Value stream mapping

Operational Excellence
Value Stream Mapping
What is Value Stream Mapping?
• Key component of Value Stream Management
• Popularized by Mike Rother and John Shook in their book Learning to See:
Value Stream Mapping to Create Value and Eliminate Muda, 2003, Lean
Enterprise Institute
• Simple pencil-and-paper tool which documents flow of material and
information within a product family
• Current State Map highlights opportunities to reduce waste through the
application of lean production principles
• Waste minimization activities are addressed through Kaizen Proposal
(Continuous Improvement Plan)
• This results in the Future State Map which depicts the optimized process
1/21/2017 Ronald Morgan Shewchuk 1

Why is Value Stream Mapping Important?
Lean Manufacturing Infrastructure Six Sigma
The House of Quality
Customer Satisfaction
Market Leadership
Our
People
Our
Technology
Our
Shareholders
Our
Customers
Our
Community
Waste
Minimization
VOC
Standardized
Work
5S+Safety
TPM
SMED
Pull System
Flow
Value Stream
Poka-yoke
Variation
Minimization
DMAIC
Process Map
C&E Diagram
MSA
SPC
ANOVA
FMEA
DOE
Control Plan
Value Stream Management is a Key Component of the Lean Six Sigma Tool Kit

Lean Six Sigma Tool Kit
Phase
Define 1. Define Problem Statement Project Prioritization Matrix Quality Function Deployment
2. Define Problem Scope Project Charter Template Voice of the Customer
3. Define Project Objective(s) Financial Analysis Kano Analysis
4. Define Project Metrics SIPOC Diagram Pugh Matrix
5. Calculate Financial Benefit
6. Select Team Members
Measure 7. Measure Current State Process Flow Diagram Variable/Attribute Sampling Plan
8. Validate Measurement System Basic Flow Chart Pareto Chart
9. Establish Reporting and Communication Mechanism for Metrics Swim Lane Map Check Sheet
Spaghetti Chart Run Chart
Current State Value Stream Map Measurement System Analysis
Analyze 10. Analyze Data to Identify Cause & Effect Relationships Scatter Diagram Histogram
11. Determine Process Capability and Speed Process Capability Analysis Hypothesis Testing
12. Determine Sources of Variation and Time Traps Supply Chain Accelerator Time Multiple Regression Analysis
Supply Chain Trap Analysis Analysis of Variance (ANOVA)
Affinity Diagram Cause and Effect Matrix
Cause and Effect Diagram Defect Characterization
Correlation Analysis Multivariate Analysis
Box Plot Failure Mode and Effect Analysis
Marginal Means Plot Statistical Process Control Chart
Interactions Plot Takt Time
Root Cause Analysis Theory of Constraints
Improve 13. Develop Solution Alternatives Based Upon Validated Root Causes Benchmarking Production Leveling
14. Conduct Experiments to Validate Solution Alternatives PICK Chart Work Cell
15. Iterate Analyze/Improve Phases to Identify Optimum Solution Pull Systems/Kanban Fault Tree Diagram
Setup Reduction Gantt Chart
Total Productive Maintenance Pert Chart
Reliability Centered Maintenance Critical Path Management
Single Minute Exchange of Dies Future State Value Stream Map
Design of Experiments 5S+Safety
Evolutionary Operation (EVOP) Design for Lean Six Sigma (DLSS)
Control 16. Sustain the Gains Control Plan Statistical Process Control
17. Develop Control Plan Check Sheet Training
18. Document New Work Standard Refresher Training Process Trouble-Shooting Diagram
19. Train Personnel on New Work Standard Process Trouble-Shooting Guide Poka-yoke
20. Monitor Performance Visual Controls Standardized Work
21. Mistake-proof Process
ToolsActivity

Is Value Stream Mapping Right for You?
My process is complex with
multiple material and
information hand-offs. It seems
like there are lots of delays. Can
Value Stream Mapping help me?
Yes – it sounds like you
are a good candidate for
Value Stream Mapping.

Definitions
Value Stream: All the actions involved in bringing a product or group of products from
raw material to finished goods accepted by a customer.
Value-Added Time: The process time required to transform the product in a way that
the customer is willing to pay for (eg the residence time of an oven in a bakery).
Non Value-Added Time: The process time spent waiting in between value-added unit
operations (eg the time a finished good spends in bulk inventory before filling into
shipping containers).
Cycle Time (Manufacturing): The residence time of the unit operation (continuous
process) or the batch time of the unit operation (non-continuous process) or the time it
takes an operator to go through all of their work elements before repeating them.
Cycle Time (Service): The time required to complete a task assuming 100% devotion to
the task completion.

Lead Time (Manufacturing): The time it takes for one piece or one pound of material to
move all the way through the process or value stream from start to finish. Consider a
pound of material being “tagged” at the front of the process and then measuring the
time for the “tagged” pound to appear at the end of the process.
Lead Time (Service): The actual average time required to complete a task recognizing
that personnel cannot devote 100% of their time to a single task completion.
Change Over Time: The time required to change a unit operation from manufacturing
one product at target yield to manufacturing a different product at target yield.
Available Time: Total production time per day minus planned downtime.
Up Time: Available Time minus un-planned down time divided by Available Time
expressed as a percent. Same as process reliability.
Takt Time: Synchronizes production pace to match the pace of sales. Calculated by
dividing Available Time per day by Customer Demand per day.
Definitions

Calculation Examples
Customer Demand = 100 units/wk = 20 units/day
1
2
3
4
5
6
7
8
9
10
11
12
Operation 1 to Operation 2 Lead Time
= Inventory Qty/Daily Customer Demand
= 230 units/20 units per day
= 11.5 days
Operation 2 Takt Time
= Available working time per day/Daily Customer Demand
= 22 hr per day/20 units per day
= 1.1 hr

Lean Production Principles
1. Identify what is of value to the
customer
2. Map the current state value stream
3. Identify opportunities for Lean Waste
reduction
4. Act to reduce Lean Wastes
5. Identify new improvement
opportunities
Lean Production means one piece flow pulled by customer demand
Step 1
Define
Customer
Value
Step 2
Map Current
State Value
Stream
Step 3
Identify Lean
Wastes
Step 4
Act to Reduce
Lean Wastes
Step 5
Identify Next
Improvement
Opportunities

Voice of the Customer
• Value is defined by the customer.
• A preliminary step to starting the current state value stream map is to understand
the needs of your customer.
• This could be an internal customer such as a department which receives your
work product, or an external customer, the one paying the bills.
• In either case it is essential for you to define the product quality characteristics,
performance requirements, service expectations, etc. which are important to the
customer. This is called the Voice of the Customer.
• The best way for you to understand customer requirements of your product
and/or service is to go see them.
• Observe how the product or service is being utilized within the customer’s
operation.
• Ask them what their top three frustrations with your product are.
• Don’t make the bold assumption that you know what should be important to the
customer.
• The customer defines the quality and service characteristics which are important.
• The information that you glean from your observations and simple questions can
totally change the focus of your process improvement and ultimately lead to
improved levels of satisfaction by both customer and supplier.

The Hallmark of Lean Production
• The hallmark of Lean Production is the reduction of waste
• Taiichi Ohno of Toyota identified the following seven sources
of waste
1. Mistakes/ Defects – Errors requiring correction
2. Over Production – Items not immediately needed
3. Over Processing – Steps not actually needed
4. Transportation – Movement of materials not adding value
5. Motion – Unnecessary movement of equipment and/or people
6. Inventory – Work In Process and finished goods excess
7. Waiting – Production delays
These are the things you will want to identify and document during your Value Stream
Mapping walk-through

Value Stream Mapping – Step 1
1 2 3 4 5 6 7 8
A X X X X X
B X X X X X X
C X X X X X X
D X X X X X
E X X X X X
F X X X X X
G X X X X X
PRODUCTS
Assembly Steps & Equipment
Select a Product Family
 A product family is a group of products which pass through similar processing
steps and over common equipment
 The product family defines the scope of the Value Stream Map
 The following example matrix is a useful way to identify product families
Product
Family

Select a Value Stream Leader
 Value Stream Leader has the responsibility for understanding a product family’s
value stream and improving it
 Value Stream Leader Requirements
 Hands-on person with the capability to make change happen across
functional and departmental boundaries
 Leads the creation of the current-state and future-state value stream maps
and the implementation plan for getting from the present to the future
state
 Monitors all aspects of implementation
 Walks and checks the flow of the value stream daily or weekly
 Makes implementation a top priority
 Maintains, updates and communicates the Kaizen Improvement Plan

Select the Value Stream Team
 One representative from each functional area of the process
 Have intimate process knowledge
 Stake-holders within the process, ie they will benefit from the
implementation of the kaizen improvement plan
 Open to new ideas
 Good communicators especially with shop floor Operators
 No more than six (6) members per team

Walk the Process Backwards
 Begin at the most downstream operation (typically shipping)
 Introduce yourself and the value stream mapping team to the Operators
 Explain your objectives
 Ask which parts of the process are particularly frustrating to the Operators
 Ask if they have any recommendations for improvement
 Measure and record process attribute data per the next slide
 Note the mechanisms of information flow – both electronic and hardcopy
 Record any opportunities for waste minimization through Lean Manufacturing
principles

Process Attributes
The Following Template May Be Used for Process Data Collection
Process Attribute
Cycle Time
Change Over Time
Up Time
Batch Size
# of Operators
# of Shifts/day
Total Time per Shift
Planned Downtime - Breaks & Lunch
Planned Downtime - Maintenance
# of Product Variations
Yield
Scrap Rate
Customer Demand
Pack Size
Inventory Qty
Lean Opportunities
Mistakes/Defects
Over Production
Over Processing
Unnecessary Transportation
Excess Motion
Excess Inventory
Production Delays
Other Observations
Process Description

Value Stream Mapping Tips
Guidance for the Value Stream Leader...
 Always collect current-state information while walking along the actual
pathways of material and information flows yourself
 Begin with a quick walk along the entire door-to-door value stream
 Begin at the shipping end and work upstream
 Bring your stopwatch and do not rely on standard times or information that you
do not personally obtain
 Map the whole value stream yourself with input from team members and
operations personnel
 Use your team observations to supplement and complement your own
 This will ensure that nothing gets missed
Genchi Genbutsu: Go and See with your own eyes!

Draw the Current State
PRODUCTION
CONTROL
MRP
500 ft coils 18,400 pcs/mo
12,000 L
6,400 R
2 Shifts
Tray = 20 pcs
Tues & Thurs
1 x Daily
STAMPING S. WELD #1 S. WELD #2 ASSEMBLY #1 ASSEMBLY #2 SHIPPING
200T Staging
Coils 4,600 L 1,100 L 1,600 L 1,200 L 2,700 L
5 days 1 2,400 R 1 600 R 1 850 R 1 640 R 1 1,440 R
C/T = 1 seconds C/T = 39 seconds C/T = 46 seconds C/T = 62 seconds C/T = 40 seconds
C/O = 1 hour C/O = 10 minutes C/O = 10 minutes C/O = 0 minutes C/O = 0 minutes
Uptime = 85% Uptime = 100% Uptime = 80% Uptime = 100% Uptime = 100%
A/T = 27,600 sec 2 Shifts 2 Shifts 2 Shifts 2 Shifts
EPE = 2 weeks A/T = 27,600 sec A/T = 27,600 sec A/T = 27,600 sec A/T = 27,600 sec
Total Lead Time
5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 23.6 days
1 second 39 seconds 46 seconds 62 seconds 40 seconds 188 seconds
Total Cycle Time
Operator Operator Operator Operator Operator
I I I I II
Weekly Schedule
Daily Ship
Schedule
State Street
Assembly
Truck Transport
Truck Transport
Michigan
Steel Co.
weekly Daily
90/60/30 day6-week
WAITING
INVENTORY
MOTIONOVER
PROCESSING
OVER
PRODUCTION
MISTAKES
DEFECTS
TRANSPORTATION
Adapted from: Rother, M. & Shook, J., Learning to See: Value-Stream Mapping to Create Value and Eliminate Muda, Version 1.3, 2003, Lean Enterprise Institute, Cambridge, MA, pp 32-33.

Value Stream Map Template

Define Lean Metrics and Targets
 Total Lead Time, Total Cycle Time, Total Inventory Value are typical Lean Metrics
 Alternative Lean Metrics could be Operational Asset Utilization, Yield, Safety
Incident Rate, Unscheduled Downtime, Total Change Over Time, Number of
Customer Complaints, Inventory Turns/Month, On-Time Delivery Rate, etc.
 Base = Current State, Proposed = Target after implementation of Kaizen
Improvement Plan
 Fill in lower left hand corner of Value Stream Map template

Create Kaizen Improvement Plan
 Based upon the opportunities for improvement identified on the Current State
Value Stream Map create a Kaizen (Continuous Improvement) Plan
 Each improvement task must have a unique item #, date observed, description of
the waste, action to address the waste, assignment to a single person
responsible for the improvement, current status of the item, target completion
date and actual completion date
 See next slide for Continuous Improvement Plan template
 Fill in lower right hand corner of value stream map template with top 5 items of
the Continuous Improvement Plan

Continuous Improvement Plan Key Date of Update
In Process
Complete
Open Action Items Hold
Item #
Date
Identified Observation Action Assignment Status
Target
Completion
Date
Actual
Completion
Date
Continuous Improvement Plan Template
Living and breathing document which tracks your team’s continuous improvement efforts

Continuous Improvement Plan Example
Item #
Date
Target
Completion
Date
Actual
Completion
Date
1 Jan 15 Excess inventory accumulation due
to coil steel delivery only on Tues
and Thurs
Request that Michigan Steel delivery
daily based upon planned production
control schedule
Emily
Purchasing
Jan 19 Update: Michigan Steel will
use their smaller truck and begin
daily shipments on Jan 26.
Jan 31 Jan 26
2 Jan 15 Stamping Process change over time
is excessive (sometimes over one
hour)
Modify change over jigs to permit
single minute exchange of dies
SMED).
Phil
Maintenance
Feb 16 Update: Three new
changeover jigs are being fabricated
at contract machine shop. Expected
delivery date Mar 1.
Mar 31
3 Jan 15 Stamping Process produces
inventory which S. Weld # 1 does
not consume in one day
Reduce Stamping Process batch size
to 1.5 days worth of material rather
than 7.6 days of material
Henry P.
Control
Feb 6 Update: Weekly production
schedule eliminated and replaced
with daily schedule. Schedule is
issued to shipping which initiates
production via Kanban system.
Feb 13 Feb 6
4 Jan 15 There is excess motion of people and
material between the two welding
and assembly operations
Combine welding and assembly
operations into one work cell
Frank
Production
Feb 16 Update: New work cell has
been fabricated and installed Feb 9.
Standard Operating Procedures have
been written and Operator training
on new work cell will be complete
Feb 20.
Feb 27
5 Jan 15 Welder number 2 has high downtime
which slows down part throughput
Replace MIG welder with TIG
welder and provide operator training
Phil
Maintenance
Feb 16 Update: TIG welder
installed on both S. Weld # 2 and
new work cell Feb 11. Operator
training complete Feb 13.
Feb 20 Feb 13
Continuous Improvement Plan Key
In Process
Complete

Use DMAIC Process to Facilitate Continuous Improvement Plan
Phase
Define 1. Define Problem Statement Project Prioritization Matrix Quality Function Deployment
2. Define Problem Scope Project Charter Template Voice of the Customer
3. Define Project Objective(s) Financial Analysis Kano Analysis
4. Define Project Metrics SIPOC Diagram Pugh Matrix
5. Calculate Financial Benefit
6. Select Team Members
Measure 7. Measure Current State Process Flow Diagram Variable/Attribute Sampling Plan
8. Validate Measurement System Basic Flow Chart Pareto Chart
9. Establish Reporting and Communication Mechanism for Metrics Swim Lane Map Check Sheet
Spaghetti Diagram Run Chart
Current State Value Stream Map Measurement System Analysis
Analyze 10. Analyze Data to Identify Cause & Effect Relationships Scatter Diagram Histogram
11. Determine Process Capability and Speed Process Capability Analysis Hypothesis Testing
12. Determine Sources of Variation and Time Traps Supply Chain Accelerator Time Response Surface Regression
Supply Chain Trap Analysis Analysis of Variance (ANOVA)
Affinity Diagram Cause and Effect Matrix
Cause and Effect Diagram Defect Characterization
Correlation Analysis Multivariate Analysis
Box Plot Failure Mode and Effect Analysis
Marginal Means Plot Statistical Process Control Chart
Interactions Plot Takt Time
Root Cause Analysis Theory of Constraints
Improve 13. Develop Solution Alternatives Based Upon Validated Root Causes Benchmarking Production Leveling
14. Conduct Experiments to Validate Solution Alternatives PICK Chart Work Cell
15. Iterate Analyze/Improve Phases to Identify Optimum Solution Pull Systems/Kanban Fault Tree Diagram
Setup Reduction Gantt Chart
Total Productive Maintenance Pert Chart
Reliability Centered Maintenance Critical Path Management
Single Minute Exchange of Dies Future State Value Stream Map
Design of Experiments 5S+Safety
Evolutionary Operation (EVOP) Design for Lean Six Sigma (DLSS)
Control 16. Sustain the Gains Control Plan Statistical Process Control
17. Develop Control Plan Check Sheet Training
18. Document New Work Standard Refresher Training Process Trouble-Shooting Diagram
19. Train Personnel on New Work Standard Process Trouble-Shooting Guide Poka-yoke
20. Monitor Performance Visual Controls Standardized Work
21. Mistake-proof Process
ToolsActivity

Draw the Future State
PRODUCTION
CONTROL
500 ft coils 18,400 pcs/mo
12,000 L
6,400 R
2 Shifts
Tray = 20 pcs
1 x Daily
1 x Daily
STAMPING WELD & ASSY. SHIPPING
200T Staging
Coils 1.5 days 2 days
(at the press) 1 3
C/T = 1 seconds C/T = 55 seconds
C/O < 10 min C/O = 0 minutes
Uptime = 85% Uptime = 100%
A/T = 27,600 sec 2 Shifts
EPE = 1 shift Takt Time = 60 sec
Total Lead Time
1.5 days 1.5 days 2 days 5 days
1 second 165 seconds 166 seconds
Total Cycle Time
Operator Operator
DailyOrder
State Street
Assembly
Truck Transport
Truck Transport
Michigan
Steel Co.
weekly Daily
90/60/30 day6-week
Work Cell
Kanban Post
bin
20
20
20
20
coil
coil
OXOX
L
R
20
batch
Adapted from: Rother, M. & Shook, J., Learning to See: Value-Stream Mapping to Create Value and Eliminate Muda, Version 1.3, 2003, Lean Enterprise Institute, Cambridge, MA, pp 78-79.

Value Stream Mapping – Summary
1. Select a Product Family
2. Select a Value Stream Leader
3. Select the Value Stream Team
4. Walk the Process Backwards
5. Draw the Current State Value Stream Map
6. Define Lean Metrics and Targets
7. Create Kaizen Improvement Plan
8. Use the DMAIC Process and the Lean Six Sigma
Tool Kit to Facilitate Kaizen Improvement Plan
9. Draw the Future State Value Stream Map
Value Stream Mapping Steps

Case Study:
ABC Molding Co. is a manufacturer of gear assemblies in the northeastern United States. A typical gear assembly
consists of four plastic gears and six stamped metal parts fixtured within an ultrasonically welded plastic housing. ABC
Molding produces more than eighty different varieties of gear assemblies.
ABC Molding's largest customer is the Precision Motor Co. also located in the northeastern United States. In a typical
month, Precision will order 25,000 gear assemblies. Precision and ABC have had a long history together and their
businesses have enjoyed consistent growth. Precision has difficulty to forecast their customer demand. They provide 30
day product/volume forecasts to ABC by email but they are not worth the paper they are printed on. Weekly purchase
orders are issued to ABC electronically but they are frequently revised and sometimes canceled. ABC customer service
considers it bad business to reject an order and thus accepts every order from Precision even if it will result in a
production run interruption and/or weekend overtime.
ABC purchases a special grade of spring steel with superior anti-corrosive properties from the Brazilian Steel Co. It is the
finest specialty steel available but the lead times are rather long - the combination of ocean freight, customs clearance
and truck freight is typically 30 days. ABC provides a three month forecast to the Brazilian Steel Co. based upon
historical customer demand and releases monthly purchase orders electronically. Plastic pellets used for gear extrusion
are purchased from the Minnesota Polymer Co. Monthly purchase orders are transmitted electronically and deliveries
arrive once per month. Chemicals used for cleaning the coil steel are purchased locally from the New Jersey Chemical
Co. Releases against an annual blanket order are transmitted electronically and delivered weekly from the New Jersey
Chemical Co. to ABC.
The production group at ABC consists of sixteen Operators and two Production Supervisors. Work time is one or two
shifts per day (depending on the process), 8 hrs/shift, 30 minute lunch and two ten-minute breaks. The plant operates on
a Monday through Friday schedule. Overtime work is typically scheduled for Saturdays which of late seems more like the
norm rather than the exception. They are a close-knit group with long tenure. The most senior of the group is Joe. He
operates the coil cleaning process and the 20 ton stamping press (nicknamed the beast). The stamping press is difficult
to change over to other products and frequently goes down resulting in extended periods of downtime. Somehow Joe
always gets it running though. Due to the poor reliability of the stamping press and the unpredictability of Precision's
ordering pattern multiple stamped components must be held in inventory. The coil clean and stamping process operates
for one shift per day. Since it is an automated process, Joe does not need to shut it down when he goes on break or to
lunch.

Case Study:
The metal subassembly process works 2 shifts per day and is a manual operation staffed with two Operators. Cycle time
per part is approximately 80 seconds and change over between models takes about 15 minutes. Quality control checks
have found this part of the process to be prone to assembly errors.
The plastic gear extrusion process is automated and uses a four cavity extrusion tool. One Operator works on each of
the 2 shifts per day. Operators need not shut the equipment down during their lunch or breaks. Cycle time is
approximately 45 seconds per extrusion. Since change over and start-up routinely take 2 hours a rather large collection
of pre-extruded gears is held in inventory.
The plastic/metal final assembly process is manual, works 2 shifts per day with one Operator per shift. Cycle time is
approximately 85 seconds per part. A large portion of this time is spent collecting the necessary components for the final
assembly. Change over time between models is typically 20 minutes.
The ultrasonic welding process is rather new and utilizes state of the art welding technology. Consequently, this process
has the highest uptime at 97%. Cycle time is 35 seconds per gear assembly with change over time of 30 minutes
between models. The ultrasonic welder is a semi-automated process working two shifts per day with one Operator per
shift. Due to the high reliability of this process and the relatively low cycle time it is common for this part of the process to
be starved for product. The Operators use their time constructively, however, by assisting other Operators when this
occurs.
The labeling and packaging process is manual, works 2 shifts per day with one Operator per shift. Cycle time is
approximately 15 seconds per gear assembly with change over time between models of 10 minutes. The ink-jet system
used for product bar coding frequently gets clogged but Operators have learned how to purge the system and unclog the
nozzles. Operators maintain the label data file and generate thermal transfer labels on demand. There
have been customer complaints about label and packaging errors in the past. When Operators get caught up with their
work they help out in the warehouse and shipping department getting pallets ready for shipment to customers.
The shipping department is staffed by one Operator working one shift per day. Customer shipments are made by truck
every Monday, Wednesday and Friday. There are over 18,000 gear assemblies held in finished goods inventory. It is
generally felt that this is the bare minimum required to accommodate changes to Precision's weekly purchase order.

Process
Coil
Clean &
Stamp
Metal
Subassembly
Plastic
Gear
Extrusion
Plastic/Metal
Final
Assembly
Ultrasonic
Welding
Labeling
&
Packaging Shipping
Brazilian
Steel Co.
Minnesota
Polymer
Co.
New
Jersey
Chemical
Co.
Precision
Motor Co.
Process Type Automated Manual Automated Manual
Semi-
automated Manual Manual Supplier Supplier Supplier Customer
# Operators/shift 1 2 1 2 1 1 1
# Shifts/day 1 2 2 2 2 2 1 3 2 1 2
Cycle Time (sec) 1 80 45 85 35 15
Change Over Time (min) 240 15 120 20 30 10
Reliability 80% 95% 90% 93% 97% 95%
Available Time (sec) 28,800 25,800 28,800 25,800 25,800 25,800
Observed Inventory (eq GA's) 12,500 3,625 8,750 4,250 1,500 18,750 40 days 30 days 7.5 days
ABC Molding Current State Data Set
Data Summary

ABC Molding Current State Value Stream Map
PRODUCTION
CONTROL
25,000 GA's/mo
2 Shifts
Once/2 months
Once/month
3 times/week
Mon/Wed/Fri
Once/week
COIL CLEAN &
STAMP
METAL
SUBASSEMBLY
PLASTIC GEAR
EXTRUSION
PLASTIC/METAL
FINAL
ASSEMBLY
ULTRASONIC
WELDING
LABELING &
PACKAGING
SHIPPING
4 cavity tool
Coils Pellets Chemicals 12,500 3,625 8,750 4,250 1,500 18,750
40 days 30 days 7.5 days 1 2 1 2 1 1 1
C/T = 1 second C/T = 80 seconds C/T = 45 seconds C/T = 85 seconds C/T = 35 seconds C/T = 15 seconds
C/O = 4 hours C/O = 15 minutes C/O = 2 hours C/O = 20 minutes C/O = 30 minutes C/O = 10 minutes
Uptime = 80% Uptime = 95% Uptime = 90% Uptime = 93% Uptime = 97% Uptime = 95%
1 Shift 2 Shifts 2 Shifts 2 Shifts 2 Shifts 2 Shifts
A/T = 28,800 sec A/T = 25,800 sec A/T = 28,800 sec A/T = 25,800 sec A/T = 25,800 sec A/T = 25,800 sec
Total Lead Time
40 days 10 days 2.9 days 7 days 3.4 days 1.2 days 15 days 79.5 days
1 second 40 seconds 45 seconds 42.5 seconds 35 seconds 15 seconds 178.5 seconds
Total Cycle Time
Operator Operator Operator Operator Operator
I I I I II
Weekly Ship
Schedule
Precision
Motor Co.
Truck Transport
Brazilian
Steel Co. Monthly
30 day
3 month
INVENTORY
MOTION
OVER
PRODUCTION
MISTAKES
DEFECTS
TRANSPORTATION
INVENTORY
Weekly
Truck Transport
Truck Transport
Ship Transport
I I
Minnesota
Polymer Co.
New Jersey
Chemical Co.
Monthly
Weekly Releases
against Blanket
Truck Transport
Computer
Assisted
MRP
Operator
I
Operator
Weekly
Production
Schedule
WAITING
INVENTORYINVENTORY
MISTAKES
DEFECTS

ABC Molding Kaizen Improvement Plan
Continuous Improvement Plan Key
In Process
Complete
Item #
Date
Target
Completion
Date
Actual
Completion
Date
1 Sept 15 Long lead time from Brazilian Steel Co.
results in high coil inventory tying up cash
flow.
Negotiate consigned stock agreement with Brazilian
Steel for on-site warehouse. We pay for only the
coils we withdraw per month.
Emily
Purchasing
Sept 22 Update: Have begun negotiations with
Brazilian Steel. Currently investigating customs
implications of consigned stock.
Oct 31
2 Sept 15 Once per month delivery of plastic pellets
from Minnesota Polymer results in average
inventory holding quantity of 30 days.
Ask Minnesota Polymer to combine northeast
deliveries with other customers and deliver once per
week.
Emily
Purchasing
Sept 22 Update: Minnesota Polymer will begin to
use their weekly northeast distributor shipment truck
effective Sept 28th.
Sept 30 Sept 28
3 Sept 15 Stamping Process produces excess
inventory which Metal Subassembly does
not consume in one day.
Create production schedule based upon one week
"no-fly zone" for customer orders. Any changes to
customer orders affect the following week's
production.
Henry
Sales
Sept 25 Update: Discussed with Precision
Purchasing Manager. They are not happy with it but
they understand our cost control objectives.
Oct 15
4 Sept 15 Metal Subassembly has high defect rate
which is not detected until final gear
assembly QC check after final assembly.
Combine Metal Subassembly and Plastic/Metal Final
Assembly into one work cell and implement Sourced
Quality Inspection with QC Audit. This will also
address the excess motion searching for components
currently experienced in final assembly.
Frank
Production
Oct 9 Update: New work cell has been fabricated
and installed Oct 2nd. Standard Operating
Procedures have been written and Operator training
on new work cell was completed Oct 9th. We will
begin using the new work cell Oct 12th. We also
found that we could achieve target cycle times using
three Operators instead of 4. This allows us to
provide two Operators to the Pilot Plant for new
product development.
Oct 15
5 Sept 15 Plastic Gear Extrusion Process produces
excess inventory which Final Assembly
does not consume in one day.
Implement fixed weekly production schedule based
upon "no-fly zone" weekly customer order. Only
produce daily gear requirement.
Frank
Production
Oct 9 Update: Plastic gears will be produced in
parallel with stamped parts based upon weekly fixed
production schedule effective Oct 19th.
Oct 19
6 Sept 15 Operators are frequently waiting for parts at
Ultrasonic Welding.
No Action - it is expected that the improvements of
Action Items 4 & 5 above will improve product flow
and reduce waiting time.
Frank
Production
7 Sept 15 Excess finished goods inventory in
warehouse - ties up cash flow and hides
mistakes.
Only carry inventory to meet one week firm
production order.
Susan
Production
Control
Oct 9 Update: On schedule pending Precision's
acceptance of one week "no-fly zone".
Oct 19
8 Sept 15 We don't have real-time visibility of unit
operation output and production to plan.
Install 3 network computer terminals on production
floor tied into ERP system software and provide
training for shift personnel.
Cynthia
IT
Oct 5 Update: Fiber optic cable run Sept 22nd.
Terminals installed Sept 24th. All Frank's people
have been trained as of Oct 2nd.
Sept 30 Oct 2

PRODUCTION
CONTROL
25,000 GA's/mo
2 Shifts
Once/2 months
Once/week
3 times/week
Mon/Wed/Fri
Once/week
COIL CLEAN &
STAMP
ASSEMBLY ULTRASONIC
WELDING
LABELING &
PACKAGING
SHIPPING
Coils Pellets Chemicals 625 500 375 6,250
Consigned Inventory 7.5 days 7.5 days 1 3 1 1 1
1 day
C/T = 1 second C/T = 120 seconds C/T = 35 seconds C/T = 15 seconds
C/O = 4 hours C/O = 15 minutes C/O = 30 minutes C/O = 10 minutes
Uptime = 80% Uptime = 95% Uptime = 97% Uptime = 95%
1 Shift 2 Shifts 2 Shifts 2 Shifts
A/T = 28,800 sec A/T = 25,800 sec A/T = 25,800 sec A/T = 25,800 sec
PLASTIC GEAR
EXTRUSION
4 cavity tool
375
1
C/T = 45 seconds
C/O = 2 hours
Uptime = 90%
2 Shifts
A/T = 28,800 sec
Total Lead Time
7.5 days 0.5 days 0.4 days 0.3 days 5 days 13.7 days
45 second 40 seconds 35 seconds 15 seconds 135 seconds
Total Cycle Time
Operator Operator
Operator
Operator
I I
I
II
Precision
Motor Co.
Truck Transport
Brazilian
Steel Co. Monthly
30 day
3 month
Weekly
Truck Transport
Truck Transport
Ship Transport
I I
Minnesota
Polymer Co.
New Jersey
Chemical Co.
Weekly Releases
against Blanket
Truck Transport
Computer
Assisted
MRP
Operator
I
Operator
Weekly Releases
against Blanket
Work Cell
Kanban Post
Computerized
Kanban Post
Computerized
Kanban Post
Computerized
ABC Molding Future State Value Stream Map

Reference Materials
Rother, M. and Shook, J., Learning to
See: Value-Stream Mapping to Create
Value and Eliminate Muda, Version
1.3, 2003, Lean Enterprise Institute,
Cambridge, MA
Learning to See
Tapping, D., Luyster, T., Shuker, L.,
Value Stream Management: Eight
Steps to Planning, Mapping, and
Sustaining Lean Improvements, 2002,
Productivity Press, New York, NY
Lean Manufacturing | Productivity Press |
Lean books| Lean Production | 5S | Six
sigma | Toyota Production System
Dennis, P., Lean Production Simplified:
A Plain-Language Guide to the World’s
Most Powerful Production System,
2007, Productivity Press, New York, NY
Lean Manufacturing | Productivity Press |
Lean books| Lean Production | 5S | Six
sigma | Toyota Production System

Value stream mapping

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