.5 days to 2 days.
Recommendations
Create continuous flow through weld & assembly
Establish TAKT time . Base the pace of work through weld & assembly
on customer demand.
Set new weld - assembly cell as pacemaker for entire value stream.
Establish EPE_ build schedule for stamping based on actual use of
pacemaker cell & pull steel coils from supplier based on actual usage by
stamping.
Improve uptime in weld.
Establish material handling routes for frequent withdrawal & delivery.
Establish new production instruction system with Levelling Box.
Follow Up
Reviews & involvement of related departments TBD.
Other functions: Production Control Material Handling, Purchasing,
Maintenance, Human Resources, Finance.
Production
Control
Daily
Orde
r
Daily
Order
6 Week
Forecas
t
90/60/3
0 Day
Forecast State Street
Assembly
Michigan
Steel Co.
Daily
Order
20
OXO
X
Current State Map
Future State Map
Deliverables Responsible Review
CCF at pacemaker
Kaizen each CT to >TT
Weld uptime to 100%
CO reduction to < TT
Pull at pacemaker
FG = 2 days
KB
Matl handling
Levelling Box
Pull from Stamping
WIP = 1 day
CO < 10 min
Pull from supplier
Info flow
Daily delivery
RM = 1.5 days
Action Plan
Recommendations
What will we do to enact
the Future State
Measures/Review
How we will know
if the actions
make the planned
difference
Plan/Schedule
What to do,
actions,
deliverables

13. Lean Enterprise Academy www.leanuk.org
Manage your plan like a
Value Stream
Focus on the timing and deliverables of
the plan
Manage the exceptions
Ask “why” things went wrong in order to
address root cause
Make sure someone is responsible
Watch that you perform reviews (even
when things go wrong)

14. Project TimingProject Timing Sheet:Project: ofAfter-Sales 1 1
Proposed Start
Actual Start
Proposed Completion
Actual Completion
Review
Project Owner:
On Target
No Deliverable Metric Resp.
Target
Date. Reviews
1920 27 5 121369 16 23 3022326 2 9 1619125
Value Stream Map
4/2/03DBMap Drawn- Develop C & F State1
4/2/03DBAction Plan- Identify Loops & Action Plan2
Technician
HB
Takt 3
techs
- Develop flow to Takt & 30min
cycles3
ST1 car wip- Develop pull system for Techs4
STProductivity- Eliminate searching for tools5
23/2/03STProductivity- Eliminate waiting for W/S Control6
5/5/03JSKProductivity- Eliminate waiting for authority7
Booking & Direct Dialogue
23/2/03DBLead Time- Develop pro-active booking process8
23/2/03DBOn-time Del- Develop a planning board9
9/3/03JSKOn time del- Develop process to highlight a/w10
Parts
5/6/03GHProductivity- Develop pull for parts11
5/6/03GHProductivity- Pre-pick parts for each job12
Valet
10/7/03JWC/T= 20m- Valet to standard cycle time13
Handover/Post-Handover
10/7/03HBSpaces- Handover parking for finished cars14
10/7/03HBSlots- Allocate handover times15
10/7/03HBDebtors- Minimise debtors list16
5/2 5/3
Jan Feb Mar Apr May
3/4 7/5
Dave Johnson
Behind
Target
Trouble

15. Lean Enterprise Academy www.leanuk.org
Ideal State:
Value Stream KPI’s
Current
State
Future
State 1
Future
State 2
Ideal
State
Total Lead
Time
Value
% of time
VA Steps
%
Inventory
Turns
Quality
Screen
Delivery
Screen
Demand Amp’
Index
Product travel
distance
2.8
days
15.8
days
23.9
days
44
days
0.08%
12 %
5
400
1.5%
8
0.6%
7
0.16%
15%
9
200
27%
8
7
21%
14
50
3
5300
79
2.5
5300
5
4300
1
1
525

16. Lean Enterprise Academy www.leanuk.org
Make your Actions Visible
Glass Wall Mangement
A document board in a highly visible
area
Current & Future State maps
Action Plan with timelines
Basic few metrics
Varies from project to project
QDCP often useful as a framework
Other documents
Layouts, communications etc.

17. Lean Enterprise Academy www.leanuk.org
Using The Scientific Method:
Plan, Do, Check, Act (PDCA)
Plan
Do
Act
Check
Plan
Communicate, scope,
discuss, set targets &
agree the plan
Do
Collect & analyse data,
carry out the work
Check
Are we performing to plan?
If not, why not?
Act (Standardise)
Standardise to sustain the
gains

18. Lean Enterprise Academy www.leanuk.org
Your Check List
Is top management willing to lead lean?
Is there a common language across the
whole organisation for seeing processes
and for root cause problem solving?
Is there a common way to manage lean
projects – and to sustain the results?
Is someone responsible for
reconfiguring each product value stream
through the facility and beyond?
Is there an active policy deployment
process based on value stream plans to
prioritise and resource them?

19. Lean Enterprise Academy www.leanuk.org
David Brunt 5th June 2007
Lean Enterprise Academy
Supply Chain Forum
Creating a Value Stream Plan