Engineering

Management
MSE507
Lean Manufacturing

The Value Stream

"Whenever there is a product for a customer, there is a

value stream. The Challenge lies in seeing it”
PHILIP (PHIL) M. CONDIT
Chairman and Chief Executive office
The Boeing Company
"There is only one boss: the customer. And he can
fire everybody in the company, from the chairman
on down, simply by spending his money
somewhere else."

Samuel M. Walton
Wal-Mart Stores, Inc.
Chairman & Chief Executive Officer
 Why Map A Value Stream?

 Lean Manufacturing is:

the relentless elimination of waste
 Waste is using resource…
…without adding value
 Waste is all around us, but it can be very hard to see
 Value Stream Maps (VSM) help us see waste
 Value Streams

 A Value Stream is the entire set of activities running from

raw material to finished product for a specific product or
product family

 In a typical enterprise, value streams can intersect with

other value streams, branch apart or Y together
 Value Stream Maps

 Value Stream Maps are powerful visual tools to help see

waste and understand the flow of material and information
• Especially powerful for illustrating the wastes of
Overproduction, Idle Material & Transportation
 Value Stream Maps show all actions required to deliver a
product…
Value Added…as well as
Non-Value Added
 Other Benefits Of VSM

 Provides a big picture perspective that helps

focus on improving the whole process, not just
optimizing bits and pieces
 Shows the linkage between the information flow
and material flow
 Helps to see across the functional boundaries
over which a product’s value stream flows
 Other Uses For VSM

 To help understand how your business actually

works (you don’t understand the current process if
you can’t draw it)
 A tool for establishing a vision and implementation
plan for a new business or product line
 A visual tool and common language for talking to
others about your manufacturing process
 Mapping Process

Product Family Define the Value Stream

Current State Drawing Understand how the value

currently flows

Future State Drawing Design a LEAN flow

Work Plan & Plan how to get there

Implementation and execute the plan
 Value Stream Step 1
Create a Matrix

 Create a matrix if your mix is complicated

Assembly and Equipment

1 2 3 4 5 6
X X X X X
F E D C B A

A Product
X X X X X X
Products

Family
X X X X X
X X X
X X X
X X X X
 A Reminder

The point of value stream mapping is not the

maps, but to understand the flow of information
and material and see waste

...and then use that understanding and insight to

improve your process

IMPLEMENT FUTURE STATE!

Engineering
Management

Value Stream Mapping

Current State Maps

(CSM)
 The Current State Map

 A pictorial view, drawn with pencil and paper while

observing the process on the factory floor, that shows how
material and information currently flow
 Creates a baseline for future improvements to be
measured against
 Clarifies understanding of how the current production
system actually operates
 Material Flow Icons

Assembly C/T=45 sec.

XYZ C/O=30 min. I
Corporation 3 Shifts. 300 pieces
2% Scrap 1 day
Process Supplier/
Box Customer Data Box Inventory Supermarket

Mon
+ Wed
FIFO

Shipment Push Physical Finished Goods First-In-First-Out

Pull to Customer
 Information Flow Icons

Weekly
Schedule OXOX

Manual Electronic Load Sequenced-Pull

Information Flow Information Flow Schedule Leveling Box Ball

Withdrawal Production Signal Kanban

Kanban Kanban Kanban Post
 General Icons

Uptime

Changeover

Kaizen
Lightning Burst
Operator
Buffer or
Safety Stock

“Go See”
Production
Schedule
 Information Flow Example
Customer

Start with the Customer

INVENTORY ICONS
WITH PUSH ARROWS

Material Flow
 PROCESS BOX ICONS

DATA BOX ICONS

- C/T time
- C/O time
- Up time
- Scrap
Time Line-PLT- Process Lead Time
PT- Process Time
7.6 10 7 1.5 3
28 days PLT = 57.1 days
days days days days days
15 sec 60 sec 150 sec 501 sec 395sec PT = 18.7 minutes
 Value Stream Map - Acme Exercise
(Use the Handout Data Sheet)

 Use a pencil and small Post-it notes on 11” x 17” paper.

 Use the following colors
• BLUE - Process
• YELLOW - Inventory (tear in half)
• PINK - Master schedule / Production control
• GREEN - Supplier & Customer
 Fill in a Post-it notes for each process/data and symbol
 Remember “Always start with the Customer”
 Build the map, leave enough room between process boxes to
show inventory and enough space on the bottom to draw the
time line
 VSM - Acme Exercise

 Draw in Customer and Suppliers data.

Step 1
State
StateStreet
Street
Assembly
Assembly

Michigan Steel 18400 pieces/month

Company -12000- L
- 6400- R

500 ft coils Tray = 20 pieces

 VSM - Acme Exercise

 Draw in process boxes and data.

• Add a shipping box
 Draw in the Inventory triangles and data
Steps 2 & 3
State
StateStreet
Street
Assembly
Assembly

Michigan Steel 18400 pieces/month

Company -12000- L
- 6400- R

500 ft coils Tray = 20 pieces

Ass’y Ass’y
Stamping S. Weld #1 S. Weld #2 Shipping
#1 #2
I I I I I I
1 1600 L 2700 L
Coils 4600 L 1 1100 L 1 1 1200 L 1 Staging
2400 R 850R 1440R
5 days 600R 640R

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
 VSM - Acme Exercise

 Draw in Customer and Suppliers delivery schedules and

method.
Steps 4 & 5
StateStreet
State Street
Assembly
Assembly

Michigan Steel 18400 pieces/month

Company -12000- L
- 6400- R

500 ft coils Tray = 20 pieces

2 shifts

Tues. &
Thurs.
1x Daily

Ass’y Ass’y
Stamping S. Weld #1 S. Weld #2 Shipping
#1 #2
I I I I I I
1 1600 L 2700 L
Coils 4600 L 1 1100 L 1 1 1200 L 1 Staging
2400 R 850R 1440R
5 days 600R 640R

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
 VSM - Acme Exercise

 Put in production control and schedules

 Draw in Information flows Internal and external
Step 6 90/60/30 day
forecasts
State
StateStreet
Street
6 week Assembly
Michigan Steel Production Control Assembly
forecast
Company
Daily 18400 pieces/month
Weekly
Order -12000- L
Fax
500 ft coils MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly Schedule Schedule
Weekly Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2 Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 600R 850R 640R 1440R
5 days

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
 VSM - Acme Exercise

 Material flows between processes (push, pull, kanban)

Step 7 90/60/30 day
forecasts
State
StateStreet
Street
6 week Production Control Assembly
Assembly
Michigan Steel
forecast
Company Daily
Order 18400 pieces/month
Weekly
-12000- L
Fax
500 ft coils MRP
MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly
WeeklySchedule
Schedule Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2 Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 600R 850R 640R 1440R
5 days

C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m C/O=10 m C/O = 0 C/O = 0
Uptime Uptime = Uptime = Uptime = Uptime =
=85% 100% 80% 100% 100%
27,600 27,600 27,600 27,600 27,600
sec. avail. sec. avail. sec. avail. sec. avail. sec. avail.
 VSM - Acme Exercise
 Draw production lead time/value-added timeline
 Calculate production lead time for inventory triangles by
dividing quantity of inventory by the customer daily requirement
• This is a really neat trick! It turns a count of inventory into the
number of production days that inventory represents
• Stamping / Weld
18,400 pieces/mo / 20 days = 920 pieces/day
920 / 16 hours (2 shifts) = 57.5 pieces/hour
7000 pieces (total Inv.) / 57.5 pieces/hour = 121.7 hours of Inv.
121.7 hours of Inv. / 16 hours = 7.6 days of Inventory
Finish the rest of the calculations.
 What is the inventory production lead time?
 Title and date the map
Step 7 Acme Steering Bracket Line 90/60/30 day
3-15-2002 forecasts
State Street
6 week Production Control Assembly
Michigan Steel
forecast
Company Daily 18400 pieces/month
Weekly Order -12000- L
Fax
500 ft coils MRP
MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly
WeeklySchedule
Schedule Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2 Shipping

Stamping S. Weld #1 S. Weld #2
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 600R 850R 640R 1440R
5 days
C/T=1 sec C/T=39 sec C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m
C/O=10 m C/O = 0 C/O = 0
Uptime Uptime =
Uptime = Uptime = Uptime =
=85% 100%
80% 100% 100%
27,600 27,600
sec. avail. 7.6 sec. avail. 1.8
27,600 2.7
27,600 2
27,600 4.5
5 days
days days
sec. avail. days
sec. avail. days
sec. avail. days PLT = 23.6 days
1 sec 39 sec 46 sec 62 sec 40 sec
PT = 188 sec.
 The Office

 Office functions support many shop floor value streams -

purchasing, payroll
 The rate of customer demand is often hard to “see”
 Inventory can be forms, paperwork, in-baskets, out-baskets,
voicemail, email
 Cycles of activity often are random - little standard work
 Confusion about who the customer is and what is value
 The Office

HOWEVER, THE
OBJECTIVE IS TO
ELIMINATE WASTE!
 The Office Current State

 Define boundaries of your value stream

 “There has to be a ‘product’ or ‘service’ to follow - like a
purchase order or payroll document - otherwise use a normal
flowchart” (LEI)
 The Office Current State

 What capability do you provide?

 Is the demand stable?
• If not, what is the range ?
 What is the customers expectation of performance?
 Constructing Office Current State

Outbox Waiting Inbox

I w I
1 Day 1/2 Day at 1 Day
meeting

 Waiting should be recorded if there is no apparent ‘end’ takt

time and the next process is far away
 Use Cycle Time of customer process to understand total lead
time
 Constructing Office Current State

State Street
Make notes where you see State Street
Supplier
Assembly obvious Waste on the Map Customer
Assembly

Poor workplace Duplication:

Organization Many Signatures

Re-enter Data: Paper Form Rework:

Legacy System Incomplete Data
 Constructing Office Current State

State Street
Michigan Steel Assembly
Customer
Customer
Company Engineering
Central
database database

EmailO Email
Phone Phone Design Quote
rder Clarification Clarification

Log file
Phone
Clarification Email -
Clarification
Email /
voicemail Order Outbox Waiting Inbox Waiting Inbox BOM Outbox Waiting Inbox Outbox Waiting Inbox Quote
Manf.
Receipt Eng. Validation Eng. Prep
I W I w I Review I w I
w I I w I
4 Estimates Meeting 2 files 1/2 Day at 2 files 1/2 Day 7 files 3 files 1/2 Day 10 files 4 files Clarify 2 files
.5 hours 3 hours 1 Day meeting 1 Day Purchasing 1 Day 1 Day Customer 1 Day 1 Day 1 Day 1 Day
1 sales Rep 1 Eng. quote 1 Sales Rep 1 Eng. 1 sales Rep

.5 hr 3 hr 1 Day .5 Day 1 Day .5 Day 1 Day 1 Day .5 Day 1 Day 1 Day 1 Day 1 Day

10 min 4 hrs 3 hrs 60 min 20 min

Total 10 Days
Total CT 8 hrs 20 min
 Mapping Tips

 Use Colored Post-it notes paper for Mapping

(Easier to move Post-it notes than redraw)
 Use roll of butcher paper so you can use a wall and see the
whole VSM
 Use string or ribbon to show material & information flows
 Decide whether to count all parts or sample
 Mapping Tips

 Best to map production lines between

Tuesday and Thursday
 Use someone from the line or process to walk you through it
first, post-it note process, come back and get
Real Data and Times
 If you plan on using the times to balance your process then do
not take shortcuts - you will be way off
(Embarrass yourself!!)

 See with your hands. No “Armchair Lean!”

 Mapping Steps

 Gather customer information

 Get with the process owners and talk / draw - through the
process sequence and capture the sequence on a Post-it note
 Walk the process - Post-it note process boxes (up versus down
stream?)
 Fill in data boxes and inventory levels. (Get Real Times)
 Document how goods are delivered to the customer
 Gather supplier information
 Add information flows
 Sketch how material moves between processes.
 Draw production lead time/value-added timeline
 Mapping Tips

 Calculate production lead time for inventory triangles by dividing

quantity of inventory by the customer daily requirement
• This is a really neat trick! It turns a count of inventory into the
number of production days that inventory represents
 Add a title and date the map
 Homework Assignment
 Questions:
1. Use slide 30 as a template and construct a value stream of
your choice (product or service)
2. Explain the advantages and possible disadvantages of
using Value Stream Maps to improve the business
 Read Lean Thinking Chapter 3 - Flow
• Pages 50 - 66
Questions? Comments?