You are on page 1of 45

1

Value Stream Mapping Process


What, Where, When, Why, Who,
Which, How etc

Anand Subramaniam
2
Be aware..
Lean system implementation requires a high degree of discipline,
and sometimes it can stress the workforce.

There is high level of co-operation & trust required between
operators and supervisors.

Reward systems and labor classifications must often be revamped
when a lean system is implemented.

Existing layouts may need to be changed.

Daily production schedules in high-volume, make-to-stock
environments must be stable for extended periods.

If the inventory advantages of a lean system are to be realized,
small lot sizes must be used.

If frequent, small shipments of purchased items cannot be arranged
with suppliers, large inventory savings for these items cannot be
realised.
3
Highlights
1. Overview - Value Stream Mapping (VSM)

2. Pre-VSM

3. VSM Review Current State

4. VSM Review Future State &
Implementation Road Map

5. Excellence Road Map
4
Highlights - 1
Lean Process
Value Stream Mapping (VSM)
Value & Non Value Add
Principles
SIPOC
Definition
5
What is a Lean Process ?
Define value
from the
customers
perspective
Map the
value
stream
Create flow;
eliminate the
root causes
of waste
Create pull
where flow
is difficult
to achieve
Seek
perfection via
continuous
improvement
6
VSM Why, What, Where?
Key tool for Lean implementation, makes process & problems visible

Forms the basis of an improvement plan and a common language

Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC)

Is a qualitative tool for identifying and eliminating waste (or muda)

Aligns organisations processes, creates a sense of teamwork / ownership

Involves drawing - current state, future state, & an implementation plan

Spans the entire value chain, from raw materials receipts to finished
goods delivery

A paper and pencil tool to help you visualise and understand the linkage
between material and information flow

Focuses on maximising the overall flow
7
Value Add & Non Value Add
Value Add (VA)
Any activity the customer values (and is willing to pay for)
Who are your customers?
What do they really want?

To be considered value add, a process step must have YES to all
these questions
Does the customer care?
Does it change the thing?
Is it done right the first time?
Is it required by law or regulation?

Non Value Add (NVA)
Any activity that consumes time and / or resources & does not add
value to the service or product for the customer. These activities
should be eliminated, simplified, reduced, or integrated.
Necessary Legal / regulatory requirements
Unnecessary - Waiting, Unnecessary processing, Errors/defects,
Motion (people), Transportation (product), Underutilised people,
Inventory
8
VSM - Principles
Diagnostic Tool
Reveals hidden symptoms of larger problems

Strategic Planning Activity
Helps prioritise opportunities for improvement
Results in an implementation plan

Macro-Level - Visual Representation
Information flow
People and material flow
Each process block represents a handoff or a break in the timeline

Contains Relevant Metrics
Lead time throughput / turnaround / flow time
Cycle time touch / process time
9
SIPOC - Process Map
S
I O C P
Suppliers Inputs
Process
Outputs Customers
10
Definition
Cycle Time (C/T) time to complete a single unit of production

First Time Through (FTT) - % of jobs that are complete and
accurate the first time that they are processed.

Demand average number of units per shift

Batch Size (BS) size of typical batch that is processed as a unit

Takt time rate of demand

Throughput time sum of delays and process time

Process Ratio = Total process time / Throughput time

Value Added Ratio = Total VAT / Throughput time
11
Highlights - 2
Current Process Challenges
Conceptual Overview
VSM Charter
VSM Boundary
Product Family Matrix
Data Collection
Future State Questions & Blueprint

12
Current Process Challenges
Lots of waiting
Lots of travel
Lack of communication
Lack of skills / not trained
Too many handoffs
Too many approvals
Too many workarounds
Duplication of work

Dead zones - places where
work gets held up or lost

Lost time - people looking
for work and / or re-work
loops to correct errors
Broken interfaces -
ineffective or non-existent
interfaces

Different prioritisation
rules in different
departments

High Lead Time (slow
throughput/turnaround)

High WIP (waste in process
bottlenecks / backlogs)

Low CT/LT ratio (lots of
waiting)
13
Conceptual Overview - Where to start?
VSM Charter & Scope
Process Boundaries / Scope
Roles & Responsibilities
SIPOC

Product Family
Start with a single product family

Current & Future State
Collect data on process & system
Be specific
how many finished part numbers in
family?
how much is demanded?
how often?
Verify & repeat the Process

Develop Implementation Plan
Product
family
Current state
drawing
Future state
drawing
Work plan &
implementation
Charter / Scope
14
VSM Charter
Vision
Mission
Improvement
Objectives
Strategic Plan
Critical Success
Factors
Drivers
Process Description
Management
Information System

Start / End Date
High Level Scope
Benefits Realisation
Process Champion
Team Leaders
Team Members
Facilitators
Risk & Tolerance
Drivers
Roles &
Responsibilities
15
VSM - Boundary
Current State
Define the boundaries
Define the value
Identify the tasks and flows of material and information
between them
Identify resources for each task and flow
Create the current state map

Future State (Design)
Visualise the Ideal State and design the future state
map
Identify value added and waste from Current State
Reconfigure the process to eliminate waste / Add Value

Implementation Plan
Develop Action plans and track
16
Define Boundary
Before launching on VSM, define the Start and End points
Prepare As-Is physical map How / where (inputs to outputs)
Prepare As-Is geographical map - area(s) where process is performed
Add process control information flow to as-is physical map

A logical starting point - where Inputs cannot be returned to the
preceding step.

Capture the process as it is actually performed and include
workarounds, rework, informal activities, feedback loops etc

In lean, we commonly define work-in-process is anything you
cant ship to the customer or return to the supplier

Add As-Is process metrics - counts, rates
The number of parts required by customers
The number of machines and operators available to work on parts
The rates that process steps work on parts
17
Eg. Boundary - Start & End Points
Inputs
Market Research
Data - Competition
Firms Strategy
Define Go-
to Market
Drivers
Review
Objectives,
Goals &
Strategies
Identify
Risks,
Assumption
&
Constraints
Conduct
What If
Scenarios
START
Evaluate
Scenarios
Approve
Go-to
Market Plan
Outputs
Marketing Plan
KPI
Team
END
18
Material & Information Flow
Use the Scope document to map the product or service flow

Map the whole value stream by conducting a walk through of
the actual process and collect information
Start with the final step and walk backwards (customer perspective)
Outline major process blocks
Chunk of activities that occur before a handoff

Stay focused on the norm
Use the 70% rule to avoid getting bogged down with exceptions

Interview workers to obtain data
Cycle time (CT)
Lead time (LT)

Bring your stopwatch and do not rely on information that you do
not personally see

Draw by hand and use a pencil
19
Resource Identification
VSM are strategic in nature
The resulting implementation plan is the
tactical component

Nominate a VSM Head, who has
Top Management support
Power to influence changes

Team composition
Team / Process Leaders
Team Members who have process knowledge
Facilitators / Management Consultants
20
Product Family Matrix
Routing - Process / Operations #

P
R
O
D
U
C
T
S
1 2 3 4 5 6 7 8
ES X X X X X X
S X X X X X X
M X X X X X X
L X X X X X
EL X X X X X
XX X X X X X X
U X X X X X
21
Data Collection
Pack sizes at each process
Working hours and breaks
Inventory Points (location
& size)
How Operations are
scheduled
Overtime per week
Process cycle times
Scrap
Rework
Downtime
Demand rates by process
(Takt Time)
Number of product
variations at each step
Shipping/Receiving
schedules
Activity
Department performing
IT systems used
Current backlog/WIP
Demand rate
Work Time
Number of people /
operators
Prioritisation rules
% Quality (first pass Yield)
Batch size
Run frequency
Equipment availability
C/T - Cycle (touch) time
(observed & effective)
C/O - Changeover time &
frequency
22
Future State Questions
What should be the Takt time (available time / customer demand)?
What does the customer really need?
How often will we check our performance to customer needs?
How can we improve the flow, with fewer interruptions?
How do we control work between interruptions? How will work be prioritised?
Is there an opportunity to balance the work load and/or different activities?
Where can continuous flow be put in place?
Where should pull systems be implemented?
Where, when and how will scheduling be done?
How do we perform load leveling and what will be the product mix?
What should the management time frame be?
What process improvements are necessary, to achieve the future state?
What will the future state metrics be?
Quality
Errors
Delivery
Lead time
Customer service
How well do you provide services (internal and external)
Cost
Reducing errors, rework, handoffs, waiting and lead time
23
Design Future State Blueprint
Define how the plant will operate in the future (blueprint)

Consider whether (remove waste / non value add activities)
everything done currently at each stage is really necessary
the impact if superfluous tasks was to be removed
the process can be rearranged in a more efficient sequence
a different flow layout or transport routing can be introduced

Validate Customer Demand

Draw the Future State Process Flow

Map the Future State Material & Information Flow

Calculate Total Product Cycle Time

Detail Off-Line Activities

Outline an Implementation Plan
24
Highlights - 3
Current State (As~Is)
Step 1 - Define Customers Demand
Step 2 - Map Basic Production Processes
Step 3 - Define Data To Be Collected
Step 4 - Collect & Map Data
Step 5 - Map Information Flow
Step 6 - Calculate Current State
Step 7 - Compute Takt time
Step 8 - Line Balancing

25
Define Customers Demand
Demand = 3,200 pieces / week
Type L = 1,000 piece week
Type S = 2,200 piece week

Plant Operates 1 shift / day

Packaging = 60 pieces / Tray

Customer Shipment = 1 / day (Truck)

Supplier Shipment = 1 / week (Truck)
26
Map Basic Production Process
Ensure
Mapping begins with customers demand
Conduct a walk through and obtain high
level process information
Start from the shipping (Staging Process)
and work up-stream to the receiving
dock
The team involved should map the entire
process stream from start to end
27
2007 Pearson Education
Map Process (Contd.) Mapping Icons
28
Define Data To Be Collected
Cycle Time (C/T)
Changeover Time (C/O)
Uptime
Number of Operations
Break Time
Work Time (minus breaks)
29
Define Data (Contd.) - Work Time Calculation
Day = 1 shift
1 Shift / day = 8 hours = 28,800 seconds / shift
( 8 x 60 x 60 x 1 shift)

Breaks
Morning Tea (15 mins) : Lunch (30mins) :
Afternoon Tea (15 mins)
Breaks = 60 mins = 3,600 seconds { (15 + 30
+ 15) x 60}

Working Time / Operating Time
Shift Time Break = 25,200 working seconds /
shift (28,800 3,600)
30
Collect & Map Data (Customer & Supplier)
31
Map Information Flow
32
Calculate Current State
1 week = 5 working days

Demand = 3,200 pieces / week or
640 pieces / day
Press Process
Type L + S = 2,250 pieces (1,000 + 1,250)
Duration = 3.5 days (2,250/640)
33
Result - Current State
A Representative Current State Map for a Family of
Retainers at a Bearings Manufacturing Company
2007 Pearson Education
34
Compute Takt Time
1 week = 5 working days

Demand = 3,200 pieces / week
Type L = 1,000 piece week (200/day)
Type S = 2,200 piece week (440/day)

Total Pieces / Day / Shift = 640
Operating Time / Working Time = 25,200

Takt Time = Operating Time / Shift
Customer Requirment / Shift

Takt Time = 25,200
=
39 seconds
640
35
Total - Processing / Work Time
60 Seconds
36
Line Balancing
3
22
35
0
5
10
15
20
25
30
35
S
e
c
o
n
d
s
Press Pierce & Form Finish Grind
Process
Work or Process Time = 60 Sec Takt Time = 39 Sec

Work / Takt time = # of Operators Required = 60/39 = 1.54
37
Line Balancing (Contd.)
You require 1.54 operators
Having 2 is costly and having 1 can
lead to burnout
We could reduce Takt time from 39
sec to say 35 sec or less, by
combining some tasks and avoiding
burnout

38
3
32
22
13
35
0
0
5
10
15
20
25
30
35
Press Pierce & Form Finish Grind
Line Balancing (Contd.)
39
Highlights - 4
Future State (To~Be)
Implementation Road Map
Improvement Results

40
Future State (To~Be)
Objectives
Eliminate / reduce unnecessary NVA steps
Optimise VA steps

Build Consideration (from current state)
Eliminate/merge steps
Create parallel paths
Implement pull, if continuous flow isnt possible
Reduce or eliminate batches
Create standard work
Create an organised, visual workplace
Eliminate unnecessary approvals
Identify NVA tasks from customers point of view
Level production mix
41
Implementation Road Map
Clarify Business Drivers and Key Customer Metrics

Assess and Map Current Capabilities (Baseline)

Identify Opportunities for improvement including the elimination
of waste

Create a Vision for the Future Based on Voice of the Customer
and Voice of the Business

Analyse Gaps and Create Action Plan to Succeed
Use Robust Set of Tools (i.e. Lean Six Sigma)

Determine Priorities and Resources Necessary
Structured Process Improvement

Track Impact through Metrics

Celebrate Wins - With Customers : Employees : Suppliers
42
Improvement Results
Metric
Current State Future State % Improvement
Lead time
Cycle time
CT/LT ratio
# steps
Morale
43
Highlights - 5
Excellence Road Map
44
Excellence Road Map
Approach /
Develop Plan
Deployment / Execute Plan Results
1
Assess &
understand
Set direction
Develop key
plans
2 3
Communicate
& integrate
plans
4
Develop cross -
functional
strategy teams
5
Develop /
Integrate
detailed
implementation
plans
6
Execute
implementation
plans
7
Quarterly ,
integrated
operations
leadership
review
8
Strategic Planning Process
1
Define the
process
Establish
metrics
Determine
performance
2 3
Analyse
process
stability
4
Set goals
5
Analyse & plan
improvements
6
Implement
improvement
7
Process Based Management
Update Future
State
Set initiative
priorities
Initiative # 1
Initiative # 2
Initiative # 3
Initiative # 4
3
L
e
a
d
e
r
s
h
i p
Perform Enterprise
Strategic Planning
Joint Strategic Planning
Shared Enterprise Vision,
Strategies, and Goals
Shared Scorecard/Metrics Linked
to Goals
Provide
Communications
Manage
Risk
Consistent Messages
throughout Enterprise
Joint Communication Plan
Integrated Customer
Feedback available across
Enterprise
Single Field Issue Reporting
Comprehensive Risk Management
Program
Extensive and Continuous
Risk Identification
Effective Risk Mitigation
Joint Leadership Model with
Enterprise Thinking
Process Management Mindset
including Benchmarking
Joint Issue Resolution /
Objective Problem-Solving
Organization aligns with Future
State Value Stream
Lead & Execute
Program
L
i f e
C
y
c
l e
Propose
Work
Manage Supply
Chain
Define
Requirements
Jointly Define and Validate
Lifecycle Capability
Requirements
Joint Block Implementation
Planning
Alpha Contracting Matured
Integrated Planning for
Development, Production,
and Sustainment (IMP/IMS)
Early Involvement of key
Suppliers through
Partnerships
Develop
Product
Maximize Model-Based
Definition across Enterprise
Collaborative Development
with key Stakeholders
Integrated Product and
Process Definition (IPPD)
Encompasses Lifecycle
Integrated Design Solutions
provide Best Value Capability
Improved Supplier Quality
through Enterprise Supplier
Partnerships
Integrated Parts Procurement
of Production, Retrofit and
Spares
Supply Chain Alignment /
Leveraging (Boeing
Commercial and DoD
Military)
Common Lean Processes for
all Supply Chain to include
GFE
Assemble
Product
Lean Manufacturing
Assessment / Best Practices
Deployed
Process Surveillance
Conducted Concurrently
with Assembly
Factory to Fight Assembly
In-Position
Point-of-Use Delivery of
Parts, Supplies and Tools
Maintain
Product
Predictive Logistics
Planning
TSSR Performance and
ALC Partnership
E
n
a
b
l i n
g
Manage Technology
Roadmap
Network Enabled Operations
Technology Insertion Collaboration (Gov
/ Industry)
Promote Employee
Collaboration
Empowered Enterprise Work
Teams Align to Strategic
Direction
People Understand how they fit
into Enterprise Big Picture
Working on Program is
Meaningful and Fun: Can Do
Culture
Seamless Collaboration within
Enterprise
Manage
Knowledge
Shared Databases Across Enterprise
(Includes Suppliers)
Virtual / Physical Enterprise Co-location
Automated Information Systems Aligned
with Changing Business needs
Processes to Capture Enterprise
Knowledge Including Lessons Learned
Enterprise Web-based training
Manage Systems /
Quality
Enterprise is focused on Lean
Principles
Enterprise Systems Engineering /
Management Architecture
Joint Enterprise Process Model
Manage Contracts &
Finance
Business Models support Lean
Transformation
Exceed Obligation and
Expenditure Goals
Dollars per Flying Hour Contract
C-17 Enterprise Future State Value Stream
Enable Seamless
Transition between
Development,
Production and
Sustainment
Reduce Total
Ownership Cost
45
Good Luck
http://www.linkedin.com/in/anandsubramaniam