VSM is probably one of the most underestimated Lean tools. In fact, we could say it’s a waste not to use it. VSM ties together all Lean concepts and techniques. It makes it easier to visualize and truly understand the process at multiple level. The true value is understanding the necessity of making maps. This is not only ‘art for art’s sake’. You will learn how to create the end vision which is the baseline for developing Roadmaps for achieving ultimate success. To make life easier, we provide basic tools to create both maps and to run implementation plan

1. © Lean & Mean Consulting. All rights reserved. 2015© Lean & Mean Consulting. All rights reserved. 2016
02/ 16
Lean Value Stream
Mapping & Analysis
Creating End Vision and Roadmaps for Driving OpEx
World-Class Standards of Operational Excellence

2. 2
Objectives
Upon completion of this workshop, you will be able to:
 Understand why creating a VSM is crucial for succeeding in Lean
 Create a value stream map for both the current and future states
 Develop a data collection plan for the value stream map
 Conduct end-to-end assessment of value-added versus non-value-added
activities
 Prioritize projects based on strategic objectives
 Develop action plan to achieve the future state

3. 3
Agenda
1. Overview of Lean Thinking
2. Tools for VSM: make the life easier
3. Introduction to Value Stream Mapping
4. Identify a Value Stream
5. Create a Current State Value Stream Map
6. Analyze Value & Waste
7. Assess Opportunities
8. Develop a Future State Value Stream Map
9. Develop an Implementation Plan

4. 4
3 enterprise value streams:
1. Raw Materials to Customer - Manufacturing
2. Concept to Launch - Engineering
3. Order to Cash - Administrative Functions
Value Stream Mapping
Supplier
PROCESS
Value Stream
Customer
PROCESSPROCESS
A B
C

5. 5
A Value Stream is the set of all actions (both value
added and non value added)
required to bring a specific product
or service from raw material
through to the customer.
“Whenever there is a product (or service) for a customer,
there is a value stream. The challenge lies in seeing it.”
Value Stream Mapping

6. 6
Why Value Stream Mapping?
 Ties together lean concepts and techniques
 To set strategy before diving into tactics
 Visualize the process at multiple levels
 Enables us to see the flow and sources of waste
 Provides a common language for analyzing processes
 Provides a blueprint for creating flow and implementing Lean
concepts and techniques
throughout the entire value stream

7. 7
 Using the mapping process solely as a work design exercise
 Using the map to make tactical improvements
 Creating value stream maps during a kaizen event
 Creating maps but taking no action
 Mapping with an inappropriate team – or no team at all
 Creating maps with no metrics…
Common Failings with Value Stream Mapping

8. 8
VSM Toolbox:
VSM Charter

9. 9
VSM Toolbox:
Future State Implementation Plan

10. 10
VSM Toolbox
Production VSM: Example Excel generated VSM

11. 11
VSM Toolbox:
VSM Template

12. 12
• Creates an end-to-end view of the system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier/
Customer
Production
Control
Customer
Work & Information Flow
Information flow
Value stream mapping provides an overview of the
end-to-end business process

13. 13
Value Stream Mapping Roadmaps
Develop
Implementation
Plan
Future
State
Design Establish
Current State
Baseline
Select
Product
Family
 Define and scope
problem
 Select product family
 Determine VSM objective
and benefits
 Map current state value
stream
 Collect data
 Quantify current state
value stream
performance
 Analyze and identify
improvement
opportunities
 Develop future state
value stream map
 Prioritize improvement
projects
 Develop implementation
plan
 Seek management
approval
 Implement the plan
and monitor
progress
1
2
3
4

14. 14
• Phase 1 – Document and analyze the current state
 Go to the Gemba!
• Phase 2 – Design the future state (3-6 month out)
• Phase 3 – Create the implementation plan!
VSM: Three Key Activities & Deliverables

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Value Stream Walk - Three Actual Rules
 “Go to the Gemba” - Actual place where
the process is performed.
 Talk to the Actual people involved in the
process and get the real facts.
 Observe and chart the Actual process.
 Reality is invariably different from perception;
Few processes work the way we think they do.
 The purpose of value stream mapping is to
identify waste, not to develop the perfect
process map.
Understand the process through facts and data!
 GO WALK IT!

16. 16
 Collect current state information while walking the actual material flows
YOURSELF
 Walk the whole process first, then revisit and gather information at each
process
 Begin at the shipping end and work ‘upstream’
 When possible, establish original data:
 get a detailed understanding, do your own timing
 Historical data and what people tell you is normal is often wrong
 Draw in pencil a sketch as you carry out the mapping, and clean up later
Current State Mapping Tips

17. 17
Consider both the material and information flow
 Materials flow – presents the movement of material through
the factory
 Information flow – how does each process know what to produce
and in which sequence
PRODUCTION FLOW
material
information
Like two sides of the coin!

18. 18
Key Metrics: Time
 Cycle Time (CT)
 The time it takes to actually perform the work, if one is able to work on
it uninterrupted
 Includes task-specific doing, talking and thinking
 Also called as “touch time”, work time.
 Lead Time (LT)
 The elapsed time from the time work is made available until it is
completed and passed on to the next person or department in the
chain
 Also called as throughput time, turnaround time, elapsed time
 Includes Cycle Time, not merely waiting time.

19. 19
3 Types of Work-in-Process (WIP)
Process 1 Process 3Process 2
WIP WIP
WIP
Waiting
to be
processed
Currently in
process
Completed,
but not yet
passed on
Process 2’s WIP

20. 20
• From this figure it is
visible why the flow is
bad in the current
production. The bad
flow also causes
inventory between all
processes.
• The takt time is 532
sec. based on 2 shifts.
It is also clear that 2
shifts is not enough
on the machining
process.
20
40
60
80
100
120
Machining
84sec.
Drilling
26sec.
Assembly
64sec.
P.
11
30%
50%
20%
85%
30%
Welding
36sec.
Bottleneck
Sec.
Takt time (2 shifts) = 108 sec.
= MUDA
• Calculation of takt
time:
 The daily demand:
500 pcs.
 The line operates 2
shifts.
 Takt time =
(2 x 7.5 x 3600)* /
500 pcs. = 108 sec.
• For every 108
seconds there must
be a new product
ready for shipping
Current State – Leveling of Cycle Times
* 2 shifts x 7.5 hours per shift x 3600 seconds per hour
= Value added

21. 21
Inventory
Process 1
Production Lead Time = 35 Days
Value added time (VA) = 41 Sec.
12 Days
15 Sec
20 Days
17 Sec
2 Days
9 Sec
1 Day
Value adding
activities
Material flow
Material Flow
Timeline. Value added and non-value added activities
Non-value adding
activities
Process 2 Process n

22. 22
Suppliers
Receiving Turret
1/0/1
Lasers
4/0/2
Rabbet Cell
Production
Planning
SU=1.28 mins
I
I
I
Robotic CT= 1.42 mins
Manual CT = 15.7 mins
Auto CT = 1.43 minsCT = 3.54 mins
Turret CT = 1.8 mins
AP CT = .5 mins
BP CT = 1.17 mins CT = .5 mins
Assy/PO CT=3 mins
Paint CT = 90 mins
2.7 days
Daily Schedule
Robotic Welder
Manual Welder
Auto Welder
Customers
4/0/1
9/0/4
2/2/2
1/1/1
SU=8.45 mins
SU=2 mins
SU=.58 mins
SU=1.5 mins
I
Paint Line
Assy/Packout
14/0/9
10/0/6
SU=0 mins
SU=5.15 mins
I
ShippingOrders
Forecast
Press Brake
Auto Press
Fabrication
1/0/1
1/0/1
SU=5 mins
SU=45 mins
150 pcs.
I
54 pcs.
716 pcs.
148 pcs.
4 coils
I 811 pcs.
0 pcs.
12.7 days
.08 days 1.5 days
SU=1.1 mins
LT = 17.57 days
PT = 114.54 mins
PT to LT = 0.68%
186 pcs.
200 pcs.
.57 days
Work
Cells
CDO
Schedule
WIP
Reduction
Review
Staffing
Increase
PT to LT
Current State Value Stream Map
Manufacturing Process

23. 23
Transforming from Current State to Future State
Improvement
Maintenance
S
DC
A
P
DC
A
Maintenance
S
DC
A
P
DC
A
Improvement
Current State
Future State
Next Future State

24. 24
Developing Future State
Future State Questions:
1. What is the TAKT time?
2. Will we build to shipping or to a supermarket?
3. Where can we use continuous flow?
4. Where do we have to use supermarket pull systems?
5. At what single point in the production chain do we trigger
production?
6. How do we level the production?
SUPPORTING IMPROVEMENTS
 What process improvement will be necessary?
(e.g. uptime, changeover, training, etc.)

25. 25
1. The team starts and ends the day together; begin and end
breaks together
2. No interruptions or distractions – 100% focus; phones on
silent; no email; no texting
3. Rank has no privilege
4. Seek the wisdom of ten instead of the knowledge of one
5. Use creativity before capital (in designing improvements)
To be continued…
VSM Improvement Activities:
Rules of Engagement (1)

26. 26
Define tasks (1)
 To get an overview of the tasks, Kaizen events are added to
the “Future State” before the tasks are defined.
 Kaizen events are drawn as “stars” or “bursts”.
 Kaizen events aim to improve workplace organization (5S),
increase uptime (OEE), reduce changeover times (SMED),
implement Kanban, arrange the cell, cross-training, work
sharing, etc.
 When mapping the value stream, Kaizen is used to define the
overall tasks to achieve the future value stream.

27. 27
PACE Prioritization Matrix
EaseofImplementation
Difficult
Low
Anticipated Benefit
High
Priority
Action
Eliminate
Easy
Consider
Projects/Kaizens

28. 28
Lesson summary
 Plan upfront: Select Product Family(ies), Communicate data
requirements, Assign specific tasks to everyone involved
 Go out on the floor!
 Measure times with a stopwatch, count inventory manually
 Regarding production planning, get the “official” story from the planner; get the
actual practice from the line supervisor or lead
 Record the VA and NVA times for every step
 Brainstorm problem areas before starting the Future State VSM
 The Future State VSM is the roadmap of a lean transformation
 Challenge all “monuments”
 Set high goals
stamping welding assembly

29. 29
Value Stream Mapping: Summary
Draw Customer
Box
Draw Customer
Requirements
Draw Management
Control Box
Draw Supplier
Box
Draw Transport
to Production
Draw
Production/
Service Flow
Draw
Communication
Arrows
Draw Push/
Pull Systems
Finalize
Measurements
Analyze
Value Stream
Map
Identify
Kaizen
Opportunities
Develop
Future
State Map

30. 30
Value Stream Management
 The map is just a picture of ideas!
 The fundamental change is in how we choose to
manage the value stream as an integrated system of
decisions and tasks.

31. 31
Value Stream Management
 Use your strategic plan as a guide
 Find the gaps in necessary performance
 Improve value streams to meet the performance
 Create new metrics to support new ways of thinking and
acting
 Understand true product family costs
 Manage operations by the value stream data
 Always have a future state!

32. 32
Critical sucess factors
 Management must understand, embrace, and lead the
organization into lean thinking.
 Value stream managers must be empowered and enabled
to manage implementations.
 Improvements must be planned in detail with the cross
functional Kaizen teams.
 Successes must be translated to the bottom line and/or
market share.

33. 33
Planning and implementing
Don’t Wait!
You need a plan!
• Tie it to your business objectives
• Make a VS Plan: What to do by when
• Establish an appropriate review frequency
• Conduct VS Reviews walking the flow

34. 34© Lean & Mean Consulting. All rights reserved. 2016