VSM in Job Shop and Custom Manufacturing Facilities PDF

Contents
Page
Value Stream Mapping: A Foundation Step for Lean Manufacturing 1
Value Stream Mapping from an IE Viewpoint: Ideas for Enhancement and

Extension 45
Value Stream Mapping from an Industrial Engineering Viewpoint 84
Evaluation of the Value Stream Mapping Icons for Use in Jobshop-type

Facilities 103
Value Network Mapping (VNM): Visualization and Analysis of Multiple

Interacting Value Streams in Jobshops 120
Value Stream Mapping of a Complete Product 166
Integration of Lean Thinking and Theory of Constraints in a Custom Forge

Shop 190
Appendix:
An Overview of Production Flow Analysis (PFA) 248
Design of High-Variety Low-Volume (HVLV) Manufacturing Facilities

using PFAST 252
Computer-aided Production Flow Analysis for Production Lead Time

Reduction in Custom Forge Shops – A Case Study 257
Value Stream Mapping:
A Foundation Step
for Lean Manufacturing +
Department of Industrial, Welding and Systems Engineering

The Ohio State University
Columbus, OH 43210
+ A summary-cum-review of: Rother, M. & Shook, J. (1999, June). Learning to
See (Version 1.2). Brookline, MA: Lean Enterprise Institute.
© Shahrukh A. Irani and Jason C. Pereira ,1 The Ohio State University

Lean Manufacturing
• Lean means “More for Less”.
• More profit, more productivity for less costs and

investments in raw material, labor and other
capital resources.
• The main goal of Lean Manufacturing is to

reduce/eliminate „Muda‟ (waste).
2
The Road to Lean
How does a company go about eliminating waste ?
• Find the sources of waste.
• Eliminate/reduce those sources of waste.
• Sustain efforts to reduce waste by supporting

a Continuous Improvement program.
3
What is Value?
Value-Adding Activities
Add Actual Necessary, but

Value for do not add
Customers direct value.
(VA) (NNVA)
Account for 45-50%

Account for 1-5% of of all activities in a
all activities in a Value Value Stream
Stream
4
Source: http://www.rutherfordinc.com/costspage3.html
Forms of ‘Muda’ (Waste)
Wastes Associated Costs
• Over-production • Inventory/Storage
• Waiting • Delay, Inventory/Storage
• Transport • Transportation, Labor
• Inappropriate Processing • Equipment, Labor
• Unnecessary Inventory • Inventory/Storage
• Unnecessary Motion • Labor
• Defects • Scrap materials, Labor to
do Rework, Equipment,
Source: Hines, P. and Rich, N. (1997). „The Seven Value
Stream Mapping Tools‟. IJOPR, Vol. 17, No 1, p. 47
5
Overview of Value Stream Mapping
• Value Stream Mapping is the tool that

helps management find the sources of
waste.
• Value Stream Mapping “is a paper and
pencil tool wherein you follow the
product’s production path from
customer to supplier, carefully
drawing a visual representation of
every process (step) in the material
and information flow (networks).”
Source: Rother & Shook, p. 4

6
Aim of Value Stream Mapping
• The objective of „lean‟ is to have a value-adding

flow.
• In order to do so we need a vision of the flow.
• Value Stream Mapping is a tool which enables us

to “see” the flow. Thereby, we can see where the
sources of waste lie and focus attention on those
areas.
7
Steps in Value Stream Mapping
Select a Product Family
Draw the Current State Map
Draw the Future State Map
Implementation N
Stop VSM
Justified?
Y
Develop Work Plan for Implementation
Source: Rother & Shook, p. 9

8
Selecting a Product Family
• A product family is a group of
products that have similar
manufacturing steps or routings.1
Select a Product Family
 This family should be selected

from a group of high volume-high Draw the Current State Map
revenue products using P-Q-R-V Draw the Future State Map
Analysis.
Implementation N
Stop VSM
Justified?
• Other criteria that could be used: Y
market segment, customer group, Work Plan & Implementation
BOM complexity, common

components, high order lead times,
etc.
9
Source:1 Rother & Shook, p. 6
Selecting a Product Family (contd.)
Volume/
Revenue Runners Repeaters Strangers Select a Product Family
High Draw the Current State Map
Earners Select products from Draw the Future State Map
Medium here N
Implementation
Earners
Stop VSM
Justified?
Low Y
Work Plan & Implementation
Earners
10
Selecting a Product Family (contd.)
• A family of products with

similar routings can be
identified using Production Select a Product Family
Flow Analysis, Group

Technology, P-Q-V-R Draw the Current State Map
Analysis, etc. Draw the Future State Map
• Caution: Choose the product Implementation

Justified?
Stop VSM
based on the different part Y
numbers in the family, the

customer demand and the
frequency of demand for the
product. 11
Drawing the Current State Map
The Current State Map tells us what our present
flow looks like (and the waste embedded in it).
Procedure: Select a Product Family
• Start mapping the current flow from the

most downstream operation since it is Draw the Current State Map
closest to the customer demand.

Draw the Future State Map
• Use symbols to show the various
processes (as a whole and not individual Implementation N
Stop VSM
workstations in each process department). Justified?
• Obtain time information for each step in Y
the flow. Work Plan & Implementation
• Show a time-line/cost-line capturing the

total time/cost taken for each step in
the flow.
12
Standard Symbols for VSM
C/T = 45 secs
ASSEMBLY
XYZ Corporation
C/O = 30 mins
3 shifts
I
2% scrap 300 pcs/day
Process Box Outside Sources Data Box Inventory
Mon+ Max. 20 pieces

Wed
FIFO
Transportation Finished Goods First-in-First-Out

Push System
to Customer
Weekly 1
Manual Electronic
Supermarket Schedules Operator
Information Flows
Source: Rother & Shook, Appendix 13

Standard Symbols for VSM (contd.)
Withdrawal Kanban Production Kanban Signal Kanban
Kaizen
Kaizen „Go See‟

Kanban arriving in
Kanban Post Bursts Scheduling
batches
Source: Rother & Shook, Appendix 14

An Example of a Current State Map
PROD. Orders
CONTROL 60days out OE+AFTER MKT
Rod+Forging Purchase
Orders Size adjust CUSTOMERS
Suppliers
2 wks out
Daily
Priorities
Daily ship Daily
Schedule
2X per
month Shop SHIPPING
Orders
staging
To weld-area I
supervisor
2 days
I CUT I WELD#1 I WELD#2 I DEFLASH I PAINT I ASSEMBLY I
Rods 1 1 1 Subcontract 6
20 days 5 days 3 days 3 days 5 days 6 days 4 days
C/T = 15 secs C/T = 10/30 secs C/T = 10/30 secs C/T = 10/30 secs C/T = 195 secs
C/O = 15-60 mins C/O = 15-60 mins C/O = 15-60 mins C/O = 15-60 mins C/O = 10 mins
Uptime=100% Uptime=90% Uptime=80% Uptime=100% Uptime=100%
I M/CING I
Forgings
20 days 4 days
C/T = 30 secs
C/O = 120 mins
Uptime=100%
20 days 5 days 3 days 3 days 5 days 2 days 6 days 4 days
30 secs. 30 secs. 30 secs. 30 secs. 195 secs.

15
Analysis of the Current State Map
Total Throughput Time = 48 days

Value Adding Time = 315 seconds
16
Costing the Wastes in the Value Stream Map
• Equipment Costs – Costs for purchase/lease,

maintenance and installation of the machine/s.
• Quality Costs – Costs for scrap/reworked parts.
• Space Costs – Costs for space allocated for storage
of inventory (RM, WIP and FG), space for parking
and maintenance of material handling equipment,
material handling aisles, etc.
• Labor Costs – Costs for direct and indirect labor.
17
Costing the Wastes in the Value Stream Map (contd.)
• Transportation Costs – These include the costs of

purchasing, operating (power, labor, idle time, etc.)
and maintaining the handling equipment.
• Queuing Costs – These are simply a function of the
throughput time for each part less the processing
time, due to competition for processing resources,
Push Scheduling, etc.
• Inventory/Storage Costs – These are all the costs
associated with inventory control ex. carrying
costs, building expenses, security, obsolescence,
etc.
18
Parameters for Estimation of Equipment Costs
• Number of workcenters.
• Purchase cost per machine.
• Installation cost.
• Depreciation over the life of the machine.
• Maintenance cost.
19
Parameters for Estimation of Quality Costs
• Demand for a product.

• Scrap rate for that product.
• Rework rate for that product.
• Material cost.
• Fabrication cost.
20
Parameters for Estimation of Space Costs
• Rental cost (or building cost) for space.

• Area occupied by equipment.
• Area occupied by material handling equipment.
• Area occupied by aisles.
• Area occupied by inventory (RM, WIP, FG).
• Value of material stored in inventory.
21
Parameters for Estimation of Labor Costs
• Labor hour rate for Direct Labor.

• Labor hour rate for Indirect Labor.
• Number of operators.
• Base salary.
• Overtime rate
• Number of overtime hours worked.
22
Parameters for Estimation of Transportation Costs
• Capital cost.
• Overhead cost rate per piece of equipment.
• Frequency of flow between all pairs of locations.
• Number of parts flowing between all pairs of locations.
• Distance traveled between all pairs of locations.
• Load/Unload time for each order at each machine.
• Number of pieces of equipment ex. forklifts, pallet
jacks, cranes, etc.
• Life of any piece of equipment.
• Average velocity of a move between any pair of
locations.
23
Parameters for Estimation of Queuing Costs
• Processing rate for a particular operation and a

particular part on a particular workcenter.
• Batch size for a particular part on a particular
workcenter.
• Average delay due to queuing at each operation.
• Setup time for a particular operation and a
particular part on a particular workcenter.
• Demand for a particular part.
• In-process inventory holding (or carrying) costs.
24
Parameters for Estimation of Inventory Costs
• Volume of product in inventory.

• Value per unit (or batch) of product in inventory.
• Time for which a unit (or batch) of product is held
in inventory.
• Inventory holding cost of product in inventory.
25
Reading the Current State Map
• How does the Current State Map show us the

sources of waste ?
• Every step in the Current State Map should be
questioned. Use the 5W and 1H (Why, Where,
What, Whom, Which, How) method to analyze the
causes of each problem (else use tools of Total
Quality Management such as the Fishbone
Diagram or the Cause-Effect-Cause Analysis
method of TOC).
26
Reading the Current State Map (contd.)
• What is the takt time for the plant? Which areas

are producing slower than this takt time? How do
we increase their speed?
• Why is the factory producing to a forecast and not
actual demand? Is the demand for every product
stable? Or a product mix segmentation based on
demand characteristics is necessary?
• Are the processes balanced in terms of speed? If
not, what can be done to balance them?
27
• Why is batching necessary? Can we reduce the
setup times to facilitate smaller batches?
• Why is the average machine uptime low? Should
we initiate TPM programs to increase it?
• What are the reasons for scrap? Which processes
cause scrap? What are the root causes for why the
processes cause scrap? Were SPC, DOE, etc.
studies conducted to identify the root causes for
out-of-control processes?28
• Why is there inventory between pairs of

consecutive operations? Why do the operations
produce and push product downstream? Why not
pull product from buffers located strategically at
these processes only when finished products are
shipped to customers?
• Can operations be eliminated to reduce the
throughput time? Can operations be combined?
Can operations be simplified? Can operation
sequences be modified to shorten throughput
times?
29
• Where can we use a supermarket? Which products
should we inventory in it? Where not make
Shipping the supermarket and schedule upstream
processes that feed into it using Drum-Buffer-
Rope? Or should a restaurant model for inventory
control in Shipping be adopted?
• How many operators are doing a job? Can they be
trained to do more than one operation? What are
the union issues that go with it?
• Why are the suppliers supplying in large lot sizes?
Can their supply quantities be made smaller with
more frequent deliveries based on Pull
scheduling? 30
• What time buckets should be used to level the

production? Can we produce all products every
hour (?) in every shift (?) on every day?
• What is the product diversity? Should all of the
products be treated the same? How do we overlap
multiple value stream maps that use the same
manufacturing processes, perhaps even
sequences?
• How late in the process does the product
customization occur?
31
What to do after Reading the Current State Map?
• The answers to the earlier questions will guide the

development of the Future State Map.
• The focus should be on first eliminating those
sources of waste that have the highest benefit/cost
ratio and yield the maximum sales revenues.
• While answering the questions to develop the
Future State Map, a strategic project plan for
Continuous Improvement i.e. perpetual
improvement of productivity and ongoing
achievement of “delay-free flow” will emerge.
32
Best Practices for Eliminating Wastes
Best Practices
• Make-to-Order.
Wastes • Optimize Layout.
• Over-production • Setup Reduction.
• Waiting • Total Productive Maintenance.
• Multi-function Workers.
• Transport
• Pull Scheduling/Production
• Inappropriate Processing
Smoothing/FCS.
• Unnecessary Inventory • Line Balancing to Takt Times.
• Unnecessary Motion • One-Piece Flow.
• Defects • Supplier Control for JIT.
• Time Study/Motion Study.
• Quality Control/DOE.
33
• Design for Manufacture.
Drawing the Future State Map
• The Future State Map is the improved flow
diagram for material flow and a „How it
should be‟ map for the (desired
configuration of the) production system . Select a Product Family
• This map should be the basis for the Draw the Current State Map
implementation road map to identify and Draw the Future State Map
prioritize the improvement programs N
funded by company management.

Implementation
Stop VSM
Justified?
• The management should support and

sustain a spirit of Continuous Improvement

by making new Future State Maps to
“improve an already improved” 34state of the
production system.
An Example of a Future State Map
PROD. Orders
CONTROL 2 weeks out OE+AFTER MKT
Rod+Forging Purchase CUSTOMERS
Suppliers Orders
Daily
Weekly OXOX
CUT
WELD + DEFLASH Max. 1200 pieces PAINT Empty Daily ASSEMBLY SHIPPING
C/T = 15 secs FIFO FIFO 5 staging

Subcontract
C/O = 5 mins
7 days I
Takt = 45 secs
C/T = 39 secs 1 day C/O = 0 mins
M/CING C/O = 5 mins
C/T = 30 secs
C/O = 30 mins
7 days Same day
1 day 1 days 1 days 1 days
30 secs 90 secs 195 secs
35
Comparison of the Current and Future State Maps
• Total Throughput Time = 11 days

• Value Adding Time = 315 seconds
% Reduction in Throughput Time = 336 %
36
Decision-making with the Current State Map
• We have a map of the potential improvements that can

be made.
• We should implement these changes in order to realize
the benefits indicated in the Future State Map.
• But have we assessed the costs for implementing these
changes? And ………. are we justified in spending
thousands of dollars in worker training, down-time, and
“breaking-in” of new processes?
37
How much to improve a Current State Map?
• Plot the potential benefits
versus the cost to implement
each of the changes identified
to realize the Future State Potential Benefits
Map. Stop VSM
• The curve flattens at some

point indicating decreasing
margin of returns.
• At this point we need to stop

the current VSM study … Cost to Implement
and start working on some
other product (or portion) of
the production system. 38
Planning for Implementation
• The Future State Map is a blueprint of the plans for

implementation.
• A Value Stream Manager (IE) should be in charge of

the implementation and should report to the CEO or
President ( Download article from www.lean.org).
• Representatives from core departments in the

company, line operators and managers should be
involved in the implementation process.
39
Planning for Implementation (contd.)
• Regular reviews should
be conducted by the
Value Stream Manager
to ensure smooth
progress of the project.
• Complete a project to
the fullest expectations
set initially before
moving to the next
project. 40
Starting the Implementation
• Focus on the pacemaker process i.e. the most
downstream process (the “Drum” in TOC speak).
• Create a detailed implementation plan outlining the
following details:
– Tangible goals to be achieved, ex. 1 day of WIP at the
bottleneck machine.
– Process improvement activities to achieve this goal.
– Owner (Person/Team responsible).
– Completion Date.
– Performance measures to evaluate the impact of each
suggested improvement to achieve the Future State
Map.
41
Starting the Implementation (contd.)
• OR, using the Current State Map,
brainstorm to identify a pilot project that
seeks to demonstrate the impact of each of
the critical “tools of Lean Manufacturing”
ex. Cells, Quality, Setup Reduction, 5S,
Process Standardization, Andon, Poka-
Yoke. Execute these projects in parallel and
develop a report that describes the how-to’s
for each tools and also shows how each of
them adds value by improving Delivery,
Cost and Quality.
42
Sustaining the Continuous Improvement Program
• After completing the first Value Stream Mapping

project, a process of Continuous Improvement
(Kaizen) should become the norm. Repeat and
reuse the Value Stream Mapping process at all
levels, other processes, departments, etc.
throughout the company.
• The current Future State Map becomes the new
Current State Map from which a new Future State
Map is developed to initiate the next cycle of
improvements in the production system.
43
Applying VSM throughout the (Lean) Enterprise?
• Value Stream Mapping, although mainly used

in manufacturing can be appplied to logistics,
business and office processes (ex. generation
of RFQs), suppliers in the entire supply chain,
office design, etc.
• However, as the boundaries of the production

system are extended, it could become more
and more difficult to capture accurate times
and costs in the maps, especially in logistics.
44
Value Stream Mapping from an
IE Viewpoint: Ideas for
Enhancement and Extension
45
Preliminary Comments
• “Learning to See” suggests adding extra
elements to the data box as and when
applicable
• Add links to VSM of another product in
case of sharing resources
• Capacity constraints, Yield and other
calculations can be easily done with the
information provided on the VSM.
46
IE Techniques to enhance VSM
Point of Comparison: Single Part vs. Part Family
VSM IE Techniques
Representative part from a MultiProduct Process Chart
family is chosen based on could represent the entire
routings of similar parts family
47
Product Family
Current State Drawing
Future State Drawing
Plan and Implementation
Nonidentical
routings, but
one can be
merged into the Identical routings, but non
other identical operation times
48
Point of Comparison: Material Flow
VSM IE Techniques
Flow shown on a straight Material Flow Diagram
line •Existing Facility on a 2D Plane
•Flow Quantities
•Travel Distances
FromTo Chart
•Flow Quantities
•Total Picture of Family
49
Point of Comparison: Relationships between Departments
VSM IE Techniques
Process boxes representative of •Relationship Charts
department/workstation •FromTo charts
No spatial/activity relationships •Multiproduct Flow Diagrams
represented
50
Point of Comparison: Product as an Assembly of Components
VSM IE Techniques
Follows path of main Assembly Precedence Diagram
product and assumes 1. Considers all subassemblies
availability of Operations Process Chart
components at all 1. Shows operation sequences performed on
assembly points – no each part during fabrication of final product,
information on VSM for including their precedence relationships
each component 2. Includes all operations, movements,
inspections, delays, decisions and storage
activities in material flows.
51
Point of Comparison: Takt Time vs. Line Balancing
VSM IE Techniques
Tries to match cycle time to takt time Assembly Line Balancing algorithms
that map demand onto station cycle
times
Finite Capacity Scheduling
52
Point of Comparison: Scheduling
VSM IE Techniques
•GoSee scheduling •Job sequencing rules
•FIFO sequencing rule SPT (Shortest Processing Time), EDD (Earliest
Due Date), MWKR (Most Work Remaining), CR
•Single timeline (Critical Ratio), SLK (Minimum Slack), LIFO (Last In
First Out)
•Gantt Chart to integrate multiple timelines
53
Point of Comparison: Material Control
VSM IE Techniques
PUSH Icons, PULL loops, FIFO and MRPII for demand forecasting
Flow Icons
Signals – Kanban Post and Card Finite Capacity Scheduling for shop
loading
EOQ models for transfer batch
selection
Master Production Scheduling models
Kanban Lot sizing and Supermarket
Capacity analyses
54
Point of Comparison: Material Handling System
VSM IE Techniques
No Consideration – just PUSH / PULL Dynamic Routing Algorithms
icons w/ inventory levels recorded in
Triangles
Transfer Batch Size = ? Lineofsight visual layout
No scheduling of material handlers Shopfloor control methods
55
Point of Comparison: Computerized vs. Manual methods
VSM IE Techniques
Tedious manual method Use of computers with softwares like
Excel, Visio and Microgafx Flowcharter
Paper size restricts quantity of No restrictions on the detail of information
information captured – show/hide the necessary information
depending on analysis
No provision for zooming (or added Spreadsheets promote arithmetic
information) on a particular process calculations
box
Data recorded on VSM does not Simulation allows study of dynamic Value
encourage arithmetic calculations Streams
56
Point of Comparison: Resource Sharing
VSM IE Techniques
Does not consider “Process Boxes” as Value Network Mapping (VNM)
resources shared by other streams
Computer models for capacity
constrained shop loading and
scheduling
57
Point of Comparison: Macro vs. Micro Level
VSM IE Techniques
Modeling tool at Production Control Modeling Tools at Manufacturing
level Engineering level
•Overall picture of the entire •Machine level analyses
organization •Individual departments analyzed in
•Manager’s view of overall detail
performance •Standards and procedures from an
operators point of view
58
Point of Comparison: Graphic Communication Tool
VSM IE Techniques
Managers eyes glaze over at pretty Process Flow Chart uses as few as 6
pictures of VSM symbols with clear meanings
Charts reviewed for compliance with More technical information than VSM
drawing standards instead of technical that can be computer modeled using
content and shopfloor status Visio, Simul8 or Arena
59
Point of Comparison: Stochastic Behavior of Processes
VSM IE Techniques
Deterministic cycle times Considers stochasticity of process
times
Variaions in operation times require Simulation – easy changes in values
that the value streams must be gives quick results for “whatif”
mapped repeatedly scenarios
60
VSM + IE Techniques
Conclusion:
VSM is a good starting point to map any process at
a Macro level. But, you need additional Industrial
Engineering techniques for complete analysis at the
Macro and Micro levels.
61
Foundation for Value Network
Mapping (VNM)
• Developers of VSM state that “many value streams have
multiple flows that merge. Draw such flows over one
another. But do not try to draw every branch if there are
too many. Choose the key components first, and get the
others later if you need to” (Rother & Shook, 1999, p. 19).
• High variety facilities have multiple product flow routings
which are usually dissimilar and use capacity at shared
resource locations.
62
Foundation for Value Network
Mapping (VNM) (contd.)
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11
COMPONENTS
SUB ASSEMBLIES SA 1 SA 2 SA 3 SA 4 SA 5
VNM APPLIES VERY WELL AT
THIS LEVEL
ASSEMBLY 1
ASSEMBLY 2
ASSEMBLIES
VSM APPLIES VERY WELL AT
THIS LEVEL 63
Goals of Value Network
Mapping (VNM)
• To map the complete network of flows in a complex
Value Stream.
• To computerize basic Industrial Engineering (IE) tools for
material flow mapping, using a software package for
material flow analysis PFAST (Production Flow Analysis
and Simplification Toolkit).
• To integrate the material flow mapping power of PFAST
with the Finite Capacity Scheduling (FCS) power of
PREACTOR.
64
Assembly utilized for VNM study:
ED1M00932
65
VNM: Methodology for
Enhancement of VSM
VSM VNM
Form a Product Family: Tool used Form a Product Family: Tools used
1. ProductProcess Matrix Clustering 1. ProductProcess Matrix Clustering
(Downstream processes close to the 2. ProductComponent Matrix Clustering
customer end of the value sream are used 3. PQRS Analysis
to identify a product family)
Visualize the Flow: Tools used
1. B.O.M for the product
2. Operations Process Chart
3. MultiProduct Process Chart (MPPC)
4. Flow Diagram
Collect Data: Tool used
1. Enhanced Flow Process Chart
Merge Similar Routings: Tool used
1. Modified MultiProduct Process Chart
(MMPPC)
Draw the Current State Map:Tool used Draw the Current State Map: Tools used
1. Collect data and draw the map using a 1. MMPPC
pencil 2. Enhanced FPC
Develop a Future State Map
Develop an Action Plan
66
Implement the Action Plan
VNM: Operations Process Chart
for ED1M00932
P99SS1069 P99SS1145 P99SS10643 P99SS10652 P99SS1062 P99SS0127 P99SS1067 P97SS0229 P97SS0211

P99SS1146 P99SS10642 P99SS10653 P99SS1063 P99SS0126 P99SS1066 P99SS1068 P97SS0228 P97SS0210
LASER LASER LASER LASER LASER SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR
MAN TS TS TS

VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP HAEG
GRIND GRIND GRIND GRIND
SM SM LM LC LC MAN

KNCP KNCP KNCP KNCP KNCP KNCP KNCP KNCP KNCP
BRAKE BRAKE BRAKE BRAKE BRAKE GRIND
GANG TUM
NOTCH SHEAR
DRILL GRIND
TS TS TS TS TS TS TS TS

GRIND GRIND GRIND GRIND GRIND GRIND GRIND GRIND
LM LC LC LC LC GANG GANG

BRAKE BRAKE BRAKE BRAKE BRAKE DRILL DRILL
GANG GANG GANG SC SC

DRILL DRILL DRILL BRAKE BRAKE
BURTN BURTN BURTN BURTN BURTN BURTN

MIG MIG
WELD WELD
ROUGH
GRIND
MIG MIG
WELD WELD
ROUGH ROUGH
GRIND GRIND
PAINT PAINT PAINT PAINT PAINT PAINT
ASSMY
INSPEC
67
VNM: MultiProduct Process
Chart (MPPC) for ED1M00932
68
VNM: Flow Diagram
for ED1M00932
69
VNM: Enhanced Flow Process
Chart (FPC) for ED1M00932
70
VNM: Modified MultiProduct Process
Chart (MMPPC) for ED1M00932
71
VNM using PFAST and Preactor/FCS
for ED1M00932
HAEGAR ASSLY
1 X/Y
BURTON X/Y
3
X/Y
TU GRIND 1 3 X/Y X/Y
Value Network Map TS GRIND
GSW S CNC BR
2 X/Y
X/Y 2 3
X/Y
1 1 2 6
5 X/Y
X/Y
X/Y X/Y 1 L CNC BR

X/Y SHEAR 1
L CNC BR
X/Y
1 X/Y
PAINT
VNM
X/Y
SHEAR 1 1 1 L MECH BR
X/Y
X/Y X/Y 1 X/Y

1 GSW
VIPROS / KING
11 M. GRIND L CNC BR
X/Y
X/Y 3 X/Y 2
1 X/Y
X/Y X = Travel distance
1 3 1 4 Y = MHE used
LASER X/Y
2 X/Y 1 X/Y WELD R GRIND
1 3 X/Y TS GRIND L MECH BR
X/Y 1 1 X/Y
X/Y
M. GRIND
2
X/Y X/Y
X/Y
1 1 S MECH BR 1
X/Y
X/Y
NOTCHER 1
1
Gantt
Chart
72
VNM Symbols for
Enhancement of VSM
• VSM is a mapping tool that maps not only material flows
but also information flows that signal and control the
material flows.
• This visual representation helps to identify the value
adding steps in a value stream and eliminate the non
value adding steps, or waste (muda) in product flow
paths.
73
VSM + Layout = Flow Diagram
Process Box
I ?
300 pcs/day
C/T = 45 secs
Inventory
C/O = 30 mins
3 shifts
2% scrap
Data Box
Process Box
C/T = 45 secs
C/O = 30 mins
3 shifts
2% scrap
Data Box
Process Box I
300 pcs/day
Inventory
?
C/T = 45 secs
C/O = 30 mins
3 shifts
2% scrap
Data Box
74
VNM Symbols for
Enhancement of VSM (contd.)
This icon indicates the absence of a clear lineof
sight between consecutive process locations.
Hence, placing this icon between two consecutive
process boxes will communicate the impact of
LineofSight layout on the material and information flows.
_____ ft This icon indicates the distance (in feet) between
consecutive processes and will be placed between
Material Handling each pair of process boxes.
Distance
75
VNM Symbols for
These icons are traditional IE icons used to
indicate the Quantity and Quality Inspection, if
used, done at each process box. Also, the
resources i.e. time and # of operators required will
Quantity and Quality be indicated on them.
Inspection
This symbol indicates the choice of material
handling equipment – forklift, conveyor, push cart,
hand cart, manual, etc. and will be placed
Material Handling between every pair of process boxes.
Equipment
76
VNM Symbols for
This symbol indicates the types of communication
systems in use on the shopfloor:
M – for material handling between interacting
processes/work centers.
S – for support functions that support the
Communication operators at each workcenter ex. Production
System Control and Maintenance.
Q t , N This symbol indicates the transfer batch size (Q t )
and the transfer frequency (N) i.e. total number of
transfer batches of a particular part type being
Transfer Batch moved between two consecutive process
Size and its
locations.
Frequency
77
VNM Symbols for
This icon indicates the sequencing rule used to run
SEQ orders at each process box, such as:
FIFO (First In First Out); SPT (Shortest Processing
Sequencing Rule Time); EDD (Earliest Due Date); MWKR (Most
Work Remaining); CR (Critical Ratio); SLK
(Minimum Slack); LIFO (Last In First Out)
This icon indicates the percentage of available
capacity at each process that will be allocated to a
particular product family.
78
VNM Symbols for
Material Handling
_____ ft
Distance
Material Handling
Distance
Transfer Batch Size
Q t , N and its Frequency
Example of a material handling data box between
any two process boxes.
79
Pros of VNM
• VNM analyses all the value streams of a product family
with dissimilar routings.
• VNM analyses all flows for a product family that merge
at assembly points or at shared locations.
• VNM enables analysis of processspecific parameters (like
available time at a process) with respect to part specific
parameters like cycle times for all parts that share that
process.
• VNM integrates various visual tools of IE with a VSM
to enable a comprehensive analysis to eliminate wastes.
80
Pros of VNM (contd.)
• VNM utilizes Finite Capacity Scheduling to estimate and
reduce the production lead time for a product family.
• VNM has an additional set of icons suited for highvariety
facilities.
• VSM has no mention of process loops. VNM addresses
this issue with the inclusion of a symbol to map the loop.
81
Cons of VNM
• VSM recommends drawing the map by hand on a 11’’ x
17’’ ledger size paper. VNM may require many more
pages.
• VSM does not mention for duplication of process boxes as
required by the routing of the parts. VNM fails when a
process is visited by the chosen product family multiple
times and at intervals of considerable sequence of
operations.
• VNM does not give a future state layout perspective.
82
Cons of VNM (contd.)
• VNM analyses the flow of the product family through
shared locations. Hence, in part, it is a merged
operations process chart for the product family.
• VNM requires detailed collection of data with domain
knowledge to prove beneficial. For example, a
subsequence of operations in the route of the product
family could be represented by a single process box. This
would reduce the number of process boxes on the map
making it easy to read and analyze.
• VNM is timeconsuming and requires time no less then
would be required for a fullfledged project undertaking.
83
Value Stream Mapping from an Industrial Engineering Viewpoint
Sadono C. Djumin, Yuri Wibowo and Shahrukh A. Irani1
Columbus Ohio 43210
Objectives
1. To give an overview of Lean Thinking as being a combination of Lean Supply

Chain, Lean Manufacturing and Lean Distribution.
2. To explain the basic concepts of the Value Stream Mapping (VSM) tool for
documenting and visualizing the complete order realization process used by a
company to satisfy a typical customer.
3. To analyze the advantages and disadvantages of VSM.
4. To explain and enhance VSM by incorporation of complementary Industrial
Engineering (IE) concepts and methods.
5. To compare the icons of VSM and those of various Industrial Engineering (IE)
tools, such as: Flow Process Charting (FPC), Business & Office Process Charting
(BOPC) and Process Analysis and Improvement (PA&I)
6. To develop a single set of icons for universal process decomposition and value
assessment in service and manufacturing industries.
Introduction
Constraints placed on the Japanese car manufacturing industry after the World War II led
Taiichi Ohno of Toyota Motor Corporation to pioneer a new type of production system –
Toyota Production System (TPS) – that was ―so different, and so much better than mass
production‖ as to guarantee a new type of manufacturing system
(http://www.lean.org/Lean/Community/Resources/thinkers2.cfm). Jim Womack and Dan
Jones enhanced the original concepts of TPS into the framework of Lean Thinking that
was first introduced in the US in the Fall of 1996. It extends continuous improvement
efforts to reduce the costs of serving the customer/s beyond the physical boundaries of a
manufacturing facility, by including the suppliers, distributors and production system that
support the manufacturing function.
Lean enterprises organize their activities with less effort, space, inventory, defects, and
product development time in comparison with traditional mass production systems. These
improvements and cost reductions are achieved by eliminating the muda (wastes)
associated with all the activities. Wastes are defined as ―all activities that consume
resources (add costs to the product) but contribute zero value to the customer‖.
1
Contact Information: irani.4@osu.edu (email), (614) 688-4685 (phone), (614) 292-7852 (fax)
84
Five Steps for Implementation of Lean Thinking2
There are five steps for implementing Lean Thinking in an enterprise:
1. Define Value from the perspective of the Customer

Precisely define value in terms of specific products with specific capabilities
offered, at specific prices through a dialogue with a specific customer/s, and at a
specific time (Womack & Jones, p.16). In other words, lean enterprise
understands and focuses precisely on what the customer/s want to buy.
2. Identify the Value Streams

Womack and Jones define the value stream as ―the set of all the specific actions
required to bring a specific product through the three critical management tasks of
any business: …problem solving, …information management, …physical
transformation‖ (Moore & Scheinkopf, p.17). Once the value stream has been
identified, create a map of the Current State and the Future State of the value
streams. The Value Stream Mapping (VSM) tool allows a visual representation of
value streams to help identify and categorize the wastes in the Current State. This
map is used to plan actions to eliminate the wastes and obtain the Future State.
3. Flow
This step identifies and eliminates any muda-causing structures or activities in the
product flow that increase the manufacturing lead-time. It encourages companies
to look at the physical distance that separates all pairs of functional departments
that are utilized during the order realization process to fulfill customer demand.
The most dramatic reductions in total lead time will be achieved by a product-
focused organization (focused factory).
4. Pull
After the wastes in the system are reduced, a lean enterprise would use a strategy
of pulling inventory through the system based on actual customer product
demand, in contrast to the traditional approach of pushing inventory through the
system. In a pull environment, the tendency of overproduction, which leads to
increased inventory levels, can be controlled. In addition, letting the customers
pull products as needed will eliminate the need for (unreliable) sales forecasts.
5. Perfection
This concept reminds the lean enterprise to continuously improve the production
system, and move its performance towards perfection. The entire process of lean
implementation must be a never-ending process since, in practice, the process of
reducing effort, time, space, mistakes, and costs can never be perfect. For
example, for further lean transformations in a company that wishes to offer a
better product as per customer desires, it is necessary to go back to Step 1 in this
5-step process.
2
http://www.lean.org/Lean/Community/Registered/Steps.cfm?
85
Value Stream Mapping (VSM)
Unlike traditional process mapping tools, VSM is a mapping tool that maps not only
material flows but also information flows that signal and control the material flows. This
visual representation facilitates the process of lean implementation by helping to identify
the value-adding steps in a value stream and eliminating the non-value adding steps, or
wastes (muda).
Production
Control
SUPPLIER MANUFACTURER DISTRIBUTOR CUSTOMER
Note:
Information Flow
Material Flow
Using a VSM process requires development of maps: a Current State Map and a Future
State Map. In the Current State Map, one would normally start by mapping a large-
quantity and high-revenue product family. The material flow will then be mapped using
appropriate icons in the rich VSM icon template. The product will be tracked from the
final operation in its routing to the raw material storage. Relevant data for each operation,
such as the current schedule (push, pull, order dispatching rules in effect at any process
ex. FIFO) and the amount of inventory in queue, will be recorded. The information flow
is also incorporated to provide demand information, which is an essential parameter for
determining the ―pacemaker‖ process in the production system. After both material and
information flows have been mapped, a time-line is displayed at the bottom of the map
showing the processing time for each operation and the transfer delays between
operations.
The time-line is used to identify the value-adding steps, as well as wastes, in the current
system. The comparison between the processing times and the takt time (calculated as
Available Capacity/Customer Demand) is a preliminary measure of the value and waste.
This takt time is mostly used as an ideal time for each operation to achieve (ideally, the
cycle time for each operation should be the takt time).
Based on the analysis of the Current State Map, one then develops a Future State Map by
improving the value-adding steps and eliminating the non-value adding steps (waste).
86
According to Rother & Shook, there are seven guidelines, adapted and modified based on
the concepts of Lean Thinking, that can be followed when generating the Future State
Map, or lean value stream (Rother & Shook, p.44-54):
1) Produce to takt time

2) Develop continuous flow
3) Use supermarkets to control production where continuous flow does not extend
upstream
4) Schedule based on the pacemaker operation
5) Produce different products at a uniform rate (Level the production mix)
6) Level the production load on the pacemaker process (Level the production
volume)
7) Develop the capability to make ―every part every (EPE) <time period>‖
Advantages Of Value Stream Mapping (VSM):
 Relates the manufacturing process to supply chains, distribution channels and

information flows.
 Integrates material and information flows.
 Links Production Control and Scheduling (PCS) functions such as Production

Planning and Demand Forecasting to Production Scheduling and Shopfloor
Control using operating parameters for the manufacturing system ex. takt time
(this is the production rate at which each processing stage in the manufacturing
system should operate).
 Helps to unify several IE techniques for flow analysis, such as Production Flow
Analysis (PFA), Business Process Reengineering (BPR), and Process Analysis
and Improvement (PA&I) that, to date, have been taught and implemented in
isolation.
 Provides important descriptive information for the Operation and Storage process
elements that, to date has not been captured in standard Flow Process Charts used
by IE’s.
 Forms the basis for implementation of Lean Manufacturing by designing the

production system based on the complete dock-to-dock flow for a product family.
 Provides a company with a ―blueprint‖ for strategic planning to deploy the

principles of Lean Thinking for their transformation into a Lean Enterprise.
Disadvantages of Value Stream Mapping (VSM):
 Fails to handle multiple products that do not have identical maps.
87
 Fails to relate Transportation and Queuing delays, and changes in transfer batch
sizes due to poor plant layout and/or material handling, to operating parameters
(ex. machine cycle times) and measures of performance of the manufacturing
system (ex. takt time)3.
 Lacks any worthwhile economic measure for ―value‖ (ex. profit, throughput,
operating costs, inventory expenses) which makes it similar to the Flow Process
Charting technique used by IE’s.
 Lacks the spatial structure of the facility layout layout, and how that impacts
inter-operation material handling delays, the sequence in which batches enter
machine queues, container sizes, trip frequencies between operations, etc.
 Tends to bias a factory designer to consider only continuous flow, assembly line
layouts, kanban-based Pull scheduling, etc. that are suitable mainly for HIGH
volume and LOW variety manufacturing systems4.
 Fails to consider the allocations and utilization of an important resource – factory

floorspace – for WIP storage, production support, material handling aisles, etc.
 Fails to show the impact on WIP, order throughput and operating expenses of in-
efficient material flows in the facility ex. backtracking, criss-cross flows, non-
sequential flow, large inter-operation travel distances, etc.
 Fails to handle complex BOM’s that translate into branched and multi-level
Operation Process Charts and Flow Diagrams for the products.
 Fails to factor queuing delays, multi-order sequencing rules, capacity constraints,

etc. into a map5.
 Lacks the capability, due to the manual process of creation, for rapid development
and evaluation of multiple ―what if‖ analyses required to prioritize different
alternatives for improving a Current State Map when time and/or budget
constraints exist.
3
Reasons for this could be (a) because the impact of a poor facility layout on order throughput, product
quality and operating costs is assumed to be trivial or (b) superimposing all the information contained in a
map onto a CAD drawing of the facility layout would reduce the readability of the map.
4
These are design and operational strategies that are suited mainly for low-variety high-volume (LVHV)
facilities, such as automotive OEM’s and their Tier 1 or Tier 2 suppliers, and not high-variety low-volume
(HVLV) facilities such as jobshops and Make-To-Order companies.
5
This could be easily and effectively done if computer simulation were used to develop and model the
performance of the system represented by any map.
88
VSM: The Traditional Approach VSM: An Enhanced IE Approach
Form A Product Family Form a Product Family using:

1. Product Family Matrix Clustering.
2. Volume vs. Revenue vs. Routing Analysis.
3. Multi-Product Process Chart (MPPC).
Develop a Current State Map 1. Obtain the CAD drawing of the current facility
layout.
2. Map the material flow for the product family
onto the layout to generate a Flow Diagram using
the enhanced set of VSM icons.
3. Enhance the Flow Diagram into a Flow Process
Chart by recording different types of
wastes/delays in the process flow.
4. Expand the Flow Process Chart by incorporating
all elements of standard VSM analysis.
Develop a Future State Map 1. Use VSM and PA&I thought processes for analysis
of the Current State Map to identify wastes.
2. Develop a Future State Map by eliminating
different types of wastes in the Current State Map.
3. Develop a layout for the product family based on
the Future State Map
For each additional product family, repeat the above

sequence of steps to generate a Future State Map and
desired facility layout to produce that family.
Organize the different Flow Diagrams into a Layered

Flow Diagram such that consecutive pairs of layers
correspond to highly similar product families.
Generate a single facility layout suitable for all product

families (if possible).
Develop the Action Plan

89
Proposal: An Integrated Set of Icons for Universal Process Mapping
In order to support universal process mapping, a set of icons that is rich in functionality
and flexible in application must be developed. The icons contained in each of several IE
tools – FPC, BOPC, PA&I – that are similar to VSM are tabulated in Appendices A, B,
C, respectively. This study is based on the observation that, while the icons available in
the IE tools are similar to those used for VSM, still the VSM icons capture a lot of
process flow aspects that the IE tools ignored! Appendix D presents a table that compares
the icons in various IE tools with those used for VSM.
The following table presents a potential integrated set of icons for universal process
mapping by combining the capabilities of the different tools:
Integrated Icons Definition

 Occurs when an object (material, semi-finished, or
finished product) is intentionally changed in any of
its physical or chemical characteristics; is
assembled or disassembled from another object; or
is arranged for another operation, transportation,
inspection, or storage.
OPERATION  Occurs when information is given or received;

when planning or calculating takes place. An
operation symbol is also used to represent a person
doing work.
QUANTITY (VOLUME) INSPECTION
Occurs when a product is examined for identification or is

verified for validation of quantity or amount. Measurement
of amounts of materials, parts, or products for comparison
with the specified amounts to judge whether a discrepancy
exists.
QUALITY INSPECTION
Occurs when a product is examined for identification or is

verified for quality of any of its characteristics. Testing
INSPECTION and visual inspection of materials, parts, or products for
comparison with quality standards to judge whether
defective (substandard) products are being produced.
This icon represents the material movement or transfer

from one process to the next (―push‖). Push means that a
process keeps producing regardless of the actual needs of
PUSH arrow the downstream process.
90
TRANSPORTATION This icon is used when the product produced is ―pulled‖ in
a certain amount or quantity from the supplying process to
the supplied process.
PULL arrow
This icon is referred to as CONWIP. It is used in the
situation where the supplying process only produces when
the buffer in front of a bottleneck process (or pacemaker),
CONWIP arrow that holds work-in-progress (WIP) inventory, allows a
space for new inventory to be added. If the WIP buffer is
full, the supplying process must stop producing until the
next (supplied to) process has used up some of the existing
inventory. This will prevent the supplying process from
overproducing.
This icon represents the planned accumulation of
I inventory at the starting and ending points of the entire
product flow that represent the storage of raw material and
finished goods inventories, respectively.
STORAGE Raw Material and
Finished Goods
This icon represents ―safety stock‖ that protects the system
S against sudden fluctuations in customer demands. It is
intended as a temporary, not a permanent storage of stock;
hence, there should be a management policy on when to
Safety Stock use it.
This icon represents the unscheduled accumulation of
partially finished parts or products. The accumulation is
called ―unscheduled‖ when the parts do not have a definite
schedule when to be produced next. While mapping, one
WIP accumulation needs to give a rough estimate on the amount of
DELAY accumulation of this type of WIP.
When mapping the flow of people, this will represent the
delays experienced by the operator while processing the
product ex. the time wasted while waiting for material to
arrive.
Operator Delay
INFORMATION This is the icon generally used to represent flow of
FLOW information.
This icon represents electronic flow of information via

electronic data interchange ex. telephone, fax, e-mails, etc.
91
APPENDIX A: FLOW PROCESS CHARTING (FPC) ICONS6
Basic Meaning of FPC Icons Color

Steps Identification7
OPERATION Forming, Machining,
Treating, etc.
 Occurs when the physical or chemical characteristics of an object
(material, semi-finished, or finished product) are intentionally changed; GREEN
or, an object is assembled or disassembled from another object; or an
object is arranged for another operation, transportation, inspection, or
Operation
Subassembly,
storage. Assembly, or
 Occurs when information is given or received or when planning or Disassembly.
calculations take place.
 Represents the period of time when a person is doing work.
RED
Transportation (or
TRANSPORTATION material handling )
activities
Occurs when an object is moved from one place to another, except when such
movements are a part of the operation or are performed by the operator at the ORANGE
Transportation
workstation during an operation or an inspection.

YELLOW
Comment: The direction of the arrow does not imply the direction of the
actual transportation.
6
Source: Niebel & Freivalds, p. 32
7
The recommended colors are adapted from the International Materials Management Society’s Standard
Color Codes for use in layout planning and materials handling analyses. These colors are used to classify
various areas in the plant. The colors of the different activity areas are particularly useful when attempting
to consolidate similar functional activities within a plant, e.g. centralized support functions or centralized
storage areas and to identify the extent of floorspace dedicated to non-value adding activities.
92
Storage activities
STORAGE ORANGE
 Occurs when an object is kept and protected against unauthorized
YELLOW
removal.
 Occurs when materials, parts, or products are accumulated as per a
prior plan.
Retention
Set down or hold

activities
DELAY
ORANGE
 Occurs to an object when immediate performance of the next planned
action is not immediately permitted.
YELLOW
 Occurs when materials, parts, or products are accumulated without a
prior plan.
Inspect, test, check

activities
Inspection
VOLUME INSPECTION
BLUE
Occurs when a product is examined for identification purposes or for
validation of quantity or amount against a pre-specified level to assess whether
a discrepancy exists.
93
QUALITY INSPECTION
Occurs when a product is examined for identification or verification of an of

its quality characteristics against pre-established quality standards to judge
whether defective (substandard) products are being produced.
94
APPENDIX B: BUSINESS AND OFFICE PROCESS
CHARTING (BOPC) ICONS8
BOPC Icons Meaning

Used when one performs some function such as matching
or reviewing or filling an order, data input to a computer,
etc.
OPERATION
Used when one generates a form or a document. If more
than one copy of the form is used, another page is shown
behind the first page for each copy.
FORM
Used when one files documents. A ―T‖ could be placed
inside the triangle to indicate a temporary file or a follow-
up file and a ―P‖ could be placed inside for a permanent
FILE file or completed file.
Used when one physically moves objects other than
paperwork ex. material, furniture, document carts, etc.
TRANSPORTATION
Used when one represents a Yes/No, Go/No Go decision
at any point in the process flow where the direction of
flow might change depending on the situation or system
DECISION status.
Used when one requires management approval to execute
a process step.
APPROVAL
Used to show flow of information.
PAPERWORK FLOW
Used to show flow of information by telephone or
computer.
TELEPHONE
Used to show computer processing.
PROCESSING
Indicates delay in a process, such as waiting for approval.
DELAY
8
Source: Meyers & Stephens, p. 332.
95
APPENDIX C: VALUE STREAM MAPPING (VSM) ICONS9
Material Icons Meaning

This icon represents:
 The supplier (placed in the upper right-hand portion of the map) which is
the starting point of material flow.
 The customer/distributor (placed in the upper right-hand portion of the
graph) which is the ending point of material flow.
FACTORY
This icon indicates a process, operation, machine or department, through which
material flows. Typically, to avoid unwieldy mapping of every single processing
step, the process box is generally used to indicate one department inside which
the material flow is continuous along a fixed path.
MANUFACTURING In the case of an assembly process with several connected and sequential
PROCESS workstations, even if some WIP inventory accumulates between machines (or
stations), the entire line would be shown as one process box on the door-to-door
map. But, if there are distinctly separate processes, where one process is
disconnected from the next process downstream, with inventory between them
being transferred in batches, then each process must be assigned its own process
box.
This icon is generally placed under other icons that have significant
information/data that will be required for analyzing and observing the system
being mapped.
Typical information placed in a Data Box underneath FACTORY icons is the

DATA BOX frequency of shipping during any shift, material handling information, transfer
batch size, demand quantity per period, etc. Typical information in a Data Box
underneath MANUFACTURING PROCESS icons:
 C/T (Cycle Time) — time (in seconds) that elapses between one part
coming off the process to the next part coming off,
 C/O (Changeover Time) — time to switch from producing one product on
the process to another
 Uptime— percentage time that the machine is available for processing
 EPE (a measure of production rate/s) — Acronym stands for ―Every Part
Every___‖.
 Number of operators — use OPERATOR icon inside process boxes
 Number of product variations
 Available Capacity
 Scrap rate
 Transfer batch size (based on process batch size and material transfer
9
Source: Rother & Shook, Appendix A
96
rate)
This icon represents the accumulation of inventory between two processes. While
mapping the current state, the amount of inventory can be approximated by a
quick count, and that amount is noted beneath the triangle. If there is more than
one inventory accumulation between processes, draw this icon to represent the
inventory in each location.
INVENTORY
This icon is also used to represent storage locations for raw materials and
finished goods, since they represent the start and finish of the material flow for
producing any product in a facility.
This icon represents the movement of raw materials from suppliers to the
Receiving dock/s of the factory. Or, the movement of finished goods from the
Shipping dock/s of the factory to the customer/s.
FINISHED GOODS TO
CUSTOMER
This icon represents the type of transportation mode being used inside or outside
the facility. The frequency of shipping is recorded inside the icon.
TRUCK
This icon represents the ―pushing‖ of material from one process to the next
process in a manufacturing routing. Push means that a process produces
something regardless of the actual needs of the downstream process that will
consume its outputs.
PUSH
This icon represents an inventory ―supermarket‖ (or buffer). Depending on the
predictability of the customer demand, the material flow through the system
might be continuous (one-piece flow). If the demand is fairly predictable, then
the flow of the product could be continuous, thereby eliminating the need for a
supermarket. However, when continuous flow (one-piece flow) fails in a system
and the upstream process must operate in batch mode, then this icon should be
SUPERMARKET located between two processes in order to (a) halt overproduction and (b) provide
visual feedback on customer requirements. The storage capacity of the
supermarket for various items in inventory will control the amount of product
withdrawals from the supermarket, either to supplying or receiving processes.
This icon indicates that a ―pull‖ system of material flow control being used to
connect a SUPERMARKET icon with the manufacturing process that supplies
product into the supermarket.
PULL WITHDRAWAL
97
This icon is synonymous to CONWIP (constant work in process). It is used
where the supplying process only produces when the FIFO storage lane has an
empty space for new product additions. If the FIFO lane is full, then the
supplying process must stop producing until the next process has used up some
FIRST IN FIRST OUT of the inventory stored in the lane. This will prevent the supplying process from
(FIFO) overproducing. The maximum quantity in the FIFO lane should be recorded.
Information Icons Meaning

These icons capture the information flows in any map. The icon representing the
general flow of information icon is simply a straight arrow. The wiggle arrow
represents the electronic flow of information via electronic data interchange
(EDI), the Internet, Intranets, LANs (local area network), WANs (wide area
network), etc. The latter icon is generally accompanied by a small box in the
arrow, indicating the frequency of information/data interchange, the type of
media used ex. fax, phone, etc. and the type of data exchanged.
INFORMATION FLOW
This icon triggers production of a pre-defined number of parts. It is used as a

signal for a supplying process to feed and provide parts to the next (consuming)
process.
PRODUCTION KANBAN It is also referred to as ―one per container‖ kanban. It is a card or device that tells
the supplying process the quantity and gives permission to do so.
This icon represents a ―shopping list‖. It is a note card or device that instructs the
material handler to get and transfer parts from a supermarket to the receiving
process. The material handler (or operator) will go to the supermarket and
WITHDRAWAL withdraw the desired number of parts needed at the receiving process.
KANBAN
This icon is used whenever the on-hand inventory levels in the supermarket
between two processes drops to a trigger or minimum point. When a Triangle
Kanban arrives at a supplying process, it signals a changeover and production of a
predetermined batch size of the part noted on the Kanban.
SIGNAL/TRIANGLE It is also referred as ―one-per-batch‖ kanban. It signals when reordering is

KANBAN necessary. It is used when the supplying process must produce in batches because
changeovers are required.
This icon represents a pull system that gives instruction to subassembly processes
to produce a predetermined type and quantity of product, typically one unit,
without using a supermarket.
SEQUENCED –PULL
BALL
98
This icon is a tool to batch kanbans in order to level the production volume and
mix over a period of time.
LOAD LEVELING
General Icons Meaning

These icons are used to highlight improvement needs and plan kaizen workshops
at specific processes that are critical to achieving the Future State Map of the
value stream.
KAIZEN LIGHTENING
BURST
This icon is used to represent an inventory ―hedge‖ (or safety stock) against
problems such as downtime, to protect the system against sudden fluctuations in
customer orders or system failures. Notice that the icon is closed on all sides. It is
intended as a temporary, not a permanent storage of stock; thus; there should be a
clearly-stated management policy on when such inventory should be utilized by
operators.
SAFETY STOCK
This icon represents an operator. It is usually placed in a MANUFACTURING
PROCESS box to indicate the number of operators working at a particular
workstation.
OPERATOR
99
APPENDIX D: COMPARISON OF INDUSTRIAL
ENGINEEERING TOOLS AND VSM ICONS
Industrial Engineering Icons VSM Icons
Operation
This icon is more specific about any operations In VSM, both icons represent operations, processes, or
performed in a department or between two process departments.
departments.
In VSM, there is no specific icon for inspection.
Quality and Quantity Inspection
Transportation
Does not describe the type of material flow
occurring between operations/processes.
Describes the type of material flow (Push, Pull, or

CONWIP)
100
Storage
This icon represents a scheduled accumulation of
materials, parts, and products. The type of This icon is used only to represent safety stock to
inventory could be: safeguard against any fluctuations that might occur in
 Raw materials the system. In VSM, this is distinguished from Work-In-
 WIP Progress (WIP) that is viewed as ―bad‖ inventory (and
 Finished goods should be reduced), whereas safety stock is viewed as
 Safety stock ―good‖ inventory and should be kept under lock and key.
Typically, this means getting permission from a high-
level manager, who might want to study the need for
using safety stock using a Root Cause Analysis and
identify solutions before giving any permission to access
this safety stock
This supermarket icon is very similar to the icon for

safety stock. They are similar in that both represent
partially finished parts (or products). The difference
between them is that the SUPERMARKET icon is
usually linked to the Pull system of scheduling using
PRODUCTION or WITHDRAWAL kanbans.
Delay
This represents any unscheduled accumulation of This icon also represents WIP accumulation in VSM;
materials, parts, and products in any process flow. however, it also records the amount of inventory
Examples of such accumulation are: accumulated. It is also used to represent storage
 Work-In-Progress (WIP) locations for raw material/s and finished good/s.
 Parts queued up before a machine
 Delay/ idle time of the operator
101
REFERENCES
Meyers, F. E. & Stephens, M. P. (2000). Manufacturing Facilities Design and Material

Handling. Upper Saddle River, NJ: Prentice Hall, Inc.
Moore, R. & Scheinkopf, L. (1998). Theory of Constraints and Lean Manufacturing:

Friends or Foes? Chesapeake Consulting, Inc: www.chesapeake.com.
Niebel, B. N. & Freivalds, A. (1999). Methods, Standards, and Work Design. New York,
NY: McGraw-Hill.
Rother, M. & Shook, J. (1999). Learning to See: Value Stream Mapping to Add Value
and Eliminate Muda. Brookline, MA: Lean Enterprise Institute (www.lean.org).
Womack, J. P. & Jones, D. T. (1996). Lean Thinking: Banish Waste and Create Wealth in
your Corporation. New York, NY: Simon & Schuster.
―What is the Theory of Constraints, and How does it compare to Lean Thinking?‖
http://www.lean.org/Lean/Community/Resources/thinkers2.cfm.
102
Evaluation of the Value Stream
Mapping Icons for Use in Jobshop-
type Facilities
Sadono Djumin, ZahirAbbas N. Khaswala, and Shahrukh A. Irani 1
Columbus Ohio 43210
Abstract
Value Stream Mapping (VSM) is an effective tool for visual representation of the
material and information flows in a facility with similar or identical product routings,
typically an assembly line type of facility that makes a low variety of products in high
volumes. However, the developers of VSM do not acknowledge the limitations of their
tool when deployed in facilities where multiple value streams merge/diverge because
they share one or more common capacity-constrained workcenters. This is typically the
case in jobshops (machining, fabrication, tool and die, injection molding, etc.) and any
Make-To-Order manufacturing facility with a NAICS code in the range 311-315, 321-
327, and 333-337. Based on the US Census Bureau’s 1997 Economic Census, a
conservative estimate of the number of such small- and medium-sized manufacturing
facilities (SME’s) with 50-249 employees is greater than 50,000!
Value Network Mapping (VNM) is the proposed tool that could map a multi-level Bill Of
Routings for a complete assembled product (furniture, excavation equipment, stamping
die, airframe structure, etc.), or reduce a diverse product mix with 1000+ active
components into several families of parts with similar manufacturing routings. This new
mapping tool needs meaningful icons that can be used to draw Current and Future State
Maps for the manufacturing system under study. Hence, a preliminary step taken was to
study the template of icons for VSM, which is mainly applicable to low variety high
volume (LVHV) environments, and modify or extend them, as appropriate, to suite high-
variety low-volume (HVLV) facilities.
1
Corresponding Author: irani.4@osu.edu, Ph: (614) 688-4685, Fax: (614) 292-7852
103
CURRENT STATE MAP
FUTURE STATE MAP
Source: http://www.mamtc.com/lean/building_vsm.asp and Rother, M. and Shook, M. (1999).

Learning To See: Value Stream Mapping to create Value and Eliminate Muda. Brookline, MA:
The Lean Enterprise Institute. ISBN 0-9667843-0-8.
104
MATERIAL FLOW ICONS
VSM Applicability to VNM Proposed Icon for VNM
Applicable
XYZ Corporation XYZ Corporation
Not Applicable
Factory Needs modification Factory

No. of suppliers =
No. of parts =
This icon represents: VNM maps a group of parts Distribution of
 The supplier of raw selected based on certain criteria
parts vs suppliers
Average and
materials (placed in the such as revenue, volume and variance of Lead LT
Times (LT) of parts
upper left-hand portion of variation in order quantities. Parts
the map). This is the Hence, the supplier information,

starting point for material if included, would make the map
flow to create the product too busy since, for every supplier This proposed icon includes a
being mapped. of raw materials and/or purchased data box that captures the
 The customer/distributor of parts, and for every customer following information:
finished product (placed in  the complete set of suppliers,
receiving the parts whose flows
the upper right-hand are being mapped, an icon would customers and/or distributors
portion of the graph). This have to appear on the map. included in the value stream
is the ending point for  the number of different parts
material flow to create the being mapped
product being mapped.  a distribution showing how
many different parts are
supplied by (or to) each
supplier (or customer)
 average and variance in
delivery lead times for each
part.
105
ASSEMBLY Applicable ASSEMBLY
Not Applicable No. of pieces

1 on the shopfloor =
Needs modification
Process Box Relocation
possibility (Y/N) =
Cost of
This icon indicates a process, Purchase =
To capture situations in which an Cost of
operation, machine or
operator could be simultaneously Relocation =
department, through which No. of
tending two or more pieces of 1
material flows. operators =
equipment. Also, the # of
identical machines of the same
1 type contained in a process village  The information on number of
Operators (or workcenter) and the total # in pieces on the shopfloor
the department can be shown on indicates the number of copies
This icon represents an the map. of the process equipment
operator. It is usually placed available, either distributed or
in a manufacturing process Note: Unlike VSM, VNM does co-located on the shopfloor.
box to indicate the number of not ignore the potential for  The information on the
operators working at a redesign of the current layout of relocation possibility relates to
particular workstation. the facility, since a poorly- the potential relayout of the
designed layout significantly shopfloor.
impacts the occurrence of WIP  The information on the cost will
(and other forms of waste) be used to indicate how
recorded on the Current State expensive it is to relocate or
Map. Hence, a VNM is always purchase more copies of the
accompanied by a Spaghetti process equipment.
Diagram representation of the
material flows, as they connect
the various process boxes placed
on a drawing of the facility
layout.
106
C/T = 45 secs
Applicable
C/O = 30 mins
3 shifts
2% scrap Not Applicable
Data Box Needs modification

This icon appears in the classical
This icon is placed under a  A process box in VSM Flow Process Charts used by IE’s.
process box, or other icons, typically represents only It indicates whether a process box
that have significant value-adding operations, represents an operation that is a
information necessary for and ignores other types of Quantity or Quality Inspection ex.
documenting and analyzing processes, esp quality and the above icon indicates that the
the system being mapped. quantity inspections. operation is mainly Volume
 In the case of multiple Inspection but includes some
variants of the same Quality Inspection.
product, there is need for Note: The resource requirements
showing decision points and process parameters for this
where different product operation ex. cycle time, # of
configurations split the operators, etc. must be recorded.
main material flow path Yes
into multiple branches.
No
 Since, in a typical HVLV
facility, many different Decision
parts could queued at a The above icon represents a
process, the average and decision or an approval point where
the standard deviation of the Value Stream Map could
their cycle times (C/T), branch.
changeover times (C/O)
% Available Time for part
and scrap rate for each (or product family)
product needs to be
computed and displayed. 60
% capacity utilization
 See “Proposed Icon for 50

VNM”. 40
30
20
10
0
1 2 3 4 5
Parts
This icon could be used to indicate

the percentage of available capacity
at each process allocated for each
part (or product family) processed
on that workcenter.
107
Applicable
Qt, N
I
Not Applicable
Transfer batch size and
300 pcs/day Needs modification frequency of tansfer
Inventory
This icon represents the
 As VNM maps a group of This symbol indicates the transfer
accumulation of inventory batch size (Qt) and the transfer
selected parts, there is a
between two processes. frequency (N) i.e. total number of
need to capture the
While mapping the current transfer batches of a particular part
inventory accumulation
state, the amount of being moved between two process
due to different parts.
inventory can be locations.
Hence, VNM
approximated by a quick
recommends that the icon
count during the facility
representing the amount
walkthrough, and that
of inventory be drawn for
amount is noted beneath the
every part found in the
triangle.
inventory.
 A plot of generic
inventory level (measured
in hours of workcenter
capacity) of the parts
found in the inventory
location can also be
computed.
Mon+
Applicable Delivery Schedule
Wed
Not Applicable Part # Qty Freq Supplier

Transportation
Needs modification
This icon represents the type

of transportation mode being If transportation and other
used outside the facility. The supplier-related attributes had to
be recorded for each part, a map This is a high-level delivery
frequency of shipping is
would become cluttered. schedule for the different parts
recorded inside the icon.
Therefore, VNM suggests being mapped. When creating a
grouping of parts into families, delivery schedule, one should be
and generating a “group attentive that the delivery times
schedule” for simultaneous and frequencies of the different
delivery of several parts as a parts are correlated to the date on
(single) unit load in any delivery. which the Current State Map is
created, in order to evaluate
overall delivery performance for
each part.
108
Applicable Material Handling Distance
Not Applicable Material Handling Equipment

Push System
Needs modification
Line - of - Sight (Y/N)
This icon represents the

“pushing” of material A push system in a high variety
shared resources environment This data box would capture the
between two consecutive
suggests that work orders are waste in material handling activities
processes in a value stream.
loaded on each workcenter in between consecutive processes
Push means that an upstream
isolation from actual WIP at connected by the Push System icon.
process produces to forecast
other workcenters located It can be placed below the inventory
(Make-To-Forecast)
downstream. triangle icon.
regardless of the actual needs
of the downstream process  The material handling distance
that will consume its outputs. parameter is used to indicate the
distance (in feet) between
consecutive processes.
 The material handling equipment
parameter is used to indicate the
choice of material handling
equipment – forklift, conveyor,
push cart, crane, manual, etc.
 The line-of-sight parameter is
used to signal the absence of a
clear line-of-sight between the
two process locations. Hence, this
parameter indicates the impact of
a bad facility layout on the
material and information flows.
109
Max. 20 pieces Work content in buffer

Applicable
FIFO SEQ RULE
Not Applicable
First-in-First-Out Sequencing Rule
Needs modification
This icon is synonymous to
CONWIP (constant work in This icon will be used to indicate the
process). It is used where sequencing rule used to load orders
the supplying process only at each process box, such as:
produces when the FIFO FIFO (First In First Out); SPT
storage lane has an empty (Shortest Processing Time); EDD
space for addition of new (Earliest Due Date); MWKR (Most
inventory. Work Remaining); CR (Critical
Ratio); SLK (Minimum Slack);
LIFO (Last In First Out)
The work content in buffer indicates

the maximum buffer capacity
available in terms of work content
times of the parts.
Rope to upstream processes Rope from downstream processes
upstream process downstream process
1 1
Drum or Pacemaker
The drum icon shown above can be

used to indicate the bottleneck
process in the map. Based on the
inventory at the bottleneck process,
various upstream processes feeding
parts to the bottleneck process can
be controlled.
Note: The bottleneck may shift with

changes in the product mix.
Therefore, one of the criteria for
selection of parts for inclusion in a
VNM is minimal variation in their
order quantities, in order to reduce
the probability of product mix
changes.
110
Applicable
Not Applicable
Supermarket Needs modification
This icon represents an

inventory “supermarket” (or
buffer). When continuous flow
(one-piece flow) fails in a
system and the upstream
process must operate in batch
mode, then a supermarket must
be located between two
processes in order to (a) halt
overproduction and (b) provide
visual feedback on customer
requirements to the upstream
process.
Applicable
Not Applicable
Needs modification
Rope to upstream processes Rope from downstream processes
Note: There is a difference

This icon represents between Withdrawal Pull and
Process Process downstream process
withdrawal (Pull) i.e. the Drum Buffer Rope (DBR) Pull. upstream process Process
subsequent process pulls parts

from the prior process
whenever it needs them. This Drum or Pacemaker
icon is often used in Withdrawal Pull Arrow
conjunction with the represents a pull of product from This icon represents pull signals
supermarket icon between two the immediately previous sent to the first upstream process
processes i.e. the downstream process. based on DBR scheduling. One-
process pulls parts from the piece flow or transfer batch flow
supermarket which eliminates using kanbans may be utilized,
overproduction by the provided that the WIP in the
upstream process Buffer located in front of the
DBR Pull Arrow represents a Drum is maintained within
release of new orders into the acceptable Min/Max limits.
system, based on the WIP level
in front of the bottleneck in the
value stream.
111
Applicable
Not Applicable
Needs modification
Safety Stock
This icon is used to
represent the “buffer stock”
which is used to protect
against all sudden
fluctuations in customer
orders. Safety stock should
be temporary and used only
till the root cause of a
problem is found and
eliminated.
Applicable
Not Applicable
Finished Goods Needs modification
to Customer
This icon represents the VNM maps a group of parts

movement of raw materials selected based on certain criteria
from suppliers to the as discussed before. Hence, the
Receiving dock/s of the supplier information if included
factory. Or, the movement would make the map too busy as
of finished goods from the supplier icons for each supplier
Shipping dock/s of the of the selected parts would be
factory to the customer/s. required to be placed on the
map.
112
INFORMATION FLOW ICONS
With uncertain schedules in the

Applicable HVLV environments the following
“Go See” Scheduling
Not Applicable modification strategy may be
Needs modification
useful: A combination of part
This icon is used to depict family-based group release of jobs,
the situation where the constraint-based order
supervisor counts inventory release, and cyclical movement of
and makes schedule the material handler on a physical
adjustments based on that route that touches the necessary
information. workcenters. Suitable training of
the material handler to perform
expediting, scheduling and other
support functions would be
required.
Applicable Delivery
Parts from
Not Applicable supplier
schedule
Needs modification
1 Daily
2 Weekly
This icon represents any Due to the variations in the 3 Random
periodic schedules within frequency of customer orders,
any processes in the plant, there is need for a more compact
such as schedules of representation for multi-part data.
customer orders (fax/request
frequency), production
control schedules to
customer and supplier, etc
113
M Applicability to VNM Proposed Icon for VNM
HVLV environments typically can

Applicable have multiple segments in their
Sequenced-Pull Ball Not Applicable product mix, such as runners,
Needs modification
repeaters and strangers. This is done
Sequenced pull means that on the basis of the
the supplying process consistency/stability in order
produces a predetermined quantity of parts with runner parts
quantity (often one having the most order consistency.
subassembly) directly to the Hence, only for the runner parts, it
orders received from the may be possible to install the
customer process. This sequenced-pull ball system of
works if lead time for the scheduling.
supplying process is short
enough for production to Note: The scheduling of orders that
order, and if the customer belong in the other two segments of
process follows strict the product mix (Repeaters and
“ordering” rules. This Strangers) is complicated due to the
arrangement is an instability of their order quantities.
alternative to the
supermarket with multiple
component inventory racks.
OXOX Applicable Since VNM works with a group of

Load Leveling
parts, it is likely to encounter more
Not Applicable than one bottleneck or pacemaker
Needs modification process. This/these bottleneck
Leveling the product mix processes can be identified by
means distributing the looking at the Gantt Chart. Leveling
production of different the product mix at those bottleneck
products evenly over a time shared resources may depend upon
period. It is recommended to criteria other than common setups to
level production at the minimize changeover delays. For
pacemaker process. The example, EDD of the parts.
benefit is being able to
respond to different
customer requirements with
a short lead time while
holding low finished goods
inventory. The price to be
paid is frequent
changeovers.
114
Manual Electronic
Applicable
M/H or S
Information Flows Not Applicable
Communication System
Needs modification
These icons capture the
This symbol will be used to indicate
information flows in any
the types of communication systems
map. The icon representing
in use on the shop floor:
the manual flow of
M/H – for material handling
information is simply a
between interacting processes/work
straight arrow. The wiggle
centers.
arrow represents the
S – for support functions that
electronic flow of
support the operators at each
information.
workcenter ex. Production Control
and Maintenance.
Cyclic material handling

route
This symbol can be used to indicate

the route taken by a material handler
(or water spider).
115
Applicable M1 3 4 1 2
M2 11 3 2 4
Not Applicable
Withdrawal Kanban M3 2 3 1 4
Needs modification 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
This icon represents a
“shopping list”. It is a card The Job-Order Kanban is suited for
or device that instructs the There are other types of Kanbans
used in specific situations: HVLV environments with non-
material handler to transfer recurrently produced parts.
from a supermarket to the  Express and Emergency
Kanban: This Kanban is Shown above is a customized
receiving process. version of a Gantt Chart issued for
issued only when there is a
shortage of a part and the Job #1. Notice that, only the
Kanban is collected just after processes (M1, M2, and M3) which
its use. The shortage of the the job uses in its route are shown.
Production Kanban part could be due to defective The time blocks indicate the work
units, machine troubles, etc. content for jobs at the shared
This icon triggers one resources after the shop has been
production of a pre-defined  Job-Order Kanban: For
non-recurrently produced loaded to the jobs as determined by
number of parts. It is used as
products, a job-order Kanban the schedule developed for the VNM
a signal for a supplying
is prepared for the dedicated timeline. Hence, after being
process to feed and provide
production line and is issued processed at M2, Job #1 would need
parts to the next
for each job order. real time status of Job #3 & Job #4
(consuming) process. at M1.
 Through and Common
Kanban: This type is used
The Express and the Cart Kanban
where two or more processes
types would also be applicable in
are so closely connected with
HVLV environments.
each other that they can be
Kanban Arriving in Batches seen as a single process. In
this case, a common sheet of
This icon triggers Kanban is used by both the
simultaneous production of preceding and subsequent
several parts. This icon has processes.
to be used in conjunction  Cart or Truck Kanban: In
with Load Leveling to this case, the cart used to
control the release of transfer parts between
kanbans for each part. This processes is itself a Kanban.
icon is appropriate when it Although a Kanban must be
is not possible to produce a attached to the parts as a rule,
pre-defined quantity of a the number of carts equals the
single part. number of Kanbans.
116
Signal Kanban
This icon is used whenever
the on-hand inventory levels
in the supermarket between
two processes drops to a
trigger or minimum point.
When a Triangle Kanban
arrives at a supplying
process, it signals a
changeover and production
of a predetermined batch
size of the part noted on the
Kanban.
This icon represents any The Kanban Post should not be

container where kanban viewed as just a container for
cards/sheets are storage and display of kanban
hung/displayed, where they cards. Instead, its location between
are temporarily held until the two processing points could help to
next delivery. signal pickup/dropoff requests,
regulate material handling traffic,
maintain WIP between desired
Min/Max levels, etc. Further, the
Kanban Post could be a scheduling
board, or digital display board,
similar to the ones used at airline
gates.
117
C2
Timeline Applicable M1 3 4 1 2
M2 1 3 2 4
Not Applicable
This icon drawn under the Needs modification
M3 2 3 1 4
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
process boxes and inventory C3 C1 C4
triangles is used to indicate
the production lead time, As VNM maps a group of parts, the
which is the time it takes one equivalent of the timeline icon is
part to make its way through the Gantt chart. This shows the
the shop floor, beginning utilization of capacity constrained
with its arrival as raw shared resources by the selected
material through to shipment parts. (Ci = Completion Time of
to the customer. Jobi in the production schedule; M
= Machine)
Lead time through the

process
2 hrs
In VNM, a weighted VAR must be
40 secs
Applicable computed from the Gantt chart. The
Not Applicable weights can be based on criteria
Value adding
time Needs modification
such as profit margin , selling price,
The metric used for VSM to importance by customer, etc.
measure the efficiency of a
Current State Map is the
Value Added Ratio (VAR).
As shown above, the value
added time is indicated at
each process. The VAR is
computed by calculating the
total processing time and
dividing it by the total
production lead time.
118
Applicable The following are some of the tools

which can be used in kaizen events
Kaizen
Not Applicable to achieve the future state map.
Needs modification 1. Cell Formation:
Physical (P) vs.
This icon, the kaizen Virtual (V)
lightening burst, is used to 2. Group Technology
indicate any equipment and 3. Variety Reduction
procedural improvements to 4. Right-sized Machines
realize the Future State Map. 5. Process Improvement using
6σ/DOE methods
6. Group Scheduling
7. Supermarket with Kit
Locations.
8. Hybrid Layout
9. Cross-training of Operators
10. Visual Workplace/5S
11. Setup Reduction
12. Time Studies and Methods
Analysis.
119
Value Network Mapping (VNM):
Visualization and Analysis of
Multiple Interacting Value
Streams in Jobshops
Shahrukh Irani

Columbus, OH 43210
120
Introduction to Lean Thinking
• Lean means “More for Less”.
• Cost reduction is achieved by reducing/eliminating

‘Muda’ (waste) in the flow times of key products.
• ‘Muda’ can be identified by determining the detailed

sequence of steps followed by each product from order
initiation to order delivery.
121
Flow: Foundation of Lean Thinking
Flow is “the progressive movement of product/s

through a facility from the receiving of raw material/s to
the shipping of the finished product/s without stoppages
at any point in time due to backflows, machine
breakdowns, scrap, or other production delays”.
Source: Suzaki, K. (1987). The new manufacturing challenge:

Techniques for continuous improvement. New York, NY: Free Press.
122
Designing a Factory for Flow
Minimize Flows Minimize Cost of Flows
• Eliminate operations
• Eliminate handling
• Combine operations
• Minimize handling costs
• Minimize multiple paths
Maximize Directed Flow Paths

• Minimize queuing delays
• Minimize Pick-Up/Drop-Off
• Eliminate backtracking delays
• Eliminate crossflows and • Minimize in-process storage
intersections among paths • Minimize transport delays
Adapted from: Tompkins, J.A., et al. (1996). Facilities planning. New York, NY: John Wiley.
123
What is Value Stream Mapping (VSM)?
• A ‘Value Stream’ (VS) is “all the actions (both value-

-added and non-value-added) currently required to bring
a product through the main flows essential to every
product” (Rother & Shook, 1999, p. 3).
• Value Stream Mapping (VSM) is “the process of mapping

the material and information flows of all components
and subassemblies in a value stream that includes
manufacturing, suppliers, distribution and the
customer”.
124
Reasons for using Value Stream Mapping (VSM)
• VSM is a mapping tool that maps not only material flows

but also information flows that signal and control the
material flows.
• This visual representation facilitates the process for

implementation of Lean Thinking by helping to identify
the value-adding steps in a value stream and eliminating
the non-value adding steps, or waste (muda) in flow
paths of products.
125
Standard Symbols for VSM
C/T = 45 secs
ASSEMBLY
XYZ Corporation
C/O = 30 mins
3 shifts
I
2% scrap
300 pcs/day
Process Box Outside Sources Data Box Inventory
Mon+ Max. 20 pieces

Wed FIFO
Finished Goods to First-in-First-Out

Transportation Push System Customer
Weekly 1
Manual Electronic
Supermarket Schedules Operator
Information Flows
Source: Rother & Shook, 1999, ISBN 0-9667843-0-8
126
Standard Symbols for VSM (contd.)
Withdrawal Kanban Production Kanban Signal Kanban
Kaizen
Kaizen ‘Go See’

Kanban arriving in Scheduling
Kanban Post Bursts
batches
Source: Rother & Shook, Appendix
127
An Example of a Current State Map
128
An Example of a Future State Map
129
Advantages of Value Stream Mapping
• Relates the manufacturing process steps to other components

of the supply chain viz. distributors, suppliers and
production control.
• Integrates material and information flows.
• Links Production Control and Scheduling (PCS) functions

to Shopfloor Control.
• Integrates various IE techniques for material and

information flow analysis.
130
Disadvantages of Value Stream Mapping
• Fails to map multiple products that do not have identical

routings.
• Fails to relate plant layout and/or material handling
to process and equipment parameters.
• Lacks any economic measure for “value”.
• Lacks the spatial structure of the facility layout.
• Biased towards high-volume low-variety
manufacturing systems.
• Fails to capture the time value (in $) of the flow delays
due to setup, processing, queuing (at each process step),
material handling, etc. delays due to capacity constraints
and order sequencing at each process step.
131
Foundation for Value Network Mapping (VNM)
• Developed for products with complex BOM’s that have

many components and several assembly levels.
• Developers of VSM state that “many value streams have

multiple flows that merge. Draw such flows over one
another. But do not try to draw every branch if there are
too many. Choose the key components first, and get the
others later if you need to” (Rother & Shook, 1999, p. 19).
132
Foundation for Value Network Mapping (contd.)
Raw
COMPONENTS
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 Materials
Manufacturing Systems
Production Flows in the
SUB ASSEMBLIES SA 1 SA 2 SA 3 SA 4 SA 5
VNM APPLIES VERY WELL AT

THIS LEVEL
ASSEMBLY 1
ASSEMBLIES ASSEMBLY 2 Finished

Goods
VSM APPLIES VERY WELL AT

THIS LEVEL
133
Our Goal
• To map the complete network of flows for a complex

product or sample of parts using Value Network Mapping
(VNM) .
• To computerize basic Industrial Engineering (IE) tools for

material flow mapping, using a software package for
material flow analysis - PFAST (Production Flow Analysis
and Simplification Toolkit).
• To integrate the material flow mapping power of PFAST

with the Finite Capacity Scheduling (FCS) power of
PREACTOR.
134
Comparison of Value Stream Mapping (VSM)
and Value Network Mapping (VNM)
VSM VNM
Form a Product Family: Tool used Form a Product Family: Tools used
1. Product-Process Matrix Clustering 1. Product-Process Matrix Clustering
(Downstream processes close to the 2. Product-Component Matrix Clustering
customer end of the value sream are used 3. PQRS Analysis
to identify a product family)
Visualize the Flow: Tools used

1. B.O.M for the product
2. Operations Process Chart
3. Multi-Product Process Chart (MPPC)
4. Flow Diagram
Collect Data: Tool used

1. Enhanced Flow Process Chart
Merge Similar Routings: Tool used

1. Modified Multi-Product Process Chart
(MMPPC)
Draw the Current State Map:Tool used Draw the Current State Map: Tools used
1. Collect data and draw the map using a 1. MMPPC
pencil 2. Enhanced FPC
Develop a Future State Map
Develop an Action Plan
135
Fundamental Problems in VNM
• How/where to locate the process boxes in order to

achieve “Flow”?
• How to retain the exact routing for each value stream?
• How to identify the product families contained in the

sample of value streams?
• How to design the factory layout to achieve “Flow” with

cells and still be flexible, even reconfigurable?
136
VNM for a Machining Jobshop
137
Sample of Machined Parts in the Jobshop
Part # Part Name Prod. Qty. Sales $ Routings

1 Slider (a) 40 $10,000 6 9 10 11 12
2 Slider (b) 45 $25,000 4 6 9 10 11 12
3 Press Brace 80 $50,000 5 8 9 10
4 Bracket #1 15 $5,000 4 7 9 10
5 Table 100 $30,000 3 7 10 12
6 Damper 20 $10,000 1 7 9 10
7 Bracket #2 30 $5,000 1 8 9 10
8 Support 30 $20,000 4 7 9
9 Housing 70 $40,000 2 7 9
10 Flange 15 $20,000 2 9
11 Shaft 10 $10,000 3 9 10 12
12 Base 90 $35,000 3 6 4 10 12
13 Spacer 75 $45,000 4 6 4 10 12
138
Machines in the Jobshop
M/C # Name of Machine

1 NC Lathe (LB15)
2 NC Lathe (LB20)
3 Horizontal Mill (M)
4 Upright Mill (VM)
5 Compact Mill (BM)
6 Upright MC (6VA)
7 NC for Screw Holes (TNC)
8 Marker (MRK)
9 Drilling Machine (B)
10 Manual Operations (MAN)
11 Honing (H)
12 Grinder (G)
139
Product Mix Segmentation – I: P-Q Analysis
120
100
80
Quantity
60
40
20
0
5 12 3 13 9 2 1 7 8 6 4 10 11
Part Number
140
Revenue Product Mix Segmentation – II: P-Q-$ Analysis
141
Product Mix Segmentation –III: P-R Analysis
3 9 10 4 6 12 11 7 2 5 8 1
5 1 1 1 1
11 1 1 1 1
1 1 1 1 1 1
2 1 1 1 1 1 1
12 1 1 1 1 1
13 1 1 1 1
6 1 1 1 1
7 1 1 1 1
3 1 1 1 1
4 1 1 1 1
8 1 1 1
9 1 1 1
10 1 1
Part Number
2 4 6 9 10 11 12
1 6 9 10 11 12
11 3 9 10 12
12 3 6 4 10 12
13 4 6 4 10 12
5 3 7 10 12
6 1 7 9 10
4 4 7 9 10
8 4 7 9
9 2 7 9
10 2 9
3 5 8 9 10
7 1 8 9 10
142
Product Mix Segmentation – IV: P-Q-R-$ Analysis
143
Product Mix Segmentation – IV: P-Q-R-$ Analysis
(contd.)
144
How NOT to Draw a Value Network Map (VNM)
3 9 10 4 6 12 11 7 2 5 8 1
3 10 90 100
9 240
10 275 85
4 165 120 45
6 85 165
12
11 85
7 135 100
2 15 70
5 80
8 110
1 20 30
145
How to Draw a Value Network Map (VNM)
Part #
1 6 9 10 11 12 4*
2 4
6 9* 10* 11 12
13
12 3 3
5 7
7*
Exception Operation
11
10
9 2 2
4 4 4*
6 7 7*
7 1 1
3 8 9 10 8 9* 10*
5
5
* Should multiple process boxes be drawn in the map for these duplicate machines?
146
Design of Flexible Factory Layouts using VNM
Modular Layout
5
Cellular Layout Module 1 Hybrid Flowshop Layout
1 8
7 9 10
2
4
3 6 9 10 11 12
Module 2
147
VNM for a Fabrication Jobshop
148
Product utilized for VNM study: ED1M009-32
149
Components in ED1M009-32
COMPONENT # DESCRIPTION OF COMPONENT
P97SS0210 GROUND CONNECTION ASSEMBLY

P97SS0211 JUNCTION PLATE
P97SS0228 MOUNTING BRACKET, RIGHT
P97SS0229 MOUNTING BRACKET, LEFT
P99SS0005 FRAME WELDING ASSEMBLY
P99SS1069 UPRIGHT GUSSET
P99SS1063 RIGHT UPRIGHT
P99SS1062 LEFT UPRIGHT
P99SS1145 RIGHT GUSSET
P99SS1146 LEFT GUSSET
P99SS1064 BASE ASSEMBLY
P99SS1064-3 CHANNEL FOR BASE ASSEMBLY
P99SS1065 TOP SUPPORT ASSEMBLY
P99SS1065-3 CHANNEL FOR TOP SUPPORT ASSEMBLY
P99SS1066 REAR PANEL (TOP)
P99SS1067 REAR PANEL (MIDDLE)
P99SS1068 REAR PANEL (BOTTOM)
P99SS0126 TOP PANEL
P99SS0127 GUARD RAIL COVER
150
Workcenters used to make ED1M009-32
Machine # Machine Description
1 Shear
2 Laser
3 Vipros (NCP)
4 King (NCP)
5 Time Saver
6 Manual Grind
7 Large Mechanical Brake (L. Mech.)
8 Small Mechanical Brake (S. Mech.)
9 Large CNC Brake (L. CNC)
10 Small CNC Brake (S. CNC)
11 Gang Drill
12 MIG Weld
13 Rough Grinder
14 Notcher
15 Burton Plating (Outsource)
16 Paint Line
17 Assembly
18 Tumbler
151
Multi-Product Process Chart (MPPC) for
ED1M009-32
152
Flow Diagram for ED1M009-32
153
Enhanced Flow Process Chart (FPC) for
ED1M009-32
154
Enhanced Flow Process Chart (FPC) for
ED1M009-32 (contd.)
155
Modified Multi-Product Process Chart (MM-PPC)
for ED1M009-32
156
VNM: Overall Flow Diagram
LASER SHEAR
X = Travel distance
X/Y X/Y
X/Y
Y = MHE used
M. GRIND VIPROS / KING
L CNC BR
X/Y
X/Y
X/Y
X/Y
X/Y X/Y
TS GRIND M. GRIND
X/Y X/Y X/Y
X/Y X/Y X/Y

HAEGAR
S MECH BR L MECH BR L CNC BR L MECH BR SHEAR TU GRIND

X/Y
X/Y X/Y X/Y X/Y
NOTCHER GSW TS GRIND

X/Y
X/Y X/Y
X/Y
X/Y X/Y
L CNC BR GSW
X/Y X/Y X/Y
X/Y
S CNC BR X/Y
WELD
X/Y
X/Y
X/Y
X/Y
R GRIND BURTON
X/Y X/Y
PAINT
X/Y
X/Y
ASSLY
157
VNM: Assembly Operations Process Chart
P99SS1069 P99SS1145 P99SS1064-3 P99SS1065-2 P99SS1062 P99SS0127 P99SS1067 P97SS0229 P97SS0211

P99SS1146 P99SS1064-2 P99SS1065-3 P99SS1063 P99SS0126 P99SS1066 P99SS1068 P97SS0228 P97SS0210
LASER LASER LASER LASER LASER SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR
MAN TS TS TS
VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP VNCP HAEG
GRIND GRIND GRIND GRIND
SM SM LM LC LC MAN
KNCP KNCP KNCP KNCP KNCP KNCP KNCP KNCP KNCP
BRAKE BRAKE BRAKE BRAKE BRAKE GRIND
GANG TUM
NOTCH SHEAR
DRILL GRIND
TS TS TS TS TS TS TS TS
GRIND GRIND GRIND GRIND GRIND GRIND GRIND GRIND
LM LC LC LC LC GANG GANG
BRAKE BRAKE BRAKE BRAKE BRAKE DRILL DRILL
GANG GANG GANG SC SC

DRILL DRILL DRILL BRAKE BRAKE
BURTN BURTN BURTN BURTN BURTN BURTN

MIG MIG
WELD WELD
ROUGH
GRIND
MIG MIG
WELD WELD
ROUGH ROUGH
GRIND GRIND
PAINT PAINT PAINT PAINT PAINT PAINT
ASSMY
INSPEC
158
VNM using PFAST and PREACTOR/FCS
• To incorporate detailed analysis of the material handling

systems and processes connecting different pairs of
process boxes in the VNM overall Flow Diagram.
• To give economic value to WIP buildup at each process

due to queuing delays, lot sizing and job sequencing in
the VNM overall Flow Diagram using PREACTOR.
• To capture, using PREACTOR, the impact of scheduling

delays on (final) product completion time (or throughput
time) when multiple components and subassemblies use
capacity-constrained resources.
159
VNM using PFAST and PREACTOR/FCS (contd.)
NO OPRN 1065-2 1065-3 1064-3 1062 1063 0126 0127 1066 1067 1068 0229 0228 0211 0210
1 SHEAR 1 1 1 1 1 1 3 1 1 1 1 1 1 1 1
4.5 (V & K NCP) 2 - - - - 2 2 2 2 2 2 - 2 -
160
VNM using PFAST and PREACTOR/FCS (contd.)
HAEGAR ASSLY
1 X/Y
BURTON X/Y
3
X/Y
TU GRIND
1 3 X/Y X/Y
Value Network Map TS GRIND

GSW S CNC BR
2 X/Y
X/Y 2 X/Y
3
1 1 2 6
5 X/Y
X/Y
X/Y X/Y 1 L CNC BR

X/Y SHEAR 1
L CNC BR
1 X/Y
PAINT
X/Y
X/Y
SHEAR 1 1 1 L MECH BR
X/Y
X/Y X/Y 1 X/Y

1 GSW
VIPROS / KING
11 M. GRIND L CNC BR
X/Y
X/Y 3 X/Y 2
1 X/Y
X/Y X = Travel distance
1 3 1 4 Y = MHE used
LASER X/Y
2 X/Y 1 X/Y WELD R GRIND
1 3 X/Y TS GRIND L MECH BR
X/Y
X/Y
M. GRIND
1 1 X/Y
X/Y
2
X/Y
X/Y
1 1 S MECH BR 1
X/Y
X/Y
NOTCHER 1
1
161
VNM: Reduction of Multiple Value Streams to
arrive at the Future State Network
• Group components that use same machines into “kits” that are “group released”
on one cart.
P99SS1069 P99SS1146 P99SS1145 P99SS1064-2 P99SS1064-3 P99SS1065-3 P99SS1065-2 P99SS1063 P99SS1062 P99SS0126 P99SS0127 P99SS1066 P99SS1067 P99SS1068 P97SS0229 P97SS0228 P97SS0211 P97SS0210
LASER LASER LASER LASER Shear SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR SHEAR
P :29 :26 P :27 4:22 P :21 P :23 P :31 :23 :41 P :37 P 1:07 P :2 :2 :1 P :12
P P P :13 :28 P :15 P P P P
S :7 S :7 :15 :15 S :15 P S :15 S :15 S :15 S :15
S :7 S :7 S :15 S S S :15 S :15 S :15 S :15 S :15
T :4 :4 T :4 S :15 T :4 :4 T :4 T :4
T :4 T T :4 T :4 T :4 T :4 T :4 T :4 T :4 T T :4 T :4
Q :12 :22 Q 0 T :4 Q :17 :12 Q 0 Q 0
Q 0 Q Q 0 Q 2:17 Q :30 Q Q 0 Q 0 Q :54 Q Q 0 Q 0
Q 0
MAN TS TS TS VNCP/ VNCP/ VNCP/ VNCP/ VNCP/ VNCP/ VNCP/ VNCP/

GRIND GRIND GRIND VNCP VNCP KNCP KNCP KNCP KNCP HAEG
P :35
GRIND P 2:13 KNCP P 2:04 P 1:53 P
KNCP
2:39 P
KNCP
3:06 P
KNCP
1:44 P
KNCP
1:40 P :9 P :26
P :33 P :35 P 6:27 P 2:09 P :20 P :17
S :11 S :38 S :38 S :38 :38 :38 :38 S :38 S :38 S :25
S :11 S :11 S :11 S S S S :38 S :38 S :38
:8 T :8 T :8 T :8 T :8 T :8 T :8
T T :8 T :8 T :8 T :8 T :8 T :8 T :8 T :8 T :8
Q :12 Q 4:47 Q 0 Q 1:53 Q 0 Q 0 Q :54 Q :26 Q 0 Q 0
Q 0 Q :32 Q Q :12 Q 0 Q 0
SM SM LM LM MAN TUM
BRAKE BRAKE SHEAR GRIND
P 1:02
BRAKE :59 1:06
P 3:48 BRAKE GRIND P 3:29 :20
P P 1:13 P
S :46 S P 2:44 S :53
S :46 S :46 S :42
:12 T :12 S :42 T :12 :12
T T :12 T :12 T
Q :55 Q 4:47 T :12 Q 0 0
Q 0 Q :32 Q
Q 0
GANG TS TS TS TS TS TS TS TS
NOTCH GRIND GRIND GRIND GRIND GRIND GRIND GRIND GRIND
P 1:14 P 5:04 DRILL P 2:28 P 3:57 P 4:02 P 2:04 P 2:08 P 2:32 P :32 P :30
S :51 S 1:20 :42 :42
S S :42 S :57 S :42 S :42 S :42 S S :42
T :16 T :16 :12 :12
T T :12 T :16 T :12 T :12 T :12 T T :12
Q :55 Q 5:44 1:53 0
Q Q 0 Q 0 Q 2:36 Q 1:32 Q :12 Q Q 0
 1:10  12:24
GANG GANG
DRILL DRILL
P :43 P :40
S :49 S :49
T :16 T :16
Q 0 Q 0
LC LC LC LC LC LC
BRAKE BRAKE BRAKE BRAKE BRAKE BRAKE
P 9:39 P :55 P 3:46 P 5:46 P 5:55
S :46 S :50 P 3:30
T :12 T :8
S
T
1:17
:16
S 1:17 S
T
1:17
:16
S
T
1:32
:20
SC SC
Q 4:02 Q :50 T :16
 17:50  2:43
Q 0
Q 5:08
Q 0 Q 0
BRAKE BRAKE
P 1:24 P 1:13
S 1:24 S 1:24
:20 :20
GANG MIG GANG GANG T
Q 1:13
T
Q 0
DRILL P 7:09 WELD DRILL DRILL
P 10:21 P 6:30 P 6:27
:53 S 1:35 1:24 1:24
S S S
:16 T :20 :20 :20
T T T
Q 6:19 Q 9:26 Q 0 Q 8:03 BURTN BURTN BURTN BURTN BURTN BURTN
P 42:04 P 42:08 P 42:32 P 41:24 P 41:13 P 40:20
MIG ROUGH S :42 S :42 S :42 S 1:24 S 1:24 S :42
T :16 T :16 T :16 T :24 T :24 T :16
P
S
13:57
1:08 WELD P
S
7:10
1:39
GRIND Q 2:36 Q 1:32 Q :12 Q 1:13 Q 0 Q 0
T :20 T :24
 3:17  1:58  2:37 Q 6:19  21:45 Q 9:26  18:39  8:14  16:14
MIG
MIG P 6:27 WELD
S 1:32
P
S
27:50
1:23
WELD T
Q
:20
19:33
T :24
Q 6:19
ROUGH
ROUGH GRIND
P 34:00 P 6:53
S 1:27 GRIND S 1:36
T :28 T :24
Q 6:19  42:14 Q 25:46
• Identify “outlier” or “exception” machines
162
VNM: Reduction of Multiple Value Streams to arrive
at the Future State Network (contd.)
• Identify layout modules; group these machines into “partial

cells”
P :29 :26 P :27 4:22 P :21 P :23 P :31 :23 :41 P :37 P 1:07 P :2 :2 :1 P :12
P P P :13 :28 P :15 P P P P
S :7 S :7 :15 :15 S :15 P S :15 S :15 S :15 S :15
S :7 S :7 S :15 S S S :15 S :15 S :15 S :15 S :15
T :4 :4 T :4 S :15 T :4 :4 T :4 T :4
T :4 T T :4 T :4 T :4 T :4 T :4 T :4 T :4 T T :4 T :4
Q :12 :22 Q 0 T :4 Q :17 :12 Q 0 Q 0
Q 0 Q Q 0 Q 2:17 Q :30 Q Q 0 Q 0 Q :54 Q Q 0 Q 0
Q 0

GRIND GRIND GRIND VNCP VNCP KNCP KNCP KNCP KNCP HAEG
P :35
GRIND P 2:13 KNCP P 2:04 P 1:53 P
KNCP
2:39 P
KNCP
3:06 P
KNCP
1:44 P
KNCP
1:40 P :9 P :26
P :33 P :35 P 6:27 P 2:09 P :20 P :17
S :11 S :38 S :38 S :38 :38 :38 :38 S :38 S :38 S :25
S :11 S :11 S :11 S S S S :38 S :38 S :38
:8 T :8 T :8 T :8 T :8 T :8 T :8
T T :8 T :8 T :8 T :8 T :8 T :8 T :8 T :8 T :8
Q :12 Q 4:47 Q 0 Q 1:53 Q 0 Q 0 Q :54 Q :26 Q 0 Q 0
Q 0 Q :32 Q Q :12 Q 0 Q 0
SM SM LM LM MAN TUM
P 1:02
BRAKE :59 1:06
P P 1:13 P
S :46 S P 2:44 S :53
S :46 S :46 S :42
:12 T :12 S :42 T :12 :12
T T :12 T :12 T
Q :55 Q 4:47 T :12 Q 0 0
Q 0 Q :32 Q
Q 0
S :51 S 1:20 :42 :42
S S :42 S :57 S :42 S :42 S :42 S S :42
T :16 T :16 :12 :12
T T :12 T :16 T :12 T :12 T :12 T T :12
Q :55 Q 5:44 1:53 0
Q Q 0 Q 0 Q 2:36 Q 1:32 Q :12 Q Q 0
 1:10  12:24
GANG GANG
DRILL DRILL
P :43 P :40
S :49 S :49
T :16 T :16
Q 0 Q 0
LC LC LC LC LC LC
BRAKE BRAKE BRAKE BRAKE BRAKE BRAKE
P 9:39 P :55 P 3:46 P 5:46 P 5:55
S :46 S :50 P 3:30
T :12 T :8
S
T
1:17
:16
S 1:17 S
T
1:17
:16
S
T
1:32
:20
SC SC
Q 4:02 Q :50 T :16
 17:50  2:43
Q 0
Q 5:08
Q 0 Q 0
BRAKE BRAKE
P 1:24 P 1:13
S 1:24 S 1:24
:20 :20
Q 1:13
T
Q 0
P 10:21 P 6:30 P 6:27
:53 S 1:35 1:24 1:24
S S S
:16 T :20 :20 :20
T T T
P 42:04 P 42:08 P 42:32 P 41:24 P 41:13 P 40:20
MIG ROUGH S :42 S :42 S :42 S 1:24 S 1:24 S :42
T :16 T :16 T :16 T :24 T :24 T :16
P
S
13:57
1:08 WELD P
S
7:10
1:39
GRIND Q 2:36 Q 1:32 Q :12 Q 1:13 Q 0 Q 0
T :20 T :24
 3:17  1:58  2:37 Q 6:19  21:45 Q 9:26  18:39  8:14  16:14
MIG
MIG P 6:27 WELD
S 1:32
P
S
27:50
1:23
WELD T
Q
:20
19:33
T :24
Q 6:19
ROUGH
ROUGH GRIND
P 34:00 P 6:53
S 1:27 GRIND S 1:36
T :28 T :24
Q 6:19  42:14 Q 25:46
163
VNM: Reduction of Multiple Value Streams to arrive
at the Future State Network (contd.)
• Identify families of parts with identical routings that can be
“compacted” into a single value stream.
P :29 :26 P :27 4:22 P :21 P :23 P :31 :23 :41 P :37 P 1:07 P :2 :2 :1 P :12
P P P :13 :28 P :15 P P P P
S :7 S :7 :15 :15 S :15 P S :15 S :15 S :15 S :15
S :7 S :7 S :15 S S S :15 S :15 S :15 S :15 S :15
T :4 :4 T :4 S :15 T :4 :4 T :4 T :4
T :4 T T :4 T :4 T :4 T :4 T :4 T :4 T :4 T T :4 T :4
Q :12 :22 Q 0 T :4 Q :17 :12 Q 0 Q 0
Q 0 Q Q 0 Q 2:17 Q :30 Q Q 0 Q 0 Q :54 Q Q 0 Q 0
Q 0

GRIND GRIND GRIND VNCP VNCP KNCP KNCP KNCP KNCP KNCP KNCP KNCP HAEG
P :35
GRIND P 2:13 KNCP P 2:04 P 1:53 P 2:39 P 3:06 P 1:44 P 1:40
KNCP P :9 P :26
P :33 P :35 P 6:27 P 2:09 P :20 P :17
S :11 S :38 S :38 S :38 :38 :38 :38 S :38 S :38 S :25
S :11 S :11 S :11 S S S S :38 S :38 S :38
:8 T :8 T :8 T :8 T :8 T :8 T :8
T T :8 T :8 T :8 T :8 T :8 T :8 T :8 T :8 T :8
Q :12 Q 4:47 Q 0 Q 1:53 Q 0 Q 0 Q :54 Q :26 Q 0 Q 0
Q 0 Q :32 Q Q :12 Q 0 Q 0
SM SM LM LM MAN TUM
P 1:02
BRAKE :59 1:06
P P 1:13 P
S :46 S P 2:44 S :53
S :46 S :46 S :42
:12 T :12 S :42 T :12 :12
T T :12 T :12 T
Q :55 Q 4:47 T :12 Q 0 0
Q 0 Q :32 Q
Q 0
S :51 S 1:20 :42 :42
S S :42 S :57 S :42 S :42 S :42 S S :42
T :16 T :16 :12 :12
T T :12 T :16 T :12 T :12 T :12 T T :12
Q :55 Q 5:44 1:53 0
Q Q 0 Q 0 Q 2:36 Q 1:32 Q :12 Q Q 0
 1:10  12:24
GANG GANG
DRILL DRILL
P :43 P :40
S :49 S :49
T :16 T :16
Q 0 Q 0
LC LC LC LC LC
LC
BRAKE BRAKE BRAKE BRAKE BRAKE
P 9:39 P :55 P 3:46
BRAKE P 5:46 P 5:55
S :46 S :50 P 3:30
T :12 T :8
S
T
1:17
:16
S 1:17 S
T
1:17
:16
S
T
1:32
:20
SC SC
Q 4:02 Q :50 T :16
 17:50  2:43
Q 0
Q 5:08
Q 0 Q 0
BRAKE BRAKE
P 1:24 P 1:13
S 1:24 S 1:24
:20 :20
Q 1:13
T
Q 0
P 10:21 P 6:30 P 6:27
:53 S 1:35 1:24 1:24
S S S
:16 T :20 :20 :20
T T T
P 42:04 P 42:08 P 42:32 P 41:24 P 41:13 P 40:20
MIG ROUGH S :42 S :42 S :42 S 1:24 S 1:24 S :42
T :16 T :16 T :16 T :24 T :24 T :16
P
S
13:57
1:08 WELD P
S
7:10
1:39
GRIND Q 2:36 Q 1:32 Q :12 Q 1:13 Q 0 Q 0
T :20 T :24
 3:17  1:58  2:37 Q 6:19  21:45 Q 9:26  18:39  8:14  16:14
MIG
MIG P 6:27 WELD  7:47
S 1:32
P
S
27:50
1:23
WELD T
Q
:20
19:33
T :24
Q 6:19
ROUGH
ROUGH  45:38  44:38  43:42
P 34:00 P 6:53
GRIND
S 1:27 GRIND S 1:36
T :28
Q 6:19  42:14
T
Q
:24
25:46
 34:39
164
Acknowledgements
• Heng Huang and Smart Khaewsukkho (PFAST

Development Team)
• Brad Derflinger, Zahir Khaswala, Jason Pereira (Graduate
Students)
• National Science Foundation
• Advanced Technology Institute
• R&D Enterprise Team (DLA J339)
• Logistics Research and Development Branch (DLA-DSCP)
• Forging Industry Association (FIA, www.forging.org)
165
Value Stream Mapping of a Complete Product
Shahrukh A. Irani and Jin Zhou
Columbus, OH 43210
Introduction
Lean Thinking, a concept that is based on the Toyota Production System, extends
continuous improvement efforts to reduce the costs of serving customer/s beyond the
physical boundaries of a manufacturing facility, by including the suppliers, distributors
and production system that support the manufacturing function [Womack and Jones,
1996]. These improvements and cost reductions are achieved by eliminating the muda
(wastes) associated with all activities performed to deliver an order to a customer. Wastes
are defined as “all activities that consume resources (add costs to the product) but
contribute zero value to the customer.” According to Womack and Jones, there are five
steps for implementing Lean Thinking in an enterprise: 1) Define Value from the
perspective of the Customer, 2) Identify the Value Streams, 3) Achieve Flow, 4)
Schedule production using Pull, and 5) Seek Perfection through Continuous
Improvement. Womack and Jones define a Value Stream as “the set of all the specific
actions required to bring a specific product through the three critical management tasks of
any business: …problem solving, …information management, …physical
transformation”. Alternatively, Rother and Shook define a Value Stream as “all the
actions (both value-added and non-value-added) currently required to bring a product
through the main flows essential to every product” [Rother and Shook, 1999, p. 3].
Overview of Value Stream Mapping
Value Stream Mapping (VSM) is the process of mapping the material and information
flows required to coordinate the activities performed by manufacturers, suppliers and
distributors to deliver products to customers. Unlike the traditional process mapping
tools used by IE’s, VSM is a mapping tool that maps not only material flows but also
information flows that signal and control the material flows. This enhanced visual
representation facilitates the identification of the value-adding steps in a Value Stream
and elimination of the non-value adding steps, or wastes (muda). Using VSM, many
OEM’s and their top-tier suppliers have changed their existing facility layouts, as well as
existing systems for material handling, inventory control, purchasing and scheduling, to
reduce the total throughput times of orders and current levels of work-in-process (WIP)
inventories.
A typical VSM project involves the development of maps: (1) a Current State Map and
(2) one or more Future State Maps that represent progressive improvements in the
Current State Map. In the Current State Map, one would normally start by mapping a
product family that accounts for a significant proportion of the total annual production
volume and sales earnings (or even profit margin) of the company. Usually, the material
© Shahrukh A. Irani and Jin Zhou

166
flow is mapped on an 11 X 17 sheet of paper using appropriate icons. The (material) flow
of the product is traced back from the final operation in its routing to the storage location
for raw material. Relevant data for each operation, such as the current schedule (push,
pull, and order dispatching rules in effect at any process ex. FIFO) and the amount of
inventory in various queues, is recorded on the map. The information flows are also
incorporated to provide demand information, which is an essential parameter for
determining the “pacemaker” process in the manufacturing system for which the Current
State Map is being developed. After both material and information flows have been
mapped, a time-line is displayed at the bottom of the map showing the processing time
for each operation and the transfer delays between operations. The time-line is used to
identify the value-adding steps, as well as wastes, in the current system. A comparison of
the processing times and the takt time (calculated as Available Capacity/Customer
Demand) serves as a preliminary measure of the value and wastes in the current system.
This takt time is mostly used as an ideal production rate for each operation to achieve.
Ideally, the cycle time for each operation in a Value Stream should be less than or equal
to the takt time.
Based on the Current State Map, a Future State Map is generated for improving the
value-adding steps and eliminating the non-value adding steps (waste) in the current
system. Based on the concepts of Lean Thinking, Rother & Shook provide seven
guidelines to follow when generating the Future State Map for an improved
manufacturing system (Rother and Shook, 1999, p. 44-54):
1. Produce to takt time

2. Develop continuous flow
3. Use supermarkets to control production where continuous flow does not extend
upstream
4. Schedule based on the pacemaker operation
5. Produce different products at a uniform rate (Level the production mix)
6. Level the production load on the pacemaker process (Level the production
volume)
7. Develop the capability to make “every part every (EPE) <time period>”
Pros of Value Stream Mapping: An Industrial Engineering Viewpoint
 Relates the manufacturing process to supply chains, distribution channels and

information flows.
 Integrates material and information flows.
 Links Production Control and Scheduling (PCS) functions such as Production

Planning and Demand Forecasting to Production Scheduling and Shopfloor Control
using operating parameters for the manufacturing system ex. takt time which
determines the production rate at which each processing stage in the manufacturing
system should operate.

167
 Helps to unify several IE techniques for material flow analysis, such as Production
Flow Analysis (PFA), Business Process Reengineering (BPR), and Process Analysis
and Improvement (PA&I) that, to date, have been taught and implemented in
isolation.
 Provides important descriptive information for the Operation and Storage icons in the
standard Flow Process Charts used by IE’s.
 Forms the basis for implementation of Lean Manufacturing by designing a

manufacturing system based on the complete dock-to-dock flow time for a product
family.
 Provides a company with a “blueprint” for strategic planning to deploy the principles
of Lean Thinking to facilitate their transformation into a Lean Enterprise.
Cons of Value Stream Mapping: An Industrial Engineering Viewpoint
 Fails to map multiple products that do not have identical manufacturing routings or
assembly process flows.
 Fails to relate Transportation and Queuing delays, and changes in transfer batch sizes
due to poor plant layout and/or material handling, to operating parameters (ex.
machine cycle times) and measures of performance (ex. takt time)1 of the
manufacturing system.
 Lacks an economic measure for “value”, such as profit, throughput, operating costs,
inventory expenses, etc. unlike the Flow Process Charting technique used by IE’s.
 Lacks the spatial structure of the facility layout, and how that impacts inter-operation
material handling delays, the sequence in which batches enter the queue formed at
each processing step in the manufacturing routing/s, container sizes, trip frequencies
between operations, etc.
 Tends to bias a factory designer to consider only those strategies2, such as continuous
flow, assembly line layouts, kanban-based Pull scheduling, etc., that are suitable
mainly for high-volume low-variety (HVLV) manufacturing facilities.
 Fails to consider the allocations and utilization of an important resource – factory

floor space – for WIP storage, production support, material handling aisles, etc.
1
Reasons for this could be (a) the impact of a poor facility layout on order throughput, product quality and
operating costs is assumed to be trivial by the developers of VSM or (b) superimposing all the information
contained in a VSM onto a CAD drawing of the facility layout reduces the readability of the map.
2
These are design and operational strategies that are suited mainly for low-variety high-volume (LVHV)
facilities, such as automotive OEM’s and their Tier 1 or Tier 2 suppliers, and not the sub-tier suppliers and
other Make-To-Order manufacturers who operate high-variety low-volume (HVLV) facilities.

168
 Fails to show the impact that in-efficient material flows in the facility ex.
backtracking, criss-cross flows, non-sequential flows, large inter-operation travel
distances, etc. have on WIP, order throughput and operating expenses.
 Fails to handle the complete BOM (Bill Of Materials) of a product since that usually
results in a branched and multi-level Value Stream.
 Fails to factor queuing delays, sequencing rules for multiple orders, capacity
constraints, etc. in any map3.
 Lacks the capability, due to the manual mapping method, for rapid development and
evaluation of multiple “what if” analyses required to prioritize different alternatives
for improving a Current State Map when time and/or budget constraints exist.
Value Network Mapping (VNM)
A fundamental limitation of Value Stream Mapping (VSM) is that it is a manual method

for mapping and analysis of the flows of products, materials, people, information, etc. in
manufacturing facilities [Rother and Shook, 1999, p. 19]. The limitations of this “pencil
and paper” method become especially obvious when it is deployed in a typical high-
variety low-volume (HVLV) facility that makes a complex fabricated assembly or a large
mix of components with different manufacturing routings. The task of generating a
Current State Map by hand, for even a small sample of 15-20 parts using 10 or more
different workcenters, is identical to the mapping of multi-product flows to design a
facility layout [Apple, 1977] because it is a frustrating, iterative and time-consuming
effort! To address this problem, the developers of VSM simply state that “… (when)
many value streams have multiple flows that merge… draw such flows over one another
… but do not try to draw every branch if there are too many. Choose the key components
first, and get the others later if you need to … just draw the flow for one or two main raw
materials” [Rother and Shook, 1999, p. 24]. Unfortunately, their manual approach to
identify and aggregate identical or similar value streams with common process steps
often results in numerous revisions of the locations of the process boxes in the Current
State Map. In addition, incorrect location of the various process boxes in the Current
State Map could unnecessarily make the material flows in the map appear as a chaotic
spaghetti diagram4, such as shown in Figure 9. Hence, in order to deploy VSM in any
HVLV manufacturing facility, it is important to first draw a Current State Map that is
clutter-free with minimum criss-crossing of the material flow paths of multiple product/s
sharing common workcenters.
In this paper, we propose a computer-aided method for HVLV manufacturing facilities –

Value Network Mapping (VNM) – that is an effective alternative to the manual method
of Value Stream Mapping. Given the network of interacting value streams corresponding
3
This could be easily and effectively done if queuing network analysis, simulation or a Finite Capacity
Scheduling (FCS) software were used to develop and model the performance of the manufacturing system
represented in a Current State Map.
4
For further details, please refer to [Muther 1955, Chapter 15, Pages 193-209].

169
to an assembled product or a large sample of different parts, VNM can (a) retain the
parent-child relationships in the assembly and (b) aggregate the value streams of
components and sub-assemblies with identical, or similar, manufacturing routings. In
essence, when the process steps contained in different VSMs are not absolutely identical,
VNM helps to aggregate similar value streams “…. in such a way that several products
can pass through each step with some slight detours if required, as in a manufacturing cell
…” [Womack and Withers, www.lean.org].
An Illustrative Example of Value Network Mapping
In a typical Make-To-Order manufacturing facility, a large number of parts from “feeder”

shops (or departments), such as machining, stamping, welding, injection molding,
casting, etc. flow into the assembly department in the facility [Costanza, 1996, Chapter
3]. This situation is exemplified by the Operations Process Chart (OPC)5 in Figure 1 for
a simple gate valve assembly described in the literature [Apple, 1977]. When creating a
map for this complete product, the material flow portion of the VNM must retain (a) the
assembly precedence relationships between the different in-house and purchased
components and subassemblies and (b) the material flow routes of the individual
components that are manufactured and assembled into the final product. This is because
a primary end-result is the design of a focused factory layout for the gate valve assembly
that exhibits “lean” (waste-free) flow of materials at all stages of realization of the final
product. In order to make materials flow, the factory layout should (a) minimize the total
travel distance for all (seven) components until they reach the assembly line, (b)
minimize the duplication/splitting of identical processes (or operation types) at multiple
(non-adjacent) locations in the layout, (c) identify the locations for Point-Of-Use storage
of kits of parts [Costanza, 1996, Chapter 5] and (d) identify potential bottlenecks in the
network where capacity constraints could result in throughput delays [Goldratt and Fox,
1986]. Using suitable algorithms in the PFAST package [Irani et al, 2000], the
spreadsheet in Table 1 representing the Operations Process Chart (OPC) for the gate
valve assembly was manipulated and rearranged, as shown in Table 2. This reordering
was done to aggregate identical routings or to place side-by-side routings with common
process steps, as shown in Table 3. Based on Table 3, the original OPC in Figure 1 was
redrawn, as shown in Figure 2.
Utility of a Value Network Map
The locations for the different process boxes in Figure 2 become the basis for drawing the
Value Network Map for the gate valve assembly on a sheet of paper. It minimizes criss-
cross flows among process boxes that could have been incorrectly located in a hand-
drawn Current State Map for the same product. Thereby, the computer-aided method of
Value Network Mapping (VNM) helps to reduce the chaos (and frustration) of
implementing Value Stream Mapping in complex manufacturing facilities.
Based on the initial VNM shown in Figure 2, it may be required to determine if certain
workcenters must be duplicated at several locations to eliminate criss-cross flows in the
5
For further details, please refer to [Muther, 1955, Page 176, Figure 14-1].

170
focused factory. Figure 3 and Figure 4 suggest alternative scenarios for equipment
duplication that could be evaluated using criteria such as capital investment costs, WIP
costs and reductions in operational wastes, especially queuing and material handling
delays.
A Real-World Example of Value Network Mapping
This section is based on a project to design a modular Point-Of-Use layout for a

fabrication assembly facility producing industrial scales [Zhou and Irani, 2000]. Figure 6
shows the original OPC that was generated from the Indented Bill Of Routings for the
Product # 2185002065-A (See Appendix). This visual representation of the product that
is provided by the OPC clearly shows three subassemblies TB201990, TC201989-1,
TC202034-1, and the company-specified storage locations X, Y, Z for different parts.
Figure 7 shows the original OPC rearranged to show families of parts with identical or
similar manufacturing routings whose value streams could be merged or aggregated into
a single value network. Figure 8 shows the current layout of the assembly facility.
Figure 9 shows the spaghetti diagram corresponding to the flows of all components and
subassemblies, including the final assembly, in the existing facility layout. Several
important observations can be made from this spaghetti diagram:
1. The chaotic flows in this spaghetti diagram would be ignored had one used Value
Stream Mapping and generated a Current State Map for the material flow
network.
2. The significant occurrence of backtracking and cross flows in the facility, such as
the flows 763SHR16761PUNCH, 761PUNCH763PRBRK,
761ASY811ASM, 770WHLBR 771HCFIN, etc. would be ignored had one
used Value Stream Mapping and generated a Current State Map for the material
flow network.
3. Why is it necessary to have all three of the current kitting locations X, Y and Z
shown in Figure 8?
Figure 10 is an extension of Figure 7 and shows similar parts from the three major
subassemblies that could be produced in a single cell. The potential for aggregation of
identical and/or similar manufacturing routings into one or more sub-networks of value
streams in the overall Value Network Map for the product is illustrated in Figure 11.
This is reasonable since the routings of parts that constitute subassembly TB201990 are
completely contained in the routings of parts that constitute subassembly TC201989-1.
Thus, a single “feeder” cell could be designed to produce both these subassemblies.
Figure 11 also shows that there is only one common work center - 761PUNCH –
common to the value streams for the two subassemblies, TC201989-1 and TC202034-1.
Therefore, it is further possible to implement two “feeder” cells, one to produce
TB201990 and TC201989-1 and the other to produce TC202034-1. Subsequently, these
cells could feed parts into a common supermarket located at the common Work Center
761PUNCH6. Figure 12, which is the initial drawing of the Value Network Map for the
complete product, easily suggests which pairs of work centers should have been located
adjacent to each other to achieve waste-free material flows in the focused factory. For
6
Detailed analysis was not done to determine if this workcenter could serve as the Drum in a Drum-Buffer-
Rope scheduling system [Goldratt and Fox, 1986] for the focused factory.

171
example, the forward by-pass flows such as 761DBURR761HSTUD suggest a U-
shaped flowline layout for the string of machines
761DBURR761FORM761TWELD761POLSH 761HSTUD/761PEM. Using
the Value Network Map in Figure 12, the Point-Of-Use focused factory layout for the
facility shown in Figure 13 could easily be designed to achieve waste-free material flows
in a Point-Of-Use focused factory layout [Costanza, 1996, Chapter 3]. In fact, the two
spaghetti diagrams in Figure 9 and Figure 13 constitute the material flow networks in the
as-is Current State Map and the to-be Future State Map for the manufacturing facility.
Limitations and Future Enhancements in Value Network Mapping
Since a typical Value Network Map will involve large numbers of value streams and
process boxes, a clutter-free drawing of the complete material flow network is a must.
Figures 5(a)-(c) present a preliminary idea of a Bubble Diagram-like grid [Muther, 1955,
p. 196, Figure 15-4] on which the process boxes could be entered in order to make
adjacent strongly-connected pairs of workcenters in the material flow network. Further,
the size of paper on which the map is drawn could constrain the number of process boxes,
and therefore number of value streams, that could be included in a single map. In which
case, for complex products and large samples of components, connections among
multiple maps will need to be established and maintained.
The icons used for Value Stream Mapping are relevant mainly for assembly line-like
repetitive flow systems for low-variety high-volume (LVHV) manufacturing facilities.
Jobshops and Make-To-Order manufacturing systems have considerably more complex
material flow networks, and produce orders to customer-specified due dates using finite
capacity scheduling methods. Therefore, a new set of icons is being developed for VNM
that can be obtained for evaluation from the authors on request.
How does one show all the data for a large number of components at each workcenter?
And, if one were to incorporate details relating to production control, operations
scheduling and shopfloor control on the same map that contains the material flow
network, then the resulting map would easily become unreadable. Hence, it is desired to
develop a separate map showing the information flows involved in the manufacturing
system being studied.
Lastly, a typical Make-To-Order assembly facility produces a wide range of products that
use different combinations of parts and subassemblies, whose routings will therefore
feature different sets of workcenters located in the same facility. Hence, the proposed
method must be enhanced to represent, possibly aggregate, multiple OPC’s for different
products being produced in the same facility.
Conclusion
By automatically aggregating Value Streams with identical or similar material flow

routes, the Value Network Mapping (VNM) method offers significant advantages over
the manual method of Value Stream Mapping (VSM). VSM is inadequate for a typical

172
HVLV manufacturing facility, where a large number of value streams involving a large
number of value streams (and workcenters contained in those streams), is involved. In
contrast, VNM ensures that, when the individual Value Streams are drawn by connecting
the appropriate process boxes as per their manufacturing routing, a “spaghetti diagram”
results that has very few, if any, backtracking and criss-cross flows.
References
Apple, J. M. (1977). Plant Layout and Material Handling. New York, NY: John Wiley.
Costanza, J. (1996). The Quantum Leap .... in Speed-To-Market. Denver, CO: John
Costanza Institute of Technology, Inc.
Goldratt, E.M. & Fox, R.F. (1986). The Race. Croton-on-Hudson, NY: North River Press.
Irani, S.A., Zhang, H., Zhou, J., Huang, H., Udai, T.K. & Subramanian, S. (2000).
Production Flow Analysis and Simplification Toolkit (PFAST). International Journal of
Production Research, 38(8), 1855-1874.
Moore, R. & Scheinkopf, L. (1998). Theory of Constraints and Lean Manufacturing:

Friends or Foes? Chesapeake Consulting, Inc: www.chesapeake.com.
Muther, R.M. (1955). Practical Plant Layout. New York, NY: McGraw-Hill.
Rother, M. & Shook, J. (1999, June). Learning to See. Version 1.2. Brookline, MA: Lean
Enterprise Institute.
Zhou, J. & Irani, S.A. (2000, June 27-30). Design of modular layouts for fabrication-
based assembly facilities. Proceedings of the Third World Congress on Intelligent
Manufacturing Processes & Systems, Massachusetts Institute of Technology, Cambridge,
MA, and the International Institution for Production Engineering Research (CIRP), 62-
69.
Womack, J. P. & Jones, D. T. (1996). Lean Thinking: Banish Waste and Create Wealth in
your Corporation. New York, NY: Simon & Schuster.

173
Handle Cap Ferrule Body Gate Bushing Stem
0303 0501 0702 1305 1101 0901 0802
O-29 Cast O-25 Drill O-23 Bore O-16 Cast O-11 Cast O-5 Cast O-1 Turn
O-30 Clean O-26 Bore O-24 Cut O-17 Clean O-12 Clean O-6 Clean O-2 Thread
Parts Manufacturing
Portion of Facility
O-31 Ream O-27 Tap O-18 Mill O-13 Drill O-7 Drill O-3 Mill
Paint O-32 O-28 O-19 O-14 O-8 O-4

Paint Cut Drill Tap Bore Cut
0403
O-20 Bore O-15 Mill O-9 Turn
O-21 Tap O-10 Thread
O-22
Gasket SA-1
Countersink
1001
A-1
A-2
Grease
1201
A-3
Packing SA-2 A-4

0601
Assembly Portion
A-5
of Facility
A-6
Washer A-7
0204
Box Nut A-8

1402 0105
O-34 O-33 Clean
Staples
I -1
1503 SA-3
Label
1603
A-9
Figure 1 Operations Process Chart for the Gate Valve Assembly

174
Table 1 Initial Spreadsheet Representation of the Value Network Map
Parts
Handle Cap Ferrule Body Gate Bushing Stem
Cast Drill Bore Cast Cast Cast Turn
Clean Bore Cut Clean Clean Clean Thread
Ream Tap A-4 Mill Drill Drill Mill
Paint Cut A-5 Drill Tap Bore Cut
A-6 SA-2 A-6 Bore Mill Turn A-1
A-5 Tap A-2 Thread A-2
A-6 Countersink A-3 SA-1 A-3
A-3 A-4 A-1 A-4
A-4 A-5 A-2 A-5
A-5 A-6 A-3 A-6
A-6 A-4
A-5
A-6
Table 2 Final Spreadsheet Representation of the Value Network Map
Parts
Handle Body Gate Bushing Stem Ferrule Cap
Cast Cast Cast Cast
Clean Clean Clean Clean
Ream Mill
Paint Drill Drill Drill
Bore Bore
Tap Tap Turn Turn Drill
Countersink Mill Thread Thread Bore Bore
SA-1 Mill Tap
Cut Cut Cut
A-1 A-1 SA-2
A-2 A-2 A-2
A-3 A-3 A-3 A-3
A-4 A-4 A-4 A-4 A-4
A-5 A-5 A-5 A-5 A-5 A-5
A-6 A-6 A-6 A-6 A-6 A-6 A-6

175
Table 3 Aggregation of Common Process Steps in Multiple Value Streams
Parts
Cast
Clean
Ream Mill
Paint Drill
Bore Bore
Tap Turn Drill
Countersink Mill Thread Bore
SA-1 Mill Tap
Cut
A-1 SA-2
A-2
A-3
A-4
A-5
A-6
13 10 1. Cast
2. Drill
3. Bore
4. Cut
18 19 7
5. Clean
6. Thread
7. Ream
11 16 17 5 1 8. Tap
9. Mill
10. Paint
11. Countersink
14 15 8 2 12. SA-1
13. SA-2
14. A-1
15. A-2
12 9 3 16. A-3
17. A-4
18. A-5
6 4 19. A-6

176
0303 1305 1101 0901 0802 0702 0501
O-29 Cast O-16 Cast O-11 Cast O-5 Cast
O-30 Clean O-17 Clean O-12 Clean O-6 Clean
O-31 Ream O-18 Mill

Part Manufacturing
Portion of Facility
Paint O-32 O-19 O-13 O-7
Paint Drill Drill Drill
0403
O-20 Bore O-8 Bore
O-21 Tap O-14 Tap O-9 Turn O-1 Turn
O-22 O-15 Mill O-10 Threa d O-2 Threa d O-25 Drill
Countersink
O-3 Mill O-23 Bore O-26 Bore
O-27 Tap
Gasket
SA-1 O-4 Cut O-24 Cut O-28 Cut
1001
A-1
A-2
Grease
1201 Packing SA-2
0601
A-3
A-4
Assembly Portion
of Facility
A-5
A-6
Washer A-7
0204
Nut A-8
Box
0105
1402
O-34 O-33 Clean
Staples I -1
1503 SA-3
Label
1603
A-9
Figure 2 Rearranged Operations Process Chart for the Gate Valve Assembly

177
Cast
Clean
Ream Mill
Part Manufacturing
Portion of Facility
Paint
Paint Drill
0403
Bore
Drill
T ap T urn Bore
T hread T ap
Counters ink Mill Cut
Packing
SA- 2
SA- 1
0601 Gasket
Greas e
1001
1201
A-6 A-5 A-4 A- 3 A- 2 A- 1

Assembly Portion
of Facility
W as her A- 7
0204
Nut
A- 8
0105
Box
O-3 3 Clean
1402
O-3 4
I -1
Staples
A- 9 SA- 3 1503
Label
1603
Figure 3 Value Network Map for the Gate Valve Assembly: Alternative #1

178
Cast
Clean
Part Manufacturing
Ream Mill
Portion of Facility
Paint Drill
Bore Turn
Turn Tap Thread
Thread Countersink Mill Cut
Packing Gasket
SA-2 SA- 1
0601 1001
Grease
1201
Assembly Portion
A- 6 A- 5 A- 4 A- 3 A- 2 A- 1
of Facility
Washer A- 7
0204
Nut
A- 8
0105
Box
O- 3 3 Clean 1402
O- 3 4
I -1
Staples
A- 9 SA- 3 1503
Label
1603
Figure 4 Value Network Map for the Gate Valve Assembly: Alternative #2

179
11 1. Cast
2. Drill
3. Bore
4. Turn
14 19 20 8 5. Cut
6. Clean
7. Thread
8. Ream
12 17 18 6 1 9. Tap
10. Mill
11. Paint
12. Countersink
15 16 9 2
13. SA-1
14. SA-2
15. A-1
13 7 10 3 16. A-2
17. A-3
18. A-4
19. A-5
4 5 20. A-6
Figure 5(a) Bubble Diagram for Figure 3
1. Cast
2. Drill
3. Bore
4. Turn
19 20 11 8 5. Cut
6. Clean
7. Thread
18 1 8. Ream
14 17 12 6 9. Tap
10. Mill
11. Paint
5 9 2 10-1 12. Countersink
15
13. SA-1
14. SA-2
15. A-1
13 16 10-2 3 16. A-2
17. A-3
18. A-4
19. A-5
7-1 4-1 7-2 4-2 20. A-6
Figure 5(b) Bubble Diagram for Figure 4

180
11 1. Cast
2. Drill
3. Bore
4. Turn
14 19 20 8 5. Cut
6. Clean
7. Thread
8. Ream
12 17 18 6 1 9. Tap
10. Mill
11. Paint
12. Countersink
15 16 9 2
13. SA-1
14. SA-2
15. A-1
13 7 10 3 16. A-2
17. A-3
18. A-4
19. A-5
4 5 20. A-6
Figure 5(c) Bubble Diagram for Figure 1
811ASMLY
TB201990 TB600364-1 TC202034 -1 A14691400ATA800634 TB800629 - 7

771HCFIN
770WHLBR MN31004 MZ0901010289 MZ0909000050 TN201975 TN800654
510624370 MZ0901010035 MZ0901010379 TB100395 TN800587
763WELDM
761ASMLY
Y Y
T201972-4300 T201972-6700 TA201974 TB201971
13640300A MZ0901010166 TN100429 TN100432 TB100423 MZ060200142
763PRBRK 763PRBRK 764WELDM TB100408-5 TB100426
MZ0901010091 TA800218 TN100430
763SHR16 761SPWLD 761POLSH
763SHR16
Y
TB201970 TB201973 761HSTUD 761TWELD
MZ1304010054 MZ1304010054
763PRBRK
TA000009 TB100413-5 TB100416 TN200671 761FORM2
761PUNCH 761POLSH 761DBURR
761DBURR
763SHR16 TC201989-1
761TWELD 761PUNCH
771HCFIN 761PUNCH
MZ1301010034 761FORM2 MZ1304020009 MZ1304020009

770WHLBR
761DBURR
763WELDM
761PUNCH
MZ1304020031
Z Z Z Z Z X X X Y X
T201962-6544 T201963-6431 T201964-6544 T201965-4738 T201966-4738 TA201967 TA201968 TA201969 TC201501-105 TN202444
MZ0901020056
763PRBRK 763PRBRK 763PRBRK 771VIKIN 771VIKIN 763ACRO 763DRLPR 763DRLPR
763PRBRK 763PRBRK
763IRONW 761PUNCH 763ACRO 764PSMAO
763SHR16 763SHR16 763SHR16 763BDSAW 763BDSAW 763IRONW
763SHR16 763SHR16 763BDSAW 764PSMAP
MZ1301010034 MZ1301010034 MZ1301010034 MZ1307010089 MZ1307020040 MZ1307010001

MZ1301010034 MZ1301010034 MZ1307010089 MZ1302010028
X Y Z STORAGE LOCATIONS
Figure 6 Operations Process Chart for Product #2158002065 - A

181
811ASMLY
TB201990 TB600364-1 TC202034 -1 A14691400A TA800634 TB800629 - 7

771HCFIN
770WHLBR MN31004 MZ0909000050 TN201975 TN800654

MZ0901010289
510624370 MZ0901010035 MZ0901010379 TB100395 TN800587
763WELDM
761ASMLY
Y Y
TA201974 TB201971 T201972-4300 T201972-6700
13640300A MZ0901010166 TN100429 TN100432 TB100423 MZ060200142
764WELDM 763PRBRK 763PRBRK MZ0901010091 TN100430 TB100408-5 TB100426
TA800218
761SPWLD 761POLSH
763SHR16 763SHR16
Y
TB201970 TB201973 761HSTUD 761TWELD
MZ1304010054 MZ1304010054
763PRBRK
TA000009 TB100413-5 TB100416 TN200671 761FORM2
761PUNCH 761POLSH 761DBURR
761DBURR
763SHR16 TC201989-1
761TWELD 761PUNCH
771HCFIN 761PUNCH
MZ1301010034 761FORM2 MZ1304020009 MZ1304020009

770WHLBR
761DBURR
763WELDM
761PUNCH
MZ1304020031
X X X Y X Z Z Z Z Z
TA201968 TA201969 TA201967 TC201501-105 TN202444 T201964-6544 T201966-4738 T201962-6544 T201963-6431 T201965-4738
MZ0901020056
771VIKIN 763ACRO 771VIKIN 763DRLPR 763DRLPR 763PRBRK 763PRBRK 763PRBRK 763PRBRK 763PRBRK
763ACRO 764PSMAO 763IRONW 761PUNCH
763BDSAW 763BDSAW 763IRONW 763SHR16 763SHR16 763SHR16
763BDSAW 764PSMAP 763SHR16 763SHR16
MZ1307020040 MZ1307010089 MZ1307010001 MZ1301010034 MZ1301010034 MZ1301010034

MZ1307010089 MZ1302010028 MZ1301010034 MZ1301010034
Part families identified by PFAST

Figure 7 Operations Process Chart for Product # 2158002065 – A with Part Families
761
761
HSTUD/
FORM
LASER 761PEM 764BURNM 770PANG
761PUNCH
761AMADA
761 761
DBURR TWELD
761 761
761ASY
POLSH SPWLD
764BRAKE
764SHR20
764UNPUN 764SUBMR
764BEVLR
812ASM
764PSMA 764CDROB 770WHLBR

Z
763DRLPR
763SHR16 763PRBRK X 763FSROB 764/763 WELDM 770MODBO
Y 763IRONW
763
771
MONRC 763
VIKIN 771HCFIN/
MON45 811ASM Shipping
763BDSAW
771 771TEXTR
763ACRO 771 FSWHL
SNDBL
Figure 8 Current Layout of Assembly Facility

182
761
761
HSTUD/
FORM
LASER 761PEM 764BURNM 770PANG
761PUNCH
761AMADA
761 761
DBURR TWELD
761 761
761ASY
POLSH SPWLD
764BRAKE
764SHR20
764UNPUN 764SUBMR
764BEVLR
812ASM
764PSMA 764CDROB 770WHLBR

Z
763DRLPR
763SHR16 763PRBRK X 763FSROB 764/763 WELDM 770MODBO
Y 763IRONW
763
771
MONRC 763
VIKIN 771HCFIN/
MON45 811ASM Shipping
763BDSAW
771 771TEXTR
763ACRO 771 FSWHL
SNDBL
Figure 9 Spaghetti Diagram for Product # 2158002065-A

811ASMLY
TB201990 TB600364-1 TC202034 -1 A14691400ATA800634TB800629 - 7

771HCFIN
770WHLBR MN31004 MZ0901010289 MZ0909000050 TN201975 TN800654

510624370 MZ0901010035 MZ0901010379 TB100395 TN800587
763WELDM
761ASMLY
TA201974 TB201971 T201972-4300 T201972-6700

764WELDM 13640300A MZ0901010166 TN100429 TN100432 TB100423 MZ060200142
763PRBRK 763PRBRK
MZ0901010091 TA800218 TN100430 TB100408-5 TB100426
763SHR16 763SHR16 761SPWLD 761POLSH
TB201970 TB201973
MZ1304010054 MZ1304010054 761HSTUD 761TWELD
763PRBRK
761FORM2
761PUNCH
TA000009TB100413-5 TB100416 TN200671
761DBURR
761POLSH 761DBURR
763SHR16
761PUNCH
761TWELD 761PUNCH
MZ1301010034
MZ1304020009
761FORM2 MZ1304020009
TC201989-1
771HCFIN 761DBURR
770WHLBR 761PUNCH
763WELDM MZ1304020031
MZ0901020056 TA201968 TA201969 TA201967 TC201501-105 TN202444 T201964-6544 T201966-4738 T201962-6544 T201963-6431 T201965-4738
771VIKIN 763ACRO 771VIKIN 763DRLPR 763DRLPR 763PRBRK 763PRBRK 763PRBRK 763PRBRK 763PRBRK
763ACRO 764PSMAO 763IRONW 761PUNCH

763BDSAW 763BDSAW 763IRONW 763SHR16 763SHR16 763SHR16
763BDSAW 764PSMAP 763SHR16 763SHR16
MZ1307020040 MZ1307010089 MZ1307010001 MZ1301010034 MZ1301010034 MZ1301010034
MZ1307010089 MZ1302010028 MZ1301010034 MZ1301010034
Figure 10 Comparison of Value Streams across Subassemblies

183
811ASMLY
TB201990 TB600364-1 TC202034 -1 A14691400A TA800634 TB800629 - 7

771HCFIN
770WHLBR MN31004 MZ0909000050 TN201975 TN800654

MZ0901010289
510624370 MZ0901010035 MZ0901010379 TB100395 TN800587
763WELDM
761ASMLY
TA201974 TB201971 T201972-4300 T201972-6700

13640300A MZ0901010166 TN100429 TN100432 TB100423 MZ060200142
764WELDM TC201989-1 TB100408-5 TB100426
MZ0901010091 TA800218 TN100430
771HCFIN 761SPWLD
763PRBRK
770WHLBR 761HSTUD
761PUNCH
763WELDM 761POLSH
763SHR16
761TWELD
761FORM2
MZ0901020056 TA201968 TA201969 TA201967 TC201501-105 TN202444 T201964-6544 T201966-4738 T201962-6544 T201963-6431 T201965-4738 761DBURR
763DRLPR 761PUNCH
764PSMAO
764PSMAP
763PRBRK
763IRONW
761PUNCH Sub-network 1
763SHR16
Sub-network 2
771VIKIN
Sub-network 3
763ACRO
763BDSAW
Figure 11 Aggregation of Multiple Value Streams in Product # 2158002065 – A
761PUNC 761DBUR
761FORM2 761TWELD 761POLISH 761HSTUD 761SPWLD
H R
761ASMLY
771HCFI
763SHR16 763PRBRK 763/764WELDM 770WHLBR 811ASMLY
N
763IRONW 763DRLPR 763ACRO 771VIKIN Sub-network 1
Sub-network 2
764PSMA 763BDSAW Sub-network 3
Figure 12 Value Network Map for Product # 2158002065 – A

184
Sub-network 1
Sub-network 3
761 761 761

DBURR HSTUD/ SPWLD
761PUNCH 761PEM
811ASM
761 761 761 761ASY
FORM TWELD POLSH
763SHR16 763PRBRK 764/763 WELDM
763IRONW
771 / TEXT
771HCFIN
770WHLBR
763DRLPR 771
R
VIKIN
764PSMA
763BDSAW
763ACRO
Sub-network 2
Figure 13 Point-Of-Use (POU) Facility Layout based on Value Network Map

185
APPENDIX
Indented Bill Of Routings for Product # 2185002065-A

186
187
188
189
JobShop Lean Workshop
Integration of Lean Thinking and Theory of Constraints

in a Custom Forge Shop
Presenters:
Lily Susanto
Christine Djunaedi

Project Advisor: Project Support:
Dr. Shahrukh Irani Ryan Engelbrecht

Associate Professor
February 10-11, 2004
Jobshop Lean: Lean Manufacturing in Custom Forge Shops 190

Project Objectives
• Application of Theory of
Constraints to supplement
lean thinking in custom
forge shops
• Evaluation of the cost

benefit analysis of
applying lean thinking in
custom forge shops

Lean Thinking*
through
Continuous
Improvement
*Source: Womack, J.P. and Jones, D.T. (1996), Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New
York, NY: Simon and Shuster. ISBN 0-684-81035-2.

Lean Thinking… Not Easy in JobShops?
Same measures apply to a JobShop: Large variety of parts and part
families are unknown:
• Quality
• Pick a large sample of parts
• On Time Delivery
• Form part families using
• Cost
PFAST
• Flexibility
through
Continuous
Improvement
Schedule the drum

in the VNM: Cellular layout is often not
possible here due to intercell
• Exploit the Drum/s (capacity- machine sharing and external
constrained workcenters) monuments:
• Use DBR scheduling to • Hybrid layout with virtual cells
control WIP and release of
orders into the system • Use strategies for operating
cells with external monuments

Case Study - An Overview of a
Custom Forge Shop
• Founded in 1923
• Located near Chicago, IL
• More than 300 forgings Testing
(mostly brass and
aluminum)
• Serves variety of
industrial customers
Forgings

Lean Thinking in JobShops
P-Q-R-$ Formation of Part

Pick a Part Family
Analysis Families using PFAST
Develop the VNM for

this Part Family
Enhance the VNM with Flow Process Charts and Spaghetti Diagrams
to identify the Seven Types of Waste
TQM Six
Tools Identify the Bottleneck Process in the VNM Sigma
Method
s
Exploit/Elevate the Bottleneck Lean Toolkit
Analysi
s
Performance Evaluation of the VNM (using MPX, ARENA, CPLEX) to
compute their Impact on Throughput, WIP, and Operating Expenses
NO
Has the entire VNM for this part family been optimized?
YES
Subordinate the Value Network to the Beat of Have all part families been NO
the Bottleneck using DBR/FCS Scheduling investigated?
YES
STOP

PFAST Analysis Report
• Routings of Parts
• P-Q Analysis and P-Q-$ Analysis
• From-To Chart
• Flow Diagrams for Current Layout
• Machine-Part Matrix Analysis
• Dendograms for Part Family Formation
• Modified Multi-Product Process Chart

P-Q-$ Analysis
P-Q-$ Analysis
160,000.00
140,000.00
120,000.00
Confidential
100,000.00
Quantity
80,000.00
60,000.00
40,000.00
20,000.00
0.00
$0.00 $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00
Revenue

P-Q-$ Analysis (contd.)
P-Q-$ Analysis
Objective:
To select a sample of forgings 5,000.00
that accounts for 80% of 4,500.00
total revenue earned

4,000.00
3,500.00
CONFIDENTIAL
Criterion:
SELECT a part to include in Quantity
3,000.00
the sample 2,500.00

Parts
2,000.00
not in
IF (Q > 3000 AND $ > 25000) 1,500.00 Sample
1,000.00
OR
500.00
IF ($ > 50000) 0.00

$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00 $70,000.00 $80,000.00 $90,000.00 $100,000.0
0
Revenue

Formation of Part Families
using PFAST
Six part families were formed (only Family 5 and Family 6 shown here)
Complete PFAST report available in Appendix

Value Stream Mapping
PRODUCTION CONTROL
RAW MTL ERP DEMAND

SUPPLIER
Transpor
tation
3.7 days
on
average
Bottleneck
ortation
Transp
SAWING VIBRATORY FORGING TRIMMING INSPECTION SHIPPPING
I I I I
I I
1025 pcs 1025 pcs
1025 pcs 1025 pcs 1 Days
2 Days
4 Days 1 Days
C/T = 11 sec C/T = 12 sec C/T = 22 sec C/T = 14 sec C/T = 7.3 sec
C/O = 20 min C/O = C/O = 36 min C/O = 36 min C/O =
Downtime = Downtime = Downtime = Downtime= 1h/ Downtime =
VSM: A visual1 Operator tool that helps
Operator
to understand
1 Operator the information and 2wk
Operator
Operator material flows for a part
family, from 2raw
Shift
Mat‟l Handling:
material Iuntil
Shift shipment 3 Shift
to the customers.
Mat‟l Handling:
Shift
Mat‟l Handling:
The method allows us to
Shift
Mat‟l Handling:
Mat‟l Handling:
identify the bottleneck/pacemaker
Forklift Forklift in a facility andForklift
Forklift
eliminate it Forklift
by using a process of
continuous improvement, such as Theory of Constraints (TOC). In the case of a
jobshop, due to the large number of interacting value streams, a Value Network Map
for each product family must be analyzed.

Example of Value Network Map
Forecasted for PRODUCTION CONTROL
big orders
Once the order is received
for small orders
RAW MATERIAL ERP DEMAND
SUPPLIER
4 -6
FORGING-1050 FORGING-1060
wee
ks
C/T = 22 sec C/T = 22 sec

C/O = 36 min C/O = 36 min
I
Downtime=2h/wk Downtime=2h/wk
Ship Via
1 Operator 9 Days 1 Operator UPS
3 Shift Forklift I
3 Shift
1 Days
Forklift
I
SAWING VIBE (5050) FORGING - 1040 FORGING-1012 Punch Press-

2040
I I I I
4 Days C/T = 1800 sec 4 Days C/T = 22 sec 1 Days C/T = 22 sec 5 Days C/T = 14400 sec
C/T = 31 sec
Tugger Forklift Forklift Forklift C/O = min
C/O = 20 min C/O = C/O = 36 min C/O = 36 min
Downtime = Downtime = 2h/wk Downtime=2h/wk Downtime =
Downtime =
Operator 1 Operator 1 Operator Operator
1 Operator
Shift 3 Shift 3 Shift Shift
2 Shift
Punch Press- INSPECTION SHIPPPING

TRIMMING-2030 VIBE (5050) FORGING-1060
2050
I I I
I I
I
0 Days 3.4 Days
1 Days 9 Days 5 Days C/T = 14400 sec
C/T = 14 sec 1 Days C/T = 22 sec Forklift C/T = 7.3 sec
Forklift Forklift Forklift
Forklift C/T = 1800 sec C/O = min C/O =
Downtime= 1h/ C/O = Downtime = Downtime =
Downtime=2h/wk
2wk Downtime = I Operator
Operator 1 Operator Operator
Operator 9 Days Shift Shift
Shift 3 Shift
Shift Forklift
5 Days
I Forklift
I VIBE (5050) INSPECTION SHIPPPING

TRIMMING-2030 FORGING-1050
0 Days I I I
I
Forklift
0 Days 3.4 Days
9 Days C/T = 22 sec
1 Days C/T = 1800 sec C/T = 7.3 sec
C/T = 14 sec Forklift
Forklift Forklift
C/O = 36 min C/O = 36 min C/O = C/O =
Downtime= 1h/ Downtime=2h/wk Downtime = Downtime =
2wk
Operator 1 Operator Operator Operator
I
Shift 3 Shift Shift Shift
1 Days
Forklift
• Only Part Family 5 is shown here

TRIMMING-2030
C/T = 14 sec
C/O = 36 min
• Full-size VNM in Appendix

Downtime= 1h/
2wk
Operator
Shift

Value Stream Map
( 8066A-Regular Order)
big orders
for small orders
SUPPLIER
4 -6
wee
ks
SAWING VIBRATORY BLOCKING-1060 FORGING- SOLUTION-

1060 8010
I I I I
Ship Via
4 Days 9 Days 1 Days 5 Days UPS
C/T = 31 sec Tugger C/T = 1800 sec Forklift C/T = 22 sec
Forklift Forklift
C/T = 22 sec C/T = 14400 sec
C/O = 20 min C/O = C/O = 36 min C/O = 36 min C/O = min
Downtime = Downtime = Downtime = 2h/wk Downtime=2h/wk Downtime =
1 Operator Operator 1 Operator 1 Operator Operator
2 Shift Shift 3 Shift 3 Shift Shift
INSPECTION SHIPPPING
TRIMMING- ACID DIPPING AGING-8030 VIBRATORY
2010
I I I I I I
1 Days 4 Days 0 Days 1 Days 0 Days 3.4 Days

Forklift C/T = 14 sec Forklift C/T = 900 sec Forklift C/T = 36000 sec Forklift C/T = 1800 sec Forklift C/T = 7.3 sec
C/O = 36 min C/O = None C/O = C/O = C/O =
Downtime= 1h/
Downtime = Downtime = Downtime = Downtime =
2wk
Operator Operator Operator Operator Operator
Shift Shift Shift Shift Shift
31 secs 1800 secs 22 secs 22 secs 14400 secs 14 secs 900 secs
4 days 9 days 1 days 5 days 1 days 4 days 0 days
Sawing Vibratory Blocking Forging Solution Trimming Acid Dip
36000 secs 1800 secs 7.3 secs
1 days 0 days Lead Time = 25.63 days VAR = 0.025
Processing Time = 54996.3 secs
Aging Vibratory Inspection
VSM superimposed on Layout and Summary of VSM Analysis - Available in Appendix

Spaghetti Diagram for Part Family # 5

Theory of Constraints – An Overview
THEORY OF CONSTRAINTS – A process for continuous
improvement that focuses on eliminating the bottleneck in a
production flow network (or chain)
• Identify : Identify the bottleneck
• Exploit : Improve utilization of
available capacity on the
bottleneck
• Elevate : Find new capacity sources
or reduce the load on the
bottleneck
• Subordinate : Schedule the remaining
workstations and „gate‟ the
release of orders based on
the bottleneck capacity

Identify the Bottleneck
Vibe Waiting Time for Various Operations
13%
Waiting time for the operation (days)

Forge 25.00
Inspection 27%
4% 20.00
Aging Cumulative
6% 15.00
10.00
5.00
Acid Dip
14%
0.00
Trimming
ng
ip
be
g
e
n
n
rg
tio
in
io
D
Vi
gi
16%
t
Fo
lu
ec
d
A
im
ci
So
sp
A
Tr
In
Solution
Operation
20%
Waiting Time Distribution for Various Operations
The forging presses (1030 and1060) are the

bottleneck:
 Very high percentage of waiting time (27%)
 Presses are not interchangeable
 Maximum WIP located in front of them
Identify the Bottleneck (contd.)
1021 1060 1050 1012 ELECT.
1040
COMP.
1020 1030
STORAGE EXIT
EXIT 1010
FORGE
4020 2050
EXIT EXIT
4010 4020 FORGE OFFICE 5040
K.O. AREA VIBE
2060 2045 2035 2040
2030 2040 2030 EXIT

DIE STORAGE
2030 2040 2010 SAWS
PUNCH PRESS
WATER
8030 ROD STORAGE
VIBE WOMEN
8010 TREAT
MEN
8030
8010 8010 STORAGE
LUNCH
VIBE HEAT ACID
ROOM
8010
SHIP.
ACID TREAT OFFICE
8010
DIP SHIPPING &
RECEIVING
TOOL INS. HOLD INSPECT
OFFICE DOCK
& DIE
INSPECTION
EXIT DEPT. EXIT
CAD
OFFICE
WOMEN
NURSE
MAINT. MAINT.
MEN
FINISHED
STORAGE
GOODS DEPT. OFFICE
CONF.
ROOM
Flow of Part Family #5
EXIT
Location of Bottleneck
Exploit/Elevate the Bottleneck
• Low Value Added Ratio

(VAR) for any order is
due to long waiting time
between processes
• Poor layout slows and
creates large distances
between process steps,
and increases material
handling times

Exploit/Elevate the Bottleneck (contd.)
• Multi-directional and
Forge Presses
chaotic flow of
materials Grinders Vibratory
(Al slug
• Long material vibratory m/c)
handling distances
Punch Presses Saws
• Poor lines of sight
Vibra
tory– Rod
Brass Heat
Material Flows in Slug
Treatment
Storage
Current Layout Aci

d
Dip Ship/
Receive

Alternative Layouts Suitable for a Custom Forge Shop
PROCESS LAYOUT
• Flexibility (accommodates
new products and demand
fluctuation)
• Lacks „flow‟
• Batching → High queue times
→ High production lead times
CELLULAR LAYOUT
• Ideal for one piece flow and
short production lead times
• Needs duplication of same
machine type/s in multiple
cells

Alternative Layouts Suitable for a Custom Forge Shop
HYBRID LAYOUT
• Integrates best of both functional and
cellular layouts
• May not be feasible for every facility
MODULAR LAYOUT
• Suited for complex flow networks
• Several machines are clustered
together to form „modules‟ (or
partial cells)
• Creates „flow‟ by linear
arrangement of „modules‟

Design for Lean Flow
• Even though a custom forge
shop is a jobshop, there exist
many “families” of similar flow
routes
• Current process layout was not
changed
• Process villages are arranged in
an overall “U” shape, but try to
minimize duplication/splitting of
same department/s at multiple
locations
• Result: Hybrid Layout
Detailed flowchart for this approach is available in Appendix
„U‟ Shaped Process Layout
Identical machines are grouped into process villages
and the villages are arranged such that each forging
follows a linear path in a U-shaped layout
U-shaped flow path
Forge Press • 8010

• 8030
Heat Treat
Details of this approach available in Appendix

Final Layout
• Duplicated
1021 1060 1050 1012 ELECT.
1040
COMP.
1020 1030
STORAGE EXIT
5050 (Vibratory
EXIT 1010
FORGE
4020 2050
EXIT EXIT
4010 4020 FORGE OFFICE 5040
Bowl)
K.O. AREA VIBE
2060 2045 2035 2040
2030 2040 2030 EXIT

DIE STORAGE
• Split 8030
2030 2040 2010 SAWS
PUNCH PRESS
WATER
8030 ROD STORAGE
VIBE WOMEN
(Heat Treat)
8010 TREAT
MEN
8030
8010 8010 STORAGE
LUNCH
VIBE HEAT ACID
ROOM
8010
SHIP.
ACID TREAT OFFICE
Full-size layout available

8010
DIP SHIPPING &
RECEIVING
OFFICE DOCK
EXIT
& DIE
DEPT.
INSPECTION
EXIT
in Appendix
CAD
OFFICE
WOMEN
NURSE
MAINT. MAINT.
MEN
FINISHED
STORAGE
GOODS DEPT. OFFICE
CONF.
ROOM
EXIT
Location of Bottleneck
Performance Measures
Criteria for Performance Evaluation of the

Proposed Layout:
• Distance of „flow‟ of parts (indirect measure of time-to-
deliver)
• Line of sight (visual control)
• Longest distance between consecutive operations
(indirect measure of WIP due to batching)

Performance Measures
Total of 20 parts drawn from Part Family #5 and #6 that accounted for 70% of Revenue
and 75% of Quantity
Evaluation Measure Current Layout Proposed Layout
Total material flow distance for 20 14409 ft 10704 ft

selected parts
Total count of „line of sight‟ (Based on 0- - 103

1 measure)
Total of dmax (= maximum distance 2233 ft

between locations of consecutive
operations in a routing) for the selected
20 parts
Percentage improvement: ~25%

Exploit/Elevate the Bottleneck
Constraint: Monuments and Shared Workcenters
 It is impossible to create cells

Cell 1
with no intercell flows in a
Monuments custom Forge Shop due to
monuments and shared
Cell 3
workcenters
Shared
Workcenters
 Design virtual cells within the
hybrid layout that allows
Cell 2 monuments and intercell
flows involving shared
workcenters

Example of a Virtual Cell
1060 1050 1040 1030 1012
ELECT.
Virtual Cell for Family #5
FORGE OFFICE
1021
COMP. Virtual Cell for Family # 5
STORAGE
1010 EXIT
EXIT FORGE
1020
Virtual Cell for Family #6
Virtual Cell for Family # 6
EXIT EXIT
Monuments/Shared
VIBE
VIBE
Monuments/Shared Resources
2060
K.O. AREA ACID DIP
8010 8010
2030 2010 2040
Workcenters
HEAT
DIE STORAGE 8010

TREAT
8030
EXIT
Idea of Virtual Cell:
8010 2040 2030 2040
8010 SAWS
8030
PUNCH PRESS
2045 2035 2040

WATER • As much as possible,
TREAT
dedicate a machine in
each process village to
MEN
STORAGE
ROD STORAGE
ACID
VIBE
TOOL
& DIE
SHIP.
OFFICE each part family even if
DEPT. SHIPPING &
relayout is not possible
LUNCH
ROOM
INS. HOLD RECEIVING

INSPECTION
DOCK
CAD
• Assign dedicated
OFFICE
EXIT EXIT
material handlers to
WOMEN
NURSE
FINISHED MAINT.
expedite the
MEN
STORAGE GOODS MAINT.

DEPT. OFFICE
CONF.
ROOM
production flow of each
family

Exploit the Bottleneck
Constraint: Long setup times on the forging presses
 On average, the forging

press takes 36 minutes to
setup. Hence, setup
reduction will improve the
capacity utilization of this
bottleneck machine
 Time study of setup on the
bottleneck machine
focusing on:
 Operations
Max WIP is observed in the forging department  Transportation
 Delays
Exploit the Bottleneck (contd.)
• Video of Setup on a Forging Press

Exploit the Bottleneck (Contd.)
Video of Setup on a Forging Press
Long Waiting Time

Occurs Due to
Unplanned Handling
Activities

Manual Die Positioning  Time

Consuming and Mistake-prone
Manual Die Clamping  Time

Consuming and Mistake-prone
Frequent Trips to the

Switch Board and Tool
Racks (18 Trips in All)

Die Heating  Longest Time Element in Setup

Sequence  This needs a Domain Expert  
Non-Value Added
Activity by Operator
during (Long) Die
Heating Process

Spaghetti Diagram for Current Setup on Forge Press
Switch Board Tool Rack
5 trips
back &
4 trips back
forth
and forth
1050 1040 Operator

movement
Operator movement
1 trip back 1 trip back while waiting for the die
STORAGE
2 trips and forth and forth to heat up
Die movement
EXIT
FORGE OFFICE
K.O. AREA
EXIT
DIE STORAGE

Summary of Current Setup Activities on the Forge Presses 1060 and 1030
(Based on Video Tape)
25.00
20.00
15.00
Durations
10.00
5.00
0.00
Delay associated with Die Delay associated with Material Value Added Operations Operator Movement to Get/Put
Heating Handling Away Tools
Activities

Spaghetti Diagram for Proposed Setup on Forge Press
Switch Board Tool Rack
1050 1040 Operator

movement
Operator movement
1 trip back 1 trip back while waiting for the die
STORAGE
2 trips and forth and forth to heat up
Die movement
EXIT
FORGE OFFICE
K.O. AREA
EXIT
DIE STORAGE
Obvious Improvement: Move the switch board and tool rack closer to
the forge press and assign dedicated material handler for this forge
press (i.e. operate a Virtual Cell that has this forge press as the Drum)
Summary of Proposed Setup Activity on the Forge Presses 1030 and 1060
(Based on Video Tape)
25
Future Activity to
Exploit/Elevate
20 the Bottleneck
15
Durations
10
0
Delay associated with Value Added Delay associated with Operator Movement to
Die Heating Operations Material Handling Get/Put Away Tools
Activities

Number of Activities in the Number of Activities in the
Current Setup Proposed Setup
Operation
Op er at io n Transport
T r ansp o r t Delay
D elay Savings
9%
4 45%
21
24 51%
17 26
36% 55%
2
4%
0%
Total number of activities: 47 Total number of activities: 26

Distribution of Times in the Distribution of Times in the

Current Setup Proposed Setup
Operation Operation
Transport
Transport Delay
Delay Savings
Delay
29%
Savings
41% 14.97 min
10.78 min
20.64 min
Operation
24.14 min 56%
1.67 min
Transport Operation
66% 0.98 min
5%
Delay
Transport
3%
0%
Total setup time: 36.59 min Total setup time: 21.62 min

Elevate the Bottleneck
Reduction in defect rate

and process improvement
by precise temperature
control
Information was obtained

from a survey of temperature
sensor manufacturing
companies and aluminum
forging manufacturers.
Source: 3T True Temperature Technologies

Subordinate the Bottleneck
Drum
Schedule the production
according to the forging press
Material Release Vibratory (5050)
1800 parts/shift
Forging (1060)
700 parts/shift
Solution (8010)
1800 parts/shift
Punch Press (2010)
1000 parts/min
capacity (the bottleneck
machine) using Drum-Buffer-
Rope Buffer Rope method
Rope
Once the WIP in front of forging
Acid Dip (9010) Aging (8030) Vibratory (5050) Inspection Final Product
press drops below safety level,
1800 parts/shift 1800 parts/shift 1000 parts/min 1000 parts/min
trigger the previous process(es)
to supply new work to the
Drum-Buffer-Rope Scheduling forging press
Andon Light showing WIP level in
front of forging press can be useful to
signal production to the previous
process and monitor WIP status at
the Buffer to the previous process.
Andon Light
Cost Benefit Analysis

Cost Analysis
Investments and Costs for Various Scenarios
Most likely $125,000

$140,000
$100,000
$120,000
Investments and
$100,000 $75,000
Costs $
$80,000
$60,000
$40,000 Paybac
Paybac Paybac
k k
k
$20,000 12
9 8
months months
months
$0
Minimum Expected Maximum
Scenario

Benefit Analysis
Increase in capacity due to
1% setup reduction
3% Reduction in scrap rate due
to temperature control
Expected Total Annual Benefit: 8% 32%
Increase in capacity due to
10%
$136,767 temperature control
Reduction in cycle time
due to better loading
46%
Reduction in scrap rate due
Various Scenarios Vs. Savings
to better loading
Savings in Increase in capacity due to
Rework better loading
$250,000
Extra Profit
Potential The results shown here are
$200,000
obtained using sensitivity
Annual Benefits $
$104,581
$150,000 analysis conducted for various

$69,720
scenarios. The “expected
$100,000 benefit” is the most likely benefit
$34,860
$115,653 achieved if our current approach
$50,000 $68,951
$32,030
for bottleneck improvement is
implemented.
$0
Minimum Benefit Expected Benefit Maximum Benefit
Scenario

Conclusions: Summary of JSLEAN
Thinking
• Classify the parts and group them into families

• Create Value Network Map for each family
• Analyze the VNM for bottleneck/pacemaker
• Apply TOC to exploit/elevate the current bottleneck
• Apply DBR to schedule the virtual cell dedicated to
the part family
• Utilize IT and wireless technology to speed up
shopfloor communications between all machines in
the virtual cell

Reroute some parts to alternative machines in the cell Dedicate existing machines to certain
curvilinear shapes for the cell to
more) of the existing machines;

parts
machine that combines two (or
PLUS, it automates other non

allow each operator to tend
Adapt U, S, L, W or other
Purchase a multi-function
Use automated (or semi-
automated) systems for
Redesign other parts to eliminate features requiring Purchase new machines that cycle
“Exploit the constraint”
several machines
value-added tasks
one or more operations on the machine
material handling
(MAKE BETTER USE OF AVAILABLE CAPACITY) faster for some parts
Optimize process parameters using Six Sigma
Outsource
methods
Add a shift?
Group schedule part families to exploit Depending on the sophistication of the machine(s), Use overtime?
common setups, tooling and process they could be run in lights-out mode overnight
settings
Redesign the parts to eliminate the
feature(s) requiring the external operation
“Elevate the constraint”
(ADD CAPACITY)
Reduce (if any) absenteeism and “bs-ing time”
Reduce transfer batches (“one- Modify their current process plans to use
piece flow”) to minimize machine or alternative machine already in the host
idle time due to inter-machine Eliminate exception operations that are cell
Overlap shift changes to eliminate tear-down transfer delays forcing parts to leave their host cell to
and start-up delays visit machines external to that cell
Virtual Cells with
material handlers to
“group/connect” the
Reduce downtime using TPM Strategies to reduce, Hybrid Cellular Layout
machines in the cell for
each part family
strategies better yet eliminate, Cascading
Shared machine types can be Flowlines
intercell flows of parts retained in process groups, Hybrid
but individual machines could Flowshop
Reduce tool-changing times ex. machining and turning
centers have pre-set tooling, ATC‟s, combination tools,
that utilize available be dedicated to part families Remainder
Cell
large tool magazines, toolwear sensing with replaceable capacity on common Modular Layout
inserts, etc.
machine types (Partial Cells)
Reduce the # of tools by application of Variety Reduction

distributed in multiple
Reduce capacity requirements for the
Techniques and Group Technology ex. standardize part cells part family assigned to the cell
dimensions, tolerances, fillet radii, chamfer angles, thread
types, hole radii, etc
Reengineer setups and process
parameters to reduce setup times and
cycle times using Six Sigma methods Reduce scrap and rework
Reduce the # of fixtures, develop quick-change flexible esp. DOE
fixtures to handle families of parts, “Lean Tooling” (5S the
Poka-Yoke
fixture racks, use SMED to speed up fixture changes, etc)
(Mistake-Proofing) Maintain SPC charts at key machines
Eliminate “cats and dogs” type of less-
critical parts which are not ordered
frequently
Use Renishaw probes to do in-process parts gauging Perform all necessary inspections Cross-train operators to allow them to
instead of stopping the machine to repeatedly loading/ within the cell inspect and monitor each other‟s work
unloading the part to inspect it
Evaluate the production lot sizes and
reduce them if they include safety
Eliminate operator fatigue by
stock (“buffers”)
automating (or mechanizing) handling,
loading/unloading, etc.
c Shahrukh A. Irani, Christine Djunaedi and Lily Susanto
238
(Suri) Use smaller-scale
the feature(s) that need the monument process
capacity slots, if their schedules allow it
priority sequencing system based

- Change sequence of operations
(H&W) Change the product design to eliminate
shopfloor status/location of all active orders

communication with walkie-talkies or the P/
their parts would be processed at
cost-based routings to determine equipment
and/or when these parts are due

(Suri) Rethink product design to eliminate the
the monument; develop a formal

implementation of process
on due dates, both for customer

Problem) at the Monument operation
(Irani) Broadcast the production
(Irani) setup a Pull (or DBR or POLCA or

capacity; however, allow the cells to
(Irani) Schedule and sequence

jobs based on common setups
negotiate with each other and swap
A system or onboard computers, etc., to

part(s‟) feature or functionality requiring the
supported by Andons, material handlers

(Suri) Use time-based routings instead of
CONWIP…whatever applies!) systems,

technology (Right-size and Down-
schedule of all the cells when

so that no cell gets to monopolize
choices at the Process Planning + Cost
Heijunka or the Machine Loading
WIP_In_Queue at the Monument and

(Suri) Use time-slicing (similar to
size)
making milkruns, real-time shopfloor

external operation(s) on the monument
- Rethink process choice

(H&W) Miniaturize and
Estimating step in the “front office”
back at their host cells
and group scheduling

decentralize the process to
connect the production plan,

duplicate it (possibly absorb into)
- Change material
across multiple cells; seek smaller
and cheaper machines suited to
certain families of parts (each
family is specific to any one cell)
(Suri)
Ex: Dishwasher vs. (Large) Wash
Tank, Table-mounted Saw vs.
(Large) Band Saw, Electrical
induction-hardening furnace vs.
(Large) Gas-fired furnace (for Heat
Treatment), (small & off-line) Paint (H&W) Operate the
EXPLOIT/ELEVATE the (Capacity) constraint

Booth vs. (Monolithic & Monument as a
Service Center
(H&W) Launch an
Conveyorized) Paint Line
mode) matrix; analysis using PFAST could

aggressive Setup
program (SMED)
families in a supermarket-like warehouse

Create a Part vs. Features vs. Tools (tri-
show tooling families; store the tooling

(Irani) Design a Modular Layout
machines before and after
(partial) cells, by grouping
(Suri) Split the routings in
with “partial cells” that group
Reduction
each part family into two
machines (a) prior to the Operating manufacturing cells

the operations on the
Monument process
MONUMENT process and (b)

after the MONUMENT process that need batch-type and/or
LMP1 LMS1 monument-type processes
M external to them
Group schedule
common setups
LMP2 LMS2
to exploit
(Suri) If most of the machines
needed cannot be dedicated (H&W, Irani) Create dynamic (H&W, Irani) Execute the P-Q-R-$ Analysis module in
and co-located in a cell, create a and reconfigurable cells, or PFAST; say we are able to segment the product mix
time-sliced virtual cell partial cells (LAYOUT being run through the Monument into Runners/
MODULES) by placing the other Repeaters/Strangers and know which part families they
In-process Vision
(H&W, Irani) Outsource the machines required in a mobile belong to; dedicate some machines in the department to
gauging & Sensors
process (ex. purchase pre- cell on wheels and moving them run the High Volume (and/or) High Revenue parts but,
control
painted parts to eliminate the so as to co-locate them at/near for the REMAINDER CELL of machines in the
department which must run the rest of the parts, deploy Die
centralized painting department) the Monument. When the orders Six Sigma
SMED , group tooling, etc. quick response strategies Design
and establish a “milkrun” for the part family “dry up”, this
schedule for parts delivery “phantom cell” is dismantled,
and the equipment is re- (Irani) Execute PFAST on a daily, maybe weekly, basis to identify, possibly
Electronic Heijunka allocated into new mobile cells, revise, part families and recognize outliers; assign each part family to a
Kanban (Level Loading) suited for new part families virtual cell in the (existing?) Process Layout, and let each material handler
identified (by PFAST) in the act as a roving “Cell Foreman” and Expeditor for that part family
Schedule visibility via internet current product mix
239
Acknowledgements
• Ryan Engelbrecht
• Doug Brown, George Layne, Peter Campbell
• Venkatesh Kenthapadi, Nitin Jain
• Forging Defense Manufacturing Consortium
• Advanced Technology Institute
• Forging Industry Association
• National Science Foundation

Appendix

big orders
for small orders
SUPPLIER
4 -6
FORGING-1050 FORGING-1060
Bottleneck
wee
ks
C/T = 22 sec C/T = 22 sec

I
Downtime=2h/wk Downtime=2h/wk
Ship Via
1 Operator 9 Days 1 Operator UPS
3 Shift Forklift I
3 Shift
1 Days
Forklift
I
SAWING VIBE (5050) FORGING - 1040 FORGING-1012 Punch Press-

2040
I I I I
4 Days C/T = 1800 sec 4 Days C/T = 22 sec 1 Days C/T = 22 sec 5 Days C/T = 14400 sec
C/T = 31 sec
Tugger Forklift Forklift Forklift C/O = min
C/O = 20 min C/O = C/O = 36 min C/O = 36 min
Downtime = Downtime = 2h/wk Downtime=2h/wk Downtime =
Downtime =
Operator 1 Operator 1 Operator Operator
1 Operator
Shift 3 Shift 3 Shift Shift
2 Shift
Punch Press- INSPECTION SHIPPPING

TRIMMING-2030 VIBE (5050) FORGING-1060
I I
I
Bottleneck I
2050
I I
0 Days 3.4 Days

1 Days 9 Days 5 Days C/T = 14400 sec
C/T = 14 sec 1 Days C/T = 22 sec Forklift C/T = 7.3 sec
Forklift Forklift Forklift
Forklift C/T = 1800 sec C/O = min C/O =
Downtime= 1h/ C/O = Downtime = Downtime =
Downtime=2h/wk
2wk Downtime = I Operator
Operator 1 Operator Operator
Operator 9 Days Shift Shift
Shift 3 Shift
Shift Forklift
5 Days
I Forklift
I VIBE (5050) INSPECTION SHIPPPING

TRIMMING-2030 FORGING-1050
0 Days I I I
I
Forklift
0 Days 3.4 Days
9 Days C/T = 22 sec
1 Days C/T = 1800 sec C/T = 7.3 sec
C/T = 14 sec Forklift
Forklift Forklift
C/O = 36 min C/O = 36 min C/O = C/O =
Downtime= 1h/ Downtime=2h/wk Downtime = Downtime =
2wk
Operator 1 Operator Operator Operator
I
Shift 3 Shift Shift Shift
1 Days
Forklift
TRIMMING-2030
Value Network Map

C/T = 14 sec
C/O = 36 min
Downtime= 1h/
2wk
Operator
Shift 242
VSM Superimposed in Layout Material Handling and Distances
1021 Blocking
1060 & 1050 1012 ELECT.
Movement Distances Equipment
1040
Forging
COMP. Receiving 1 51 Manual
Opr 3 1020 1030
STORAGE EXIT
1 2 26 Tugger
EXIT
FORGE
1010 2 3 276 Forklift
4020 2050
Vibratory
3 4 257 Forklift
EXIT Opr 2 EXIT
4010 4020 FORGE OFFICE 5040 4 5 47 Forklift
K.O. AREA VIBE
5 6 153 Forklift
2060 2045 2035 2040
6 7 85 Forklift
2030 2040 2030 EXIT 7 8 82 Forklift
DIE STORAGE
2030 2040
Trimming
2010 SAWS
8 9 211 Forklift
PUNCH PRESSOpr 5
Sawing 9 Shipping 291 Forklift
Opr 1
Solution WATER
8030
Aging ROD STORAGE
VIBE WOMEN
8010 TREAT Raw Mat‟l Supplier
Opr 7 Opr 4 MEN
Vibe 8030
Opr 8 8010 8010 STORAGE s
LUNCH ek
VIBE HEAT ACID we
ROOM 6
4-
8010
Acid Dip SHIP.

ACID TREAT OFFICE
Opr 6 8010
DIP SHIPPING &
Receiving
RECEIVING
OFFICE DOCK
& DIE 1 inch = 1 foot
INSPECTION
Inspection
EXIT DEPT. Shipping EXITT Customer
CAD Opr 9 ranspo
OFFICE
rtation
WOMEN
NURSE
FINISHED MAINT.MAINT.
MEN
STORAGE
GOODS DEPT. OFFICE
31 secs 1800 secs 22 secs 22 secs 14400 secs 14 secs
4 days 9 days 1 days 1 days 4 days

5EXIT
days
Sawing Vibratory Blocking Forging Solution Trimming
Lead Time = 25.63 days

900 secs 36000 secs 1800 secs 7.3 secs
Processing Time = 54996 sec (0.64 day) VAR = 0.025
0 days 1 days 0 days
Acid Dip Aging Vibratory Inspection Total Travel Distance = 1500 ft 243
Multi-Product Process Chart
(For 4 forgings only)
• Value Added Ratio (VAR) for any
product is defined as:
8066 A 8095 8098 8392B
Saw 1 1 1 1 VAR = Total Processing Time
Total Lead Time
Vibe 2 6 2 2
Block 3 • Routings of 4 forgings were

analyzed based on data collected
Forge 4 3 4 3
during the plant visit. The VARs
Solution 5 4 5
that were calculated are:
Trimming 6 5 6 4
8066A : 0.025
Dipping 7 2 7
8095 : 0.026
Aging 8 7 8 8098 : 0.027
Vibratory 9 8392B : 0.003
Inspection 10 8 9 5 • The main reason for low VAR is
long waiting times caused by
batch-type material flow between
consecutive process steps.

Design for (Lean) Flow
Careful Analysis of
MMPPC for All Parts
Overall Flow Diagram

Machine
(for all parts)
Duplication
Constraints
Machine Overall Flow Diagram

Relocation with Machines
Constraints Grouped/Re-arranged
U-Shape Flow
Alignment
Preliminary Block
Layout Diagram
Evaluate Performance Final Block Layout Design Material

of New Layout Diagram Handling & Info Flow
Systems
Start Implementation
of Layout

Design for (Lean) Flow (Contd.)
Formation of „U‟ Shaped Process Layout
Overall Flow Diagram
Overall Flow Diagram (Machines Re-arranged)
Forge Press

1060 1050 1040 1030 1012
ELECT.
FORGE OFFICE
1021
COMP.
STORAGE
1010 EXIT
EXIT 1020
FORGE
EXIT EXIT
VIBE
VIBE
2060
K.O. AREA ACID DIP
8010 8010
2030 2010 2040
HEAT
TREAT EXIT
DIE STORAGE 8010 8030
8010 2040 2030 2040
8010 SAWS
8030
PUNCH PRESS
WATER
2045 2035 2040
TREAT
Future Layout
MEN
STORAGE
ROD STORAGE
ACID
VIBE
TOOL SHIP.
OFFICE
& DIE
DEPT. SHIPPING &
RECEIVING
LUNCH
ROOM
INS. HOLD DOCK

INSPECTION
CAD
OFFICE
EXIT EXIT
WOMEN
NURSE
FINISHED MAINT.
MEN
STORAGE GOODS MAINT.

DEPT. OFFICE
CONF.
Flow for Part ROOM
Family 5
Flow for Part
Location of Bottleneck Family 6 247
An Overview of Production Flow Analysis (PFA)
Shahrukh A. Irani and Jin Zhou
Columbus, OH 43210
When applied to a single factory, the classic framework for manual implementation of Production
Flow Analysis (PFA) consists of four stages, each stage achieving material flow reduction for a
progressively reducing portion of the factory: Factory Flow Analysis (FFA), Group Analysis (GA), Line
Analysis (LA) and Tooling Analysis (TA).
In FFA (Figure A.1), dominant material flows between shops (or buildings) are identified. In addition,
if parts are observed to backtrack between any of the shops, these flows are eliminated by a minor
redeployment of equipment. FFA may often be redundant for a factory that essentially consists of a single
machine or fabrication shop.
MATERIAL
28
16 2
15
1
27 3
53 1 3
1
1
1 24
3 1
126
84 151 3
4
8
1
1 12 26
3 DEPARTMENTS
9 27 1 = BLANKS
5 45 1 2 = SHEET METAL WORK
3 3 = FORGE
1 4 = WELDING DEPT
2 5 = MACHINE SHOP
6 = ASSEMBLY
9 = OUTSIDE FIRMS
FINISHED
6
PRODUCT
MATERIALS 1 MATERIALS 1
5 4 3 2 5 3&4 2
6 6
FINISHED FINISHED
PRODUCT PRODUCT
Figure A.1 Factory Flow Analysis

(Source: Burbidge, J. L.1971, April/May. Production Flow Analysis. The Production Engineer, 139-152.)
248
In GA (Figure A.2), the flows in each of the shops identified by FFA is analyzed. GA analyzes
operation sequences of the parts being produced in a particular shop to identify manufacturing cells. Loads
are calculated for each part family to obtain the equipment requirements for each cell. Each cell usually
contains all the equipment necessary to satisfy the complete manufacturing requirements of its part family.
Due to sharing and non-availability of equipment, some intercell material flows and flows to/from vendors
may arise.
In Line Analysis (LA) (Figure A.3), a linear or U-layout is designed for the machines assigned to each
cell. The routings of each part assigned to the cell and the frequency of use of each routing are used to
develop a cell for efficient transport as well as minimum material handling and travel by operators.
MATERIAL
65 7
1
1 2 3 2
HS4 MO HS
1
2 6
11
3 3 2 4
5 7 6 4
MV DH MH DS
1 1
1
8
SA
41 2 5 4 4 16 2
GROUP FLOW NETWORK DIAGRAM - GROUP 2
MATERIALS
72
1
HS4
17 6 4 3
4 2 6 1 7 1 5
42
DH MH DS MV
1 2
8
15
5
8
SA
72
SIMPLIFIED GROUP FLOW NETWORK - GROUP 2
Figure A.3 Line Analysis

249
PART/PRODUCT
K L L M M L M M E E E E E K E E K E M K M M M K E E E K K M E
4 4 4 4 4 4 4 4 4 4 3 1 1 4 4 4 3 3 4 4 4 4 4 3 7 4 3 4 4 6 1
8 8 8 4 7 8 8 4 1 8 4 2 2 7 7 8 4 3 8 4 5 5 8 4 3 6 3 5 3 1 8
2 3 2 2 6 3 1 2 7 5 2 2 2 6 7 5 5 4 2 2 6 6 3 0 9 3 2 1 5 5 6
5 8 6 7 9 8 9 7 9 9 6 0 8 9 8 8 9 9 6 7 9 9 8 9 2 6 9 9 9 9 9
1 8 7 6 3 8 5 6 5 6 7 4 8 7 2 6 6 4 5 6 1 1 6 8 4 5 9 0 2 4
A B E F M C D D C D B H A
M DMT(3) X X X X X X X X X X
A DM(3) X X X X X X X X X X X X X
C
H PG X X X X X X
I DXY(3) X X X X X X X X
N
P&GR X
E
/ PGR X X
W PGH
O
R
K PGG X X X
S P&G X X X X X X X X X X X X X
T
A RP X
T PGB X X X X X X
I
O W&P X X X X X
N WG3 X
COMPONENT – MACHINE CHART. INITIAL RECORD. FORGE.
PART/PRODUCT
L K M E K L E K K K M M M E E E E E M K L M M M K E E E E E M
4 3 4 3 4 4 7 3 4 4 6 4 4 3 1 1 4 4 4 4 4 4 4 4 4 4 4 1 3 4 4
8 4 8 3 4 8 3 4 5 3 1 8 4 4 2 8 1 8 8 8 8 5 5 4 7 7 6 2 3 8 7
2 5 2 4 2 3 9 0 1 5 5 1 2 2 2 6 7 5 3 2 3 6 6 2 6 7 3 2 2 5 6
6 9 6 9 7 8 2 9 9 9 9 9 7 6 0 9 9 9 8 5 8 9 9 7 9 8 6 8 9 8 9
7 6 5 4 6 8 8 9 0 2 5 6 7 4 4 5 6 6 1 8 1 1 6 7 2 4 8 5 6 3
B D C M A C D H A D B E F
PG X X X X X X
GROUP-1
DM 3/1 X X X X
M DXY 3/1 X X
A RP X
C FAMILY - 1
H
I P&G X X X X X X X X X X X X ONE “EXCEPTION” X
N DMT 3/2 X X X X X X
E DM 3/2 X X X X X X
GROUP-2
/
W DXY 3/2 X X X X X X
O W&P X X X X X
R WG3 X
K
S FAMILY - 2
T PGG X X X
GROUP-3
A PGB X X X X X X
T
I PGR X X
O DMT 3/3 X X X X
N DM 3/3 X X X
P&GR X
FAMILY –3
COMPONENT – MACHINE CHART. AFTER FINDING FAMILIES AND GROUPS
Figure A.2 Group Analysis

250
In Tooling Analysis (TA) (Table A.1), the principles of GA and LA are integrated with data on the
shape, size, material, tooling, fixturing, etc. attributes of the parts. TA helps to schedule the cell by
identifying families of parts with similar operation sequences, tooling and setups. It seeks to sequence
parts on each machine and to schedule all the machines in the cell to reduce setup times and batch sizes.
This increases available machine capacity on bottleneck work centers in the cell.
Table A.1 Tooling Analysis

(Source: Gallagher, C. C. & Knight, W. A. (1973), Group Technology, London, UK: Butterworths.)

∃
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∇

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φ ( #∗)(
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(( ∋ ∇∇
%%
#∗% 10
(−
(φ
( 3%∋ !∋ 0∋0 56,
((
%4% φ
!%0
∃% (− 78
(φ
∃)
(( ./%∋ 0 ++,
(( 9
0%∋
∃%0
(− ∃ :∃ %
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251
Design of High-Variety Low-Volume (HVLV)
Manufacturing Facilities using PFAST
Shahrukh A. Irani
Columbus, OH 43210
Phone: (614) 688-4685
Email: irani.4@osu.edu
Introduction
Finally, the re-design of an existing facility layout to simplify material flows and map interacting
value streams prior to the implementation of Lean Manufacturing for high-variety low-volume
(HVLV) manufacturers has been simplified! PFAST (Production Flow Analysis and
Simplification Toolkit) is a software package for material flow analysis developed at the Ohio
State University that extends the classical manual methods of Production Flow Analysis
developed by Prof. John L. Burbidge in the early 1970’s. PFAST can be used to analyze material
flows at any level in a facility: Between buildings, between departments or shops in the same
building, between cells in a shop, between machines in a manufacturing cell, in the workspace
around a single machining center, etc.
Production Flow Analysis And Simplification Toolkit (PFAST)

Typically, the inefficiency of material flows in a facility is indicated by the symptoms shown in
Table 1(a) arising from one or more of the causes listed in Table 1(b). Our experience has shown
that reorganization of an existing Process (or Functional) layout into manufacturing cells and/or
product-focused factories, possibly Hybrid Cellular Layouts, is an essential building block for
Lean/Agile Manufacturing. However, prior to redesigning their existing facility layout, most
manufacturers make no effort to simplify and reduce their existing material flows (“spaghetti
diagram”)!
Table 1(a) Symptoms of Inefficient Material Flows in a Facility

 Large travel distances in the material flow diagram
 Perceived shortage of floorspace for facility expansion
 High WIP and finished product inventory levels
 High order throughput times
 Significant queuing and material handling delays
 Significant forklift truck activity
 Poor order tracking capability
 Highly unpatterned material flow network
 Absence of a network of material handling aisles
 Inefficient communications between workcenters
 Absence of scheduling based on resource constraints
 Inflexibility to handle demand and/or part mix changes
252
Table 1(b) Causes of Inefficient Material Flows in a Facility
 Building architecture
 Locations of manufacturing departments
 Locations of support services and utilities
 Design of the network of material handling aisles
 Locations of input/output points of access between departments
 Shortage of space for facility expansion
 Process plans for making parts and products
 Variety of routings in the part mix
 Current manufacturing technology
 Current material handling equipment
 Current parts and WIP storage systems
 Current material handling scheduling policies
 Choice of subcontracted operations and/or parts
In addition to the design of greenfield or brownfield facility layouts, PFAST could help to
evaluate the strategic benefits of numerous other strategies for material flow simplification to
support Lean Manufacturing, as shown in Table 2.
Table 2 Utility of PFAST for “Lean” Factory Design

 Value Network Mapping (VNM) for multiple interacting value streams
 Consolidation of buildings and departments
 Strategic duplication of equipment among departments
 Formation of manufacturing cells and focused factories
 Design of a network of material handling aisles
 Modification of process plans and product designs
 Systematic investment in Flexible Manufacturing Cells
 Choice of subcontracted operations and /or parts
 Reduction of variety of routings in the part mix
 Elimination of parts that complicate the flow network
 Enhancement of flexibility in routing products to utilize non-bottleneck machines
Since PFAST uses three types of input data – operation sequences, machine-part matrices and
From-To charts, it could be used for a variety of projects dealing with material flow analysis and
simplification. Brief descriptions of these projects appear in Tables 3(a)-(e).
Table 3(a) Using PFAST for Material Flow Analysis
 Descriptive statistics for routing data based on P-Q Analysis, P-Q-$ Analysis and P-Q-R-$ Analysis
 Descriptive statistics for material flow network in facility
 Grouping of similar routings
 Detection of redundant variety in routings
 Identification of “misfit” (or outlier) routings
 Analysis of in-house vs. subcontracted material flows
 Elimination or reduction of poorly utilized material flow paths
 Detection of flow backtracking in routings
 Detection of flow backtracking in material flow network
 Detection of cross flows among aisles in the facility
 Detection of recurrent combinations (or sequences) of operations in routings
 Evaluation of current vs. desired flexibility of existing manufacturing equipment
 Creation of alternative routings for key products
253
Table 3(b) Using PFAST for Cellular Manufacturing
 Feasibility assessment for implementation of manufacturing cells using SICGE
classification of the machines
 Shared machines that will be required in several cells
 Parts whose routings contain only unshared machines
 Parts whose routings contain only shared machines
 Parts whose routings contain both unshared and shared machines
 Specific number of cells that could be implemented
 Parts that could not be produced in cells due to complexity of their routings
 Composition (machine group and part family) of each cell
 Complexity (number of different machines and parts) of each cell
 Homogeneity analysis of the part mix based on routing similarities
 Parts that do not belong to any cell
 Parts whose routings span more than one cell
 Parts with “exception” (or outlier) operations external to their host cell
 Parts that could be produced in more than one cell
 Duplication of equipment required in two or more cells
 Alternatives for the number and composition of the cells due to shared machines
 For a fixed number of cells
 For a variable number of cells
 Analysis of the stability of cell compositions due to changes in part mix
 Prioritization of Integrated Product and Process Design (IPPD) in order to
eliminate intercell flows, exception operations and capacity sharing between cells
 Support of kaizen events for detailed planning of each cell
 Capacity Requirements Planning
 Machine allocation and load balancing, especially if intercell flows involved
 Capital investment for purchase of new machines and technology upgrades
 Layout, material handling and scheduling of intra-cell part flows
 Layout, material handling and scheduling of inter-cell part flows
 TOC analyses of capacity-constrained machines in each cell
 Support of what-if analyses to evaluate strategies to eliminate intercell flows
 Redesign the parts to eliminate exception operations
 Combine cells that require common machines
 Subcontract, even eliminate, parts with exception operations
 Buy extra machines to distribute among competing cells
 Purchase multi-function centers to replace 2-3 machine sets in one or more cells
 Put shared machines in a centrally located Common Facilities cell
 Reroute operations on bottleneck machines to alternative machines in the cells
 Design the overall facility layout to minimize inter-cell transfer delays
 Speed up the material handling between the cells using visual signals
 Adopt priority scheduling rules for parts that require inter-cell flows
254
Table 3(c) Detailed Computer-aided Design and Operations Analysis for a Pilot Cell
 Selection of the family of parts to produce in the cell
 P-Q Analysis and P-Q-$ Analysis of the “business” assigned to the cell
 Capacity requirements for the cell
 Machine requirements vs. actual allocations made to the cell
 Exception operations that cannot be done inside the cell
 Machines that could not be assigned to the cell due to insufficient workload
 Monuments that are external to the cell
 Support services that are external to the cell
 Intercell flows
 Due to exception operations
 Due to machine overloads caused by fluctuations in customer demand
 Access to identical machines in other cells when internal breakdowns occur
 Access to identical machines in other cells where operators with similar skills work
 Line, U or S layout for the cell using STORM and PFAST software tools
 Flow Diagram for the cell
 Current and Future State Value Network Maps (VNM) for the cell using Visio and
FactoryFlow software tools
 Performance evaluation of the cell using MPX and Arena simulation software tools
 Operations scheduling for the cell using PREACTOR or ASPROVA software tools
Table 3(d) Using PFAST for Facility Layout

 Pareto Analysis of parts using multi-criterion sampling
 Sorting of parts to identify those with identical routings
 Design of a block layout for a factory site, building, department or shop
 Design of a flowline or U-layout for a cell
 Design of non-traditional layouts
 Hybrid Cellular Layouts
 Cascading Cells
 Modular Layouts
 Virtual Cellular Layouts
 Strategic duplication of equipment in several shops or departments
 Strategic consolidation of shops or departments
 Design of a flexible layout using multiple samples of routings
 Design of a network of material handling aisles
255
References
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subproblems. International Journal of Production Research, 32(5), 1197-1218.
Chen, C.Y. and Irani, S.A. (1993). Cluster first-sequence last heuristics for generating block
diagonal forms for a machine-part matrix. International Journal of Production Research, 31(11),
2623-2647.
Daita, S.T., Irani, S.A. and Kotamraju, S. (1999). Algorithms for production flow analysis.
International Journal of Production Research, 37 (11), 2609-2638.
Irani, S.A., Zhang, H., Zhou, J., Huang, H., Tennati, K.U. and Subramanian, S. (2000).
Production flow analysis and simplification toolkit (PFAST). International Journal of Production
Research, 38(8), 1855-1874.
Irani, S.A. & Huang, H. (2000, May 24-26). A pattern recognition approach for facility
compaction and selection of flexible automation. Proceedings of the North American
Manufacturing Research Conference (NAMRC ), Vol. XXVIII: University of Kentucky,
Lexington, KY, and NAMRI/SME, Dearborn, MI, 365-370. Available as SME Technical Paper#
MS00-225.
Irani, S.A. and Zhou, J. (1999). Algorithms for Production Flow Analysis. In Industrial
Engineering Applications and Practice: A Users’ Encyclopedia (CD-ROM, ISBN 0-9654599-0-
X), A.K. Mital & J.G. Chen (Eds.), International Journal of Industrial Engineering: Cincinnati,
OH.
Irani, S.A. and Huang, H. (1998). Layout Modules: A novel extension of hybrid cellular layouts.
Proceedings of the 1998 International Mechanical Engineering Congress and Exposition, Winter
Annual Meeting of the ASME, November 15-20, Anaheim, CA.
Irani, S.A. and Ramakrishnan, R. (1995). Production Flow Analysis using STORM. In Planning,
Design and Analysis of Cellular Manufacturing Systems. Editors: A.K. Kamrani, H.R. Parsaei
and D.H. Liles, Elsevier Science BV: New York, NY.
Irani, S.A., Cavalier, T.M. and Cohen P. H. (1993). Virtual manufacturing cells: Exploiting
layout design and intercell flows for the machine sharing problem, International Journal of
Production Research, 31(4), 791-810.
Irani, S.A., Cohen P. H. and Cavalier, T.M. (1992). Design of cellular manufacturing systems.
Journal of Engineering for Industry, 114(3), 352-361.
King, J.R. (1980). Machine-component group formation in production flow analysis: An

approach using a rank order clustering algorithm. International Journal of Production Research,
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Minitab (Rel. 11) Reference Manual (1996, June). State College, PA: Minitab Inc.
256
Proceedings of the 25th Forging Industry Technical Conference, April 19-21, 2004, Detroit, MI
Computer-aided Production Flow Analysis for Production Lead Time

Reduction in Custom Forge Shops – A Case Study
Heng Huang and Shahrukh A. Irani
Columbus, OH 43210
Abstract
This paper contrasts the “Toyota Lean” model with the “Jobshop Lean” (JSLEAN) model and
lists key reasons why custom forge shops need to adopt the JSLEAN model instead of the
“Toyota Lean” model. The foundation for the JSLEAN model is a focus on “Lean Flow” to
design a flexible layout for a forge shop i.e. a layout that (1) minimizes overall production flows,
(2) maximizes unidirectional paths for the production flows and (3) minimizes the cost of
production flows to fulfill to each and every order. A detailed case study is presented to
illustrate the approach to design of flexible forge shop layouts using the PFAST (Production
Flow Analysis and Simplification Toolkit) software. PFAST helps to implement a new
computer-aided layout design method developed specifically for jobshops that facilitates the
deployment of the JSLEAN approach.
Introduction
Forgings are often dismissed for short run opportunities due to either the misperception that
forgings are not suited for short run production or the lack of enabling technology to produce
short run forgings. In addition, forging education continues to limit the use of forgings in both
industry and the Department of Defense. In many cases, forging designers and buyers are
hamstrung with a lack of acquisition data, source data, or capability data to source forgings.
Lastly, the process-oriented facility layout of most forge shops engaged in short production runs,
combined with their batch-oriented processes and equipment monuments, further limits their
ability to be cost-effective suppliers to the military.
In the report developed by the Forging Industry Association titled Forging Industry Vision of the
Future1, it is stated that, “to position itself for world leadership in the year 2020, the forging
industry has determined that its primary efforts should fall into five program groups: (1)
production efficiency, (2) energy efficiency, (3) recycling, (4) environmental protection, (5)
enterprise issues ……. Through the process of analyzing the key competitive challenges that will
shape its future, the forging industry has identified specific goals that will have the most
profound impact on the competitiveness of the industry as a whole and on the value of its
contribution to the global manufacturing market by the year 2020. Attaining these strategic
targets will assure that the U.S. forging industry becomes the world leader in customer-focused,
efficient and cost effective supply of superior quality components. These goals include:
 Tooling--Increase die life by at least 10 times that of current levels. Reduce per-part die system
costs by at least 50%. Produce tooling within 24 hours from time of order.
1
Available at www.forgingmagazine.com/misc/vision/.
257
 Energy--Reduce the total forging process energy input by 20% while cutting the per-piece energy
cost by 75%.
 Material utilization--Achieve a minimum overall reduction in raw material consumption of 15%.
Reduce the scrap rate (increase material utilization) by 90%.
 Productivity--Improve per-employee productivity by 50%. Reduce per-piece labor costs by 60%.
Achieve average forging facility up-times of 90%.
 Quality--Reduce rejected or returned work to less than 25 parts per million. Achieve ±6 sigma
process control.
 Environment--Generate no harmful gas combustion products; completely eliminate aerosol
emissions within forging plants; and recycle all fluids necessary to forging operations …..”
Also, a recent survey of 200 North American mid-sized manufacturers (Manufacturing
Engineering, October 2000, page 22) states that “… some 60% of the companies surveyed
reported that improving plant-floor productivity is the most important issue they face. Within
this group, half are seeking ways to shorten the time needed to implement workflow process
changes …… many who responded to the survey want to improve workflow processes on the
fly, and also want operations people on the shopfloor, not IT personnel, to implement these real-
time solutions that are easy to implement and use”.
This paper presents an approach for custom forge shops supplying the Defense Logistics Agency
(DLA) and Department of Defense (DOD) to understand the complex multi-product flows in
their facilities. It will help them to recognize how their current facilities help/inhibit the design
and operation of waste-free flow of orders. In turn, this will help them to identify and prioritize
the implementation of Jobshop Lean initiatives for cost and lead time reduction that are designed
specifically for jobshops, and not high-volume assembly line-type facilities. Forge shops could
streamline their existing layouts, improve the performance of their existing material handling
systems and change shopfloor communication systems to be more responsive to the needs of
their customers. With an effective layout and complementary shopfloor systems in place, any
forge shop could realize savings due to reduced work-in-process inventory, reduced scrap and
rework, reduced production lead times and effective order tracking and progressing.
Is Lean Manufacturing the Solution for Forge Shops?

What is Lean Manufacturing? It is “a manufacturing philosophy that shortens the Customer
Wait Time2 by eliminating waste between the receipt of a customer order and the shipment of
that order to the customer”. Anytime that an order is delayed, the cost of one or more of the
Seven Types of Wastes – overproduction, performance of non-standardized work, queue time,
transportation (or material handling) time, inventory (raw material, WIP and finished goods),
unnecessary motions and travel, defective products and underutilized (workforce) skills – gets
added to the cost of producing the order, thereby preventing on-time delivery to the customer and
reduces the profits earned by the supplier. Hence, for the typical forge shop doing business with
the DLA and/or DOD, the adoption of Lean Manufacturing would minimize the Customer Wait
Time for any order.
So, should forge shops adopt standard Lean Manufacturing strategies such as Manufacturing
Cells, Setup Reduction, Process Standardization, Visual Workplace Design and Pull Scheduling
2
Customer Wait Time = Administrative Lead Time [ALT] + Production Lead Time [PLT]
258
that have been adopted in other sectors of industry, especially automotive and aerospace OEM’s
and their Tier 1/Tier 2 suppliers? Unquestionably, the OEM’s and their top-tier suppliers have
realized major productivity improvements by implementing the well-known “Toyota Lean”
model. However, custom forge shops that supply the DLA and DOD operate more like
jobshops. Hence, their business model (high product variety and low volumes, or HVLV) is
unlike the business model (low product variety and high volumes, LVHV) of the OEM’s and
their top-tier suppliers.
Differences between Toyota Lean and Jobshop Lean

 Product Variety: “Toyota Lean” is based on a product family with variations whereas the
HVLV system must be designed for a complicated material flow network resulting from
the large number of dissimilar (100 to 5,000+) manufacturing routings.
 Layout: “Toyota Lean” is based on similar manufacturing routings and Bills Of Materials
for a product family whereas the HVLV system must have a layout based on multiple
dissimilar components or custom product configurations.
 Demand Volumes: “Toyota Lean” relies on a high and relatively stable market demand
whereas the HVLV system, being dependent on a broad customer base for business, may
not have the luxury of demand stability.
 Product Design and Process Engineering: “Toyota Lean” can enjoy the benefits of
“variant design” because “a car is a car is a car” whereas the HVLV system often needs
to design and manufacture parts and products that have little to no similarity with past
orders.
 Availability of Internal Resources: “Toyota Lean” is utilized by companies that often
have the resources to hire full-time engineers or high-profile consulting companies to
implement Lean Manufacturing. Whereas, the typical HVLV system may not have the
engineering talent, technical resources and finances to finance extensive training and
kaizen activities.
 Flowline vs. Jobshop Scheduling: “Toyota Lean” can utilize “Takt Time” to schedule a
single U-shaped cell or multi-product assembly line based on a Single (or Mixed) Model
Assembly Line Balancing problem. Whereas, the HVLV system, unless fully
decomposed into independent manufacturing cells, presents a Jobshop Scheduling
problem.
 Pull vs. Push Scheduling: “Toyota Lean” can rely on market “pull” to control inventory
buffers using kanban signals. Whereas, the HVLV system, since it lacks repetitive and
stable demand, must use priority-based scheduling of orders based on their due dates and
profit margins for the high product mix, and gate the release of new orders into a
capacity-constrained system.
Assessment of Custom Forge Shops

Tours of several forge shops showed that the typical forging facility is characterized by batch-
oriented processes, large monument-like equipment that cannot be relocated into cells, a large
variety of forgings being produced at any time in the facility and manual shopfloor
communications between machine operators, forklift drivers and plant managers/supervisors.
Figures 1(a)-(d) present an industry-wide assessment of different custom forge shops. Figure
259
1(a) shows the flow path of a single forging that is being produced in at least three different
locations. This dispersion of the manufacturing assets, and the functional (or process village)
layout of the facility at each location, results in a Value Added Ratio (Actual Man Hours/Total
Lead Time) of about 1%. Figure 1(b) presents a comparison of the Administrative Lead Time
(ALT) and Production Lead Time (PLT) of several forgings supplied to the DLA by a single
forge shop. Forgings that have a high unit price are seen to have the highest lead times in both
dimensions, which is the primary reason for high WIP costs. Figure 1(c) illustrates the existing
chaos in the material flow network at a DOD supplier of forgings. Figure 1(d) illustrates the
existing chaos in the material flow network at a DLA supplier of forgings.
Clearly, there is a need for new concepts and analysis tools suited specifically for forge shops to
“undertake the journey" to Lean Manufacturing in a manner that suits their business model and
manufacturing environments, instead of verbatim adopting the Toyota Lean model. It is not our
intention to take anything away from what the architects of the Toyota Production System have
achieved. However, it must be recognized that the typical HVLV manufacturer operates in a
Make-To-Order business environment. Hence, these jobshop-type manufacturers do not have an
extensive suite of well-documented and easy methods and tools to support their implementation
of Lean Manufacturing!
Some Key Challenges for Jobshops that wish to Implement Lean Manufacturing
The how-to books on design and operation of “Lean” jobshops are significantly fewer in number
than those written for Lean Manufacturing for assembly line-type facilities. Here is a sample of
challenging issues in the JSLEAN arena that lack effective solutions:
 How does a jobshop segment its product mix into categories such as “Runners”,
“Repeaters” and “Strangers”? Are computer-oriented methods, such as Product-
Quantity-Routing-Revenue (P-Q-R-$) Analysis, Group Technology and Product-Process
Matrix Clustering, capable of analyzing a large database of anywhere between 500 to
5000+ routings?
 How does a jobshop identify and implement not just a single “pilot” cell, but all
potential cells for different families of parts that may exist in its large product mix?
What does it do about the “cats and dogs” in its product portfolio? Could it implement
virtual (dynamic and reconfigurable) cells for a portion of its product mix?
 How does a jobshop develop a self-motivated workforce knowledgeable in Industrial
Engineering skills who seek to eliminate muda in a wide variety of administrative and
production processes on a daily basis?
 How does a jobshop adopt, or adapt, the concepts and models of Lean Thinking when:
o demand forecasts are unreliable or non-existent?
o suppliers may not be prepared to deliver JIT?
o equipment must be multi-function, and not right-sized, to compensate for a small
multi-skilled workforce?
o customers could be here today but gone tomorrow?
o drawings, route sheets, inspection plans, gauges, tools, etc. for past (or new)
orders need to be retrieved (or developed from scratch) on a routine basis?
260
Location 1 Facility
Stockroom Final Inspect

~ 1 34 40 Outside
400' 25 Miles
~
~ Processor
Shipping
38 39
35 36 37 41 42
Machine Shop Inspect

23 22 24
~
1500'
~
Location 3 Facility
100' Press 8 Press 3

2 3 9 13
4 Straighten
Inspect 18 27
15
8 Age
Saw Trim 31 28
5 11 16
2760 100' 10 Etch Heat Treat
3000 6
Grind
12 17 14 29
26
2500 Actual Man Hours

Cleanup
2000 7 19 30 20 25 Penetrant
Total Lead Time
Hours 1500 21 32
Cleanup
1000 33
500 260.4
0 100' 200' 100'
Frequency of
8
Occurance
6
4
2
0
Age
Machine
Penetrant
Heat Treat
Etch
Grind
Cleanup
Shipping
Straighten
Inspect
Saw Trim
Stockroom
Press
Processor
Shop
Outside
Operation
Figure 1(a) Enterprise Flow Map for a Forging

PLT (Production Lead Time)
700
600
500
400 Low Unit Price Parts
300 Medium Unit Price Parts
200 High Unit Price Parts
100 Average LT
0
0 50 100 150 200
ALT (Administrative Lead Time)

Figure 1(b) Comparison of Forgings based on Unit Price, ALT and PLT
261
Figure 1(c) Material Flow Network at a DOD Supplier
Figure 1(d) Material Flow Network at a DLA Supplier
262
 How does a jobshop define and distill its “core manufacturing competencies” into a
guidebook that its sales staff could use to accept, evaluate or reject new orders based on
past cost/benefit performance measures?
 How does a jobshop implement Finite Capacity Scheduling without purchasing
expensive software, since Theory Of Constraints and Drum-Buffer-Rope scheduling
have been known to succeed in such facilities?
 How does a jobshop layout its facility to achieve flow and be flexible to changes in
product mix, demand and manufacturing technology?
 How does a jobshop train its material handlers to perform shopfloor scheduling and
order progressing functions, similar to the “whirligig beetles” (“mizusumashi”s) who are
employed in the Toyota Production System?
 How does a jobshop adopt real-time inventory tracking technology utilized in
warehouses and distribution centers to achieve pseudo-JIT operations?
 How does a jobshop develop a partnership with its suppliers in order to better estimate
and control supplier delivery schedules?
Jobshop Lean (JSLEAN) – Lean Manufacturing for Forge Shops

Typically, in any jobshop, empirical evidence suggests that, of the Seven Types of Wastes
(overproduction, overprocessing, queuing delays, transportation time, work-in-process inventory,
unnecessary motions and travel by operators, scrap and rework), 95% of the production lead time
of an order is dominated by two types of waste: Queuing at each workcenter and Transportation
between workcenters. These dominant wastes can be eliminated or reduced by design and
operation of custom forge shops based on the principles of “Lean Flow” to design any facility
layout:
 Principle #1: Minimizes production flows,
 Principle #2: Maximize directed paths for production flows,
 Principle #3: Minimize the cost of production flows.
Forge shops that pursue military/government contracts have a critical need to be flexible to
respond to significant product mix changes in order to be able to quote short lead times and
profit from short run orders. A poorly-designed facility layout and complex material flows in
these facilities are a primary reason for high manufacturing lead times for delivery of mission-
critical parts to the DLA and DOD.
Typically, the forging equipment in a forge shop is in some type of work cell composed of
heating, forging and trimming capabilities. Unfortunately, these machines have significant
foundations that make it economically infeasible to relocate them. However, the support
equipment for forging, such as induction heating, flash trimming and machining, are mobile, as
are other support operations such as material storage, tool and die storage/repair, material cutting
(shear and saw), shot blasting, magnetic particle inspection. Therefore, the foundation for
implementation of Jobshop Lean in forge shops is:
(1) grouping of the equipment for these support operations into layout modules, and locating
these modules in close proximity to the forging machines,
(2) scheduling the monuments such as heat treatment and plating to coordinate with the
production schedules of the layout modules.
263
Machine shops that are attached to forging facilities are highly suited for implementation of both
manufacturing cells layout modules. Conversion of machine shop layouts into Cellular or
Modular configurations will automatically help forge shops to improve delivery performance,
reduce work in process inventory levels and eliminate scrap.
264
Case Study
The Jobshop Lean strategy was used to design a flexible layout for a custom forge shop, with the
help of the PFAST (Production Flow Analysis and Simplification Toolkit). PFAST is a software
package that consists of an integrated library of computer programs for material flow analysis.
This package integrates Systematic Layout Planning (SLP) and Production Flow Analysis (PFA)
to implement a new computer-aided layout design method developed specifically for jobshops. A
primary capability of this package is the ability to analyze the manufacturing routings of up to
1000 different forgings and identify part families i.e. parts that use the same sets of resources and
have similar, often identical, routings.
1. Data Collection
The sample data provided by the company consisted of 530 products and 57 pieces of equipment.
For detailed Production Flow Analysis of the facility, we collected the P-Q-R-$ information for
each product, which includes: (1) Product Number and Name, (2) Annual Production Quantity,
(3) Manufacturing Routing, and (4) Annual $ales/Revenue. To explore the potential for
manufacturing cells, layout modules and/or product-focused factories, we requested additional
attributes for each piece of equipment besides equipment number and description of equipment:
movability and duplicability. These two additional attributes of each machine, respectively,
address the following two questions: (1) Would it prove exorbitantly expensive to relocate that
piece of equipment? and (2) Could additional copies of the equipment be purchased at reasonable
expense if it is required by several families of products, and each family were to be produced in a
dedicated manufacturing cell?
2. Analysis for Product Mix Segmentation

P-Q Analysis (Product-Quantity Analysis), also referred to as “ABC Analysis” or “Pareto
Analysis”, is a classical approach for product mix segmentation. It sorts the products in order of
decreasing production quantity. Products that are produced in high volumes will appear earlier
in the sorted sequence. Whereas, products produced in low quantities will appear towards the
end of the sorted sequence of products. The underlying logic of P-Q Analysis is that, if a facility
caters to the efficient flow of those products that are produced in the largest quantities, then the
costs of material handling, WIP, queuing and operating costs will be minimized, and the
production lead times of those products will be reduced significantly. However, to select a more
representative sample of products from the original sample submitted by the forge shop, we used
P-Q-$ Analysis, because the type of facility layout that is designed depends on both the revenues
earned by the products and the quantities in which those products are being produced. For
example, products with high volumes could be scheduled using a Kanban system for repetitive
manufacturing; whereas, expensive products that must be produced in small quantities would be
produced on a Make-To-Order basis using standard Finite Capacity Scheduling or Drum-Buffer-
Rope Scheduling methods to prioritize their production.
265
80-671391
80-4012179 80-35-B357
80-4010346
80-4012174
Product Quantity
80-4030011870964
80-27708-302UP
Product Revenue
Figure 2 P-Q-$ Analysis of the Complete Population of Parts
In the P-Q-$ Analysis plot (Figure 2), all of the products in the complete list of forgings
manufactured by the forge shop have been plotted in two dimensions: The X axis of the scatter
plot represents Revenue and the Y Axis of the scatter plot represents Quantity. If we split each
axis into two zones – Low and High – then the product mix could be split into four segments –
(High Volume, High Revenue), (Low Volume, High Revenue), (High Volume, Low Revenue)
and (Low Volume, Low Revenue). Hence, P-Q-$ Analysis provides important guidelines for
correctly selecting a representative sample of products from the original population of products,
preferably those products that represent a large proportion of the Total Quantity produced and
Total Revenue earned by the company. Based on this analysis (and indicated by the dotted line
circling the products selected), only those products produced in quantities greater than 1800 and
earning revenues higher than $30,000 were selected as the “Working Sample” of products on
which to base the facility layout design. The number of products included in this sample is 44,
which is only about 8% of the total number of products in the complete population. However,
this sample of products accounts for 68% of the Total Production Volume and 46% of the Total
Revenue for the company. After the absorption of 35 additional products that have routings
identical to the 44 products, the final Working Sample of products (Table 1) included about 15%
of the total number of products in the original population of 530 forgings, yet accounted for 74%
of the Total Production Volume and 54% of the Total Revenue earned by the company.
3. Production Flow Analysis

The Machine-Product Matrix Clustering result (Table 2) generated by PFAST for the Working
Sample of products showed that there would be considerable machine sharing and overlap if we
sought to design stand-alone manufacturing cells. Since the blocks of operations (indicated by
266
“1”s) cannot be isolated into independent sets, it was concluded that the ideal of Lean
Manufacturing as observed at OEM and Tier 1 or Tier 2 facilities – independent product-focused
(or product family-based) manufacturing cells – may not be the best option for the custom forge
shop. Therefore, it was decided to explore Hybrid Layout options that would achieve streamlined
flow for the diverse sample of products.
To design a Hybrid Layout for the forge shop, we used PFAST to generate the Modified Multi-
Product Process Chart (MM-PPC) (Table 3) for the Working Sample of products. Unlike the
Machine-Product Matrix representation of the product routings, where the “0/1” coding of the
operations loses the actual material flow path of any product, here each routing is modeled as a
linear production line dedicated to the production of that product. The products are shuffled and
re-arranged such that products with similar routings are grouped together and machines that they
use are placed in a Flowline configuration, similar to an assembly line. Using the MM-PPC,
flexible layout configurations (Cascading Flow Lines, Virtual Cells, Hybrid Flowshop and
Modular Layouts) that are well suited for the high-variety low-volume manufacturing conditions
of any jobshop can be generated. This is because the MM-PPC visually guides the Industrial
Engineer to group products with similar/identical routings into families, and the machines that
each family uses into layout modules, manufacturing cells or functional departments.
267
Table 1 Product Routings in the Working Sample

6-Month Selling 6-Month Product Routings
Product No.
Quantity Price Total $ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
80-A37353 17 6 2 11 10 29 54 55
80-C27416-1 17 6 2 11 10 29 54 55
80-C27416-2 17 6 2 11 10 29 54 55
80-C46806-1 17 6 2 11 10 29 54 55
80-C55581 17 6 2 11 10 29 54 55
80-C558-1 17 6 2 11 10 29 54 55
80-D8097 17 6 2 11 10 29 54 55
80-B113-1001 17 56 57 54
80-4003111 1 57 25 52 48 55
80-4009121 1 57 25 52 48 55
80-4009262 1 57 25 52 48 55
80-4009263 1 57 25 52 48 55
80-4009270 1 57 25 52 48 55
80-4010346 1 57 25 52 48 55
80-4010348 1 57 25 52 48 55
80-4010349 1 57 25 52 48 55
80-4010350 1 57 25 52 48 55
80-4010351 1 57 25 52 48 55
80-4010352 1 57 25 52 48 55
80-4011714 1 26 57 52 48 55
80-4011725 1 57 25 52 48 55
80-4012169 1 26 57 52 48 55
80-4012174 1 26 57 52 48 55
80-4012179 1 26 57 52 48 55
80-4012212 1 26 57 52 48 55
80-4012213 1 26 57 52 48 55
80-4030339 1 27 9 57 48
80-4030341 1 27 9 57 48
80-4035144 1 28 50 27 48 55
80-4035149 1 28 50 27 48 55
80-4039260 1 28 50 27 48 55
80-4041707 1 57 25 52 48 55
80-4059989 1 26 57 52 48 55
80-4067179 17 39 40 26 57 54 57 55
80-4030011870964 17 39 40 21 22 53 29 28 4 55
80-150T084LT 17 6 2 7 12 8 42 41 57 55
80-G121-1002 17 6 2 7 12 8 42 41 57 55
80-NL150T060LT 17 6 2 7 12 8 42 41 57 55
80-NL150T072LT 17 6 2 7 12 8 42 41 57 55
80-NL150T084LT 17 6 2 7 12 8 42 41 57 55
80-NL150T096LT 17 6 2 7 12 8 42 41 57 55
80-NL150T120LT 17 6 2 7 12 8 42 41 57 55
80-3249869 17 56 1 17 29 26 54 57 48
80-121009-00 17 39 40 21 22 55
80-121188-002 17 39 40 21 22 55
80-121189 17 39 40 21 22 55
80-671391 17 16 11 10 26 4 55
80-121018-00 17 39 40 21 22 55
80-121148 1 50 26 27 55
80-121387 17 39 40 21 22 55
80-ULC0200 17 39 40 21 22 55
80-35-B357 17 1 57 4 54 55
80-27750-01 17 39 40 42 41 3 7 12 57 54 55
80-37355-1072 17 6 2 7 12 8 42 41 57 55
80-37355-1084 17 6 2 7 12 8 42 41 57 55
80-051-1 17 1 26 4 54 55
80-191820 17 16 11 10 26 29 28 27 48
80-522500 17 16 11 10 26 29 28 27 48
80-551500 17 16 11 10 26 29 28 27 48
80-S113-1001 17 16 11 10 57 53 55
80-S113-1004 17 16 11 10 57 53 55
80-27708-302UP 17 39 40 16 9 11 10 39 40 57 54
80-9033023-303 57 54 57 55
80-9627712-301UP 17 6 56 16 11 10 6 7 12 8 54 57 54 53 8 55
80-9627713-301UP 17 6 56 16 11 10 6 7 12 8 54 57 54 53 8 55
80-9627714-301UP 17 6 56 16 11 10 6 7 12 8 54 57 54 53 8 55
80-9627715-301UP 17 6 56 16 11 10 6 7 12 8 54 57 54 53 8 55
80-9627716-301UP 17 6 56 16 11 10 6 7 12 8 54 57 54 53 8 55
80-3260-041 17 6 2 11 10 29 28 54 57 55
80-3260-0980 17 6 2 11 10 29 28 54 57 55
80-3260-503 17 6 2 11 10 29 28 54 57 55
80-671635-00 17 3 7 12 26 4 55
80-4030007296089 17 3 7 12 8 4 54 29 4 55
80-4030007296090 17 3 7 12 8 4 54 29 4 55
80-4030007296091 17 3 7 12 8 4 54 29 4 55
80-4030007296094 17 3 7 12 8 4 54 29 4 55
80-27377 17 16 11 10 26 4 55
80-921790 17 3 7 12 8 54 29 28 4 55
80-W101-2006 17 6 2 42 33 41 54 57 4 55
268
Table 2 Machine-Product Matrix Clustering for the Working Sample

Product No.\ Equipment No. 39 40 21 22 4 3 29 28 55 57 17 54 7 12 8 6 2 42 41 11 10 16 53 56 9 27 50 26 1 48 52 25 33
80-9033023-303 1 1 1
80-B113-1001 1 1 1 1
80-35-B357 1 1 1 1 1 Shared Machines 1
80-051-1 1 1 1 1 1 1
80-3249869 1 1 1 1 1 1 1 1
80-4067179 1 1 1 1 1 1 1
80-27750-01 1 1 1 1 1 1 1 1 1 1 1
80-27708-302UP 1 1 1 1 1 1 1 1 1
80-S113-1001 1 1 1 1 1 1 1
80-9627713-301UP 1 1 1 1 1 1 1 1 1 1 1 1 1
80-9627715-301UP 1 1 1 1 1 1 1 1 1 1 1 1 1
80-C27416-2 1 1 1 1 1 1 1 1
80-3260-041 1 1 1 1 1 1 1 1 1
80-150T084LT 1 1 1 1 1 1 1 1 1 1
80-NL150T060LT 1 1 1 1 1 1 1 1 1 1
80-NL150T072LT 1 1 1 1 1 1 1 1 1 1
80-37355-1072 1 1 1 1 1 1 1 1 1 1
80-37355-1084 1 1 1 1 1 1 1 1 1 1
80-W101-2006 1 1 1 1 1 1 1 1 1 1
80-671635-00 1 1 1 1 1 1 1
80-4030007296091 1 1 1 1 1 1 1 1 1
80-4030007296094 1 1 1 1 1 1 1 1 1 Part Families
80-921790 1 1 1 1 1 1 1 1 1 1
80-671391 1 1 1 1 1 1 1
80-191820 1 1 1 1 1 1 1 1 1
80-4030011870964 1 1 1 1 1 1 1 1 1 1
80-121009-00 1 1 1 1 1 1
80-121188-002 1 1 1 1 1 1
80-121018-00 1 1 1 1 1 1
80-4009121 1 1 1 1 1 1
80-4009263 1 1 1 1 1 1
80-4009270 1 1 1 1 1 1
80-4010346 1 1 1 1 1 1
80-4010348 1 1 1 1 1 1
80-4010350 1 1 1 1 1 1
80-4041707 1 1 1 1 1 1
80-4011714 1 1 1 1 1 1
80-4012169 1 1 1 1 1 1
80-4012174 1 1 1 1 1 1
80-4012179 1 1 1 1 1 1
80-4030339 1 1 1 1 1
80-4030341 1 1 1 1 1
80-4035149 1 1 1 1 1 1
80-121148 1 1 1 1 1
269
Table 3 Modified Multi-Product Process Chart for the Working Sample

Product No. Product Routings
80-9627713-301UP 17 6 56 16 11 10 6 7 12 8 54 57 54 53 8 55
80-9627715-301UP 17 6 56 16 11 10 6 7 12 8 54 57 54 53 8 55
80-3260-041 17 6 2 11 10 29 28 54 57 55
80-C27416-2 17 6 2 11 10 29 54 55
80-121009-00 17 39 40 21 22 55
80-121188-002 17 39 40 21 22 55
80-121018-00 17 39 40 21 22 M3 55
80-4030011870964 17 39 40 21 22 53 29 28 4 55
80-921790 17 3 7 12 8 54 29 28 4 55
80-4030007296091 17 M4 3 7 12 8 4 54 29 4 55
80-4030007296094 17 3 7 12 8 4 54 29 4 55
80-671635-00 17 M2 3 7 12 26 4 55
80-671391 17 16 11 10 26 4 54 55
80-051-1 17 1 26 4 M5 55
80-121148 1 50 26 27 55
80-4035149 1 28 50 27 48 55
80-4030339 1 27 9 57 48
80-4030341 1 27 9 57 48
80-4009121 1 57 25 52 48 55
80-4009263 1 M1 57 25 52 48 55
80-4009270 1 57 M7 25 52 48 55
80-4010346 1 57 25 52 48 55
80-4010348 1 57 25 52 48 55
80-4010350 1 57 25 52 48 55
80-4041707 1 57 25 52 48 55
80-4011714 1 26 57 52 48 55
80-4012169 1 26 57 52 48 55
80-4012174 1 26 57 52 48 55
80-4012179 1 26 57 52 48 55
80-9033023-303 57 54 57 55
80-4067179 17 39 40 26 57 54 57 55
80-27750-01 17 39 40 42 41 3 7 12 M6 57 54 55
80-150T084LT 17 6 2 7 12 8 42 41 57 55
80-NL150T060LT 17 6 2 7 12 8 42 41 57 55
80-NL150T072LT 17 6 2 7 12 8 42 41 57 55
80-37355-1072 17 6 2 7 12 8 42 41 57 55
80-37355-1084 17 6 2 7 12 8 42 41 57 55
80-W101-2006 17 6 2 42 33 41 54 57 4 55
80-35-B357 17 1 57 4 54 55
80-B113-1001 17 56 57 54
80-3249869 17 56 1 17 29 26 54 57 48
80-191820 17 16 11 10 26 29 28 27 48
80-S113-1001 17 16 11 10 57 53 55
80-27708-302UP 17 39 40 16 9 11 10 39 40 57 54
270
4. Department Planning and Generation of Appropriate Layout Alternatives

Using the MM-PPC, seven layout modules (Figure 3) were identified and the flow diagram
connecting the modules (Figure 4) was generated. A layout module is defined as “a small group
of machines that exhibits a material flow pattern corresponding to a specific type of layout, such
as a Flowline, Process Department, Manufacturing Cell, etc.”. Each layout module could be
operated and scheduled as a single machine or department. In the current layout of the forge
shop, if a product has to follow its manufacturing routing between every pair of machines, it is
moved in classic (and unprofitable) batch mode. Now, with several small groups of machines
grouped into a network of layout modules, one-piece or small batch flow could be achieved
inside each module. In addition, this type of flexible layout would result in fewer batch-mode
trips between distant locations in the new facility layout.
Based on the flow diagram for the Modular Layout, the Modular From-To Chart (Table 4) was
generated. This chart is a reduced version of the original From-To Chart where the aggregate
flows between pairs of individual (ungrouped) machines were shown. Now, many of those
machine-to-machine flows have been completely absorbed into a single module, which results in
fewer long-distance flows between pairs of machines placed in different layout modules. With
reference to the Modular From-To Chart, “M1-M7” are the layout modules, “56” is an individual
machine, “IN” is the Receiving area, “OUT” is the Shipping area (or office location), and
“External” is a group of machines - #53, #54, #55 and #57 – located off-site, including the
Machine Shop located far away from the forge shop.
1
11 10
M1 17 M3 21 22
M2 16
39 40
9
50
6 3 27 41
M4 M5 26 4 28 M6 42
2 7 12 8 33
29
M7 25 52 48
Figure 3 Layout Modules identified using the Working Sample
271
External
M3 M6
IN M1 M4 M5 M7 OUT
56
M2
Figure 4 Flow Diagram for the Modular Layout
Table 4 From-To Chart for the Modular Layout

Module M1 M2 M3 M4 M5 M6 M7 56 External In Out
M1 - 1034 940 4041 1209 1 5 2791
M2 610 - 371 1875 35
M3 - 940
M4 1497 - 1235 605 371 1094
M5 7 - 887 5050
M6 - 605
M7 - 3366 12377
56 2 371 - 3
External 371 1625 2873 - 104229
In 113974 2632 -
Out -
5. Evaluation of Layout Alternatives

The Modular Layout generated using the previous analyses was compared to the current layout.
The flow diagram of the current layout (Figure 5) shows the existing locations of various
machines and support equipment in use at the company, and the flows in the current layout. The
flow path of any product starts from Receiving (IN), goes through the sequence of machines
dictated by its routing, and ends in Shipping (OUT). Machines represented as grey rectangles
occur in the product routings of the Working Sample selected using P-Q-$ Analysis; whereas,
the machines represented as white rectangles are not used by the products in this sample.
272
The flow diagram for the proposed Modular Layout (Figure 6) shows the recommended
relocation and grouping of various sets of machines into several layout modules, each of which
could be operated by a single, or small group of associates, and the flows in the Modular From-
To Chart superimposed on the proposed layout. Also, the different modules have been assigned
to a new “desired or recommended” location on the forge shop premises in order to minimize the
total distance (and time) of travel between different pairs of modules. Machines represented as
white rectangles are the “monuments” that cannot be re-located in any new layout that the
company decides to implement.
A comparison of the two flow diagrams shows that, without moving the monuments, if the other
machines on the premises were to be grouped into modules and relocated, then there would be a
drastic improvement in (1) the speed of material flows between the modules, (2) visual
connectivity and communication among interdependent machines and (3) multi-machine
operation by individual operators. If it were possible to relocate some of the monuments and
place them at locations that matched their “optional locations” in the improved material flow
network, then even more significant reductions in scrap, order completion time, material
handling costs and wasted labor hours would be achieved.
Figure 5 Flow Diagram for the Current Layout
273
M4
2
12 3
6
8
M7 Machine Shop < 1000
25 57 1000-2000
55 54 53
7 48 2000-3000
52 3000-4000
11
External >4000
10
16 9 56 28 27 26
29 50 4
M2
M5
M3
1 40 21 22
17 39
M1
33 M6
12
41
Figure 6 Flow Diagram for the Modular Layout
6. Implementation and Results

Based on the PFAST analyses and layout recommendations provided, the forge shop made
significant layout changes and capital investments to acquire additional equipment. At the time
of writing this paper, for just one group of products (upset and forged parts), the company has
already experienced a cost savings of 3%. The initial procedural changes in handling, finishing
and shipping have yielded 4-5% cost savings. More significant savings are expected as the
implementation progresses, especially with the newly purchased equipment allowing for several
manufacturing cells to be implemented. Details of this success story were presented at a
workshop conducted on February 10-11, 2004, in Cleveland, OH, on the theme Jobshop Lean:
Lean Manufacturing in Custom Forge Shops. To obtain an electronic copy of this success story,
please contact Andy Ulven (andy@ulvencompanies.com, Ph: (888) 558-9779). Else, to obtain a
copy of the complete workshop proceedings, please contact Jon Tirpak (tirpak@aticorp.org, Ph:
(843) 760-4346). For further information about future JSLEAN workshops, please visit
http://fdmc.aticorp.org/jobshoplean/index.html.
Conclusion
Custom forge shops that are suppliers to defense organizations, such as the Defense Logistics
Agency, are typically high-variety low-volume (HVLV) jobshops. When the traditional Toyota
274
Lean methods are applied in a jobshop, a majority of the tools either need significant
modification to be applicable, or they must be replaced by alternative methods that address the
core complexities of a jobshop (diverse product mix, variable demand and wide customer base).
The JSLEAN (Jobshop Lean) approach, powered by the PFAST (Production Flow Analysis and
Simplification Toolkit) software for material flow analysis, part family formation and facility
layout, that has been developed at The Ohio State University, has proved to be a strong
foundation for deployment of Lean Thinking in jobshops. In a pilot project done at a custom
forge shop, PFAST helped to develop a “road map” for the FDMC project partner to acquire new
equipment, systematically reorganize their layout, review outsourced operations and initiate
training programs to educate their workforce on Lean Thinking.
Acknowledgements
This paper is based on work that has been supported by numerous individuals, in particular:
 Jon Tirpak, Advanced Technology Institute
 Dr. Rajiv Shivpuri, Ohio State University
 Doug Brown, Inductoheat/Inductotherm Group
 George Layne and Charlie Hageman, Forging Industry Association
 Sadono Djumin, Christine Djunaedi, Heng Huang, Smart Khaewsukkho and Lily Susanto,
Ohio State University
Clearly, this initiative to develop and deploy JSLEAN and PFAST is a team effort that involved
valuable contributions from numerous individuals and organizations!
This work would not have been possible without the support of several custom forge shops –
Aluminum Precision Products, Anchor Harvey, Commercial Forged Products, Consolidated
Industries, General Dynamics–Ordnance and Tactical Systems (formerly Intercontinental
Manufacturing Co.), Scot Forge, Turbine Engine Component Technologies (TECT), Ulven
Forging Inc. – who agreed to open the doors of their facilities to our inquisitive eyes, hired
several ISE graduate students as full-time interns and partnered on our FDMC project to deploy
Lean Thinking in their facilities. In particular, we wish to thank Andy Ulven (President, Ulven
Forging Inc.) for providing valuable data and information for our case study, and committing to
implementation of many of our recommendations derived from that study.
We wish to sincerely thank the other core members of the PFAST development team – Smart
Khaewsukkho and Dr. Jin Zhou – for developing this exciting new software tool that has made it
possible to rapidly execute a JSLEAN deployment project in just about any jobshop, regardless
of industry sector or SIC code.
The following federal organizations provided funding that has sustained this R&D project for
several years:
(1) National Science Foundation (NSF): This material is based upon work supported by the
National Science Foundation under Grant Nos. DMI-9521278, DMI-8523809 (later DMI-
9796034), DMI-9734815, DMI-9821033 and DMI-9908437. Any opinions, findings, and
conclusions or recommendations expressed in this material are those of the author(s) and do
not necessarily reflect the views of the National Science Foundation.
(2) PRO-FAST Program supported by the Defense Logistics Agency (DLA): The PRO-FAST
Program is enabled by the dedicated team of professionals representing the Department of
275
Defense (DOD) and industry. These teammates are determined to ensure the Nation's
forging industry is positioned for the challenges of the 21st Century. Key team members
include: R&D Enterprise Team (DLA J339), Logistics Research and Development Branch
(DLA - DSCP).
Finally, we wish to thank all the members of the JSLEAN (Jobshop Lean) discussion forum at
http://groups.yahoo.com/group/JSLEAN/ whose comments and suggestions have guided the
development of the Jobshop Lean strategy and functional capabilities of PFAST.
276

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Contents

Value Stream Mapping: A Foundation Step for Lean Manufacturing 1

Value Stream Mapping from an IE Viewpoint: Ideas for Enhancement and

Value Stream Mapping from an Industrial Engineering Viewpoint 84

Evaluation of the Value Stream Mapping Icons for Use in Jobshop-type

Value Network Mapping (VNM): Visualization and Analysis of Multiple

Value Stream Mapping of a Complete Product 166

Integration of Lean Thinking and Theory of Constraints in a Custom Forge

An Overview of Production Flow Analysis (PFA) 248

Design of High-Variety Low-Volume (HVLV) Manufacturing Facilities

Computer-aided Production Flow Analysis for Production Lead Time

Department of Industrial, Welding and Systems Engineering

© Shahrukh A. Irani and Jason C. Pereira ,1 The Ohio State University

• Lean means “More for Less”.

• More profit, more productivity for less costs and

• The main goal of Lean Manufacturing is to

How does a company go about eliminating waste ?

• Find the sources of waste.

• Eliminate/reduce those sources of waste.

• Sustain efforts to reduce waste by supporting

Add Actual Necessary, but

Account for 45-50%

• Value Stream Mapping is the tool that

Source: Rother & Shook, p. 4

• The objective of „lean‟ is to have a value-adding

• In order to do so we need a vision of the flow.

• Value Stream Mapping is a tool which enables us

Select a Product Family

Draw the Current State Map

Draw the Future State Map

Source: Rother & Shook, p. 9

 This family should be selected

revenue products using P-Q-R-V Draw the Future State Map

• Other criteria that could be used: Y

market segment, customer group, Work Plan & Implementation

BOM complexity, common

High Draw the Current State Map

Earners Select products from Draw the Future State Map

Work Plan & Implementation

• A family of products with

Flow Analysis, Group

Analysis, etc. Draw the Future State Map

• Caution: Choose the product Implementation

based on the different part Y

Work Plan & Implementation

numbers in the family, the

Procedure: Select a Product Family

• Start mapping the current flow from the

closest to the customer demand.

• Obtain time information for each step in Y

the flow. Work Plan & Implementation

• Show a time-line/cost-line capturing the

Mon+ Max. 20 pieces

Transportation Finished Goods First-in-First-Out

Source: Rother & Shook, Appendix 13

Withdrawal Kanban Production Kanban Signal Kanban

Kaizen „Go See‟

Source: Rother & Shook, Appendix 14

30 secs. 30 secs. 30 secs. 30 secs. 195 secs.

Total Throughput Time = 48 days

• Equipment Costs – Costs for purchase/lease,

• Transportation Costs – These include the costs of

• Demand for a product.

P99SS1069 P99SS1145 P99SS10643 P99SS10652 P99SS1062 P99SS0127 P99SS1067 P97SS0229 P97SS0211