Value stream

Value stream refer to all the activities your company must do to design, order, produce, and deliver its products or service to customers. Including value added and non-value added activities

A value stream has three major parts

The flow of materials, from receipt from suppliers to delivery to customers. The transformation of raw materials into finish parts The flow of information that supports and directs both the flow of materials and the transformation of raw materials into finish goods

Value Stream Mapping

1.

2.

Follow a products production path from beginning to end, and draw a visual representation of every process in the material & information flows. Then draw (using icons) a future state map of how value should flow.

Example

Why use it?

Allow every one to fully understand and agree on how value is produced and where waste occurs Highlight the connections among activities and information and material flow that impact the lead time of your value stream Helping to know the entire value stream instead of a single function Improving decision-making process of understanding current practice in the company Create a common language and understanding by using standard symbols Allow you to separate value-added activities from nonvalue added activities To easy identify and eliminate areas of waste

Value Stream Mangers

Each Value Stream needs a Value Stream Manager
For product ownership beyond functions
Assign responsibility for the future state mapping and implementing lean value streams to line managers with the capability to make change happen across functional and departmental boundaries.

Value Stream Managers should make their progress reports to the top manger on site.

How do I create a value stream map

Assemble paper, pencils, erasers, and a stopwatch Select a product or service to map Identify customer to identify takt time Start to map starting with customer requirements Add production flow, materials flow, information flow, and icons Create a lead time chart at the bottom, showing value added or non-added production lead time Review it as a group

A few mapping tips

Always collect current-state information while walking along the actual pathways of materials and information flows yourself. Begin with a quick walk along the entire door-todoor value stream Begin at the shipping end and work upstream Bring your stopwatch and do not rely on standard times or information that you do not personally obtain Map the whole value stream yourself (a team) Always draw by hand in pencil

Using the Value Stream Mapping Tool

product family Understanding how the shop floor currently operates. The foundation for the future state.

current state drawing

future state drawing

Designing a lean flow.

plan and implementation

Focus on one product family

Determine Product Families via:
similar downstream assembly steps and equipment

Process Steps & Equipment

saw mill lathe Grind Ass. test Pack

P R O D U C T

LH
RH T op Back

X
X X

X
X X X

X
X X

X
X X X

X
X X X

X-y

X
Family product

Levels of a Value Stream

Process level
begin here

Single plant
(door to door)

Multiple plants Across companies

The Current State Map Exercise Current State for Acme Stamping co.

Current State Drawing

product family

Understanding how the shop floor currently operates.

current state drawing Material and Information flows Draw using icons Start with the door to door flow Have to walk the flow and get actual no standard times plan and implementation draw by hand, with pencil Foundation for the Future State

future state drawing

VSM - Material Icons

process Manufacturing Process One process box equals an area of flow. All processes should be labeled. Also used for departments, such as Production Control.

Outside Source

Outside Sources

Used to show customers, suppliers, and outside manufacturing processes

C/T = 45 sec C/O = 30 min 3 shifts 2% Scrap

Data Box

Used to record information concerning a manufacturing process, department, customer, etc.

VSM - Material Icons

Inventory Count and time should be noted.

How often

Truck Shipment

Note frequency of shipments.

Movement of production material by PUSH

Material that is produced and moved forward before the next process needs it; usually based on a schedule.

Movement of finished good to the customer

VSM - Information Icons

Manual Information Flow Electronic Information Flow
Weekly Schedule

For example; production schedule or shipping schedule For example: via electronic data interchange (EDI). Describes an information flow. Adjusting schedules based on checking inventory levels. Tool to intercept batches of kanban and level the volume and mix of them over a period of time. Indicates a device to limit quantity and ensure FIFO flow of material between processes. Maximum quantity should be noted.

Information

Go See Production Scheduling

Load Leveling

max. X pieces

First-in first-out flow

Acme stamping Co. case study

The layout and process information of Acme company Icons references A legal size paper for your exercise Work along in the class This considered as in-class homework (individually) due today

2
1 3

Step 1- customer icon

State Street Assembly
18,400 pcs/mo -12,000 L

-6,400 R

Tray= 20 pieces 2 Shifts

Step 2: all processes, data boxes, and inventory triangles

State Street Assembly
18,400 pcs/mo -12,000 L -6,400 R

Tray= 20 pieces 2 Shifts

Stamping

Spot Welding

Spot Welding #2

Assembly #1

Assembly #2

Coils 5 days

1
C/T=1 seconds C/O= 1 hr Uptime 85% EPE 2 wks 27,600 sec. avail.

4600L 2400R

1
C/T=39 seconds C/O= 10 min Uptime 100% 2 Shifts 27,600 sec. avail.

I
1600LH 850 RH

1
C/T=46 seconds C/O= 10 min Uptime 80% 2 Shifts 27,600 sec. avail.

I 1600LH
850 RH

1
C/T=62 seconds C/O= None Uptime 100% 2 Shifts 27,600 sec. avail.

1200L 640R C/T=40 seconds C/O= None Uptime 100%

2700L 1440R

Shipping
STAGES

2 Shifts
27,600 sec. avail.

Step 3: show the material flow

Production Control
Michigan Steel Co.

State Street Assembly

18,400 pcs/mo -12,000 L -6,400 R

MRP

500 ft coils

Tray= 20 pieces
Tues + Thurs

2 Shifts

1x Daily

Stamping

Spot Welding

Spot Welding #2

Assembly #1

Assembly #2

I
Coils 5 days

1
C/T=1 seconds C/O= 1 hr Uptime 85% EPE 2 wks 27,600 sec. avail.

4600L 2400R C/T=39 seconds C/O= 10 min Uptime 100% 2 Shifts 27,600 sec. avail.

I 1600LH
850 RH

1
C/T=46 seconds C/O= 10 2 Shifts 27,600 sec. avail.

I 1600LH
850 RH

1
C/T=62 seconds C/O= None Uptime 100% 2 Shifts 27,600 sec. avail.

min

1200L 640R C/T=40 seconds C/O= None Uptime 100%

2700L 1440R

Shipping
STAGES

Uptime 80%

2 Shifts
27,600 sec. avail.

Step 4: show the information flow

6-week Forecast Michigan Steel Co. Weekly fax

Production Control

90/60/30 day Forecasts Daily order

State Street Assembly

18,400 pcs/mo -12,000 L -6,400 R

MRP

500 ft coils

Weekly Schedule
Tues + Thurs

Tray= 20 pieces

Daily Ship Schedule

2 Shifts

1x Daily

Stamping

Spot Welding

Spot Welding #2

Assembly #1

Assembly #2

Coils 5 days

1
C/T=1 seconds C/O= 1 hr Uptime 85% EPE 2 wks 27,600 sec. avail.

4600L 2400R C/T=39 seconds C/T=39 seconds C/O= 10 min Uptime 100% 2 Shifts 27,600 sec. avail.

I 1600LH
850 RH

1
C/T=46 seconds C/O= 10 min Uptime 80% 2 Shifts 27,600 sec. avail.

I 1600LH
850 RH

1
C/T=62 seconds C/O= None

1200L 640R C/T=40 seconds C/O= None Uptime 100%

2700L 1440R

Shipping
STAGES

Uptime 100% 2 Shifts

27,600 sec. avail.

2 Shifts
27,600 sec. avail.

Step 5: Add lead and value-add time chart identify lead time

Demand:

LH: 12,000/month = daily 12000/20=600 RH: 6400/month = daily 6400/20 = 320 LH inv. 4600 L.T . RH inv. 2400 600 650 640 L.T . Max.

Station Stamping

S. Weld #1 1100 S. Weld #2 1600 Ass. #1 1200

Ass. #2

2700

7.6 1.8 2.7 2 4.5

1440

7.5 1.9 2 2 4.5

T otal lead time (add 5 days for Coils)

7.6 1.9 2.7 2 4.5 23.7

Step 5: Add lead and value-add time chart

6-week Forecast Michigan Steel Co. Weekly fax

Production Control
Daily order

90/60/30 day Forecasts

State Street Assembly

18,400 pcs/mo -12,000 L -6,400 R

MRP

500 ft coils

Weekly Schedule
Tues + Thurs

Tray= 20 pieces

Daily Ship Schedule

2 Shifts

1x Daily

Stamping

Spot Welding

Spot Welding #2

Assembly #1

Assembly #2

Coils 5 days

1
C/T=1 seconds C/O= 1 hr

4600L 2400R C/T=39 seconds C/T=39 seconds C/O= 10 min Uptime 100% 2 Shifts 27,600 sec. avail.

1600LH 850 RH

1
C/T=46 seconds C/O= 10 min Uptime 80% 2 Shifts 27,600 sec. avail.

I 1600LH
850 RH

1
C/T=62 seconds C/O= None Uptime 100% 2 Shifts 27,600 sec. avail.

1200L 640R C/T=40 seconds C/O= None Uptime 100%

2700L 1440R

Shipping
STAGES

Uptime 85% EPE 2 wks

27,600 sec. avail.

2 Shifts
27,600 sec. avail.

L.T . 23.7 days 4.5 days P .T . 188 seconds

5 days 1s

7.6 days 39 s

1.9 days 46 s

2.7 days 62 s

2 days 40 s