Using Value Stream Mapping as a Strategic

8/7/2019 Using Value Stream Mapping as a Strategic

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Using Value Stream Mapping as a Strategic Planning and

Implementation Tool

Frank C. Garcia, P.E.

Director, Business Solutions & Engineering Services

Advent Design CorporationBristol, PA, USA

1. Introduction

Many companies begin manufacturing improvement efforts without developing an overall game plan. This results in

an improvement implementation that is not integrated and that produces suboptimal results. The use of value stream

mapping can provide the "30,000 ft. view" of the manufacturing operation. This view identifies the locations of waste in the current process and the opportunities for improvement. Figure 1 shows a representative value stream

map. The application of lean concepts in the future state sets the stage for the development of a coordinated

implementation plan. The most effective value stream maps are developed by a cross-functional team that has

people from many of the activites in the value stream being evaluated. The development of a value stream map canalso be part of the training used for developing understanding of the application of lean concepts.

The presentation will provide a number of real life value stream maps developed in many different industriesincluding electronics, food, metal fabrication, plastics, and chemicals. Various methods used to develop the maps

including operator teams, engineer teams, and management teams are compared and evaluated. Different techniques

used to draft the maps, ranging from simple hand written documents to complex Powerpoint presentations, are

shown. The effectiveness of each technique will be discussed.

Figure 1

Soak & Dry Packaging Labeling Case PackingCartoning Shipping

I I I I I I

C/T = 25 - 65 min.

C/O = 10 min.

Rel. = 100%

C/T = 1 sec.

C/O = 5 min.

Rel. = 85%

C/T = 3 sec.

C/O = 2 min.

Rel. = 80%

C/T = 1 sec.

C/O = N/A

Rel. = 100%

C/T = 2 sec.

C/O = N/A

Rel. = 100%

up to

250

stones

in WIP

0 01 Operator 1/2 Operator 1 Operator 1 Operator 1/2 Operator 125 Cans of Oil

20,640 Round Stones

49,000 Shaped Stones

4290

Stones

90,504

Stones

Various

Customers

Andrea Aromatics

(Scented Oils)

New JerseyPorcelain

(Round Stones)

Alanx

(Shaped Stones)

30 Cans of Oil

Every 2 Weeks

59,000 Stones

Every 2 Weeks

50,000+ Stones

Every 2 Months

(via stringer)

Average of 6,000

Stones per Day

in Various Size

Orders (8 to 20 case

& 200 to 400 case

range mainly)

Production Control Randomly PlacedOrders (Various Sizes)

Orders Every 2 Weeks

Order as Needed

Bi-

Weekly

Productio

n

Schedule

Daily Shipping

Orders

11.6 Days

65 min.

0.7 Days

7 seconds

1 5. 1 d ay s 2 7. 4 Da ys L ea d T im e

65 minutes, 7 seconds

Value-Added Time

Value Stream Map (Current State)

Daily

Shipments

Existing Work Cell

Ameripack

Flow Packager

APAI

Automatic

Stapler

Manual ManualMultiple

Batch Tanks



2. Developing Value Stream Maps

Value Stream Mapping is based on the fundamental principle of Lean Manufacturing. This principle is as follows:

any activity or action which does not add value to the product is a form of waste and must be eliminated or

minimized. Value is added any time the product is physically changed towards what the customer is planning to purchase. Value is also added when a service is provided for which the customer is willing to pay (i.e. design,

engineering, etc.). If we are not adding value, we are adding cost or waste.

In order to understand where to start the implementation of lean concepts, one of the most useful tools is the value

stream map. The value stream is the set of all specific actions, both value added and non-value added, that are

needed to take a product through the information and production flows of a manufacturing operation. The value

stream map follows the production path from beginning to end and shows a visual representation of every process inthe material and information flows The maps show the linkage between information flow and material flow for the

product family.

The process of developing the value stream map forces you to understand your product families and the interaction

of the production processes. The value stream map is the road map that reveals the obstructions to continuous flow

and the opportunities for reducing waste through the use of other lean techniques. Figure 2 shows a concept valuestream map. (1)

The value stream map development process consists of the following two steps:

• Development of the Current State

• Development of the Future State

A brief description of the purpose and development of the two types of Maps follows.

Figure 2

C u s t o m e r sS u p p l i e r s

F i l e : V S M - A 1

P r o d u c t i o n

C o n t r o l

IP r o c e s s

R a w

M a t e r i a lsF i n i s h e d

G o o d s

E q u i p m e n t

C y c l e

T i m e s

C h a n g e

O v e r

R e l i a b i l i t y

E r r o r R a t e

L e a d

T i m e

V a l u e S tr ea m M a p C o n c e p t

I

O r d e r sO r d e r s

S c h e d u l e s



2.1 Current State Value Stream Map

The Current State Value Stream Map shows how the shop floor currently operates and serves as the foundation for the future state changes. The map starts with the shipping area and works back through the process to the suppliers.

You need to start with one product family otherwise the map will be too complicated.

Customer demand and shipping data is a critical part of the Map since the ultimate goal is to have flow directly tied

to customer demand in the Future State. In addition to flow, the Current State Value Stream Map shows key

production processes and the important data for each process box. Some of the more important data that is recorded

is as follows:

• Cycle time

• Changeover time

• Number of people

• Available working time

• Quality data such as reject percentage or scrap rate

• Equipment reliability data such as percentage of uptime

Raw material and finished goods inventory are shown as well as work in process between the various processes inthe value stream.

The production control information flow is shown to determine how the production processes are being scheduled

and controlled. At the bottom of the Map, the total process time and lead time are calculated for a typical product

family unit or order. Figure 3 shows a completed Current State Map.

Figure 3

Shear Notch Corner Punch Stake & LabelBend Shipping

I

C/T = 4 min.

C/O = N/A

Rel. = 99%

C/T = 2 min.

C/O = 4 min

Rel. = 95%

C/T = 2 min.

C/O = up to

30 min.

Rel. = 99%

C/T = 2 min.

C/O = N/A

Rel. = 99%

C/T = 5 min.

C/O = 30 to

60 sec.

Rel. = 90%

1 Operator 1/2 Operator 1 Operator 2 Operators1/2 Operator

Various Distributors

(~ 24 for Smith Corp. &

~ 6 for Jones Systems

Sheet Galvanized

Steel (4’ by 8’ or cut)

Up to an average

of 130,000 lbs

daily in peak

season

Production Control

(normally working

24 to 48 hours ahead of

promised shipment)

Randomly Placed

Orders (normally

single unit orders)

Blanket Annual Purchase

Order with Daily Releases

2 to 5 days

4 min.

2 to 5 Working Days,

Lead Time

32 minutes,

Value-Added Time

Value Stream Map (Current State)

Daily

Shipments

1/2 Operator

Add Z Brace

C/T = 7 min.

C/O = N/A

Rel. = 98% to

99%

1/2 Operator

2 min. 2 min. 5 min. 2 min. 7 min.

Daily

Production

Reports

Daily

Shipping

Schedule

Rack

1 Material

Handler

Daily

Production

Reports

Average volume of 1000

systems per month in peak

season.

Customers are mainly

distributors. There are a

few dealers.

C/T = N/A

C/O = N/A

Rel. = 100%

Radius & Band

C/T = 8 min.

(average)

C/O = 2 to 30

min.

Rel. = 80%

to 100%

2 Operators

8 min.

Sheet Galvanized


Sheet Galvanized


Sheet Galvanized


2 to 5 days

depending

on pre-cut

size

1 Accurshear

Automated

Shear (P-3)

1 Manual

Notcher (S-23)

& 1 Automated

Notcher (R-3)

3 Semi-Auto

Punches

(S-1, S-2, & S-3)

1 Manual

Brake (R-7)

& 1 Automated

Brake (R-13)

1 Automated

Machine (R-8)

1 Automated

Machine (ACR)

1 Manual Table,

1 Jig-less

Machine (R12),

& 1 Jig Machine

(R1)

Specialty Punch

C/T = 2 min.

C/O = N/A

Rel. = 99%

0 Operators

2 min.

4 Semi-Auto

Punches

In Straight

Panel Dept.



2.2 Future State Value Stream Map

The Future State Value Stream Map shows how the shop floor will operate after lean improvements have been

implemented. The Current State Value Stream Map serves as the starting point for developing the Future State. Thegoal in developing the Future State Map is to make the flow continuous and to eliminate as much waste as possible.

Lead time is shortened as much as possible by implementing lean techniques. The flow in the Future State Map is

built around the takt time, or how frequently a unit must be completed to meet customer demand. Takt time issimply the available working time per shift divided by the rate of customer demand per shift.

The key questions that must be asked while developing the Future State Map are as follows:

• What is the takt time?

• Should you build to a finished goods supermarket or directly to shipping demand?

• Where can continuous flow processing be implemented, i.e. eliminate cycle time mismatches and WIP?

• Where will supermarket pull systems be required between processes?

• What is the pacemaker process, i.e. the process which will be used to schedule and regulate production flow?

• How will the production mix be leveled at the pacemaker process?

• What increment of work will be released?

• What process improvements need to be made to achieve continuous flow and to eliminate waste? (1)

The development of the Future State Value Stream Map is an iterative process that requires a very goodunderstanding of lean concepts. Figure 4 shows an example of a Future State Map.

Figure 4

40 min.0.75-1.25 h.

2-14 days

32 h.2-14 days

11 days

15 min.2-7 days21 h.40 min.

1 mo.

8.5 h.7 min.8 min.3 min.

0.5 mo

FIFO FIFO

FIFO FIFO

FIFOFIFO

FIFO

FIFOFIFO

1 card per model

Forecast

2-14 days

WEEKLYFORECAST

DAILY

CONSUMP.

Monthly

forecast

SALES

DAILY

ORDERS

2 wk. 2 wk. 2 wk. 2 wk. 2 wk.2 wk.

Test Eq.Sales

Regulator

CompuWire

PCB

Brooks

MFC

Winston(SheetMetal)

App.Energy(Manif.)

Parker-Hannif.(cell)

Daily asneeded

Avg. = 15/mo.Max = 25/mo.

Dem. = 1/dayOrders = 5/mo.

1 unit/ day

5 top

customers

Daily as

needed

WIRE

ROD

GLASS

TUBE

WIND

7elements

per batch

ANNEAL SEALWETLINE 11 CELLS

RHODIUM CELLS

PLATINUM CELLS

CELL

ASSY.

CELL

SENSIT.

CELLDRYDWN

11 days

Subassemblies1 model 11 model 21 model 31 model 4

ELEMENT

PREP.

MECH

SUBASSY.

MFC

Reg.

PCB

ELEC.ASSY +

CALIB.

LEAK

TEST

PRODUCTION

CONTROLS

MRP

UNIT

INST.

FINAL

ASSY,

INSP.

SHIP,

PACK ,

Subassemblies

1 model 11 model 21 model 3

1 model 4

Rack

Module

UNIT

TEST

CT = 3min.

C/O = 5min.

CT = 8min.

C/O = 1 h.

CT = 7min.

CT = 8.5 h. CT = 40min. CT = 21h. CT = 2-7 days

CT = 4 h. CT = 2 h. CT = 30min.

CT = 15min. CT = 2-14 days CT = 32h.CT = 0.75-1.25 h.

CT =40min.

Cell body

14 Elemts.

Orders

ACCLIM.

XXYYZZ CCOOMMPPAA N NYY FFUUTTUUR R EE SSTTAATTEE

8 hr./day

20 day/monthProcess time:

12-29d.

Lead time: 67-84d.



3. Use of Value Stream Maps for Implementation and Planning

When the Future State Value Stream Map is completed, an implementation plan must be developed to convert the

Current State into the Future State. The Future State Map can be broken into different loops for ease of implementation.The Current State Map can also be used to show the key process improvements that must be completed to achieve

continuous flow in the Future State. Figure 5 shows an example of how process improvements can be highlighted on

the Current State Map.

Figure 5

Highlighting the process improvements on the Current State Map makes it easier to explain to management and howthe changes are related to current operations. Once the improvements are identified, a time-sequenced list of

improvement projects by loop can be made. A brief goal and the expected improvement should be show for each project. The projects should be given a relative priority so that the most important projects can be scheduled first. The

plan should be established to complete the majority of the projects within three to six months. Organizing the lean

improvement projects in this manner can make it easier to include them in the capital planning process if new processequipment is required. Figure 6 shows an implementation plan developed for a company in the past year. The plan

shows the Value Stream Map loop, objectives for the loop improvements, the specific projects, priority, and expected

completion date.

StampingDegreasing

Drying

PackingShipping

I I I I

Run: 200-600pcs/min

C/T = .003 min/pc.

C/O = 4.5 hrs.

Available: 590 min/shift

Rel. = 90%

C/T =10 hr

C/O = None

Rel. = 80%

2 Hours

1 Operator Shipper

50 to 70

Racks

100 to 125

Coils

20 to 40 Bins 1 Day

to

12 Weeks

Various

Customers

Brass

(40%)

4 Weeks LT

Beryllium Copper

(30%)

6 Mos. LT

In Stock- 1 Week

Phosphor Bronze

(30%)

10 Week LT

6 Weeks Reroll

Every Week Every Week Every Week

Average of

1 mm pcs per day

in Various Sizes

Orders (2 to 13)

Omega Precision

Production ControlVista Software System

Randomly Placed

Orders (Various Sizes)

Projected requirements

Order as Needed

Weekly Production

Schedule Pressroom

Manager

Weekly Shipping

List

10 Days

1.5day(avg)

2 Days

2.25 Days

1 Day to 12 Weeks16.75 Days Lead Tim

+ coil lead time

per average order

3.75 Days Value

Added Time

Value Stream Map (Current State)Stamping Orders With No Plating or Heat Treatment

(Potential Future State Changes in Red)

Daily

Shipments

1 unit

Manual11 Stamping

Presses

6 Operators

10 to 24 coils

3 times/week

Average order = 208,000 pcs

252,000 strokes

Standard Time

for Setup

Adjustment

Setup

Time

Visual Status

of Presses

Sankyo

Coil Feeds

Reduce

Cycle Time

Layout is

a Problem

Auto

Bagging

Formal

Production

Control

Single Point

of Control

2 Baskets - Strip

1 Basket - Pieces

C/T = 2 Hr Strips

Max 1000/Basket

Min 200/Basket

= 30 Min Pcs.

25,000 Pcs/Basket

C/O = None

Rel. = 95%

Combine?

•Lot Control Improvement

•Handling Reduction

Review Work

Schedule with

Suppliers

Pre-Control for

Roll Changes



4. Techniques and Tools used to Develop Value Stream Maps

Value Stream Maps have traditionally been hand-drawn and developed by a cross-functional team that has

representatives from various company functions that are familiar with the product family being mapped. Theadvantage of this approach is that the team members become trained in implementing lean techniques and take

ownership of the improvements required to achieve the Future State.

Another method is to have a small team working with an outside consultant who draws the Current State Value

Stream Map using data and input from the team. This team can consist of management personnel or a combination

of technical and production personnel. This approach works well when the company has limited lean experience and

wants to get a “big picture’ concept of what lean techniques can be implemented along with the potential benefits.The Map is then presented to the team for critique, and the Future State Map is developed interactively with the

team.

The use of Microsoft Powerpoint and Visio has been found to facilitate the Value Stream Map development process.Maps developed with either of these two software programs offer the following advantages:

• can be easily corrected and changed,

• can be readily used to present the Maps to other company personnel,

• can be sent via e-mail for review.

LOOP OBJECTIVES PROJECTS

SEQUENCE

(PRIORITY)

COMPLETION

DATE (Mon./Yr)

Supplier Loop * Develop pull system with suppliers 1. Review Weekly/Monthly Requirements With Suppliers 1 Sep-01

* Increase number of deliveries per week 2. Revise current blanket orders 1 Sep-01

* Reduce raw material inventory to match demand 3. Send daily consumption data to suppliers 2 Nov-01

4. Setup point of use raw material areas 1 Oct-01

Production Control Loop * Implement daily shipping schedule 1. Single point to schedule( shipping). See pacemaker loop. 1 Oct-01

* Work to schedule manufacturing based on

shipping requirements 2. Daily production schedule by Operations Manager 1 Oct-01

3. Implement kanban loops as shown on future state VSM 2 Nov-01

4. Use MRP for materials forecasting 1 Oct-01

Element * Reduce lead time 1. Eliminate WIP between winding & annealing 1 Sep-01

Loop * Develop continuous flow 2. Implement supermarket for element prep and kanbans 1 Oct-01

* Develop pull system with element prep

supermarket 3. Crosstrain element assembly operations 2 Dec-01

Module Assembly Loop * Reduce cycle time 1. Analyze process variance in environmental test 1 Oct-01

* Reduce variation in cycle time in testing 2. Analyze process variance in module drydown 1 Oct-01

* Reduce variation in cycle time in drydown 3. Implement supermarket and kanbans for cell installation 1 Oct-01

* Establish pull system with supermarket from

cell installation 4. Crosstrain module assembly operations 2 Dec-01

* Reduce use of carriers 5. Analyze need for carriers vs. subassembly units 1 Sep-01

Pacemaker Loop * Reduce cycle time 1. Improve assembly methods in final mechancial assembly 2 Dec-01

(Unit Assembly/Shipping Loop)

* Establish pull system with supermarket from

shipping

2. Review design for manufacturing assembly improvements for

tubing assembly 3 Feb-02

4. Set up raw material suppermarket for final assembly 1 Oct-01

5. Crosstrain unit assembly operations 2 Dec-01

NOTES:

1. Conduct kanban and point of use training for plant personnel in 2001.

2. Priotities as follows: #1(Complete in 2 months), #2(Complete in 4 months), #3(Complete in 6 months)

3. Consider use of teams for implementation after training.

FUTURE STATE IMPLEMENTATION PLAN & SCHEDULE

7. Set up leak tested subassembly units in supermarket for final

assembly

6. Analyze material handling reductions and layout

improvements for element prep operations

3. Consolidate inspection with final mechanical assembly or

shipping/packing

Jan-02

Oct-01

Nov-01

3

1

2



5. Summary

The Value Stream Map is a valuable planning tool and can be used for a developing and implementing lean

improvement projects. The process of creating a Value Stream Map helps to train the team on lean techniques and toreveal opportunities to reduce waste. A completed Value Stream Map can be used as a visual communications tool to

explain how lean techniques can reduce waste in the value stream. Value Stream Maps become the first step towards

achieving the following:• shortened lead times

• fast identification of waste in the value stream

• identification of process improvement projects to eliminate the waste and achieve continuous flow.

Biographical Sketch

Frank C. Garcia, PE

Advent Design Corporation, Bristol, PA

Director, Business Solutions & Engineering Services

Mr. Garcia, a registered professional engineer, served seven years in the U.S. Navy submarine force after graduationfrom the U.S. Naval Academy. After completing his military service, he obtained his Master of Engineering in Industrial

Engineering from the Rochester Institute of Technology. In addition, he has 13 years of varied industrial experience in

engineering, quality assurance, and operations management. He has worked for Mobil Chemical Company, BurroughsCorporation, Spectra Graphics, and the Department of Defense. His experience includes planning and implementing

plant expansions in manufacturing, warehousing and materials handling systems. He has been responsible for QualityAssurance and Customer Service for multi-plant operations; engineered, justified and installed major manufacturing

equipment systems; and has successfully managed manufacturing operations with staffing into the hundreds.

As a manufacturing engineering consultant for the past 12 years, Mr. Garcia has worked and managed projects involvingmaterial handling improvements, plant layouts and relocation, packaging line design and installation, and quality

improvement. He has been involved with many lean manufacturing implementations involving setup reduction, cellular

manufacturing, and value stream mapping. He has assisted in the development of manufacturing improvement strategies

for national and international companies. His projects have been in the chemical, food, pharmaceutical, electronics,

defense, and consumer products industries.

Mr. Garcia is a senior member of the Institute of Industrial Engineers (IIE) and American Society for Quality (ASQ). He

is also a certified Systems Integrator (IIE), Quality Engineer (ASQ), and Quality Manager (ASQ).

References1. Shook, J., Rother, M., 1999, Learning to See: Value Stream Mapping to Create Value and Eliminate Muda, The

Lean Enterprise Institute, Brookline, MA.2. Suzaki, K., 1987, The New Manufacturing Challenge: Techniques for Continuous Improvement , The Free Press,

New York.

3. ____, 1998, Principles of Lean Manufacturing: Instructor Guide, The Lean Network, NIST ManufacturingExtension Partnership, Baltimore, MD.

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Using Value Stream Mapping as a Strategic