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Recap..
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What did we learn the previous session Lean systems

What are we going to learn today Lean systems

Lab 5
1
 10. Value Stream mapping

2
 Supermarket Pull System
“Production” “Withdrawal”
KANBAN KANBAN

Supplying
process Customer
process

A B
product product

Mike Rother
Learning to See
SUPERMARKET
CUSTOMER PROCESS goes to supermarket and withdraws what it
needs when it needs it.
SUPPLYING PROCESS produces to replenish what was withdrawn.
PURPOSE: Controls production at supplying process without trying to
schedule. Controls production between flows.
3
 What is a Value Stream ?

 A Value Stream is all the actions, value creating and non-

value creating, required to bring a product from order to
delivery
◦ Starts with raw materials
◦ Finalizes at the end-customer
◦ Involves several businesses

4
 A value stream is a series of steps that occur to provide the
product or service that their customers want or need.

In order to provide the product or service that the customers

desire, every company has a set of steps that are required.

Value stream mapping enables us to better understand

what these steps are, where the value is added, where it is
not, and more importantly, how to improve upon the
collective process.

Value stream mapping (VSM) provides us with a structured

visualization of the key steps and corresponding data needed
to understand and intelligently make improvements that
optimize the entire process, not just one section at the expense
of another.
5
 Value stream mapping is a lean manufacturing or lean
enterprise technique used to document, analyze and
improve the flow of information or materials required to
produce a product or service for a customer.

Unlike process maps, or flowcharts, that show only the

steps involved in the process, a VSM shows significantly
more information and uses a very different, more linear
format.

The VSM enables the team and leadership to see where the
actual value is being added in the process, allowing them
to improve on the overall efficiency associated with the
delivery of a software product or feature request, not just
the number of steps.

6
 What is Value Stream Analysis?
 Value stream maps describe a value stream
 Value stream analysis is a planning process
◦ Uses value stream maps to communicate
 Information Flow
 Material Flow
 Three value stream maps are created
◦ Current state
◦ Ideal state
◦ Future state ( “n” months from now)
 Action plans are developed for the future state map

7
 Mechanics of VSM
 Identify your boundaries--start/end points, the Product Family you
want to map, and the Value Stream Manager/Mapper for that Family

 - Gather the basic/key Information (Customer Needs, Process

Measures, Supplier inputs)

• Lay out Process Steps on Paper in a simplified Visual Functional

Flow, using Common Symbols

• Look for ways to cut/combine Steps to improve Flow, enable Pull, to

Reduce Waiting & Inventory

• Lay out Better Value Stream on Paper

8
 Steps in VSM
 Step 1: Start by identifying the product or service to be analyzed and the value
being created by this process.

 Step 2: Create a value stream map of the current process by identifying the steps,
queues, delays, and information flows.

 Step 3: Review the map to find delays, waste, and constraints. Review the process
and identify wastes.Also, identify the constraints if any.

 Step 4: Create a new value stream map of the optimized state to be achieved in
the future, by removing delays, waste, and constraints.
 Step 5: Develop a roadmap to achieve the future state.

9
 Levels of Waste
Level One Level Two Level Three
Gross Waste Process & Method Waste Microwaste within Process

◼ Work-in-progress ◼ Long changeover ◼Bending and reaching

– Poor plant layout – Poor workplace design – Double handling
– Rejects – No maintenance – Excess walking
– Returns – Temporary storage – Look for stock
– Rework – Equipment problems – Paperwork
– Damaged product
– Unsafe method – Speed and feed
– Container size
– No SOP
– Batch size

– Poor lighting

– Dirty equipment

– Material not delivered to

point of use
10
 Identifying boundaries
1. START Simple: “Door to Door” within One facility (i.e. key materiel In from a supplier(s), product
Out to a customer)

2. Pick ONE Product Family, that is “representative” or “typical”. The Waste you find will Also be
“typical”!

-- A Product Family: normally defined as ”use of several common processes to create multiple
items”

3. Identify/Create A Value Stream Manager/Mapper: the person Responsible for that Product
Family

11
 Information collection/mapping
1. Work “Upstream”, i.e. Start with Customer Rqmts, Then Process
Inputs/Actions/Outputs, then Supplier(s) Inputs to Your Facility

2. The VSM/their own Small “cadre” Walks the factory floor during a “typical”
period(s), gathers Current “slice in time” information

3. Information Gathering/Mapping Tools: Paper, Pencils (w/good Erasers), Stop-

Watch/Calendar.

4. Information Sources: VSM Observations

5. Protocol: Tell floor operators in Advance what and why you are mapping,
encourage them to provide inputs, suggestions, Changes to your map. This is NOT
“time & motion” or “prep for downsizing” !!

12
 Typical Information Types
Cycle Time (C/T)

Changeover Time (C/O)

Uptime

Number of Operators

Number of product Variations

13 Pack Size
 Various time elements
 Takt time is the speed at which goods or services must be
produced to meet customer demand. Takt time is calculated by
dividing the daily total production time by daily customer
demand.
 Lead time (in days) is calculated by dividing the number of
inventories between the processing steps into the daily
demand.
 Cycle time is expressed as the maximum time spent on a unit
in each station. Cycle time is calculated with a simple formula:
1/output rate per hour in units.

14
 Takt Time
Takt time paces production to the pace of customer requirements.
Total daily operating time
Takt Time =
Total daily customer requirement

Operating time = 1 shift x 8 hours – (2) 20-min. breaks

=
440 mins/day
Customer 880 units/month
= = 44 units/day
Requirement 20 days/month
440 mins/day
Takt time = = 10 mins/unit
44 units/day
15
 Takt Time
Takt time paces production to the pace of customer requirements
• In simple terms, it is how fast you need to manufacture products in order
to fill your customer demand.
• Takt time calculation=Available time / customer demand. For example, if a
customer requires 100 bulbs a day, the Takt time is 8 hrs /100.
• 8 hrs is the working time in your 9 hours working day (so you need to
exclude your breaks, meetings etc) to mention the available time
(numerator).
• This means a bulb to be completed every 4.8 minutes.

16
 Value Stream Improvement vs.
Process Improvement
Value Stream
Process Process Process
Customer
Assembly
Stamping Welding
Cell

Raw Finished
Material Product

17
 Elements of Value Stream Maps

30 Days MRP Monthly Orders 880

Supplier Customer
Supplier Loop Customer Loop
Takt Time = 440 min/44
= 10 min/unit
Bi-Monthly Information

Manufacturing Loop
Op 1 Op 2 Op 3 Op 4 Op 5 Op 6
45 Days 1 Day 2 Days 2 Days 1 Day 5 Days 1 Day
S/U = 0.08 hr S/U = 0.08 hr S/U = 0 S/U = 0.08 hr S/U = 1.95 hr
S/U = 1 hr
CT = 0.9 min CT = 0.9 min CT = 1.2 min
CT = 1.6 min CT = 60 min CT = 40.3 min

45 1 2 2 1 5 1

1.6 0.9 0.9 60 1.2 40.3

Total = 57 Days
Lead Time Data Bar Total = 1 Hr. 44.9 Min.

18
 Takt Time
Takt time paces production to the pace of customer requirements.
Total daily operating time
Takt Time =
Total daily customer requirement

Operating time = 1 shift x 8 hours – (2) 20-min. breaks

=
440 mins/day
Customer 880 units/month
= = 44 units/day
Requirement 20 days/month
440 mins/day
Takt time = = 10 mins/unit
44 units/day
19
20
21
22
 Lean Philosophy at a glance ..

23
 Types of flows
 Material flow
 Information flow (to the process, from the process)

24
 Manufacturing Loop Questions
What are the changeover times?
What are the quantity of machines per process?
Count all work in process (WIP)
Look for evidence of quality problems
Look for processing waste
Is there great distances between processes?
Is the product flexible or made to order?
Is there obvious batch processing?

25
 Customer Loop Questions
❑ Who and where are your customers?
❑ What are the product lines or families?
❑ Future marketing plans? Review growth potential.
❑ What is the total yearly order requirement? Quantity by product
family or product type
❑ What is the high, low and mean ordering pattern? Monthly or
quarterly high & low for several periods
❑ How often do we deliver to our customer?
❑ What takt time do we supply to?

26
 Production Control Questions

Where in the production chain

do we trigger production?
How much work do we release at one time?
How long does it take to go from
customer order to production order?
How do we physically schedule production?
How do we react to customer emergencies?

27
 Supplier Loop Questions
#1 question, how do you tell suppliers
what to ship, make, etc.?
When and how often do they get purchase
orders from Customers?
When and how do we change the purchase order?
When and how often do suppliers ship product and how?
Is it level? (Truck, train, etc.)
Do we have standard pack quantities?
Are suppliers aware of our inventory quantities?
Are we sure of suppliers inventory? How?
Do we have a supplier training program?
28
 Information Flow Questions
 How are the manufacturing and procurement orders distributed?
◦ Who gets them
◦ How frequently
◦ What is the process of generating them
 How are the shop order schedules generated and revised? Are there
“shortage meetings”? What parts of the manufacturing loop are scheduled by
MRP? Make sure to document the informal (hot lists) as well as formal (MRP)
information channels.

29
 Future State Plan
 This plan answers the question, “what actions need to be completed in the next
90 days to achieve the future state?
◦ Think back to the “visually identify waste” step
◦ Plan addresses all “red dots” and Kaizen bursts
DATE
Activ- GOAL/
ACTION PRIORITY LEADER EST ACT STATUS/REMARKS
ity OPPORTUNITY OPEN
COMP COMP
The electrical Re-locate THE ELECTRICAL TEST
station is located electrical station STATION HAS BEEN
1 Test Short Term TEAM 1/5/2005 1/10/2005 1/7/2005
away from the closer to test RELOCATED NEAR THE
test area. area. TEST AREA

Only three Train and certify

technicians are more technicians 4 MORE TECHNICIANS
2 Assy Short Term Joe 1/5/2005 4/30/2005 3/18/2005
certified to perform HAVE BEEN TRAINED
solderers. soldering

Details are being Most of the detail parts

issued in the Review kitting are part of POU inventory.
3 Plan'g Long Term John 1/5/2005 3/15/2005
middle of the process The leftovers will be
process looked at case by case.

30
 Product Families / Value Streams

Step G

Step H
Step C

Step D

Step E
Step A

Step B

Step F

Step J
Step I
Product 1
Product 2
Product 3
Product 4

31
 Through VSM identify

Bottlenecks / Constraints

Long Process Cycle Times

Poor Uptimes

Excessive Setup Times

Poor Quality / Rework

33
 Advantages of VSM

Ensures that the examined Procure the identification

Provides visuality thanks to
process is handled from of the resources causing
symbolic representation
beginning to end waste during the process.

Shows the relationship Facilitates implementation

between information flow plan for continuous
and material flow improvement

34
 Lean and Learning

“Why not make the work easier and more interesting

so that people do not have to sweat? The Toyota style
is not to create results by working hard. It is a system
that says there is no limit to people’s creativity. People
don’t go to Toyota to ‘work’ they go there to ‘think’”
-
Taiichi Ohno

35
 General methodology..

Understand Grasp Establish Apply

Understand the Grasp the current Establish the next Apply PDSA to the
direction condition target condition next target
condition !!

36
 Resources

 Video Guide - What is Value Stream Mapping?

Tutorial on Value Stream Mapping
https://asq.org/quality-resources/lean/value-stream-mapping

MIT courseware on Value Stream Mapping

https://ocw.mit.edu/courses/aeronautics-and-astronautics/16-660j-introduction-
to-lean-six-sigma-methods-january-iap-2012/lecture-videos/MIT16_660JIAP12_1-
6.pdf

37 37
 Lab 5 : Use of QC tools
PART A

1. Get familiar with random number function, rand() function from Excel to generate a random number between 0 and 1. You may visit
https://exceljet.net/excel-functions/excel-rand-function
a) Generate 500 values for X (x1 x2, x4.. x500). Similarly generate 500 values for Y (y1, y2, y3 , y500)
b) Tabulate these values in two columns of an excel worksheet!
c) Draw an appropriate histogram for both X and Y values.
d) Plot a scatter diagram for (X, Y) in Excel.
 Paste the results along with the table of 500 values generated in your pdf file and give your comments.

2. Visit https://asq.org/quality-resources/seven-basic-quality-tools
 Demonstrate use of any one of the templates from the above for application of 7 QC tools. Choose your own application area and
justify the same. Articulate how it is going to be helpful in quality. (Please note this does not include flow chart !)
3. Visit the following site
https://app.cpcbccr.com/AQI_India/.This gives pollution data on real time basis. Choose a particular site in any state (say Madhya
Pradesh etc) . Tabulate the data for one particular pollutant for its AVERAGE values ( say pollutant like PM 2.5, PM10, NO etc.) on an
Hourly basis.
 Draw a suitable chart for the chosen pollutant and write your observations.

 Lab 5 (Conl)
4. Visit the well-known dataset, Kaggle
 https://www.kaggle.com/datasets?tags=3023-India
 Choose any dataset from this and demonstrate use of any of the QC tools (this tool should be different from the
toll used in Q2 ). Comment on the findings. Your comments must be from IE point of view.

5. Take any problem area (Increased energy consumption in a hostel, drop/increase in automobile sales.). Justify
choosing your problem. Analyze the problem using Fishbone diagram. Go into as much detail as possible.

Part B
b) Visit Government of India site, https://data.gov.in/analytics#
 Explore any dataset. Explore “Dashboard” and “Visualization” feature. Comment on the same as a group and
relevance of QC tools for this
 .