Value stream

Value stream refer to all the activities yourcompany must do to design, order, produce, and deliver its products or service to customers.

Including value added and non-value added activities

A value stream has threemajor parts

The flow of materials, from receipt fromsuppliers to delivery to customers.

The transformation of raw materials into finishparts

The flow of information that supports anddirects both the flow of materials and thetransformation of raw materials into finish goods

Value Stream Mapping

Follow a product’s production path frombeginning to end, and draw a visual

1.

representation of every process in thematerial & information flows.

Then draw (using icons) a “future state”of how value should flow.

map2.

Example

Why use it?Allow every one to fully understand and agree on howvalue is produced and where waste occursHighlight the connections among activities and

information and material flow that impact the lead time ofyour value streamHelping to know the entire value stream instead of a single functionImproving decision-making process of understanding current practice in the companyCreate a common language and understanding by using standard symbolsAllow you to separate value-added activities from non- value added activitiesTo easy identify and eliminate areas of waste

Value Stream MangersEach Value Stream needs a Value Stream Manager

For product ownership beyond functions

Assign responsibility for the future state mapping and implementing lean value streams to line managers with the capability to make changehappen acrossboundaries.

functional and departmental

Value Streamreports to the

Managers should make their progresstop manger on site.

How do I create a value stream map

Assemble paper, pencils, erasers, and a stopwatch Select a product or service to map

Identify customer to identify takt time

Start to map – starting with customer requirements

Add production flow, materials flow, information flow, and icons

Create a lead time chart at the bottom, showing value added or non-added production lead time

Review it as a group

A few mapping tips

Always collect current-state information while walking along the actual pathways of materials and information flows yourself.Begin with a quick walk along the entire door-to- door value streamBegin at the shipping end and work upstreamBring your stopwatch and do not rely on standard times or information that you do not personally obtainMap the whole value stream yourself (a team)Always draw by hand in pencil

Using the Value Stream Mapping Tool

product family

Understanding how the shop floorcurrently operates. The foundationfor the future state.

Designing a lean flow.

plan andimplementation

future state drawing

current statedrawing

Focus on one product familyDetermine Product Families via:similar downstream “assembly” steps and equipment

Family product

Process Steps & Equipment

saw mill lathe Grind Ass. test Pack

P

R

O

D

U

C

T

LH X X X X X

RH X X X X X

Top X X X X X

Back X X X

X-y X X X X

Levels of a Value Stream

begin here

Process level

Single plant(door to door)

Multiple plants

Across companies

The Current State Map Exercise

Current State for Acme Stamping co.

Current State Drawingproduct family

Understanding how the shopfloor currently operates.

Material and Information flows

Draw using icons

Start

Have

with the “door to door” flow

to walk the flow and get actual

● no standard times

● draw by hand, with pencilplan andimplementation Foundation for the Future State

future state drawing

current state drawing

VSM - Material Icons

One process box equalsan area of flow. All processes should be labeled. Also used for departments, such asProduction Control.

ManufacturingProcess

Used to show customers,suppliers, and outside manufacturing processes

Outside Sources

Used to recordinformation concerning a manufacturing process, department, customer, etc.

Data Box

C/T = 45 sec

C/O = 30 min

3 shifts

2% Scrap

OutsideSource

process

VSM - Material Icons

Count and timeshould be noted.

Inventory

Note frequency ofshipments.

TruckShipment

Material that is producedand moved forward before the next process needs it; usually based on a schedule.

Movement ofproduction material by PUSH

Movement offinished good tothe customer

How often

VSM - Information Icons

For example; productionManual InformationFlow schedule or shipping

scheduleElectronic InformationFlow

For example: via electronicdata interchange (EDI).

Describes an informationflow.

Information

Adjusting schedules based onchecking inventory levels.

“Go See” ProductionScheduling

Tool to intercept batches ofkanban and level the volumeand mix of them over aperiod of time.

Load Leveling

Indicates a device to limitquantity and ensure FIFO flow of material betweenprocesses. Maximum quantity should be noted.

max. X piecesFirst-in first-outflow

WeeklySchedule

Acme stamping Co. case study

The layout and process informationcompany

Icons references

A legal size paper for your exercise

Work along in the class

of Acme

This considered as in-class homework(individually) – due today

2

1 3

4 5

Step 1- customer icon

State StreetAssembly

18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Tray= 20 pieces

2 Shifts

Step 2: all processes, data boxes, andinventory triangles

I1600LH850 RH

I4600L

2400R

I2700

L

1440R

ICoils5

days

I I1200L

640R

1600LH850 RH

Shipping

STAGES

Assembly #2

1

C/T=40 seconds

C/O= None

Uptime 100%

2 Shifts

27,600 sec. avail.

Spot Welding #2

1

C/T=46 seconds

C/O= 10 minUptime 80%

2 Shifts

27,600 sec. avail.

Spot Welding

1

C/T=39 seconds

C/O= 10 min

Uptime 100%

2 Shifts

27,600 sec. avail.

Stamping

1

C/T=1 secondsC/O= 1 hr

Uptime 85%

EPE 2 wks

27,600 sec. avail.

Assembly #1

1

C/T=62 seconds

C/O= None

Uptime 100%2 Shifts

27,600 sec. avail.

State StreetAssembly

18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Tray= 20 pieces

2 Shifts

Step 3: show the material flow

Control

Steel Co.

I4600L2400R

I2700

L

1440R

ICoils5

days

I I1600LH

850 RH

I1600LH 1200L850 RH 640RC/T=39 seconds

27,600 sec. avail.

Shipping

STAGES

Assembly #2

1

C/T=40 seconds

C/O= None

Uptime 100%

2 Shifts

27,600 sec. avail.

Assembly #1

1

C/T=62 seconds

C/O= None

Uptime 100%

2 Shifts

27,600 sec. avail.

Spot Welding #2

1

C/T=46 seconds

C/O= 10 minUptime 80%

2 Shifts

27,600 sec. avail.

Spot Welding

1

C/T=39 seconds

C/O= 10 min

Uptime 100%

2 Shifts

27,600 sec. avail.

Stamping

1

C/T=1 seconds

C/O= 1 hr

Uptime 85%

EPE 2 wks

1xDaily

Tues + Thurs

500 ft coils

Michigan

Production

MRP

State StreetAssembly

18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Tray= 20 pieces

2 Shifts

Step 4: show the information flow

Steel Co.

Thurs

I4600L

2400R

I I2700

L

1440R

ICoils5

days

I I1600LH 1600LH

850 RH1200L

850 RH 640R

27,600 sec. avail.

C/T=39 seconds

Shipping

STAGES

Assembly #2

1

C/T=40 seconds

C/O= None

Uptime 100%

2 Shifts

27,600 sec. avail.

Assembly #1

1

C/T=62 seconds

C/O= None

Uptime 100%

2 Shifts

27,600 sec. avail.

Spot Welding #2

1

C/T=46 seconds

C/O= 10 minUptime 80%

2 Shifts

27,600 sec. avail.

Spot Welding

1

C/T=39 seconds

C/O= 10 min

Uptime 100%

2 Shifts

27,600 sec. avail.

Stamping

1

C/T=1 secondsC/O= 1 hr

Uptime 85%

EPE 2 wks

1xDaily

Tues +Daily ShipSchedule

Weekly Schedule

500 ft coils

Michigan

ProductionControl6-week Forecast

Weekly faxMRP

State StreetAssembly90/60/30 day

Forecasts18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Daily order

Tray= 20 pieces

2 Shifts

Step 5: Add lead and value-add time chartidentify lead time

Demand: LH: 12,000/month = daily 12000/20=600 RH: 6400/month = daily 6400/20 = 320

Station LH – inv. L.T. RH – inv. L.T. Max.

Stamping 4600 7.6 2400 7.5 7.6S. Weld #1 1100 1.8 600 1.9 1.9S. Weld #2 1600 2.7 650 2 2.7Ass. #1 1200 2 640 2 2Ass. #2 2700 4.5 1440 4.5 4.5Total lead time (add 5 days for Coils) 23.7

Step 5: Add lead and value-add time chart

Steel Co.

Thurs

I4600L

2400R

I2700

L

1440R

ICoils5

days

I I I1600LH 1600LH

850 RH1200L

850 RH 640R

27,600 sec. avail.

4.5 days5 days 7.6 days 1.9 days 2.7 days 2 days

39 s 62 s 40 s1 s 46 s

C/T=39 seconds

L.T. 23.7 days

P.T. 188 seconds

Shipping

STAGES

Assembly #2

1

C/T=40 seconds

C/O= None

Uptime 100%

2 Shifts

27,600 sec. avail.

Assembly #1

1

C/T=62 seconds

C/O= None

Uptime 100%

2 Shifts

27,600 sec. avail.

Spot Welding #2

1

C/T=46 seconds

C/O= 10 minUptime 80%

2 Shifts

27,600 sec. avail.

Spot Welding

1

C/T=39 seconds

C/O= 10 min

Uptime 100%

2 Shifts

27,600 sec. avail.

Stamping

1

C/T=1 secondsC/O= 1 hr

Uptime 85%

EPE 2 wks

1xDaily

Tues +Daily ShipSchedule

Weekly Schedule

500 ft coils

Michigan

ProductionControl

6-week Forecast

Weekly faxMRP

State StreetAssembly90/60/30 day

Forecasts18,400 pcs/mo

-12,000 “L”

-6,400 “R”

Daily order

Tray= 20 pieces

2 Shifts