What is Value Stream ?

 “Value stream” is all the steps,both value added and

non- value added, required to bring a product from the
raw material through to the customer.

VALUE STREAM Customer

Process 1 Process 2 Process 3

Raw Material Finished Product

Process Kaizen V/S System Kaizen

FLOW KAIZEN
(Value Stream Improvement)

PROCESS KAIZEN
(Elimination of Waste)

• Flow kaizen focuses on material and information flow

(which require a high vantage point to see)
• Process kaizen focuses on people and process flow.
What is Value Stream Mapping ?

 Another Tool for Lean Manufacturing …..

 Value Stream Mapping (VSM) is one solution to the

problem of understanding and improving Value
Streams
 Follow a product’s production path from beginning

to end, and draw a visual representation of

every process in material and information flows.
VSM Definitions

 Cycle Time : How often a part or product is actually

completed by a process, as timed by observation.
Also, the time it takes a technician to go through all of
their work elements before repeating them.

 Lead Time : The time required for one piece to move

all the way through a process or value stream, from
start to finish.

 Process Time : The time a product is actually being

worked on in a machine or work area

 Takt Time : The Rate of customer demand

VSM Levels

Process Level
BEGIN HERE

Single Plant
(Door to Door)

Multiple Plants

Across Companies
VSM Loops

DURACELL INDIA MANUFACTURING

MN1 5 0 0 CURRENT S TATE MAP - 3 1 /0 7 /0 1

Supplier
Customer
BEGIN HERE
PRODUCTION
CONTROL
MATERIALS
PLANNING

S UPPLIER

3 .5 LACKS/DAY

POWDER CONSOLE CELL AGING LASER WELD PACKAGING S HIPPING

MAKING MAKING ASS Y. & LABEL K &BLIS TER STAGING
5 12 12 15 6
1 6 9 9 18 15
POWDER CONSOLE BARE LABEL LED FG
2 -SHIFT 3 -SHIFT 3 -SHIFT CELL 5 -DAYS 3 -S HIFT CELL 3 -S HIFT STORES

PROD. LEAD
TIME= 5 0 .2 7 DAYS
4 5 -DAYS 0 .7 -DAYS 0 .5 7 -DAYS 1 -DAY 1 -DAY 1 -DAY 1 -DAY
PROCESS
TIME= 7 5 8 0 MIN.
2 5 5 MIN. 1 4 .5 MIN. 2 8 .5 MIN. 7 2 0 0 MIN. 4 0 MIN. 4 2 MIN.

Inhouse Loop
Supplier
Loop Raw Material
TECHNICIANS

TEMP. FG Store Customer

Store Loop
Initial VSM Steps

Product

Current State Map

Future State Map

Work Plan & Implementation

What is Current State Map?

• Understanding how the shopfloor currently operates.

• Material and information flows (currently to focus
on material flow only).
• Draw using icons.
• Start with door to door (inhouse loop)
VSM Icons
Material Represents Notes

Assembly
Manufacturing Process One process box equals an area of
flow. All processes should be
labeled. Also used for departments,
such as Production Control

Outside Sources Used to show customers, suppliers,

XYZ and outside manufacturing
Corporation processes.

Inventory Count and time should be noted

I
300 pieces
1 Day
VSM Icons
Material Represents Notes

Mon.
+ Wed. Truck Shipment Note frequency of shipments.

Movement of finished
goods to the customer

Technician Represents a person viewed from

above

Temp. Represents a person viewed from

above
What makes Value Stream Lean

 Waste
 The elements of production that add no value to
the product.
 Waste only adds cost and time.
 Waste is really symptom rather than root cause of the
problem.
 Waste points to problems within the system (at both
process and value stream levels).
 We need to find and address causes of waste.
Over Production – The Most Significant
Source of Waste

 Over production
= Making more than is required by the next process
= Making earlier than required by the next process
= Making faster than required by the next process

Inventory Time
Extra Time

A B
Waiting Defects Waiting
Motion Time Time
Processing Waste
How to Avoid Over Production

 Improve Linearity Index

 Focus on consistency of production
 Produce at a steady rate
 Produce to requirement
 Do not supply more than “required quantity” to the
customer – to prevent him from over producing
 Improve equipment Utilization to avoid excess
stocking to cover up for exigencies.
Characteristics of a Lean Value Stream

Guideline # 1 : Produce to your takt time – Synchronizes space

of production to match pace of sales.

takt time is calculating by dividing the customer demand rate per

shift (in units) in your available working time per shift (in seconds).

Your available work time per shift

takt time =
Customer demand rate per shift
27,000 seconds
Example : = 59 seconds
455 pieces
Characteristics of a Lean Value Stream
Guideline # 2 : Develop Continuous Flow Wherever Possible

Material A Inventory

Inventory B Inventory

Material A B C Finished
Product

Inventory
C Finished
Product

ISOLATED ISLANDS CONTINUOUS FLOW

What is Future State Map ?

• It is the mapping of how we would like the shopfloor to

operate about 18 months from now.
• It is a pictorial representation of “what-can-we-do-with-
what-we-have” .
• It is a representation of our “lean value stream” of the
future.
How Do We Change Our
Current State Map ?
Answer the following questions :

• Question # 1 :Are we producing to takt time?

• Question # 2 : Where can we introduce continuous flow?
• Question # 3 : Should we work on “pull” systems or “push”
systems?
• Question # 4 : Where can we use pull system?
• Question # 5 : What process improvements will be
necessary for the value stream to flow as the future state
design describes? (This is the place to note any equipment
and procedural improvements that will be necessary, such
as reducing changeover time or improving machine
uptime.
Guidelines for Making
Future State Map

• There must always be a Future State Map – i.e.

continuous improvement at the value stream level
• When the Future State Map becomes a reality, a new
Future State Map should be drawn.
• Don’t get hung up trying to make all the details on the
Future State Map perfectly correct.
• Fine the Future State Map as the implementation
progresses.
Supermarket Pull system

1. Customer process goes to supermarket and withdraws what it needs when

it needs it.
2. Supplying process produces to replenish what was withdrawn.

“Production” KANBAN “Withdrawal” KANBAN

Supplying Customer
process process
New Withdrawn
product product

SUPERMARKET
Purpose: A way to control production between flows Controls production at
supplying Process without trying to schedule.
Try to schedule only 1 Point

Process 1 Process 2 Process 3 Process 4

Customer

SUPERMARKET

Process 1 Process 2 Process 3 Process 4

Customer
FIFO FIFO

SUPERMARKET