What is value stream map? it is one of the best lean manufacturing tools for identifying areas for improvement in your manufacturing process.
A value stream map refers to the steps an item takes from raw materials, through various processes, and finally to your customers. In other words, a value stream shows how different types of value are created, transformed or consumed.
While this may seem like an overwhelming task. There are several simple strategies you can use to optimize your workflow and eventually to improve company cashflow. The VSM buzzwords are everywhere however it lack of one dimension which is based on personal experience the obstacle the benefit the focus.
This blog post I will discuss everything you need to know about value stream mapping which eventually able for you to utilized value stream mapping template from leandemy.com
Keep reading to find out!
What is value stream Map?
Value Stream mapping were one of lean tools used for identifying overall value add production process of product. Despite OEE usually focus on machine focus, VSM view the whole process according to the consumer perspective takt time. When used in conjunction with other lean manufacturing tools and principles, value stream mapping can reveal hidden time and cost overruns throughout your supply chain and production process.
The value stream map principle
Value stream mapping is good program to discover the process wastes. Since the program require many tasks to be completed, we need to be clear about VSM core principle. By knowing the core principle of VSM it is enabling us to know the big picture in our mind and eventually bring VSM as efficient as ever. I still remember doing the VSM the first time, we are confused, rushed and in the end, it was not fruitful.
The core principle of VSM from my experiences were transparency. We need to be clear and transparent about all the metric happens in actuals. some stakeholders may not be comfortable with. However, VSM overall goal are greater than department or group reputations. We need to be transparent how much the Work in progress, Takt time and also with customer order which is crucial data in initial building VSM current state map.
The second principle of VSM are strategic approach. We will see from higher perspective rather than each machine or each process, we will be focusing on overall systems. Thus, keep in mind do not to spend much time in debating details data. We can manage to have an agreement on how much resolutions data needed whether weekly or monthly. Please keep in mind to solve the problem that happens in the system overall. we might neglect special events that cause machine failure or special defects or repair due to some certain month. we will be focusing the system again and again,
The third principle is waste elimination and the implementation of pull systems. VSM aims to identify and eliminate waste within the production process. This leads to more efficient and streamlined operations. Additionally, the design and implementation of pull systems help ensure a just-in-time approach, reducing overproduction and waste.
By adhering to these core principles, Value Stream Mapping becomes a powerful tool for enhancing efficiency, reducing waste, and optimizing your manufacturing processes. It offers a holistic view, encourages transparency, and ultimately fosters continuous improvement.
value stream mapping symbols implementation
Value Stream Mapping is a visual tool designed to analyze wastages within an operation processes. Value Stream Mapping symbols are the visual language that helps teams understand, analyze, and improve their workflows. At first glance, these symbols appear to be the keys to unlocking process efficiency. However it were obviously tend to give miss lead in some many ways.
Value stream map VS six sigma, what is the difference?
There are three main differences from value stream map vs six sigma which is the focus of program, the program steps and the tools used.
The people often confused by definition and correlation VSM and six sigma either do I. I still remember the first time invited to the VSM training. At that time, I thought it was six sigma or even confused between VSM program and Six sigma program. However, along the way the mentor explains how the six sigma differentiate with the VSM. Form discussion with him I found there are 3 main differentiators between six sigma and VSM.
First the VSM focus on the process flow, it means the focus only associated with the process flow and value creation process. During the session I remember the mentor asked everybody to calculate the OEE, WIP stock how it’s managed in a big paper A0.
We separate the team, which is writing, and others were doing the Gemba to the line. And in the end of session, we write down all the things and calculate the value-add compare with non-value add.
While six sigma program specifies detail on certain topics of problem. It means that six sima scope narrower on certain step process with Certains Item. We can add the six sigma as one of VSM action to transform from push to Pull.
Second the Six sigma steps clearly defined in DMAIC. Which is more thorough and deep items in each step. on the other hand, VSM steps only had two which is Current, and future stage.
The stages only define in high level not in very detail items. This is because VSM are high level tools to manage the factory or operations lead time and enhance value creations.
Third in terms of tools used VSM mainly using lean shopfloor tools. It is different with six sima which using high level hypothetical statistics. VSM more or less focuses how the shopfloor managed and, in the end, enable pull systems.
The VSM used mainly combination of Single minutes exchange dies, Kanban, FIFO and Heijunka or level scheduling. those lean tools combination enables pull system in place and enable production to close to the Just in time approach.
Summary the difference between six sigma & VSM:
- The focus of program. six sigma focus on one specific problem while value stream map focus on value creations of product as end to end from customer demand until FG delivery.
- The steps of program in six sigma were using DMAIC while value stream map using Current state and future state.
- The tools used in six sigma using advanced statistical hypothesis test while VSM using lean tools which more practical to use like Kanban, Heijunka, etc.
Value stream map VS Process map, what is the difference?
There are three main differences from value stream map vs process map are the program process perspective, the data captured and the last the tools symbols used.
Another confusion from VSM is process map. Of course, I do confuse with one and another during the first time doing the value stream mapping. However, after doing it several times there are key major differentiator which is adherence to the VSM principle. there are 3 things that has significant difference between VSM and process map.
The first differences were VSM approach more into process perspective or workpieces. In the other hand process map focus on than human activities. In VSM we write about the value in each step during creations of products rather than discussing the how it is being done. On the other hand, process map we are guiding how it is being done rather than discussing how the value creations of each step.
The first differences followed by the seconds which is what data being captured. In Process map focusing on how the process and step being done smoothly. However, we do not need deep dive data to justify how’s the process productivity calculated. In process map we only need to observe ehat is the right sequence of the process to complete tasks. In the other hand in process map we are more focusing how the process accounted as productive thus need to capture cycle time, takt time and also stock.
The last differences were the symbols used. Since the VSM focuses on work piece the symbols used are represent of between nonvalue add or value added. those rules using the same 7 wastes format in VSM we account WIP, Waiting, Change over loss as wastes. In the other hand Process map symbols represent of basic data form whether it is calculation, input-output, document or decisions.
Type of value stream map
Value stream mapping focus on flow process and step creations of products. Because of that value stream mapping only had two kinds, which often called current state and future state. Current state Value stream mapping often called CVSM are representation of current condition. CVSM elaborate how the product created, stored, & managed (First in first out). By doing so we able to grasp what is the latent wastes inside. CS-VSM are important stages that need all team inside operations to had collaborations.
The second type are Future state value stream map. Future state VSM or FS-VSM are representation of state where the wastes already eliminated and near ideal process. FS-VSM can be achieved through sequence improvement activities such as Single minutes exchange dies, Kaizen event or even six sigma projects. Those series activities had common goal to reduce wastes and Nonvalue add process through manufacturing.
What is benefit of Value stream Mapping?
There are three main benefits of Value Stream Map first identifying the process bottle neck, seconds aligning manufacturing production with customer demand, and last improve profitability by shortening product manufacturing time.
Lean manufacturing centers around the creation of value for customers. It’s not just about making things less costly and more efficient. It’s also about making products that are easier to use so they sell better, last longer, and have a higher resale value. Value stream mapping helps you find inefficiencies in your manufacturing process so you can focus on eliminating them. The Benefit of value stream mapping are defined by some key point below:
First benefit of Value stream mapping: Identifying bottle neck process capacity constraints
Managing operation are sometimes daunting task since we may overlook each detail product progress. Let alone production mix and inventory level, those conditions are perfect to creates wastes. From customer demand to planner then raw material, semi-finished until finish goods. While factory process may sound a simple process but sometimes because of process variation occur, thus there a gap with initial design.
The gap may come from OEE difference between process or even there are different size batch need to adjust. By doing VSM in all process and identifying WIP actual by daily or in shift it will give you overview how you process bottleneck really are. By doing single minutes exchange dies or even Kanban with Heijunka it will allows you to improve bottleneck area and increase more capacity with less major spend.
The VSM are progressive program that in my experience takes at least 3 months to complete and it may too long if the time frame within a year so six months are maximum. since the VSM aim are dependent on each start project cycle but I suggest that VSM data using sales data to track customer demand and align with our production takt time.
second benefit of Value stream mapping:Â Aligned manufacturing with customer demand.
When we talk about Manufactuing the main aim operations were make the product as target or forecasted customer demand. However, there are some delays from customer to reach manufacturing and delivering process. This delay avoided by creating stock, well I don’t think that stock as overall wastes however it sometimes overlooked the other aspect may cause profitability diminishes. those aspects such ass area occupied, forklift fuel consumptions for managing the stock or even external warehouse rent due to export product.
By doing Value stream mapping, we can see overall customer demand how long we can fulfill those. The second time VSM I made shocked all management, why? because we spend 60 days of manufacturing medium voltage of cable while it only took 2 days equal value add time.
Imagine those 60 days are the time your money held in captive in a form of semi-finished. By doing VSM we get overall factory bottle neck process by integrating Kanban and SMED in the end of the day increase customer and your production Rythm with less cash hold in form of material.
Overall goal: VSM Improving cashflow with pull system implementations.
In manufacturing with huge batch size variation in material inventory are often happens. This variation creates additional variable cost whether it was inventory, & area occupied. And sometime this generates other problem which increased of forklift utilizations due to movement materials.
The variable cost incurred in expense while not really charged to customer. Yes, the end of the day factory is bossiness to seek profitability. Which bottom line is what you charged to your customer and how much your actual spends.
When your customer order 1000 pcs with $5 each they will pay $5000. However, since manufacturing had their own complexity such as supplier Minimum order quantity, or shipment lead time since they are in other part of the world or even the material, they send is not good a product we might get charged more than what customer pays.
Value stream mapping example:What insight from case study
Efficiency and financial performance go hand in hand when it comes to streamlining processes within an organization. In this blog section, we’ll delve into the completed Value Stream Mapping (VSM) projects, specifically CSVSM and FSVSM, and explore the percentages and financial analysis associated with them.
Read our blog post here to better understanding key significant point of value stream mapping
Value Stream Map Example : Case study vital metrics you need to know before starting VSM
General Electric Value Stream Map Wind turbines assembly Pensacola plant
The Pensacola site which produces wind turbines applied Pull System combined by Heijunka or level scheduling. the result was astounding, the site knows what steps needed to produce three wind turbine a week in winter and spring season and five wind turbines in summer. By adopting strictly one-piece flow and pull system for wind turbine spare parts the site able improve 6% or build hours needed to produce turbine.
Conclusions
In conclusion, Value Stream Mapping (VSM) is a powerful tool in lean manufacturing for identifying areas of improvement in the production process. It helps visualize the flow of value from raw materials to customers and highlights opportunities to eliminate waste and enhance efficiency. The core principles of VSM include transparency, a strategic approach, and the elimination of waste while implementing pull systems.
VSM differs from Six Sigma in terms of its focus, steps, and tools used. VSM concentrates on the flow of the production process, employs only two main steps (Current and Future State), and relies on practical lean tools like Kanban and Heijunka. On the other hand, Six Sigma focuses on specific problem-solving, follows the DMAIC steps, and uses advanced statistical hypothesis testing.
Additionally, VSM is distinct from a Process Map in that it focuses on the value created in each step of the product’s creation, captures more detailed data, and uses different symbols to represent value-added and non-value-added activities.
There are two types of VSM: Current State (CVSM) and Future State (FSVSM), each serving different purposes in identifying waste and creating a more efficient production process. The benefits of VSM include identifying process bottlenecks, aligning production with customer demand, and improving profitability by reducing manufacturing time.
Efficiency and financial performance are closely related, and the case study of General Electric’s Pensacola plant demonstrates the significant improvements achieved through the adoption of VSM and a pull system. Overall, VSM is a valuable approach for enhancing manufacturing processes, reducing waste, and ultimately increasing profitability.