Continuous Improvement Toolkit Value Stream Mapping www. citoolkit - - PowerPoint PPT Presentation

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Continuous Improvement Toolkit Value Stream Mapping

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The Continuous Improvement Map

Multivariate Brainstorming IDEF0 Document control Check Sheets** Flowcharting Flow Process Charts** KPIs SCAMPER*** Pugh Matrix Lateral Thinking Reliability Service Blueprints Affinity Diagrams Mind Mapping* Attribute Analysis Morphological Analysis How-How Diagram*** Control Charts Waste Analysis** Time Value Map** Value Stream Mapping** Value Analysis** Suggestion Systems Histograms Activity Networks RACI Matrix Stakeholder Analysis Improvement Roadmaps DMAIC SWOT Analysis Policy Deployment Project Charter PDCA Gantt Charts MOST PERT/CPM Daily Planning Delphi Method Payoff Matrix Relations Mapping Data Mining Just in Time Automation Product Family Matrix Flow Spaghetti** Multi-vari Studies Decision Tree FMEA PDPC RAID Log* Fault Tree Analysis Paired Comparison Traffic Light Assessment TPN Analysis Risk Analysis* Run Charts Scatter Plots A3 Thinking Importance Urgency Matrix Four Field Matrix Critical-to X Portfolio Matrix Force Field Analysis Decision Balance Sheet Break-even Analysis Voting Quality Function Deployment Pick Chart Gap Analysis* Bottleneck Analysis Cost Benefit Analysis Kaizen Events Control Planning Standard Work Mistake Proofing Quick Changeover Visual Management Simulation TPM 5S Health & Safety Best Practices Pareto Analysis 5 Whys Prioritization Matrix Hypothesis SIPOC* Matrix Diagram Fishbone Diagrams Tree Diagram* Root Cause Analysis Correlation DOE ANOVA Nonparametric Chi-Square Regression Observations Kano Lean Measures Benchmarking*** Interviews Graphical Methods Data collection planner* Questionnaires Probability Distributions MSA Descriptive Statistics Cost of Quality* Sampling Focus Groups Capability Indices Process Yield Project KPIs Normal Distribution

Data Collection Understanding Performance** Implementing Solutions*** Planning & Project Management* Managing Risk Understanding Cause & Effect Designing & Analyzing Processes Group Creativity Selecting & Decision Making

Five Ws Process Redesign Pull Process Mapping OEE

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A high-level visual representation of a business process

Value Stream Mapping

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Involves the value-added and non-value-added work needed to create the products and services in response to customer needs

Value Stream Mapping

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Provides a graphical representation of the information and material flows

Value Stream Mapping

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Considered an improvement tool rather than just a definition of how the process operates or should operate

Value Stream Mapping

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Considered as a tool for:

Value Stream Mapping

Continuous Improvement Change Management Communication

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Considered as a tool for:

Value Stream Mapping

Continuous Improvement Change Management Communication A team may see an opportunity for maximizing the production rate to match the rate of customer demand

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Considered as a tool for:

Value Stream Mapping

Continuous Improvement Change Management Communication Useful for drawing a future state map or a blue-sky vision toward achieving the desired change

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Considered as a tool for:

Value Stream Mapping

Continuous Improvement Change Management Communication Effectively communicates where to focus the continuous improvement and change efforts

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A dynamic tool as it is continually be updated as the process is improved

Value Stream Mapping

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Often considered as the first and last thing to do during a lean project

Value Stream Mapping

LEAN

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Used to identify opportunities for reducing waste and improving quality and performance

Value Stream Mapping

By making the non-value-added activities easier to identify, and this is the heart of improving any business process

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Often associated with manufacturing

Value Stream Mapping

Can also be applied in product development and service-related industries such as healthcare, hospitality and logistics

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Used when you want improve an end-to-end process in a single site

Value Stream Mapping

Process Level Single Site Multiple Sites Supply Chain Start here

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Tends to display more information than a typical process map or flowchart

Value Stream Mapping

However, a value stream map does not track all possible paths that a process can take (does not include decisions)

Consider creating a process map before creating a value stream map as this will help better identify the value stream

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Preferred over other process mapping techniques . . .

Value Stream Mapping

When you want to improve productivity, utilization, and load distribution of staff When you want to know the various business systems used by your processes When you want to find out the Lean opportunities that exist in your core processes When you want to know the effectiveness of your customer service approach When you want to present the health of your processes to the top management When you want to know the various inventories and delays exist in your processes

10 20 40 30

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Benefits

Value Stream Mapping

Provides the opportunity to discuss and plan the needed improvements. Provides the opportunity to understand what is happening today. It gives everyone a chance to see how their work fits into the big picture. Helps to understand the flow of value as perceived by the customer.

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Benefits

Value Stream Mapping

Helps identify and eliminate waste within the value stream. Helps making the process as close to lean as possible. LEAN Enables to see the big picture from beginning to end. Helps establishing a future state vision.

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Benefits

Value Stream Mapping

Enables to see where problems lie within processes . . .

Problems and

inconsistencies

Delays Other forms

• f waste

Excessive inventory levels Non-value- added activities Bottlenecks

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Other Benefits

Value Stream Mapping

Help understanding and improving workplace organization Enable to see how improvements in one area will impact on other areas Provides a common visual language to understand complex processes Provides a framework for conversations and problem-solving Demonstrates the interaction between material flow and information flow Provides direction for streamlining, transformation and change Provides important descriptive information for the operation

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The set of activities required to convert raw materials to finished products in the hands of the customer

Value Stream Mapping

CUSTOMERS SUPPLIERS

Value Stream

The product here may indicate any part, service or the combination of both

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Value Stream Mapping

Value Stream – Other Definitions

The set of all the specific actions required to bring a specific product through the three critical business management tasks: 1- Problem solving 2- Information management 3- Physical transformation

Womack and Jones

“The steps required to create a product or complete a service” Examining the value stream helps to identify waste and non-value-added activities

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Value Stream

Value Stream Mapping

A value stream map is a flow layout of the material and information flows

Manual and electronic information flow along with the material flow Material flow, where products flow through the stream

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Material Flow

Value Stream Mapping

Material flows involve physical product flow from suppliers to consumers, as well as the returns of products, rework, recycling and disposal

Includes processing, handling, transport and storage

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Inventory

Value Stream Mapping

It is also important to look at the amount of stored raw materials, work in process (WIP), and finished products

Raw Materials Work in Process Finished Goods

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Information Flow

Value Stream Mapping

Important to the effective control of the material flow

Information is important to ensure that customers and suppliers will provide and receive information before any physical product or material is shipped or received.

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Value Stream Mapping

Information Flow – Information Types

Manual – information that is passed on manually or verbally Electronic – information that is passed on via telephone, fax, email, etc.

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Value Stream Mapping

Information flow may include . . .

Demand forecasts The transmission of orders Financial related flows Schedules, instructions, approvals and reports Verbal discussions and communication

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VSM Manufacturing Example Spans from order taking to product delivery

Value Stream Mapping

Material handling Processing Packaging Shipping Production control Daily schedule

Customer Supplier

I

F I F O

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Non-Manufacturing Example – Equipment Installation

Value Stream Mapping

Email request

Customer service

Customer Supplier Notification

Schedule installation

Forecasting

I

Pick up parts Install equipment Functional test

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Which Product to Select?

Value Stream Mapping

No need to map the flow of every product, but the production of a single product or single product family Consider long lead time and high-volume products or services Consider a product which has a high business impact

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A Product Family Matrix may help!

Value Stream Mapping

Product Press Shape Bend Paint Package

A X X X X B X X X X C X X X D X X X

Generate a single flow diagram that is suitable for all product families

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Value Stream Mapping

Select the Value Stream Draw Current State Map Develop and Implement Improvements Draw Future State Map

1 2 3 4

Value Stream Mapping Process

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Value Stream Mapping

Value Stream Mapping Process – Current State Map

Value stream mapping begins by defining the current state as it is today This allows to identify waste and areas where improvement can be made

Also called value stream analysis (VSA)

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Value Stream Mapping

Develops an understanding of how the value stream

• perates today

Helps identify the waste elements and improvement areas Focus on understanding the existing flow of one product or service at once

Value Stream Mapping Process – Current State Map

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Value Stream Mapping

Consider the eight types of waste

Inventory

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Value Stream Mapping

Once the current state is mapped, and after studying the flow of materials and information and identifying the waste, it is time to create a future state map

• f how the process should be

Value Stream Mapping Process – Future State Map

Also called value stream design or VSD

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Value Stream Mapping

Value Stream Mapping Process – Future State Map

The ideal state or blueprint that you want to achieve toward implementing a lean system

Should be based on lean principles such as flow, pull and perfection to create a more streamlined production flow

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Value Stream Mapping

Value Stream Mapping Process – Future State Map

It is important to define what is meant by ‘future’ before beginning to develop the future state

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Value Stream Mapping

Value Stream Mapping Process – Implementation Plan

From current to future state, there are many gaps and

• pportunities

An implementation plan should be developed and implemented to get to the future state

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Value Stream Mapping

Value Stream Mapping Process – Implementation Plan

Remember that this is a project that needs to be owned, tracked and monitored throughout its life cycle

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Value Stream Mapping

Value Stream Mapping Process – Implementation Plan

When the future state becomes a reality, it becomes the new current state The process will start all over again, and this is the essence of continuous improvement

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Value Stream Mapping

Value Stream Mapping Process – Hints

A current state map without a future- state vision is waste A future state map without an action plan to achieve it is waste Avoid focusing on improvement

• pportunities with little impact

Information is better to be collected from the shop floor

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Value Stream Mapping Symbols

Value Stream Mapping

Value stream mapping uses a set of symbols to denote the various details The type of symbols that are used usually depends

• n the industry and the

type of work

I

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Value Stream Mapping

C/T = C/O = Uptime = NAT =

I

FIFO

S

OXOX

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Value Stream Mapping

C/T = C/O = Uptime = NAT =

I

FIFO

S

OXOX

The list is by no means complete! You may design your

• wn symbols to

express your details New symbols should be easy to design They should be understandable by everyone working or visiting the area

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Value Stream Mapping

Material flow

C/T = C/O = Uptime = NAT =

Data box Process box Push Information flow Withdrawal

COATING

Process or

• peration box

Covers one area of continuous flow, where materials flow without being stored, queued or delayed. Used when a part is intentionally changed in any of its characteristics, assembled

• r

disassembled,

• r

arranged for another

• peration,

transportation, inspection, or storage. Also used to represent a person (or department) doing work, or when information is given or received.

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Value Stream Mapping

C/T = 2.3 seconds C/O = 52 minutes Uptime = 85% NAT = 25,200 seconds Scrap rate = 3.1%

Material flow Process box Push Information flow Withdrawal Data box

C/T = C/O = Uptime = NAT =

Optionally used to list key information related to processes. Can be placed under

• ther

symbols (e.g. transportation, inventory

• r

key customers

• r

suppliers) to list key information.

COATING

Data box

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Value Stream Mapping

Material flow Process box Push Information flow Withdrawal Data box

C/T = C/O = Uptime = NAT =

Drawing

• Prod. Rate = 2450

C/T = 30 sec C/O = N/A Uptime = 98%

Rinsing

• Prod. Rate = 2400

C/T = 376 sec C/O = 60 min Uptime = 94 %

For example, analyzing which workstation has the maximum number of operators or has the maximum change-over time. Helps later when creating the timeline and the summary box, and when comparing between the different workstations or processes.

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Value Stream Mapping

Cycle times (C/T) Net available working times (NAT) Changeover times (C/O) Defect or scrap rates Production rates or EPE Machine uptime rates Processing times Number of workers per machine Setup times Rework rates Overall equipment effectiveness Product flow (push or pull) Batch sizes Number of product variations Maximum capacities

Material flow Process box Push Information flow Withdrawal Data box

C/T = C/O = Uptime = NAT =

Information related to processes depend on the needs and may include:

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Value Stream Mapping

Material flow

C/T = C/O = Uptime = NAT =

Data box Process box Push Information flow Withdrawal

Some lean practitioners simply use the straight arrow for all types of information flow. Generally used to represent flow of information. Can be accompanied with text or other icons to indicate the type of information, the frequency of information interchange, and the type of media used (telephones, emails, Intranets, LANs, etc.).

Manual information flow Electronic information flow

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Value Stream Mapping

Material flow

C/T = C/O = Uptime = NAT =

Data box Process box Push Information flow Withdrawal

Also represents the movement of finished goods from the shipping areas to the customers (accompanied with the shipping frequency). Represents the transfer or movement of materials from

• ne process to the next.

Also represents the movement of raw materials from suppliers to the receiving areas (accompanied with the shipping frequency).

Material flow or shipping

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Value Stream Mapping

Material flow

C/T = C/O = Uptime = NAT =

Data box Process box Push Information flow Withdrawal

Pushing the materials from one process to the next. Represents a material flow that is not controlled by a pull system.

A push arrow

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Value Stream Mapping

Material flow

C/T = C/O = Uptime = NAT =

Data box Process box Push Information flow Withdrawal

Used when the material is pulled from the supplying process to the supplied process.

Material withdrawal

• r physical pull

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Value Stream Mapping

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

Represents an external body to the organization, and mainly indicates the key suppliers and customers along the value chain. Often accompanied with a data box underneath which covers the characteristics of that supplier or customer.

Firm name (supplier or customer)

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Value Stream Mapping

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

300 items/day 87 type A, 120 type B Pallet = 30 items 3 shifts, 24/7operation

Customer Name

Information related to customers may include; number

• f

customers, demand rate (items/day), packaging size requirement, actual and required lead times, error rates, customer shift pattern, product mix, etc. Usually there is only one customer shown, but you may have more than one.

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Value Stream Mapping

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

Supplier Name

Information related to suppliers may include; number

• f suppliers, demand rate (items/day), packaging size

requirement, actual and required lead times, error rates, supplier shift pattern, the different types of materials, etc. Usually there is only one supplier shown, but you may have more than one.

5 Shipments/month 3 shifts, 24/7operation Delivery time: 30-55 days

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Value Stream Mapping

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

Transport or Shipment

Represents how raw materials are brought in and how finished goods are sent out. Date related to transportation may include; distance traveled, transportation time, transportation frequency, number of product types, etc. Also represents the transport of raw materials, WIP, or products within the facility by an operator.

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Value Stream Mapping

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

Transportation can be of three types: 1- External (e.g. trucking). 2- Internal (e.g. forklifts). 3- Conveying between processes.

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Value Stream Mapping

3

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

Usually placed in a process box to represents the number

• f

workers deployed at a particular workstation.

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Value Stream Mapping

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

Represents the storage locations for raw materials, work-in-process (WIP), and finished products throughout the value stream. Date related to inventory may include; inventory type, amount of inventory, queue or delay time, number of product types in the inventory, etc.

I

Inventory

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Value Stream Mapping

I

Pieces

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

You may indicate that the inventory is uncontrolled or has no fixed upper limit by leaving the triangle without a number. You can write a number below the triangle to indicate the approximate amount of inventory observed, or the maximum capacity.

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Value Stream Mapping

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

Q D

Occurs when a product is examined against pre-defined quality standards to determine whether defective products are being produced. Represents unplanned accumulation of materials or products without a prior plan. Also represents a delay in the process, such as waiting for approval. These are not standard symbols and rarely used.

Quality inspection Delay

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Value Stream Mapping

S

Pieces

Represents a safety stock against problems such as unplanned breakdowns, to protect the production system against failure

• r

sudden fluctuations in customer demands.

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

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Value Stream Mapping

FIFO

MAX =

External body Transport Worker

I

Inventory

S

Safety stock

FIFO

FIFO sequence

First In First Out lane is used to show where parts are stored or transferred to the next process in a FIFO sequence (queue). You may write either the maximum capacity or the current capacity above or below the FIFO lane.

FIFO lane

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Value Stream Mapping

Work cell Document / report Business system Go see Kaizen burst Improvement idea

Represents a document, form or report that is generated throughout the value stream. More than

• ne report can be represented through the use of

multiple symbols behind each other.

Document or report

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Value Stream Mapping

Work cell Document / report Business system Go see Kaizen burst Improvement idea

Business System

Represents a centralized system (ERP or MRP). Note that a production control or scheduling system can also be represented using a plain box. Note that value stream mapping considers not only the process, but also the management systems and information systems that support the process

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Value Stream Mapping

Work cell Document / report Business system Go see Kaizen burst Improvement idea

Visually checking material and information flows to ensure they meet quality standards and quantity requirements. For example, a supervisor may visually check the material flow to seek for discrepancies, visually inspect a sample product as part of his routine job, or visually check the amount of inventory to decides what to produce next.

Visually checking and gathering of information

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Value Stream Mapping

Work cell Document / report Business system Go see Kaizen burst Improvement idea

Kaizen or lightening Burst

Used to indicate issues and problems throughout the value stream. Kaizen bursts help launch appropriate kaizen events for continuous improvement.

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Value Stream Mapping

Work cell Document / report Business system Go see Kaizen burst Improvement idea

Used to indicate a solution, suggestion,

• r

improvement idea. The team can highlight improvement opportunities that are critical to achieve the future state of the value stream.

Improvement idea

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Value Stream Mapping

OXOX

Signal Kanban Supermarket Kanban post Production Kanban Withdrawal Kanban Load leveling

Used when the on-hand inventory levels in the supermarket between two processes drops to a minimum or the trigger point.

Improvement idea

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Value Stream Mapping

OXOX

Signal Kanban Supermarket Kanban post Production Kanban Withdrawal Kanban Load leveling

Represents an inventory supermarket or the end point

• f a Kanban loop.

For a supermarket to be complete, an information flow should come out of it and bring a Kanban back to one

• f the preceding processes or transports.

Supermarket

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Value Stream Mapping

OXOX

Signal Kanban Supermarket Kanban post Production Kanban Withdrawal Kanban Load leveling

A location where Kanban signals reside for pickup. Often used with two-card systems to exchange withdrawal and production Kanban.

Kanban post

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Value Stream Mapping

OXOX

Signal Kanban Supermarket Kanban post Production Kanban Withdrawal Kanban Load leveling

Used to signal the supplying process to trigger production and provide a pre-defined number of parts to the next process. Usually drawn on top of the information flow going back from a supermarket to a preceding process or transport.

Production Kanban

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Value Stream Mapping

OXOX

Signal Kanban Supermarket Kanban post Production Kanban Withdrawal Kanban Load leveling

A note card or device that instructs the material handler or operator to go to the supermarket and withdraw parts needed at the receiving process.

Withdrawal Kanban

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Value Stream Mapping

OXOX

Signal Kanban Supermarket Kanban post Production Kanban Withdrawal Kanban Load leveling

Part of the information flow in a Kanban loop. It is a tool to batch Kanbans in order to level the production volume and production mix over a period.

OXOX

Load leveling

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Value Stream Mapping

Value Stream Timeline

Total VA Total NVA VAR

The value stream timeline is the sum of time spent at all stages represented in ‘hills’ and ‘valleys’ Remember that not all processing time is value-added. The hills represent the waiting non-value-added time whereas the valleys represent the processing value-added time. The value stream timeline is used to facilitate the calculation of the value-added ratio (VAR) or the process cycle efficiency (PCE).

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Value Stream Mapping

Value Stream Summary

Total VA Total NVA VAR

The results are often summarized at the right of the timeline in a summary box. Other metrics can be added to the value stream summary as required.

VAR = Total Value Add Time (Processing Time) / Total Lead Time

Many organizations use the Value-Added Ratio (VAR) metric to measure the performance of their end-to-end process

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Value Stream Mapping

Zone the Map

Timeline & value stream summary Information flow External customers & suppliers Secondary processes Material flow Primary processes Delays & inventory between processes Title & date

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Value Stream Mapping

Establish the team and include people working in the process

C l e a r l y e x p l a i n t h e p u r p o s e f o r c r e a t i n g t h e v a l u e s t r e a m m a p

How to Conduct a Value Stream Mapping Exercise

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Value Stream Mapping

How to Conduct a Value Stream Mapping Exercise

Identify and agree on the product family and the value stream that needs to be mapped

D i s c u s s w i t h y o u r t e a m h o w a r e y o u g o i n g t o m a p t h e p r o c e s s

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Value Stream Mapping

Physically walk the flow starting from the customer and working backwards

C a p t u r e a l l r e l e v a n t d a t a a n d p e r f o r m a n c e i n f o r m a t i o n a s y o u w a l k . N o t e d o w n a n y i s s u e s o r c o n c e r n s

How to Conduct a Value Stream Mapping Exercise

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Value Stream Mapping

Walk the information flow and collect examples of relevant records, instructions, checklists, etc.

A l w a y s r e c o r d w h a t y o u s e e n o t w h a t y o u a r e t o l d i s n o r m a l l y t h e r e

How to Conduct a Value Stream Mapping Exercise

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Value Stream Mapping

How to Conduct a Value Stream Mapping Exercise

Use a flipchart or whiteboard to allow the team to draw the current state

S t a r t w i t h t h e t i t l e , d a t e a n d s t a t e ( c u r r e n t o r f u t u r e ) C o n s i d e r z o n i n g t h e m a p

Xxxxx Xxxxx

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Value Stream Mapping

How to Conduct a Value Stream Mapping Exercise

Map the material flow including processes, inventory, delays and transportation

I d e n t i f y t h e m a i n p r o c e s s e s a n d c o m p l e t e t h e d a t a b o x e s

Xxxxx Xxxxx

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Value Stream Mapping

Map the information flow and the secondary processes

A d d a n y o t h e r i n f o r m a t i o n y o u f e e l i s r e l e v a n t t o t h e m a p ( c u r r e n t s c h e d u l e , a m o u n t o f i n v e n t o r y, e t c . )

How to Conduct a Value Stream Mapping Exercise

Xxxxx Xxxxx

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Value Stream Mapping

Add the value stream timeline and the value stream summary

C a l c u l a t e v a l u e s t r e a m s u m m a r y m e t r i c s s u c h a s p r o c e s s i n g t i m e , l e a d t i m e a n d v a l u e - a d d e d r a t i o

How to Conduct a Value Stream Mapping Exercise

Xxxxx Xxxxx

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Value Stream Mapping

How to Conduct a Value Stream Mapping Exercise

Look for the non-value-added activities, delays and other form of waste

R e c o r d o n t h e m a p t h e d i f f e r e n t t y p e s o f w a s t e , d e l a y s ,

• b s e r v a t i o n s , s u g g e s t i o n s , i d e a s , e t c .

Xxxxx Xxxxx

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Value Stream Mapping

S t a r t o n l y w h e n t h e c u r r e n t s t a t e m a p i s u n d e r s t o o d a n d a g r e e d

How to Conduct a Value Stream Mapping Exercise

Gather the team again to visualize the ideal state and develop the future state map

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Value Stream Mapping

Look for . . .

How to Conduct a Value Stream Mapping Exercise

Steps that can be simplified or eliminated Build-ups of inventory Stock shortages Long travel distances Bottlenecks High scrap and rework rates Too few or too many staff in key areas Lengthy checking

• r approval periods

5S and safety issues

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Value Stream Mapping

Optimize and organize processes . . .

How to Conduct a Value Stream Mapping Exercise

Elimination Combination Change sequence

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Value Stream Mapping

How to Conduct a Value Stream Mapping Exercise

Significant variations in cycle times or demand levels Long value stream cycle times Different time basis compared with key customers Poor value stream ratios

Look for . . .

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Value Stream Mapping

Brainstorm ways to eliminate the waste, ask questions like?

How to Conduct a Value Stream Mapping Exercise

Are things done in the right sequence? Does information arrive on time? Are existing systems used in optimum way? Can any paperwork be eliminated? Is automation possible? Is information available, reliable and up-to-date? Are there any quick wins possible? Is information really used in decision making?

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Value Stream Mapping

Plan and implement actions to achieve the future state

A s s i g n r e s p o n s i b i l i t i e s a n d i d e n t i f y m i l e s t o n e s a n d r e c o u r s e s

How to Conduct a Value Stream Mapping Exercise

Xxx Xxx Xxx Xxxx Xxxx

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Value Stream Mapping

Guidelines for Developing the Future State Map

Develop continuous flow wherever possible Use pull and Kanban systems where continuous flow is not possible Produce to Takt time Scheduling based on the pacemaker process Distribute the production of different products evenly (level the production rate) Optimize the number of people Level the production load on the pacemaker process (Level the production volume) Improve uptime Reduce inventory

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Value Stream Mapping

Example – Start with customer requirements

Cans customer

16 trailers / day

• Each 20 pallets

3 shifts X 8 hrs

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Value Stream Mapping

Example – Draw the material flow

Cans customer

16 trailers / day

• Each 20 pallets

3 shifts X 8 hrs

Drawing

• Prod. Rate = 2450

P/T = 30 sec C/O = N/A Uptime = 98%

Wall ironing

• Prod. Rate = 2800

P/T = 17 sec C/O = 30 min Uptime = 83%

4 Rinsing

• Prod. Rate = 2400

P/T = 376 sec C/O = 60 min Uptime = 94 %

2 Painting

• Prod. Rate = 2200

P/T = 179 sec C/O = 150 min Uptime = 80%

4 Shaping

• Prod. Rate = 2400

P/T = 45 sec C/O = 200 min Uptime = 42%

1 I I 2 Packaging 2

• Prod. Rate = 2450

P/T = 397 sec C/O = 45 min Uptime = 81%

F I F O

I I I I I

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Value Stream Mapping

Example – Add the suppliers

Cans customer

16 trailers / day

• Each 20 pallets

3 shifts X 8 hrs

Drawing

• Prod. Rate = 2450

P/T = 30 sec C/O = N/A Uptime = 98%

Wall ironing

• Prod. Rate = 2800

P/T = 17 sec C/O = 30 min Uptime = 83%

4 Rinsing

• Prod. Rate = 2400

P/T = 376 sec C/O = 60 min Uptime = 94 %

2 Painting

• Prod. Rate = 2200

P/T = 179 sec C/O = 150 min Uptime = 80%

4 Shaping

• Prod. Rate = 2400

P/T = 45 sec C/O = 200 min Uptime = 42%

1 I I 2 Packaging 2

• Prod. Rate = 2450

P/T = 397 sec C/O = 45 min Uptime = 81%

F I F O

I I I I I

Steel company Coil supplier

5 shipments/month

• Each 20 containers
• Each 2 coils

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Value Stream Mapping

Example – Add the information flow

Weekly schedule - daily communication (320 pallets needed every day)

Daily ship schedule 3, 6 & 12 months demand forecast

Production control

Weekly order 2240 pallets Quarterly forecast Monthly order 100 coils Cans customer

16 trailers / day

• Each 20 pallets

3 shifts X 8 hrs

Drawing

• Prod. Rate = 2450

P/T = 30 sec C/O = N/A Uptime = 98%

Wall ironing

• Prod. Rate = 2800

P/T = 17 sec C/O = 30 min Uptime = 83%

4 Rinsing

• Prod. Rate = 2400

P/T = 376 sec C/O = 60 min Uptime = 94 %

2 Painting

• Prod. Rate = 2200

P/T = 179 sec C/O = 150 min Uptime = 80%

4 Shaping

• Prod. Rate = 2400

P/T = 45 sec C/O = 200 min Uptime = 42%

1 I I 2 Packaging 2

• Prod. Rate = 2450

P/T = 397 sec C/O = 45 min Uptime = 81%

F I F O

I I I I I

Steel company Coil supplier

5 shipments/month

• Each 20 containers
• Each 2 coils

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Value Stream Mapping

Example – Add VSM timeline and VSM calculations

Weekly schedule - daily communication (320 pallets needed every day)

Daily ship schedule 3, 6 & 12 months demand forecast

Production control

Weekly order 2240 pallets Quarterly forecast Monthly order 100 coils Cans customer

16 trailers / day

• Each 20 pallets

3 shifts X 8 hrs

Drawing

• Prod. Rate = 2450

P/T = 30 sec C/O = N/A Uptime = 98%

Wall ironing

• Prod. Rate = 2800

P/T = 17 sec C/O = 30 min Uptime = 83%

4 Rinsing

• Prod. Rate = 2400

P/T = 376 sec C/O = 60 min Uptime = 94 %

2 Painting

• Prod. Rate = 2200

P/T = 179 sec C/O = 150 min Uptime = 80%

4 Shaping

• Prod. Rate = 2400

P/T = 45 sec C/O = 200 min Uptime = 42%

1 I I 2 Packaging 2

• Prod. Rate = 2450

P/T = 397 sec C/O = 45 min Uptime = 81%

F I F O

I I I I I

Steel company Coil supplier

5 shipments/month

• Each 20 containers
• Each 2 coils

30 sec 0.1 days 45 sec 17 sec 376 sec 179 sec 0.1 days 0.1 days 75 days 0.4 days 0.2 days 397 seconds 12 days

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Value Stream Mapping

Example – Identify issues & opportunities for improvement

Weekly schedule - daily communication (320 pallets needed every day)

Daily ship schedule 3, 6 & 12 months demand forecast

Production control

Weekly order 2240 pallets Quarterly forecast Monthly order 100 coils Cans customer

16 trailers / day

• Each 20 pallets

3 shifts X 8 hrs

Drawing

• Prod. Rate = 2450

P/T = 30 sec C/O = N/A Uptime = 98%

Wall ironing

• Prod. Rate = 2800

P/T = 17 sec C/O = 30 min Uptime = 83%

4 Rinsing

• Prod. Rate = 2400

P/T = 376 sec C/O = 60 min Uptime = 94 %

2 Painting

• Prod. Rate = 2200

P/T = 179 sec C/O = 150 min Uptime = 80%

4 Shaping

• Prod. Rate = 2400

P/T = 45 sec C/O = 200 min Uptime = 42%

1 I I 2 Packaging 2

• Prod. Rate = 2450

P/T = 397 sec C/O = 45 min Uptime = 81%

F I F O

I I I I I

Steel company Coil supplier

5 shipments/month

• Each 20 containers
• Each 2 coils

30 sec 0.1 days 45 sec 17 sec 376 sec 179 sec 0.1 days 0.1 days 75 days 0.4 days 0.2 days 397 seconds 12 days

SMED 5S Uptime Spoilage

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Value Stream Mapping

Further Information

Like many other lean tools, developing a value stream map for the sake of doing the map will not help much You should first have a problem that needs to be solved

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Value Stream Mapping

Further Information

Try to be specific and include only what you think is relevant for your situation For example, if inventories are not part of the problem, it would be a waste to count them

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Value Stream Mapping

Further Information

Problems that are not related to the material or information flow are unlikely to benefit from value stream maps (e.g. administrative areas and indirect areas and support services)

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Value Stream Mapping

Further Information

There are many software applications and online services that allow the creation of value stream maps

For example, you can generate value stream maps in Minitab Workspace