Value Stream Mapping

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Value Stream Mapping

• Quick Start

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Defining A Value Stream

• A series of steps that must be performed in the
  proper sequence to create value for a customer
• The complete value stream includes information
  flow and product or material flow
• The value stream includes all steps value-added
  and non value-added

If there is a product, service or process for a
customer, there is a value stream.
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Why Value Stream Map?

• Helps you visualize more than just the process
  level
• Allows you to see the sources of waste
• Define key leverage points for improvements
• Displays linkage between information and material
  flow
• Admin processes may show linkage between
  information flow and the actions that result from
  the information flow

VSM creates a common understanding of reality and
the improvement possibilities.
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Value Stream Levels
Process Level
Facility Level (Cell or Department)
Extended Value Stream Multiple Facilities
(Includes Suppliers Customers)
Choose the level appropriate for your scope.
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The VSM Process Overview
Current State Identify key process steps for
delivering product/service to customer Utilize
information from go see (Gemba) or
interviews Include key metrics with each
step Include lead time and cycle time
data Identify Undesirable Observations
(UDOs) Determine data gaps that need to be
collected Identify flow of information from end
customer to beginning of process Include systems
that provide information Record the frequency
and type of information If information is your
product you can identify origin of
information Determine if the Value Stream steps
are VA or NVA Analyze wastes and determine
improvements Develop action plan to make
improvements
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7 Steps to Utilizing a Value Stream Map

• Identify scope of the Value Stream Map
• Identify VSM team lead and participants
• Organize and conduct a tour of area to go see
• Map the high level process and gather key data
• Identify the value stream (product/process
  alignment and the critical path)
• Create the Current State Value Stream Map
• Material Flow
• Information Flow
• VA/ NVA classification
• Identify the Waste
• Identify areas of opportunities for improvement
• Develop an Action Plan to make the improvements

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Step 3 Go See the Product/Service

• If the process is visible
• Process map at high level
• Walk the process and record individual process
  steps, UDOs, cycle time, distance, of people,
  quality, etc.
• Ask operators questions
• Note metrics, materials, machines, WIP,
  finished goods
• If the process is not visible
• Create detailed process map
• Include UDOs, cycle time, distance, of people,
  quality, etc.
• Provide process map to all operators
• Interview employees involved in process
• Analyze portions of process which are visible
• Utilize VOC surveys to collect key data points
• Validate findings with operators

UDO (Undesirable Observation) any observation
about the process that is not ideal WIP (Work
In Process inventory) inventory that is
contained in the process
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Step 4 Map the High-Level Process
Example Generating an estimate for a customer
30 minute cycle time
2 days between processes
6 people involved
Analyze Info
Develop work-up
Input data into file
Collect Sub-quotes
Prepare Estimate
WIP
On-Line Tool
Input Boundary
Output Boundary

• Having 4 to 10 process steps is common
• Review the scope if you have more or less
• Consolidate detailed process steps into higher
  level value stream steps
• Determine key data to collect, WIP, Distance,
  Time, of people, quality, etc.
• Capture any variation within the process

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Step 4 Identify Key Data Elements
Example Generating an estimate for a customer
Cycle Time
4 hrs
24 hrs
2 hrs
2 hrs
Wait Time
48 hrs
24 hrs
8 hrs
8 hrs
of People
1
2
1
1
2
6
Transport
Manual
Phone
E-mail
E-Mail
WIP
2
2
4
3
3
Who
Ops
Sales/Ops
Sales/Ops
Sales
Sales
Missing data to be collected prior to VSM

• If data not available, use averages based on
  operators assessment
• Check old records, files, reports, etc.
• Additional data collection by surveys/interviews
• Finalize data during the Identify Materials
  Flow step

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Step 5 Identify the Value Stream

• Determine critical path and area for improvement

• Whenever there is a product for a customer,
  there is a value stream. The challenge lies in
  seeing it.
• Learning to See by Rother and Shook

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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
LEAD 2231.1 VA 210.1
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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Step 6 Create the Current State VSM

• Map the Material Flow
• Map the Information Flow
• Classify VA and NVA activities

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VSM Symbols
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Step 6 Map the Materials Flow
No Process
Too many people
No standard work
Cycle Time
4 hrs
8 hrs
24 hrs
2 hrs
4 hrs
2 hrs
2 hrs
Wait Time
8 hrs
48 hrs
8 hrs
24 hrs
8 hrs
8 hrs
of People
1
2
1
1
2
2
6
Transport
Manual
Manual
E-mail
Phone
E-mail
E-Mail
WIP
2
2
4
1
3
2
3
Who
Sales
Ops
Sales/Ops
Sales/Ops
Sales/Ops
Sales
Sales

• Come to agreement on process steps as a team
• Include all key data for each process step
• Include UDOs
• Material flows from left to right

UDO
Push
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Step 6 Map the Information Flow
Sales Funnel Database
Sales Leader
1-5 days
75 Estimates per month
1-2 days
1-30 days
Sales Representative
Estimator
2-5 days

• Information should flow right to left, always
  starting with customer
• Cycle times can be averages or ranges
• The more detail you include, the more waste you
  will see

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Step 6 Identify VA NVA
Sales Funnel Database
Sales Leader
1-5 days
75 Estimates per month
1-30 days
1-2 days
Sales Representative
Estimator
2-5 days
No Process
Too many people
No standard work
Gather Info
Approval Meeting
Analyze Info
Develop Takeoff
Input data into file
Collect Sub-quotes
Prepare Estimate
4 hrs
8 hrs
24 hrs
2 hrs
4 hrs
2 hrs
2 hrs
8 hrs
48 hrs
8 hrs
24 hrs
8 hrs
8 hrs
of People
1
2
1
1
2
2
6
Transport
Manual
Manual
E-mail
Phone
E-mail
E-Mail
WIP
2
2
4
1
3
2
3
Who
Sales
Ops
Sales/Ops
Sales/Ops
Sales/Ops
Sales
Sales
VA/NVA
VA
NVA
VA
NVA
NVA
NVA
NVA

• Customer cares
• Changes form, fit or function
• Correct

Remember the 3 C's
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Step 7 Use the VSM to Identify Waste

• Identify areas of opportunities for improvement
• Develop an action plan to make the improvements

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Step 7 Use the VSM to Identify Waste
Sales Funnel Database
Sales Leader
1-5 days
75 Estimates per month
1-30 days
1-2 days
Sales Representative
Estimator
2-5 days
No standard work
No Process
Too many people
Gather Info
Approval Meeting
Analyze Info
Develop work-up
Input data into file
Collect Sub-quotes
Prepare Estimate
4 hrs
8 hrs
24 hrs
2 hrs
4 hrs
2 hrs
2 hrs
8 hrs
48 hrs
8 hrs
24 hrs
8 hrs
8 hrs
of People
1
2
1
1
2
2
6
Transport
Manual
Manual
E-mail
Phone
E-mail
E-Mail
WIP
2
2
4
1
3
2
3
Who
Sales
Ops
Sales/Ops
Sales/Ops
Sales/Ops
Sales
Sales
VA/NVA
VA
NVA
VA
NVA
NVA
NVA
NVA

• Cycle times too long
• Too much queue time between steps
• No process standardization
• Transportation issues
• Too many people involved in Approval

Time Value Map
43 days
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Step 7 Identify Areas of Improvements

• Improvements should be made based on waste
  analysis identified during VSM activity.
• Example Opportunities identified in the
• Generating an Estimate for a Customer VSM
• Create standard work for operators to follow
• Develop templates to use when Developing
  Quotes
• Remove NVA steps when possible
• Streamline information flow from Customer to
  Estimator
• Mitigate interruptions to flow estimate (reduce
  queue time)
• Improve policies with Sales to obtain timely
  quotes
• Reduce the number of people required for the
  Approval Meeting

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Step 7 Create An Action Plan

• Action plans are critical to successfully
  implementing VSM improvements
• Determine improvement projects, schedules and
  owners
• Immediate improvements (2 - 5 days) Kaizen
  Events
• Medium term improvements (3-6 months) Lean/ GB
  projects
• Long term improvements (6 months) Lean Expert/
  BB projects

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Step 7 Create An Action Plan

• Identify the high impact improvements and long
  term and short term actions

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Value Stream Mapping

• Quick Start