Value Stream Mapping in a Manufacturing Environment ...

Value Stream Mapping in a Manufacturing Environment

February 1, 2002

Presented By:Rhonda Salzman

LAI Research Assistant

Stakeholders

Corporate Level

Business Unit

Product Strategy Product Strategy

Suppliers Suppliers Product Product DesignDesign Manufacturing Manufacturing MarketingMarketing

Requirements/Considerations/Constraints

Manufacturing System Design/Selection

Implement (pilot)

Evaluate/Validate

Rate Production

[Interpret]

[Seek approval]

DFMA, IPT3-DCEConcurrent Engineering

• VSM • Kaizen• Trial & Error• Kaikaku

- Miltenburg, - 3P, - 2D plots, - MSDD - AMSDD - design Kaizen

Manufacturing System Manufacturing System DesignDesign

Mo

dif

icat

ion

s

Fine Tune

Finalized Product Design

Make/BuyRisk-sharing Partnerships

- Analytical Tools, - Simulation Tools

Customer NeedsTechnical FeasibilityFeasible performance guarantees

Evaluation Loop

MS Salzman - 3 © 2002 Massachusetts Institute of Technology

LeanAerospace

Initiative

web.mit.edu/lean

Current Value Stream Map


LeanAerospace

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Future Value Stream Map


LeanAerospace

Initiative

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Research Motivation

ØMany instances where VSM has been seento:

ØHelp to identify wasted movements and steps

ØSee flow of the product

ØReduce lead times considerably

ØSave money!

But even with all these successes there areplenty of failures… WHY?


LeanAerospace

Initiative

web.mit.edu/lean

Key Research Questions

Ø Is there an environment where VSM isappropriate?

ØHow do you measure success of a VSM event?

ØWhat are the limitations of VSM?


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Initiative

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Is their an environment whereVSM is appropriate?

5 Environmental Characteristics that help todetermine the success of a VSM event:

Ability to Generalize

Product Complexity

System Capability

Type of Organization

Investment


LeanAerospace

Initiative

web.mit.edu/lean

SU

CC

ES

S

5 PROPOSED ENVIRONMENTAL CHARACTERISTICS

VSM not appropriate

VSM appropriate


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(1) Ability to Generalize

ØThe ability to pick a representative part

ØSimilar process steps as the majority of theproducts that go through the system

Ø Information system, Product Flow, Cycle Times, Yields

ØObsolescence of the map due to product orprocess changes.

If the map does not represent the problems ofthe area then it will solve the wrong problems.If the map does not represent the problems ofthe area then it will solve the wrong problems.

(1)


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(2) Product Complexity

ØLevel of difficulty associated withproduction of a part including serial andparallel processing.

Product complexity affects the ability todifferentiate between VA and NVA.

Product complexity affects the ability todifferentiate between VA and NVA.

(2)


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(3) System Process Capability

ØGeneralized technological ability torepeatedly make something with minimalintervention and minimal disruptions (scrap,rework, shortages).

If the steps are unreliable, there will be noability to use continuous flow.

If the steps are unreliable, there will be noability to use continuous flow.

(3)


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(4) Type of Organization and(5) Investment

ØType of organization - Level of innovativeness(change) supported on the factory floor.

Ø Investment - Availability of money and laborto make change.

Without the availability of money, labor andleadership no implementation will occur.

Without the availability of money, labor andleadership no implementation will occur.

(4)(5)


LeanAerospace

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SU

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ES

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5 ENVIRONMENTAL CHARACTERISTICS

VSM not appropriate

VSM appropriate


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Ø Types of successØ Skills & knowledge (problem solving/lean)

Ø Motivation for change

Ø Broadening perspective (of flow of the product)

Identification of solutions (and a way ofmeasuring them)

Attempt at changing the system (implementingthe solutions)

Achieving measured goal

How do you measure successof a VSM event?


LeanAerospace

Initiative

web.mit.edu/lean

SU

CC

ES

S

5 ENVIRONMENTAL CHARACTERISTICS

VSM not appropriate

VSM appropriate


LeanAerospace

Initiative

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Link between environmentalcharacteristics and success

CurrentState

CurrentState

FutureState

FutureState

ImplementationImplementationCOMPLEXITY

CAPABILITY

ORGANIZATION

INVESTMENT

GENERALIZE

VISION


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Thoughts?

ØQuestions?

ØComments?

ØThoughts?


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Survey

ØVerification of matrix is necessary

ØCurrently working on

ØCase Study Visits and Conference calls

ØWeb survey

(Need Additional Surveys!)


LeanAerospace

Initiative

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Data Correlation Options

All factors are equal

Ø Corr. should be seen for every factor and total

1 Factor or group is more important

Ø Weighted average

Any one factor can make or break it

Ø Changes depending on the situation


LeanAerospace

Initiative

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Case Studies

0

1

2

3

4

5

5 10 15 20 25

Total of 5 Categories

Su

cces

s


LeanAerospace

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Non weighted all data

0

1

2

3

4

5

0 5 10 15 20 25

Total

Suc

cess


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Weighted Correlation

WeightingGeneralize 1.179594Complexity 1.016253Capability 0.414322Organization 2.400227Investment 0

R2 = 0.2247

1

1.5

2

2.5

3

3.5

4

4.5

5

0 5 10 15 20 25

Weighted Inputs (optimal)

Su

cces

s


LeanAerospace

Initiative

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Low Hanging Fruit

0

1

2

3

4

5

6

0 2 4 6

Capability

Su

cces

s


LeanAerospace

Initiative

web.mit.edu/lean

Conclusions

Ø 5 Proposed Environmental Characteristics

ØRelationship between Characteristics andSuccess

ØSurvey can be found at

Øhttp://web.mit.edu/rsalzman/survey

ØRecommendations welcome

Value Stream Mapping in a Manufacturing Environment ...

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