The Lean Enterprise

Value Stream Mapping

Lean Foundations
Continuous Improvement Training
Learning Objectives

The purpose of this module is to present the

foundational principles of Waste Identification and
elimination.

Learn the History and Purpose of

Value Stream Mapping.
Short History
Origins in Toyota, circa1955 – The way of doing business…

Also called “Material and Information Flow Mapping”

Used by Toyota Motors to show both current and ideal states

as part of the lean implementation process
1996 1998
Discussed in “Lean Thinking”
Further developed and
documented by the Lean
Enterprise Institute of
Brookline, Mass.
“Learning to See”
What is the Value Stream?

SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER

Total Value Stream

All the actions, both value added and non-value added, currently
required to bring a product from raw materials to the customer.
The Value Stream Perspective
A value stream is all the actions (both value added and non-value
added) currently required to bring a product (or transaction) though the
main flows essential for every product/ service: from raw material/
(customer need), through all the required steps, then – back to the
arms of the customer.

Taking a value stream perspective means working on the

big picture, not just individual processes, and improving
the whole, not just optimizing the parts.
SUPPLY
PARTNERS YOUR PLANT OF COMPANY CUSTOMER TO END USER

TOTAL VALUE STREAM

Value Stream Mapping

• Let’s look at an EXAMPLE

 Value Stream Map – Operational example
DOWNTIME 15%

MELT INSP Hold Cast

REC STAGE 903M CHEM Furnace 903

WIP 870
P/T 6N P/T 8H P/T 3 HR
WIP 696
WIP 8 COILS 15K
QTIME QTIME
LOT 75K 120K WIP
72H

8 6 8 3

DOWNTIME 15.5%

INSP BREAKDOWN
STORE STAGE
PROFILE 911

LEAD 2231.1

7% WIP WIP
LOT 1 COIL VA 210.1
SCRAP 746K 108K
1. Map major process steps
QTIME 8HR
TIME .1
WIP 15K
8 1OK Q/T X SHIPPED PER DAY
2. I.D. Value (green/ yellow) / Non-value (red)
8
850K

3. Capture all times, quantities 1.870 WIP BEING WORKED

4.276 WIP BEING STORED
4. Prioritize areas to improve
7
 Value Stream Map – Big Picture example
MANUFACTURING LEADTIME = 3 1/2 DAYS
CUSTOMER LEADTIME = 2 WEEKS

Prod’n Cont.
12 WEEK FORECAST

Supplier Orders Orders Customer

4 WEEKS
OUT

Daily
OXOX IRREGULAR
PITCH = 60
MINUTES
1 DAY

MACHINING ASSEMBLY TEST FINISH DISPATCH

C/T=1568 m FIFO
C/T=936 m FIFO C/T=60 m C/T=210 m FIFO C/T=30 m
C/O=50 min. C/O=0 min. C/O=30 min. C/O=0 min. C/O=0 min.
2 SHIFTS 1 SHIFT 1 SHIFTS 1 SHIFTS 1 SHIFTS
2 DAYS OPER. 48 2 DAYS OPER. 24 OPER. 5 OPER. 6 OPER. 2

1568 MINS 936 MINS 60 MINS 210 MINS 30 MINS

< 1/2 DAY <2 ENGINES <2 ENGINES

LT<3 1/2 DAYS
900 MINS 900 MINS 240 MINS 150 MINS 120 MINS
Why do Value Stream mapping?

• To understand the current situation - The

“big picture” point of view (To use as a tool to
improve the whole vs. optimizing the parts…)

• Exposes sources of waste - not just the waste

• Shows linkage between information flow and

material flow

• Forms the blueprint to identify areas of

improvement
What does Value Stream Map do for us?

• It helps visualize more than just the single-process level, i.e.

assembly, welding, etc., in production. You can see the whole
flow.
• It helps to see more than waste. Mapping helps to see the sources
of waste in your value stream.
• It provides a common language for talking about manufacturing
(and transactional) processes.
• It makes decisions about the flow apparent, so you can discuss
them. Otherwise, many details and decisions in your area just
happen by default.
• By adding data, it ties together lean concepts and six sigma
techniques, which helps you avoid “pet projects”.
Value Stream Mapping is an Essential Tool

• It forms the basis of an implementation plan. By

helping you design how the whole door-to-door flow
should operate - a missing piece in so many lean
efforts - value stream maps become a blueprint for
improvement. Imagine trying to build a house without
a blueprint!

• It shows the linkage between the information flow

and the material flow. No other tool does this.
Value Stream Mapping is an Essential Tool

• It enhances the quantitative tools and layout

diagrams that produce a tally of non-value added
steps, lead time, distance traveled, the amount of
inventory, and so on.

• Value stream mapping is a qualitative tool by which

you describe in detail how your facility should
operate in order to create flow. Numbers are good
for creating a sense of urgency or as before/ after
measures. Value stream mapping is good for
describing what you are actually going to do to
affect those numbers.
Value Stream Mapping

• Let’s look at an EXAMPLE of Process Mapping

• A good start, but no data, no symbols, no color
coding etc
 Process Map w/ Analysis - example
Steel Fabrication Process (Current State)
Can you identify areas for improvement?

Structural
Steel Sawed

Steel Steel Plate Steel Parts Blasting Booth

Weld Shop Paint Shop
Recd stocked burned Stocked Sand Bast

Components
machined
Inspection

Mech parts to
Elect/Mech Parts Parts Mech
Mech Assembly
Recd stocked Assembly
Staging

Elect parts to
Elect
Elect Assembly
Assembly
Staging

Ship to
Warehouse Shipping Crating Run Test Inspection
Customer

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 Process Map w/ Analysis - example
Steel Fabrication Process (Future State)

Structural
Steel Sawed

Steel Plate Steel Blasting Booth

Weld Shop Paint Shop
Recd burned Sand Bast

Components
machined
Inspection

All parts to
Elect/Mech Parts Mech/Elect
Assembly
Recd Assembly
Staging

Ship to Shipping & Inspection &

Customer Crating Run Test

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Impact of “Immediate Opportunities”
The Process Map good place to
start process analysis activities:
• Safety issues resolved first !
• Visible results in areas Kaizened
• “Low hanging fruit” addressed
Product flows more smoothly
through that part of the stream
Many pockets of success …
But –
Process Maps have
limited impact on the
total VALUE STREAM
Many products/ information flows share
the same major steps

Operational
OperationalLevel
Level(SIPOC)
(SIPOC)

Process
ProcessMap
Map(functional)
(functional)

Product
ProductFamily
Familyor
or
“Value Stream”
Main
MainProcess/
Process/Information
InformationFlow
Flow
(door
(doorto
todoor)
door)
Material and Information Flows

In Process Analysis, the information flow

(paper) is treated with just as much
importance as the material flow.

Focus on one product family

or “major line”
or
Administrative Procedure.
Routing Standardization via simplified XY Matrix
Can we identify “Part/ Product Families” ?

A s s e m b ly S te p s & E q uip m e nt
1 2 3 4 5 6 7 8 9

A X X X X X
B X X X X X X A Product
Family
PRODUCTS

C X X X X X X
D X X X X X
E X X X X X
F X X X X X
G X X X X X
What will be seen?

Production System
based on Customer pull rate

Just-in-Time People Autonomation

(JIT) (Jidoka)
Equipment
Making
Products at Information
Stop at Every
the Right Time Engineering Abnormality
Based on
When They’re Raw Material
Sold Wip / Sub Assy’s
Finished Product
Leveled Production

Document flow of information and material !

Value Stream Mapping (VSM)
builds on Process Mapping
Safety

Quality

Speed
Value Stream Mapping

• Let’s look at an EXAMPLE with data, color codes

etc
 Value Stream Map - example
Supplier (Current State) Customer

Prep Move Mach Move

Insp
Store Store Stage

Rec 9000
C/T 15 min Q/T 480 Dist 285” Q/T 60 min C/T 1 min C/T 8 min Dist 30”
1 deliver
Batch 12 WIP150 8 per day 50 pcs Req 450 Batch 6 8 per day
each
Req 450 pcs
month

Assy Move Move

Stage Insp Store Ship

Q/T 60 min Dist 400” Q/T 480 Dist 50”

C/T 5 min C/T 5 min C/T 85 min
50 pcs 8 per day WIP150 20 per day
Req 450 Req 450 10 Orders
Oper 5 Oper 2.5
Value Stream Map - example
(Future State)
Customer
Supplier

Supplier
Delivers Daily
Maintains 475
in Kanban
Kanban

Kanban

Kanban
Prep Mach Assy Ship

15 pc 35 Pcs
C/T 15 min C/T 1 min C/T 5 min Store orders C/T 75 min
10 Replin 25 Replin Req 450
Batch 12 Req 450 3 Day ahead 10 Orders
Req 450 pcs Oper 5 of shipping
Value Stream Mapping
Best Practices
• Always map in pencil - rough out 1st, clean later.
• Start at the customer and work backwards.
• Don’t be too detailed at first, list major process steps.
• Walk the actual material and information flows yourself.
• Start with a quick walk, to get a feel for the
flow and sequence then, go back and talk
to the right people for each step.
(Don’t forget second and third shifts)

Don’t map the organization. Map

the flows through the organization.
Value Stream Mapping
Best Practices
• Color Code the operations. (Red, Yellow, Green)
• Add cycle time, wait time, travel time, quantities, yields,
inventory, and number of machines/ operators required.
• Always collect ‘current-state’ information while waking along the
actual pathways of material and information flows.
• Map current and future state. (With Timelines and Target Dates)
• Involve the Management team totally.

Don’t map the organization. Map

the flows through the organization.
Value
Value Stream
Stream Mapping:
Mapping: Application
Application

Deliverables:
 Map your current process
 On completed Value Stream Map, include:
– Color Code (all Value added operations vs. Non-
value added operations)
– Document process and cycle times, distances
and units (as best as possible)
 Develop a “Future State” Map (if time permits)
 Provide a prioritized list of potential opportunities
for improvement … i.e. – 7 wastes tagged by
Safety, Quality or Speed of Execution (SQS
categories)
Value Stream Symbols
and Definitions

Addendum

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Material Icons Represents Notes
WELDING

Manufacturing Process One box equals an area of continuous

flow. All processes should be labeled.
Box also used to identify departments
such as production control.

ABC Outside Sources Used to show customers, suppliers

COMPANY
and outside manufacturing processes.

C/T=120 sec.
C/O=22 min.
3 SHIFTS
W/T=20 hrs Process Data Box Used to record information concerning
3% SCRAP
a manufacturing process, department,
etc.

I Inventory Count and time should be noted.

225 pieces
1.5 days

Tuesday
+ Thurs Truck Shipment Note the frequency of shipments.

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Material Icons Represents Notes

Air Shipment Create rail or other icons as needed.

Movement of prod’n Identifies material movements that are

material by PUSH pushed by producer, not pulled by the
customer ( the following process ).
Movement of finished Also shows movement of raw material
goods to the customer and components from suppliers if
they are not pushed.
Supermarket

Physical pull
Pull of materials from a supermarket.
Transfer of controlled
quantities of material Indicates a device to limit quantity
FIFO between processes in a and ensure FIFO flow of material
first in first out seq. between processes.
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Information Icons Represents Notes

Manual flow of For example: production schedule

information shipping schedule

Electronic flow of For example: EDI, Fax, etc.

information

Weekly Information Describes an information flow.

Schedule

OXOX Load leveling Tool to level the volume and mix

of Kanban over a specific period
of time.

Sequence-Pull Ball Gives permission to produce a

predetermined type and quantity.
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Information Icons Represents Notes

20 Production Kanban Tells a process how many of what

can be produced and gives permission
to do so.

Withdrawal Kanban Tells a process how many of what

can be withdrawn and gives permission
to do so.

Signal Kanban Production instruction that orders

production from a batch process,
eg: stamping.

Kanban post Place where Kanban are collected

and held for conveyance .

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General Icons Represents Notes

Lathe Highlights critical improvement needs

Changeover Kaizen lightning burst
at specific processes. Can be used to
plan Kaizen events.

Buffer or safety stock “Buffer” or “Safety Stock” must be

noted.

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 The Lean Enterprise
Value Stream Mapping

Lean Foundations
Continuous Improvement Training