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Demand Chain Solutions

Value Stream Mapping

Gaurav Narula

By : Gaurav Narula
Lean Implementation
Why do Value Stream Mapping?

Implementation without a plan will lead to disaster
Customer
Weekly Order Rolling 6-wk For Xstpcs/ month
eca
6-wk forecast Std Pack Qty
Steel Supplier PC & L # Shifts
Level Box
DA1

A Value Stream Map is a simple


Daily DA2
DA3
6 x / Day

picture that helps you focus on Stamping Welding Assembly

Layout
Finished Goods

flow and eliminate the waste 3 Shifts


TAKT Time
CT =
3 Shifts
TAKT Time
CT =
3 Shifts
TAKT Time
CT =
# Material Handlers
Max Size
2 Shifts
C/O Time = C/O Time = C/O Time = 0 Overtime
DT = DT = DT =
Scrap = Scrap / Rework= Scrap / Rework =
WIP = Small Lot # Operators
WIP = WIP =

.Time? days
Inv ? days ? days ? days TPc
/t = ?
.Time
Proc ? days ? days ? days

MAP THE FLOWS !

Eyes for Waste . . . 
                          . . . Eyes for Flow
By : Gaurav Narula
3
Objectives
Explain Value Stream Mapping
Complete a Current State Value
Stream Map
Complete a Future State Value Stream
Map with proposed Implementation
Plan
By : Gaurav Narula
Agenda
Introduction to Value Stream Mapping
Current State Map Session
1
Data Collection
Activity: Map Current State
 Review Current State Map
 Design Future State
 Future State Map
Session
 Consider Key Questions 2
 Summary
 Activity: Design Future State

By : Gaurav Narula
Agenda - Session 1
 Introduction to Value Stream Mapping

 Current State Map

 Data Collection

 Activity: Map Current State

By : Gaurav Narula
Introduction to Value Stream Mapping
Definition of Value Stream

A Value Stream includes all elements (both value added and


non-value added) that occur to a given product from its
inception through delivery to the customer.

Requirements Design Raw Materials Parts Manufacturing

Assembly Plants Distribution Customer


By : Gaurav Narula
2
Introduction to Value Stream Mapping
Definition of Value Stream

Typically we examine the value stream from raw


materials to finished goods within a plant.
VALUE STREAM
PROCESS
PROCESS PROCESS
Stamping Welding
Assembly
Cell

Raw Finished
Material Product

It is also possible to map business processes


using Value Stream Mapping.
By : Gaurav Narula
1
Introduction to Value Stream Mapping
Definition of Value Stream Mapping

Value Stream Mapping (VSM) is a hands-on process to


create a graphical representation of the process, material
and information flows within a value stream.
Customer
Weekly Order Rollin g 6-wk For
ecastX pcs/
month
Std Pack Qty
6-wk forecast
Steel Supplier PC & L # Shifts
Level Box

DA1
Daily DA2
DA3
6 x / Day

Stamping Welding Assembly Finished Goods

Layout

3 Shifts 3 Shifts 3 Shifts # Material Handlers


TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts
C/O Time = C/O Time = C/O Time = 0 Overtime
DT = DT = DT =
Scrap = Scrap / Rework= Scrap / Rework =
WIP = Small Lot # Operators
WIP = WIP =

Inv.Time ? days ? days ? days ? days


? days ? days TPc/t = ?
Proc.Time ? days

Future State Material, Information and Process Flows


By : Gaurav Narula with total Product Cycle Time
Introduction to Value Stream Mapping
Objectives of Value Stream Mapping

 Provide the means to see the material, process


and information flows.
 Support the prioritization of continuous
improvement activities at the value stream
 Provide the basis for facility layout

AND...

Eliminate Waste
By : Gaurav Narula
1
Introduction to Value Stream Mapping
The Process

ecast Forecast Customer


Ro llin
g For
MRP MSS 6 Week Rollin g Weekl y Orde
r
6 Week
Xpcs/month

Map the Current State


er
Ord Std. Pack Qty.
Steel Wee
kly PC & L
Supplier # shifts
Weekly Build Schedule
Daily Ship
Schedule

Tues. & Fri.

# times/day

I Stamping Welding Assembly Finished Goods


Steel
Pin
I Layout
I I
# pcs Layout
# days
or shifts

TAKT = TAKT = TAKT = # Shifts =

2 Shifts # Operators Cycle Time = Overtime =

Changeover Time=4 hr Cycle Time = WIP =

Downtime Scrap/Rework DT, Scrap= 10%


Rework

2 Presses Downtime = 20% Changeover Time = Customer


Weekly Order Rollin g 6-wk Forec
Cycle Time = WIP = WIP =
ast X pcs / month
WIP = Std Pack Qty
Steel Supplier 6-wk forecast PC & L
Uptime Scrap # Shifts
Change
Over
Level Box
Inventory Time ? days ? days ? days ? days TPc/t = ? DA1
Processing Time ? days ? days ? days Daily DA2
DA3
6 x / Day

Stamping Welding Assembly Finished Goods

Layout

3 Shifts 3 Shifts 3 Shifts # Material Handlers


TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts

Analyze the Current State


C/O Time = C/O Time = C/O Time = 0 Overtime
DT = DT = DT =
Scrap = Scrap / Rework= Scrap / Rework =
WIP = Small Lot # Operators

and
WIP = WIP =

Inv.Time ? days ? days ? days ? days


TPc/t = ?
Proc.Time ? days ? days ? days

Design the Future State Activity


1999 2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction

Create an implementation plan and


Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y

execute it ! Pull To Sender Ass'y

Training
By : Gaurav Narula
4
Agenda - Session 1
 Introduction to Value Stream Mapping

 Current State Map

 Data Collection

 Activity: Map Current State

By : Gaurav Narula
Current State Map
The Steps

Step 1: Select a Product Family


Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Step 5: Map the Material Flow
Step 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time
Step 8: Detail Off-Line Activities

By : Gaurav Narula
Current State Map
Step 1: Select a Value Stream (Product Family)

◆ Define value stream (product family)


– Identify value stream from the customer end
– Product should pass through similar processes
and common equipment
– Door-to-door in scope (within plant walls)

◆ List part numbers

By : Gaurav Narula
Current State
Step 2: Form a Team

◆ Select a cross-functional team


Industrial
◆ Select team members Sensei Engineering

who are familiar with Product

the product Manufacturing


Cross Functional
Team
Engineering

◆ Ensure that team Maintenance


PC & L

members are trained in the


Leadership
use of VSM
◆ Designate a champion (typically a line manager)
By : Gaurav Narula THIS IS CRITICAL
4
Current State Map
Step 3: Understand Customer Demand

◆ Plan for Every Part Customer

◆ Production Control
Demand/month:
Part A =
Part B =

(monthly/weekly forecasts)
Part C =
# of shifts =

◆ Production history (day-to-day, month-to-month


variation)
◆ Sales (product changes, new business, etc.)

By : Gaurav Narula
1
Current State Map

Customer

Demand/month:
Part A =
Part B =
Part C =
# of shifts =

Stamping Welding Assembly Shipping

Takt = Takt = Takt = Inventory


C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =

Changeover
Downtime FTQ

By : Gaurav Narula
Current State Map
Step 5: Map the Material Flow

Customer

Supplier
Demand/month:
Part A =
Part B =
Part C =
# of shifts =

2 x/ 2 x/
week day

Shipping
Stamping Welding Assembly

I I I I
1,200 pcs 1,500 pcs 800 pcs 500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =

Changeover Downtime FTQ


By : Gaurav Narula
Current State Map
Step 6: Map the Information Flow
PC & L
6 week rolling forecast
Weekly Order
6 week rolling forecast Weekly Order Customer

Supplier Daily Ship Schedule


Demand/month:
Part A = 705 pcs.
Weekly Build Schedule
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =

2 x/
week 2 x/
day

Stamping Welding Assembly Shipping

I I I I
1,200 pcs 1,500 pcs 800 pcs 500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

By : Gaurav Narula
Changeover Downtime FTQ
Step 7: Calculate Total Product Cycle Time
PC & L
6 week rolling forecast
Weekly Order
6 week rolling forecast
Weekly Order Customer
Daily Ship Schedule
Supplier
Demand/month:
Part A = 705 pcs.
Weekly Build Schedule
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =

2 x/ 2 x/
week day

Stamping Welding Assembly Shipping

I I I
800 pcs I
1,200 pcs 1,500 pcs 500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

Changeover Downtime FTQ


By : Gaurav Narula
.4 days .5 days .27 days .17 days
TPc/t = 2.5 days
.008 days .02 days .18 days 1.0 days
Current State Map
Step 8: Detail Off-Line Activities

 Show on the map using general icons


 Detail
on another sheet using either reference
VSM and/or process flow-charting

Press Room

Fork Truck

Die Bench
Die Room Die Room
Receiving Shipping
(Remove from
Schedule
I I Board)
Dies Dies
12 shifts 2 shifts

Schedule Board
(Forecast)

By : Gaurav Narula
Current State Map
Additional Mapping Icons
Kanban Kanban
Supermarket
Path Post

Signal Kanban
Kanban arriving MAX 50 PCS
First-In
in batches FIFO First-Out
Flow
Withdrawal
Physical
Kanban
Pull

Production Process
Leveling Kaizen
Kanban

By : Gaurav Narula
Data Collection

 It is not necessary that attribute data be


precise.
 It is necessary that the information at least be
directionally correct.
 Knowing that uptime is 82.7% vs. 82%
is normally not necessary.
 An assumption of 80%, however,
when reality is 65% can be
detrimental in that it may substantially
misdirect the future state development
and the prioritization of improvement
activities.
By : Gaurav Narula
1
Agenda - Session 1
 Introduction to Value Stream Mapping

 Current State Map

 Data Collection

 Activity: Map Current State

By : Gaurav Narula
Data Collection
Attribute Data to Collect

 Shipping/Receiving  Work-in-process
schedules inventory
 Pack sizes at each  Overtime per week
process
 Demand rates by  Process cycle times
process (Takt Time)  Number of product
 Working hours and variations at each step
breaks
 Scrap  Batch (lot) sizes
 Inventory Points
(location & size)  Rework
 Changeover times
 How Operations are  Changeover
 Downtime
scheduled frequencies
By : Gaurav Narula
Data Collection
Data Box

Tailor the
data box for
your plant’s
o x
needs.
a B
a t The data
D box should
be open
ended to
allow for
additional
attributes.
By : Gaurav Narula
Introduction to Value Stream Mapping
Tools

Scrap

Manufacturing Kaizen
Process Lightning
Burst

Outside
Buffer or
Source/
Safety Stock
Customer

Manual
Information Flow
Data Box

Electronic

I Information Flow

Inventory

Production Kanban

oTruck
oo
Shipment

Withdrawal Kanban

Finished
Goods to Customer

Push Arrow Signal Kanban

Supermarket Kanban Post

By : Gaurav Narula
Data Collection
What is Takt Time?

Takt Time is the rate at which production should run


to meet customer demand

The idea is to synchronize the pace of


production to the pace of sales.

Your Operating Time per Shift
Customer  Requirement per Shift

27,000 sec
460pieces = 59sec 59 sec.
59 sec.

59 sec.

By : Gaurav Narula
1
Data Collection
How to Calculate Takt Time?

1. Determine Total Customer Requirements for the


affected process.
2. Determine the Scheduled Runtime (S.R.) for the
affected process:
Scheduled Runtime = (Effective Minutes) - (Planned Downtime)
Effective Minutes = (minutes per shift) - (approved breaks)
Planned Downtime is the amount of time an operation is down
for scheduled reasons.

3. Calculate Takt Time:

Scheduled Runtime
Takt Time =
Total Customer Requirements

By : Gaurav Narula
3
Data Collection
Identify Opportunities for Improvement

?
By : Gaurav Narula
Agenda - Session 1
 Introduction to Value Stream Mapping

 Current State Map

 Data Collection

 Activity: Map Current State

By : Gaurav Narula
Activity: Map the Current State
Approximate
Complete By Task Total Time:

• Complete draft of current state value


stream map.
• Review draft and identify open
issues.
• Resolve open issues. Complete
current state value stream map.
• Session 2 Review current state value stream
map.

By : Gaurav Narula
Session 2
Agenda
 Review current state
 Over view of developing future state
 Develop future state
 Develop action plans to get to future state
 Assign owners, timing, and frequency of review for action
items
 Report to leadership
Support
Learning

By : Gaurav Narula
Agenda - Session 2
 Review Current State Map

 Design Future State - Purpose

 Future State Map

 Consider Key Questions

 Summary

 Activity: Design Future State


By : Gaurav Narula
Agenda - Session 2
Review Current State Map

• Design Future State - Purpose

• Future State Map

• Consider Key Questions

• Summary

• Activity: Design Future State


By : Gaurav Narula
Design Future State - Purpose
Purpose

 Define how the plant will


operate in the future

 Serve as the blueprint


for implementation

Without it, the Current State Map is


nothing more than wallpaper !
By : Gaurav Narula
1
Future State Map
The Steps
Step 1: Validate Customer Demand
Step 2: Draw the Future State Process Flow
Step 3: Map the Future State Material Flow
Step 4: Map the Future State Information Flow
Step 5: Calculate Total Product Cycle Time
Step 6: Detail Off-Line Activities

Step 7: Outline a Plan


By : Gaurav Narula
2
Future State Map
Step7: Outline a Plan
Original Condition Future Condition
Inj: 2 MSS MSS
I Molding

Change I
Over

2
Sender
Ass’y
2 I 2 Level
I Fuel Pump No Flow 2
Ass’y I Inj: Sender ABABA. . .
Molding Ass’y
Attendance Labels Staging
by Truck

10 Tank 4 Ass’y
Stamping I Ass’y Plants 10
Tank 4 Ass’y
Stamping Ass’y card Plants
No Flow
by
Change
Over 12 card
Uptime
7
(Pitch = 14 Units)

Cycle-Time Driven. Batches. Perform to TAKT & Pitch. Zone Maintenance & Fast Response

Produce to Order

Load Leveling and Pull

METRICS Activity
1999 2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Item Current Target
Establish TAKT & Flow in Tank Ass'y
Total product cycle time
Stamping Changeover Reduction
Parts / Person Hour Reduce Stamping Buffer
Delivery Performance Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Inventory (days)
Pull To Sender Ass'y
Overtime
Uptime Training
By : Gaurav Narula
Future State Map
The Steps

“Do It”
Implement - Implement - Implement

Action - Action - Action - Action - Action

“Check It - Follow up”


By : Gaurav Narula
Future State Map
The Steps

A simple way to
approach the Future
State Map is to begin
by modifying the
Current State Map.

By : Gaurav Narula
Agenda - Session 2
 Review Current State Map

 Design Future State - Purpose

 Future State Map

 Consider Key Questions

 Summary

 Activity: Design Future State


By : Gaurav Narula
Consider Key Questions

What is Takt Time?


Will you build to a finished goods supermarket or directly to shipping?
Where can you use continuous flow processing?
Where will you need to use supermarket pull systems to
control production of upstream processes?

At what single point in the production chain will you schedule


production? (Typically, this will be the final process.)

How will you level the production mix at the pacemaker process?
What increment of work will you consistently release
and take away at the pacemaker process?
What process improvements will be necessary at the value
stream to flow as your future state design specifies?

By : Gaurav Narula
Consider Key Questions
Will you build to a finished goods supermarket
or directly to shipping?
The Wall
of Protection:

Our Manufacturing Plant The Customer Every effort should


be made
to minimize these
variations. These
Finished Goods Supermarket
variations are driven
by one of the seven
forms
 Protects your customer from significant
of waste and should
process variation. be eliminated.
Eliminate Waste
 Protects your manufacturing operation
from significant demand variation.
By : Gaurav Narula
4
Consider Key Questions
Where can you use continuous flow processing?
(Batch Process vs. Continuous Flow)

Batch Process
Process
I Process
I Process
“A” “B” “C” Elapsed Time:
60 Minutes

Continuous Flow (One-Piece Flow)


Process Process Process
“A” “B” “C”
Elapsed Time:
01 Minute

By : Gaurav Narula
3
Consider Key Questions
Where can you use continuous flow processing?
(Batch Process vs. Continuous Flow)
Batch Process

Process
I Process
I Process
“A” “B” “C”
Elapsed Time:
60 Minutes

Continuous Flow (One-Piece Flow)

Process Process Process


“A” “B” “C”
Elapsed Time:
By : Gaurav Narula 01 Minute
Consider Key Questions
Where can you use continuous flow processing?

This question is asking where you will require


supermarkets or where you will have coupled
processes.
Evaluate the following factors when considering
this question:
 Cycle Time Compatibility
 Equipment Uptime/Downtime (remember that
coupling can multiply the effects of downtime)
 Equipment Investment
 Flexibility
By : Gaurav Narula
2
Consider Key Questions
Where will you need to use supermarket pull
systems to control production of upstream processes?
 Typically, a pull system is needed wherever continuous
flow stops.
 The only exception would be to use a simple FIFO system.

 FIFO may work in situations where only inventory


quantity needs to be controlled (not sequencing, batch
sizing, etc.).
 Visual quantity control is needed - without physically
counting parts and scheduling machine operation.

FIFO

By : Gaurav Narula
2
Consider Key Questions
At what single point in the
PC&L production chain will you
schedule production?

 Usually, you will schedule


production at the final process.

oxox  Exceptions to this might be where


your final process is supplied
through FIFO.

Molding Assembly

FIFO

By : Gaurav Narula
1 Pacemaker Process
Consider Key Questions
How will you level the production mix at the pacemaker process?

 Consideration must be given to level both the mix and overall quantity of
product scheduled for production.
 Leveling of the production schedule is a fundamental requirement for the
efficient management of operations

Without Leveling With Leveling

Work- Work-
load load

Time Time

By : Gaurav Narula
2
Consider Key Questions
How will you level the production mix at the pacemaker process?
(Continued)
Leveling of the overall production quantity must be supported by the
leveling of the product mix.

Traditional Scheduling Level Scheduling


Daily Production Daily Production
Mon 4370 Part D Part A 218
Part A
Part D Tue 4370 Part D Part B
Part C Part B 655
Part D
Wed 4370 Part D Part A
Part C 874
Part B
Part C
Part D Thu 4370 Part C Part D Part D 2622
Part A
Part B
Fri 3277 B 1092 A Part C
Part D
Part D Part A
Part B
Part C
Part D
Part A
Part B
Part C Part C
Part D

Part A & B
Mon. Tue. Wed. Thu . Fri.
Mon. Tue. Wed. Thu. Fri.

By : Gaurav Narula
2
Consider Key Questions
How will you level the production mix at the pacemaker process?
(Continued)

 Leveling
of the product mix must be
supported by small lot production.
 Smalllot production must be supported by
quick set-up.

By : Gaurav Narula
Consider Key Questions
How will you level the production mix at the pacemaker process?
(Continued)

An effective way
of communicating
the level schedule
to manufacturing
operations can be
through the use of
a load leveling
box.

By : Gaurav Narula
Consider Key Questions
What increment of work will you consistently
release and take away at the pacemaker process?

Macro-Leveling
Mon Tues Wed Thurs Fri Sat Sun
Part
Build
A
Order
Part
B
Part
C
Part
D
Part
E

By : Gaurav Narula
Consider Key Questions
What increment of work will you consistently
release and take away at the pacemaker process?
(Continued)
Micro-Leveling
Build Order
Sequenced and Timed

8:00 8:10 8:20 8:30 8:40 8:50 9:00 9:10 9:20


One row per
part number

Part

Card (Part A)
Card (Part A)

Card (Part A)
A

Part

Card (Part B)

Card (Part B)
Card (Part B)

Part
Card (Part C)

Card (Part C)

Card (Part B)
C

Std Pack = 10 pcs


Takt Time = 1 min. One column per pitch Kanban
(Equals 10 minutes) (pull card)

By : Gaurav Narula
Agenda - Session 2
 Review Current State Map

 Design Future State - Purpose

 Future State Map

 Consider Key Questions

 Summary

 Activity: Design Future State


By : Gaurav Narula
Consider Key Questions
What process improvement are necessary for the
value stream to flow as your future state design specifies?

This step is key to any successful


value stream improvement
activities.
 Data is analyzed to
determine waste
(inhibitors to flow). This is the step where
we can most impact
 Plans are developed to the bottom line.
reduce or eliminate
waste.
By : Gaurav Narula
4
Summary
Objectives Review

 Explain Value Stream Mapping

 Complete a Current State Value Stream Map

 Complete a Future State Value Stream Map


with proposed Implementation Plan

By : Gaurav Narula
Agenda - Session 2
 Review Current State Map

 Design Future State - Purpose

 Future State Map

 Consider Key Questions

 Summary

 Activity: Design Future State


By : Gaurav Narula
Activity: Design Future State
Approximate
Task Total Time:

Using the current state map for your selected value


stream, design your future state.
Outline a plan.
Review future state design and plan.

By : Gaurav Narula