Value Stream Mapping in a Manufacturing Environment
February 1, 2002
Presented By:Rhonda Salzman
LAI Research Assistant
Stakeholders
Corporate Level
Business Unit
Product Strategy Product Strategy
Suppliers Suppliers Product Product DesignDesign Manufacturing Manufacturing MarketingMarketing
Requirements/Considerations/Constraints
Manufacturing System Design/Selection
Implement (pilot)
Evaluate/Validate
Rate Production
[Interpret]
[Seek approval]
DFMA, IPT3-DCEConcurrent Engineering
• VSM • Kaizen• Trial & Error• Kaikaku
- Miltenburg, - 3P, - 2D plots, - MSDD - AMSDD - design Kaizen
Manufacturing System Manufacturing System DesignDesign
Mo
dif
icat
ion
s
Fine Tune
Finalized Product Design
Make/BuyRisk-sharing Partnerships
- Analytical Tools, - Simulation Tools
Customer NeedsTechnical FeasibilityFeasible performance guarantees
Evaluation Loop
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Initiative
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Current Value Stream Map
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Future Value Stream Map
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Research Motivation
ØMany instances where VSM has been seento:
ØHelp to identify wasted movements and steps
ØSee flow of the product
ØReduce lead times considerably
ØSave money!
But even with all these successes there areplenty of failures… WHY?
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LeanAerospace
Initiative
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Key Research Questions
Ø Is there an environment where VSM isappropriate?
ØHow do you measure success of a VSM event?
ØWhat are the limitations of VSM?
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Is their an environment whereVSM is appropriate?
5 Environmental Characteristics that help todetermine the success of a VSM event:
Ability to Generalize
Product Complexity
System Capability
Type of Organization
Investment
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SU
CC
ES
S
5 PROPOSED ENVIRONMENTAL CHARACTERISTICS
VSM not appropriate
VSM appropriate
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(1) Ability to Generalize
ØThe ability to pick a representative part
ØSimilar process steps as the majority of theproducts that go through the system
Ø Information system, Product Flow, Cycle Times, Yields
ØObsolescence of the map due to product orprocess changes.
If the map does not represent the problems ofthe area then it will solve the wrong problems.If the map does not represent the problems ofthe area then it will solve the wrong problems.
(1)
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(2) Product Complexity
ØLevel of difficulty associated withproduction of a part including serial andparallel processing.
Product complexity affects the ability todifferentiate between VA and NVA.
Product complexity affects the ability todifferentiate between VA and NVA.
(2)
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(3) System Process Capability
ØGeneralized technological ability torepeatedly make something with minimalintervention and minimal disruptions (scrap,rework, shortages).
If the steps are unreliable, there will be noability to use continuous flow.
If the steps are unreliable, there will be noability to use continuous flow.
(3)
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(4) Type of Organization and(5) Investment
ØType of organization - Level of innovativeness(change) supported on the factory floor.
Ø Investment - Availability of money and laborto make change.
Without the availability of money, labor andleadership no implementation will occur.
Without the availability of money, labor andleadership no implementation will occur.
(4)(5)
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5 ENVIRONMENTAL CHARACTERISTICS
VSM not appropriate
VSM appropriate
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Ø Types of successØ Skills & knowledge (problem solving/lean)
Ø Motivation for change
Ø Broadening perspective (of flow of the product)
Identification of solutions (and a way ofmeasuring them)
Attempt at changing the system (implementingthe solutions)
Achieving measured goal
How do you measure successof a VSM event?
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5 ENVIRONMENTAL CHARACTERISTICS
VSM not appropriate
VSM appropriate
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Link between environmentalcharacteristics and success
CurrentState
CurrentState
FutureState
FutureState
ImplementationImplementationCOMPLEXITY
CAPABILITY
ORGANIZATION
INVESTMENT
GENERALIZE
VISION
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Thoughts?
ØQuestions?
ØComments?
ØThoughts?
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Survey
ØVerification of matrix is necessary
ØCurrently working on
ØCase Study Visits and Conference calls
ØWeb survey
(Need Additional Surveys!)
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Data Correlation Options
All factors are equal
Ø Corr. should be seen for every factor and total
1 Factor or group is more important
Ø Weighted average
Any one factor can make or break it
Ø Changes depending on the situation
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Case Studies
0
1
2
3
4
5
5 10 15 20 25
Total of 5 Categories
Su
cces
s
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Non weighted all data
0
1
2
3
4
5
0 5 10 15 20 25
Total
Suc
cess
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Weighted Correlation
WeightingGeneralize 1.179594Complexity 1.016253Capability 0.414322Organization 2.400227Investment 0
R2 = 0.2247
1
1.5
2
2.5
3
3.5
4
4.5
5
0 5 10 15 20 25
Weighted Inputs (optimal)
Su
cces
s
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Low Hanging Fruit
0
1
2
3
4
5
6
0 2 4 6
Capability
Su
cces
s
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Conclusions
Ø 5 Proposed Environmental Characteristics
ØRelationship between Characteristics andSuccess
ØSurvey can be found at
Øhttp://web.mit.edu/rsalzman/survey
ØRecommendations welcome