value stream mapping - a simple primer

Value Stream MappingA Simple Primer

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The Story of Manufacturing

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Beware the Jargonator!

WasteVariationStrain

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Value Stream Map

A Value Stream Map (VSM) is a hand-drawn map that helps people to see and understand process, material and information flow through a value stream, from start to finish.

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Current & Future States

Action Plan

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Elements of the VSMCustomer Demand

• What are the different product variants within this value stream?

• Who are the different customers? • What is the high, low and mean ordering

pattern? (Monthly/weekly/daily)• How often do we deliver to this customer family?• What is the takt time? • Decide on which product variants to include for rest of VSM

analysis

Customer

Part A = 1000/wk Part B = 500/wk Part C = 500/wk (400 pcs/day)

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Elements of the VSMManufacturing Process Flow

• Mark processes that add value (not departments, mark the difference)

• Identify metrics for each process (eg. Cycle time, value-added time, lead time, changeover losses, no. of machines, operators, shifts, batch sizes, scrap/rework, etc.)

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Elements of the VSMMaterial Flow

Tombstone

• Map the material flow along with frequencies• Mark each location of inventory, with quantity

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Elements of the VSMInformation Flow

Weekly Schedule

Production Control

MRPDaily Orders

30/60/90 Day Forecasts

Weekly Fax

6 Week Forecast

• What is the sequence of steps to process a customer order? • How are the shop orders and purchase orders generated and distributed?

• Who gets them?• How frequently?• How are exceptions handled?

• How do we react to customer emergencies?• How do we schedule production (i.e. How does the operator know what to build next)?• Each process block on the VSM must be backed by a process flow chart with as much detail

as required by the process• Processing times (for each step of information analysis or communication) and waiting

times (between information flow processes) must be measured

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Elements of the VSMInformation Process Flow Chart

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Elements of the VSMLead Time Bar

7 Days 10 Days

4 Days 4.5 Days 7 Days 2.3 Days 120 Secs 360 Secs 65-73 Secs 120 Secs 62-68

Secs Processing Time = 727-741 secs

Lead Time = 34.8 days

Path 2

Path 1

Path 1 =8+2+7+2.3+7 =26.3Path 2 =10+4+4.5+7+2.3+7=34.8

• Convert all inventory quantities into DOH and mark processing times on the step graph

• Add all DOH times to compute Non-value added time. Add all cycle times to compute Processing Time. The total of the two is lead time

How much longer are you

going to sit here?

Go draw me a VSM!