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Enhanced Value Stream Mapping: Potentials and Feasibility of IT Support

through Manufacturing Execution Systems

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DOI: 10.1007/978-3-662-47200-2_42

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 Enhanced value stream mapping:
Potentials and feasibility of IT support through
manufacturing execution systems

Markus Philipp Roessler1,*, Ina Kleeberg1, Moritz Kreder1,

Joachim Metternich1, and Klaus Schuetzer2
1
Institute of Production Management, Technology and Machine Tools,
Technische Universitaet Darmstadt, Otto-Berndt-Str. 2, 64287 Darmstadt, Germany
2
Lab. for Computer Integrated Design and Manufacturing, Methodist University
of Piracicaba, Rod. Luis Ometto (SP 306), 13451-900 Santa Barbara d’Oeste, Brazil
roessler@ptw.tu-darmstadt.de

Abstract. Value stream mapping (VSM) is widely spread both in research and
industrial application. In some industries it is established as a standard approach and
starting point for improving production systems. This is because of the relatively
distinct ease of use and the high effectiveness of the method as well as the
standardized visualization. Nowadays production systems are more and more
characterized by a high volatility concerning volume and variants of produced parts.
Here the method of VSM reaches its limits because of its snapshot character and the
rather manual data collection. In order to cope with this volatility quick data
collections and the possibility to view historical data regarding e.g. inventory,
process characteristics or energy consumption as a factor for sustainability are
getting more important. Thus in this paper the use of manufacturing execution
systems (MES) is examined to support the main elements of VSM: the value stream
analysis (VSA) leading to current state maps and the value stream design (VSD) of
future states. Further potentials and inhibitions are discussed using a case study.

1 Introduction

Due to a constant increase of international competition through globalization of markets

and a dynamic environment, producing companies are forced to increase their productivity
and this at lower costs while rising quality. In order to strengthen their competitiveness
and to cope with global mega trends, modern production systems have to be lean and flex-
ible. To put this into practice, the methods of lean manufacturing are most suitable. [1]
The main principles of lean manufacturing, which bases on the work of Ohno at
Toyota [2], are the increase of production flow, the elimination of waste and variability as
well as the involvement of employees. [3] By eliminating waste and reducing

*
Corresponding author.

© Springer-Verlag Berlin Heidelberg 2015 393

M. Gen et al. (eds.), Industrial Engineering, Management Science and Applications 2015,
Lecture Notes in Electrical Engineering 349, DOI: 10.1007/978-3-662-47200-2_42
394 M.P. Roessler et al.

lead time, the productivity of companies, work in progress levels and the flexibility re-
garding volume and variants can be systematically improved [4]. In order to meet the
claim of a holistic improvement on production system level, the method of VSM was de-
veloped as a tool for the implementation of lean thinking. The focus of this method is not
on optimizing single (production) processes, but rather entire process chains from receipt
to delivery of goods. [5] An optimization of material flow systems is of crucial importance
for the performance of production systems [6]. VSM is widely accepted in industry and
already established as a standard approach especially in the automotive sector [7]. Projects
to improve production systems require a comprehensive analysis of the existing value
stream. Information on shop floor level needs to be collected, analyzed and interpreted.
The mapping as well as the design process is typically performed with paper and pen [8],
the representation of complex production systems however is difficult to achieve by this
method [9].
Nowadays MES are increasingly in use for the control and optimization of production,
supporting order control on the one hand and data acquisition and analysis on the other
hand. A large amount of production relevant data is available in such systems, so it seems
reasonable to use this data to support value stream improvement projects. Originally MES
don’t offer the possibility to help mapping value streams because the systems are not able
to picture material flows and are centrally controlled. So the two principles can’t be com-
bined that easy at the first glance. [10] However, lean production systems can benefit from
MES in order to react quickly to problems and deviations in production [11]. In this paper
inhibitions for the combination of both MES and VSM are uncovered, potentials are
pointed out and discussed.

2 Methodology and study design

To show the potentials of a connection between VSM and MES it’s recommendable to
discuss a procedure model for VSM in the first step, see therefore figure 1. Such a model
can be used to describe the sequence of actions in industrial improvement projects using
VSM.
Focus of this paper
Information flow
Static
Value stream Value stream quantification Implementation
Project Multidimensional
analysis: Current design: Future plan for suitable
laye r
Dynamic assessment
state map state maps design
quantification

Information
laye r
Manufacturing execution system

Physical
laye r
Volatile production environment

Fig. 1. Process model for VSM enriched by an information layer with MES
 Enhanced Value Stream Mapping 395

This procedure model shows an enhanced VSM approach based on the one developed
by Rother [12]. It was set up with the goal of developing multiple future states and in-
cludes quantification and an assessment step of developed future states before actual im-
plementation. As pointed out here, information about the real production environment
contained in MES can be potentially used in two ways. At first information out of MES
could be used to derive a current state map, or at least facilitate the data collection process.
A second potential field of application is the support of the design phase.

3 Feasibility of VSM supported by MES

3.1 VSA supported by MES

This paragraph describes synthesis and evaluation of a feasibility study, whether MES are
capable of providing support during a VSA or if they can be used to automatically gener-
ate a current state map out of the included data. Before proceeding to examine this issue, it
is necessary to prepare a brief overview of VSA followed by the feasibility assessment.
VSA is an instrument often used as a starting point for the implementation of a lean pro-
duction concept [9]. Objectives of this step are to transparently represent the production
process, to visualize areas of wastes and to ensure a system-wide perspective, whereby a
good understanding between material and information flow is given. Another key aspect is
the symbolism, whereby a common language is created. [8]
VSA is the representation of an existing value chain, including the material and infor-
mation flow. A systematic process representation is the result. Each production process
can be mapped using VSA; afterwards it can be optimized by an appropriate VSD [3]. The
requirements of the customers and the suppliers are integrated into the analysis, whereby
the circuit is mapped completely from incoming orders to the dispatch of the products [8].
The method can reveal deficits in production planning and control, as well as manufactur-
ing processes.
In terms of creating current state value stream maps out of MES data, the information
content required for a VSA has to be identified and structured in a first step. Afterwards
the core functions of MES will be analyzed and examined, to what extent they are able to
provide the necessary data for VSA. Currently a vast amount of providers for MES exist
on the market. Therefore a market analysis was performed to identify the main functions
which are available by the most systems and then to assign them to the main tasks of MES
[13]. 75 systems were identified, which fulfil the defined functions. Table 1 visualizes
these functions and the VSA data demand.
396 M.P. Roessler et al.

Table 1. Functions of MES and data demand for VSA

MES function Data demand for value stream analyses

Planning of product variants, sales per product, work days per year, no. of identical parts,
production program planned production time, demand per period, raw material
Steps and sequence product variants
production processes, sales per product, parts produced, delivery period, work
days per year, working time per day, no. of workers per shift, no. of alternative
Detailed production equipment, process time, lot size, no. of identical parts, planned production time
planning per production process, no. of produced parts, no. of scrap parts, no. of rework
parts, no. of variants per production process, transport relations, storage location,
storage capacity, raw material, replenishment lead time
no. of produced parts, customer, demand per period, delivery period, real delivery
Order management
time, business processes, no. of orders, information flow relations
product variants, production processes, real delivery time, work days per year, no.
of workers per shift, process time, no. of identical parts, no. of alternative equip-
Production control ment, changeover time, lot size, no. of produced parts, no. of scrap parts, no. of
rework parts, transport relations, storage location, storage capacity, stock count,
demand per period, raw material, replenishment lead time
Tool management equipment, no. of alternative equipment
Maintenance planned production time
Production logistics transport relations, storage location, storage capacity, demand per period
Material product variants, no. of produced parts, identical parts, lot size, storage location,
management storage capacity, demand per period, raw material, replenishment lead time
HRM work days per year, working time per day, no. of workers per shift
process time, machining time, lot size, changeover time, machine operating time,
Plant and machine
availability, planned operating time, no. of produced parts, no. of scrap parts, no.
data collection
of rework parts, stock count
no. of produced parts, real delivery time, process time, machining time, changeo-
Analysis /
ver time, planned production time, planned operating time, real operating time,
reporting
availability, transport relations
Quality no. of produced parts, customer, delivery period, real delivery time, no. of pro-
management duced parts, no. of scrap parts, no. of rework parts, error rate, delivery reliability
Optimization production processes
sales per product, no. of produced parts, demand per period, real delivery time,
Documentation and
transport relations, replenishment lead time, error rate, delivery reliability, no. of
history
employees
Work flow business processes, information flow relations
Tracking / tracing equipment

The survey shows that it is theoretically possible to collect most of the necessary indica-
tors by using commercially available MES. In practice the actual data collection process is
not that easy, e. g. when it comes to mapping stocks. A permanent inventory management
enables access to accurate inventory data of each stock at any time. To this end, an exist-
ing warehouse management is required which accurately picks up the data. [14] However,
the book inventory represents only the stock levels derived out of inventory and order
transactions. Schoensleben describes that despite accurate inventory management devia-
tions of the actual and set inventory may occur [15].
The theoretical influences to the stock amount are quite high, in order to cope with these
influences highly sophisticated systems and sensor implementations are necessary. In
practice this is mostly linked to high financial investments.
 Enhanced Value Stream Mapping 397

Another main inhibition regarding the data demand of a current state map is the detec-
tion and mapping of in- and outbound orders like orders from customers or orders for raw
material to suppliers. This level of information is usually only available at ERP (enterprise
resource planning) systems because they include the corporate processes of purchasing
and distribution.
The most striking observation to emerge from the feasibility study is that it is easy to re-
ceive information about internal (production) processes and orders, but not about the actu-
al material flow between the process steps. Here MES don’t offer the function of parame-
terizing logistics functions, like if processes are connected via push principle, FIFO-lanes
(first-in-first-out), supermarkets, directly via flow, etc.
The results of this investigation showed that currently MES are capable of supporting
existing current state maps with up-to-date information, the automatic and complete gen-
eration of current state maps is not possible with the main functions provided by available
MES solutions.

3.2 VSD supported by MES

In this section the results of another feasibility study are shown, if MES are capable of
providing support during a VSD process or if they can be used to automatically generate a
future state map on the basis of included data. Before proceeding to examine this issue, a
brief report about VSD will be given, followed by the assessment.
VSD is the second step of VSM. Based on the current state of the production system,
one or multiple better future states have to be derived [8]. Today's production systems
attempt to align with the Toyota production system (TPS). This production system is con-
sidered as being an ideal system for the total elimination of waste. The basic idea of the
TPS is the same as for VSD: the elimination of all non-value adding activities. The ad-
vantage of VSM is the capability of detecting waste and its causes [8]. The latter can be
located precisely by using a VSA and the offered graphical representation. The main focus
of VSD is on the observation and improvement of the entire production system. Waste
identified at individual process steps can be resolved by single lean methods such as “sin-
gle minute exchange of die” (SMED) or "poka yoke" (error avoidance strategies).
For improving production systems with the VSD approach eight design guidelines are
available [8]. By following these guidelines, one or multiple future state maps can be de-
rived out of the current state map. In order to find out if MES are able to offer recommen-
dations to improve a production system the defined MES functions (see table 1) were ana-
lyzed and compared to the needed information for fulfilment of the VSD guidelines. The
results of the feasibility study are shown in table 2.
The results show that currently MES are capable to support decision makers in the pro-
cess of designing improved value streams with additional data. For example data to draw
tact diagrams and visualize capacities as well as live data allocated to acquisitions at pro-
cesses (like changeover times, availability, process times, etc.) are available out of MES
databases. However, the same inhibitions regarding the missing function of mapping mate-
rial flows exist, that makes it impossible to automatically create suggestions by the system.
Recommendations to rearrange or link processes cannot be realized by the systems.
398 M.P. Roessler et al.
Table 2. Guidelines for VSD, resulting data demand and evaluation of feasibility based on
MES main functions
Design Data demand for design guideline
guideline
Orientation cycle times, process times, lot
at custom- sizes, no. of identical parts, no. of
er's tact identical processes, working time,
demand per period, customer's tact,
capacities, machining times,
changeover times, produced parts,
OEE
Process work sequences for products,
integration layout and position of processes,
changeover times, availability,
process times, size of products
FIFO no. of variants, volumes for each
connection variant, process times, container
sizes, transport times, working
time, demand, lot sizes, changeo-
ver times, availability
Kanban no. of variants, volumes for each
control variant, process times, container
sizes, transport times, working
time, demand per period, lot sizes,
changeover times, availability,
WIP, no. of kanbans, safety stock
Pacemaker material flow types between
process processes
Smoothing lot sizes, process and machining
of produc- times, changeover times, no. of
tion identical processes, EPEI indicator,
working time per day
Production lot sizes, working time, demand
order per period, customer's tact, con-
entity tainer sizes
Bottleneck cycle times, process times, lot
control sizes, no. of identical parts / pro-
cesses, working time, demand,
customer's tact, capacities, machin-
ing times, changeover times, pro-
duced parts, OEE
3.3 General requirements
In addition to both feasibility studies some further, general requirements could be identi-
fied out of interviews with two automotive value stream experts. These requirements serve
as prerequisites and have to be fulfilled by the used MES in order to be able to contribute
purposefully to VSM:
Feasibility
Data available for creating tact diagram, visualization
using cycle times and customer's tact not included in
most MES. Suggestions could be made from the
system to raise the working time or improve effec-
tiveness of processes. Visualization of over-capacity
theoretically possible
A similar work sequence for all products over the
processes is required. MES mostly don't use graphical
representations of factory layout, or product sizes, so
a suggestion for process integration only could be
theoretically made considering process characteristics
Calculation of buffer sizes and theoretical feasibility
is possible, technical suggestions, however are diffi-
cult to derive because of layout issues. Use of simula-
tion software plugin possible
Calculation of buffer sizes and theoretical feasibility
is possible, technical suggestions, however are diffi-
cult to derive because of layout issues. When already
using kanban, the dynamic kanban and volume calcu-
lation is possible to integrate into MES
Last supermarket has to be set as pacemaker. Identify-
ing material flow types is not possible in existing
systems. Pacemakers have to be allocated manually
Possibility of manual sequencing is integrated by
most MES, however a module for automatic order
sequencing only is partially available. MES can
suggest to lower the EPEI indicator to gain flexibility
Volume released for each production order can be
calculated using customer's tact and container sizes.
Such information is distributed from an ERP system
which is not scope of the MES
Calculation of bottlenecks is possible using existing
data. A suggestion could be offered by the MES to
release orders directly at this process. However tech-
nical properties and material flow types are to be
considered as well, which currently is not possible
 Enhanced Value Stream Mapping 399

 Timeliness: The collected data must be up to date and assigned to one time period.
 Correctness: Data used for creating a value stream map or derive improvement potential
has to be accurate, otherwise decisions based on that can be faulty.
 Completeness: It must be possible to map the chosen value stream completely. If pro-
cess steps are missing or have no connection to the MES, VSM cannot be applied cor-
rectly. This also requires interfaces to processes and storages.

4 Case study

In order to validate the theoretical assessment of the combination of MES and VSM a case
study was conducted at the Center for industrial Productivity (CiP) at the Technische Uni-
versitaet Darmstadt. The CiP represents a real industrial production environment with
machining and assembly areas for educational and staff training purposes. The production
system produces pneumatic cylinders in four variants for various applications and is con-
trolled using the MES Hydra 8 from MPDV Mikrolab. This system offers the standard
functions (see table 1). The fulfilment of the general requirements was given during this
study.

4.1 Practical feasibility of VSA supported by MES

In a first step the necessary criteria (see table 1) could be identified out of the implemented
system and a current state map could be set up manually. The MES does not offer a possi-
bility to create and visualize current state maps automatically.
The case study has confirmed the findings and underlines the identified barriers of the
feasibility study (see paragraph 3.1). These are mainly inhibitions regarding the acquisi-
tion of present inventory and top-level order information. The other barrier of mapping
material flows is also present. To map all processes and material flows it is required to set
up a complete order network in the MES. The possibility to add order networks does al-
ready exist, only the links must be added e. g. with the help of a BOM (bill of material).
The information about the control principle of the respective production segment must be
communicated to every connection to map the whole value stream; this problem could be
solved with little effort. Information regarding the supplier management would have to be
provided by the ERP system. Figure 2 visualizes the derived, manually created current
state map and shows easy and difficult realization areas. A bright dotted pattern is used
where no problems occurred during data acquisition, grey diagonal stripes are used when
additional acquisition effort (above functions of standard MES) is necessary and dark dot-
ted is used for areas, where it was not feasible to support the concept. This only is the case
for in- and outbound orders on top-level, because the used ERP offers no suitable interface
for acquiring necessary data.
400 M.P. Roessler et al.

14-days ERP-System 90-days

forecast forecast
Supplier weekly order daily order
Customer

DPS=48 pc
delivery to
inventory daily order CTact=60 s
assembly
MES

Raw material weekly Outgoing

storage order storage
daily
Turning
order

Sawing CT=40 s Cleaning Quality Ass- Final Packing /

COT=309 s control embly testing shipment
AV=85 % FIFO FIFO
Inventory LS=24 Inventory
turning assembly
CT=20 s CT=20 s CT=36 s CT=55 s CT=32 s CT=14 s
Milling COT=0 s COT=15 s COT=0 s
COT=302 s COT=0 s COT=0 s
AV=85 % AV=100 % AV=100 % AV=100 % AV=100 % AV=100 %
Inventory FIFO LS=3 LS=3 LS=3
LS=24 LS=4 LS=1
milling
CT=51 s
COT=330 s
AV=85 %
LS=192

24 h 20 s 6h 40 s 10 min 20 s 25 min 36 s 16 h 55 s + 32 s + 14 s 1h

8h 51 s 8 min

Fig. 2. Current state map of the CiP value stream

The results of the theoretical as well as the practical feasibility study can be summarized
with following aspects:

 Necessary data can be automatically derived, if system requirements (necessary func-

tions of the used MES) are covered.
 Mapping of the whole information flow is only possible with additional effort.
 To fulfil the general requirements mapping of inventory requires also additional effort
(e. g. through automatic stock-taking using sensor systems).
 All data have to be up-to-date, correct and complete.
 Necessary interfaces have to be available (e. g. machine connections, order reporting
systems).
 Visual representation of current state maps has to be implemented via interface or di-
rectly with plugins into MES.

4.2 Practical feasibility of VSD supported by MES

Based on a previously set up current state map during the case study the design principles
(see table 2) were worked through and the necessary information for making explicit
statements were tried to identify out of the MES. If no automatic functions are included in
the MES this step has to be performed manually.
The case study confirms the inhibitions mentioned in paragraph 3.2. A majority of the
criteria for implementing the design guidelines could be covered by the existing data base
of the MES. Important elements like the visualization of a tact diagram, the
 Enhanced Value Stream Mapping 401

possibility for selecting an appropriate pull-system and the selection of a pacemaker pro-
cess are not implemented in the MES. There is no direct possibility in the system to define
the material flow between the processes. This could be solved as stated in the previous
paragraph. Additional inhibitions to the theoretical ones identified could not be discov-
ered.
The findings of this study show that for performing a VSD using MES still some (tech-
nical) extensions and enhancements are to be implemented. It is recommended to integrate
simulation software into MES in order to solve some of the stated issues.

5 Conclusions

In this paper the use of manufacturing execution systems (MES) in value stream mapping
(VSM) projects is examined to give practitioners direct access to information about the
current value stream or to automatically derive suggestions to improve the production
system.
The work is split in two parts, on the one hand the examination of value stream analysis
(VSA) and on the other hand the process of value stream design (VSD). The first feasibil-
ity assessment has shown that in principle MES would be capable of carrying out VSA,
with some modifications of the system. However as a first step it is recommendable to use
data available in MES to enrich existing current state maps with live information. An au-
tomatic deduction of current state maps would be linked to investments in software adap-
tions (e. g. new plugins) as well as intelligent sensor systems and an enhancement of inter-
faces to the ERP level.
The results regarding the feasibility of MES to automatically suggest value stream im-
provements or to deduce future state maps are not that encouraging. Automatic recom-
mendations regarding most of the design principles suggested during VSD currently can-
not be made by MES because of missing functions, interfaces and visualization options.
The creation of complete future state maps with MES is also not possible at the present
time. Furthermore, it seems fundamentally questionable whether some of those listed bar-
riers can be solved and thus a complete value stream can be designed by current MES.
The feasibility studies have shown that despite the shortcomings at a material flow level,
MES can contribute to improvements through creation of transparency at production pro-
cesses. The current state mapping of value streams can be partially supported by MES and
their valuable live data.

Acknowledgements. The authors want to express their kindest thanks to the German
BMBF and the Brazilian CNPq, which enabled and supported this work by funding.

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