Ferguson and Associates

Applying Lean Tools to Add Value

Process Analysis Tools

Value Stream Mapping:  A tool to help identify value added activity

Many Lean practitioners start with mapping the value stream, a value added exercise, but shouldn't the first step be to establish a business case?  Once you have a clear definition of the objective, a value stream map will identify areas of opportunity that will achieve your objectives.  The following steps may be useful in constructing your value stream map.

VSM Steps

1.  Understanding the Value Stream Map

  • Review the key terms:
    • Takt time
    • Pull systems
    • Push systems
    • Key VSM icons (draw sample VSM using the icons)Bottom line (two step line from supplier to customer that shows NVA in lower step and VA in upper step for each operational box)

  • Process box

    • Customer box
    • Operational boxes (use no more then four or five)
    • Operator cycle time
    • Set-up time
    • Shifts
    • Number of associates at each operation
    • Inventory triangles
    • Production control
    • Kaizen lightening burst

 

2.  Drawing the VSM

  • Keep it simple (no more then four or five operational boxes)

  • Work with single group of tasks that have similar operations (e.g., major maintenance)

  • Work backward through the process, starting with the customer

  • Define the customer:

  • Who they are

  • What is the demand (time)

  • Scheduled (frequency)

  • How is material (replacement part) identified and delivered

  • How is work scheduled

  • Fill all the data boxes as you work backward

  • Calculate VA:NVA ratio (usually less then one percent, world class is ten percent)  

3.  Future state

  • Questions to ask:
    • Is it possible to have a steady rate of work?
    • Should one site be the center of excellence for multiple sites?
    • What will customers expect in one year?  Five years?  Ten years?
    • What / who is your competition?
    • What five things would your competition do if they wanted to put you out of business?
    • Where is our weakness as perceived by the competition?  By the customer?
    • What improvements are necessary for the future state?
    • Where can you have a Kaizen burst?
    • Can inventories be reduced?
    • How can you reduce inventory and always have what you need?
    • What technology will be available in one year?  Three years?  Five years?
    • What can you do today?  This month?  This quarter?
    • How can operations help service?

Spaghetti Map

A tool to show material movement as a product flows through the process.  This graphic map presents a dramatic view of the wasted time and space a product consumes on its way to completion.

 

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