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Evaluation
An evaluation of the value stream of the VSM tool
mapping tool
Ibon Serrano Lasa
Industrial Management Department, Mondragon University, 39
Mondragon, Spain
Carlos Ochoa Laburu
Business Organization Department, Polytechnic University College,
University of the Basque Country, San Sebastián, Spain, and
Rodolfo de Castro Vila
Business Organization, Management and Product Design Department,
University of Girona, Girona, Spain
Abstract
Purpose – The value stream mapping (VSM) is a tool created by the lean production movement for
redesigning the productive systems. Since, it was theoretically developed, some cases have been
published where the mentioned tool has been used; however, there is a need to see how it is put into
practice, that is to analyze the level in which theory is able to adapt to real practice, the strengths,
weaknesses and the key aspects to be taken into account by the applicant teams to obtain the highest
performance of the VSM. This paper aims to discuss all of these aspects.
Design/methodology/approach – The methodology used is a case study of a company in which
the process of application of the VSM has been thoroughly analyzed. A team created to improve the
productive system of a manufacture for plastic casings for mobile phones has carried out this
application.
Findings – The research shows that the VSM is a valuable tool for redesigning the productive
systems according to the lean system. Nevertheless, there are some key points for the establishing
teams that have to take into account, as follows: the time and training resources spent, the use of
suitable information systems and a suitable management of the application phases.
Research limitations/implications – The conclusions of this research can be reinforced by the
monitoring of the application process in more company cases.
Practical implications – The conclusions of this research are useful for future practitioners, so that
they may bear in mind the different aspects of planning projects for redesigning productive systems
by using VSM. On the other hand, these conclusions can also be useful for the academic field in order
to enhance the theory of VSM.
Originality/value – The paper is a contribution based on practical references according to a
thoroughly monitoring of a successful case in establishing VSM.
Keywords Value analysis, Business process re-engineering, Team working, Manufacturing systems
Paper type Case study
Guidelines are needed for the definition of the future state map; lean thinking provides
them to assist users in how this map should be drawn (Rother and Shook, 1998;
Marchwinski and Shook, 2003). These guidelines are summarized below:
.
The production rate must be imposed by the product demand. Takt time is the
concept that reflects such a rate.
.
Establishment of continuous flow where possible (unique product transfer
batches).
.
Employment of pull systems between different work centres when continuous
flow is not possible.
.
Only one process, called the pacemaker process, should command the production
of the different parts. This process will set the pace for the entire value stream.
Properties Maier
Rother and Shook (1998) affirms that the main properties of this technique are nearly
completely in accordance with many of the utilities required for a manufacturing
redesigning tool:
.
The analysis of the initial situation is based on the acquisition and treatment of
numerical data and it uses a graphical interface where is easy to see the
relationship between material and information flows.
.
The systemic vision provided for each product family flow reflects
manufacturing system inefficiencies.
.
The provision of a common language for the team and the unification of lean
concepts and techniques in a unique body.
.
The possibility to be the starting point of the strategic plan for improvement.
But are there other tools or methods focused on redesigning and improvement of the
productive system in the VSM application context? A literature review shows that
existing tools in the area do not cover the same framework as VSM, neither the same
objectives nor the same level or degree of completion of manufacturing systems design.
Some of the most known tools and their characteristics are summarized below.
Process mapping (Paper et al., 2002) based on the flow diagram chart this is a
well-known tool to model any business system or subsystem (Hines and Rich, 1997).
The business process reengineering movement supported this technique for the
following two reasons: first it is based on the measurement and analysis of quantitative
data (Hammer, 1990); and lastly, various possible standardized languages make the tool
practical and useful (Baudin, 2002). However, it is too generic and not too much
adapted to manufacturing systems modelling (Oyarbide, 2003).
The Icam DEFinition Zero (IDEF0) method is a variant of process mapping. It has
been developed and oriented towards modelling manufacturing systems. This tool
makes a functional structured analysis to describe the activities of the manufacturing
system in a hierarchical way (Roboam, 1993). Nevertheless, it is a qualitative tool that
overlooks the quantitative data of the production system (Wu, 1996).
The Graphes à Résultants et Activités Inter relies (GRAI) method is related to the
development of the decision taking system and it is based on hierarchical production
planning (Dougmeints et al., 1983). In addition to not taking into account the material
and information flows, like the IDEF0 method, this is a qualitative tool (Wu, 1996).
The material and information flows’ modelling and simulation software is another
interesting way of redesigning manufacturing systems. In spite of its quantitative
character and correct focus, the software, education and the amount of time needed
could be an important reason for it not being so useful in any company (Oyarbide, 2003).
Therefore, it can be assured that as the theoretical characteristics show, the VSM Evaluation
has itself an application field and that this is different from other methods and tools of the VSM tool
used to improve productive systems. However, there is a need to evaluate how these
theoretical characteristics are adapted in real practice. This is the main objective of this
study.
Research methodology 43
In order to find the answers, the adopted research methodology was based on the case
study strategy (Eisenhardt, 1989). We considered this methodology because it was the
best way to have high validity with practitioners (the ultimate user of research) and
also fits well with the refinement theory objective. Voss et al. (2002) emphasizes it is
important that case research is conducted and published because it is not only good at
investigating questions of how and why, but it is also particularly suitable for
developing new theories and ideas and can also be used for theory testing and
refinement and it is an excellent means for the development of theory in operations
management (McCutcheon and Meredith, 1993). Many of the breakthrough concepts
and theories in operations management, from lean production to manufacturing
strategy, have been developed through field case research. Finally, case research
enriches not only theory, but also the researchers themselves (Voss et al., 2002).
So, following the guidelines provided by the case study methodology, the research
team exhaustively monitored the development of the VSM application process in Maier
to analyze how effective the technique was and to analyze the keys to its correct
application.
As a first step, a special team was created with specific figures to manage the VSM
process (Rother and Shook, 1998):
.
The value stream manager would be in charge of the product family with which
the VSM process would be carried out. The person who should report about the
development of the process to the general management of the firm.
.
The facilitator would be the person who knew the production process best. This
role would be responsible for providing the required data and information.
.
The coordinator would be the one to collect the required data and manage the
documentary files and act as secretary in the different meetings.
.
Finally, the lean specialist would be the one to assume by the principal
researcher. Its main function would be to guide the team in technical lean aspects
and to provide training about the tool. Nonetheless it should not interfere in the
team’s decisions as literature on case studies suggests (Yin, 1993).
The team selection was considered by special evaluation in order to assure every
member had the required capabilities to start the VSM process. After each team was
created, special additional educational training about lean manufacturing concepts and
VSM were imparted to its members in several special workshops. After that, the
aforementioned five major steps were carried out.
Each team member had a number of hours assigned to develop the first four stages.
These hours were defined on the basis of the modest literature written about this fact
that suggests a duration of a few days to complete the first four steps of the process
(Keyte, 2002; Womack, 2001). The number of hours assigned for each of the members
BPMJ was 24 hours for value stream manager, facilitator and lean specialist; and 68 hours for
14,1 the coordinator.
Foreseeing that the toughest step would be the collecting of production data, the
coordinator would be the person that would have more hours to develop his tasks. In
addition, three-months (12 weeks) of lead-time were established to work on the first
four stages of the process as a whole. The assigned time would be integrated into the
44 three-month period as the team considered correctly. Last of all, once the working plan
was defined, in six months the research team would evaluate how the plan was going.
As determined by the case research methodology, the whole process would be
monitored and controlled by the researchers, who would combine different ways to
collect the process data. As a matter of fact, the results and conclusions reached are
mainly derived from the exhaustive observation of each one of the application process
phases, as well as from the triangulation obtained by different semi structured
interviews obtained from the teams responsible.
Project development
The company team carried out the production system redesign project following the
five phases established by VSM.
It is worth highlighting that the final product sent to the customer is not the assembled
mobile phone (set of front, back and battery covers). The final product consists of each
of these parts separately. So, finally a decision was made to draw a map for the TSM-7
that included the three main components (front, back and battery cover), which
followed a process that was slightly different.
Current state mapping
Figure 1 shows the current state map prepared.
The most outstanding features of the current system are as follows.
Demand. The customer transmits some monthly purchasing forecasts in a totally
informal way without making any sort of commitment. This demand can vary
significantly from month-to-month. As regards to day-to-day demand, this is quite
uniform in terms of the total volume of parts, but not in terms of each reference. Orders
are placed on a daily basis and Maier does not know until the day before which
references and quantities it has to send from its finished product stock to the customer.
Current State map TSM7
Demand= 3500 u/day
3500 Front Q
Forecast Verbal forecast 3500 Back
COMPANY 70.000 u/mounth 3500 Battery
Orders
Telephony Unit
Plastic Planning t
Supplier Paint Inspection
Daily Planning
Automotive Unit CUSTOMER
Planning Daily
Fortnight Daily
Frequency
TAMPOGRAPHY
+ ASSEMBLY 1 shipment/day
INJECTION C/T=12”
(9 machines)
8000 units C/O=10’
C/T=10”
C/O=80’ Workers=3
Batch=22000 Cap. 5500 u/day Nºshift=3
Workers=4 FTT=97%
N°shift=3 OEE=82% INSPECTION
PAINTING Cap. 11000 u 2
FTT=97% Nºref=5
C/T=1.7” times/week C/T=10”
OEE=79%
N° ref=11 Batch=11000 C/O=5’
Front (35000) Workers=5 PAINT Batch=
Cap. 5500 u/day
Back (35000) 11000 N°shift=3 INSPECTION Workers=8 2500 x3 =
units FTT=81% 1800 units N°shift=2
Battery(35000) 7500units
EPE(TSM7)=6days OEE=47.1% OEE=90%
N° ref=250 N°ref=36
0 units Cap. 5500 u/day ASSEMBLY
C/T=14.4”
COMMON C/O=5’
Workers=2
FRONT EPE (TSM7) = 6 days N°shift=3
8500 units FTT=97%
BACK OEE=82%
N° ref=5
BATTERY DTD = 26 days
45
BPMJ Physical system. The nine plastic injection machines are used for different telephony
14,1 families and other types of small volume parts. Any of the nine machines can inject any
of the references.
The paint installation is not only shared with the automotive business unit, but
the scheduling of the installation also depends on that last unit. The tampoprinting,
assembly and final inspection installations are specifically dedicated to the different
46 parts of the TSM-7. It should also be highlighted that an operation with low-value
added like paintwork inspection is outsourced to an outside plant, which means a
significant delay in the lead time and a lack of continuity in the flow.
As there are shared resources, the distance between the different centres of
operation means that work has to be done on the basis of significant transfer batches,
which means that in-process stock is built up throughout the logistics process and the
flow is slowed down.
Information system. A brief analysis of the scheduling system shows how
complex it is. In addition to schedule almost all the points in the production system,
the fact that different people plan these points make the system much more
complicated. In addition to this, the painting operation for the mobile phones is
carried out using a painting installation that belongs to another business unit,
subordinating the planning of telephony to the freeing of painting capacity by the
automotive business unit.
As can be seen from the map (Figure 1), for a work content per part of quite a lot less
than 1 minute, the presence time in the system is around 26 days. The improvement
target approved by the team for the redesign was the reduction of the manufacturing
lead time from the original 26 to 20 days.
Orders
Telephony Unit
Planning
t
Plastic
Supplier
Automotive Unit CUSTOMER
Daily Planning
PULL
TAMPOGRAPHY
+ ASSEMBLY
Fortnight
Frequency C/T = 12”
SMED 1 shipment/day
C/O = 10’
Workers = 3 Max. 1.000 u
Nºshift = 3
INJECTION FTT = 97%
(2 machines) FO OEE = 90%
FIF
O
FI
C/T = 10” Nº ref = 5
OEE
C/O = 80’
Batch = INSPECTION
Workers = 0.5 PAINTING Max. 11.000 u C/T = 10”
2 machines N°shift = 3 AUTOMATE INBOUND
C/T = 1.7” C/O = 5’
FTT = 99% FIFO
Batch = 11,000 PAINT Batch =
OEE = 85% FIFO
Workers = 5 INSPECTION Max. 3500 x 3
N° ref = 3 Workers = 8
Front Nºshift = 3 N°shift = 2
2 days
Back FTT = 95% OEE = 90%
Battery OEE = 70% FIFO N° ref = 36
EPE = 2 days Nº ref = 250 ASSEMBLY
FIF C/T = 14.4”
O
C/O =
Workers = 2
FO
COMMON
FI
Carrier Nºshift = 3
FTT = 97%
FRONT OEE = 82% Max. 1.000 u
Max. Painting Nº ref = 5
Batch
BACK
DTD = 20days
BATTERY
47
BPMJ the aforementioned FIFO lines will be established downstream, as will the supermarket
14,1 pull systems upstream.
Levelling out production. In this case, the production mix will come from the
optimum programme for the bottleneck. The production volume will continue to be
daily. In principle, ideas like pitch or the heijunka panel do not fit in.
Improvement in efficiency. Short-term plans to improve efficiency have not been set
48 up, but it is clear that methods for reducing changeover times for both the injectors and
tampoprinting stations will be applied in the future. In the tampoprinting stations, a
plan focusing on overall equipment efficiency is also required.
Planning
Based on the analysis of the future state mapping, an improvement plan has been
deployed for the next few months focusing on the new design established in the future
state map and aimed at meeting the main target of reducing and establishing
manufacturing lead time at 22 days for the first six months of the implementation,
being able to reduce it to 20 days by the end of the year.
The improvement plans can be divided into three sections:
(1) development of a detailed design of a new plant layout;
(2) physical conditioning of the factory building; at first, this work will be given to
an engineering company; and
(3) start up of a continuous improvement dynamic, aimed above all at increasing
the efficiency of the different production equipment mentioned above.
Execution
The first review was carried out six months after the establishment of the plan
(Table II). In short, it can be seen that the target proposed of reducing the lead time to
22 days within six months has been met. The calculations concerning finalizing the
details of the design of the new environment have been completed, the outside work
has been brought to Maier and the initial contacts have been made with the
engineering firm. The main obstacle came from the temporary economic situation of
the company, which to a certain extent put a brake on the investments planned for the
new system.
Research results
Results are structured according to the matters explained as objectives of the study in
the section “Introduction”: firstly, the efficacy of the tool is analyzed; secondly, the time
and resources needed for the application are explained; thirdly, the key aspects
considered to obtain a higher efficiency in their use are described; and finally, the
points to reinforce the VSM to obtain a higher potential on its practical applications are
also described.
Conclusions
VSM has shown itself to be a suitable tool for redesigning production systems. This is
vouched for by the results obtained in the application project and the information
obtained from the exhaustive monitoring of the case.
As the main keys to ensuring the success of its application, the following aspects
should be mentioned:
.
Having a team ready with established roles in accordance with what the VSM
technique advises.
.
The need to involve management in decision making and showing the
importance of the project to the company.
.
Exhaustive monitoring of the stages of VSM. In this regard, it is important to set
aside time for the dedication required by the application. The time involved in
the TSM-7 project could serve as an initial reference.
.
The importance of information systems for obtaining, comparing and processing
data concerning the production flow. This resource is of great value for two main
reasons: on the one hand, it speeds up the data acquisition process for drawing
up the current state map and, on the other, it endorses the data obtained in the
production plant itself.
.
Finally, it is necessary to highlight the training of the team to be able to achieve
more ambitious future state maps, which would include more innovative
concepts from the lean production paradigm as well as other conceptual contexts
such as the TOC approach.
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thinking”, International Journal of Production Management, Vol. 24 No. 17, pp. 994-1011.
BPMJ About the authors
Ibon Serrano Lasa is a Lecturer at Mondragon University. His main research field focuses on the
14,1 design and improvement of manufacturing systems, Industrial Management Department,
Mondragon University, Mondragon, Gipuzkoa (Spain). Ibon Serrano Lasa is the corresponding
author and can be contacted at: iserrano@eps.mondragon.edu
Carlos Ochoa Laburu, MSc Professor at the University of the Basque Country. His research is
mainly oriented towards Production and Operations Management, Business Organization
52 Department, Polytechnic University College, University of the Basque Country, San Sebastián,
Gipuzkoa (Spain).
Rodolfo de Castro Vila, PhD, Professor at the University of Girona. His research is focused on
Lean Thinking in Production and Operations Management and in Supply Chain Management,
Business Organization, Management and Product Design Department, University of Girona,
Girona (Spain).