Global Production Engineering

Manufacturing and Factory Planning (MFP) – 2011/12 Winter Semester

Dr. Ing. Ingo Lümkemann

Term paper

Value stream methods

-Tools and Potential analysis

Name: Zalawadia Mihir

Number: 336271

Mail: mihir2781@gmail.com

Berlin, Date 22.03.2012

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Table of Contents Abstract …………………………………………………………………………………………………………………………………………I

Introduction ........................................................................................................................................ 1

Value stream Method ................................................................................................................... 2

Improved Value Stream Mapping Procedure (IVSM) ............................................................. 3

Tools and Potential Analysis: ......................................................................................................... 5

1Process activity mapping .......................................................................................................... 5

2.Supply chain Responsiveness Matrix .................................................................................... 5

3.Product variety Funnel. ............................................................................................................ 6

4.Quality filter mapping ................................................................................................................ 7

5.Demand amplification Mapping............................................................................................... 7

6 Decision point analysis. ............................................................................................................ 8

7 . Physical Structure. .................................................................................................................. 9

Conclusion ....................................................................................................................................... 10

Refrence .......................................................................................................................................... 11

II

Abstract

A major activity in the journey towards lean is the effective management of the flow of

products and services through the series of the activities involved in providing value to the

customer, known as the value stream.

The value stream mapping is an powerfull tool to evaluate the value stream for identifying

non value adding process . this paper describes new value stream mapping typology. The

seven map typology are based on different waste present in value streams. The use of

tools either alone or in combination depends on the type of waste targeted.The tools are

derived from functional ghettos like operation management,logistics and engineering.

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Introduction Value Stream

It can be defined as all steps needed for an product or service reliazation from supplier to

customer or the design flow from concept to launch.Realization of a product may conclude

of value adding and non value adding activites and consist of two types of flow ie

Information flow from customer or to supplier or in the plant and the other Raw material

flow which can physical product flowing around through supply chain.

The difference between traditional Supply chain or value chain and value stream is that the

former takes in consideration all of the complete activites and process from start to the

customer end of all companies involved while the latter refers only to the specific part of

the firms that actually create value to the service or product and gices far more focoused

views of the value adding process

The value stream consist

of the following parts

some are value added

and other non value

adding wihch are to be

eliminated or reduceded

In The book “Lean thinking“

By womack and jones Five

principles of Lean are defined

as follow

These Principles help us to

identify waste and provide

ways to help eliminate or

1.Specify value

2.Indetify the value Stream

3.Make value flow

4.Let customer

pull

5.Pursue Perfection

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reduce it.First we specify the value from the customer as customer always defines the

value. Then we map the flow of the value and once we mapped the flow we can develop

and implement a future state where value can flow without stopping and accumulating, to

the customer.Customer may then pull (ie. Signalling their needs), and we would flow only

when this happens ie Just in time when customer triggers an order at pacemaker.To

Complete the endless cycle, we repeatedly create future state maps and continuously

improve as we pursue perfection.

Why Mapping the value stream?

It forms the blueprint for Lean Implementation plan

It forms the linkage between demand forecast and product planning to Production

scheduling and to Flow shop control

Its an common language for talking about manufacturing process

Shows the linkage between inforamtion flow and material flow

It shows the big picture ,more than just the single process level.

Value stream Method

Product Family

Current state

Future State

-Define boundries

-Indentify the value stream for every major

product family , order to delivery

-Customer requirements(demand)

-Map the current state

-Indentify all the actions that dont create value

-challenge every step

-Add time line,Information flow

-Inbound materials flow

-Develop and map concepts for future state as

per vision of management team

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Value stream mapping is an language to communicate,its a business planning tool and

tool to manage change process.Drafting Fututre state map is the most important because

it is the target we want to achive . Current state without a future state is not much of use

The first step is drawing the current state ,which is done by gathering information on the

shop floor which will provide the information needed to develop a future state.In the above

diagram the arrows between current state and future state goes both ways suggesting that

development of current and future state overlap. Fututre state ideas come up while

drawing current state and while drawing the future state will often need to point out

important current state information which were overlooked. And after implementing the

future state it becomes current state and need for omprovement is still targeted hereby

creating new future map setting an endledd procress to acheive perfection.

The benefits of this activity are to establish a clear picture of how the organisation

responds to customer requirements. The outputs are a shared vision of how the system

should work that will engage all members of the organisation. It also provides a clear

commitment and ownership of what must be done and who will do it.

This will include the introduction to Lean principles such as Flow and Pull, Single piece

flow, Right-first-time the Seven Wastes, as well as tools such as Cellular build, Kanban,

and definition of the Kaizen activity needed to realize the future state

Improved Value Stream Mapping Procedure (IVSM)

1. select a product family;

2. identify machine sharing;

3. identify the main value stream;

4. map the critical path;

5. identify and analyse wastes;

6. map the future state for the critical/sub-critical path;

7. identify the new critical path and iterate the process

Improved value stream mapping Procedure for complex value streams

Implementation

-Develop actions plan

-Tracking action plan

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5

Tools and Potential Analysis:

Future state Questions

Basic (1) What is the takt time?

(2) Will finished goods be built to replenish a supermarket, or will they

be built and directly shipped to clients?

(3) Where can continuous flow processing be utilized?

(4) Is there a need for a supermarket pull system within the value stream

(kanban–conwip)?

(5) What single point in the production chain will be used to schedule

production?

Heijunka (6) How will the production be levelled at the pacemaker process?

(7) What increment of work will be consistently released from the

pacemaker process (pitch)?

kaizen (8) What process improvements will be needed?

Tools:

1)Process activity mapping

Its an industrial engineering tool. Process activity mapping is the concept of analyzing flow

in the workplace where there is waste,inconsistencies or irrationalities.This is done by

indentifying where waste is occurring and examining the process in detail for the said

waste.The process is mapped in a systematic way with the help of symbol and time taken

for each sub activity then it s optimized by eliminating and modifying the process to

eradicate waste.

2.Supply chain Responsiveness Matrix

The main aim of this tool is to evaluate the total response time, which refers to the amount

of time a product is sent out . Different components can then be analysed for their specific

amount of time and determined whether they can be improved or reduced, by tweaking the

component of production .

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In this example the horizontal axis shows the cumulative lead time to be 42 working days.

The vertical axis shows that a further 99 working days of material are held in the system.

Thus a total response time in this system of 141 working days can be seen to be typical.

Once this is understood, each of the individual lead times and inventory amounts can be

targeted for improvement activity, as was shown with the process activity mapping

approach

3.Product variety Funnel.

This step looks at the type of factory or production operation being used in regard to the

types of materials that it houses and what functions are performed there. The approach

can be useful in helping to decide where to target inventory reduction and making changes

to the processing of products. It is also useful in gaining an overview of the company or

supply chain being

studied.

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4.Quality filter mapping

This tool focus on evaluting the quality which is vital to the success of company. By

evaluating different parts of the manufacturing chain, we can identify three possible types

of problems: a service defect , a product defect or internal scrap ( defects that are

detected right before or after a product has been finished).So determining the type of

defects that is often occuring can pinpoint where in the chain the damage is being done

and steps to retctify should be taken .

5.Demand amplification Mapping

This effect is linked primarily to delays and poor decision making concerning information

and material flow. The Burbidge effect is linked to the “law of industrial dynamics” which

states:

If demand is transmitted along a series of inventories using stock control ordering, then the

amplification of demand variation will increase with each transfer

In production plants that are not properly regulated in regards to timing, supplies and

misinformation, an excess of production, labor and capacity may be a costly result. Since

demand for a product may often change throughout the fiscal year, mapping these

changes and adjusting production accordingly is the key to reducing waste and increasing

profits

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6 Decision point analysis.

A simple idea that is vital to fighting over production and underproduction, the decision

point is when products stop being made according to demand and are made on

anticipated consumer desire for them. In other words, instead of making products to match

the numbers of orders that are coming in, they are being produced to meet demand

forecasts for them. Understanding this point is vital for designing "what if" scenarios should

the company either fail to meet or exceed its forecast.

Gaining an understanding of where this point lies is useful for two reasons:

In terms of the present, with this knowledge it is possible to assess the processes

that operate both downstream and upstream from this point. The purpose of this is

to ensure that they are aligned with the relevant pull or push philosophy.

From the long-term perspective, it is possible to design various “what if” scenarios

to view the operation of the

value stream if the decision

point is moved. This may

allow for a better design of the

value stream itself.

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7 . Physical Structure. This tool examines the entire structure of an industry, including each step of the process to

view, in entirety, the production chain. By building tiers of components, such as raw

materials, assemblers, support and the after-market, you can evaluate the chain as a

whole and perhaps find missing links or extraneous ones that are not enhancing your

overall production time, product and cost. This also helps determine the final monetary

value of the product by taking into consideration the cost at each step along the path to the

finished item

The distribution area in Figure includes three tiers as well as a section representing the

after-market (in this case for spare parts), as well as various other support organizations

providing consumables and service items. This complete industry map therefore captures

all the firms involved, with the area of each part of the diagram proportional to the number

of firms in each set.

The second diagram maps the industry in a similar way with the same sets of

organizations. However, instead of linking the area of the diagram to the number of firms

involved, it is directly linked to the value-adding process (or, more strictly to the cost-

adding process). As can be noted in this automotive case, the major cost adding occurs in

the raw material firms, the first-tier suppliers and the assembler, respectively. The

distribution area is not seen to be a major cost-adding area.

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Conclusion

The paper focoused on value stream mapping which is considered as blueprint for lean

implementation in an industry and which focuses mainly on the value creating activity and

eliminating or reducing non value adding . But Vsm can be quite complex and difficlut

while dealing with complex production characterized by multiple flows that merge. To solve

this problem n new frame work ,Improvred value stream mapping can be used which is

developed by integrating the standard VSM approach with a set of additional tools derived

from the manufacturing engineering area.

The paper also described about various decision making process for the mapping of value

stream or supply chain which help to find out the weakest link in the chain and improve it.

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Refrence

International Journal of Production Research-A new value stream mapping approach

for complex production systems M. Braglia , G. Carmignani & F. Zammori

International Journal of Operations & Production Management ISSN: 0144-3577

Lean Thinking – Womack & Jones

http://www.ehow.com/list_6799223_seven-value-stream-mapping-tools.html

http://www.awf.de/download/Tool-Analyse-Wertstrom-tuo.pdf