Value Stream Mapping Guide for Lean Shipbuilding

Value Stream Mapping
NSR ASP Lean Shipbuilding & Ship Repair Forum

June 2002
John Drogosz, Ph.D.

Sr. Lean Consultant
Optiprise, Inc.
(734) 972-3803
Jdfd4@aol.com
Keith Leitner
Sr. Lean Consultant
Optiprise, Inc.
(814) 414-6667
kleitner@optiprise.com
10/24/2002
Page 1
Lean Enterprise System

Lean Enterprise System
Highest Quality, Lowest Cost, Shortest Lead Time
Just in Time
Continuous Flow
Produce only:
What
is needed,
When it is
needed
at Rate of
Customer
Consumption
Built in Quality
Culture
Pull System
Quick Change
Over & Lot
Size Reduction
Level Production
Flexible,
Capable,
Highly
Motivated
People
Standard Work
Error Proofing
Understanding
Value-Added
SPC & 6 Sigma
Separate Manual
from Machine
Time
Total Productive
Maintenance
Design for
Manufacturing
Elimination of
Variation
Foundation of Operational Stability, Preventive Quality Culture

Value Str. Mapping
Lean Visioning
Problem Solving
Preventive Maintenance
Communications
Process Stability
Measurement/System
5 S & Organization
Build The Base First
LEAN SHIPBUILDING
GOAL
WORLD CLASS SHIPBUILDING
100% CUSTOMER SATISFACTION

LOWEST COST, FASTEST DELIVERY & HIGHEST QUALITY
JUST IN TIME
"THE RIGHT PART, RIGHT

TIME, IN THE RIGHT AMOUNT"
TAKT TIME (PACEMAKER)
EFFICIENT FLOW
PULL SYSTEM
LEVEL & BALANCED
SCHEDULES
VALUE CHAIN INTEGRATION

INTEGRATED PRODUCT AND PROCESS
DEVELOPMENT
CUSTOMER FOCUS
SUPPLY CHAIN INTEGRATION
BUILT IN QUALITY
LEARNING
ORGANIZATION
DESIGNED AND BUILT
BY FLEXIBLE, CAPABLE,
HIGHLY MOTIVATED
PEOPLE
CONTINUOUS
IMPROVEMENT
ACCURACY CONTROL
LABOR-MACHINE BALANCING
IN-CONTROL PROCESSES
VISUAL CONTROL
WORKER SELF-QUALITY
CONTROL ERROR PROOFING
STABLE SHIPYARD
SHIPYARD PROCESSES
STABLE
PROCESSES
STANDARD
STANDARD
SYSTEMS
SYSTEMS
TOTAL
WORKPLACE
ORGANIZATION
(5S)
PRODUCTIVE
MAINTENANCE
AND SAFETY
ERGONOMICS
TOTAL PRODUCTIVE
MAINT.
OFAND
WASTE
ELIMINATION
ERGONOMICS
SAFETY
10/24/2002
Page 3
Comparison of Traditional vs.

Lean Value Stream Cultures
Traditional Culture
Most people understand
only the functions in which

they work
Functions are competitors
A functions Measures
isolate it from other

functions
Value Stream Culture

People understand the big
picture and the business of the
other functions
Functions are partners
Common Goals (Order to Ship
Time, Information accuracy and
timeliness, etc.)
10/24/2002
Page 4
10/24/2002
Page 5
What do most firms do?

Go directly to KAIZEN Blitzes!
Isolated Tools - with Isolated Results:
5S (label the trash cans)
Partial Cellular layouts
Kanban cards
&
No effect on your business!
10/24/2002
Page 6
Value Stream Perspective

Get away from isolated perspective / improvements
Process 1
Process 2
Process 3
Kaizen
Kaizen
Kaizen
10/24/2002
Page 7
Product Leadtime
Waiting
Casting
Transportation
Raw
Material
Assembly
Machining
Staging
Inspection
Time
= Value
Added Time
= Non-Value
Added Time
(WASTE)
Set-up
Finished
Parts
Value Added Time is only a very

small percentage of the Leadtime.
Traditional Cost Savings focused
on only Value Added Items.
FOCUS ON NON-VALUE
ADDING ITEMS.
10/24/2002
Page 8
Traditional Results
Traditional Results of Manufacturing Improvement
Time
Time
Small Amount of
Time Eliminated
10/24/2002
Page 9
Lean Results
Focused on Non-Value Adding Items
Time
Large Amount
of Time
Eliminated
Time
10/24/2002
Page 10
Definition
What is the Value Stream:
All actions (VA & NVA)
Currently Required
Bring product through main flows essential to get
product to the customer
SUPPLIERS
PLANT OR COMPANY
CUSTOMER TO END USER
Total Value Stream
10/24/2002
Page 11
Types of Value Streams

Production
Raw Material
Customer
Design
Concept
Launch
Administrative
Order-taking
Delivery
10/24/2002
Page 12
Two kinds of Kaizen

Senior
Management
Flow Kaizen
(Value Stream Improvement)
Focus
Point Kaizen
(Elimination of Waste)
Front
Lines
Time
Value Stream Improvement is Flow

Kaizen Management doing Kaizen
10/24/2002
Page 13
The Value Stream Map

Most basic tool of lean
management
Based on Toyotas Material and
Information Flow Diagram
Easy to create
Easy for everyone to understand
Key to sustainable progress
through a current-state becomes
future-state management cycle
product family
current-state
drawing
future-state
drawing
work plan
10/24/2002
Page 14
Learning to See,
Mike Rother and John Shook
10/24/2002
Page 15
Objectives of
Visualize
material and information flow

Facilitate the identification and elimination of
waste and the sources of waste
Support the prioritization of continuous
improvement activities at the plant and
value stream levels
Support constraint analysis
Provide a common language for evaluating
processes
10/24/2002
Page 16

Process
product family
current-state
drawing
future-state
drawing
work plan
Understanding how the work

area currently operates. The
foundation for the future state.
Designing a lean flow.
Lean Transformation Plan
10/24/2002
Page 17
Value Steam Mapping Symbols

I
Vendor
1X
Weekly
Sr. Mgt.
Inventory - Product that is not being worked on
Factory - a Customer or Vendor facility
Transportation - Indicates shipment of Product to/from external facility
Functional Group - Processes Information but adds no Value to

Product
Fiber Prep
Process Box - Area where Value is added to Product
10/24/2002
Page 18
Value Steam Mapping Symbols

Push Arrow - indicates Product is pushed into next process
Flow Arrow - Indicates Product Flows from one process to another
Pull Arrow - Indicates Process or Customer pulls Product from
previous process or Vendor
Supermarket (Kanban) - Small Inventory of Product from which the

next Process or Customer may Pull
Information Flow - Indicates flow of information regarding Part #,

Quantity and Delivery Schedule
10/24/2002
Page 19

Process
product family
current-state
drawing
future-state
drawing
work plan
Understanding how
the work area
currently operates.
10/24/2002
Page 20
10
Modulator Fabrication
Material Flow
Suppliers
Customers
100/Day
(1/99)
1X Daily
Scheduled
Shipments
3 days
Shipping
Connector
Rifocs
Fiber Prep
15 - 30 days
2 days
.1 days
Dice & Polish
Wafer Fab
.5 days
A&T
I
20 days
I
Packing
1.5 days
.5 days
Package Prep
6 days
Push
3 days
10/24/2002
Page 21
Forecast
Meetings
100/Day
Order
Sr. Mgt.
Suppliers
Customers
Acct Mgrs
Sales
Orders
Purchasing
Materials
Mgt
MRP
Modulator
Fabrication
Information Flow
(1/99)
Shipping
Connector
Rifocs
Fiber Prep
Wafer Fab
Dice & Polish
A&T
Packing
Package Prep
Info Flow
10/24/2002
Page 22
11
Information Flow Data
Type of information (forecast, schedule, etc.)

Mode of transmission (Phone, Fax, EDI, Email)
Frequency of transmission
Who receives/transmits the ABX
Europe
FAX + Lotus
Part A
Notes Shipment
information ?
Confirmation
FAX
1/wk
6 wk firm
6 wk fcast
FAX
1/mo.
6wk
forecast
Note: Capture formal and

informal information flows
DMX
Ft. Wayne, IN
Part X
Supplier
Austin, TX
EDI Order to
Supplier ABC
10/24/2002
Page 23
Value Stream Map
(1/99)
Forecast
Meetings
100/Day
Order
Sr. Mgt.
Suppliers
Customers
Acct Mgrs
Sales
1X daily
Orders
Materials
Mgt
Purchasing
3 days
MRP
Scheduled
Shipments
I
Shipping
Connector
Rifocs
Fiber Prep
15 - 30 days
2 days
Wafer Fab
.1 days
Dice & Polish
I
20 days
.5 days
A&T
I
Packing
1.5 days
.5 days
Package Prep
I
6 days
I
3 days
Info Flow
Push
10/24/2002
Page 24
12
Example: Current State Map

8 week
Forecast
Supplier
Weekly
Fax
250 ft coils
30/60/90 day
Forecast
Production
Control
Daily
Order
MRP System
Mondays
40,000 pcs/mo.
-30,000 L
-10,000 R
Container= 50 pcs
Daily Ship
Schedule
Daily Requirements
Customer
2 shifts
4 coils
Stamping
500/Gon
Drill
300 T press
2 machines
3 shifts
12000 L
EPE = 2 weeks 4000 R C/T=36sec
Takt = 4.1 sec
C/T= 3 sec.
O.A. = 70%
FTQ = 98%
C/O = 4 hrs, 1X/wk
Scrap = 2%
Rework = none
# operators = 1/shift
Capacity = 22,000/day
V.A. = 3 sec
Shared:part # 123,ABC
250/Cart
Grind
I
4500 L
1500 R
Takt = 25.9 sec

C/T= 18 sec.
O.A. = 85%
FTQ = 99.5%
C/O = 40 min,1X/wk
Tool C/O= 30/day
Scrap = 0.5%
Rework = none
Capacity = 2450/day
V.A. = 36 sec
Dedicated: L,R
100/Cart
Assemble
OP 10 20 30
3000 L C/T 19 20 19
1000 R C/0 10 8 8
Takt = 25.9 sec

C/T= 20 sec.
O.A. = 75%
FTQ = 98%
C/O = 60 min, 1X/wk
ToolC/O = 2hrs, 1X/wk
Scrap = 2%
Rework = none
Capacity = 2200/day
V.A. = 20 sec
Dedicated: L,R
Takt =25.9 sec

C/T= 20 sec.
O.A. = 90%
FTQ = 95%
C/O =10min,1X/day
Scrap = none
Rework = 5%
Capacity = 2230/day
V.A. = 58 sec
Dedicated: L,R
50
/C
on
2x
daily
t.
Ship
4500 L
1500 R
Staging
General Information
- 20 days/month
- 7.2 hours avail./shift
- 2 shifts/day
10/24/2002
Page 25
Current State Map: On-Block Outfitting

MACPAC
& LMS
Master Planning:
Issues a complete schedule
good for the life of the product
barring any major changes.
SOC 3 Block
1 day
Daily Pick
Ticket
Trade Work
As
Sched.
Inv. (Elec.)
7.5 days
Warehouse
Supprt. Work
(Electrical)
C/T: 15 days
Wait (PCI)
2.5 days
Inst. Vent
3 days
15 days
Post-Turn
Delivery
1 day
3 days
7.5 days
Turn Block
2.5 days
Paint
Wait (Svcs.)
0.5 days
0.5 days
2 days
Wait (Trade)
0.5 days
Inv. (Pipe)
3.5 days
0.5 days
3.5 days
2 days
Ins. Steam P.
Wait (Paint)
0.5 days
3 days
3 days
3 days
0.5 days
0.5 days
Erect
As Req.
0.5 days
0.5 days
4.5 days
Wait (PCI)
1 day
4.5 days
0.5 days
1 day
2 days
1 day
Paint
Wait (PCI)
0.5 days
3 days
Wait (Svcs.)
0.5 days
Test Pipe
Wait (P-Test)
1 day
7 days
Inst. Insul.
Scaffold
(for Erection)
1 day
0.5 days
Trade Work
(Pipe)
7 days
2 days
0.5 days
Wait (Svcs.)
0.5 days
3 days
0.5 days
Scaffolding
2 days
Supprt. Work
Insul. P-Pen.
3 days
Wait (Trade)
0.5 days
0.5 days
0.5 days
Wait (Svcs.)
0.5 days
3 days
Clean/Prep
(for Turn)
0.5 days
Wait (Paint)
0.5 days
2 days
0.5 days
Wait (PCI)
3 days
SOC 6
1 Block
1 day
SOC 6 reports any problems that would cause

a major schedule change. Otherwise, blocks
are erected per the schedule.
Value Added Time = 47 days

VA Ratio = 0.657 (value added days / lead time days)
0.5 days
Lead Time = 71.5 days
13
Current State Mapping

Guidelines
Assign a scribe who will draw the Current State Map

Document customer information and requirements.
Identify main processes. (In order).
Fill in a Data Box for each main process. (Do not use
standard times, use data observed on the floor
whenever possible)
Identify Inventory at each stage. (Number of pieces
and days)
Material Movement. (Push or Pull?)
Document Information Flows. (How do processes
know what to make?)
10/24/2002
Page 27

Process
product family
current-state
drawing
future-state
drawing
work plan

Designing a
lean flow.
10/24/2002
Page 28
14
Future State Questions

1. Calculate Takt Time
The Beat of Production
Takt time is the time in which a unit must be
produced in order to match the rate of customer
demand.
Takt Time =
Available Time
Unit Demand
10/24/2002
Page 29
Takt Time Example

3 Months Schedule = 52,800 Units
=17,600/ Month
17,600/22 = 800/day or 400/shift
Per Shift:
420min/400 = 1.05 min
or 63 seconds per piece
Parts should move from operation

to operation every 63 seconds
10/24/2002
Page 30
15
Block Construction To Takt Time

ALL STEEL PREP
FOR BLOCK
ALL STEEL SUBASSEMBLY FOR

BLOCK
ALL STEEL
ASSEMBLY FOR
BLOCK
ALL TASKS TAKE SAME

TIME WHICH IS SET BY
SHIP CONSTRUCTION
SCHEDULE
BLOCK
CONSTRUCTION
BLOCK
OUTFITTING
ALL OUTFIT
ASSEMBLY FOR
BLOCK
GRAND BLOCK
JOINING
ALL OUTFIT SUBASSEMBLY FOR

BLOCK
GRAND BLOCK
ERECTION IN
DOCK
ALL OUTFIT PREP

FOR BLOCK
10/24/2002
Page 31

Processes:
2. What are the production constraints that do not
allow us to meet the customer requirements?
3. How can we simplify, combine and/or eliminate
processes to improve the flow?
10/24/2002
Page 32
16
Capacity Analysis
Effective Cycle Time =
Gross Cycle Time

Operational
Quality rate
X
Availability
through final op
10/24/2002
Page 33
Capacity Analysis
Effective Cycle Time Vs Takt Time
Stamping
Effective C/T:
Takt Time:
3sec
(.7)(1-.02-.025)
= 4.5 sec
3.9 sec
Drill
36 sec
(.85)(1-.005-.02)
= 43 sec
23 sec X 2 machines
= 46 sec.
Grind
Assemble
20 sec
(.75)(1-.02)
= 27.2 sec
20 sec
(.9)(1-.05)
= 23.9 sec
23 sec
23 sec
We need to establish realistic targets for Quality and

Operational Availability for the Future State that
will meet the Customer Requirements
10/24/2002
Page 34
17
Serial Unreliability leads to No Control

Low Individual Machine Reliability
MANUAL
CUTTING PLATE
.90
MANUAL
MANUAL
PROFILE CUTTING
.85
PLATE JOINING
.90
MANUAL
STIFFNER WELDING
.90
System Reliability = .62
High Individual Machine Reliability
N/C BURNING
MACHINE
.95
ROBOTIC
PROFILE CUTTING
.98
PLATE LINE
PLATE JOINING
.97
STIFFNER JOINING
.96
System Reliability = .87
10/24/2002
Page 35
Quality
Use Statistical Process Control (SPC) at those stations where critical process
indicators demonstrate high degrees of variability.
Stiffener Length
UCL
X-bar
LCL
Out of Control
Condition
Improves product quality by controlling in-process variability.

Helps ensure the operator is not passing on quality defects.
Helps prevent errors from occurring by making process adjustments in out of
control conditions.
10/24/2002
Page 36
18
Future State Map of Operations

Customer
Supplier
250 ft coils
45,000 pcs/mo.
-30,000 L
-15,000 R
Container= 50 pcs
2 shifts
Drill, Grind & Assemble

Stamping
Drill
OP (2) Grind 10 20 30
300 T press
3 shifts
EPE = 1 day
C/T 36
C/0 10
Takt = 3.9 sec

C/T= 3 sec.
O.A. = 80%
FTQ = 98.5%
C/O = 20 min, 1X/shift
Scrap = 1.5%
Rework = none
V.A. = 3 sec
20
10
Ship
19 20 19
10 8 8
Takt =23 sec

C/T= 20 sec.
O.A. = 90%
FTQ = 97%
C/O =10min,1X/shift
Scrap = 2%
Rework = 1%
V.A. = 114 sec
Dedicated: L,R
Staging
General Information
- 20 days/month
- 2 shifts/day
10/24/2002
Page 37
Batch Processing versus One-Piece Flow
SORTING
SORTING/
BUFFER
BLOCK
CONSTRUCTION
SORTING
SORTING/
BUFFER
STORAGE
BEFORE - BATCH BUILDING
BLOCK
CONSTRUCTION
AFTER - IDEAL OF ONE PIECE FLOW
10/24/2002
Page 38
19
Example: Cutting Line

5-S Opportunity
One-Piece Flow Line
10/24/2002
Page 39
Example: Boeing Final Assembly Cell
20

Material Flow:
4.Where can continuous flow processing be used?
5. Where can we use FIFO?
6.Where will supermarket pull systems be
required to control upstream production?
10/24/2002
Page 41
Eliminate Overproduction and

Inventory Wastes ( Cycle Time)
How Do We Get Rid of the Triangles?
Process 1
Process 2
INV
Process 3
INV
What is the waste caused by overproduction ?

Handling
Storage space
Shortages
Critical capacity
Logistics/Expediting
Inventory Carrying Cost
Slower Feedback
Lengthens lead times
10/24/2002
Page 42
21
Future State Map

Production
Control
250 ft coils
MRP System
Daily
Milk Run
coil
Supplier
Batch
Stamping
300 T press
3 shifts
EPE = 1 day
(at the press)

Takt = 3.9 sec
C/T= 3 sec.
O.A. = 80%
FTQ = 98.5%
C/O = 20 min 1X/shift
Scrap = 1.5%
Rework = none
V.A. = 3 sec
45,000 pcs/mo.
-30,000 L
-15,000 R
Container= 50 pcs
50

Coils
Customer
Drill
OP (2) Grind 10 20 30
C/T 36
C/0 10
20
10
19 20 19
10 8 8
Takt =23 sec

C/T= 20 sec.
O.A. = 90%
FTQ = 97%
C/O =10min,1X/shift
Scrap = 2%
Rework = 1%
V.A. = 114 sec
Dedicated: L,R
2 shifts
50
L
2x
daily
Ship
Staging
General Information
- 20 days/month
- 2 shifts/day
10/24/2002
Page 43
Using Sequencing
Plate Panel
Pallet
Jumbled
Must be sorted
BEFORE
Plate Panel
AFTER
Pallet
Sequenced
10/24/2002
Page 44
22

Information Flow:
7. At which single point(pacemaker) in the
production chains will we trigger production?
8. How much work do we consistently release and
remove from the pacemaker process?
9. How will we level the production mix at the
pacemaker process?
10. Will we build directly to customer order or to
a finished goods supermarket ?
11. How will suppliers know what to ship?
10/24/2002
Page 45
Future State Map

8 week
Forecast
Supplier
coil
Daily
Milk Run
tote
Stamping
1 day
C/T 36
C/0 10
20
10
19 20 19
10 8 8
Takt =23 sec

C/T= 20 sec.
O.A. = 90%
Grind
FTQ = 97%
Changeover
C/O =10min,1X/shift
Scrap = 2%
Drill
Changeover Rework = none
V.A. = 114 sec
Dedicated: L,R
Grind
Uptime
1 day
3 sec,
OXOX
Drill
OP (2) Grind 10 20 30
2 shifts
50
50
L
R
2x
daily
Ship
Staging
General Information
- 20 days/month
- 2 shifts/day
1 day
114 sec.
Customer
45,000 pcs/mo.
-30,000 L
-15,000 R
Container= 50 pcs
5050
50
300 T press
3 shifts
EPE = 1 day
(at the press)
Takt = 3.9 sec
Change C/T= 3 sec.
over O.A. = 80%
FTQ = 98.5%
C/O = 4 hrs, 1X/day
Scrap = 1.5%
Rework = none
V.A. = 3 sec
Daily
Order
MRP System
Batch
Coils
Production
Control
Daily
Fax
250 ft coils
Date:
30/60/90 day
Forecast
L.T. = 3 d
V.A. = 117 s
23
Production Smoothing
Leveled
Leveled Production
Production
Traditional Production
Production
Volume
Move to Level Production
Production
Volume
Monthly Production
Monthly Production
Level Production
Production
Volume
Monthly Production
10/24/2002
Page 47
Why Level Production?

Smooths demand on upstream
operations
Foundation for pull (kanban) systems
Minimizes inventory
Efficient use of resources
10/24/2002
Page 48
24
How to Level Production

Using Temporary Employees
Cross Training Employees
Careful planning
Standardized Times for Processes
Standardized Designs
Balancing Processes across the Shipyard
Takt Time Planning
Best Results:
Combination of All, Which Results in the
Least Amount of Waste
10/24/2002
Page 49
Future State Map: : On-Block Outfitting

MACPAC
& LMS
Planning / Production Control

Utilize standard times in part number
descriptions.
Determine the order blocks are erected in
based on level production for all stages of
construction.
Produce
Next Appro.
Order
Warehouse,
Trade Shop,
& SOC 3
Move Next Block

To SOC 5
All Trades
On
Demand
Produce
Next Block
SOC 6
1 Block
C/T: 20 days
Clean/Prep
Shoot Pins
0.5 days
2 days
Paint
Turn Block
Scaffolding
1.5 days
20 days
0.5 days
2 days
1.5 days
1 day
1 day
Clean/Prep
Scaffold
1 day
Insulation
Paint
All Trades
0.5 days
Erect
3 days
3 days
7.2 days
0.5 days
1 day
3 days
3 days
7.2 days
Value added Time = 38.7 days

Lead Time = 40.7 days
VSR = 0.95 (value added days / lead time) days
25
Functional-Batch versus Product-Flow Process

FLAT
PLATE
PLATE
SUB
PROCESSING
STORAGE
ASSEMBLY
FLAT
SHOP
BLOCK
SHOP
CURVED
PLATE
PLATE
AND
STORAGE
PROFILE
STOCKYARD
FITTING
ASSEMBLY
CURVED
STORAGE
PROFILE
PROFILE
PROCESSING
STORAGE
PIPE
SHOP
CURVED
SHOP
OUT-
SHOP
SUB
STRAIGHT
BLOCK
PAINT
SHOP
PAINT
and
SHOP
GRAND
BLOCK
CONSTR
BLOCK
SHOP
BERTH
PROFILE
STORAGE
BEFORE: FUNCTIONAL-BATCH PROCESS
FLAT BLOCK LINE
PAINT
FLAT BLOCK
SHOP
OUTFITTING
GRAND
PLATE
PROFILE
STOCKYARD
BLOCK
PIPE SHOP
SUB-ASSEMBLY
AND
CURVED BLOCK LINE
BERTH
CONSTR-
PAINT
CURVED BLOCK
SHOP
OUTFITTING
UCTION
AFTER: PRODUCT-FLOW PROCESS
CREATING LEAN FLOW FREES UP SPACE

OFFICES
PARTS
PANEL
PARTS &
BUFFER
SUB-
BUFFER SUB-ASSEMBLY
ASSEMBLY
SHOP
BUFFER
BLOCK
CONSTRUCTION
BLOCK
PAINT
PIPE
BUFFER
SHOPS
SHOPS
PIPE
WORKER
FACILITES
BLOCK OUTFITTING &

PLATE
PROFILE
PROCESSING
PROCESSING
BUFFER
GRAND BLOCK CONSTRUCTION
BERTH
B
E
F
O
R
E
STOCK
YARD
SPACE FREED UP
FLAT BLOCK
PAINT
FLAT BLOCK LINE

STOCK
SUB-ASSEMBLY LINE
YARD
CURVED BLOCK LINE
C.B. PAINT
BLOCK
PIPE
OUT-
OUT-
SHOP
FITTING
FITTING
SPACE
FREED UP
GRAND BLOCK CONST.
OFFICES
WORKER
FACILITES
FLAT
BLOCK
CURVED
A
F
T
E
R
BERTH
26
Define Future Lean Vision
Use Value Stream Map, then Make Lean

Action Plan for Improvement
Q: How Good is Good?!
10/24/2002
Page 53
Improvements by
Moving to Future State
On-block inventory reduced from a total of
15 days to 2 days (82% reduction)
Lead Time vs. Value Added Time (VAR)
increased from 0.67 to 0.95
Reduced complexity in information flows
10/24/2002
Page 54
27

Process
product family
current-state
drawing
future-state
drawing

work plan
Lean Transformation
Plan
10/24/2002
Page 55
Example: Work Plan

Future Value Stream Mapping Workshop ACTION PLAN
#
1
2
3
4
5
Item
PLANT-WIDE:
Develop Standard Work process, form & training
JIT Handbook Development
Problem Solving Process, Forms & Training
Visual Workplace-Form & Employee Rating Committee
TPM (method, training, OEE tracking)
Responsible
R. Soreno
Y. Kim
J. Jackson
G. Harrison
M. Thompson
23-Jun
2-Jul
20-Jul
15-Jun
20-Jun
1
2
3
4
5
ASSEMBLY:
Map Ass'y (and Other) box
TPM workshop
Develop Pull System from Table
Plan for 2 Shift Assembly
One-piece flow/Cell Design Workshop
B.
R.
K.
V.
P.
7-Jul
15-Jul
11-Aug
30-Jul
23-Jul
Smith
Valentine
Masterson
Carrera
Gordon
Due Date
10/24/2002
Page 56
28
Setting SMART Goals

Goals Should be S.M.A.R.T.!
Specific John does xxxx (someone on Team to be accountable)
Measurable John tracks OEE on M7 and updates Team
Action-Oriented John leads 5S and reports results
Realistic John develops an employee overview by tomorrow
Time-Based John to lead 5S in Area7, report results by 7/12
10/24/2002
Page 57
Approach to Lean
Transformation
Select Model Line (a major product line)
Identify Roles and Responsibilities for Lean
Enterprise Implementation
Develop a Current State Map and Future State
Map for Model Line
Develop Project Plan for Model Line
Transformation
Week by Week Transformation
Schedule for one-week Kaizen events as needed
JUST DO IT!
10/24/2002
Page 58
29
Customers
Material Flow
Suppliers
100/Day
1X Daily
(1/99)
3 days
S chedul ed
S hip ments
Customers
Acct Mgrs
Forecast
Meetings
Rifocs
Fiber Prep
Orders
Sales
15 - 30 days
2 days
Pu rchasing
Wafer Fab
Materials
Mgt
Dice & Polish
MRP
I
.1 days
Modulator
Fabrication
A &T
Information Flow
I
20 days
.5 days
Packing
(1/99)
1. 5 days
.5 days
Shipp ing
P ackag e P rep
Rifocs
6 days
1'-0"3
Fiber Prep
A &T
Dice & Polis h
Packing
106'-0"
P ackage P rep
25'-0"
25'-0"
CI Plans
29 Griffin Road
Push South
Manufacturing Facility
days
10'-0"
Wafer Fab
Shipping
100/Day
Order
Sr. Mgt.
Suppliers
20'-0"
Loading
Dock
25'-0"
25'-0"
13'-0"
24'-0"
14'-6"
Info Flow
29'-0"
28'-0"
Bay 4a
14'-0"
4'-5 9/16"
Lunch Room
Bay 4b
Bay 3
Bay 2
Bay 1
Future State Map
Customers
Forecast
Meetings
100/ Day
Suppliers
Order
Sales
Orders
Current State
Pu rchasing
29 Griffin Road South

Manufacturing Facility
1'-0"
10'-0"
1X daily
Mat erials
Mgt
MRP
S chedul ed
S hip men ts
I
Pack/Ship
Fiber Prep
Continuous
Improvement
Process
25'-0"
Wafer Fab
Dice & Polis h
Bay 4a
A &T
Rifocs
24'-0"
25'-0"
20'-0"
Loading
Dock
P ackage P rep
Info Flow
Material Push
Material Flow
Lunch Room
Bay 4b
Bay 3
Future State
10/24/2002
Page 59
Observed Results Using the

Value Stream Mapping Process
Lead time reductions of 50+%

Productivity increases of 15-20%
Quality improvements of 5 15%
Increased visibility of critical operations
Improved allocation of resources
Improved communication/understanding of
processes by supplier and customer
Accelerated Lean transformation
10/24/2002
Page 60
30
Conclusions
Value Stream Mapping helps to:
visualize the product flow
show the links between the information and material
flows
identify the sources of waste in the system
establish a clear future vision for the value stream
prioritize improvement activities
focus attention on the key elements that will improve
the Lead Time and reduce the Total Cost of the
Product
10/24/2002
Page 61
References
Learning to See
by Rother & Shook
www.lean.org
Lean Thinking
by Womack & Jones
10/24/2002
Page 62
31

for Ship Construction
and Repair
Lean Shipbuilding & Repair Forum
June 6, 2002
Building Lean Enterprise Excellence
Levels of Value Stream Mapping

Process
Level
Single Plant
(Door to Door)
Multiple Plants
Across Companies
Learning to See
Rother & Shook
Lean Enterprise Institute
1999
Better Tool
Process
Level
Single Plant
(Door to Door)
Multiple Plants
Across Companies
Process Sequence Charts Overview
Schematic representation of the current or proposed flow.

Used to analyze sources of variation of machines,
methods, materials and manpower throughout the
process.
Helps to analyze all aspects of the process:
Inspection
Transport
Storage
and Delays
Uses Standard ASME Symbols
Flow vs. Process Sequence Chart

Flow Chart
Process Sequence Chart

Receive
Material
Receive
Part
Inspect
Accept
NO
Rework
YES
Move to
Machine
Machine
Machine
Part
Store
Chart Symbols
Operation
- Indicates main steps in the process (usually VA).
- Part, material, process modified before proceeding.
Inspection
- Indicates inspection or check for quality.
- No modification to part, material or process.
Transport
- Indicates movement of manpower, materials,
equipment.
- Movement other than during operation (trucks,
benches, bins, conveyors).
Chart Symbols
Permanent Storage
- Indicates controlled storage of material.
- Permanent storage requires authorization to remove.
- Temporary storage requires no authorization.
Temporary Storage or Delay
- Indicates a delay in the sequence of events
without record.
Examples are:
- work stacked on the floor,
- work waiting between operations,
- parts waiting to be put into store,
- letters waiting to be signed.
Chart Symbols
Combined Activities
- Indicates activities performed simultaneously (ie.
operation & inspection).
- Should not be confused with Poka Yoke symbol.
Poka Yoke (mistake proofed operation)
-Indicates operation with mistake proof device fitted.
-Not an ASME Symbol.
Applying Value Stream

Mapping Above the Shop Floor
NSR ASP Lean Shipbuilding & Ship Repair Forum
June 2002
John Drogosz, Ph.D.

Sr. Lean Consultant
Optiprise, Inc.
(734) 972-3803
Jdfd4@aol.com
10/24/2002
Page 1
Engineering & Business Processes

Must deal with multiple projects simultaneously
Even though many of the specific challenges are
unique, much of the work, tasks, and sequences of
tasks are common across projects
Most systems can be viewed as a knowledge work
job shop with multiple work centers and an
integrated network of queues
10/24/2002
Page 2
Engineering & Business Processes

Highly variable volumes of work
Tend to work in batches
Lots of expediting
Many capacity mismatches
Create tremendous system congestion, queues and
long lead times
10/24/2002
Page 3
Why use VSM?

Potentially even more valuable above the shop floor
as it helps to
Understand highly complex system made up of diverse,
interdependent, concurrent activities
Synchronize activities
Highlight dependencies
Identify opportunities for the application of specific tools
and strategies
10/24/2002
Page 4
Process Differences
The need for adaptation
VSM above shop floor
Traditional VSM
Virtual Data Flow
Physical Product Flow
Weeks and Months
Seconds and Minutes
Primarily Knowledge Work
Physical Manufacturing
Non-linear and Multi-directional Flows Linear Evolution

Large, Very Diverse Group of
Technical Specialists
Primarily Manufacturing Organization
Created by Jim Morgan
10/24/2002
Page 5
Challenges in collecting data

Long Cycle times for many tasks
Resources work on several tasks at the same time
Product resides in multiple work centers
simultaneously
Difficult to follow the evolution of the product
Existing business systems do not time/costs by task
10/24/2002
Page 6
Version 2.2b
Version 2.1
E/C 1A 8C
Version 1
Designer
Structural Eng
E/C Req 1.5
Version 2.2b
Version 1
E/C Req 1.2
Weight Control
Process ver 1.3

E/C Req 1.5
Version 1
ZZZ
Configuration Management
Scoping
10/24/2002
Page 7
Initial
Release
Milestone
Release I
January
February
WIP
Data
Final
Milestone
Release
Milestone
Release II
March
Frt Ctr Mbr v2

Fndr Inr v5
Hood Otr v11
Hood Inr v2
April
Hood Otr v8
Hood Inr v1.2
May
E/C Change
Requests
Engineering
10/24/2002
Page 8
Complex Information Flows

Many different technical disciplines working
together simultaneously
Reciprocal information exchanges
Web of interdependencies
Data releases
Feedback
Product changes
Scheduling information
Unscheduled data exchanges
10/24/2002
Page 9
PDN II Rel
Updated Timing
Recovery Plan
Ver I?
February
E/Cs
Program Mgmt
E/C Req 15
Structural Eng
E/C Req 15a
WIP ver 14
Scoping
Major
Concern
Craft
Billing
10/24/2002
Page 10
Mapping The Current State
Crucial first step in process improvement deep

understanding of the existing process.
Identify all the activities currently involved
Start at a high level Develop a preliminary map or

process outline should be developed by the team to serve
as a VSM guide.
Utilize a go to the source strategy.
Its not about the map!
More questions than answers!
10/24/2002
Page 11
Example: Process Outline
10/24/2002
Page 12
Example: Process Outline

Macro Map
Vendor Info
Eng/Mat
2D Dwg Dev
Eng
3D Dwg Dev
Eng
3D Dwg Extr
Eng
Weight Control
Structural Models
Composites
Mach. Arrangement
Tech Check
Foundation Models
O&F Dwgs
Wireways Models
Wireways
CADM
Eng
Bill & Scope

Planning
Budgeting
IE
HVAC Models
Wire List
Piping Models
Cable Routing
Penetration Control
Foundation Dwgs
Structural Mfg Aids
10/24/2002
Page 13
Map Components
Work centers
Time line and scheduled events
Process boxes and activity levels
Data boxes
Primary data flows
Icons
Engineering Activity Logs
Tool Activity Tags
10/24/2002
Page 14
Work Centers
Primarily various functional disciplines
Layered and color coded
10/24/2002
Page 15
Time Line and Scheduled Events

Months before production start
24
25
PDN 0 Release
23
PDN I
22
21
PDN II
20
FINAL
RELEASE
Clay Freeze
Body and Structures Engineering Data Release Milestones
10/24/2002
Page 16
Process Boxes and Activity Levels
At a low level of magnification, process boxes (activities) are summarized in terms of

total task times and located on the time scale to correspond to peak periods of activity.
Periods of repetitive activity and product refinement through trial and error are shown
as periods of looping within the design process flow.
Process Boxes and Activity Levels
Load level lines and

overtime markers show
activity loading and periods
of intense effort.
At a high level of magnification, activity is depicted in real-time. Complex

interactions can be recorded between groups and dependencies between dependent
Created by Jim
Morgan
activities
analyzed.
Example: Data Boxes
Expedite / Overtime
Daily Loading
Task Time
(Value Added Activity)
Time in System
Changeover (if any)
Value Ratio
Definitions
Work center: Location where specific work or task is done
Time in System(Throughput Time): Time frame from
when a task is started within a work center until it leaves the
work center
Task Time: The total time it actually requires to complete a
task within a work center.
Value Ratio: Task time divided by time in system for a work
center or the sum of the task times divided by lead time for
the process
Lead Time: The time required for a single new product to
complete the entire process as defined
Time in Queue: Time a single unit spends in a specific
queue for instance a released product design waiting for a
processing resource.
10/24/2002
Page 20
10
Example: Current State
10/24/2002
Page 21
Example: Data Boxes

Run Extraction Program
BOM File
Drawing Formats for Parts List
Merge 3-D Model into Drawing

Extraction Model
Structural Elements
Lead Sheets
NVA-R
Discipline
Processing Throughpu
(HOURS)
t (Days)
CSI
NVA-R
Discipline
All
Processing Throughpu
(HOURS)
t (Days)
W ireways
Hot W ork
Machinery
Arrangement
Machinery
Grating
GT
Machinery
DG
Machinery
O&F
HVAC
10/24/2002
Page 22
11
Primary Data Flows
Product / Design Flow

(PUSH by supplier onto customer
delay queue or in-process activity)
(PULL by customer from storage)
Information Flow
(E/C Requests, directions, etc)
(Discussion)
(Meeting requests, data availability
notification, etc)
(Program management activity)
10/24/2002
Page 23
P/D VSM Current State Icons

Delay Types
Activity Icons
Event Icons
Traditional VSM Ship and Supply
12
Example: Time Tracking Sheet

Sources
of Delay
C/D
WIP
Preliminary Level
Processing
I
Design
Phases
Level I
Level
I+
D
Level
II
C Level II
Rework
Level II
D
Level
II+
Update
To Final
C Level III
Process Chg
Rework
Official Milestone Dates

Data Received Dates
Data Releases + External

Communications
O/T and Intense

Activity Periods
13
Job Summary Process

Rapid Improvement Workshop
November 13 to November 16, 2001
Puget Sound Naval Shipyard
Jim Forster
05/03/02
Summary of Tools Used
Waste Walk
Brainstorming
Visual Management
5-S
Diverse Workshop Team
What is a Job Summary?

What is Value Added?
Current JS Work Flow
Current JS Work Flow Cont
Before Layout
30,744 Ft. Traveled

58 Hand-offs
Redundant Communications
Before Situation Measures
Key Measures (based on a 30 job phase summary)

Total Lead Time = 97 Days
Value Added Time = 15 Days Wait Time (Non-Value Added)
= 62 Days
Non-Value Added Required Time = 20 Days
Job Summary Travel Distance = 30,744 ft (5.8 Miles)
Process Steps = 70
Hand Offs = 58
Specific Goals
Reduce Lead Time by 50%

Establish Visual Controls
Reduce Job Summary Cost by 20%
Reduce Travel Distance by 75%
Establish 5S
Future State Job Summary Process

- Co-Located Team
- Standard Processes
START:
ASSIGN
J.ob
Summary
DEVELOP
BUBBLE
CHART
8
INCORPORATE
COMMENTS
12
One JS Owner
.1
CONFIRM
W.B.S.
WITH
TEAM
PHASE
CUS PER
BUBBLE
CHART
2
PREP
S/C
PKG.
BUILD
CU
ASSYS
3
14
SHIP
CHECK
DEVELOP
ALL PHASES
F Phase
PRIORITY
90
TECH
REVIEW
CONTRACT
OR INHOUSE
30
.5
STATUS
ALL CU PH
TO PRL
.2
.5
APS /
ZM
REVIEW
.2
START
SCHEDULING
PROCESS
UPDATE
METRICS
& HISTORY
FILE
Product Line
History
Cross-Functional Core Team
START
REMAINING
JMLS
10
END PROCESS
START:
- LF TGI
- PACKAGING
12
3
XFER
1 LLTM
TO END USE
APPROVE
SUMM &
ALL CU PH
Self-Directed Reviews
FILE
STD.
PACKAGE
MATL
SPECALIST
COMPL JML
LLTM CU
PHASE
.2
1.5
MATL
SPECIALIST
ISSUE
LLTM
JML 1.5
10
MATL
PROCESS
After
Total Distance:
2,464 to 13,944 Ft.
Control Board
CU PHASES
JS ID
SUMMARY
HOLDER
SCOPING MTG
TECH REVIEW PROJECT REVIEW
Complete Total Submit Complete Submit Complete Schedule
Actual
Y
514A0101
GUTIERREZ
75%
15
2/20/02
2/20/02
4/2/02
515AB103 LEITHEISER
97%
12
2/26/02
2/26/02
556AB102 GUTIERREZ
80%
59
2/25/02
2/25/02
556AD106 GUTIERREZ
80%
15
2/22/02
4/18/02
3/19/02
4/18/02
4/1/02
4/18/02
2/22/02
3/26/02
561AA103 GUTIERREZ
80%
585AF105
FERREIRA
0%
595AA101
FERREIRA
60%
4/18/02
29
2/22/02
2/22/02
48
3/12/02
3/12/02
Y
3/29/02
528A0101
OHMAN
99%
80
2/22/02
2/22/02
3/29/02
N/A
N/A
726 FSUM
Schedule
Actual
COMMENTS /
REMARKS
TECH REVIEW,
NOT BEING
WORKED
03/01/02
complete. Still
need BSPO
action &
submepp
03/08/02 04/26/02 authorization (no
NEED PROJECT
REVIEW
03/11/02
review on 4/18
ECD 4/22/
Returned to 260.3
for edit ECD 4/26
03/11/02
tech review ECD
WAS 4/15,
delayed man
power ECD 4/26
03/12/02
Hold up BSPO
Vancleef
clarrification
required
03/12/02
FINNEY Tech
Review ECD 4/29
03/14/02
Wheeler. ECD
3/31 Tech review
Ohman making
changes ECD
03/15/02
Goal Chart
WEEKLY
GOAL
WEEKLY
ACTUAL
CUMULATIVE
GOAL
CUMULATIVE
ACTUAL
3/3/02
10
11
68
79
3/10/02
12
80
81
3/17/02
15
86
96
3/24/02
28
114
104
3/31/02
120
105
WEEK
4/7/02
127
107
4/14/02
10
137
114
4/21/02
139
121
125
4/28/02
143
10
153
5/12/02
159
5/19/02
12
171
5/5/02
Workspace (Before)
After Picture
Team Operating Procedures

Continuing Effort:
Job Summary Ownership
Contracting Help
Standard Files / Systems
Cost and Schedule Management
Workshop Results
Average Job
Summary
Current State
Value Added Time (Days)

Non-Value Added Required
Total Cost =
Wait Time (NVA)
Total Lead Time =
Travel Distance (Feet)
Potential
Improvement
Future State
15
20
35 MD
62
97
30,744
15
8
23 MD
3
26
0%
60%
34%
95%
73%
2,464 to 13,944
55 to 92%
Process Steps
70
23
67%
Hand-Offs
58
10
80%
Primary Actions:
Co-located, Cross-functional Team
Single Job Summary Owner
Self directed work and reviews (reduced management of work)
Standard processes and records
Results - Month 4
COST
DURATION
Potential Improvement
34%
73%
Improvement Goal
20%
50%
ACTUAL
16%
66%
Current JS Average
9.4 MD
33 Days
(11.2 MD Budget)

Value Stream Mapping Guide for Lean Shipbuilding

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Value Stream Mapping

NSR ASP Lean Shipbuilding & Ship Repair Forum

John Drogosz, Ph.D.

Lean Enterprise System

SPC & 6 Sigma

Foundation of Operational Stability, Preventive Quality Culture

Build The Base First

100% CUSTOMER SATISFACTION

"THE RIGHT PART, RIGHT

VALUE CHAIN INTEGRATION

Comparison of Traditional vs.

only the functions in which

isolate it from other

Value Stream Culture

What do most firms do?

Value Stream Perspective

Value Added Time is only a very

CUSTOMER TO END USER

Total Value Stream

Types of Value Streams

Two kinds of Kaizen

Value Stream Improvement is Flow

The Value Stream Map

material and information flow