1. Value Stream Mapping (VSM) Training
Cleveland, TN

2. 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.

3. 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.

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

5. 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

6. 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

7. 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

8. 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

9. 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.

10. 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

11. 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.

12. 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.

13. 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.

14. 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

15. 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