1. Value Stream Mapping
ASQ March 2018

2. Learning to See from the Lean Enterprise Institute
VSM Training Topics
Lean Manufacturing
Terms
Value Stream Mapping
Current & Future State Maps
Value Stream Management
Classroom Exercise
Learning to See from the Lean Enterprise Institute

3. What is a Value Stream?
The Value Stream is all the activities, from raw material through delivery to the customer, involved in the creation of a product or product family.
The Value Stream crosses all functional departments and lines of responsibility.
Supplier
Blanking
Stamping
Weld 1
Weld 2
Assembly
Inspection
Customer

4. What is Value Stream Mapping?
A continuous improvement tool that shows:
Material flow
Raw material
Process steps
WIP (Work in Process)
Finished goods
Information flow
Forecast and orders from the customer.
Forecast and orders to suppliers.
Scheduling of daily production.
Waste / opportunities for improvement

5. What is Lean Manufacturing?
A systematic approach to identifying and eliminating waste through continuous improvement. Lean focuses on the customer, allowing products to be pulled through a continuous flow value stream to meet customer demand.
Supplier
Blanking
Stamping
Weld 1
Weld 2
Assembly
Inspection
Customer

6. Waste
In straight forward terms, LEAN means getting rid of WASTE.
In all of its forms -- both in
manufacturing and administration.
ELIMINATE
Waste is anything that does not add value to the product or service. Your customer is not willing to pay for waste.

7. The 8 Wastes Over Production Waiting Transportation Extra Processing
Excess Inventory
Excess Motion
Defective Products
Wasted potential of associates
PLAN
ACTUAL
Scrap

8. Terms

9. Terms
Batch & Queue (Push System) - Producing more than one piece at a time then moving them forward to the next process whether they are needed or not.
Pull System - Customer process withdraws what is needed from a supermarket, the supplying process only replaces what is used.
Just-in-Time - Producing or conveying only what is needed at the next process when it is needed and only in the required quantity.
Kanban - A signaling device that tells production what to do.

10. Terms
Takt Time - Used to synchronize the pace of production with the pace of sales. Tells us how fast we should produce in order to match customer demand.
Cycle Time - Piece to piece time -- the frequency a piece comes off the end of the line.
Process Time - How long it takes to go through a process.
Lead Time - Time required for one piece to move all the way through a value stream (from raw material to completed product).

11. Terms
Product Family - Group of products that pass through similar processing steps and over common equipment.
Work in Process (WIP) – Inventory in between raw material and finished goods.
Value Stream Manager - Person responsible for leading door-to-door implementation.

12. Value Stream Mapping

13. Three Levels of VSM Plant Level – Our Focus
Enterprise Level – Total Value Stream
Iron Ore
Tier 3
Tier 2
Tier 1
ELP AH
Dealer
Consumer
Plant Level – Our Focus
Blanking
Weld 2
Weld 1
Stamping
Tier 2
Inspection
Assembly
ELP
Operation Level – Micro Value Stream
Oper 1
Oper 4
Oper 3
Oper 2
Weld 2
Oper 6
Oper 5
Inspection

14. Why Value Stream Mapping?
Puts the entire value stream on one page for everyone to see.
Focuses on the big picture and improving the whole, not just optimizing a process.
Helps identify the sources of waste in the value stream.
Guides the use of the right tool in the right place.
Provides a common language for process improvement.
Shows the linkage between material flow and information flow.
Forms the basis of a Lean implementation plan through future state mapping.
Blanking
Weld 2
Weld 1
Stamping
Tier 2
Inspection
Assembly
ELP

15. Stages of Mapping Define the Product family. Develop a plan to reach
your Future State.
Draw Current State.
Define & Draw Future State.
CURRENT-STATE
FUTURE-STATE
IMPLEMENTATION

16. Product Family Matrix

17. Current State Icons I Movement of material by Push Factory Operator
XYZ COMPANY
Movement of material by Push
Factory
Operator
Movement of goods to customer
Data Block
Process
“Go See” production scheduling I
Inventory
Manual Information Flow
X per Week
Material delivery by truck
Electronic Information Flow

18. Future State Icons OXOX 20 Level Loading Supermarket Kanban Post
Withdrawal from a Supermarket 20
Production Kanban
FIFO
max. 20 pieces
First In First Out lane
Kaizen Burst, Improvement area
Withdraw Kanban

19. Drawing a Current State Map
Mapping is conducted by going to the spot.
Start with a quick walk through of the entire process.
Begin mapping at the shipping area and work your way back to incoming raw materials.
Always draw the map by hand, in pencil, at the spot.
Collect your own data. Do not use standards or hearsay.

20. Current State Map 1. Show Customer (top RH corner)
- Include daily demand
2. Show processes (right to left)
- Start at shipping
- Go “back” through processes
DATA
BOX
Examples of Process Data
- Cycle Time
- Changeover Time
# of Operators
# of Shifts
- Scrap Rate
Overall Equip. Effectiveness (OEE)
Other key process measurements
DATA
BOX
Pr.1
Pr.2
Pr.3
DATA
DATA
DATA

21. Current State Map 3. Capture inventory at each process
DATA
BOX
3. Capture inventory at each process
- Or wherever it is found
- Add inventories before or after
processes as appropriate I
Pr.1
Pr.2
Pr.3
DATA
DATA
QTY
DATA
Material
Flow
Pr.1
DATA
Pr.2
Pr.3 I
QTY
BOX
DAILY
SUPPLY
WEEKLY
4. Add supplier information
- Show supply & shipping
rates and methods.

22. Current State Map 5. Show Information Flow - Start at the Customer
Paper
Electronic
SUPPLY
DATA
Production
Control
Forecast
Schedule
Weekly Schedule
DATA
BOX
WEEKLY
DAILY I
QTY I
QTY
Pr.1
Pr.2
Pr.3
DATA
DATA
DATA
Pr.1
DATA
Pr.2
Pr.3 I
QTY
BOX
DAILY
SUPPLY
WEEKLY
Production
Control
Forecast
Schedule
Weekly Schedule
6. Draw time line at bottom
- Summarizes VSM data
- Lead Time
- Process Time

23. Lead Time vs. Process Time
Current State Map
Lead Time vs. Process Time I
18 Sec
3.3 D
17.0 D
C/T (sec) 18
C/O (min) 20
Shifts 2
Opers
Weld 55 6
Assemble
55 Sec
3564
18360
Process Time for each step is brought down
Calculate individual Lead Times
Customer Demand = pc / day
3564 pc / 1080 pc per day = 3.3 days
18360 pc / 1080 pc per day = days

24. Current State Map I I I I I 5.0 D 10.0 D 3.3 D 17.0 D 7.0 D 42.3 Days
Order Monthly
Order Daily
HONDA
Supplier
PRODUCTION CONTROL
Forecast 30/60/90
Forecast 30/60/90
ELP / D
360
HCM / D
720
Shifts 2
Total / D
1080
Honda Reqs
1 per week
2 per day
C/T (sec)
2.8
C/O (min) 60
Shifts 2
Opers
Stamping
C/T (sec) 25
C/O (min) 30
Shifts 2
Opers
Machine
C/T (sec) 18
C/O (min) 20
Shifts 2
Opers
Weld
C/T (sec) 55
C/O (min)
Shifts 2
Opers 6
Assemble
Shifts 2
Opers
Shipping I I I I I
5400
10800
3564
18360
7560
5.0 D
10.0 D
3.3 D
17.0 D
7.0 D
42.3 Days
2.8 Sec
25 Sec
18 Sec
55 Sec
100.8 Sec

25. Hand-Drawn Current State Map

26. Kaizen Burst Opportunities

27. Future State Map Cellular Manufacturing Total Quality Teams
Setup Reduction (SMED)
Batch Reduction
Every Part Every Day
Kanban
Pull Systems
Metrics & Measurement
Value Stream Mapping
Process Mapping
Work Balancing 5S
Autonomation
Lean Tools and Techniques
Pokayoke
Jidoka
Elimination of Waste
Total Productive Maintenance
Continuous Flow
One Piece Flow
Standard Work
Visual Management
In Station Process Control
Level Production
Takt Time
Point of Use Storage
Kaizen
Supplier Development

28. House of Lean Continuous Improvement Teams Jidoka Kaizen
1 Piece Flow
Jidoka
Kaizen
Level Production
Pull/Kanban System
TPM
Pull / Kanban
Cellular Mfg.
POUS
Error Proofing
Standard Work
Small Lots
Teams
Setup Reduction
Mapping
Stream
Value
Cross Training
Visual
5S System
OEE

29. Future State Map Are we stable? (Quality, Delivery & OEE)
Questions to ask when creating a Future State.
Are we stable? (Quality, Delivery & OEE)
What is the Takt Time?
How do we balance all the operations to Takt Time?
How much of the value stream can be continuous, one piece flow?
Where will the supermarket pull systems be placed?
Where is the one point to schedule the value stream?

30. Future State Map
Takt Time - Used to synchronize the pace of production with the pace of sales. Tells us how fast we should produce in order to match customer demand.
Takt Available Time (yours)
Time Demand (customer) =

31. Work is combined and rebalanced
Future State Map
Work Balance
Takt Time is 100 seconds
Work is combined and rebalanced

32. Future State Map

33. Pull / Kanban Systems
An approach to production that, when implemented, eliminates sources of waste in the production flow.
Orders
CASH ($)
Supplier
ASSY
Test
Material
Red
Rote
Red
Red
Red
Rote
Rote
KANBAN
Material Flow
Information Flow
Make what customer wants, when the customer wants it
Next process is the customer
Supplying process produces to replenish only what was withdrawn.

34. Kanban Systems
The Kanban system is a type of pull system which uses signals to communicate production requirements between processes.
A Kanban is the signal, most often a card, that aids in achieving this pull system.
The amount of inventory in the production process is controlled by the number of Kanban cards in the system.
Kanban Card
Weld Cell 1
Stamping
Weld Cell 2
Weld Cell 3

35. Kanban Planning Board Top Priority Run Line
Part A Part B Part C Part D Part E

36. Current State Map I I I I I 5.0 D 10.0 D 3.3 D 17.0 D 7.0 D 42.3 Days
Order Monthly
Order Daily
Supplier
PRODUCTION CONTROL
Forecast 30/60/90
Forecast 30/60/90
ELP / D
360
HCM / D
720
Shifts 2
Total / D
1080
Reqs
1 per week
2 per day
C/T (sec)
2.8
C/O (min) 60
Shifts 2
Opers
Stamping
C/T (sec) 25
C/O (min) 30
Shifts 2
Opers
Machine
C/T (sec) 18
C/O (min) 20
Shifts 2
Opers
Weld
C/T (sec) 55
C/O (min)
Shifts 2
Opers 6
Assemble
Shifts 2
Opers
Shipping I I I I I
5400
10800
3564
18360
7560
5.0 D
10.0 D
3.3 D
17.0 D
7.0 D
42.3 Days
2.8 Sec
25 Sec
18 Sec
55 Sec
100.8 Sec

37. Answers for the Future State.
Future State Map
Answers for the Future State.
Takt Time
900min /
1080pc =
50 sec/pc
Work Balance
Continuous Flow
Mach
Weld
Assy.
Supermarket
After Stamp
After Assy.
Schedule Point
Shipping,
twice a day

38. Future State Map I 5.0 D 2.0 D 0 D 7.0 D 14 Days 2.8 Sec 48 Sec 50 Sec
Order Monthly
Order Daily
Supplier
PRODUCTION CONTROL
Forecast 30/60/90
Forecast 30/60/90
ELP / D
360
HCM / D
720
Shifts 2
Total / D
1080
Honda Reqs
1 per week
2 per day
C/T (sec)
2.8
C/O (min) 60
Shifts 2
Opers
Stamping
C/T (sec) 48
C/O (min) 20
Shifts 2
Opers
MWA
C/T (sec) 50
C/O (min)
Shifts 2
Opers 6
Assemble
Shifts 2
Opers
Shipping I
5.0 D
2.0 D
0 D
7.0 D
14 Days
2.8 Sec
48 Sec
50 Sec
100.8 Sec

39. Continuous Improvement
Future State Map
Results
2 operators freed up
Lead time decrease, 42.3 days to 14 days.
Prod. Control only schedules one point.
Operations manages production via the pull system.
Continuous Improvement
Changeover reduction on stamping press.
POU storage for raw material.
Finished goods reduction.
Future
State
Becomes
Current

40. Why Value Stream Mapping?
Puts the entire value stream on one page for everyone to see.
Focuses on the big picture and improving the whole, not just optimizing a process.
Helps identify the sources of waste in the value stream.
Guides the use of the right tool in the right place.
Provides a common language for process improvement.
Shows the linkage between material flow and information flow.
Forms the basis of a Lean implementation plan through future state mapping.
Blanking
Weld 2
Weld 1
Stamping
Tier 2
Inspection
Assembly
ELP

41. Value Stream Managers Each Value Stream needs a Value Stream Manager
Process 1
Process 2
Process 3
“Customer”
The Value
Stream Manager
Kaizen
The conductor of implementation:
Focused on system wins
Reports to the top dog

42. Critical Success Factors
Management must understand, embrace, and lead the organization into lean thinking.
Associates must be empowered and enabled to make improvements.
Improvements must be planned in detail with the cross-functional Kaizen teams.
Success must be tracked by the appropriate metric and translated to the bottom line.
Lean methodology – including VSM – must become part of the company culture

43. Value Stream Mapping Current State Exercise

44. Value Stream Mapping Exercise Creating a Current State Map
Map-Us Corporation
Plant-Wide Data
20 work days per month
2 shift operation
8.5 hour shifts
Two 10 minute paid breaks per shift
½ hour unpaid lunch
Stamping
First Operation
Press makes parts for many products
Cycle time is 2 seconds
Changeover time is 1.5 hours
One operator
Downtime averages 130 minutes per day
OEE = 42%
3 coils before press (1800 pcs / coil)
4200 stamped parts
Assembly
Third Operation
Cycle time is 110 seconds
No Changeover time
6 Assembly people
OEE = 69%
3600 units in WIP
2400 units in FG
Shipping
Receive shipping schedule from production control
Picks from finished goods
Ships to customer
Production Control
Receive EDI monthly forecasts from customer
Receive EDI orders every Monday
Enters info into MRP system
EDI monthly forecast to suppliers
EDI weekly order to suppliers
Suppliers ship once per week
Sends a daily schedule to Stamping, Welding and Assembly each day
Welding
Second Operation
Cycle time is 50 seconds
Changeover time is 20 minutes
Two operators
Downtime averages 30 minutes per day
OEE = 62%
1800 units in WIP
Customer Requirements
Monthly demand is units
Customer order ranges from 500 to 800 units
Daily shipments

45. Exercise Current State Map
Order Weekly
Forecast Monthly
Order Weekly
Forecast Monthly
Customer
Supplier
PRODUCTION CONTROL
1 per week
Units/day
600
Cust. Reqs.
Daily
C/T (sec) 2
C/O (min) 90
Shifts
Opers 1
OEE
42%
DT (min)
130
Stamping
C/T (sec) 50
C/O (min) 20
Shifts 2
Opers
OEE
62%
DT (min) 30
Welding
C/T (sec)
110
C/O (min)
Shifts 2
Opers 6
OEE
69%
Assembly
Shifts 2
Shipping I
1800 I
3600 I
2400 I
5400
Building the current state map. Animation order
Start with the customer.
Customer requirements
Production control
Customer forecast and orders
Supplier
Supplier forecast and orders
Supplier shipment
Operations
Blanking
Welding
Assembly
Shipping
Push arrows
Customer Shipment
Production Control Scheduling
Inventory triangles from left to right
Process time summary
Lead time summary I
4200
29.0 Days
9.0 D
4.0 D
10.0 D
6.0 D
162 Sec
2 Sec
50 Sec
110 Sec

46. Additional Information, Training and Support
Web Sites
Books
The Machine That Changed the World (James Womack)
Lean Thinking (James Womack)
Learning to See, Creating Continuous Flow, etc.