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VALUE STREAM MAPPING
LELY HERLINA
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Meanings of value within the leanframework (Koskela,2004)
Lean principle Inferred meaning ofvalue
1. Precisely specify value by specificproduct
1. Specify value = specify product
2. Identify value stream for eachproduct
2. Value stream = material andinformationflow
3. Make sure flow withoutinterruptions
3. Value = flow of materials withoutinter-ruptions
4. Let the customer pull value fromtheproducer.
4. Value = product
5. Pursue perfection 5. Value = product
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The first principle is to specify value in term ofproduct or product functions. The inferredmeaning of value points to specify value.
However, the value cannot be seen as itself,because it is attached with the product. Thus,value here is used to mean materials orproducts (Koskela, 2004).
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The second principle means designing theproduction system including productdevelopment, order fulfilment process with
goal to avoid the wasteful activities. Thus, theinferred meaning of value stream is thematerial and information flow including the keypartners in the supply chain (Koskela, 2004).
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The third principle highlights to make a flowwithout interruptions. It means to make a flowby eliminating the identified wasteful activities.
In the inferred meaning of the principle, thevalue is the flow. To achieve the waste freeflow helps one-piece flow rather thanproducing in batches (Koskela, 2004).
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The fourth principle accentuates thatcustomers pull the products instead ofproducer pushes the unwanted products. The
inferred value of the principle is that theproducts will be produced in just in timemanner that keep lead time under control(Koskela, 2004).
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The fifth principle stresses that there is a needfor continuous minimization of waste andmaximization of value, associated with JIT
and TQC (Total Quality Control) concepts(Koskela, 2004). Thus, the continuousimprovement should be performed in any leanorganization.
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Value Stream Mapping
Value Stream Mapping (VSM) is the process ofmapping the material and information flows forcomponents and sub-assemblies in a value chain
from raw material to the customer (Seth andGupta, 2005).Womack and Jones (1996) define VSM as a tool,which allows identify ways to get material and
information to flow without interruption, improveproductivity and competitiveness, and help peopleimplement system rather than isolated processimprovements
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VSM is a mapping paradigm used to describethe configuration of value streams and it mapsnot only material flows but also information
flows that signal and control these materialflows (Rother & Shook 1999).
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Objectives of Value StreamMapping
Provide the means to see the material,process and information flows.
Support the prioritization of continuousimprovement activities at the value stream
Provide the basis for facility layout
Eliminate Waste
AND.. .
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Map the Current State
The Process
Analyze the Current Stateand
Design the Future State
Introduction to Value Stream Mapping
Tues. &Fri.
PC & L
MRP MSS
#times/day
SteelSupplier
Steel
Pin#pcs#daysor shifts
I I I
I Stamping
Downtime
Changeover Time=4hr
2Shifts
TAKT=
2Presses
CycleTime=
ChangeOver
Welding
Layout
Scrap/Rework
Downtime= 20%
Uptime
#Operators
CycleTime=
Weekly BuildScheduleDaily ShipSchedule
Finished Goods
Overtime=
#Shifts=
Assembly
DT, ScrapRework
WIP=
CycleTime=
TAKT=
Changeover Time =
Layout
= 10%
Scrap
? days ? days ? days ? days? days ? days ? days
Inventory TimeProcessing Time
TPc/t = ?
TAKT=
WIP=
WIP= WIP=
Xpcs/monthStd. Pack Qty.
# shifts
Customer
Finished Goods Assembly
Layout
Welding
6 x/ Day
PC & L
Daily
Level Box
DA1 DA2
DA3
C/OTime =
CT=
TAKTTime
3 Shifts
DT=
Scrap =
Stamping
0 Overtime
2 Shifts
MaxSize
# Material Handlers
C/OTime =
CT=
TAKTTime
3 Shifts
DT=
Scrap / Rework =
C/OTime =
CT=
TAKTTime
3 Shifts
DT=
Scrap / Rework=
SmallLot # Operators
Customer
X pcs / month
Std Pack Qty# Shifts
WIP =
WIP = WIP =
Steel Supplier
Inv.TimeProc.Time
TPc/t = ?? days ? days ? days ? days
? days ? days ? days
Create an implementation plan andexecute it !
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction
Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Pull To Sender Ass'y
Training
1999 2000 Activity
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13
Value Stream Mapping is a KeyProcess Diagnostic Tool
Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S System Visual Layout
POUS
Cellular/FlowPull/Kanban TPM
ValueStreamMapping
Continuous Improvement
Kaizen
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Value Stream Mapping Step
Select product / servicefamily
Draw Current State map.Understanding how theprocess currently operates.
Identify opportunities forelimination of waste andareas of improvement tomeet customers needs.
Draw the Future State map.Design a lean flow usinglean techniques.
Develop action plan andimplement it.
Product / Servicefamily
Future state
drawing
drawingCurrent state
Plan and Implementation
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Define value stream (product family)
Identify value stream from the customer end
Product should pass through similar processesand common equipment
Door-to-door in scope (within plant walls)
List part numbers
Step 1: Select a Value Stream(Product Family)
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Current State
Select a cross-functional team
Select team memberswho are familiar withthe product
Ensure that teammembers are trained in theuse of VSM
Designate a champion (typically a line manager)
Step 2: Form a Team
Cross FunctionalTeam
Manufacturing
PC & LMaintenance
Leadership
ProductEngineering
IndustrialEngineeringSensei
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Current State Map
Plan for Every Part
Production Control(monthly/weekly forecasts)
Production history (day-to-day, month-to-monthvariation)
Sales (product changes, new business, etc.)
Customer
Demand/month:Part A =Part B =
Part C =# of shifts =
Step 3: Understand Customer Demand
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Customer
Demand/month:Part A =Part B =
Part C =# of shifts =
InventoryPart A =Part B =Part C =
# of shifts =
Shipping AssemblyWeldingStamping
Takt =C.T. =D.T. =FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP =
Takt =C.T. =
D.T. = 20%FTQ =C/O Time =Lot Size =
# of ShiftsWIP =
Takt =C.T. =D.T. =FTQ =
C/O Time = 4 hrs.Lot Size =
# of ShiftsWIP =
Current State Map
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Step 5: Map the Material Flow
Demand/month:Part A =Part B =Part C =
# of shifts =
InventoryPart A =Part B =Part C =
# of shifts =
Shipping AssemblyWeldingStamping
Takt =C.T. =D.T. =FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP =
Takt =C.T. =D.T. = 20%FTQ =C/O Time =Lot Size =
# of ShiftsWIP =
Takt =C.T. =D.T. =FTQ =
C/O Time = 4 hrs.Lot Size =# of ShiftsWIP =
Changeover Downtime FTQ
2 x/day
I
2 x/week
Supplier
1,200 pcsI
1,500 pcs
I800 pcs
I500 pcs
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Step 6: Map the Information Flow
AssemblyWelding
Takt =C.T. =
Takt =C.T. =
I I I1,500 pcs 800 pcs 500 pcs
PC & L
Weekly Build Schedule
Daily Ship Schedule
6 week rolling forecast
6 week rolling forecastWeekly Order
Weekly Order
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Step 7: Calculate Total Product Cycle Time
I800 pcs
.27 days .17 days.4 days .5 days1.0 days.18 days.02 days.008 days
TPc/t = 2.5 days
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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
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Demand ChainSolutions
FIFO
Supermarket
SignalKanban
WithdrawalKanban
ProductionKanban Leveling
PhysicalPull
Kanbanarrivingin batches
KanbanPath KanbanPost
First-InFirst-OutFlow
MAX 50 PCS
ProcessKaizen
Current State Map Additional Mapping Icons
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Demand ChainSolutions
Original Condition Step7: Outline a Plan
Future Condition
Inj:Molding
2 Sender Assy
2
MSS
Assy Plants
7
Stamping10
Tank Assy
4
Perform to TAKT & Pitch.
Produce to Order
Load Leveling and Pull
Zone Maintenance & Fast Response
Labels
Level ABABA. . .
Stagingby Truck
cardby
card
(Pitch = 14 Units)
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction
Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Pull To Sender Ass'y
Training
1999 2000 Activity
Inj:Molding
2
Sender Assy
2
MSS
Tank Assy Stamping
Fuel Pump Assy
I
I
I
I
I I
Assy Plants
2
12
10 4
Cycle-Time Driven. Batches.
ChangeOver
ChangeOver
No Flow
Attendance
No Flow
Uptime
Item Current Target
Total product cycle time
Parts / Person Hour
Delivery Performance
Inventory (days)
Overtime
Uptime
METRICS
Future State Map