LEAN LESSONS Value Stream Mapping—an Introduction by Tony Manos alue stream mapping (VSM) process steps from order entry to easy ways to learn a language that can be an extremely powerful delivery. anyone in your organization can V tool, combining material pro- The value stream in VSM is the understand—a key element when cessing steps with information flow as point at which value is actually added communicating with process maps. well as other important related data. to the product or service by changing Building a VSM offers detail that goes VSM is arguably one of the most pow- beyond the amount of information erful lean tools for an organization you can relay with any standard flow- wanting to plan, implement and chart. improve on its lean journey. This tool A tool that combines allows users to create a solid imple- material processing Value Stream Scope mentation plan that will make the Understanding the scope of the most of their available resources. steps, information flow. value stream under examination is an For a lean journey, think of VSM as important place to start the VSM task. the launch pad to begin identifying Think of the scope as the door to door and improving a process family. VSM the market form or function to meet process for a facility level map. A is about sparking change—declutter- the customer’s needs. For example, departmental or interdepartmental ing the process of the nonessential value adding activities can be things practice is considered a process level activities that don’t add value but like: machining, assembly, welding, map. When multiple plants, cus- waste time and resources. drilling, folding, painting and so on. If tomers or suppliers are included, an VSM, as it is known today, stems you are not adding value, you are extended level map is created. from Toyota Motor Co.’s material and probably adding muda, (the Japanese Consider an extended level map as information flow diagrams.1, 2 In its word for waste). the view of the values stream at 60,000 most basic form, VSM shows the Pictorial representations of VSM are feet, the facility level map at 30,000 FIGURE 1 Process Family Matrix Example 1. Quoting 3. Credit review 4. Purchasing preparation 6. Tool 7. Scheduling 12. Cut to length 13. Slitting 17. Press break 18. Stamping Process family 2. Order entry 5. Order review 8. Receiving 9. Perforating 10. Leveling 11. Shearing 14. Radius rolling 15. Punching 16. Embosing 19. Outside service 21. Shipping 20. Packaging Name 150 80,000 lb/mo X X X X X X X X X X X 1 Coil to coil ORM005 80,000 lb/mo X X X X X X X X X X X 1 Coil to coil 020 AI GLD 5,000 pcs/mo X X X X X X X X X X X X X 2 Ornamental 020 AI Stuco 1,000 pcs/mo X X X X X X X X X X X X X 2 Ornamental 73518 400 pcs/mo X X X X X X X X X X X X X X X 3 Fab flat Ballast 300,000 lb/mo X X X X X X 4 Ballast Nordham 100 pcs/yr X X X X X X X 5 Pass through 611402401 250 pcs/mo X X X X X X X X X X X X X X X 6 Fab form VT4880 50 pcs/mo X X X X X X X X X X X X X X X 6 Fab form EAW435? 150 pcs/mo X X X X X X X X X X X X X X X X 6 Fab form YNG Filter 25 pcs/mo X X X X X X X X X X X X X X X 6 Fab form Gehl 001 150 pcs/mo X X X X X X X X X X X X X X X 6 Fab form 509566 700 pcs/mo X X X X X X X X X X X X 7 Coil to sheet to size 601 250 pcs/mo X X X X X X X X X X X X X 7 Coil to sheet to size 020 AI MF 8,000 pcs/mo X X X X X X X X X X X X 8 Coil to blank Nailor 500 pcs/mo X X X X X X X X X X X X X 8 Coil to blank 202262 20,000 pcs/mo X X X X X X X X X X X X X Stock Plate 250,000 lb/mo X X X X X X X X X X X X 9 Stock plate 64 I JUNE 2006 I www.asq.org FIGURE 2 Common VSM Icons Information flow Office Office Hardcopy Department/work center Electronic Software Warehouse Office/support data box Manufacturing/shop Supplier/Outside processing Material flow P/T = Processing time C/T = Cycle time Dist = Distance Movement Diff = Difficulty (1-5) M/T = Machine time Qty = Quantity C/O = Changeover C/O = Changeover FPY = First pass yield Push A&C = Accurate & Complete FPY = First pass yield OTD = On-time delivery Prior = Prioritize Rel. = Reliability Serv = Service level Customers/ Rel. = Reliability Qty = Quantity per ____ Expd = Expediting costs suppliers Qty = Quantity per ____ = Number of people/shift = Number of people/shift Truck - deliveries/ shipments Q Queue/waiting I Inventory Pe r son Production (make) Kanban Withdrawal Kaizen?burst/ Withdrawal (move) improvement Loop Go see Kanban Supermarket Supplier (batching) Kanban Maximum - FIFO - Kanbans?arriving in groups (First-in, first-out) Inventory or queue time VA Value added time Heijunka Cycle or (Level loading) process time NVA Nonvalue added time Kanban?route OXOX feet and the process level map at team and how it can affect decision Finally, never create a map with a 10,000 feet. making and action. A good team size team of one. You will not get enough It is best to start at diagramming a is usually between seven and 10 valuable input or cross functional dia- facility level map before attempting to members. This size makes it easier for logue or the results may be biased for draw a process level map or extended members to conduct interviews and one area, person or department. level map so you do not optimize one “walk the flow,” that is, actually visit- Kaizen Kick-Off area and suboptimize another. This ing each of the work areas affected by column will focus on the facility level the process evaluation and included Once the team is formed, a three map. in the VSM to see firsthand how day kaizen (Japanese for “change for things work or don’t work. the better”) event, as seen in Table 1, Ready a Team for the Event Predictably, the larger the team, the is usually enough time to create the The best—and probably easiest— more difficult it may be to manage. If current state and future state maps, way to create a VSM is to form a cross the team has fewer than seven mem- along with the draft plan (more detail functional team that includes supervi- bers, there may not be enough voices on these deliverables is highlighted sory or managerial level members to provide well-rounded input. later). More time may be needed to from throughout the organization. Representatives from departments like sales, customer service, schedul- TABLE 1 Typical Three-Day VSM Kaizen Event Agenda ing, purchasing, operations, inventory control, maintenance, quality and Day 1 Day 2 Day 3 information technology can be valu- • Introduce VSM. • Draw the current state • Create the future state able contributors to this part of the • Determine process map. map. VSM journey. Even customers or sup- families. • Perform lean concepts • Develop the draft plan. pliers—both internal or external—add •Walk the flow and training. unique perspectives. gather information. Be aware of the actual size of this QUALITY PROGRESS I JUNE 2006 I 65 LEAN LESSONS FIGURE 3 VSM Current State Map Example complete the detailed draft plan and the parts (for example, compo- included in the original matrix. After determine the resources required to nents, stock keeping units, fin- closer examination, the team that implement the lean ideas. It is impor- ished good items or services) your thought its company had only one tant to designate an individual with organization makes or provides. process family actually had nine fami- previous experience in VSM to facili- • Place an X in the corresponding lies. tate this kaizen event. box if the part goes through the After completing this vital step, At the kaizen event, the team must processing step. examine the matrix and look for parts complete four important steps to Many cross functional teams skip that go through similar or the exact progress through VSM: this step in the process. A team may same processing steps. Search for • Determine the process family. decide this step seems unnecessary. items or parts that share about 80% of • Draw the current state map. The team may mistakenly believe it the steps. Look for items or parts that • Determine and draw the future has already identified the value would make sense if they were created state map. streams, or it may consider this step alongside each other in a manufactur- • Draft a plan to arrive at the future too difficult or complicated to per- ing cell. In other words, consider items state. form. or parts that share many of the same I must emphasize this point again: steps and procedures that can be creat- Process Family Do not skip this step.