Value Stream Mapping

Presented By Jaipravin PSG Tech

Introducing VSM
What is VSM? An example from Learning to See
By Mike Rother and John Shook

Current-state Map (snap shot) Future-state Map

Why Value Stream Mapping?

Helps to see the present state See the sources of waste in the value stream

A graphical representation which can be used to study the effect of any change on the performance measure
Lead time Total processing time

Value Stream Improvement and Process Improvement

- A Case Study

Understanding the VSM Tool

Product Family Current-State Drawing Future-State Drawing
Understanding how the shop
floor currently operates. Designing a lean flow and how to get there

Eventually repeat

Implementation

Value Stream Mapping

A Value Stream Map is a visual representation, or map, identifying all the specific activities occurring along the value stream for a product or service. This map is designed to not only identify the value added activities within the value stream, but more importantly the sources of "non-value added"(waste). From this identification a "future state map"is created of how the product or service should flow without the "non-value added" sources of waste that cloud customer satisfaction.

Benefits of value chain mapping

It helps you see the entire flow of a product or service, beyond the single-process level.
It helps you see more than waste. The map identifies the sources of non-value added waste. It provides a "common language" for talking about your key customer processes. -It provides information about the flow of the product or service so discussions are based on data prior to decisions being made. It brings together "lean enterprise" concepts and techniques.

Benefits of value chain mapping

It forms the basis of an implementation plan or blueprint for lean enterprise accomplishment through Kaizen or other continuous improvement methods. It shows the linkage between information flow and material flow. It is a visual tool for describing what you are actually going to do to eliminate the sources of non-value added (waste) that impacts your bottom line and your customer and employee satisfaction positively!

Terms
Cycle Time? (for a process)

Time taken for a part to complete a given process (or the time it takes for an operator to go through all

of his/her work elements before repeating them)

Terms
Value Added Time?
VA Time

Time associated with those activities that actually transform the part in a way that the customer is willing to pay for.

Lead Time?

Waiting Time (NVA)

Cycle time for all processes + Other VA time

Terms
Lead Time?
The time taken for one part to move through all the processes of a value stream; from start to finish

- or -

Typical Steps for Current State Drawing

1. Customer information

2.
3. 4. 5. 6. 7.

Quick walk through in the shop floor to identify the main processes (in order)
Fill in the data boxes and draw inventory triangles Delivery to customer Supplier data Information flow (manual & electronic) Determine the current state and identify what is VA and NVA

The Current State

Define the Customers demand

Customer Requirements
18,400 pieces per month
12,000 per month of type LH 6,400 per month of type RH

The company operates on two shifts

Palletized returnable tray packaging with 20 brackets

in a tray and upto 10 trays on a pallet. The customer orders in multiple of trays One daily shipment to the assembly plant (customer) by truck

Customer Requirements
Assembly Plant (customer)

18,400 units per month 12,000 LH 6,400 RH

20 units per tray

The Current State

Define the Customers demand Map the basic production processes

Mapping The Process

Mapping tips
Do an initial quick walk through from door to door and then go back to gather the information Begin at the shipping dock (customer end) and work upstream to the receiving dock (supplier end) Let each person/team map entire value stream

himself/herself
Mapping begins with the customer requirements

Mapping Icons
Current-State Drawing
Outside Source or Customer
Raw Matl. supplier

Pr. Control MRP

Tue & Fri

Truck Shipment

Manual Information flow

Electronic Information flow

Assy. Plant (customer)

Manual Information flow Assembly

1 time daily

Stamping

I
Inventory (incl. count & time) Days of Inventory 2 Shifts Cycle time C/O time VA Time Material movement via push 2 Shifts Cycle time C/O time

Manufacturing Process (or a Department)

Data Box

Map the Basic Production Processes

Assy. Plant (customer)
18,400 units/month 12,000 LH 6,400 RH 20 units/tray

Stamping I 1

Spot Welding #1

Spot Welding #2

Assembly #1

Assembly #2

Shipping I 1

I
1

I 1

I
1

I 1

The Current State contd

Define the Customers demand Map the basic production processes Define the data to be collected
Cycle time (C/T) Changeover time (C/O) Batch size Pack size No. of operators Working time (in secs minus breaks) Uptime Scrap rate OEE

The Current State

Define the Customers demand Map the basic production processes Define the data to be collected

Collect and map the data

Working time calculation

8 Hours x 60 mins/hr x 60 secs/min = 28,800 s/shift

Subtract breaks:
2 x 10 mins break 28,800 1,200 = 20 mins x 60 s/min = 1,200 s = 27,600 working s/shift

Fill in Data boxes and Inventory triangles

Assy. Plant (customer)
18,400 units/month 12,000 LH 6,400 RH 20 units/tray

Stamping I Coils 5 Days 1

C/T C/O 1 480

Spot Welding #1
4600 LH 2400 RH
s s

Spot Welding #2
1100 LH 600 RH

Assembly #1
1600 LH 850 RH

Assembly #2
1200 LH 640 RH

Shipping
2700 LH 1440 RH

1
C/T C/O 39 600

1
C/T C/O 46 600 80

1
C/T C/O 62 0 100

1
C/T C/O 40 0 100

s s

s s %

s s %

s s %

Uptime 85 % Working 27,600 s time

Uptime 100 % Working 27,600 s time

Uptime

Uptime

Uptime

Working 27,600 s time

Working 27,600 s time

Working 27,600 s time

The Current State

Define the Customers demand Map the basic production processes Define the data to be collected

Collect and map the data

Define the suppliers data

Add Suppliers Data

Assy. Plant (customer) Raw Mtl. Supplier
18,400 units/month 12,000 LH 6,400 RH 20 units/tray

Tue & Fri

I time daily

Stamping I Coils 5 Days 1

C/T C/O 1 480

Spot Welding #1
4600 LH 2400 RH
s s

Spot Welding #2
1100 LH 600 RH

Assembly #1
1600 LH 850 RH

Assembly #2
1200 LH 640 RH

Shipping
2700 LH 1440 RH

1
C/T C/O 39 600

1
C/T C/O 46 600 80

1
C/T C/O 62 0 100

1
C/T C/O 40 0 100

s s

s s %

s s %

s s %

Uptime 85 % Working 27,600 s time

Uptime 100 % Working 27,600 s time

Uptime

Uptime

Uptime

Working 27,600 s time

Working 27,600 s time

Working 27,600 s time

The Current State

Define the Customers demand Map the basic production processes Define the data to be collected

Collect and map the data

Define the suppliers data

Map the information flow

How do processes know what to make?

6 week forecast Raw Mtl. Supplier Weekly forecast

Pr. Control

90/60/30 Day forecast Daily order

Assy. Plant (customer)

18,400 units/month 12,000 LH 6,400 RH 20 units/tray

MRP
Weekly Schedule

Tue & Fri

Daily Ship Schedule

I time daily

Drilling I Coils 5 Days 1

C/T C/O 1 480

Spot Welding #1
4600 LH 2400 RH
s s

Spot Welding #2
1100 LH 600 RH

Assembly #1
1600 LH 850 RH

Assembly #2
1200 LH 640 RH

Shipping
2700 LH 1440 RH

1
C/T C/O 39 600

1
C/T C/O 46 600 80

1
C/T C/O 62 0 100

1
C/T C/O 40 0 100

s s

s s %

s s %

s s %

Uptime 85 % Working 27,600 s time

Uptime 100 % Working 27,600 s time

Uptime

Uptime

Uptime

Working 27,600 s time

Working 27,600 s time

Working 27,600 s time

The Current State

Define the Customers demand Map the basic production processes Define the data to be collected

Collect and map the data

Define the suppliers data

Map the information flow

Calculate the status of the current state

Value added vs Non value added time

Stamping
I
Coils 5 Days C/T C/O Uptime 1 I 4600 LH 2400 RH 1 480 85 sec sec %

(Time Line)

Customer Demand 12,000 LH/month 6,400 RH/month 12,000/20 = 600 LH per day

6400/20

= 320 RH per day

4,600/600 = 7.7 days

2400/320 = 7.5 days

Max.

Working 27,600 sec time 5 Days 1 sec 7.7 Days

Current State value stream mapping

6 week forecast Raw Mtl. Supplier Weekly forecast

Pr. Control

90/60/30 Day forecast Daily order

Assy. Plant (customer)

18,400 units/month 11,500 LH 6,900 RH 20 units/tray

MRP
Weekly Schedule

Wed

Daily Ship Schedule

1 time daily

Reaming I Coils 5 Days 1

C/T C/O 1 480

Honing
4500 LH 2500 RH
s s

Internal threading
1000 LH 700 RH

Thread checking
1500 LH 950 RH

Inserting o-ring
1100LH 740 RH

Shipping
2600LH 1540 RH

1
C/T C/O 39 600

1
C/T C/O 46 600 85

1
C/T C/O 62 0 100

1
C/T C/O 40 0 100

s s

s s %

s s %

s s %

Uptime 80 % Working 27,600 s time

Uptime 100 % Working 27,600 s time

Uptime

Uptime

Uptime

Working 27,600 s time

Working 27,600 s time

Working 27,600 s time

5 Days 1 sec

7.7 Days 39 secs

1.8 Days 46 secs

2.7 Days 62 secs

2 Days 40 secs

4.5 Days Time = 23.7 days

Processing Time = 188 secs

Production lead

Analyse the Improvement Opportunities

Compute the takt time

What is our Production for each shift

18,400 pieces per month
12,000 per month of type LH 6,400 per month of type RH

12,000 LH/20 6,400 RH/20

= 600 LH/day = 320 RH/day

600 + 320 = 920 pcs/day/2 shifts = 460 pcs/shift

Takt time
pace of sales

(Drum beating)

How to synchronise the pace of production to match the Rate for producing a component based on its sales rate

Operating time per shift

Takt time =

Customer requirement per shift

27,600 secs per shift 460 pcs per shift

60 sec

= 60 sec
60 sec

The Principles of Just-In-Time

Paced to Takt Time One piece flow production

At the Pull of the customer

Analyse the Improvement Opportunities

Compute the takt time Continuous flow

Continuous flow processing?

Batch & Push Processing
Process A

Process B

Process C

1 min

Lead time: 30++ minutes for total order

Continuous Flow make one, move one

Process A Process B Process C

Lead time: 12 minutes for total order

Analyse the Improvement Opportunities

Compute the takt time Continuous flow Determine what prevents us from producing to takt time

Line Balancing

Bottleneck operation
East, Assemble #1, 62

East, Weld East, Weld #2, 46 #1, 39

East, Assemble #2, 40

East, Stamping, 1

Total work work Takt

= 188 sec = # Operators reqd.

Takt time = 60 sec 188/60 = 3.13 Operators

Line Balancing contd

If 3.13 operators are required, 4 operators are wasteful; but 3 operators cant do the work Combine some tasks?

Can the work be reduced to 56 s per operator so

that pace can be maintained? Find a way to reduce the total work content to 168 s or less

Line Balancing contd

56 56 56
, Weld, 17

, Weld/Assy, 27 East, Assemble, 56 East, Weld/Assy, 29

East, Weld, 39 East, Stamping, 1

S W W A A Earlier processing time = 1 + 39 + 46 + 62 + 40 = 188 sec S W W A New processing time = 1 + 39 + (17 + 29) + (27 + 56) = 169 sec
{102 sec. of assy time reduced to 83 sec}

What if flow is not possible?

Kanban: only make the customer wants
W P W

Product

Product

Machining
Pull

Assembly

Pull

The future state

Future-State Drawing
6 week forecast Raw Mtl. Supplier Weekly forecast

Pr. Control

90/60/30 Day forecast Daily order Daily order

w

Assy. Plant (customer)

18,400 units/month 12,000 LH 6,400 RH 20 units/tray

MRP
Coil

Daily Coil
w

20 XOXO

Batch

20
Weld & Assembly

I time daily

20 L R 2 Days

20
Shipping

Coils

Stamping

1 At the press
EPE C/O 1 480

changeover
min sec

weld changeover

1 Day
Takt C/O

3
60 56 0 sec sec sec % shifts

welder uptime

C/O Working time

Total work 169 sec Production lead Time = 4.5 days Processing Time = 169 secs

Uptime 100 2

1.5 Days 1 sec

1 Day

2 Days

168 sec

Significant Improvements
Lead time reduced by 81% Processing time reduced by 10%