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Value Stream Mapping
6
4/13/2015
© 2009 RLM & Associates LLC
1
Getting Started
Value Stream Mapping
Purpose to:
 Understand the role value stream mapping plays
in continuous improvement
 Draw a current-state map
 Draw a future-state map
 Develop an implementation plan
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Getting Started
Definition of a Value Stream
1. All activities both value-added and nonvalue-added required to bring a product
from a raw material state to a finished
product in the hands of a customer.
2. Bring a customer requirement from order
to delivery or bring a design from concept
to launch.
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10 Key Elements of a Value Stream
Key Elements of a Value Stream
1. Specify what does and what does not create value
from the customer’s perspective
2. Identify all the steps necessary to order, design
and produce across the entire value stream to
highlight non-value-added wastes
3. Make those activities that create value flow
without interruption, detours, backflows waiting or
scrap
4. Only make what is pulled by the customer just-intime
5. Create a dynamic transparency of strategies, costs
and information in the value stream
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10 Key Elements of a Value Stream
Key Elements of a Value Stream
6. Address competitive advantage at the value
stream network level, moving past simple
buyer/supplier partnership rhetoric
7. Use value stream mapping for analysis, diagnosis
and implementation of change
8. Focus on key processes, not just separate
business departments
9. Address the entire supply chain over time rather
than on short-term improvement of individual
facilities
10.Strive for perfection by continually removing
successive layers of waste as they are uncovered
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Improvement
Value Stream Improvement
& Process Improvement
Value Stream
MIXING
Incoming Raw
Materials
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BOTTLING
Customer
PACKAGING
Outgoing Finished
Product
© 2009 RLM & Associates LLC
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Getting Started
Value Stream Mapping
1. Document a product’s
production path from incoming
raw materials to outgoing
finished product.
2. Draw a visual representation of
every process in the material &
information flows.
3. Then draw a “future state”
map of how the production
path can be optimized to
eliminate the greatest amount
of waste.
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© 2009 RLM & Associates LLC
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Mapping Tool
Using the Value Stream Mapping Tools
Product
Family
Current State
Drawing
Future State
Drawing
Understanding how production
currently operates. This is the
foundation for the future state.
Designing a LEAN flow.
Plan and
Implementation
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© 2009 RLM & Associates LLC
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Product Family
Focus on One Product Family
Determine Product Families via: Similar downstream
“assembly” steps and equipment.
Process Steps & Equipment
Products
Light
Raspberry
Vinaigrette
Light Ranch
Tuscan
House
Italian
Thousand
Island
Catalina
4/13/2015
Depalletize
Bottles
Spice
Weighing
Batch
Making
Fill
Packaging
Shipping
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
X
X
X
X
© 2009 RLM & Associates LLC
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Product Family
Focus on One Product Family
Determine Product Families via: Similar downstream
“assembly” steps and equipment.
Process Steps & Equipment
Spot
Weld
Products
LH Steering
Bracket
RH Steering
Bracket
Bumper
Brackets
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X
X
Flash
Remove
Paint
Manual
Assm.
Fixtures Electronic
Assm.
Test
X X X
X X X
X
Instrument
Panel Brace
Seat Rail
Robot
Weld
X
X
X
© 2009 RLM & Associates LLC
X
X
X
X
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Value Stream
Value Stream Managers
Each Value Stream Needs a Value Stream Manager
Process 1
Process 2
Process 3
Customer
For product ownership assign
responsibility for the future state
mapping and implementing LEAN value
streams to line managers with the
capability to make change happen across
functional and departmental boundaries.
The Value Stream Manager
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Value Stream
Types of Value Streams
Process
Level
Begin Here
Single Facility
(door to door)
Multiple Facilities
Across Organizations
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Quiz 1 Question #1
Session 1 Quiz
Multiple Choice, what’s the best answer?
1. Value stream mapping examines:
A. The people, material, and information flow in a value stream.
B. The material and information flows in a value stream.
C. The detailed operation steps within cells.
D. The steps that people take in designing and producing a
product.
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Quiz 1 Question #1
Session 1 Quiz
Multiple Choice, what’s the best answer?
1. Value stream mapping examines:
A. The people, material, and information flow in a value
stream.
B. The material and information flows in a value stream.
C. The detailed operation steps within cells.
D. The steps that people take in designing and producing a
product.
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Quiz 1 Question #2
Session 1 Quiz
Multiple Choice, what’s the best answer?
2. A product family matrix:
A. Creates a listing of all your products and the steps that are taken
to produce them.
B. Determines which products are most important to your
customers.
C. Identifies and groups products into families based on whether
they pass through similar steps in your downstream processes.
D. Divides the mapping teams up into groups with individual
mapping assignments.
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Quiz 1 Question #2
Session 1 Quiz
Multiple Choice, what’s the best answer?
2. A product family matrix:
A. Creates a listing of all your products and the steps that are taken
to produce them.
B. Determines which products are most important to your
customers.
C. Identifies and groups products into families based on
whether they pass through similar steps in your
downstream processes.
D. Divides the mapping teams up into groups with individual
mapping assignments.
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Quiz 1 Question #3
Session 1 Quiz
Multiple Choice, what’s the best answer?
3. A value stream manager:
A. Is a staff person vested with the authority to make change in the
value stream.
B. Is a lead hand with the responsibility for understanding a
product family’s value stream and improving it.
C. Is responsible for the day-to-day operation of the processes in
the value stream plant.
D. Is a line person reporting to the senior person on site, with the
lead responsibility for understanding a product family’s value
stream and improving it.
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Quiz 1 Question #3
Session 1 Quiz
Multiple Choice, what’s the best answer?
3. A value stream manager:
A. Is a staff person vested with the authority to make change in the
value stream.
B. Is a lead hand with the responsibility for understanding a
product family’s value stream and improving it.
C. Is responsible for the day-to-day operation of the
processes in the value stream plant.
D. Is a line person reporting to the senior person on site, with the
lead responsibility for understanding a product family’s value
stream and improving it.
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Quiz 1 Question #4
Session 1 Quiz
Multiple Choice, what’s the best answer?
4. The starting point for developing a value
stream map for a product family is:
A. Corporate wide.
B. Door-to-door in an individual facility.
C. Across multiple facilities.
D. At the process level.
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Quiz 1 Question #4
Session 1 Quiz
Multiple Choice, what’s the best answer?
4. The starting point for developing a value
stream map for a product family is:
A. Corporate wide.
B. Door-to-door in an individual facility.
C. Across multiple facilities.
D. At the process level.
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Value Stream Mapping Tools
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VSM Tools
Process Activity Mapping
 The study of the flow of processes
 The identification of wastes
 Can the process be rearranged into a more
efficient sequence
 A consideration of a better flow pattern involving
different flow layout or transportation routing
 A determination of whether each activity is really
necessary – what would happen if it was
removed?
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VSM Tools
Quality Filter Mapping
 Identify where quality problems occur in the
supply chain
 Focuses on:
 Production defects
 Service defects
 Scrap defects
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VSM Tools
Decision Point Analysis
 Where in the supply chain are the key decision
points
 Are these decision points aligned with the pushpull philosophy
 Develop what if scenarios to help develop future
state maps
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The Current State Map
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Sample VSM Map
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VSM Symbols
Value Stream Mapping Symbols
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Current State
Current State Drawing
Product
Family
Current State
Drawing
Determining how production
currently operates.
Material and Information flows
Draw using VSM icons
Start with the “door to door” flow
Future State
Drawing
Plan and
Implementation
4/13/2015
Walk the production lines and get actuals
No standard times
Draw by hand, with pencil
Foundation for the Future Site
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TAKT Time
TAKT Time
Match assembly pace to pace of orders.
Rate for assembling based on orders rate.
TAKT Time =
Work Time per Shift
Customer Requirement per Shift
27,600 sec
460 pieces
4/13/2015
= 60 seconds
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Stamping
“VSM Example” Data Set
VSM Inc. produces several aftermarket components for motorcycle repair and
replacement companies. This example investigates one Kawasaki product family:
progressive suspension forks in two types: model #VN1500 and VN1600. These
components are sent to two distributors (1) supplies requests East of the Mississippi
River (customer A) and (2) supplies requests West of the Mississippi River
(customer B). Customer A & B receive a 50/50 split of each component.
Customer A & B Requirements:
 1980 pieces per month = 1200 per month of Type “VN1500” and 780 per month
of Type “VN1600”
 Customer plant operates on two shifts
 Palletized returnable tray packaging with 5 forks in a tray and up to 10 trays on a
pallet. - The customer orders in multiples of trays.
 One daily shipment to each distribution center (Customer A & B) by truck.
Work Time:
 22 days in a month - Two shift operation in all production departments
 Eight (8) hours every shift, with overtime if necessary
 Two 15-minute breaks during each shift - Manual processes stop during breaks Unpaid lunch
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Stamping
“VSM Example” Data Set (continued)
Production Processes:
 VSM Inc. process for this product family involves milling a metal part followed by
welding, painting and subsequent assembly and inspection. The components are
then staged and shipped to Customers A & B on a daily basis.
 Switching between Type ”VN1500 and Type “VN1600” suspension forks requires a
60 minute changeover in milling and a 10-minute fixture change in welding and a
40 minute changeover in painting.
 Raw materials are supplied by Urbana Metal Co. - Deliveries are made to VSM
Inc. on Wednesday.
 One daily shipment to each customer distribution center by truck.
VSM Inc. Production Control Department:
 Receives East and West Distributor’s 60/30/10-day forecasts and enters into MRP
 Issues VSM Inc. 6-week forecast to Urbana Metal Co. via MRP
 Secures raw materials by weekly FAXed order to Urbana Metal Co.
 Receives daily order from East (Customer A) and West (Customer B) Distributor’s
 Generates MRP-based weekly departmental requirements based upon customer A
& B’s orders. - WIP inventory levels, F/G inventory levels, and scrap and downtime
 Issues weekly build schedule to Milling, Welding, Painting, & Assembly/Inspection
 Issues daily shipping schedule to Shipping Department.
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Stamping
“VSM Example” Data Set (continued)
Process Information: All processes occur in the following order - each
piece goes through all processes.
1) Milling (The mill is semi-automated and requires two operators)
 Cycle Time: 10 minutes (6 pieces per hour)
 Changeover time: 1 hour (good piece to good piece)
 Machine reliability: 90%
 Observed Inventory:
10 days raw materials before milling
160 pieces of type “VN1500” finished millings
100 pieces of Type “VN1600” finished millings
2) Welding Workstation (dedicated to this product family)
 Manual process with one operator
 Cycle time: 150 seconds
 Changeover time: 10 minutes (fixture change)
 Reliability: 100%
 Observed Inventory:
120 pieces of Type “VN1500”
75 pieces of Type “VN1600”
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Stamping
“VSM Example” Data Set (continued)
3) Painting Workstation
(dedicated to this product family)
 Manual process with one operator
 Cycle Time: 300 seconds
 Changeover time: 40 minutes
(fixture change)
 Reliability: 95%
 Observed Inventory:
100 pieces of Type “VN1500”
60 pieces of Type “VN1600”
4)Assembly & Inspection Workstation
(dedicated to this product family)
 Manual process with two operators
 Cycle time: 165 seconds
 Changeover time: none
 Reliability: 100%
 Observed Inventory:
240 pieces of Type “VN1500”
150 pieces of Type “VN1600”
5) Shipping Department
Removes parts from finished goods
warehouse and stages them for truck
shipment to customer A & B.
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Team Tips
Team Tips
Current State Mapping
1. Mapping the Current State:
 Review the basic processing steps and calculate assembly takt time.
 Everyone draw while on the shop floor. Be sure to draw both the
material & information flows.
 Always introduce yourself to operators and tell them what you are
doing: “Drawing the total factory flow as part of a training session.”
Show them your drawings.
 Select a scribe and combine drawings into one current state map.
 Calculate total lead time versus processing time.
 Draw the current state on one of the classroom flip charts.
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Team Tips
Team Tips
Current State Mapping
1. Presenting Your Current State Map:
 All team members go up front with presenter. State the product
family and takt.
 Present from your flip chart. (Less than 5 minutes.)
 Start with the customer and information flow into the facility.
 State the lead time vs. processing time.
 What are the problems you see? Where did you find push and
overproduction?
 Share any future state thoughts you have so far.
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Quiz 2 Question #1
Session 2 Quiz
Multiple Choice, what’s the best answer?
1. How should a Six Sigma project team draw a
value stream map?
A. In pencil on the work floor, mapping the entire value stream
yourself.
B. In the 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 work floor using standard times obtained from
engineering.
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Quiz 2 Question #1
Session 2 Quiz
Multiple Choice, what’s the best answer?
1. How should a Six Sigma project team draw a
value stream map?
A. In pencil on the work floor, mapping the entire value stream
yourself.
B. In the 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 work floor using standard times obtained from
engineering.
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Quiz 2 Question #2
Session 2 Quiz
Multiple Choice, what’s the best answer?
2. What is lead time?
A. The total time of those work elements that actually transform
the product in a way that the customer is willing to pay for.
B. The time it takes one piece to move all the way through a
process or a value stream from start to finish.
C. The time it takes an operator to go through all of his or her work
elements before repeating them.
D. The total time it takes inventory to be depleted from a finished
goods warehouse.
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Quiz 2 Question #2
Session 2 Quiz
Multiple Choice, what’s the best answer?
2. What is lead time?
A. The total time of those work elements that actually transform
the product in a way that the customer is willing to pay for.
B. The time it takes one piece to move all the way through a
process or a value stream from start to finish.
C. The time it takes an operator to go through all of his or her work
elements before repeating them.
D. The total time it takes inventory to be depleted from a finished
goods warehouse.
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Quiz 2 Question #3
Session 2 Quiz
Multiple Choice, what’s the best answer?
3. What information is entered into the data
boxes on a value stream map?
A. Engineered standards.
B. The average measurement for a fiscal year.
C. The measurement on an ideal day.
D. What you observe as you draw your map.
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Quiz 2 Question #3
Session 2 Quiz
Multiple Choice, what’s the best answer?
3. What information is entered into the data
boxes on a value stream map?
A. Engineered standards.
B. The average measurement for a fiscal year.
C. The measurement on an ideal day.
D. What you observe as you draw your map.
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Quiz 2 Question #4
Session 2 Quiz
Multiple Choice, what’s the best answer?
4. Where does the project team begin when
developing a value stream map?
A. Receiving.
B. Supplier.
C. Customer.
D. End of the line.
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Quiz 2 Question #4
Session 2 Quiz
Multiple Choice, what’s the best answer?
4. Where does the project team begin when
developing a value stream map?
A. Receiving.
B. Supplier.
C. Customer.
D. End of the line.
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Future State Value Stream
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Future State
Future State Drawing
Product
Family
Current State
Drawing
Designing a LEAN Flow
The power behind Value Stream Mapping is you
always need a future state!
Keep Updating. Use pencil!
Material and Information flows
Basis for your Work Plan – like a “blueprint”
Future State
Drawing
Begin by drawing on Current State
1st iteration assumes existing steps & equipment
Plan and
Implementation
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Can move equipment, combine, take out
conveyors, make minor purchases etc.
But, there is a Problem!
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Future State
Future State Map
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© 2009 RLM & Associates LLC
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Mass Production
Mass Production
Material
This is not
good!
Large Lots, Pushed Ahead, “Island” Mentality
Receiving
Warehouse
Storage
Welding
Storage
Stamping
Repair
Shipping
Warehouse
Assembly
Ship
Order
Value-Added time:
Time in Plant:
Minutes
Weeks
Cash
Goal: MORE - FASTER – and BETTER
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Waste
Waste
 The elements of production that add no value to the product
 Waste only adds cost and time
What you need to remember about Waste
 Waste is a symptom rather than a root cause
of the problem
 Waste points to problems within the system
(at both process and value stream levels)
 Address the causes of waste
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Overproduction
Overproduction
 Making more than is required by the next process
 Making earlier than is required by the next process
 Making faster than is required by the next process
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Efficiency
Individual Efficiency vs. System Efficiency
How fast should we produce?
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Finished Goods
Build to Supermarket or to Shipping?
To Supermarket
To Shipping
Customer
Customer
Assembly
Assembly
Shipping
Shipping
Supermarket
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Continuous Flow
Batch and Push Processing
Process A
10
minutes
Process C
Process B
10
minutes
10
minutes
Lead Time: 30++ minutes for total order
Continuous Flow
A
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B
© 2009 RLM & Associates LLC
C
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Problem Points
Bottlenecks in the Flow
Determine Exactly Where One-Piece Flow Ends
Customer
Stamping

Welding
Assembly
How can we control production between flows?
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Pull System
Supermarket Pull System
1)Customer process goes to supermarket - withdraws what it needs when it needs it.
2) Supplying process produces to replenish what was withdrawn.
“Production” KANBAN
“Withdrawal” KANBAN
Supplying
Process
Customer
Process
New Product
Withdrawn Product
Supermarket
Purpose: A way to control production between flows.
Controls production at supplying process without trying
to schedule
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Schedule
Minimize Supermarkets & Scheduling
Process 1
Process 3
Process 2
Process 4
FLOW
Supermarket
Process 1
Process 2
Process 3
FIFO
Process 4
Customer
FIFO
FLOW
Supermarket
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Customer
© 2009 RLM & Associates LLC
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Mixed Production
Mixed Production at the Pacemaker
No Good
(Assembly)
Assembly Schedule
Monday………..600 A
Tuesday……….150 A, 450 B
Wednesday….300 B, 300 C
Thursday……..600 C
Friday…………..300 C, 300 A
Better:
Every Part Every Day
Monday: 210 A, 150 B, 240 C
Important:
Near-zero changeover
time and frequent
changeovers at the
Pacemaker Process!
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Even Better:
Every Part Every Ship Window
Monday
75B
105A
120C
© 2009 RLM & Associates LLC
75B
105A
120C
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Paced Withdrawal
Paced Withdrawal at the Pacemaker
 What amount of work do you schedule and take away at the
pacemaker?
 The correct amount is equal to your management time frame.
(How often do you verify performance based on customer demand?)
 Are you constantly recalculating/updating your takt time?
1 Week
1 Day
1 Shift
1 Hour
12
?
6
1 Takt
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Quiz 3 Question #1
Session 3 Quiz
Multiple Choice, what’s the best answer?
1. What is Takt time?
A. The customer demand rate.
B. The rate at which the Sales departments plan to sell products
to customers based on promotions.
C. The fastest rate at which your individual operations can
produce the products.
D. The average amount of product bought by your customers in
a week.
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Quiz 3 Question #1
Session 3 Quiz
Multiple Choice, what’s the best answer?
1. What is Takt time?
A. The customer demand rate.
B. The rate at which the Sales departments plan to sell products
to customers based on promotions.
C. The fastest rate at which your individual operations can
produce the products.
D. The average amount of product bought by your customers in
a week.
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Quiz 3 Question #2
Session 3 Quiz
Multiple Choice, what’s the best answer?
2. Where are supermarkets used?
A. Processes are close together but have different cycle times.
B. A customer requires specialized 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.
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Quiz 3 Question #2
Session 3 Quiz
Multiple Choice, what’s the best answer?
2. Where are supermarkets used?
A. Processes are close together but have different cycle times.
B. A customer requires specialized 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.
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Quiz 3 Question #3
Session 3 Quiz
Multiple Choice, what’s the best answer?
3. The 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.
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Quiz 3 Question #3
Session 3 Quiz
Multiple Choice, what’s the best answer?
3. The 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-todoor value stream.
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Quiz 3 Question #4
Session 3 Quiz
Multiple Choice, what’s the best answer?
4. _____________ is usually the most
significant source of waste in a value
stream.
A. Customer change of mind.
B. Human error.
C. Out-of-spec parts.
D. Overproduction.
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Quiz 3 Question #4
Session 3 Quiz
Multiple Choice, what’s the best answer?
4. _____________ is usually the most
significant source of waste in a value
stream.
A. Customer change of mind.
B. Human error.
C. Out-of-spec parts.
D. Overproduction.
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Future State
Future State Questions

What is the takt time?
 Will we build to shipping or to a supermarket?
 Where can we use continuous flow?
 Where do we have to use supermarket pull systems?
 At what single point in the production chain do we trigger production?
 How do we level the production mix at the pacemaker process?
 What increment of work will we release and take away at the
pacemaker process? (leveling the volume)
SUPPORTING IMPROVEMENTS
What process improvements will be necessary? (e.g. uptime,
changeover, training)
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