Value Stream

Mapping

Value Steam Mapping

The Value Stream - a definition

All of the steps required to bring a product or
service from raw state through to the customer
Total Value Stream

Supplier

Process
C

Process
B

Process
A

Customer

Internal Plant

Value Steam Mapping

What is Value Stream Mapping?

Value Stream Mapping is a powerful technique that allows
us to create a BIG PICTURE visual representation of:
All the steps in the process, working back from
customer demand to raw material
The flow of both material and information and the
effect they have on each other
The distinction between value-added and non-valueadded activity (WASTE)
The effect all of the above have on meeting the
customers requirements

Value Steam Mapping

The 8 Wastes

Scrap/Rework

Processing

Over-production

Transportation

Inventory

Motion

Under-utilized People
Waiting
(manpower, material, machine)
4

Value Steam Mapping

#1 Scrap/Rework
Definition:
Any product that does not
meet specifications and
therefore either needs to be
reworked or scrapped

Goal:
100% First Time Through
Quality

Value Steam Mapping

#2 Over-production (Under)
Definition:
Producing more than is
necessary, often causing
WIP (Work In Process);
working on parts ahead of
schedule while delinquent
parts wait

Goal:
Produce to Target Cycle
Time then eventually
produce all operations to
Takt Time in the Future
State

Value Steam Mapping

# 3 Inventory
Definition: material or parts that are stored for future use or
shipment

Before

After

If you had only 30 seconds to find the unit

...which storage system would you choose?
7

Value Steam Mapping

#4 Motion
Definition:
Excessive motion beyond what is needed to get the job done

Goal:

Same as Definition

???

sitting

searching

turning
around

climbing

choosing

bending lying down

over

walking

Value Steam Mapping

#5 Processing (Over & Under)

Definition:
Extra and/or unnecessary
operations
Standardization of
operations not thorough
enough
Processing a part above
specifications

Goal:
Process parts that
consistently meet the
minimum customer
requirements 100% of the
time
9

Value Steam Mapping

#6 Transportation
Definition:
Moving parts to unnecessary
distances from one operation
to another

Goal:
Put operations in order;
minimize or eliminate the
travel distance between
them

10

Value Steam Mapping

#7 Waiting
Definition:
a person or part(s) sitting
idle while waiting for
material, a supervisor, the
next operation, etc.

Goal:
Eliminate the unplanned
interruptions that occur due
to inefficiencies
Develop continuous flow
wherever possible
Convert waiting to valueadded work

11

Value Steam Mapping

#8 Under-utilized People
Definition:
Skills untapped, Ideas not
implemented and
improvements not realized

Goal:
Tap into the energies and
unused improvement ideas
from the workforce

12

Value Steam Mapping

Exercise Worksheet
MANUFACTURING WASTES IDENTIFICATION SHEET

John McLauchlin

5S - Sort,
Straighten,
Sweep,
Standardize &
Self Discipline

Under-utilized
People

Waiting

Transportation

Processing

Motion

Inventory

WASTE IDENTIFIED

Over (Under)
Production

NO.

Scrap/Rework

Dept: _______________

Revision Date: 4/25/2000

13

Value Steam Mapping

Value Stream Analysis Process

Value Stream Mapping
1.0
Select Champion
and Initial
Product Family

2.0
Gather, Map, and
Analyze Selected
Value Stream Data

3.0
Design Future
State

4.0
Implementation
Planning and
Execution

1. Understand business goals and customer

objectives
2. Select champion and value stream leaders
based on proven criteria for success
3. Define product families based on common
processes and equipment

14

Value Steam Mapping

Leadership and Champions

Lean
Aerospace
Initiative

Observations
A common factor in all observed successful lean implementations
is one or more empowered Champions.
Champions are usually high-level leaders who take on a pro-active
role shaping and supporting the lean initiatives, and ensuring that
system barriers are identified and addressed.
To start your lean journey, you need a leader or set of leaders to:
Develop a strategic direction
Agree to and communicate the strategic direction
Make available the needed resources
Provide continued, visible support
Without the support of a champion, you should not attempt to
implement lean practices and principles -- it is a recipe for disaster
15

Value Steam Mapping

Small Group Activity

Identify who in your organization will fill these
critical roles to support lean implementation
Executive Champion
Implementation Leader

Executive
Champion
Implementation
Leader
Operational Mgr

Operations Manager
Technical Support
Other Key Roles?
Briefly describe the role each person will have
in supporting lean
What can you do to get these people to
successfully support your efforts

16

Value Steam Mapping

Define Product Families

Analyze Product-Volume Chart to separate high
runners from low runners
Analyze Product-Process Matrix to identify similar
processing steps and common equipment
Analyze Routings to identify common sequences
focusing on:
Operations that can potentially be dedicated to the product
family
Operations that are neither monuments nor batch cycles
Downstream processes most visible to the customer
17

Value Steam Mapping

Analyze Product-Volume Chart to separate

high runners from low runners
Product Volume Chart
4500
4000

Annual Volume

3500
3000
2500
2000
1500
1000
500
0
2206

2150

2170

2158

2108

2142

2124

2102

2172

2212

2222

2202

2204

Part Number

18

Value Steam Mapping

Analyze Product-process Matrix to Identify Similar

Processing Steps and Common Equipment
Vol.

PNs

Rough

H.T.

Turn

Deburr

Insp

Black

MPI

Ship

Mark

Mill

400

2124

360

2102

450

2108

450

2142

760

2150

620

2158

750

2170

322

2172

58

2204

300

2212

268

2222

4000

2206

8338

8338

8338

8280

4070

Saw

Drill

4280

8338

Grind

Weld

Plasma

X
X

X
X
X

X
3712

Coppr

X
X

3978

3138

1800

5200

4326

4000

58

19

Value Steam Mapping

Analyze Routings to Identify Common Sequences

Types of Machines
Rough

Batch or Out Sourced

Product Family A

Non-monument

2124

12

2102

2108

2142

2150

2158

2172

Insp

ASSM

H.T.

Black

FPI

16

Turn

MPI

Coat

17

Mill

Grind

10

Lap

18

Drill

Weld

11

Polish

19

Deburr

Coppr

12

Paint

20

Mark

Plasma

14

Nickel

21

2170

2204

14

10

16

15

2212

21

16

15

2222

17

10

2206

10

11

15

11

19

15

15

20

50% of Total Volume

20

Value Steam Mapping

Value Stream Analysis Process

Value Stream Mapping
1.0
Select Champion
and Initial
Product Family

2.0
Gather, Map, and
Analyze Selected
Value Stream Data

1. Gather customer information

2. Walk the process - sketch
process boxes.

3.0
Design Future
State

4.0
Implementation
Planning and
Execution

5. Gather information on
suppliers.
6. Add information flows.

3. Fill in process data boxes and

inventory levels (by product).

7. Sketch how material moves

between processes.

4. Document how goods are

delivered to the customer.

8. Draw production lead

time/value-added timeline.
21

Value Steam Mapping

Material Flow Icons

Assembly
XYZ
Corporation
Process
Box

Supplier/
Customer

C/T=45 sec.
C/O=30 min.

3 Shifts.
2% Scrap

300 pieces
1 day

Data Box

Inventory

Mon
+ Wed
Shipment

Supermarket

Buffer or
Safety Stock

FIFO
Push

Physical
Pull

Finished Goods
to Customer

First-InFirst-Out

Operator

22

Value Steam Mapping

Information Flow Icons

Manual
Information Flow

Electronic
Information Flow

Weekly
Schedule

OXOX

Schedule

Load
Leveling Box

Sequenced-Pull
Ball

Uptime
Changeover

Withdrawal
Kanban

Production
Kanban

Signal
Kanban

Kanban
Post

Kaizen
Lightning Burst

23

Value Steam Mapping

Mapping Tips

Use a pencil and draw on 11 x 17 paper or larger

Draw top of process boxes just below the middle of the page

Leave enough room between process boxes to show inventory

Decide whether to count all parts or just a sample part

Draw only one to three main suppliers / supplied items

Production lead time is calculated by dividing inventory quantity by

daily customer requirement.

Put a Title and date on map and include Customer Requirements

Make every effort to collect good data

Use alternate methods for collecting data when time is a constraint

Compare against recent historical data as a sanity check

24

Current State Value Stream Map

Supplier

Customer

Customer requirement
500 blades per week

11

22

21

Current State Value Stream Map

Supplier

Customer

Customer requirement
500 blades per week

Daily

Daily

600

108

156

208

11

174

22

72

21

184

Current State Value Stream Map

2 year Forecast

2 year Forecast
90 day order

Supplier

90 day order

MRP Function

Customer

Weekly order

Weekly order
90 Day production plan

Daily

Daily

Customer requirement
500 blades per week

Weekly Schedule
Daily Meeting

Daily

Daily

600

108

156

208

11

174

22

72

21

184

Current State Value Stream Map

2 year Forecast

2 year Forecast
90 day order

Supplier

90 day order

MRP Function

Customer

Weekly order

Weekly order
90 Day production plan

Daily

Daily

Customer requirement
500 blades per week

Weekly Schedule
Daily Meeting

Daily

Daily

600

108

156

208

11

174

22

72

21

184

VA Ratio
= 0.8 %

Exercise: ABC Forging (Sample data)

Scorecard

Customer Demand

Product Mix

= 5 Discs

Quality

= 0 ppm

VolumeA

= 500/yr

Concessions

VolumeB

= 500/yr

= 15,000 cppm
(dimensional)

VolumeC

= 500/yr

Delivery

= 75%

VolumeD

= 150/yr

Response Time = 70 days

VolumeE

= 100/yr

Transportation

Response Time = 5 day

Production Process
Op

C/T

C/O

Saw

= 15 m

20m

Forge = 07 m

1.5 h

* HT

= 9h

Insp

35
119
14

* Insp = 03 m
Mach = 3 h

Inv.

4h

= 1.5 h

Pack = 5 m
* Outsourced Operations

98
49
21

Distance to Customer = 200 mi

Distance HT/Insp = 150 mi

Misc.

Scheduling

20% time

Two 8-hr shifts, 30 min break per shift

2 h (Heat)

5 workdays/week, 50 weeks/ year

8 h (Cool)

Customer provides 2-year forecast, 60day flexible schedule, weekly pull signal

5% rework

Aero provides sub-tiers w/2 yr forecast

and 8-week firm schedule
Aero using MRP to schedule each work
center, supervisors expedite daily
Batch size of 40 pieces through process,
average lead time of ~10 weeks

Value Steam Mapping

Process Information Sheet

Supplier:

Rou tin g
O p e ra tion
Nu m b e r

Operation

Part Name:

Part No:

T im e from
T im e e la s p s e d
fin is h in g la s t
Ava ila b le or
from fin is h in g on e g ood p a rt of on e a s s ig n e d n u m b e r
p a rt to fin is h in g
p rod u c tion ru n to
of m in u te s for
th e n e xt p a rt (with firs t g ood p a rt of e a c h op e ra tion in a
De s c rip tion of th e p roc e s s b e in g p e rform e d
n o s e tu p )
n e xt ru n
24 h ou r p e riod

Description

Cycle Time
Change
(min)
Over (min)

Available
Minutes per
Day

Ave . n u m b e r of
p a rts ru n b e fore
m ovin g a ll p a rts
to n e xt op e ra tion

Batch
Size

Annual Volume:

Ve n d or n a m e
(ou ts ou rc e d
op e ra tion s on ly)

Vendor

City a n d s ta te wh e re
ou ts ou rc e d op e ra tion
is p e rform e d

Location

T ra ve l d is ta n c e
to ou ts id e
ve n d ors

Me a n s of
c on ve ye n c e

Distance
from Plant Method of
(miles)
Transport

Ave ra g e tim e a
p a rt s p e n d s a t
e a c h op e ra tion

Lead
Time
(days)

30

Value Steam Mapping

Value Stream Analysis Process

Value Stream Mapping
1.0
Select Champion
and Initial Product
Family

2.0
Gather, Map, and
Analyze Selected
Value Stream Data

3.0
Design Future
State

4.0
Implementation
Planning and
Execution

Customer Delivery Strategy

Supporting Improvements
1. What process improvements need
to be addressed immediately?

4. Should you build to customer order or

finished goods?
5. What single point will you schedule to
customer requirements?

Material Flow

Information Flow

2. Where can you implement flow?

6. How will you schedule or pull material

from upstream?

3. Where should you reduce batch

size to improve responsiveness?

7. How will you level production to the

pacemaker operation?
31

Exercise: ABC Forging (Sample Data)

Brainstorm Future State
2-yr forecast

Production
Control

8-Week
Order to Deliver

SubTier

Release
Material

4 weeks

20%

Saw

C/T=7 m
C/O=1.5 h
Heat=2 h

0:15

Heat
Treat
150 mi

2:10
5 Days

60-Day
Schedule

Release
Weekly
200 mi
Weekly

17 Days

C/T = 9 h
Cool= 8 h

C/T=3 m

17:00

0:03
2 Days

2 weeks

Mach
ine

Insp
150 mi

Insp

C/T = 3 h
C/O = 2 h

Pack

C/T = 1.5 h

3:00
14 Days

RollsRoyce

SAP

5%
Rework

= 1750/yr
5/5/5/1.5/1
= 75%
= 15k cppm
= 5 days

2-yr forecast

Daily Priority Lists

Forge

C/T=15 m
C/O= 20 m
Batch= 40

Volume
Mix
Delivery
Quality
Response

C/T= 5 m

2:00
7 Days

0:05
3 Days

Cycle Time = 24 hrs

Transport = 6 hrs
Idle
= 48 days