AGILE AND LEAN MANUFACTURING
IM-515
LECTURE – 5
Dr. M Fahad
Associate Professor (IMD)
Value Stream
“A value stream involves all the steps in a process,
both value added and non value added, required to
complete a product or service from beginning to
end”
Whenever there is a product or service for a customer, there is
a value stream.
Value Stream Mapping (VSM)
Value Stream Mapping (VSM) is a set of methods to
visually display the flow of materials and
information through the production process.
VSM
One page picture of all the processes that occur in a company
from the time customer places an order for a product, until the customer
has received that product in their facility.
Documents all of the processes used to produce and ship a product
both Value-Adding and Non Value-Adding (waste) processes.
The goal is to depict material and information flows required to
produce and ship the product to the customer.
VSM
VSM
Value Stream A
Value Stream B
Value Stream C
Value Stream D
Time
VSM
Value Stream C
Order Cash
Value Adding
Non-Value Adding
VSM: Core uses
Often used in process cycle-time improvement projects since it
demonstrates exactly how a process operates with detailed timing of
step-by-step activities.
Also used for process analysis and improvement by identifying and
eliminating time spent on non value-added activities.
VSM: Steps
1. Define and pick the Product or Product family.
2. Create the ‘Current State’ VSM (CSVSM).
3. Create the ‘Future State’ VSM (FSVSM).
4. Develop an Action Plan to make the FSVSM the CSVSM.
Step No. 1: Define Product or Product Family
Step No. 2: Create CSVSM
Steps:
Define the scope of the VSM
Walk the process form End to End
Work from the customer
Agree upon the symbols, icons and data to use.
Brainstorm an initial map
Determine any missing information the VSM
requires
Step No. 2: Create CSVSM
Supplie Customer
r 300/Day
Draw Supplier symbol in the Draw customer symbol in the
upper left corner of page upper right corner of page
Step No. 2: Create CSVSM
Supplier Customer
300/Day
Step No. 2: Create CSVSM
Process #1 Process #2 Process #3 Shipping
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
Draw a process box for each major processing step where material
is flowing
Draw a data box under each process box to include information
about the step
Step No. 2: Create CSVSM
Process #1 Process #2 Process #3 Shipping
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
Data Box Contents:
Cycle time Batch Size Shifts
Change Over Time Uptime Operators
Scrap Rate
Step No. 2: Create CSVSM
Supplier Customer
300/Day
Process #1 Process #2 Process #3 Shipping
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
Step No. 2: Create CSVSM
I
The Inventory symbol is used to show raw material, work
in process and finished goods in a value stream
Step No. 2: Create CSVSM
The Push Symbol is used when The Pull Symbol is used when
product is produced in anticipation product is produced in reaction to
of demand demand
Step No. 2: Create CSVSM
Supplier Customer
300/Day
Process #1 Process #2 Process #3 Shipping
I I I I
600 300 300 300
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
Step No. 2: Create CSVSM
Production Control
Draw the production control box on the top centre of the page
This box represents the scheduling department.
Note any systems used
Step No. 2: Create CSVSM
Production Control
Supplier Customer
300/Day
Process #1 Process #2 Process #3 Shipping
I I I I
600 300 300 300
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
Step No. 2: Create CSVSM
Weekly
The Truck Symbol is used to indicate the mode of transportation for
shipping and receiving goods.
Other transportation symbols include boat, plane and train.
The frequency is noted.
Step No. 2: Create CSVSM
Production Control
Supplier Customer
300/Day
Weekly Daily
Process #1 Process #2 Process #3 Shipping
I I I I
600 300 300 300
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
Step No. 2: Create CSVSM
This symbol is used to show This symbol is used to show
information flow. electronic information flow.
Include information about Include information about
frequency, forecasts or schedules frequency, forecasts or schedules.
Step No. 2: Create CSVSM
Quarterly
Weekly
Production Control Forecasts
Order Customer
Supplier Weekly
Order 300/Day
Daily Schedule Daily
Weekly
Process #1 Process #2 Process #3 Shipping
I I I I
600 300 300 300
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
Step No. 2: Create CSVSM
Lead time for each inventory symbol is This box shows the sum of Lead Time
captured. and Processing (Value adding) Time
LT = Inventory / Customer Daily Demand
10 Days 5 Days 3 Days 4 Days 22 Days
11 sec 4 sec 12 sec 27 sec
Draw the time line at the bottom of the page from left to right.
Time for each process is captured on the time line.
Step No. 2: Create CSVSM
Quarterly
Weekly
Production Control Forecasts
Order Customer
Supplier Weekly
Order 300/Day
Daily Schedule Daily
Weekly
Process #1 Process #2 Process #3 Shipping
I I I I
600 300 300 300
1 1 1
CT: 8 sec CT: 14 sec CT: 11 sec
Shifts: Shifts: Shifts:
1 1 1
8 sec 14 sec 11 sec
2 Days 1 Day 1 Day 1 Days 34 sec
5 Days
Step No. 3: Create FSVSM
Target 3 – 9 months
Design considerations:
Eliminate steps / handoffs
Merge steps
Create parallel paths
Implement pull if flow isn’t possible
Reduce / eliminate batches
Improve quality
Create standard work
Create an organized, visual workplace
Eliminate unnecessary approvals / authorizations
Stop performing nonessential (NVA) tasks from the customer’s point of
view
Co-locate functions based on flow; create teams of cross-functional staff
Balance work to meet takt time requirements
Eliminate All WASTE
Step No. 3: Create FSVSM
What Makes a Value Stream ‘LEAN’ ?
Following are the characteristics of a Lean Value Stream:
Produce to your Takt time
Develop continuous flow wherever possible
Use supermarkets to control production where continuous flow does
not extend upstream
Try to send the customer schedule to only one production process
Create an “initial pull” by releasing and withdrawing small, consistent
increments of work at the pace maker process (Level production
volume)
Step No. 3: Create FSVSM
Step No. 4: from CSVSM to FSVSM
An initial Kick-Off event involving all stake holders
Schedule regular meetings
Develop a structure/mechanism to complete tasks and
solve problems
Ensures Teams are supported with skilled facilitators
and any other resources to meet the goals
Communication regarding ongoing improvements needs
to be continuously reinforced
Place the three VSMs at a conspicuous place within the
company
Implement a top level report out for the entire company
VSM: Benefits
1. Common Language
2. Focuses Continuous Improvement
3. Implementation Plan
4. Defines Flow
5. Qualitative and Quantitative
VSM: Case Study
VSM: Case Study
VSM: Case Study
VSM: Case Study
