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VSM Assignment 1

1. Value stream mapping (VSM) is a lean tool that maps the flow of materials and information as a product moves through a process from raw materials to the final customer. 2. The document describes using VSM to analyze the process of jacket production at a garment factory, identifying issues like long lead times and excess inventory. 3. Creating a future state VSM, the factory reduced inventory between and within departments, cutting production lead time from 58 to 31.4 days and improving value-added time.

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459 views11 pages

VSM Assignment 1

1. Value stream mapping (VSM) is a lean tool that maps the flow of materials and information as a product moves through a process from raw materials to the final customer. 2. The document describes using VSM to analyze the process of jacket production at a garment factory, identifying issues like long lead times and excess inventory. 3. Creating a future state VSM, the factory reduced inventory between and within departments, cutting production lead time from 58 to 31.4 days and improving value-added time.

Uploaded by

Naila
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NATIONAL INSTITUTE OF FASHION TECHNOLOGY

LEAN MANUFACTURING

ASSIGNMENT 1

TOPIC – VALUE STREAM MAPPING

SUBMITTED TO: -
MR. JAYANT KUMAR
ASSOCIATE PROFESSOR,
NIFT PATNA

SUBMITTED BY: -
NAILA FIRDAUS (BFT/19/481)
VALUE STREAM MAPPING

Value stream mapping (VSM) is defined as a lean tool that employs a flowchart
documenting every step in the process. Many lean practitioners see VSM as a
fundamental tool to identify waste, reduce process cycle times, and implement
process improvement.
VSM is a workplace efficiency tool designed to combine material processing
steps with information flow, along with other important related data. VSM is
an essential lean tool for an organization wanting to plan, implement, and
improve while on its lean journey. VSM helps users create a solid
implementation plan that will maximize their available resources and help
ensure that materials and time are used efficiently.

ANALYZING THE VALUE STREAM


 Planning tool to optimize results of eliminating waste.

Current state VSM + Lean Basics = Future State VSM

VALUE STREAM PROCESS STEPS


1. Prepare
2. Gather Data and Develop Current State
3. Develop Future State & Action Plan
4. Execute Plan
5. Align

PURPOSE AND BENEFITS


The primary purpose of creating a value stream map is to show where to
improve your process by visualizing both its value-adding and wasteful steps.
 With the help of VSM, you can identify wasteful activities.
 VSM provides a clear view of the work process - where value-adding and
non-value-adding stages form. A good practice is also to visualize how
long it takes for work items to go through them.
 VSM highlights the current workflow and brings the focus on future
improvement

VSM TEMPLATE AND SYMBOLS

Fig: Common VSM symbols


Key areas on the map are:
 The upper-right corner for customer information
 The upper-left corner for supplier information
 The top half of the paper for information flow
 The bottom half for material (or product) flow
 The gutters on top and bottom to calculate value added and nonvalue
added time.

CURRENT SCENARIO AT APPAREL MANUFACTURING SHOPFLOOR

Apparel manufacturing involves raw material (fabric) cutting, sewing, finishing


and finished goods storage. If we summarize typical issues that surface in the
factories today, the list would be something like this:

• Piles of pieces waiting to be reworked.


• Lot of delays due to larger lots.
• No standard WIP (Work in Progress) maintained on the floor.
• Stocks misplaced in stores and shopfloor.
• Overproduction (goods made too early or excess of what is required).
• High retrieval time experienced in raw material and finished goods
stores.
• High turnaround time (order placement to payment cycle is long).
• Seven types of wastes seen in all departments.
• Poor first time through per cent (FTT%).
• Process delays due to lack of synchronization between preparatory
sections.
• Lack of uniform understanding of what constitutes a good product.
• Capacity constraints induced by skill variability and individual variability.
• Longer set-up times between product changeovers.
• Challenges of multi-skilling.
• Machine breakdowns/repair delay.
VALUE STREAM MAPPING FOR JACKET PRODUCTION IN GARMENT INDUSTRY

Value Stream Mapping


The steps used in Value Stream Mapping are:
• Identify the product family.
• Draw the current state map.
• Draw the desired state map.
• Identify projects and chalk out a project plan to eliminate waste.

SITUATION – To develop the current state VSM and Future State VSM of all the
process involved in the manufacturing of a Jacket in the garment industry. The
processes involved are:
 Keeping the fabric in the fabric store
 Cutting
 Sewing parts
 Sewing Final Assembly
 Finishing
 Warehouse and
 Work in Progress between sections and within sections
The objective is to improve the process by visualizing both its value-adding and
wasteful steps.

In this, we will draw a current state VSM for a typical jacket product family
with the daily customer demand of 500 pieces and shipment occurring once a
week. The factory works for 6 days in a week and one container ships 3,000
pieces. Daily working hours are 8 hours (480 minutes) excluding lunch and tea
breaks.
Before we analyse the current state Value Stream Map, we compute the ‘Takt
Time’ wherein:
Takt Time = (Available time in minutes per day)/daily customer demand
= 480 mins/500 pcs = 0.96 mins = 57.6 secs
We complete the VSM by computing the overall value add time, production lead
time and also identifying waste and bottleneck operations.

Fig: Current State VSM in Jacket line


We complete the VSM by computing the overall value add time, production
lead time and also identifying waste and bottleneck operations.

The current state VSM as shown in Figure A generates some interesting


insights:
• The production lead time from the beginning of the store to the shipping
of the container for one lot of 500 jackets is 58 days.

• The activities are categorized into Value Add (VA), Essential Non-Value
Add (ENVA), and Non-Value Add (NVA) activities. The Value-Add Time
was found as only 116.3 minutes, this is only 0.41% of total time (58 days
x 8 hours x 480 minutes).

• The reason for longer lead time is due to the Work in Progress between
sections, within sections and inventory in raw material (fabric stores)
and finished goods.

• There is no capacity constraint as the Cycle Time is lower than the Takt
Time in all sections.

• Four shipments are effected in a month.

• Machine reliability is only 90% in the sewing final assembly section.

• Inventory in the fabric stores is very high: one month (26 days).

• In sewing and cutting, the alteration (rejection) rate is very high.

• The changeover time is high in sewing: 3 hours

VSM is a very powerful tool used to identify waste in the entire value stream,
defined as a set of activities required to convert raw materials into finished
goods. A simple Material and Information Flow Analysis Diagram traces the
path of production and identifies key waste elimination opportunities.

Using the Value Stream Map also helps us understand the impact of reducing
inventory on the organization.
The management organizes a brainstorming session to create a Future State
Value Stream Map as shown in Figure B. They take a decision to improve
delivery times on an immediate basis by rationalizing the WIP and reducing
inventory across the entire path of production. Kaizen bursts with cross-
functional teams organized on themes like:
1. Improving supply chain efficiency.
2. Creating supermarkets between major departments or wherever a
handoff takes place and installs a pull system.
3. Define standard WIP between departments.

Fig: Future State VSM in Jacket line


The Future State VSM as shown in Figure B throws some interesting
observations:
1. Production lead time has reduced from 58 days to 31.4 days only by
reducing the inventory between and within the departments.
2. The inventory within departments has been reduced from 41 days to 26
days by proposing strategies as summarized Table 1.
3. The inventory between departments has been reduced from 17 days to 5.4
days by proposing strategies as summarized in Table 2.
The overall benefits of reducing inventory in the case study are:

 Reduction of production lead time from 58 days to 31.4


 Improvement in Value Add (VA) Time from 0.41% to 0.77%
(an improvement of 92.5%).
 Reduced NVA by reducing the stock by 26.6 days.
 Faster response to problems as there is no inventory to fall back upon
(like reducing mean time to repair a machine).
 Reduction in quality issues.
 Better visual management as there is no confusion in locations of WIP
on the floor for any order.
 Utilizing capacity only to produce orders that are to be shipped and not
producing orders that are required far into the future.
 Reduced overproduction (reducing goods that are produced too early
and those that are not required).

Efficiency after VSM

Production Lead Time at Current state VSM = 58 days

Production Lead Time at Future state VSM = 31.4 days

Improvement in days through VSM = 58 – 31.4 = 26.6 days

Efficiency = (Improvement/ Production Lead Time at Current state VSM) *100

= (26.6/58) * 100

= 45.8%

Thus, the process becomes 45.8% efficient by using Value Stream Mapping and
Lean Basics.

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