Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) Slides By Jennifer Blackhurst
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Why ? • Many Many orga organi niza zati tion ons s purs pursui uing ng “lea “lean” n” conv conver ersi sion ons s have realized that improvement events alone are not enough • Impr Improv ovem emen entt eve event nts s cre creat ate e loc local aliz ized ed improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Valu Value e stre stream am mappi mapping ng & ana analy lysis sis is a tool tool tha thatt allows you to see waste, and plan to eliminate it 2
What Is Value? A capability provided to a customer,
of the highest quality, at the right time, at an appropriate price,
as defined by the customer. 3
What Is Value? • "Value" is what the customer is buying • Alwa Always ys thin think k fir first st abou aboutt tthe he endendcustomer – Who Who is the the cust custom omer er? ? – What What are are the they y buyi buying ng? ?
• Desc Descri ribe be valu value e usin using g the the cus custo tome mers rs'' words 4
VSM Basics
• Current State • Ideal State • Future State
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What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste future state VSM
current state VSM
+
+
Lean Basics
= 6
Value Steam Mapping Steps
Next Future State
Future State
Current State
Original State
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Value Stream Scope
Extended Value Stream Concept Order In-use
Launch Delivery Recycle
Multi-plant/Multi-company Plant Action
Action
Action
Action
Action
Action
Action
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Apply Five Simple Principles: Specify Specify
valu value e from from the stand standpoi point nt of end end customer
Identify y Identif
the value value stre stream am for each each produc productt
family Make
VALUE
the product flow
VALUE
Perfection
So
the customer can pull
As
you manage manage toward toward perfect perfection ion
STREAM
PULL
FLOW
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What is the Value that Flows? Specify value from the standpoint of the end customer Ask how your current products and processes disappoint your customer’s value expectation:
price?
quality?
reliable delivery?
rapid response to changing needs?
???
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What Flows? "ITEMS" flow through a value stream – In manu manufac factur turin ing, g, materials are the items – In design design & deve develop lopmen ment, t, designs are the items – In ser servic vice, e, exte extern rnal al customer needs are the items – In adm admin in., ., Inte Intern rnal al customer needs are the items Analysis begins with part of a total value stream, That part of the value stream has customers too 11
7 Forms of Waste PEOPLE Motion Processing
Q Fixing U A Defects L I T
Waiting
TYPES OF WASTE
Inventory
Moving Making Too Things Much
T Y I T A N Q U 12
Material Flow Icons C/T = 45 sec.
ASSEMBLY
C/O = 30 min.
XYZ Corporation
Manufacturing Process
3 Shifts 2% Scrap
Outside Sources
Data Box
Mon. + Wed.
Truck Shipment
Finished Goods to Customer
Supermarket
Buffer or Safety Stock
300 pieces 1 Day
Inventory
max. 20 pieces
FIFO First-In-First-Out Sequence Flow
Physical Pull/Withdrawal
PUSH Arrow
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Information Flow Icons Manual Information Flow
Electronic Information Flow
Signal Kanban
Load Leveling Box
Weekly Schedule
Withdrawal Kanban
Production Kanban
Kanban Post
Schedule
SequencedPull Ball
“Go
See” See” Produc Productio tion n Scheduling
General Icons U P T I M E E O V E R C HA N G
Kaizen Lightening Burst
Operator
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TAKT TIME
Effective Working Time per Shift
Tak Takt Time Time = Customer Requirement per Shift
Synchronizes pace, evenly applying customer demand across the work day. Takt Time is "Beat "Beat Time"? "Rate "Rate Time" or “Heart “Heart Beat" Lean Lean Production Production uses Takt Takt Time as the rate rate or time time that a completed completed product product is finished. finished. If you have a Takt Takt Time of two minutes that means every two minutes a complete product, assembly or machine is produced off the line. (http://www.isixsigma.com/dictionary/Takt_Time-455.htm)
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Curr Curren entt Stat Statee- (Man (Manuf ufac actu turi ring ng))
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Idea Ideall Stat Statee- (Man (Manuf ufac actu turi ring ng)) SUPPLIER
MACHINE COMPANY
ASSEMBLY COMPANY
Production Control
Production Control
Stock
MFG
Ship
CUSTOMER
Same Site
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Futu Future re Stat State e - (Man (Manuf ufac actu turi ring ng
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Current State (NonManufacturing) Customer
Eng
Customer
Production Control
Software Control Library
Config Mgt
SCL
Tech Pubs
Yield.
Yield.
Yield.
Yield.
Staffing
Staffing
Staffing
Staffing
Staffing
Issues
Issues
Issues
Issues
Issues
Delivery
Delivery
Delivery
Delivery
Delivery
Yield.
Eng
Yield. Staffing Issues Delivery
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Idea deal Sta Statete- (NononManufacturing) Customer
Common Format
Eng/SCL/Tech
Software Specific Cell
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Fut Future ure St State- (NononManufacturing) Customer
Customer
Common Format
Engineering
CFG MGT/SCL Cell
Tech Pubs
C/T = 45 sec.
C/T = 45 sec.
C/T = 45 sec.
C/O = 30 min.
C/O = 30 min.
C/O = 30 min.
3 Shifts
3 Shifts
3 Shifts
2% Scrap
2% Scrap
2% Scrap
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Quoting example Introduction
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Exam Exampl plee - Quot Quotin ing g
VSM&A Prep Worksheet CASE FOR CHANGE: •Only 10 % of quotes are “won”
ITEM(S):
DEMAND:
•Many quotes not considered due to long response time
•Quotes inaccurate
Customer requested quote
2 per week
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Exam Exampl plee - Quot Quotin ing g
VSM&A Prep Worksheet SCOPE: Inputs:
Supplier: Sales Force
Outputs:
Request for quote from customer
Customer: Quote (including price delivery, and service necessary to meet customers need)
Sales representative
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Exam Exampl plee - Quot Quotin ing g
VSM&A Prep Worksheet
VALUE STATEMENT: End customer:
Depends on functionality of item being quoted.
Intermediate customer: An accurate statement requirements necessary to meet customer needs, including price and delivery. Available when needed (within ( within 1 week)
KEY REQUIREMENTS: Must meet customer specifications. 25
Exam Exampl plee - Quot Quotin ing g
VSM&A Prep Worksheet MEASUREMENTS: Current: % of quotes won
Planned: response time (cycle time)
actual $ vs. bid $
IDEAL STATE: ON DEMAND Quotes are generated immediately at the customers location
DEFECT FREE Quote always meets the customers needs
ONE BY ONE
LOWEST COST
Quotes are processed immediately (I.e. sales force does not wait until Friday to send all from week)
All duplication and other waste is eliminated from the process 26
GATHER DATA (create the current VSM)
1. Observe and gather data • Walk alk the the valu value e str strea eam m - see see the the actu actual al work ork pla place ce • Foll ollow and and mak make e not notes es abou aboutt “i “item” tem” and and inf infor orma mati tion on flow • Gath Gather er data data for for eac each h ste step p in in the the flow flow – – – –
Trigger/done actual lead time output Actu Actual al cycl cycle e time time on time time deli delive very ry staf staffi fing ng Defect rate batch sizes overtime Quality variations work in process
• 2. Map Map the the flow flow of item items s 27
Example 1: Current State Value Stream Map
Quoting
Fill out RFQ form
Engineering •Stmt of Work •Hours estimates •Parts list •Power & weight
Manuals •Review list •run model •Mgmt review
Administration •Schedule •Log •Copy •Distribute
Installation •Check RFQ •Decide path •Generate spreadsheet
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GATHER DATA (create the current VSM)
3. Map the flow of information
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GATHER DATA (create the current VSM)
4. Add Data and Highlights
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Engineering Example 1: Current State Value Stream Map
Quoting Fill out RFQ form
Administration •Schedule •Log •Copy •Distribute
Manuals
•Stmt of Work •Hours estimates •Parts list •Power & weight
•Review list •run model •Mgmt review
Trigger: receive RFQ
Trigger: receive RFQ
Done:sent to manuals
Done: sent to price
Flow Time: 15 days
Flow Time: 0.5 days
MCT: 40 hours
MCT: 1.4 hours
People: 20 (.20)
People: 4
WIP: 6
WIP: 6
% yield: 70%
% yield: 100 %
demand: 2/week
demand: 2/week
Installation
Trigger: cust. request
Trigger: receive RFQ
Done: RFQ form sent
Done: distribute
Flow Time: 1.5 days
Flow Time: 2 days
MCT: 0.17 hours
MCT: 2 hours
People: 20 (.15)
People: 1
Trigger: receive RFQ
WIP: 1
WIP: 2
Done: sent to price
% yield: 60%
% yield: 100%
Flow Time: 0.6 day
demand: 2/week
demand: 2/week
MCT: 2 hours
•Check RFQ •Decide path •Generate spreadsheet
People: 1 WIP: 3 % yield: 100% demand: 2/week
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CREATE VISION & PLANS
1: Go Back to the Garage • Pick Pick a few few ite items ms that that flow flow thro throug ugh h the value stream • Pret Preten end d you you are are your your smal smalle lest st competitor – You’re You’re in a gara garage ge with with almost almost no mone money y
• Deve Develo lop p the the sma smalllles est, t, lowe lowest st capital value stream 32
CREATE VISION & PLANS
2: Choose Natural Groups • Revi Review ew the the item items s that that flow flow throug through h the the valu value e stre stream am – What What facto factors rs make make items items simi similar lar or diff differe erent nt – Grou Group p sim simililar ar item items s tog toget ethe herr – Set aside aside item items s that that comp complilicat cate e the the group groups s
• Choos Choose e a targe targett ttakt akt time time for for the whol whole e val value ue strea stream m – What What facto factors rs driv drive e the the proc process ess cycle cycle times times – How many many para paralle llell flow flow paths paths do you you want want
• Choo Choos se nat natur ural al grou groups ps of item items s (ad (add d "miscellaneous") – Example Examples s (like (like processi processing ng steps, steps, like like custo customers, mers, like like funct functional ionality) ity) 33
CREATE VISION & PLANS
3: Develop Ideal State Map • • • •
Assu Assume me that that anyt anythi hing ng is pos possibl sible e Avoid sh shared re resources Crea Create te an idea ideall sta state te valu value e str strea eam m map map Add Add obs obsta tacl cle e rem remov oval al to stra strate tegi gic c pla plans ns – Star Startt key key R&D R&D proj projec ects ts – Start Start "rig "rightht-size sized d equipme equipment" nt" projects projects
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CREATE VISION & PLANS
4: Develop Future State Map • Iden Identi tify fy the the fir first st "co "comp mple lete te"" flow flow pat path h you you will create – What What waste waste have have you you elimin eliminated ated? ?
• Draw Draw fut future ure stat state e map map of of wha whatt wil willl be be achieved in the next 12 months • What What will will the the met metri rics cs look look like like? ?
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Example 1: FS VSM
CUSTOMER
Quoting
Complete RFQ •review •set up model •spreadsheet •presentation
Trigger: customer request
Bid Cell •Engineering •Installation •Prgm. Mgmt. •Training •Manuals •CAS
Done: email RFQ
Proposal Prep •Price •Write •Approve
Trigger: RFQ pkg. received Done: sent to cust.
Flow Time: 1 days
Trigger: RFQ pkg. received
Flow Time: 5 days
MCT: 1 hour
Done: sent to prep.
MCT: 70 hours
People: 10
Flow Time: 5 days
People: 4
WIP:1
MCT: 150 hours
WIP:3
% yield: 95%
People: 9
% yield: 90%
demand: 2/ week
WIP:3
demand: 2/ week
% yield: 90% demand: 2/ week
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CREATE VISION & PLANS 5: Develop Action Plans and Tracking • Revi Review ew the the futu future re stat state e map map you you just just created, brainstorm possible action items • Focu Focus s an an act actio ion n pla plan n (mo (mont nth h by by mon month th)) • Establish tr tracking – For For measu measurem rement ents s vs. vs. targ targets ets – For For act actio ion n pla plans ns
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Example Quoting Value Stream Action Plan s t n e v e p m I
s t c e j o r P
s t I o D
X
What
Define basic measurements for the business unit and value stream (measure & track)
X
Communicate “Lean” initiative, why & how to all employees in impacted value stream Quality – write standard work for RFQ’s, increase accuracy/completeness accuracy/completeness to 95%
X
Engineering – reduce cycle time by 50%, Increase first time yield to 90%, write std. Work.
X
CAS – reduce cycle time by 50%, write std. Work. X 38
EXECUTE • Communicate – Curr Curren entt & fut futur ure e VSMs VSMs – Actio tion plan plan – Measur Measureme ements nts vs. vs. T Tar arge gets ts
• Exec Execut ute e your your act action ion plan plan • Be involved – A success successful ful lean lean convers conversion ion depend depends s upon the the active active involvement involvemen t of all members at all levels. levels. This is critical to creating a culture that becomes a competitive advantage. 39
ALIGN • Cond Conduc uctt alig alignm nmen entt revi review ews s quarterly – Evaluate Evaluate progress progress against against target targets s – Implement Implement corre corrective ctive action action ifif improvements not sustained – Re-e Re-eval valua uate te “fut “futur ure e state state”” value value stre stream am map (is it still valid?) 40
