Sofia Albohaithi and Kostas Kefalakis, HILTI, October 2016

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Value Stream Mapping
October 2016

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Agenda
1. Introduction & Expectations
 Who are we? Who are you?
 Spotting Waste within the value chain- activity
2. Value Stream Mapping– The theory
 Overview of Value Stream: “Why VSM” ?
 Map process : “AS IS”
 Highlight weaknesses & improvement opportunities
3. Examples of Value Stream Optimization
 Example 1
 Example 2
4. Value Stream Mapping simulation
 Game

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Who are we?
Sofia Albohaithi
Lean Manager
Northern Europe
Kostas Kefalakis
Global Lean Manager

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Outcomes/ Expectations
Key expectations

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Ball game - 5 General rules
1. Create a process to pass over the ball within your team (team of min. 5)
2. You can‘t pass the ball to the person next to you
3. Everybody in your team must have had contact to the ball
4. The ball must return to the person who started with it
5. The ball must travel through the air
Kick-off round

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Waste can be divided into 7 (+1) types
Motion
Over processing/unsuitable methods
Transport/information transfer
Over information/production
Inventory
Defects
Waiting
Unused potential

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An image instead of words… what’s going wrong?
Functional Segmentation
(Task bundling/ specialization/ spatial
seperation/ department thinking)
Media breaks and
paper-based infos
Push Connections
(Lack of demand-orientation
and lack of coordination)
Big lots (Binder
tradition)
Serial Processing
(In large lots with many
interfaces)

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Uses and goals of value stream mapping (VSM)
Added value of using value stream mapping
 Holistic view
- Process mapping from a bird’s eye view
- Common process understanding
 Redesign the value stream
- Uncover weaknesses / potential
- Alignment with LEAN principles
- Restructuring the value chain
 Increasing competitiveness
- Reducing throughput time (TPT)
- Increasing performance level

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What is value and the value stream?
Value
This is the usage the customer is willing to pay for
Value creation is increasing the value from raw materials up to the end product
Value stream
Contains all activities that are necessary to bring one or more products from raw
materials into the form desired by the customer
Value creation steps
Customer
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Supplier
Final
assembly
Pre-
assembly
Mechanical
manufacturing

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Process step
1
Process step
2
Process step
3
Process step
4
Process step
x
Chain of effects of value stream mapping
Concentration of value generation
Reduction of throughput time (TPT)
Value Waste
Higher
quality
Better
service
Improved
flexibility
Smaller
stocks
Reduced
complexity
Lower
costs
Customer Company
Process optimization with the support of the tool value stream mapping
From analysis to optimization:

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Agenda
1. Introduction
 Who are we?
 Spotting Waste within the value chain- activity
2. Value Stream Mapping– The theory
 Overview of Value Stream: “Why VSM” ?
 Map process : “AS IS”
 Highlight weaknesses & improvement opportunities
3. Examples of Value Stream Optimization
 Example 1
 Example 2
4. Value Stream Mapping simulation
 Game tbc

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Systematic optimization of a value stream
Process structure on the way to the target value stream
Zero line in project
AS-IS
value stream
analysis
Value stream
TO-BE 1
(Implementation
step 1 of x)
Quick wins first!
Taking restrictions
into consideration
Green field approach
(free of restrictions)
Uncovering
weaknesses
detached
AS-IS
value stream
mapping
Value stream
VISION

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VSM workshop – Brown-paper approach

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The weakness analysis follows the AS-IS map

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Agenda
1. Introduction
 Who are we?
 Spotting Waste within the value chain- activity
2. Value Stream Mapping– The theory
 Overview of Value Stream: “Why VSM” ?
 Map process : “AS IS”
 Highlight weaknesses & improvement opportunities
3. Examples of Value Stream Optimization
 Example 1
 Example 2
4. Value Stream Mapping simulation
 Game tbc

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Product Development
Project overview Key Improvements
Potential Impact
• A product requires development loops
Development  Prototyping  Assembly  Test
• The average development loop time is 6 weeks
• Teams can go through 30 loops in one project
• Identified key value creation points
• Identified 26 issues/wastes
• Created 10 solutions & implemented 8
• Eliminated ‘throwing over the wall’
communication, rework & firefighting
• ~30% time saving per dev. loop
• Created a communication platform with
clear roles & responsibilities confirming
development loop target, timeline
responsibilities, outcomes & learnings
• Created smoother flow of development
loops by creating a concurrent schedule
BEFORE
AFTER
6 Weeks
4 Weeks

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Agenda
1. Introduction
 Who are we?
 Spotting Waste within the value chain- activity
2. Value Stream Mapping– The theory
 Overview of Value Stream: “Why VSM” ?
 Map process : “AS IS”
 Highlight weaknesses & improvement opportunities
3. Examples of Value Stream Optimization
 Example 1
 Example 2
4. Value Stream Mapping simulation
 Current VS future state VSM

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Value Stream Mapping Game
October 2016

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Game structure
Architects
Design
Engineers
Check
Builders
Build
Max Time:
45 Minutes

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Game Structure – Steps
• Step 1: Orientation Together you need to build a tower
• Step 2: Setup Split group into 3 teams, put separator pinboards in between each team – handout
instruction sheets to each team (next page)
• Step 3: Play Observe & time how long each process takes. Game ends
• Step 4: Video (map) Show video on how to map the process
• Step 5: Map Together the team maps the entire process
• Step 6: Video (waste) Show video on identifying wastes in processes
• Step 7: Waste Individually each person writes red post-its of wastes observed
• Step 8: Vision state Together discuss how to create vision state
• Step 9: Run game again (optional) Play game again in new state

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Architects – Instructions
• Responsibilities
1. Receiving customer requirements
2. Designing the Marshmallow Tower
3. Communicating your design specifications to the Engineering group
• Customer Requirements:
• Customer wants the tallest possible spaghetti tower with a Marshmallow on top
• Measurement starts from the ground up to the Marshmallow
• 0-30cm: Poor customer satisfaction
• 30-40cm: Average customer satisfaction
• 50-60cm: Good customer satisfaction
• 60+cm: Great customer satisfaction
• Material Budget:
• 20 pieces of spaghetti
• 1 meter/yard of string
• 1 meter/yard of tape
• 1 marshmallow
• Communication rules:
• You are allowed to communicate only via paper

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Engineers – Instructions
• Responsibilities
1. Receiving design specifications from Architects
2. Checking design against structural requirements (example below)
3. Creating instructions on how to build the marshmallow tower (for the builders)
4. Communicating instructions to the builders
• Structural Requirements:
• Minimum 2 spaghetti sticks are required per column (vertical spaghetti not horizontal spaghetti)
• Minimum 3 cm wide tape required to connect any two parts
• Structure is not allowed to have support structure apart from the ground (no taping to table legs or walls)
• Eg:
• Communication rules:
• You are allowed to communicate only via paper
• You can only start your communication with architects after they start communicating with you
1cm
tape
3cm
tape

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Builders – Instructions
• Responsibilities
1. Testing structural capability (Test budget: of 1 marshmallow 10 spaghetti sticks, 50cm tape, 50cm string)
2. Receiving building instructions from Engineers
3. Checking building design & instructions against building requirements (below)
4. Building the Marshmallow Tower as per instructions
• Building Requirements:
• When using 2 pieces of spaghetti together – You need to use tape to connect them in the middle (see diagram)
• You can build the tower only as per Engineering instructions
• You need to get approval from Engineering if you want to modify the design or instructions
• Communication rules:
• You are allowed to communicate only via paper
• You can only start your communication with engineers after they start communicating with you
tape
spaghetti

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What can we remove?
What control steps can we limit?
What can we do concurrently?
How do handovers take place?
Are there any air gaps?
Is there information starvation?
Is there a skill bottleneck?
Are we repeating processes?
Questions to ask ourselves
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Backup

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Video?