Value Stream Mapping Group A8

Value Stream Mapping definition
• Value Stream Mapping (VSM): – Value stream mapping is a method of creating a “One page picture” of all processes that occur in a company, from the time a customer place a order for a product, until the customer has received that product in their facility.

Value Stream Mapping Purpose
• Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (customer requirement) – Build /Manufacturing (order to delivery) – Sustain (in-use through life cycle to service)

Eyes for Waste . . . . . . Eyes for Flow

Why ?
• • • • • • • Visualize the whole process See the sources of waste Provides a common language for improvement Makes decisions about flow apparent Ties together lean techniques Forms the basis of an improvement plan Shows linkage between information and material flows

What Is Value?
• A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying

What Is Value Stream Analysis?
Planning tool to optimize results of eliminating waste

Value Stream Mapping Example

• Elapsed time from order to delivery : 30 days • Value added time : 1 hour,25 minutes

Apply Five Simple Principles
• Specify value from the view point of end customer • Identify the value stream for each product family • Make the product flow • So the customer can pull • As you manage toward perfection

What is the Value that Flows?
Ask how your current products and processes disappoint your customer’s value expectation: • price? • quality? • reliable delivery? • rapid response to changing needs?

Value Stream Mapping Process Symbols
Customer/Supplier Icon:

Inventory Icons: Shipments Icon: Push Arrow Icon: Supermarket Icon: Material Pull Icon:

Dedicated Process flow Icon: Shared Process Icon:

Data Box Icon:

Workcell Icon:

FIFO Lane Icon: FirstIn-First-Out inventory. Safety Stock Icon:

Withdrawal Kanban Icon : Signal Kanban Icon :

External Shipment Icon: Kanban Post Icon : Production Control Icon: Manual Info Icon :

Sequenced Pull Icon: Load Leveling Icon :

Electronic Info Icon :

MRP/ERP Icon :

Production Kanban Icon :

Go See Icon :

Value Stream Mapping General Symbols
Kaizen Burst Icon:

Operator Icon :

Other Icon :other useful or potentially useful information.

Timeline Icon :

Current State Map
The Steps

Step 1: Select a Product Family Step 2: Form a Team Step 3: Understand Customer Demand Step 4: Map the Process Flow Step 5: Map the Material Flow Step 6: Map the Information Flow Step 7: Calculate Total Product Cycle Time Step 8: Detail Off-Line Activities

Data Collection
Attribute Data to Collect Shipping/Receiving schedules  Pack sizes at each process  Demand rates by process (Takt Time)
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Work-in-process inventory Overtime per week Process cycle times Number of product variations at each step Batch (lot) sizes Changeover times Changeover frequencies

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Working hours and breaks Inventory Points (location & size) How Operations are scheduled

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Scrap Rework Downtime

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1. Determine Total Customer Requirements for the affected process. 2. Determine the Scheduled Runtime (S.R.) for the affected process: Scheduled Runtime = (Effective Minutes) - (Planned Downtime) Effective Minutes = (minutes per shift) - (approved breaks) Planned Downtime is the amount of time an operation is down for scheduled reasons. 3. Calculate Takt Time:

Scheduled Runtime Takt Time = Total Customer Requirements

Current State Map
Metal Panels Prod. Control

A1 Manuf.

6 Week Forecast Weekly Order

6 Week Forecast Weekly Order

L=8400pcs/month R=4200pcs/month F=4200pcs/month 16,800 840pcs/day

Tues./ Friday

Tues./ Friday
Weekly Prod. Schedule Weekly Ship Schedule

Tues. = L&R Friday = L&F

• 3 machines • Parallel • C/T=12s/mach. • OT = 16 hrs/wk

• 1 assy line • OT = 8 hrs/wk
= 50 pcs


= 3/shift
A: 12600 pcs B: 4200 pcs C: 4200 pcs D: 4200 pcs Takt: C.T.: Op. Avail: FTQ: C/O: V.A.: Scrap: 5.0 sec 4.0 sec 60.0 % 96% 4 hrs 12 sec 4% L: 4200 pcs R: 2100 pcs F: 2100 pcs

= 12/shift
Takt: C.T.: Op. Avail: FTQ: C/O: V.A.: Scrap: Rework: 60 sec 48 sec 80% 85% 30 min 360 sec 5% 10% L: 2100 pcs R: 1050 pcs F: 1050 pcs

= 2/shift
1 Shift

General Info.
• 2 shifts • 420 min avail • 5 days/wk + OT • 20 days/month

15 Days Part ‘A’ Only 12 Secs

10 Days

5 Days

30 Days 372 Secs

360 Secs

Future State Map
The Steps

Step 1: Validate Customer Demand Step 2: Draw the Future State Process Flow Step 3: Map the Future State Material Flow Step 4: Map the Future State Information Flow Step 5: Calculate Total Product Cycle Time Step 6: Detail Off-Line Activities

Step 7: Outline a Plan


Future State Map
Metal Panels

A1 Manuf.

6 Week Forecast Daily Order

Prod. Control

6 Week Forecast Daily Order



Daily Milk Run

XOXOX 20 20 20 Daily

L=9240pcs/month R=4620pcs/month F=4620pcs/month


•3 machines •Run EPE=1day

Min 0.5 days Max 1.5 days

•1 assy cell



= 3/shift D
Min 0.5 days Max 1.5 days Takt: C.T.: Op. Avail: FTQ: C/O: V.A.: 4.8 sec 4.0 sec 84.2% 99% <30 min 12 sec

= 7/shift

Min 0.5 days Max 1.5 days

= 2/shift

Takt: 54.55 sec C.T.: 48.00 sec Op. Avail: 89.4% FTQ: 98.5% C/O: <10 min V.A.: 360 sec

1 Shift

1 Day 12 Secs

1 Day 360 Secs

1 Day

3 Days 372 Secs

Whether to build a finished goods supermarket or directly to shipping?
The Wall of Protection:

Our Manufacturing Plant

The Customer

Finished Goods Supermarket

Protects your customer from significant process variation. Protects your manufacturing operation from significant demand variation.

Every effort should be made to minimize these variations. These variations are driven by one of the seven forms of waste and should be eliminated. Eliminate Waste

Where can you use continuous flow processing? (Batch Process vs. Continuous Flow)

Batch Process
Process “A”


Process “B”


Process “C” Elapsed Time: 60 Minutes

Continuous Flow (One-Piece Flow)
Process “A” Process “B” Process “C” Elapsed Time: 01 Minute

Consider Key Questions
How will you level the production mix at the pacemaker process?
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Consideration must be given to level both the mix and overall quantity of product scheduled for production. Leveling of the production schedule is a fundamental requirement for the efficient management of operations Without Leveling With Leveling





How will you level the production mix at the pacemaker process? (Continued) Leveling of the overall production quantity must be supported by the leveling of the product mix. Traditional Scheduling
Daily Production Mon 4370 Part D
Part D
Part A Part B Part C

Level Scheduling
Daily Production Part A 218
Part D Part A Part B Part C

Tue 4370 Part D Wed 4370 Part D
Part D

Part B 655 Part C 874
Part D Part A Part B Part C

Thu 4370 Part C Fri
Part D

Part D 2622
Part D Part A Part B Part C

3277 B 1092 A

Part C

Part D Part A Part B Part C Part D




Part A & B

Thu .







How will you level the production mix at the pacemaker process? (Continued)

 Leveling

of the product mix must be supported by small lot production. lot production must be supported by quick set-up.

 Small

Value Steam Mapping Steps

Thank you