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Value Stream Mapping
A Simple Primer
The Story of Manufacturing
2
Beware the Jargonator!
3
Waste
Variation
Strain
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.
4
Current & Future States
5
Action Plan
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
6
Customer
Part A = 1000/wk
Part B = 500/wk
Part C = 500/wk
(400 pcs/day)
Elements of the VSM
Manufacturing Process Flow
7
• 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.)
Elements of the VSM
Material Flow
8
Tombstone
• Map the material flow along with frequencies
• Mark each location of inventory, with quantity
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
Elements of the VSM
Information Process Flow Chart
10
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
How much longer
are you going to
sit here?
Go draw me a
VSM!

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Value stream mapping - A Simple Primer

  • 1. Value Stream Mapping A Simple Primer
  • 2. The Story of Manufacturing 2
  • 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. 4
  • 5. Current & Future States 5 Action Plan
  • 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 6 Customer Part A = 1000/wk Part B = 500/wk Part C = 500/wk (400 pcs/day)
  • 7. Elements of the VSM Manufacturing Process Flow 7 • 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
  • 10. Elements of the VSM Information Process Flow Chart 10
  • 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
  • 12. How much longer are you going to sit here? Go draw me a VSM!