Engineering

Management
MSE507
Lean Manufacturing

Learning to See Parts I, II, III

A Value Stream Mapping Workshop
Mike Rother & John Shook
Lean Enterprise Institute
 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 can’t”
 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

 Create a matrix if your mix is complicated

Assembly and Equipment

1 2 3 4 5 6
X X X X X
F E D C B A

A Product
X X X X X X
Products

Family
X X X X X
X X X
X X X
X X X X
 Create a Matrix
Complicated

Weight part by machine used.

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

0103-02 Family Matrix.xls

 Create a Matrix
Complicated
Sort by weighted part; Weight machine by part used.

Machine
Part Part 2 Part 5 Part 3 Part 6 Part 8 Part 4 Part 7 Part 1 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.

Machine
Part Part 2 Part 5 Part 3 Part 6 Part 8 Part 4 Part 7 Part 1
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
 Value Stream Step 1
Levels of a Value Stream

 You can value stream map at

different levels Process Level
 Across companies is too
complicated to start with
Single Plant
 Start mapping door-to-door (Door-to-door)
within your own facility:
• This is under your control
• It is easier to make Multiple Plants
improvements immediately
 Expand outward to broaden the
Across Companies
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.
 Example

PROCESS BOX ICONS

DATA BOX ICONS

- C/T time
- C/O time
- Up time
- Scrap
Information Flow Example

INVENTORY ICONS
WITH PUSH ARROWS

Material Flow
 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 C/T=45 sec.

XYZ C/O=30 min. I
Corporation 3 Shifts. 300 pieces
2% Scrap 1 day
Process Supplier/
Box Customer Data Box Inventory Supermarket

Mon
+ Wed
FIFO

Shipment Push Physical Finished Goods First-In-First-Out

Pull to Customer
 Information Flow Icons

Weekly
Schedule OXOX

Manual Electronic Load Sequenced-Pull

Information Flow Information Flow Schedule Leveling Box Ball

Withdrawal Production Signal Kanban

Kanban 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
First - Show the Value Stream Step 4
Customer Current State Map - 1st View

State St.
Assembly

18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.

2 Shifts
Second - add the Value Stream Step 4
major Processes, Current State Map - 2nd View
Data Boxes, and
Inventory Triangles
State St.
Assembly

18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.

2 Shifts

S. Weld # 1 I
I Stamping I I S. Weld # 2 I Assy # 1 Assy # 2 I Shipping
Coils 4600 L 1100L 1600 L 1200 L 2700 L
2400 R 600 R 850 R 640R 1440 R
5 days
CT=1sec. CT=39sec CT=46sec CT=62sec CT=40sec
Co=1 hr. .Co=10 min. .Co=10 min. .Co=0 .Co=0
Uptime=85% Uptime=100% Uptime=80% Uptime=100% Uptime=100%
27,600 sec. avail 2 shifts 2 shifts 2 shifts 2 shifts
27,600 sec.avail
EPE=2 weeks 27,600 sec.avail 27,600 sec.avail 27,600 sec.avail

The data obtained is put in the data box

directly beneath the process box.
Third - Show the Value Stream Step 4
Material Flow Current State Map - 3rd View

The supplier of raw material is State St.

Michigan identified with a factory icon. In Assembly

Steel Co. this case they deliver 500 ft coils

18,400 pcs/mo

500 Ft. Coils -12,000 “L”

-6,400 “R”
Tray=20 pcs.
Tues &
Thurs. 2 Shifts

A truck icon and broad arrow indicate

1X
movement of finished goods to the Daily

customer and raw material to the site.

I Stamping I S. Weld # 1 I S. Weld # 2 I Assy # 1 I Assy # 2 I Shipping

4600 L 1100L 1600 L 2700 L

Coils 1200 L
2400 R 600 R 850 R 640R 1440 R
5 days CT=1sec. CT=39sec CT=46sec CT=62sec CT=40sec
Co=1 hr. .Co=10 min. .Co=10 min. .Co=0 .Co=0
Uptime=85% Uptime=100% Uptime=80% Uptime=100% Uptime=100%
27,600 sec. avail 2 shifts 2 shifts 2 shifts 2 shifts
27,600 sec.avail
EPE=2 weeks 27,600 sec.avail 27,600 sec.avail 27,600 sec.avail
 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.
Fourth - show Value Stream Step 4
Information Flows Current State Map – 4th View
& Push Arrows
Production 90/60/30 day
6 WEEK State St.
Control Forecasts
Forecast Assembly

Michigan MRP Daily

Order
Steel Co. 18,400 pcs/mo
-12,000 “L”
-6,400 “R”
500 ft. Coils
WEEKLY SCHEDULE Tray=20 pcs.

2 Shifts
Tues &
Thurs.

1X
Daily

I
Coils S. Weld # 1 S. Weld # 2 Assy # 1 Assy # 2 Shipping
Stamping I
5 days I
4600 L I I I
1100R
2400 R 1600 L 2700 L
600 R 850 R CT=62sec 1200 L 1440 R
CT=1sec. CT=39sec CT=46sec 640R CT=40sec
.Co=10 min. .Co=10 min. C
. o=0 .Co=0
Co=1 hr.
Uptime=85% Uptime=100% Uptime=80% Uptime=100% Uptime=100%
27,600 sec. avail 2 shifts 2 shifts 2 shifts 2 shifts
27,600 sec.avail
EPE=2 weeks 27,600 sec.avail 27,600 sec.avail 27,600 sec.avail
 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
Fifth (Final) - Show Value Stream Step 4
Timeline Current State Map – 5th View
6 WEEK Production 90/60/30 day
Forecasts State St.
Forecast Control Assembly

Michigan MRP Daily

Order
Steel Co. 18,400 pcs/mo
-12,000 “L”

500 ft. Coils -6,400 “R”

WEEKLY SCHEDULE Tray=20 pcs.
2 Shifts
Tues &
Thurs.

1X
Daily

I
Coils Stamping S. Weld # 1 S. Weld # 2 Assy # 1 Assy # 2 Shipping
5 days I
I
4600 L I I I
2400 R 1100R 1600 L 2700 L
600 R 850 R CT=62sec 1200 L 1440 R
CT=1sec. CT=39sec CT=46sec 640R CT=40sec
Co=1 hr. .Co=10 min. .Co=10 min. Co=0
. .Co=0
Uptime=85% Uptime=100% Uptime=80% Uptime=100% Uptime=100%
27,600 sec. avail 2 shifts 2 shifts 2 shifts 2 shifts
EPE=2 weeks 27,600 sec.avail 27,600 sec.avail 27,600 sec.avail 27,600 sec.avail (PLT)
5 1 7.6 days 1.8 days 2.7 days 2 days 4.5 days=23.6 days
days sec (PT)
39 sec 46 sec 62 sec 40 sec =188 sec
Fifth (Final) - Show Value Stream Step 4
Timeline Current State Map – Complete View
6 WEEK Production 90/60/30 day
Forecasts State St.
Forecast Control Assembly

Michigan MRP Daily

Order
Steel Co. 18,400 pcs/mo
-12,000 “L”

500 ft. Coils -6,400 “R”

WEEKLY SCHEDULE Tray=20 pcs.
2 Shifts
Tues &
Thurs.

1X
Daily

I
Coils Stamping S. Weld # 1 S. Weld # 2 Assy # 1 Assy # 2 Shipping
5 days I
I
4600 L I I I
2400 R 1100R 1600 L 2700 L
600 R 850 R CT=62sec 1200 L 1440 R
CT=1sec. CT=39sec CT=46sec 640R CT=40sec
Co=1 hr. .Co=10 min. .Co=10 min. Co=0
. .Co=0
Uptime=85% Uptime=100% Uptime=80% Uptime=100% Uptime=100%
5 27,600 sec. avail 2 shifts 2 shifts 2 shifts 2 shifts
days 27,600 sec.avail
EPE=2 weeks 27,600 sec.avail 27,600 sec.avail 27,600 sec.avail (PLT)
1 7.6 days 1.8 days 2.7 days 2 days 4.5 days=23.6 days
sec 39 sec 46 sec 62 sec 40 sec (PT)
=188 sec
 What’s wrong with Acme’s 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.
 Value Stream Step 5
Eliminate Waste

1. Overproduction
2. Waiting
3. Transportation
4. Unnecessary Processing
5. Inventory
6. Unnecessary Motion
7. Correction

 Wasting A Person’s time or talent

 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 can’t 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
PURPOSE: Controls production at supplying process without trying to schedule. Controls
production between flows

Production KANBAN Withdrawal KANBAN

Supplying Customer
Process Process

A PRODUCT B

1) CUSTOMER
Supermarket
 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
 Value Stream Step 5
Schedule Only One Point

 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) 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?