Lean Process and Value Stream Mapping
Value stream mapping is a lean manufacturing or lean enterprise technique used to document, analyze and improve
the flow of information or materials required to produce a product or service for a customer.
Value stream mapping is a paper and pencil tool that helps you to see and understand the flow of material and
information as a product or service makes its way through the value stream.
A value stream map (AKA end-to-end system map) takes into account not only the activity of the product, but the
management and information systems that support the basic process. This is especially helpful when working to
reduce cycle time, because you gain insight into the decision making flow in addition to the process flow. It is actually
a Lean tool. The basic idea is to first map your process, then above it map the information flow that enables the
process to occur.
Key Characteristics of Lean. ( What to look for )
A Waste Elimination, b Cost associated with Inventory carriage, c Bottlenecks, d Flow processes( Value stream
mapping )
7 Categories of Wastes
A Overproduction b Unnecessary Inventory c Transport d
Process e Rejected Product f Waiting g
Unnecessary Motion
Involvement in Value Stream Mapping
1 Define your current state of operation
2 Analyze it for waste 3 Define the Disconnects in the process 4 Create a
desired future state 5 Create a detailed plan of execution to effect change 6 Quantify the expected results 7
Engagement of people
Pre Event Data Collection.
1
Area Layout ( Several Cad Drawings to scale of all areas covered by analysis.
2
Process maps, flowcharts and any descriptive detail on the following processes
Customer contact activity, Engineering Activity, Sales Activity, Purchasing and Scheduling, Work order and
Work package development, Manufacturing process detail to include set up and change over data,
examples and copies of all paperwork.
3
Current Schedule
4
Current Forecast
5
Financial and Systems Data on Direct labour, Indirect labour, Overtime, Inventory dollar amounts of Raw
Materials, Work in Process and Finished Goods, Rework, Scrap, Lead Time through the various areas and
in total.
6
Organizational Data ( Current Organizational Organigram )
7
Materials. Details on the components used in the target process-parts purchased, Vendor lead times and
annual dollars spent.
8
PPQ ( Product, Process, Quantity ) matrix of all product in the target area. ( A listing of all the work centres,
machines, and process points in the system and the product that flows through each area, with monthly
quantities produced across a sample year.
A Weekly Agenda for Value Stream Mapping.
Day 1 Kickoff and Introductions, overview and objectives of the week, training and discussion on the
categories of waste and the concepts of value added and Non-value added activity., a walk about to observe
areas of waste, a discussion of process mapping, Group split into subject area teams.
Day 2 Continue mapping, expand the detail and finalize maps with all activity and materials queues; begin
the construction of space utilization, people utilization, and distance travelled analysis. The tasks are
categorized as Value added and Non-value added. All categories are added to create a visual percentage of
the process that are Value added and Non value added with the definition of the total lead time through the
process. At the end of the day, we brief the executive team on our results, findings and observations
Day 3 We evaluate the process, as it has been defined for undesirable effects ( UDEs ). We list the UDEs
and collectively prioritize them with regard tp their impact on the business. We then take the top four or five
UDE’s and perform Root Cause Analysis. The Root Causes are discussed and applied to the current-state
process. And preliminary solutions developed. We develop a rough plan of activity to implement these
preliminary solutions is discussed by the team. Again brief the executives.
Day 4 With Solutions applied to the current state, the team construct an improved future state. The future
state is evaluated for its impact on people, space, materials, flow, lead time, and costs and a preliminary
plan of implementation is developed. Projects required to implement the future state are defined, and cost to
implement resources required, timeline to complete and cost/ reduction / payback are projected. At the end
of the day, brief the executives.
Day 5. The implementation plan with project details is expanded and justifications are finalized. A summary
briefing is presented to the management team with approvals to proceed finalized.
Inventory Carrying Costs
Cost of Money ( Borrowing )
Opportunity Cost of the money you have tied up in inventory
Obsolescence
People, Space, Equipment to manage inventory, storage and Inventory Management
Heat, Lights, Facilities, Computers, Softwares and Hardwares, Forklifts, Conveyor Systems, Handtrucks etc.
Improvement Methodologies
A Quality Circles B Total Quality Management TQM
C DMAP
D Fish Bone Analysis
E Re-Engineering Process Design
Definitions
Value Added: Activity that adds value to the product; That makes it a complete product.
Non Value Added: Activity that does not add value to the product e.g Wastes
Inventory: Raw Materials, Work in Process and Finished Goods.