1. Chapter 2 - The Value Stream
MSE507 Lean Manufacturing - Prof. David Shternberg
Lean Manufacturing
Chapter 2 The Value Stream
"Whenever there is a product for a customer, there is a value stream. The Challenge lies in seeing it”
PHILIP (PHIL) M. CONDIT
Chairman and Chief Executive office
The Boeing Company
California State University, Northridge

2. "There is only one boss: the customer
"There is only one boss: the customer. And he can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else."
Samuel M. Walton
Wal-Mart Stores, Inc. Chairman & Chief Executive Officer

3. Why Map A Value Stream? Lean Manufacturing is:
the relentless elimination of waste
Waste is using resource…
…without adding value
Waste is all around us, but it can be very hard to see
Value Stream Maps (VSM) help us see waste

4. Value Streams
A Value Stream is the entire set of activities running from raw material to finished product for a specific product or product family
In a typical enterprise, value streams can intersect with other value streams, branch apart or Y together

5. Value Stream Maps
Value Stream Maps are powerful visual tools to help see waste and understand the flow of material and information
Especially powerful for illustrating the wastes of Overproduction, Idle Material & Transportation
Value Stream Maps show all actions required to deliver a product… Value Added…as well as Non-Value Added

6. Other Benefits Of VSM
Provides a big picture perspective that helps focus on improving the whole process, not just optimizing bits and pieces
Shows the linkage between the information flow and material flow
Helps to see across the functional boundaries over which a product’s value stream flows

7. Other Uses For VSM
To help understand how your business actually works (you don’t understand the current process if you can’t draw it)
A tool for establishing a vision and implementation plan for a new business or product line
A visual tool and common language for talking to others about your manufacturing process

8. Mapping Process Product Family Define the Value Stream
Current State Drawing
Understand how the value
currently flows
Future State Drawing
Design a LEAN flow
Plan how to get there
and execute the plan
Work Plan &
Implementation

9. IMPLEMENT FUTURE STATE!
A Reminder
The point of value stream mapping is not the maps, but to understand the flow of information and material and see waste
...and then use that understanding and insight to improve your process
IMPLEMENT FUTURE STATE!

10. Current State Maps (CSM)
Value Stream Mapping
Current State Maps
(CSM)

11. The Current State Map
A pictorial view, drawn with pencil and paper while observing the process on the factory floor, that shows how material and information currently flow
Creates a baseline for future improvements to be measured against
Clarifies understanding of how the current production system actually operates

12. Chapter 2 - The Value Stream
MSE507 Lean Manufacturing - Prof. David Shternberg
Example
Information Flow
Customer
Start with the Customer
INVENTORY ICONS
WITH PUSH ARROWS
Material Flow
California State University, Northridge

13. Chapter 2 - The Value Stream
Step 7
Chapter 2 - The Value Stream
MSE507 Lean Manufacturing - Prof. David Shternberg
Acme Steering Bracket Line
90/60/30 day forecasts
State Street Assembly
Production Control
Michigan Steel Company
6 week forecast
Daily Order
Weekly
Fax
18400 pieces/month L R
500 ft coils
MRP
MRP
Tray = 20 pieces
Daily Ship Schedule
Weekly Schedule
Weekly Schedule
2 shifts
Tues. &
Thurs.
1x Daily
Shipping
Ass’y #1
Ass’y #2
Stamping
S. Weld #1
S. Weld #2 I I I I I I 1
Staging
Coils
5 days
4600 L
2400 R 1 1
1600 L
850R 1 1
2700 L
1440R
1100 L
600R
1200 L
640R
C/T=1 sec
Uptime =85%
27,600 sec. avail.
C/T=39 sec
Uptime = 100%
27,600 sec. avail.
C/O=10 m
C/T=46 sec
C/T=62 sec
C/T=40 sec
C/O=1 hour
C/O=10 m
C/O = 0
C/O = 0
Uptime = 80%
Uptime = 100%
Uptime = 100%
27,600 sec. avail.
27,600 sec. avail.
27,600 sec. avail.
7.6
days
1.8
days
2.7
days 2
days
4.5
days
5 days
PLT = 23.6 days
1 sec
39 sec
46 sec
62 sec
40 sec
PT = 188 sec.
California State University, Northridge