Value Stream Mapping-160322 Prodemy

Value Stream PRODUCTIVITY
Mapping ACADEMY
16 Maret 2022
PRODUCTIVITY ACADEMY www.prodemyasia.com 1
Outline
Outline
Lean Thinking
Waste in Manufacture
Step-step VSM
Mapping Current State
Analyze and Future State

1
Lean Thinking
The Relentless Elimination of Waste

v
What is Lean ?
44
2
adalah metode sistematis guna
[Definisi] memperpendek waktu
antara order konsumen sampai dengan
Lean produk dikerjakan / dikirimkan melalui
Manufacturing penurunan sumber

pemborosan / waste
dan memberikan
nilai tambah / value
Lean Manufacturing
Business as Usual
WASTE PRODUK
ORDER KONSUMEN
DIBUAT & DIKIRIM
Time
Lean Manufacturing
PPRODUK
ORDER KONSUMEN
DIBUAT & DIKIRIM
Time (Shorter)
66
3
Lean Thinking
Lean thinking can be summarised into five principles :
• Specify Value of specific product

• Identify Value stream for each product
• Make Value Flow without interruption
• Let the customer Pull value from the producer
• Pursue Perfection
PRODUCTIVITY ACADEMY 7
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What is Value…?
Benefit
Value =
Cost
As perceived by the Customer
8
4
The Value Stream
Mine Reduction
Mill Smelter
Hot
Roller
Cold
Can Roller Remelter
Can Maker
Warehouse Recycle
Centre
Bottle Tesco Tesco
Bottler Home
Warehouse Warehouse Store
Value stream for Cola Cans (Lean Thinking: Womack & Jones 1996)
Value Stream of a Cola Can

Processing time 3 hours
Storage and transportation time 11 months
Cumulative scrap 24%
(Lean Thinking: Womack & Jones, 1996)
And this is a highly developed value stream

operated by blue chip companies !
5
Waste in Manufacture
• ” Understanding & identifying waste is the first step to reducing or

eliminating waste”
Two Elements to Every Job
Value Adding Non-Value Adding
Valuable Effort Valueless Obvious

Effort Waste
Costs Time Costs Time

Costs Money Costs Money
Adds Value Adds No Value
VALUABLE WASTE
Where do we draw the line between Waste & Non-waste elements?
6
Rough Guide to Waste
TOYOTA defines Waste as:

"anything other than the minimum amount of equipment, materials,
parts, and working time absolutely essential to production."
The Rough Guide to Waste is:

“Only an activity that physically changes the shape or character of a product or
assembly can add value”
Therefore: Any activity that does not change the product or assembly is waste
Definition of Waste
✓Effort frequently does not result in changing the shape or character

of a product or assembly
• eg. moving, counting, expediting, setups, inspecting, etc
✓Changing shape or character of a product or assembly

does not necessarily add value
• eg. machining, plating, assembly, painting, heat treating, etc
✓The more waste you can see, the more you can eliminate
• If you accept activities as waste, you may devise methods to eliminate them.
YOU choose whether to tolerate the waste!
7
Identifikasi Waste / MUDA
8
Value Stream Mapping
” Mapping area of waste to be eliminated ”
Why Map ?
• Visualise individual value streams

• Uses a selection of tools to review a value stream
• Cross functional involvement & decision making
• Understand what wastes exist & where
• Enables the development of improvement plans
9
Mapping Process
vs Value Stream Mapping?
Process Mapping Value Stream Mapping

• Internally focussed • Customer focussed
• Identifies process sequence • Identifies areas of waste
• Passive documentation • Improvement oriented
PRODUCTIVITY ACADEMY 19
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“Learning to See” Value Stream

• An approach to visualise Material and Information flows in a key
Business Process.
• All the actions required to bring a product,

• door-to-door, from raw material to the customer.
10
21
PRODUCTIVITY ACADEMY www.prodemyasia.com
Information Flow
Material Flow
Lead Time
Timeline VA , NVA
22
PRODUCTIVITY ACADEMY www.prodemyasia.com
11
Map Layout Geography
Supplier Production Control Customer

Info. Info. Info.
Process Flow Information
Time Line
Value Stream Mapping Steps

product family
current-state
drawing
future-state
drawing
work plan
12
Product Family
A group of products that passes through common processing steps
and over common equipment in your downstream processes.
1 Process
3
Process Process Process

2 1 2 4 Process
5
Process
6
3
current-state drawing
ACME Stamping Factory Layout
PRESS DEPT.
Weld II Weld I SHIPPING
200 T WELDING DEPT.
Press
Finished
Goods
Welding Storage
Inspection Welded Parts Storage
Area
Assembly I Assembly II FINAL

Stamped Parts I
Steel Coil N
Storage Storage S
P
E
ASSEMBLY DEPT. C
T
I
O
N
= WIP in Baskets = Finished Goods in Trays
13
ACME Stamping Material Flow
1. Supplier
2.
3.
Stamping
Spot-welding Workstation #1
Door to Door
4. Spot-welding Workstation #2
5. Assembly Workstation #1 Where should we start?
6. Assembly Workstation #2
7. Shipping
8. Customer
Value Stream Mapping Tips

• Always collect information whilst walking the pathways
• Start with quick door-to-door overview
• Begin at shipping point and work upstream
• Do your own timings and inventory counts
• (avoid “system” figures)
• Do the whole stream yourself
• Use pencil and paper - en route
• Resist the PC
14
What data should be collected?
Customer & Shipping, Supplier Process / Production
• Company Name • Number of product variations (P/N’s)
• Quantity order per month • Machine(s) used
• Working days, shift • C/T (cycle time)
• Quantity delivery per day • C/O (changeover time)
• Frequency of delivery/trucking • Uptime (on-demand machine time)
• Order information, forecast • EPE (production sequence time)
• Number of operators (dedicated)
• Pack size
• Working time (minus breaks)
• Scrap rate
• Inventory Before and after
Current State Map

Michigan State Street
Steel Co. Assembly
500 ft. coils This is the 18,400 pcs/mo

- 12,000 LH
- 6,400 RH
Tray = 20 pcs
Material Flow 2 shifts

920 pcs/day
Tues. +
Thurs. IN OUT 1x
Daily
Door Door
STAMPING
STAMPING I S. WELD #1 I S. WELD #2 ASSEMBLY #1
I
ASSEMBLY #2 SHIPPING
I I I
Coils 200 T 4600 L 1100 L 1600 L 1200 L Staging
5 days 2400 R 1 600 R 1 850 R 1 640 R 1
C/T = 1 seconds C/T = 39 seconds C/T = 46 seconds C/T = 62 seconds C/T = 40 seconds
C/O = 1 hour C/O = 10 minutes C/O = 10 minutes C/O = 0 C/O = 0
Uptime = 85% Uptime = 100% Uptime = 80% Uptime = 100% Uptime = 100%
27,600 sec./shift 2 Shifts 2 Shifts 2 Shifts 2 Shifts
EPE = 2 weeks 27,600 sec/shift 27,600 sec/shift 27,600 sec/shift 27,600 sec/shift
Door to Door Value Stream

15
Add Information Flow
Acme Production Control: Icons:
• 30/60/90 day forecasts from customer PRODUCTION
• Daily firm order CONTROL
• Weekly MRP generation
MRP
• 6 week forecast to supplier
• Weekly supplier releases Daily
• Weekly build schedules Order
• Daily shipping schedule
Weekly
Schedule
Current State Map

30/60/90 day
6-week
PRODUCTION Forecasts
Forecasts State Street
Michigan CONTROL
Steel Co. Assembly
Daily
Weekly 18,400 pcs/mo
MRP Order
500 ft. coils Release - 12,000 LH
- 6,400 RH
Tray = 20 pcs
2 shifts
Weekly Schedule
920 pcs/day
Daily Ship
Tues. + Schedule
1x
Thurs.
Daily
STAMPING
STAMPING I S. WELD #1 I S. WELD #2 ASSEMBLY #1 ASSEMBLY #2 SHIPPING
I I I I
Coils 200 T 4600 L 1100 L 1600 L 1200 L Staging
5 days 2400 R 1 600 R 1 850 R 640 R 1
1
C/T = 1 seconds C/T

C/T = 39 seconds C/T = 46 seconds C/T = 62 seconds C/T = 40 seconds
27,600 sec./shift 2 Shifts 2 Shifts 2 Shifts 2 Shifts
16
Add The Time Line
• Process lead-time is the Cycle Times (Value Added Time) for all of the
operations in the process.
• Inventory lead-time is the time it takes to work through the queues of

stock throughout the Value Stream.
Amount on Hand
Inventory Days =
Daily Customer Need
Current State Map

30/60/90 day State Street
6-week PRODUCTION
Forecasts Assembly
Forecasts CONTROL
Michigan
Steel Co. Daily 18,400 pcs/mo
Weekly MRP - 12,000 LH
Order
Release - 6,400 RH
500 ft. coils
Tray = 20 pcs
2 shifts
Weekly Schedule 920 pcs/day
1x
Daily Ship
Daily
Tues. + Schedule
Thurs.
ASSEMBLY #1 SHIPPING
STAMPING
STAMPING
I
S. WELD #1
I
S. WELD #2
I I
ASSEMBLY #2
I
I Staging
Coils 200 T
1 1 1 1200 L 1
5 days 4600 L 1100 L 1600 L 640 R
2400 R 600 R 850 R
C/T = 1 seconds C/T = 39 seconds C/T = 46 seconds C/T = 62 seconds C/T = 40 seconds
27,600 sec./shift 2 Shifts 2 Shifts 2 Shifts 2 Shifts Production 23.6
EPE = 2 weeks 27,600 sec/shift 27,600 sec/shift 27,600 sec/shift 27,600 sec/shift =
Leadtime days
5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days
1 second 39 sec. 46 sec. 62 sec. 40 sec. Value
Added = 188 sec.
Time
17
Identify Opportunities
• The Current State Map shows what is happening “right now.”
• It identifies wasteful steps and bottlenecks.
• It helps visualize how operations can be combined to “flow”.
• It lets you see where “pull” systems are needed
• It shows how the improvements impact the value stream.
Current State Map

6-week 30/60/90 day
PRODUCTION
Forecasts Forecasts State Street
Michigan CONTROL
Assembly
Steel Co.
Weekly Daily 18,400 pcs/mo
Release MRP Order
500 ft. coils - 12,000 LH
- 6,400 RH
Tray = 20 pcs
Weekly Schedule 2 shifts
920 pcs/day
Daily Ship 1x
Tues. + Schedule
“flow” cell
Daily
Thurs.
pull pull
pull
STAMPING
STAMPING I I
S. WELD #2 ASSEMBLY #1
I
ASSEMBLY #2
I S. WELD #1
I SHIPPING
Coils 200 T 4600 L Staging

5 days 2400 R 1100 L
600 R
1 1600 L
850 R
1 1200 L
640 R
1
I
C/T = 1 seconds 1 = 39 seconds

C/T C/T = 46 seconds C/T = 62 seconds C/T = 40 seconds
27,600 sec./shift 2 Shifts 2 Shifts 2 Shifts 2 Shifts Production 23.6
Leadtime = days
5 days
7.6 days 1.8 days 2.7 days 2 days
4.5 days Value
1 second 39 sec. 46 sec. 62 sec. 40 sec. Added = 188 sec.
Time
18
Push vs Pull Control Systems
MRP/
Push System
Planning
System
Make to the plan/schedule
Work-To-Lists
Work-centres are independent
X Y Z Problems are hidden

eg rejects, absence, breakdowns
Information Poor linkages and communication

Material
Push vs Pull Control Systems

Pull System = Kanban MRP/
Planning
Make to the customer demand System
Final
Work-centres are linked together Assembly
Schedule
Request
Tight linkages and close communication
Smokes out problems and issues X Y Z
Can require less inventory, giving shorter

lead-time Information
Material
19
Kanban : A Simple Real Example
Burger
Kitchen Regulator Tills Customer
As one type of burger is consumed . . .

They are removed from the regulator . . .
And then replenished by the kitchen . . .
Not made to a forecast and pushed at the customer
Value Stream Mapping

“Learning to See” Your Future State
20
Future State Questions
1. Desired cycle time (Takt time)?
Demand
2. Built to a FG supermarket or direct ship ?
3. Where can we use continuous flow?

Material Flow
4. Where to use supermarket pull systems?
5. Where is “pacemaker” process?

Information Flow 6. How will you level product mix?
7. What is the increment of work to release?
Improvements 8. What must you improve to make it happen
Future State Question #1

•What is the takt time (desired cycle time), based on the available
working time of the downstream processes that are closest to the
customer?
21
What is Takt Time ?
Time Available (hours)

Takt Time =
Customer Demand (units)
i.e., 20 units needed today =

8 hours / 20 units = 0.4 Hours or 24 minutes
Required Output Rate
Takt time provides the drumbeat to

ensure that output rate meets demand,
ie, 1 finished product off the line with
each beat
22
Allocation of Resources
Required Takt time = 2.4 min
Lead-time = 1min Lead-time = 1.25min

with 5 operators with 4 operators
Lead-time = 1.7min Lead-time = 2.5

with 3 operators Source: Suzaki 1987 with 2 operators
• Will you build to a finished goods supermarket, from which the

customer pulls, or build directly to shipping?
23
Direct Ship or Supermarket?
Use direct ship when continuous flow, mixed model production can be
done. Withdrawal
Card Customer
Requirement
ASSEMBLY SHIPPING
Customer Schedules Assembly

Direct Ship or Supermarket?
24
• Where can you use continuous flow processing?
Where Can Continuous Flow Be Applied ?
• Find the value added operations that can be combined.

• Justify equipment based on cycle time and takt time.
• Balance and improve the flow.
25
Continuous Flow
Current Cycle Times: After Improvement:
62s.
60 56s. 56s. 56s.
45s.
ASSEMBLE
39s. 40s.
40
ASSEMBLE
ASSEMBLE 1
ASSEMB. 2
WELD
WELD 1
WELD 2
20
WELD
1s.
0 1 1 1 1 1 1 1 1
= 1 + 39 + 45 + 62 + 40 = 186 – improvement
= 187 / 60 = 3.12 Ops = 168 / 60 = 2.8 Ops
• Where will you need to use supermarket pull systems in order to

control production of upstream processes?
26
Where Can Supermarkets Be Placed?
Use production supermarkets when batching is necessary due to:
• Short cycle times in lead-off operations
• Multiple customer cells
• Long setup times
• Long or unreliable processes
• Distant outside supply
• At what single point (the “pacemaker process”) in the production

chain will you schedule production?
27
Where is the Pacemaker?
• The pacemaker process is the only one in the value stream that you
schedule.
• It sets the pace for and pulls from the upstream processes.
• Its output flows through the rest of the downstream processes.
Selecting the Pacemaker
28
• How will you level the production mix at the pacemaker process?
How to Level Product Mix?

• Leveling the product mix is distributing the production of all the
products made at the pacemaker evenly over the shortest possible
time period, leading to:
• Faster customer response
• Shorter lead times
• Less supermarket inventory
• No peaks or valleys
• Less expediting
• Fewer rejects
29
Production Mix
Normal batch scheduling would be:

1st shift 2nd Shift
LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLRRRRRRRRRRRRRRRR
Level (uniform) schedule would be:

1st shift 2nd Shift
RLLRLLRLLRLLRLLRLLRLLRLLRLLRLLRLLRLLRLLRLLRLLR
Leveling Icon is: OXOX
Future State Map
30
Achieving the Future State
1. Breaking Implementation into Steps:
• The Pacemaker Loop
• Additional Loops upstream of the Pacemaker Loop
• You can circle these loops on your future-state map, to help you see the flow segments
that make up your value stream.
• Identify objectives and goals.
2. The Value Stream Plan
• Exactly what is the plan, step-by-step

• Measurable goals
• Clear checkpoints with real deadlines and named reviewer(s)
31
3. Value Stream Improvement is Management’s Responsibility
Future State Map
6-week 30/60/90 day

PRODUCTION Forecasts
Michigan Forecasts State Street
CONTROL
BP #3
Steel Co. Assembly
Daily
Daily
500 ft. coils Order 18,400 pcs/mo
Order - 12,000 LH
coil Loop
- 6,400 RH
Tray = 20 pcs
2 shifts
coil Daily Order
coil
Daily 1x
Milk Run Daily
OXOX 20
batch 20
20
tote
BP #1
Loop
Coils
STAMPING WELD + ASSY.
L Pull SHIPPING
R
200 T Staging
BP #2
EPE = 1 shift
Takt = 60 sec.
Loop
C/O = < 10 min.
C/O = 0
(at the Uptime = 100%
press) 2 Shifts
Total work content
-
Production
1.5 days 1 day
< 168 sec.
2 days leadtime = 4.5 days
1 sec, 168 sec. Value
Added Time = 169 sec.
32
Thank You
PRODUCTIVITY ACADEMY
: prodemy.global@gmail.com
: 082112235378
: Productivity Academy (PRODEMY)
: @prodemyasia
: www.prodemyasia.com
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Value Stream PRODUCTIVITY

PRODUCTIVITY ACADEMY www.prodemyasia.com 1

Mapping Current State

Analyze and Future State

PRODUCTIVITY ACADEMY www.prodemyasia.com 3

Manufacturing penurunan sumber

PRODUCTIVITY ACADEMY www.prodemyasia.com 5

Lean thinking can be summarised into five principles :

• Specify Value of specific product

As perceived by the Customer

PRODUCTIVITY ACADEMY www.prodemyasia.com 9

Value Stream of a Cola Can

And this is a highly developed value stream

PRODUCTIVITY ACADEMY www.prodemyasia.com 10

• ” Understanding & identifying waste is the first step to reducing or

PRODUCTIVITY ACADEMY www.prodemyasia.com 11

Two Elements to Every Job

Value Adding Non-Value Adding

Valuable Effort Valueless Obvious

Costs Time Costs Time

Where do we draw the line between Waste & Non-waste elements?

PRODUCTIVITY ACADEMY www.prodemyasia.com 12

TOYOTA defines Waste as:

The Rough Guide to Waste is:

PRODUCTIVITY ACADEMY www.prodemyasia.com 13

✓Effort frequently does not result in changing the shape or character

✓Changing shape or character of a product or assembly

PRODUCTIVITY ACADEMY www.prodemyasia.com 14

Identifikasi Waste / MUDA

PRODUCTIVITY ACADEMY www.prodemyasia.com 16

PRODUCTIVITY ACADEMY www.prodemyasia.com 17

• Visualise individual value streams

PRODUCTIVITY ACADEMY www.prodemyasia.com 18

Process Mapping Value Stream Mapping

“Learning to See” Value Stream

• All the actions required to bring a product,

PRODUCTIVITY ACADEMY www.prodemyasia.com 20

Supplier Production Control Customer

Process Flow Information

PRODUCTIVITY ACADEMY www.prodemyasia.com 23

Value Stream Mapping Steps

Process Process Process

PRODUCTIVITY ACADEMY www.prodemyasia.com 25

Assembly I Assembly II FINAL

= WIP in Baskets = Finished Goods in Trays

PRODUCTIVITY ACADEMY www.prodemyasia.com 26

PRODUCTIVITY ACADEMY www.prodemyasia.com 27

Value Stream Mapping Tips

PRODUCTIVITY ACADEMY www.prodemyasia.com 28

PRODUCTIVITY ACADEMY www.prodemyasia.com 29

Current State Map

500 ft. coils This is the 18,400 pcs/mo

Material Flow 2 shifts

Door to Door Value Stream

PRODUCTIVITY ACADEMY www.prodemyasia.com 31

Current State Map

C/T = 1 seconds C/T

PRODUCTIVITY ACADEMY www.prodemyasia.com 32

• Inventory lead-time is the time it takes to work through the queues of

PRODUCTIVITY ACADEMY www.prodemyasia.com 33

Current State Map

PRODUCTIVITY ACADEMY www.prodemyasia.com 34

PRODUCTIVITY ACADEMY www.prodemyasia.com 35