Lean Manufacturing

The 7 Value Stream Mapping

Tools & VALSTAT

The 7 Tools
Centre around the 7 Wastes.
Well known tools
2 new ones
No methodology to help choose most
appropriate.

Origins of the Mapping Tools

Mapping Tool

Origin of Mapping Tool

Process Activity Mapping

Industrial Engineering

Supply Chain Response

Matrix
Production Variety Funnel

Time compression/ logistics

Quality Filter Mapping

New Tool

Demand Amplification
Mapping
Decision Point Analysis

Systems Dynamics

Physical Structure Mapping

Operations Management

Efficient Consumer
response/logistics
New Tool

Process Activity Mapping

Process Activity Mapping -Key

KEY
Information
Flow

Value
Added
Non Value
Storage
Added
Non Value
Transportation
Added
Value
Operation
Added
Non Value
Delay
Added
Non Value
Inspection
Added

Process Activity Mapping -Key

1. Study of the flow of processes.
2. Identification of waste.
3. Consideration of whether process can be
arranged in more efficient sequence.
4. Consideration of better flow pattern layout,
routes etc.
5. Consideration of whether everything that is
being done is necessary.

Supply Chain Response Matrix

Supply Chain Response Matrix

Shows critical lead-time constraints for a process.
Cumulative lead time in a distribution co.
Horizontal axis shows lead time for product internally
& externally.
Vertical axis shows average amount of standing
inventory at specific points in the supply chain.
Inventory and lead-times can be individually targeted
for improvement.

Product Variety Funnel

Product Variety Funnel

Illustrates how company/supply chain
operates.
Complexity to be managed.
Where to target inventory reduction.
Making changes to processing of products.
Gain overview of company/supply chain.

Quality Filter Mapping

Quality Filter Mapping

Identifies where quality problems are in supply

chain.
Three types of quality mapped:

1. Product Defect Defective goods passed on to

customers.
2. Service Defects Problems given to customer not
directly related to product themselves. i.e. delivery,
documentation.

Quality Filter Mapping

3. Internal Scrap defects produced in company that
are caught by inspection.

Shows where defects occur, identifying problems,

inefficiencies and wasted effort.

Demand Amplification Mapping

Demand Amplification Mapping

How demand changes along supply chain.
Decisions and analysis can be carried out using this
info.
Manage fluctuations
Redesign value stream
Reduce fluctuation.

Decision Point Analysis

Decision Point Analysis

Decision point point where actual demand
pull gives way to forecast driven push.
Where products stop being made according to
actual demand and are made against forecast
only.
This tool shows where this point is.

Decision Point Analysis

We need to know where this point is for two

reasons:
1. Knowing where this is, it is possible to assess
processes operating downstream and upstream
from this point. Making sure they are working to
the same push/pull philosophy.
2. Long-term, various scenarios to view operation
of the value stream if the point is moved can be
carried out.

Physical Structure

Physical Structure
Shows supply chain a industry level.
Understand how the industry operates.
Brings attention to areas that may not receive
sufficient developmental attention.

Volume Structure
Various tiers both in supplier and distribution
area, with assembler as middle point.
Depicts number of organisations involved
area of each part is proportional to how many
organisations are in it.

Cost Structure
Similar to volume structure.
Area of diagram is directly linked to value-adding
process (cost-adding process).
Makes it possible to analyse value adding
required in final product as its sold.

VALSTAT Table
Process
Activity
Mapping

Supply Chain
Response Matrix

Overproduction

Waiting

Transport

Inappropriate
Processing

Unnecessary
Inventory

Unnecessary
Motion

Defects

Overall Structure

Production
Variety Funnel

Quality Filter
Mapping

Demand
Amplification
Mapping

Decision Point
Analysis

Physical
Structure
Mapping

Wastes

H = High correlation and usefulness

M = Medium correlation and usefulness
L = Low correaltion and usefulness

L
M

L
H

H
L

General Comments
Data from all of the tools can be integrated.
Different tools highlight differing issues.
Therefore more accurate key priorities are highlighted

E.g. if supply chain response was used individually,

its supplier lead time would be identified. However,
when data from quality filter mapping is added, ontime delivery would be identified.

Theory of Constraints

Goldratts Theory of Constraints has been

seen as having a conflicting approach to lean.

Synergies Between TOC and Lean

TOC identifies potential improvements that
will make a big difference.
TOC identifies the constraints that Lean can
then target for waste reduction provides
focus.

Synergies Between TOC and Lean

Lean has useful tools and philosophy and its
techniques enable understanding of the system
and its dependencies clearly.
TOC helps to identify and quantify the
opportunities for improvement.
Both encourage pull rather than push.