Value Stream Mapping

VALUE STREAM MAPPING
PROCESS INDUSTRY OPERATIONS
Peter L. King
Lean Dynamics, LLC
January 2010
AGENDA
Value Stream Map basics

Material flow
Process boxes
Icons
Data boxes
Information flow
The Timeline
Mapping considerations ~ good VSM practices
Benefits of VSMs
Summary
2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED
Lean is all about removing WASTE from our process

and improving FLOW
SALES &
OPERATIONS
PLANNING
AGGREGATED
DEMAND
(MONTHLY)
MASTER PRODUCTION
SCHEDULE (MONTHLY)
Order Lead
Time
1 week
# SKUs
1.8 Cars/Day
Lot Size
140K lbs
Transp time
7 Days
How do we understand the flow?
Invtry
1 Week
# SKUs
Frequency
1 Car/Day
Lot Size
140K lbs
Transp time
7 Days
ORDER
GRANTS
CURRENT
INVENTORIES
CUSTOMERS,
DISTRIBUTORS
DAILY PRODUCTION
SCHEDULE (WEEKLY)
SHEET
FORMING
6
(4)
SUPPLIER 2
ORDERS
PRODUCTION
SUPERVISOR
SCHEDULE UPDATES (DAILY)
Order Lead
Time
CUSTOMER
SERVICE
REPS
CAPACITY FORECAST
(MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
Frequency
CUSTOMER FORECASTS
(QUARTERLY)
How do we see waste?
RAW MATERIAL
ORDERS (MONTHLY)
SUPPLIER 1
DEMAND
MANAGEMENT
PROCESS
6.3M lbs
Days
16
#
SKUs
Effective
Capacity
11.8
TAKT
9.5
(Master Rolls/Hr)
Utilization
80%
CALENDARING
BONDING
(4)
6
Invtry
MATERIAL
RELEASES
SLITTING
(3)
A Value Stream Map
2500 R
Days
12.6
#
SKUs
50
Effective
Capacity
8.9
TAKT
8.3
(Master Rolls/Hr)
Invtry
3650 R
Days
21
#
SKUs
200
Invtry
Effective
Capacity
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
WRAPPING
PACKAGING
LABELING 4
CHOPPING
(3)
5
4000
Days
#
SKUs
1000
Effective
Capacity
TAKT
Invtry
29
Effective
Capacity
200
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
Utilization
93%
Lead time
15 Min
Utilization
83%
Utilization
Lead time
17 Min
Yield
87%
Lead time
10 Min
Lead time
10 Min
Lead time
8 Min
Yield
87%
Reliability
Yield
98%
Yield
100%
Yield
100%
Reliability
95%
Reliability
98%
Reliability
90%
Reliability
98%
UPtime
73.6%
UPtime
61%
50
UPtime
69%
UPtime
98%
UPtime
98%
# SKUs
200
Batch size
1 roll
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
EPEI
9 days
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
C/O time
1 hr
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
2 Rolls
C/O loss
~0
Avail time
168 hr/wk
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
3x8x7
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
12.6 Days
3 M
7 Days
21 Days
17 Min
10 Min
10 Min
320K Sq Ft/Hr
7 Days
Frequency
12 Trucks/Day
Lot Size
648K Sq Ft
Transp time
3 Days
322M sq Ft
Days
42
# SKUs
2,000
98%
Shift schd
15 Min
230M Sq Ft/Mo
TAKT
60%
# SKUs
16 Days
Quantity/time
Lead time Exp
KEY
K = 1,000
M = 1,000,000
B = 1,000,000,000
42 Days
8 Min
NVA Time = 99 Days

VA Time = 73 Min
ORIGINS OF VALUE STREAM MAPS

SALES &
OPERATIONS
PLANNING
MASTER PRODUCTION
SCHEDULE (MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
AGGREGATED
DEMAND
(MONTHLY)
Order Lead
Time
1 week
# SKUs
Frequency
1.8 Cars/Day
Lot Size
140K lbs
CUSTOMER FORECASTS
(QUARTERLY)
CUSTOMER
SERVICE
REPS
CAPACITY FORECAST
(MONTHLY)
ORDERS
PRODUCTION
SUPERVISOR
RAW MATERIAL
ORDERS (MONTHLY)
SUPPLIER 1
DEMAND
MANAGEMENT
PROCESS
ORDER
GRANTS
CURRENT
INVENTORIES
CUSTOMERS,
DISTRIBUTORS
Based on Toyotas material and information flow

diagrams
Transp time
DAILY PRODUCTION
SCHEDULE (WEEKLY)
7 Days
SHEET
FORMING
6
(4)
SUPPLIER 2
Order Lead
Time
1 Week
# SKUs
Frequency
Lot Size
Transp time
MATERIAL
RELEASES
CALENDARING
BONDING
(4)
6
SLITTING
(3)
5
WRAPPING
PACKAGING
LABELING 4
CHOPPING
(3)
5
Standardized and popularized by Rother and

Shook in Learning To See
Invtry
6.3M lbs
Days
16
#
SKUs
Effective
Capacity
11.8
140K lbs
TAKT
9.5
(Master Rolls/Hr)
Utilization
80%
7 Days
Lead time
15 Min
1 Car/Day
Invtry
2500 R
Days
12.6
#
SKUs
50
Effective
Capacity
8.9
TAKT
8.3
(Master Rolls/Hr)
Utilization
93%
Lead time
17 Min
Invtry
3650 R
Days
21
#
SKUs
200
Effective
Capacity
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Lead time
10 Min
Invtry
4000
Days
#
SKUs
1000
Invtry
Effective
Capacity
29
Effective
Capacity
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
Utilization
83%
Utilization
60%
Lead time
10 Min
Lead time
8 Min
Yield
87%
Yield
87%
Reliability
90%
Yield
98%
Yield
100%
Yield
100%
Reliability
98%
UPtime
73.6%
Reliability
95%
Reliability
98%
Reliability
98%
UPtime
61%
UPtime
69%
UPtime
98%
UPtime
98%
1000
# SKUs
1800
# SKUs
2000
# SKUs
50
# SKUs
200
Batch size
1 roll
# SKUs
Batch size
1 roll
EPEI
9 days
Batch size
1 roll
EPEI
13 days
C/O time
1 hr
EPEI
7 days
C/O time
45 Min
C/O loss
2 Rolls
C/O time
C/O loss
~0
C/O loss
Batch size 1 Slit Roll

EPEI
7 days
5 Min
7 days
C/O time
~0
C/O loss
C/O time
C/O loss
Avail time 168 hr/wk
Shift schd
Shift schd
Shift schd
Shift schd
Shift schd
3x8x7
16 Days
3x8x7
12.6 Days
15 Min
3x8x7
10 Min
10 Min
320K Sq Ft/Hr
Lead time Exp
7 Days
Frequency
12 Trucks/Day
Lot Size
648K Sq Ft
Transp time
3 Days
42
# SKUs
2,000
KEY
K = 1,000
M = 1,000,000
B = 1,000,000,000
3x8x7
3 M
7 Days
21 Days
17 Min
3x8x7
230M Sq Ft/Mo
TAKT
322M sq Ft
Days
Batch size 1 Cut Roll

EPEI
Quantity/time
42 Days
8 Min
NVA Time = 99 Days

VA Time = 73 Min
A COMPLETE VSM
SALES &
OPERATIONS
PLANNING
MASTER PRODUCTION
SCHEDULE (MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
AGGREGATED
DEMAND
(MONTHLY)
Order Lead
Time
1 week
# SKUs
Frequency
1.8 Cars/Day
Lot Size
140K lbs
Transp time
7 Days
1 Week
# SKUs
Frequency
1 Car/Day
Lot Size
140K lbs
Transp time
7 Days
ORDERS
ORDER
GRANTS
CURRENT
INVENTORIES
CUSTOMERS,
DISTRIBUTORS
DAILY PRODUCTION
SCHEDULE (WEEKLY)
SHEET
FORMING
6
(4)
SUPPLIER 2
CUSTOMER
SERVICE
REPS
PRODUCTION
SUPERVISOR
Order Lead
Time
CUSTOMER FORECASTS
(QUARTERLY)
CAPACITY FORECAST
(MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
SUPPLIER 1
DEMAND
MANAGEMENT
PROCESS
Invtry
6.3M lbs
Days
16
#
SKUs
Effective
Capacity
11.8
TAKT
9.5
(Master Rolls/Hr)
Utilization
80%
CALENDARING
BONDING
(4)
6
Invtry
2500 R
Days
12.6
#
SKUs
50
Effective
Capacity
8.9
TAKT
8.3
(Master Rolls/Hr)
MATERIAL
RELEASES
SLITTING
(3)
Invtry
3650 R
Days
21
#
SKUs
200
Invtry
Effective
Capacity
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
WRAPPING
PACKAGING
LABELING 4
CHOPPING
(3)
5
4000
Days
#
SKUs
1000
Invtry
Effective
Capacity
29
Effective
Capacity
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
Utilization
93%
Lead time
15 Min
Utilization
83%
Utilization
Lead time
17 Min
Yield
87%
Lead time
10 Min
Lead time
10 Min
Lead time
8 Min
Yield
87%
Reliability
Yield
98%
Yield
100%
Yield
100%
Reliability
95%
Reliability
98%
Reliability
90%
Reliability
98%
UPtime
73.6%
UPtime
61%
50
UPtime
69%
UPtime
98%
UPtime
98%
# SKUs
200
Batch size
1 roll
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
EPEI
9 days
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
C/O time
1 hr
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
2 Rolls
C/O loss
~0
Avail time
168 hr/wk
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
3x8x7
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
12.6 Days
3 M
7 Days
21 Days
17 Min
10 Min
10 Min
320K Sq Ft/Hr
Lead time Exp
7 Days
Frequency
12 Trucks/Day
Lot Size
648K Sq Ft
Transp time
3 Days
322M sq Ft
Days
42
# SKUs
2,000
98%
Shift schd
15 Min
230M Sq Ft/Mo
TAKT
60%
# SKUs
16 Days
Quantity/time
KEY
K = 1,000
M = 1,000,000
B = 1,000,000,000
42 Days
8 Min
NVA Time = 99 Days

VA Time = 73 Min
VSM COMPONENTS
SALES &
OPERATIONS
PLANNING
Information Flow
MASTER PRODUCTION
SCHEDULE (MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
AGGREGATED
DEMAND
(MONTHLY)
Order Lead
Time
1 week
# SKUs
Frequency
1.8 Cars/Day
Lot Size
140K lbs
Transp time
7 Days
1 Week
# SKUs
Frequency
1 Car/Day
Lot Size
140K lbs
Transp time
7 Days
ORDERS
ORDER
GRANTS
CURRENT
INVENTORIES
CUSTOMERS,
DISTRIBUTORS
DAILY PRODUCTION
SCHEDULE (WEEKLY)
SHEET
FORMING
6
(4)
SUPPLIER 2
CUSTOMER
SERVICE
REPS
PRODUCTION
SUPERVISOR
Order Lead
Time
CUSTOMER FORECASTS
(QUARTERLY)
CAPACITY FORECAST
(MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
SUPPLIER 1
DEMAND
MANAGEMENT
PROCESS
Invtry
6.3M lbs
Days
16
#
SKUs
Effective
Capacity
11.8
TAKT
9.5
(Master Rolls/Hr)
Utilization
80%
CALENDARING
BONDING
(4)
6
Invtry
2500 R
Days
12.6
#
SKUs
50
Effective
Capacity
8.9
TAKT
8.3
SLITTING
(3)
Invtry
3650 R
Days
21
#
SKUs
200
Invtry
Effective
Capacity
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
WRAPPING
PACKAGING
LABELING 4
CHOPPING
(3)
5
Material Flow
(Master Rolls/Hr)
MATERIAL
RELEASES
4000
Days
#
SKUs
1000
Invtry
Effective
Capacity
29
Effective
Capacity
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
Utilization
93%
Lead time
15 Min
Utilization
83%
Utilization
Lead time
17 Min
Yield
87%
Lead time
10 Min
Lead time
10 Min
Lead time
8 Min
Yield
87%
Reliability
Yield
98%
Yield
100%
Yield
100%
Reliability
95%
Reliability
98%
Reliability
90%
Reliability
98%
UPtime
73.6%
UPtime
61%
50
UPtime
69%
UPtime
98%
UPtime
98%
# SKUs
200
Batch size
1 roll
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
EPEI
9 days
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
C/O time
1 hr
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
2 Rolls
C/O loss
~0
168 hr/wk
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
3x8x7
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
3 M
7 Days
21 Days
17 Min
10 Min
10 Min
7 Days
Frequency
12 Trucks/Day
Lot Size
648K Sq Ft
Transp time
3 Days
322M sq Ft
Days
42
# SKUs
2,000
Data boxes
Avail time
12.6 Days
320K Sq Ft/Hr
Lead time Exp
98%
Shift schd
15 Min
230M Sq Ft/Mo
TAKT
60%
# SKUs
16 Days
Quantity/time
42 Days
8 Min
KEY
K = 1,000
M = 1,000,000
B = 1,000,000,000
NVA Time = 99 Days

VA Time = 73 Min
Timeline
MATERIAL FLOW ON A VSM
CALENDARING
BONDING
(4)
6
Eff Capac
TAKT
8.9
8.3
(Master Rolls/Hr)
SLITTING
(3)
Invtry
3650 R
Days
21
#
SKUs
200
Eff Capac
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Utilization
93%
Lead time
17 Min
Lead time
Yield
87%
Yield
Reliability
98%
UPtime
61%
CHOPPING
(3)
5
Invtry
4000
Days
#
SKUs
1000
WRAPPING
PACKAGING
LABELING 4
CUSTOMERS,
DISTRIBUTORS
Invtry
Eff Capac
29
Eff Capac
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
322M sq Ft
Quantity/time
230M Sq Ft/Mo
Days
42
TAKT
320K Sq Ft/Hr
# SKUs
2,000
Lead time Exp
7 Days
Utilization
83%
Utilization
60%
10 Min
Lead time
10 Min
Lead time
8 Min
Frequency
12 Trucks/Day
98%
Yield
100%
Yield
100%
Lot Size
648K Sq Ft
Reliability
95%
Reliability
98%
Reliability
98%
Transp time
3 Days
UPtime
69%
UPtime
98%
UPtime
98%
# SKUs
200
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
~0
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
THE PROCESS BOX

Each major process step will be represented by a PROCESS BOX
A machine
A process vessel, a tank
SLITTING
A process system
(3)
Includes the quantity of similar machines

Includes the approximate number of operators assigned
The process box is accompanied by a DATA BOX
Lists all data relevant to flow and capacity
Helps to indicate waste
Identifies bottlenecks
Highlights quality issues
Eff Capac
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Lead time
10 Min
Yield
98%
Reliability
95%
UPtime
69%
# SKUs
1000
Batch size
1 roll
EPEI
7 days
C/O time
5 Min
C/O loss
~0
Avail time
168 hr/wk
Shift schd
3x8x7
MATERIAL FLOW ICONS
External
Customer
Process
Step
BONDING
3
External
Supplier
Inventory
1.5
SHEET
FORMING
2
6
1.5
1.5
Process Step
Scheduled by
Product Wheel
Number of operators
assigned to a process
step
Inventory Managed
as a Supermarket
FIFO
Inventory Managed
in a
First In First Out
mode
9
MORE MATERIAL FLOW ICONS
PUSH Material Movement
Material flow in a Pull environment
Material to a customer
or from a supplier
10
TRANSPORTATION ICONS
Fork Truck
Conveyor
Tractor Trailer
Railcar
11
VSM DATA BOXES
CALENDARING
BONDING
(4)
6
Eff Capac
TAKT
8.9
8.3
(Master Rolls/Hr)
SLITTING
(3)
Invtry
3650 R
Days
21
#
SKUs
200
Eff Capac
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Utilization
93%
Lead time
17 Min
Lead time
Yield
87%
Yield
Reliability
98%
UPtime
61%
CHOPPING
(3)
5
Invtry
4000
Days
#
SKUs
1000
WRAPPING
PACKAGING
LABELING 4
CUSTOMERS,
DISTRIBUTORS
Invtry
Eff Capac
29
Eff Capac
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
322M sq Ft
Quantity/time
230M Sq Ft/Mo
Days
42
TAKT
320K Sq Ft/Hr
# SKUs
2,000
Lead time Exp
7 Days
Utilization
83%
Utilization
60%
10 Min
Lead time
10 Min
Lead time
8 Min
Frequency
12 Trucks/Day
98%
Yield
100%
Yield
100%
Lot Size
648K Sq Ft
Reliability
95%
Reliability
98%
Reliability
98%
Transp time
3 Days
UPtime
69%
UPtime
98%
UPtime
98%
# SKUs
200
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
~0
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
12
Process Step Data Box
Customer Data Box

Total Quantity per unit time
TAKT
Lead Time Expectations
xx
xx
xx
Cycle Time (Capacity)

TAKT
Utilization
Lead Time
Yield
Reliability
Uptime
# SKUs
Batch Size
EPEI
C/O Time
C/O Losses
Available Time
Shift Sched
VALUE STREAM MAP

Supplier Data Box DATA BOXES
Order Lead Time

xx
# SKUs
xx
Transport Data Box
Delivery Frequency
Lot Size
Transport Time
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
List all data relevant to FLOW and

Capacity
Think of it from an Industrial
Engineers perspective
13
CUSTOMER DATA BOX
Total quantity = the sum

total of all products ordered by
all customers
Customer Data Box

Total Quantity per unit time
TAKT
Lead Time Expectations
xx
xx
xx
Takt = The time available to produce one unit of customer

demand, or the rate at which product must be produced to
meet customer needs
Lead time = The maximum time the customer allows from
receipt of order to receipt of goods
14
MANUFACTURING PROCESS STEP DATA BOX
Process Step Data Box

Cycle Time (Capacity)
TAKT
Utilization
Lead Time
Yield
Reliability
Uptime
# SKUs
Batch Size
EPEI
C/O Time
C/O Losses
Available Time
Shift Sched
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
xx
Utilization = The % of available time

needed to meet customer demand.
Cycle Time/Takt
Lead time = the time for a unit of

material to move through this process
step
UPtime = OEE
Batch size = the quantity made as

one lot. Several batches of the same
material = a campaign.
EPEI (Every Part Every Interval) =
the time span over which all products
are made
Note: Not all of these data will be relevant in every case - and others may be added
to completely describe issues relevant to specific processes .
15
INVENTORY STORAGE DATA BOX
The inventory data box is short and simple but it is very

important and very enlightening as a symptom of waste!
There should be an inventory data box for each inventory, including
Raw materials
WIP (work in process)

Finished products
Inventory Data Box

Average Inventory
Days of Supply
# SKUs
xx
xx
xx
Average inventory = The average total inventory of all products at this

STEP in the process (NOT necessarily all products at this location!) in
pounds, gallons, square feet, rolls, cases, etc.
Days of Supply = Total inventory/throughput
FIFO
16
TRANSPORTATION DATA BOX
A data box should be shown for each significant transportation step
Deliveries to customers, warehouses, distribution centers

Supply of major or critical raw materials
Transport Data Box

Delivery Frequency
Lot Size
Transport Time
xx
xx
xx
Delivery frequency = how often

shipments are received; how often
shipments are made (sum of all
destinations)
Lot size = the average quantity shipped or received. Same units as

production and/or customer demand data: gallons, pounds, square meters,
rolls, etc.
Transport time = the average time from shipment to receipt
17
SUPPLIER DATA BOX
Not all raw material suppliers need to be shown on the VSM.

If they supply a very significant percentage of total raw materials
Low volume, critical materials which could shut down the process
Order lead time = the time from placing
the order to the time the supplier ships
Does not include transportation time
Supplier Data Box

Order Lead Time
# SKUs
xx
xx
# SKUs = the number of material types or part types normally received

from that suppler
18
MATERIAL FLOW ON A VSM

Icons
Process boxes
CALENDARING
BONDING
(4)
6
Eff Capac
TAKT
8.9
8.3
(Master Rolls/Hr)
SLITTING
(3)
Invtry
3650 R
Days
21
#
SKUs
200
Eff Capac
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Utilization
93%
Lead time
17 Min
Lead time
Yield
87%
Yield
Reliability
98%
UPtime
61%
CHOPPING
(3)
5
Invtry
4000
Days
#
SKUs
1000
WRAPPING
PACKAGING
LABELING 4
CUSTOMERS,
DISTRIBUTORS
Invtry
Eff Capac
29
Eff Capac
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
322M sq Ft
Quantity/time
230M Sq Ft/Mo
Days
42
TAKT
320K Sq Ft/Hr
# SKUs
2,000
Lead time Exp
7 Days
Utilization
83%
Utilization
60%
10 Min
Lead time
10 Min
Lead time
8 Min
Frequency
12 Trucks/Day
98%
Yield
100%
Yield
100%
Lot Size
648K Sq Ft
Reliability
95%
Reliability
98%
Reliability
98%
Transp time
3 Days
UPtime
69%
UPtime
98%
UPtime
98%
# SKUs
200
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
~0
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Data boxes
19
VSM INFORMATION FLOW

The VSM should show all of the major communications which influence
production planning, forecasting, order fulfillment, and detailed
scheduling
SALES &
OPERATIONS
PLANNING
MASTER PRODUCTION
SCHEDULE (MONTHLY)
AGGREGATED
DEMAND
(MONTHLY)
DEMAND
MANAGEMENT
PROCESS
CAPACITY FORECAST
(MONTHLY)
CUSTOMER FORECASTS
(QUARTERLY)
CUSTOMER
SERVICE
REPS
ORDERS
PRODUCTION
SUPERVISOR
CURRENT
INVENTORIES
ORDER
GRANTS
DAILY PRODUCTION
SCHEDULE (WEEKLY)
CUSTOMERS,
DISTRIBUTORS
Quantity/time
230M Sq Ft/Mo
TAKT
320K Sq Ft/Hr
Lead time Exp
7 Days
Starts with customer input orders and forecasts

Moves backward through various information processing steps
Goes through to detailed manufacturing schedules, releases for raw materials
20
COUPLING INFORMATION FLOW WITH MATERIAL FLOW
SALES &
OPERATIONS
PLANNING
MASTER PRODUCTION
SCHEDULE (MONTHLY)
AGGREGATED
DEMAND
(MONTHLY)
DEMAND
MANAGEMENT
PROCESS
CUSTOMER FORECASTS
(QUARTERLY)
CUSTOMER
SERVICE
REPS
CAPACITY FORECAST
(MONTHLY)
ORDERS
PRODUCTION
SUPERVISOR
ORDER
GRANTS
CURRENT
INVENTORIES
CUSTOMERS,
DISTRIBUTORS
DAILY PRODUCTION
SCHEDULE (WEEKLY)
CALENDARING
BONDING
(4)
6
SLITTING
(3)
Eff Capac
8.9
Invtry
3650 R
TAKT
8.3
Days
21
#
SKUs
200
(Master Rolls/Hr)
Utilization
93%
Lead time
17 Min
MATERIAL
RELEASES
Eff Capac
CHOPPING
(3)
5
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Lead time
10 Min
Invtry
4000
Days
#
SKUs
1000
WRAPPING
PACKAGING
LABELING 4
Invtry
Eff Capac
29
Eff Caac
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
Utilization
83%
Utilization
60%
Lead time
10 Min
Lead time
8 Min
Yield
87%
Yield
98%
Reliability
98%
Yield
100%
Yield
100%
Reliability
95%
UPtime
61%
Reliability
98%
Reliability
98%
UPtime
69%
# SKUs
200
UPtime
98%
UPtime
98%
# SKUs
1000
Batch size
1 roll
# SKUs
1800
# SKUs
2000
Batch size
1 roll
EPEI
13 days
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
7 days
C/O time
45 Min
EPEI
7 days
EPEI
7 days
C/O time
5 Min
C/O loss
~0
C/O time
C/O time
C/O loss
~0
Avail time
168 hr/wk
C/O loss
C/O loss
Avail time
168 hr/wk
Shift schd
3x8x7
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Quantity/time
230M Sq Ft/Mo
TAKT
320K Sq Ft/Hr
Lead time Exp
7 Days
Frequency
12 Trucks/Day
Lot Size
648K Sq Ft
Transp time
3 Days
322M sq Ft
Days
42
# SKUs
2,000
21
COUPLING INFORMATION FLOW WITH MATERIAL FLOW
Any resource whose capacity is equal to

or less than the demand placed upon it
Any resource which, if not properly

scheduled and managed, is likely to
cause the actual flow of product
through the plant to deviate from the
desired product flow.
Integrating material flow and information flow on the same map helps to
uncover Capacity Constraints
From SYNCHRONOUS MANUFACTURING Umble and Srikanth, South-Western Publishing, 1990
THE VSM TIMELINE
The timeline appears on the bottom of the VSM, below the material flow
and data boxes
It is a square wave contrasts value-add time with non-value-add time
Normal convention NVA time is the high part of the wave, VA time the
low portion
17 Min
3 M
7 Days
21 Days
10 Min
10 Min
42 Days
8 Min
The timeline highlights all those wastes that add time (most of them do!)
In many assembly processes, NVA is 90% of total time
In process plants it can exceed 99%
23
THE VSM TIMELINE
CALENDARING
BONDING
(4)
6
Eff Capac
8.9
TAKT
8.3
(Master Rolls/Hr)
SLITTING
(3)
Invtry
3650 R
Days
21
#
SKUs
200
Invtry
Eff Capac
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Utilization
93%
Lead time
17 Min
Lead time
Yield
87%
Reliability
UPtime
# SKUs
WRAPPING
PACKAGING
LABELING 4
CHOPPING
(3)
5
4000
Days
#
SKUs
1000
Invtry
Eff Capac
29
Eff Capac
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
Utilization
83%
Utilization
10 Min
Lead time
10 Min
Lead time
8 Min
Yield
98%
Yield
100%
Yield
100%
98%
Reliability
95%
Reliability
98%
Reliability
98%
61%
UPtime
69%
UPtime
98%
UPtime
98%
200
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
~0
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
17 Min
10 Min
10 Min
Days
42
# SKUs
2,000
60%
3 M
7 Days
21 Days
322M sq Ft
42 Days
8 Min
24
A COMPLETE VALUE STREAM MAP
SALES &
OPERATIONS
PLANNING
MASTER PRODUCTION
SCHEDULE (MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
AGGREGATED
DEMAND
(MONTHLY)
Order Lead
Time
1 week
# SKUs
Frequency
1.8 Cars/Day
Lot Size
140K lbs
Transp time
7 Days
1 Week
# SKUs
Frequency
1 Car/Day
Lot Size
140K lbs
Transp time
7 Days
ORDERS
ORDER
GRANTS
CURRENT
INVENTORIES
CUSTOMERS,
DISTRIBUTORS
DAILY PRODUCTION
SCHEDULE (WEEKLY)
SHEET
FORMING
6
(4)
SUPPLIER 2
CUSTOMER
SERVICE
REPS
PRODUCTION
SUPERVISOR
Order Lead
Time
CUSTOMER FORECASTS
(QUARTERLY)
CAPACITY FORECAST
(MONTHLY)
RAW MATERIAL
ORDERS (MONTHLY)
SUPPLIER 1
DEMAND
MANAGEMENT
PROCESS
Invtry
6.3M lbs
Days
16
#
SKUs
Effective
Capacity
11.8
TAKT
9.5
(Master Rolls/Hr)
Utilization
80%
CALENDARING
BONDING
(4)
6
Invtry
2500 R
Days
12.6
#
SKUs
50
Effective
Capacity
8.9
TAKT
8.3
(Master Rolls/Hr)
MATERIAL
RELEASES
SLITTING
(3)
Invtry
3650 R
Days
21
#
SKUs
200
Invtry
Effective
Capacity
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
WRAPPING
PACKAGING
LABELING 4
CHOPPING
(3)
5
4000
Days
#
SKUs
1000
Invtry
Effective
Capacity
29
Effective
Capacity
200
TAKT
24
TAKT
120
(Slit Rolls/Hr)
(Cut Rolls/Hr)
Utilization
93%
Lead time
15 Min
Utilization
83%
Utilization
Lead time
17 Min
Yield
87%
Lead time
10 Min
Lead time
10 Min
Lead time
8 Min
Yield
87%
Reliability
90%
Yield
98%
Yield
100%
Yield
100%
Reliability
95%
Reliability
98%
Reliability
Reliability
98%
UPtime
73.6%
UPtime
61%
50
UPtime
69%
UPtime
98%
UPtime
98%
# SKUs
200
Batch size
1 roll
# SKUs
1000
# SKUs
1800
# SKUs
2000
Batch size
1 roll
EPEI
9 days
Batch size
1 roll
Batch size
1 Slit Roll
Batch size
1 Cut Roll
EPEI
13 days
C/O time
1 hr
EPEI
7 days
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O time
5 Min
C/O time
C/O time
C/O loss
2 Rolls
C/O loss
~0
Avail time
168 hr/wk
C/O loss
~0
C/O loss
C/O loss
Avail time
168 hr/wk
3x8x7
Avail time
168 hr/wk
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
12.6 Days
3 M
7 Days
21 Days
17 Min
10 Min
10 Min
320K Sq Ft/Hr
Lead time Exp
7 Days
Frequency
12 Trucks/Day
Lot Size
648K Sq Ft
Transp time
3 Days
322M sq Ft
Days
42
# SKUs
2,000
98%
Shift schd
15 Min
230M Sq Ft/Mo
TAKT
60%
# SKUs
16 Days
Quantity/time
KEY
K = 1,000
M = 1,000,000
B = 1,000,000,000
42 Days
8 Min
NVA Time = 99 Days

VA Time = 73 Min
25
BENEFITS OF A VSM
1. It gives the team a sense of flow, inventory, bottlenecks

2. It creates understanding of how value is created for customers
3. Brings everyone to a shared understanding of the end-to-end process
4. It highlights key areas of waste
5. It links planning and scheduling processes to material flow
6. It gives clues to root causes of waste
7. It provides a template for improvement plans, leading to the Future State
VSM
26
VSM BEST PRACTICES

Takt as a rate measure
Accounting for yield losses
Using the most appropriate units

Where to start the map
Convention on direction of flow
Parallel assets
Representing FLOW vs geography
27
TAKT TIME
Takt
A measure of the rate of customer demand
Takt in German means rhythm, or drum beat
Goal is to synchronize production to customer needs
Takt Time = Total available time / Customer demand

Units
Minutes (per car, per roll, per batch)

Also hours or seconds
A measure of how much time you have to produce a unit and meet
customer needs
28
TAKT TIME

Available Time
The time you plan to run, the planned work schedule
Number of shifts
Hours per shift
Deduct time for lunch and breaks
If a plant runs 16 hours per day, 5 days each week, available time would
be 80 hours per week
If production suspends for an hour each shift for lunch and breaks,
available time is 70 hours per week
Do NOT deduct for equipment downtime
29
TAKT TIME

Example
A salad dressing line has weekly demand of 45,000 cases for the flavors
made on that line
Three eight-hour shifts per day, 5 days per week
Production continues through lunch, breaks, shift changes
Available time = 3 x 8 x 5 = 120 hours/week
Takt = 120 hours / 45,000 cases = 9.6 seconds
So the plant must produce a case every 9.6 seconds to satisfy customer
demand
30
TAKT AS A RATE PARAMETER

The units for Takt Time can be awkward in a process plant
For a chemical process with a demand of 100 gal/min,
Takt time = 0.6 seconds/gal
For a plastic film line with a demand of 400 feet/min, Takt
time = 0.15 secs/foot
For our salad dressing line, if customer demand = 300
bottles/min, Takt time = 0.2 secs/bottle
Rate based parameters are often used instead of time

based units
Takt Time = Available time / Customer demand

Takt Rate = Customer demand/ Available time
31
TAKT AS A RATE PARAMETER

So on our salad dressing line
Takt Time = 120 hours / 45,000 cases = 9.6 seconds
So the plant must produce a case every 9.6 seconds to satisfy customer
demand
Takt rate = 45,000 cases/120 hours = 375 cases/ hour
So we must produce 375 cases per hour to meet customer demand
Takt Time seems to work best in most parts operations

Takt Rate seems more appropriate in most process operations
32
TAKT and YIELD LOSSES
Takt must be adjusted to account for yield losses

Step 4
Avail time = 24 hr/day
Yield = 100%
Takt = 55 rolls/hr
Step 5
Step 6

Takt = 50 rolls/hr
Yield = 90%

Takt = 50 rolls/hr
CUSTOMER
Demand = 1200
rolls/day
33
TAKT and AVAILABLE TIME
If Available time changes, Takt changes
Step 4
Step 5
Step 6

Yield = 100%
Takt = 83 rolls/hr

Yield = 90%
Takt = 50 rolls/hr

Takt = 50 rolls/hr
Eff Capac
= 102 rolls/hr
Eff Capac
= 54 rolls/hr
Eff Capac
= 85 rolls/hr
CUSTOMER
Demand = 1200
rolls/day
34
Units of
Production
(Pounds?, Gallons?, Rolls?, Square Meters?)
35
UNITS OF PRODUCTION
The units by which production is measured may change from step to step
In a ketchup production line

Raw materials: pounds, gallons, cases
Kitchen: gallons per minute
Bottling line: Bottles per minute (BPM)
Label applicator: BPM
Case packer: Cases per hour
Palletizer: Pallets per hour
Two considerations:
1) Use the units most directly related to equipment throughput.
2) Use the units generally used within the area (by operators,
mechanics, process engineers, lab technicians).
36
Polymerization
Reactor 1 POUNDS
Roll Forming
Machine 1
or GALLONS
Roll Forming
Machine 2
Roll Bonder 1
Roll Forming
Machine 3
Roll Bonder 2
Roll Slitting
Machine 1
Roll Bonder 3
Roll Slitting
Machine 2
Chopper
1
UNITS OF PRODUCTION
Chopper
2
Roll Forming
MILL
ROLLS
Machine
4
Roll Bonder 4
MILL ROLLS
Roll Slitting
MILL
Machine 3
ROLLS or
SLIT ROLLS
Chopper
3
SLIT ROLLS or
SHEETS
BOXES, SHEETS, or SQUARE METERS

Packaging
37
UNITS OF PRODUCTION
In an paper sheet goods manufacturing line

Raw materials: pounds, gallons
Sheet forming: Mill rolls

Bonding: Mill rolls
Slitting: Mill rolls or slit rolls
Chopper: Slit rolls, cut rolls or sheets
Packaging: Cut rolls or sheets
Palletizing: Cut rolls or boxes
Customer orders: Square feet, square meters
Again two considerations:

Use the units most directly related to equipment throughput.
Use the units generally used within the area (by operators,
mechanics, process engineers, lab technicians)..
38
CUSTOMER TAKT CONVERTED FOR EACH PROCESS STEP
39
GENERATING THE VSM
Creating the VSM should be a team activity

Cross-functional
Process engineers
Operators
Mechanics
Lab technicians
Customer service reps
Production schedulers
Supervisors
Creates shared learning across different process areas

Builds ownership for potential improvements
Knowledge base to understand root cause
40
GENERATING THE VSM
Two approaches
1. Walk the line
Sketch the flow as you go
Engage operators in discussions of flow and problems
2. Gather the team in a conference room
Discuss the process
Generate the VSM electronically
Then walk the line
Return to conference room and upgrade the VSM
41
WHERE TO BEGIN
Two mapping approaches

1. Start at the shipping dock and work backwards
Begins with customer needs
Works very well for converging processes
2. Start with receipt of raw materials and work forward
The way most people think of their process
May put more focus on the process vs the customer
Works better for diverging processes
42
GOOD VSM PRACTICES
Always depict flow from left to right
43
LEVEL OF DETAIL
Keep the map at a relatively high level
Detailed enough to see flow and barriers to flow

Not so detailed that main messages get buried
4 to 8 process steps is typical
If additional detail becomes important, can be shown on more
specific process maps
Auxiliary processes may be shown if they affect flow
Re-work areas
Testing labs, QC labs
Waste streams
Adopt an interstate map mindset
44
GOOD VSM PRACTICES
NARROW ROLL
CHOPPER
(1' - 3')
(1)
Effective
Capacity
5
9
TAKT
(Slit Rolls/Hr)
SLITTING
(3)
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Lead time
10 Min
Yield
98%
Reliability
95%
UPtime
69%
# SKUs
1000
Batch size
1 roll
89%
Lead time
10 Min
Yield
100%
5
Invtry
Effective
Capacity
Utilization
EPEI
7 days
C/O time
5 Min
C/O loss
~0
Avail time
168 hr/wk
Shift schd
3x8x7
WRAPPING
PACKAGING
LABELING 4
4000
Days
#
SKUs
1000
Effective
Capacity
TAKT
(2)
Utilization
Effective
Capacity
20
TAKT
16
200
120
(Cut Rolls/Hr)
UNIVERSAL
CHOPPER
(1' - 6')
(Slit Rolls/Hr)
Utilization
80%
Lead time
10 Min
Yield
100%
60%
Lead time
8 Min
Yield
100%
Reliability
98%
UPtime
98%
# SKUs
2000
Batch size
1 Cut Roll
EPEI
7 days
C/O time
C/O loss
Avail time
168 hr/wk
Shift schd
3x8x7
Similar equipment in parallel

If nearly identical, show as one process box, noting the
number of machines in parallel
If different, in a way that impacts flow, show each machine
45
PARALLEL EQUIPMENT WITH DIFFERENT CAPABILITY
NARROW ROLL
CHOPPER
(1' - 3')
(1)
Effective
Capacity
TAKT
(Slit Rolls/Hr)
SLITTING
(3)
Effective
Capacity
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Lead time
10 Min
Yield
98%
95%
UPtime
69%
# SKUs
1000
Batch size
1 roll
89%
10 Min
Yield
100%
WRAPPING
PACKAGING
LABELING 4
10.3
Reliability
Utilization
Lead time
EPEI
7 days
C/O time
5 Min
C/O loss
~0
Avail time
168 hr/wk
Shift schd
3x8x7
Invtry
4000
Days
#
SKUs
1000
Effective
Capacity
20
TAKT
16
(Slit Rolls/Hr)
Utilization
80%
Lead time
10 Min
Yield
100%
120
Utilization
60%
Lead time
8 Min
Yield
100%
Reliability
98%
UPtime
98%
# SKUs
2000
Batch size
1 Cut Roll
EPEI
7 days
C/O time
C/O loss
Avail time
168 hr/wk
Shift schd
3x8x7
3 M
7 Days
10 Min
200
TAKT
(Cut Rolls/Hr)
UNIVERSAL
CHOPPER
(1' - 6')
(2)
Effective
Capacity
8 Min
46
GEOGRAPHIC DEPICTION ON A VSM
SHEET
FORMING
(4)
6
Effective
Capacity
11.8
TAKT
9.5
(Master Rolls/Hr)
Utilization
80%
CALENDARING
BONDING
(4)
6
SLITTING
(3)
ROLL
GOODS
STORAGE
Effective
Capacity
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Lead time
AUTOMATIC
STORAGE &
RETRIEVAL SYSTEM
10 Min
CHOPPING
(3)
5
Effective
Capacity
8.9
Effective
Capacity
29
TAKT
8.3
TAKT
24
(Master Rolls/Hr)
Utilization
93%
(Slit Rolls/Hr)
Utilization
83%
Lead time
10 Min
47
LOGICAL DEPICTION ON A VSM

THESE ARE ALL WITHIN THE SAME
PHYSICAL INVENTORY STORAGE AREA
SHEET
FORMING
6
(4)
Effective
Capacity
11.8
TAKT
9.5
(Master Rolls/Hr)
Utilization
80%
Lead time
15 Min
CALENDARING
BONDING
(4)
6
Invtry
Days
#
SKUs
1990
Rolls
10
50
Effective
Capacity
8.9
TAKT
8.3
(Master Rolls/Hr)
Utilization
93%
Lead time
17 Min
SLITTING
(3)
1380
Rolls
Invtry
Days
#
SKUs
200
Effective
Capacity
CHOPPING
(3)
5
10.3
TAKT
7.2
(Bonded Rolls/Hr)
Utilization
70%
Lead time
10 Min
Invtry
4000
Days
#
SKUs
1000
Effective
Capacity
29
TAKT
24
(Slit Rolls/Hr)
Utilization
83%
Lead time
10 Min
Yield
87%
Yield
87%
Reliability
90%
Yield
98%
Yield
100%
Reliability
98%
UPtime
73.6%
Reliability
95%
Reliability
98%
UPtime
61%
# SKUs
50
UPtime
69%
UPtime
98%
# SKUs
200
Batch size
1 roll
# SKUs
1000
# SKUs
1800
Batch size
1 roll
Batch size
1 roll
Batch size
1 Slit Roll
EPEI
7 days
EPEI
7 days
C/O time
1 hr
EPEI
7 days
EPEI
7 days
C/O time
45 Min
C/O loss
2 Rolls
C/O time
5 Min
C/O time
C/O loss
~0
Avail time
168 hr/wk
C/O loss
~0
C/O loss
Avail time
168 hr/wk
Shift schd
3x8x7
Avail time
168 hr/wk
Avail time
168 hr/wk
Shift schd
3x8x7
Shift schd
3x8x7
Shift schd
3x8x7
10 Days
15 Min
17 Min
3 M
7 Days
8 Days
10 Min
10 Min
48
SUMMARY
In order to become more lean, you must be able to see the waste in
your process
Value Stream Mapping is a proven, effective way to do that
A well constructed VSM will enable you to see the major wastes
And clues to their root cause
The VSM provides a template for all improvement activity
Using all planned improvements to build a Future State VSM

insures that all efforts are
Coordinated
Integrated
Moving you toward a more waste-free process
49
SUMMARY II
A VSM consists of three key components

Material flow (with data boxes)
Information flow
A timeline
Integrating material and information flow on the same diagram
highlights areas where mishandling of information inhibits smooth
flow and creates waste
Because most sources of waste add time to the process, the
timeline focuses attention on these wastes
50
TO LEARN MORE ..
The material in this

presentation is featured in
Productivity Press
May 2009
51
Questions?
peterking@LeanDynamics.us
(302) 239-1667
(302) 528-2700
52
Appendix 1
TAKT TIME & CYCLE TIME
53
TAKT and CYCLE TIME
Takt
A measure of the rate of customer demand
Takt in German means rhythm, or drum beat
Goal is to synchronize production to customer needs

Units
Minutes (per car, per roll, per batch)

Also hours or seconds
A measure of how much time you have to produce a unit and meet
customer needs
54
TAKT and CYCLE TIME

Available Time
The time you plan to run, the planned work schedule
Number of shifts
Hours per shift
Deduct time for lunch and breaks
If a plant runs 16 hours per day, 5 days each week, available time would
be 80 hours per week
If production suspends for an hour each shift for lunch and breaks,
available time is 70 hours per week
Do NOT deduct for equipment downtime
55
TAKT and CYCLE TIME

Example
A lawnmower plant has weekly demand of 2000 for a certain model
Two eight-hour shifts per day, 5 days per week
Production continues through lunch, breaks, shift changes
Available time = 2 x 8 x 5 = 80 hours/week
Takt = 80 hours / 2000 = 2.4 minutes

So the plant must produce a completed mower every 2.4 minutes to
satisfy customer demand
56
TAKT and CYCLE TIME

Takt must be increased to accommodate losses
If step 4 in the process has a 10% yield loss or scrap rate
Steps 1, 2, and 3 must produce at a Takt of 2.2 minutes to match
customer needs
Step 2
Step 3
Step 4
Step 5
Takt = 2.2 min
Takt = 2.2 min
Takt = 2.4 min*
Avail time = 80 hr/wk
Yield = 90%
Takt = 2.4 min
CUSTOMER
Customer demand
= 2000 mowers
per week
* Takt is measured in terms of good output

57
TAKT and CYCLE TIME
Cycle Time
If Takt represents customer demand.
Our process must be able to produce within that time
Cycle Time measures how long it takes to produce one unit, one
lot, one batch, etc.
If Cycle Time < Takt, we can produce faster than customer needs
If the cycle time for step 3 in the lawnmower plant is 2 minutes,
we can produce faster than needed, with about 10% spare
capacity
58
TAKT and CYCLE TIME
Cycle Time = Reality

Cycle time does not represent the best we can expect from our
process or a specific step.
It represents what we should expect under normal conditions,
allowing for PMs, unexpected downtime, rate reductions, yield
losses, time for product changeovers, etc
Cycle Time = 1 / Max Demonstrated Rate (MDR) x OEE

Cycle Time = 1
Cycle Time = 1
/ (MDR
/ (MDR
x UPtime)
x % Reliability x % Rate x % Yield)
59
TAKT and CYCLE TIME
Utilization
A measure of how fully occupied a process step is, how busy it is
Utilization = Cycle Time/ Takt

If Step 3 in the mower plant has a cycle time of 2 minutes, and a
Takt of 2.2 minutes
Utilization = 91%
Utilization is an indication of where there are bottlenecks in process
flow
60
TAKT and CYCLE TIME
Takt as a Rate parameter

The units for Takt and cycle time can be awkward in a process
plant
0.6 seconds/gal vs 100 gal/min
0.15 secs/ft vs 400 feet/min
0.171 secs/bottle vs 350 bottle/min

Rate based parameters are often used instead of time based
units
Takt Time = Available time / Customer demand

61
TAKT and CYCLE TIME
Takt as a Rate parameter

As before, available time is the time we intend to run
= no of shifts x (hrs/shift lunch breaks)
In the lawnmower example, Takt rate for Step 5 = 25 mowers/hr
(= 2000 mowers/week / 80 hrs/week)
Takt rate is simply the reciprocal of Takt time
62
TAKT and CYCLE TIME
Effective Capacity
The reciprocal of Cycle Time is often called Effective Capacity
As before, it represents realistic expectations, not perfection
Cycle Time = 1 / Max Demonstrated Rate (MDR) x OEE

Effective Capacity = Max Demonstrated Rate (MDR) x OEE
63
TAKT and CYCLE TIME
Utilization
A measure of how fully occupied a process step is, how busy it is
Utilization = Takt rate/ Effective capacity

If Step 3 in the mower plant has an effective capacity of 30
parts/min, and a Takt of 27.3 parts/min
Utilization = 91%
Everything works out the same, its just easier for some
people to relate to rate based parameters
64
TAKT and CYCLE TIME
Another example ~ Roll forming
Step 4
Step 5
Yield = 100%
Takt = 55 rolls/hr
Yield = 90%
Takt = 50 rolls/hr
Step 6
Takt = 50 rolls/hr
CUSTOMER
Demand = 1200
rolls/day
65
TAKT and CYCLE TIME
If Available time changes, Takt changes
Step 4
Step 5
Step 6

Yield = 100%
Takt = 83 rolls/hr

Yield = 90%
Takt = 50 rolls/hr

Takt = 50 rolls/hr
CUSTOMER
Demand = 1200
rolls/day
66
TAKT and CYCLE TIME
Utilization = Takt rate/ Effective capacity
Step 4
Step 5
Step 6

Yield = 100%
Takt = 83 rolls/hr

Yield = 90%
Takt = 50 rolls/hr

Takt = 50 rolls/hr
MDR = 120 rolls/hr

OEE = 85%
Eff Capac = 102 rolls/hr
Util = 81%
MDR = 72 rolls/hr
OEE = 75%
Util = 93%
MDR = 100 rolls/hr

OEE = 85%
Util = 59%
CUSTOMER
Demand = 1200
rolls/day
67
TAKT and CYCLE TIME
To summarize
Cycle time or effective capacity is a measure of what we can expect from

each step in our process under normal operating conditions
Take time or take rate is what each step in the process must make to meet
customer demand
If cycle time and takt time for a process step are exactly equal, that step is
perfectly synchronized to customer needs
If cycle time exceeds takt, we have a bottleneck
If cycle time is less than takt, we have some degree of excess capacity (this
is desirable)
It is up to the user to decide whether time or rate parameters make

more sense
68

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VALUE STREAM MAPPING

PROCESS INDUSTRY OPERATIONS

Value Stream Map basics

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

Lean is all about removing WASTE from our process

How do we understand the flow?

SCHEDULE UPDATES (DAILY)

How do we see waste?

SCHEDULE UPDATES (DAILY)

A Value Stream Map

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

Lead time Exp

NVA Time = 99 Days

ORIGINS OF VALUE STREAM MAPS

Based on Toyotas material and information flow

SCHEDULE UPDATES (DAILY)

SCHEDULE UPDATES (DAILY)

Standardized and popularized by Rother and

Batch size 1 Slit Roll

Avail time 168 hr/wk

Avail time 168 hr/wk

Avail time 168 hr/wk

Avail time 168 hr/wk

Avail time 168 hr/wk

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

Lead time Exp

Batch size 1 Cut Roll

NVA Time = 99 Days

SCHEDULE UPDATES (DAILY)

SCHEDULE UPDATES (DAILY)

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

Lead time Exp

NVA Time = 99 Days

SCHEDULE UPDATES (DAILY)

SCHEDULE UPDATES (DAILY)

Lead time Exp

NVA Time = 99 Days

MATERIAL FLOW ON A VSM

Lead time Exp

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

THE PROCESS BOX

Includes the quantity of similar machines

MATERIAL FLOW ICONS

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

MORE MATERIAL FLOW ICONS

PUSH Material Movement

Material flow in a Pull environment

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

VSM DATA BOXES

Lead time Exp

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

Process Step Data Box

Customer Data Box

Cycle Time (Capacity)

VALUE STREAM MAP

Order Lead Time

List all data relevant to FLOW and

CUSTOMER DATA BOX

Total quantity = the sum

Customer Data Box

Takt = The time available to produce one unit of customer

2009 - LEAN DYNAMICS LLC ALL RIGHTS RESERVED

MANUFACTURING PROCESS STEP DATA BOX