Guide to creating a VSM.doc

Value Stream Mapping: Current State 1. Walk the process from customer to supplier

a. Write down each major process block i. Note: If 3 processes are connected by 1 pc flow they can be included as 1

process block 2. In the break out room, start the current state map

a. Title box in upper left corner including Current State, name of product family, date and person drawing the map.

b. Using the information from your walk around create a process block for each step c. Use production control/planning/logistics/customer service resources to walk the

information flow from customer order to receiving. Identify whether it is make to order, make to stock, etc.

3. As a team collect the relevant data for each process step. (Observe the process not a person & make sure you explain to operators what you are doing).

a. Typical data box information: Time actual cycle times not standard times, number of operators at that process, number of pieces of equipment, any issues to prevent small lot flow (changeover time, batch size, equipment, uptime, yield, etc)

b. Information Flow: At each process ask the operator how they know what to work on next. If helpful make copies of documents used for scheduling including schedule, hot sheets, Kanban cards.**pay attention to multiple means of communication that may be contradictory.

c. Although we are only documenting the current state it is natural for improvement ides to be generated. This is not the time to discuss them but write them down for the future session.

4. In front of each process step record the amount of inventory in the area (product completed or product waiting to be worked on). Take note of red tagged, rejected or MRB materials. If product moves to stores, go and count it and put it on your map. Dont forget to also include inventory counts for both finished goods and received materials.

5. Fill in customer information: (if you have 100s of customers at least pick top 5) a. Demand (overall product demand) b. Shipping frequency c. Information flow including forecasts, schedules, orders d. Location

6. Fill in supplier information: a. Component(s) they supply b. Shipment frequency c. Standard container/box size d. Location of supplier

7. Document how customer information is translated to shop floor orders & supplier orders (P.O.s, etc)

8. Calculate TAKT time 9. Calculate the days of inventory at each process (based on customer demand) 10. Calculate the Total Product Cycle Time (Total lead time)

a. VA/NVA ratio 11. For team presentation

a. Always start explaining the map from the point of the customer i. Walk through the process as though you are the order

b. State the TAKT time c. State the TPCT & NVA % d. Share the opportunities (identified with kaizen bursts)

Guide to creating a VSM.doc

Value Stream Mapping- Business Process: Current State 1. Walk the process from beginning to end (eg. For new product design: from concept to

launch) 2. Write down each major process block (if there are many activities but not interrupted by

flow they can be shown as 1 block). Many find it useful to use post it notes for ease of changing order. If you are creating a swim lane (cross functional) map for BP the same applies just align the functions along the left side of the page and the milestones on top

3. In the breakout room, start the current state map a. Title box in upper left corner including Current State, name of product family,

date and person drawing the map b. Using the information from your walk around create a process block for each step c. walk the information flow from customer point to supplying end d. This information should be for what occurs 80% of the time (typical)

i. Use ranges in time if necessary e. Although we are only documenting the current state it is natural for improvement

ides to be generated. This is not the time to discuss them but write them down for the future session.

f. Complete Data Boxes i. Estimate process times ii. Lead time iii. Frequency the service is given/product moved to customer per day iv. Identify points of technology v. Identify first pass yield (number of times jobs are received accurate from the

upstream process) vi. Identify any barriers to one piece flow

1. long travel distances 2. special skills 3. system availability 4. changeover time

g. Record information Flow for each process step i. How does the individual know what to work on next? ii. How are priorities assigned iii. Identify any conflicts of scheduling

h. Record the amount of inventory before each process (anything queuing such as paperwork, emails, etc.)

i. How does the department know there is a queue? ii. Count the jobs between processes

i. Label each process block as either Value added, NVA or Necessary NVA j. Create a spaghetti diagram for product flow or a handoff diagram

4. Fill in the customer demand information (how many of these services/products are needed)

5. Calculate TAKT time 6. Calculate number of days of inventory (queue time) at each process 7. Calculate the Total Product Cycle Time (Total lead time)

a. VA/NVA ratio b. Calculate rolled up FPY

8. For team presentation a. Always start explaining the map from the point of the customer b. State the TAKT time, State the TPCT & NVA % c. State the number of process blocks d. Share the opportunities (identified with kaizen bursts)

Guide to creating a VSM.doc

Future State Maps: Manufacturing 1. See Page 58 Learning to See by Shook/ Rother 2. Calculate TAKT time 3. Calculate the days of inventory at each process (based on customer demand) 4. Calculate the Total Product Cycle Time (Total lead time)

a. VA/NVA ratio 5. For team presentation

a. Always start explaining the map from the point of the customer i. Walk through the process as though you are the order

b. State the TAKT time c. State the TPCT & NVA % d. Share the impact of the kaizen bursts from current state

Guide to creating a VSM.doc

Future State Maps: Business Process 1. Identify the TATK time 2. How will we achieve flow? (so the work does not queue) 3. Can we pull

a. Who is asking for this work b. When do they require it? c. How frequently do they require it? d. Can it be applied to this process?

4. At what point do we trigger to do more work a. How much work is released each time & taken away? b. How can we level the work being done?

5. Is there an opportunity for process kaizen? a. Can we eliminate? b. Can we simplify? c. Can we combine?

6. What are our metrics? 7. Calculate the Total Product Cycle Time (Total lead time)

a. VA/NVA ratio b. Calculate rolled up FPY

8. For team presentation a. Always start explaining the map from the point of the customer b. State the TAKT time, State the TPCT & NVA % c. State the number of process blocks d. Share the impact of the kaizen bursts from current state

9.