Value Stream Mapping in a
Manufacturing Environment
February 1, 2002
Presented By:
Rhonda Salzman
LAI Research Assistant
Stakeholders
Manufacturing System Design
Corporate Level
[Seek approval]
[Interpret]
Business Unit
Product Strategy
Product Design
Make/Buy
Risk-sharing Partnerships
Manufacturing
DFMA, IPT
3-DCE
Concurrent Engineering
Marketing
Customer Needs
Technical Feasibility
Feasible performance guarantees
Requirements/Considerations/Constraints
- Miltenburg, - 3P, - 2D plots,
- MSDD - AMSDD - design Kaizen
Manufacturing System Design/Selection
- Analytical Tools,
- Simulation Tools
Evaluation Loop
Implement (pilot)
Fine Tune
Evaluate/Validate
Finalized Product Design
Modifications
Suppliers
• VSM
• Kaizen
• Trial & Error
• Kaikaku
Rate Production
Lean
Aerospace
Initiative
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Current Value Stream Map
web.mit.edu/lean
Lean
Aerospace
Initiative
MS Salzman - 4 © 2002 Massachusetts Institute of Technology
Future Value Stream Map
web.mit.edu/lean
Lean
Aerospace
Initiative
Research Motivation
Ø Many instances where VSM has been seen
to:
Ø Help to identify wasted movements and steps
Ø See flow of the product
Ø Reduce lead times considerably
Ø Save money!
But even with all these successes there are
plenty of failures…
WHY?
MS Salzman - 5 © 2002 Massachusetts Institute of Technology
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Lean
Aerospace
Initiative
Key Research Questions
Ø Is there an environment where VSM is
appropriate?
Ø How do you measure success of a VSM event?
Ø What are the limitations of VSM?
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Lean
Aerospace
Initiative
Is their an environment where
VSM is appropriate?
5 Environmental Characteristics that help to
determine the success of a VSM event:
Ability to Generalize
Product Complexity
System Capability
Type of Organization
Investment
MS Salzman - 7 © 2002 Massachusetts Institute of Technology
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5 PROPOSED
ENVIRONMENTAL CHARACTERISTICS
Lean
Aerospace
Initiative
SUCCESS
VSM
appropriate
MS Salzman - 8 © 2002 Massachusetts Institute of Technology
VSM not
appropriate
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Lean
Aerospace
Initiative
(1)
(1) Ability to Generalize
Ø The ability to pick a representative part
Ø Similar process steps as the majority of the
products that go through the system
Ø Information system, Product Flow, Cycle Times, Yields
Ø Obsolescence of the map due to product or
process changes.
IfIf the
the map
map does
does not
not represent
represent the
the problems
problems of
of
the
the area
area then
then itit will
will solve
solve the
the wrong
wrong problems.
problems.
MS Salzman - 9 © 2002 Massachusetts Institute of Technology
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Lean
Aerospace
Initiative
(2)
(2) Product Complexity
Ø Level of difficulty associated with
production of a part including serial and
parallel processing.
Product
Product complexity
complexity affects
affects the
the ability
ability to
to
differentiate
differentiate between
between VA
VA and
and NVA.
NVA.
MS Salzman - 10 © 2002 Massachusetts Institute of Technology
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Lean
Aerospace
Initiative
(3)
(3) System Process Capability
Ø Generalized technological ability to
repeatedly make something with minimal
intervention and minimal disruptions (scrap,
rework, shortages).
IfIf the
the steps
steps are
are unreliable,
unreliable, there
there will
will be
be no
no
ability
ability to
to use
use continuous
continuous flow.
flow.
MS Salzman - 11 © 2002 Massachusetts Institute of Technology
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Lean
Aerospace
Initiative
(4)(5)
(4) Type of Organization and
(5) Investment
Ø Type of organization - Level of innovativeness
(change) supported on the factory floor.
Ø Investment - Availability of money and labor
to make change.
Without
Without the
the availability
availability of
of money,
money, labor
labor and
and
leadership
leadership no
no implementation
implementation will
will occur.
occur.
MS Salzman - 12 © 2002 Massachusetts Institute of Technology
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ENVIRONMENTAL CHARACTERISTICS
VSM
appropriate
SUCCESS
Lean5
Aerospace
Initiative
MS Salzman - 13 © 2002 Massachusetts Institute of Technology
VSM not
appropriate
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Lean
Aerospace
Initiative
How do you measure success
of a VSM event?
Ø Types of success
Ø Skills & knowledge (problem solving/lean)
Ø Motivation for change
Ø Broadening perspective (of flow of the product)
Identification of solutions (and a way of
measuring them)
Attempt at changing the system (implementing
the solutions)
Achieving measured goal
MS Salzman - 14 © 2002 Massachusetts Institute of Technology
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ENVIRONMENTAL CHARACTERISTICS
VSM
appropriate
SUCCESS
Lean5
Aerospace
Initiative
MS Salzman - 15 © 2002 Massachusetts Institute of Technology
VSM not
appropriate
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Lean
Aerospace
Initiative
Link between environmental
characteristics and success
GENERALIZE
Current
Current
State
State
COMPLEXITY
CAPABILITY
Future
Future
State
State
ORGANIZATION
Implementation
Implementation
INVESTMENT
VISION
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Lean
Aerospace
Initiative
Thoughts?
Ø Questions?
Ø Comments?
Ø Thoughts?
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Lean
Aerospace
Initiative
Survey
Ø Verification of matrix is necessary
Ø Currently working on
Ø Case Study Visits and Conference calls
Ø Web survey
(Need Additional Surveys!)
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Lean
Aerospace
Initiative
Data Correlation Options
All factors are equal
Ø Corr. should be seen for every factor and total
1 Factor or group is more important
Ø Weighted average
Any one factor can make or break it
Ø Changes depending on the situation
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Lean
Aerospace
Initiative
Case Studies
5
Success
4
3
2
1
0
5
10
15
20
25
Total of 5 Categories
MS Salzman - 20 © 2002 Massachusetts Institute of Technology
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Lean
Aerospace
Initiative
Non weighted all data
5
Success
4
3
2
1
0
0
5
10
15
20
25
Total
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Lean
Aerospace
Initiative
Weighted Correlation
5
2
R = 0.2247
4.5
Success
4
3.5
3
2.5
2
1.5
1
Weighting 0
Generalize
1.179594
Complexity
1.016253
Capability
0.414322
Organization 2.400227
Investment
0
MS Salzman - 22 © 2002 Massachusetts Institute of Technology
5
10
15
20
25
Weighted Inputs (optimal)
web.mit.edu/lean
Lean
Aerospace
Initiative
Low Hanging Fruit
6
Success
5
4
3
2
1
0
0
MS Salzman - 23 © 2002 Massachusetts Institute of Technology
2
4
Capability
6
web.mit.edu/lean
Lean
Aerospace
Initiative
Conclusions
Ø 5 Proposed Environmental Characteristics
Ø Relationship between Characteristics and
Success
Ø Survey can be found at
Ø http://web.mit.edu/rsalzman/survey
Ø Recommendations welcome
MS Salzman - 24 © 2002 Massachusetts Institute of Technology
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