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VSM is probably one of the most underestimated Lean tools. In fact, we could say it’s a waste not to use it. VSM ties together all Lean concepts and techniques. It makes it easier to visualize and truly understand the process at multiple level. The true value is understanding the necessity of making maps. This is not only ‘art for art’s sake’. You will learn how to create the end vision which is the baseline for developing Roadmaps for achieving ultimate success. To make life easier, we provide basic tools to create both maps and to run implementation plan
Upon completion of this workshop, you will be able to:
Understand why creating a VSM is crucial for succeeding in Lean
Create a value stream map for both the current and future states
Develop a data collection plan for the value stream map
Conduct end-to-end assessment of value-added versus non-value-added
Prioritize projects based on strategic objectives
Develop action plan to achieve the future state
1. Overview of Lean Thinking
2. Tools for VSM: make the life easier
3. Introduction to Value Stream Mapping
4. Identify a Value Stream
5. Create a Current State Value Stream Map
6. Analyze Value & Waste
7. Assess Opportunities
8. Develop a Future State Value Stream Map
9. Develop an Implementation Plan
3 enterprise value streams:
1. Raw Materials to Customer - Manufacturing
2. Concept to Launch - Engineering
3. Order to Cash - Administrative Functions
Value Stream Mapping
A Value Stream is the set of all actions (both value
added and non value added)
required to bring a specific product
or service from raw material
through to the customer.
“Whenever there is a product (or service) for a customer,
there is a value stream. The challenge lies in seeing it.”
Value Stream Mapping
Why Value Stream Mapping?
Ties together lean concepts and techniques
To set strategy before diving into tactics
Visualize the process at multiple levels
Enables us to see the flow and sources of waste
Provides a common language for analyzing processes
Provides a blueprint for creating flow and implementing Lean
concepts and techniques
throughout the entire value stream
Using the mapping process solely as a work design exercise
Using the map to make tactical improvements
Creating value stream maps during a kaizen event
Creating maps but taking no action
Mapping with an inappropriate team – or no team at all
Creating maps with no metrics…
Common Failings with Value Stream Mapping
• Creates an end-to-end view of the system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Work & Information Flow
Value stream mapping provides an overview of the
end-to-end business process
Value Stream Mapping Roadmaps
Define and scope
Select product family
Determine VSM objective
Map current state value
Quantify current state
Analyze and identify
Develop future state
value stream map
Implement the plan
• Phase 1 – Document and analyze the current state
Go to the Gemba!
• Phase 2 – Design the future state (3-6 month out)
• Phase 3 – Create the implementation plan!
VSM: Three Key Activities & Deliverables
Value Stream Walk - Three Actual Rules
“Go to the Gemba” - Actual place where
the process is performed.
Talk to the Actual people involved in the
process and get the real facts.
Observe and chart the Actual process.
Reality is invariably different from perception;
Few processes work the way we think they do.
The purpose of value stream mapping is to
identify waste, not to develop the perfect
Understand the process through facts and data!
GO WALK IT!
Collect current state information while walking the actual material flows
Walk the whole process first, then revisit and gather information at each
Begin at the shipping end and work ‘upstream’
When possible, establish original data:
get a detailed understanding, do your own timing
Historical data and what people tell you is normal is often wrong
Draw in pencil a sketch as you carry out the mapping, and clean up later
Current State Mapping Tips
Consider both the material and information flow
Materials flow – presents the movement of material through
Information flow – how does each process know what to produce
and in which sequence
Like two sides of the coin!
Key Metrics: Time
Cycle Time (CT)
The time it takes to actually perform the work, if one is able to work on
Includes task-specific doing, talking and thinking
Also called as “touch time”, work time.
Lead Time (LT)
The elapsed time from the time work is made available until it is
completed and passed on to the next person or department in the
Also called as throughput time, turnaround time, elapsed time
Includes Cycle Time, not merely waiting time.
3 Types of Work-in-Process (WIP)
Process 1 Process 3Process 2
but not yet
Process 2’s WIP
• From this figure it is
visible why the flow is
bad in the current
production. The bad
flow also causes
inventory between all
• The takt time is 532
sec. based on 2 shifts.
It is also clear that 2
shifts is not enough
on the machining
Takt time (2 shifts) = 108 sec.
• Calculation of takt
The daily demand:
The line operates 2
Takt time =
(2 x 7.5 x 3600)* /
500 pcs. = 108 sec.
• For every 108
seconds there must
be a new product
ready for shipping
Current State – Leveling of Cycle Times
* 2 shifts x 7.5 hours per shift x 3600 seconds per hour
= Value added
Production Lead Time = 35 Days
Value added time (VA) = 41 Sec.
Timeline. Value added and non-value added activities
Process 2 Process n
Robotic CT= 1.42 mins
Manual CT = 15.7 mins
Auto CT = 1.43 minsCT = 3.54 mins
Turret CT = 1.8 mins
AP CT = .5 mins
BP CT = 1.17 mins CT = .5 mins
Assy/PO CT=3 mins
Paint CT = 90 mins
I 811 pcs.
.08 days 1.5 days
LT = 17.57 days
PT = 114.54 mins
PT to LT = 0.68%
PT to LT
Current State Value Stream Map
Transforming from Current State to Future State
Next Future State
Developing Future State
Future State Questions:
1. What is the TAKT time?
2. Will we build to shipping or to a supermarket?
3. Where can we use continuous flow?
4. Where do we have to use supermarket pull systems?
5. At what single point in the production chain do we trigger
6. How do we level the production?
What process improvement will be necessary?
(e.g. uptime, changeover, training, etc.)
1. The team starts and ends the day together; begin and end
2. No interruptions or distractions – 100% focus; phones on
silent; no email; no texting
3. Rank has no privilege
4. Seek the wisdom of ten instead of the knowledge of one
5. Use creativity before capital (in designing improvements)
To be continued…
VSM Improvement Activities:
Rules of Engagement (1)
Define tasks (1)
To get an overview of the tasks, Kaizen events are added to
the “Future State” before the tasks are defined.
Kaizen events are drawn as “stars” or “bursts”.
Kaizen events aim to improve workplace organization (5S),
increase uptime (OEE), reduce changeover times (SMED),
implement Kanban, arrange the cell, cross-training, work
When mapping the value stream, Kaizen is used to define the
overall tasks to achieve the future value stream.
PACE Prioritization Matrix
Plan upfront: Select Product Family(ies), Communicate data
requirements, Assign specific tasks to everyone involved
Go out on the floor!
Measure times with a stopwatch, count inventory manually
Regarding production planning, get the “official” story from the planner; get the
actual practice from the line supervisor or lead
Record the VA and NVA times for every step
Brainstorm problem areas before starting the Future State VSM
The Future State VSM is the roadmap of a lean transformation
Challenge all “monuments”
Set high goals
stamping welding assembly
Value Stream Mapping: Summary
Value Stream Management
The map is just a picture of ideas!
The fundamental change is in how we choose to
manage the value stream as an integrated system of
decisions and tasks.
Value Stream Management
Use your strategic plan as a guide
Find the gaps in necessary performance
Improve value streams to meet the performance
Create new metrics to support new ways of thinking and
Understand true product family costs
Manage operations by the value stream data
Always have a future state!
Critical sucess factors
Management must understand, embrace, and lead the
organization into lean thinking.
Value stream managers must be empowered and enabled
to manage implementations.
Improvements must be planned in detail with the cross
functional Kaizen teams.
Successes must be translated to the bottom line and/or
Planning and implementing
You need a plan!
• Tie it to your business objectives
• Make a VS Plan: What to do by when
• Establish an appropriate review frequency
• Conduct VS Reviews walking the flow