Value
Stream
Mapping
PAUL KOBISHOP
 30 years of experience improving
processes
 Managed multi-plant manufacturing
organizations in aerospace and
medical device industries
 15 years experience educating clients
in effective Lean Enterprise
methodologies
 Experience as production floor
operator to directorships of
manufacturing division operations
 Manage $15mm NPD projects
 Lean projects with direct
improvements in operating costs on
average of 15% ($1.5m)
 MBA in Operations Management, and
Mechanical Engineering
Accelerating Supply Chain Performance
INTRODUCTION
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“Visually documenting the actions required to bring a
product through the main flows essential to every
product.”
Includes design, flow of information and flow of work
and materials
Look at the big picture, not just individual processes
“Learning To See”
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TYPES OF VALUE STREAMS
•“Whenever there is a product (or service) for a
customer, there is a value stream.
•The challenge lies in seeing it.”
• 3 enterprise value streams:
–Raw Materials to Customer - Manufacturing
–Concept to Launch - Engineering
–Order to Cash - Administrative Functions
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A VALUE STREAM
Information
Supplier
Production Control
Information
Inputs – Processes - Outputs
Customer
Materials
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CREATE THE CURRENT STATE
Value stream mapping begins with a door to door
product flow analysis. Physically walk through the
pathways of material and information. Follow up with
a detailed information gathering walk-through.
• Begin at the end
• Record fresh data. Bring a watch.
• Document the entire flow as you walk through. Don’t
try to remember later.
Material Flow
ASSY
TEST
PACK
SHIP
VSM Direction
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CURRENT STATE VSM
1.5 days
1 hr
2.5 days
62 days
1 hr
1.5 days
1.5 days
8 hrs
1 day
18 hrs
Total cycle time
= 403 Days
Processing
time = 30 Days
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Accelerating Supply Chain Performance
Accelerating Supply Chain Performance
Accelerating Supply Chain Performance
Accelerating Supply Chain Performance
AEROSPACE OFFICE VSM
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VALUE STREAM MAP SYMBOLS
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Accelerating Supply Chain Performance
WHAT INFORMATION IS NEEDED?
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Cycle Time
– Actual (C/TA)
– Theoretical (C/TT)
Changeover Time
– Planned (C/OP)
– Actual (C/OA)
Batch Size
Downtime
Yield
Shifts
# of Operators
DATA BOX
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PUSH ARROW
Represents a process connection in which the
UPSTREAM process does not care if the
DOWNSTREAM process is ready for its output.
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TRANSPORT
Represents the movement of a unit of value in between
processes.
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DELAY
Represents the time during which there is no work being
applied to the unit. A typical symptom of delay is “waiting
for…”
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ANALYZE THE CURRENT STATE
Use Tools of Kaizen To Reduce Variation & Create FLOW……..
5s / Visual Workplace Kanban Pull
TPM
Suppliers
Inputs – Processes - Outputs
FLOW
Customers
Quick Change Over
Leading Change
Team Skills Hoshin Planning
Standard Work
Poke-Yoke
Speed - Accuracy
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FUNCTIONAL COST-BASED
ORGANIZATION
WORK
I
WORK
I
WORK
TIME = WEEKS
THE VALUE STREAM
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7 TYPES OF NON-VALUE-ADDING ACTIVITIES
Overproduction
Motion
Rework
Inventory
Waiting
Transportation
Waste
of resources
beyond what is
needed to meet
customer
needs
Overprocessing
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SEVEN COMMON WASTES
Transportation
Inventory
Motion
Alternate Terminology
8 Wastes - Adding “People’s
Talents” as the eighth waste
Waiting
Over Processing
Over Production
Defects
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HOW CAN WASTE BE DETECTED?
Process Flow or Value Stream
Map
If you cannot find the waste, look for activities that actually
add value to the product; everything else is waste
ELIMINATION OF WASTE: WHAT CAN YOU DO?
1
Overproduction
2 Waiting
Transpor3
tation
4
Overprocessing
• Reduce changeover times
• Eliminate anticipatory production (producing in advance of customer demand)
• Balance workload of equipment/people (e.g., by debottlenecking equipment)
• Fill waiting time with other activities
• Optimize interfaces with internal/external suppliers
• Load once
• Provide standards
• Review current process design (e.g., value analysis)
5 Inventory
• Define necessary inventory levels
• Improve process reliability
6 Rework
• Ensure proper sequence of work
• Install mistake-proofing steps (quality control)
7 Motion
• Arrange tooling/equipment
• Design ergonomic workplace
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TAKT TIME
• Rhythm or Beat
• Time and Volume Relationship
• H (S) / D
• Sets maximum capacity of line
• By Process!
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ROUGH CUT RESOURCE PLANNING
Formula: STw / TAKT
– STw = Ʃ(ST x D)
ƩD
– First pass resources only!
– Calculate by process
– Uses for Simulation Modeling
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KANBAN SIZING FORMULA
Formula: (D x Q x R) / P
– D = Rough Cut Volumes for end item
– Q = Quantity Per at component level
– R = Replenishment Time Allowed
– P = Package Quantity (Default = 1)
– Mixed Model = Σ(D x Q)
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OUR OBJECTIVE IS TO REDUCE WASTE ….
….and increase the percentage of value added, in order to reduce
cost
Waste
Incidental
activity
Elements
of work
Valueadded
activity
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FLOW PROCESSING
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?
?
WORK
WORK
WORK
I
I
TIME = DAYS
THE VALUE STREAM
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IMPROVING WORK
NON VALUE ADDED
ERRORS
STREAMLINE
TIME = HOURS
THE VALUE STREAM
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We identified the delays
We identified the waste
We identified the sources of waste
What do we do about them?
Focus on WHAT needs improvement
and HOW it can be improved
• Once an idea is selected, display on
VSM
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LEAN TOOLS
6S
Set-Up Reduction
Value Stream
Improvement
Process (VSM)
Office Kaizens
The one common element: these tools help Flow Manufacturing
us eliminate waste from our processes.
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FUTURE STATE VSM
1 day
3 days
.5 days
3 days
.5 days
10 days
.5 days
2 days
Total cycle time
= 21 Days
Processing
time = 18 Days
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Accelerating Supply Chain Performance
Accelerating Supply Chain Performance
Accelerating Supply Chain Performance
Accelerating Supply Chain Performance
KAIZEN BURST
Represents an idea for improvement that can be
implemented using the Kaizen methodology.
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• Each Kaizen burst documented in the
Current State VSM must be associated
with a tool(s)
• Make initial estimations of resource
needs
• Make initial estimations of benefits
• Kaizen Event vs.. Quick & Easy Kaizen
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• Prepare a project plan for every event in
a simple tabular form
• Describe WHAT the opportunity is
• Identify HOW it is going to be addressed,
including the specific set of tools that
apply
• Specify WHO is going to be Project
Leader
• Indicate WHEN you expect this event to
take place
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LET’S JUMP IN
?
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Questions
Paul Kobishop
pkobishop@yahoo.com
Accelerating Supply Chain Performance