VALUE STREAM MAPPING FOR LEAN SYSTEM DESIGN

(based on a Workbook Learning to See by M. Rother and D. Jones, The Lean Enterprise Institute, Brookline, MA www.lean.org

Dr. Onur Ulgen

Production Modeling Corporation

In Lean Thinking Jim Womack and Dan Jones suggest the following step-by-step transformation process to a lean system:
Find a change agent (how about you?) Find a sensei (a teacher whose learning curve we can borrow) Seize or create a crisis to motivate action across your firm Map the entire value stream for all your product families Pick something important and get started removing waste quickly

Value Stream Mapping (VSM)

At Toyota, VSM=Material and Information Flow Mapping What is VSM
VSM is all the actions (value added or non-value added) required to bring a product through the main flows essential to every product It may include Suppliers, Your Plant, and Your Customer to End User

Purpose:

To highlight the sources of waste and eliminate them by implementation of a future-state value stream

Why VSM is an essential tool

Helps to visualize the whole flow in the system It helps to see the waste and its source It helps the communication process It ties lean concepts and techniques It forms the basis (blueprint) for an implementation plan It shows the linkage between the information and material flow

Starting VSM
Select a product family Have one person (Value Stream Manager) that reports to top management lead the mapping effort Begin within the plant at the dock-to-dock level

VSM Process
Draw the Current-State Map of the flow Draw the Future-State Map of the flow by applying the lean concepts Break implementation into steps using a plan Continuously try to improve the flow Apply to other product families Incorporate in-bound and out-bound supply chains of your plant

A few mapping tips

Begin with a quick walk along the entire dock-to-dock value stream Begin at the shipping end and work upstream Map the whole value stream yourself Always collect current-state info while walking through the material and information flows Bring your stopwatch and collect your own data--dont rely on standard times or info somebody has collected previously Draw the map with paper and pencil while on the floor

 VSM Icons (Hand-out) Lean Measurements (hand-out)

C/T, VA Time, Lead Time

Case Study: Acme Stamping Plant

Factory Layout Data for the processes Product: Stamped-steel steering bracket
LH and RH brackets

Current-State Map
Start with the main customers Add shipping and the rest of the main upstream processes in the plant Add the main suppliers Show the material flow to customers and from suppliers Show the material flow within the plant and information flow Show the VA and non-VA Times

Guidelines for creating a lean value stream

Produce at the Takt time Develop continuous flow whenever possible Use kanban supermarkets to control production where continuous flow does not extend upstream Try to send the customer schedule to only one production process--the pacemaker process Level the production mix at the pacemaker process Level the production volume--production release rate (paced withdrawal)--load leveling box EPE=Every Part Every _______ (day/shift/hr/pitch)

Key questions for the future state

What is takt time Do we need a finished goods inventory or can we directly ship to customers--order to delivery or building directly to shipping Where can you use continuous flow processes Where do you need the kanban supermarket pull systems Where is the pacemaker process How to level the production mix How to set the pitch What process improvements are necessary

Acme Future State Mapping

Takt time--60 seconds Finished goods supermarket or build to ship--finished goods inventory Where to put continuous flow--welding and assembly Where to put the kanban supermarkets--before and after stamping Where is the pacemaker process--welding/assembly cell Leveled production mix--RLLRLLRLL Leveled production release rate or pitch--20 minutes Process Improvements required--weld setup time, weld uptime, reduce muda at welding/assembly cell

Breaking Implementation into Steps

Pacemaker loop Stamping loop Supplier Loop Improvements within a loop
develop continuous flow based on takt time establish pull system introduce leveling practice kaizen