4. Value Stream Map
A Value Stream Map (VSM) is a hand-drawn map that
helps people to see and understand process, material
and information flow through a value stream, from
start to finish.
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6. Elements of the VSM
Customer Demand
• What are the different product variants within this value
stream?
• Who are the different customers?
• What is the high, low and mean ordering
pattern? (Monthly/weekly/daily)
• How often do we deliver to this customer family?
• What is the takt time?
• Decide on which product variants to include for rest of VSM
analysis
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Customer
Part A = 1000/wk
Part B = 500/wk
Part C = 500/wk
(400 pcs/day)
7. Elements of the VSM
Manufacturing Process Flow
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• Mark processes that add value (not
departments, mark the difference)
• Identify metrics for each process (eg.
Cycle time, value-added time, lead
time, changeover losses, no. of
machines, operators, shifts, batch
sizes, scrap/rework, etc.)
8. Elements of the VSM
Material Flow
8
Tombstone
• Map the material flow along with frequencies
• Mark each location of inventory, with quantity
9. Elements of the VSM
Information Flow
9
Weekly Schedule
Production
Control
MRP
Daily Orders
30/60/90 Day
Forecasts
Weekly Fax
6 Week
Forecast
• What is the sequence of steps to process a customer order?
• How are the shop orders and purchase orders generated and distributed?
• Who gets them?
• How frequently?
• How are exceptions handled?
• How do we react to customer emergencies?
• How do we schedule production (i.e. How does the operator know what to build next)?
• Each process block on the VSM must be backed by a process flow chart with as much detail
as required by the process
• Processing times (for each step of information analysis or communication) and waiting
times (between information flow processes) must be measured
11. Elements of the VSM
Lead Time Bar
11
7 Days10
Days
4 Days 4.5 Days 7 Days 2.3 Days
120 Secs 360 Secs 65-73 Secs 120 Secs 62-68
Secs
Processing
Time
= 727-741 secs
Lead Time
= 34.8 days
Path 2
Path 1
Path 1 =
8+2+7+2.3+7 =26.3
Path 2 =
10+4+4.5+7+2.3+7=34.8
• Convert all inventory quantities into DOH
and mark processing times on the step
graph
• Add all DOH times to compute Non-value
added time. Add all cycle times to compute
Processing Time. The total of the two is lead
time