Value Stream Mapping

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Value Stream Mapping

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Value Stream Mapping Definition
• Value Stream Mapping (VSM):
– Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information.

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Value Stream Mapping Purpose
• Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service)

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Why ?
• Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4

What Is Value?
• A capability provided to a customer
– of the highest quality, – at the right time, – at an appropriate price,

as defined by the customer.

• "Value" is what the customer is buying

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What Is Value Stream Analysis?

Planning tool to optimize results of eliminating waste
current state VSM future state VSM

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Lean Basics

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Value Steam Mapping Steps

Next Future State

Future State

Current State

Original State

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Apply Five Simple Principles
• Specify value from the standpoint of end customer • Identify the value stream for each product family • Make the product flow • So the customer can pull • As you manage toward perfection VALUE Perfection

VALUE STREAM

PULL

FLOW

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What is the Value that Flows?
Specify value from the standpoint of the end customer Ask how your current products and processes disappoint your customer’s value expectation: • • • • • price? quality? reliable delivery? rapid response to changing needs? ??? 9

What Flows?
"ITEMS" flow through a value stream
– In manufacturing, materials are the items – In design & development, designs are the items – In service, external customer needs are the items – In admin., internal customer needs are the items Analysis begins with part of a total value stream, That part of the value stream has customers too 10

Value Stream Mapping Process Symbols
Customer/Supplier Icon: represents the Supplier when in the upper left, customer when in the upper right, the usual end point for material Dedicated Process flow Icon: a process, operation, machine or department, through which material flows. It represents one department with a continuous, internal fixed flow. Shared Process Icon: a process, operation, department or workcenter that other value stream families share.

Data Box Icon: it goes under other icons that have significant information/data required for analyzing and observing the system.

Workcell Icon: indicates that multiple processes are integrated in a manufacturing workcell.

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Value Stream Mapping Material Symbols
Inventory Icons: show inventory between two processes Shipments Icon: represents movement of raw materials from suppliers to the Receiving dock/s of the factory. Or, the movement of finished goods from the Shipping dock/s of the factory to the customers Push Arrow Icon: represents the “pushing” of material from one process to the next process.

Supermarket Icon: an inventory “supermarket” (kanban stockpoint).

Material Pull Icon: supermarkets connect to downstream processes with this "Pull" icon that indicates physical removal.

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Value Stream Mapping Material Symbols (Cont.)
FIFO Lane Icon: First-In-First-Out inventory. Use this icon when processes are connected with a FIFO system that limits input.

Safety Stock Icon: represents an inventory “hedge” (or safety stock) against problems such as downtime, to protect the system against sudden fluctuations in customer orders or system failures. External Shipment Icon: shipments from suppliers or to customers using external...
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