1 Copyright 2009 by LAI/EdNet

Proceedings of the Lean Advancement Initiative

5
th
LAI/EdNet Lean Educator Conference
May 19-21, 2010, Daytona Beach, Florida
LEC-2010-30
VALUE-STREAM MAPPING IN CHEMICAL PROCESSES
A case study in AkzoNobel Surface Chemistry, Stenungsund, Sweden

Meysam Maleki Anvar
a
, Panti Pirzadeh Irannejad
b


a) Product and Production Engineering Department, Chalmers University of Technology
b) Technology Management and Economics Department, Chalmers University of Technology



ABSTRACT
Concentrating on value creation for customer is a primary
concept of lean thinking. Value-stream mapping is one of the
lean production tools which leads to understanding of the
current situation and finding improvement potentials by
reducing or removing wastes. Applicability of value-stream
mapping in process industry has been less-assessed in scholar
activities. This research is aiming to provide an appropriate
answer to whether this tool is effective for chemical process
context or not? According to this research which is a case study
in AkzoNobel plant in Stenungsund, Sweden value-stream
mapping can be effective in chemical processes in case the
unique configuration of chemical processes and the embedded
gaps of the methodology are taken into consideration. This
research pin points the unique configuration of chemical
processes and provides recommendations to enhance the
applicability of value-stream mapping for this industry.
INTRODUCTION
Value creation for end customer is a fundamental concept
of lean approach (Bozdogan, Milauskas, Mize, Nightingale,
Taneja, & Tonaszuck, 2000). In order to do so, value-stream
mapping is introduced as a tool in lean production to
understand the current state, find improvement spots
(McDonald, Van Aken, & Rentes, 2002) and reduce or remove
wastes (Hins, Rich, Brunt, & Taylor, 1998). In order to draw
such outcome from value-stream mapping it is necessary to
understand what the value stream is. A value stream is all
activities which are necessary to refine a product, whether they
are value adding or not (Rother & Shook, 2001). According to
(Tapping, Luyster, & Shuker, 2002) four issues should be taken
into account when using value-stream mapping:
1. Communication along the supply chain
2. Material transport and conveyance
3. Production planning and scheduling
4. The network of processes and operations through
which material and information flow
There might be a number of value streams in a company
but the key idea is to have major people working on the key
streams, with only a few departments supporting the smooth
flow (Baggaley & Maskell, 2003).

VALUE-STREAM MAPPING FRAMEWORK
The work procedure of this research is inspired by the
design research methodology (DRM) framework developed by
(Blessing & Chakrabarti, 2009). In order to make a specialized
framework for value-stream mapping, the DRM framework is
customized according to the specification of this work
consequently Lean production perspective is embedded in the
framework.
The value-stream mapping framework is classified in two
major phases as current and future state while literature and
empirical study cover both phases. The framework is enriched
with Lean concepts such as Genchi Genbutsu , 5 whys, Jidoka,
, and PDCA (Figure 1).
VALUE-STREAM MAPPING: CURRENT STATE
The current state of value-stream mapping is prepared by
analyzing different flows in the plant (Tapping, Luyster, &
Shuker, 2002). It is more effective to sketch the flow before
going to floor to analyze the production. Also it would be better
to start from downstream on the shop floor and follow
backward to up streams processes (Rother & Shook, 2001)
(Tapping, Luyster, & Shuker, 2002).
Value-stream mapping starts by drawing a general and
simplified map using its symbols. In each value-stream there
are supplier(s) to the left, customer(s) to the right and within
these icons there are different nodes among and outside of
processes which form the production flow from raw material to
the end product. In this flow inventories, transportations, value
added, and all non-value added activities will be illustrated. The
2 Copyright 2009 by LAI/EdNet
map can be equipped with data boxes related to activities
including considerable information such as cycle time, setup
time, availability, uptime, number of operators, and work in
progress (Tapping, Luyster, & Shuker, 2002). Also there is
information flow parallel with this map to show data,
information or administrative activity and connections. During
mapping processes it is necessary to make sure about the
reliability of collected data while not high accuracy is needed
(Rother & Shook, 2001). At the end of mapping there will be
the current map which should be detailed enough to provide
strong foundation to locate specific spots that need to get
improved in the future state map.
VALUE-STREAM MAPPING: FUTURE STATE
When the product family is truly chosen and the reliability
of current state value-stream mapping is confirmed it comes to
future state value-stream mapping, after analyzing the current
state value-stream which is a picture illustrating how the system
would look after removing the inefficiencies (Abdulmalek &
Rajgopal, 2006).
The goal Future state value-stream mapping is to create a
production chain in which each entity process is linked to its
customers to be close as much as possible in producing what
customer requires, when they require it through the continuous
flow or pull system (Sullivan, McDonald, & Van Aken, 2002).
To reach an effective future state map (Rother & Shook, 1999)
suggests asking eight key questions from the current state
value-stream map.
1. What is the Takt time?
2. Will production produce to a finish goods supermarket
or directly to shipping?
3. Where can continuous flow processing be utilized?
4. Is there a need for supermarket pull system within the
value stream?
5. What single point in the production chain will be used
to schedule the production?
6. How will the production mix be leveled at the
pacemaker process?
7. What increment of work will be consistently released
from the pacemaker process?
8. What process improvement will be necessary?
Since it is not usually possible to implement all the
changes and improvements spots in the future state it depends
on the value stream map managers responsibility to plan for
the future state and breaking down the implementation task into
different steps.
LEVELING THE PROCESS VARIATIONS
Many companies fail in Lean implementation because of
the fact that lead times are long and it is very difficult to reduce
them. But the key success factor that helped Toyota is the
concept of leveling the variation in processes, also called as
Heijunka in Toyota Production System (TPS). According to
(Jina, Bhattacharya, & Walton, 1997) the principles of Lean
production can be manifested as:
Faster throughput times for in-bound, work in progress
(WIP) and out-bound material
Smaller batch sizes
Shorter set-up and change-over times and longer up
time
High schedule stability
Lower rework and correction costs
Achieving aforementioned objectives are even more
difficult when both production volume and variety are high.
But Leveling out the schedule and workload provide the
foundation to reach such objectives. According to (Liker, 2004)
achieving Heijunka is the essential to eliminate Mura, which is
essential to eliminate Muri and Muda. The prerequisites to truly
implement Heijunka in a production line are: fix volume, fix
sequence, and fix plan. Accordingly, instead of economies of
scale which was used in traditional production, the company
will enjoy economies of repetition which is inspired by the
modern production theories. In order to quantify the fix
production volume and intervals between productions, one
specific point in the production line should work as a
pacemaker which is coordinated with the customer Takt.

Figure 1 Value-Stream Mapping Framework
3 Copyright 2009 by LAI/EdNet
TAKT TIME
Takt is a German term for rhythm which in Lean
production means the rate at which a company must produce a
product to satisfy its customer demand (Singh & Sharma, 2009)
or it is the rate that customer is buying the products. Liker
(2004) put a lot of emphasize on the importance of Takt time
and calls it the heart beat of a true one piece flow. Producing
more than Takt bases results in over production and less than it
leads to bottleneck. Takt is supposed to monitor the production
pace to keep it in the rate of customer demand. According to
(Rother & Shook, 1999) Takt time can be calculated based on
the following formula:
Iokt =
A:oiloblc work timc
Customcr cmonJ

PACEMAKER
In Lean production the attempt is to evenly schedule the
process in one point along the production chain. Pace maker is
a unique point along the production chain which pulls materials
from upstream and transfers material downstream to finish
goods (Rother & Shook, 2001). The idea is to schedule
pacemaker in a way that its cycle time is as close to Takt time
as possible (Rother & Shook, 1999). Pacemaker should not be
misunderstood with bottleneck in theory of constraints (TOC).
In TOC bottleneck is the process which has the higher cycle
time and sets the pace of the system (Woeppel, 2001) while the
pace of value-stream is not set according to bottleneck.
Pacemaker helps reaching Heijunka (Japanese word for level
production) all along the production chain (Abdulmalek &
Rajgopal, 2006).
GAPS IN VALUE-STREAM MAPPING
According to different experiences in value-stream
mapping approach, it has a number of limitations, constraints
and problems regarding its method and the environment in
which it is being used (Hins, Rich, Brunt, & Taylor, 1998).
Value-stream mapping as a method doesnt consider all wastes
such as wasted energy and waste in use of human resource.
Besides, seven plus one wastes are weak in mapping and
analyzing information flow (Owen, 1997). Value-stream
mapping focuses on streams and connections between activities
(Womack & Jones, 1994), however it has weaknesses where
two or a number of value-streams meet. The other weakness of
the method is that the nature of collected information in many
cases is subjective, informal or based on the observation
(Delbridge & Kirkpatrick, 1994) in which data may miss or
inappropriately highlighted.
Companies use value-stream mapping in order to
implement Lean approach, nevertheless sometimes they have a
lot of misunderstandings of what is Lean and what is the path
of implementing Lean in their environment. Value-stream
mapping lacks formal education and training steps in the
procedure, so it is quiet time consuming to undertake and it
takes a lot input but not that much output (Hins, Rich, Brunt, &
Taylor, 1998). This issue was also emphasized in the interview
with Darrell Mann, CEO of Systematic Innovation. Darrell said
My general view of value-stream mapping is that a lot of
effort goes in but not a lot of benefit comes out.
It goes without saying that the knowledge of the
practitioner using the methodology plays an important role in
getting to the expected result out of the methodology.
Consequently, sometimes practice problems might be due to the
lack of knowledge and experience of the person using the tool
but not the tool itself. On the other hand, if there are
considerable short comings in practice, there should be some
roots in the methodology. Accordingly, improvement in the
methodology can help practitioners to get better results.
UNIQUE CONFIGURATION OF CHEMICAL
PROCESSES
Value-stream mapping has been widely used in different
contexts and it has been proved as an effective tool in many
cases. But the nature of chemical processes obliges extra
limitations which are unique in the sense that they are
commonly not a matter of discussion in mechanical processes
(Leondes, 1999). According to this research following factors
has been noticed as unique configurations of chemical
processes:
1. Many chemical materials are spoilable. So, the life
time of materials should always be considered when
studying inventories.
2. Storage of materials in the process is either in storage
tank or container where both has fix capacity, so it is
not as easy as mechanical process to increase or
decrease the capacity of storages.
3. Some materials cannot stand still in buffer and they
need extra supports such as blending, heating,
isolation, etc.
4. The connection between process-process, process-
storage, and storage-storage are mainly pipeline
connections, so pipeline limitations should be taken
into consideration. For instance the flow of material in
pipeline is limited; it may need to be clean to be used
for another material; some materials may need
dedicated pipeline; pipeline maintenance has a high
priority to keep the system safe and secure, etc.
5. Chemical reactions usually have interaction on each
other and in some cases the whole chemical factory
has one or two processes (according to process
definition in value-stream mapping) while many
reactions take place in the same process.
6. Equipments are very much interconnected so increase
or decrease input in one process influences other
processes.
7. In many cases it is more economically beneficial to
install new equipments rather than fixing and
improving current ones.
VALUE-STREAM MAPPING IN CHEMICAL PROCESSES
The content of this section is based on the experience of
value-stream mapping in AkzoNobel Surfactants Europe,
Stenungsund, Sweden which is in chemical industry. Since,
almost all prior experiences of using value-stream mapping
4 Copyright 2009 by LAI/EdNet
have been out of chemical processes this research tries to assess
the tool and provide appropriate foundation for further studies
in this context considering the unique configuration of chemical
processes.
Time is an important factor of value-stream mapping in
almost all contexts. However in many cases, energy
consumption has a more critical role in chemical processes. In
mechanical processes there is no or a few energy consumed on
materials in buffer and inventory, while in chemical processes,
energy consumption of materials in storage tank might be
considerably more than energy consumption of value adding
activities.
The line under the value-stream mapping is usually used
to illustrate the time spend on each activity as value adding and
none-value adding. Nevertheless, above mentioned metrics may
also be added under the map according to the nature of industry
and context. Figure 2 illustrates a simple value-stream mapping
in chemical processes including time and electrical energy
consumption as the key metrics.
Since, chemical reactions take place in particular range of
temperature, so while materials are staying in storage tanks
they may go out of the required range, consequently a
temperature leveling process might be needed before some
processes. Such heating or cooling activities are considered as
process, but they are not truly value-adding (i.e. the first
process in Figure 2).
Based on some governmental and environmental rules and
regulations, transportation of chemical row material and
products may face limitations which brings some difficulties
and also adds none-value adding processes such as pre- heating,
cooling or distillation processes. As an example the
transportation of ethylene oxide in Sweden within the roads are
forbidden and it can only be transported by marine
transportation which needed the supplier plant and customer
plant both being close to sea. Besides, this industry is subject to
some process limitations rooted in environmental and
governmental issues. For instance ethoxylation can only take
place in some specific locations, accordingly it increases the
complexity of production planning and also burdens
transportation and none-value adding activities on chemical
companies
Accuracy of data in the current state value-stream
mapping is critically important particularly in this context. Due
to the fact that most improvement suggestions are about
planning of raw materials, buffers, and inventory of finished
goods, an accurate and realistic map can make a strong
platform to reach the future state. So, the more accurate the
current state the more achievable developments.
Finding pacemaker location is more emphasized in this
context. Based on analyzing a realistic current state map a
pacemaker will be located and its rhythm should be scheduled
as close as possible to the Takt time.
CONCLUSION
Value-stream mapping is one of lean production tools
which is applicable in process industries by considering the
embedded gaps in value-stream map methodology and the
unique configuration of chemical processes. This tool should be
localized for the specific context in which it is being used.
Value-stream mapping focuses on time as the main
evaluation metric to measure non-value and value adding times,
however other metrics are also important in chemical processes
such as energy consumption. In the future state map the
concentration of studies should be on production leveling,
locating, and scheduling the pacemaker correspondent to the
customer Takt.

Figure 2 Value-Stream Mapping in Chemical Processes
5 Copyright 2009 by LAI/EdNet
FURTHER STUDIES
Environmental friendly and safety issues are terribly
important in chemical processes. However, such issues are not
of interest from value-stream mapping perspective, while they
take time and energy. Besides, any further improvements on
current state should take these issues into consideration.
The importance of pacemaker scheduling has been
emphasized in this research. Further researches can be
conducted to find different factors affecting the pacemaker
scheduling considering bullwhip effect. Also, mathematical
probabilistic studies can help to effectively plan pacemaker for
different conditions.
REFERENCES
Abdulmalek, F. A., & Rajgopal, J. (2006). Analyzing the
benets of lean manufacturing and value stream via Simulation.
International Journal of Production Economics .
Baggaley, B. L. (2003). Costing by Value Stream. Cost
Management , 17 (3), 24-30.
Baggaley, B., & Maskell, B. (2003). Value stream management
for lean companies. Cost Management , 23-27.
Black, J., & Miller, D. (2008). Toyota Way to Healthcare
Excellence: Increase Efficiency and Improve Quality with
Lean. Health Administration Press.
Blessing, L. T., & Chakrabarti, A. (2009). DRM, a Design
Research Methodology. Springer London.
Bozdogan, K., Milauskas, R., Mize, J., Nightingale, D., Taneja,
A., & Tonaszuck, D. (2000). Transition to a Lean Enterprise: A
Guide for Leader. Massachusettes Institute of Technology.
Delbridge, R., & Kirkpatrick, I. (1994). Theory and Practice of
Participant Observation. Principles and Practice in Business
and Management Research , 35-62.
Emiliani, M. (2000). Cracking the code of business.
Management Decision , 38 (2), 60-72.
Glenday, I. (2007). Breaking Thtough to Flow. (1.1, Ed.) Lean
Enterprise Academy Ltd.
Hines, P., Rich, N., & Esain, A. (1998). Creating a lean
supplier network: a distribution industry case. European
Journal of Purchasing & Supply Management , 4 (4), 234-46.
Hins, P., Rich, N., Brunt, D., & Taylor, D. (1998). Value
Stream Management. The International Journal of Logistics
Management , 9 (1), 25-42.
Jina, J., Bhattacharya, A. K., & Walton, A. D. (1997). Applying
lean principles for high product variety and low volumes: some
issues and propositions (Vol. 10). Logistics Information
Management.
Leondes, C. T. (1999). Fuzzy Theory Systems: Techniques and
Applications (Vol. 2). Academic Press.
Liker, J. (2004). The Toyota Way: 14 Management Principles
from the World's Greatest Manufacturer. McGraw Hill.
McDonald, T., Van Aken, E. M., & Rentes, A. (2002).
Utilizing simulation to enhance value-stream mapping: a
manufacturing case application. International journal of
logistics: Research and Applications , 5 (2), 213-32.
Millard, R. L. (2001). Value Stream Analysis and Mapping for
Product Development. Mater thesis, Massachusetts Institute of
Technology.
Millard, R. L., & McManus, H. L. (2002). Value Stream
Analysis and Mapping for Product Development.
Monden, Y. (1998). The Toyota Production System. (3rd, Ed.)
Engineering and Management Press, a division of the Institute
of Industrial Engineers, .
Morgan, J., & Liker, J. (2006). The Toyota product
development system.
Mortimer, A. L. (2006). A Lean Rule to Manufacturing
Survival. Assembly Automation , 26 (4), 265-72.
Ohno, T. (1988). Toyota Production System. New York.
Owen, J. (1997). Optimizing the Supply Chain: Information or
Inventory. Proceedings of the Logistics Research Network
Conference, University of Huddersfield .
Rother, M., & Shook, J. (2001). Learning to see. Lean
enterprise institute, Brookline .
Rother, M., & Shook, J. (1999). Learning to See: Value Stream
Mapping to Create Value and Eliminate Muda. Lean Enterprise
Institute, Cambridge, MA.
Ruffa, S. A. (2008). Going Lean. American Management
Association.
Schmidt, M. (2000). Application of Lean principles to an
enterprise value stream: a Lean analysis of an automative fuel
system development process.
Singh, B., & Sharma, S. K. (2009). Value stream mapping as a
versatile tool for lean implementation: an Indian case study of a
manufacturing rm. Measuring Business Excellence , 13 (3).
Sullivan, W. G., McDonald, T. N., & Van Aken, E. M. (2002).
Equipment replacement decisions and lean manufacturing.
Robatics and computer integrated manufacturing .
Tapping, D., Luyster, T., & Shuker, T. (2002). Value stream
management: eight steps to planning, mapping, and sustaining
lean improvements. Productivity press, New York .
Woeppel, M. J. (2001). Manufacturing guide line to implement
thoery of constraints. CRC Press LLC.
Womack, J., & Jones, D. (1994). From Lean Production to the
Lean Enterprise. Harvard Business Review , 72 (2), 93-103.