2009

Value Stream Mapping Value Focus Paper Stream Quality Mapping

By Hector A. Rodriguez February 17th, 2009 GM 588, Managing Quality Professor Doron Zilbershtein
A Quality Focus Paper

By

Hector A Rodriguez Keller School of Management

Héctor Rodríguez Email: hector.rodriguez@southfloridapmi.org

1. ABSTRACT The purpose of this paper is to describe the implementation of Value Stream Mapping (VSM) as a powerful tool for quality and process improvement. A VSM workshop will be applied to the value stream, called: “product development” at three GM engineering centers in South America. As part of the GM global strategy to joint efforts and share the worldwide knowledge base, in 2003: GM Venezuela, GM Colombia and GM Ecuador were all integrated as one operation called GM Andean Region. All three countries have manufacturing facilities, and all three countries have had independent product engineering operations for many years. These three units were integrated into one business operation to improve their performance, to increase market share, to speed product launching, to expand the market offer to satisfy the customer across the region. One of the biggest challenges of this unification was to standardize processes, procedures and strategies across different departments in all three countries. We all have the same CEO for the Andean Region, and each assembly facility had a Chief Operation Manager. The CEO’s strategic guidelines clearly stated to consolidate the three engineering centers into one Andean Engineering Center, so resources and efforts from the three countries were maximize. The objectives of the VSM workshop to this value stream were: • Improve and reduce the time for engineering release , validation and parts/components approval for production • Standardizing the Andean Engineering operations with those of the corporation, to be aligned for global programs development. • • To improve and standardize the validation plan to have faster product launches To increase the effectiveness of the engineering value stream from an approximate 30% to a 90%, First Time Quality ( FTQ)

2003). (Burton & Steven. when it developed its Toyota Production System (TPS) after World War II. (4) pull. (2) create the value stream. 2003). increase throughput. But the reality is that many of the basic concepts of lean have been applied in business for the past 100 years. (Burton & Steven. companies have always been enamored with strategies to reduce waste. However it is know that only 80% of the companies have tried or say they have implemented lean practices.2. Value Stream Mapping ( VSM) is a lean tool. (Womack & Jones. Toyota pursued the TPS primarily to eliminate waste and reduce costs in its production system — it was the obvious solution to manage the constraints of space. hence leaner organizations. Mass production manufacturing methods have been replaced by results-oriented lean production systems that focus on waste elimination throughout the enterprise. 2003). INTRODUCTION U. and as such it contributes to create leaner processes. VSM is a tool within the Six Sigma philosophy. and gain market share. and methodologies of lean have been present in American industry for decades. while only 20% has really implemented lean as business philosophy. definitions. hence giving substance results to the efforts they are putting to get leaner. Probably the most well-known example of lean is Toyota. to eliminate waste in processes to make them faster. more efficient and effective. people.S. The concepts. and (5) perfection. For over 20 years before anyone knew it. and limited resources. . There are five key principles for lean that has been identified: (1) specify value. utilized to clear and slim down process flow in value stream. (3) flow. create competitive advantage.

LITERATURE REVIEW Before we understand Value Stream Mapping as tool. we need to explain the most important concepts within the Lean Thinking : Process. exactly adequate (no bottlenecks: TOC and TPS). Lean. and scalable: TPS). The perfect process would be that one in which value is perfectly specified. noiseless pull (so that steps are only performed at the need of the customer: A core concern of TPS) and maximal leveling (so that only true demand is transmitted: A core concern of TPS in the form of heijunka). everyone is aware of the process as it works today. So. “ We observe that our competitors often get average ( or worse) results from brilliant people managing broken processes”. (Womack. (Womack. but there is always a need to seek for a “perfect process”. Also every step should be connected by: continuous flow (so that one step leads immediately to the next: A core concern of Henry Ford. (GM VSM Coach Clinic. every step needs to be: completely valuable (no muda: Obsession of Ford & Ohno). to support the customer. 2005). perfectly capable (gives a good result every time: the starting point of Six Sigma). and consistently flexible (able to shift rapidly from one product to the next. Its been said that the process thinking at Toyota is “ Brilliant process management is our strategy” . Process is as series of steps that must be performed properly in the proper sequence to create value for a customer. Every business is a collection of processes. Value Stream. 2005). “ We get brilliant results from average people managing brilliant process”. as transformed by TPS) . In the search for a perfect process. So. we need to focus on the process by which value is created (value stream). Waste and Value Stream Mapping. 2005) . and every business shares processes with other business. including customers.3. perfectly available (works when it needs to work: the starting point of TPM).

Waste is any element of production. including differences within the TPS community. (That is: We sometimes differ on the best process for achieving the perfect process!) ( Womack. Our differences. the information management task running from other-taking through detailed scheduling to delivery. 2005) Lean thinking in summary: The right purpose supported by the perfect process supported by everyone who touches the process. often referred to as waste. a combination of the two) through the three critical management tasks of any business: the problem solving task running from concept to detailed design and engineering to production launch. or distribution that adds no value to the final product: waste only adds cost and time. 2005) : . as called in Japan. and the physical transformation task proceeding from raw material to finish product in the hand of the customer (Womack & Jones. we are all in search of the perfect process. There have been 7 types of waste (Muda) and two main contributors Mura and Muri (GM VSM Coach Clinic. The seven types of waste were identified by Taiichi Ohno as part of the TPS. are how we frame the problem and how we decide what to do in what order. processing. Whether we are from a Six Sigma or TQM or TPM or TOC or BPR or TPS background. (Womack -2005) Value Stream is a set of all the specific actions required to bring an specific product ( whether a good or a service.Lean deals with the elimination and reduction of many types of non-value added activities. 2003) Many companies usually don’t try to identify the value stream of a product which always exposes a wide variety of waste or Muda. The driving force for waste elimination is improved customer value and increased profitability in the products and services offered by the organization. or. increasingly.

Finally. working ahead: the worst form of waste since it causes all other types of waste • • Transportation/Motion: unnecessary people motions. required to complete a product or service from beginning to end. Value Stream Mapping is a . work that is giving the customer more the he/she is willing to pay for • Unevenness (Mura): a flow of information or product processes that are not regular or constant causing many of the other types of waste. filling. it is more of a pencil and paper tool. the lack of consistency in schedules. Overproduction: making more then is necessary or making things faster than is necessary. information or people. work done because of errors in the previous process.• • Correction/Defects: rework. • Unreasonableness (Muri) : pushing a machine or people beyond their capabilities or what is considered reasonable: overburden In summary a value stream involves all the steps. transfers. Value Stream Mapping is then a visual representation of a value stream. products and info. it also helps establish a common language to document processes and to integrate the team understanding the importance and effects of each step in the value stream. distances of material and information • Waiting: people waiting for machines. walking. searching Material Movement: unnecessary handoffs. both value added and non value added. travel. Value Stream Mapping helps people reveal waste and problems within the flow. Information waiting on people or machines • • Inventory: information or material waiting in queue Processing: redundant or unnecessary mental or physical work. to engage people’s awareness of a system process.

waiting time. but when transferred to the PD processes different challenges were present. First in manufacturing the process is related mainly to product flow. VSM was first implemented in manufacturing. lead time. first time quality) • Documents performance characteristics of both the Value Stream and the individual process steps. Manufacturing is mainly focus on physical and tangible outcomes. REAL LIFE APPLICATION VSM WORKSHOP FOR A PRODUCT DEVELOPMENT VALUE STREAM There is one specific area that has seen the benefits of implementing Value Stream Mapping. bringing products faster and with better quality to the market. while PD is more focus on knowledge work.tool that will provide a blueprint for constant improvement and apply waste elimination to achieve improvement in flow. the flow in . why is VSM so unique? and what are its benefits? : • • • • Visualizes the process flow from a systems perspective Focuses on the customer and the customer’s requirements Includes information flow and product movement linked to process flow Summarized the timeline as it relates to delivery to the customer-metrics ( process time. in manufacturing second and minutes are important. The Product Development Value Stream Mapping (PDVSM) first implemented by Toyota. by detecting waste and improving factors like time and effectiveness. Product Development (PD). has helped look at the PD as a continuing flow. while in PD is about data flow . So. timelines are different. • Visibility of progress and quality 4. while in PD the timeframe is more related to months and weeks .

and will almost certainly be measured. 2005). The value stream consists of flows of information and knowledge that are less easily tracked than the material flows of the factory. reason why PD need more large and diverse group of technical expertise. training and working hours are necessary to have positive outcomes. VSM is not an easy tool to implement.1 shows the different steps undertaken in a VSM implementation project. Figure no. differently. Value may be defined. cost and improve efficiency in the product development process.” they work on jobs of varying size and complexity. Uncertainties must be handled and eliminated as part of this process. while in PD is multidirectional. Engineering is different from manufacturing. Many engineering processes handle “mixed model lines. (Morgan & Liker. a lot of commitment. These factors complicate the job of value stream mapping. 2006) . and hence coupled or iterative processes may be required. As part of the academic objective we are going to present a case how VSM was used to improve the design and engineering processes at one of the GM business units. current state drawing. (McManus. VSM Steps VSM is divided into four different phases: scoping.the manufacturing environment is more lineal. . The purpose is to demonstrate how VSM aids to reduce time. future state drawing and planning/implementation.

validate plan Figure no. Not all ideas and processes can be evaluated from the VSM perspective. so the scoping steps helps ensure that the project involves a value stream.Scoping the Value Stream Determine the Value Stream to be improved Current State Drawing Understanding how things currently operate.60. 1 Scoping: this step consist of idea generation. This is the foundation for the future state Future State Drawing Designing a lean flow Planning and Implementation The goal of mapping ! PostImplementation Review Check points 30. project selection and validation as a value stream process. 2005): • Project sponsor: who is wanting and interested to support and improvement of a relevant process to the organization • Process owner: the leader responsible for the process outcomes. The scoping document will lead through the following questions and help form the team (McManus. A scoping document needs to be completed before considering implementing a VSM workshop. .90 days. a process with inputs and outputs that involve many steps to complete.

The process suppliers. who provide inputs in the form of data. knowledge. and who is the final customer of the process. How should we measure this metrics. It is a process oriented tool that asks the team to consider the process in the context of suppliers. Process. costs and others. lead time. etc. outputs and customers have been identified as well as some preliminary issues to attend during the workshop. and requirements. What is causing the issues described in the project description? • • • Who is the customer Customer requirements List of participants: as to who supplies info to the process.• • Workshop coach: a facilitator to lead the different teams through the VSM phases. who operates the process. Several issues have been detected from the scoping: . resources. Inputs. Customer. inputs. wants. • A Leadership panel will need to be setup to evaluate the recommendations and proposals and also to lead the team throughout the workshop • Data needed for the workshop such as process time. Let’s take a look at the SIPOC for our Product Engineering Project in Figure no. Also the SIPOC helps identify certain outputs for which there are customers who have a variety of expectations. Outputs. Project description and objective ( purpose of VSM). why are we doing the workshop • • Expected results/Deliverables – What improvements do we want to achieve? Root Cause of the problem ( current state). One tool utilized to help structure a good scoping is SIPOC: Suppliers.2. process. first time quality. A preliminary process flow has been drawn to understand the flow of events and to prepare for the next step of drawing the current map.

.Before the process • • • • • Project technology transfer delays Lack of technology to process information Late definition of option list Confidentiality and Ownership agreements delays Prototypes delays Inside the process • • Later purchase orders Lack of technical meeting reviews Customer issues with current process • • • • • • Later requirements from manufacturing Limited technology in supplier base Lack of standardization in engineering processes Delay in validation of parts and approvals for production Delays in material part list distribution Delays in sample for developments.

SIPOC. Validation and Part Approval . 2 Source: VSM Workshop GMV: Engineering Release. 2005 .Figure No.

question like : who is the customer? What do they need? When do they need it? Will be easily drawn in this map and will help team members to educate themselves about the value stream. One important point of the current state is that it will help identify the key processes within the value stream. lead time and first time quality for the value stream under analysis. in order to later discover waste. The current map drawing will permit to visualize the value stream very easily. it needs to document every step pretending one is at work. In addition. waiting time. . documenting and discovering the items being produce. calculate the process time. After the current state map is drawn. to draw the current map of the value stream. the data attributes need be defined. at least the following criteria should be considered: • • Process Time ( P/T ) : time to actually conduct the work of the process step Waiting Time ( W/T) : o During the process step: time when the process is not yet complete. a “value stream walk” will help fill the information for every step of the processes. but is not being worked on o Between process steps: time between processes steps when the task is not being worked on • • Lead Time ( L/T): Process Time + Waiting Time First Time Quality ( FTQ): the percentage of the time that the task is able to be completed. accurately. Also must establish how each process knows what to process next and document the information flow. For the current state.Current State: This next step allows defining the current situation. it will help document the customer information and needs for every step of the process. So. the first time it is worked on.

4) . 3 shows some of the most common symbols on VSM workshops and their meaning. and validate them in the current state map. we implement different symbols to express process attributes and characteristics that will help us visualize waste. We have measured our initial metric estimates. linking every step from the beginning: Definition of Vehicle Product Specifications (VDS) to the end: PPPAP. . Figure No. waiting time.Symbols In order to draw the current state map we should use the VSM symbols.electronic Physical Communication/mail :Push System Pull system Supermarket iterations change Improvement Kaizen XOXO Mix leveling FIFO First-In First-Out Figure No. and to correct potential flow problems. The estimated results were drawn from the scoping phase. while the current state give us a more precise understanding of process time. (GM VSM Coach Clinic. 2005) Process Box Symbols IN In Box (wait) Waiting Time Customer MRP ERP /Systems P/T W/T FTQ Info Box Info flow – Conversation (phone) Operator Weekly Agenda Info flow . 3 For our Product Engineering project we have drawn our current state (figure No. lead time and FTQ.

After completing the actual estimate for the current map. . resources. 1 shows the metrics measured and controlled over the implementation of the VSM workshop. the numbers for the first line represents the results for Venezuela Engineering Center and the second line for Colombia-Ecuador engineering centers. but still very low . Current Map Table No. It table no.Figure No. we discovered the times were very similar to what was estimated on the scoping. and eliminate unnecessary activities. 1 we show the estimates for two different business units. steps that will help improve the value stream. around 40%. validation and Parts Approval. however the FTQ was higher that expected. This indicate we have a lot of opportunity to get rid of waste. 4 Source: VSM Workshop GMV: Engineering Release. which means the value stream under study has an effectiveness of 40% quality the first time.

Table No. Before stepping into the results of the future state map. D= days. The purpose of this state is to develop a future state map which eliminates the current state problems. especially when release by a different engineering center from the assembly plant. 1 Metric SPQRC Actual Estimate From scoping Actual Estimate on current state map Objective for the Future State Real future state (90 days alter implementation) Process Time Lead Time First Time Quality 12M 17M 1D 15M 1W 8% 10% 12M 1W 12M 3W 17M 2W 15M 1W 37. The following table summarizes some of the problems identified in the current state map and their root causes.24% M= months. 2 Waste / Problem Identified Root Cause Improvement Idea / Solution Standardize the key processes of the Engineering Centers: • Criteria for Part Number release • Creating and Assembly Breakdown List loading to the engineering systems • Engineering Change Notifications ( ECN) formats and loading Engineering release is done in different sites Engineering Centers has different release ( Col/Ven/Ecu). as well as. which will reflect a lean design and eliminates waste as well as the underlying problems identify in the current state. . let’s review some of the problems discussed on the Product Engineering project. 27 problems in total where identified in the current map and they can be summarized the following three categories: Table No.13% 42. W= weeks. rework and potential processes problems for assembly occurs. proposals for solution according to the future map design. Engineering Change Notifications ( ECN) are not reliable. Second Line results for GM Colombia/Ecuador Future State: this state will help identify waste and draw a desire map for a leaner value stream. Once having the current state we need to ask ourselves: what seems to be broken? What problem exists in the system? This will help us identify waste and get rid of it. First line results for GM Venezuela.

5 Source: VSM Workshop GMV: Engineering Release. and they will be set as new targets. grey boxes designs) Align with corporative procedures for part number creation Rework when technical information for design release is from other GM Engineering Centers Work confidentiality and property agreements parallel to the approval of projects (CSO). 3 we show our new target values. to support and facilitate technological transfer from suppliers and sources to GM. Future State. From our application. Figure No. The metrics that we have been measuring in the scoping and current state map. Validation and Part Approval. in table No. expressing that waste have been identified and removed. 2005 As part of the future state mapping we have redesigned the flow of the process in order to achieve improvements that will be part of the target future state. Negotiate technical agreements clause in the contracts. 5. The future map in figure No. looks leaner. Technical License agreements with different sources with exclusive designs ( Black boxes.Part Number proliferation ( temporal and definite numbers) No uniformity in part Lumber creation criteria. . will also be revised according to the future map. not as chaotic as the current map. does not follow the corporation guidelines and practices for part number creation Confidentiality and Property agreements.

In order to complete the action steps we used a Business Plan Deployment. Process time and lead time will be reduced by almost 3 months. 3 Metric SPQRC Actual Estimate From scoping Actual Estimate on current state map Objective for the Future State Real future state (90 days alter implementation) Process Time Lead Time First Time Quality 12M 17M 1D 15M 1W 8% 10% 12M 1W 12M 3W 17M 2W 15M 1W 37. This will permit to launch products faster. the plan is to increment from and average 40% of FTQ to 83% FTQ . a scorecard containing the following: • • Goals: supports the attainment of the vision and mission Objective: the change from the current state to the future state . realistic. Also if we look at the intended first time quality . simplify and document the process.13% 42. improve first time quality. So.24% 9M3W 13 M 2 W 90% Look the new process flow has helped plan for better targets. Set SMART targets (specific. timed). Then need to define the action steps to achieve the objectives. need to review the changes to move from current state to future state. assigning responsibility for each action step to a workshop participant. improve response time. for each action step with measurable impact and scheduling. agreed. Finally implement the plan to achieve the future state. Implementation: In this last state we need to define the objectives: a new outcome or new condition that needs to be achieved. assign support and secure buy in for each objective. eliminating much of the rework done during engineering designing and validation phases. as a group. standardize the process.Table No. After a future map is been developed. measured. a plan needs to be created with specific objectives and action steps to achieve the future state: Reduce Cost and waste.

Implementation Activities: after implementation is on going. Timeline: When the plan begins and when it will be completed Support: Who must contribute or provide support Reviews ( control point) : checks to make sure implementation is proceeding as planned and having the impact intended. To identify problems associated with implementation and ensure plans are in place to address the problems. Validation and Approval of parts. and cost of the Value Stream • • • A new value stream is the standard A new Value Stream that has lean principles and elements in the process A new process has an on-going visual process of monitoring ( performance metrics) Post. a set of review dates are typically scheduled at 30. and review countermeasures for those items not achieving the desired result. noticing that results from current state has change dramatically and improving the process flow in the Product Engineering Release. Summarizing the implementation state deliverables will be: • A fully implemented plan which has improved quality. The purpose is to asses the implementation status to review the objectives and methods to the plan. 4 we show the 90 days results for our pilot program GMT900. The plan needs to be check monthly. In table No.• • • • • • Method/Action Steps: the task that have to be done to accomplish the change Responsible: who is responsible for the objective or action step Target: a measure that will indicate that the objective/Action has been achieved. responsiveness. additions. The process time and lead times for the value stream were 9 months for process time and 14 . changes. 60 and 90 days after the workshop. After the 90 days we validated the results of our new value stream. and make notations to the plan regarding delays.

24% 9M3W 13 M 2 W 90% 9M 14 M 84% 5. applying many improvements ideas. but worth it.months for total lead time. and muda interrupts the flow of work. VSM is a powerful tool. while US companies improve their usage after 1996. integrate and teach all the participants about their importance in the value chain. a little complicated and time consuming. that brings relevancy. the value stream is now 3 months faster than the current situation. this permits to launch faster products to the market. and making leaner processes in many manufacturing and product development environment. . Table No. It is remarkable how the lead time ( process time + waiting time) for the whole value stream has dramatically decreased from an estimated 17 months to a 14 months. the FTQ was raised from and average 40% to an 84%. 4 Metric SPQRC Actual Estimate From scoping Actual Estimate on current state map Objective for the Future State Real future state (90 days alter implementation) GMT900 Process Time Lead Time First Time Quality 12M 2 W 17M 1W 15M 1W 8% 10% 12M 1W 11M 3W 17M 2W 15M 1W 37. More importantly the results show how a standardized process for the three GM engineering center was achieved. how each process affects the next one.13% 42. and one of the most rewarding aspects of VSM is to see how this tool allows taking a snapshot of the current situation. It helps draw a complete value stream. and with guidance and leadership helps identify waste and eliminate it from the value stream. maximizing efforts and results to this value stream. It can be implemented in any field to detect wasteful activities. It is amazing how Japanese corporations like Toyota have been implementing this tool for years. CONCLUSION I have been a certified VSM coach for 3 years.

managers. We saw in our application how VSM helps reduce time of engineering process. VSM is a very complex tool.VSM is a tool that will aid to integrate teams. VSM will definitely be one of my most powerful tools to help organizations get leaner. confirming that VSM is a very powerful tool in the lean thinking arena. and the benefits it will bring against the investment of so many working hours. and some resistance to change is to be expected from teams. Engineering process development includes many trades of information. value stream mapping focus to product development . at detect waste in the engineering process. suppliers. Some time is not easy to introduce this kind of tool to instill a lean philosophy in any organization. and to improve the quality of work. this can be seen as more work instead of time investments. interaction between engineers. VSM is not a tool to be implemented by consultants or facilitators alone. customers. is a tool to improve the product development process. it requires hours of training and most importantly commitment from attendees. I like this tool so much that I have considered implementing it in my new business as a process improvement consultant. it is an inside job. reports. to short down design and development cycles. facilitators and processes owners. Some times. to set common goals to multi disciplinary teams. approvals. making the value stream outputs common to all the stakeholders On the other hand. among other stakeholders. So. improvements and action plans. better and faster. and most importantly to standardize process among different engineering centers. potential for waste elimination is always existent in this kind of administrative work. it brings relevancy to the value streams. employees must come with their new and leaner ideas. to better understand the flow of information and products. . PDVSM. process. papers. it helps reduce times of development. it will take hours of training before the concepts are understood by a large group of leaders. While creating my new company.

php?option=com_docman&task=cat_view&gid=94&Itemid=1&mosms g=You+are+trying [2] [3] [4] [5] [6] . and Technology Burton. May 2005 James P Womack 2005 Frontiers of Lean Thinking: Where we are. Liker – 2006 the Toyota Product Development System: Integrating People. Lean Extended Enterprise: Moving Beyond the Four Walls to Value Stream Excellence Value Stream Mapping: Go Fast ! Coaches GM Clinic.pdf Dr. Process..edu/index.mit.2003.2005. Daniel T.REFERENCES [1] James P. Terence T. Womack. Jones – 2003 Lean Thinking: Banish Waste and Create Wealth in Your Corporation James M. Hugh L. MIT http://lean. Steven M . Where we are going http://www.nl/publications/industryweek_webcast_slides. McManus . Jeffrey K. Boeder. Morgan.leaninstituut. Product Development Value Stream Mapping (PDVSM) Manual Lean Advance Initiative .

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