Value Stream Mapping

Dr. Syed Amir Iqbal

 Introduction
“A value stream involves all the steps in a process, both value
added and non value added, required to complete a product or
service from beginning to end”

Value Stream Mapping (VSM) is a set of methods to visually

display the flow of materials and information through the
production process.

Whenever there is a product or service for a customer, there is

a value stream.
 Introduction
• One page picture of all the processes that occur in a
company
– from the time customer places an order for a product, until
the customer has received that product in their facility.
• Documents all of the processes used to produce and
ship a product
– both Value-Adding and Non Value-Adding (waste) processes.
• The goal is to depict material and information flows
required to produce and ship the product to the
customer.
 Why VSM is an Important Tool?
• It helps you visualize more than one process level, i.e. assembly,
Welding etc. in production.
• It helps you see sources of waste in your value stream.
• It provides a common language for talking about manufacturing
processes.
• It forms the basis of an implementation plan, i.e. how the whole
door-to-door flow should operate.
• It shows the linkage between the information flow and the
material flow.
 Introduction

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D
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Introduction
Introduction
 Core uses VSM
• Often used in process cycle-time improvement
projects since it demonstrates exactly how a process
operates with detailed timing of step-by-step
activities.
• Also used for process analysis and improvement by
identifying and eliminating time spent on non value-
added activities.
 Value Stream Mapping – The 5 Lean
Principles
• Define Value - Specify value from the Customer
perspective.
• Map Value Stream - Identify the value stream
for each product or service and challenge all of the
non-value adding steps (wastes) currently
necessary to create and deliver this product or
service. Add nothing than value.

• Create Flow - Make the product or service creation and delivery

process flow through the remaining value-added steps.
• Establish Pull – Introduce pull between all process steps where
continuous flow is possible.
• Pursuit Perfection – Manage toward perfection so that the number of
steps and the amount of time and information needed to create and
deliver this product or service.
 Value Stream Mapping – The 7 Wastes
• Waste elimination is one of the most effective ways to increase the profitability
of any business. Processes either add value or waste to the production of a good
or service. The seven wastes originated in Japan, where waste is known as
“muda."
• Value Stream Mapping focuses primarily on waste elimination due to inventory,
waiting, and overproduction.
Value Stream Mapping –
The Development Process

1. Define Product Family

2. Establish the Team
3. Document Current State
4. Design Future State
5. Create Implementation Plan
6. Execute - Execute - Execute
 Value Stream Mapping –
1. Define Product Family
• Customers care about their products, not every product made by an
organization. Therefore, Value Stream Mapping focuses on walking and
drawing the processing steps for on product family from product delivery
to raw material shipping. A product family is a group of products that pass
through similar processing steps in the process.
Process steps & Equipment
Drill weld Stamp Paint Manual Assy Fixture Assy test
Right Handle X X X X
Left Handle X X X X
Products

Body X X X X
Base X X
Insert X X X
Switch X X
 Product Family Guidelines
• Common process steps
– 80% similar steps
– 4 out of 5, 8 out of 10
• Not too many products
– drives takt time down
• If your product mix is complicated, you can
create a matrix with assembly steps and
equipment on one axis and your products on
the other axis.
 Value Stream Mapping –
2. Establish the Team
• Since companies are organized by departments and functions,
instead of by the flow of value-creating steps for products, and in
most situations –no one is responsible for the value stream
perspective.
• To handle this scenario of isolated islands of functionality, you need
a team with the responsibility of understanding product (family)
Value Stream and improving it. This team usually headed by a VSM
Manager.
• Typically a cross-functional team of managers or supervisors
• Team size 7-10 people
• Have experienced VSM person lead the session
• Have to walk the flow
• Commit to the time requirement
 Value Stream Mapping –
2. Establish the Team
Job description of VSM manager

• Reports implementation progress to the top person on site.

• A line, not staff, person with the capability to make change happen
across functional and departmental boundaries.
• Leads the current state and future state value stream maps and the
implementation plan for getting from present to future.
• Monitors all aspects of implementation.
• Walks and checks the flow of the value stream, daily or weekly.
• Makes implementation a top priority
• Maintains and periodically updates the implementation plan
• Insist on being a hands on person driven by results.
• A person who distinguishes between mapping the organization and
mapping the flow of product through organization.
 Summary-
Your Starting Point

• Select a Product Family

• Have select a team and One person lead the
mapping effort
• Begin at the “door to door” level.
• Consider both material and information flow.
 Value Stream Mapping –
3. Document Current State
• Depict the Customer requirements !!!
• Follow the flow of the product from shipping to
the raw material stage
• Draw the processing steps used to process, move
and store the product
• Input the process and inventory data
• Draw the information flow
• Draw a time line depicting the lead and processing
time
Value Stream Mapping –
3. Document Current State
Value Stream Mapping –
Process Icons
Value Stream Mapping –
Process Icons
Value Stream Mapping –
Process Icons
Value Stream Mapping –
Process Icons
 Value Stream Mapping –
Time Metrics Definitions
Working Time (WT)
To calculate Working Time - deduct breaks, meetings, beginning of shift setup, end of
shift clean-up, planned maintenance, and other planned nonworking time. Do NOT
deduct unplanned downtime or changeovers.
Cycle Time (CT)
The average time between two consecutive parts coming out of a process.
Value-Add Time (VT)
The average time between two consecutive parts coming out of a process that actually
transform the part in a way that the Customer is willing to pay for.
Changeover Time (CO)
The time it takes to changeover (to reset or change equipment) from one part to another
(Change Over Matrix).
Queue Time (QT)
The time between sub-processes that the part gets shuffled around or sits around
waiting for someone to work on it.
 Value Stream Mapping –
Time Metrics Definitions
Up Time (UT)
The ratio of the actual available production time of a process to the available
working time. Expressed as a percentage, uptime is calculated by dividing
actual available production time by the available working time.
Lead Time (LT)
The average time it takes for one part to go through the entire process –
from start to finish - including time waiting between sub-processes.
Processing (or Touch) Time (PT)
The time it takes to actually do the work from beginning to end, if one is able
to work on it uninterrupted.
Takt Time (TT)
Planning drumbeat. How often completed parts NEED to come out the end of
the pipe - as established by Customer demand.
 Electronic Information

Manual Information

Process Sequence
Process Inventory

Time Metrics

Value added time

Lead time info
Timeline
 Value Stream Mapping –
Design Future State
• The goal of value-stream mapping is to highlight sources of
waste and eliminate them by building a chain of production
where the individual processes are linked to their customers
either by continuous flow or by pull.
• The first iteration of a future-sate map should take product
designs, process technology, and plant location as given and
seek to remove as quickly as possible all sources of waste not
caused by these features.

“What can we do with what we have?”

 Value Stream Mapping –
Key Guidelines & Concepts

• Produce at your Takt Time

• Develop Continuous Flow wherever possible
• Use Supermarkets to control & schedule Production
• Determine the Pacemaker Process
• Level the Production Mix
• Level the Production Volume (Paced Withdrawal)
 Value Stream Mapping –
5. Create Implementation Plan
Action planning is the process of planning what needs to be done, when it
needs to be done, by whom it needs to be done, and what resources or
inputs are needed to do it.

Most action plans consist of the following elements:

– a statement of what must be achieved (the outputs or result areas that
come out of the strategic planning process);
– a spelling out of the steps that have to be followed to reach this objective;
– some kind of time schedule for when each step must take place and how
long it is likely to take (when);
– a clarification of who will be responsible for making sure that each step is
successfully completed (who);
– a clarification of the inputs/resources that are needed.
 Acme Stamping Data Set
Example
• ACME Stamping Company produces several components for vehicle
assembly plants. This case concerns one product family, steel
instrument-panel bracket subassembly in two types: one each for
left-hand and right-hand drive versions of the automobile model.
These components are sent to the Street Vehicle Assembly Plant
(the customer).
• Acme’s processes for this product family involve stamping a metal
part followed by welding and subsequent assembly. The
components are then staged shipped to the vehicle assembly plant
on a daily basis.
• Switching between Type “LH” (left-hand drive)and type “RH” (right-
hand drive) brackets requires a 1 hour changeover in stamping and
a 10-minute fixture change in the welding processes.
• Steel coils are supplied by Michigan Steel Co. Steel deliveries to
Acme arrive on Tuesdays and Thursdays.
Customer Requirements
– 18,400 pieces per month Acme Stamping Data Set
• 12,000 per month of Type “LH" Contd.
• 6,400 per month of Type “RH”
– Customer plant operates on two shifts. Palletized returnable tray packaging with 20
brackets in a tray and up to 10 trays on a pallet. The customer orders in multiples of
trays. One daily shipment to the assembly plant by truck.
Work Time
– 20 days in a month
– Two shift operation in all production departments
– Eight (8) hours every shift, with overtime if necessary
– Two 10-minute breaks during each shift.
– Manual processes stop during breaks, unpaid lunch.
Acme Production Control Department
– Receives State Streets 90/60/30-day forecasts and enters them to MRP.
– Issues Acme 6-week forecast to Michigan Steel Co. via MRP
– Secures coil steel by weekly Faxed order release to Michigan Steel Co.
– Receives daily firm order from State Street
– Generates MRP-based weekly departmental requirements Based upon customer order,
– WIP inventory levels, F/G inventory levels, and anticipated scrap and downtime.
– Issues weekly build schedules to Stamping, Welding, and Assembly processes
– Issues daily shipping schedule to Shipping Department
 Acme Stamping Data Set
Contd.
Process Information
• All processes occur in the following order and each piece goes through all processes.
Stamping ( The press makes parts for many Acme products)
• Automated 200 Ton press with coil Observed Inventory:
(automatic) material feed • 5 days of coils before stamping
• Cycle time: I second (60 pieces per minute) • 4,600 pieces of Type "LH" finished
stampings
• Changeover time: I hour (good piece to good piece)
• 2,400 pieces of Type “RH” finished
• Machine reliability: 85% stampings
Spot Weld Workstation I (dedicated to this product family)
• Manual process with one operator Observed Inventory:
• Cycle time: 39 seconds • 1,100 pieces of Type “LH”
• Changeover time: 10 minutes (fixture change) • 600 pieces of Type “RH”
• Reliability: 100 %
Spot Weld Workstation II (dedicated to this product family)
• Manual process with one operator
Observed Inventory:
• Cycle Time: 46 seconds • 1,600 pieces of Type “LH”
• Changeover time: 10 minutes (fixture change) • 850 pieces of Type “RH"
• Reliability: 80%
 Acme Stamping Data Set
Contd.
Assembly Workstation I (dedicated to this product family)
• Manual process with one operator • Observed Inventory:
• Cycle time: 62 seconds • 1,200 pieces of Type “LH”
• Changeover time: none • 640 pieces of Type “RH"
• Reliability: 100%
Assembly Workstation II (dedicated to this product family)
• Manual process with one operator • Observed Finished-Goods Inventory in
• Cycle time: 40 seconds Warehouse:
• Changeover time: none • 2,700 pieces of Type “LH”
• Reliability: 100% • 1,440 pieces of Type “RH"

Shipping Department
• Removes parts from finished goods warehouse and stages them for truck
shipment to customer.
Takt Time
Calculation
 Takt Time Calculation
•   is a German word that means beat. In essence, Takt is the beat
Takt
of the line or cell; it is the speed that this value stream must operate
at to keep pace with demand. To calculate Takt time, use the
following formula:
 The “Value” in VSM
An obvious value of the Current State Map is the chaos and
confusion that is visually shown on the map. When the initial
mapping is shown to the audience, it typically reveals all of the
following problems:
– Excessive communication
– Overly complex process steps
– Non-value-added (NVA) steps
– Bottlenecks
 ACME Stamping
Future State
1. What is ACME’s TAKT time for the chosen product family?
2. Should ACME build steering brackets to a finished goods
supermarket or directly to shipping?
3. Where can ACME introduce continuous flow?
4. Where will ACME need to used super market pull system?
5. How should ACME level the production mix at the pacemaker
process?
6. What consistent increment of work should ACME release and
take away at the pacemaker process?
7. What process improvement will be necessary for ACME value
stream to flow as future state design?
 What is ACME’s TAKT time for the chosen product family?

•   Available working = (8x3600)-(2x10x60) = 27600 sec/shift.

ACME Steering Bracket Assembly Takt time = 60 sec.

• This time doesn't include equipment downtime, changeover time or
producing scrap.
• Takt time is a reference number defined by the customer and usually
doesn't change.
Where can ACME introduce continuous flow?
• The operator balance chart summarizes the current total cycle times for
each process.
• Stamping process is the slowest. It reasonable to run press as batch
operation and control its production with a supermarket based pull
system.
• The processing times for welding & assembly operations are similar and
near the Takt time. However for continuous flow there must be no
inventory among these stations.
• One approach is to place these four
Stations adjacent to each other in
Cell type arrangement, so that
operators carry or pass parts from
one process to next and distribute
work elements to match the work
contents just below Takt time.