Engineering
Management
MSE507
Lean Manufacturing
Learning to See Parts I, II, III
A Value Stream Mapping Workshop
Mike Rother & John Shook
Lean Enterprise Institute
Value Stream Mapping
Workshop Goals

To understand the complete value stream
 To introduce Value Stream Mapping (VSM)
 To draw a current state map
• Learn the mapping concepts and icons

To be able to design an improved value stream
• Develop the ability to “see the flow” of a value stream

To draw a future state map
• Learn the mapping concepts and icons
Value Stream Mapping
Topics
Topic
•
•
•
•
•
•
•
•
•
Slide No.
Overview
The Process (Steps 1-3)
The Process (Step 4 Case Study)
The Process (Step 5)
The Process (Step 6)
The Process (Step 6 Case Study)
The Process (Steps 7-9)
The Process (Step 10)
Conclusions
5
12
35
38
Engineering
Management
Value Stream Mapping
Overview
Overview
Why? … Learn to See
 See the big picture, not just individual processes
 See how the process currently operates
 See linkages between information and material flow
 See the waste and the source of waste
 Establish a common language for improvement
 Foundation for designing lean flow and the future state
Overview
What do you typically see?
 80 – 90% of total steps are waste from standpoint of end
customer
 99.9% of throughput time is wasted time
 Demand becomes more and more erratic as it moves
upstream, imposing major inventory, capacity, and
management costs at every level
 Quality becomes worse and worse as we move upstream,
imposing major costs downstream
 Most managers and many production associates expend the
majority of their efforts on hand-offs, work-arounds, and
logistical complexity
Overview
Objective
 Correct specification of value
 Elimination of wasteful steps
 “Flow where you can”
 “Pull where you can’t”
 Management toward perfection
Overview
Pursue Perfection
 Every step in each process is:
• Capable – right every time (6 Sigma)
• Available – always able to run (TPM)
• Adequate – with capacity to avoid bottlenecks (right-sized tools &
lean system design)
Overview
What is it?
 A visual representation of all the steps needed for:
• Concept to launch (design)
• Order to delivery (build)
• Delivery to recycle (sustain)

All steps:
• Value Added (VA)
• Non-value added (NVA)

Two flows:
• Orders traveling upstream from the customer
• Products traveling downstream to the customer
Overview
Who does it?
 Value Stream Manager
• Ideally, one person with lead responsibility for the entire value
stream reporting to the top person at the site
Representatives of every relevant function – operations,
purchasing, sales, finance, engineering, etc. (ideally)
 And you

When?
 Now
 Before any major improvement activity
 Constantly updated to the new “Future State”
Overview
Where?
 In the work area itself
How?
 Directly observe flow of information and physical goods
 Summarize these flows visually with icons
 Use pencil and paper
And most important…
 Envision future state
• No wasted steps
• Smooth flow
• Level pull
Engineering
Management
Value Stream Mapping
The Process
Getting Started










Select one value stream - a product family
Walk the physical flow of material – no data collection
Walk the flow again, collecting data
Draw the Current State Map
Identify opportunities to eliminate waste and create flow
Draw the Future State Map
Generate a Value Stream Plan
Start making the improvements
Conduct Value Stream Reviews
Repeat the cycle
Value Stream Step 1
Select a Value Stream

Select one value stream … shared definition of value




by customer or customer category
by product or product family
by plant
by service - production, spares, repair

A family is a group of items that pass through similar
processing steps and over common equipment.

Focus on the downstream processes not upstream steps.
Upstream processes may serve many product families in a
batch mode.
Value Stream Step 1
Create a Matrix
F E D C B A
Create a matrix if your mix is complicated
Products

Assembly and Equipment
1
2
3
4
5
6
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
A Product
Family
Create a Matrix
Complicated
Weight part by machine used.
Machine
Machine A
Machine B
Machine C
Machine D
Machine E
Machine F
Machine G
Machine H
Machine I
Machine J
Machine K
Machine L
Part Part 1
Part 2
Part 3
Part 4
Part 5
Part 6
Part 7
Part 8
Weighting
2
1
1
4
1
1
1
8
1
16
1
1
32
1
1
64
1
1
128
1
1
1
256
1
1
1
512
1024
2048
4096
Part Total
290
80
132
258
88
132
288
132
0103-02 Family Matrix.xls
Create a Matrix
Complicated
Sort by weighted part; Weight machine by part used.
Machine
Machine A
Machine B
Machine C
Machine D
Machine E
Machine F
Machine G
Machine H
Machine I
Machine J
Machine K
Machine L
blank
Part 1
Part 7
Part 4
Part 8
Part 6
Part 3
Part 5
Part Part 2
4096
2048
1024
512
256
128
64
32
Weighting
1
1
2
1
1
1
4
1
8
1
1
16
1
1
32
1
1
64
1
1
1
128
1
1
1
256
512
1024
2048
4096
290
288
258
132
132
132
88
80
blank
Machine
Total
blank
5120
896
64
96
6144
96
896
7168
0
0
0
0
blank
Create a Matrix
Complicated
Sort by weighted machine.
Part
Machine Weighting
Machine C
8
Machine D
16
Machine F
64
Machine B
4
Machine G
128
Machine A
2
Machine E
32
Machine H
256
blank
blank
Part 2
Part 5
32
64
Part 3
128
Part 6
256
Part 8
512
Part 4
1024
Part 7
2048
1
1
1
1
1
1
1
1
1
1
1
1
80
88
132
132
132
1
258
1
1
288
Machine
Total
4096 blank
64
96
96
896
896
5120
1
6144
1
7168
1
290 blank
Part 1
Value Stream Step 1
Levels of a Value Stream

You can value stream map at
different levels
 Across companies is too
complicated to start with

Start mapping door-to-door
within your own facility:
• This is under your control
• It is easier to make
improvements immediately

Expand outward to broaden the
value stream later
Process Level
Single Plant
(Door-to-door)
Multiple Plants
Across Companies
Value Stream Step 2
Walk the Flow

Let the workers know what you are doing.

Walk the flow first (no data collection). Walk it yourself.

Begin at shipping and work upstream. This begins with the
processes that are linked closer to the customer. If it is too
confusing, start at the beginning and go downstream.

See how the material moves.

See the piles of material and WIP.

See how people work.

Identify the major process steps
Value Stream Step 3
Walk the Flow Again

Walk the flow again, this time collecting data.

Begin at shipping and work upstream.

Obtain the data yourself, do not rely on computer printouts.
 Use pencil and paper.

Ask questions and listen.

Collect data relevant to the definition of value.
Value Stream Step 3
Walk the Flow Again-Typical Data Collected
Customer Need
 Demand … number of units per day the customer wants
 Available work time … Scheduled work time minus breaks,
meetings and clean up time
Inventory
 WIP … Number of units waiting to be worked on or waiting to be
moved.
 Finished Goods … Number of units in stores or waiting to be
shipped.
Value Stream Step 3
Walk the Flow Again-Typical Data Collected
Each Process Step
 Cycle time – CT … The time between one part coming off the
process and the next part coming off.
 Yield … First Time Yield or scrap%
 Number of people … Required to operate the process.
 Uptime … The percentage of time the equipment is available to
run, when it is needed to be run
 Batch Size … typical lot size or minimum
 Change Over Time – Co … The time from the last good piece
of one batch to the first good piece of the next batch
 EPE … Every part every __. How often do you changeover to
produce this part?
Value Stream Step 3
Walk the Flow Again-Calculated Data

Takt Time – TT … How often does the customer need another
unit.
(Available work time per day)/(demand per day)

Inventory … measured in days.
(Number of units)/(demand per day)
Overall Flow
 Process Lead Time … The time for a unit to make it all the way
through the process
(Sum of Inventory Days) + (Sum of Cycle Times)

Processing Time … The time spent actually performing work on
the unit
(Sum of Cycle Times)
Value Stream Step 3
Draw the Current State Map

Drawing the future state map begins with the current
production situation.

Symbols and icons assure a consistent language.

Draw the rough draft as you walk the floor in step 3 collecting
data.

Use pencil and paper, not a computer.

Map the whole value stream, not just a segment.
Example
PROCESS BOX ICONS
DATA BOX ICONS
- C/T time
- C/O time
- Up time
- Scrap
Information Flow
Example
INVENTORY ICONS
WITH PUSH ARROWS
Material Flow
Quiz 1
Circle the best answer
1. Value Stream Mapping looks at
A.
B.
C.
D.
The people, materials, and information flow in a value stream
The material and information flow in a value stream
The detailed operation steps within a cell
The steps that people take in designing and producing a product
2. A product family is used to:
A. Create a listing of all your products and the steps that are taken to
produce them
B. Decide which customers are most important to your customers
C. Identify and group products into families based upon whether they
pass through similar steps in your downstream processes
D. Divide the mapping teams up into groups with individual mapping
assignments
Quiz 2
Circle the best answer
3. The best way to draw a value stream map is:
A. In pencil on the work floor, mapping the whole value stream
B. In your office with a good drawing software package
C. In pencil, by dividing the value stream into segments, and
assigning each segment to a different mapping team
D. In pencil, on the floor using standard times from engineering
4. Data boxes should contain data based on:
A.
B.
C.
D.
Engineering standards
The average measurement for a fiscal year
The measurement on an ideal day
What you observe as you draw the map
Mapping Tips

Use Colored Post-it notes paper for Mapping
(Easier to move Post-it notes than redraw)

Use roll of butcher paper so you can use a wall and see the
whole VSM
 Use string or ribbon to show material & information flows
 Decide whether to count all parts or sample
Mapping Tips

Best to map production lines between
Tuesday and Thursday
 Use someone from the line or process to walk you through it
first, post-it note process, come back and get
Real Data and Times
 If you plan on using the times to balance your process then do
not take shortcuts - you will be way off
(Embarrass yourself!!)

See with your hands. No “Armchair Lean!”
Mapping Tips

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

Add a title and date the map
ACME Stamping
Case Study
Material Flow Icons
Assembly
XYZ
Corporation
Process
Box
Supplier/
Customer
C/T=45 sec.
C/O=30 min.
3 Shifts.
2% Scrap
300 pieces
1 day
Data Box
Inventory
I
Mon
+ Wed
Shipment
Supermarket
FIFO
Push
Physical
Pull
Finished Goods
to Customer
First-In-First-Out
Information Flow Icons
Manual
Information Flow
Withdrawal
Kanban
Electronic
Information Flow
Production
Kanban
Weekly
Schedule
OXOX
Schedule
Load
Leveling Box
Signal
Kanban
Sequenced-Pull
Ball
Kanban
Post
General Icons
Uptime
Changeover
Operator
Kaizen
Lightning Burst
Buffer or
Safety Stock
“Go See”
Production
Schedule
Value Stream Map - Acme Exercise
(Use the Handout Data Sheet)
Use a pencil and small Post-it notes on 11” x 17” paper.
 Use the following colors

•
•
•
•

BLUE - Process
YELLOW - Inventory (tear in half)
PINK - Master schedule / Production control
GREEN - Supplier & Customer
Fill in a Post-it notes for each process/data and symbol
Remember “Always start with the Customer”
 Build the map, leave enough room between process boxes to
show inventory and enough space on the bottom to draw the
time line

First - Show the
Customer
Value Stream Step 4
Current State Map - 1st View
State St.
Assembly
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
2 Shifts
Second - add the
major Processes,
Data Boxes, and
Inventory Triangles
Value Stream Step 4
Current State Map - 2nd View
State St.
Assembly
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
2 Shifts
I
Stamping
Coils
5 days
I
S. Weld # 1
4600 L
2400 R
I
S. Weld # 2
1100L
600 R
I
Assy # 1
1600 L
850 R
CT=1sec.
Co=1 hr.
Uptime=85%
CT=39sec
.Co=10 min.
Uptime=100%
CT=46sec
.Co=10 min.
Uptime=80%
27,600 sec. avail
EPE=2 weeks
2 shifts
27,600 sec.avail
2 shifts
27,600 sec.avail
I
Assy # 2
1200 L
640R
CT=62sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
The data obtained is put in the data box
directly beneath the process box.
I
2700 L
1440 R
CT=40sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
Third - Show the
Material Flow
Value Stream Step 4
Current State Map - 3rd View
The supplier of raw material is
identified with a factory icon. In
this case they deliver 500 ft coils
Michigan
Steel Co.
State St.
Assembly
18,400 pcs/mo
-12,000 “L”
500 Ft. Coils
-6,400 “R”
Tray=20 pcs.
Tues &
Thurs.
2 Shifts
A truck icon and broad arrow indicate
movement of finished goods to the
customer and raw material to the site.
I
Stamping
I
4600 L
Coils
2400 R
5 days CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 1
I
S. Weld # 2
1100L
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
I
Assy # 1
1600 L
850 R
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
CT=62sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
I
1200 L
640R
1X
Daily
I
Assy # 2
2700 L
1440 R
CT=40sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
Value Stream Step 4
Current State Map

Information flow is drawn from right to left in the top half of
the map space.
• solid line arrows (paper transfer)
• arrow with a lightening bolt (electronic transfer)

Material movements that are pushed are represented by a
striped arrow
PUSH
• A process that produces regardless of the needs of the
downstream customer
• A guess as to what is needed (forecasts)
• Processes are allowed to set batch sizes and produce at a pace
that makes sense from its perspective not the customers.
Fourth - show
Information Flows
& Push Arrows
Value Stream Step 4
Current State Map – 4th View
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Michigan
Daily
Order
Steel Co.
State St.
Assembly
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
500 ft. Coils
WEEKLY SCHEDULE
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
Stamping
I
S. Weld # 1
4600 L
2400 R
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 2
I
I
1100R
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
Assy # 1
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
Assy # 2
I
1600 L
850 R CT=62sec
C
. o=0
Shipping
I
2700 L
1200 L
1440 R
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
Value Stream Step 4
Current State Map

The timeline summarizes the current condition of the value
stream

Production Lead-Time is the time it takes for a part to make its
way through the shop floor beginning with the raw material

Inventory Lead-time( shown with the inventory triangles)is
calculated as follows:
• Inventory quantity divided by the daily customer requirements.
Then add all process inventory lead-times.
Inventory Quantity
Daily Customer Requirement
Fifth (Final) - Show
Timeline
Value Stream Step 4
Current State Map – 5th View
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Michigan
State St.
Assembly
Daily
Order
Steel Co.
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
500 ft. Coils
WEEKLY SCHEDULE
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
I
4600 L
2400 R
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
5
days
S. Weld # 2
Assy # 1
I
I
1100R
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
1 7.6 days
sec
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
1.8 days
39 sec
Shipping
I
I
1600 L
850 R CT=62sec
Co=0
.
1200 L
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
2.7 days
46 sec
Assy # 2
2 days
62 sec
40 sec
2700 L
1440 R
(PLT)
4.5 days=23.6 days
(PT)
=188 sec
Fifth (Final) - Show
Timeline
Value Stream Step 4
Current State Map – Complete View
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Michigan
State St.
Assembly
Daily
Order
Steel Co.
18,400 pcs/mo
-12,000 “L”
-6,400 “R”
Tray=20 pcs.
500 ft. Coils
WEEKLY SCHEDULE
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
I
4600 L
2400 R
5
days
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 2
Assy # 1
I
I
1100R
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
1 7.6 days
sec
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
1.8 days
39 sec
Shipping
I
I
1600 L
850 R CT=62sec
Co=0
.
1200 L
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
2.7 days
46 sec
Assy # 2
2 days
62 sec
40 sec
2700 L
1440 R
(PLT)
4.5 days=23.6 days
(PT)
=188 sec
What’s wrong with Acme’s Value
Stream?




3 VA processes
Traditional mass
production
thinking about
economies of
scale
Batches pushed
through
=> waste
Look at VA time
compared to
time in plant
What Makes a Value Stream Lean?

Primarily the elimination of the number one waste…
OVERPRODUCTION!!!

Since this material is not yet needed it must be handled,
counted, stored.

Defects remain hidden in inventory queues

Overproduction results in shortages, because processes are
busy making the wrong things.
Value Stream Step 5
Eliminate Waste
1.
2.
3.
4.
5.
6.
7.
Overproduction
Waiting
Transportation
Unnecessary Processing
Inventory
Unnecessary Motion
Correction

Wasting A Person’s time or talent
Value Stream Step 5
Eliminate Waste
1. Overproduction - The primary waste
•
Making parts faster than is required
• Excess Inventory
• Time wasted, that could be used to make product that is
required
2. Waiting
•
An operator waiting for a long machine cycle to end
3. Transportation
•
Moving parts and products does not add value - it just adds cost
Value Stream Step 5
Eliminate Waste
4. Unnecessary Processing
•
Booking work into a store and then having to book it back out
again to use.
5. Inventory
•
•
•
There is a cost to the Company for carry inventory
There is always the risk it can become obsolete
It covers up other inefficiencies
e.g. Long set-up times
Value Stream Step 5
Eliminate Waste
6. Unnecessary Motion
•
Any motion of a person that does not add value
•
Operators / Setters looking for tooling
7. Correction
•

Reworking defective materials
Things to remember about waste
•
•
•
It is a symptom rather than a root cause of the problem
It points to problems within the system, at both process and value
stream levels
We need to find and address the causes of the waste
Value Stream Step 5
…And Create Flow
We are concerned with system efficiency rather than
the efficiency of an individual process
The question is, how fast should we produce?
Value Stream Step 5
Takt Time

We should match the rate of production to the rate of sales

Takt is the German word that means “beat” or “pace”
Takt Time
= Effective working time per day
Customer requirement per day
= 27,000 sec = 59 sec
460 pieces
• What is the effective working time per day?
• What do we do about machine down time?
• Why is cycling faster than takt expensive?
Value Stream Step 5
What is Flow?
Value Stream Step 5
Where Do We Use Flow?

Use continuous flow wherever possible

Where can’t we use continuous flow?




Long set-ups
Large distances
Downtime problems
Long lead-times
Value Stream Step 5
Alternatives to Continuous Flow

Kanban


Two-bin


Bins used to regulate production
Buffer stock



A signal that provides an instruction to regulate the sequence and
timing of production
Standard work
Curtain operation
Supermarket



Controlled quantity of inventory
Visual controls
Owned by the supplier
Value Stream Step 5
Supermarket Pull System
A SUPERMARKET PULL SYSTEM
PURPOSE: Controls production at supplying process without trying to schedule. Controls
production between flows
Production KANBAN
Withdrawal KANBAN
Supplying
Process
A
Customer
Process
PRODUCT
1) CUSTOMER
Supermarket
B
Value Stream Step 5
Supermarket Pull System

A pull system between processes…
• gives accurate build instructions to the upstream process
• without trying to predict downstream demand
• instead of forecasting the upstream process.

The pull by the downstream process determines
• what the upstream produces
• when
• and in what quantity.

Should be located near the supplying process

Are only used when continuous flow will not work.

There is a cost - inventory and material handling
Value Stream Step 5
Schedule Only One Point

If pull systems schedule upstream process we can try to
schedule only one point in the value stream - Pacemaker
 No supermarkets downstream of the schedule point
(except finished goods)
schedule
schedule
Quiz 3
Circle the best answer
5. Takt time is:
A. The customer demand rate
B. The rate at which the Sales departments plan to sell products to
customers based upon promotions
C. The fastest rate at which your individual operations can produce the
products
D. The average amount of product brought by your customers in a week
6. A supermarket is used where:
A. Processes are close together but have different cycle times
B. A customer requires specialised products from a finished goods
warehouse
C. Continuous flow is not possible due to distance, unreliability, or where
processes serve multiple product families
D. Pull can be implemented throughout the door-to-door value stream
Quiz 4
Circle the best answer
7. A pacemaker process:
A. Ensures that all processes downstream are controlled by supermarket pull
systems
B. Receives its products from supermarkets controlled by MRP systems
C. Is always a bottleneck, requiring constant supervision and staff adjustment
D. Responds to the external customer, and is usually the point at which
production is scheduled in the door-to-door value stream
Homework Assignment

Questions:
1. Describe the ways a business could use Value-stream
mapping. What will be the benefits?
2. You are visiting a production plant that has achieved
excellence and is a model site to bench mark in the industry.
 List what you are likely to see when visiting a lean plant?
 How will their current Value Stream might look like?

Read Leaning to See Parts IV and V
• Pages 57-101
Questions? Comments?