What is Value Stream ?
“Value stream” is all the steps,both value added and
non- value added, required to bring a product from the
raw material through to the customer.
VALUE STREAM Customer
Process 1 Process 2 Process 3
Raw Material Finished Product
Process Kaizen V/S System Kaizen
FLOW KAIZEN
(Value Stream Improvement)
PROCESS KAIZEN
(Elimination of Waste)
• Flow kaizen focuses on material and information flow
(which require a high vantage point to see)
• Process kaizen focuses on people and process flow.
What is Value Stream Mapping ?
Another Tool for Lean Manufacturing …..
Value Stream Mapping (VSM) is one solution to the
problem of understanding and improving Value
Streams
Follow a product’s production path from beginning
to end, and draw a visual representation of
every process in material and information flows.
VSM Definitions
Cycle Time : How often a part or product is actually
completed by a process, as timed by observation.
Also, the time it takes a technician to go through all of
their work elements before repeating them.
Lead Time : The time required for one piece to move
all the way through a process or value stream, from
start to finish.
Process Time : The time a product is actually being
worked on in a machine or work area
Takt Time : The Rate of customer demand
VSM Levels
Process Level
BEGIN HERE
Single Plant
(Door to Door)
Multiple Plants
Across Companies
VSM Loops
DURACELL INDIA MANUFACTURING
MN1 5 0 0 CURRENT S TATE MAP - 3 1 /0 7 /0 1
Supplier
Customer
BEGIN HERE
PRODUCTION
CONTROL
MATERIALS
PLANNING
S UPPLIER
3 .5 LACKS/DAY
POWDER CONSOLE CELL AGING LASER WELD PACKAGING S HIPPING
MAKING MAKING ASS Y. & LABEL K &BLIS TER STAGING
5 12 12 15 6
1 6 9 9 18 15
POWDER CONSOLE BARE LABEL LED FG
2 -SHIFT 3 -SHIFT 3 -SHIFT CELL 5 -DAYS 3 -S HIFT CELL 3 -S HIFT STORES
PROD. LEAD
TIME= 5 0 .2 7 DAYS
4 5 -DAYS 0 .7 -DAYS 0 .5 7 -DAYS 1 -DAY 1 -DAY 1 -DAY 1 -DAY
PROCESS
TIME= 7 5 8 0 MIN.
2 5 5 MIN. 1 4 .5 MIN. 2 8 .5 MIN. 7 2 0 0 MIN. 4 0 MIN. 4 2 MIN.
Inhouse Loop
Supplier
Loop Raw Material
TECHNICIANS
TEMP. FG Store Customer
Store Loop
Initial VSM Steps
Product
Current State Map
Future State Map
Work Plan & Implementation
What is Current State Map?
• Understanding how the shopfloor currently operates.
• Material and information flows (currently to focus
on material flow only).
• Draw using icons.
• Start with door to door (inhouse loop)
VSM Icons
Material Represents Notes
Assembly
Manufacturing Process One process box equals an area of
flow. All processes should be
labeled. Also used for departments,
such as Production Control
Outside Sources Used to show customers, suppliers,
XYZ and outside manufacturing
Corporation processes.
Inventory Count and time should be noted
I
300 pieces
1 Day
VSM Icons
Material Represents Notes
Mon.
+ Wed. Truck Shipment Note frequency of shipments.
Movement of finished
goods to the customer
Technician Represents a person viewed from
above
Temp. Represents a person viewed from
above
What makes Value Stream Lean
Waste
The elements of production that add no value to
the product.
Waste only adds cost and time.
Waste is really symptom rather than root cause of the
problem.
Waste points to problems within the system (at both
process and value stream levels).
We need to find and address causes of waste.
Over Production – The Most Significant
Source of Waste
Over production
= Making more than is required by the next process
= Making earlier than required by the next process
= Making faster than required by the next process
Inventory Time
Extra Time
A B
Waiting Defects Waiting
Motion Time Time
Processing Waste
How to Avoid Over Production
Improve Linearity Index
Focus on consistency of production
Produce at a steady rate
Produce to requirement
Do not supply more than “required quantity” to the
customer – to prevent him from over producing
Improve equipment Utilization to avoid excess
stocking to cover up for exigencies.
Characteristics of a Lean Value Stream
Guideline # 1 : Produce to your takt time – Synchronizes space
of production to match pace of sales.
takt time is calculating by dividing the customer demand rate per
shift (in units) in your available working time per shift (in seconds).
Your available work time per shift
takt time =
Customer demand rate per shift
27,000 seconds
Example : = 59 seconds
455 pieces
Characteristics of a Lean Value Stream
Guideline # 2 : Develop Continuous Flow Wherever Possible
Material A Inventory
Inventory B Inventory
Material A B C Finished
Product
Inventory
C Finished
Product
ISOLATED ISLANDS CONTINUOUS FLOW
What is Future State Map ?
• It is the mapping of how we would like the shopfloor to
operate about 18 months from now.
• It is a pictorial representation of “what-can-we-do-with-
what-we-have” .
• It is a representation of our “lean value stream” of the
future.
How Do We Change Our
Current State Map ?
Answer the following questions :
• Question # 1 :Are we producing to takt time?
• Question # 2 : Where can we introduce continuous flow?
• Question # 3 : Should we work on “pull” systems or “push”
systems?
• Question # 4 : Where can we use pull system?
• Question # 5 : What process improvements will be
necessary for the value stream to flow as the future state
design describes? (This is the place to note any equipment
and procedural improvements that will be necessary, such
as reducing changeover time or improving machine
uptime.
Guidelines for Making
Future State Map
• There must always be a Future State Map – i.e.
continuous improvement at the value stream level
• When the Future State Map becomes a reality, a new
Future State Map should be drawn.
• Don’t get hung up trying to make all the details on the
Future State Map perfectly correct.
• Fine the Future State Map as the implementation
progresses.
Supermarket Pull system
1. Customer process goes to supermarket and withdraws what it needs when
it needs it.
2. Supplying process produces to replenish what was withdrawn.
“Production” KANBAN “Withdrawal” KANBAN
Supplying Customer
process process
New Withdrawn
product product
SUPERMARKET
Purpose: A way to control production between flows Controls production at
supplying Process without trying to schedule.
Try to schedule only 1 Point
Process 1 Process 2 Process 3 Process 4
Customer
SUPERMARKET
Process 1 Process 2 Process 3 Process 4
Customer
FIFO FIFO
SUPERMARKET
