BPE3533 / BPE4143

Mohd Ghazali bin Maarof

Email: mohdghazali@ump.edu.my
CHAPTER 3: T: +609 549 2660
VALUE STREAM MAPPING M: +60107123936
Office: 1st Floor-FIM-KPU
What Is a Value Stream?
• Defines value from the customer’s perspective
• Value stream mapping helps visualize the steps
needed to take from product creation to delivering
it to the end-customer
• All of the actions and tasks, both value added and
non-value added, required to bring an item (an
idea, information, product or service) from its
inception through delivery.
What Flows Through the Value
Stream?
Products, information, or services flow through a value
stream
• In manufacturing or distribution, materials are what flow
• In health services, patients are what flow
• In office areas, information is what flows
• In service areas, external customer needs flow through the value
stream
• In administration, internal customer needs flow through the value
stream
• In many cases, the item flowing in service or administration is a
document, an order, or a request
Purpose of Value Stream Mapping & Analysis

• Develop a common understanding of the current process

• The relationship of process steps
• A true picture of the process
• Create a baseline to measure improvements against
• Define a vision of the future process
• Establish common leadership objectives
• Identify opportunities for improvement
• Design an implementation plan for improvements

“If you can’t describe what you are doing as a process,

you don’t know what you’re doing.” W. Edwards Deming
Value of a Value Stream Map
• The Value Stream Map provides visibility of the entire process
➢The process may cross functional boundaries
➢Without the map, you may focus on the wrong areas to try
to improve
➢Sub-optimization may result

• Typically, here’s a couple of things you’d want to be on the

lookout for:
➢ Delays that hold up the process
➢ Restraints that limit the process
➢ Excess inventory that ties up resources
unproductively
Mapping Process

Product Family Define the Value Stream

Current State Drawing Understand how the value

currently flows

Future State Drawing Design a LEAN flow

Work Plan & Plan how to get there

Implementation and execute the plan
Value Stream Process Steps

1. Prepare

2. Gather Data & Develop Current State

3. Develop Future State & Action Plan

4. Execute to Plan

5. Align
Value Stream Process
Step 1 - Prepare

• Gather Preparatory Information

• Document the Case for Change
• Define the Scope (start and end of process)
• Identify the Requirements
• Review/establish Measurements
• Set Logistics for Event
• Participants
• Location
• Materials
• Meals/Refreshments
• Etc.
Value Stream Process
Step 2 - Gather Data (Develop Current State)
• Observe and gather data
• Walk the value stream - see the actual work place
• Follow and make notes about “item” and information flow
• Gather data for each step in the flow
• Trigger/done actual lead time output
• Actual cycle time on time delivery staffing
• Defect rate batch sizes overtime
• Quality variations work in process
• Map the flow of items
• Map the flow of information
• Add data and issues
Value Stream Process
Step 3 – Future State & Action Plans

• Discuss the ideal state

• Develop the future state map
• Develop action plans & cadence tracking
• Build draft time line for implementation

• Communication & training as required

 Action Plan Template
Process Step or Person Due
# Function Original Problem Action Items Responsible Date Metrics and Comments
1

10

11

12

13

14

15

16

17
Value Stream Process
Step 4 – Execute to Plan

• Implement improvements
• Conduct Workshops, events, projects, bursts per implementation
plan

• Achieve value stream objectives

• Create an environment of continuous improvement

 Analyzing the Value Stream

Planning tool to optimize

results of eliminating waste

current state VSM future state VSM

Lean =
+ +
Basics
Value Stream Process
Step 5 – Align
• Conduct Value Stream Alignment Meeting
• Periodic basis (based on action plan schedule)

Agenda
• Review event implementations & results
• Review impact to value stream metrics (individual events and overall)
• Review next quarter events
• Review changes in business environment
• Communicate results
• Update value stream as required
• Update implementation plan as required
• Address resistance and sustainment issues
Value Stream Process
Additional Tips for Success
• Capture as you go:
• Issues
• Acronyms / terminology
• Parking Lot issues
• Action items
• Establish a time each day for Leadership to visit the workshop
• Status update
• Ask questions
• Barrier busting
• Capture at the end of each day:
• Lessons Learned
• Agenda for next day
• Champion summarization for Leadership at end of each day (email):
• Team accomplishments for the day
• Agenda for next day
 Customer Need:
A Simple Example Stapled pages

Info: Location of stapler Info: Where to place staple

Pick Up Paper Walk to Stapler Staple Paper

Time: 1 sec. Time: 5 sec. Time: 2 sec.

Distance: 0 Distance: 20 ft. Distance: 0

Excess Travel

Walk to Desk Put Down Paper

Total Time: 14 sec.
Total Dist: 40 ft.
Time: 5 sec. Time: 1 sec.
Value Added Time: 4 sec.
Distance: 20 ft. Distance: 0
Value Added Dist: 0

Value Added Time: 28%

 Material Flow Icons

Assembly C/T=45 sec.

XYZ C/O=30 min. I
Corporation 3 Shifts. 300 pieces
2% Scrap 1 day
Process Supplier/
Box Customer Data Box Inventory Supermarket

Mon
+ Wed
FIFO

Shipment Push Physical Finished Goods First-In-First-Out

Pull to Customer
 Information Flow Icons

Weekly
Schedule OXOX

Manual Electronic Load Sequenced-Pull

Information Flow Information Flow Schedule Leveling Box Ball

Withdrawal Production Signal Kanban

Kanban Kanban Kanban Post
General Icons

Uptime

Changeover

Kaizen
Lightning Burst
Operator
Buffer or
Safety Stock

“Go See”
Production
Schedule
Example
Add data for Material and Information Flows

0 30-60 5 30-120 30 0 15-30 Queue = 125-275 min

15-30 0 5 0 5 0 10-15 0 10-15 0 0 15-30 15-30 0 5 Touch =70-110 min
0 0 0 0 0 5 0 0
ACME Steering Bracket

The Steering Bracket is a part of your vehicle's power

steering system. It serves the purpose of holding the
steering pump in position. The steering bracket has holes
that match the steering pump.
Example Acme Steering Bracket Line 90/60/30 day
3-15-2002 forecasts
State Street
6 week Production Control Assembly
Michigan Steel
forecast
Company Daily 18400 pieces/month
Weekly Order
Fax -12000- L
500 ft coils MRP
MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly
Weekly Schedule
Schedule Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2 Shipping

Stamping S. Weld #1 S. Weld #2
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 850R 1440R
5 days 600R 640R
C/T=1 sec C/T=39 sec
C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m
C/O=10 m C/O = 0 C/O = 0
Uptime Uptime =
Uptime = Uptime = Uptime =
=85% 100%
80% 100% 100%
27,600 27,600
sec. avail. 7.6 sec. avail. 1.8
27,600 2.7
27,600 2
27,600 4.5
5 days
days days
sec. avail. days
sec. avail. days
sec. avail. days PLT = 23.6 days
1 sec 39 sec 46 sec 62 sec 40 sec
PT = 188 sec.
Remember

• The Value Stream Map is a plan

• Helps you get from the current state to the future state
• A good plan creates the opportunity for success – even if
you can’t see the path to get there
 Questions?
•