Value Stream Mapping

Value Defined

Value-Added

Activities that transform materials or information to meet customer demands.

Non-Value-Added

Activities that take time and resources or occupy space but do not add value to the product or service

Value Stream

A value stream is all the actions (both value added and non-value added) required to bring a product/service through the main flows essential to every product.

Why Value Stream?

Helps you visualize more than the single process level.

Links the material and information flows.

Provides a common language.

Forces you to confront the reality of the current process.

Makes the difference between lead time and value-added time readily apparent.

Clearly shows the impact inventory has on lead time.

Identifies areas for improvement (groundwork for Future State Value Stream Map).

The Process

Draw the Map

• Collect information while walking the actual paths of material and information yourself.
• Walk the path once to get a feel of the flow and sequence of processes, then go back and start collecting information.
• Begin at the end. Start closest to the customer and you will focus on things linked most closely to the customer.
• Bring a stopwatch, see it and time it for yourself do not trust information from the “system”.

Map the whole thing by yourself , understanding the whole flow is what it’s all about.

Always, always draw by hand in pencil. Begin your rough sketch on the plant floor and if needed clean it up later. DO NOT SIT IN AN OFFICE BEHIND A COMPUTER!!!!.

Map Symbols

Map Example

Identify Waste

Over Production

The most significant source of waste

• Excess Inventory
• Storage space
• Shortages
• Excess People
• Excess Machinery
• Increased lead time
• Decreased flexibility

Three legs of lean

Key Questions

• What is the Takt time?
• Will you build to a finished goods supermarket, or directly to shipping?
• Where can you use continuous flow processing?
• Where will you need to use supermarket pull systems to control upstream processes? At what point in the production chain will you schedule? (pacemaker)
• How will you level the production mix at the pacemaker process?
• What increment of work will you consistently release and move at the pacemaker process?
• What process improvements will be necessary for the value stream to flow as your future-state design specifies?

The Work Plan

Future Map

Break the Future State into Loops

Pacemaker Loop

Encompasses the flow of material and information between your customer pacemaker process. The most downstream loop, tied to the customer with impact on all upstream processes.

Intermediate Loops

Upstream of the pacemaker, material and information flow loops between pulls. Each supermarket usually corresponds to the end of another loop.

Supplier Loop

Includes raw material and components and the associated information flows that serve to communicate requirements and regulate the flow.

Plan Future

Loop Goals and Objectives Example

Starting Point

Now where do we start?…….. Which Loop?

To pick a starting point you can look for ………………

Loops where:

• The process is well understood by your people
• There is high likelihood of success
• You predict a big bang for the buck return

Future State

OK, so you picked the Loop…

In what sequence will you drive the improvements ?

The sequence of the key questions asked when designing your future state is a good rule of thumb place to start.

1. Develop continuous flow based on Takt
2. Establish a pull system to control production
3. Introduce leveling

Value Stream Plan

Use Plan to ...

Summary