Value Stream Mapping

1. LEAN
SIX SIGMA
1
SL S
VALUE STREAM MAPPING
(CURRENT & FUTURE STATE)
By: -
Hakeem–Ur–Rehman
MS-TQM, M.I.O.M(Operations Research)
Certified Six Sigma Black Belt (Singapore)
Lead Auditor ISO 9001 (UK)
IQTM–PU

2. A visual representation of every process in the
material and information flow of a product’s path
from customer to supplier.
What is a Value Stream Map?
Information Flow
Start with the Customer
Material Flow

3. What is VSM?
 According to Womack and Jones, the authors of the book Lean Thinking,
management must change their focus
o From:
o departments
o functions
o firms
o existing assets and technologies
o To:
o the value stream for specific products
A Value Stream is all the actions (both value added and non-
value added) required to bring a product to the customer.
It is:
 “Big Picture”, not individual processes
 Improving the whole, not just optimizing the parts

4. What is VSM?
 Value Added and Non Value Added
 Value Added Activity
 Transforms or shapes material or information or people
 And it’s done right the first time
 And the customer wants it
 Non-Value Added Activity – Necessary Waste
 No value is created, but cannot be eliminated based on current
technology, policy, or thinking
 Examples: project coordination, regulatory, company mandate, law
 Non-Value Added Activity - Pure Waste
 Consumes resources, but creates no value in the eyes of the
customer
 Examples: idle/wait time, inventory, rework, excess check offs
A Value Stream is all the actions (both value added and non-value added) required
to bring a product to the customer.

5.  Highlights Sources of
Waste
 Emphasizes Material
and Information Flow
Uses
 Link Individual
Processes to their
Customer(s) by
Continuous Flow or Pull
 Each Process Produces
only what its Customer
needs when they need it
Goals
Value Stream Mapping
TWO KINDS OF
KAIZEN

6. Three Types of Value Streams
Raw
Material
PROCESS
VALUE STREAM
Finished
Product
PROCESSPROCESS
Stamping Welding
Raw Material to Finished Product
Research Engineering Production
VALUE STREAM
Concept New Product
Concept to Launch
Product
Costing
Ordering Accounting Payables
VALUE STREAM
Product Sale
Order to Cash
Assembly
Cell

7. VALUE STREAM
Finished
Product
Raw
Material
VSM methods are also used to
map business processes
ASSEMBLY
Layout
Stamping Process Machining Process Assembly Process
Value Stream
Plant Value Stream
 Typically we examine the value stream in a
plant - from raw materials to finished goods.
Custo
-mer

8. Implementation without a plan will lead to disaster
A Value Stream
Map is a simple
visual tool that
helps you see the
flow, find the
waste and develop
an improved
process.
Eyes for Waste . . .
. . . Eyes for Flow
Why do it?
Clinic
Supplies
Syringes
X Ray
Film
Regional Supply
Manager
Clinic Manager
Clinic
Performance
Supply
Forecast
Frequent
Delivery
VP Performance
Clinic
Performance
Admitting Blood Draw X Ray Doctor Review
Billing
Stage for Blood
Log Time In
Record Value
Draw Blood
Record Value
Take X Ray
Review X Ray
Review Blood
Compile data from
patient records
Log Time OutPull patients to
Level Schedule
FIFO
Retake if Error Retake if Error
Verify Results Verify Results
Off-line
Operation
FIFO FIFO
Provide arrival windows for
patients to minimize waiting
(process time) (process time) (process time) (review time)
(minimal wait) (minimal wait) (minimal wait)
TPCT: 18 Minutes
Considerably reduced
through improved flow
LEGEND:
Electronic
Physical Flow
Feedback
2 Min
2.5 Min 2.5 Min 2 Min
3 Min 3 Min
3 Min
C/T 2 Minutes
C/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes
96% Improvement in TPCT

9. Understand how the work
site currently operates
Design a lean flow
Plan how to get there
Identify
Value Stream
Current State
Drawing
Action Plan
Future-State
Drawing
VALUE STREAM
MAPPING PROCESS
Identify improvement
opportunities
Identify and resolve gaps
Specific process /
product familyAdmitting
I
I
In
Hallway
LEGEND:
Electronic
Physical Flow
Feedback
Blood Draw X Ray Doctor Review Billing
Send to Waiting A
Log Time In
Record Value
Draw Blood
Record Value
Take X Ray
Review X Ray
Review Blood
Log Time Out
Record Values
Retest if Needed
Clinic
Supplies
Syringes
X Ray
Film
Regional Supply
Manager
Clinic Manager
Clinic
Performance
Supply
Requirements
I
In
Hallway
I
In
Hallway
Low Machine
Reliability
RetestsRandom
Arrivals
Delivery
Weekly
VP Performance
Clinic
Performance
Re Tests
Waiting Rm B
Capacity 4 Patients
Fill Room Next
Waiting RmA
Capacity 4 Patients
Fill Room First
Stop if “A” is Full
I
People
Waiting
Direct from A only if B empty
X Ray Blood Draw
Record Value
Take X Ray
Record Value
Draw Blood
Dual Path
Overflow to B
I
In
Hallway
(avg. wait in “A”)
(Transfer A to B)
(avg. wait in “B”)
(process time) (process time)
(avg. wait)
(process time)
(avg. wait)
(review time)
(avg. wait)
(process time)
TPCT: 423 Minutes
Unknown due to extreme
variability of data
C/T 10 Minutes
C/T 12 Minutes
C/T 12 Minutes C/T 13 Minutes
C/T 13 Minutes
NO
FIFO !
Lost
Patients
C/T 5 Minutes
C/T 18 Minutes
10 Min 5 Min 12 Min 13 Min
120 Min 40 Min 60 Min 50 Min 90 Min
5 Min 18 Min
7+ Hours
FTQ 50% FTQ 50%
FTQ 50% FTQ 50%
Clinic
Supplies
Syringes
X Ray
Film
Regional Supply
Manager
Clinic Manager
Clinic
Performance
Supply
Forecast
Frequent
Delivery
VP Performance
Clinic
Performance
Admitting Blood Draw X Ray Doctor Review
Billing
Stage for Blood
Log Time In
Record Value
Draw Blood
Record Value
Take X Ray
Review X Ray
Review Blood
Compile data from
patient records
Log Time OutPull patients to
Level Schedule
FIFO
Retake if Error Retake if Error
Verify Results Verify Results
Off-line
Operation
FIFO FIFO
Provide arrival windows for
patients to minimize waiting
(process time) (process time) (process time) (review time)
(minimal wait) (minimal wait) (minimal wait)
TPCT: 18 Minutes
Considerably reduced
through improved flow
LEGEND:
Electronic
Physical Flow
Feedback
2 Min
2.5 Min 2.5 Min 2 Min
3 Min 3 Min
3 Min
C/T 2 Minutes
C/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes
96% Improvement in TPCT
Action Item Responsible
Improve X Ray Equipment Reliability Sherry Wilson (Med-Tech)
Improve Blood Draw Process Vlad
Technician Training - Verify Test Results Dr. Choi
Implement Use of Patient Record as Data Log Joe Packer (Billing)
Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly)
Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL)
Develop Level Schedule for Patient Arrival Ed Case (Admitting)
- - - 2001 - - - - - - 2002 - - -
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

10. VSM Current State
SELECTING PRODUCT FAMILY
1 2 3 4 5 6
A
X X X X X
B
X X X X X X
C
X X X X X
D
X X X
E
X X X
F
X X X X
Products
Assembly and Equipment
A Product
Family
 Create a matrix if your mix is complicated

11. FORM A TEAM
Cross Functional
Team
Manufacturing
Financial
Purchasing
Leadership
Production
Control
EngineeringSensei
This step is critical to insure
successful implementation
VSM CURRENT STATE
 Select a cross-functional
team
 Select team members
familiar with the process
 Make sure the team is
trained to use VSM
 Designate a Champion
(typically a line manager)

12. Understand The Customer Demand & Map the Current Processes
VSM CURRENT STATE
1. Understand the customer Demand
2. Draw the current Process Map
1.What you THINK it is …
2. What it ACTUALLY is…
3. What it SHOULD be…

13. MATERIAL FLOW ICONS
Assembly
XYZ
Corporation
Data Box
C/O=30 min.
C/T=45 sec.
3 Shifts.
2% Scrap
I
300 pieces
1 day
Inventory Supermarket
Shipment
Push Finished Goods
to Customer
Physical
FIFO
First-In-First-Out
Process
Box
Supplier/
Customer
Mon
+ Wed
Pull
General Icons
Uptime
Changeover
Kaizen
Lightning Burst
Operator
Buffer or
Safety Stock
“Go See”
Production
Schedule

14. INFORMATION FLOW ICONS
Manual
Information Flow
Electronic
Information Flow
Weekly
Schedule
Schedule
OXOX
Load
Leveling Box
Sequenced-Pull
Ball
Withdrawal
Kanban
Production
Kanban
Signal
Kanban
Kanban
Post

15. TOTAL PRODUCT CYCLE TIME METRICS
VSM CURRENT STATE
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/
Scrap/Rework
C/O = 25 min
FINISHED GOODS
WELDING ASSEMBLYSTAMPING
Steel Supplier
PC&L
MRP
MSS
I
Steel
4 days
I
10,000 pcs
10 days
I
2,000 pcs
2 days
I
1,200 pcs
1.2 days
Mon &
Wed
1 time
daily
6 Week
Rolling
Forecast
Weekly
Order
Weekly
Order
6 Week
Rolling
Forecast
Weekly Build
Schedule
Daily Ship
Schedule
UPTIME
CHANGEOVER
SCRAP
Layout
4 days
5 days
10 days
1.5 days
2 days
.6 days
1.2 days
TPc/t = 24.3 daysProcessing Time
Inventory Time
CUSTOMER
Volume Info:
20,000 pcs/month
Std. pack = 300
pcs2 shifts
Takt = 54s
 Upper line is Production Lead Time measured in days or hours
– Production Lead Time = Inventory Quantity  Daily Customer Requirement
 Lower line is Process Time measured in minutes or seconds

16. VSM Current State: ACME EXERCISE

17. VSM Current State: ACME EXERCISE
CUSTOMER:
“State Street Assembly”
SELECTED PRODUCT FAMILY:
“Stamped–Steel Steering Brackets”
State Street
Assembly
State Street
Assembly

18. 1x Daily
Coils
5 days
I I
4600 L
2400 R
Stamping
1
S. Weld #1
1 1
S. Weld #2
Ass’y #1
1 1
Ass’y #2
Shipping
Staging
I
1100 L
600R
I
1600 L
850R
I
1200 L
640R
I
2700 L
1440R
C/O=1 hour
C/T=1 sec
Uptime
=85%
27,600
sec. avail.
C/T=39 sec
Uptime =
100%
27,600
sec. avail.
C/O=10 m
C/T=46 sec
Uptime =
80%
27,600
sec. avail.
C/O=10 m
C/T=62 sec
Uptime =
100%
27,600
sec. avail.
C/O = 0
C/T=40 sec
Uptime =
100%
27,600
sec. avail.
C/O = 0
Production Control
MRP
18400 pieces/month
-12000- L
- 6400- R
Tray = 20 pieces
2 shifts
Daily Ship
Schedule
Daily
Order
90/60/30 day
forecasts
Weekly Schedule
6 week
forecast
Weekly
Fax
Michigan Steel
Company
State Street
Assembly
State Street
Assembly
500 ft coils
Tues. &
Thurs.
VSM Current State: ACME EXERCISE

19. 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?

20. 1x Daily
Coils
5 days
I I
4600 L
2400 R
Stamping
1
S. Weld #1
1 1
S. Weld #2
Ass’y #1
1 1
Ass’y #2
Shipping
Staging
I
1100 L
600R
I
1600 L
850R
I
1200 L
640R
I
2700 L
1440R
C/O=1 hour
C/T=1 sec
Uptime
=85%
27,600
sec. avail.
C/T=39 sec
Uptime =
100%
27,600
sec. avail.
C/O=10 m
C/T=46 sec
Uptime =
80%
27,600
sec. avail.
C/O=10 m
C/T=62 sec
Uptime =
100%
27,600
sec. avail.
C/O = 0
C/T=40 sec
Uptime =
100%
27,600
sec. avail.
C/O = 0
Production Control
MRP
18400 pieces/month
-12000- L
- 6400- R
Tray = 20 pieces
2 shifts
Daily Ship
Schedule
Daily
Order
90/60/30 day
forecasts
Weekly Schedule
6 week
forecast
Weekly
Fax
Michigan Steel
Company
State Street
Assembly
State Street
Assembly
500 ft coils
Tues. &
Thurs.
VSM Current State: ACME EXERCISE
5 days
1 sec
7.6
days
1.8
days
2.7
days
2
days
4.5
days
40 sec62 sec46 sec39 sec
PLT = 23.6 days
PT = 188 sec.

21. VSM: FUTURE STATE
How to Create the Future State
 Issue: You have mapped a current state, so what should your ideal or future state map look
like?
 Overproduction – eliminate overproduction, or attempt to level production.
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #1: Produce to your Takt time “Synchronizes pace of production to match
pace of sales”.
“Future State Map; Takt Time is noted in the data box”

22. VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #2: Develop Continuous flow wherever possible
 Produce one piece at a time
 Reduce batch sizes and implement material replenishment.
 Should you build to a finished goods Supermarket or
directly to shipping?
 Building directly to shipping is ideal.
 If the competitive lead time is less than your process
lead time, you will need a finished goods
supermarket.
 If customer demand rises and falls unpredictably
it might be better to use a finished goods
Supermarket.
 The cost of holding some finished goods may
well be less than the cost of extra capacity

23. VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #3:
 Use supermarkets to control production where continuous flow does not extend
upstream. “Where will you need to use supermarket pull systems?”
 Batching might be necessary
 Where changeover is necessary due to very fast or slow cycle times and multiple product
families.
 Long supply chain…One piece at a time is not realistic
 Some processes have too much lead time or too unreliable to couple directly to other processes
in a continuous flow.
 In these cases install a Supermarket based pull system
 Supermarkets are used when continuous flow is interrupted
Remember, flow is better. There is a cost associated with a supermarket

24. VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #4: Try to send the customer schedule to only one production process.
“At what single point will you schedule production? (PACEMAKER PROCESS)”
 How you control the production at this process; sets the pace for all of the
upstream processes.
 Any process after the pacemaker process must be continuous- flow ( no
Supermarkets or pulls downstream of the pacemaker process.
 Therefore, the pacemaker process is frequently the most downstream
continuous-flow process in the value stream.

25. VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #5: Distribute the production of different
products evenly overtime at pacemaker process. (Level
the production mix). “How will you level the production
mix at the pacemaker process?”
 Distribute the production of different products evenly over
time at the pacemaker process.
 Grouping products makes it difficult to serve customers who
need something different than the batch being produced at that
time.
 On-time deliveries suffer. A part that is due tomorrow might
not make it because it has to wait for the long batches to
complete.
 The icon for leveling is OXOX

26. VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #6: What increment of work will you
consistently release and take away at the pacemaker
process? (Level the Production Volume)
 Start by releasing small consistent amounts at the
pacemaker process, while simultaneously taking away
equal amounts of finished goods or “paced withdrawal”
 This consistent increment of work is called the PITCH
 Can be based on pack–out container quantity
 Establishes interval for monitoring status of production
 The key is to create a predictable flow which enables you
to act quickly to problems.
Example: If Takt time = 30 Seconds & Pack Size = 20 Pieces then Pitch = (30
Seconds X 20 Pieces = 600 seconds = 10 minutes)

27. VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #6: (Level the Production Volume …)
 A tool used to by some is the (heijunka box)
 A load leveling box with a column for Kanban slots for each PITCH
interval and a row of Kanban slots for each product type.
 The box indicates both the quantity produced and the time allocated
to make it (based on TAKT time)
Type
A
Type
B
Type
C
8 8.10 8.20 8.30 8.40 8.50
Kanban
card A
Kanban
card C
9.00 9.10
Kanban
card A
Kanban
card A
Kanban
card B
Kanban
card B
Kanban
card B
Kanban
card C
One column per pitch
Here pitch=10 min.
One row per
product type
Kanbans
responded
to from left
to right at
pitch
increments

28. VSM: FUTURE STATE
CHARACTERISTICS OF A LEAN VALUE STREAM
Guideline #6: (Level the Production Volume …)
Type
A
Type
B
Type
C
8 8.10 8.20 8.30 8.40 8.50
Kanban
card A
Kanban
card C
9.00 9.10
Kanban
card A
Kanban
card A
Kanban
card B
Kanban
card B
Kanban
card B
Kanban
card C
Customer
requirement
Shipping
4
1
3
2
Pacemaker
process
Drop Kanban
at process
Pick up one
finished
quantity
Move finished
parts to
supermarket
Pick up
next
kanban

29. VALUE STREAM MAPPING
FUTURE STATE
ACME EXERCISE
FIRST VIEW of the Future-State map:
Showing Takt Time, Weld/Assembly Cell, and the
Finished-Goods Supermarket

30. VALUE STREAM
Acme Co. Future State – 1st View
Stamping
Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts
Weld& Assy
L
R Shipping
Staging
1X
Daily
State St.
Assembly
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
2 Shifts
 Notice that on this Future-State Map the four welding and
assembly process boxes have been combined into one
process box to indicate the continuous flow.
 A small sketch of a cell inside the process box also indicates
the cellular manufacturing concept.

31. VALUE STREAM MAPPING
FUTURE STATE
ACME EXERCISE
SECOND VIEW of the Future-State map:
Showing Stamping and Raw Material Supermarkets

32. VALUE STREAM
Acme Co. Future State – 2nd View
 The stamping process needs to produce batches larger than 60 pieces.
 A trigger point is set up in the stamping supermarket which includes changeover,
replenishment delay and other stamping problems. In this case stamping will keep
1.5 days of parts in its supermarket
 A signal Kanban is sent to the stamping process whenever the number of bins
remaining drops to a trigger ( minimum ) level
Signal or Batch
kanban
WHAT ABOUT RAW MATERIAL?
 To build a plant level value stream the Future State must also show a third
supermarket at the receiving dock which holds coils of steel
 Acme can attach an internal withdrawal Kanban to each coil and send these
Kanbans to their own production control department whenever another coil is
used.
 Production control can order coils based on their actual usage instead of a best
guess determined by MRP
 The cards are then returned to the receiving dock as a signal for shipments that
are due.
 Milk runs for daily deliveries should be considered at this point

33. Stamping
Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts
Weld& Assy
L
R Shipping
Staging
1X
Daily
State St.
Assembly
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
2 Shifts
20
1.5 days
batch
bin
Coils
PRODUCTION
CONTROL
State St.
Assembly
6-WEEK
Forecast
Daily
Order
1X
Daily
coil
coil
(at the press)
VALUE STREAM
Acme Co. Future State – 2nd View

34. VALUE STREAM MAPPING
FUTURE STATE
ACME EXERCISE
THIRD VIEW of the Future-State map:
Showing Load Leveling, Changeovers, and Timeline

35.  The material handler pulls the Kanbans out of
the leveling box one-by-one at the PITCH
increment and moves trays of brackets from
the finished goods supermarket to the
staging area one-by- one according to the
withdrawal Kanban.
Production
Control
Daily Orders
bin
bin
bin
OXOX
WELD&ASSY
L
R
bin
Shipping
Staging
Load Leveling Box
VALUE STREAM
Acme Co. Future State – 3rdView

36. Stamping
Takt=60 sec.
C/T=56 sec.
C/O= 0
Uptime=100%l
2 shifts
Weld& Assy
L
R Shipping
Staging
1X
Daily
State St.
Assembly
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
2 Shifts
1.5 days
batch
bin
Coils
PRODUCTION
CONTROL
State St.
Assembly
6-WEEK
Forecast
Daily
Order
1X
Daily
coil
coil
(at the press)
EPE= 1 shift.
EPE <10 min..
change
over
Weld
change
over
Welder
uptime
1 sec.
1.5 days
1 day
168 sec
2 days
Production Lead-time= 4.5 days
Processing Time= 169sec
20
20
20
20
OXOX
Daily order
90/60/30 day
Forecasts
Daily
Order
VALUE STREAM
Acme Co. Future State – Complete View

37. Pacemaker Loop
Stamping
Loop
Supplier Loop
VALUE STREAM
Acme’s Value Stream Loops

38. REFERENCE
• Learning to See Parts IV, V
A Value Stream Mapping Workshop
Mike Rother & John Shook
Lean Enterprise Institute

39. QUESTIONS