Value Stream Mapping Process

What, Where, When, Why, Who,

Which, How etc

Anand Subramaniam

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 Be aware..
Lean system implementation requires a high degree of discipline,
and sometimes it can stress the workforce.

There is high level of co-operation & trust required between

operators and supervisors.

Reward systems and labor classifications must often be revamped

when a lean system is implemented.

Existing layouts may need to be changed.

Daily production schedules in high-volume, make-to-stock

environments must be stable for extended periods.

If the inventory advantages of a lean system are to be realized,

small lot sizes must be used.

If frequent, small shipments of purchased items cannot be arranged

with suppliers, large inventory savings for these items cannot be 2
realised.
 Highlights
 Overview - Value Stream Mapping (VSM)

 Pre-VSM

 VSM Review – Current State

 VSM Review – Future State &

Implementation Road Map

 Excellence Road Map

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 Highlights - 1
Lean Process
Value Stream Mapping (VSM)
Value & Non Value Add
Principles
SIPOC
Definition

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 What is a Lean Process ?
Define value Map the Create flow;
from the value eliminate the
customer’s stream root causes
perspective of waste

Seek Create pull

perfection via where flow
continuous is difficult
improvement to achieve

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 VSM – Why, What, Where?
Key tool for Lean implementation, makes process & problems visible

Forms the basis of an improvement plan and a common language

Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC)

Is a qualitative tool for identifying and eliminating waste (or muda)

Aligns organisations processes, creates a sense of teamwork / ownership

Involves drawing - current state, future state, & an implementation plan

Spans the entire value chain, from raw materials receipts to finished
goods delivery

A paper and pencil tool to help you visualise and understand the linkage
between material and information flow
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Focuses on maximising the overall flow
 Value Add & Non Value Add
Value Add (VA)
Any activity the customer values (and is willing to pay for)
– Who are your customers?
– What do they really want?

To be considered “value add”, a process step must have YES to all

these questions
– Does the customer care?
– Does it change the thing?
– Is it done right the first time?
– Is it required by law or regulation?

Non Value Add (NVA)

Any activity that consumes time and / or resources & does not add
value to the service or product for the customer. These activities
should be eliminated, simplified, reduced, or integrated.
– Necessary – Legal / regulatory requirements
– Unnecessary - Waiting, Unnecessary processing, Errors/defects, 7
Motion (people), Transportation (product), Underutilised people,
Inventory
 VSM - Principles
Diagnostic Tool
– Reveals hidden symptoms of larger problems

Strategic Planning Activity

– Helps prioritise opportunities for improvement
– Results in an implementation plan

Macro-Level - Visual Representation

– Information flow
– People and material flow
– Each process block represents a handoff or a break in the timeline

Contains Relevant Metrics

– Lead time – throughput / turnaround / flow time
– Cycle time – touch / process time

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 SIPOC - Process Map

S I P O C
Suppliers Inputs Process Outputs Customers

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 Definition
Cycle Time (C/T) – time to complete a single unit of production

First Time Through (FTT) - % of jobs that are complete and

accurate the first time that they are processed.

Demand – average number of units per shift

Batch Size (BS) – size of typical batch that is processed as a unit

Takt time – rate of demand

Throughput time – sum of delays and process time

Process Ratio = Total process time / Throughput time

Value Added Ratio = Total VAT / Throughput time

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 Highlights - 2
Current Process Challenges
Conceptual Overview
VSM Charter
VSM Boundary
Product Family Matrix
Data Collection
Future State – Questions & Blueprint

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 Current Process Challenges
Lots of waiting Broken interfaces -
Lots of travel ineffective or non-existent
interfaces
Lack of communication
Lack of skills / not trained
Different prioritisation
Too many handoffs
rules in different
Too many approvals departments
Too many workarounds
Duplication of work High Lead Time (slow
throughput/turnaround)
Dead zones - places where
work gets held up or lost High WIP (waste in process
– bottlenecks / backlogs)
Lost time - people looking
for work and / or re-work Low CT/LT ratio (lots of
loops to correct errors waiting) 12
Conceptual Overview - Where to start?
VSM Charter & Scope Charter / Scope
– Process Boundaries / Scope
– Roles & Responsibilities
– SIPOC Product
family
Product Family
– Start with a single product family
Current state
Current & Future State drawing
– Collect data on process & system
– Be specific
how many finished part numbers in
family? Future state
how much is demanded? drawing
how often?
– Verify & repeat the Process
Work plan &
Develop Implementation Plan implementation
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 VSM Charter
Vision Start / End Date
Mission High Level Scope
Improvement Benefits Realisation
Objectives Process Champion
Strategic Plan Team Leaders
Critical Success Team Members
Factors Facilitators
Drivers Risk & Tolerance
Process Description Drivers
Management Roles &
Information System Responsibilities
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 VSM - Boundary
Current State
Define the boundaries
Define the value
Identify the tasks and flows of material and information
between them
Identify resources for each task and flow
Create the current state map

Future State (Design)

Visualise the “Ideal State” and design the future state
map
– Identify value added and waste from Current State
– Reconfigure the process to eliminate waste / Add Value

Implementation Plan
Develop Action plans and track
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 Define Boundary
Before launching on VSM, define the Start and End points
– Prepare As-Is physical map – How / where (inputs to outputs)
– Prepare As-Is geographical map - area(s) where process is performed
– Add process control information flow to as-is physical map

A logical starting point - where Inputs cannot be returned to the

preceding step.

Capture the process as it is actually performed and include

workarounds, rework, informal activities, feedback loops etc

In lean, we commonly define “work-in-process” is anything you

can’t ship to the customer or return to the supplier

Add As-Is process metrics - counts, rates

– The number of parts required by customers
– The number of machines and operators available to work on parts
– The rates that process steps work on parts
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 Eg. Boundary - Start & End Points
START
Inputs
• Market Research Identify
Review
• Data - Competition Define Go- Risks,
Objectives,
• Firm’s Strategy to Market Assumption
Goals &
Drivers &
Strategies
Constraints

END

Outputs
Conduct Approve • Marketing Plan
Evaluate
“What If” Go-to • KPI
Scenarios
Scenarios Market Plan • Team

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 Material & Information Flow
Use the “Scope” document to map the product or service flow

Map the whole value stream by conducting a “walk through” of the

actual process and collect information
– Start with the final step and walk backwards (customer perspective)
– Outline major process blocks
– Chunk of activities that occur before a handoff

Stay focused on the norm

– Use the “70% rule” to avoid getting bogged down with exceptions

Interview workers to obtain data

– Cycle time (CT)
– Lead time (LT)

Bring your stopwatch and do not rely on information that you do

not personally see

Draw by hand and use a pencil 18

 Resource Identification
VSM are strategic in nature
– The resulting implementation plan is the
tactical component

Nominate a VSM Head, who has

– Top Management support
– Power to influence changes

Team composition
– Team / Process Leaders
– Team Members who have process knowledge
– Facilitators / Management Consultants
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 Product Family Matrix
Routing - Process / Operations #
1 2 3 4 5 6 7 8
P ES X X X X X X
R S X X X X X X
O M X X X X X X
D L X X X X X
U
EL X X X X X
C
XX X X X X X X
T
U X X X X X
S 20
 Data Collection
Pack sizes at each process Activity
Working hours and breaks Department performing
Inventory Points (location IT systems used
& size) Current backlog/WIP
How Operations are Demand rate
scheduled Work Time
Overtime per week Number of people /
Process cycle times operators
Scrap Prioritisation rules
Rework % Quality (first pass Yield)
Downtime Batch size
Demand rates by process Run frequency
(Takt Time) Equipment availability
Number of product C/T - Cycle (touch) time
variations at each step (observed & effective)
Shipping/Receiving
schedules C/O - Changeover time & 21
frequency
 Future State Questions
What should be the Takt time (available time / customer demand)?
What does the customer really need?
How often will we check our performance to customer needs?
How can we improve the flow, with fewer interruptions?
How do we control work between interruptions? How will work be prioritised?
Is there an opportunity to balance the work load and/or different activities?
Where can continuous flow be put in place?
Where should pull systems be implemented?
Where, when and how will scheduling be done?
How do we perform load leveling and what will be the product mix?
What should the management time frame be?
What process improvements are necessary, to achieve the future state?
What will the future state metrics be?
– Quality
Errors
– Delivery
Lead time
– Customer service
How well do you provide services (internal and external)
– Cost
Reducing errors, rework, handoffs, waiting and lead time 22
Design Future State – Blueprint
Define how the plant will operate in the future (blueprint)

Consider whether (remove waste / non value add activities)

– everything done currently at each stage is really necessary
– the impact if superfluous tasks was to be removed
– the process can be rearranged in a more efficient sequence
– a different flow layout or transport routing can be introduced

Validate Customer Demand

Draw the Future State Process Flow

Map the Future State Material & Information Flow

Calculate Total Product Cycle Time

Detail Off-Line Activities

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Outline an Implementation Plan
 Highlights - 3
Current State (As~Is)
– Step 1 - Define Customer’s Demand
– Step 2 - Map Basic Production Processes
– Step 3 - Define Data To Be Collected
– Step 4 - Collect & Map Data
– Step 5 - Map Information Flow
– Step 6 - Calculate Current State
– Step 7 - Compute Takt time
– Step 8 - Line Balancing

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 Define Customer’s Demand
Demand = 3,200 pieces / week
– Type L = 1,000 piece week
– Type S = 2,200 piece week

Plant Operates 1 shift / day

Packaging = 60 pieces / Tray

Customer Shipment = 1 / day (Truck)

Supplier Shipment = 1 / week (Truck)

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Map Basic Production Process

Ensure
– Mapping begins with customer’s demand
– Conduct a walk through and obtain high
level process information
– Start from the shipping (Staging Process)
and work up-stream to the receiving dock
– The team involved should map the entire
process stream from start to end
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Map Process (Contd.) – Mapping Icons

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© 2007 Pearson Education
Define Data To Be Collected
Cycle Time (C/T)
Changeover Time (C/O)
Uptime
Number of Operations
Break Time
Work Time (minus breaks)

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Define Data (Contd.) - Work Time Calculation
Day = 1 shift
– 1 Shift / day = 8 hours = 28,800 seconds / shift
( 8 x 60 x 60 x 1 shift)

Breaks
– Morning Tea (15 mins) : Lunch (30mins) :
Afternoon Tea (15 mins)
– Breaks = 60 mins = 3,600 seconds { (15 + 30
+ 15) x 60}

Working Time / Operating Time

– Shift Time – Break = 25,200 working seconds /
shift (28,800 – 3,600)
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Collect & Map Data (Customer & Supplier)

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Map Information Flow

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 Calculate Current State
1 week = 5 working days

Demand = 3,200 pieces / week or

640 pieces / day

Press Process
Type L + S = 2,250 pieces (1,000 +
1,250)
Duration = 3.5 days (2,250/640)

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Result - Current State

A Representative Current State Map for a Family of

Retainers at a Bearings Manufacturing Company

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© 2007 Pearson Education

 Compute Takt Time
1 week = 5 working days

Demand = 3,200 pieces / week

– Type L = 1,000 piece week (200/day)
– Type S = 2,200 piece week (440/day)

Total Pieces / Day / Shift = 640

Operating Time / Working Time = 25,200

Takt Time = Operating Time / Shift

Customer Requirment / Shift

Takt Time = 25,200 = 39 seconds

640 34
Total - Processing / Work Time

60 Seconds
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 Line Balancing
35
35
30
22
Seconds

25
20
15
10
3
5
0
Press Pierce & Form Finish Grind
Process

Work or Process Time = 60 Sec Takt Time = 39 Sec

Work / Takt time = # of Operators Required = 60/39 = 1.54 36

 Line Balancing (Contd.)
You require 1.54 operators
Having 2 is costly and having 1 can
lead to burnout
We could reduce Takt time from 39
sec to say 35 sec or less, by
combining some tasks and avoiding
burnout

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 Line Balancing (Contd.)

0
35

30 13

25

20 32
35
15
22
10

5
3
0
Press Pierce & Form Finish Grind 38
 Highlights - 4
Future State (To~Be)
Implementation Road Map
Improvement Results

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 Future State (To~Be)
Objectives
– Eliminate / reduce unnecessary NVA steps
– Optimise VA steps

Build Consideration (from current state)

– Eliminate/merge steps
– Create parallel paths
– Implement pull, if continuous flow isn’t possible
– Reduce or eliminate batches
– Create standard work
– Create an organised, visual workplace
– Eliminate unnecessary approvals
– Identify NVA tasks from customer’s point of view40

– Level production mix

 Implementation Road Map
Clarify Business Drivers and Key Customer Metrics

Assess and Map Current Capabilities (Baseline)

Identify Opportunities for improvement including the elimination

of waste

Create a Vision for the Future Based on Voice of the Customer

and Voice of the Business

Analyse Gaps and Create Action Plan to Succeed

– Use Robust Set of Tools (i.e. Lean Six Sigma)

Determine Priorities and Resources Necessary

– Structured Process Improvement

Track Impact through Metrics

Celebrate Wins - With Customers : Employees : Suppliers 41

 Improvement Results
Metric Current State Future State % Improvement

Lead time

Cycle time

CT/LT ratio

# steps

Morale
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 Highlights - 5
Excellence Road Map

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 Excellence Road Map
Strategic Planning Process
Approach / Develop Plan Deployment / Execute Plan Results
1 2 3 4 5 6 7 8

Develop / Quarterly ,
Communicate Develop cross - Integrate Execute integrated
Assess & Develop key
Set direction & integrate functional detailed implementation operations
understand plans
plans strategy teams implementation plans leadership
plans review
C-17 Enterprise Future State Value Stream

Initiative #1
Perform Enterprise Provide Manage Lead & Execute
Leadership

Strategic Planning Communications Risk Program

• Joint Strategic Planning • Consistent Messages • Comprehensive Risk Management • Joint Leadership Model with • Enable Seamless
• Shared Enterprise Vision, throughout Enterprise Program “Enterprise Thinking” Transition between
Strategies, and Goals • Joint Communication Plan – Extensive and Continuous • Process Management Mindset Development,
Risk Identification including Benchmarking Production and
• Shared Scorecard/Metrics Linked • Integrated Customer
to Goals Feedback available across – Effective Risk Mitigation • Joint Issue Resolution / Sustainment
Enterprise Objective Problem-Solving • Reduce Total
Ownership Cost
• Single Field Issue Reporting • Organization aligns with Future
State Value Stream

Define Propose Develop Manage Supply Assemble Maintain

Initiative #2
Update Future Set initiative
Requirements Work Product Chain Product Product
Life Cycle

• Jointly Define and Validate • Alpha Contracting Matured • Maximize Model-Based • Improved Supplier Quality • Lean Manufacturing • Predictive Logistics
Lifecycle Capability • Integrated Planning for Definition across Enterprise through Enterprise Supplier Assessment / Best Practices Planning
Requirements Development, Production, • Collaborative Development Partnerships Deployed • TSSR Performance and
• Joint Block Implementation and Sustainment (IMP/IMS) with key Stakeholders • Integrated Parts Procurement • Process Surveillance ALC Partnership
Planning • Early Involvement of key • Integrated Product and of Production, Retrofit and Conducted Concurrently

Initiative #3
Suppliers through Process Definition (IPPD) Spares with Assembly

State priorities
Partnerships Encompasses Lifecycle • Supply Chain Alignment / • “Factory to Fight” Assembly
• Integrated Design Solutions Leveraging (Boeing In-Position
provide Best Value Capability Commercial and DoD • Point-of-Use Delivery of
Military) Parts, Supplies and Tools
• Common Lean Processes for
all Supply Chain to include
GFE

Manage Technology Promote Employee Manage Manage Systems / Manage Contracts &

Initiative #4
Enabling

Roadmap Collaboration Knowledge Quality Finance

• “Network Enabled Operations” • Empowered Enterprise Work • Shared Databases Across Enterprise • Enterprise is focused on Lean • Business Models support Lean
• Technology Insertion Collaboration (Gov Teams Align to Strategic (Includes Suppliers) Principles Transformation
/ Industry) Direction • Virtual / Physical Enterprise Co-location • Enterprise Systems Engineering / • Exceed Obligation and
• People Understand how they fit • Automated Information Systems Aligned Management Architecture Expenditure Goals
into Enterprise “Big Picture” with Changing Business needs • Joint Enterprise Process Model • “Dollars per Flying Hour” Contract
• Working on Program is • Processes to Capture Enterprise
Meaningful and Fun: “Can Do” Knowledge Including Lessons Learned
Culture • Enterprise Web-based training
• Seamless Collaboration within
Enterprise 3

Process Based Management

1 2 3 4 5 6 7

Analyse
Define the Establish Determine Analyse & plan Implement
process Set goals
process metrics performance improvements improvement
stability 44
 Good Luck
[Link]

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