Value Stream

Mapping

24/11/2020
Maria Pia Ciano
VALUE STREAM
MAPPING

2
 Value Stream Mapping: main references
https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=Learning+to+See%3A+Value+Stream+Mapping+to+Add+Value+and+Eliminate+Muda&btnG=
http://www.strategosinc.com/value_stream_mapping3.htm
What is Value Stream Mapping?
Value stream = all the actions (both VA and NVA) required to bring a
product through these two main flows:
1. The production flow from raw material to the customer
2. The design flow from concept to launch
Taking a value stream perspective means working on the big picture,
not just individual process, and improving the whole.

«Value stream mapping is the simple process of directly observing the flows of
information and materials as they now occur, summarizing them visually, and then
envisioning a future state with much better performance»
Value Stream: a New Perspective for Analysis
Management - level

Value stream - level

Process - level
 • Value stream maps can be created at any level of an
organization.
• Value streams can be used to understand a strategic
business objective or you can use them in a value chain
analysis across the entire business.
• Value streams are something that a management team or
a deployment team might use to gain a better
Why is value understanding of the business.
• Value stream mapping is also used to gain an
stream mapping understanding of the VA time within total lead time or to
determine the sources of waste within a process.
important? • Value stream mapping is also be used strictly as a
management mechanism across the business to better
understand where there might be potential opportunities
to improve customer satisfaction.
• It ties together lean concepts and lean techniques.
• It shows the linkage between information and material
flows.
Value Stream Analysis
It Depicts the Current State of the complete Production Process and Identifies Improvement Potential

Value stream
Process Process Process

Supplier customer
Raw material Finished product

Drawing a Value Stream Map:

Take a snapshot of production flow at shop
floor level as well as in the office
Result:
Understanding of actual production flow in
factory
• Transparent depiction of complete production flow with all important
parameters
• Identification of potential for improvements
Process Mapping
SIPOC and flow chart
• Begin with a SIPOC diagram.
• Flow chart

Which To Use?
The short answer is
both:
Value Streams to
identify
opportunities
http://www.strategosinc.com/pr
Process charts to
ocess_map_example.htm identify specific
wastes and
improvements
Value Stream Method Approach
Product family Definition of a product family and
Segmentation segmentation of production

Value Stream Depiction of the actual production process in

Analysis the factory and derivation of potential
improvements
Value Stream Draft of the ideal state as an efficient,
Design customer-oriented production flow

Implementation Development of an action plan and step-

projects by-step implementation towards the ideal
state
SIPO and TOP-DOWN FLOWCHART: they can
be preliminary steps

It helps you to understand from a high-

level perspective which process you This is vertical scoping at a very high level – usually
want to use for your value stream map. five to seven blocks. It documents the sequence of
individual tasks and decisions and who is responsible
for them
Step 1: Definition of a Product Family and
Corresponding Production Segmentation
Target:
Product family
 Definition of a product family
Segmentation
Characteristics of a product family:
 Products with common production steps
Value Stream
 Products with common or similar
Analysis
production resources
 Consideration of all variants
Value Stream
Design Approach:
 Selection of a top-selling product family
with few variants for the pilot project
Implementation  Definition of one representative product
projects variant for measurement of data
Methods for Creating Product Families
1. By order of operations 2. By common attributes
processing processing raw material handling

washing cleaning geometry weight

Basic approach for a
product family-oriented
pre-assembly assembly variants work content segmentation
final assembly painting function product type

3. Demand oriented 4. Market oriented

3.1 Quantity 4.1

4.1Portfolio
Portfolio
PF 1

runner
PF 2
PF 4

walker
sleeper PF 3
Further possibilities

3.2 Stability 4.2 Order type

continuous oscillating stochastic

Step 2: Value Stream Mapping of the
Current State
Target:
Product family  To understand of the factory’s current operating
point from incoming goods to dispatch
Segmentation
 Identify potential improvements
Approach:
Value Stream  Walk along the production flow upwards on the shop
Analysis floor and sketch manually
 Use defined icons
 Do not record standard times (out of the system) but
Value Stream time processes
Design  Count inventory where possible
Result:
 A transparent picture of technical processes, material
Implementation and information flow with all key data
Projects
Main Idea of Value Stream Analysis:
Walk Through the Factory in the Customer’s Shoes
Start with shipping and
follow production flow upstream
(not downstream from incoming goods)
• Customer needs define production
requirements
• Each subsequent process is ‘’pacemaker“
for the preceding process
• The value stream branches out upwards
within production flow, as one product
consists of components from several root
sources: impossible to define a single
starting point
• If you already know the end product, you
can easily examine how it was produced
Drawing Icons
Information flow Customer
Supplier
Product family
production control TT takt time
Werk Köln
name/place

SAP
daily Truck Tools
delivery
Shipping
External Transport production order
Documents
weekly schedule

Go-See-
steering Material
Process box “Push“
Process  Name of process
 No. of workers
Process
1 4  No. of resources

Data box Inventory

 operating time
 processing time
 cycle time
 change over time
 uptime
Beginning: Modelling the Customer by Calculating the
Customer Demand Rate (Takt Time)
Example: Spring Ltd., Bridgend Target:
 Achieving a customer-oriented production

Power Inc. Cardiff Calculation:

 Modelling the customer by calculating the takt time

Effective working time per day

Takt Time =
Customer requirement per day

Translation: Power Inc., Cardiff buys a single spring every 9 sec (during our working hours).
Cycle Time Is the Value Stream Performance
Measurement for Production Processes WT
Measurement Calculation

Production process

Working Time
(single piece operations)

Production process

Production process
Cycle Time
Process Time (Cycle)
(continuous feed processes)
Indicates how often one part
or one product is
manufactured by a production
process
Production process

Process Time (Cycle)

(batch or load operations)
 The EPEI Is the Value Stream Flexibility
Measurement for Production Processes
Disturbance
CO
Set Up

EPEI Value
C
Processing four

Availability
Production Process O

Technical
product
variants A-D CO CO
Change Over Time Up Time interrupted by C
(incl. Change over related set ups O
scrap)
Calculation
The EPEI-Value (Every Part Every
Interval) specifies the length of time a all var iants

process needs to produce one lot of  Lotsize WT   CO

each variant. EPEI  1
# R esources  Availability
Example:
• Two 7.5 hour shifts (4 Variants)(1000pc)(1Min/pc)  2h CO 74.6h
• 4 Variants EPEI    4.96 d
1 15h/d  100% 15h/d
• Lot size: 1000 pc.
• Working Time/pc.: 1 min
• CO Duration: 2 h
• Availability: 100%
The Stock Coverage Is the Value Stream
Measurement for Factory Lead Time
Counting • The complete inventory is counted at all stock
locations for all product variants (inventory
quantity IQ)
• The Days of Inventory (DI) is the inventory
coverage with respect to customer demand

IQ
DI 
IQ 1.250 pc. # common parts  daily requirement

Example (250 pieces/day):

1.250 pc.
DI  5d
1  250 pc.
Mapping the Shop Floor: What to Ask?
1. How many operators?
2. How many similar resources?
3. How long is the working time and/or processing time?
4. How long is the set-up time of the machine?
5. How big are the process quantities, batch sizes, and the sizes of
containers?
6. How many product variants?
7. How reliable is the machine?
8. What is the scrap-rate / re-op rate?
9. How does each operation know what to produce (information flow)?
10. How many shifts/day?
11. How high is buffer and stock in between processes?
Value Stream Analysis: a Clear Overview of Current
Operations and Improvement Potential
Example: Manufacturing and assembly of an oil filter Advantages:
information flow
supplier  Change of perspective:
Focus on logistical linkages
customer
of technical processes
instead of processes in
isolation
 The Big Picture:
material and information
flow completely depicted
production lead
time = 22,55 d on one sheet
processing time =
material process 182 sec.  Communication:
flow (with main clear and simple icons
(incl. para-
stock) meters)

 Performance Check: ‘Flow Rate’

Ratio of total processing time (value-add) and lead time shows the distance from
the ideal state.
Individual Performance Vs. System Performance
Everyone rows at the same pace
=> The “production” ship is
heading on an even and stable
course.

… until some crew members pick up

speed
=> The “production” ship starts
spinning

Results:
 Different lead times,
 Conflicting employee goals,
 Synchronization losses (large inventories),
 Unbalanced capacity load,
 Poor goal achievement (e.g. no adherence to delivery dates)
Value Stream Analysis: Balancing Chart (Yamazumi Chart)
Balancing Chart shows how the capacity each of each process stacks
up to the customer demand

10 9,4
0,9 9 Takt time TT
8 1,35
bottleneck
6
waste
4 8,5
7 7 7,5
6 Cycle time CT
5 of all production processes
2 4
Example:
0 0 Production of damping coupler
springs
[V=85%] [V=90%]

Winden
Winding Anlassen
Annealing Schleifen
Grinding Kugel-
Sand Warmsetzen
Hot rolling Montieren
Assembly Prüfen
Check
strahlen
blasting

 Performance Check #2:

The simple comparison of process performance (cycle time) with
customer demand (takt time) shows bottlenecks and waste
Design of the Future State Value Map
Target:
Product Family  Designing the production as an efficient,
Segmentation customer-oriented value stream
 Using future state map to set goals in the
production
Value Stream
Analysis Approach:
 Tried and tested design guidelines
Value Stream define the requirements of optimally
balanced processes
Design
 Guidelines identify measures for
improvement
Implementation  Transparent picture of the future state
Projects with all production processes and their
logistical links
Basic Idea of Lean Production: Avoid Waste
Avoid Waste in Order Processing through
Segmentation Pipeline - Criteria for creating production
segments:
• Similar process chain (same machines)
----- Production Flow----->
• Similar features (geometry, raw material, …)
Segment 1 • Demand and Market (ABC-Classes, Portfolio, …)

Segment 2 Valve – Uniform control principles:

• Singular order entry point at the pacemaker
Segment i
process
• Self-regulating linkage of processes with FIFO-
laminar flow of individual orders
Coupling and Kanban
• Intelligent order release: fixed order release size,
balance of the product mix, bottle-neck-control

 Objective:
Segmented production allows for simple control of uniform, easily mastered production
flow
Eight Guidelines for Designing the Future State
1. Adjusting to takt time
 Balancing production capacities with customer demand
2. Process integration
 Production processes can be consolidated
3. FIFO
 Processes can be coupled with limited inventory level
4. Kanban-Control
 Production processes for common parts with high changeover times, low reliability or
highly differing cycle times should be connected by lot production with supermarkets
5. Pacemaker process
 Every value stream is controlled at one well-defined point in the value stream
6. Definition of release unit
 The release of production orders in small, standard sizes to create an even production
volume
7. Levelling the production mix
 The sequence of production orders is thoroughly mixed to meet demand
8. Bottleneck control
 The release of production orders controlled by downstream bottlenecks
Pull supermarkets and FIFO Lane

https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5
&q=Learning+to+See%3A+Value+Stream+Mapping+to+Ad
d+Value+and+Eliminate+Muda&btnG=
http://www.strategosinc.com/value_stream_mapping3.htm
http://www.strategosinc.com/value_stream_mapping3.htm
http://www.strategosinc.com/value_stream_mapping3.htm
http://www.strategosinc.com/value_stream_mapping3.htm
http://www.strategosinc.com/value_stream_mapping3.htm
http://www.strategosinc.com/value_stream_mapping3.htm
http://www.strategosinc.com/value_stream_mapping3.htm
http://www.strategosinc.com/value_stream_mapping3.htm
Supply chain Value
Stream Mapping
 Suarez-Barraza, M.F., Miguel-Davila, J.-. and Vasquez-García, C.F. (2016), "Supply chain value stream mapping: a new tool
of operation management", International Journal of Quality & Reliability Management, Vol. 33 No. 4, pp. 518-534.

SCVSM
SCVSM is helpful because it creates a visual “map” of
every supply chain involved in the flow of materials
and information in a product’s value chain.
Therefore, it can be defined as a tool which allows
taking a snapshot of the current situation of a supply
chain by observing its material and information flow,
as well as the volume and On-Time-Delivery
variables.
 Methology
1. the manufacturer is placed in the center represented by the factory symbol.
2. Suppliers related to the manufacturer are identified and drawn. Suppliers relate
to the manufacturer with regards to information, material flow and financial
information. In order to draw the suppliers in their different tiers, the symbol of
a large circle is used.
3. The distributors down to the end consumers are identified and drawn,
representing the actors downstream in the supply chain. They are represented
by large triangles.
4. The material flow is mapped. This is a necessary step in the supply chain to
understand the path the materials take and the relationships that exist
between suppliers and distributors. It is represented by a large broad arrow.
5. Data regarding material flow are obtained and included. This activity identifies volume forecasts or volume of materials ordered in the purchase
program (volume requested), as well as the volume received, i.e., the amount of material or raw material received at the warehouse (volume
received). Finally, the time control variable is added as OTD.
6. Mapping the information flow allows the identification of the path of the information which triggers the material flow from the supply chain. It is
drawn as a thin continuous arrow.
7. The data from the information flow are obtained and included. This action identifies the delivery forecast of the purchase orders (in-response
time). The purchasing program called Schedule Delivery (SD) is used. In addition, data from the OTD are obtained, i.e., the actual time in which
the order was received at the warehouse.
SCVSM: material flow
SCVSM: information flow
Benefits

SCVSM takes a “snapshot” outside of the company (the manufacturer) throughout the supply
chain, while VSM does the same internally
1. Quick and easy visualization of the company’s supply chain. It can be performed both on
paper and on an electronic device.
2. Ability to observe in detail the behavior of the supply chain regarding both material flow
and information flow of critical components to be processed at the manufacturer’s
3. Prioritization and critical identification of disruptions and gaps in the supply chain regarding
the competitive priorities volume and OTD.
4. Creation of an action plan to improve both the relationships of the players in the supply
chain and its continuous flow.
 Faulkner, W. and Badurdeen, F., 2014. Sustainable Value Stream Mapping (Sus-VSM): methodology to
visualize and assess manufacturing sustainability performance. Journal of cleaner production, 85, pp.8-18.

Sustainable
VSM
ASSIGNMENT
Details
• Given a Current state map, you have to design the Future state
• You have to prepare a word file (2 pages): in one page the picture of
the future state vsm, in the other one the explanation of the steps
you followed, the calculus, and your decisions and comments
• Due date: December 23rd
• You can work in couples or in 3
• You can work during class-time next Friday. The current state map will
be online next Friday morning.