Value Stream Mapping - PowerPoint PPT Presentation


Title: Value Stream Mapping


1
Value Stream Mapping
  • BUSINESS MARKETINGProfessor William J. Qualls

2
What is a Value Stream
  • Value Stream Mapping is a tool used to create a
    material and information flow map of a product or
    processes. It allows firms to map the flow of
    products in the back door as raw material,
    through all manufacturing process steps, and off
    the loading dock as finished product.

3
A Value Stream is......
  • All the activities involved in creating value for
    the customer
  • The process starts with raw material or
    information and ends with the end customer.
  • The process involves functions both internal and
    external to the firm.

Source RD Production Logistics
Customer Service
Product or Service
Material and Information
4
Why Value Stream Mapping is Useful
  • Helps visualize interactions and flows of
    material and information
  • Helps to identify types of wastes and sources of
    wastes.
  • Shows the linkages between material flows and
    information
  • Identifies the constraints---any resource whose
    capacity is less that customer demand

5
Value-Added Activities
  • An activity that transforms or shapes material or
    information
  • Some that the customer wants or desires and
    willing to pay for
  • Products, processes, or information that is done
    right the first time

6
Non Value-Added-Needed Activities
  • Activities that cause value not to be created but
    which cannot be eliminated based on current state
    of technology or thinking
  • Required by governmental regulations or customer
    mandates
  • Necessary

7
Non Value Added Activities
  • Activities that consumer resources but create no
    value in the eyes of the customer
  • Pure waste
  • If you can not get rid of the activity, it
    becomes a needed activity

8
Types of Wastes
  • Overproduction
  • Waiting
  • Transportation
  • Inappropriate processing
  • Unnecessary inventory
  • Unnecessary motion
  • Defects.

9
Basic Steps to Value Stream Mapping
  • Define the boundaries
  • Define the value
  • Identify the tasks and flows of material and
    information between them.
  • Identify resources for each task and flow
  • Create the current state map
  • Identify value added and waste
  • Reconfigure the process to eliminate waste
  • Visualize the Ideal State and create future
    state map
  • Develop Action plans and tracking

10
Tips for Creating a Value Stream Map
  • The process of value stream mapping should
    involve the whole team
  • Actually walk the processfollow the material and
    information through the process starting at the
    beginning
  • Use symbols or icons that are meaningful to the
    process but common enough to be understood by all
    stakeholders.

11
Process Mapping
  • The study of the flow of processes
  • The identification of waste
  • Consideration of whether the process can be
    rearranged in a more efficient sequence
  • Consideration of a better flow pattern, involving
    different flow layout or transport routing and
  • Consideration of whether everything that is being
    done at each stage is really necessary and what
    would happen if superfluous tasks wereremoved.

12
Value Stream Mapping Tools
  • Process Activity Mapping
  • Supply Chain Response Matrix
  • Production Variety Funnel
  • Quality Filter Mapping
  • Demand Amplification Mapping
  • Decision Point Analysis
  • Physical Structure Mapping
  • Value Adding Time Profile
  • Process Costing

13
Building a Custom Jet Airplane-Current State
  • Current State
  • Number of Steps in the Process
  • Number of Times materials or information is
    exchange
  • Takt Time
  • Future State
  • Number of Steps in the Process
  • Number of Times materials or information is
    exchange
  • Takt Time

14
Takt Time
  • The rate of time required to complete a product
    to meet customer demand
  • The customers buying rate determines Takt
    Time.Its the rate at which a customer buys the
    product
  • Takt Time Net Available Time to Work
  • Customer Demand
  • Example 2 shifts x 7.5 hours x 60 minutes
  • 145 planes
  • 900 minutes/145 planes 6.2 minutes per plane

15
Build a Jet Organizational Structure
  • Purchasing Agent
  • Manufacturing
  • Quality control
  • Customer Service
  • Finance and Administration
  • Team Leader
  • Individuals can only perform one role at a time

16
Customer Expectations
  • Jet planes will be paper
  • Each plane should have a paper clip on its nose
  • There should be two gold stars on with one on
    each wing
  • The company color logo for each division should
    be placed on the left side of the nose at the tip
    of the plane at the end of the paper clip. There
    should be an equal number of red, blue and green
    logos on planes delivered
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Value Stream Mapping

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Title: Value Stream Mapping


1
Value Stream Mapping
  • BUSINESS MARKETINGProfessor William J. Qualls

2
What is a Value Stream
  • Value Stream Mapping is a tool used to create a
    material and information flow map of a product or
    processes. It allows firms to map the flow of
    products in the back door as raw material,
    through all manufacturing process steps, and off
    the loading dock as finished product.

3
A Value Stream is......
  • All the activities involved in creating value for
    the customer
  • The process starts with raw material or
    information and ends with the end customer.
  • The process involves functions both internal and
    external to the firm.

Source RD Production Logistics
Customer Service
Product or Service
Material and Information
4
Why Value Stream Mapping is Useful
  • Helps visualize interactions and flows of
    material and information
  • Helps to identify types of wastes and sources of
    wastes.
  • Shows the linkages between material flows and
    information
  • Identifies the constraints---any resource whose
    capacity is less that customer demand

5
Value-Added Activities
  • An activity that transforms or shapes material or
    information
  • Some that the customer wants or desires and
    willing to pay for
  • Products, processes, or information that is done
    right the first time

6
Non Value-Added-Needed Activities
  • Activities that cause value not to be created but
    which cannot be eliminated based on current state
    of technology or thinking
  • Required by governmental regulations or customer
    mandates
  • Necessary

7
Non Value Added Activities
  • Activities that consumer resources but create no
    value in the eyes of the customer
  • Pure waste
  • If you can not get rid of the activity, it
    becomes a needed activity

8
Types of Wastes
  • Overproduction
  • Waiting
  • Transportation
  • Inappropriate processing
  • Unnecessary inventory
  • Unnecessary motion
  • Defects.

9
Basic Steps to Value Stream Mapping
  • Define the boundaries
  • Define the value
  • Identify the tasks and flows of material and
    information between them.
  • Identify resources for each task and flow
  • Create the current state map
  • Identify value added and waste
  • Reconfigure the process to eliminate waste
  • Visualize the Ideal State and create future
    state map
  • Develop Action plans and tracking

10
Tips for Creating a Value Stream Map
  • The process of value stream mapping should
    involve the whole team
  • Actually walk the processfollow the material and
    information through the process starting at the
    beginning
  • Use symbols or icons that are meaningful to the
    process but common enough to be understood by all
    stakeholders.

11
Process Mapping
  • The study of the flow of processes
  • The identification of waste
  • Consideration of whether the process can be
    rearranged in a more efficient sequence
  • Consideration of a better flow pattern, involving
    different flow layout or transport routing and
  • Consideration of whether everything that is being
    done at each stage is really necessary and what
    would happen if superfluous tasks wereremoved.

12
Value Stream Mapping Tools
  • Process Activity Mapping
  • Supply Chain Response Matrix
  • Production Variety Funnel
  • Quality Filter Mapping
  • Demand Amplification Mapping
  • Decision Point Analysis
  • Physical Structure Mapping
  • Value Adding Time Profile
  • Process Costing

13
Building a Custom Jet Airplane-Current State
  • Current State
  • Number of Steps in the Process
  • Number of Times materials or information is
    exchange
  • Takt Time
  • Future State
  • Number of Steps in the Process
  • Number of Times materials or information is
    exchange
  • Takt Time

14
Takt Time
  • The rate of time required to complete a product
    to meet customer demand
  • The customers buying rate determines Takt
    Time.Its the rate at which a customer buys the
    product
  • Takt Time Net Available Time to Work
  • Customer Demand
  • Example 2 shifts x 7.5 hours x 60 minutes
  • 145 planes
  • 900 minutes/145 planes 6.2 minutes per plane

15
Build a Jet Organizational Structure
  • Purchasing Agent
  • Manufacturing
  • Quality control
  • Customer Service
  • Finance and Administration
  • Team Leader
  • Individuals can only perform one role at a time

16
Customer Expectations
  • Jet planes will be paper
  • Each plane should have a paper clip on its nose
  • There should be two gold stars on with one on
    each wing
  • The company color logo for each division should
    be placed on the left side of the nose at the tip
    of the plane at the end of the paper clip. There
    should be an equal number of red, blue and green
    logos on planes delivered
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