The Lean Enterprise Value Stream Mapping

1 The Lean EnterpriseValue Stream MappingPh. Magnier - 31/01/2003 - Release Org2 Overview!What is Value Stream Mapping ?! Value Stream Mapping is a method of creating a "One page picture" of all the processes that occur in a company, from the time a customer places an order for a product, until the customer has received that product in their facility.!The goal is to depict material and information flows across and throughout all Value -Adding Processesrequired to produce and ship the product to the customer. Value Stream Maps document all of the processes used to produce and ship a product, both Value -Adding and Non- Value -Adding (Waste) processes.!Why Value Stream Map ?!During the team creation of a Value Stream Mapping , business andmanufacturing waste that occur in the processes can be easily identified.

2 !Once the Current State Value Stream Mapping is created, it becomes the baseline for improvement and for the creation of a Future State Value Stream Mapping . The FSVSM can then be used as a World Class Manufacturing implementation road Magnier - 31/01/2003 - Release Org3 Value Stream Mapping ExampleI'm placing my order for a custom places order over the internet,- 3 minutes -Producer processes order, orders material from suppliers,- 15 minutes Value -added, 2 weeks lead-time -Supplier ships material,- 2 days in-transit time -Production of custom widget,- 1 hour of Value -added, 10 days queue time -100% Inspection,- 10 minutes each -Inventory storage,packaging, shipping,- 10 minutes Value -added, 2 days queue time -Manufacturer ships widget,- 2 days in-transit time -I finally got it!

3 Why 30 days ?Customer receives product,- 30 days after order it -!Elapsed Time from Order to Delivery : 30 Days.! Value -Added Time : 1 Hour, 25 Magnier - 31/01/2003 - Release Org4 Four Steps to Value Stream and Pick the Product or Product the "Current State" Value Stream Mapping (CSVSM). the "Future State" Value Stream Mapping (FSVSM). an Action Plan to make the FSVSM the Magnier - 31/01/2003 - Release Org5 Step #1 Define Product or Product Family!Define Product, or!Define Product Family.!Products Sharing Common Processes ?!From Order Entry to Shipment.!Search for Commonality; Main Processes, Optional Processes, ..ProcessL101 CoilsBendingL101 UnitBrazingMachineLaborLaborXXXXXXXXXXXX XL101 UnitAss'yLaborXXXXXXL101 UnitPackingLaborXXXXXXP roductDescriptionTWK 530 NBL22227777-000 TWK 530 NBL-OC22227777-CDT33338888-00033338888-C DTTWK 536 NBLTWK 536 NBL-OC44447777-00044447777-CDTTWK 048 NBLTWK 048 NBL-OCProductFamily112322Ph.

4 Magnier - 31/01/2003 - Release Org6 Step #2 Create the "Current State" VSM!Define the scope of the Value Stream Map.!Walk the process from end to end.!Agree upon the symbols, icons, and data to use.!Brainstorm an initial map.!Determine missing information the VSM requires.!Make assignments to gather and create information, "Go See" the process.!Collect as much information about causes of waste as possible.!Build the Current State Value Stream Map (CSVSM).!Make a list of "Lightning Bolts" of potential Magnier - 31/01/2003 - Release Org7 Step #2 Typical VSM Symbols2 HoursOperatorInstructionsOperatorInstruc tionsSupplierKanbanPunch(13) Items10 Min Setup1 Person20 Min1 DayCustomer orSupplier PlantTrucking and/orLogisticsLightening Bolt ofOpportunityPeaopleOperatorElectronic InformationFlowInventoryPush of ProductionDataBoxKanban Exchange"Pull""Go See"5 DaysTombstoneInventory WasteInformation FlowTimeline of Value -Added ActivitiesVs.

5 Non- Value -Added ActivitiesPh. Magnier - 31/01/2003 - Release Org8 Step #2 Create the "Current State" VSMC urrent State Map 20 Days Lead-TimeInventoryInventory3 Days1Da yShe ar(13) Items10 M i n Set up1 Per s on20 M i nPunc h( 14) Items60 M i n Set up1 Per s on90 M i nDebur r(3) M i n Set up1 Per s on30 M i nClean( 14) Items45 M i nFormBr eak( 13) Items75 M i n Set up1 Per s on60 M i nAssem bl yPaint - Pr im e1 Per s on30 M i nShip pingPacka gin gTaggi ngIn voiceQA Final3 Pe opl e20 M i n4 Days1Da y1Da y1Da yOrdersRaw MaterialHardware5 Day s3 DaysNo n V / A = 9 Da y s1 Da y4 Da y s1 Da y1 Da y1 Da y= 2 0 Da y sValue Added Time as a % of Total Time in Plant =595 Minutes(20 Day) (24 Hours/Day) ( 60 Minutes/Hour)= (2 Days )

6 Technical Services(2 Days )Production PlanningSupervisor4 Day sWork OrderV/A Time =20 Min90 Min30 Min60 Min45 Min30 Min300 Min20 Min= 595 MinAir Dr y300 M i nSaw(1) Item1 Per s on15 M i nShipping ScheduleOrder Entry(2 Days )Customer2 HoursOrdersEstimatingQuoteRFQI nventoryInventory3 Days1Da yShe ar( 13) Items10 M i n Set up1 Per s on20 M i nShe ar( 13) Items10 M i n Set up1 Per s on20 M i nPunc h( 14) Items60 M i n Set up1 Per s on90 M i nPunc h( 14) Items60 M i n Set up1 Per s on90 M i nDebur r(3) M i n Set up1 Per s on30 M i nDebur r(3) M i n Set up1 Per s on30 M i nClean( 14) Items45 M i nClean( 14) Items45 M i nFormBr eak( 13) Items75 M i n Set up1 Per s on60 M i nFormBr eak( 13) Items75 M i n Set up1 Per s on60 M i nAssem bl yAssem bl yPaint - Pr im e1 Per s on30 M i nPaint - Pr im e1 Per s on30 M i nShip pingPacka gin gTaggi ngInvoiceQA Final3 Pe opl e20 M i nShip pingPacka gin gTaggi ngInvoiceQA Final3 Pe opl e20 M i n4 Days1Da y1Da y1Da yOrdersRaw MaterialHardware5 Day s5 Day s3 DaysNo n V / A = 9 Da y s1 Da y4 Da y s1 Da y1 Da y1 Da y= 2 0 Da y sValue Added Time as a % of Total Time in Plant =595 Minutes(20 Day) (24 Hours/Day) ( 60 Minutes/Hour)= (2 Days )Technical Services(2 Days )Production PlanningSupervisor4 Day s4 Day sWork OrderV/A Time =20 Min90 Min30 Min60 Min45 Min30 Min300 Min20 Min= 595 MinAir Dr y300 M i nAir Dr y300 M i nSaw(1) Item1 Per s on15 M i nSaw(1)

7 Item1 Per s on15 M i nShipping ScheduleOrder Entry(2 Days )Customer2 Hours2 HoursOrdersEstimatingQuoteRFQPh. Magnier - 31/01/2003 - Release Org9 Step #3 Create the "Future State" VSMF uture State Map "Green Cell Team" 5 Days or Less Lead-TimeShe ar( 13) Item s10 M i n Set up1 Per s on20 M i nDebur r(3) Thicks15 M i n Set up1 Per s on30 M i nClean( 14) Item s45 M i nFormBr eak( 13) Item s75 M i n Set up1 Per s on60 M i nAssem blyPaintPr im e1 Per s on30 M i nAir Dr y300 M i nShip pi ngPacka gi n gTaggi ngInvoiceQA Final3 Pe opl e20 M i n1Da yPurchasingTechnical ServicesProduction PlanningSuperv is orRaw MaterialHardware60 MinV/A Time =No n V / A =20 Min90 Min35 Min30 Min15 Min75 Min60 Min45 Min30 Min1 Day300 Min20 Min= 595 MinValue Added Time as a % of Total Time in Plant =595 Minutes= MaterialSup pli erKanbanHardwareSup pli erKanban= 1 Day, 780 Min(24 Hours/Day) ( 60 Minutes/Hour) + 780 MinGreen Cell Team, One Part = Hours Plus AssemblyShipping ScheduleWork Order RepeatNewRepeatPunc h( 14) Item s60 M i n Set up1 Per s on90 M i nSaw(1)

8 Item1 Per s on15 M i nOrder EntryEs t i ma t in gClient2 HoursOrdersQuoteRFQShe ar( 13) Item s10 M i n Set up1 Per s on20 M i nShe ar( 13) Item s10 M i n Set up1 Per s on20 M i nDebur r(3) Thicks15 M i n Set up1 Per s on30 M i nDebur r(3) Thicks15 M i n Set up1 Per s on30 M i nClean( 14) Item s45 M i nClean( 14) Item s45 M i nFormBr eak( 13) Item s75 M i n Set up1 Per s on60 M i nFormBr eak( 13) Item s75 M i n Set up1 Per s on60 M i nAssem blyAssem blyPaintPr im e1 Per s on30 M i nPaintPr im e1 Per s on30 M i nAir Dr y300 M i nAir Dr y300 M i nShip pi ngPacka gi n gTaggi ngInvoiceQA Final3 Pe opl e20 M i nShip pi ngPacka gi n gTaggi ngInvoiceQA Final3 Pe opl e20 M i n1Da yPurchasingTechnical ServicesProduction PlanningSuperv is orRaw MaterialHardware60 MinV/A Time =No n V / A =20 Min90 Min35 Min30 Min15 Min75 Min60 Min45 Min30 Min1 Day300 Min20 Min= 595 MinValue Added Time as a % of Total Time in Plant =595 Minutes= MaterialSup pli erKanbanRaw MaterialSup pli erKanbanHardwareSup pli erKanbanHardwareSup pli erKanban= 1 Day, 780 Min(24 Hours/Day) ( 60 Minutes/Hour)

9 + 780 MinGreen Cell Team, One Part = Hours Plus AssemblyShipping ScheduleWork Order RepeatNewRepeatPunc h( 14) Item s60 M i n Set up1 Per s on90 M i nPunc h( 14) Item s60 M i n Set up1 Per s on90 M i nSaw(1) Item1 Per s on15 M i nSaw(1) Item1 Per s on15 M i nOrder EntryEs t i ma t in gClient2 Hours2 HoursOrdersQuoteRFQPh. Magnier - 31/01/2003 - Release Org10 Step #4 From "CSVSM" to "FSVSM"!An initial "Kick Off" event involving all stakeholders is recommended.!Everyone can be informed on what was learned in the process, and what we will be doing about it in a non-threatening manner.!Schedule regularly meetings for all participants.!Teams need a structure to work on problem solving and to complete tasks.!Progress on goals and support for the process needs to be verified continuously.

10 !Information on progress needs to be collected and periodically reviewed with top management.!Teams created to work on various improvements may or may not include members of the Value Stream Mapping Team. The emphasis should be on putting the right members on a team to complete various projects.!..Ph. Magnier - 31/01/2003 - Release Org11 Step #4 From "CSVSM" to "FSVSM"!..!Initially, great care is needed to ensure that teams are supported with a skilled facilitator and the resources to meet the goals.!Ongoing communications on progress needs to be continuously reinforced.!Monthly "all hands" meetings along with posted information during each month can be an effective way to ensure good communicationswith all involved.!Implement a "Top-Level Report-Out" for the entire company.