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 4/13/2015 © 2009 RLM & Associates LLC 2 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. 4/13/2015 © 2009 RLM & Associates LLC 3 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 4/13/2015 © 2009 RLM & Associates LLC 4 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 4/13/2015 © 2009 RLM & Associates LLC 5 Improvement Value Stream Improvement & Process Improvement Value Stream MIXING Incoming Raw Materials 4/13/2015 BOTTLING Customer PACKAGING Outgoing Finished Product © 2009 RLM & Associates LLC 6 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. 4/13/2015 © 2009 RLM & Associates LLC 7 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 4/13/2015 © 2009 RLM & Associates LLC 8 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 9 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 4/13/2015 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 10 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 4/13/2015 © 2009 RLM & Associates LLC 11 Value Stream Types of Value Streams Process Level Begin Here Single Facility (door to door) Multiple Facilities Across Organizations 4/13/2015 © 2009 RLM & Associates LLC 12 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. 4/13/2015 © 2009 RLM & Associates LLC 13 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. 4/13/2015 © 2009 RLM & Associates LLC 14 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. 4/13/2015 © 2009 RLM & Associates LLC 15 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. 4/13/2015 © 2009 RLM & Associates LLC 16 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. 4/13/2015 © 2009 RLM & Associates LLC 17 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. 4/13/2015 © 2009 RLM & Associates LLC 18 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. 4/13/2015 © 2009 RLM & Associates LLC 19 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. 4/13/2015 © 2009 RLM & Associates LLC 20 Value Stream Mapping Tools 4/13/2015 © 2009 RLM & Associates LLC 21 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? 4/13/2015 © 2009 RLM & Associates LLC 22 VSM Tools Quality Filter Mapping Identify where quality problems occur in the supply chain Focuses on: Production defects Service defects Scrap defects 4/13/2015 © 2009 RLM & Associates LLC 23 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 4/13/2015 © 2009 RLM & Associates LLC 24 The Current State Map 4/13/2015 © 2009 RLM & Associates LLC 25 Sample VSM Map 4/13/2015 © 2009 RLM & Associates LLC 26 VSM Symbols Value Stream Mapping Symbols 4/13/2015 © 2009 RLM & Associates LLC 27 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 © 2009 RLM & Associates LLC 28 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 © 2009 RLM & Associates LLC 29 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 4/13/2015 © 2009 RLM & Associates LLC 30 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. 4/13/2015 © 2009 RLM & Associates LLC 31 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” 4/13/2015 © 2009 RLM & Associates LLC 32 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. 4/13/2015 © 2009 RLM & Associates LLC 33 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. 4/13/2015 © 2009 RLM & Associates LLC 34 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. 4/13/2015 © 2009 RLM & Associates LLC 35 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. 4/13/2015 © 2009 RLM & Associates LLC 36 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. 4/13/2015 © 2009 RLM & Associates LLC 37 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. 4/13/2015 © 2009 RLM & Associates LLC 38 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. 4/13/2015 © 2009 RLM & Associates LLC 39 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. 4/13/2015 © 2009 RLM & Associates LLC 40 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. 4/13/2015 © 2009 RLM & Associates LLC 41 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. 4/13/2015 © 2009 RLM & Associates LLC 42 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. 4/13/2015 © 2009 RLM & Associates LLC 43 Future State Value Stream 4/13/2015 © 2009 RLM & Associates LLC 44 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 4/13/2015 Can move equipment, combine, take out conveyors, make minor purchases etc. But, there is a Problem! © 2009 RLM & Associates LLC 45 Future State Future State Map 4/13/2015 © 2009 RLM & Associates LLC 46 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 4/13/2015 © 2009 RLM & Associates LLC 47 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 4/13/2015 © 2009 RLM & Associates LLC 48 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 4/13/2015 © 2009 RLM & Associates LLC 49 Efficiency Individual Efficiency vs. System Efficiency How fast should we produce? 4/13/2015 © 2009 RLM & Associates LLC 50 Finished Goods Build to Supermarket or to Shipping? To Supermarket To Shipping Customer Customer Assembly Assembly Shipping Shipping Supermarket 4/13/2015 © 2009 RLM & Associates LLC 51 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 4/13/2015 B © 2009 RLM & Associates LLC C 52 Problem Points Bottlenecks in the Flow Determine Exactly Where One-Piece Flow Ends Customer Stamping Welding Assembly How can we control production between flows? 4/13/2015 © 2009 RLM & Associates LLC 53 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 4/13/2015 © 2009 RLM & Associates LLC 54 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 4/13/2015 Customer © 2009 RLM & Associates LLC 55 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! 4/13/2015 Even Better: Every Part Every Ship Window Monday 75B 105A 120C © 2009 RLM & Associates LLC 75B 105A 120C 56 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 4/13/2015 © 2009 RLM & Associates LLC 57 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. 4/13/2015 © 2009 RLM & Associates LLC 58 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. 4/13/2015 © 2009 RLM & Associates LLC 59 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. 4/13/2015 © 2009 RLM & Associates LLC 60 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. 4/13/2015 © 2009 RLM & Associates LLC 61 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. 4/13/2015 © 2009 RLM & Associates LLC 62 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. 4/13/2015 © 2009 RLM & Associates LLC 63 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. 4/13/2015 © 2009 RLM & Associates LLC 64 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. 4/13/2015 © 2009 RLM & Associates LLC 65 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) 4/13/2015 © 2009 RLM & Associates LLC 66