GBE-KPO-2-005-00 Value Stream Mapping (VSM)

Value Stream Mapping (VSM)
CONFIDENTIAL Document Number : GBE-KPO-2-005-00

Revision Number : 06
Effective Date : 25 April, 2013
Document Title: Document # Revision
GBE KPO-2-005-00 06
Value Stream Mapping (VSM) Document Owner
Pune Subramaniam
REVISION HISTORY
Revision Description of Change Writer/Reviser Effective Date

01 Initial Released Pune Subramaniam January 02, 2008
02 Document formatted as per DMS policy Chandran Bendaiya December 11, 2008
03 Complete Review of the document Pune Subramaniam March 03, 2009
Document format updated as per latest DMS Policy.
04 Pune Subramaniam December 05, 2011
VSM symbols and icons are updated.
Document updated with latest templates, guides, 7 steps of office
05 Ivan Yew July 20, 2012
kaizen and case studies.
06 Templates updated, guidelines and case studies added Ivan Yew April 25, 2013
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Table of Contents
Contents Slide(s) Contents Slide(s)
 Overview 4  CF-VSM Overview 31 – 33

 Scope & Objective 5  CF-VSM – Guides and Key Techniques 34 – 36
 Purpose 6  CF-VSM – Key Benefits 37
 Key Benefits 7  Dot Matrix & VSM Icons / Symbols 38 – 40
 The importance of VSM 8  7 Steps of Office Kaizen 41 – 43
 VSM vs. Process Mapping 9  7 Steps of Office Kaizen – Template 44
 Defining Values and Wastes 10 – 12  7 Steps of Office Kaizen – Guides 45 – 49
 VSM Time Metrics Calculations 13  VSM Examples 50 – 52
 7 + 1 Deadly Wastes 14 – 17  7 Steps of Office Kaizen - Example 53 – 54
 Draw VSM – Basic & guidelines 18 – 20  Case Study 55 – 64
 VSM Cycles 21 – 22
 VSM approach – 8 steps guide 23 – 24
 VSM Templates & Guides 25 – 30

3
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Overview - Value Stream Mapping (VSM)
 Value Stream Mapping (VSM) is a Lean tool commonly used in kaizen activities to understand
and improve Materials, Information and Process flow.
 VSM captures and presents whole process from end to end in a method that is easy to
understand by those working the process
 VSM helps to analyze and design flow of Materials, Information and Process required to bring a
product or service to a customer in a more efficient way by systematically identifying and
eliminating wastes.
“A systematic approach to identify and eliminate wastes (non-value-added activities) through continuous
improvement by flowing the product / service at the pull of the customer in pursuit of perfection”
--The MEP Lean Network

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Scope and Objective
Scope
 All business processes associated with Flextronics – Operations, Supply Chain and Office
functions
 Note : Office functions inclusive of Back-Office within the organization
Objective
 To graphically illustrate and analyze how the flow of products or services and information are
being processed
 To have a blueprint or a display of the total picture to focus on lean transformation
 To highlight the problem areas and identify opportunities for wastes elimination
 To serve as a dashboard to monitor and continuously improve processes

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Purpose
What is Value Stream Mapping (VSM) ?

 VSM is a key tool in LEAN principles
 It is a visual method of mapping the flow of Materials, Information and Process from the
Customer and throughout Manufacturing Processes including Supply Chain and Office
functions to deliver the end customer expectations.
Why VSM ?
 VSM enables identification of wastes in the entire processes.

 It is very important to analyze, identify and detect the wastes or Non-Value Added (NVA)
activities in the materials and information flow of each process for Kaizen opportunities
How VSM help ?
 Visualize the whole picture—not just visualize the individual process, but the entire value
stream
 Enable Materials, Information and Process flow more visible
 Identify bottlenecks, inefficiencies and improvement opportunities

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Key Benefits
Benefits of VSM ?
 Wastes elimination to enable End to End (ETE) improvements.
Operations Supply Chain Office
• WIP reduction ~ 40% • Lead time reduction ~ 30% • Process Time reduction ~ 30%
• FG inventory reduction ~ 25% • Raw matl inventory reduction ~ 25% • Rework information reduction ~ 80%
• Manufacturing lead-time ~ 50% • Logistics cost reduction ~ 25% • Accuracy improvement ~ 25%
• Crew size optimization ~ 50% • Warehouse optimization ~ 30% • Report process reduction ~ 50%
• Manufacturing line optimization ~ 50% • Material localization ~ 30% • Office productivity improvement ~ 30%
• Quick Change over ~ 40% • Manual process time reduction ~ 50% • Automation improvement ~ 50%
Note : The items and figures shown above are only indicative not representing any specific business or operations scenario
 Achieve kaizen goals : Double the good, Halve the bad, Triple the speed
DIPLESS
• Defect x 1/10 : improvement 90%
• Inventory x 1/2 : improvement 50%
• Productivity x 2 : improvement 100%
• Lead-time x 1/2 : improvement 50%
• Energy x 9/10 : improvement 10%
• Scrap x 1/10 : improvement 90%
• Space x 1/2 : improvement 50%

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The Flextronics Lean Enterprise (FLE)
Adding Value and Eliminating Waste
FLE
i. Takt Time
Production i. Stop @
Abnormality
ii. Single Piece
Flow JIT Jidoka
iii. Pull ii.Autonomation
Production
i. Level Loading Heijunka ii. Sequencing
5S+1, VSM, Supermarkets

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Process Mapping vs. Value Stream Mapping (VSM)
Process Mapping VSM
• A blueprint for roadmap on Lean deployment

• A flowchart of processes
• Lean tool to map every value of the entire processes
• A chart to only able to map sequence of activities
• Enables “System End-to-End Kaizen” and avoiding
• Enables only process enhancement or correction on
“Point / Silo Kaizen” – Long term Strategy plan
specific process basis – Short Term Tactical plan
• Apply VSM icon and symbols to systematically
• Apply Flowchart symbols to show the overview of the
identify and eliminate wastes
processes but unable to identify or eliminate wastes
• Systematic flow and direction which integrates flows
• Random flow and direction to map activities without
of Materials, Information, Process and Rework
differentiation of info., Materials and processes
• Data box included CTQs - time, inventories, DOS,
• No critical data included
crew size, Touches, distance …

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See and Analyze Value
What is Value ?
 Values
 the task or activities carried out to build products or deliver services which payable by
customer or add values to customer
 Waste
 the main enemy in LEAN implementation and add no value
 the task or activities carried out to build products or deliver services which not payable or
even upset the customer.
 A Value Stream
 set of all actions (both value added and non value added) required to bring a specific
product or service from raw materials or information through to the processes to meet
customer expectation
Whenever there is a product or service for a customer, there is a value stream. The
challenge lies in seeing it.

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Defining Value and Waste
Work / activity which neither add nor Work / activity which directly either add or
increase the value of the product / service increase the value of the product or service
(e.g. operator rework product or buyer (e.g. assembly of parts or trigger kanban
manual re-input PO data or HR re-update signal to suppliers or IT anti-virus security
employee personal files) patching)
Work
Elements
The objective is to
maximize the value-added
No value-added but necessary work part by eliminating ‘wastes’
(e.g. OBA check or IQA check or Finance cycle and ‘value enable’
count audit or Engineer calibrate fixtures)
Defining Value
Non-Value Added Activity
Value Added Activity
• All other functions and unwanted features are by
• Something customers are willing to pay for definition … WASTE
• Activities that either add or increase values • Activities that neither add nor increase value
• Changes the form, fit & function • Adding no value to customers
• Is being done right the first time • Simply raise costs in our business
ELIMINATE NON-VALUE ADD ACTIVITY

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VSM - Eliminate Wastes and Add Values
IDENTIFY
Identify Non-Value Add, Value Enabler and Value Add activities. Usually about 60% of activities are Non-Value
Add, and they are embedded inside the process lead-time resulting in high operational costs.
ELIMINATE
Eliminate the Non-Value Add activities to enable the process lead-time and to reduce more than 50% of the
resulting competitive costs.
BREAKTHROUGH
Breakthrough improvement to add more values is the spirit to pursue perfections and to achieve the position
ahead of competitions. In Flextronics, Best-in-Class practices for such improvements are in implementation.

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VSM – Time Calculation Metrics
Process Process Process Process

A Waiting B Waiting C Waiting D
Time Time Time
Process to Process to Process to
Process Process Process
(WT1) (WT2) (WT3)
Process Time Process Time Process Time Process Time

(PT1) (PT2) (PT3) (PT4)
•Value added •Value added •Value added •Value added
process process Waiting process process
•Micro waiting within •Micro waiting within Time •Micro waiting within •Micro waiting within
the process the process within the the process the process
•Unwanted Motions •Unwanted Motions Process •Unwanted Motions •Unwanted Motions
•Minor travelling •Minor travelling •Minor travelling •Minor travelling
• Unwanted Phone • Unwanted Phone • Unwanted Phone • Unwanted Phone
call (rework call (rework call (rework call (rework
process) process) process) process)
•Other NVA activity •Other NVA activity •Other NVA activity •Other NVA activity
are trapped within are trapped within are trapped within are trapped within
the Task the Task the Task the Task
Process Time: Heavily trapped with high amount

Value added process of non value added activity which camouflaged Total Cycle Time ( CT) :
by paper works, rework, phone calls,  CT =  PT+WT1+WT2+WT3
Non Value added process unscheduled meeting & extra.

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7+1 Wastes
S I T Transportation
I Inventory
M Motion
7+1 W Waiting
D Wastes M
O Over Production
O Over Processing
D Defect
O W
S Skills Unutilized
O

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7+1 Wastes – Supply Chain / Office / Manufacturing (1 of 3)
No The 7+1 Wastes Definition Examples of Supply Chain Examples of Office Wastes Examples of Manufacturing
Wastes Wastes
1 Transportation Unnecessary
movement of
parts between
processes
Movement of goods in Physical Movement of Movement of goods inside shop

warehouse documents floor
2 Inventory Any raw

Materials, work
in progress
(WIP) or finished
goods which are
not having value
Excess & Obsolete goods at Over stocking of office High WIP DOS in shop floor
added to them warehouse stationary
3 Motion Waste motion
occurs when
individuals move
more than is
necessary for
the process to
be completed Searching of part in warehouse Searching files Reaching for tools in workbench

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No The 7+1 Wastes Definition Examples of Supply Examples of Office Examples of

Chain Wastes Wastes Manufacturing Wastes
4 Waiting People or parts that

wait for a work cycle to
be completed
Customer/ supplier
Pending clearance of waiting to meet up with Operator waiting due to non
Challenge inventory Flex employee (s) arrival of part
5 Over To produce sooner,

Production faster or in greater
quantities than the
absolute customer
demand
Additional printing of Excess output in
Aging inventory at FGS documents against the need production line
6 Over Processing beyond the

Processing standard required by
the customer
More IQC check with low % Over inspection due to non

Dock-To-Stock Repetitive data entry availability of inspection criteria

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No The 7+1 Definition Examples of Supply Chain Examples of Office Examples of Manufacturing
Wastes Wastes Wastes Wastes
7 Defects A defect is a
component which the
customer would deem
Incoming Inspection
unacceptable to pass
the quality standard
Materials reject area
Incoming Materials reject Incorrect data Rework motherboard
8 Skills Employees not

Unutilized leveraged to their full
potential
Receiving personnel unable Operator waiting and unable

to receive parts due to lack of No authority for to perform other tasks due to
forklift training performing tasks no ability to multi-task

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Click here to
download
VSM Template
Draw VSM
VSM – Basic Requirements
 Determine the level of VSM

 Product / service level, Project level, Site level or Organization level (includes entire supply
chain / Office functions)
 VSM Project Team
 typically a cross-functional activity which every team members touch
 have experienced person to lead
 include “Subject Matter Expert (SME)”
 try to include a ‘wildcard’ person which not familiar with the process of value-stream
 team size not less than 3 and not more than 10 (typically 5-8) people
 Commit to the time requirement
 Team should have:
 For Operations: Define Product Family with the scope of project
 For Supply Chain / Office: Define a Process with the scope of KOI
 Defined Goals and Objectives using DIPLESS approach
D Defect I Inventory P Productivity L Lead-time E Energy S Scrap S Space

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VSM – Guidelines
VSM Basic Guidelines

 Operations / Supply Chain
 Begin the VSM by walking through the entire value stream, starting from downstream to
upstream (Example: From Finished Goods Shipment Area to Raw Materials Receiving)
 Office
 Begins from point of Request until completion of product / service delivered to the Customer
 Requirement
 Bring along Stopwatch and even recommended video to record down the details of each steps
into the Gemba Observation Log Sheet
– it is Important to walk each step and record actual details that you see or observe
 Template
 Establish a set of guidelines in providing standardization to maintain focus and capture all the
relevant & required details to execute the VSM process effectively
 A detailed and documented approach in order to maintain focus and able to yokoten
 Create a method to facilitate the VSM exercise
 Rules of Engagement
 Keep an open mind – Do not judge, argue or criticize the “wastes”
 Put on your “wastes glasses” – capture and record every relevant information and wastes
 Rule of thumb: “If this ‘waste’ can happen today, it can also happen tomorrow
Don’t Solve it…….Just Draw It!
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VSM Cycle
ADJUST
PLAN
Draw current state VSM
Analyze gaps to
to show gaps for
Analysis determine root
improvement A causes
Current State P
VSM
C Future State
CHECK
Implement
kaizen and D
verify the Implement DO
effectiveness Establish future state
VSM for kaizen
implementation

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VSM Cycle - Stages
Determine the scope in the Value Stream for

Value Stream improvement
Scope - Select and decide on VSM level
Understand how things currently operate as

foundation for future state
Current State VSM
- Establish baseline as target improvement
Develop detailed plan of implementation to
Analysis support the objectives
- Apply LEAN tools to establish root causes
Designing a lean flow through the application of
Future State VSM lean principles
- A blueprint and vision to meet objectives
Implement kaizen initiatives to meet the objectives
Kaizen
Implementation - Apply LEAN tools for kaizen actions
- Standard Work and Visual Management are
critical for sustenance
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Value Stream Mapping (VSM) Approach
 Value Stream Mapping (VSM)

 blueprint in LEAN implementations
 mapping big picture of End-To-End processes of the entire value stream
 most appropriately applied in visualizing the flows in Materials, Information and Process
where the 7+1 wastes (TIMWOODS) truly in existence.
 Cross-Functional VSM (CF-VSM)

 also known as “Swim Lane Chart” which is extended VSM with time base
 mapping cross functional activities on critical processes and lead-time
 most appropriately applied in office environments to improve quality in cross-functional
communications or interactions, process lead-time and accuracy
 7-Steps of Office Kaizen Methodology

 a tool for systematic improvements and wastes eliminations in office processes
 detailing every process steps and cycle time for effective improvements
 extended of 2R&1C (Remove, Reduce & Combine) to have holistic coverage approach
from abnormalities segregation to improvements from combining and simplifying the
value added processes before automations for speed and sustenance

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VSM Approach – 8 Steps Guide
Steps & Descriptions Tool and Template
Step 1 : Review PDCA • Process Flow Chart

 Review process & information flow and identify & analyze the GAPs • PDCA Chart
Step 2: Gemba to update Observation Log Sheet

• Gemba Observation Log Sheet
 Go Gemba & Update Observation Log Sheet
Step 3 : Draw the Current ETE VSM • VSM guideline

 Draw current ETE VSM based on Observation Log Sheet • VSM Icons and VSM Symbols
Step 4 : Develop Current Cross Functional VSM (Optional)

• CF-VSM guide
 Develop current CF-VSM based on current ETE VSM kaizen opportunities (starbursts)
Step 5 : Deploy 7 Steps of Office Kaizen

• 7-steps of office kaizen template
 Apply 7 Steps of Office Kaizen to systematically eliminate wastes
Step 6 : Develop Future VSM – CF-VSM (Optional) & ETE VSM • CF-VSM & VSM guideline
 Develop future CF-VSM and connect to future ETE VSM • VSM Icons and VSM Symbols
Step 7 : Create Standard Work

• Standard Work Sheet
 Trial-run to create and fine-tune the Standard Work
• Andon
Step 8 : Establish Visual Management Display
• Visual Board
 Develop Visual Management to control and sustain the process improvements
• Automated system

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VSM Template
Step #1
Step #6 Step #5 Step #3 Step #2
1
Step #7
Information Flow
Step
Step #4 #26
2
Step #8
Step
#25
Materials Flow
Step Step Step Step Step

Step Step Step Step
Step Step
#11 Step Step
#13 Step Step
#15 Step Step Step Step#21 Step #23 Step 3
#10 #17 #20 #23
Step #9 #11 #12 #13 #14 #15 #16 #17 #18 #19 #21 #22 #24
Process Flow
4 Individual Process Data
Data Box 5
6
Revision Tracker
VSM Revision: 01 (After VSM refer as Rev 1)
VSM Originated Date: (Date Rev 01 drawn)
VSM Last Updated Date: MM / DD / YYYY(Current VSM
Drawn Date for the first time)
VSM Leader: (Process / Business Owner)

25 GBE-KPO-2-005-00 Rev.06 25
VSM Template – Individual Process Data & Data Box
 Individual Process Data Log 4
Process Step UoM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total

[A] Value Add Time (VA-T) Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
[B] Non Value Add Time (NVA-T) Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
[C] [A] + [B] Process Time (P-T) Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
[D] Waiting Time (W-T) Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
[E] [C] + [D] Total Cycle Time (C-T) Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
[A] / [E] % of Value Add Time (V-T%) % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
[F] No. of Tasks # 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
[G] No. of Value Add Tasks (VA-Task) # 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
[G] / [F] % of Value Add Tasks (VA-Task %) % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Select Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
Select Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
CTQ Select Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
Select Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
Select Select 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0
 Data Box 5 * Proposed CTQ by category

Proposed Supply
Data Box Category Select DIPLESS Operation Office
CTQ Chain
Stage and Period
CTQ UoM Current Rev # 1 Rev # 2 Rev # 3 Ideal Defect X X X
MM / DD MM / DD MM / DD MM / DD MM / DD D Bonepile X
Value Add Time (VA-T) Select 0
Rework X X X
Non Value Add Time (NVA-T) Select 0
Process Time (P-T) Select 0 0 0 0 0 Inventory X X X
Waiting Time (W-T) Select 0 WIP X X
Total Cycle Time (C-T) Select 0 0 0 0 0
I
MRB X X
% of Value Add Time (V-T%) % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
No. of Tasks # 0
RTV X
No. of Value Add Tasks (VA-Task) # 0 P Crew Size X X X
% of Value Add Tasks (VA-Task %) % #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Proposed CTQs are based on
L Lead Time X X X
Select Select 0 E Energy X X X
basic requirements. Additional
Select Select 0
Select Select 0
S
CTQs to be incorporated, in Space X X X
accordance to the scope of the
S Scrap X X X
Select Select 0
Project / Sub-category!
Select Select 0 Others Distance X X X

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VSM Gemba Observation Log Sheet Guide – (1 of 3)

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VSM Template – Revision Tracker 6
VSM Tracker – to track the revision

First time – when start VSM Exercise the Revision will be marked as 00 – template to follow the below
example:- VSM Revision: 00 (Current State)
VSM Originated Date: (Date drawn)
VSM Last Updated Date: (Same Originated Date)
Next time – when VSM is drawn the Revision will be marked as 01 – template to follow the below
example:- VSM Revision: 01 (VSM Revision refer after Rev 00)
VSM Originated Date: (Date Ref to Date Rev 01 drawn)
VSM Last Updated Date: MM / DD / YYYY(Current VSM Ref 00 -
Drawn Date for the first time)
Third time onwards – when VSM is drawn the Revision will be marked as 02 and then on the sequentially
numbering – template to follow the below example:-
VSM Revision: 02 (VSM Revision refer after Rev 01)
VSM Originated Date: (Date Ref to Date Rev 02 drawn)
VSM Last Updated Date: MM / DD / YYYY(Rev 01 VSM Drawn
Date)
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Cross-Functional VSM (CF-VSM)
 Cross-Functional VSM (CF-VSM) is also known as “Cross-functional Diagram”, “Process
flowchart” and “Swim lane Chart”
 CF VSM provides better information on who does what and when.
 After kaizen focus area (generally indicated with starburst ) has been identified using
VSM, CF-VSM is used to understand specific kaizen focus area.
 Note : There can be multiple CF-VSM established within a single VSM depending on
kaizen focus areas in the VSM.
 Steps to create a CF-VSM :

1. Focus on a specific process, and put the title of your diagram on top.
2. Enumerate the people involved in this process and assign them to rows, typically
beginning with the customer on the top row.
3. Create the process flowchart, drawing processes and decisions made, as well as arrows
that indicate the process flow.
4. If the diagram is too complex, break it up into its components (phases or sub-processes).
5. If possible, indicate time for each node on the bottom of the diagram
6. Compute cumulative totals—the total time elapsed—within each phase.
CF-VSM focus on identifying time traps in cross-functional processes to enable improvement in process
lead-time and quality of communications leads to flawless information flow
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Cross-Functional VSM (CF-VSM) – Format
Time  Day 1 Day 2 Day 3 Day 4 Day 5

Process / 7:00 15:01 23:00 7:00 15:01 23:00 7:00 15:01 23:00 7:00 15:01 23:00 7:00 15:01 23:00 Total
Functions to to to to to to Colorto legend
to to to to to to to to 
 15:00 23:00 7:00 15:00 23:00 7:00 15:00 23:00 7:00 15:00 23:00 7:00 15:00
Time (Day
23:00 7:00
+ Hours)
Line / Flow legend
Starburst
(Kaizen opportunities)
Red line
Sample
(Rework Flow)
Processes
Function / Owner
Information flow Waiting time

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Current VSM – Top Level (ETE)
1) Establish Top Level ETE VSM

2) Identify Kaizen Focus Areas
3) Develop CF-VSM for detail analysis

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CF-VSM Standard Guide
 Standard guides for effective CF-VSM

 Time specified at the top must be constant throughout the processes timeframe
a) only single unit is used – if hours is used as the specified unit, then it be must used
throughout, must not use another unit
b) break into smaller unit – if the unit is day, then should break into morning & evening
 Standard VSM Icon / Symbol
 It’s easier to visually differentiate unique applications for specific process
 Standard guide
 Standardized colour legend to visually identify and segregate VA, VE and NVA
 Standardized flow legend to visually identify flows of info., process, rework and waiting
 Starburst to visually identify every areas of kaizen opportunities
Legend Definition Legend Definition

 Value Add Processes  Information Flows
 Value Enabler Processes  Process Flows
 Non Value Add Processes  Rework Flows
 Starburst – Kaizen Opportunities  Waiting

34 GBE-KPO-2-005-00 Rev.06
Simple way to establish CF-VSM
 Fast and easy way (quick tips) to establish CF-VSM
Accessories needed Application

 Flipchart papers draw the CF-VSM structure (Time @ top and Functions @ left)
 Multi-color Post-it (Stick-on) represents processes
 VSM icons / symbols represents specific applications
 Multi-color strings represents flows
 Thumb nails / tapes / staplers to hold the strings in position
 Multi-color marker pens to draw and write
i. Draw the structure with time line at the top and function owners at the left
ii. Paste the multi-color post-it / stick-on papers to draw each process
iii. Apply VSM icons / symbols to draw on each process to differentiate the applications
iv. Use the multi-color strings to connect every single flow
 Note :
 CF-VSM Key Benefits – refer page #37
 CF-VSM Standard Guide – refer page #34
 VSM icons / symbols – refer page #39 & #40

35 GBE-KPO-2-005-00 Rev.06
Cross-Functional VSM (CF-VSM) – Key Techniques
5 2
4 3
1
Key Techniques to identify kaizen opportunities:

1. Most process loads – longest time spent To shorten lead-time:
2. Horizontal lines – waiting time 6 Pull from right to left
3. Red Lines – Rework flows
4. Red box – Non Value Add activities
5. Starburst – Kaizen opportunities to apply 2R&1C

36 GBE-KPO-2-005-00 Rev.06
Cross-Functional VSM (CF-VSM) – Key Benefits
CF-VSM (BEFORE) CF-VSM (AFTER)
Shortened lead-
time by process
pulled in
Goal – pull in processes

( from right to left)
 Easy to detect kaizen opportunity areas  Easy to gauge area of improvements

 specific time with most processes  # of processes reduce drastically
 multiple cross-functional communications  direct cross-functional communications
 Rework processes and flows  eliminate reworks and reduce waiting time
 The objectives :  Processes pulled in – reduce overall process LT
 Eliminate waiting time and rework flow Goal
Reduce lead time from raw
UoM Current Target % of Improvement
 Pull-in processes from right to left – reduce time forecast to MRP loading Hrs 120 48 60%
 Reduce criss-cross communication flow Reduce forecast collect timing Hrs 48 12 75%
Reduce # forecast report # 35 4 89%
 Reduce # of functions/owner – reduce touches Reduce touch point # 60 30 50%
 Clear ownership on who does what by when Reduce rework report time Hrs 16 0 100%
 Process overview – awareness within team Reduce man hours Hrs 8.8 2.2 75%

37 GBE-KPO-2-005-00 Rev.06
VSM – Dotting Process and Keynotes
Color Denotation Description
Value Add (VA) • A step in an Industrial or Business Process that customer pays for.
• Change or Add Form , Fit or Function
Green What Customer Pay
• Includes those activities that are required by contract or law
for
• Things that would impact Customer
Non Value Add • Any activity that does not directly impact the customer and cost is
not borne by the customer
(NVA)
Red • Activities that would not impact Product or Service
What Customer
DON’T Pay for
• Statutory or Company Policy Requirement or process Enabler
Essential Non • Any activity that does not directly impact the customer.
Value Add • Customer may not pay but is an enabler to meet Contract
Yellow Obligation or Company Policy or Statutory Requirement
(ENVA)
• These steps may be necessary to support value added steps
Process Enabler
• Any activity required by the business
[Process Time + Waiting Time] = Cycle Time PT : Process Time CT : Cycle Time
(PT) + (WT) = (CT) WT : Waiting Time TC : Touch Points

38 GBE-KPO-2-005-00 Rev.06 38
VSM Icon / Symbol – Primary
 VSM icons / symbols have been categorized into Primary and Secondary
 This is to simplify and to make it easier to use
 Primary icons / symbols – critical and applicable
 Secondary icons / symbols – for additional information to strengthen the VSM representation
PRIMARY ICON / SYMBOL
Personal
Transportation Decision Document Computer Process Supplier Customer
Black Dotted Black Blue Red Dotted Store /

Process Flow Materials Flow Supermarket Inventory Worker
Info Flow Rework Flow

39 GBE-KPO-2-005-00 Rev.06
VSM Icon / Symbol – Secondary
SECONDARY ICON / SYMBOL
Process Box
P/T
Iterations Tel MRP
W/T
Quality
Shipment In / Out Telecom Receipts Technology Used Data Box
Signal Production Withdrawal

Monitoring Kanban Card Kanban Card Kanban Card Kanban Post
FIFO
Electronic Info First In First Out Movement by Push Kaizen Lightning

Picking Cart Burst
ABCD
Leveling Mix
Withdrawal
&/or Volume (Pull)
Air Freight Sea Freight Fork lift

40 GBE-KPO-2-005-00 Rev.06
Click here to download
7 Steps of Office Kaizen
Template

7 Steps of Office Kaizen – Learn to See
Segregate
Normal
Easy to see Abnormal
Conditional Abnormal
Eliminate Abnormal
Sea Level
Combine Normal Process
Review Normal Process

Not easy to see,
Need to dive deep Simplify Process
Automation
Make It Faster & Easier

42 GBE-KPO-2-005-00 Rev.06
7 Steps of Office Kaizen – Step by Step
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

Segregate Eliminate Combine Review Simplify Automation Make it
Normal / Abnormal / Abnormal Normal Processes Normal Processes Processes Faster & Easier
Conditional Abnormal
Total Cycle Time reduced from 8542 to 3078.5 min

8542 3078.5
43 GBE-KPO-2-005-00 Rev.06
7 Steps of Office Kaizen – Template

44 GBE-KPO-2-005-00 Rev.06
7 Steps of Office Kaizen – Guide (1/5)
Note 1 :
a) Value in Process Step#, Task, P-T, VA-T, NVA-T, W-T and C-T are auto link to Gemba Observation Log Sheet
b) Any change to the above a) will be prompted with the Reminder alert message.
Note 2 :
a) Time Interval is auto calculated to provide sugessted value which will be rounded up for the first value and subsequent intervals of the time chart
b) Any change to the above a) will be prompted with the Notice alert message.

45 GBE-KPO-2-005-00 Rev.06
Note 3 :
STEP 1 : Segregate Normal and Abnormality
a) Select category of N, AB or CAB from drop-down list
a1) "N" highlighted Green is Normal activity for further improvement opportunities
a2) "AB" highlighted Red is Abnormal activity for immediate elimination in next step
a3) "CAB" highlighted Yellow is Conditional Abnormal activity for future elimination in moving forward steps
b) Any other category value chosen from above a) will be prompted with the Wrong input alert message.
STEP 2 : Eliminate Abnormality

a) When "AB" is selected in Step 1, then the activity is eliminated from Step 2 onwards with "X" highlighted Red
b) When "CAB" is selected in Step 1, then the activity will be highlighted Yellow to indicate as focus for elimination in moving forward steps
c) Any Time indicated is based on current time indicated in Cycle Time cell
d) Any change to the above c) will be prompted with the Reminder alert message.

46 GBE-KPO-2-005-00 Rev.06
STEP 3 : Combine
a) Select range of combination from C1 to C30 from drop-down list
b) When "C#" is selected, then the activity is indicated for combination Step 3 onwards with cell highlighted Purple
c) Any other range or value chosen from above a) will be prompted with the Wrong input alert message.
STEP 4 : Review
a) Combine the time of those activities from the same "C#", and chose one of those combined cell to input the combined time and leave the rest blank

47 GBE-KPO-2-005-00 Rev.06
STEP 5 : Simplify
a) Select range of simplification from S1 to S30 from drop-down list
b) When "S#" is selected, then the activity is indicated for simplification Step 5 onwards with cell highlighted Orange
STEP 6 : Automate
a) Select range of automation from A1 to A30 from drop-down list
b) When "A#" is selected, then the activity is indicated for simplification Step 5 onwards with cell highlighted Blue

48 GBE-KPO-2-005-00 Rev.06
STEP 7 : Faster & Easier

a) Simplification time of those activities from the same "S#" and Automation time of those "A#" will be input into cell of Step 7.
Note 4 :
a) Expandable time scale - expandable time is hidden
Click to expand the time scale

49 GBE-KPO-2-005-00 Rev.06
VSM Examples
VSM Example (Current)

51 GBE-KPO-2-005-00 Rev.06
VSM Example (Future)

52 GBE-KPO-2-005-00 Rev.06
Examples
7 Steps of Office Kaizen – Example
39%
Improvement

54 GBE-KPO-2-005-00 Rev.06
Case Study
Case Study
Step 1 – Review the PDCA
PDCA Objectives & Goals
Target
Review current process and identify problem areas.

Establish PDCA to understand the gaps and set objectives, goals and targets for improvements.
56 GBE-KPO-2-005-00 Rev.06
Case Study
Step 2 – Walk the Gemba update Observation Log Sheet
VSM Gemba Observation Log Sheet
Form team to walk the current ETE process to record all details of observation and information
into ‘VSM Gemba Observation Log Sheet’ based on 3G approach.
57 GBE-KPO-2-005-00 Rev.06
Case Study
Step 3 – Draw the ETE VSM based on Observation Log Sheet
Current ETE VSM
Based on VSM Gemba Observation Log Sheet, draw the current state VSM and identify the areas
of kaizen needs (starburst red) for improvement opportunities.
58 GBE-KPO-2-005-00 Rev.06
Case Study
Step 4 – Draw / Develop Cross Functional VSM (Current)
Current CF-VSM
Based on current state ETE VSM, expand the kaizen needs areas (starburst red) by establishing
CF-VSM to focus on cross-functional interactions for process lead-time and information flow
improvement.
59 GBE-KPO-2-005-00 Rev.06
Case Study
Step 5 – Develop 7 Steps of Office Kaizen
Office 7 Steps
Total Cycle Time reduced from 8542 to 3078.5 min

8542 3078.5
Use ‘7 Steps of Office Kaizen’ to systematically eliminate the abnormalities and improve the back-
office process lead-time and accuracy.
60 GBE-KPO-2-005-00 Rev.06
Case Study
Step 6 – Draw / Develop Cross Functional VSM (After)
Lead Time reduce

from 5 days
to 3 days
Future CF-VSM
Future VSM
Establish future state CF-VSM to visualize improvements and incorporate it into future ETE VSM.

61 GBE-KPO-2-005-00 Rev.06
Case Study
Step 7 – Create Standard Work
Standard Work
Standardize the operation of the process to maintain consistency and sustain quality.

62 GBE-KPO-2-005-00 Rev.06
Case Study
Step 8 – Develop Visual Management Display
MRC Meeting
Automated Demand Master
KOI tracking and review Finalized Commit File
Execution (GYAT) meeting
For sustenance, develop Visual Tracking Chart to monitor process effectiveness for Yokoten.

63 GBE-KPO-2-005-00 Rev.06
Case Study
Achievement
CTQ UoM Before After Improved %
UPH Pcs 90 120 33%
Crew Size # 42 35 17%
UPPH # 2.1 3.4 62%
SMT Changeover min 15 5 67%
Total cycle time sec 400 300 25%
Standard WIP pcs 35 10 71%
Material Replenishment min 120 20 83%
KTE part no. # 11 24 118%
Supermarket Checklist Compliance # 8 15 88%

64 GBE-KPO-2-005-00 Rev.06
Appendix A
Templates
Description Link (Filename)
Value Stream Mapping (VSM) GOLS_7-Steps_CF-VSM
GOLS_7-Steps_CF-VSM

65 GBE-KPO-2-005-00 Rev.06
Thank You
For further information, please visit :

http://intranet.flextronics.com/gbe/default.aspx
COMPANY CONFIDENTIAL Printed copies are uncontrolled copies.

Verify revision and approvals in the FMS Document Management System on ShareNet.

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Value Stream Mapping (VSM)

CONFIDENTIAL Document Number : GBE-KPO-2-005-00

Revision Description of Change Writer/Reviser Effective Date

 Overview 4  CF-VSM Overview 31 – 33

Value Stream Mapping (VSM)

Value Stream Mapping (VSM)

Value Stream Mapping (VSM)

What is Value Stream Mapping (VSM) ?

 VSM enables identification of wastes in the entire processes.

How VSM help ?

Value Stream Mapping (VSM)

Value Stream Mapping (VSM)

Adding Value and Eliminating Waste

i. Level Loading Heijunka ii. Sequencing

5S+1, VSM, Supermarkets

Process Mapping VSM

• A blueprint for roadmap on Lean deployment

Value Stream Mapping (VSM)

Value Stream Mapping (VSM)

ELIMINATE NON-VALUE ADD ACTIVITY

Value Stream Mapping (VSM)

Value Stream Mapping (VSM)

Process Process Process Process

Process Time Process Time Process Time Process Time

Process Time: Heavily trapped with high amount

Value Stream Mapping (VSM)

Value Stream Mapping (VSM)

Movement of goods in Physical Movement of Movement of goods inside shop

2 Inventory Any raw

Value Stream Mapping (VSM)

No The 7+1 Wastes Definition Examples of Supply Examples of Office Examples of

4 Waiting People or parts that

5 Over To produce sooner,

6 Over Processing beyond the

More IQC check with low % Over inspection due to non

Value Stream Mapping (VSM)

Materials reject area

Incoming Materials reject Incorrect data Rework motherboard

8 Skills Employees not

Receiving personnel unable Operator waiting and unable

Value Stream Mapping (VSM)

 Determine the level of VSM

D Defect I Inventory P Productivity L Lead-time E Energy S Scrap S Space

Value Stream Mapping (VSM)

VSM Basic Guidelines

Value Stream Mapping (VSM)

Determine the scope in the Value Stream for

Understand how things currently operate as

 Value Stream Mapping (VSM)

 Cross-Functional VSM (CF-VSM)

 7-Steps of Office Kaizen Methodology

Value Stream Mapping (VSM)

Steps & Descriptions Tool and Template

Step 1 : Review PDCA • Process Flow Chart

Step 2: Gemba to update Observation Log Sheet

Step 3 : Draw the Current ETE VSM • VSM guideline

Step 4 : Develop Current Cross Functional VSM (Optional)

Step 5 : Deploy 7 Steps of Office Kaizen

Step 7 : Create Standard Work

Value Stream Mapping (VSM)

Step Step Step Step Step

4 Individual Process Data

Value Stream Mapping (VSM)

 Individual Process Data Log 4