Value Stream Mapping

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Chapter 5

• Value Stream Mapping

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What is VSM?

• It is a method of creating a one page picture
  of all of the processes that occur in the defined
  scope.
• Similar to Process Flow charting. VSM differs in
  that it includes both the material and
  information flows.

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Value Stream Map
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Why VSM?

• Business and manufacturing wastes that occur in
  processes can be easily identified.
• Eliminating business waste is not the problem,
  finding it is. Taiichi Ohno
• Aids in finding waste throughout the entire
  picture.

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VSM Steps

1. Pick the product or product family to map
   (improve).
2. Create the Current State VSM.
3. Create the Future State VSM.
4. Develop an action plan to make the FSVSM the
   CSVSM.

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VSM Step 1

• Pick the product or product family to map
  (improve).
• VSM should focus on product/product families or
  series of processes where competitive pressures
  are high, customer satisfaction is low, or for
  products that represent the largest share of the
  sales volume
• Best when they begin with an initial goal, such
  as, reducing product or service lead times.

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VSM Step 2

• Creating the Current State VSM
• Form a team and select a team leader
• Educate the team in VSM methodology
• Decide the scope of the VSM. Brainstorm the
  initial map.
• Create an initial rough draft map
• Determine missing info the VSM requires.
• Walk the process
• Build final Current State VSM.

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VSM Step 3

• Create the Future State VSM
• Begin with CSVSM Starbursts (lightning bolts)
• Validate Sr. Mgt. support
• Goal for improvement with realistic time frame
  for each targeted area of improvement
• Draw the Future State Map.

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VSM Step 4

• Develop an action plan to make the Future State
  VSM the Current State VSM.
• Regularly scheduled meetings
• Kick-off meeting
• Ongoing communication
• Top level report-out.
• Post the three VSMs
• Original Current State, desired Future State, and
  now.

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Tools for Identifying Analyzing Problems

• Pareto chart
• Cause Effect Diagram

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Pareto Diagram

• Alfredo Pareto (1848-1923)
• 80-20 rule
• vital few useful many (Dr. Joseph Juran)

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Cause and Effect Diagram

• Represents meaningful relationships between an
  effect and its causes.

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Cause Effect Diagrama.k.a. Fishbone, Ishikawa
Diagram
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Problem Analysis Tools

• Histogram
• Scatter Diagram
• Control Chart
• Process Capability Study
• Error Proofing

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Histogram

• Describe the variation in the process.
• Graphically displays the process capability.

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Scatter Diagram

• Cause and effect relationship

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Control Charts

• Is a technique for problem solving and the
  resulting quality improvement.

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Visual Communication

• Uses specific methods technology to provide
  fast, two-way communication between teams,
  shifts, coworkers, and management.
• Safety
• Quality
• Delivery
• Productivity
• Takt Time Total mins avail for prod/ of parts
  needed
• Production Boards

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Continuous Improvement Plan

• The Plan Do Check Act Model (PDCA)

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Evolution of VSM

• Pioneered by Henry Ford in 1920s
• Similar to other process flow mapping
• Information and material flow mapping
• Perfected by Toyota
• Enables a company to visualize flow of
  information and materials in a process
• Scalable, standardized method to visualize
  commerce

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VSM Purpose

• Value Stream Mapping is not
• A tool for tactical implementation
• A spaghetti diagram
• Importance
• Identifies opportunities for implementation and
  clues to effective action

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Key Belief of VSM

• Customer Satisfaction
• Meeting (or exceeding) customer expectations for
  value utility
• The goal is to delight the customer

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VSM Waste, Opportunities, and Value

• Waste
• Anything expended beyond the minimum required to
  satisfy customer expectations
• Opportunity
• Overlooked or un-capitalized value-generating
  activities
• Value
• Anything the customer is willing to pay for, or
• Satisfies three tests
• It changes something
• Customer cares about it
• Done right the first time

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VSM Who Should be Involved

• Involvement is dependent on scope of VSM
• Scope could be
• Supply Chain
• Enterprise
• Functional
• Service
• Process

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VSM Group Involvement

• No larger than eight people
• Should always include
• VSM facilitator
• Key focus area personnel
• Key support personnel
• Key customers
• Key suppliers
• Management sponsor

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Applying VSM

• Creates a vision of the future
• Encourages participation
• Reduces risk of islands of excellence
• Helps remove barriers to good communication
• Provides a plan for implementation
• Provides metrics by which to measure performance

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Summary

• Value Stream Mapping
• Flexible and scalable as a tool
• Illustrates what areas should be addressed and
  why
• Is a team sport
• Drives change to reduce waste and improve
  customer satisfaction