The Lean Enterprise. Value Stream Mapping
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1 The Lean Enterprise Value Stream Mapping
2 Overview! What is Value Stream Mapping?! Value Stream Mapping is a method of creating a "One page picture" of all the processes that occur in a company, from the time a customer places an order for a product, until the customer has received that product in their facility.! The goal is to depict material and information flows across and throughout all Value-Adding Processes required to produce and ship the product to the customer. Value Stream Maps document all of the processes used to produce and ship a product, both Value-Adding and Non-Value-Adding (Waste) processes.! Why Value Stream Map?! During the team creation of a Value Stream Mapping, business and manufacturing waste that occur in the processes can be easily identified.! Once the Current State Value Stream Mapping is created, it becomes the baseline for improvement and for the creation of a Future State Value Stream Mapping. The FSVSM can then be used as a World Class Manufacturing implementation road map. Ph. Magnier - 3/0/ Release Org 2
3 Value Stream Mapping Example I'm placing my order for a custom widget. Customer places order over the internet, - 3 minutes - Producer processes order, orders material from suppliers, - 5 minutes value-added, 2 weeks leadtime - Supplier ships material, - 2 days in-transit time - Production of custom widget, - hour of value-added, 0 days queue time - I finally got it! Why 30 days? Customer receives product, - 30 days after order it - Manufacturer ships widget, - 2 days in-transit time - Inventory storage,packaging, shipping, - 0 minutes value-added, 2 days queue time -! Elapsed Time from Order to Delivery : 30 Days.! Value-Added Time : Hour, 25 Minutes. 00% Inspection, - 0 minutes each - Ph. Magnier - 3/0/ Release Org 3
4 Four Steps to Value Stream Mapping. Define and Pick the Product or Product Family. 2. Create the "Current State" Value Stream Mapping (CSVSM). 3. Create the "Future State" Value Stream Mapping (FSVSM). 4. Develop an Action Plan to make the FSVSM the CSVSM. Ph. Magnier - 3/0/ Release Org 4
5 Step # Define Product or Product Family! Define Product, or! Define Product Family.! Products Sharing Common Processes?! From Order Entry to Shipment.! Search for Commonality; Main Processes, Optional Processes, Process Description Product Product Family L0 Coils Bending L0 Unit Brazing Machine Labor Labor L0 Unit Ass'y Labor L0 Unit Packing Labor TWK 530 NBL TWK 530 NBL-OC CDT TWK 536 NBL TWK 536 NBL-OC CDT 3 TWK 048 NBL TWK 048 NBL-OC CDT 2 Ph. Magnier - 3/0/ Release Org 5
6 Step #2 Create the "Current State" VSM! Define the scope of the Value Stream Map.! Walk the process from end to end.! Agree upon the symbols, icons, and data to use.! Brainstorm an initial map.! Determine missing information the VSM requires.! Make assignments to gather and create information, "Go See" the process.! Collect as much information about causes of waste as possible.! Build the Current State Value Stream Map (CSVSM).! Make a list of "Lightning Bolts" of potential improvements. Ph. Magnier - 3/0/ Release Org 6
7 Step #2 Typical VSM Symbols 2 Hours Operator Instructions Customer or Supplier Plant Trucking and/or Logistics Lightening Bolt of Opportunity Peaople Operator Electronic Information Flow Day Inventory Push of Production Punch (3) Items 0 Min Setup 20 Min Supplier Kanban Data Box Kanban Exchange "Pull" 5 Days "Go See" Tombstone Inventory Waste Information Flow Timeline of Value-Added Activities Vs. Non-Value-Added Activities Ph. Magnier - 3/0/ Release Org 7
8 Step #2 Create the "Current State" VSM Current State Map 20 Days Lead-Time Purchasing (2 Days) Raw Material 5 Day s Hardware Orders Work Order Technical Services (2 Days) Production Planning Supervisor Estimating Order Entry (2 Days) Shipping Schedule Quote RFQ Orders Customer 2 Hours Inventory Shear Punc h Deburr Form Break Clean Assembly Paint - Prime Air Dry Shipping (3) Items (4) Items (3) Thicks. (3) Items (4) Items Packaging 4 Day s 0 Min Set up 20 Min 60 Min Set up 90 Min 5 Min Set up 30 Min 75 Min Set up 60 Min 45 Min 30 Min 300 Min Taggi ng Invoice QA Final Inventory 3 Days Day 4 Days Day Day Day 3 Peopl e 20 Min Saw () Item 5 Min V/A Time = 20 Min 90 Min 30 Min 60 Min 45 Min 30 Min 300 Min 20 Min = 595 Min Non V/A = 9 Days 3 Days Day 4 Days Day Day Day = 20 Days Value Added Time as a % of Total Time in Plant = 595 Minutes (20 Day) (24 Hours/Day) ( 60 Minutes/Hour) = 2.% Ph. Magnier - 3/0/ Release Org 8
9 Step #3 Create the "Future State" VSM Future State Map "Green Cell Team" 5 Days or Less Lead-Time Purchasing Raw Material Raw Material Supplier Kanban Hardware Work Order Repeat New Technical Services Production Planning Supervisor New Repeat Estimating Order Entry Shipping Schedule Quote RFQ Orders Client 2 Hours Hardware Supplier Kanban Shear (3) Items 0 Min Set up 20 Min Punc h (4) Items 60 Min Set up 90 Min Deburr (3) Thicks 5 Min Set up 30 Min Form Break (3) Items 75 Min Set up 60 Min Clean (4) Items 45 Min Assembly Green Cell Team, One Part = 6.75 Hours Plus Assembly Paint Prime 30 Min Day Air Dry 300 Min Shipping Packaging Taggi ng Invoice QA Final 3 Peopl e 20 Min Saw () Item 5 Min V/A Time = 20 Min 90 Min 30 Min 60 Min 45 Min 30 Min 300 Min 20 Min = 595 Min Non V/A = 35 Min 60 Min 5 Min 75 Min Day = Day, 780 Min Value Added Time as a % of Total Time in Plant = 595 Minutes (24 Hours/Day) ( 60 Minutes/Hour) Min = 26.8% Ph. Magnier - 3/0/ Release Org 9
10 Step #4 From "CSVSM" to "FSVSM"! An initial "Kick Off" event involving all stakeholders is recommended.! Everyone can be informed on what was learned in the process, and what we will be doing about it in a non-threatening manner.! Schedule regularly meetings for all participants.! Teams need a structure to work on problem solving and to complete tasks.! Progress on goals and support for the process needs to be verified continuously.! Information on progress needs to be collected and periodically reviewed with top management.! Teams created to work on various improvements may or may not include members of the Value Stream Mapping Team. The emphasis should be on putting the right members on a team to complete various projects.! Ph. Magnier - 3/0/ Release Org 0
11 Step #4 From "CSVSM" to "FSVSM"!! Initially, great care is needed to ensure that teams are supported with a skilled facilitator and the resources to meet the goals.! Ongoing communications on progress needs to be continuously reinforced.! Monthly "all hands" meetings along with posted information during each month can be an effective way to ensure good communications with all involved.! Implement a "Top-Level Report-Out" for the entire company.! Post in a conspicuous place three Value Stream Maps : The Original Current State. The Desired Future State. The "Virtual" Current State Where the team stands now.! A simple and visual comparison of the three value stream maps can speak progress! Ph. Magnier - 3/0/ Release Org
12 Recommended Reading and Software! "Learning to See" by Mike Rother and John Shook.! evsm 2002 Software.! The Lean Institute.! Web Site : The Lean Enterprise Memory Jogger.! GOAL/QPC 2 Manor Parkway, Salem, NH ! Web Site : Ph. Magnier - 3/0/ Release Org 2
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