VSM - Value Stream Mapping for made-to-order manufacturing

VSM
Value Stream Mapping
For A Made-To-Order Company
Source: Learning to See
by Mike Rother & John Shook

Topics Today
• What is VSM?
• Material & Information Flow
• Product Family
• Current State & Icons
• Analysis & Reducing Waste
• Future State

Lean Principles
① Value through the customer’s eyes
② Define VALUE STREAM
③ Implement flow
④ Create pull where flow is not possible
⑤ Continuous improvement

How is VSM different than a swim lane?
Swim Lane
• Individual processes mapped
• Current state
• People & process
• Interview members
• Long paper & post-its
• Role based representation
VSM
• Choose & analyze “product families”
• Current and future state
• Material & information flow
• Walk the process 2 times & document
• One 11 x 17 and a pencil
• Pictorial representation of layout

VSM defined
Value Stream Mapping – is all the actions (both
value and non-value added) currently required
to bring a product through the main flows
essential to every product.
3 Flows in Manufacturing:
1) Material Flow 2) Information Flow 3) People / Process Flow

Material & Information Flow
How can we flow information so that one
process will make only what the next
process needs when it needs it?

Product Families
IDENTIFY your product families
from the customer end of the
value stream.
A PRODUCT FAMILY - is a group of
products that pass through similar
processing steps and over
common equipment in your
downstream processes.
CONSIDERATIONS – how much is
wanted by the customer and how
often?

① Take a quick walk along the entire door-to-door value stream.
② Go back and gather information at each process.
③ Begin at the downstream end first (e.g. Shipping).
④ Bring your stop watch and do not rely on standard times or information that you do not
personally obtain.
⑤ Map the whole value stream as one group, DON’T have teams branch off. Nobody will gain
a thorough education of the VSM.
⑥ Always draw by hand in pencil (retractable pencils with erasers work best)
Current State Steps
PRACTICE OFTEN BEFORE GATHERING A TEAM

LEAN Value Stream
All we are really trying to do in lean
manufacturing is to get one process to
make only what the next process needs
when it needs it.

(1) TAKT TIME – is also known as the “drum beat demand” of the customer. Takt time
determines the exact pace at which production needs to proceed in order to meet
ongoing demand. It is best used on continuous production lines or on work cells manufacturing a
family of similar products.
For custom manufacturers, customer demand rate “unit” can be tricky. One solution is to define a
“unit” as how much work can be done at your bottleneck process in a “takt” of say, 10 minutes.
Then break your orders up into units of this takt interval.
Analyzing & Reducing Waste

(2) DEVELOP CONTINUOUS FLOW – This can be achieved with a combination of
continuous flow and some pull/FIFO.
EX. You ship to an outside plating process one time per day. The plater can only handle 50 pieces
per day, so you set up a FIFO lane sized to hold, at most, 50 pieces of plating work. Whenever the
lane is full the upstream process stops producing parts to be plated. In this manner, the FIFO lane
prevents the supplying process from overproducing, even though the supplying process is not
linked to the plater via continuous flow or a supermarket.
(3) PACEMAKER PROCESS – How you control production at this process sets the pace
for all the upstream processes. For custom products, the scheduling point needs to be further
upstream.
Analyzing & Reducing Waste (cont.)

(4) LOAD LEVELING – Paced withdrawals of small, consistent quantities of work. A tool
used at some companies to help level both the mix and volume of production is a load leveling (or
heijunka) box. See picture below.
Analyzing & Reducing Waste (cont.)
How do you figure out pitch? For example, If your takt time = 30 seconds, and your
pack size = 20 pieces, then your pitch = 10 minutes (30 sec x 20 pcs = 10 min.)

Future State Question
1. What is the takt time?
2. Where can you see continuous flow processing?
3. At what single point in the production chain will you schedule
production?
4. How will you level the production mix?
5. What increment of work will you consistently release?
6. What process improvements will be necessary?

VSM - Value Stream Mapping for made-to-order manufacturing

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