Module 1

P. Alvarez and V. Martin

June 29, 2009
Learning Objectives
At the end of this module, you will be
able to:
 Sketch a basic value stream map
 Demonstrate basic value stream
analysis
 Recognize steps for process
improvement using value stream
mapping and analysis
Hot Dog Stand Process Map
11- Clean up

yes 7- 6-
9- Deliver to 8- Add Order
1- Take order Out
customer beverage OK? order
no
yes

2- 5-
In 3- Cook Hot 4- Put in a bun, add
10-Set up Another
order Dog garnishes, wrap
dog?
no

How can Sasha and Andy improve their productivity to meet their
customer demand?
Five Lean Thinking Fundamentals
 Specify value: Value is defined by customer in
terms of specific products and services
 Identify the value stream: Map out all end-to-end
linked actions, processes and functions
necessary for transforming inputs to outputs to
identify and eliminate waste
 Make value flow continuously: Having eliminated
waste, make remaining value-creating steps
“flow”
 Let customers pull value: Customer’s “pull”
cascades all the way back to the lowest level
supplier, enabling just-in-time production
 Pursue perfection: Pursue continuous process of
improvement striving for perfection
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 at their location.
 The Goal is to depict material and information
flows across and throughout all Value-Adding
Processes required to produce and ship the
product to the customer. Value Stream maps
document all of the processes used to produced
and ship a product, both Value-Adding (VA) and
Non-Value –Adding (NVA or waste) processes.
Why Value Stream Map?
 During the team creation of a Value Stream
Map (VSM), business and manufacturing
waste that occur in the processes can be
easily identified.
 Once the Current State Value Stream Map
(CSVSM) is created, it becomes the baseline
for improvement and for the creation of a
Future State Value Stream Map (FSVSM).
The FSVSM can then be used as a World
Class Manufacturing implementation road
map.
Summary :Value Stream Map (VSM)
 A tool used to improve a process by identifying
added value and eliminating waste
 A process map with process data added
 Some examples of process data
 Times: processing, wait, cycle
 Quality: number of rejects
 Inventory
 Resources
○ Number of people
○ Space
○ Distance traveled
 Whatever else is useful for analyzing the
process
Only value-added data and graphics should be used!
Steps for Creating a VSM
1. Define customer value
2. Create a “current state” map
 “Walk” the process to identify tasks and flows
 Gather data on resources, time, quality for each
3. Analyze map to determine opportunities for
improvement
 Identify value-added and waste
 Brainstorm actions to eliminate waste and add value
4. Create “future-state” map to visualize the
desired state
5. Create action plans to move towards future-
state
S&A Customer Value
11- Clean up

yes 7- 6-
9- Deliver to 8- Add Order
1- Take order Out
customer beverage OK? order
no
yes

2- 5-
In 3- Cook Hot 4- Put in a bun, add
10-Set up Another
order Dog garnishes, wrap
dog?
no

Current Demand Customer Value

50 customers Good food
100 hot dogs Faster service
S&A VSM
T=48sec

T= 11 sec 11- Clean up

T= 60sec T=10 sec
Qual= 90%
Qual= 100% Qual= 100%

yes 7- 6- T= 33sec
9- Deliver to 8- Add Order
1- Take order Out
customer beverage OK? order
T= 30sec
no
Qual= 100%
yes

2-
3- Cook Hot 4- Put in a bun, add 5-
In
10-Set up
Dog garnishes, wrap Another
order
dog?
T= 48sec
no
Qual= 100%
T= 110sec T= 44sec
T= 30sec T= 22sec
Qual= 100% Qual= 100%

Display of data collected during Lean Thinking

Value Stream Analysis
Sasha Andy

 With your team, take 10 minutes to

 Identify with colored dots the VAT (green), NVAT
(yellow) and WT(red) value stream activities
 Calculate the total
○ Value added time
○ Non value added time
○ Wait time
 Calculate the total time Sasha and Andy spend on a
single order
 Be ready to report your answers to the class
 S&A Takt And Cycle Times
50 customers Open from
100 hotdogs 10 AM to 2PM
11- Clean up

yes 7- 6-
9- Deliver to 8- Add Order
1- Take order Out
customer beverage OK? order
no
yes

2- 5-
In 3- Cook Hot 4- Put in a bun, add
10-Set up Another
order Dog garnishes, wrap
dog?
no

Available time 4hrs x 60min/hr

Takt time= = = 4.8min = 288 seconds
Customer demand 50 customers
Cycle time = 446 sec = 7.43 minutes
Summary –
S&A Value Stream Analysis (VSA)
 Current production (50 customers) is a little
below current capacity (64 customers) of
Andy and Sasha
 Process improvement needed to meet growing
demand
 Andy and Sasha are both underutilized
 But utilization is not balanced between them
 Cycle time of 7.43 min per customer too long
 Should be able to shorten cycle time to meet
demands of customers for faster service

Bottom line Sasha and Andy should implement process

improvement for week 3 to meet growing demand!
Improvement Brainstorm
 Help Sasha and Andy figure what to
improve
 How can utilization be improved?
 How can cycle time be reduced?
 What has to be done to serve 75
customers?
 What has to be done to serve 100
customers?
 Spend 10 minutes with teams and
then discuss with class
Why is VSM a Useful Tool?
 Helps visualize interactions and flows
 Shows linkages between information and
product flows
 Provides a common language for talking
about a process
 Helps to identify:
 the constraint(s) - any resource whose
capacity is less than customer demand;
 wastes as well as their sources
Tips for Creating a VSM
 Involve entire team
 Actually walk the process - follow the
material and information through the
process, starting at the beginning
 Use Post-it notes and butcher paper and
draw out later
 Use symbols or icons that are meaningful
to the process but common enough to be
understood by all involved
VSM Symbols
Types of VSM
 Traditional VSM - most common type in LEAN
 Swim-lane VSM –well suited to admin. tasks
 Shingo VSM – different approach but not as
clear as traditional – more complex to show
metrics
 Castle VSM– very much like a spreadsheet with
data. Not visual, harder to spot improvement
areas quickly.
 Listed VSM – for simple value streams and
highly automated repetitive streams, difficult to
interpret
 And more… can you spot the type?
Samples of VSM’s

 Take note of the ones labelled “future

state” .
 Can you figure out what this means?
 This will lead us to module 2.