1. Value Stream Mapping
GEOP 4316

2. Outline Current state to the future state map Introduction to VSM
Current state map
Current state to the future state map
Future state map
Common of Future State Maps
Implementation

3. Intro: What is / why VSM?
A lean manufacturing technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer.
At Toyota, where the technique originated, it is known as "material and information flow mapping.
Supports the development of an understanding of an organization’s processes at their broadest levels; instead of a focus on the improvement of the individual work units (helps determine where to focus).

4. Intro: More on what is VSM?
Value Stream is all the actions (both value added and non-value added) currently required to bring a product through the main flows
Value Stream Mapping means walking and drawing the processing steps (material & information) for one product family from door-to-door in your plant
Value Stream Perspective means:
Working on the “big picture”, not just individual processes
Improving the whole, not just optimizing the parts
Primary type: Raw Materials to Customer - Manufacturing

5. Intro: Elements of VSM
Directly observing flows of information and physical goods for a product family as they now occur.
Summarizing these flows visually.
Follow a product or service from end to start, and draw a visual representation of every process in the material & information flow.
Envisioning future states that leave out wasted steps while introducing smooth flow and leveled pull.

6. Intro: Elements of VSM Takt time Simple concept (but in practice …)
Takt time = work time available / customer demand.
420 minutes / 300 tables = 1.4 minutes / tablet.
Thus every process should be able to produce to the takt time.

7. Current State Map
The current state map describes the actual flow of materials and information.
It will include
Processes (production capacity, process time, yield)
Inventory/ wait points (average wait time, average inventory in units, method used to replenish it)
Movements
Information flows (how production schedules are communicated to production areas, frequency of the information flows)

8. Current State Map Key recommendations Let’s look at the cycles
Walk the floor, observe and collect data.
Draw by hand
Start at the customer and go backwards on the flow
Key things to look for:
Information Flow from the Customer
Forecasts
Firm order
Instructions to produce (internal)
Requests from materials from suppliers
Movement of material
Inventory
Let’s look at the cycles

9. Current State Map Customer cycle
How is the interaction between the customer and the system (how are customer orders placed?)
Frequency, modes of transportation, FG inventory levels, service levels and other metrics.
Is there safety stock? how is the amount determined? is it distinguishable from regular stocks?

10. Current State Map Internal cycle Define plant level processes
Data box information (what will appear in the VSM)
Takt Time, # of Operators, C/O Time, Work Unit Cycle Time, Total Work Content, Uptime %, # of Shifts, Available Operating Time
What Initiates Production? How do the production work units know when and what to produce?

11. Current State Map Supplier cycle
Similar in principle to the customer cycle, but here the organization has the “control”
How is the interaction between the suppliers and the system (how are RM orders placed?)
Frequency, modes of transportation, RM inventory levels, service levels and other metrics.
De we keep RM safety stock? how is the amount determined? is it distinguishable from regular stocks?

12. Current State Map - Examples
fsm
Step by step how it was made:

13. Current State Map - Examples

14. Current State Map - Examples

15. Current State Map - Examples

16. Current State Map - Examples

17. Current State Map - Examples

18. Current state  Future state map
Get process to make only what the next process needs when it needs it
Link all processes-from the final customer back to raw material
Produce to your Takt time
Develop continuous flow wherever possible
Producing one piece at a time
Start with pull/FIFO to eliminate variability in the lead time
Use supermarkets to control production where continuous flow does not extend upstream
Some processes are far away and shipping one piece at a time is not realistic

19. Current state  Future state map
Try to send the customer schedule to only one production process
Schedule one point in your door-to-door value stream, this point is called pacemaker process
How you control production at this process sets the pace for all the upstream processes.
Distribute the production of different products evenly over time at the pacemaker process
Leveling the product mix means distributing the production of different products evenly over a time period.
More leveling, more able to respond to customer requirements

20. Future State Map
Step by step how it was made:

21. Related CSM

22. Future State Map

23. Related CSM

24. Future State Map

25. Related CSM

26. Common of Future State Maps
Using pull. More on how Kanbans work later.
“Production” KANBAN
“Withdrawal” KANBAN
Supplying Process
Customer Process
Product
Product
Supermarket

27. Common of Future State Maps
Load leveling
Goal of leveling the load is planning to work at a consistent pace in production making a mix of parts so that the equipment and people are working at the same pace without stopping or being stressed.
Because of this production is not rushed for deliveries giving production folks enough time to implement standard work and avoid errors.

28. Other improvements identified in Future State maps
Supplier development
Identify key suppliers
Reduce container size
Increase delivery frequency
Kanbans