1. IENG 451 - Lecture 06 Process Tools:
Value-Added / Non-Value-Added, and Value Stream Mapping
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

2. Value Stream Maps (VSM)
IENG 451 / 452
Value Stream Maps (VSM)
The VSM is derived from SIPOC and Swim Lane diagrams:
SIPOC and Swim Lane diagrams are high level maps
These high level diagrams should be validated before VSM
VSMs capture the details of the process, graphically
VSMs are used for:
Documenting the current state of the process, “AS-IS”
Documenting the planned state of the process, “TO-BE”
Identifying opportunities for improvement projects
VSMs require data collection and take some time
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

3. VSM Illustration (AS-IS)
IENG 451 / 452
VSM Illustration (AS-IS)
Shows information from SIPOC diagram
Suppliers / Customers
Inputs / Outputs
Process Steps
Shows information from Swim Lane diagram
Who does / functions
Physical flows
Communications
Shows information from data collection
Matl handling method
Inventory levels
Timing & performance data
Dennis, P. (2015)
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

4. VSM Construction Steps
IENG 451 / 452
VSM Construction Steps
Determine the individual* product or service process that will be mapped*. Optimally, this:
Has high volume and cost
Meets criterial important to the company
Has the biggest impact on the chosen customers
*Has most common flow, if a family of products/services
Place the process steps / functions
Begin at the end of the process and work upstream
Use the identified main activities & sequence (SIPOC)
Use the agreed symbols (Suppliers/Customer factories, Activity/Process boxes, etc.)
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

5. VSM Construction Steps
IENG 451 / 452
VSM Construction Steps
Add the physical flow
Show the physical flow going into / out of process boxes
Show the sub processes and flows, include % of flow
Use common symbols (Material flow arrows, material handling methods, …)
Add the information flow
Map the information flows
Document the associated production orders for the parts
Document the scheduling / tracking of the parts
Use common symbols (Manual communications, Electronic communications, Informal communications…)
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

6. VSM Construction Steps
IENG 451 / 452
VSM Construction Steps
Collect the process data and add to the Process Boxes
Walk the process to capture reality
For each process step, capture
Trigger
Set-up & Process time
Production rate
Yield / Scrap rate
Crew size
Uptime
WIP upstream & downstream
Batch size
Cost data
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

7. VSM Construction Steps
IENG 451 / 452
VSM Construction Steps
Add inventory levels, material handling equipment and process lead time data to the chart
Include queue times, etc. for material flows
Include the number of material handling equipment and personnel required for transport, if appropriate
Include the storage space required, if appropriate
Verify the Map
Use non-team, process-knowledgeable persons to validate
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

8. VSM Illustration (TO-BE)
IENG 451 / 452
VSM Illustration (TO-BE)
Shows expected SIPOC –type information
Suppliers / Customers
Inputs / Outputs
Leaner Process Steps
Shows expected Swim Lane –type information
Leaner Who does / Functions
Leaner physical flows
Leaner Communications
Shows expected process data for the future
Matl handling/storage methods
Leaner Inventory levels
Improved performance data
Dennis, P. (2015)
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

9. IENG 451 Operational Strategies
VSM Illustration
Some typical symbols
The symbols at right are pretty common …
but there are no real standard symbols
Typical Data Box stuff:
Cycle Time C/T
Processing Time P/T
Changeover Time C/O
Uptime / Reliability
Batch Size
Crew Size
Available Time
Output Rate
Feed Rate, etc.
… whatever characterizes the process as it operates!
Dennis, P. (2015)
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

10. IENG 451 Operational Strategies
Value-Added Concept
Value-Added things are identified from the customers point of view:
These are things our customers would pay for, if they knew we did it
If you stopped doing it, would your external / end customers complain?
Non-Value-Added are things our customers wouldn’t pay for, and fall into two categories:
Business Non-Value-Added
These are things the customer wouldn’t pay for, but are required to meet:
Business requirements (GAAP record keeping, shipping manifests, …)
Government requirements (OSHA record keeping, MSD sheet req.s, …)
If you stopped doing it now, would anyone internally notice?
Non-Value-Added
This is true Muda, Mura, or Muri
These are Japanese terms for waste, unevenness, and hard-to-do
If you stopped doing it now, would anybody notice?
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

11. IENG 451 Operational Strategies
Value-Analysis
Starting at the end of the process (VSM), classify each step into one of the three categories:
Value-Added
These are tasks that should be optimized and standardized
Record the VA time and display at the bottom of the VSM for each step
Business Non-Value-Added
These are tasks that are required for now, but should be periodically reexamined to see if they can’t be eliminated with a change in the business environment (customer relationship)
Record the BNVA time for each step (and see below)
Non-Value-Added
This is true wasted effort and should be eliminated. Includes handling time!
These may be quantized – they cannot be eliminated until the SOURCE is completely eliminated – and elimination of the source may require redesign of other processes as well.
Record the NVA time, add BNVA time and display at the bottom of the VSM for each step – graphically, this provides a Time Value Map
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

12. Adding VA / Time Value Map to VSM
IENG 451 / 452
Adding VA / Time Value Map to VSM
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen

13. IENG 451 Operational Strategies
Questions & Issues
8/8/2018
IENG 451 Operational Strategies
(c) D.H. Jensen