1. The Lean Enterprise Lean Foundations Continuous Improvement Training
Value Stream Mapping
Welcome participants to Value Stream Mapping workshop.
(Please retain the free lean site reference with the materials.)
Lean Foundations
Continuous Improvement Training
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2. Learning Objectives The purpose of this module is to present the
foundational principles of Waste Identification and elimination.
Learn the History and Purpose of
Value Stream Mapping.
Value Stream Mapping and analysis is the foundation of WASTE IDENTIFICATION and REDUCTION…
ASK participants to bring data to this class – cycle times, travelers, process maps, process observation sheets, re-work cycles, quality data (scrap and rework percentages), set-up times, wait times etc.
MAY TAKE SEVERAL TEAM MEETINGS TO GET ALL THE DATA…
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3. Short History
Origins in Toyota, circa1955 – The way of doing business…
Also called “Material and Information Flow Mapping”
Used by Toyota Motors to show both current and ideal states
as part of the lean implementation process
Discussed in “Lean Thinking”
Further developed and
documented by the Lean
Enterprise Institute of
Brookline, Mass.
“Learning to See”
1996
1998
Lean/ Green or Black Belts should have these books. They are an excellent resource.
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4. What is the Value Stream?
SUPPLIERS
YOUR PLANT OR BUSINESS
CUSTOMER TO END USER
Total Value Stream
Emphasize – Value Stream is all actions …
All the actions, both value added and non-value added, currently required to bring a product from raw materials to the customer.
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5. The Value Stream Perspective
A value stream is all the actions (both value added and non-value added) currently required to bring a product (or transaction) though the main flows essential for every product/ service: from raw material/ (customer need), through all the required steps, then – back to the arms of the customer.
Taking a value stream perspective means working on the big picture, not just individual processes, and improving the whole, not just optimizing the parts.
Value Stream Mapping applies to transactional processes as well.
SUPPLY
PARTNERS
YOUR PLANT OF COMPANY
CUSTOMER TO END USER
TOTAL VALUE STREAM
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6. Value Stream Mapping
Let’s look at an EXAMPLE
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7. Value Stream Map – Operational example
DOWNTIME 15%
MELT
903M
INSP
CHEM
Hold
Furnace
Cast
903
REC
STAGE
WIP 870
QTIME
72H
WIP 696
QTIME
P/T 6N
LOT 75K
P/T 8H
WIP 8 COILS
120K
P/T 3 HR
15K
WIP 8 6 8 3
DOWNTIME 15.5%
STORE
STAGE
INSP
PROFILE
BREAKDOWN
911
This is an example of a simple Value Stream Map. Review the process steps with participants.
LEAD VA
WIP
746K
QTIME
8 1OK
WIP
108K
8HR
Q/T 8 7%
SCRAP
LOT 1 COIL
TIME .1
WIP 15K
Map major process steps
I.D. Value (green/ yellow) / Non-value (red)
Capture all times, quantities
Prioritize areas to improve
X SHIPPED PER DAY
850K
1.870 WIP BEING WORKED
4.276 WIP BEING STORED
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8. Value Stream Map – Big Picture example
MANUFACTURING LEADTIME = 3 1/2 DAYS
CUSTOMER LEADTIME = 2 WEEKS
Prod’n Cont.
12 WEEK FORECAST
Customer
Supplier
Orders
Orders
4 WEEKS
OUT
Daily
OXOX
IRREGULAR
PITCH = 60
MINUTES
1 DAY
MACHINING
ASSEMBLY
TEST
FINISH
DISPATCH
This is an example of a little higher level Value Stream for the Plant.
ADDENDUM OF SYMBOLS located at end of MODULE.
C/T=1568 m
C/T=936 m
FIFO
C/T=60 m
FIFO
C/T=210 m
FIFO
C/T=30 m
C/O=50 min.
C/O=0 min.
C/O=30 min.
C/O=0 min.
C/O=0 min.
2 SHIFTS
1 SHIFT
1 SHIFTS
1 SHIFTS
1 SHIFTS
2 DAYS
OPER. 48
2 DAYS
OPER. 24
OPER. 5
OPER. 6
OPER. 2
1568 MINS
936 MINS
60 MINS
210 MINS
30 MINS
< 1/2 DAY
<2 ENGINES
<2 ENGINES
LT<3 1/2 DAYS
900 MINS
900 MINS
240 MINS
150 MINS
120 MINS
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9. Why do Value Stream mapping?
To understand the current situation - The
“big picture” point of view (To use as a tool to improve the whole vs. optimizing the parts…)
Exposes sources of waste - not just the waste
Shows linkage between information flow and material flow
Forms the blueprint to identify areas of improvement
Information and Material flow through a Value Stream Map.
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10. What does Value Stream Map do for us?
It helps visualize more than just the single-process level, i.e. assembly, welding, etc., in production. You can see the whole flow.
It helps to see more than waste. Mapping helps to see the sources of waste in your value stream.
It provides a common language for talking about manufacturing (and transactional) processes.
It makes decisions about the flow apparent, so you can discuss them. Otherwise, many details and decisions in your area just happen by default.
By adding data, it ties together lean concepts and six sigma techniques, which helps you avoid “pet projects”.
Value Stream Maps provide a lot of detail.
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11. Value Stream Mapping is an Essential Tool
It forms the basis of an implementation plan. By helping you design how the whole door-to-door flow should operate - a missing piece in so many lean efforts - value stream maps become a blueprint for improvement. Imagine trying to build a house without a blueprint!
It shows the linkage between the information flow and the material flow. No other tool does this.
Value Stream Map is good for fully documenting the baseline.
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12. Value Stream Mapping is an Essential Tool
It enhances the quantitative tools and layout diagrams that produce a tally of non-value added steps, lead time, distance traveled, the amount of inventory, and so on.
Value stream mapping is a qualitative tool by which you describe in detail how your facility should operate in order to create flow. Numbers are good for creating a sense of urgency or as before/ after measures. Value stream mapping is good for describing what you are actually going to do to affect those numbers.
Value Stream Map is good for fully documenting the baseline.
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13. Value Stream Mapping Let’s look at an EXAMPLE of Process Mapping
A good start, but no data, no symbols, no color coding etc
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14. Books: Learning to See, Lean Thinking
Process Map w/ Analysis - example
Steel Fabrication Process (Current State)
Can you identify areas for improvement?
Structural
Steel Sawed
Steel
Recd
Steel
stocked
Plate Steel
burned
Parts
Stocked
Weld Shop
Blasting Booth
Sand Bast
Paint Shop
Components
machined
Inspection
Elect/Mech Parts
Recd
Parts
stocked
Mech parts to
Mech Assembly
Staging
Mech
Assembly
Elect parts to
Elect Assembly
Staging
Elect
Assembly
Ship to
Customer
Warehouse
Shipping
Crating
Run Test
Inspection
Books: Learning to See, Lean Thinking
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15. Books: Learning to See, Lean Thinking
Process Map w/ Analysis - example
Steel Fabrication Process (Future State)
Structural
Steel Sawed
Steel
Recd
Plate Steel
burned
Weld Shop
Blasting Booth
Sand Bast
Paint Shop
Components
machined
Inspection
Elect/Mech Parts
Recd
All parts to
Assembly
Staging
Mech/Elect
Assembly
Ship to
Customer
Shipping &
Crating
Inspection &
Run Test
Books: Learning to See, Lean Thinking
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16. Impact of “Immediate Opportunities”
The Process Map good place to
start process analysis activities:
Safety issues resolved first !
Visible results in areas Kaizened
“Low hanging fruit” addressed
Product flows more smoothly
through that part of the stream
Many pockets of success …
But –
Process Maps have
limited impact on the
total VALUE STREAM
Always attack SAFETY issues first !
KAIZENS are good to attack low hanging fruit, but keep working on the entire flow.
Work the bottlenecks, the NVA steps (red boxes).
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17. Main Process/ Information Flow
Many products/ information flows share the same major steps
Operational Level (SIPOC)
Process Map (functional)
Value Stream the flow of information and material of a product or service door-to-door in an organization. Executive Value Streams are higher-level transactions generally across “Business” functions such as Supplier determination, Order Entry, Work Order generation, Operations, Shipping, Billing, Accounts Payable, etc
Product Family or
Main Process/ Information Flow
(door to door)
“Value Stream”
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18. Focus on one product family Administrative Procedure.
Material and Information Flows
In Process Analysis, the information flow (paper) is treated with just as much importance as the material flow.
Focus on one product family
or “major line” or
Administrative Procedure.
Map information or data flows in a different color.
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19. Routing Standardization via simplified XY Matrix
Can we identify “Part/ Product Families” ?
A Product Family
Product family rationalization is a good place to start. Many products and information flows may share the same major steps (sequencing). Process Analysis and subsequent Improvement gains will be multiplied when looking at Part/ Product “families”. If we improve that process, then - PRODUCTS A, B, and C are cost reduced !!
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20. based on Customer pull rate
What will be seen?
Production System
based on Customer pull rate
Just-in-Time (JIT)
Making Products at the Right Time Based on When They’re Sold
People
Autonomation (Jidoka)
Stop at Every Abnormality
Equipment
Information
Engineering
Raw Material
These are the categories or areas to be concerned with when properly documenting a process using VSM concepts.
Wip / Sub Assy’s
Finished Product
Leveled Production
Document flow of information and material !
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21. Value Stream Mapping (VSM) builds on Process Mapping
Safety
Quality
Speed
Value Stream is a detailed analysis derived from the initial Process Map.
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22. Value Stream Mapping
Let’s look at an EXAMPLE with data, color codes etc
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23. Value Stream Map - example
(Current State)
Supplier
Customer
Prep
Move
Mach
Move
Insp
Store
Store
Stage
Rec 9000
1 deliver each month
C/T 15 min
Batch 12
Req 450 pcs
Q/T 480
WIP150
Dist 285”
8 per day
Q/T 60 min
50 pcs
C/T 1 min
Req 450
C/T 8 min
Batch 6
Dist 30”
8 per day
Example of a simple Value Stream Map (machining example)
RED = non-value added, YELLOW = non-value-added but necessary, GREEN = value added
Ship
Move
Move
Assy
Insp
Store
Stage
Q/T 60 min
50 pcs
Dist 400”
8 per day
Q/T 480
WIP150
Dist 50”
20 per day
C/T 5 min
Req 450
Oper 5
C/T 5 min
Req 450
Oper 2.5
C/T 85 min
10 Orders
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24. Value Stream Map - example
(Future State)
Customer
Supplier
Supplier
Delivers Daily
Maintains 475
in Kanban
Kanban
Kanban
Kanban
Ship
Prep
Mach
Assy
Example of a future state – A VISION.
15 pc
10 Replin
C/T 75 min
10 Orders
C/T 15 min
Batch 12
Req 450 pcs
C/T 1 min
Req 450
35 Pcs
25 Replin
C/T 5 min
Req 450
Oper 5
Store orders
3 Day ahead
of shipping
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25. Value Stream Mapping Best Practices
Always map in pencil - rough out 1st, clean later.
Start at the customer and work backwards.
Don’t be too detailed at first, list major process steps.
Walk the actual material and information flows yourself.
Start with a quick walk, to get a feel for the
flow and sequence then, go back and talk
to the right people for each step.
(Don’t forget second and third shifts)
Cover these in detail, very important to take your time.
Don’t map the organization. Map
the flows through the organization.
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26. Value Stream Mapping Best Practices
Color Code the operations. (Red, Yellow, Green)
Add cycle time, wait time, travel time, quantities, yields,
inventory, and number of machines/ operators required.
Always collect ‘current-state’ information while waking along the
actual pathways of material and information flows.
Map current and future state. (With Timelines and Target Dates)
Involve the Management team totally.
Show Management or Leadership Team as you go along, don’t wait till the end. They may have much insight into the real flow – especially the flow and timelines of the information component part of it.
Don’t map the organization. Map
the flows through the organization.
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27. Value Stream Mapping: Application
Deliverables:
Map your current process
On completed Value Stream Map, include:
Color Code (all Value added operations vs. Non-value added operations)
Document process and cycle times, distances and units (as best as possible)
Develop a “Future State” Map (if time permits)
Provide a prioritized list of potential opportunities for improvement … i.e. – 7 wastes tagged by Safety, Quality or Speed of Execution (SQS categories)
Exercise may take over an hour – you can eliminate the spaghetti diagram or process observation sheet if necessary. (Those may have been done earlier…)
Value Stream Map is where it all comes together – it’s the Process Map With DATA !!
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28. Value Stream Symbols and Definitions
Addendum
Definitions – FYI only
SYMBOLS unique to Value Stream Mapping
Books: Learning to See, Lean Thinking
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29. Books: Learning to See, Lean Thinking
Material Icons
Represents
Notes
WELDING
Manufacturing Process
One box equals an area of continuous
flow. All processes should be labeled.
Box also used to identify departments
such as production control.
ABC
COMPANY
Outside Sources
Used to show customers, suppliers
and outside manufacturing processes.
C/T=120 sec.
C/O=22 min.
3 SHIFTS
3% SCRAP
W/T=20 hrs
Process Data Box
Used to record information concerning
a manufacturing process, department,
etc. I
Inventory
Count and time should be noted.
225 pieces
1.5 days
Tuesday
+ Thurs
Truck Shipment
Note the frequency of shipments.
Books: Learning to See, Lean Thinking
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30. Books: Learning to See, Lean Thinking
Material Icons
Represents
Notes
Air Shipment
Create rail or other icons as needed.
Movement of prod’n
material by PUSH
Identifies material movements that are
pushed by producer, not pulled by the
customer ( the following process ).
Movement of finished
goods to the customer
Also shows movement of raw material
and components from suppliers if
they are not pushed.
Supermarket
Physical pull
Pull of materials from a supermarket.
Transfer of controlled
quantities of material
between processes in a
first in first out seq.
Indicates a device to limit quantity
and ensure FIFO flow of material
between processes.
FIFO
Books: Learning to See, Lean Thinking
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31. Books: Learning to See, Lean Thinking
Information Icons
Represents
Notes
Manual flow of
information
For example: production schedule
shipping schedule
Electronic flow of
information
For example: EDI, Fax, etc.
Weekly
Schedule
Information
Describes an information flow.
OXOX
Tool to level the volume and mix
of Kanban over a specific period
of time.
Load leveling
Sequence-Pull Ball
Gives permission to produce a
predetermined type and quantity.
Books: Learning to See, Lean Thinking
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32. Books: Learning to See, Lean Thinking
Information Icons
Represents
Notes 20
Production Kanban
Tells a process how many of what
can be produced and gives permission
to do so.
Withdrawal Kanban
Tells a process how many of what
can be withdrawn and gives permission
to do so.
Signal Kanban
Production instruction that orders
production from a batch process,
eg: stamping.
Kanban post
Place where Kanban are collected
and held for conveyance .
Books: Learning to See, Lean Thinking
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33. Books: Learning to See, Lean Thinking
General Icons
Represents
Notes
Lathe
Changeover
Kaizen lightning burst
Highlights critical improvement needs
at specific processes. Can be used to
plan Kaizen events.
Buffer or safety stock
“Buffer” or “Safety Stock” must be
noted.
Books: Learning to See, Lean Thinking
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34. The Lean Enterprise Lean Foundations Continuous Improvement Training
Value Stream Mapping
Thank participants for attending Value Stream Mapping workshop.
Lean Foundations
Continuous Improvement Training
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