Value Stream Mapping

Presented By Jaipravin

Introducing VSM
• What is VSM? • An example from “Learning to See”
• By Mike Rother and John Shook

• Current-state Map (snap shot) • Future-state Map

Why Value Stream Mapping?
• Helps to see the present state • See the sources of waste in the value stream

• A graphical representation which can be used to study the effect of any change on the performance measure
• Lead time • Total processing time

Value Stream Improvement and Process Improvement
- A Case Study

Designing a lean flow and how to get there Eventually repeat Implementation .Understanding the VSM Tool Product Family Current-State Drawing Future-State Drawing Understanding how the shop floor currently operates.

This map is designed to not only identify the value added activities within the value stream. but more importantly the sources of "non-value added"(waste).Value Stream Mapping A Value Stream Map is a visual representation. or map. identifying all the specific activities occurring along the value stream for a product or service. . From this identification a "future state map"is created of how the product or service should flow without the "non-value added" sources of waste that cloud customer satisfaction.

• It helps you see more than waste. . • It provides a "common language" for talking about your key customer processes. The map identifies the sources of non-value added waste.Benefits of value chain mapping • It helps you see the entire flow of a product or service. beyond the single-process level. -It provides information about the flow of the product or service so discussions are based on data prior to decisions being made. • It brings together "lean enterprise" concepts and techniques.

• It shows the linkage between information flow and material flow. • It is a visual tool for describing what you are actually going to do to eliminate the sources of non-value added (waste) that impacts your bottom line and your customer and employee satisfaction positively! .Benefits of value chain mapping • It forms the basis of an implementation plan or blueprint for lean enterprise accomplishment through Kaizen or other continuous improvement methods.

Terms Cycle Time? (for a process) Time taken for a part to complete a given process (or the time it takes for an operator to go through all of his/her work elements before repeating them) .

.Terms Value Added Time? VA Time Time associated with those activities that actually transform the part in a way that the customer is willing to pay for.

Lead Time? Waiting Time (NVA) Cycle time for all processes + Other VA time .

or - .Terms Lead Time? The time taken for one part to move through all the processes of a value stream. from start to finish .

Typical Steps for Current State Drawing 1. Customer information 2. 6. 5. Quick walk through in the shop floor to identify the main processes (in order) Fill in the data boxes and draw inventory triangles Delivery to customer Supplier data Information flow (manual & electronic) Determine the current state and identify what is VA and NVA . 3. 7. 4.

The Current State • Define the Customer’s demand .

400 per month of type “RH” • The company operates on two shifts • Palletized returnable tray packaging with 20 brackets in a tray and upto 10 trays on a pallet. The customer orders in multiple of trays • One daily shipment to the assembly plant (customer) by truck .400 pieces per month • 12.000 per month of type “LH” • 6.Customer Requirements • 18.

Customer Requirements Assembly Plant (customer) 18.400 units per month 12.000 LH 6.400 RH 20 units per tray .

The Current State • Define the Customer’s demand • Map the basic production processes .

Mapping The Process .

Mapping tips • Do an initial quick walk through from door to door and then go back to gather the information • Begin at the shipping dock (customer end) and work upstream to the receiving dock (supplier end) • Let each person/team map entire value stream himself/herself • Mapping begins with the customer requirements .

Control MRP Tue & Fri Truck Shipment Manual Information flow Electronic Information flow Assy. Plant (customer) Manual Information flow Assembly 1 time daily Stamping I I Inventory (incl. count & time) Days of Inventory 2 Shifts Cycle time C/O time VA Time Material movement via push 2 Shifts Cycle time C/O time Manufacturing Process (or a Department) I Data Box . supplier Pr.Mapping Icons Current-State Drawing Outside Source or Customer Raw Matl.

400 units/month 12.Map the Basic Production Processes Assy.400 RH 20 units/tray Stamping I 1 Spot Welding #1 Spot Welding #2 Assembly #1 Assembly #2 Shipping I 1 I 1 I 1 I 1 I 1 .000 LH 6. Plant (customer) 18.

The Current State contd… • Define the Customer’s demand • Map the basic production processes • Define the data to be collected • Cycle time (C/T) • Changeover time (C/O) • Batch size • Pack size • No. of operators • Working time (in secs minus breaks) • Uptime • Scrap rate OEE .

The Current State • Define the Customer’s demand • Map the basic production processes • Define the data to be collected • Collect and map the data .

200 = 20 mins x 60 s/min = 1.Working time calculation 8 Hours x 60 mins/hr x 60 secs/min = 28.800 s/shift Subtract breaks: 2 x 10 mins break 28.200 s = 27.800 – 1.600 working s/shift .

Fill in Data boxes and Inventory triangles Assy.600 s time Uptime 100 % Working 27.600 s time Working 27.600 s time Uptime Uptime Uptime Working 27.600 s time Working 27.400 units/month 12.600 s time . Plant (customer) 18.400 RH 20 units/tray Stamping I Coils 5 Days 1 C/T C/O 1 480 Spot Welding #1 4600 LH 2400 RH s s Spot Welding #2 1100 LH 600 RH Assembly #1 1600 LH 850 RH Assembly #2 1200 LH 640 RH Shipping 2700 LH 1440 RH I I I I I 1 C/T C/O 39 600 1 C/T C/O 46 600 80 1 C/T C/O 62 0 100 1 C/T C/O 40 0 100 1 s s s s % s s % s s % Uptime 85 % Working 27.000 LH 6.

The Current State • Define the Customer’s demand • Map the basic production processes • Define the data to be collected • Collect and map the data • Define the supplier’s data .

400 RH 20 units/tray Tue & Fri I time daily Stamping I Coils 5 Days 1 C/T C/O 1 480 Spot Welding #1 4600 LH 2400 RH s s Spot Welding #2 1100 LH 600 RH Assembly #1 1600 LH 850 RH Assembly #2 1200 LH 640 RH Shipping 2700 LH 1440 RH I I I I I 1 C/T C/O 39 600 1 C/T C/O 46 600 80 1 C/T C/O 62 0 100 1 C/T C/O 40 0 100 1 s s s s % s s % s s % Uptime 85 % Working 27.Add Supplier’s Data Assy.600 s time .600 s time Uptime Uptime Uptime Working 27.000 LH 6.400 units/month 12.600 s time Working 27. Plant (customer) Raw Mtl. Supplier 18.600 s time Uptime 100 % Working 27.600 s time Working 27.

The Current State • Define the Customer’s demand • Map the basic production processes • Define the data to be collected • Collect and map the data • Define the supplier’s data • Map the information flow .

Control 90/60/30 Day forecast Daily order Assy. Supplier Weekly forecast Pr.400 RH 20 units/tray MRP Weekly Schedule Tue & Fri Daily Ship Schedule I time daily Drilling I Coils 5 Days 1 C/T C/O 1 480 Spot Welding #1 4600 LH 2400 RH s s Spot Welding #2 1100 LH 600 RH Assembly #1 1600 LH 850 RH Assembly #2 1200 LH 640 RH Shipping 2700 LH 1440 RH I I I I I 1 C/T C/O 39 600 1 C/T C/O 46 600 80 1 C/T C/O 62 0 100 1 C/T C/O 40 0 100 1 s s s s % s s % s s % Uptime 85 % Working 27.600 s time Working 27.000 LH 6.How do processes know what to make? 6 week forecast Raw Mtl.600 s time .400 units/month 12.600 s time Uptime Uptime Uptime Working 27. Plant (customer) 18.600 s time Uptime 100 % Working 27.600 s time Working 27.

The Current State • Define the Customer’s demand • Map the basic production processes • Define the data to be collected • Collect and map the data • Define the supplier’s data • Map the information flow • Calculate the status of the current state .

Working 27.000 LH/month 6.Value added vs Non value added time Stamping I Coils 5 Days C/T C/O Uptime 1 I 4600 LH 2400 RH 1 480 85 sec sec % (Time Line) Customer Demand 12.600 sec time 5 Days 1 sec 7.400 RH/month 12.7 Days .7 days 2400/320 = 7.600/600 = 7.5 days Max.000/20 = 600 LH per day 6400/20 = 320 RH per day 4.

400 units/month 11.600 s time Uptime Uptime Uptime Working 27.7 days Processing Time = 188 secs Production lead .5 Days Time = 23.500 LH 6.Current State value stream mapping 6 week forecast Raw Mtl.600 s time Working 27.7 Days 62 secs 2 Days 40 secs 4. Supplier Weekly forecast Pr. Control 90/60/30 Day forecast Daily order Assy.600 s time Working 27.600 s time Uptime 100 % Working 27.7 Days 39 secs 1. Plant (customer) 18.900 RH 20 units/tray MRP Weekly Schedule Wed Daily Ship Schedule 1 time daily Reaming I Coils 5 Days 1 C/T C/O 1 480 Honing 4500 LH 2500 RH s s Internal threading 1000 LH 700 RH Thread checking 1500 LH 950 RH Inserting o-ring 1100LH 740 RH Shipping 2600LH 1540 RH I I I I I 1 C/T C/O 39 600 1 C/T C/O 46 600 85 1 C/T C/O 62 0 100 1 C/T C/O 40 0 100 1 s s s s % s s % s s % Uptime 80 % Working 27.8 Days 46 secs 2.600 s time 5 Days 1 sec 7.

Analyse the Improvement Opportunities • Compute the takt time .

400 pieces per month 12.400 RH/20 = 600 LH/day = 320 RH/day 600 + 320 = 920 pcs/day/2 shifts = 460 pcs/shift .What is our Production for each shift 18.000 LH/20 6.400 per month of type “RH” 12.000 per month of type “LH” 6.

600 secs per shift 460 pcs per shift 60 sec = 60 sec 60 sec .Takt time pace of sales (Drum beating) • How to synchronise the pace of production to match the • Rate for producing a component based on its sales rate Operating time per shift Takt time = Customer requirement per shift 27.

The Principles of Just-In-Time • Paced to Takt Time • One piece flow production • At the Pull of the customer .

Analyse the Improvement Opportunities • Compute the takt time • Continuous flow .

move one” Process A Process B Process C Lead time: 12 minutes for total order .Continuous flow processing? • Batch & Push Processing Process A Process B Process C 1 min Lead time: 30++ minutes for total order • Continuous Flow “make one.

Analyse the Improvement Opportunities • Compute the takt time • Continuous flow • Determine what prevents us from producing to takt time .

Assemble #1. 39 East.13 Operators . Assemble #2. Takt time = 60 sec 188/60 = 3. Weld East. 1 Total work work Takt = 188 sec = # Operators reqd. Stamping. 46 #1.Line Balancing Bottleneck operation East. 40 East. 62 East. Weld #2.

4 operators are wasteful.13 operators are required.Line Balancing contd… • If 3. but 3 operators can’t do the work • Combine some tasks? • Can the work be reduced to 56 s per operator so that pace can be maintained? • Find a way to reduce the total work content to 168 s or less .

Line Balancing contd… 56 56 56 . Stamping. 56 East. Weld/Assy. 1 S W W A A Earlier processing time = 1 + 39 + 46 + 62 + 40 = 188 sec S W W A New processing time = 1 + 39 + (17 + 29) + (27 + 56) = 169 sec {102 sec. 27 East. 39 East. 17 . Weld. Weld. Assemble. Weld/Assy. 29 East. of assy time reduced to 83 sec} .

What if flow is not possible? Kanban: only make the customer wants W P W Product Product Machining Pull Assembly Pull .

5 Days 1 sec 1 Day 2 Days 168 sec . Supplier Weekly forecast Pr.The future state Future-State Drawing 6 week forecast Raw Mtl.000 LH 6.5 days Processing Time = 169 secs Uptime 100 2 1. Plant (customer) 18.400 RH 20 units/tray MRP Coil Daily Coil w 20 XOXO Batch 20 Weld & Assembly I time daily P 20 L R 2 Days w 20 Shipping Coils Stamping 1 At the press EPE C/O 1 480 changeover min sec weld changeover 1 Day Takt C/O 3 60 56 0 sec sec sec % shifts welder uptime C/O Working time Total work 169 sec Production lead Time = 4.400 units/month 12. Control 90/60/30 Day forecast Daily order Daily order w Assy.

Significant Improvements • Lead time reduced by 81% • Processing time reduced by 10% .

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