• "Value" is what the customer is buying
• A capability provided to a customer
of the highest quality,
at the right time,
at an appropriate price,
as defined by the customer.
• Planning tool to optimize results by eliminating waste
• Removes wasted steps and improves productivity
• Non value adding activities: Scrapping, Sorting, Storing,
Counting, Moving, Documentation etc.
• Value adding activities :Machining, Processing, Painting,
Value Stream Mapping
Provide optimum value to the customer through
a complete value creation process with minimum
Design (concept of customer needs)
Build (order to delivery)
Sustain (in-use through life cycle to service)
• Depicts and improves the flow and processing of
• Usage of symbols (the language of lean).
• Usually includes
Tools and technologies,
“ITEMS” flow in a value stream
In manufacturing, materials are the items
In service, external customer needs are the items
Generally VSM has four major steps as given by
Rother and Shook (1996):
• Lean production means continuous improvement, we
must keep on changing future state into current state
Lean Production uses Takt Time as the time in which
we get a finished product or assembly.
If you have a Takt Time of two minutes that means
every two minutes a complete product or assembly is
produced off the line.
Takt Time = Available time/
Takt Time = Available time/ customer demand
= 27 *1320 *60/50000
= 42.7 sec.
Complete cycle time of welding (CT+LT):
Number of working days - 27
Net working time per day - 1320 min.
Demand for month - 50000
Welding Cycle time - 43 sec
Lead time - 8 sec
Welding Production per day - 1320*60 / (43+8) =1550 parts per day (should be 1854)
Example of one of the improvements
It is found that cycle time of complete welding process exceeds the takt time so there
is need to improve the process capability of welding process to meet the demand of
customer within the time.
We are improving the cycle time of welding process by introducing a new welding machine
and by improving layout of weld shop.
Cycle time before improvement = 43sec.
Cycle time after improvement = 22 sec.
% improvement in production = (2600 – 1550)/1550
There is near about 67% improvement by improvement in value adding activities.
Some wastes of LEAN eliminated by VSM:
Long Transportation Routes
It helps to visualize the station cycle times,
inventory at each stage, manpower and
information flow across the supply chain.
Enables a company to ‘see’ the entire process in both
its current and desired future state
Bridges the gap between the current state and the
Gives a better value to the customer
-give an example of dell server to server communication.-
Build:Assemble to orderMake to orderEngineer to orderSustain: after sales services
Internal and External CustomersEvery organisation has internal and external customers and The Hanley is no exception.External customers: who are they?- The needs of these people may be:- To receive good quality customer service.- To receive useful and professional advice.- To be kept up-to-date on their accounts/mortgages.Internal customers: who are they?- People who work for The organization.To members of staff, their colleagues, sometimes in different departments, are also their customers.The needs of these people may be:- To have a good environment to work in.- To have the correct resources to work with.- To be trained to correct standard to be able to do their job
To withdraw from a previous processLoad level- intermediate steps at a constant rate so that further also constantPhysical pull- from supermarkets the materials have to be pulled physically into kittings.
Source: International Journal of Innovative Technology and Exploring Engineering (IJITEE) ISSN: 2278-3075, Volume-1, Issue-2, July 2012
-3 shifts a day of total 22 hrs. (1320 mins)
-Daily schedule was not needed-inventory was held only for 7 days rather than 15 days.-SAP communication directly with planning department, made easy the task of keeping track of the process and the time taken by then in the complete process.-the time for inventory being held between intermediary quality check and welding has been reduced to 1 day from 3 days-Inventory has been under control (RM and finished goods both) by communication with SAP-we are improving the cycle time of welding process by introducing a new welding machine and by improving layout of weld shop.