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Value Stream Mapping

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We have discussed the principles of lean

manufacturing Need a tool for analyzing the value stream

One of the first steps on the journey to lean

is Value Stream Mapping.

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Value Stream Mapping (cont.)

Planning an efficient road trip involves the

use of a map. First one looks at the current location.

Next the destination is located

Finally, directions are made for getting there.

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A similar process should be followed for

companies planning an efficient road tripfor lean manufacturing.

The tool used for evaluating the current

state (current location) and planning thefuture state (destination) is Value Stream

Mapping.

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Value Stream Mapping (VSM) provides a

visual representation of every process in thematerial and information flow of a product

(Rother & Shook, 1999).

A current state map is first created Establishes a companys location at the

beginning of the lean journey.

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A future state map is then created which

illustrates where the company wishes to beafter the first lean initiatives have been taken.

Next an action plan is created and thenexecuted.

The entire mapping process is then repeatedagain and again in a never ending continuousimprovement cycle.

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VSM can be done at various levels. Start

with the single plant level.

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Levels of a Value Stream

Across Companies

Process Level

Multiple Plants

Single Plant(door to door)

(Rother & Shook, 1999)

Begin Here

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Creating the Current State Map

Developing a future begins with an analysisof the current production situation.(Rother and Shook,18)

Process:

Spend 1-2 weeks on shop floor to understand process

Pencil and Paper in hand (computers add necessarytime and effort)

Bring a stopwatch; do not rely on standard data.

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The icons used for VSM and their definition

are given next.

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Process and Data Boxes Each process is placed in a

process box.

Each process box has adata box that shouldinclude:

cycle times

machine uptime

# operators

changeover times

C/t=0.5 hour

C/O= 0.1 hr

Uptime=90%

Machining

1

1 operator

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Inventory

Inventory adds

unnecessary costs Increases lead time

Takes up space in the

plant By establishing Pull,

inventory is greatly

reduced or removed

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Information Flow

Ususally when mapping, flow of material

(parts, jobs, ) is what most people consider

Another flow is important: Information flow

Need to map both material and information

flow in a VSM.

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A completed current state map for Acme

Stamping is shown on the next slide. Theicons and measurements will be explained

later.

(Rother and Shook)

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Current State Map Example

(Rother and Shook, 21)

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Mapping Tips

Collect current-state information while following the material

and information flow yourself.

Begin at shipping and work upstream

Start with process that is most closely linked to customer

Do not rely on standard times or information that you do not

personally obtain

Bring a stopwatch

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Mapping Tips (cont.)

Map the entire value stream yourself

If different people map pieces of value stream, no

one will understand entire stream.

Always draw in pencil

Create sketch right on the shop floor.

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The following slides explains some of the

measurements associated with lean.

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Future State Mapping

After constructing the current state map, you will next

construct the future state map.

Purpose of Future State Map

Highlight sources of waste

Eliminate by implementing future-state value stream

Goal: Build a chain linking individual processes to

customer by continuous flow or pull.

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Future State Mapping (cont.)

Eliminate as much inventory as possible

Rearrange processes into U-shaped cells

Set up a pull system from the customer

Define TAKT time

Set-up Supermarkets with Kanbansinstead of inventories.

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Guidelines for a Lean Value Stream

1. Produce to your TAKT time.

Synchronize pace of production with pace of

sales

Requires effort:

Provide fast response (within TAKT) to

problems

Eliminate causes of unplanned downtime

Eliminate change-over time in downstream

processes

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TAKTTime

TAKT

TIME =

Cycle Time = TAKT time

(ideal for future state)

(Liker, 145)

Your Available Work Time per ShiftCustomer Demand Rate per Shift

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TAKTTime Example

TAKT

TIME=

27,000 sec

500 pieces

Customer is buying product at a rate of one every 54

secondsThis is the target rate for production

= 54 seconds

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Guidelines for a Lean Value Stream (cont.)

2. Develop continuous flow whereverpossible.

Produce one piece at a time

Pass product immediately to next step

Most efficient way to produce

In future state map, combine processboxes wherever you create continuousflow.

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Guidelines for a Lean Value Stream (cont.)3. Use supermarkets to control production where continuous

flow does not extend upstream.

Spots where continuous flow is not possible and batching

is necessary: Processes that operate at very fast or slow cycle times and need

to change over to serve multiple families (e.g. stamping orinjection molding)

Suppliers are far away and one piece shipping is not realistic

Processes with too much lead time or that are too unreliable

NOTE: Resist temptation to schedule via an independentscheduling function.

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4. Try to send the customer schedule to only

one production process.

Schedule the Pacemaker Process Pacemaker Process = Process that sets the production

rate for all upstream processes

In future-state map the pacemaker is the

production process that is controlled by theoutside customers orders

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Guidelines for a Lean Value Stream (cont.)5. Distribute the production of different products evenly over

time at the pacemaker process. (Level the production mix)

Usually products are scheduled in long runs to reduce changeover

times Causes longer lead times

Causes higher inventories

The more level the production mix, the quicker you can

respond to customer requirements

With short lead time

With little finished goods inventory

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Guidelines for a Lean Value Stream (cont.)6. Create an initial pull by releasing and

withdrawing small, consistent increments ofwork at the pacemaker process. (Level the

production volume) Creates predictable production flow

Enables quick corrective action

Regularly release a small, consistent amount of

production instruction (5-60 minutes worth) Simultaneously, take away equal amounts of

finished goods

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7. Develop the ability to make every part every

day in fabrication processes upstream of the

pacemaker process. Must shorten changeover times

Must run smaller batches

Allows quicker response to downstream

requirements

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Using the previous guidelines, a future state

map can be constructed. The next slide shows a completed future

state map of the example.

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F

uture State Example

Production

Lead = 4.5 days

Time

Value-

Added = 169 sec.

Time

.

EPE = 1 Shift

C/O < 10 min.

Production Control

Stamping

Staging

Shipping

Welding/

Assembly

Takt = 60 sec.

C/O = 0

Uptime = 100%

2 Shifts

Total work

content = 168 sec

Michigan

Steel Co.

18,400 pcs/mo

-12,000 L

-6,400 R

Tray= 20 pieces

2Shifts

State Street

Assembly

90/60/30 day

Forecasts6 week

Forecast

Daily

Order

Daily

Order

Daily

(Milk Run)

1X

Daily

20

Daily Order

OXOX

2020

20

L

R

20

totebatch

Coils

c

oil

coil

1.5 days 1 sec. 1 day 168 sec. 2 days

Changeover

Weldchangeover

Weld

uptime


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After Value Stream Mapping

Once the future state map has beencompleted, the next step is to create anaction plan for reaching the future state.

The planning and execution of the actionplan may involve the use ofKaizen teams.

After the action plan has been executed,another current state map is drawn and theentire process repeated.

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Perfection

Continuous Improvement- the process ofincrementally and continually decreasing thewaste in the production and adding value.

Kaizen is the Japanese term for ContinuousImprovement and the term commonly used

in Lean Manufacturing. (Miller , 75)

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References Allen, J. (2000, June) Make lean manufacturing work for you.

Manufacturing Engineering pp. 54-56.

Associated Press (1991). Important dates in Compaq ComputerCorp.s history. The Associated Press. 10/25/1991

Bodek, N. (1988). Foreword. In T. Ohno, Toyota ProductionSystem: Beyondlarge-scale production (pp. ix-xii). (ProductivityInc, Trans.). Portland, OR: Productivity Press (Original workpublished 1978).

Becker, J.E. (2001, August) Implementing 5S: To promote safety &housekeeping. Professional Safety29

CNBC (1998). CEO of Dell Computer delivers statement on marketpower and structural change in the software industry before theSenate Judicial committee. CNBC/Dow Jones Business Video.3/03/1998

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References Connstep, Inc. (2002).Glossaryof Lean Manufacturing Terms.

Retrieved October 30, 2002, from Connstep Web site:www.connstep.org/web/content.nsf/webpages/Programs_LM

de Wardt, J.P. (1995). Brief: lean drilling introducing theapplication of automotive lean manufacturing techniques to well

construction. Journalof Petroleum Technology,47(2), 113-114.

Georgia Tech Economic Development Institute (1999). DefinitionsandTerms. Retrieved October 1, 2002, fromGeorgia TechEconomic Development Institute Web site:www.industry.gatech.edu/lean/leanmanuf_defs.html

Lean ManufacturingGlossary.(n.d.). Retrieved July 29, 2002 from:www.lean1.org/services/glossary.cfm

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References

Leflar, J.A. (2001). Practical TPM: Successful equipmentmanagement at Agilent Technologies. Portland, OR: ProductivityPress

Liker, J. (1998). Introduction: Bringing lean back to the U.S.A. In J.Liker (Ed.), Becoming Lean (pp.3-48). Portland, OR: ProductivityPress

Miller, B., Schenk, V. (2001). Glossary. All I needto knowaboutmanufacturing I learnedin Joes garage. (pp. 73-81) Bayrock Press

Ohno, T. (1988). Toyota Production System: Beyondlarge-scaleproduction (Productivity Inc, Trans.). Portland, OR: ProductivityPress (Original work published 1978).

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References

Productivity Press Development Team. (1996). Quick changeoverforoperators: The SMEDsystem. Portland, OR: Productivity Press

Reary, Bob (2002). A supervisors guide to integrated demand

and supply. Journalof Business Forecasting Methods & System. 3(7/01/2002)

Robinson, C. (2001). Total Productive Maintenance. In J. Allen, C.Robinson, & D. Stewart (Eds.), Lean Manufacturing:A plant floorguide.(pp. 325-355). Dearborn, MI: Society of ManufacturingEngineers.

Rother, M., Shook, J. (1999). Learning to See. Brookline, MA: TheLean Enterprise Institute.

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References

Search Manufacturing (2000). Lean ManufacturingGlossary.

Retrieved October 1, 2002, from Search Manufacturing Web site

www.searchmanufacturing.com/Manufacturing/ Lean/glossary.ht

m

Shook, J. (1998). Bringing the Toyota Production System to the

United States: A personal perspective. In J.K. Liker (Ed.),

Becoming Lean (pp.41-69). Portland, OR: Productivity Press.

Standard, C., & Davis, D. (1999). Running todays factory.

Cincinnati, OH: Hanser Gardner Publication.

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References

Thomerson,G. (2001). Visual Factory. In J. Allen, C. Robinson & D.

Stewart (Eds.) Lean manufacturing: a plant floor guide. Dearborn,

MI: Society of Manufacturing Engineers.

Womack, J. (1998). Foreword. In J. Liker (Ed.), Becoming Lean

(pp. xiii xvi). Portland, OR: Productivity Press.

Womack, J., & Jones, D. (1996). Lean thinking. New York: Simon &

Schuster.

Documents

5204 Lean VSM