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Total Quality Management TQMB15-5

Session 07 Value Stream Mapping (Concepts


and Steps)

What is Value Added?

A step is value-added if
The Customer recognizes the value
It changes the Fit, Form, or Function of the product
It is done right at the first time

A Value Adding Activity transforms or shapes raw material


or information to meet customer requirements
All three of these conditions must be met

Types of processes
Value added/ Non-value added/ Necessary, but nonvalue added
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Value Stream Mapping (VSM)

A hands-on process to create


A graphical representation of the process, material and
information flows
Within a value stream

Objectives
Provide the means to see the material, process and
information flows
Support the prioritization of continuous improvement
activities at the value stream
Provide the basis for facility layout
Eliminate waste
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VSM Example Article 1

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VSM Example Article 2

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Lean Six Sigma/Value Stream


Mapping Steps

Define
Select product /service family
Different VSM for different product/service family
Measure
Draw Current State map How the process operates
Analyze
Identify opportunities for elimination of waste and
areas of improvement To meet customers needs
Improve
Draw the Future State map
Design a lean flow using lean techniques
Develop action plan and implement it
Control KAIZEN
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Value Stream Mapping symbols


Material

Process Box

External Resources

Transportation

Inventory

Data Box

Push

To client
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Value Stream Mapping symbols


General

Supermarket

Safety Stock

Staff Member

Disruptions

Pull Arrow

Improvement
Opportunities
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Value Stream Mapping symbols


Information

Manual Information

Withdrawal Kanban

Load Leveling

Electronic Information

Production Kanban

Database

Batching

Work Allocation

Kanban Post

Work Cell

Kanban Signal

Sequenced Pull
Ball

Go see
Scheduling

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KANBAN

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Steps for Current State

Start backwards Document customer information


Document supplier information
Identify Product/Service Family How?
Identify the main processes
How many process boxes?
Fill in data boxes, draw inventory triangles, and count
inventory
Add a shipping box Why?
Draw customer/supplier delivery schedules and methods
Establish production control and schedules
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Steps of Current State Continued

Establish information flow Both internal and external


How does each process know what to make next?

Identify material flow Push/Pull/Kanban

Draw production lead time associated with process boxes


These are part of value added timeline
Also called Processing Time
Process Batch versus Transfer Batch

Calculate lead time associated with inventory triangles


These are part of non-value added timeline
Dipankar Bose - XLRI

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Information for Process Data Box

Cycle Time (C/T)


Change Over time (C/O)
Production batch sizes
Number of product variations
Number of operators
Working time minus breaks (N0 shift)
Process Reliability (Uptime)
Scrap/Rework/Defect rate
No of orders/references (N0 ref)
First Time Through (FTT)
Overall Equipment Effectiveness (OEE)
Every Product Every (EPE)
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Key Future State Questions

Identify
Demand
Takt Time
Competitive Lead Time
Calculate Inventory Days
RM/WIP/FG
Maximum Inventory
Calculate
Current Lead Time
Touch Time or Processing Time
Bottleneck Cycle Time
Is BCT > Takt time?
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Key Future State Questions


Continued

Who is setting the pace of production?


What is Pitch Time?
Is there Inverse Pitch Time?
Material flow
Where can we use one-piece / continuous flow?
Continuous flow will replace some process boxes in
Future state map
Do we need Cellular Manufacturing?
Where can we use FIFO lanes?
Where do we have to use supermarket (replenishment)
pull systems?
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Key Future State Questions


Supermarket vs. Inventory

Two major issues relate to problems getting parts to


customer
Customer demand variation
Variation in order frequency and quantity
Manufacturing process variation
Problems within your own process (scrap,
downtime, etc.)
The key is to protect your customer
A finished goods buffer can do that
Supermarket Pull System
Withdrawal/Production Kanban
Where do we need Batch production?
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Key Future State Questions


Supermarket/ Inventory Continued

Evaluate following factors


Cycle Time Compatibility
Equipment Uptime/Downtime (remember that
coupling can multiply the effects of downtime)
Equipment Investment
Flexibility
A pull system is needed wherever continuous flow stops
Exception Use FIFO system
FIFO may work in situations where only inventory quantity
needs to be controlled
Visual quantity control is needed
Without physically counting parts and scheduling
machine operation
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