Introduction to value Stream Mapping

1. Value Stream Mapping
By
Shaunak Kale
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2. ValueStreamMapping
Content
1) Concept of Lean , Meaning of Value stream
2) Benefits/gains of VSM
3) Symbols used in VSM
4) Prerequisite for VSM
5) Developing the current-state- value stream map
6) Analysis of the current-state,- client demand, takt time,
waste
7) Developing the future-state- value stream map
8) Improvement opportunities
9) Case study of VSM application
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 The term Lean was coined by John Krafcik in a 1988
article based on his master’s thesis at MIT Sloan School of
Management and then popularized in The Machine that
Changed the World and Lean Thinking.
 Lean Thinking summarized Womack and Jone’s findings
from studying how Toyota operates, an approach that was
spear-headed by Taiichi Ohno, codified by Shigeo Shingo.
 Lean indicates eliminating wastes.
 There are three enemies of lean:
◦ MUDA (Wastes)
◦ MURI (Overburden, excessiveness)
◦ MURA (Unevenness, lack of uniformity)
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1) Concept of Lean

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Seven Wastes (MUDA)
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1) Concept of Lean

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1) Value Stream, Mapping
 Mike Rother and John Shook studied Toyota’s “material and
information flow mapping” and then termed it as “Value
Stream Mapping in the book Learning to See (1999)
 A value stream is the sequence of activities required to
design, produce and deliver a good or service to a customer.
 It includes dual flow of information and material.
 Most value streams are highly cross-functional
 Value stream are not merely those that an organization
perform itself: work done by outside parties and even the
customers themselves are part of a value steam.
 Mapping stands for graphical representation of all the data.
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1) Value Stream, Mapping
 The difference between a process map and VSM is that
process map consider each and every steps for process
improvement where as VSM takes a holistic approach for
strategic decisions.
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7. ValueStreamMapping
2) Benefits of VSM
 Visual unification tool
◦ How production and other service departments interact
 Connection to the customer
◦ Transition from internally focused thinking to customer-
focused thinking
 Holistic System-Thinking Methodology
◦ Interconnectedness
 Simplification Tool
 Derives Continuous improvement
 Effective means to orient new hires
◦ Helping people understand where they fit in map. Example map
showing “You are here”
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3) Symbols used
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9. ValueStreamMapping
3) Symbols used
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10. ValueStreamMapping
3) Symbols used
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3) Symbols used
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3) Symbols used
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4) Prerequisite for Mapping
 Formation of team
◦ The future state map requires a significant organization
change, the team must include those individuals who can
authorize that level of change
◦ Size of team < 10 member (resistance to change)
◦ The leader should be C-level personnel who can better able to
put the “big picture”
 Developing a mapping charter
◦ The charter serves a fourfold purpose: planning,
communicating, aligning and building consensus
◦ Scope: A clearly defined scope helps ensure that the right
people are included.
◦ Value Stream: Here you describe the value stream to be
mapped.
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4) Prerequisite for Mapping
◦ Specific Condition: Conditions that you’re including or
excluding in the mapping activity. How many product families
to be included. Generally the product with highest annual
demand (revenue) is been mapped first.
◦ Demand rate: This is the volume of incoming work per day,
month or year. Helps to design pull system.
◦ Trigger: This is action that initiates work flowing through the
value stream.
◦ First Step, Last step: acts as a fence between which the team
will work. Always use verb-plus-noun. Example “Enter
order” instead of “Order entry” or “Register patient”
instead of “Patient registration”.
◦ Boundaries and Limitations: Decision and actions that team is
not authorized to take. Software upgrade, no staffing increase,
any corporate policy change.
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4) Prerequisite for Mapping
◦ Improvement time frame: define time frame for executing
improvements to realize the future state design. (generally 3
– 6 months)
◦ Current state problems and business needs: It is always to
know what is lying ahead. Socialize the charter across the
firm to get pain areas.
◦ Measurable target Conditions: From X to Y (Z %
improvement). This clarity can only be achieved if you know
the current problems and business needs clearly.
◦ Accountable parties: Designated people serving in defined
roles with clear responsibilities.
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4) Prerequisite for Mapping
 Executive sponsor-Vice president , plant or general manager.
 Value stream champion-person next to executive sponsor who is
responsible for performance of entire value stream.
 Facilitator-serves varied roles from teacher to timekeeper and
from skilled change agent to provocateur.
 Logistics coordinator: arrange rooms, food, stationary etc.
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17. ValueStreamMapping
Lets Map one-Acme Stamping
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Daily
Shipment
schedule

18. ValueStreamMapping
5)Developing the current-state-VSM
 Activity Kickoff:
◦ The facilitator need to book the meeting room, arrange
mapping sheet, pencils etc. After the mapping team arrives
kick off the event with team formal introduction and roles.
◦ The executive sponsor should address the team to
communicate business drivers, his/her expectations.
◦ Once again review the charter.
 Value Stream Walks:
◦ Physically walking the value stream also known as “Gamba
walk”.
◦ Gamba is a Japanese term meaning “the real place, where the
work is actually being done”
◦ Talk to workers in their environment, learn about obstacles
to flow.
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5) Developing the current-state-VSM
 Value Stream Walks: Contd…..
◦ You may choose any way to walk from finished good to raw
material or from raw to finished.
◦ Advantages of walking from finished good to raw
material-requires attention, more close to customer and
easy to see opportunity to design pull into a value
stream.
◦ Feel, see, hear or some times smell the present state
conditions that needs improvement.
◦ See actual daily work culture being followed.
◦ Speak candidly the focus is on system and not on worker.
◦ Walk twice on same day.
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5) Developing the current-state-VSM
 The First Walk
◦ Talk to people and understand what’s bing done to transform
an input into output.
◦ Determine which process block will be on map.
◦ Understand what input the worker receives, where it come
from, who they pass it to, how they pass and if the work stops
at any point.
◦ Facilitator should discourage to discuss the merit of the ideas
right then, instead they should create an “idea list”
◦ Demonstrate curiosity, respect people, avoid being
judgmental.
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5) Developing the current-state-VSM
 Map Layout
◦ Discuss and add process blocks. Determine how macro to go.
◦ Cleary identify the concurrent activities.
◦ Aim for 5 to 15 serial process blocks.
◦ Less than 5-you may not have enough details to make future
state map
◦ More than 15 indicates broad scope for single mapping
activity
◦ Write description on activity “verb +noun ” format.
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5) Developing the current-state-VSM
 Second Walk
◦ Purpose is to gain a deeper understanding about how the
value stream currently performs and identify barriers to flow
◦ Note the key metrics for each Process block
 Process Time/Cycle time: Is the time it takes for a worker turn
input into output for one unit of work.
 Process time does not include waiting or delays.
 Don’t use already documented data of process time. Always
calculate using estimate or using stopwatch time study.
 Process time reflects human effort and, in current state consists
of both value-adding (VA) and non-value-adding efforts (NVA).
 Non-value-adding activity are of two types
 Necessary non-value-adding
 Un-necessary non-value -adding
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23. ValueStreamMapping
5) Developing the current-state-VSM
 Example of necessary non-value-adding activity are inspection,
material handling, cleaning etc.
 It is also termed as value enabling activity.
 Example of un-necessary non-value-adding activities are true
waste (Muda), as shows earlier.
 One means to achieve greater value is to eliminate non-value-
adding activity.
 Lead Time: also referred to as throughput time. Is the elapsed
time from the moment work is made available to worker until it is
made available to next worker.
 Often expressed in hours, days or even in weeks.
 Lead time include all the times (Value adding time & Non value
adding time).
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5) Developing the current-state-VSM
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25. ValueStreamMapping
5) Developing the current-state-VSM
◦ Percentage complete and Accurate(%C&A): Ask next
workmen what percentage of time they receive work that is
“usable as is”.
◦ If he reports 30 % of the time he has to rework than the
process is delivering 70% quality.
◦ Collect this data from past rework data or observe the
process for some time (one batch)
◦ Uptime: Percentage of time the machine is available for work.
Higher the % higher the machine utilization
◦ Lower uptime means frequent stoppages, breakdown, loss of
production which leads to higher lead time & WIP.
◦ Work sampling could be done to identify % of stoppages and
its reasons.
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5) Developing the current-state-VSM
◦ Work in process (WIP): Accumulation of work between or
within processes.
◦ At three places work can accumulate
 At input, which is yet to be processed
 At processing-but not completed
 At output, waiting to get transferred
◦ Shown by a triangle and numeric unit
◦ Number of people:
◦ Useful for work balancing in
future state map.
This conclude the Second Walk
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27. ValueStreamMapping
5) Developing the current-state-VSM
 Mapping the Information Flow
◦ Understand the communication between production and
other service departments.
◦ A lightning bolt type arrow depicts information that
automatically flows or in other words by an electronic means.
 Timeline and Map Summary
◦ Time line shows degree of flow present and speed
◦ For parallel work use longest lead time
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6)Analysis of Current State Map
 Timeline and Map Summary
◦ Total Lead time = Sum of all lead times.
◦ Total Cycle time = Sum of all cycle times on critical path.
◦ Activity Ratio =
𝑇𝑜𝑡𝑎𝑙 𝐶𝑦𝑐𝑙𝑒 𝑡𝑖𝑚𝑒
𝑇𝑜𝑎𝑙 𝐿𝑒𝑎𝑑 𝑡𝑖𝑚𝑒
◦ If the activity ratio is 5% then it says, while people are generally
busy, the work is idle 95% of the total time it takes.
◦ Takt time
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29. ValueStreamMapping 7) Developing the future-state-
value stream map
 Identify problem in current state map. In case of Acme
Stamping following are the problems.
◦ Each process acts as a isolated production facility, producing
irrespective of demand at downstream i.e., Overproduction.
◦ This creates inventory, which needs to be transported, counted and
stored. These are pure Muda
◦ As a result we get a large lead time.
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A B
Over Production

30. ValueStreamMapping 7) Developing the future-state- value
stream map
 Guidelines for solving the problems
◦ Produce to your takt time.
◦ Develop continuous flow wherever possible
◦ Use market to control production where continuous flow does not
extend upstream
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31. ValueStreamMapping 7) Developing the future-state-
value stream map
 Release small quantity of batch at regular interval for
production. If takt is 30 sec and pack size is 20 then pitch
is 10 min. i.e., after every 10 min produce one unit.
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32. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
 What is takt time for Acme Stamping?
◦ Available working time for production = 8 hours = 28,800 sec
◦ Breaks = two 10 min breaks/shift
◦ Effective working time = 28800-1200
= 27600
◦ Demand per shift by customer = 460 units
◦ Takt =
𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑡𝑖𝑚𝑒 (𝑝𝑒𝑟 𝑠ℎ𝑖𝑓𝑡)
𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝑑𝑒𝑚𝑎𝑛𝑑 (𝑝𝑒𝑟 𝑠ℎ𝑖𝑓𝑡)
= 27600/460
= 60 seconds
◦ This means Acme needs to produce a unit in 60 seconds to meet the
customer demand.
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33. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
 Should Acme build steering brackets to a finished goods
super market or directly to shipping
◦ Lets say Acme decides to build a super market for finished goods
before shipping, carrying inventory of 2 days to meet the fluctuating
demand.
◦ Since the customer buys in in multiple of 20 the kanban size is 20.
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The supermarket
icon is open from
supplying side

34. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
 Where can Acme introduce continuous flow?
 Worker one is highly underutilized, possibility to reduce
cycle time through process kaizen needs to be explored
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35. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
 Let us assume we reduced the cycle time as follows:-
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36. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
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37. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
 To increase the utilization Acme decides to build two
more supermarket one for Stamping and other for Coils
 Now customer to stamping is weld + assemble, which
requires 600 LH and 320 RH stamped part per day, lets
say kanban size of 60 is decided. The flow will be as
follows.
 But still to produce 60 parts stamping will take only 60
sec as cycle time is 1 sec and change over is an hour
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38. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
 To address this we need to inventory of stamping
supermarket produce stamping parts in large batch, as
shown below:-
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Inventory of
1.5 days
Production
with batch
600 LH
320 RH

39. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
 Acme built a third supermarket for storing coils and start
placing order on daily (also termed as Milk run) basis
instead weekly.
 Since order is placed daily there is no need to keep extra
inventory at plant. It is reduced to two days.
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40. ValueStreamMapping 7) Developing the future-state- value
stream map for Acme Stamping
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41. ValueStreamMapping
8) Improvement opportunities
 5 S (to reduce delays in searching, use good tools)
 SMED (To reduce changeover time)
 SPC (To monitor defects)
 Six Sigma (To reduce occurrence of defect)
 Method Study (To eliminate waste move)
 Kanban (Pull production system)
 Layout change (to reduce material handling time)
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9) Case Study
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Thank You
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