Disclaimer: The credit of the content also goes to different authors and sources from
which data has been procured

Value
• "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,
Assembling
Value Stream Mapping

Why ?
Provide optimum value to the customer through
a complete value creation process with minimum
waste in:
 Design (concept of customer needs)
 Build (order to delivery)
 Sustain (in-use through life cycle to service)

• Flowchart
• Depicts and improves the flow and processing of
inventory
• Usage of symbols (the language of lean).
• Usually includes
People,
Tools and technologies,
Physical facilities,
Communication channels
How ?

What flows?
 “ITEMS” flow in a value stream
 In manufacturing, materials are the items
 In service, external customer needs are the items

Symbols used in VSM

 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
Takt Time = Available time/
customer demand

Welding process:
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:
 Overproduction
 Defects
 Motion
 Waiting
 Long Transportation Routes
 Underutilized people
 Extra Processing
 Inventory

 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
future state.
 Gives a better value to the customer
Conclusion

Danke!!