Cmmi - Value Streaming

Demand Chain Solutions
Value Stream Mapping
Jason Fretz
Brian Grannan
Aaron Lininger
Jeff Lovell

Lean Implementation
Why do Value Stream Mapping?
Implementation without a plan will lead to disaster

Customer
Weekly Order Rolling 6-w
k Fo recXast
pcs/ month
6-wk forecast
Std Pack Qty
Steel Supplier
PC & L # Shifts
Level Box
DA1
A Value Stream Map is a simple

Daily DA2
DA3
6 x / Day
picture that helps you focus on Stamping Welding Assembly
Layout
Finished Goods
flow and eliminate the waste 3 Shifts

TAKT Time
CT =
3 Shifts
TAKT Time
CT =
3 Shifts
TAKT Time
CT =
# Material Handlers
Max Size
2 Shifts
C/O Time = C/O Time = C/O Time = 0 Overtime
DT = DT = DT =
Scrap = Scrap / Rework= Scrap / Rework =
WIP = Small Lot # Operators
WIP = WIP =
.Time? days
Inv ? days ? days ? days TPc
/t = ?
.Time
Proc ? days ? days ? days
MAP THE FLOWS !
Eyes for Waste . . .

. . . Eyes for Flow
 3
Objectives
Explain Value Stream Mapping
Complete a Current State Value Stream Map
Complete a Future State Value Stream Map
with proposed Implementation Plan

Agenda
Introduction to Value Stream Mapping
Current State Map Session
1
Data Collection
Activity: Map Current State
 Review Current State Map
 Design Future State
 Future State Map
Session
 Consider Key Questions 2
 Summary
 Activity: Design Future State

Agenda - Session 1
 Introduction to Value Stream Mapping
 Current State Map
 Data Collection
 Activity: Map Current State

Definition of Value Stream
A Value Stream includes all elements (both value added and

non-value added) that occur to a given product from its
inception through delivery to the customer.
Requirements Design Raw Materials Parts Manufacturing
Assembly Plants Distribution Customer


2
Definition of Value Stream
Typically we examine the value stream from raw

materials to finished goods within a plant.
VALUE STREAM
PROCESS
PROCESS PROCESS
Stamping Welding
Assembly
Cell
Raw Finished
Material Product
It is also possible to map business processes

using Value Stream Mapping.

1
Definition of Value Stream Mapping
Value Stream Mapping (VSM) is a hands-on process to

create a graphical representation of the process, material
and information flows within a value stream.
Customer
Weekly Order Rolling 6-wk Fo
recastX pcs/month
Std Pack Qty
6-wk forecast
Steel Supplier
PC & L # Shifts
Level Box
DA1
Daily DA2
DA3
6 x / Day
Stamping Welding Assembly Finished Goods
Layout
3 Shifts 3 Shifts 3 Shifts # Material Handlers

TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts
DT = DT = DT =
WIP = WIP =
Inv.Time ? days ? days ? days ? days

? days ? days TPc/t = ?
Proc.Time ? days
Future State Material, Information and Process Flows

Demand Chain Solutions with total Product Cycle Time
Objectives of Value Stream Mapping
 Provide the means to see the material, process

and information flows.
 Support the prioritization of continuous
improvement activities at the value stream
 Provide the basis for facility layout
AND...
Eliminate Waste

1
The Process
cas t Forecast Customer

k Ro
llin g Fore
MRP MSS 6 Week Rolling Weekly Order
6 W ee
Xpcs/month
Map the Current State

Or de r Std. Pack Qty.
Steel Wee
kly PC & L
Supplier # shifts
Weekly Build Schedule
Daily Ship
Schedule
Tues. & Fri.
# times/day
I Stamping Welding Assembly Finished Goods

Steel
Pin
I Layout
I I
# pcs Layout
# days
or shifts
TAKT = TAKT = TAKT = # Shifts =
2 Shifts # Operators Cycle Time = Overtime =
Changeover Time=4 hr Cycle Time = WIP =
Downtime Scrap/Rework DT, Scrap= 10%

Rework
2 Presses Downtime = 20% Changeover Time = Customer

Weekly Order Rollin g 6-wk Forec
Cycle Time = WIP = WIP =
ast X pcs / month
WIP = Std Pack Qty
Steel Supplier 6-wk forecast PC & L
Uptime Scrap # Shifts
Change
Over
Level Box
Inventory Time ? days ? days ? days ? days TPc/t = ? DA1
Processing Time ? days ? days ? days Daily DA2
DA3
6 x / Day
Stamping Welding Assembly Finished Goods
Layout
3 Shifts 3 Shifts 3 Shifts # Material Handlers

TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts
Analyze the Current State

DT = DT = DT =
and
WIP = WIP =
Inv.Time ? days ? days ? days ? days

TPc/t = ?
Proc.Time ? days ? days ? days
Design the Future State Activity

1999 2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction
Create an implementation plan and

Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
execute it ! Pull To Sender Ass'y
Training

4
Agenda - Session 1
 Data Collection

Current State Map
The Steps
Step 1: Select a Product Family

Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Step 5: Map the Material Flow
Step 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time
Step 8: Detail Off-Line Activities

Current State Map
Step 1: Select a Value Stream (Product Family)
 Define value stream (product family)

– Identify value stream from the customer end
– Product should pass through similar processes
and common equipment
– Door-to-door in scope (within plant walls)
 List part numbers

Current State
Step 2: Form a Team
 Select a cross-functional team

Industrial
 Select team members Sensei Engineering
who are familiar with Product
the product Manufacturing

Cross Functional
Team
Engineering
 Ensure that team Maintenance

PC & L
members are trained in the

Leadership
use of VSM
 Designate a champion (typically a line manager)
Demand Chain Solutions THIS IS CRITICAL

4
Current State Map
Step 3: Understand Customer Demand
 Plan for Every Part Customer
Production Control
Demand/month:
 Part A =
Part B =
(monthly/weekly forecasts)
Part C =
# of shifts =
 Production history (day-to-day, month-to-month

variation)
 Sales (product changes, new business, etc.)


1
Current State Map
Customer
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Stamping Welding Assembly Shipping
Takt = Takt = Takt = Inventory

C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =
Changeover
Downtime FTQ
Current State Map
Step 5: Map the Material Flow
Customer
Supplier
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
2 x/ 2 x/
week day
Shipping
Stamping Welding Assembly
I I I I
1,200 pcs 1,500 pcs 800 pcs 500 pcs
C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
WIP = WIP = WIP =
Changeover Downtime FTQ

Current State Map
Step 6: Map the Information Flow
PC & L
6 week rolling forecast
Weekly Order
6 week rolling forecast Weekly Order Customer
Supplier Daily Ship Schedule

Demand/month:
Part A = 705 pcs.
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =
2 x/
week 2 x/
day
I I I I
1,200 pcs 1,500 pcs 800 pcs 500 pcs
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

PC & L
Weekly Order
Weekly Order Customer
Daily Ship Schedule
Supplier
Demand/month:
Part A = 705 pcs.
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =
2 x/ 2 x/
week day
I I I
800 pcs I
1,200 pcs 1,500 pcs 500 pcs
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.
.4 days .5 days .27 days .17 days

TPc/t = 2.5 days
.008 days .02 days .18 days 1.0 days
Current State Map
 Show on the map using general icons

 Detail
on another sheet using either reference
VSM and/or process flow-charting
Press Room
Fork Truck
Die Bench
Die Room Die Room
Receiving Shipping
(Remove from
Schedule
I I Board)
Dies Dies
12 shifts 2 shifts
Schedule Board
(Forecast)

Current State Map
Additional Mapping Icons
Kanban Kanban
Supermarket
Path Post
Signal Kanban
Kanban arriving MAX 50 PCS
First-In
in batches FIFO First-Out
Flow
Withdrawal
Physical
Kanban
Pull
Production Process
Leveling Kaizen
Kanban

Data Collection
 It is not necessary that attribute data be

precise.
 It is necessary that the information at least be
directionally correct.
 Knowing that uptime is 82.7% vs. 82%
is normally not necessary.
 An assumption of 80%, however,
when reality is 65% can be
detrimental in that it may substantially
misdirect the future state development
and the prioritization of improvement
activities.

1
Agenda - Session 1
 Data Collection

Data Collection
Attribute Data to Collect
 Shipping/Receiving  Work-in-process
schedules inventory
 Pack sizes at each  Overtime per week
process
 Demand rates by  Process cycle times
process (Takt Time)  Number of product
 Working hours and variations at each step
breaks
 Scrap  Batch (lot) sizes
 Inventory Points
(location & size)  Rework
 Changeover times
 How Operations are  Changeover
 Downtime
scheduled frequencies
Data Collection
Data Box
Tailor the
data box for
your plant’s
ox
needs.
a B
at The data
D box should
be open
ended to
allow for
additional
attributes.
Tools
Scrap
Manufacturing Kaizen
Process Lightning
Burst
Outside
Buffer or
Source/
Safety Stock
Customer
Manual
Information Flow
Data Box
Electronic
I Information Flow
Inventory
Production Kanban
oTrucko o
Shipment
Withdrawal Kanban
Finished
Goods to Customer
Push Arrow Signal Kanban
Supermarket Kanban Post

Data Collection
What is Takt Time?
Takt Time is the rate at which production should run

to meet customer demand
The idea is to synchronize the pace of

production to the pace of sales.
Your Operating Time per Shift

Customer Requirement per Shift
27,000 sec
460pieces = 59sec 59 sec.
59 sec.
59 sec.


1
Data Collection
How to Calculate Takt Time?
1. Determine Total Customer Requirements for the

affected process.
2. Determine the Scheduled Runtime (S.R.) for the
affected process:
Scheduled Runtime = (Effective Minutes) - (Planned Downtime)
Effective Minutes = (minutes per shift) - (approved breaks)
Planned Downtime is the amount of time an operation is down
for scheduled reasons.
3. Calculate Takt Time:
Scheduled Runtime
Takt Time =
Total Customer Requirements


3
Data Collection
Identify Opportunities for Improvement
?
Agenda - Session 1
 Data Collection

Activity: Map the Current State
Approximate
Complete By Task Total Time:
• Complete draft of current state value

stream map.
• Review draft and identify open
issues.
• Resolve open issues. Complete
current state value stream map.
• Session 2 Review current state value stream
map.

Session 2
Agenda
 Review current state
 Over view of developing future state
 Develop future state
 Develop action plans to get to future state
 Assign owners, timing, and frequency of review for action
items
 Report to leadership
Support
Learning

Agenda - Session 2
 Design Future State - Purpose
 Consider Key Questions
 Summary

Agenda - Session 2
Review Current State Map
• Design Future State - Purpose
• Future State Map
• Consider Key Questions
• Summary
• Activity: Design Future State

Design Future State - Purpose
Purpose
 Define how the plant will

operate in the future
 Serve as the blueprint

for implementation
Without it, the Current State Map is

nothing more than wallpaper !

1
Future State Map
The Steps
Step 1: Validate Customer Demand
Step 2: Draw the Future State Process Flow
Step 3: Map the Future State Material Flow
Step 4: Map the Future State Information Flow
Step 7: Outline a Plan


2
Future State Map
Step7: Outline a Plan
Original Condition Future Condition
Inj: 2 MSS MSS
I Molding
Change I
Over
2
Sender
Ass’y
2 I 2 Level
I Fuel Pump No Flow 2
Ass’y I Inj: Sender ABABA. . .
Molding Ass’y
Attendance Labels Staging
by Truck
10 Tank 4 Ass’y
Stamping I Ass’y Plants 10
Tank 4 Ass’y
Stamping Ass’y card Plants
No Flow
by
Change
Over 12 card
Uptime
7
(Pitch = 14 Units)
Cycle-Time Driven. Batches. Perform to TAKT & Pitch. Zone Maintenance & Fast Response
Produce to Order
Load Leveling and Pull
METRICS Activity
1999 2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Item Current Target
Establish TAKT & Flow in Tank Ass'y
Total product cycle time
Stamping Changeover Reduction
Parts / Person Hour Reduce Stamping Buffer
Delivery Performance Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Inventory (days)
Pull To Sender Ass'y
Overtime
Uptime Training
Future State Map
The Steps
“Do It”
Implement - Implement - Implement
Action - Action - Action - Action - Action
“Check It - Follow up”

Future State Map
The Steps
A simple way to
approach the Future
State Map is to begin
by modifying the
Current State Map.

Agenda - Session 2
 Summary

Consider Key Questions
What is Takt Time?

Will you build to a finished goods supermarket or directly to shipping?
Where can you use continuous flow processing?
Where will you need to use supermarket pull systems to
control production of upstream processes?
At what single point in the production chain will you schedule

production? (Typically, this will be the final process.)
How will you level the production mix at the pacemaker process?
What increment of work will you consistently release
and take away at the pacemaker process?
What process improvements will be necessary at the value
stream to flow as your future state design specifies?

Will you build to a finished goods supermarket
or directly to shipping?
The Wall
of Protection:
Our Manufacturing Plant The Customer

Every effort should be made
to minimize these variations.
These variations are driven
Finished Goods Supermarket by one of the seven forms
of waste and should be
 Protects your customer from significant eliminated.
process variation. Eliminate Waste
 Protects your manufacturing operation
from significant demand variation.
 4
(Batch Process vs. Continuous Flow)
Batch Process
Process
I Process
I Process
“A” “B” “C” Elapsed Time:
60 Minutes
Continuous Flow (One-Piece Flow)

Process Process Process
“A” “B” “C”
Elapsed Time:
01 Minute

 3
(Batch Process vs. Continuous Flow)
Batch Process
Process
I Process
I Process
“A” “B” “C”
Elapsed Time:
60 Minutes
Continuous Flow (One-Piece Flow)
Process Process Process

“A” “B” “C”
Elapsed Time:
Demand Chain Solutions 01 Minute
This question is asking where you will require

supermarkets or where you will have coupled
processes.
Evaluate the following factors when considering
this question:
 Cycle Time Compatibility
 Equipment Uptime/Downtime (remember that
coupling can multiply the effects of downtime)
 Equipment Investment
 Flexibility

2
Where will you need to use supermarket pull
systems to control production of upstream processes?
 Typically, a pull system is needed wherever continuous
flow stops.
 The only exception would be to use a simple FIFO system.
 FIFO may work in situations where only inventory

quantity needs to be controlled (not sequencing, batch
sizing, etc.).
 Visual quantity control is needed - without physically
counting parts and scheduling machine operation.
FIFO


2
At what single point in the
PC&L production chain will you
schedule production?
 Usually, you will schedule

production at the final process.
oxox  Exceptions to this might be where

your final process is supplied
through FIFO.
Molding Assembly
FIFO


1 Pacemaker Process
 Consideration must be given to level both the mix and overall quantity of
product scheduled for production.
 Leveling of the production schedule is a fundamental requirement for the
efficient management of operations
Without Leveling With Leveling
Work- Work-
load load
Time Time


2
(Continued)
Leveling of the overall production quantity must be supported by the
leveling of the product mix.
Traditional Scheduling Level Scheduling

Daily Production Daily Production
Mon 4370 Part D Part A 218
Part A
Part D Tue 4370 Part D Part B
Part C Part B 655
Part D
Wed 4370 Part D Part A
Part C 874
Part B
Part C
Part D Thu 4370 Part C Part D Part D 2622
Part A
Part B
Fri 3277 B 1092 A Part C
Part D
Part D Part A
Part B
Part C
Part D
Part A
Part B
Part C Part C
Part D
Part A & B
Mon. Tue. Wed. Thu . Fri.
Mon. Tue. Wed. Thu. Fri.


2
(Continued)
 Leveling
of the product mix must be
supported by small lot production.
 Smalllot production must be supported by
quick set-up.

(Continued)
An effective way
of communicating
the level schedule
to manufacturing
operations can be
through the use of
a load leveling
box.

What increment of work will you consistently
release and take away at the pacemaker process?
Macro-Leveling
Mon Tues Wed Thurs Fri Sat Sun
Part
Build
A
Order
Part
B
Part
C
Part
D
Part
E

What increment of work will you consistently
release and take away at the pacemaker process?
(Continued)
Micro-Leveling
Build Order
Sequenced and Timed
8:00 8:10 8:20 8:30 8:40 8:50 9:00 9:10 9:20

One row per
part number
Part
Card (Part A)
Card (Part A)
Card (Part A)
A
Part
Card (Part B)
Card (Part B)
Card (Part B)
Part
Card (Part C)
Card (Part C)
Card (Part B)
C
Std Pack = 10 pcs

Takt Time = 1 min. One column per pitch Kanban
(Equals 10 minutes) (pull card)

Agenda - Session 2
 Summary

What process improvement are necessary for the
value stream to flow as your future state design specifies?
This step is key to any successful

value stream improvement
activities.
 Data is analyzed to
determine waste
(inhibitors to flow). This is the step where
we can most impact
 Plans are developed to the bottom line.
reduce or eliminate
waste.

4
Summary
Objectives Review
 Explain Value Stream Mapping
 Complete a Current State Value Stream Map
 Complete a Future State Value Stream Map

with proposed Implementation Plan

Agenda - Session 2
 Summary

Activity: Design Future State
Approximate
Task Total Time:
Using the current state map for your selected value

stream, design your future state.
Outline a plan.
Review future state design and plan.

Cmmi - Value Streaming

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Demand Chain Solutions

Value Stream Mapping

Demand Chain Solutions

Implementation without a plan will lead to disaster

A Value Stream Map is a simple

picture that helps you focus on Stamping Welding Assembly

flow and eliminate the waste 3 Shifts

MAP THE FLOWS !

Eyes for Waste . . .

Demand Chain Solutions

Demand Chain Solutions

 Current State Map

 Activity: Map Current State

Demand Chain Solutions

A Value Stream includes all elements (both value added and

Requirements Design Raw Materials Parts Manufacturing

Assembly Plants Distribution Customer

Typically we examine the value stream from raw

It is also possible to map business processes

Value Stream Mapping (VSM) is a hands-on process to

Stamping Welding Assembly Finished Goods

3 Shifts 3 Shifts 3 Shifts # Material Handlers

Inv.Time ? days ? days ? days ? days

Future State Material, Information and Process Flows

 Provide the means to see the material, process

cas t Forecast Customer

Map the Current State

I Stamping Welding Assembly Finished Goods

TAKT = TAKT = TAKT = # Shifts =

2 Shifts # Operators Cycle Time = Overtime =

Changeover Time=4 hr Cycle Time = WIP =

Downtime Scrap/Rework DT, Scrap= 10%

2 Presses Downtime = 20% Changeover Time = Customer

Stamping Welding Assembly Finished Goods

3 Shifts 3 Shifts 3 Shifts # Material Handlers

Analyze the Current State

Inv.Time ? days ? days ? days ? days

Design the Future State Activity

Create an implementation plan and

execute it ! Pull To Sender Ass'y

 Current State Map

 Activity: Map Current State

Demand Chain Solutions

Step 1: Select a Product Family

Demand Chain Solutions

 Define value stream (product family)

 List part numbers

Demand Chain Solutions

 Select a cross-functional team

who are familiar with Product

the product Manufacturing

 Ensure that team Maintenance

members are trained in the

 Plan for Every Part Customer

 Production history (day-to-day, month-to-month

Demand Chain Solutions

Stamping Welding Assembly Shipping

Takt = Takt = Takt = Inventory

Changeover Downtime FTQ

Supplier Daily Ship Schedule

Stamping Welding Assembly Shipping

Changeover Downtime FTQ

Stamping Welding Assembly Shipping