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VALUE STREAM MAPPING

LELY HERLINA

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Meanings of value within the leanframework (Koskela,2004)

Lean principle Inferred meaning ofvalue

1. Precisely specify value by specificproduct

1. Specify value = specify product

2. Identify value stream for eachproduct

2. Value stream = material andinformationflow

3. Make sure flow withoutinterruptions

3. Value = flow of materials withoutinter-ruptions

4. Let the customer pull value fromtheproducer.

4. Value = product

5. Pursue perfection 5. Value = product

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The first principle is to specify value in term ofproduct or product functions. The inferredmeaning of value points to specify value.

However, the value cannot be seen as itself,because it is attached with the product. Thus,value here is used to mean materials orproducts (Koskela, 2004).

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The second principle means designing theproduction system including productdevelopment, order fulfilment process with

goal to avoid the wasteful activities. Thus, theinferred meaning of value stream is thematerial and information flow including the keypartners in the supply chain (Koskela, 2004).

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The third principle highlights to make a flowwithout interruptions. It means to make a flowby eliminating the identified wasteful activities.

In the inferred meaning of the principle, thevalue is the flow. To achieve the waste freeflow helps one-piece flow rather thanproducing in batches (Koskela, 2004).

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The fourth principle accentuates thatcustomers pull the products instead ofproducer pushes the unwanted products. The

inferred value of the principle is that theproducts will be produced in just in timemanner that keep lead time under control(Koskela, 2004).

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The fifth principle stresses that there is a needfor continuous minimization of waste andmaximization of value, associated with JIT

and TQC (Total Quality Control) concepts(Koskela, 2004). Thus, the continuousimprovement should be performed in any leanorganization.

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Value Stream Mapping

Value Stream Mapping (VSM) is the process ofmapping the material and information flows forcomponents and sub-assemblies in a value chain

from raw material to the customer (Seth andGupta, 2005).Womack and Jones (1996) define VSM as a tool,which allows identify ways to get material and

information to flow without interruption, improveproductivity and competitiveness, and help peopleimplement system rather than isolated processimprovements

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VSM is a mapping paradigm used to describethe configuration of value streams and it mapsnot only material flows but also information

flows that signal and control these materialflows (Rother & Shook 1999).

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Objectives of Value StreamMapping

Provide the means to see the material,process and information flows.

Support the prioritization of continuousimprovement activities at the value stream

Provide the basis for facility layout

Eliminate Waste

AND.. .

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Map the Current State

The Process

Analyze the Current Stateand

Design the Future State

Introduction to Value Stream Mapping

Tues. &Fri.

PC & L

MRP MSS

#times/day

SteelSupplier

Steel

Pin#pcs#daysor shifts

I I I

I Stamping

Downtime

Changeover Time=4hr

2Shifts

TAKT=

2Presses

CycleTime=

ChangeOver

Welding

Layout

Scrap/Rework

Downtime= 20%

Uptime

#Operators

CycleTime=

Weekly BuildScheduleDaily ShipSchedule

Finished Goods

Overtime=

#Shifts=

Assembly

DT, ScrapRework

WIP=

CycleTime=

TAKT=

Changeover Time =

Layout

= 10%

Scrap

? days ? days ? days ? days? days ? days ? days

Inventory TimeProcessing Time

TPc/t = ?

TAKT=

WIP=

WIP= WIP=

Xpcs/monthStd. Pack Qty.

# shifts

Customer

Finished Goods Assembly

Layout

Welding

6 x/ Day

PC & L

Daily

Level Box

DA1 DA2

DA3

C/OTime =

CT=

TAKTTime

3 Shifts

DT=

Scrap =

Stamping

0 Overtime

2 Shifts

MaxSize

# Material Handlers

C/OTime =

CT=

TAKTTime

3 Shifts

DT=

Scrap / Rework =

C/OTime =

CT=

TAKTTime

3 Shifts

DT=

Scrap / Rework=

SmallLot # Operators

Customer

X pcs / month

Std Pack Qty# Shifts

WIP =

WIP = WIP =

Steel Supplier

Inv.TimeProc.Time

TPc/t = ?? days ? days ? days ? days

? days ? days ? days

Create an implementation plan andexecute it !

1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH

Establish TAKT & Flow in Tank Ass'y

Stamping Changeover Reduction

Reduce Stamping Buffer

Move Ass'y to Plant 10

Establish TAKT & Flow in Sender Ass'y

Pull To Sender Ass'y

Training

1999 2000 Activity

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13

Value Stream Mapping is a KeyProcess Diagnostic Tool

Quick Changeover

Standardized Work Batch Reduction Teams

Quality at Source

5S System Visual Layout

POUS

Cellular/FlowPull/Kanban TPM

ValueStreamMapping

Continuous Improvement

Kaizen

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Value Stream Mapping Step

Select product / servicefamily

Draw Current State map.Understanding how theprocess currently operates.

Identify opportunities forelimination of waste andareas of improvement tomeet customers needs.

Draw the Future State map.Design a lean flow usinglean techniques.

Develop action plan andimplement it.

Product / Servicefamily

Future state

drawing

drawingCurrent state

Plan and Implementation

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Define value stream (product family)

Identify value stream from the customer end

Product should pass through similar processesand common equipment

Door-to-door in scope (within plant walls)

List part numbers

Step 1: Select a Value Stream(Product Family)

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Current State

Select a cross-functional team

Select team memberswho are familiar withthe product

Ensure that teammembers are trained in theuse of VSM

Designate a champion (typically a line manager)

Step 2: Form a Team

Cross FunctionalTeam

Manufacturing

PC & LMaintenance

Leadership

ProductEngineering

IndustrialEngineeringSensei

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Current State Map

Plan for Every Part

Production Control(monthly/weekly forecasts)

Production history (day-to-day, month-to-monthvariation)

Sales (product changes, new business, etc.)

Customer

Demand/month:Part A =Part B =

Part C =# of shifts =

Step 3: Understand Customer Demand

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Customer

Demand/month:Part A =Part B =

Part C =# of shifts =

InventoryPart A =Part B =Part C =

# of shifts =

Shipping AssemblyWeldingStamping

Takt =C.T. =D.T. =FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP =

Takt =C.T. =

D.T. = 20%FTQ =C/O Time =Lot Size =

# of ShiftsWIP =

Takt =C.T. =D.T. =FTQ =

C/O Time = 4 hrs.Lot Size =

# of ShiftsWIP =

Current State Map

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Step 5: Map the Material Flow

Demand/month:Part A =Part B =Part C =

# of shifts =

InventoryPart A =Part B =Part C =

# of shifts =

Shipping AssemblyWeldingStamping

Takt =C.T. =D.T. =FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP =

Takt =C.T. =D.T. = 20%FTQ =C/O Time =Lot Size =

# of ShiftsWIP =

Takt =C.T. =D.T. =FTQ =

C/O Time = 4 hrs.Lot Size =# of ShiftsWIP =

Changeover Downtime FTQ

2 x/day

I

2 x/week

Supplier

1,200 pcsI

1,500 pcs

I800 pcs

I500 pcs

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Step 6: Map the Information Flow

AssemblyWelding

Takt =C.T. =

Takt =C.T. =

I I I1,500 pcs 800 pcs 500 pcs

PC & L

Weekly Build Schedule

Daily Ship Schedule

6 week rolling forecast

6 week rolling forecastWeekly Order

Weekly Order

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Step 7: Calculate Total Product Cycle Time

I800 pcs

.27 days .17 days.4 days .5 days1.0 days.18 days.02 days.008 days

TPc/t = 2.5 days

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Step 8: Detail Off-Line Activities

Show on the map using general icons

Detail on another sheet using either

reference VSM and/or process flow-charting

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Demand ChainSolutions

FIFO

Supermarket

SignalKanban

WithdrawalKanban

ProductionKanban Leveling

PhysicalPull

Kanbanarrivingin batches

KanbanPath KanbanPost

First-InFirst-OutFlow

MAX 50 PCS

ProcessKaizen

Current State Map Additional Mapping Icons

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Demand ChainSolutions

Original Condition Step7: Outline a Plan

Future Condition

Inj:Molding

2 Sender Assy

2

MSS

Assy Plants

7

Stamping10

Tank Assy

4

Perform to TAKT & Pitch.

Produce to Order

Load Leveling and Pull

Zone Maintenance & Fast Response

Labels

Level ABABA. . .

Stagingby Truck

cardby

card

(Pitch = 14 Units)

1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH

Establish TAKT & Flow in Tank Ass'y

Stamping Changeover Reduction

Reduce Stamping Buffer

Move Ass'y to Plant 10

Establish TAKT & Flow in Sender Ass'y

Pull To Sender Ass'y

Training

1999 2000 Activity

Inj:Molding

2

Sender Assy

2

MSS

Tank Assy Stamping

Fuel Pump Assy

I

I

I

I

I I

Assy Plants

2

12

10 4

Cycle-Time Driven. Batches.

ChangeOver

ChangeOver

No Flow

Attendance

No Flow

Uptime

Item Current Target

Total product cycle time

Parts / Person Hour

Delivery Performance

Inventory (days)

Overtime

Uptime

METRICS

Future State Map