1. Process Excellence Training
Value Stream Mapping
1

2. Agenda
Introduction to Value Stream Design
Drawing a Current State
Characteristics of a Lean Value Stream
Drawing a Future State
Implementation
2

3. What is Value-Stream?
Value Stream
PROCESS
PROCESS
Cutting
Welding
Raw Material
e Steam =
PROCESS
Assembl
y
cell
Finished Product
all activities (value adding and non value adding) requir
to bring a product from raw material into the hands
of a customer.
3

4. What is Value-Stream Mapping?
 Follow a product‘s production path from beginning
to the end, and draw a visual representation of every
process in material and information flows (using icons)
 Then draw a „future state“ (using icons) of how the
product should flow.
4

5.  See the big picture, not just individual processes
What is different?
 See how the process currently operates
 Design of both material and information flow
 See linkages between information and material flow
 See the waste and the source of waste
 Establish a common language for improvement
 Foundation for designing lean flow and the future state
 Change in management focus
 Focus on shortening lead time
 Focus on connecting processes so value can flow
5

6. Value Stream Mapping icons
Material flow icons
Manufacturing
process
Operato
r
External
Data Box
Truck
Shipment
Push Arrow
Finished Goods to
Customer
Supermarke
t
Withdraw
al
First-In-First-Out Sequence
Flow
Inventory
Continuous Improvement
sign
6

7. Value Stream Mapping icons
Information flow icons
Schedule
Load Levelling
Manual information
flow
Electronic information
flow
Kanban Post
“Go see”
7

8. eal picture of the reality without excuses or exceptions
Example of Value Stream Mapping
8

9. Value Stream Design
Material flow is drawn from the left to right on the
bottom half of the map in the order of processing
steps, not according to the physical layout of the
plant.
Information flow is drawn from right to left in the top half of the
map space.
Do not map every purchased part in your product family. Just
draw the flow for one or two main raw materials. Presentation
of all purchased parts is best shown on a process level layout
diagram.
9

10. Value Stream Design
Choose a
Product Family
Drawing the
Current State
Understanding the current condition
of the value stream
Drawing a
Future State
Creating a „lean flow“ of value stream
Implementation
Projects
10

11. Concentration on one Product Family
Define your Product Family through:
Common „assembly“-steps and machines
Production Steps
Steering left
Steering right
Internal columns
Seat slide
Push rod column
spot
welding
x
x
x
x
varnishing
x
x
x
x
hand
assembly
x
x
x
x
x
audits
x
x
x
x
11

12. Drawing the Current State the current
Understanding
Choose a
Product Family
Drawing the
Current State
Drawing a
Future State
Implementation
Projects
condition of the value stream
 Material and Information flows
 Draw with symbols!
 Go along the value stream and
draw by hand, with pencil
 No standard times!
 The current state is basis for the
next step!
 Analyse a similar value stream in
case of new product!
Steps:
1. Showing the customer.
2. Add Processes, Data, Inventory.
3. Add Material Flow.
4. Add Information Flow.
5. Complete with Lead time and
process time.
12

13. 1. Step: Information about the
The critical place to begin any improvement effort is clear specification
of theCustomer
value of a product as perceived by the end customer. Otherwise
you run the risk of improving a value stream which efficiently provides
the end customer with something other than what’s really wanted. Thus
mapping begins with the customer requirements.
 18.400 pieces per month:

• 12.000 per month „LH“

• 6. 400 per month „RH“
 Customer plant operates on two shifts.
 Returnable packaging with 20 brackets per container. The
customer orders multiples of containers.
 One daily shipment to the assembly plant by truck.
13

14. 2. Step: Production process of the
Stamping Co.
 Stamping Company‘s processes for this product family involve stamping
a metal part followed by welding and assembly. The components are then
staged & shipped to the vehicle assembly plant on daily basis.
 Switching between type „LH“ and „RH“ brackets requires a one hour
changeover in stamping and a 10-minute fixture change in the welding
processes.
 Steel coils are supplied by Michigan Steel Co. deliveries to Stamping Co.
arrives Tuesdays and Thursdays.
 Work time:

20 days per month

Two shift operation in all production departments

Eight (8) hours per shift, with overtime if necessary


Two 10-minute breaks during each shift. Manual processes stop during
breaks.
Unpaid lunch
14

15. 
3) SPOT-WELDiNG II (dedicated to this product family)
2. Step: Process Details
Stamping Co.

- manual process with one operator

- cycle time: 46 sec.

- changeover time: 10 min. (fixture change)

- machine reliability: 80%

- observed inventory:

- 1.600 pieces of Type „LH“

- 850 pieces of Type „RH“

4) ASSEMBLY I (dedicated to this product family)

- manual process with one operator

- cycle time: 62. Sec.
- cycle time: 1 sec. (60 pieces per minute)

- changeover time: none

- changeover time: 1 hour

- reliability: 100%

- automated 200 ton press with coil (automatic) material feed

- observed inventory:

- machine reliability: 85%

- 1.200 pieces of Type “LH“

- 1/2 operator

- 640 pieces of Type „RH“

- observed inventory:

5) ASSEMBLY II (dedicated to this product family)


1) STAMPING (These press makes parts for many products)

- 4.600 pieces of Type „LH“ finished stampings

- 2.400 pieces of Type „RH“ finished stampings

- 5 days of coils before stamping

- manual process with one operator

- cycle time: 40 sec.

- changeover time: none

- reliability: 100%
- cycle time: 39 sec.

- observed finished-goods inventory in warehouse:

- changeover time: 10 min. (fixture change)

- 2.700 pieces of Type „LH“

- machine reliability: 95%

- 1.440 pieces of Type „RH“




2) SPOT-WELDiNG I (dedicated to this product family)
- manual process with one operator
- observed inventory:

- 1.100 pieces of Type „LH“


- 600 pieces of Type „RH“


6) SHIPPING
- Picks up parts from finished goods warehouse
and stages them for the truck
15

16. 3. Step: Material flow
 Customer:
 One daily shipment to the assembly plant by truck.
 Supplier:
 Steel coils are supplied by Michigan Steel Co. deliveries
to Stamping Co. arrives Tuesdays and Thursdays.
 !!Focus on the main raw materials!
16

17. 4. Step: Production control of the
Stamping Co.
 Receives a 90/60/30-day forecast from the customer and enters this
into MRP.
 Receives a daily order from the customer.
 Issues a 6-week forecast to Michigan Steel Co. via MRP.
 Ensures coil steel by weekly faxed order release.
 Generates MRP-based weekly departmental requirements based upon
customer order, WIP inventory levels and anticipated scrap and
downtime.
 Issues weekly production schedules to Stamping, Welding and
Assembly processes.
 Issues daily shipping schedule to Shipping Department.
17

18. 5. Step: Drawing the timeline
 Processing time according to the real observations /measures during
the VSM (e.g. line output)
 Lead Time for inventory:
inventory quantity / daily customer requirement
 Example:
Daily requirement: 18.400 / 20 days = 920 parts
Lead time for inventory between “Assembly #2” and “Shipping”:
(2700+1440) / 920 = 4,5 days
 Production lead time
= time for one part to make its way through the plant
= time between paying for raw material and getting paid for product
18

19. Current Value Stream
19

20. Drawing a Future State
Choose a
Product Family
Drawing the
Current State
Drawing a
Future State
Implementation
Projects
The draft of a stream
... is the power of the value stream design
 A future state draw is the base.
 70 % exactness of the current state is
sufficient, then currently refine (pencil!)
 Material- and information streams
 Start on the actual drawing
 First repetition comes from the existing
steps and machines:
We can displace, combine or remove
furnishings, deal smaller procurements...
20

21. An Ideal State in the Form of a North
Star
Current
State
Today
Future
State
Future
State
True
North
2 -3 alternatives
21

22. „Waste“
Wastes are elements of production, that don‘t create values.
Wastes only cost time and money.
Important points concerning „waste“:
 Waste points to problems in value streams.
Waste is more a symptom than a reason for problems.
 We must detect the reason for waste and eliminate it.
22

23. „Overproduction“
 „Overproduction“

=
More

production than needed for the next process

=

production than needed for the next process

=

production than needed for the next process
Sooner
Faster
23

24. Characteristics of a 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. We are trying to link all processes-from
the final customer back to raw material- in a smooth flow
-without detours- that generates the shortest lead time,
highest quality and lowest cost.
So how can you-on your shop floor- actually get one
process to produce only what the next process needs when
it needs it?
24

25. Individual Output against System
Output
 Question:
 How fast do we have to
 produce?
If only one decided to increase the takt, it will not help the team!
25

26. Guideline 1:Produce to your takt time
how often you should produce one part or product to meet
customer requirements
used to synchronize the pace of production with the pace of
sales, particularly at the pacemaker process
it is a reference number that gives you a sense for the rate at
which a process should be producing
On the future –state map, takt times are noted in the data
boxes
available working time
per day
Takt time =
customer demand rate
per day
Producing to takt requires :
-provide fast response (within takt) to problems
-eliminate causes of unplanned downtime
-eliminate changeover time in downstream, assembly-type
processes
26

27. Guideline 2: Develop continuous flow wherever
possible
a) Batch and “push” type production
b) Continuous flow refers to producing one piece at a
time, with each item passed immediately from one
process step to the next without stagnation (and many
other wastes) in between.
On the future –state map, each process box should describe an area of f
27

28. Guideline 3: Use supermarkets to control production
where continuous flow does not extend upstream
CUSTOMER PROCESS goes to supermarket and withdraws what it needs when
it needs it.
SUPPLYING PROCESS produces to replenish what was withdraw.
A production Kan ban triggers production of parts, while a withdrawal Kan
ban is a shopping list that instructs the material handle to get and transfer
parts.
28

29. Guideline 3: Use supermarkets to control production where
continuous flow does not extend upstream
Supermarket:
-belong to the supplying process and is used to schedule
that process
-Should be located near the supplying process to help that
process maintain a visual sense of customer usage and
requirements
-the “customer” process=material handler then comes to
the suppliers supermarket and withdraws what is needed
-these withdrawals trigger the movement of kanban cards
from the supermarket to the supplier process, where they
are used as the only production instruction for that process
29

30. Alternatives for Push
Plan
Plan
Push
I
A
Plan
I
B
Customer order
I
C
D
Customer order
One Piece Flow
A
1.)
B
C
D
Customer order
FiFo (with WIP) 2.)
A
FIFO
B
FIFO
C
FIFO
D
Customer order
Supermarket Pull
3.) A
B
C
D
30

31. Advantage of pull
… instead of …
31

32. Guideline 4: Try to send the customer schedule to
only one production process
That is call Pacemaker process because how you control
production at this process sets the pace for all the upstream
processes.
The material transfers from the pacemaker process
downstream to finished goods need to occur as a flow (no
supermarkets or pulls downstream of the pacemaker
process).
the future –state map the pacemaker is the production process that is
ntrolled by the outside customer’s orders.
32

33. Guideline 4: Try to send the customer schedule to
only one production process
Downstream: only Continuous Flow or
FIFO
Upstream: Supermarket
Process 1
Process 2
Process 4
Process 3
Continuous Flow
Process 1
Process 2
FIFO
Process 3
FIFO
Process 4
Continuous Flow or FIFO
With custom products the scheduling point often needs to be further
upstream.
33

34. 34

35. Guideline 5: Distribute the production of different
products evenly over time at the pacemaker process.
(Level Production mix)
NOT
GOOD:
Assembly Schedule
600 LH + 320 RH per day
(Result)
⇒1 shift: 460 LH
⇒2 shift: 140 LH + 320 RH
BETTER:
according tray size:
(Result)
20LH-20LH-20RH- 20LH-20LH20RH-…
IMPORTANT:
Strive for near-zero changeover time and frequent changeovers at the
pacemaker process!
35

36. Guideline 6: Create an “initial pull” by releasing and
withdrawing small, consistent increments of work at
the pacemaker process. (Level the production
volume).
Release only small, consistent amount of production instruction
(usually between 5-60 minutes) at the pacemaker process and
simultaneously take away an equal amount of finished goods.
consistent increments of work at the pacemaker process =
pitch
Pitch= takt time * the number of parts one finished goods
container holds
Pitch= Management time frame
How often do you know your performance to
customer demand?
36

37. Indicate not only the
quantity to be produced,
but also how long it takes
to produced that quantity
based on takt time.
37

38. Guideline 7: Develop the ability to make “every part every day”
(then every shift, then every hour or pallet or pitch) in fabrication
processes upstream of the pacemaker process.
EPEx
“x” can be week, day, shift, hour, pitch or takt
This describes how frequently a process changes over to produce all
part variations.
38

39. Key questions for the future state
1. What is the takt time?
2. Will you build to a finished good supermarket from which the customer
pulls or directly to shipping?
3. Where can you use continuous flow processing?
4. Where will you need to use supermarket pull systems in order to control
production of upstream processes?
5. At what single point in the production chain( the “pacemaker process”)
will you schedule production?
6. How will you level the production mix at the pacemaker process?
7. What increment of work will you consistently release and take away at
the pacemaker process?
What process improvements will be necessary ? Reliability, changeover…
39

40. What process improvements will be
necessary?
Choose a
Product Family
Drawing the
Current State
Drawing a
Future State
Implementation
Projects
A Plan to Get There
 Do not wait!
 Implementation reviews:
„No Problem“ = a Problem
 To „manage the exceptions“ you need a pla
– Tie your plan to measurable business
objectives
– Break your future state design into „loop
– Make an implementation plan
– Point out the connections to the layout p
– To check implementation, you should be
walk along the value stream
In which value stream loop do you start?
40

41. Results - Indicator comparison
Key indicators
Results
Before
After
Target
Continuous flow
Production output
(per shift)
Space
(sqm)
Lead Time (WIP x Takt)
(Hours)
Number of operators
(per day)
Productivity
(pieces/operators no./hr)
Transparency
41

42. 42