Value Stream Mapping

Value Streams

The entire set of activities running from raw material to finished

product for a specific product or product family
In a typical enterprise, value streams can intersect with other
value streams, branch apart or combine together

Value Stream Maps

Value Stream Maps are powerful visual tools

Especially powerful for illustrating the wastes of Overproduction,
Idle Material & Transportation
Value Stream Maps show all actions required to deliver a product
Value Addedas well as
Non-Value Added

Mapping Process

Product Family

Define the Value Stream

Current State Drawing

Understand how the value

currently flows

Future State Drawing

Design a LEAN flow

Work Plan &

Implementation

Plan how to get there

and execute the plan

Information Flow

Example 1
Customer

Start with the Customer

INVENTORY ICONS
WITH PUSH ARROWS

Material Flow

PROCESS BOX ICONS

DATA BOX ICONS

- C/T time
- C/O time
- Up time
- Scrap

Time Line-PLT- Process Lead Time

PT- Process Time
7.6
days

28 days
15 sec

10
days
60 sec

7
days
150 sec

1.5
days
501 sec

3
days
395sec

PLT = 57.1 days

PT = 18.7 minutes

Example 2

Production
Control

3-Month Forecast
Updated Monthly

Design
Kanban

Design
Workcell

Twice
Weekly

Machine/Hone/Cln
Deburr/Insp/Pkge

(3)
Lot Size/Setup
Try for Lot=250

Bottleneck=
Machining

0.5 dy

Monthly
Blanket Order

Monthly Blanket
Order

Supplier

FAX Twice
Weekly

3-Month
Forecast

2.5

1 Shift/Day (8.5 hrs)

0.5 hr (Lunch)
0.5 hrs (Breaks)
Available Time=460 min/dy

Daily FAX/PH
Dispatch
P
Visual

CT=44 sec
C/O=20 min
Lot= 500 pc
Avail=27,600
Uptime=87%

130 sec

Customer

Takt Time
=460min/504pcs
= 0.91 min
= 55 sec

Ship

Daily

504 pcs/day
24 pcs/container

Design
Kanban

Lead Time=5.0 dy
Total Work Time=130 sec
Cycle time=44 sec
85% LT Reduction
25%+ Labor Reduction

1.5 dy

0.5 dy

Material Related Icons

Assembly
XYZ
Corporation
Process

Outside
source

C/T=45 sec.
C/O=30 min.
2% Scrap
3 Shifts.
Data Box

I
300 pieces
1 day
Inventory

Mon
+ Wed
Shipment

Super- Buffer or
market Safety
Stock

Max. 50 pieces

FIFO
Push

Physical
Pull

Finished Goods
to Customer

First-In-First-Out

Material Related Icons - Explanation

Process One process box equals an area of flow. All processes should be labeled.
Also used for departments such as production control

Outside source Used to show suppliers, customers, and those entities outside the
process

Data box Used to record the information concerning a manufacturing process,

department, etc.

Shipment Also notes the frequency of shipments

Inventory Also should note the count and time

Supermarket A controlled inventory of parts that is used to schedule production at

an upstream process. The open side faces the supplying process

Buffer of Safety stock - Also should note the count (that is, stock)

Material Related Icons - Explanation

Push Material that is produced and moved forward before the next process needs
it. Based on the schedule.

Pull Pull of material usually from a supermarket

FIFO Indicates a method to limit quantity and assure FIFO flow of material between
processes. Maximum quantity should be noted.

Information Related Icons

Weekly
Schedule
Manual
Information Flow

Electronic
Information Flow

OXOX

Information

Load
Leveling

Sequenced-Pull
Ball

Go See
Scheduling

MRP
Withdrawal
Kanban

Production
Kanban

Signal
Kanban

Kanban
Post Box

Control center

Information Related Icons - Explanation

Control center A computerized system (Example: Material Requirement Planning)

Manual information flow Example: A production or shipping schedule

Electronic information flow Example: via Electronic Data Interchange (EDI), etc.

Information Describes an information flow

Production kanban (dotted line indicates kanban path) - Permission for a process to
produce the given quantity [one-per-container]

Withdrawal kanban Devise that tells the material handler to get and transfer parts

Signal kanban Authorization to produce the batch [one-per-batch]

Kanban post box Place where kanbans are collected for conveyance

Information Related Icons - Explanation

Load leveling Tool to intercept batches of Kanban and level the volume and mix of
them over a period of time (pitch)

Sequenced pull ball Gives instructions to immediately produce a pre-determined

type and quantity typically of one unit. A pull system for sub-assembly processes
without using a supermarket.

Go-see scheduling adjusts schedules based on checking inventory levels

General Icons
Uptime

Changeover
Operator
Kaizen
Lightning Burst

Quality Problem

Time Related Icons

15 sec

Processing Time

2 days

Production Lead Time

General Icons and Time Related Icons - Explanation

Operator Represents a person viewed from above

Kaizen Lightning Burst Highlights improvement needs on a value stream map at

specific processes that are critical to achieving the goal. Can be used to plan Kaizen
Workshops

Quality Problems- Highlight the quality problems

Processing time and production lead time Under processes and inventories icons,
they are used to calculate Total Flow Process LeadTime and Total Product Cycle Time
to bring the product from order to delivery

A Step-by-Step Example

Start with the customer and the supplier write their details

Draw in process boxes and data.

Add the shipping boxes

Draw in the Inventory triangles and data

Draw in Customer and Suppliers delivery schedules and method.

Put in production control and schedules

Draw in Information flows Internal and external

Material flows between processes (push, pull, kanban)

Draw production lead time/value-added timeline

Calculate production lead time for inventory triangles by dividing quantity of

inventory by the customer daily requirement

Determine the total production lead time and the processing time

Customer
Assembly
Supplier Steel
Company
500 ft coils

18400 pieces/month
-12000- L
- 6400- R
Tray = 20 pieces

Customer
Assembly
Supplier Steel
Company

18400 pieces/month
-12000- L
- 6400- R
Tray = 20 pieces

500 ft coils

Stamping

I
Coils

S. Weld #1

I
1

4600 L

C/T=1 sec
C/O=1 hour
Uptime
=85%
27,600
sec. avail.

I
1

2400 R

5 days

Assy
#1

S. Weld #2

1100 L

1600 L

I
1

850R

600R

C/T=39 sec

C/T=46 sec

C/O=10 m

Assy
#2

1200 L

2700 L
1440R

640R

C/T=62 sec

C/T=40 sec

C/O=10 m

C/O = 0

C/O = 0

Uptime =
100%

Uptime =
80%

Uptime =
100%

Uptime =
100%

27,600
sec. avail.

27,600
sec. avail.

27,600
sec. avail.

27,600
sec. avail.

Shipping

Staging

Customer
Assembly
Supplier Steel
Company

18400 pieces/month
-12000- L
- 6400- R

Tray = 20 pieces

500 ft coils

2 shifts

1x Daily

Tues. &
Thurs.

Stamping

I
Coils

S. Weld #1

I
1

4600 L

C/T=1 sec
C/O=1 hour
Uptime
=85%
27,600
sec. avail.

I
1

1100 L

2400 R

5 days

Assy
#1

S. Weld #2

1600 L

I
1

850R

600R

C/T=39 sec

C/T=46 sec

C/O=10 m

Assy
#2

1200 L

I
2700 L
1440R

640R

C/T=62 sec

C/T=40 sec

C/O=10 m

C/O = 0

C/O = 0

Uptime =
100%

Uptime =
80%

Uptime =
100%

Uptime =
100%

27,600
sec. avail.

27,600
sec. avail.

27,600
sec. avail.

27,600
sec. avail.

Shipping

Staging

90/60/30 day
forecasts
6 week
forecast

Supplier Steel
Company

Production Control
Daily
Order

Weekly
Fax

500 ft coils

Thurs.

I
Coils

S. Weld #1

5 days

C/T=1 sec
C/O=1 hour
Uptime
=85%
27,600
sec. avail.

4600 L
2400 R

Assy #1

S. Weld #2

I
1
C/T=39 sec
C/O=10 m
Uptime =
100%
27,600
sec. avail.

1100 L
600R

1600 L
850R

Tray = 20 pieces

Daily Ship
Schedule

Weekly Schedule

I
1

18400 pieces/month
-12000- L
- 6400- R

MRP

Tues. &

Stamping

Customer
Assembly

2 shifts

1x Daily

Assy #2

I
1

1200 L
640R

C/T=46 sec
C/O=10 m
Uptime =
80%

C/T=62 sec

C/T=40 sec

C/O = 0
Uptime =
100%

27,600
sec. avail.

27,600
sec. avail.

C/O = 0
Uptime =
100%
27,600
sec. avail.

Shipping

2700 L
1440R

Staging

90/60/30 day
forecasts

Production Control

6 week
forecast

Supplier Steel
Company

Daily
Order

Weekly
Fax

500 ft coils

Customer
Assembly
18400 pieces/month
-12000- L
- 6400- R

MRP
MRP

Tray = 20 pieces

Daily Ship
Schedule

Weekly Schedule

2 shifts

Tues. &
Thurs.
1x Daily
Stamping

I
Coils

S. Weld #1

I
1

5 days

C/T=1 sec
C/O=1 hour
Uptime
=85%
27,600
sec. avail.

4600 L
2400 R

Assy #1

S. Weld #2

I
1
C/T=39 sec
C/O=10 m
Uptime =
100%
27,600
sec. avail.

1100 L
600R

1600 L
850R

Assy #2

I
1

1200 L
640R

I
1

C/T=46 sec

C/T=62 sec

C/T=40 sec

C/O=10 m
Uptime =
80%
27,600
sec. avail.

C/O = 0
Uptime =
100%
27,600
sec. avail.

C/O = 0
Uptime =
100%
27,600
sec. avail.

2700 L
1440R

Shipping
Staging

90/60/30 day
forecasts

Production Control

6 week
forecast

Supplier Steel
Company

Daily
Order

Weekly
Fax

500 ft coils

Customer
Assembly
18400 pieces/month
-12000- L
- 6400- R

MRP
MRP

Tray = 20 pieces

Daily Ship
Schedule

Weekly Schedule

2 shifts

Tues. &

1x Daily

Thurs.

Stamping

S. Weld #1

I
1

Coils
5 days

4600 L
2400 R

C/T=1 sec

5 days

C/O=1 hour
Uptime
=85%
27,600
sec. avail.
1 sec

7.6
days

Assy #1

S. Weld #2

I
1
C/T=39 sec
C/O=10 m
Uptime =
100%
27,600
sec. avail.
39 sec

1100 L
600R

1.8
days

1600 L
850R

Assy #2

I
1

1200 L
640R

I
1

C/T=46 sec

C/T=62 sec

C/T=40 sec

C/O=10 m
Uptime =
80%
27,600
sec. avail.

C/O = 0
Uptime =
100%
27,600
sec. avail.

C/O = 0
Uptime =
100%
27,600
sec. avail.

46 sec

2.7
days

62 sec

2
days

Shipping

40 sec

2700 L
1440R

4.5
days

Staging

PLT = 23.6 days

PT = 188 sec.

Guide lines to draw future state map

1. Produce to your takt time
2. Develop continuous flow wherever possible (+line
balancing)
3. Use supermarkets to control production where continuous
flow does not extend upstream
4. Try to send the customer schedule to only one production
process (pacemaker process)

5. Distribute the mix of products evenly over time at the

pacemaker process (Level the production mix)
6. Release and take away only a small, consistent increment
of work at the pacemaker process.

1. Produce to your Takt time

Your available work time per
shift

takt time=

Customer demand rate per shift

Takt time indicates how often you should produce one

part or product based on rate of sales

Takt time is used to synchronize the pace of production

with the pace of sales.
it gives you the idea the rate at which you should be
producing
Producing to Takt time needs
- fast response to problems
- eliminate cause of unplanned downtime

-Eliminate or make the changeover time near zero

 2. Develop a continuous flow

This refers to producing one piece at a time
Immediately passed from one process step
to next without stagnation
Continuous flow is the most efficient way to
produce
In the future state map the continuous flow
will replace few process boxes in the current
state map
FIFO lane is a good way to start with

 3. Use supermarkets where continuous

flow does not extend upstream
There are often instances where continuous flow is not
possible
Some process are designed to operate at very high
rate or low rate and need to change over to multiple
products
Suppliers or customers are far away
Some process have a very high cycle time
Unreliable to couple directly to other process in a
continuous flow
Out sourcing some process steps
Supermarket means inventory and needs extra material
handling requirements
Try to avoid

Supermarket pull system

Production Card

Withdrawal Card

Shipping

Final
Assembly

Controlled
Inventory

= Product
For custom products, finished goods are not
produced to a supermarket

C
u
s
t
o
m
e
r

 4. Try to sent the customer schedule

to only one process
The pull system typically needs to schedule
only one point of the door-to-door value
stream
This point is called the pacemaker process

No supermarkets down stream to the pacemaker

process

i.e. pacemaker process is the most

downstream continuous flow process

5. Level the production mix

Batching in the assembly mean the

fabricated components are consumed in
batches

This swells the inventory throughout the value

stream

Leveling the product mix means distributing the

production of different products evenly over the time

Instead of assembling all Type A product in the morning and

Type B product in the afternoon, reputedly do both in smaller
quantities.

Better you do leveling you will respond to your

customer positively

6. Create an initial pull by releasing and

withdrawing a small amount of work

Many companies release large batches of

work
Then there is no sense of the takt
The amount of work done by operators vary with
peaks and valleys
Difficult to monitor are we behind or ahead
Respond for changes is difficult
Load leveling can be helped with a load leveling box heijunka

The Kanban Control

Once the Production kanban is

received, the Machine Center
produces a unit to replace the
one taken by the Assembly Line
people in the first place

Machine
Center

Storage
Part A

Production kanban

Material Flow
Card (signal) Flow

The process begins by the Assembly

Line people pulling Part A from Storage

Withdrawal kanban

Storage
Part A

Assembly
Line

This puts the system back

were it was before the item
was pulled

90/60/30 day
forecasts

Production Control

6 week
forecast

Supplier Steel
Company

Daily
Order

Weekly
Fax

500 ft coils

Customer
Assembly
18400 pieces/month
-12000- L
- 6400- R

MRP
MRP

Tray = 20 pieces

Daily Ship
Schedule

Weekly Schedule

2 shifts

Tues. &

1x Daily

Thurs.

Stamping

S. Weld #1

I
1

Coils
5 days

4600 L
2400 R

C/T=1 sec

5 days

C/O=1 hour
Uptime
=85%
27,600
sec. avail.
1 sec

7.6
days

Assy #1

S. Weld #2

I
1
C/T=39 sec
C/O=10 m
Uptime =
100%
27,600
sec. avail.
39 sec

1100 L
600R

1.8
days

1600 L
850R

Assy #2

I
1

1200 L
640R

I
1

C/T=46 sec

C/T=62 sec

C/T=40 sec

C/O=10 m
Uptime =
80%
27,600
sec. avail.

C/O = 0
Uptime =
100%
27,600
sec. avail.

C/O = 0
Uptime =
100%
27,600
sec. avail.

46 sec

2.7
days

62 sec

2
days

Shipping

40 sec

2700 L
1440R

4.5
days

Staging

PLT = 23.6 days

PT = 188 sec.

Q1 -What is ACMEs takt time

takt time=

Your available work time per

shift

Customer demand rate per

shift
Customer requirement-18,400 per month
Factory works 2 shifts and 20 days a month
Available working time per shift=27,600 seconds
Customer demand = 460 units per shift

takt time= 60 seconds

Q2 Should Acme produce finished goods

to supermarket or directly to shipping
Always try to develop continuous flow, if not supermarkets
could be used)
Continuous flow means producing one piece at a time..
Acme steering brackets are small (easy to store)
Have only two varieties
Customer demand rises and falls some what unpredictable

Decide to produce to a finished goods

supermarket

Q3 Where can Acme introduce continuous flow

Cycle time of Stamping is very low and therefore it has to operate as a
batch process producing to a supermarket
Check the other times with the takt time
Every operation should be slightly below the takt time
The operations weld (39s), weld 2 (46s), assemble (62s), and assemble
(40s) can set in a cellular system, distributing the work among
operators so that each operator has work just bellow takt
Total time is 187 s and operators are four, therefore they are slightly
underutilised, a process improvement may help removing one operator.
Use a Kaizen burst to indicate this on the future state

Q4 Where can Acme use supermarket pull systems

-Stamping comparatively short cycle time
ideally a tiny stamping machine dedicated to this line
not in immediate future

-Finished good supermarket shipping in batches

decide the batch size and introduce a withdrawal
kanban for the supermarket
withdrawal kanban triggers the movement of parts
Production kanban triggers the production of parts
-Raw material- deliveries in batches
The amount in the supermarket is decided by the change
over times machine down times etc.
Reduction in changeover times is essential.

Q5 What single point in the production is

scheduled? (pacemaker process)
-All process steps downstream the pacemaker should occur in
a flow
- As there is a supermarket between weld/assembly and the
stamping process,

-The weld/assembly process can be used as the

pacemaker process
-This single scheduling point will regulate the
entire value stream in acme plant

Q6 What is production mix at the pacemaker

process?
The daily deliver = 420*2 ( left and right brackets)
Customer wants 600 (30 trays) of left drive brackets and 320
(16 trays) of right drive brackets.
This amount is loaded onto a truck at one time.
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLRRRRRRRRRRRRRRRR
Producing this large batches are not acceptable in lean although
change over time is a concern
-needs reduced changeover time for stamping machine
-mix the products more frequently reducing WIP and
better response for the customer
RLLRLLRLLRLLRLL

Q7 What amount of work is released by the

pacemaker process
This amount can be considered as one try of products, i.e. 20
pieces
This can be converted to time

=20* takt
= 20 minutes

A load levelling box can be designed to accommodate the

kanban cards at this frequency

Left
Right

Future State map