Value Stream Mapping PDF

124 W.
Polk Street, Suite 101

Chicago, Illinois 60605-2770
Tel 312-294-9900 Fax 312-294-9911
www.proferoinc.com
Value Stream Mapping

See the Flow
Copyright Manos/Alukal 2002

Value Stream Guide
Lean Guide
Tony Manos is a Catalyst with expertise in Lean and
quality. Trained and certified by the Department of
Commerce, National Institute of Standards and
Technology (NIST) in Lean principles and as a trainer in
Lean courses. International speaker on Quality and Lean
Enterprise topics.
Tony Manos
Catalyst
Profero, Inc.
124 W. Polk Street, Suite 101
Chicago, IL 60605-1770
USA
Office: 312.294.9900
Cell: 312.718.0078
Fax: 312.294.9911
Email: anthony.manos@proferoinc.com
Website: www.proferoinc.com
Agenda
Basics of Value Stream Mapping

Product Family
Current State Map
Lean Basics
Future State Map
Plan

Section 1
Project Initiation
Product Family
Current State Map Case Study

Benefits of VSM
Helps you visualize more than the single
process level
Links the material and information flows
Provides a common language
Provides a blueprint for implementation
More useful than quantitative tools
Ties together lean concepts and
techniques
Purpose of this Training
Introduce value stream mapping

as a tool for Lean improvements
Develop your ability to see the
flow and more importantly
where there is no flow

4 Steps for VSM
1. Determine the Product Family

2. Draw your Current State Map
3. Create the Future State Map
4. Develop your plan to get there

VSM vs. Other Mapping
VSM is
Simple to learn, easy to understand
A tool that everyone can use
Helps you see
Has a Value Stream Manager
VSM is not
A process flow diagram
Shop floor layout
Based on old or unreliable information
VSM Team
Typically a cross-functional team of

managers or supervisors
Team size 7-10 people
Have experienced VSM person lead
the session
Have to walk the flow
Commit to the time requirement
Building Blocks of Lean
Continuous Improvement & Kaizen Blitz
TPM JIT Cellular & Flow Pull System & Kanban
Poka-yoke Self Inspection Autonomation
POUS Batch Size Reduction Quick Changeover V

S
Layout Standard Work Visual 5S M
Change Management Teams

Scope of Value Streams
Entire Value Stream
Supplier
Customer
Supplier
Supplier
Customer Customer
Multiple Facilities HQ
Division
Plant Plant
One Facility
Good place to start Process Process Process

Scope Example

Focus on One Product Family
Determine product families by:

Look for similar processing steps and
equipment
By process, not product

Product Family
Process Steps & Equipment
Drill Weld Stamp Paint Manual Fixture Test
Assbly Assbly
Right Handle
X X X X
Left Handle
X X X X
Products
Body
X X X X
Base
X X
Insert
X X X
Switch
X X

Product Family
Process Steps & Equipment
Drill Weld Stamp Paint Manual Fixture Test
Assbly Assbly
Right Handle
X X X X
Left Handle
X X X X
Products
Body
X X X X
Base
X X
Insert
X X X
Switch
X X

Product Family Guidelines
Common process steps

80% similar steps
4 out of 5, 8 out of 10
Takt time >> 25 seconds
unless high volume producer
Not too many products
drives takt time down
Current State Map
Understanding how the floor currently operates
Material and Information flows
Draw using symbols
Start with the door to door flow
Have to walk the flow and get actuals
No standard times
Draw by hand, with pencil and eraser
Foundation for the future state

Current State Icons
Process Box
Customers Go See
Painting
Suppliers
Mon., Shipment- Operator

Wed., Fri.
Truck Data
Box
I Inventory C/T=1 sec Cycle Time
C/O= 1 hr Changeover
Push System Rel.= 98% Reliability
FPY = 95%
Quality
More Current State Icons
Hardcopy
Train Electronic
Cell
Boat
Person
Plane
Fun Current State Icons
?
?
?
Fax
o
&@#$%!

Class Exercise
Case Study
Goodenuff, Inc.
Produces toy fire engines
Traditional Manufacturer
Having problems lately with on-time

delivery and customer satisfaction

Current State Map Setup
Tips
Use 11 x 17 paper, landscape
Use pencil and eraser
Draw by hand
Dont waste time putting it on a computer just to make it look
nice (non-value added time)
Practice, practice, practice
Steps
Customer
Supplier
Process
Information flow
Calculate process time and lead-time
Current State Map Setup
Supplier Customer
information Information Flow Area information
Process Flow Area
Process Time and Lead-time Area

Title Block
Current State Map
Start with
Customer
Information
first

Current State Map
Dewey,
Cheatem &
Howe

Current State Map
Dewey,
Cheatem &
Howe

Current State Map
Dewey,
Cheatem &
Howe
Daily

Current State Map
Dewey,
Cheatem &
Howe
Daily

Current State Map
Dewey,
Cheatem &
5,300 pcs/mo. Howe
Daily

Current State Map
Dewey,
Cheatem &
5,300 pcs/mo. Howe
265 pcs/day
Daily

Current State Map
Dewey,
Add Cheatem &
Howe
Supplier 5,300 pcs/mo.
265 pcs/day
Information
Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Process
Flow

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping Spot Weld

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping Spot Weld Deburr

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping Spot Weld Deburr Assemble

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec
C/O= 4 hrs

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec
C/O= 4 hrs
Rel.= 98%

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec C/T=
C/O= 4 hrs C/O=
Rel.= 98% Rel.=
FPY = 95% FPY =
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec C/T=39 sec
C/O= 4 hrs C/O= 11 min
Rel.= 98% Rel.= 99%
FPY = 95% FPY = 90%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1 =1
C/O= 4 hrs C/O= 11 min
Rel.= 98% Rel.= 99%
FPY = 95% FPY = 90%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1 =1 =1
C/T=1 sec C/T=39 sec C/T=17 sec
C/O= 4 hrs C/O= 11 min C/O= 0 min
Rel.= 98% Rel.= 99% Rel.= 80%
FPY = 95% FPY = 90% FPY = 100%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1 =1 =1 =2
C/T=1 sec C/T=39 sec C/T=17 sec C/T=48 sec
C/O= 4 hrs C/O= 11 min C/O= 0 min C/O= 5 min
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared Inventory
I I I
Information
1,400 1,225
=1 5,425 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Information
5,300 pcs/mo. Howe
Flow 265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Dewey,
Phlye- MRP
Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight L/T= 2 days Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
5,300 pcs/mo.
P/T = 20 min 265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Prod Ctrl Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly
Weekly Schedule Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
Weekly 5,300 pcs/mo.
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
30/60/90 Prod Ctrl Order Entry
Forecast Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Process Copyright
time and Lead-time
Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
1 sec
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
1 sec 39 sec 17 sec 48 sec
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days Copyright Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
C/T=1 sec 5,425 C/T=39 sec C/T=17 sec C/T=48 sec
C/O= 4 hrs 265 C/O= 11 min C/O= 0 min C/O= 5 min
Rel.= 98%
= 20.47 Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days Copyright Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
C/T=1 sec 5,425 C/T=39 sec C/T=17 sec C/T=48 sec
C/O= 4 hrs 265 C/O= 11 min C/O= 0 min C/O= 5 min
Rel.= 98%
= 20.47 Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days 20.5 days Copyright Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days 20.5 days 5 days
Copyright Manos/Alukal 2002 4.5 days
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Copyright Manos/Alukal 2002 4.5 days
1 sec 39 sec 17 sec 48 sec 105 sec
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Copyright Manos/Alukal 2002 4.5 days 40 days
Current State Map
Process
30/60/90 Prod Ctrl time andEntry
Order Lead-time
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Cheatem &
Biknight
Weekly Information Flow L/T= 2 days
P/T = 20 min
Weekly
5,300 pcs/mo.
265 pcs/day
Howe
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Cheatem &
Biknight
Weekly Information Flow L/T= 2 days
P/T = 20 min
Weekly
5,300 pcs/mo.
265 pcs/day
Howe
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
C/O= 4 hrs Process
C/O= 11 min Flow C/O= 0 min C/O= 5 min
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Section 2 Lean Basics
Introduction
History of Lean
8 Wastes of Lean
Lean Building Blocks

History of Lean in Manufacturing
Henry Ford
The longer a product is in manufacture and the more
it is moved about, the higher its ultimate cost. - 1926
Taiichi Ohno of Toyota
Father of the Toyota Production System (TPS).
Identified the original 7 Deadly Wastes and made JIT
and Autonomation Pillars of TPS.
Lean in the United States
Came back over from Japan in 1980s as JIT and
Quality Circles. It failed for most companies because
they did not apply it properly. Revitalized in the
1990s and called Lean.
Mass Production TPS
Lean (US)
Benefits of Lean Manufacturing
Helps in Real Results
0 50 100
Cost reduction
Cycle time reduction Lead Time
Reduction
Waste minimization
Productivity
Elimination of non- Increase
value-added activities
WIP
Resulting in a more Reduction
lean, competitive, Quality
agile, and market- Improvement
responsive company Space
Utilization
Why the Emphasis on Lean Now?
Global economy
Pressure from customers for price reduction
Fast-paced technological changes (e.g. Internet
auctions)
Continued focus on quality, cost, delivery
Higher and higher expectations of customers
Quality standards, such as QS-9000 (or TS 16949),
the new ISO 9000:2000
Holding on to Core Competencies and
outsourcing the rest
Market-driven pricing: Customers expect better
performance at lower prices year after year
Definition of Lean
Lean has many definitions
A systematic approach to identifying and
eliminating waste (non-value-added
activities) through continuous improvement
by flowing the product at the pull of the
customer in pursuit of perfection
- Definition by the MEP Lean Network
Give the customer what they want, when they

want it and dont waste anything.
Definition of Value Added
Waste is any activity that does not add value to
the final product for the customer.
Value-added is an activity that transforms or
shapes raw material or information to meet
customer requirements.
Non-value added is an activity that takes time,
resources or space, but does not add to the
value of the product or service itself.
Non-value-adding, but necessary does not
add value to the product or service but is
required (e.g., accounting, governmental
regulations, etc.).Copyright Manos/Alukal 2002
Lean = Eliminating Wastes
Non-Value Added
Value Added Overproduction
Excess Motion
Excess Inventory
Transportation
Waiting
Underutilized People
Defects
Non-Value Added
Processing
Typically 95% of all lead time is non-value added

Core Concepts of Lean
Creativity before Capital

A solution that is not-so-perfect implemented
today, is better than a perfect solution that is
late. Just do it.
Inventory is not an asset, but a waste/cost.
Typically, 95% of lead-time is not value added.
Lean implementation using the Plan-Do-Check-
Act methodology
Continuous Improvement environment: both
incremental and breakthrough.
Lean is a never-ending philosophy.
8 Wastes of Lean
OMIT What U DO
Overproduction
Motion
Inventory
Transportation
Waiting
Defects
Over-processing
Overproduction
Makingmore-earlier-faster than
the next process needs it.
Just in case logic
Unbalanced workload
Unleveled scheduling

Motion
Any movement of people or machines
that does not add any value to the
product or service
Poor layout
Inefficient Workplace Organization
Lack of Standardization, inconsistent
work methods
People, Material and Machine
Ineffectiveness
Inventory
Any supply in excess of one-piece flow
Just in case logic
Unbalanced workload
Unreliable suppliers
Reward system

Transportation
Movingpeople, materials and
information around the
organization
Poor layout
Inefficient flow
Carrying large inventories

Waiting
Waitingfor man, machine,
materials, information etc.
Just in case logic
Unbalanced workload
Unplanned downtime

Not utilizing peoples experience,
skills, knowledge, creativity.
Not utilizing Teams
Organization structure
Poor hiring practices
Little investment in training

Defects
Rechecking or re-inspecting work
Not using Jidoka or Poka-yoke
Lack of Standardization, inconsistent
work methods
Ineffective communication
Little investment in training

Over-processing
Effort that adds no value to the product
or service from the customers (internal
or external) standpoint
Just in case logic
Inconsistent work methods
Ineffective communication
Redundant approvals
Excessive information, extra copies

Building Blocks of Lean
Continuous Improvement & Kaizen Blitz
TPM JIT Cellular & Flow Pull System & Kanban
Poka-yoke Self Inspection Autonomation
POUS Batch Size Reduction Quick Changeover V

S
Layout Standard Work Visual 5S M
Change Management Teams

Change Management
Lean is not a quick fix
Lean is not for everyone
Incremental and Breakthrough improvements
Prepare and motivate people
Employee involvement
Identify Champions
Reward and recognition
What if we dont get better and our competition
does?
Lean Teams
Cooperative instead of competitive
Cross-trained
Cross-functional
Improvement teams are examples of
creativity before capital
Input and involvement valued by
management
Pooling of team skills, talents and knowledge
Mutual support for each other
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5S Workplace
Organization and
Standardization
A place for everything and
everything in its place

5 Words that begin with S
Japanese Translation Conversion *Other

Seiri Organization Sort Sorting
Simplifying
Seiton Neatness Set in order
access
Seison Cleaning Shine Sweeping
Seiketsu Standardization Standardize Standardize
Self-
Shitsuke Discipline Sustain
discipline
* There are several other conversions

Sort
When in doubt, move it out
Move unneeded items out of the area
Use the Red Tag Technique
Use a Temporary Red Tag Holding
Area Name____ Date___
Criteria for unneeded items Item _____________

30-day Rule Reason _________
Keep only what you need in the area

Set in Order
A place for everything and
everything in its place.
Make it easy for anyone to find
30-second Rule
Make it obvious if an item is out of place
Decide where to keep items, how many items
to keep, how and when to replenish items
Make it visual

Shine
Clean and Inspect
Get items to a like-new condition
10 Second Rule
Must plan Shine assignments &
supplies
Perform as a Team
Prevent dirt, grime, or contamination
Repair as needed
Standardize
Create the rules and follow them
Determine how the first 3S
conditions are met
Use One-Point Lessons
Maintain and monitor the
conditions
Use visual techniques
Sustain
Make 5S a habit
5S is not something additional, it is
part of everyones daily job
Supports discipline
Train
Communicate
Support from Management
Reward and recognition
5S in the Office
After
Before

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Visual
Signs, lines, labels and color coding

Why Visual?
What you need to know
Cockpit view
Information sharing
How do you know where to park
when you drive your car to work?
Does your boss have to tell you
where to park?
Visual Examples
Andon Lights
Display Panels
Range
Markings
On Gauges
Shadow Boards
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Standard Work
Reduce task variability

Standard Work
Best Sequence of Operations
Man, machine, materials,
changeovers, etc.
Identifies value added versus non-value
added activities
Reduce or eliminate NVA activities
Convert internal time to external time
Use for continuous improvement
Benefits of Standard Work
Consistent performance of tasks = better
quality
Track performance = actual versus
standard for continuous improvement
Easy to Train = reduced learning cycle
time
Old Learning Curve New Learning Curve
Productivity
Productivity

Time Time
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Layout
Streamlined Layout

Streamline Layout
Flow by product family the output of one
process is the input for the next
Created with input from employees
Flexible, easy to change
Short distances, small batches
Visual, good communication
Concentrate on reducing waste and non-value
added activities like Motion & Transportation
A B C

Spaghetti Diagram Example
Tracked 4 People
for 30 Minutes

Traditional versus Lean Factory
Traditional Factory
Lean Factory
Machining
Assembly Assembly Machining Support
Support
Traditional Lean
Factory Capacity 125,000 120,000
Factory Size (Sq ft) 500,000
170,000
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Value Stream Mapping

See the Flow

Four Steps for VSM
1. Determine the product family

2. Create current state map
3. Create future state map
4. Develop plan

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Point-of-Use-Storage
Keep it where you use it

Point-Of-Use Storage
Raw material and WIP are stored at
workstation where used, which
reduces the inventory that can be
carried
Works best if vendor relationship
permits frequent, on-time, small
shipments (JIT)
Simplifies physical inventory tracking,
storage, and handling
POUS Workplace Zones
Items used most often
(i.e., daily) should be
kept within reach
Items used less often
(i.e., weekly) should be
kept close-by
Items used rarely (i.e., Daily
monthly) should be kept Weekly
in the vicinity
Monthly

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Batch Size Reduction

Make one, move one

Batch Size Reduction Example
1 minute per page, 10 pages, 3-steps
Step 1 2 3
+ + Total 30 min
Fastest 21 min
10 min 10 min 10 min
Batch Size = 10

Batch Size Reduction Example
1 minute per page, 10 pages, 3-steps
Step 1 2 3
+ + Total 30 min
Fastest 21 min
10 min 10 min 10 min
Batch Size = 10
+ + Total 12 min
Fastest 3 min
1 min 1 min 1 min
Batch Size = 1 Copyright Manos/Alukal 2002
Information on Batch Size
Reduction
The best batch size is one piece flow, or
make one and move one!
If one piece flow is not appropriate, reduce
the batch sizes to the smallest size possible
In some cases, one-piece might be one tray
or pallet or container of parts
Affected by quick changeover and workplace
layout
Responsive to demand, makes the
organization more flexible
Batch Versus Flow
Make-one, Move-one
Complete Order First Piece Defect Detection

Improvements
35
30
30 60% 86% 91%
25 21
20
15 11 12
10
5 3
1
0
Batch Flow
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Quick Changeover
Changeovers in less than ten
minutes

Quick Changeover (QCO)
Definition of changeover time: the

time from the last good piece off
the previous run to the next good
production piece from this run
SMED or Single Minute Exchange of
Dies means quick changeover
within a single digit in minutes
(under 10 minutes)
Example of QCO Impact
2 hour C/O
9
8
7
6
5
4
3 A B C D E
2
1
0
Monday Tuesday Wednesday Thursday Friday
1 hour C/O
9
8
7
6 B D A C E
5
4
3
2
1
A C E B D
0

Example of QCO Impact
1/2 hour C/O
9 E
8 C
E B
7 B
6 D
5 B
D A
4
A
3
2 C
A C E
1 E
0
Impact Before QCO 1 Hour C/O Hour C/O

Production 30 hours 30 hours 34.5 hours
C/O time 10 hour 10 hours 5.5 hours
No. of C/O 5 10 11
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Autonomation
Self Inspection
Poka-yoke
You cannot pass a bad part on to
the next operation

Explanation
Autonomation (Jidoka) Requires

operator intervention if an error
occurs
Self Inspection Operator is
responsible for the quality of their
work
Poka yoke Error-proofing,
prevents an error from occurring
Cannot Pass Bad Parts On
The combination of jidoka, poka yoke

and self inspection will ensure that
no defect will occur, or if a problem
does happen, the process
immediately shuts down and calls
for human intervention to fix it.

Autonomation
A technique to ensure that only good

parts are produced and passed on; this
defect detection system manually
(human automation) or automatically
stops production if a problem occurs
Will have a device to detect errors or
abnormalities
Will have a device to automatically shut
down machine if a defect occurs
Autonomation Example
Sensors determine if an element is correctly
in place
The machine automatically stops if an
element is missing
This ensures that all parts (100%) have an
element inserted
Sensors Copyright Manos/Alukal 2002

Self Inspection
The operator is responsible to ensure
a defective part is not passed to the
next operation
Training, tools, standards must be
provided to the operator
Use SPC or other mechanisms of
feedback
Design quality into the system versus
detection
Poka-yoke
Error proof (mistake proof) takes away the
possibility of human error
The term Poka-yoke was made popular by
Shigeo Shingo
Fail-safe devices
Low cost, highly reliable mechanisms
Detects abnormal situations before they
occur, or
Once they occur, will stop the equipment
from further production. The machine
stoppage makes the problem visible.
Poka-yoke Example
The plastic tray is
designed to have a
Locator Pins
notched corner
When material is
placed into the
machine, the pins
prevent it from
being inserted
incorrectly Notched corner
This ensures 100%
correct orientation
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Total Productive
Maintenance
Have the equipment available
when you need it

Evolution of TPM
Breakdown Preventive Predictive TPM

Maintenance Maintenance Maintenance
Older times Now

What is TPM?
A Lean maintenance strategy for maximizing
equipment reliability and uptime
Share responsibility for equipment reliability
Eliminate equipment related waste:
Unplanned downtime
Planned downtime
Changeovers
Minor stoppage
Speed reduction
Poorer quality product
Idled equipment Copyright Manos/Alukal 2002
OEE Calculation
OEE = Availability x Performance x Quality
Breakdowns Idled time Defects

Examples Setup Not at rated speed Rework
Tool changes Minor stoppages Start-ups
Uptime Standard Number of Number of

= Scheduled x Cycle Time x Pieces Produced x Good Pieces
Production Uptime Total Number
Time Produced
OEE Example
OEE Example for 4 linked machines

Overall
OEE OEE OEE OEE OEE
78% 33% 45% 63% 7%
.78 x .33 x .45 x .63 = .073

World Class OEE Measures
Discrete Part Manufacturing = 85%
Continuous Processing = 92%
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Cellular and Flow

Production
No WIP, No Waiting

Cellular/Flow
Definition: Linking and arrangement

of manual and machine process
steps into the most efficient
combination to maximize value-
added content while minimizing
waste.

Cellular/Flow
Value is added any time we physically change
our product towards what the customer is
buying.
If we are not adding value, we are adding cost
or waste.
Flow Manufacturing drives the systematic
elimination of waste.
Will help in collapsing the lead time closer and
closer to actual value-adding processing time.
Cellular/Flow production results in no WIP, no
Waiting. Copyright Manos/Alukal 2002
Demand Change Example
Time Available = 27,000 sec
Demand = 300 units
Takt Time = 90 sec
Process 1 Process 2 Process 3 Process 4 Process 5
In C/T = 45s C/T = 45s C/T = 15s C/T = 15s C/T = 30s
C/T = 30s
Process 6
Out
C/T = 30s C/T = 30s Copyright
C/T = 60s 2002 C/T = 30s
Manos/Alukal C/T = 30s
Demand Change Example
Time Available = 27,000 sec
Demand = 450 units
Takt Time = 60 sec
In C/T = 45s C/T = 45s C/T = 15s C/T = 15s C/T = 30s
C/T = 30s
Process 6
Out
C/T = 30s C/T = 30s Copyright
C/T = 60s 2002 C/T = 30s
Manos/Alukal C/T = 30s
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Pull System
Replenish at the Demand of the
Customer

Push Vs. Pull
Push Pull
Based on Based on Actual
Schedules from Customer Usage
Forecasts Only produce
Make product when product is
whether or not consumed
the next
operation needs it
Push Pull
Kanban
Kanban = Sign, signal

Order point when to replenish the
supermarket
Order quantity the amount to
replenish the supermarket

Order Point Order Quantity
Order Quantity
=2
Process B Process A
In this example,
Process A can produce Order Point
faster than what =4
Process B needs. Copyright Manos/Alukal 2002
6 Kanban Rules
You cannot send bad product to the

next operation
Only withdraw what is needed
Only produce what is used
Smooth the workload
Standardize
Keep improving
Supermarkets
When a supermarket
shelf is full, you cant
fill it any more
I need
When a supermarket some
shelf is at the order Bs
point, you fill it A
Make it
It is a controlled Visual
inventory C
Calculate the correct D
size and audit as
needed Copyright Manos/Alukal 2002
JIT
JIT= Just in time
JIT is not just for your Suppliers, you
must perfect JIT within your own
operations
JIT is the opposite of Overproduction
Delivery just before the next
operation needs it
Dont make it earlier, faster, or
before it is needed
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Continuous
Improvement
Continuous Improvement (C. I. or
Kaizen, in Japanese), is an essential
and never ending process

Sources for Continuous Improvement
Employee suggestions
Corrective & Preventive actions
Non-conformities, defects
Customer complaints, returns
Benchmarks
The Lean wastes
Variations from the standard
Assessments, audits & competitive analyses
Research & Development activities
Continuous Improvement &
Continuous Learning
Management should have training given to
employees in Lean and quality tools, problem
solving and root cause analysis, the process
model, concepts of Theory of Constraints,
basic statistical techniques, graphical tools,
etc.
Understanding of Plan-Do-Check-Act and
Standardize-Do-Check-Act (SDCA) will be
beneficial
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Kaizen Blitz
Breakthrough Strategies for
Lasting Results

Kaizen Blitz
KAI + ZEN
Change For the better
KAIZEN
Continuous Improvement
BLITZ
Flash or Lightning
Kaizen Blitz is Service Marked by AME (Association for Manufacturing Excellence)
What is Kaizen Blitz?
Kaizen Blitz is a combination of the Japanese
word Kaizen for continuous improvement
and the German word Blitz for lightning
It is a focused, typically week long project
where a cross-functional team reviews a
process, identifies and eliminates waste,
thereby achieving dramatic & tangible BREAK-
THROUGH (rather than incremental)
improvement results
Also called, Rapid Kaizen, Kaizen Event, etc.
What is Kaizen Blitz?
It is treated more as a Project and

not as a Process
For Kaizen Blitzes to succeed, Top
Management commitment is critical
Kaizen Blitzes are aligned with
companys strategy
Creativity before Capital is the
motto
Kaizen Blitz Improvements
Reduce space Make optimal
Reduce use of peoples
Inventory knowledge, skills
Reduce overall and experience
cost Maintain or
Reduce motion improve quality
or transportation Implement fast
waste strategies
Cut lead-time Copyright Manos/Alukal 2002
Section 3 Future State
Future State Concepts

Case Study Future State

Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
FUTURE STATE QUESTIONS
1. What is the Takt Time?
2. Will we build to shipping or to a supermarket?
3. Where can we use continuous flow?
4. Where do we have to use supermarket pull
system?
5. At what single point in the production chain do
we trigger production?
6. How do we level the production mix at the
pacemaker process?
7. What increment of work will we release and
take away at the pacemaker process? (Leveling
the volume)
8. What process improvements will be necessary?
(e.g. uptime, changeover, training)
1. What is the Takt Time?
Takt means drumbeat

Ability to meet customers demand
Formula
Time Available
Takt Time =
Demand

Takt Time Calculation
Time available
Shift (8 hours) = 480 mins
Breaks (2 x10) - 20 mins
Lunch - 30 mins
Meetings - 5 mins
C/O - 5 mins
Total Time = 420 mins = 25,200 sec
Demand = 265 parts
Takt Time = 95 sec/part
Problem with Goodenuff
Cycle time from our Current State Map

= 105 sec
Takt time is 95 sec
They cannot produce to demand!
Late shipments
Dissatisfied customers
Bumping in the schedule

2. Build to Shipping or
Build to Supermarket?
Ask the question Can we build it
within the time the customer
requires?
Customer Order Receive Complete

Order Raw Materials Raw Materials Order

Build to Shipping
We can take the customer order

Receive the raw materials
Produce the product
Ship the product
All in less than the delivery date
required by the customer

Build to Supermarket
We cannot take the customer order

Receive the raw materials
Produce the product
Ship the product
All in less than the delivery date
required by the customer

Supermarkets
Supermarkets are controlled

inventory
Think of the supermarket shelf
When it is low, it is filled up
When it is full, no more is produced
Bread man story

3. Where can we Flow?
Where can we combine work?

Where can we eliminate inventory?
Can we make a Cell?
Is the equipment dedicated or shared?
Where can we eliminate waste?

4. Where do we use a
Supermarket Pull System?
Are there monuments that cant be
moved?
Are there long process times or
changeover times?
Are materials sent to outside processing?
Is there shared equipment?
Kanban system
5. At what single point in
the production chain do we
trigger production?
In the Current State we had multiple
schedules, weekly schedules,
departmental schedules, etc.
In the Future State we only want one
schedule to drive production
Where will the schedule start?

6. How do level production
mix at the Pacemaker
process?
Pacemaker = the process where the
single schedule drives production
Leveling or Heijunka
Heijunka box or Level Loading symbol
OXOX
EPEI = Every Part, Every Interval

Linearity & Leveling for
Volume
Production Customer Demand

Leveling for Mix - Poor
Weekly Mon Tue Wed Thur Fri
Demand A A C C D
A =6 A B C C D
B =4 A B C C D
C =8 A B C D D
D =7 A B C D D
What do you tell Customer D if they want parts on Monday?

Are these jobs repetitive and boring?
What happens if Customer A calls Monday afternoon and
cancels the order?
Leveling for Mix - Better
Weekly Mon Tue Wed Thur Fri
Demand A A A A A
A =6 B B B B A
B =4 C C C C C
C =8 C D C C D
D =7 D D D D D
Requires Quick Changeover

More flexible
Better quality
Less inventory Copyright Manos/Alukal 2002
7. What increment of work will we release
and take away at the Pacemaker process?
Pitch
Management intervention time frame
Know the pitch time increment
Know when a problem occurs
Respond quickly
Element Timeframe
Pack-out quantity Takt Seconds
Paced withdrawal Pitch Minutes
Material Handler Shift Hours
time frame or milk run Customer Days
8. What process improvements
need to be made?
Look at the Future State Map and
determine where improvements have
to be made from the Current State to
get there
These become the projects to work on
They can be performed in Kaizen Blitz
mode or as a longer project based on
need
C/0 = 4 hours
What to look for
Any changeovers greater than 10 minutes

Inventory
Flow or Cells
Reducing or eliminating waste or non-value
added processes
Long cycle time
Low quality of First Pass Yield (FPY)
Low reliability of equipment
Case Study Future State
Lets look at Goodenuff and answer

the eight questions
Dont forget the time frame 6
months, 12 months, 18 months or ?
New symbols for Future State Maps

Future State Icons
Withdrawal
Supermarket
Kanban arriving
in groups
Production
Kanban Kanban
Withdrawal Path
Kanban
Batch Kaizen
C/O = 8 hrs
Kanban Copyright Manos/Alukal 2002
Event
Future State Map
2 days
20 min
Q1. What is the Takt Time?MRP
Phlye-
Forecast
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
A. 95 seconds Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
A. 95 seconds Daily o
l m
e ld t
rob bui e
Stamping Spot Weld Deburr p t Assemble
im
s t no T
r
Fi can I akt c. to
Shared
I I I e e T s e ed
1,400 W t1,225h 9 5 n e he
2 Weeks =1 5,425 =1 =1 i ll e =2
t e
e w ov i m
C/T=1 sec C/T=39 sec C/T=17 sec W p r T sec
C/T=48
im cle
C/O= 4 hrs C/O= 11 min C/O= 0 min y
CC/O= 5 min
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q2. Build to Shipping or Build
Phlye-
Forecast
MRP MRP
to a Supermarket?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP MRP
to a Supermarket?
Monthly Dewey,
Weekly Cheatem &
Weekly
A. Our customers require delivery
Daily in less time
ofStamping
our ordering raw
Spot Weld materials and making
Deburr Assemble
I
the product.
Shared
I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Build
C/T=1 to
sec a Supermarket
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP MRP
to a Supermarket?
Monthly Dewey,
Weekly Cheatem &
Weekly
A. Our customers require delivery
Daily in less time
ofStamping
our ordering raw
Spot Weld materials and making
Deburr Assemble
I
the product.
Shared
I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Build
C/T=1 to
sec a Supermarket
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q.3 Where can we flow?
Phlye-
Forecast
MRP MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q.3 Where can we flow?
Phlye-
Forecast
MRP MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Dedicated equipment
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Create a Cell
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Eliminates inventory and multiple schedules
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q4. Where do we use a Supermarket
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Raw materialsWeekly P/T = 20 min 265 pcs/day

Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Shared Weekly
resources P/T = 20 min 265 pcs/day

Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q5. Where do we trigger production?
Phlye-
Forecast
MRP
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q5. Where do we trigger production?
Phlye-
Forecast
MRP
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q6. How do we Level the production
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q7. What increment of work
Phlye-
Forecast
MRP
MRP
will we release?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q7. What increment of work
Phlye-
Forecast
MRP
MRP
will we release?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
A. Based on our customers requirements and
SW/Deburr/Assemble
Stamping
the pack-out
Shared
quantity
12 boxes per case =4
Pitch=1= 12 boxes per case x 95 sec per unit

= 19 minutes C/T=17 sec C/T=48 sec
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q8. What process improvements
Phlye-
Forecast
MRP
MRP
are necessary?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
C/T =
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
104 sec
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Scheduling 265 pcs/day
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
hrs C/O= 11 min C/O= 0 min C/O= 5 min
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
30 day Prod Ctrl Order Entry
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Lets
Phlye-
recalculate the Cycle Time
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Lets
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Lets
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
As an estimate, how much
Scheduling
inventory do
Weekly we want to keep Daily
OXOX in OXOX
Daily
the Supermarkets?
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Lets
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
As an estimate, how muchScheduling
inventory do
Weekly we want to keep Daily
OXOX in OXOX
Daily
the Supermarkets?
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
3 days C/T=1 sec C/T=39 sec 2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Lets
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
3 days 2 days Copyright Manos/Alukal 2002 2 days
Future State Map
2 days
20 min
Lets
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
3 days 2 days Copyright Manos/Alukal 2002 2 days
1 sec 90 sec
Future State Map
2 days
20 min
Lets
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
3 days 2 days Copyright Manos/Alukal 2002 2 days 7 days
1 sec 90 sec 91 sec
Future State Map
2 days
20 min
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Lets look at support area improvements
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Lean is not just for the
shop floor
How can we apply this to other areas?
Requires creativity
Must be open minded
Continuous improvement philosophy
Nothing is sacred, abandon the Thats

the way weve always done it attitude

10 Future State Questions
1. What are our customers needs (internal and
external)?
Who are our customers?
What do they want?
How much variation in demand rate?
When do they want it?
What quality do they expect?
Can we establish a pace or rhythm?
2. What steps add value and which ones are waste?
Is this really needed or can it be improved or
eliminated? Copyright Manos/Alukal 2002
3. What is the frequency and method of performance
checks?
How often do we track performance to stay on
track?
How do we make the measurements visual?
4. How can work flow with fewer interruptions?
Are smaller batches possible?
5. How will work be controlled between
interruptions?
How do we prioritize the work?
How do we minimize waiting?
6. How do we balance the workload?
Can we have more than one person perform the
task?
How can we level the volume or mix of work?
7. How do we prioritize the work?
What system allows us to work on the most
important items first (versus urgent)?

8. What is the impact of activities, volume of
workload and improvements?
If we improve one area how do we ensure it
doesnt adversely affect other areas?
9. What other supporting processes are required?
Which other departments are needed to help
implement a Future State?
10.What process improvements are necessary?
What projects can be performed in Kaizen Blitz
mode?

Future State Map
2 days
20 min
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
2 days
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
2 days
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Measurable Improvement
Lead-time 40 days 7 days
Cycle time 105 sec 91 sec
Inventory 10,700 pcs 1,855 pcs
Kaizen events
Stamping changeover time
Deburring reliability
Spot weld quality
Other benefits
Operators in cell cross-trained
More flexibility
Reduced lead-time and defects = happier customers
What to look for
Any changeovers greater than 10 minutes

Inventory
Flow or Cells
Reducing or eliminating waste or non-value
added processes
Long cycle time
Low quality of First Pass Yield (FPY)
Low reliability of equipment
Section 4 The Plan
Most critical part of Value Stream

Mapping
The ultimate benefit of VSM

Achieving the Future State
1. Break the Future State Map into a

series of loops
2. Create a Value Stream Plan
3. Conduct a Value Stream Review

Value Stream Loops
Start with Pacemaker Loop
where the schedule triggers
production
Break it into manageable sizes
Too many loops may cause
confusion

Value Stream Loops
Q. How do you eat an elephant?
A. One bite at a time.

Number of Loops
Make it manageable
Not too may
Not too few
Look for logical breaks
Thumb rule
Probably somewhere between 3-7 loops
Remember the point is to make it
easier for implementation
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Start with the Pacemaker Loop
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min Loop 1
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
Loop 2 20 min Loop 1
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
Loop 2 20 min Loop 1
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Loop 3 C/T=17 sec C/T=48 sec
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
The Plan
People dont plan to fail, they fail to

plan.

Creating the Future State
Plan
Use good Change Management
principles
Use good project management
principles
The VSM Team should create the draft

Project Management
Define and plan the Plan for resources such
project activities as
Track the progress Costs
Manage schedules, Quality
resources, costs, scope Risks
and risk Communication
Report the project Human resources
status
Scope
Perform a final review,
closeout and lessons Time
learned Procurement
Types of Actions
Project
Subproject
Tasks
Kaizen Blitz mode

Plan Obstacles
Beware!
People may not want to commit
themselves or their resources
Remember not to optimize one area while
sub-optimizing another area
Overall efficiency is the goal, not
individual efficiencies
Dont overload the front end of the
project
Future State Plan and
Business Objectives
Tie your plan into your organization's
strategy, objectives or goals
This will help to ensure support
Will make senior management aware
of the improvements that are possible
and the positive impact for the
company
Build buy-in
Planning Matrix
Use a Planning Matrix, Gantt Chart or

something similar to document the
planning effort
Show the steps, time table and
responsibility

Value Stream Planning
Matrix
DATE SIGNATURES
FACILITY PLT ENG MAINT
MGR MONTHLY SCHEDULE MGR
VS MGR
PRODUCT VS VS GOAL PERSON RELATED REVIEW
(MEASUREABLE) IN IND./ SCHED
FAMILY LOOP OBJECTIVE DEPTS
BUSINESS CHARGE
OBJECTIVE
IMPROVE 1 CONTINUO ZERO WIP

PROFITA- US FLOW
BILITY IN FROM WELD
STEERING ASSMBLY
BRACKETS
2 STAMPING 1 DAY
PULL INVENTORY
STAMPING BATCH SIZE
C/O
3 PULL FOR DAILY

COILS DELIVERY
WITH 1.5 DAYS OF
DAILY COILS AT
DELIVERY PRESS Copyright Manos/Alukal 2002
The Plan
Product VS VS Objective GOAL Time Frame Leader Other

Family/Busine Loop (Measurable) Depts.
ss Objective
Improve 1 Continuous Zero Wip

profitability flow from
in Fire Truck welding to
line assembly

Prioritize the Plan
While developing the draft plan:

Determine the possible projects in the agreed
to time-frame (6 months, 1 year, 18 months)
Prioritize the projects
Baseon impact or customer
Concurrent projects and critical path projects
Remember, this is whats best for the

Value Stream not a manager or
department Copyright Manos/Alukal 2002
Value Stream Plan
Review
The Value Stream Manager
evaluates progress on each
implementation item
Use Arrow Analysis or other visual
means

Communicate progress
The Value Stream Manager walks the

floor to gather progress information
Communicate the progress to the
Work teams, Champions and Design
teams
Post results on the communication
board

Communication is Key
As part of good Change Management, we
must communicate consistently and
constantly
Fear of the unknown produces anxiety
about the change
Use the Current State Map, Future State
Map, Plan and Review to communicate
Communicate, communicate, communicate!
Communication Example
Communication Board
VSM Manager Value Stream Board
VSM Team Current Future Team
VSM Current State
VSM Future State Plan Review Notes
Value Stream Plan
Value Stream Review
Hold brief meetings at the VSM Board
Role of the Review
The Value Stream Manager is to

remove roadblocks from
implementation
The Value Stream Manager can re-
allocate resources to keep the plan on
track

Additional Information
About VSM
Beyond the basics

Additional Information
The Value Stream Manager

Examples of information flow in
support areas
Communication
Value Stream Life Cycles

The Value Stream
Manager
Appoint a Value Stream Manager
VS Manager is responsible for
achieving the Future State
Has the ability to remove all obstacles
to implementation
Not the traditional departmental
manager
Has the vision to lead the Lean efforts
Value Stream Managers
Role
The Value Stream Manager is high
enough in the organization to ensure
that the Future State is implemented
They can cross the traditional
functional boundaries to make things
happen
Top Management has to support the
Value Stream Manager by providing
resources and walking the talk
Information Flow
Support areas or functions may look at
information differently than the shop floor
Substitute Processing Time (P/T) for Cycle
Time (C/T)
Ask the question If you had no interruptions, how
long would it take you to finish this task?
Use Lead Time (L/T) for the amount of NVA
time, waiting or batching of tasks
Ask How long before this paperwork moves to the
next process step?
Other Data Box Information
Number of Shifts Quality, Scrap, Yield

Number of People Overall Equipment
per Shift Effectiveness - OEE
Energy used (lean- Takt time
green) electricity, Every Part, Every
air, fluids oil, Interval EPEI
hydraulic Date
Quantity, Pieces, Schedules
Boxes, Pack-out,
Pallets Copyright Manos/Alukal 2002
VSM Life Cycles
Current State 1 Future State 1
Future State 1 = Next Current
State
Next Current State Future State 2
Continuous
Current State Future State Improvement

Multiple Value Stream Maps
Once you get one Product Family up

and running look to the next VSM
Start the next VSM when you feel you
have the resources and the first VSM
is on its way
You will run multiple Value Stream
Maps at the same time

Benefits of VSM
Helps you visualize more than the single
process level
Links the material and information flows
Provides a common language
Provides a blueprint for implementation
More useful than quantitative tools
Ties together lean concepts and
techniques
Conclusions
Practice VSM every chance you get

You must have a plan!
Focus on achieving the Future State
The eraser is
your best friend!
Questions?
Wrap-up
Evaluations
Thank you

Contact Information
Tony Manos
Catalyst Do not hesitate to
contact me if you have
Profero, Inc.
any comments or
124 W. Polk Street, Suite 101 questions.
Chicago, IL 60605-1770
I wish you great success!
USA
Office: 312.294.9900
Cell: 312.718.0078
Fax: 312.294.9911
Email: anthony.manos@proferoinc.com
Website: www.proferoinc.com

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124 W.

Polk Street, Suite 101

Value Stream Mapping

Copyright Manos/Alukal 2002

Basics of Value Stream Mapping

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Introduce value stream mapping

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1. Determine the Product Family

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Typically a cross-functional team of

Continuous Improvement & Kaizen Blitz

TPM JIT Cellular & Flow Pull System & Kanban

Poka-yoke Self Inspection Autonomation

POUS Batch Size Reduction Quick Changeover V

Change Management Teams

Copyright Manos/Alukal 2002

Good place to start Process Process Process

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Determine product families by:

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Common process steps

Draw by hand, with pencil and eraser

Foundation for the future state

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Mon., Shipment- Operator

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Produces toy fire engines

Having problems lately with on-time

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Process Flow Area

Process Time and Lead-time Area

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Stamping Spot Weld

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Stamping Spot Weld Deburr

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Stamping Spot Weld Deburr Assemble

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Stamping Spot Weld Deburr Assemble

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Stamping Spot Weld Deburr Assemble

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Stamping Spot Weld Deburr Assemble