Value Stream Mapping (VSM) Training Cleveland, TN

Definitions Value stream: a series of activities, some valued added and others non-value added, that are required to deliver a product or service. Value stream mapping: a tool used to document and map all activities in a value stream to clearly see waste and implement a plan to remove or reduce the waste.

What does Value Stream Mapping accomplish? Links the business strategic and profit plan goals to improvement activities using a Business Case. Develops a Current State Map, which graphically represents all the manufacturing and non-manufacturing activities required to complete customer requirements. Develops a Future State Map, representing the Value Stream AFTER all the selected improvement activities are completed. Develops an Implementation Plan which lists all the improvement opportunities, in the order of priority, listing individuals responsible for completing these activities and the target completion dates. Implementation plans also include periodic review activities. A list of Performance Metrics to be improved, with baseline performance and the amount of improvement within target dates.

Value Stream Map Sections Information Loop Supplier Loop Customer Loop Manufacturing Loop Lead Time Data Bar

Value Stream Map Sections Supplier Loop Shows main suppliers and their performance for value streams. Common metrics shown: On time performance Defective parts per million

Value Stream Map Sections The information loop shows: The sequence of steps to process a customer order How shop orders and purchase orders are generated and distributed How we schedule production

Value Stream Map Sections Customer Loop Displays the main customers and the value stream’s performance in fulfilling the customers demand. Common metrics shown: Fill Rate On time delivery Sales

Value Stream Map Sections Manufacturing Loop Displays the performance of process steps through the value stream. Common metrics shown (as applicable): Average production rate Number of changeovers and time taken Set-up or machine criticality Number of shifts Downtime Number of operations Number of operators Average inventory at workstation Represented by a tombstone

Value Stream Map Sections Lead Time Data Bar Displays cycle time for operations in the base and inventory days on hand for the operations on the crests. At the end of the bar, total cycle time and total lead time are shown. Cycle Time: time it took to work on the product Lead time: time it took to finish the product, including cycle and wait times. This makes the Lead Time bar on a Value Stream Map very important. On the saw-tooth form of the Lead Time bar, place the cycle times in the base and Inventory represented by Days On Hand on the crests. Total Lead Time is calculated by adding all cycle times and the DOH inventory. Total cycle time is the sum of all the cycle times. These two numbers tell us how long we really worked on a product and how long it sits in our plant. Ratio of the two numbers, called Value Added Ratio can be used to track progress of Lean deployment.

Value Stream Map process Once a current state map is developed for the operation, it is analyzed to identify opportunities for improvement and growth Customer concerns Expanded capacity requirements for new products Flow of materials and information Points of high inventory and/or delays impacting on time performance High scrap and rework processes Machines with large downtime Machines with long setups Processes with low throughput Opportunities for improvement are identified by Kaizen Bursts on the map, examples of this are shown on the right. Long setups High Scrap Dollars High downtime

Value Stream Process Based on the opportunities identified in the current state map, a future state map is developed The future state map is meant to show the destination of the value stream once the opportunities identified in the current state are addressed The transition between current state and future state is usually less than a year Plants will often develop an ideal state map, targeting a future state implementation timeline greater than a year. This ensures consistency in VSM sessions leading up to the ideal state.

Value Stream Process Based on the opportunities identified in the current state map, a future state map is developed The future state map is meant to show the destination of the value stream once the opportunities identified in the current state are addressed The transition between current state and future state is usually less than a year Plants will often develop an ideal state map, targeting a future state implementation timeline greater than a year. This ensures consistency in VSM sessions leading up to the ideal state.

Value Stream Process The connector between Current State and Future State maps is known as the implementation plan. The implementation plan is the collection of action items and projects that when executed will address the improvement opportunities identified in the current state. Once the implementation plan is completed, the future state map becomes the current state. At CTN, the EBS Pull process is used to develop the implementation plan.

Value Stream Process The EBS Pull process prioritizes improvement opportunities identified through value stream mapping and strategic division objectives Opportunities are ranked by plant leadership based on their impact on: Growth Hi-5 metrics Profit plan achievement Building organizational capability Top projects are assigned an organizational leader and executed throughout the year

Why do value stream mapping? A current state map of the entire value stream allows everyone to fully understand and agree on how value is produced and where waste occurs The future state map provides the foundation on which to base process improvement initiatives and to select priorities The mapping process creates a structured continuous improvement approach that enforces continuous improvement culture The OpEx team will be conducting deployment checks on Value Stream Mapping. Please review our local VSM and EBS pull prioritization list in the main hallway