Value Stream Mapping

the Current State

Lean for Manufacturing Business Processes

Reference file used

Understanding the Value Steam Is The Path To in this module:
Lean templates.xls
Being More Competitive. Swimlane.xls

BREAKTHROUGH MANAGEMENT GROUP

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 Module Objectives

At the end of this module you will be able to:

 Construct a simple current state value stream map.
 Interpret the value stream map to identify process change opportunities.

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 Where We Are on the Roadmap
Supply Chain/External Environment
Enterprise / System Interface
• Financial • Procurement • Quality • Training and Human Resources
• Information • Engineering • Safety • Workforce/Management Partnership
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6

Adopt Prepare Define Identify Design the Implement Implement

Lean Value Value Stream System Flow Pull
•Build vision •Integrate
•Build vision •Integrate
•Establish with
•Establish with
need Top Enterprise •Define •Value •Value stream •Identify new •Implement
need Enterprise Lean •Define •Value •Value stream •Identify new •Implement
•Foster Lean Leadership Level customer stream map map the Takt the new
•Foster Lean Level Roadmap customer stream map map the Takt the new
learning •Establish an needs the current future •Establish process
learning •Establish an needs the current future •Establish process
•Make the Operations process process Kanbans •Establish Pull
•Make the Operations Kanbans •Establish Pull
commitmen Commitment Lean process process •Standardize
commitmen Lean •Standardize
t Implementati work
t Implementati work
•Obtain on Team(s)
•Obtain on Team(s)
senior •Develop
senior •Develop
managemen implementati
managemen implementati
t buy-in
t buy-in
on strategy
on strategy
•Develop a
S C
•Develop a
plan to
plan to Utilized
address Utilized
address throughout
workforce
workforce
changes
E throughout
O
changes
•Address Site
•Address Site
Specific
Specific
Cultural
R
Cultural Phase 7
Issues
Issues
•Train key
•Train key
people
people
Strive for Perfection
•Establish
•Establish
target
target
objectives •Team •Institutionalize 5s •Expand TPM •Evaluate
objectives
(metrics) development •Institute Kaizen events •Evaluate progress using
Expand (metrics)
•Optimize •Remove system barriers against Lean maturity
Internally/External
quality target matrices
ly
ENTRY metrics
IMPROVED
COMPETITIV
E
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 Our Company needs to go
LEAN. How do I
make it happen?

Understand your VALUE STREAM

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 Process Flow Diagrams … a quick review

Sales/opns Data Clerk Payments Dept Billing Dept Printing Dept Mail Room

 Process Flow Diagrams are START

useful depictions of the

flow through a process. Obtain Products
& Services Used
Billing Process
Example
Input Usage Data
 They often show both what
and who for each activity. Apply Pricing
Tables
Apply Credits
& Payments

Compile Credits Merge Data

& Run Bills

 The detail is useful for

identifying non value-
Print

added steps. Mail

STOP

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 Review of Process Flow Diagrams

All key tasks are included that produce a “good” product or service.
 Controlling documents are noted for each step.
Fail
SOP 954-21 D
D
Employee fills out Manage
Employee calls Employee kits report Send to
personal expense r
in report with receipts Mgr
report Review
SOP 940-14
Pass
Manager fills out
interdepartmental charges
Send to
Finance

SOP 942-18
SOP 955-06 D
Manage Purchasing
Employee fills out Send to Send to
r fills out Acct
Purchase Order Mgr Finance
Review Pass Pay Form

Fail Send to
Purchasing

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 Review of Process Flow Diagrams with
Non Value-Add

Non value-added process steps are noted.

 A value-added process changes the product in
a way that is meaningful to the customer.
SOP 954-21 Fail
NVA D
D
Employee fills out Manage
Employee calls Employee kits report Send to NVA
personal expense r
in report with receipts Mgr
report Review
SOP 940-14
Pass
Manager fills out
interdepartmental charges
Send to
Finance

SOP 942-18
SOP 955-06 NVA D
Manage Pass Purchasing
Employee fills out Send to Send to
r fills out Acct
Purchase Order Mgr Finance
Review Pay Form
NVA
Fail Send to
Purchasing
NVA
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 Another Example – with Swim Lanes
Team
Orders Process: Issue Customer survey indicates 2 year negative trend in customer satisfaction, specifically responsiveness of the customer service
Swim lane VSM Date: Today department in handling orders.

Demand 24 hours turn

Customer Customers mail
Inquries, 3X day Phone call Posts order
Fax Receives fax End
Clubs returned items. 8 AM,Noon Expidite send hard copy
1 X day
Aces 540 Monthly orders 3 PM
Apex 8100 Monthly lines
Domestic dist. 15 Lines average
1. 1X as day
8.
8Hr8 8 Hr
Central mail sort
Sort Out box HR Posts order
Joe
1 send hard copy
1 X day 1
5 sec 5 sec 30 sec

Hand carry
2. 9 AM 2X a day
7.
Sales mail sort 4HR
Debbie Place in folders 4 Hr
Sort Date stamp sort
CSR's
1 X day 1
1
5 Sec 2 Sec 10 sec 30 sec per order

1 PM
3.
5.
Initiate Order 4HR Exception Exception
Initates order Assign delivery 1HR
CSR 1 Place in folders returned work Expidite orders Fax customer File hard copy
computer date
Susan or Cathi
1 1
2X day
45 sec per line 4 Min 10 min 30 sec per line 90 sec
Walk
Hand carry
Walk 6.
4. Hand carry
every 2 Hrs
Check part numbers provides price Receive 2X a day
Check part Assign a part 4 Hr
CSR 2 Attach revision estimate / lead Return to CSR1 acknowledgement Review all line
numbers number
Jane or John time and all papaers items1
1 2HR 1
10 sec per line 10 sec per line 15 sec per line 60 sec per line 15 sec per line

Data base

NVA in sec 28800 14400 14400 7200 3600 14400 14400 28800 126000
Time line 1 2 3 4 5 6 7 8 Total VA ratio 2.29%
VA in sec 10 17 675 1425 540 225 30 30 2952

Team
Orders Process: Issue Customer survey indicates 2 year negative trend in customer satisfaction, specifically responsiveness of the customer service
Swim lane VSM Date: Today department in handling orders.

Demand 24 hours turn

Customer Customers mail
Inquries, 3X day Phone call
Fax
Clubs returned items. 8 AM,Noon Expidite
Aces 540 Monthly orders 3 PM
Apex 8100 Monthly lines
Domestic dist. 15 Lines average
1.
8Hr8
Central mail sort
Sort Out box HR
Joe
1
1 X day
5 sec 5 sec

2. 9 AM

Sales mail sort 4HR

Debbie Place in folders
Sort Date stamp
CSR's
1 1 X day
5 Sec 2 Sec 10 sec

1 PM
3.
Initiate Order 4HR
Initates order
CSR 1 Place in folders
computer
Susan or Cathi
1
45 sec per line

4.
Check part numbers
CSR 2
Jane or John

Data base

NVA in sec 28800 14400 14400

Time line 1 2 3 4
VA in sec 10 17 675

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 1. Flow of People
2. Flow of Products
(Value added Transactions)
3. Flow of Information
4. Flow of Parts (Data needed)
5. Flow of Equipment
(Method of Transmitting)
6. Flow of Raw Material (transactions)
7. Flow of Engineering
(Policy and procedures)
All of these must be considered
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 Why a Value Stream Map?

 Helps you focus on the “big picture”

 Provides a common understanding of the current state
 Links material flow and information flow
 Aids in seeing sources of waste
 Creates a vision for improvement process
 Easily updated as vision becomes clearer
AS IS VSM speedy Corporation By Jerry Coover Date 12-14-04
Customer

Verbal
Make as many
Supplier as possible 3 forms a minute
if used 1 batch per minute
Walk Finished
60 sec Takt
Goods

Batch
Batch Batch Batch Batch Batch

Work station 2 Work station 2 Work station 2A Work station Work station
WS 1 Finished
A to F Walk A to F Walk G to Z Walk 3 Walk 4
individual numbers Walk Goods
Red / Blue QA.
blank 1 to 10
slash
forms
1 Batch 1 Batch 1 Batch 1 Batch 1 Batch 15 Batches 1 Batch 1 Batch 1 Batch 1 Batch 1 Batch 1 Batch
40 Forms 60 Sec 30 Sec 30 sec 100 Sec 20 Sec 20 Sec

Walk Walk Walk Walk walk walk

VA 60 30 30 100 20 20 20 280 VA

NVA 800 60 15 60 30 15 30 30 15 900 100 15 20 20 30 15 20 20 2195 NVA

40/3
Time is approximate. VAR 0.113131
11%

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 To the Maps

VAL
UE

Traditional Value stream Map methods and

icons
BREAKTHROUGH MANAGEMENT GROUP
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 Material Flow Icons C/T = Oper. 12 secs
Mach. 30 secs

C/O = 15 mins.
Process Uptime = 75 %
Supplier or Notes or sketches Reject Rate = 13%
Customer
3 Operators
Outside Locations Transactional
Process Data Box

I 2-X/wk.
PUSH Arrow
50 pcs.
3 days Truck Shipments
Inventory Finished Service
to Customer
FIFO First In First Out
Limited Sequence

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 Information Flow Icons

Manual Information Flow Electronic Information Flow

Daily
Schedule OXOX
Information Box Level Loading Kanban
Heijunka Box Mailbox

Withdrawal Kanban Production Kanban Signal Kanban

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 Lean Time Measurements
• Cycle Time (CT) How often a part is actually completed by a process
Also the time it takes an operator to perform all their work before
repeating the steps. CT

FLOW
• Value Creating Time (VCT) Time of those work elements that
VCT
actually transforms the product

FLOW
• Lead Time (LT) The time it takes one piece to move all the way
trough a process or value stream. LT

FLOW
Usually: VCT < CT < LT
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 Value Stream Map Order
Suppliers Forecast
Customer
Daily
Order Material Control
Order
600 buns and dogs Materials
960 Hotdogs/day
per load 2 shifts

2X/day Make Value-added

Hot Dogs
times 2X/day .

Cook Dogs Put in Bun Wrap/Freeze Shipping

I I I I
54 secs 17 secs 57 secs Staging
130 dogs 60 dogs 150 dogs
515 dogs
C/T=Oper. 12 secs C/T=Oper. 17 secs
130 mins. C/T=Oper. 22 secs 150 mins.
515 mins.
Mach. 42 secs. 60 mins. Mach.:35 secs

C/O = 5 mins. C/O = 0 mins. C/O = 3 mins.

Uptime = 85 % Uptime = 100% Uptime = 90 %

Scrap Rate = 13% Scrap Rate = 9% Scrap Rate = 5%

1 Operators 1 Operators 1 Operators

Cut Buns
I I
11 sec
300 buns
300 mins.
C/T=Oper. 11 secs
345 buns
345 mins.
Goody Hot Dog Company
C/O = 0 mins.

Uptime = 100 %

Scrap Rate = 9% Takt Time = 60 Seconds Prod Lead Time

983 min = 51300 sec
1 Operators
Value Added Time
515 mins 54 sec 345 mins 17 sec (VA) 60 mins 57 sec 150 mins (NVA) 128 sec
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Homework Reading assignment

 In the Learning to See book, read

page 1 – 38 and 57 – 81, Current
State Map. (Homework)
r ning
Lea ee
to S t
m
rea eate  This is an example, preparing you
-s cr
ue e for doing a Value Stream Map in the
val ing to minat
pp eli
ma e and da next exercise.
u mu
val

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 Value Stream Mapping Exercise

Objective: Practice creating a Value Stream Map

As a group:
 In the Learning To See book, go to the ACME stamping data section
in the rear of the book.
 Read the data
 Together we will make a value stream map of the current state.
 Use the approach in the reading assignment
 Use the icons from the sample data sheet (handout)

 Then we will answer the questions on page 19.

Time = 30 minutes

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 As is ACME VSM
4. 5. 1.

2.
90% 95% 90% 95% 90% 98%

7.
3.
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 Value Stream Mapping Exercise

Additional questions.
 Can you identify the non value add steps in the process?
 What is the rolled throughput yield of the process. If the following were
true:
 Stamping Process 90% Yield
 Spot Weld station 1 Process 95% Yield
 Spot Weld station 2 Process 90% Yield
 Assembly workstation 1 Process 95%
 Assembly workstation 2 Process 90%
 Shipping Department Process 98% Yield

 What would the yield of the process be as calculated in a traditional

manner.
 Brainstorm at least 3 different ways your team would change the existing
process to make it Lean.

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Multiple Products?

Product
Family

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 Do we separately Map each product
flow?

No, that would create unnecessary complication

Organize flows into product/service families

 A family of services or products pass through similar process steps and
have a similar work content

A family matrix (family tree) helps us identify the family

 It is simply a matrix that contains a list of processes in columns and a list
of products in rows

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 Exercise: Family Matrix

Objective = Practice interpreting a Family Matrix

Process Steps ( Flow  )

1 2 3 4 5 6 7 8 9
A x x x x x x x
Products

B x x x x x x x
C x x x x x
D x x x x
E x x x x x
F x x x x x x x
G x x x x x

What families do you see in the above?

Time = 3 minutes
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 Review

You should now be able to:

 Constructed a simple current state value stream map.
 Interpret the value stream map to identify process change opportunities.

What questions do you have?

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