What is VSM

7/24/2019 What is VSM

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What is Value ?

• A capability provided to a

customer - of the highest quality

- at the right time

- at an appropriate price,

What is ValueStream ?

• A Value Stream includes allelements (both value addedand non-value added) thatoccur to a given productfrom it’s inception throughdelivery to the customer.

As defned by the customer, “Value”is what the customer is wiling to pay

or.



Value Added vs on ValueAdded

• ot all activities addvalue to the product .

• !nly those "hich addsutility to the

product#service fromcustomer’s perspectiveare value added (VA)activities.

• on value added

activities (VA) are tobe eliminated,simpli$ed, reduced orintegrated.



VS ! the "ean #rocess

• Value Stream%apping is themaiden step

to"ards adoptionof the &ean'rocess.

• VS% is a tool to

identify the "asteand suggest stepsto move to thefuture #lean statefrom the current



+hat is VS%

• Value Stream %apping (VS%) is a hands on process to create a graphicalrepresentation of the process, material

information /o"s "ithin a value stream.• Special type of /o" chart that uses

symbols 0no"n as 12he language of &ean3to depict and improve the /o" of inventory

information.• 2oyota refers to this process as 1%aterial

4nformation 5lo" %apping3



+hat is Value Stream Analysis

• 4t is a planning tool to optimie results of eliminating"aste. 2he steps include 6

• Select the product#service.

• 4dentify the current state VS% "hich describes the

process as it is today• Apply &ean 2echniques to reduce the "astes.

• 7reate future state VS% "hich describes the ideal statebased on &ean 'rinciples.



'urpose of VS%

• 'rovide optimum value to the customer through acomplete Value creation. 'rocess "ith minimum"aste in 6

- 8esign (concept to customer)

- 9uild (!rder to delivery)

- Sustain (in use through life cycle to service)

• 'rovide the means to see the material, process

and information /o"s.• Support the prioritiation of continuous

improvement activities of value stream

• 'rovide the basis for facility layout.



'rocess %apping

• 2he map lists every step that is involved in thedelivery of the product or services.

• 'rocess mapping involves developing a simple

visual picture, or map, of a process.• 2rac0s "or0/o" and provides information on

resource allocation.



+hy to map the process

• 'rocess maps bring clarity to theprocess.

• Allo"s to start the process ofthin0ing about improvements.



'rocess %apping vs. VS%

#rocess apping

• !nly sho"s thesequence of activitiesin the process.

• o indication of timeor delay bet"eenprocesses.

• o identi$cation ofvalue added or nonvalue added

VS• Sho"s the /o" of

materials andinformation in aprocess.

• 4ndicates lead timeand cycle time foreach process.

• Also identi$es eachstep as value addingor on value adding.



&ean management 2he : &ean'rinciples

• $efne Value % Specify value from the customer perspective .

• ap Value Stream& 4dentify the value stream for eachproduct or service and challenge all of the non value addingsteps ("astes) currently necessary to create and deliver thisproduct or service. Add nothing than value.

• 'reate (low % %a0e the product or service creation anddelivery process /o" through the remaining value addedsteps.

• )stablish #ull % 4ntroduce pull bet"een all process steps"here continuous /o" is possible.

• #ursuit #erection & %anage to"ard perfection so that theno of steps and the amount of time and information needed tocreate and deliver this product is optimied.



VS% 2he ; "astes

• +aste elimination is one of the most e<ective "aysto increase the pro$tability of the business.'rocesses either add value or "aste to theproduction of a good or service. 2he seven "astes

originated in =apan "here they are 0no"n as1muda.3

• ; "astes "aiting, inventory, motion, over-processing, transportation, over-production,

defects.• VS% focusses primarily on "aste elimination due to

inventory, "aiting, over-processing and over-production.



a ue ream app ng -*>ample

)lapsed time rom order to deli*ery + 30 days

Value added time + 1 hr, 25 minutes



VS% 8ef 9ene$ts

• 4t is a business planning tool.

• 4t is a tool to manage the change process.

• 4t forms the basis of a transformation plan.

• 4t is a communication socialiing tool.

• 4t provides a common language to tal0 about the processes.• 4t sho"s the lin0age bet"een material /o" and the

information /o".

• 4t is a po"erful tool in identifying "aste, so it can bereduced or eliminated, contributing to improved customer

satisfaction.• 4t helps us see and focus on /o" "ith a vision of an ideal or

improved state.

• *nabling broad participation in shaping future state.



? types of VS%

• (ull Value Stream ap

- A good or service is requested by and delivered toan e>ternal 7ustomer.

• Support Value Stream ap

- Sometimes called value enabling value stream

- *>amples include annual budgeting process @recruiting, hiring and on boarding process@ andperformance revie" process.

•Value Stream anagement

- 4n general a part of a (ull Value Stream, egproduct design, ne" product introduction, and servicedelivery.



Steps for 8eveloping a VS%

• 8evelop a 7harter

• *stablish a team

•

8ocument 7urrent State• Analye 7urrent State

• 8esign 5uture State

•

7reate 2ransformation 'lan



VS% 8evelop a 7harter

2he charter serves as a planning, communication,alignment, and consensus building tool.

ey elements of a VS% charter include 6

• Scope Value Stream - Speci$c conditions 8emand

ate 2rigger 5irst Step &ast step 9oundaries &imitations 4mprovement 2ime 5rame - BB

• 7urrent State 4ssues 9usiness eeds

• %easurable 2arget 7onditions

• 9ene$ts to *>ternal 7ustomers 9ene$ts to 9usiness• Accountable 'arties

• &ogistics



VS% 8e$ne 'roduct#Service 5amily

• A product or service family is agroup of products or services thatpass through similar processing steps

in the value stream, as thus can beanalyed using the same valuestream map.



VS% *stablish the 2eam

VS% teams must include leaders "ho can in/uence andauthorie change along the value stream to be improved.

• )ecuti*e Sponsor % An individual to oversee the "holematter.

•

Value Stream 'hampion-wner % An individual tooversees a signi$cant part of the event and is accountablefor performance of the entire stream.

• "ogistics 'o&ordinator % An individual responsible formaintaining supplies ful$lling requirements of the team

• Attendees ! /eam embers& 'articipants for dailybrie$ng sessions to ensure common understanding of thecurrent state.



VS% 8ocument 7urrentState

• 8epict the 7ustomer requirements CCC

- 5ollo" the /o" of the product fromshipping to the ra" material stage.

- 8ra" the processing steps used toprocess, move and store the product

- 4nput the process and inventory data

- 8ra" the information /o"- 8ra" a timeline depicting the lead and

processing time



VS% 2ime %etrics8e$nitions

'hangeo*er /ime 0'1

• 2he time it ta0es to changeover (to reset or change equipment) fromone part to another(7hange !ver %atri>).

2ueue /ime 02/1

• 2he time bet"een sub-processes that the part gets shuDed around or

sits around "aiting for someone to "or0 on it.3p /ime 03/1

• 2he ratio of the actual available production time of a process to theavailable "or0ing time. *>pressed as a percentage, uptime is calculatedby dividing actual available production time by the available "or0ingtime.

Wor4ing /ime 0W/1• 2o calculate +or0ing time deduct brea0s, meetings, beginning of shift

set up, end of clean up, planned maintenance, and other planned non"or0ing time. 8o not deduct unplanned do"ntime or changeovers.



VS%- 7ommon 5indings

• 7ommon on Value Added activities andimprovement oppurtunities include 6



VS% 5ocus of 5uture State

8uring the future State 8evelopment Activity, the teamshifts from 5act $nding(current state) to the discovery,innovation and creativity phase (future state).

At the macro level, there are ? considerations to address

"hen designing the future state for a value streammap 6

• 8etermining the "or0 that adds value and should bedone.

•

%a0ing the 1right3 "or0 /o".• %anaging the "or0 to achieve continuously improved

performance (time, cost, quality, safety)



VS% Adding +or0 *<ort

• 4mproving an organiation’s value stream may sometimes meanadding ne" process steps or activities to the e>isting value stream.

• VS% improvements almost al"ays require a holistic approach andoften requires e>perienced personnel.

• Some of the measures "hich can be implemented include 6

- "ean Standard Wor4 7ombining Euman movement elementsof a Fob in the most e<ective sequence.

- #lanned 'ycle /ime % the required production rate to satisfycustomer demand allo"ing for scrap, re"or0, do"ntime, change-overs other ineGciencies.

- 5S Visual Wor4place & reduction of "aste(mainly defectsmotion, "aiting transportation) results in lo"er costs.

& 6anban system & lead to an improved process /o", reducedscheduling activities and can result in signi$cant inventory reduction.



VS%- %anaging the "or0

• 2he future state design development shouldfocus on the stabiliation and sustainability of theimplemented changes and improvements.

• 7ontinuous performance revie" and improvements

need to be imbedded into the management of thevalue stream.

• *very value stream needs atleast ? to : relevant ,accurate and precise ey 'erformance 4ndicators

('4’s) that are trac0ed on a regular basis.• 7ommon indicators include 2ime, 7ost, Huality,

Safety, and Satisfaction#%orale.



VS% 2ransformation 'lan*>ecution

• 5inal approval of 2ransformation 'lan "ithin one"ee0 of $nal brie$ng session

• *>ecutive sponsor and Value Stream7hampion#!"ner lead the socialiing of the future

State %ap 2ransformation 'lan.• Value Stream 7hampion#!"ner

- drives overall implementation change initiative,

- support "or0 teams "or0ing on realiing the

future state map, - troubleshoots roadbloc0s obstacles, and

- runs scheduled revie" meetings.



eferences

• http6##""".slideshare.net#fadler#op-e>-vsmtrainingmoduleqidI?JbK?f;L-MLLe-LcNb-NdOc-;bMOP??PJfMKv

IdefaultbIfromQsearchIL• http6##""".slideshare.net#aren%arti

nRroup#value-stream-mapping-case-

studiesqidI?JbK?f;L-MLLe-LcNb-NdOc-;bMOP??PJfMKvIdefaultbIfrom

QsearchI;

http://www.slideshare.net/fadler/op-ex-vsmtrainingmodule?qid=38b63f74-244e-4c9b-9d1c-7b2103308f26&v=default&b=&from_search=4








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