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Procedia CIRP 00 (2017)
Procedia 000–000
CIRP 93 (2020) 826–831
53rd CIRP Conference on Manufacturing Systems www.elsevier.com/locate/procedia

Approach to Value53rd
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Devanshu Mudgal*, Emanuele Pagone, Konstantinos Salonitis
Approach to Value Stream
28th CIRP Design Mapping
Conference,for MayMake-To-Order
2018, Nantes, France Manufacturing
School of Aerospace, Transport, and Manufacturing (SATM)

A new methodology
Devanshuto analyze
Mudgal*, the functional
Emanuele and physical architecture of
Cranfield University, Bedford MK43 0AL, United Kingdom
Pagone, Konstantinos Salonitis
* Corresponding author. Tel.: +44 (0) 1234 758347. E-mail address: d.mudgal@cranfield.ac.uk

existing products for an assembly

School oriented
of Aerospace, Transport, product
and Manufacturing (SATM) family identification
Cranfield University, Bedford MK43 0AL, United Kingdom
*Abstract
Corresponding author. Tel.: +44 (0) 1234 758347. E-mail address: d.mudgal@cranfield.ac.uk
Paul Stief *, Jean-Yves Dantan, Alain Etienne, Ali Siadat
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Abstract
balance production causing lean waste. The approach combines the classic VSM technique with commonality analysis to get a better
understanding of the processes. Author illustrates this approach using a case study. Using VSM for MTO requires some changes to capture the
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10.1016/j.procir.2020.04.084
 Devanshu Mudgal et al. / Procedia CIRP 93 (2020) 826–831
2 Devanshu Mudgal/ Procedia CIRP 00 (2019) 000–000
2. Literature Review
2.1. Make-To-Order (MTO)
In MTO manufacturing the order is configured according to the
customer’s demand, which allows the company to stay
competitive in the global market. According to Tyan [10],
MTO is forcing manufacturers to reduce the lead time and
speed-up product distribution. Since every order is original it
could be hard to reduce inventories however Angappa [11]
claim that by working closely with the suppliers an enterprise
could work with zero Work in Progress (WIP) such as Dell (A
well-known IT company) [11]. However, in case of low
volume, highly variable demand and large product variety
neither the original [12] TPS nor the pure takt time-controlled
principle can be used [13]. For successful MTO, it is important
to consider the varying demand, volumes, pricing strategies,
product type and flexibility with the supplier to change the
supply along with the consumer demand [11].
2.2. Overview of Value Stream Mapping (VSM)
As mentioned in the introduction, VSM is material and
information flow mapping. It shows all the actions during the
manufacturing process. A value stream can be defined as all the
actions either Value Added (VA) or Non-Value Added (NVA)
currently needed to bring a product through the full process,
starting with raw materials and finally reaching the customer
[7]. Eliminating all types of waste, reducing lead time and cost
diminution after identification is the ultimate goal of VSM.
VSM provides an inter-linked visual of information and
material flow[14]. VSM is not a single process focused and as
such it provides an overall picture of the production process,
making it a powerful tool.
A VSM is drawn using a set of standardized icons as
shown in Rother and Shook [7]. To make improvements in the
production process, a snapshot of how things are currently
being done called the current state map is drawn [14]. An ideal
state map that shows the futuristic way of doing things is called
the future state map.
Before making the future state map, one needs to be familiar
with the basic calculations for future state mapping. A common
term used in VSM is takt time. To achieve level production
throughout the factory the concept of takt Time is used [4, 15].
The average pace of sales of a product over a specific time is
represented by takt time.
�� ��� = �� (1)
�
In equation 1, TS is shift hours and Np is the demand of the
products per shift. Takt time provides a figure that gives a sense
of the rate at which a process should be manufacturing products
[7]. Another term used in VSM is the efficiency of the
manufacturing process which is given by:
�������� = (2)
�
In equation 2, VA is the Value Added Time and LT is the
lead time of the manufacturing process [7].The discrepancy
between the conventional VSM and a MTO are as follows:
827
1. The traditional VSM is developed considering the
constant inventory and also the Work in Progress (WIP)
is measured in number of parts under progress in a
process. This approach is suitable for the companies
with standard product type. While MTS companies
often produce low priced products with a simple
structure, MTO companies typically have multi-part
products with complex structures. While in the MTO
environment number of parts in the inventory are highly
fluctuating and product type is more complex [12].
2. MTS companies arrange their workstations according
to the flow of the material as the processes to be
performed on the product are mostly the same. But in a
MTO company the flow of material is complex as it is
governed by customer specifications. In MTO
Company the flow is job shop arrangement. This kind
of arrangement makes it difficult to identify operations
being applied on a product family in a VSM.
2.3. Commonality Analysis
A very large portion of research in commonality analysis
focuses on the inventory levels, the total cost of the system.
Commonality analysis is a technique of data analysis that uses
multiple linear regression. Regression commonality analysis
provides a level of interpretation of regression effects that
cannot be revealed when only examining the regression
structure coefficient and standardized regression coefficient
(beta weights).
Jianxin and Mitchell [16], defined commonality analysis as a
number of components that are unique within a system when
compared to the total number of components. The benefits of
commonality analysis have been widely recognized when it
comes to reducing inventory levels, reducing planned loads,
product standardization [17, 18]. In this paper, the author
introduces how commonality analysis could be used in a VSM
with the Bill of Materials (BOM). A BOM is a list of all the
components or sub-assemblies of a product, the list is used in
production planning and inventory control [19]. The data from
BOM could be collected from an Enterprise Resource Planning
software which would provide product routes.
3. Methodology
The following sub sections provides a step by step
methodology to develop current state and future state value
stream map which is used in followed
3.1. Developing Current State Value Stream Map
1. Developing product families: Since every order is
different due to the bespoke nature of the order from
the customer, a concept of reconfigurable
manufacturing systems can be used where the
products can be classified into product families based
on their weight, shape, size, changeover time, material
type, etc [5, 7, 20].
828 Devanshu Mudgal et al. / Procedia CIRP 93 (2020) 826–831
Devanshu Mudgal/ Procedia CIRP 00 (2019) 000–000
Figure 1. Structure of Bill of Materials. A: products, B: Molds,
C: Shared Processes.
2. Identifying common operations: In this step, all the
components from the BOM are laid out. Figure 1
shows a typical The most common process is
identified using the commonality analysis [21]. Using
commonality analysis over any other method would
provide more precise data about routing of a product
family as there could be shared sub processes or
assemblies in a product family and also provides the
most common operations that are being performed on
that product family. The advantage of using this
approach is that it provides the estimated lead time for
each operation which could be later analyzed for
continuous improvement purposes. There are various
different algorithms available for this analysis. During
this process Degree of Commonality Index (DCI) is
calculated which provides a percentage of common or
shared processes in the BOM [19].
3. Creating the Current Value Stream Map: The
current value stream is created using the data
gathered. As mentioned before, Figure 3 shows the
current value stream map of the case company. The
VSM points out all the bottleneck processes,
inventories, cycle times, lead time, efficiency and
information flow [7].
3.2 Future State Value Stream Map
Revealing the inefficiencies that are hidden in a value stream
is the reason for developing a VSM. Once all the hidden
inefficiencies are identified, a future state map showing the
directions on how to improve the system can be presented. The
following methodology could be used in order to develop the
future state VSM.
1. Calculating takt time: Since the concept of pure takt
time is not to be considered in MTO as it has a highly
diverse product range and could be low volume as well
hence an average takt time is more appropriate [22].
Thus average takt time is calculated [23].
2. Creating a continuous flow between the processes:
Multiple factors could affect the continuous flow of a
product on the shop floor such as unbalanced cycle
times of each process, shared resources and the skills of
3
the operator. During this step, continuous flow is
achieved wherever possible.
3. Creating a pull-based system: As described by Rother
and Shook [7], creating a pull rather than a push system
is highly recommended.
4. Defining pacemaker process: The pacemaker process
is responsible for controlling the pace of the upstream
by pulling the parts through. It also controls the process
downstream by regulating the release of work or
products to maintain First in First out (FIFO)
processing flow to the customer.
5. Levelling the production mix and volume: There are
various benefits of leveling the production mix. As
suggested by Alves [8] and Rother and Shook [7], a
variety of products are distributed evenly over a time
period. Batching products during a production process
might increase the lead time and could also increase the
inventory between the processes. According to Fabian
Bohnen [24], leveling the production would eliminate
the three main factors i.e. waste, overburden and
unevenness which are responsible for the loss of
productivity. In MTO environment this could often be
achieved by good forecast.
If the bottleneck process and pacemaker operation are
two different processes then the capacity constraints
must be taken into consideration while planning to level
the volume upstream. Release of pre-defined work at a
certain point in time i.e. pitch could be used to release
work to the pacemaker process in order to control the
pace of the work. Also, labor could be added to level
the takt time with cycle time.
In high demand and low variety, supermarket scenarios
could be also used to level the production volume.
4. Case Study
4.1. Current State Value Stream Map
This case study illustrates the use of VSM for the MTO
environment. The company in the case study produces cast
stone and has its manufacturing base in the UK. It manufactures
Figure 2 Sales data analysis from past 5 years
 Devanshu Mudgal et al. / Procedia CIRP 93 (2020) 826–831
4 Devanshu Mudgal/ Procedia CIRP 00 (2019) 000–000
Figure 3. Current State Value Stream Map
architectural bespoke cast stone products. The VSM was
developed on the basis of the real data collected from this cast
stone company. One of the specifications of the cast stone is
the weight. Firstly, products are divided into product family. In
order to develop product families, products were classified on
the basis of their weight in this case. Sales data from past 5
years was analyzed. The product family which was produced
mostly was chosen for the VSM. Figure 2 shows that cast stone
weighing 20 Kgs was produced more than any other type of
stone. However as highlighted before, in MTO each order is
different which could go through various different processes
during manufacturing. For example, some products in the 20
Kgs product family might need an assembly but majority of
them will not be needing an assembly.
Firstly, products are divided into product family. In order to
develop product families, products were classified on the basis
of their weight in this case. Sales data from past 5 years was
analyzed. The product family which was produced mostly was
chosen for the VSM. Figure 2 shows that cast stone weighing
20 Kgs was produced more than any other type of stone.
However as highlighted before, in MTO each order is different
which could go through various different processes during
manufacturing. For example, some products in the 20 Kgs
product family might need an assembly but majority of them
will not be needing an assembly. That’s when commonality
analysis is useful to identify common processes. In order to
identify the common processes BOM is analyzed using
commonality analysis which makes this methodology unique.
Once the common processes are identified using the
commonality analysis, the process is mapped on the current
VSM for further improvement. The drilling process shown in
the VSM is a result of the commonality analysis.
829
The value stream starts on the upper right corner when a
customer contacts the head office with their requirements.
After a customer places an order with the main office, it is sent
across to production control. On the basis of the orders coming
to the factory, production control orders raw materials from the
suppliers. Production control then generates an electronic
works orders. Works orders are sent to the shop floor which
dictates the production for that day. The company runs one
daily shift 8.5hrs and it is a batch-based production system. All
the processes shown in VSM are explained below: All the
products are manufactured in a batch production.
1. Mold preparation: During this process molds are
cleaned and a release agent is applied to the molds.
2. Mixing: The production starts from the mixing
process where a mix of concrete and additives is
made.
3. Pouring: The wet concrete mix is poured into the
molds.
4. Demolding: The casted stone is taken out of the mold
5. Assembly: During this process, multiple parts that are
within the stone are put together.
6. Packaging: All the cast stone is packed during this
process on a pallet against the customer order number.
The following observations from the current VSM could be
made:
1. The waiting time before De-moulding process is high.
2. The packaging process take the longest of all i.e.
156.52 sec.
830 Devanshu Mudgal et al. / Procedia CIRP 93 (2020) 826–831
Devanshu Mudgal/ Procedia CIRP 00 (2019) 000–000 5

Figure 4. Future State Value Stream Map

3. The efficiency of the manufacturing process as per the
current state VSM is 43.48% using equation 2.
Following the classical method of creating a VSM [7], the cycle
time in the VSM is recorded in seconds. The current lead time
is 1001.19 sec and the Takt time is 226.95 sec. In the current
VSM, demolding is the pacemaker process in the value stream
map as it controls the pace upstream. Some of the operations
have been altered due to confidentiality.
4.2. Future State Value Stream
The production type in this case is a batch production
system. As described in the methodology one-piece should be
achieved wherever possible. Supermarket system can be used
after the mixing process to create a pull system. Using a
withdrawal Kanban could also reduce the cycle time of a
process. Future state VSM is shown in the figure 4. A Kanban
is being used in the future VSM for signaling the operation to
be performed on the product.
The future VSM shows a reduction in the Lead time from
1098.59 sec to 676.63 sec. Furthermore, the future state VSM
also shows an increased efficiency from 43.48% to 70.60%.

All the process shown in the current VSM (Figure 3) are 5. Conclusion and future work
well under the average takt time. As shown in Figure 5, the
average takt time is 192.75 seconds which has been calculated This paper presents a systematic approach to develop a
using equation 1 by taking an average of the customer demand. Value Stream Map in a Make-To-Order environment. The
As per the graph shown in figure 5, all the process are well approach presented in the paper has added one more step to the
under the takt time. traditional methodology to develop future value stream which
helps in better analysis of data. The commonality analysis uses
Average Takt Time preliminary data from the commonality analysis. Commonality
analysis produces DCI which is used for mapping the value
250 stream using the traditional approach. The commonality
Average cycle time Average Takt time
200 analysis provides data regarding all the shared operations
Time (Sec)

which can be put into the Value Stream Map. The paper also
150
reviews recent literature on how to create a lean future state
100 map.
50 Finally, it should be noted that commonality analysis has been
shown to be satisfactory and a thorough communality analysis
0
could be could be carried out as future work.

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