This document discusses lean principles for identifying a company's value chain. It defines key lean concepts like process mapping, value stream mapping, takt time, and cycle time. Process mapping involves documenting the steps in a process using standard shapes to identify functions, decisions, delays, and information flow. Value stream mapping takes a broader view of the entire process from supplier to customer. Takt time represents the rate of customer demand that operations must match. The goal of these lean tools is to identify waste and optimize process flow and productivity.

1. T02
BASIC LEAN TRAINING
Principle 2
Identify the value chain

2. Objectives
The objectives of this chapter are:
Identify the Value chain using lean methods

3. Principle 2
Identify the VALUE CHAIN
 Process Mapping
 VSM (Value Stream Mapping)
 Takt time, cycle time, lead time
Tools:

4. Information and
material flow
Identify the value chain for each service or product family and
eliminate waste
Principle 2

5. Advantages:
The global view of all processes and not just the
visualization of individual processes
Understand the relationships between the
various process steps and the various times and
the effect of balancing the flow
Identify Waste
Optimization of the whole
Dynamic document
Mapping of the
Value Chain
Principle 2

6. Principle 2
Process Mapping
Process Maps are used to:
 Capture current & new process information
 Identify flow of transaction
 Identify responsibility of different business functions
 Clearly show hand-off between functions
 Identify Value Added (VA) & Non Value Added (NVA) activities

7. Principle 2
Process Mapping
4 Steps to Create a Process Map
1. Create macro level flow of process
2. Determine functional areas
3. Detail the steps
4. Connect with arrows

8. Process Mapping Shapes
Function Functional areas within a
process
Beginningandendpoints of
the process.
Any task / activity where work is
performed. Usually written as a
noun and a verb.
Places where information is checked
against established criteria (standards)
& decision is made on what to do next.
Any time information is waiting before
the next process or decision (i.e. in-
baskets, out-baskets, waiting to be
batched)
When information / product is placed in
inventory (i.e. a file cabinet, directory).
Principle 2
Process Mapping

9. Single straight arrow – used between tasks performed by
same person or area, but no physical movement has occurred.
Box arrow – indicates physical movement of information /
product from one person / function to another.
Jagged arrow – indicates electronic movement of information
from one person / function to another.
Process Mapping Arrows
Principle 2
Process Mapping

10. 1. Create macro level flow of
process
2. Determine the functional
areas
Process
FunctionFunctionFunctionFunction
Principle 2
Process Mapping
Process Mapping Steps

11. 3. Detail the steps 4. Connect with arrows
Process Mapping Steps
Principle 2
Process Mapping

12. Exercise “Process
Mapping”
Directions:
Working in table groups, use
the Order Fulfillment
narrative description below
to develop both a macro flow
chart and a process map.
First, an order is received via telephone or mail. If the order is received by
telephone, the Customer Service Rep answering the call enters the order into
the computer during the phone call. If the order is received by mail, the
Mailroom delivers it to Order Entry where it is entered into the computer.
Once orders are entered into the computer, an Order Picker prints the order
(packing list), picks the requested items and sets them in a bin with the
packing list. The bin is then sent to the Shipping Department.
The Shipping Department checks the order against the items in the bin. If the
order is incorrect, the bin is sent back to the Order Picking area for re-picking.
If the order is correct, Shipping then chooses an appropriate sized box and
packs the order. The box is then labeled, weighed, stamped and stacked for
postal pick up.
Principle 2
Process Mapping

13. There are 3 kinds of VSM
Process
Factory
Enterprise
Supplier
Client
Total Value Chain
Typically, starts here...
Principle 2
Value Stream Mapping

14. Example
Principle 2
Value Stream Mapping

15. External Process (client / Supplier)
Transport
Process Data box
Inventory
Eletronical Information
Manual Information
Raw Material / Finished product
or service flow
Pushed flow
Pulled flow
Production Kanban
Operator
Principle 2
Value Stream Mapping
The VSM’s nomenclature – Most common symbols

16. Example
Principle 2
Value Stream Mapping
Review the current
Value Chain

17. …achieving this result
Many organizations focus their attention on reducing AV (added value) time …
Non value added
… but by concentrating on Waste….
Total time in the Value Chain = Lead Time
Principle 2
Value Stream Mapping
Common Improvement Activities

18. 100%
WS 1 WS 2 WS 3 WS 4 WS 5
WorkLoad
Principle 2
Value Stream Mapping
Review the current
Value Chain
Load balancing

20. It is the customer who sets the pace of production
Principle 2
Takt Time
If Value describes what the customer wants, then
Takt Time describes how often he wants it.

21. TAKT TIME
The rate of production
trequiremenoutputAverage
timeworkingAvailable
TimeTakt
__
__
_
It is essential to understand Takt Time to assess
the capability
Principle 2
Takt Time

22. Customer demand = 26000 units / week
Total Time Available per day = 3 shifts x 8 h X 5 days X 60 min x 60 s
= 432000 s
Takt Time = Total Time Available in Period
Customer demand in the period
Takt Time = 432000” = 16,62 seconds/unit
26000 un.
Maximum, at every 16
seconds a piece must be
ready, so that the
customer’s order can be
matched at the right time!
Takt Time Calculation Example
Principle 2
Takt Time

23. https://www.youtube.com/watch?v=3osu7aJHwk0
Video: Improved Coffee Kaizen

24. LEAN FOR WORK AND LEAN FOR LIFE
Train the trainer to teach Lean skills in VET