Value Stream Mapping
Bill Paolucci
IPFW
March 17, 2009
Discussion Points
1. Introduction & Getting Started
2. The Current State Map
3. Lean Value Stream
4. The Future State Map
5. Achieving the Future State
6. Conclusion
The Goal is to develop your ability to
“see the flow” and design a future state
Why Lean Manufacturing?
Past Profit Cost Price Mass
0 Production
Market
Present Profit Cost Price
Market
Future Profit Cost Price
Lean
Organization
0
Lean Manufacturing
Value Stream
Waste
Lean Manufacturing is a group of strategies for the
identification and elimination of the waste inside
the Value Stream.
What Have We learned so far…
• Value Stream mapping looks at the material and information
flow in a value stream.
• A product family matrix is used to identify and group products
into families based on whether they pass through similar steps in
your downstream process.
• A Value Stream Manager is the lead person with the
responsibility for understanding a product family’s value stream
and improving it.
• The recommended level for beginning to map for a product
family is door-to-door in an individual facility.
The Current State Map
Points To Remember….
• The best way to draw a value stream map is in pencil on the
work floor, mapping the whole value stream yourself.
• Lead time is the time it takes one piece to move all the way
through a process or a value stream from start to finish
• Data boxes should contain information based on what you
observe as you draw your map.
• The process of value stream mapping begins with the
Supplier.
current state map. (less than 5 minutes)
More Points Learned…
• Takt time is the customer demand rate
• A supermarket is used where continuous flow is not possible
due to distance, unreliability, or where processes serve
multiple product families
• A pacemaker process responds to the external customer, and is
usually the point at which production is scheduled in the door-
to-door value stream.
• Overproduction is usually the most significant source of waste
in a value stream.
Why Not Flow From Weld - Assembly
• No Reason!!
• The lean approach is to place these four
processes immediately adjacent to one
another (cellular)
• Have the operators pass parts from one
process to another.
• Keep operator’s work content just below the
takt time.
Cycling Faster than Takt Time
(Operator Balance Chart)
62s Takt = 60 sec
46s
Assy
40s
39s
Assembly
Assembly
Assembly
Weld
Stamping 1s
Weld
Weld
Current Process Takt Weld
After Kaizen Takt
Lead Time Improvements
Coils Stamped Weld/Assy Finished Production Total
Parts WIP Goods Lead time Inventory
Turns
Before 5 days 7.6 Days 6.5 Days 4.5 Days 23.6 Days 10
Cont Flow 2 days 1.5 days 0 4.5 days 8 days 30
& Pull
With 1.5 days 1 day 0 2 days 4.5 days 53
Leveling
Recap
• Kanban cards are used to provide an instruction that regulates
the sequence and timing of production.
• When calculating takt time do not include lunches, breaks,
machine downtime, and any other unavailable production time.
• Pitch is a consistent increment of schedule used to level
production volume and help detect production abnormalities at a
pacemaker process
• Finished goods supermarket can be utilized to help maintain a
level volume of pacemaker work even when customer demand
rises and falls.
future state map
Think Good Flow (5S)
• Small
– Keep equipment footprint small
– Don’t overbuild equipment, keep to the basics
• Simple
– Standard method must be easily understood
– Equipment setup and operation is easily maintained
• Smooth
– Don’t design in unnecessary WIP
– Manage to the takt time
– Target one piece being processed
• Short
– Maximize Manufacturing Cycle Time, reduce lead-time
– Eliminate Non-valued added operations
• Stabile
– Implement operator training, simple instructions
– Utilize Total Productive Maintenance
– Insist on Quality at the Source
Manufacturing Cycle Efficiency
Cycle Efficiency is measured as the amount of value added time in a process divided
by the total lead time. It can be used to gauge the potential for cost reductions.
Value-Added Time
Manufacturing Cycle Efficiency = Total Lead Time
Stretch Objective: A Lean process is one in which the value-added time in the process is more
than 25% of the total lead time of that process. Improvements in Cycle Efficiency will result in:
• Reduction in quality costs
• Shorter lead times increasing process flexibility
• Less inventory, reducing storage cost and increasing inventory turns
• Elimination of wastes due to scrap and repair resulting in improved
manufacturing overhead cost
Where: Cycle Efficiency should be collected at the end of the process.
When: Cycle Efficiency should be collected and used, at minimum, semi-annually. When a
project or kaizen has been implemented to set a new baseline, or when projects are being
evaluated for cost reduction potential.
Manufacturing Cycle Efficiency Calculation
Manufacturing Cycle Efficiency = Value-Added Time
Total Lead Time
Value added time = 3 hours
Total lead time = 96 hours ( 12, 8 hour days)
Manufacturing Cycle Efficiency =
3
96
Process Cycle Efficiency = 3.125 %
Process Lead Time can be estimated by:
Process Lead Time = Number of “Things” in Process (WIP)
Completions per Hour
Typical and world-class cycle efficiencies
Application Typical World-Class
Machining 1% 20%
Fabrication 10% 25%
Assembly 15% 35%
Continuous Manufacturing 30% 80%
Business Process - Transactional 10% 50%
Business Process- Creative/Cognitive 5% 25%
Lean Tools
Supplier
Participation Six Sigma
Poka-Yoke SMED
One-Piece
TPM Kanban
Flow
Value Stream Mapping
Eliminate Waste
Continuous Visual
Improvement Management Kaizen
Standardized Empowered
Work Teams 5S Safety
Seeing The Whole
(mapping the extended value stream)
Process Level
Creating Continuous Flow
Single Plant
Learning to See
Multiple Plants
Across the Company
When you have learned to see value streams in individual
facilities, it’s time to see and then to optimize entire value
streams, from raw materials to customer.
Acknowledgements
• Lean Enterprise Institute (LEI)
• Learning to See
– Mike Rother
– John Shook
Questions?
Thanks For Your Attendance
