Value Stream Mapping

Value Stream Value Stream Value Stream Value Stream MappingMappingMappingMapping

2

Value Steam Mapping

The Value Stream - a definition

“All of the steps required to bring a product or service from raw state through to the customer”

Total Value Stream

CustomerSupplier Process A

Process B

Process C

Internal Plant

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Value Steam Mapping

What is Value Stream Mapping?

Value Stream Mapping is a powerful technique that allows us to create a “BIG PICTURE” visual representation of:

– All the steps in the process, working back from customer demand to raw material

– The flow of both material and information and the effect they have on each other

– The distinction between value-added and non-value-added activity (WASTE)

– The effect all of the above have on meeting the customer’s requirements

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Value Steam Mapping

Under-utilized People

Over-production

Waiting(manpower, material, machine)

Transportation

InventoryScrap/Rework Motion

Processing

The 8 Wastes

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Value Steam Mapping

#1 Scrap/Rework

Definition:– Any product that does not

meet specifications and therefore either needs to be reworked or scrapped

Goal:– 100% First Time Through

Quality

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Value Steam Mapping

#2 Over-production (Under)

Definition:– Producing more than is

necessary, often causing WIP (Work In Process); working on parts ahead of schedule while delinquent parts wait

Goal:– Produce to Target Cycle

Time then eventually produce all operations to Takt Time in the Future State

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Value Steam Mapping

# 3 Inventory

Before After

If you had only 30 seconds to find the unit…...which storage system would you choose?

Definition: material or parts that are stored for future use or shipment

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Value Steam Mapping

#4 Motion

Definition:– Excessive motion beyond what is needed to get the job done

Goal: Same as Definition

???

sitting walkingturning around

searching

climbing choosing bending lying downover

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Value Steam Mapping

#5 Processing (Over & Under)

Definition:– Extra and/or unnecessary

operations

– Standardization of operations not thorough enough

– Processing a part above specifications

Goal:– Process parts that

consistently meet the minimum customer requirements 100% of the time

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Value Steam Mapping

#6 Transportation

Definition:– Moving parts to unnecessary

distances from one operation to another

Goal:– Put operations in order;

minimize or eliminate the travel distance between them

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Value Steam Mapping

#7 Waiting

Definition:– a person or part(s) sitting

idle while waiting for material, a supervisor, the next operation, etc.

Goal:– Eliminate the unplanned

interruptions that occur due to inefficiencies

– Develop continuous flow wherever possible

– Convert waiting to value-added work

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Value Steam Mapping

#8 Under-utilized People

Definition:– Skills untapped, Ideas not

implemented and improvements not realized

Goal:– Tap into the energies and

unused improvement ideas from the workforce

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Value Steam Mapping

Exercise Worksheet

MANUFACTURING WASTES IDENTIFICATION SHEETDept: _______________

NO. WASTE IDENTIFIED Scra

p/Re

work

Ove

r (Un

der)

Prod

uctio

n

Inve

ntor

y

Mot

ion

Proc

essi

ng

Tran

spor

tatio

n

Wai

ting

Unde

r-util

ized

Pe

ople

5S -

Sort,

St

raig

hten

,

Swee

p,

Stan

dard

ize &

Self

Disc

iplin

e

John McLauchlin Revision Date: 4/25/2000

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Value Steam Mapping

Value Stream Analysis Process

1.0 Select Champion

and Initial Product Family

4.0Implementation Planning and

Execution

3.0Design Future

State

2.0Gather, Map, and Analyze Selected

Value Stream Data

Value Stream Mapping

1. Understand business goals and customer objectives

2. Select champion and value stream leaders based on proven criteria for success

3. Define product families based on common processes and equipment

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Value Steam Mapping

Observations

– A common factor in all observed successful lean implementations is one or more empowered Champions.

– Champions are usually high-level leaders who take on a pro-active role shaping and supporting the lean initiatives, and ensuring that system barriers are identified and addressed.

– To start your lean journey, you need a leader or set of leaders to:• Develop a strategic direction• Agree to and communicate the strategic direction• Make available the needed resources • Provide continued, visible support

– Without the support of a champion, you should not attempt to implement lean practices and principles -- it is a recipe for disaster

Lean Aerospace Initiative

Leadership and Champions

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Value Steam Mapping

Small Group Activity

• Identify who in your organization will fill these critical roles to support lean implementation

– Executive Champion– Implementation Leader– Operations Manager– Technical Support– Other Key Roles?

• Briefly describe the role each person will have in supporting lean

• What can you do to get these people to successfully support your efforts

• Executive Champion

• Implementation Leader

• Operational Mgr

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Value Steam Mapping

Define Product Families

• Analyze Product-Volume Chart to separate high runners from low runners

• Analyze Product-Process Matrix to identify similar processing steps and common equipment

• Analyze Routings to identify common sequences focusing on:

– Operations that can potentially be dedicated to the product family

– Operations that are neither monuments nor batch cycles

– Downstream processes most visible to the customer

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Value Steam Mapping

Analyze Product-Volume Chart to separate high runners from low runners

Product Volume Chart

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2206 2150 2170 2158 2108 2142 2124 2102 2172 2212 2222 2202 2204

Part Number

Annu

al V

olum

e

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Value Steam Mapping

Analyze Product-process Matrix to Identify Similar Processing Steps and Common Equipment

Vol. PNs Rough H.T. Turn Deburr Insp Black MPI Ship Mark Mill Saw Drill Coppr Grind Weld Plasma

400 2124

360 2102 X X X X X X X X X

450 2108 X X X X X X X X X X

450 2142 X X X X X X X X X X X

760 2150 X X X X X X X X X X X

620 2158 X X X X X X X X X X

750 2170 X X X X X X X X X X

322 2172 X X X X X X X X X X X

58 2204 X X X X X X X X X

300 2212 X X X X X X X X X

268 2222 X X X X X X X X X X

4000 2206 X X X X X X X X

4070 8338 8338 8338 8280 3712 4280 8338 3978 3138 1800 5200 0 4326 4000 58

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Value Steam Mapping

Analyze Routings to Identify Common Sequences

2124 1 1 2 12 3 2 3 3 4 5 8 9 72102 1 1 2 3 3 3 4 5 8 9 72108 1 1 1 2 3 3 3 4 5 6 8 9 72142 1 1 2 7 3 3 3 4 5 6 8 72150 1 1 1 2 7 3 3 3 4 5 6 8 72158 1 2 3 3 3 4 5 6 8 9 72172 1 2 3 3 3 4 5 6 8 9 72170 1 1 1 2 3 3 3 4 5 6 8 72204 1 1 1 2 3 3 3 4 5 6 14 10 5 16 3 152212 1 1 2 3 3 3 4 5 6 9 21 5 16 15 72222 1 2 3 3 3 4 5 6 9 17 10 3 72206 2 3 3 4 5 10 11 15 11 3 4 19 15 7 20 7

50% of Total Volume

Rough 1

H.T. 2Turn 3Mill 4Drill 4Deburr 5Mark 6

Insp 7Black 8MPI 9Grind 10Weld 11Coppr 12Plasma 14

ASSM 15FPI 16Coat 17Lap 18Polish 19Paint 20Nickel 21

Non-monumentBatch or Out Sourced

Prod

uct F

amily

“A”

“B”

“C”

Types of Machines

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Value Steam Mapping


1. Gather customer information2. Walk the process - sketch

process boxes.3. Fill in process data boxes and

inventory levels (by product).4. Document how goods are

delivered to the customer.

5. Gather information on suppliers.

6. Add information flows.7. Sketch how material moves

between processes.8. Draw production lead

time/value-added timeline.

1.0 Select Champion


4.0Implementation Planning and

Execution

3.0Design Future

State

Value Stream Mapping2.0

Gather, Map, and Analyze Selected

Value Stream Data

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Value Steam Mapping

Material Flow Icons

AssemblyXYZ

Corporation

Data Box

I300 pieces

1 day

Inventory Supermarket

Shipment Push Finished Goodsto Customer

Physical

FIFO

First-In-First-Out

ProcessBox

Supplier/Customer

Mon + Wed

Pull

C/O=30 min.C/T=45 sec.

3 Shifts.2% Scrap

Buffer orSafety Stock

Operator

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Value Steam Mapping

ManualInformation Flow

ElectronicInformation Flow

WeeklySchedule

Schedule

OXOX

LoadLeveling Box

Sequenced-PullBall

WithdrawalKanban

ProductionKanban

SignalKanban

KanbanPost

Information Flow Icons

Uptime

Changeover

KaizenLightning Burst

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Value Steam Mapping

Mapping Tips• Use a pencil and draw on 11” x 17” paper or larger

• Draw top of process boxes just below the middle of the page

• Leave enough room between process boxes to show inventory

• Decide whether to count all parts or just a sample part

• Draw only one to three main suppliers / supplied items

• Production lead time is calculated by dividing inventory quantity by daily customer requirement.

• Put a Title and date on map and include Customer Requirements

• Make every effort to collect good data

• Use alternate methods for collecting data when time is a constraint

• Compare against recent historical data as a sanity check

Current State Value Stream Map

Customer

Customer requirement500 blades per week

211 1 1 21 1 22

Supplier


Customer


211 1 1 21 1 22 I

108

I

156

I

208

I

600

I

174

I

72

I

184

Daily Daily

Supplier


Customer


211 1 1 21 1 22 I

108

I

156

I

208

I

600

I

174

I

72

I

184

Daily Daily

Supplier

2 year Forecast

Weekly order

90 day order

90 Day production plan

Weekly Schedule

Daily Meeting

Weekly order

2 year Forecast

90 day order MRP Function

DailyDaily


Customer


211 1 1 21 1 22 I

108

I

156

I

208

I

600

I

174

I

72

I

184

Daily Daily

Supplier

2 year Forecast

Weekly order

90 day order

90 Day production plan

Weekly Schedule

Daily Meeting

Weekly order

2 year Forecast

90 day order MRP Function

DailyDaily

VA Ratio

= 0.8 %

Exercise: ABC Forging (Sample data)Customer Demand• Product Mix = 5 Discs • VolumeA = 500/yr• VolumeB = 500/yr• VolumeC = 500/yr• VolumeD = 150/yr• VolumeE = 100/yr• Response Time = 5 day

Scorecard• Quality = 0 ppm • Concessions = 15,000 cppm

(dimensional)• Delivery = 75%• Response Time = 70 days

Transportation• Distance to Customer = 200 mi• Distance HT/Insp = 150 mi

Production ProcessOp C/T C/O Inv. Misc.Saw = 15 m 20m 20% ↓↓↓↓ timeForge = 07 m 1.5 h 2 h (Heat)* HT = 9 h 8 h (Cool)* Insp = 03 mMach = 3 h 4 h 5% reworkInsp = 1.5 h Pack = 5 m* Outsourced Operations

Scheduling• Two 8-hr shifts, 30 min break per shift• 5 workdays/week, 50 weeks/ year• Customer provides 2-year forecast, 60-

day flexible schedule, weekly pull signal • Aero provides sub-tiers w/2 yr forecast

and 8-week firm schedule• Aero using MRP to schedule each work

center, supervisors expedite daily• Batch size of 40 pieces through process,

average lead time of ~10 weeks

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119

14

98

49

21

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Value Steam Mapping

Process Information SheetSupplier: Part Name: Part No: Annual Volume:

Rou tin g Op eration Nu m b er Des crip tion of th e p roces s b ein g p erform ed

Tim e elas p s ed from fin is h in g on e

p art to fin is h in g th e n ext p art (with

n o s etu p )

Time from fin is h in g las t

g ood p art of on e p rod u ction ru n to firs t g ood p art of

n ext ru n

Availab le or as s ig n ed n u m b er

of m in u tes for each op eration in a

24 h ou r p eriod

Ave. n u mb er of p arts ru n b efore m ovin g all p arts to n ext op eration

Ven d or n am e (ou ts ou rced

op era tion s on ly)

City an d s ta te wh ere ou ts ou rced op eration

is p erform ed

Travel d is tan ce to ou ts id e ven d ors

Mean s of con veyen ce

Averag e time a p art s p en d s at each op eration

Operation DescriptionCycle Time

(min)Change

Over (min)

Available Minutes per

DayBatch Size Vendor Location

Distance from Plant

(miles)Method of Transport

Lead Time

(days)

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Value Steam Mapping

1.0 Select Champion


4.0Implementation

Planning and Execution

3.0Design Future

State

2.0Gather, Map, and Analyze Selected

Value Stream Data

Value Stream Mapping


Supporting Improvements1. What process improvements need

to be addressed immediately?

Material Flow2. Where can you implement flow?3. Where should you reduce batch

size to improve responsiveness?

Customer Delivery Strategy4. Should you build to customer order or

finished goods?5. What single point will you schedule to

customer requirements?

Information Flow6. How will you schedule or pull material

from upstream?7. How will you level production to the

pacemaker operation?

Exercise: ABC Forging (Sample Data)Brainstorm Future State

Rolls-Royce

Sub-Tier

ProductionControl

2-yr forecast

60-DaySchedule

8-Week Order to Deliver

Cycle Time = 24 hrsTransport = 6 hrsIdle = 48 days

Volume = 1750/yrMix 5/5/5/1.5/1Delivery = 75%Quality = 15k cppmResponse = 5 days

ReleaseMaterial Daily Priority Lists Release

Weekly

SAP

200 miWeekly

C/T = 1.5 h

4 weeks

Forge

C/T=7 mC/O=1.5 hHeat=2 h

C/T=15 mC/O= 20 mBatch= 40

C/T = 9 hCool= 8 h

Machine

C/T = 3 hC/O = 2 h

Insp Pack

C/T= 5 m

2 weeks

150 miC/T=3 m

InspSaw HeatTreat

150 mi

2-yr forecast

20% ↓↓↓↓ 5% Rework

0:15 2:10 17:00 0:03 3:00 2:00 0:055 Days 17 Days 2 Days 14 Days 7 Days 3 Days

Documents

Value Stream Mapping