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Lean Value Stream

Mapping & Analysis
Creating End Vision and Roadmaps for Driving OpEx

World-Class Standards of Operational Excellence

© Lean & Mean Consulting. All rights reserved. 2016
2015
Objectives

Upon completion of this workshop, you will be able to:

 Understand why creating a VSM is crucial for succeeding in Lean

 Create a value stream map for both the current and future states

 Develop a data collection plan for the value stream map

 Conduct end-to-end assessment of value-added versus non-value-added

activities

 Prioritize projects based on strategic objectives

 Develop action plan to achieve the future state

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Agenda

1. Overview of Lean Thinking

2. Tools for VSM: make the life easier
3. Introduction to Value Stream Mapping
4. Identify a Value Stream
5. Create a Current State Value Stream Map
6. Analyze Value & Waste
7. Assess Opportunities
8. Develop a Future State Value Stream Map
9. Develop an Implementation Plan

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Value Stream Mapping
Value Stream
PROCESS
PROCESS PROCESS C
A B

Supplier Customer

3 enterprise value streams:

1. Raw Materials to Customer - Manufacturing

2. Concept to Launch - Engineering
3. Order to Cash - Administrative Functions

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Value Stream Mapping

“Whenever there is a product (or service) for a customer,

there is a value stream. The challenge lies in seeing it.”

A Value Stream is the set of all actions (both value

added and non value added)
required to bring a specific product
or service from raw material
through to the customer.

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Why Value Stream Mapping?

 Ties together lean concepts and techniques

 To set strategy before diving into tactics

 Visualize the process at multiple levels

 Enables us to see the flow and sources of waste

 Provides a common language for analyzing processes

 Provides a blueprint for creating flow and implementing Lean

concepts and techniques
throughout the entire value stream

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Common Failings with Value Stream Mapping

 Using the mapping process solely as a work design exercise

 Using the map to make tactical improvements

 Creating value stream maps during a kaizen event

 Creating maps but taking no action

 Mapping with an inappropriate team – or no team at all

 Creating maps with no metrics…

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VSM Toolbox:
VSM Charter

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VSM Toolbox:
Future State Implementation Plan

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VSM Toolbox
Production VSM: Example Excel generated VSM

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VSM Toolbox:
VSM Template

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Value stream mapping provides an overview of the
end-to-end business process

Information flow

Supplier/
Production Customer
Customer
Control

Work & Information Flow

• Creates an end-to-end view of the system

• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system

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Value Stream Mapping Roadmaps

 Develop implementation  Define and scope

plan problem
4
 Seek management Develop  Select product family
approval Implementation  Determine VSM objective
 Implement the plan Plan Select and benefits
and monitor Product
progress
Family

3 1

 Analyze and identify Future

improvement State
opportunities Establish
Design  Map current state value
 Develop future state Current State stream
value stream map Baseline
2  Collect data
 Prioritize improvement
 Quantify current state
projects
value stream
performance

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VSM: Three Key Activities & Deliverables

• Phase 1 – Document and analyze the current state

 Go to the Gemba!

• Phase 2 – Design the future state (3-6 month out)

• Phase 3 – Create the implementation plan!

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Value Stream Walk - Three Actual Rules

 “Go to the Gemba” - Actual place where

the process is performed.
 Talk to the Actual people involved in the
process and get the real facts.
 Observe and chart the Actual process.
 Reality is invariably different from perception;
Few processes work the way we think they do.
 The purpose of value stream mapping is to
identify waste, not to develop the perfect
process map.  GO WALK IT!

Understand the process through facts and data!

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Current State Mapping Tips

 Collect current state information while walking the actual material flows
YOURSELF

 Walk the whole process first, then revisit and gather information at each
process

 Begin at the shipping end and work ‘upstream’

 When possible, establish original data:

 get a detailed understanding, do your own timing

 Historical data and what people tell you is normal is often wrong

 Draw in pencil a sketch as you carry out the mapping, and clean up later

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Consider both the material and information flow

 Materials flow – presents the movement of material through

the factory
 Information flow – how does each process know what to produce
and in which sequence

information

Like two sides of the coin! PRODUCTION FLOW

material

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Key Metrics: Time

 Cycle Time (CT)

 The time it takes to actually perform the work, if one is able to work on
it uninterrupted
 Includes task-specific doing, talking and thinking
 Also called as “touch time”, work time.

 Lead Time (LT)

 The elapsed time from the time work is made available until it is
completed and passed on to the next person or department in the
chain
 Also called as throughput time, turnaround time, elapsed time
 Includes Cycle Time, not merely waiting time.

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3 Types of Work-in-Process (WIP)

Waiting Completed,
to be Currently in but not yet
processed process passed on

WIP

WIP WIP
Process 1 Process 2 Process 3

Process 2’s WIP

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Current State – Leveling of Cycle Times

• Calculation of takt
= Value added
time:
= MUDA
Bottleneck
 The daily demand:
120 • From this figure it is
500 pcs.
Takt time (2 shifts) = 108 sec. visible why the flow is
30%

100 bad
Theinline
theoperates
current 2
production.
shifts. The bad

20%
80 flow also causes
inventory
Takt timebetween
= all
60 processes.
(2 x 7.5 x 3600)* /
Machining
84 sec.

50%

500 pcs. = 108 sec.

30%

Assembly

40
64 sec.

85%

•• For
Theevery
takt time
108 is 532
Welding
36 sec.

sec. based on 2 shifts.

Drilling
26 sec.

20
seconds
It is also there must
clear that 2
11
P.

Sec. be a new
shifts product
is not enough
on thefor
ready machining
shipping
process.
* 2 shifts x 7.5 hours per shift x 3600 seconds per hour

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 Material Flow
Timeline. Value added and non-value added activities

Material flow

Inventory

Process 1 Process 2 Process n

12 Days 20 Days 2 Days 1 Day
15 Sec 17 Sec 9 Sec

Non-value adding
activities Production Lead Time = 35 Days
Value adding
Value added time (VA) = 41 Sec.
activities

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 Current State Value Stream Map
Manufacturing Process
Orders Assy/Packout
Production Shipping
Forecast Planning 14/0/9
Customers

Suppliers SU=5.15 mins

I
Daily Schedule
CDO 716 pcs.
Schedule

Review Robotic Welder

0 pcs.
Staffing 148 pcs. 4/0/1
150 pcs.
I I I SU=2 mins
Receiving Turret Lasers I Rabbet Cell Paint Line
1/0/1 4/0/2 186 pcs.
1/1/1 Manual Welder
SU=1.1 mins 10/0/6
4 coils
SU=1.28 mins SU=8.45 mins 9/0/4
SU=0 mins
SU=.58 mins

WIP
Reduction 200 pcs. Auto Welder
Fabrication I
2/2/2
Auto Press 54 pcs.
1/0/1 SU=1.5 mins
SU=45 mins
Press Brake
Work 1/0/1
SU=5 mins Increase
LT = 17.57 days
Cells
I 811 pcs. PT to LT PT = 114.54 mins
PT to LT = 0.68%
2.7 days Turret CT = 1.8 mins 12.7 days .08 days .57 days Robotic CT= 1.42 mins 1.5 days Assy/PO CT=3 mins
AP CT = .5 mins Manual CT = 15.7 mins Paint CT = 90 mins
BP CT = 1.17 mins CT = 3.54 mins CT = .5 mins Auto CT = 1.43 mins

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Transforming from Current State to Future State

Next Future State

Improvement

A P
C D

Future State
Improvement

A P
C D A S
C D Maintenance
Current State

A S
C D Maintenance

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Developing Future State

Future State Questions:

1. What is the TAKT time?
2. Will we build to shipping or to a supermarket?
3. Where can we use continuous flow?
4. Where do we have to use supermarket pull systems?
5. At what single point in the production chain do we trigger
production?
6. How do we level the production?
SUPPORTING IMPROVEMENTS
 What process improvement will be necessary?
(e.g. uptime, changeover, training, etc.)

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VSM Improvement Activities:
Rules of Engagement (1)

1. The team starts and ends the day together; begin and end
breaks together
2. No interruptions or distractions – 100% focus; phones on
silent; no email; no texting
3. Rank has no privilege
4. Seek the wisdom of ten instead of the knowledge of one
5. Use creativity before capital (in designing improvements)
To be continued…

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Define tasks (1)

 To get an overview of the tasks, Kaizen events are added to

the “Future State” before the tasks are defined.

 Kaizen events are drawn as “stars” or “bursts”.

 Kaizen events aim to improve workplace organization (5S),

increase uptime (OEE), reduce changeover times (SMED),
implement Kanban, arrange the cell, cross-training, work
sharing, etc.

 When mapping the value stream, Kaizen is used to define the

overall tasks to achieve the future value stream.

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PACE Prioritization Matrix

Projects/Kaizens

Easy
Priority
Ease of Implementation

Action

Consider
Difficult

Eliminate

High Low
Anticipated Benefit
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Lesson summary
 Plan upfront: Select Product Family(ies), Communicate data
requirements, Assign specific tasks to everyone involved

 Go out on the floor!

 Measure times with a stopwatch, count inventory manually
 Regarding production planning, get the “official” story from the planner; get the
actual practice from the line supervisor or lead

 Record the VA and NVA times for every step

 Brainstorm problem areas before starting the Future State VSM

 The Future State VSM is the roadmap of a lean transformation

 Challenge all “monuments”
 Set high goals

stamping welding assembly

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Value Stream Mapping: Summary

Draw Customer Draw Customer Draw Management Draw Supplier

Box Requirements Control Box Box

Draw
Draw Transport Draw Draw Push/
Production/
to Production Communication Pull Systems
Service Flow
Arrows

Finalize Analyze Identify Develop

Value Stream Kaizen Future
Measurements
Map Opportunities State Map

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Value Stream Management

 The map is just a picture of ideas!

 The fundamental change is in how we choose to

manage the value stream as an integrated system of
decisions and tasks.

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Value Stream Management

 Use your strategic plan as a guide

 Find the gaps in necessary performance

 Improve value streams to meet the performance

 Create new metrics to support new ways of thinking and

acting

 Understand true product family costs

 Manage operations by the value stream data

 Always have a future state!

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Critical sucess factors

 Management must understand, embrace, and lead the

organization into lean thinking.

 Value stream managers must be empowered and enabled

to manage implementations.

 Improvements must be planned in detail with the cross

functional Kaizen teams.

 Successes must be translated to the bottom line and/or

market share.

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Planning and implementing

Don’t Wait!
You need a plan!

• Tie it to your business objectives

• Make a VS Plan: What to do by when
• Establish an appropriate review frequency
• Conduct VS Reviews walking the flow

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© Lean & Mean Consulting. All rights reserved. 2016
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