The Lean Enterprise Lean Foundations Continuous Improvement Training Value Stream Mapping Welcome participants to Value Stream Mapping workshop. (Please retain the free lean site reference with the materials.) Lean Foundations Continuous Improvement Training freeleansite.com

Learning Objectives The purpose of this module is to present the foundational principles of Waste Identification and elimination. Learn the History and Purpose of Value Stream Mapping. Value Stream Mapping and analysis is the foundation of WASTE IDENTIFICATION and REDUCTION… ASK participants to bring data to this class – cycle times, travelers, process maps, process observation sheets, re-work cycles, quality data (scrap and rework percentages), set-up times, wait times etc. MAY TAKE SEVERAL TEAM MEETINGS TO GET ALL THE DATA… freeleansite.com

Short History Origins in Toyota, circa1955 – The way of doing business… Also called “Material and Information Flow Mapping” Used by Toyota Motors to show both current and ideal states as part of the lean implementation process Discussed in “Lean Thinking” Further developed and documented by the Lean Enterprise Institute of Brookline, Mass. “Learning to See” 1996 1998 Lean/ Green or Black Belts should have these books. They are an excellent resource. freeleansite.com

What is the Value Stream? SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER Total Value Stream Emphasize – Value Stream is all actions … All the actions, both value added and non-value added, currently required to bring a product from raw materials to the customer. freeleansite.com

The Value Stream Perspective A value stream is all the actions (both value added and non-value added) currently required to bring a product (or transaction) though the main flows essential for every product/ service: from raw material/ (customer need), through all the required steps, then – back to the arms of the customer. Taking a value stream perspective means working on the big picture, not just individual processes, and improving the whole, not just optimizing the parts. Value Stream Mapping applies to transactional processes as well. SUPPLY PARTNERS YOUR PLANT OF COMPANY CUSTOMER TO END USER TOTAL VALUE STREAM freeleansite.com

Value Stream Mapping Let’s look at an EXAMPLE freeleansite.com

Value Stream Map – Operational example DOWNTIME 15% MELT 903M INSP CHEM Hold Furnace Cast 903 REC STAGE WIP 870 QTIME 72H WIP 696 QTIME P/T 6N LOT 75K P/T 8H WIP 8 COILS 120K P/T 3 HR 15K WIP 8 6 8 3 DOWNTIME 15.5% STORE STAGE INSP PROFILE BREAKDOWN 911 This is an example of a simple Value Stream Map. Review the process steps with participants. LEAD 2231.1 VA 210.1 WIP 746K QTIME 8 1OK WIP 108K 8HR Q/T 8 7% SCRAP LOT 1 COIL TIME .1 WIP 15K Map major process steps I.D. Value (green/ yellow) / Non-value (red) Capture all times, quantities Prioritize areas to improve X SHIPPED PER DAY 850K 1.870 WIP BEING WORKED 4.276 WIP BEING STORED freeleansite.com

Value Stream Map – Big Picture example MANUFACTURING LEADTIME = 3 1/2 DAYS CUSTOMER LEADTIME = 2 WEEKS Prod’n Cont. 12 WEEK FORECAST Customer Supplier Orders Orders 4 WEEKS OUT Daily OXOX IRREGULAR PITCH = 60 MINUTES 1 DAY MACHINING ASSEMBLY TEST FINISH DISPATCH This is an example of a little higher level Value Stream for the Plant. ADDENDUM OF SYMBOLS located at end of MODULE. C/T=1568 m C/T=936 m FIFO C/T=60 m FIFO C/T=210 m FIFO C/T=30 m C/O=50 min. C/O=0 min. C/O=30 min. C/O=0 min. C/O=0 min. 2 SHIFTS 1 SHIFT 1 SHIFTS 1 SHIFTS 1 SHIFTS 2 DAYS OPER. 48 2 DAYS OPER. 24 OPER. 5 OPER. 6 OPER. 2 1568 MINS 936 MINS 60 MINS 210 MINS 30 MINS < 1/2 DAY <2 ENGINES <2 ENGINES LT<3 1/2 DAYS 900 MINS 900 MINS 240 MINS 150 MINS 120 MINS freeleansite.com

Why do Value Stream mapping? To understand the current situation - The “big picture” point of view (To use as a tool to improve the whole vs. optimizing the parts…) Exposes sources of waste - not just the waste Shows linkage between information flow and material flow Forms the blueprint to identify areas of improvement Information and Material flow through a Value Stream Map. freeleansite.com

What does Value Stream Map do for us? It helps visualize more than just the single-process level, i.e. assembly, welding, etc., in production. You can see the whole flow. It helps to see more than waste. Mapping helps to see the sources of waste in your value stream. It provides a common language for talking about manufacturing (and transactional) processes. It makes decisions about the flow apparent, so you can discuss them. Otherwise, many details and decisions in your area just happen by default. By adding data, it ties together lean concepts and six sigma techniques, which helps you avoid “pet projects”. Value Stream Maps provide a lot of detail. freeleansite.com

Value Stream Mapping is an Essential Tool It forms the basis of an implementation plan. By helping you design how the whole door-to-door flow should operate - a missing piece in so many lean efforts - value stream maps become a blueprint for improvement. Imagine trying to build a house without a blueprint! It shows the linkage between the information flow and the material flow. No other tool does this. Value Stream Map is good for fully documenting the baseline. freeleansite.com

Value Stream Mapping is an Essential Tool It enhances the quantitative tools and layout diagrams that produce a tally of non-value added steps, lead time, distance traveled, the amount of inventory, and so on. Value stream mapping is a qualitative tool by which you describe in detail how your facility should operate in order to create flow. Numbers are good for creating a sense of urgency or as before/ after measures. Value stream mapping is good for describing what you are actually going to do to affect those numbers. Value Stream Map is good for fully documenting the baseline. freeleansite.com

Value Stream Mapping Let’s look at an EXAMPLE of Process Mapping A good start, but no data, no symbols, no color coding etc freeleansite.com

Books: Learning to See, Lean Thinking Process Map w/ Analysis - example Steel Fabrication Process (Current State) Can you identify areas for improvement? Structural Steel Sawed Steel Recd Steel stocked Plate Steel burned Parts Stocked Weld Shop Blasting Booth Sand Bast Paint Shop Components machined Inspection Elect/Mech Parts Recd Parts stocked Mech parts to Mech Assembly Staging Mech Assembly Elect parts to Elect Assembly Staging Elect Assembly Ship to Customer Warehouse Shipping Crating Run Test Inspection Books: Learning to See, Lean Thinking freeleansite.com

Books: Learning to See, Lean Thinking Process Map w/ Analysis - example Steel Fabrication Process (Future State) Structural Steel Sawed Steel Recd Plate Steel burned Weld Shop Blasting Booth Sand Bast Paint Shop Components machined Inspection Elect/Mech Parts Recd All parts to Assembly Staging Mech/Elect Assembly Ship to Customer Shipping & Crating Inspection & Run Test Books: Learning to See, Lean Thinking freeleansite.com

Impact of “Immediate Opportunities” The Process Map good place to start process analysis activities: Safety issues resolved first ! Visible results in areas Kaizened “Low hanging fruit” addressed Product flows more smoothly through that part of the stream Many pockets of success … But – Process Maps have limited impact on the total VALUE STREAM Always attack SAFETY issues first ! KAIZENS are good to attack low hanging fruit, but keep working on the entire flow. Work the bottlenecks, the NVA steps (red boxes). freeleansite.com

Main Process/ Information Flow Many products/ information flows share the same major steps Operational Level (SIPOC) Process Map (functional) Value Stream the flow of information and material of a product or service door-to-door in an organization. Executive Value Streams are higher-level transactions generally across “Business” functions such as Supplier determination, Order Entry, Work Order generation, Operations, Shipping, Billing, Accounts Payable, etc Product Family or Main Process/ Information Flow (door to door) “Value Stream” freeleansite.com

Focus on one product family Administrative Procedure. Material and Information Flows In Process Analysis, the information flow (paper) is treated with just as much importance as the material flow. Focus on one product family or “major line” or Administrative Procedure. Map information or data flows in a different color. freeleansite.com

Routing Standardization via simplified XY Matrix Can we identify “Part/ Product Families” ? A Product Family Product family rationalization is a good place to start. Many products and information flows may share the same major steps (sequencing). Process Analysis and subsequent Improvement gains will be multiplied when looking at Part/ Product “families”. If we improve that process, then - PRODUCTS A, B, and C are cost reduced !! freeleansite.com

based on Customer pull rate What will be seen? Production System based on Customer pull rate Just-in-Time (JIT) Making Products at the Right Time Based on When They’re Sold People Autonomation (Jidoka) Stop at Every Abnormality Equipment Information Engineering Raw Material These are the categories or areas to be concerned with when properly documenting a process using VSM concepts. Wip / Sub Assy’s Finished Product Leveled Production Document flow of information and material ! freeleansite.com

Value Stream Mapping (VSM) builds on Process Mapping Safety Quality Speed Value Stream is a detailed analysis derived from the initial Process Map. freeleansite.com

Value Stream Mapping Let’s look at an EXAMPLE with data, color codes etc freeleansite.com

Value Stream Map - example (Current State) Supplier Customer Prep Move Mach Move Insp Store Store Stage Rec 9000 1 deliver each month C/T 15 min Batch 12 Req 450 pcs Q/T 480 WIP150 Dist 285” 8 per day Q/T 60 min 50 pcs C/T 1 min Req 450 C/T 8 min Batch 6 Dist 30” 8 per day Example of a simple Value Stream Map (machining example) RED = non-value added, YELLOW = non-value-added but necessary, GREEN = value added Ship Move Move Assy Insp Store Stage Q/T 60 min 50 pcs Dist 400” 8 per day Q/T 480 WIP150 Dist 50” 20 per day C/T 5 min Req 450 Oper 5 C/T 5 min Req 450 Oper 2.5 C/T 85 min 10 Orders freeleansite.com

Value Stream Map - example (Future State) Customer Supplier Supplier Delivers Daily Maintains 475 in Kanban Kanban Kanban Kanban Ship Prep Mach Assy Example of a future state – A VISION. 15 pc 10 Replin C/T 75 min 10 Orders C/T 15 min Batch 12 Req 450 pcs C/T 1 min Req 450 35 Pcs 25 Replin C/T 5 min Req 450 Oper 5 Store orders 3 Day ahead of shipping freeleansite.com

Value Stream Mapping Best Practices Always map in pencil - rough out 1st, clean later. Start at the customer and work backwards. Don’t be too detailed at first, list major process steps. Walk the actual material and information flows yourself. Start with a quick walk, to get a feel for the flow and sequence then, go back and talk to the right people for each step. (Don’t forget second and third shifts) Cover these in detail, very important to take your time. Don’t map the organization. Map the flows through the organization. freeleansite.com

Value Stream Mapping Best Practices Color Code the operations. (Red, Yellow, Green) Add cycle time, wait time, travel time, quantities, yields, inventory, and number of machines/ operators required. Always collect ‘current-state’ information while waking along the actual pathways of material and information flows. Map current and future state. (With Timelines and Target Dates) Involve the Management team totally. Show Management or Leadership Team as you go along, don’t wait till the end. They may have much insight into the real flow – especially the flow and timelines of the information component part of it. Don’t map the organization. Map the flows through the organization. freeleansite.com

Value Stream Mapping: Application Deliverables: Map your current process On completed Value Stream Map, include: Color Code (all Value added operations vs. Non-value added operations) Document process and cycle times, distances and units (as best as possible) Develop a “Future State” Map (if time permits) Provide a prioritized list of potential opportunities for improvement … i.e. – 7 wastes tagged by Safety, Quality or Speed of Execution (SQS categories) Exercise may take over an hour – you can eliminate the spaghetti diagram or process observation sheet if necessary. (Those may have been done earlier…) Value Stream Map is where it all comes together – it’s the Process Map With DATA !! freeleansite.com

Value Stream Symbols and Definitions Addendum Definitions – FYI only SYMBOLS unique to Value Stream Mapping Books: Learning to See, Lean Thinking freeleansite.com

Books: Learning to See, Lean Thinking Material Icons Represents Notes WELDING Manufacturing Process One box equals an area of continuous flow. All processes should be labeled. Box also used to identify departments such as production control. ABC COMPANY Outside Sources Used to show customers, suppliers and outside manufacturing processes. C/T=120 sec. C/O=22 min. 3 SHIFTS 3% SCRAP W/T=20 hrs Process Data Box Used to record information concerning a manufacturing process, department, etc. I Inventory Count and time should be noted. 225 pieces 1.5 days Tuesday + Thurs Truck Shipment Note the frequency of shipments. Books: Learning to See, Lean Thinking freeleansite.com

Books: Learning to See, Lean Thinking Material Icons Represents Notes Air Shipment Create rail or other icons as needed. Movement of prod’n material by PUSH Identifies material movements that are pushed by producer, not pulled by the customer ( the following process ). Movement of finished goods to the customer Also shows movement of raw material and components from suppliers if they are not pushed. Supermarket Physical pull Pull of materials from a supermarket. Transfer of controlled quantities of material between processes in a first in first out seq. Indicates a device to limit quantity and ensure FIFO flow of material between processes. FIFO Books: Learning to See, Lean Thinking freeleansite.com

Books: Learning to See, Lean Thinking Information Icons Represents Notes Manual flow of information For example: production schedule shipping schedule Electronic flow of information For example: EDI, Fax, etc. Weekly Schedule Information Describes an information flow. OXOX Tool to level the volume and mix of Kanban over a specific period of time. Load leveling Sequence-Pull Ball Gives permission to produce a predetermined type and quantity. Books: Learning to See, Lean Thinking freeleansite.com

Books: Learning to See, Lean Thinking Information Icons Represents Notes 20 Production Kanban Tells a process how many of what can be produced and gives permission to do so. Withdrawal Kanban Tells a process how many of what can be withdrawn and gives permission to do so. Signal Kanban Production instruction that orders production from a batch process, eg: stamping. Kanban post Place where Kanban are collected and held for conveyance . Books: Learning to See, Lean Thinking freeleansite.com

Books: Learning to See, Lean Thinking General Icons Represents Notes Lathe Changeover Kaizen lightning burst Highlights critical improvement needs at specific processes. Can be used to plan Kaizen events. Buffer or safety stock “Buffer” or “Safety Stock” must be noted. Books: Learning to See, Lean Thinking freeleansite.com

The Lean Enterprise Lean Foundations Continuous Improvement Training Value Stream Mapping Thank participants for attending Value Stream Mapping workshop. Lean Foundations Continuous Improvement Training freeleansite.com