Mapping Current State Value Stream Manufacturing

ISBN - 978-93-81583-46-3
Mapping the Current State Value Stream: Case Study of a Manufacturing Unit
Garima Rathaur1, Kumar Rohit2, Dr. M.D. Dandekar3, Avadhesh Dalpati4 1 Research Scholar, 2Research Scholar, 3Associate Professor, 4Associate Professor 1,2,3,4 Department of Industrial and Production Engineering, SGSITS, Indore, M.P. 1 garimarathaur@gmail.com, 2rohitkumar.mechy@gmail.com 3 mddandekar@gmail.com, 4adalpati@sgsits.ac.in
National Conference on Emerging Challenges for Sustainable Business 2012 1772
Abstract This paper addresses the study of a current state value stream mapping (CSVSM) and its implication in one of a pump manufacturing industry to figure out the lean improvements. This study is based on the fundamental principle that this enhanced visual representation of value stream mapping (VSM) facilitates the identification and elimination of the non-value adding steps/wastes in the value stream and conducted through conceptual design, team formation, product selection, time-frame formulation through takt time calculation carried out to set the pace of production, conducting brainstorming and outcomes analysis.
The findings of the study indicate the reduction in supplier lead time, process cycle time, inventory level and storage area and, smooth flow of materials with the improvement of internal Kanban system. CSVSM will prove to be very effective to achieve larger control of their value stream and to highlight future process improvements towards lean, in terms of quantitative data.
Key Words - Value Stream, VSM, CSVSM, Takt Time
1 INTRODUCTION
The business/manufacturing world today is very different than what it was five or ten years ago. Advanced technology, improvement initiatives through lean principles and, global competition are the driving forces of this never ending change. It seems that new technological development and lean improvements are changing the way; business is being conducted across the world. Companies have seen their market shares continually declining and unless, dramatic steps are taken, they may be in danger of closing their operations. To succeed in the 21st century, they must use state-of-the-art processes and systems with a well-educated and well-trained work force. In the relentless pursuit of profitability and competitiveness, more and more companies are turning towards lean manufacturing to reduce or eliminate wastes in their manufacturing operations. The effective management of the flow of materials, products, and services through the series of the activities involved in providing value to the end customer referred to as value stream is perceived as a major activity in the journey towards lean. This requires a detailed understanding of all the processes involved so that non-value-added activities can be identified and eliminated and, as such value stream mapping (VSM) is a technique that can aid in developing this required knowledge (Lee, 2001). It provides a blue-print to implement lean manufacturing initiatives by illustrating information and material flows in the value stream (Abuthakeer et al., 2010). It is one of the most useful tools in order to understand where to initiate the implementation of lean concepts (Garcia, 2002). Companies are experiencing intense competitive pressure due to globalization; hence, they cannot afford to operate with wastes in their processes/ operations, requiring VSM as a valuable aid/tool/technique towards this. VSM has been taken as an initiative towards business process improvement.VSM has become a valuable aid to model and evaluate work and process flows in the manufacturing units. It is a qualitative tool supposed to give an understanding of the value stream/value chain as a basis for reducing the pipeline of inventory and time to compress the throughput time towards the lean improvement (Kalsaas, 2002).
This paper is focused towards the study of current state value stream mapping (CSVSM) and its implication in one of an engineering industry to signify the lean improvements towards the future success.
2 LITERATURE REVIEW
The use of VSM has been attributed to the cause of much of the success that Toyota of Japan has had since the 1980s developed through the work being conducted by Taiichi Ohno at Toyota in between the 1960s and 70s (Liker, 2004). VSMs, originally called material and information flow maps, are referred to as one-page diagrams depicting the process used to make a product (Womack et al., 1996; Rother et al., 2009). They were first developed by the Operations Management Consulting Division of Toyota Motor Corporation, Toyota City, Japan, in the late 1980s (Rother et al., 2009). VSMs identify ways to get material and information to flow without interruption (Womack et al., 1996), improve productivity and competitiveness, and help people implement system rather than isolated process improvements.VSM is a lean process mapping method to understand the sequence of activities used to produce a product (Green Suppliers Network). One of the concept of VSM had been derived by Rother and Shook in 2009 as such, Value Stream may be a new phrase in your vocabulary as to be all the actions (both valueadded and non value-added) currently required to bring a product through the main flows essential to every product: (1) the production flow from raw material into the arms of the customer and, (2) the design flow from concept to launch (Rother et al., 2009). Researchers define the VSM as the process of visually mapping the flow of information and material to visualize the station cycle times, inventory at each stage, manpower and information flow across the supply chain (Womack et al., 1996).
VSM is a set of methods to visually display the flow of materials and information throughout the production process with the objective to identify and improve value-addition as well as to eliminate non-value adding activities (Lee, 2001; Goriwondo et al., 2011). It is the process of mapping the material and information flows required to coordinate the activities performed by manufacturers, suppliers and distributors to deliver products to customers (Irani et al., 2000). VSM is based on the fundamental concept of lean manufacturing, as any activity or action which does not add value to the product is a form of waste and must be eliminated/minimized (Garcia, 2002).VSM has been used as a step towards the lean implementation to result in future success (Chakravorty, 2010). Unlike the traditional process mapping tools being applied by industrial engineers, VSM is a mapping technique that plots not only material flows but also
information flows that signal and control the material flows. This enhanced visual representation facilitates the identification of value-adding steps in a value stream and the elimination of nonvalue adding wastes/steps (Irani et al., 2000). VSMs help people see waste that exists in business processes, where waste is defined as an activity (Ohno, 1988) or behavior (Emiliani, 1998) that adds cost but does not add value.VSM has the reputation of uncovering waste in manufacturing/ business processes by identifying and removing/streamlining non-value-adding actions/wastes in each step and between each step by their waste of time and resources (Sondalini).
2.1 Conceptual Framework for VSM The conceptual framework for VSM categorizes all of its tools and practices towards lean manufacturing in these five basic aspects: 1) Value: Value is defined from the standpoint of the customer providing him with the right product, for the right price, at the right time, however, in reality, the final customer is the only one who can specify the value of a specific product/service by paying a price for it. 2) Value stream: It is the set of actions that bring a product/service from the concept to realization, order to delivery, raw materials to finished goods, or supplier to manufacturer to end customer to view the product delivery system as a continuous flow of process that add value. 3) Flow: It is the seamless movement through value-creating steps so that the product should constantly move through the value stream towards the end customer at the pace of demand. 4) Pull: It insists on acting only to satisfy the customer needs, rather than forcing or pushing a product upon the marketplace so that product should be pulled through the value stream at the customers demand rather than being pushed on to the customer. 5) Perfection: It emphasizes on continuously and relentlessly improving the value, value stream, flow and pull in the business operations as, the never-ending pursuit of eliminating waste in the system such that the products can flow seamlessly through the value stream at the rate of demand (Abuthakeer et al., 2010; McManus et al., 2002).
2.2 Visual Representation of VSM VSMs are drawn as logical and powerful visual/ pictorial representations of the process (i.e., the value stream) used to document both the current state value stream map (CSVSM) as the reality and the future state value stream map (FSVSM) as the goal or future prospect (Nash et al., 2008).
The CSVSM is the baseline view of the existing process from which all improvements are measured (Nash et al., 2008). It charts the present flow of information and material as a product goes throughout the manufacturing operations, vital both to understand the need for change and to understand where opportunities lie (Goriwondo et al., 2011).
The FSVSM represents the vision of how the project team sees the value stream at a point in the future after improvements have been made (Nash et al., 2008). It is a chart/ visual representation that suggest how to create a lean flow proposing to close gap between CSVSM and the envisaged to help make decisions that might create future process improvements (Goriwondo et al., 2011).
2.3 Use of Icons to plot the CSVSM The basic icons used in VSM are a combination of flowcharting icons and unique shapes used to visually represent the various tasks and functions within a map. Icons are broken out into several groups: 1) Process, entities, inventory and associated dataflow 2) Flow, communication, signals and labels 3) People and transportation (Nash et al., 2008) There are a number of common icons used in VSMs, but icons can also be customized to best serve a VSM. Icons help distinguish different elements of a product line from another (Green Suppliers Network).
2.4 Mapping the Current State Value Stream CSVSM is a flow diagram showing the process drawn to reflect the current state of the operation, focusing on conventional management thinking and practices (Sondalini; Emiliani, 2004). It represents how the shop floor currently operates and serves as the foundation for the future state improvements which starts with shipping area and works back throughout process/ operation to the suppliers. It should start with one product family otherwise, the map will be too complicated, by mapping a product family that accounts for a significant proportion of the total annual production volume and sales earnings/profit margin of the company (Garcia, 2002; Irani, 2000). To create a current state map, collect the data and information by walking the flow and interviewing the people who perform the task. There are two main reasons why walking the flow is more beneficial to create the map than staying seated at your desk in front of the computer. Firstly, the team will have the
opportunity to see the entire process and look for waste and secondly, value-addersthe people who actually perform the work (operators, assemblers, technicians, etc.)can answer questions and clarify any misconceptions or preconceived notions on how tasks are performed (Manos, 2006). The various steps required to chart/map the CSVSM are shown with a flow diagram in the fig.2.1.
Fig.2.1 Steps in mapping the Current State Value Stream
3 RESEARCH OBJECTIVES
The purpose of the study is focused towards identifying, quantifying and minimizing major business and manufacturing wastes encountered in a single phase assembly line of a manufacturing set-up (a pump manufacturing unit located nearby Indore, India) with the use of VSM. Once the current state value stream map (CSVSM) is created, it becomes the baseline for improvement and further, contributes towards the creation of a future state value stream map (FSVSM) that can be used as a world class manufacturing implementation road map to improve the future processes thereby. Towards this, VSM has to serve these goals or objectives:
1. To quantify by rank the seven wastes of lean within the manufacturing operations and formulate practical means of reducing the major identified wastes of the single phase assembly line of the said manufacturing unit 2. To develop current state value stream map (CSVSM) for its further conversion into future state value stream map (FSVSM) after the implication of proposed changes contributing towards the future process improvements by converting the improved work flow throughout the single phase assembly line into a lean system for this with cost savings
4 RESEARCH METHODOLOGY
The said study is conducted alongwith the logic behind it is to be taken based on the fundamental principle as such; this enhanced visual representation of CSVSM facilitates the identification and elimination of the non-value adding steps/wastes in the value stream. This study incorporates the conceptual design, team formation, product selection, time-frame formulation through takt time calculation carried out to set the pace of production, conducting brainstorming and outcomes analysis. While plotting the CSVSM, we follow a process from start to finish monitoring and measuring what happens within and between each process step and for each process step, we record variety of resources used in the step, the amount of their usage and range of times each resource is in use, as a block of information specific to that step. The process analysis is carried out by collecting data from various enquiries with the shop floor experts and direct participation in measuring the time involved in the various processes based on these calculations as illustrated, Calculations used to plot the CSVSM for the single phase assembly line: Daily Available Time = 55200 sec and, Daily Customer Demand = 1050 units gives, Takt Time = (Daily Available Time/ Daily Customer Demand) = (55200/1050) = 52.57 secs Total VA Time = 0.2708 Hrs and, Total NVA Time = 720.12 Hrs gives, Percentage VA = (Total VA Time/Total NVA Time) 100 = (0.2708/720.12) 100 = 0.0376 The presence of variability offers great opportunity for improvement. The measured variables are collected together to plot the said CSVSM, shown with a tabular representation in the Table 4.1.
Table 4.1 Measured Variables to plot the CSVSM for the Single Phase Assembly Line Variables used to plot the CSVSM Total Lead Time Total Assembly Area Total HC/Shift O/P/HC/Shift No. of days of inventory level Yield Takt Time %age VA Time Measured Values 51 Days 160 sq.m 28 units 18.75 pieces 30 Days 99.9 % 52.57 secs 0.0376 %
The CSVSM is plotted for the single phase assembly line of the said manufacturing set-up, as per the computation of measured variables stated in the table 4.1, shown schematically in the Fig.4.1.
Fig.4.1 CSVSM for the Single Phase Assembly Line of a Pump Manufacturing Unit
5 RESULT INTERPRETATIONS
The findings of the study indicate the reduction in supplier lead time, process cycle time, SAP downtime, inventory level and storage area and, smooth material flow through improvement of internal Kanban system. CSVSM will prove to be very effective to highlight the future process improvements towards lean, in terms of quantitative data, stated with the improvement points for its conversion into FSVSM, shown with a tabular representation in the table 5.1. Table 5.1 Improvement Points regarding the conversion of CSVSM into FSVSM for the Single Phase Assembly Line of a Pump Manufacturing Unit KAIZEN NO. 1. Fire fighting to meet market demand at short notices 2. High lead time for die cast and windings 3. Materials storage at multiple locations scattered around with long distances 4. Issuance of unreleased PRD causing mismatch Provision of 3 month rolling and 1 month firm plan in advance to CP Supplier lead time to be reduced from 3 to 2 weeks Store area to be reduced by 50% and bring all store locations at single point SAP downtime to be reduced from 3 days to maximum 1 day during inventory storage 5. Multiple material movements for DC motors and impellers causing high inventory 6. Unnecessary processing for delivery casing preparation 7. Variable stock in FGS Reduction of lead time and inventory levels by organized material flow Make it offline to eliminate unnecessary processing Improvement of internal Kanban system between line and FGS 8. High cycle time in packaging and accessories fitment Cycle time to be reduced Fettling and machining to same vendor to reduce lead time and eliminate waste (inventory) Should come processed one day before from the storage area Bucketing system for dealer and customer Study of air sealed packaging process to reduce the cycle time Strict adherence to released PRD planning only Adherence to 80:20 ratios for all running models Kanban to be implemented at vendors end for smooth supply 3rd party logistics to be implemented fast GAP IMPROVEMENT AREA ACTION PLAN
6 RESEARCH LIMITATIONS
There might be possibility for continuous improvement throughout regarding the material, information and process flows. Some manufacturing wastes which are not taken into consideration are to be identified and eliminated to further improve the work flow in the single phase assembly line. The whole plant area has not been taken into consideration for the study purpose. Some changes to be incorporated after the follow-up of the study regarding the waste identification and elimination towards the lean improvement are not focused on due to financial and technical aspects.
7 SCOPE FOR FUTURE STUDIES

Here, for the present study, TAKT time is taken as the benchmark for the process pace but conversion of current state value stream mapping (CSVSM) into future state value stream mapping (FSVSM) has to be done to match the production rate with the TAKT time. This will close the gap between the CSVSM and the envisaged after the implication of proposed changes. Further studies in context to mapping the value streams of other product families/work areas have to be done that would give similar results as they go through similar manufacturing processes. Such type of step towards the lean implementation might create future process improvements.
8 CONCLUSIONS
VSMs become the first step towards achieving the shortened lead times and fast identification and elimination of waste in the value stream to achieve the continuous flow. This study will help the manufacturing set-up to go lean and to achieve larger control of their value stream leading to future improvements.VSM has been perceived as a valuable planning tool and can be used for developing and implementing lean improvement projects for the said manufacturing set-up. Eventually, it enables the companies to move towards their ultimate goal leading to sustainability and profitability through lean improvements, resulting in future success.
REFERENCES
[1] Abuthakeer, S.S., Mohanram, P.V. and Kumar, G.Mohan, (2010), Activity Based Costing Value Stream Mapping, International Journal of Lean Thinking, 1(2), pp.51-52 [2] Chakravorty, S.S., (2010), An Implementation Model for Lean Programmes, European Journal of Industrial Engineering, 4(2), pp 228-248. [3] Emiliani, M.L., (1998), Lean Behaviors, Management Decision, 36(9), pp. 615-631. [4] Garcia, Frank C., (2002), Using Value Stream Mapping as a Strategic Planning and Implementation Tool, Business Solutions & Engineering Services - Advent Design Corporation, Bristol (USA) [5] Goriwondo, W. M., Mhlanga, S. and Marecha, A., (2011), Use of the Value Stream Mapping Tool for Waste Reduction in Manufacturing - Case Study for Bread Manufacturing in Zimbabwe, Proceedings of the International Conference on Industrial Engineering and Operations Management (ICIEOM 2011), Kuala Lumpur (Malaysia), pp. 236-237. [6] Green Suppliers Network, Lean and Clean Value Stream Mapping browsed on 12th January, 2012 from www.greensuppliers.gov [7] Irani, Shahrukh A. and Zhou, Jin, (2000), Value Stream Mapping of a Complete Product, OH 43210, Department of Industrial, Welding and Systems Engineering, The Ohio State University, Columbus (USA) [8] Kalsaas, Bo Terje, (2002), Value Stream Mapping - An Adequate Method for going Lean?, Proceedings of the 14th International Conference NOFOMA, Trondheim, pp.1-2. [9] Lee, Brandon, (2001), VALUE STREAM MAPPING, 1, Lean Manufacturing - IMfgE at Wichita State University, Wichita, IE 780S [10] Liker, J.K., (2004), The Toyota Way 14 Management Principles from the Worlds Greatest Manufacturer, McGraw Hill, New York (USA), pp.27 [11] Management and Development Center, Value Stream Mapping VSM browsed on 7th January, 2012 from [12] Manos, Tony, (2006), Value Stream Mapping An Introduction, Quality Progress Lean Lessons, pp.64-67 [13] McManus, Hugh L. and Millard, Richard L., (2002), Value Stream Analysis and Mapping for Product Development, 6103, Proceedings of the 23rd ICAS Congress, International Council of the Aeronautical Sciences (ICAS), Toronto (Canada), pp.6103.1-6103.2 [14] Nash, Mark A. and Poling, Sheila R., (2008), Mapping the Total Value Stream, CRCProductivity Press An imprint of Taylor and Francis Group, New York (U.S.A), pp.2-3. [15] Ohno, Taiichi, (1988), Toyota Production System, Productivity Press, Portland [16] Rother, Mike and Shook, John, (2009), Learning to See Value-Stream Mapping to Create Value and Eliminate Muda, Lean Enterprise Institute, Cambridge (USA), pp. 1-4 [17] Sondalini, Mike, How to do Value Stream Mapping, Lifetime Reliability Solutions browsed on 12th January, 2012 from www.lifetime-reliability.com [18] Womack, J.P. and Jones, D.T., (1996), Lean Thinking, Simon & Schuster, New York (USA), pp.29-49

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ISBN - 978-93-81583-46-3

National Conference on Emerging Challenges for Sustainable Business 2012 1772

Key Words - Value Stream, VSM, CSVSM, Takt Time

National Conference on Emerging Challenges for Sustainable Business 2012 1773

National Conference on Emerging Challenges for Sustainable Business 2012 1776

Fig.2.1 Steps in mapping the Current State Value Stream

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7 SCOPE FOR FUTURE STUDIES

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National Conference on Emerging Challenges for Sustainable Business 2012 1783

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