Engineering

Management
Learning to See Parts I, II, III
A Value Stream Mapping Workshop
Mike Rother & John Shook
Lean Enterprise Institute
MSE507
Lean Manufacturing
Value Stream Mapping
Workshop Goals
To understand the complete value stream
To introduce Value Stream Mapping (VSM)
To draw a current state map
Learn the mapping concepts and icons
To be able to design an improved value stream
Develop the ability to see the flow of a value stream
To draw a future state map
Learn the mapping concepts and icons

Value Stream Mapping
Topics
Topic Slide No.
Overview 5
The Process (Steps 1-3) 12
The Process (Step 4 Case Study) 35
The Process (Step 5) 38
The Process (Step 6)
The Process (Step 6 Case Study)
The Process (Steps 7-9)
The Process (Step 10)
Conclusions
Engineering
Management
Value Stream Mapping
Overview
Overview
Why? Learn to See
See the big picture, not just individual processes
See how the process currently operates
See linkages between information and material flow
See the waste and the source of waste
Establish a common language for improvement
Foundation for designing lean flow and the future state

Overview
What do you typically see?
80 90% of total steps are waste from standpoint of end
customer
99.9% of throughput time is wasted time
Demand becomes more and more erratic as it moves
upstream, imposing major inventory, capacity, and
management costs at every level
Quality becomes worse and worse as we move upstream,
imposing major costs downstream
Most managers and many production associates expend the
majority of their efforts on hand-offs, work-arounds, and
logistical complexity
Overview
Objective
Correct specification of value
Elimination of wasteful steps
Flow where you can
Pull where you cant
Management toward perfection

Overview
Pursue Perfection
Every step in each process is:
Capable right every time (6 Sigma)
Available always able to run (TPM)
Adequate with capacity to avoid bottlenecks (right-sized tools &
lean system design)
Overview
What is it?
A visual representation of all the steps needed for:
Concept to launch (design)
Order to delivery (build)
Delivery to recycle (sustain)
All steps:
Value Added (VA)
Non-value added (NVA)
Two flows:
Orders traveling upstream from the customer
Products traveling downstream to the customer

Overview
Who does it?
Value Stream Manager
Ideally, one person with lead responsibility for the entire value
stream reporting to the top person at the site
Representatives of every relevant function operations,
purchasing, sales, finance, engineering, etc. (ideally)
And you

When?
Now
Before any major improvement activity
Constantly updated to the new Future State

Overview
Where?
In the work area itself

How?
Directly observe flow of information and physical goods
Summarize these flows visually with icons
Use pencil and paper
And most important
Envision future state
No wasted steps
Smooth flow
Level pull

Engineering
Management
Value Stream Mapping
The Process
Getting Started
Select one value stream - a product family
Walk the physical flow of material no data collection
Walk the flow again, collecting data
Draw the Current State Map
+ Identify opportunities to eliminate waste and create flow
Draw the Future State Map
; Generate a Value Stream Plan
^Start making the improvements
Conduct Value Stream Reviews
Repeat the cycle
Value Stream Step 1
Select a Value Stream
Select one value stream shared definition of value
by customer or customer category
by product or product family
by plant
by service - production, spares, repair
A family is a group of items that pass through similar
processing steps and over common equipment.
Focus on the downstream processes not upstream steps.
Upstream processes may serve many product families in a
batch mode.
Value Stream Step 1
Create a Matrix
1 2 3 4 5 6
AX X X X X
BX X X X X X
CX X X X X
DX X X
EX X X
FX X X X
P
r
o
d
u
c
t
s
Assembly and Equipment
A Product
Family
Create a matrix if your mix is complicated

Create a Matrix
Complicated
Part Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8
Machine Weighting
Machine A 2 1 1
Machine B 4 1 1 1
Machine C 8 1
Machine D 16 1 1
Machine E 32 1 1
Machine F 64 1 1
Machine G 128 1 1 1
Machine H 256 1 1 1
Machine I 512
Machine J 1024
Machine K 2048
Machine L 4096
Part Total 290 80 132 258 88 132 288 132
Weight part by machine used.
0103-02 Family Matrix.xls
Create a Matrix
Complicated
Sort by weighted part; Weight machine by part used.
Part Part 2 Part 5 Part 3 Part 6 Part 8 Part 4 Part 7 Part 1
Machine
Total
Machine Weighting 32 64 128 256 512 1024 2048 4096 blank
Machine A 2 1 1 5120
Machine B 4 1 1 1 896
Machine C 8 1 64
Machine D 16 1 1 96
Machine E 32 1 1 6144
Machine F 64 1 1 96
Machine G 128 1 1 1 896
Machine H 256 1 1 1 7168
Machine I 512 0
Machine J 1024 0
Machine K 2048 0
Machine L 4096 0
blank blank 80 88 132 132 132 258 288 290 blank
Create a Matrix
Complicated
Sort by weighted machine.
Part Part 2 Part 5 Part 3 Part 6 Part 8 Part 4 Part 7 Part 1
Machine
Total
Machine Weighting 32 64 128 256 512 1024 2048 4096 blank
Machine C 8 1 64
Machine D 16 1 1 96
Machine F 64 1 1 96
Machine B 4 1 1 1 896
Machine G 128 1 1 1 896
Machine A 2 1 1 5120
Machine E 32 1 1 6144
Machine H 256 1 1 1 7168
blank blank 80 88 132 132 132 258 288 290 blank


Single Plant
(Door-to-door)
Value Stream Step 1
Levels of a Value Stream
You can value stream map at
different levels
Across companies is too
complicated to start with
Process Level
Multiple Plants
Across Companies
Start mapping door-to-door
within your own facility:
This is under your control
It is easier to make
improvements immediately
Expand outward to broaden the
value stream later
Value Stream Step 2
Walk the Flow
Let the workers know what you are doing.
Walk the flow first (no data collection). Walk it yourself.
Begin at shipping and work upstream. This begins with the
processes that are linked closer to the customer. If it is too
confusing, start at the beginning and go downstream.
See how the material moves.
See the piles of material and WIP.
See how people work.
Identify the major process steps
Value Stream Step 3
Walk the Flow Again
Walk the flow again, this time collecting data.
Begin at shipping and work upstream.
Obtain the data yourself, do not rely on computer printouts.
Use pencil and paper.
Ask questions and listen.
Collect data relevant to the definition of value.
Value Stream Step 3
Walk the Flow Again-Typical Data Collected
Customer Need
Demand number of units per day the customer wants
Available work time Scheduled work time minus breaks,
meetings and clean up time
Inventory
WIP Number of units waiting to be worked on or waiting to be
moved.
Finished Goods Number of units in stores or waiting to be
shipped.
Value Stream Step 3
Walk the Flow Again-Typical Data Collected
Each Process Step
Cycle time CT The time between one part coming off the
process and the next part coming off.
Yield First Time Yield or scrap%
Number of people Required to operate the process.
Uptime The percentage of time the equipment is available to
run, when it is needed to be run
Batch Size typical lot size or minimum
Change Over Time Co The time from the last good piece
of one batch to the first good piece of the next batch
EPE Every part every __. How often do you changeover to
produce this part?
Value Stream Step 3
Walk the Flow Again-Calculated Data
Takt Time TT How often does the customer need another
unit.
(Available work time per day)/(demand per day)
Inventory measured in days.
(Number of units)/(demand per day)
Overall Flow
Process Lead Time The time for a unit to make it all the way
through the process
(Sum of Inventory Days) + (Sum of Cycle Times)
Processing Time The time spent actually performing work on
the unit
(Sum of Cycle Times)
Value Stream Step 3
Draw the Current State Map
Drawing the future state map begins with the current
production situation.
Symbols and icons assure a consistent language.
Draw the rough draft as you walk the floor in step 3 collecting
data.
Use pencil and paper, not a computer.
Map the whole value stream, not just a segment.


PROCESS BOX ICONS
DATA BOX ICONS
- C/T time
- C/O time
- Up time
- Scrap
Example
Example
Material Flow
Information Flow
INVENTORY ICONS
WITH PUSH ARROWS
Quiz 1
Circle the best answer
1. Value Stream Mapping looks at
A. The people, materials, and information flow in a value stream
B. The material and information flow in a value stream
C. The detailed operation steps within a cell
D. The steps that people take in designing and producing a product

2. A product family is used to:
A. Create a listing of all your products and the steps that are taken to
produce them
B. Decide which customers are most important to your customers
C. Identify and group products into families based upon whether they
pass through similar steps in your downstream processes
D. Divide the mapping teams up into groups with individual mapping
assignments
Quiz 2
Circle the best answer
3. The best way to draw a value stream map is:
A. In pencil on the work floor, mapping the whole value stream
B. In your office with a good drawing software package
C. In pencil, by dividing the value stream into segments, and
assigning each segment to a different mapping team
D. In pencil, on the floor using standard times from engineering

4. Data boxes should contain data based on:
A. Engineering standards
B. The average measurement for a fiscal year
C. The measurement on an ideal day
D. What you observe as you draw the map
Mapping Tips
Use Colored Post-it notes paper for Mapping
(Easier to move Post-it notes than redraw)
Use roll of butcher paper so you can use a wall and see the
whole VSM
Use string or ribbon to show material & information flows
Decide whether to count all parts or sample
Mapping Tips
Best to map production lines between
Tuesday and Thursday
Use someone from the line or process to walk you through it
first, post-it note process, come back and get
Real Data and Times
If you plan on using the times to balance your process then do
not take shortcuts - you will be way off
(Embarrass yourself!!)
See with your hands. No Armchair Lean!
Mapping Tips
Calculate production lead time for inventory triangles by dividing
quantity of inventory by the customer daily requirement
This is a really neat trick! It turns a count of inventory into the
number of production days that inventory represents
Add a title and date the map
ACME Stamping
Case Study
Material Flow Icons
Assembly
XYZ
Corporation
Data Box
C/O=30 min.
C/T=45 sec.
3 Shifts.
2% Scrap
I
300 pieces
1 day
Inventory Supermarket
Shipment Push Finished Goods
to Customer
Physical
FIFO
First-In-First-Out
Process
Box
Supplier/
Customer
Mon
+ Wed
Pull
Information Flow Icons
Manual
Information Flow
Electronic
Information Flow
Weekly
Schedule
Schedule
OXOX
Load
Leveling Box
Sequenced-Pull
Ball
Withdrawal
Kanban
Production
Kanban
Signal
Kanban
Kanban
Post
General Icons
Uptime
Changeover
Kaizen
Lightning Burst
Operator
Buffer or
Safety Stock
Go See
Production
Schedule
Value Stream Map - Acme Exercise
(Use the Handout Data Sheet)
Use a pencil and small Post-it notes on 11 x 17 paper.
Use the following colors
BLUE - Process
YELLOW - Inventory (tear in half)
PINK - Master schedule / Production control
GREEN - Supplier & Customer
Fill in a Post-it notes for each process/data and symbol
Remember Always start with the Customer
Build the map, leave enough room between process boxes to
show inventory and enough space on the bottom to draw the
time line
State St.
Assembly

18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
First - Show the
Customer
Value Stream Step 4
Current State Map - 1
st
View
State St.
Assembly

18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Stamping
4600 L
2400 R

CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 1



CT=39sec
.
Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail

CT=40sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
I
I I I
Coils
5 days

CT=46sec
.
Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail

CT=62sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping I I
1100L
850 R 640R 600 R
1200 L
1440 R
1600 L
S. Weld # 2 Assy # 2 Assy # 1
2700 L
Second - add the
major Processes,
Data Boxes, and
Inventory Triangles
The data obtained is put in the data box
directly beneath the process box.
Value Stream Step 4
Current State Map - 2
nd
View
S. Weld # 1
I
2 shifts
27,600 sec.avail
Coils
5 days
1100L
600 R
State St.
Assembly

18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Stamping
4600 L
2400 R

CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks



CT=39sec
.
Co=10 min.
Uptime=100%

CT=40sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
I
I
I I

CT=46sec
.
Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail

CT=62sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
I
850 R
640R
1200 L
1440 R
1600 L
S. Weld # 2 Assy # 2 Assy # 1
2700 L
1X
Daily
Michigan
Steel Co.
Tues &
Thurs.
500 Ft. Coils
Third - Show the
Material Flow
A truck icon and broad arrow indicate
movement of finished goods to the
customer and raw material to the site.
The supplier of raw material is
identified with a factory icon. In
this case they deliver 500 ft coils
Value Stream Step 4
Current State Map - 3
rd
View
Value Stream Step 4
Current State Map
Information flow is drawn from right to left in the top half of
the map space.
solid line arrows (paper transfer)
arrow with a lightening bolt (electronic transfer)
Material movements that are pushed are represented by a
striped arrow
PUSH
A process that produces regardless of the needs of the
downstream customer
A guess as to what is needed (forecasts)
Processes are allowed to set batch sizes and produce at a pace
that makes sense from its perspective not the customers.

State St.
Assembly

18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Stamping
4600 L
2400 R

CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 1



CT=39sec
.
Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail

CT=40sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
I
I
I
I
Coils
5 days

CT=46sec
.
Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail

CT=62sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
I
I
1100R
850 R
640R
600 R 1200 L
1440 R
1600 L
S. Weld # 2 Assy # 2 Assy # 1
2700 L
1X
Daily
90/60/30 day
Forecasts
Daily
Order
Production
Control



MRP
6 WEEK
Forecast
Michigan
Steel Co.
Tues &
Thurs.
WEEKLY SCHEDULE
500 ft. Coils
Fourth - show
Information Flows
& Push Arrows
Value Stream Step 4
Current State Map 4
th
View
Value Stream Step 4
Current State Map
The timeline summarizes the current condition of the value
stream
Production Lead-Time is the time it takes for a part to make its
way through the shop floor beginning with the raw material
Inventory Lead-time( shown with the inventory triangles)is
calculated as follows:
Inventory quantity divided by the daily customer requirements.
Then add all process inventory lead-times.
Inventory Quantity
Daily Customer Requirement

State St.
Assembly

18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Stamping
4600 L
2400 R

CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 1



CT=39sec
.
Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail

CT=40sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
I
I
I
I
Coils
5 days

CT=46sec
.
Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail

CT=62sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
I
I
1100R
850 R
640R
600 R 1200 L
1440 R
1600 L
S. Weld # 2 Assy # 2 Assy # 1
2700 L
1X
Daily
90/60/30 day
Forecasts
Daily
Order
Production
Control



MRP
6 WEEK
Forecast
Michigan
Steel Co.
Tues &
Thurs.
WEEKLY SCHEDULE
500 ft. Coils
5
days
1
sec
7.6 days
39 sec
1.8 days
46 sec
2.7 days
62 sec
2 days
40 sec
4.5 days=23.6 days
=188 sec
(PLT)
(PT)
Fifth (Final) - Show
Timeline
Value Stream Step 4
Current State Map 5
th
View
State St.
Assembly

18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Stamping
4600 L
2400 R

CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 1



CT=39sec
.
Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail

CT=40sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
I
I
I
I
Coils
5 days

CT=46sec
.
Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail

CT=62sec
.
Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
I
I
1100R
850 R
640R
600 R 1200 L
1440 R
1600 L
S. Weld # 2 Assy # 2 Assy # 1
2700 L
1X
Daily
90/60/30 day
Forecasts
Daily
Order
Production
Control



MRP
6 WEEK
Forecast
Michigan
Steel Co.
Tues &
Thurs.
WEEKLY SCHEDULE
500 ft. Coils
5
days
1
sec
7.6 days
39 sec
1.8 days
46 sec
2.7 days
62 sec
2 days
40 sec
4.5 days=23.6 days
=188 sec
(PLT)
(PT)
Fifth (Final) - Show
Timeline
Value Stream Step 4
Current State Map Complete View
Whats wrong with Acmes Value
Stream?
3 VA processes
Traditional mass
production
thinking about
economies of
scale
Batches pushed
through
=> waste
Look at VA time
compared to
time in plant

What Makes a Value Stream Lean?
Primarily the elimination of the number one waste
OVERPRODUCTION!!!
Since this material is not yet needed it must be handled,
counted, stored.
Defects remain hidden in inventory queues
Overproduction results in shortages, because processes are
busy making the wrong things.
1. Overproduction
2. Waiting
3. Transportation
4. Unnecessary Processing
5. Inventory
6. Unnecessary Motion
7. Correction

Wasting A Persons time or talent
Value Stream Step 5
Eliminate Waste
Value Stream Step 5
Eliminate Waste
1. Overproduction - The primary waste
Making parts faster than is required
Excess Inventory
Time wasted, that could be used to make product that is
required

2. Waiting
An operator waiting for a long machine cycle to end

3. Transportation
Moving parts and products does not add value - it just adds cost
Value Stream Step 5
Eliminate Waste
4. Unnecessary Processing
Booking work into a store and then having to book it back out
again to use.

5. Inventory
There is a cost to the Company for carry inventory
There is always the risk it can become obsolete
It covers up other inefficiencies
e.g. Long set-up times
Value Stream Step 5
Eliminate Waste
6. Unnecessary Motion
Any motion of a person that does not add value
Operators / Setters looking for tooling

7. Correction
Reworking defective materials

Things to remember about waste
It is a symptom rather than a root cause of the problem
It points to problems within the system, at both process and value
stream levels
We need to find and address the causes of the waste
Value Stream Step 5
And Create Flow
We are concerned with system efficiency rather than
the efficiency of an individual process
The question is, how fast should we produce?
Value Stream Step 5
Takt Time
We should match the rate of production to the rate of sales

Takt is the German word that means beat or pace

Takt Time = Effective working time per day
Customer requirement per day

= 27,000 sec = 59 sec
460 pieces

What is the effective working time per day?
What do we do about machine down time?
Why is cycling faster than takt expensive?
Value Stream Step 5
What is Flow?
Value Stream Step 5
Where Do We Use Flow?
Use continuous flow wherever possible

Where cant we use continuous flow?
Long set-ups
Large distances
Downtime problems
Long lead-times


Value Stream Step 5
Alternatives to Continuous Flow
Kanban
A signal that provides an instruction to regulate the sequence and
timing of production
Two-bin
Bins used to regulate production
Buffer stock
Standard work
Curtain operation
Supermarket
Controlled quantity of inventory
Visual controls
Owned by the supplier

Value Stream Step 5
Supermarket Pull System
A SUPERMARKET PULL SYSTEM
Supplying
Process

A
Customer
Process

B PRODUCT
Supermarket
Production KANBAN Withdrawal KANBAN
1) CUSTOMER
PURPOSE: Controls production at supplying process without trying to schedule. Controls
production between flows
Value Stream Step 5
Supermarket Pull System
A pull system between processes
gives accurate build instructions to the upstream process
without trying to predict downstream demand
instead of forecasting the upstream process.
The pull by the downstream process determines
what the upstream produces
when
and in what quantity.
Should be located near the supplying process
Are only used when continuous flow will not work.
There is a cost - inventory and material handling
If pull systems schedule upstream process we can try to
schedule only one point in the value stream - Pacemaker
No supermarkets downstream of the schedule point
(except finished goods)
Value Stream Step 5
Schedule Only One Point
schedule
schedule
Quiz 3
Circle the best answer
5. Takt time is:
A. The customer demand rate
B. The rate at which the Sales departments plan to sell products to
customers based upon promotions
C. The fastest rate at which your individual operations can produce the
products
D. The average amount of product brought by your customers in a week

6. A supermarket is used where:
A. Processes are close together but have different cycle times
B. A customer requires specialised products from a finished goods
warehouse
C. Continuous flow is not possible due to distance, unreliability, or where
processes serve multiple product families
D. Pull can be implemented throughout the door-to-door value stream
Quiz 4
Circle the best answer
7. A pacemaker process:
A. Ensures that all processes downstream are controlled by supermarket pull
systems
B. Receives its products from supermarkets controlled by MRP systems
C. Is always a bottleneck, requiring constant supervision and staff adjustment
D. Responds to the external customer, and is usually the point at which
production is scheduled in the door-to-door value stream
Homework Assignment
Questions:
1. Describe the ways a business could use Value-stream
mapping. What will be the benefits?
2. You are visiting a production plant that has achieved
excellence and is a model site to bench mark in the industry.
List what you are likely to see when visiting a lean plant?
How will their current Value Stream might look like?
Read Leaning to See Parts IV and V
Pages 57-101
Questions? Comments?