Chapter 5 Value Stream Mapping

IT-465 Lean Manufacturing2 What is VSM? It is a method of creating a “one page picture” of all of the processes that occur in the defined scope. Similar to Process Flow charting. VSM differs in that it includes both the material and information flows.

IT-465 Lean Manufacturing3 Value Stream Map

IT-465 Lean Manufacturing4 Why VSM? Business and manufacturing wastes that occur in processes can be easily identified. Eliminating business waste is not the problem, finding it is. Taiichi Ohno Aids in finding waste throughout the entire “picture”.

IT-465 Lean Manufacturing5 VSM Steps 1.Pick the product or product family to map (improve). 2.Create the “Current State” VSM. 3.Create the “Future State” VSM. 4.Develop an action plan to make the FSVSM the CSVSM.

IT-465 Lean Manufacturing6 VSM Step #1 Pick the product or product family to map (improve). –VSM should focus on product/product families or series of processes where competitive pressures are high, customer satisfaction is low, or for products that represent the largest share of the sales volume –Best when they begin with an initial goal, such as, reducing product or service lead times.

IT-465 Lean Manufacturing7 VSM Step #2 Creating the “Current State” VSM –Form a team and select a team leader –Educate the team in VSM methodology –Decide the scope of the VSM. Brainstorm the initial map. –Create an initial “rough draft” map –Determine missing info the VSM requires. –Walk the process –Build final Current State VSM.

IT-465 Lean Manufacturing8 VSM Step #3 Create the “Future State” VSM –Begin with CSVSM “Starbursts” (lightning bolts) –Validate Sr. Mgt. support –Goal for improvement with realistic time frame for each targeted area of improvement –Draw the Future State Map.

IT-465 Lean Manufacturing9 VSM Step #4 Develop an action plan to make the Future State VSM the Current State VSM. –Regularly scheduled meetings –Kick-off meeting –Ongoing communication –Top level report-out. Post the three VSM’s –Original Current State, desired Future State, and now.

IT-465 Lean Manufacturing10 Tools for Identifying & Analyzing Problems Pareto chart Cause & Effect Diagram

IT-465 Lean Manufacturing11 Pareto Diagram Alfredo Pareto ( ) –80-20 rule vital few & useful many (Dr. Joseph Juran)

IT-465 Lean Manufacturing12 Cause and Effect Diagram Represents meaningful relationships between an effect and its causes.

IT-465 Lean Manufacturing13 Cause & Effect Diagram a.k.a. Fishbone, Ishikawa Diagram

IT-465 Lean Manufacturing14 Problem Analysis Tools Histogram Scatter Diagram Control Chart Process Capability Study Error Proofing

IT-465 Lean Manufacturing15 Histogram Describe the variation in the process. Graphically displays the process capability.

IT-465 Lean Manufacturing16 Scatter Diagram Cause and effect relationship

IT-465 Lean Manufacturing17 Control Charts Is a technique for problem solving and the resulting quality improvement.

IT-465 Lean Manufacturing18 Visual Communication Uses specific methods & technology to provide fast, two-way communication between teams, shifts, coworkers, and management. –Safety –Quality –Delivery –Productivity Takt Time = Total min’s avail for prod/# of parts needed –Production Boards

IT-465 Lean Manufacturing19 Continuous Improvement Plan The Plan – Do – Check – Act Model (PDCA)

IT-465 Lean Manufacturing20 Evolution of VSM Pioneered by Henry Ford in 1920’s Similar to other process flow mapping Information and material flow mapping –Perfected by Toyota –Enables a company to visualize flow of information and materials in a process Scalable, standardized method to visualize commerce

IT-465 Lean Manufacturing21 VSM Purpose Value Stream Mapping is not: A tool for tactical implementation A spaghetti diagram Importance Identifies opportunities for implementation and clues to effective action

IT-465 Lean Manufacturing22 Key Belief of VSM Customer Satisfaction Meeting (or exceeding) customer expectations for “value utility” The goal is to delight the customer

IT-465 Lean Manufacturing23 VSM – Waste, Opportunities, and Value Waste Anything expended beyond the minimum required to satisfy customer expectations Opportunity Overlooked or un-capitalized value-generating activities Value Anything the customer is willing to pay for, or Satisfies three tests –It changes something –Customer cares about it –Done right the first time

IT-465 Lean Manufacturing24 VSM – Who Should be Involved Involvement is dependent on scope of VSM Scope could be: –Supply Chain –Enterprise –Functional –Service –Process

IT-465 Lean Manufacturing25 VSM – Group Involvement No larger than eight people Should always include: –VSM facilitator –Key focus area personnel –Key support personnel –Key customers –Key suppliers –Management sponsor

IT-465 Lean Manufacturing26 Applying VSM Creates a vision of the future Encourages participation Reduces risk of “islands of excellence” Helps remove barriers to good communication Provides a plan for implementation Provides metrics by which to measure performance

IT-465 Lean Manufacturing27 Summary Value Stream Mapping Flexible and scalable as a tool Illustrates what areas should be addressed and why Is a team sport Drives change to reduce waste and improve customer satisfaction