Value Stream Mapping

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Value Stream Mapping

• Ed Matthews
• ASQ Quality Day 2009
• Reference Learning to See
• By Mike Rother and John Shook

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Agenda

• 5 Principle of Lean
• Seven types of waste
• Value added versus Non-value added
• Simulation build a VSM
• Introduction to value stream mapping
• Current state process
• Future state process
• Applying - go and do

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5 Lean Principles

• Specify in the eyes of the customer
• Identify the value stream and eliminate waste
• Make value at the pull of the customer
• Improve and empower employees
• Continuously improve in pursuit of perfection

4
Seven Types of Waste

• Defects - do not meet the customers requirements
  or create rework
• Over Production - made too much and not used or
  sold
• Transportation - excess distance traveled
• Waiting - idle time or operator or goods waiting
  until the next step
• Inventory - excess amount of purchase and waiting
  to be used
• Motion - excess movement of operator and or part
• Processing - unnecessary or repeated steps
  performed

5
Value Added 3Cs

• Customer Recognizes the importance
• Physical change to the thing
• Correct the first time

6
Simulation

• Poker Chip Stack Assembly
• Need
• 5 assemblers
• 4 timers
• 3 information collectors
• 1 customer
• Everyone else additional observers

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Assemblers

• 5 stations
• Review and follow work instructions
• Each step is important

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Timers

• Using stop watch note time
• Process time
• Assemblers time to complete task
• Multiple cycles
• Wait time
• How long stack of chips remain on WIP shelf
• How long before a stack moves to next step

9
Information collectors

• Document the 7 types of waste
• Defects
• Overproduction
• Transportation
• Waiting
• Excess Inventory
• Excess Motion
• Excess Processing

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Develop VSM

• Run the simulation
• Build a VSM for the simulation

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What is a Value Stream

• A sequence of steps that must be performed in the
  proper sequence to create value for the customer
• Includes planning and process steps
• Can be viewed at various levels
• Process Level
• Site Level
• Extended values stream (products that go across
  sites)

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What is Value Stream Mapping?

• A big picture perspective that focuses on
  improving the whole, not optimizing the pieces of
  a process
• A visual tool to help see and understand the flow
  of material and information
• To help understand how your business actually
  works
• A tool for establishing a vision and
  implementation to improve value to your customer

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Focus of Value Stream Maps

• Traditional Focus
• On each process or activity
• Value Stream Approach
• On entire process and activities
• Includes Information Flow
• Includes Material Flow

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Why use Value Stream Maps (VSM)?

• Shows linkage between the information flow and
  material flow
• Look across functional boundaries over which a
  product value steam flows
• Highlight sources of waste and put in place a
  plan to eliminate them
• Gather data and turn it into an understanding
• Turn understanding into a plan
• Turn a plan into an action

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Value Stream Format

• Next slide

16
s
Inventory Control
Forecast
Forecast
Suppliers
Customer
Orders
MRP
Customer Service
Daily Order
Manual Entry of Orders into BPCS
SCHEDULING
Daily Shipments Backlog
MPS
Work Order Pulls
C/T 30 Sec
C/T 1 Min
C/T 30 sec
C/T 1 Min
C/T 2 Min
C/T 1 Min
C/T 30 Sec
C/T 1 Min
C/T 30 Sec
C/O 30 Min
C/O 1 Hour
C/O 30 min
C/O 1 Hour
C/O 15 Min
C/O 2 Hour
C/O 30 Min
C/O 15 Min
C/O 2o Min
Uptime 90
Uptime 80
Uptime 80
Uptime 80
Uptime 100
Uptime 70
Uptime 95
Uptime 90
Uptime 80
31 days
3 days
3 days
2 days
1 day
4 days
1 day
1 day
1 day
26 days
1 Min
1 Min
2 Min
1 Min
1 Min
30 Sec
30 Sec
30 Sec
30 Sec
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Creating the Current State Map

• Define product family to be mapped
• Select a cell / area
• Label you map
• Gather information on the customer
• Customer names and locations
• Daily, weekly or monthly volume requirements
• Specific shipping requirements
• Add a icon on map to indicate customer

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Creating the Current State Map

• Walk the process - sketch the process
• Walk the process forward to understand the number
  and sequence of steps
• Next, start at the end of the process and work
  upstream, collecting data for each process step
• Starting at the end allows team to get a sense
  for customer demand and how it translates to
  upstream production steps
• The process boxes are drawn just below the center
  line of the page to allow data to be shown below

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Creating the Current State Map

• Data boxes will include data such as cycle time,
  set-up time, number of shifts, number of
  operators, process yield, machine uptime, ect.
• Document where inventory is held and amount of
  inventory at each location. Inventory is shown as
  a triangle between each process box with the
  amount

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Creating the Current State Map

• Document how good are delivered to the customer
• Document how often
• Document the quantities of each delivery
• Draw this in the upper right hand corner

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Creating the Current State Map

• Add information flow to the map
• Document how customers communicate their
  requirements
• Document how requirements are communicated to
  production area
• How does the shipping area know what to ship
• For each indicate if information flow is
  electronic or manual

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Creating the Current State Map

• Sketch how material flows between processes
• How is material transferred between each process
  step
• Is movement of material pulled from downstream or
  pushed from upstream
• Is FIFO important? If so how is it managed?

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Creating the Current State Map

• Draw production lead time processing time line
• The timeline is drawn along the bottom of the
  page
• The processing cycle times show for each step
• The equivalent days of inventory is shown between
  each step - inventory on hand divided by the
  daily demand
• Total the time line on the right-hand side of the
  page

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Value Stream Analysis

• We have a current state map, so whats next?
• What is the purpose of a Value Stream Map?
• Gather data and turn it into an understanding
• Turn understanding into a plan
• Turn a plan into an action
• So, what can we understand from a current state
  map?

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Value Stream Analysis

• Typical Current State Box Score
• Total Lead Time 48 Day
• VA .0001
• Inventory DOS 72
• Delivery performance 85
• Quality (PPM) 13000
• Product travel distance 3980 feet
• (sample information)

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Value Stream Analysis

• Analyze current state for sources of waste
• Looks for evidence of defects, overproduction,
  transportation, waiting, excess motion, excess
  inventory, excess processing
• Highlight each area of waste on the map
• Examples long cycle times, long set-up times,
  inventory levels higher than required, ect.
• Once we understand what the current state map
  tells us, we can then plan for the future state.

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Value Steam AnalysisWhat Makes a Value Stream
Lean

• Continuous Flow
• Takt Time
• Pull Production
• Waste Elimination
• Just in Time
• 5S / Workplace Organization

• Standard Work
• Mistake Proofing
• Total Productive Maintenance
• Set-up Reduction
• Line Balancing
• Level Production

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Future State Value Stream Mapping

• Future State Map format is the same but we answer
  8 questions to develop the map

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Future State Value Stream Mapping

• Answer these 3 first
• Based on available working time of our processes
  and the customer demand, what is the Takt time?
• Takt time available time / customer demand
• Where can we use continuous flow processing?
• Reduce product travel, waiting and
  work-in-process inventory
• At what process step will we schedule production
  (pacemaker process)?

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Future State Value Stream Mapping

• Answer these next 5
• Should you build a finish goods supermarket?
• Where will you need to use supermarket pull
  systems in order to control the production of the
  upstream processes?
• How will you level the production mix at the
  pacemaker process?
• What increment of work will you consistently
  release and take away from the pacemaker process?
• What process improvements are necessary for the
  value stream to flow as your future state design
  specifies?

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Future State Value Stream Mapping

• After you answer all 8 questions
• Future State Map should be completed with both
  material and information flows included
• A projected box score should be completed for the
  Future State to verify that the proposed changes
  will impact the metrics
• Make a list of key difference between current and
  future state maps
• Document the specific actions plans to make these
  differences part of the future state processes
• The Future State Map guides us as we turn our
  understanding into a plan for action

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Summary Lessons Learned

• VSM is intended to be a visual process
• Keep it in front of people
• Paper and pencil today is better that laminated
  poster in a month
• Walking the process is to be taken literally
• Can not be built solely in a conference room
• Data is required to make decisions
  recommendations
• The purpose is to develop a common understanding
  of the current state, identify waste and develop
  plans to eliminate them

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VSM Books

• Learning to See by Mike Rother and John Shook
• Seeing the Whole by Dan Jones and Jim Womack