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Delphi Manufacturing System (DMS)

Value Stream Mapping

Rev. 05 February 2001 (Version 4.1)

Value Streams – Mapping –February 4, 2003


Introduction
Delphi Manufacturing System
 Institutionalized at Delphi as our approach to lean manufacturing

Lean manufacturing is the balanced use of people, equipment


and material that gives the lowest life cycle cost.
 Delphi’s lean enterprise requires our suppliers’ involvement as
part of the total value chain
 Commitment is required from our entire supply chain to enable
us to provide our customers with the higher value they demand
and deserve

Value Streams – Mapping –February 4, 2003


Lean Thinking - as summarized by
James Womack
• Specify VALUE by Product
• Identify the VALUE STREAM
• Make the Product FLOW
• at the PULL of the Customer
• in Pursuit of PERFECTION
“Identifying the entire value stream for each product family is the next step
in lean thinking.” - J. Womack & D. Jones, Lean Thinking
Value Streams – Mapping –February 4, 2003
Value Stream Mapping

 According to Womack and Jones, the


authors of the book Lean Thinking,
management must change their focus
– From:
» departments
» functions
» firms
» existing assets and technologies
– To:
» the value stream for specific products

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

Womack and Jones’ Five-Step Approach


was followed by many:
1. Find a change agent (how about you?)
2. Find a sensei (a teacher)
3. Seize or create a crisis
But most jumped from Step Three to Step
Five
5. Pick something and get started
And skipped Step Four
4. Map your value streams
Value Streams – Mapping –February 4, 2003
Value Stream Mapping

Many Have Left Out


Flow Kaizen

 This leads to
This leads to isolated
isolated improvement
improvement efforts
efforts
that
that do
do not
not lead
lead to
to aa total
total system
system improvement
improvement

 “Random Acts of Goodness”


“Random Acts of Goodness”

Value Streams – Mapping –February 4, 2003


Why focus on Flow?
 Understanding and managing manufacturing
from a flow based perspective lends itself to a more
comprehensive approach to the identification and
elimination of waste
 There is a direct link between flow and cost

Elimination Improved
of Waste = Flow

Improved Decreased
Flow = Cost

Decreased New Business


Cost =
Sustainable Profits

Value Streams – Mapping –February 4, 2003


Value Streams and Mapping
Some Lessons Learned
Techniques System Philosophy
 Random use of the tools Pull
Level
Scheduling
Process
is not enough. Capability Systems
Small
Lots
Reduction
of Standard
 The tools must comprise a Variation Operation
s
Lean
system to give customers Transportation Process
Systems
Lead Time
Reduction
what they want, when they Flow Error
Layout Proofing
want it, with minimum waste. Quick
Set- WPO
up PM

 Focus on flow to create a Containerization Employee


Involvement

system.
Management must lead the design
and introduction of lean value streams.
Value Streams – Mapping –February 4, 2003
What is a Value Stream?

A Value Stream is all the actions (both value added


and non-value added) required to bring a product to
the customer.

It is:

 “Big Picture”, not individual processes

 Improving the whole, not just optimizing


the parts

Value Streams – Mapping –February 4, 2003


Value Stream Model

SITE PLAN
Traditional Process
SUPPLIERS Departments CUSTOMERS
11 22 33 44
Materials Molding Trim Assembly Packing
Air Ducts
Value Stream Owner Bottles

Value Stream Owner Tanks


Value Stream Owner Resonators
ENTERPRISE
Value Streams – Mapping –February 4, 2003
Value Stream Organization
President
President

Business Line Teams


Functional Teams

Functional
Excellence

Value Stream
Management

Questions for Lean Leaders


1. What are you doing to ensure that your function supports
the Value Streams?
2. What are you doing to make your own function Lean?

Value Streams – Mapping –February 4, 2003


Three Types of Value Streams

Concept to Launch
VALUE STREAM

Research Engineering Production

Concept New Product


Raw Material to Finished Product
VALUE STREAM

PROCESS PROCESS PROCESS

Stamping Welding Assembly


Cell

Raw Finished
Material Product
Order to Cash
VALUE STREAM

Ordering Accounting Payables

Product Product Sale


Costing Value Streams – Mapping –February 4, 2003
Value Stream
Enterprise Value Stream
 A Value Stream includes all elements that occur
to a given product from inception through delivery
to the customer.

Requirements Design Raw Materials Parts Manufacturing

Assembly Plants Distribution Customer

Value Streams – Mapping –February 4, 2003


Value Stream
Plant Value Stream
 Typically we examine the value stream in a plant -
from raw materials to finished goods.

VALUE STREAM
Stamping Process Machining Process Assembly Process
ASSEMBLY
Layout

Raw Finished
Material Product

VSM methods are also used to


map business processes

Value Streams – Mapping –February 4, 2003


What is a Value Stream Map?

A visual representation of every process


in the material and information flow of a
product’s path from customer to supplier.

Value Streams – Mapping –February 4, 2003


A Value Stream Map is a:

 Communication tool

 Production tool

 Business planning tool

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

 Helps you See Flow, Identify Waste, and


develop a Lean Value Stream.

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

 Value Stream Mapping (VSM) is a hands on


process that uses icons to create a graphical
representation of flow.

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

Value Stream Mapping


Uses Goals
• Highlights Sources • Link Individual
of Waste Processes to their
Customer(s) by
• Emphasizes Material Continuous Flow or Pull
and Information Flow • Each Process Produces
only what its Customer
needs when they need it

Strategy
• Prioritizes Application of DMS Interdependent Elements
Value Streams – Mapping –February 4, 2003
Why Value Stream Map?

 It helps you to visualize more  It ties together lean


than just the single-process concepts and
level. You can see the flow.
techniques which helps
 It helps you see more than avoid random
waste. Mapping helps you to application.
see the sources of waste in
your value stream.  It shows the linkage
 It provides a common between information and
language for talking about a material flow.
process.
 It makes decisions about the
 It becomes a blueprint
flow apparent, so you may for implementation.
discuss them.

Value Streams – Mapping –February 4, 2003


Why do it?
Implementation without a plan will lead to disaster
VP Performance

Clinic Manager

A Value Stream Map is


Clinic Clinic
Regional Supply Performance
Supplies
Supply Manager
Forecast
Clinic

a simple visual tool that


Performance
Syringes

Frequent
Delivery Billing

helps you see the flow, X Ray


Film
Off-line
Operation
Compile data from

find the waste and


Admitting Blood Draw X Ray Doctor Review patient records

FIFO FIFO FIFO

develop an improved
Log Time In Draw Blood Take X Ray Review Blood
Stage for Blood Verify Results Verify Results Review X Ray
Pull patients to Retake if Error Retake if Error Log Time Out
Level Schedule Record Value Record Value C/T 2 Minutes
C/T 3 Minutes C/T 2.5 Minutes C/T 2.5 Minutes

process. Provide arrival windows for


patients to minimize waiting

3 Min 2.5 Min 2.5 Min 2 Min


LEGEND:
(process time) 2 Min (process time) 3 Min (process time) 3 Min (review time)
Electronic
(minimal wait) (minimal wait) (minimal wait)
Physical Flow
TPCT: 18 Minutes
Feedback
Considerably reduced
through improved flow

96% Improvement in TPCT

Eyes for Waste . . .


. . . Eyes for Flow
Value Streams – Mapping –February 4, 2003
Value Stream Mapping Process

Identify
Value Stream Specific process / product family

Current State Understand how the work


Drawing site currently operates

Identify improvement opportunities


Future-State
Drawing
Design a lean flow

Identify and resolve gaps

Action Plan Plan how to get there

Value Streams – Mapping –February 4, 2003


Value Stream Mapping Process
Map the Current State
VP Performance

Clinic Manager
Clinic Clinic
Regional Supply Performance
Supplies
Supply Manager
Requirements

Analyze the Current State


Clinic
Performance
Syringes

Delivery
Weekly Re Tests

and
X Ray
Film
I I I
Direct from A only if B empty In In In
Admitting Waiting RmA Blood Draw X Ray Doctor Review Billing
Hallway Hallway Hallway

Log Time In
Send to Waiting A
I
Fill Room First
Capacity 4 Patients
Waiting Rm B

I Draw Blood
Record Value
Take X Ray
Record Value
Review Blood
Review X Ray
Record Values
Log Time Out
Design the Future State
Stop if “A” is Full Fill Room Next C/T 12 Minutes C/T 13 Minutes Retest if Needed C/T 18 Minutes
C/T 10 Minutes Capacity 4 Patients FTQ 50% FTQ 50% C/T 5 Minutes VP Performance

People
Overflow to B
Dual Path I Clinic Manager
Random Waiting Retests Clinic
In Clinic
Arrivals X Ray Hallway Blood Draw
Supplies Regional Supply Performance
Supply Manager
Lost Forecast
NO Patients 7+ Hours Clinic
LEGEND: Performance
FIFO ! Take X Ray Draw Blood Low Machine Syringes
Electronic TPCT: 423 Minutes
Physical Flow Record Value Record Value Reliability Unknown due to extreme
Feedback C/T 12 Minutes C/T 13 Minutes variability of data Frequent
FTQ 50% FTQ 50% Delivery Billing

10 Min 5 Min 12 Min 13 Min 5 Min 18 Min X Ray Off-line


(process time) 120 Min (Transfer A to B) 40 Min (process time) 60 Min (process time) 50 Min (review time) 90 Min (process time) Film Operation
(avg. wait in “A”) (avg. wait in “B”) (avg. wait) (avg. wait) (avg. wait)
Compile data from
Admitting Blood Draw X Ray Doctor Review patient records

FIFO FIFO FIFO

Log Time In Draw Blood Take X Ray Review Blood


Stage for Blood Verify Results Verify Results Review X Ray
Pull patients to Retake if Error Retake if Error Log Time Out
Level Schedule Record Value Record Value C/T 2 Minutes
C/T 3 Minutes C/T 2.5 Minutes C/T 2.5 Minutes
Provide arrival windows for
patients to minimize waiting

3 Min 2.5 Min 2.5 Min 2 Min


LEGEND:
(process time) 2 Min (process time) 3 Min (process time) 3 Min (review time)
Electronic
(minimal wait) (minimal wait) (minimal wait)
Physical Flow TPCT: 18 Minutes
Feedback
Considerably reduced
through improved flow

96% Improvement in TPCT

Action Item Responsible

Create an
- - - 2001 - - - - - - 2002 - - -
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Improve X Ray Equipment Reliability Sherry Wilson (Med-Tech)
Improve Blood Draw Process Vlad

Implementation Plan Technician Training - Verify Test Results


Implement Use of Patient Record as Data Log
Dr. Choi
Joe Packer (Billing)

and execute it !
Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly)
Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL)
Develop Level Schedule for Patient Arrival Ed Case (Admitting)

Value Streams – Mapping –February 4, 2003


VSM Current State
The Steps
Step 1: Select a product family
Step 2: Form a team
Step 3: Understand customer demand
Step 4: Map the process flow
Step 5: Map the material flow
Step 6: Map the information flow
Step 7: Calculate Total Product cycle time
Step 8: Detail off-line activities (optional)
Value Streams – Mapping –February 4, 2003
VSM Current State
Form a Team
 Select a cross-functional team
– Select team members
familiar with the process Engineering
Sensei
– Make sure the team is
trained to use VSM
Production
Manufacturing Control
 Designate a Champion Cross Functional
Team
(typically a line manager)
Purchasing
Financial

Leadership

This step is critical to insure


successful implementation

Value Streams – Mapping –February 4, 2003


VSM Current State
Understand customer demand
 Sources for customer data
– Plan for Every Part (PFEP)
– Industrial Engineering budgeted volumes
CUSTOMER
– Production Control forecasts
» Analyze variation (daily, weekly,
monthly…)
– Production history
Volume Info:
» Analyze variation (daily, weekly, 20,000 pcs/month
monthly…) Std. pack = 300
– Sales information databases pcs
2 shifts
» Product changes, new business Takt = 54s
opportunities

Value Streams – Mapping –February 4, 2003


Current State
Data Box

 Tailor the
data box for
your plants
ox
needs.
a B
at  The data
D box should
be open
ended to
allow for
additional
attributes.

Value Streams – Mapping –February 4, 2003


Data Collection

 A Value Stream Map provides a high level picture


so absolute precision is not required.
– It is necessary, however, that the information at least be
directionally correct.

For Example:
– Don’t spend excess time to
determine if uptime is 82% or 82.8%.

– Do spend time to identify specific


areas where uptime impacts the flow
of the value stream.
Is uptime 80% or 65%?
Value Streams – Mapping –February 4, 2003
Data Collection
Attribute Data to Collect

 Shipping/Receiving  Work-in-process
schedules inventory
 Pack sizes at each  Overtime per week
process
 Demand rates by  Process cycle time
process (Takt Time)  Number of product
 Working hours and variations at each step
breaks
 Scrap  Batch (lot) sizes
 Inventory Points
(location & size)  Rework  Changeover time
 How Operations are  Changeover
 Downtime
scheduled frequency
Value Streams – Mapping –February 4, 2003
Data Collection
Identify Opportunities for Improvement

?
Value Streams – Mapping –February 4, 2003
VSM Current State
Map the Process Flow
 Collect data from the production floor CUSTOMER

STAMPING Volume Info:


20,000 pcs/month
Std. pack = 300

Include all output from


pcs2 shifts
Takt = 54s

a process so you can


identify bottlenecks.
Takt = 5s
STAMPING WELDING ASSEMBLY FINISHED GOODS

2 Shifts Layout

C/O = 4 hours
Takt = 5s Takt = 8s Takt = 12s 1 Shift
5% Downtime 2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs

2 Presses 5% Downtime 2% Scrap/Rework 10% Downtime/


Scrap/Rework
2 Presses 20% Downtime
C/O = 25 min
C/T = 2s C/T = 2s
WIP = 5,000 pcs
WIP = 1,500 pcs
7 Operators

WIP = 5,000pcs
UPTIME
SCRAP
CHANGEOVER

Value Streams – Mapping –February 4, 2003


VSM Current State
Map the Process Flow
 Collect data from the production floor CUSTOMER

STAMPING Volume Info:


20,000 pcs/month
Std. pack = 300

Include all output from


pcs2 shifts
Takt = 54s

a process so you can


identify bottlenecks.
Takt = 5s
STAMPING WELDING ASSEMBLY FINISHED GOODS

2 Shifts Layout

C/O = 4 hours
Takt = 5s Takt = 8s Takt = 12s 1 Shift
5% Downtime 2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs

2 Presses 5% Downtime 2% Scrap/Rework 10% Downtime/


Scrap/Rework
2 Presses 20% Downtime
C/O = 25 min
C/T = 2s C/T = 2s
WIP = 5,000 pcs
WIP = 1,500 pcs
7 Operators

WIP = 5,000pcs
UPTIME
SCRAP
CHANGEOVER

Value Streams – Mapping –February 4, 2003


VSM Current State
Map the Material Flow
 Use icons to show push or pull CUSTOMER

Steel Supplier

Include suppliers of
Volume Info:
20,000 pcs/month
Std. pack = 300

key components.
pcs2 shifts
Takt = 54s

Mon &
Wed

1 time
daily

I STAMPING I WELDING I ASSEMBLY I FINISHED GOODS

Steel 10,000 pcs 2,000 pcs Layout 1,200 pcs


4 days 10 days 2 days 1.2 days

Takt = 5s Takt = 8s Takt = 12s 1 Shift


2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs
5% Downtime 2% Scrap/Rework 10% Downtime/
2 Presses 20% Downtime Scrap/Rework
C/O = 25 min
C/T = 2s WIP = 1,500 pcs
7 Operators
WIP = 5,000 pcs
UPTIME
SCRAP
CHANGEOVER

Value Streams – Mapping –February 4, 2003


VSM Current State
Map the Material Flow
 Use icons to show push or pull CUSTOMER

Steel Supplier

Include suppliers of
Volume Info:
20,000 pcs/month
Std. pack = 300

key components.
pcs2 shifts
Takt = 54s

Mon &
Wed

1 time
daily

I STAMPING I WELDING I ASSEMBLY I FINISHED GOODS

Steel 10,000 pcs 2,000 pcs Layout 1,200 pcs


4 days 10 days 2 days 1.2 days

Takt = 5s Takt = 8s Takt = 12s 1 Shift


2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs
5% Downtime 2% Scrap/Rework 10% Downtime/
2 Presses 20% Downtime Scrap/Rework
C/O = 25 min
C/T = 2s WIP = 1,500 pcs
7 Operators
WIP = 5,000 pcs
UPTIME
SCRAP
CHANGEOVER

Value Streams – Mapping –February 4, 2003


VSM Current State
Map the Information Flow
There are many information sources
FIND THEM MRP
PC&L Weekly
Order CUSTOMER

Weekly
Order 6 Week
MSS
Steel Supplier Rolling
Forecast
Volume Info:
6 Week 20,000 pcs/month
Rolling Std. pack = 300
Weekly Build Daily Ship
Forecast
Schedule Schedule pcs2 shifts
Takt = 54s

Mon &
Wed

1 time
daily

I STAMPING I WELDING I ASSEMBLY I FINISHED GOODS

Steel 10,000 pcs 2,000 pcs Layout 1,200 pcs


4 days 10 days 2 days 1.2 days

Takt = 5s Takt = 8s Takt = 12s 1 Shift


2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs
5% Downtime 2% Scrap/Rework 10% Downtime/
2 Presses 20% Downtime Scrap/Rework
C/O = 25 min
C/T = 2s WIP = 1,500 pcs
7 Operators
WIP = 5,000 pcs
UPTIME
SCRAP
CHANGEOVER

Value Streams – Mapping –February 4, 2003


VSM Current State
Map the Information Flow
There are many information sources
FIND THEM MRP
PC&L Weekly
Order CUSTOMER

Weekly
Order 6 Week
MSS
Steel Supplier Rolling
Forecast
Volume Info:
6 Week 20,000 pcs/month
Rolling Std. pack = 300
Weekly Build Daily Ship
Forecast
Schedule Schedule pcs2 shifts
Takt = 54s

Mon &
Wed

1 time
daily

I STAMPING I WELDING I ASSEMBLY I FINISHED GOODS

Steel 10,000 pcs 2,000 pcs Layout 1,200 pcs


4 days 10 days 2 days 1.2 days

Takt = 5s Takt = 8s Takt = 12s 1 Shift


2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs
5% Downtime 2% Scrap/Rework 10% Downtime/
2 Presses 20% Downtime Scrap/Rework
C/O = 25 min
C/T = 2s WIP = 1,500 pcs
7 Operators
WIP = 5,000 pcs
UPTIME
SCRAP
CHANGEOVER

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

Total Product Cycle Time Metrics


 Upper line is Production Lead Time measured in days or
hours
– Production Lead Time = Inventory Quantity  Daily Customer Requirement

 Lower line is Process Time measured in minutes or seconds

 Add Production Lead Time and significant Process Times to


estimate Total Product Cycle Time
– Total time for one part to make its way from raw material as received to
finished product shipped to customer
– Total time dock to dock

 Add Process Times to determine the Value-Added Time


Value Streams – Mapping –February 4, 2003
VSM Current State
Calculate Total Product cycle time
PC&L Weekly
Order CUSTOMER
MRP
Weekly
Order 6 Week
MSS
Steel Supplier Rolling
Forecast
Volume Info:
6 Week 20,000 pcs/month
Rolling
Weekly Build Daily Ship Std. pack = 300
Forecast
Schedule Schedule pcs 2 shifts
Takt = 54s

Mon &
Wed

1 time
daily

I STAMPING I WELDING I ASSEMBLY I FINISHED GOODS

Layout
Steel 10,000 pcs 2,000 pcs 1,200 pcs
4 days 10 days 2 days 1.2 days

Takt = 5s Takt = 8s Takt = 12s 1 Shift


2 Shifts 4 Operators C/T = 11s Overtime = 4hr/d
C/O = 4 hours C/T = 7s WIP = 600 pcs
5% Downtime 2% Scrap/Rework 10% Downtime/
2 Presses 20% Downtime Scrap/Rework
C/O = 25 min
C/T = 2s WIP = 1,500 pcs
7 Operators
WIP = 5,000 pcs
UPTIME
SCRAP
CHANGEOVER

Inventory Time 4 days 10 days 2 days 1.2 days


Processing Time 5 days 1.5 days .6 days TPc/t = 24.3 days

Figure IG-2-F: Total Product Cycle Time

Value Streams – Mapping –February 4, 2003


VSM Current State
Detail Off-line Activities (optional)
 Useful when a critical process or activity impacts
the value stream.
– Examples: die change; trades response.
STAMPING

Takt = 5s
Fork Truck
3 Shifts
(movement
Die Checklist & C/O = 15 min
on demand)
Yellow Tag Status
5% Downtime
4 presses
Daily Priorities
(verbal communication) C/T = 4s
WIP = 240 pcs

Fork Truck
1 time per
day

DIE RECEIVING DIE BENCH DIE SHIPPING

1 Shift 3 Shifts 1 Shift


I I
C/T = 40 min C/T = 40 hrs C/T = 10 min
1 operators Dies 12 operators Dies 1 operator
12 Shifts 2 Shifts

Value Streams – Mapping –February 4, 2003


Data Collection
What is Takt Time?
Takt Time is the Cycle Rate at which production
should run to meet customer demand

Scheduled Run Time


Customer Requirements

27,000 sec
460 pieces = 59 seconds 59 sec.
59 sec.

59 sec.

The idea is to synchronize the pace


of production with the customer.

Value Streams – Mapping –February 4, 2003


Data Collection
Operator Balancing to Takt Time

Operators C/T
Balanced
Not Balanced
TAKT Step 13
TIME
Step 4 Step 8 Step 12
Step 17
Step 3 Step 7 Step 11
TIME Step 16
in seconds
Step 2 Step 10
Step 6 Step 15
Step 1 Step 9
Step 5 Step 14

OP 1 OP 2 OP 3 OP 4

Value Streams – Mapping –February 4, 2003


Value Stream Mapping
 Value Stream maps are drawn using icons x
di
to represent the material,information and ppe
n
A
process flows of the value stream Mapping
– There are many defined icons (see appendix) Icons
– Icons specific to your operation may be added as long as
they are visually descriptive and understood by the entire
operation Weldon Inc.
Current State
May 24, 2000

10 days 7.6 days 1.8 days 2.6 days 2 days 4.5days


Production Lead Time = 28.5 days
1 sec 38 sec 45 sec 61 sec 39 sec Processing Time = 184 seconds

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

Value Stream Mapping


is a language
that must be practiced

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

Mapping Tips
 Always collect current state information while walking
along the pathway of material and information flows
yourself.
 Begin with a quick overview to identify main processes;
then go back and gather data.
 Begin at the customer and work backwards.
 Do not rely on information and timing you do not
personally obtain.
 Map the whole value stream yourself.
 Always draw by hand, in pencil
Value Streams – Mapping –February 4, 2003
Value Stream Mapping
Required Tools

Scrap

Manufacturing Kaizen
Process Lightning
Burst

Outside
Buffer or
Source/
Safety Stock
Customer

Manual
Information Flow
Data Box

Electronic

I Information Flow

Inventory

Production Kanban

oTruck
oo
Shipment

Withdrawal Kanban

Finished
Goods to Customer

Push Arrow Signal Kanban

Supermarket Kanban Post

Value Streams – Mapping –February 4, 2003


Value Stream Mapping
Required Tools
Always draw by hand, in pencil!
 Can be done without delay. As you draw you will think of
further information you need.

 Can do it yourself, which is key to understanding the


material and information flows.

 You focus on understanding the flows not the computer.


The point of value stream mapping is not the map, but
understanding the flow of material and information.

 Having to manually fine-tune your drawings will improve


your mapping ability.
Value Streams – Mapping –February 4, 2003
Value Stream Mapping

HANDOUT

Value Streams – Mapping –February 4, 2003


Activity: Acme Stamping

Value Streams – Mapping –February 4, 2003


Acme Stamping Activity

 Acme Stamping produces components for vehicle


assembly plants. This case study concerns one
product family: a stamped-steel steering bracket.
This product is made in two versions: one for left-
side drive cars and one for right-side drive.
These components are sent to the State Street
Vehicle Assembly Plant (the customer).

Value Streams – Mapping –February 4, 2003


Value Stream Mapping

Approximate
Task Total Time:
20 min.

 Draw the current state Value Stream Map for


Acme Stamping including Metrics

Value Streams – Mapping –February 4, 2003


Steering Brackets Current State June 6, 2000

State Street

18,400 pcs/mo
-12,000 “LH”
- 6,400 “RH”
Tray = 20 pieces
2 shifts
Steering Brackets Current State June 6, 2000

State Street

18,400 pcs/mo
-12,000 “LH”
- 6,400 “RH”
Tray = 20 pieces
2 shifts

Stamping S. Weld #1
S. Weld #2 Assembly #1 Assembly #2 Shipping
200 Ton
Staging
C/T = 1 second
C/T = 38 seconds C/T = 45 seconds C/T = 61 seconds
C/O = 1 hour C/O = 10 minutes C/T = 39 seconds
C/O = 10 minutes C/O - 0
Uptime = 85% Uptime = 100% C/0 = 0
Uptime =80% Uptime = 100%
2 shifts 2 shifts 2 shifts Uptime = 100%
27,000 sec. avail. 27,000 sec.avail. 2 shifts
27,000 sec. avail. 2 shifts
27,000 sec. avail.
27,000 sec. avail.
Steering Brackets Current State June 6, 2000

State Street
Michigan Steel .

18,400 pcs/mo
-12,000 “LH”
- 6,400 “RH”
Tray = 20 pieces
2 shifts

Stamping S. Weld #1
S. Weld #2 Assembly #1 Assembly #2 Shipping
200 Ton
Staging
C/T = 1 second
C/T = 38 seconds C/T = 45 seconds C/T = 61 seconds
C/O = 1 hour C/O = 10 minutes C/T = 39 seconds
C/O = 10 minutes C/O - 0
Uptime = 85% Uptime = 100% C/0 = 0
Uptime =80% Uptime = 100%
2 shifts 2 shifts 2 shifts Uptime = 100%
27,000 sec. avail. 27,000 sec.avail. 2 shifts
27,000 sec. avail. 2 shifts
27,000 sec. avail.
27,000 sec. avail.
Steering Brackets Current State June 6, 2000

State Street
Michigan Steel .

18,400 pcs/mo
-12,000 “LH”
- 6,400 “RH”
Tray = 20 pieces
2 shifts

Tues &
Thurs

1 x Daily

I
Coils
10 days

Stamping S. Weld #1
S. Weld #2 Assembly #1 Assembly #2 Shipping
200 Ton I I I I I
1100 LH
Staging
4600 LH 1600 LH 1200 LH 2700 LH
C/T = 1 second 2400RH 600 RH 850 RH
C/T = 38 seconds C/T = 45 seconds C/T = 61 seconds 640 RH 1440 RH
C/O = 1 hour C/O = 10 minutes C/T = 39 seconds
C/O = 10 minutes C/O - 0
Uptime = 85% Uptime = 100% C/0 = 0
Uptime =80% Uptime = 100%
2 shifts 2 shifts 2 shifts Uptime = 100%
27,000 sec. avail. 27,000 sec.avail. 2 shifts
27,000 sec. avail. 2 shifts
27,000 sec. avail.
27,000 sec. avail.
Steering Brackets Current State June 6, 2000
Production
6-week 30/60/90 day
Control
Forecast Forecast
State Street
Michigan Steel . Daily
Weekly MRP
Order
Fax
18,400 pcs/mo
Weekly Schedule -12,000 “LH”
- 6,400 “RH”
Tray = 20 pieces
2 shifts

Tues &
Thurs

Daily Ship
schedule
1 x Daily

I
Coils
10 days

Stamping S. Weld #1
S. Weld #2 Assembly #1 Assembly #2 Shipping
200 Ton I I I I
I
4600 LH 1100 LH Staging
1600 LH 1200 LH 2700 LH
C/T = 1 second 2400RH C/T = 38 seconds 600 RH 850 RH
C/O = 10 C/T = 45 seconds C/T = 61 seconds 640 RH 1440 RH
C/O = 1 hour C/T = 39 seconds
minutes C/O = 10 minutes C/O - 0
Uptime = 85% C/0 = 0
Uptime = 100% Uptime =80% Uptime = 100%
2 shifts 2 shifts Uptime = 100%
2 shifts 2 shifts
27,000 sec. avail. 27,000 sec.avail. 27,000 sec. avail. 2 shifts
27,000 sec. avail.
27,000 sec. avail.
10 days 7.6 days 1.8 days 2.6 days 2 days 4.5 days
1 second 38 seconds 45 seconds 61 seconds 39 seconds Production Lead Time = 28.5 Days
Value-added Time = 184 seconds
Value Stream Mapping
 Waste is anything that does not directly add value
to the final product or contribute to the products
transformation.
 Waste only adds time and cost,
no value.
 Waste is the reason that Processing Correction
product flow stops and is
Over-
the cause for non Inventory TYPES Production
OF
competitiveness. WASTE
 There are seven basic Waiting Motion
types of waste known as Material
COMMWIP
Movement

Value Streams – Mapping –February 4, 2003


Standardization & Waste
 The 7 Wastes
 Waste is any element that adds no value
– Correction
– Overproduction
to the final product
 Waste is non value added (only adds
– Movement of Material
– Motion cost and time)
 Waste is a symptom of problems in a
– Waiting
– Inventory value stream
– Processing
 Contributors to Waste
– Unevenness
– Overburden
– Current Process Methods
 Ways to Eliminate Waste
– Simplify
– Combine
– Eliminate Solution:
Find and address the causes of waste !
Value Streams – Mapping –February 4, 2003
Other Common Waste

 Searching or waiting for information


or material

 Miscommunication

 Lack of Consistent Standards

 Persistent misconception
– Stubbornness

 Lack of training

Waste

Value Streams – Mapping –February 4, 2003


Methodology

Underlying concept: …through the identification and


Implement the best possible, elimination of:
lean combination of the 3M’s:

Waste - Fluctuation - Unreasonable Practices

...by entering the never ending cycle


…focusing on the 3S’s (SSStip): of the 5 KAIZEN STEPS to become a
lean, agile enterprise.

5. Kaizen-Layout
4. Kaizen-Equipment
3. Kaizen-Flow & Process
2. Standardization
1. OBSERVATION

Value Streams – Mapping –February 4, 2003


Observation

 Our observations will help to pinpoint which DMS


Interdependent Element can provide guidance for
the standardization step.

Observe Standardize Kaizen

 Poor work distribution Interdependent Elements


 Employees not engaged  Flow Manufacturing On-going
 Unorganized and/or dirty System Design observations
work areas  Employee Environment & to identify
Problem solving
 Mistakes and Errors Involvement waste and
 Long Delays  Workplace Organization continuous and standardization
 Multiple Approval Levels  Quality improvement
 High inventories  Operational Availability opportunities.
 Material Movement

Value Streams – Mapping –February 4, 2003


Opportunities for Improvement
Problem Solving
 Problem Solving is a key ingredient of a
successful company’s culture and must:
– Become part of every employee’s daily routine.
– Focus on root causes.
– Be supported by continuous follow-up.

“No Problem”
IS
Problem Hiding problems
will undermine
the system

Develop “eyes for waste”


Value Streams – Mapping –February 4, 2003
Opportunities for Improvement

 Standardized work
– Documented (common) process
– Delegation of authority

 Workplace organization
– Visual controls

 Information databases

 Cross-functional teams

Value Streams – Mapping –February 4, 2003


Opportunities for Improvement
Standardized Work Instructions
 Especially needed for training of new-hires and
transferred employees

 Allows the organization to retain knowledge and


best practices
SPECIAL ADVERTISEMENT FOR THE
DMS EMPLOYEE ENVIRONMENT
AND INVOLVEMENT MANUAL
 Includes check sheets
and guidelines What is Standardized Work?

Standardized Work are the proper


methods and procedures required to
perform a job task. Operators are trained
to follow these methods and management
audits the process and provides re-
training when necessary.

Operator Certification ensures that


operators have the knowledge, skills and
abilities to perform these tasks.

Value Streams – Mapping –February 4, 2003


Opportunities for Improvement
Workplace Organization - Visual Controls
 Strict workplace organization
– Especially for common areas

Where in the heck is


the hammer?

Tool Storage

Value Streams – Mapping –February 4, 2003


Opportunities for Improvement
Workplace Organization - Visual Controls
 Strict workplace organization
– Especially for common areas

Here’s
the hammer?

Tool Storage

Value Streams – Mapping –February 4, 2003


Opportunities for Improvement
Supermarkets & Databases
 Similar to a supermarket for parts - data can be kept up to date and
pulled when needed

Refresh and verify data Customer


Quote
Sales and
Operations
Marketing

FIFO
– Open capacity for products and processes
– Cost of capacity

Value Streams – Mapping –February 4, 2003


Value Stream Mapping
Summary

 Simple, Visual Brainstorming Process


 Link Process, Material and Information Flows
 Provide a Blueprint for Implementation
– Can be used to create a single (common) process
 Provide a Common Language
– Easy to share between regions, divisions, countries

Value Streams – Mapping –February 4, 2003


Summary
Course Objectives
 Provide the means to see information, material,
and process flows.
 Support prioritization of continuous improvement
activity.
 Provide the basis for improving Total Product
cycle time.

AND...
Waste
Value Streams – Mapping –February 4, 2003

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