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Value Stream Mapping

Presented By

Jaipravin

PSG Tech

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Introducing VSM

What is VSM?

An example from Learning to See

By Mike Rother and John Shook

Current-state Map (snap shot)

Future-state Map

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Why Value Stream Mapping?

Helps to see the present

state

See the sources of waste in

the value stream

A graphical representation

which can be used to study

the effect of any change onthe performance measure

Lead time

Total processing time

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Value Stream Improvement andProcess Improvement

- A Case Study

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Understanding the VSMTool

Designing a lean flow

and how to get there

ProductFamily

ImplementationEventually

repeat

Understanding how the shop

floor currently operates.

Current-State

Drawing

Future-StateDrawing

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Value Stream Mapping

A Value Stream Map is a visual representation, or map,

identifying all the specific activities occurring along the valuestream for a product or service. This map is designed to not onlyidentify the value added activities within the value stream, butmore importantly the sources of "non-value added"(waste).From this identification a "future state map"is created of how theproduct or service should flow without the "non-value added"sources of waste that cloud customer satisfaction.

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Benefits of value chain mapping

It helps you see the entire flow of a product or service, beyondthe single-process level.

It helps you see more than waste. The map identifies thesources of non-value added waste.

It provides a "common language" for talking about your keycustomer processes. -It provides information about the flow of

the product or service so discussions are based on data prior todecisions being made.

It brings together "lean enterprise" concepts and techniques.

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Benefits of value chain mapping

It forms the basis of an implementation plan or blueprint forlean enterprise accomplishment through Kaizen or othercontinuous improvement methods.

It shows the linkage between information flow and materialflow.

It is a visual tool for describing what you are actually going

to do to eliminate the sources of non-value added (waste)that impacts your bottom line and your customer andemployee satisfaction positively!

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Cycle Time? (for a process)

Time taken for a part to complete a given process

(or the time it takes for an operator to go through all

of his/her work elements before repeating them)

Terms

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Value Added Time?

Terms

Time associated with those activities that

actually transform the part in a way that thecustomer is willing to pay for.

VA Time

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Lead Time?

Cycle timefor all

processes+

Other VAtime

WaitingTime(NVA)

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Lead Time?

Terms

The time taken forone part to move

through all the

processes of avalue stream; from

start to finish- or -

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Typical Steps for Current StateDrawing

1. Customer information

2. Quick walk through in the shop floor to identify the

main processes (in order)

3. Fill in the data boxes and draw inventory triangles

4. Delivery to customer

5. Supplier data

6. Information flow (manual & electronic)

7. Determine the current state and identify what is VA

and NVA

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The Current State

Define the Customers demand

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Customer Requirements

18,400 pieces per month

12,000 per month of type LH

6,400 per month of type RH

The company operates on two shifts

Palletized returnable tray packaging with 20 brackets

in a tray and upto 10 trays on a pallet. The customer

orders in multiple of trays

One daily shipment to the assembly plant (customer)

by truck

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Customer Requirements

Assembly Plant(customer)

18,400 units per month

12,000 LH

6,400 RH

20 units per tray

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The Current State


Map the basic production processes

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Mapping The Process

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Mapping tips

Do an initial quick walk through from door to door

and then go back to gather the information

Begin at the shipping dock (customer end) and

work upstream to the receiving dock (supplier end)

Let each person/team map entire value stream

himself/herself

Mapping begins with the customer requirements

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Mapping IconsCurrent-State Drawing

I

Inventory(incl. count & time)

Days of Inventory

TruckShipmentTue & Fri

Electronic

Information flow

1 timedaily

I

2 ShiftsCycle timeC/O time

VA Time

Data Box

Pr. Control

MRP

Material

movement

via push

Stamping Assembly

2 ShiftsCycle timeC/O time

Manual

Information

flow

Manual

Information

flow

I

ManufacturingProcess (or a

Department)

Assy. Plant(customer)

Outside Sourceor Customer

Raw Matl.supplier

M h B i P d i P

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Map the Basic Production Processes

Assy. Plant

(customer)18,400 units/month

12,000 LH

6,400 RH

20 units/tray

I

Stamping

1

I

SpotWelding #1

1

I

SpotWelding #2

1

I

Assembly#1

1

I

Assembly#2

1

I

Shipping

1

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The Current State contd



Define the data to be collected

Cycle time (C/T)

Changeover time

(C/O)

Batch size

Pack size

No. of operators

Working time

(in secs minus breaks)

Uptime

Scrap rate OEE

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The Current State



Define the data to be collected Collect and map the data

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Working time calculation

8 Hours x 60 mins/hr x 60 secs/min

= 28,800 s/shift

Subtract breaks:

2 x 10 mins break = 20 mins x 60 s/min

= 1,200 s

28,800 1,200 = 27,600 working s/shift

Fill i D t b d

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Fill in Data boxes andInventory triangles

C/T 1 s

C/O 480 s

Uptime 85 %

Workingtime

27,600 s

C/T 39 s

C/O 600 s

Uptime 100 %

Workingtime

27,600 s

C/T 46 s

C/O 600 s

Uptime 80 %

Workingtime

27,600 s

C/T 62 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

C/T 40 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

Coils5 Days

4600 LH2400 RH

1100 LH600 RH

1600 LH850 RH

1200 LH640 RH

2700 LH1440 RH

18,400 units/month

12,000 LH

6,400 RH

20 units/tray

I

Stamping

1

I

SpotWelding #1

1

I

SpotWelding #2

1

I

Assembly#1

1

I

Assembly#2

1

I

Shipping

1

Assy. Plant

(customer)

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The Current State




Define the suppliers data

Add S li D t

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Add Suppliers Data

Raw Mtl.Supplier

Coils5 Days

4600 LH2400 RH

1100 LH600 RH

1600 LH850 RH

1200 LH640 RH

2700 LH1440 RH

18,400 units/month

12,000 LH

6,400 RH

20 units/tray

I

Stamping

1

I

SpotWelding #1

1

I

SpotWelding #2

1

I

Assembly#1

1

I

Assembly#2

1

I

Shipping

1

Assy. Plant

(customer)

Tue & Fri

I timedaily

C/T 1 s

C/O 480 s

Uptime 85 %

Workingtime

27,600 s

C/T 39 s

C/O 600 s

Uptime 100 %

Workingtime

27,600 s

C/T 46 s

C/O 600 s

Uptime 80 %

Workingtime

27,600 s

C/T 62 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

C/T 40 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

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The Current State





Map the information flow

How do processes know

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How do processes knowwhat to make?

Pr. Control

MRP

6 week forecastRaw Mtl.Supplier

Coils5 Days

I

4600 LH2400 RH

1100 LH600 RH

1600 LH850 RH

1200 LH640 RH

2700 LH1440 RH

Weekly forecast

90/60/30 Dayforecast

Daily order

Daily Ship

Schedule

Weekly Schedule

18,400 units/month

12,000 LH

6,400 RH

20 units/tray

I

Drilling

1

I

SpotWelding #1

1

I

SpotWelding #2

1

I

Assembly#1

1

I

Assembly#2

1

I

Shipping

1

Assy. Plant

(customer)

Tue & Fri

I timedaily

C/T 1 s

C/O 480 s

Uptime 85 %

Workingtime

27,600 s

C/T 39 s

C/O 600 s

Uptime 100 %

Workingtime

27,600 s

C/T 46 s

C/O 600 s

Uptime 80 %

Workingtime

27,600 s

C/T 62 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

C/T 40 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

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The Current State





Map the information flow

Calculate the status of the current state

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Value added vsNon value added time (Time Line)

C/T 1 sec

C/O 480 sec

Uptime 85 %

Workingtime

27,600 sec

I

Coils

5 Days

Stamping

1

I

4600 LH2400 RH

5 Days

1 sec

Customer Demand

12,000 LH/month 6,400 RH/month

12,000/20 = 600 LH per day

6400/20 = 320 RH per day

4,600/600 = 7.7 days

2400/320 = 7.5 days

7.7 Days

Max.

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Current State value stream mapping

Pr. Control

MRP

6 week forecastRaw Mtl.Supplier

Coils5 Days

4500 LH2500 RH

1000 LH700 RH

1500 LH950 RH

1100LH740 RH

2600LH1540 RH

Weekly forecast


Daily order

Daily Ship

Schedule

5 Days

1 sec

7.7 Days

39 secs

1.8 Days

46 secs

2.7 Days

62 secs

2 Days

40 secs

4.5 DaysProduction lead

Time = 23.7 days

ProcessingTime = 188 secs

Weekly Schedule

18,400 units/month

11,500 LH

6,900 RH

20 units/tray

I

Reaming

1

I

1

I

Internalthreading

1

I

Threadchecking

1

I

Insertingo-ring

1

I

Shipping

1

Assy. Plant

(customer)

Wed1 timedaily

C/T 1 s

C/O 480 s

Uptime 80 %

Workingtime

27,600 s

C/T 39 s

C/O 600 s

Uptime 100 %

Workingtime

27,600 s

C/T 46 s

C/O 600 s

Uptime 85 %

Workingtime

27,600 s

C/T 62 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

C/T 40 s

C/O 0 s

Uptime 100 %

Workingtime

27,600 s

Honing

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Analyse the ImprovementOpportunities

Compute the takt time

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What is our Productionfor each shift

18,400 pieces per month

12,000 per month of type LH

6,400 per month of type RH

12,000 LH/20 = 600 LH/day

6,400 RH/20 = 320 RH/day

600 + 320 = 920 pcs/day/2 shifts = 460 pcs/shift

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Takt time (Drum beating)

How to synchronise the pace of production to match thepace of sales

Rate for producing a component based on its sales rate

Takt time =Operating time per shift

Customer requirement per shift

27,600 secsper shift

460 pcsper shift

= 60 sec60 sec

60 sec

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The Principles of Just-In-Time

Paced to Takt Time

One piece flow production

At the Pull of the customer

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Continuous flow

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Continuous flow processing?

Lead time: 30++ minutes for total order

Continuous Flow make one, move one

Batch & Push ProcessingProcess

A

ProcessB

ProcessC

ProcessA

ProcessB

ProcessC

Lead time: 12 minutes for total order

1 min

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Continuous flow

Determine what prevents us fromproducing to takt time

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Line Balancing

East,Stamping, 1

East, Weld#1, 39

East, Weld#2, 46

East,Assemble #1,62

East,Assemble #2,

40

Total work = 188 sec Takt time = 60 sec

= # Operators reqd. 188/60 = 3.13 Operators

Bottleneck operation

work

Takt

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Line Balancing contd

If 3.13 operators are required, 4 operators are

wasteful; but 3 operators cant do the work

Combine some tasks? Can the work be reduced to 56 s per operator so

that pace can be maintained?

Find a way to reduce the total work content to

168 s or less

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Line Balancing contd

East,Stamping, 1

East, Weld,39 East,

Weld/Assy, 29

East,Assemble, 56

, Weld, 17 , Weld/Assy,27

56 56 56

Earlier processing time = 1 + 39 + 46 + 62 + 40 = 188 sec

New processing time = 1 + 39 + (17 + 29) + (27 + 56) = 169 sec

{102 sec. of assy time reduced to 83 sec}

S W W A A

S W W A

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What if flow is not possible?

Kanban: only make the customer wants

Machining Assembly

Pull

PW W

Pull

Product Product

The future state

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The future state

EPE 1 min

C/O 480 sec

Takt 60 sec

C/O 56 sec

C/O 0 sec

Uptime 100 %

Workingtime

2 shifts

Future-State Drawing

Pr. Control

MRP

6 week forecastRaw Mtl.Supplier Weekly forecast


Daily order

Daily order

1.5 Days

1 sec

1 DayProduction lead

Time = 4.5 days

ProcessingTime = 169 secs

18,400 units/month

12,000 LH

6,400 RH

20 units/tray

Stamping

1

Weld &Assembly

Shipping

Assy. Plant

(customer)

Daily

Coils

changeover

L

R

XOXOBatch

1 Day

weld

changeover

welderuptime

Total work169 sec

At the press

168 sec

2 Days

3 2 Days

20w

20P

20w

20w

I timedaily

Coil

Coil

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Significant Improvements

Lead time reduced by 81%

Processing time reduced by 10%

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