Value Stream Mapping

Ali Raza Anjum Shabir Naqvi Rafay Fazal Immad Azim Waqar Khalid Hunnain Asma Paracha

What is a Value Stream?

A Value Stream is the set of all the specific actions required to bring a specific product through the three critical management tasks of any

business: problem solving, information management, physical transformation (Womack & Jones).

Value stream mapping is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer.

At Toyota, it is known as "material and information flow mapping" It can be applied to nearly any value chain (Wikipedia).

As per Six Sigma a value stream mapping is a lean enterprise technique used to document, analyze and improve the flow of information or materials required to produce a product or service for a customer. Value stream mapping is hard work because it requires looking at a process as if every step is non-value-added and is costing the organization time and resources. The Five Whys is an easy way to root out as many non-value-added steps as possible.

As per R. Keith Mobley, Principal, Life Cycle Engineering, Value stream mapping is a visual means to depict and improve the flow of manufacturing and production process, as well as the information that controls the flow of materials through the process.

value stream mapping as the fundamental tool to identify waste, reduce process cycle times, and implement process improvement.

When To Use Value Stream Maps?

for identifying the inherent waste and losses within an operation.

Use Value Stream Mapping for high-production

, low-variety product mixes with few components and sub-assembliesand dedicated equipment.

Using the Method

Planning and Preparation. Identify the target product family or service. Create a charter, define the problem, set the goals and objectives, and select the mapping team. Socialize the charter with the leadership team. Draw while on the shop floor a current state value stream map, which

shows the current steps, delays, and information flows required to deliver the target product or service. This may be a production flow (raw materials to consumer) or a design flow (concept to launch). There are 'standard' symbols for representing supply chain entities. Assess the current state value stream map in terms of creating flow by

eliminating waste. Draw a future state value stream map. Work toward the future state condition.

Seven Tools of VSM

Supply Chain Response Matrix

Process Activity Mapping

Production Variety Funnel

Quality Filter Mapping

Demand Amplification Mapping

Decision Point Analysis

Physical Structure

Supply Chain Responsiveness Matrix

It is a tool that is used to analyze inventory and lead time within an organization. The matrix is one of a number of Value Stream Mapping tools. The matrix is represented by showing lead time along the X-Axis and inventory along the y axis. The result shows where slow moving stock resides.

Supply Chain Response Matrix

Value Stream MappingProcess Activity Mapping

What is Process Activity Mapping

A method for depicting process / Information Flow Logical presentation of business Process

Identify Key steps and stake holders (who does what) Identify value adding and non value adding activities Improve the process

When we should use it

To Gain clarity of the process Who does what over what time

To understand current situation of the process Identify time constraints and other constraints Current turnaround times

If you want to move from current business process to futuristic process flow If any improvement required or not Value adding components vs non value adding

components.

Step 1 (All stakeholders on board)

Identify all the stake holders involved in process.

A team consisting of all the stakeholders

Few experienced facilitators/neutral people would be a plus

Step 2 (Awareness of the process mapping symbols )

Everyone in team should be aware of differentsymbols involved in process mapping

Option: sticky notes to get the symbol shapes

Step 3 (Key players and process)

Identify Key players.

Write them individually and place them on left of process map.

Step 4 (Concuss for start and end point)

Identify start and End Point.

Consensus between all stakeholders.

Step 5 (Enrich the process details)

Identify all the steps and stakeholders involvedbetween start and end point.

Use a time scale as well to gauge turnaround time.

Step 6 (Identify Waste)

Identify steps Value adding steps Non value adding steps

Step 7 (Future State)

Remove non value adding stepsbetween start and end point.

Create a future state

Step 8 (Implement Plan)

Implement Plan.

See the results.

It is part of the Value Stream Mapping toolkit and is used to analyzeprocesses/functions with respect to Quality.

The results of a Quality Filter Map shows how much waste is being generatedwithin an organization at each stage of the process.

Three types of Quality are measured as part of the model:Product Quality Defective Item provided to customerDefect Quality Defective item found prior to receipt by customerService Quality Defects that affect the ability of the supplier to providethe service or product to the customer

Quality failures/defects are represented as a ratio (typically parts per million)Results of Quality Filter Mapping are commonly used to feed into continuousimprovement plans.A revised map is then generated after implementation of improvement plansto measure the result of improvements.

QUALITY FILTER MAPPING

Product Variety Funnel

Illustrates how company/supply chain

operates.

Complexity to be managed.

Where to target inventory reduction.

Making changes to processing of products.

Gain overview of company/supply chain.

Product Variety Funnel

Demand Amplification Mapping

How demand changes along supply chain.

Decisions and analysis can be carried out using this info.

Manage fluctuations

Redesign value stream

Reduce fluctuation.

Demand Amplification Mapping

Decision Point Analysis

Decision point point where actual demand

pull gives way to forecast driven push.

Where products stop being made according to actual demand and are made against forecast only.

This tool shows where this point is.

Decision Point Analysis

We need to know where this point is for two

reasons:

1. Knowing where this is, it is possible to assess

processes operating downstream and upstream

from this point. Making sure they are working to the same push/pull philosophy.

2. Long-term, various scenarios to view operation of the value stream if the point is moved can be carried out.

Decision Point Analysis

Physical Structure

Understand how the industry operates.

Shows supply chain a industry level.

Brings attention to areas that may not receive sufficient developmental attention.

Physical Structure

Various tiers both in supplier and distribution area, with assembler as middle point.

Depicts number of organizations involved area of each part is proportional to how many organizations are in it.

Volume Structure

Similar to volume structure.

Area of diagram is directly linked to value-adding process (cost-adding process).

Makes it possible to analyze value adding required in final product as its sold.

Cost Structure

Data from all of the tools can be integrated.

Different tools highlight differing issues.

Therefore more accurate key priorities are highlighted

E.g. if supply chain response was used individually, its supplier lead time would be identified. However, when data from quality filter mapping is added, on time delivery would be identified.

Conclusion

Goldratts Theory of Constraints has been

seen as having a conflicting approach to lean.

Conclusion

TOC identifies potential improvements that

will make a big difference.

TOC identifies the constraints that Lean can

then target for waste reduction provides

focus.

Synergies Between TOC and Lean

Lean has useful tools and philosophy and its

techniques enable understanding of the system

and its dependencies clearly.

TOC helps to identify and quantify the

opportunities for improvement.

Both encourage pull rather than push.

Synergies Between TOC and Lean