VALUE STREAM MAPPING

LELY HERLINA
Meanings of value within the lean
framework (Koskela,2004)
Lean principle Inferred meaning of
value
1. Precisely specify value by specific
product
1. Specify value = specify product
2. Identify value stream for each
product
2. Value stream = material and
information
flow
3. Make sure flow without
interruptions
3. Value = flow of materials without
inter-
ruptions
4. Let the customer pull value from
the
producer.
4. Value = product
5. Pursue perfection 5. Value = product
The first principle is to specify value in term of
product or product functions. The inferred
meaning of value points to specify value.
However, the value cannot be seen as itself,
because it is attached with the product. Thus,
value here is used to mean materials or
products (Koskela, 2004).

The second principle means designing the
production system including product
development, order fulfilment process with
goal to avoid the wasteful activities. Thus, the
inferred meaning of value stream is the
material and information flow including the key
partners in the supply chain (Koskela, 2004).
The third principle highlights to make a flow
without interruptions. It means to make a flow
by eliminating the identified wasteful activities.
In the inferred meaning of the principle, the
value is the flow. To achieve the waste free
flow helps one-piece flow rather than
producing in batches (Koskela, 2004).
The fourth principle accentuates that
customers pull the products instead of
producer pushes the unwanted products. The
inferred value of the principle is that the
products will be produced in just in time
manner that keep lead time under control
(Koskela, 2004).
The fifth principle stresses that there is a need
for continuous minimization of waste and
maximization of value, associated with JIT
and TQC (Total Quality Control) concepts
(Koskela, 2004). Thus, the continuous
improvement should be performed in any lean
organization.
Value Stream Mapping
Value Stream Mapping (VSM) is the process of
mapping the material and information flows for
components and sub-assemblies in a value chain
from raw material to the customer (Seth and
Gupta, 2005).
Womack and Jones (1996) define VSM as a tool,
which allows identify ways to get material and
information to flow without interruption, improve
productivity and competitiveness, and help people
implement system rather than isolated process
improvements
VSM is a mapping paradigm used to describe
the configuration of value streams and it maps
not only material flows but also information
flows that signal and control these material
flows (Rother & Shook 1999).

Objectives of Value Stream
Mapping
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
AND...

Map the Current State
The Process
Analyze the Current State
and
Design the Future State
Introduction to Value Stream Mapping
Tues. & Fri.
PC & L
MRP MSS
# times/day
Steel
Supplier
Steel
Pin
#pcs
# days
or shifts
I I
I
I
Stamping
Downtime
Changeover Time=4 hr
2 Shifts
TAKT =
2 Presses
Cycle Time =
Change
Over
Welding
Layout
Scrap/Rework
Downtime = 20%
Uptime
# Operators
Cycle Time =
Weekly Build Schedule
Daily Ship
Schedule
Finished Goods
Overtime =
# Shifts =
Assembly
DT, Scrap
Rework
WIP=
Cycle Time =
TAKT =
Changeover Time =
Layout
= 10%
Scrap
? days ? days ? days ? days
? days ? days ? days
Inventory Time
Processing Time
TPc /t = ?
TAKT =
WIP=
WIP= WIP=
X pcs /month
Std. Pack Qty.
# shifts
Customer

Finished Goods Assembly
Layout
Welding
6 x / Day
PC & L
Daily
Level Box
DA1
DA2
DA3
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap =
Stamping
0 Overtime
2 Shifts
Max Size
# Material Handlers
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework =
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework=
Small Lot # Operators
Customer
X pcs / month
Std Pack Qty
# Shifts
WIP =
WIP = WIP =
Steel Supplier
Inv.Time
Proc .Time
TPc /t = ?
? days ? days ? days ? days
? days ? days ? days
Create an implementation plan and
execute it !
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction
Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Pull To Sender Ass'y
Training
1999 2000
Activity
13
Value Stream Mapping is a Key
Process Diagnostic Tool
Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S System Visual Layout
POUS
Cellular/Flow Pull/Kanban TPM
Value
Stream
Mapping
Continuous Improvement
Kaizen
Value Stream Mapping Step
Select product / service
family

Draw Current State map.
Understanding how the
process currently operates.

Identify opportunities for
elimination of waste and
areas of improvement to
meet customers needs.

Draw the Future State map.
Design a lean flow using
lean techniques.

Develop action plan and
implement it.

Product / Service
family
Future state
drawing
drawing
Current state
Plan and
Implementation
Define value stream (product family)
Identify value stream from the customer end
Product should pass through similar processes
and common equipment
Door-to-door in scope (within plant walls)
List part numbers

Step 1: Select a Value Stream
(Product Family)
Current State


Select a cross-functional team



Select team members
who are familiar with
the product
Ensure that team
members are trained in the
use of VSM
Designate a champion (typically a line manager)
Step 2: Form a Team
Cross Functional
Team
Manufacturing
PC & L
Maintenance
Leadership
Product
Engineering
Industrial
Engineering
Sensei
Current State Map

Plan for Every Part
Production Control
(monthly/weekly forecasts)
Production history (day-to-day, month-to-month
variation)
Sales (product changes, new business, etc.)
Customer
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Step 3: Understand Customer Demand

Customer
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Inventory
Part A =
Part B =
Part C =
# of shifts =
Shipping Assembly Welding Stamping
Takt =
C.T. =
D.T. =
FTQ = 90%
C/O Time =
Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. = 20%
FTQ =
C/O Time =
Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. =
FTQ =
C/O Time = 4 hrs.
Lot Size =
# of Shifts
WIP =
Current State Map

Step 5: Map the Material Flow
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Inventory
Part A =
Part B =
Part C =
# of shifts =
Shipping
Assembly Welding Stamping
Takt =
C.T. =
D.T. =
FTQ = 90%
C/O Time =
Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. = 20%
FTQ =
C/O Time =
Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. =
FTQ =
C/O Time = 4 hrs.
Lot Size =
# of Shifts
WIP =
Changeover Downtime FTQ
2 x/
day
I
2 x/
week
Supplier
1,200 pcs
I
1,500 pcs
I
800 pcs
I
500 pcs
Step 6: Map the Information Flow
Assembly Welding
Takt =
C.T. =
Takt =
C.T. =
I I I
1,500 pcs 800 pcs 500 pcs
PC & L
Weekly Build Schedule
Daily Ship Schedule
6 week rolling forecast
6 week rolling forecast
Weekly Order
Weekly Order
Step 7: Calculate Total Product Cycle Time

I
800 pcs
.27 days .17 days
.4 days .5 days
1.0 days .18 days .02 days .008 days
TPc/t = 2.5 days
Step 8: Detail Off-Line Activities

Show on the map using general icons
Detail on another sheet using either
reference VSM and/or process flow-
charting

Demand Chain
Solutions
FIFO
Supermarket
Signal
Kanban
Withdrawal
Kanban
Production
Kanban
Leveling
Physical
Pull
Kanban
arriving
in batches
Kanban
Path
Kanban
Post
First-In
First-Out
Flow
MAX 50 PCS
Process
Kaizen
Current State Map
Additional Mapping Icons
Demand Chain
Solutions
Original Condition
Step7: Outline a Plan
Future Condition
Inj:
Molding
2
Sender
Assy
2
MSS
Assy
Plants
7
Stamping
10
Tank
Assy
4
Perform to TAKT & Pitch.
Produce to Order
Load Leveling and Pull
Zone Maintenance & Fast Response
Labels
Level
ABABA. . .
Staging
by Truck
card
by
card
(Pitch = 14 Units)
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction
Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Pull To Sender Ass'y
Training
1999 2000
Activity

Inj:
Molding
2
Sender
Assy
2
MSS
Tank
Assy Stamping
Fuel Pump
Assy
I
I
I
I
I
I
Assy
Plants
2
12
10 4
Cycle-Time Driven. Batches.
Change
Over
Change
Over
No Flow
Attendance
No Flow
Uptime
Item Current Target
Total product cycle time
Parts / Person Hour
Delivery Performance
Inventory (days)
Overtime
Uptime
METRICS
Future State Map