Value Stream Mapping – Course Objectives

OBJECTIVES: At the end of the course the participants will learn the following:

• Tool kit required to make a Current State and Desired State VSM
• Material and Information Flow Icons
• Guidelines to create a Lean Value Stream and enhance flow
• Key Questions to ask before creating the desired state
• You will have the necessary skills required to make a VSM for your process
and identify waste/opportunities to improve the current state

METHODOLOGY: The participants will learn this course through the following
ways:
• Lectures
• Case Approach for practical application
Value Add, Essential Non Value Add and Non Value Add VA, ENVA, NVA

Description of activity Definition

Value Add Change in the fit, form or function for which the
customer is willing to pay.
This is a kind of processing that changes the shape,
form and character of the product of service
Essential Non-Value Add Something that is currently required by the system,
(Type II Muda) but does not create any value
(Incidental Work)
Non-Value Add Waste. Something that does not create any value e.g.
(Type I Muda) defects ( not needed at all)

• Value is defined by the customer .Anything value add is what the customer is
willing to pay for. Waste is what customer is unwilling to pay for.

• Understanding concept of value is critical to eliminating waste from process.

Value Add, Essential Non Value Add and Non Value Add - Example VA, ENVA, NVA

A drill machine drills the holes on

the circular plate as shown

Drill Machine Machined part

Essential Non Value add Non Value add is the

Value Add is the actual
or Incidental work Defects, waiting time of
drilling process that
Is the downward motion operator,
Produces the holes. That
of the drill to center unnecessary
changes the form
The drill before the transportation
Of the part to be
drilling process
machined
Value Add, Essential Non Value Add and Non Value Add - Example VA, ENVA, NVA

Value Add : Something that changes the fit , form

or function of the product of service

Essential Non Value Add : Something that does

not add value, but is required

• Walking to fetch the part

• Removing packing paper from supplier parts
Work • Removing parts in small quantity from large
Motion pallet
• Handling a push button already in position

NVA : Something that is not needed at all

There is a difference • Excessive inventory or WIP between stations
between working • back and forth transportation of material
and motion • Operator Waiting on parts
• Transportation that is meaningless
Value Stream Mapping - Process

Step 3 : Ask Key questions to

the current state process and
Map the desired state process
Step 1: Choose a clearly representing
product from the aspirational KPIs
product family

Choose a Draw the "As Is" Draw the "To Implementation

product family State map Be" State Map plan

Step 2 : Map the current macro

process whilst indicating the
current performance of critical Key
Performance indices for each
process. Step 4 : Create an Implementation plan to
bridge the gap between current state and
Future State. The implementation deploys
series of projects that give incremental
benefits by bridging the gap between the
two states
Value Stream Mapping - Purpose

• Develop a common understanding of the current process

- The relationship of process steps
- A true picture of the process

• Establish a Baseline to measure improvements

• Define a desired state for the current process

• Design an implementation plan to bridge the gap between the

current state and the desired state

• Establish common objectives across leadership levels on the floor

• Facilitate the elimination of waste across the value stream

Value Stream Mapping – KPI’s generally used to describe the current state

Takt Time = Available Time per day /Customer Demand per day
If the customer demand in eight hours of working time is 480 units then takt time is 1 minute Takt time
signifies that each units should come out of the production line in that much time which in this case is
sixty seconds

Cycle Time – Time it takes at each work-station to produce one unit in a work cycle in a continuous flow
processing.
We can meet the customer demand if the cycle is less than the takt time

Changeover time (C/O) – Time it takes to changeover from last product of previous batch to first
product of new batch

FTT % - Percentage of goods that pass through a workstation produced right first time.

Machine uptime % - The % of time the machine is running during a shift.

Inventory – The Work in progress (units) at raw material and Finished goods, between workstations and
within workstations.

Lead time - Time it takes for a product to traverse from raw material to finished goods.
Product Family Matrix

Process Steps that may include equipment to make a • Product Family

product Matrix Maps the
products and
corresponding
1 2 3 4 5 6 7 8 steps that
are required to
P A X X X X X X make that product.
R
• Tabulate the steps
O B X X X X X X that are common
D and unique
U C X X X X X X between various
C products
T
D X X X X X X • Since the customer
S
is only looking to
E X X X X X X buy a product,
identify the
product from the
F X X X X X X product family
matrix
VSM Icons

MATERIAL FLOW ICONS

3X per
day or
week
ABC FIFO Supermarket
Corp.
Process Finished goods First-In-First-Out
Supplier / Customer Push sent to the customer
Inventory Box Shipment by truck Sequence

C/T – 40
seconds

FTT % - 90

Uptime – 85 %

Move by C/0 - negligible

Boat Shipment
Pull Systems Forklift
Data Box

INFORMATION FLOW ICONS

Weekly Schedule

Manual Info Flow Electronic Info Flow Leveling of Load

Withdrawal Production
Kanban Kanban
Signal Kanban
Kanban Post

GENERAL ICONS

Kaizen Bursts Q
Quality
Buffer or Operator Problem
Safety Stock
Value Stream Mapping Tips

• Always collect information walking along the path of production yourself (both material as well
as electronic information)

• Get a sense of sequence of processes and conduct an entire end-to-end value stream walk

• Begin at shipping end and then work upstream along the production path

• Take a stop watch along with you and do not rely on standard times

• Map the entire value stream yourself

• Use pencil instead of a pen

ABC Stampings Case Study

ABC stamping plant produces variety of stampings for an Automotive OEM. To eliminate the waste in the production processes they constituted
a team of experts from Body, Paint and Assembly processes and also hired a Value Stream Mapping Consultant.

Production Processes

• Production processes for product family of Brackets (with nuts) involve a sequential flow from Body Shop, Paint Shop, Assembly

• The assembly line operates on Lean principles using a single piece flow

• One truck leaves the Stamping plant daily to OEM’s carrying 2000 parts

• Raw material in the form of rolls is purchased from well established suppliers

Customer Requirements

• 2000 Stamped parts (Brackets with nuts) per day

Work Time

• 20 days in a month

• 2 shift operation in all the production departments (Eight hours per shift)

• Two 15 mins tea breaks and one 30 mins lunch break during a 8 hour shift

Production Control Department

• Receives 60 day forecast from the Automotive OEM’s and in turn issues a 4 week forecast to suppliers.

• Issues weekly build schedules to Assembly processes and daily shipping schedule to the shipping department
ABC Stampings Case Study

Process Information

The production sequence starts with body shop, followed by paint shop and end with Assembly shop

Body Shop

• Cycle time: 20 seconds

• Rejection: 10%

• Changeover time: negligible

• Machine uptime: 80%

Paint Shop

• Cycle time: 25 seconds

• Rejection: 4%

• Changeover time: negligible

• Machine uptime: 95%

• Inventory waiting to be processed before department: 2000 units

Assembly

• Cycle time: 20 seconds

• Rejection: 20%

• Changeover time: negligible

• Machine Uptime: 95%

• Inventory waiting to be processed before department: 2000 units

• Both Raw Material stores and the shipping departments carry 3 days worth of inventory respectively.
 AS – IS Value Stream Mapping - ABC Stampings Case Study

4 week forecast Production Control

60 day forecast
ABC Stamping Customer
Supplier
plant
Demand:
rial
ro m

2000 daily
le
Raw mate

u
ed
received f

ch
supplier

S Shipping
k ly Schedule
ee
W
1 x daily

Body Paint Assembly

2000 units
3 days 2000 units 3 days
Raw material C/T – 20 seconds C/T – 25 seconds C/T – 20 seconds Shipping Stock
stock Rejection – 10% Rejection – 4% Rejection – 20% VC % = 0.016%
C/O - Negligible C/O - Negligible C/O - Negligible
M/C Uptime – 80% M/C Uptime – 95% M/C Uptime – 95% Production
Lead time
3d 1d 1d 3d = 8 days +65s

20 seconds 25 seconds 20 seconds Value Add

time - 65 s
Key Questions to Ask before making the Future State Map for ABC Stampings

1. What is the Takt Time for ABC stampings?

Takt time = Available time per day / customer demand = 14 hrs / 2000 = (14x3600)/2000 = 25.2 secs

In order to identify bottlenecks we must first compute the net effective cycle time for each workstation as
follows:

KPI Body Paint Assembly

C/T 20 25 20
Rejection% 10 4 20
M/c uptime% 80 95 95
Factor 1.1 x 1.2 1.04 x 1.05 1.2 x 1.05
Net Effective =20x1.1x1.2= =25x1.04x1.0 =20x1.2x1.05
Cycle time(s) 26.4 s 5= 27.3s = 25.2 s

Workstations Body Shop and Paint shop are bottlenecks because the CT exceeds the Takt Time. However
the constraint is Paint as the output from Paint shop defines the overall production system output
Key Questions to Ask before making the Future State Map for ABC Stampings

2. Can we build a finished goods supermarket from where the customer can pull?

It is quite possible to do so, by deploying a replenishment pull system where the production system replenishes
what is shipped to the customer from the finished goods supermarket by using a Kanban System

3. Do we need buffer stocks in between departments to prevent overproduction and starving?

We can create a supermarket between body shop and paint shop and also between paint shop and assembly to
ensure that we only produce what the customer needs . We could also use a Kanban system to define
production priorities upstream.

4. Where do you wish to schedule your production?

We could schedule production at Assembly where more part numbers proliferate

Key Questions to Ask before making the Future State Map for ABC Stampings

5. How do you level your product mix at pacemaker process?

We could level the product mix at pacemaker i.e. assembly process by using a Heijunka box

6. What is the Value Creating % ?

Value Creating % = (VA Time/Process Lead time)X100% =( (65s / ((8d x 14hrs x 60 x 60)+65))*100 % = 0.016%

7. What process improvements can we think off to enhance our quality, reduce lead time and reduce cost?

Based on data and observations of the VSM:

a) Supermarkets can be created and Kanban system deployed to reduce stock between departments
b) Total Productive Maintenance technique to improve uptime on all workstations needs to be deployed
c) Efforts to reduce rejection on all workstations could be employed via implementation of tools like 5 why
analysis and 8D
d) Cycle time in Paint workstation can be reduced by using Kaizen techniques to reduce NVA and ENVA

Now that answer to key questions are clear, let us construct the future state map
 TO – BE Value Stream Mapping - ABC Stampings Case Study

2 week forecast Production Control

ABC Stamping Customer
Supplier
plant
Demand:
rial
ro m

2000 daily
Raw mate
received f
supplier

SUPERMARKET
SUPERMARKET 1 x daily

Body Paint Assembly

SUPERMARKET

1 days
Raw material ½ day ½ day 1.5 day
C/T – 20 seconds C/T – 20 seconds C/T – 20 seconds
stock Rejection – 3% Rejection – 2% Rejection – 5% 8D, 5WHY VC % = 0.034%
C/O - Negligible
TPM C/O - Negligible C/O - Negligible
KAIZEN
M/C Uptime – 95% M/C Uptime – 98% M/C Uptime – 98% Production
Lead time
0.5d 0.5d 1.5d = 3.5 days
1d
20 seconds 20 seconds 20 seconds Value Add
time - 60 s
Implementation Plan - ABC Stampings Case Study

Sr No Description Responsible Time

1 Create Supermarkets in Shipping Department (Finished Andy 1 month
goods supermarket)
2 Create Intermediary Supermarkets Sarah 1 month
3 Regularize the Kanban production system Elijah 1 month
4 Reduce Cycle time in paint shop to 20 seconds Dave 2months
5 Implement TPM on all machines Andy 4 months
6 Reduce Rejection using tools like 8D and 5 why analysis Trevor 3 months