Jayant Shrikhande

Presents
Business Excellence Series Through
Lean Thinking

VSM - Value Stream Mapping

J J SHRIKHANDE 1
This Photo by Unknown Author is licensed under CC BY
 Value Stream
Mapping
Process

• What,
• Where,
• When,
• Why,
• Who,
• Which,
• How etc

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 Lean system implementation requires a high degree of
discipline, and sometimes it can stress the workforce.

There is high level of co-operation & trust required between

operators and supervisors.

Reward systems and labour classifications must often be

revamped when a lean system is implemented.

Significant Existing layouts may need to be changed.

effects
Daily production schedules in high-volume, make-to-stock
environments must be stable for extended periods.

If the inventory advantages of a lean system are to be realized,

small lot sizes must be used.

If frequent, small shipments of purchased items cannot be

arranged with suppliers, large inventory savings for these items
cannot be realised.
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 Overview
Pre VSM

VSM Review – Current State

Highlights
VSM Review – Future State & Implementation Road
Map

Excellence Road Map

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 Lean Process

Value Stream Mapping (VSM)

Value & Non Value Add

Highlights
-1 Principles

SIPOC

Definition

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 What is a Lean Process ?

Define value Create flow;

Map the
from the eliminate the
value
customer’s root causes
stream
perspective of waste

Seek Create pull

perfection via where
continuous flow is
improvement difficult to
achieve
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 VSM – Why, What, Where?
Key tool for Lean implementation, makes process & problems visible Forms the basis of
an improvement plan and a common language

Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC)

Is a qualitative tool for identifying and eliminating waste (or muda) Aligns organisations

processes, creates a sense of teamwork / ownership Involves drawing - current state, future state,

& an implementation plan

Spans the entire value chain, from raw materials receipts to finished goods delivery

A paper and pencil tool to help you visualise and understand the linkage between material and
information flow

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Focuses on maximising the overall flow
 Value Add (VA)
• Any activity the customer values (and is willing to pay for)
• Who are your customers?
• What do they really want?
• To be considered “value add”, a process step must have

YES to all these questions

• Does the customer care?
• Does it change the thing?
Value Add& Non • Is it done right the first time?
• Is it required by law or regulation?
Value Add
Non Value Add (NVA)
• Any activity that consumes time and / or resources & does
not add value to the service or product for the customer.
These activities should be eliminated, simplified, reduced,
or integrated.
• Necessary – Legal / regulatory requirements
• Unnecessary - Waiting, Unnecessary processing,
Errors/defect7s, Motion (people), Transportation
(product), Underutilised people, Inventory

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 Definition of a Value Stream
The VALUE STREAM is the entire set of processes or activities
performed to transform the products and services into what is required by the customer.

The VALUE STREAM

Suppliers
Suppliers Design
Design Procure
Procure Make
Make Sell
Sell Customers
Customers

A Primary Focus is TIME,

Product and / or Service Flow

Information Flow: Quickly In All Directions

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 Understanding the Value Stream

Their
Supplier Our
Supplier Our Happy
Piece Our Customer
Customer Their
Service

• We are often part of a value creating stream

• Ultimately, the intent of the stream is to answer the end-user’s needs
• Knowing who our customers are is the first step in understanding the stream; our
primary customer may not be the end-user
• Knowing how the stream and our piece works or doesn’t work in meeting
customer needs is what Lean Six Sigma is about

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 Special Flow Charting tool for development of Lean Processes

Technique used to visualize

1 Product Flow through various processes

Value 2 Information Flow resulting from process flow

Stream 3 Information about controls used to govern process flow

Mapping VSM not limited only to Manufacturing Flow but any type of business
like
1 Service

2 Logistics

3 Distribution

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 Value Stream Overview

• Value Stream Mapping (VSM) is a pencil and paper tool that helps us see and
understand the flow of material and information as a product makes its way through the
Value Stream

• Follow the product or services path starting from the Customer and then move to the
supplier and carefully draw a visual representation of every process

• Ask a set of key questions and draw a “Future State” map of how value should flow

• Help us see the sources of Waste and eliminate them

Looking at the process from a customer value perspective

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 Value Stream Mapping
Forms the Blueprint for a Lean Implementation Plan

Why Value Stream Mapping is a good place to start your LEAN journey
• It helps you visualize more than just the single-process level, i.e. assembly, welding, etc.
• It helps you see more than waste ­it helps you see the sources of waste in your value stream
• It provides a common language for talking about manufacturing processes
• It makes decisions about the flow apparent, so you can discuss them
• It ties together lean concepts and techniques ­helps you avoid "cherry picking"
• It shows the linkage between the information flow and the material flow

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J J SHRIKHANDE

Identify steps creating Value and other non essential steps not
creating value
Example of identifying value while making a part for machinery

• Process may start from making a big steel or aluminium billet

Identify the • Extrude the billet into smaller sections rectangular bar or
round bars

Value Stream • Machining of the bar to create shape of the part involving
operations like milling , shaping , turning , drilling , grinding ,
honing , heat treatment , polishing , plating , painting etc
• There could be many steps of Inspection , handling ,
storing , transporting etc also involved
• Inspection could be type 1 Muda
• Many other Operations could be Type 2 Muda

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 •Diagnostic Tool
• Reveals hidden symptoms of larger problems

•Strategic Planning Activity

• Helps prioritize opportunities for improvement
• Results in an implementation plan
VSM - •Macro-Level - Visual Representation
Principles • Information flow
• People and material flow
• Each process block represents a handoff or a break
in the timeline

•Contains Relevant Metrics

• Lead time – throughput / turnaround / flow time
• Cycle time – touch / process time

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 SIPOC - Process Map

S I P O C
Suppliers Inputs Process Outputs Customers
 Highlights - 2

Current Process Challenges Conceptual Overview

VSM Charter VSM

Boundary

Product Family Matrix Data Collection

Future State – Questions & Blueprint

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 Current Process Challenges
Lots of waiting Lots of travel  Broken interfaces - ineffective or non-existent interfaces
Lack of communication
 Different prioritisation rules in different
Lack of skills / not trained departments
Too many handoffs
 High Lead Time (slow throughput/turnaround)
Too many approvals
Too many workarounds Duplication of work
 High WIP (waste in process
Dead zones - places where work gets held up or lost  – bottlenecks / backlogs)
 Low CT/LT ratio (lots of waiting)

Lost time - people looking for work and / or re-work loops

to correct errors

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 Conceptual Overview - Where to start?
VSM Charter & Scope Charter / Scope
– Process Boundaries / Scope
– Roles & Responsibilities
– SIPOC
Product
family
Product Family
– Start with a single product family

Current state
Current & Future State drawing
– Collect data on process & system
– Be specific
how many finished part numbers in family?
how much is demanded? How often? Future state
– Verify & repeat the Process drawing

Work plan &

Develop Implementation Plan 3
implementation11
 VSM - Boundary
Current State

Define the boundaries Define the value

Identify the tasks and flows of material and information between them
Identify resources for each task and flow Create the current state map

Future State (Design)

Visualise the “Ideal State” and design the future state map
– Identify value added and waste from Current State
– Reconfigure the process to eliminate waste / Add Value

Implementation Plan
Develop Action plans and track
 Define Boundary
Before launching on VSM, define the Start and End points
– Prepare As-Is physical map – How / where (inputs to outputs)
– Prepare As-Is geographical map - area(s) where process is performed
– Add process control information flow to as-is physical map

A logical starting point - where Inputs cannot be returned to the preceding step.

Capture the process as it is actually performed and include workarounds,

rework, informal activities, feedback loops etc

In lean, we commonly define “work-in-process” is anything you can’t ship to

the customer or return to the supplier

Add As-Is process metrics - counts, rates

– The number of parts required by customers
– The number of machines and operators available to work on parts
– The rates that process steps work on parts

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2
 Eg. Boundary - Start & End Points
START
Inputs
• Market Research Identify
Review
• Data - Competition Define Go- Risks,
Objectives,
• Firm’s Strategy to Market Assumption
Goals &
Drivers &
Strategies
Constraints

END

Outputs
Conduct Approve • Marketing Plan
“What If” Evaluate
Go-to • KPI
Scenarios Scenarios
Market Plan • Team

2
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Normal Way by human beings is always think in terms of

processing in batches

• All processes in batches like paint one colour parts together or

machine batch of parts in one machine and then take the batch
to second machine and so on
• Henry Ford was the first person to think of Standardising
Design on Model T car in 1913
• All cars of same design and same colour and produced about 2
Flow million cars an year
• Toyota Assembly switched from batch type assembly to Flow
production – one process after other and so on
• This systems reduced assembly time by 90 %
• After World War II Tai Ichi Ohno (Toyota )along with Shigeo
Shingo tried to apply flow process production for small lots by
working on quick changeover of tools & right sizing ,
miniaturising machines

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Waste through Casting , machining and Assembly
Staging
Wait Inspection Staging
Transportation

Setup

Casting Assembly
Machining

RM Time Finished
Parts
Value-Added Time Non-Value Added Time
(Waste)

Analysis reveals , less than 5% are VA & remaining are NVAs which need
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focus
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Which product family should you map initially?

• Although business goals and objectives of the

company will most often answer this question,
there are ways to answer it if there are no goals
or objectives in place to assist with the decision.
Consider the following:

• A Where is the most pain for the customer?

• B Where is the most pain for your employees?

• C What is most visible to the workforce?

• D Where is the perceived largest return on

investment (ROI) for the organization?

•After you have decided which product family to map, it is

then possible to start the Current State Mapping process.

•You should file the product matrix for future use, because
there will most likely be other value streams identified.

•Additionally, this matrix may come in handy when trying to

identify the approximate number of steps within the product-
flow portion of your Current State Map
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J J SHRIKHANDE

Value Stream Mapping Process  

• Often times Value Stream Mapping process consists of the following
sequence of stages or steps, or its varieties.

•Step 1 Prepare for Value Stream Mapping. 
•Step 2 Map Current State Value Stream. 
•Step 3 Perform Root Cause Analysis. 
Value Stream •Step 4 Map Future State Value Stream. 
•Step 5 Implement Improvement. 
Mapping •Step 6 Standardize. 

Process •Prepare for Value Stream Mapping  

•Before proceeding with the Value Stream Mapping process, it is essential
to first prepare well for it. The activities of this stage will include, 

•Selecting the process to improve or lean.
• Obtaining management approval to start. 
•Selecting the Value Stream Mapping team.
• Selecting the Value Stream Mapping Owner.
• Providing necessary resources to ensure success.
• Drawing the COPIS.(Customer, Output, Process, Input, and Supplier )
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Once you have selected a few processes which you feel can be improved, then you can look at those processes for
the following, 

• Which processes, if improved can deliver the maximum return on investment. 

• Which processes, if improved can result in improving the most key performance indicators of your business. 

• Which processes, do you think have most of the problems as reported by the customer? 

• Which processes, do you think have most of the problems as reported by the people of your company? 

• Which processes, do you think the management, the leadership, or the business cares for the most? 

Once you have these points clear, you need to present your findings and proposal to improve the processes, to your
management.

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 •Phase zero: preparation 
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• •Start by observing the activities of the factory or service. 

••Collect precise, up-to-date information on behalf of the person who 
•wants this VSM.
• If necessary, take measurements on the ground with the help of a timer by
working your way around the circuit of raw materials and information. 
• Start your itinerary with the customer and work your way back through the
manufacturing process.
• Make a list of the processes that are most closely linked to the final
customer in order to identify what is absolutely useful to them. 

Preparation • •Sketch a draft by hand on a single side of A3 or A4 paper.

for VSM •First phase: the customer 

• •Write “customer” in the top right-hand corner. 

• Second phase: the manufacturing process 
• •Use the “process” icon (the material undergoing operations) and: 
• •group the positions belonging to a single process under the 
•same icon; 
••include the important information about the process in the box 
•below (such as the cycle time, value-adding time, time period, manufacturing
change time, number of each piece per hour, available working time, and so
on).  
••Use the “stock” icon.
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 Pre-Mapping Data Collection Needs

Customer Data

• Who is the Customer

• What is the actual customer demand? (Quantity of orders received or amount required by the customer). As a product
family or by individual product model
• By the day, week, month, quarter, or year
• If there is more than one product, what is the mix?
• How often does the customer order?
• Does the customer provide a forecast?
• How often do you deliver to the customer?
• What is the customer delivery window?

Supplier Data

• Who is the supplier?

• How often do you order?
• Do you provide a forecast?
• How often does the supplier deliver?

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 Pre-Mapping Data Collection Needs

Value Stream Work Data

• How many shifts are worked within the value stream?

• What hours are these shifts?
• How many breaks and for how long?
• Do automated processes stop during breaks?
• Do manual processes stop during breaks?
• Are there any pre- or post-shift meetings and for how long?
• Is there clean-up time scheduled during the shift and for how long?
• Is lunch paid or unpaid?
• How long is the lunch break?
• Do automated processes stop during lunch?
• Do manual processes stop during lunch

Value Stream Control Data

• Who, or what, controls production?

• Is this control point a single person or department?
• Is this control point a group effort from different departments?
• Are you using an automated system to control production?
• Is the automated system an MRP or ERP system?
• Is the automated system comprised of spreadsheet files/reports such as Microsoft Excel or Lotus 1-2-3?
• What hours is this control point operating?

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 Material & Information Flow
Use the “Scope” document to map the product or service flow

Map the whole value stream by conducting a “walk through” of the actual process and collect
information
– Start with the final step and walk backwards (customer perspective)
– Outline major process blocks
– Chunk of activities that occur before a handoff

Stay focused on the norm

– Use the “70% rule” to avoid getting bogged down with exceptions

Interview workers to obtain data

– Cycle time (CT)
– Lead time (LT)

Bring your stopwatch and do not rely on information that you do not personally see

Draw by hand and use a pencil

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 Data Collection

•Pack sizes at each process

• Working hours and breaks
•Inventory Points (location & size)
•How Operations are scheduled
•Overtime per week
•Process cycle times
• Scrap
•Rework
•Downtime
•Demand rates by process (Takt Time)
•Number of product variations at each step
•Shipping/Receiving schedules

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 Future State Questions
What should be the Takt time (available time / customer demand)? What does the customer really need?

How often will we check our performance to customer needs? How can we improve the flow, with
fewer interruptions?

How do we control work between interruptions? How will work be prioritised? Is there an opportunity to balance the work
load and/or different activities?

Where can continuous flow be put in place? Where should pull systems be
implemented? Where, when and how will scheduling be done?

How do we perform load leveling and what will be the product mix? What should the management time frame
be?

What process improvements are necessary, to achieve the future state? What will the future state metrics be?
– Quality
Errors
– Delivery
Lead time
– Customer service
How well do you provide services (internal and external)
– Cost
Reducing errors, rework, handoffs, waiting and lead time 22
 Design Future State –Blueprint
Define how the plant will operate in the future (blueprint)

Consider whether (remove waste / non value add activities)

– everything done currently at each stage is really necessary
– the impact if superfluous tasks was to be removed
– the process can be rearranged in a more efficient sequence
– a different flow layout or transport routing can be introduced

Validate Customer Demand

Draw the Future State Process Flow

Map the Future State Material & Information Flow Calculate

Total Product Cycle Time

Detail Off-Line Activities

Outline an Implementation Plan

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 Highlights - 3
Current State (As~Is)
– Step 1 - Define Customer’s Demand
– Step 2 - Map Basic Production Processes
– Step 3 - Define Data To Be Collected
– Step 4 - Collect & Map Data
– Step 5 - Map Information Flow
– Step 6 - Calculate Current State
– Step 7 - Compute Takt time
– Step 8 - Line Balancing

3
6
 Define Customer’s Demand
Demand = 3,200 pieces / week
– Type L = 1,000 piece week
– Type S = 2,200 piece week

Plant Operates 1 shift / day Packaging = 60 pieces / Tray Customer

Shipment = 1 / day (Truck) Supplier Shipment = 1 / week (Truck)

 Map Basic ProductionProcess

Ensure
– Mapping begins with customer’s demand

– Conduct a walk through and obtain high level process information

– Start from the shipping (Staging Process) and work up-stream to the receiving
dock
– The team involved should map the entire process stream from start to end

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 Define Data To Be Collected

Cycle Time (C/T)

Changeover Time (C/O) Uptime

Number of Operations Break Time

Work Time (minus breaks)

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Define Data (Contd.) - Work Time Calculation

Day = 1 shift
– 1 Shift / day = 8 hours = 28,800 seconds / shift ( 8 x 60 x 60 x 1 shift)

Breaks
– Morning Tea (15 mins) : Lunch (30mins) : Afternoon Tea (15 mins)
– Breaks = 60 mins = 3,600 seconds { (15 + 30
+ 15) x 60}

Working Time / Operating Time

– Shift Time – Break = 25,200 working seconds / shift (28,800 – 3,600)

4
0
Collect & Map Data (Customer & Supplier)

4
1
Map Information Flow

4
2
 Calculate Current State

1 week = 5 working days

Demand = 3,200 pieces / week or

640 pieces / day

Press Process
Type L + S = 2,250 pieces (1,000 + 1250

Duration = 3.5 days (2,250/640)

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3
 Result - Current State

A Representative Current State Map for a Family of

Retainers at a Bearings Manufacturing Company

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33
© 2007 Pearson Education
 Compute Takt Time
1 week = 5 working days

Demand = 3,200 pieces / week

– Type L = 1,000 piece week (200/day)
– Type S = 2,200 piece week (440/day)

Total Pieces / Day / Shift = 640 Operating Time / Working Time =

25,200

Takt Time = Customer Requirment / Shift

-------------------------------------------
Operating Time / Shift

Takt Time = 25,200 = 39 seconds

640 34
Total - Processing / Work Time

60 Seconds

35
 Line Balancing
35
35
30
Second
25 22

20
15
10
3
5
0
P re s s Pierce & Form Finish Grind
Process

Work or Process Time = 60 Sec Takt Time = 39 Sec

Work / Takt time = # of Operators Required = 60/39 = 1.54 36

 Line Balancing (Contd.)

You require 1.54 operators

Having 2 is costly and having 1 can lead to burnout
We could reduce Takt time from 39 sec to say 35 sec or less, by
combining some tasks and avoiding burnout

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 Line Balancing (Contd.)

0
35

30 13

25

20 32
35
15
22
10

5
3
0
Press Pierce & Form Finish 33
Grind 88
 Highlights - 4

 Future State (To~Be)

 Implementation Road Map
 Improvement Results

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 Future State (To~Be)
Objectives
– Eliminate / reduce unnecessary NVA steps
– Optimise VA steps

Build Consideration (from current state)

– Eliminate/merge steps
– Create parallel paths
– Implement pull, if continuous flow isn’t possible
– Reduce or eliminate batches
– Create standard work
– Create an organised, visual workplace
– Eliminate unnecessary approvals
– Identify NVA tasks from customer’s point of vie40w
– Level production mix
 Implementation Road Map
Clarify Business Drivers and Key Customer Metrics

Assess and Map Current Capabilities (Baseline)

Identify Opportunities for improvement including the elimination of waste

Create a Vision for the Future Based on Voice of the Customer and Voice of the
Business

Analyse Gaps and Create Action Plan to Succeed

– Use Robust Set of Tools (i.e. Lean Six Sigma)

Determine Priorities and Resources Necessary

– Structured Process Improvement

Track Impact through Metrics

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Celebrate Wins - With Customers : Employees : Suppliers
 Highlights - 5

Excellence Roadmap

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 Improvement Results
Metric Current State Future State % Improvement

Lead time

Cycle time

CT/LT ratio

# steps

Morale
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 Excellence Road Map
Strategic Planning Process
Approach Develop Plan Deployment / Execute Plan Results

/
1 3 4 5 6 7 8

2
Develop / Quarterly ,
Communicate Develop cross - Integrate Execute integrated
Develop key & integrate functional detailed implementation operations
Assess & plans plans strategy teams implementation plans
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P e op le Un de rs t an d ho w t h ey f it l oc at ion M an a g e me n t A rc hi t e ct ure E xpe nd i t ure G o al s
i nt o En t erp ri se “Bi g P i c tu re ” •
A u t oma t ed I nf o rma t io n S y st e ms •
Jo in t E nt erp ris e P roc es s M od e l •
“Do l la rs pe r Fl yi n g
•
W ork in g o n P ro gra m is A l i gn ed wi t h Ch an gi n g B u si ne ss n ee d s Ho ur” Cont ra ct
Me an i ng f ul an d F u n: “Ca n Do ” •
P ro ce ss es t o Ca pt u re E nt e rpri se
Cu lt u re K n o w l edg e Inc l ud in g L ess on s Le arne d
S ea ml e ss Col l ab ora t io n wi t hin E nt e rpris e W e b -b a s e d traini ng
3
• •

E nt e rpri s e

Process Based Management

1 2 3 4 5 6 7

Analyse
Define the Establish Determine Analyse & plan Implement
Set goals
process metrics performance improvements improvement
process 44
stability
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 Line - Balancing Proce
ss
Thrupu
t Rate
Lead
Time
WIP
Units
Cycle /hr Min

Process A B C D E Time
12 15 3
5 Min 5
Case 5 2 Min 3 Min Bottle 1 Min 4 Min
neck

15
Case 1 15 4 15 1
Min

Case 5B 3 Min 3 Min 3 Min 3 Min 3 Min 3 20 15 5

Balanced

2.5 2.5 4 15 15 3.75

Case 6 2 Min 3 Min 1 Min 4 Min
Min Min

Case 3
JIT 5 Min 5 Min 5 Min 5 12 15 3
Balanced

Little’s Law
WIP= Through-put Rate*Lead Time
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Calculating Process Lead Time , Cycle times and total Inventory

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Showing Multiple Inventory Piles

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Showing VAT, NVAT, Travel , PCT &
LT

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Travel within a Process

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Travel within & between Processes

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Capturing Formal Communication

As you walk the process looking for formal communication, most of this type of communication will be easily spotted
or explained, because formal communication is a documented or required part of the process.
• Production schedules
• Work orders
• Sales orders
• Routers
• Purchase orders
• Purchase requisitions
• Forecasts
• Bill of materials (BOMs)
• Parts lists
• Production logs
• Quality reports
• Shipping schedules n Order confirmations n Pick tickets
• Challans / Bills of lading
• Customer complaint forms
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Multiple Control points in
a Transactional VSM

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Current VSM Vs Future VSM

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Lean product & process development

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 Product Creation Process

Customer Functional System Process Subsystem Customer

Domain Domain Domain Domain Domain Domain

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1. Functional
Product Creation Process

This domain consists of functional requirements, such as design goals or what the
product or service must achieve to meet customer attributes from the viewpoint of the
designer.
2. System
This domain consists of design parameters, including the physical characteristics or
activities that are selected to meet functional goals.
3. Process
This domain consists of the process variables that make up the design parameters.
4. Subsystem –
This domain consists of component-level requirements, such as the desired performance
required from every critical component of the product.
5. Customer
This domain appears in the process twice (as shown in Figure 1). The first customer
domain consists of customer attributes: a characterization of needs, wants or delights
that define a successful product or service from a customer perspective. The last
customer domain consists of customer complaints. A product characteristic that fails to
meet customer expectation may trigger a customer complaint.
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 Product Creation Process
These domains that make up the product creation process fit into the four pillars of a
quality organization .
The four pillars and their roles are:
1 Development quality
Discover the customer needs to develop the product. This involves taking a proactive
approach.
2. Industrial quality
Validate product design for manufacturability and develop the manufacturing process.
3. Supplier quality
Work closely with critical component suppliers to ensure desired quality level of these
components.
4. Customer quality
Get early customer feedback and coordinate with different customer interfaces, such as call
centres , service centres and online product support. This is a more reactive role.
Product Creation Process Within the Four Pillars of a Quality Organization
• Certain activities need to be performed in each domain, and tracking these activities
from one domain to another is critical. The better the communication between these
domains, the better the design of the product.
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 Development Quality
• Collecting the voice of customer (VOC)

• Platform selection and architecture review

• Design failure mode and effects analysis (DFMEA)

• Past learning and post mortem

• Key component release

• Customer and field trials

• CTQ validation

• Product quality plan

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 Industrial Quality
• PFMEA and control plan

• Work instruction and SOP management

• CTQ Deployment

• Statistical process control

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 Industrial Quality (Contd )

• MSA ( Measurement Systems Analysis )

• Product safety and traceability

• Life and reliability testing

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 Supplier Quality

• Supplier selection

• Quality contracting

• Subsystem FMEA

• Supplier competency development

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 Customer Quality

• Define service scenario

• Customer support and customer complaint addresser

• Customer satisfaction index management

• Field quality improvement

• Early customer feedback management

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 Getting Quality Teams Involved

• Understand customer needs.

• Provide high-quality and reliability consistent

products and services.

• Keep up with the pace of change (technological as

well as political and social).

• Be able to predict what the customer will want one

year or 10 years from now.

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 Frugal Re-engineering – a Straight Forward process

Idea Generation using applicable tools Idea Validation & Implementation

Prioritise
Apply Manage
Compone Fast Track
tools to Prioritise Stakehold
nts & Implement
generate ideas er
Subsyste ation
ideas approvals
ms
Conduct a Spend Use Frugal Address High Ensure Governance Identify & eliminate
Analysis & Focus on Reengineering toolkit Potential Areas first Structure promotes impediments
high spend areas 80:20 to identify ideas in all ( A mix of technical & cross functional Implement mix of quick
Rule key areas techno commercial ) agreements and fast fix and long term ideas
track approvals

Treat Modules as Leverage all tools to Do not eliminate Appoint Idea

single Systems broaden idea hopper 106
ANY ideas
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Champions
 Frugal Re-engineering Process
• Do Customers value all • Optimize current
the current features Design
• Re-specify features ? • Refine size , form
& function

Specification Design

Process Materials

• Have Manufacturing advances • Substitute

occurred ? Materials ?
• Recognize Today’s processes • Review frugal
Material
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opportunities 107
Engineering Hours per Vehicle Design

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Number of Models & Avg age per vehicle Design

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Avg. Production Volume per vehicle

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Motor Vehicles Patents

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Spend on R&D

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 Lean Never Ends
It is the beginning of the
end of In-efficiency

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