Value Stream Mapping

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Value Stream Mapping

• Learning to See Waste

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Process View

• Everything you do in your Company is accomplished
  through a process.

• Even the smallest activities are accomplished
  through processes.

Order Materials
Issue paychecks
Setup Equipment
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What is a process?
Characteristics

• Definition
• Process
• A series of actions
• or steps toward
• achieving a
• particular end.

1. Scope Starting point and ending point.
2. Purpose Reason why it is being performed.
3. Steps Actions performed by operators or equipment.
4. Sequence Order in which the actions are performed.
5. Operators Operators or equipment that perform the actions.
6. Outcome A specific result, product or state.
7. Customer Next process, requestor or end user.
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Waste in Processes
Taichi Ohnos Seven Forms of Process Waste
Over Processing
Correction
Over- Production
Inventory
TYPES OF WASTE
Motion
Waiting
Material Movement
Underutilization of Employees !!!
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Waste of Overproduction

• Definition
• Producing More Than Needed
• Producing Faster Than Needed
• Producing Sooner than Needed

• Some Characteristics
• Inventory Stockpiles
• Extra Racks, Containers
• Building Ahead
• Long Lead Times
• Extra / Oversized Equipment
• Unbalanced Material Flow
• Excessive Capacity / Investment
• Safety Concerns

• Some Causes
• Large Batches
• Poor Communication
• Long Changeover Time
• Low Uptimes
• Lack of Consistent Schedules
• Forecasts vs. Customer Demand

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Waste of Correction

• Definition
• Repair of a Product or Service to Fulfill
  Customer Requirements

• Some Characteristics
• Repair and Rework Areas
• Increased Inspection
• Missed Shipments / Deliveries
• Poor Customer / Supplier Relations
• Reactive Organization
• Lost Capacity
• Scrap
• Premium Freight
• Reactive Organization

• Some Causes
• Incapable Processes
• Incapable Suppliers
• Insufficient Training
• Inadequate Tools / Equipment
• Poor Layouts / Handling Issues
• Processes Not Under Control
• High Inventory Levels

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Waste of Material Movement

• Definition
• Inconsistent Material Flow.
• Unnecessary Movement of Parts.

• Some Causes
• Large Lot Processing
• Inconsistent Schedules
• Long Changeover Times
• Lack of Work Place Organization
• Improper Facility Layout
• Excess Inventory

• Some Characteristics
• Multiple Storage Locations
• Complex Material Flows
• Wasted Floor Space
• Large Tanks Warehouses
• Inventory Errors
• Unbalanced Drive Schedule
• Heavy Duty Barriers Protection Devices

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Waste of Overprocessing

• Definition
• Effort Which Adds No Perceived Value to a
  Product/Customer.

Excessive approvals Redundant processes Reports
with too much information Reports that you dont
use

• Some Characteristics
• Bottlenecks
• Lack Boundary Samples or Clear
• Customer Specifications
• Endless Refinement
• Redundant Approvals
• Extra Copies / Excessive Information

• Some Causes
• Engineering Change w/o Process Change
• Decision Making at Inappropriate Levels
• Ineffective Policies Procedures
• Lack of Customer Input Concerning Requirements

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Waste of (too much) Inventory

• Definition
• Any Supply in Excess of Customer Requirements.
• Any Supply which is not having value added to it.

• Some Characteristics
• FISH instead of FIFO
• SMOI
• Long Lead Time for Engineering Changes
• Off Line Storage Area
• Extra Material Handling Resources (People,
  Equipment, Racks, Storage, Tanks, Space /
  Systems)
• Slow Response to Customer Demands
• Low Inventory Turns

• Some Causes
• Incapable Processes
• Uncontrolled Bottlenecks
• Incapable Suppliers
• Long Changeover Times
• Local Optimization
• Inaccurate Forecasts
• Sub-optimized Raw Material Ordering
• Efficiency Measures

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Waste of Waiting

• Definition
• People or parts waiting for a work cycle to be
  completed.
• Idle time resulting when two dependent variables
  are not fully synchronized.

• Some Characteristics
• People Waiting for Machines
• Machines Waiting for People
• People Waiting for People
• Waiting for Materials
• Unbalanced Operations
• Lack of Concern for Breakdowns
• Unplanned Equipment Downtime

• Some Causes
• Inconsistent Work Methods
• Long Machine Changeover Times
• Downtime/Breakdowns
• Poor Machine / People Effectiveness
• Lack of Proper Machines

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Waste of Motion

• Definition
• Any movement of people that does not add value to
  the product or service.

• Some Characteristics
• Looking to Find Tools
• Walking for Materials
• Excessive Reaching / Bending
• Walking Around Things
• Moving Thing Out of the Way
• Machines / Material too Far Apart

• Some Causes
• Poor Housekeeping
• Equipment, Office Plant Layout
• Lack of Work Place Organization
• Poor Machine / Operator Effectiveness
• Inconsistent Work Methods
• Large Batch Sizes

Hint Dont confuse motion with work.
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Waste in Processes
Can you spot examples in your work area?
Over Processing
Correction
Over- Production
Inventory
TYPES OF WASTE
Motion
Waiting
Material Movement
Underutilization of Employees !!!
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Learning to See Wastes
Value Stream Mapping A descriptive analysis that
helps you to see and understand the complete flow
of material and information towards the final
product.
Whenever there is a product for a customer,
there is a value stream. The challenge lies in
seeing it. Womack and Jones
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Value Stream Mapping
Why is Value Stream Analysis so important for
Lean Processing?

• Supports process thinking.
• Takes a big picture view improve the whole vs
  optimize individual steps.
• Shows the connection of material, people, and
  information flows.
• Standard for management to document the whole
  process.

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Types of VSMs

• Single value stream factory order to ship
• Multi-value stream order to cash
• Enterprise value stream design, sales, order,
  produce, ship, bill

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LTS Start With Physical Flow and Data
Supplier
Customer
Supply-chain data
Product- demand data
Raw- material shipments
Product delivery
I
I
I
I
Raw-material inventory
Raw-material inventory
Finished-goods inventory
Finished-goods inventory
Inventory quantity
Inventory quantity
Process 1 data
Process 2 data
Process n data
Inventory quantity
Inventory quantity
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Example of Data Capture
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LTS Add Information Flows
VA
VA
VA
VA
NVA
NVA
NVA
NVA
Totals
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Future-State Design
Completed Future-State Map
Daily orders
Daily orders
Supplier
Customer
Customer requirement
Raw- material shipments
Product delivery
Raw-material supermarket
Supermarket
IP kanban
Scrap
Std Work
Std Work
Std Work
Std Work
Changeover
Downtime
Std Work
C/T reduction
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Implementation Planning
Daily orders
Daily orders
Supplier
Customer
Supplier Loop
Customer Loop
Customer requirement
Raw- material shipments
Product delivery
Raw-material supermarket
Finished-goods supermarket
Supermarket
IP kanban
Scrap
Std Work
Std Work
Std Work
Std Work
Changeover
Downtime
Std Work
C/T reduction
Process Loop 1
Process Loop 2
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Value Stream Mapping
Top-Level Mapping, Lean Design and
Implementation Process Map

• Map the current value stream showing the material
  and information flows
• Measure / observe lean-implementation process data

Current-state mapping

• Identify Opportunities for Improvement
• Design the future lean state
• Map future-state material information flows

Lean future-state design

• Segment the flow into loops for implementation
  planning
• Develop implementation plan with schedule, owners
  and measurable milestones and results
• Execute plan

Implementation planning execution
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Other VSM Tools

• Brown Papers
• Spaghetti Diagram (product, people information
  movement)
• Swim Lane
• Standard Work Layout

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Brown Paper VSM

• Describes a process in a more informal way
• Usually done in groups or teams
• Shows the big picture
• Is high touch, low-tech
• Identifies strengths and opportunities
• Captures the complexity and disconnects of key
  operational issues
• Gets stakeholders involved in process

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Brown Paper Example
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Brown Paper ExampleConfigured Computer to User
Brown Paper Flow Chart
Time 88 Days From Request to Configured-to-User
Suppose the Users Were Satisfied?

• Frictional Interfaces
• Too Many Steps
• Lots of Rework

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Brown Paper ExampleSimplified Process -
Customer Value Focus

• New (To-Be) Flow
• Time 11 to 17 Days (varies w/user needs)
• Saved US1.3M 784K Was Annual Labor
• Flow Simplified
• Standardized Configurations
• Steps Removed
• Friction Removed
• Decisions Pushed to Lowest Level

Real Benefits From One BE Event including
Robust Follow-Up Sustainment
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Work Flow (Spaghetti) Diagram
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Work Flow (Spaghetti) Diagram
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Process Responsibility Map (Swim Lane)
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Work Flow Travel Expense Reimbursement
Business Travel Expense Reporting
Accounting
Sales

• Gathers receipts
• Enters in Excel spreadsheet
• Tapes receipts to printer paper

• Mail goes to Accounting.
• AP clerk opens and sorts mail.
• AP clerk verifies numbers, receipts and policy
  compliance on Expense Report. 25 are returned
  for correction.
• AP Clerk puts in mail to Payroll.

• Prints 2 copies of Excel Spreadsheet

• Puts Expense Report in outgoing mail. Files 2nd
  copy.

• Photocopies Excel spreadsheet and receipts.

• Payroll enters data into payroll system.
• Payment appears on employees next check.

Payroll
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Value Stream Map Travel Expense Reimbursement
10 min
20 min
3 min
5 min
3 min
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Value Stream Map Travel Expense Reimbursement
3 min
5 min
10 min
300 min
12 min
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Value Stream Map Travel Expense Reimbursement
No
Yes
Totals
5 min
2 min
670 / 1150 min
0 min / 480min
300 min
2 min
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Standard Worksheet - Layout

• A Standard Worksheet is
• A scaled diagram of a work area that
• shows the locations of all relevant equipment
  and work steps
• Identifies work steps in sequential order and
  travel path of worker.
• Most useful when designing jobs or work cells.

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STANDARD WORK SHEET
Date
Page of
Manager Or Team Leader
Area Or Process Name
Person Preparing This Sheet
Core Boring
H. Davidson
B. Foot
A S I S M A P
Raw Material
B40
B30
1
B10
5
2
4
B20
8
7
6
3
Finished Goods
Inspection
B50
Takt Time
Quality Check
Safety Precaution
Standard Work In Process
Required Output
Operator Number
Net Time
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STANDARD WORK SHEET
Date
Page of
Manager Or Team Leader
Area Or Process Name
Person Preparing This Sheet
Core Boring
H. Davidson
B. Foot
A S I M P R O V E D M A P
B20
B10
Raw Material
1
1
3
2
4
B30
4
Finished Goods
8
8
6
5
7
7
B40
B50
Inspection
Takt Time
Quality Check
Safety Precaution
Standard Work In Process
Required Output
Operator Number
Net Time
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Some Guidelines for Mapping

• Focus on the physical work steps that are
  performed, not the outputs.
• Maps do not loop back because the time marches
  on.
• The customer is still waiting for the output.
• Work time cannot be erased and redone.
• Gather factual data based on current observations.