Value Stream Map, A deeper dive

VSM has some segments. They are:

Value Added (VA)- Anything that customer is willing to pay for is value added.
Non-Value Added (NVA)- Anything the customer is not willing to pay for or is not of value
for them. Simply, they are your wastes.
Business Value Added (BVA){Also known as VE-Value Enabled} – It is an activity that is done
by the business so that they meet the needs of the customer.

P1 P2 P3

5 mins 10 mins NVA (Waiting time)

10 mins 5 mins 15 mins CT (Cycle time)
NVA- 1 min 0 mins 3 mins
BVA- 4 min 4 mins 2 mins
VA- 5 min 1 min 10 mins
Cycle Time = 30 mins
NVA = 15 mins
Lead time = Sum of all the times = 45 minutes
Process Cycle Efficiency (PCE) = VA/LT = 30/45 = 66.66%
Taking the values of the above entries individually,
Total VA = 16 mins, BVA = 10 mins, NVA = 24 mins.
According to the new values, the new PCE = 16/45 = 35.55%
The value of PCE is calculated by using only value added that we got after segregation
because, the qty of value added is different from cycle time. This NVA and BVA does not
concern the customer and they can be avoided in our calculation.

TT (Takt Time)-The time required to produce the goods required by the customer.
Takt time= Available time/Customer Demand
= (8*60)/100 = 0.48 mins
Measure: To analyze the situation at hand, data is required. It is two types:
 Discrete-can be counted (numbers)
1. Binary (True/False Good/Bad)
2. Ordinal (Ordered {1-10,1-5}, Unordered {Red, Blue, Green})
 Continuous-can be measured (numbers associated with units)

Problem Statement: Examples (Refer page 62 of the notes)

Example: What is the data that you need to collect to measure the delay in flights from
Dubai to Sharjah? (Example to give an idea on what data is important)

S No. Date Flight Airline Arrival Scheduled Departure Scheduled Delay

No. Time arrival Time Departure

Whenever the data is being collected, CTQ must be defined as without operational
definition, we can’t have a concrete idea on which data to collect.
After defining the CTQ, we must have a plan to collect the data, known as Data Collection
Plan (DCP). DCP must have 5 components:

 What-Can be clarified via CTQ

 Where-Source
 When-Frequency of data collection
 How-Kind of sampling – Random, Stratified (Based on certain groups), Systematic
(Based on a specific pattern), Cluster (Subgroup).
 How Much-Sample Size

Sample Size Confidence Level Confidence Sample value

Interval(Value range (value obtained
based on your from studying the
confidence level) sample)

100% 100% 175 cm

90% 90% 150-190cm 160 cm
50% 90% 140-200cm 180 cm
50% 50% 155-175cm
(average height of the class)
Keeping the sample size same, if you increase the confidence level, then confidence level
increases. Statistically, if our confidence level is 95%, then we can proceed with the data.

𝑍𝑐 𝜎 2
Sample Size ἡ= ( )
∆
Where 𝑍𝑐 =level of confidence

∆=Precision, 𝜎 =population of Standard deviation

Process- Simple Tendency (MMM), Spread Variation (𝜎, 𝑆 2 , 𝑅)
Normal Distribution: In between -1 & 1, 68.27% data is present.
Between -2 & 2, we have 95.4% data and 99.7% of data is present between -3 and 3. Thus, -
3 & 3 are lower control and upper control limits. And the changes that happen between the
interval -3 & 3 are common cause variables, and the changes beyond this limits are called
special cause variables.

Total variation:
Total variation (TV)=Process Variation (PV)+Measurement Variation (MV) {MV depends on
repeatability (the action done by same person) and reproducibility (same action done by a
different person and expecting the same result)}

Measurement System Analysis:

 Discrete-Alternate Agreement Analysis (Kappa -K): If K≥0.9 – Acceptable
0.8≤K≤0.9-Business Call
K≤0.8-Reject

 Continuous-Gauge repeatability and reproducibility- study variation: sv % (0-100%)

SV%≤10-Acceptable

10%≤SV≤30%-Business Call

SV%>30-Reject

Measure:
Data Collection Plan
Measurement System Analysis
Stability- “Normality(P)”
Capability
Capability: can be measured using:
 Discrete Data-Done using DPMO (Defects per Million Opportunity)
 Continuous-𝐶𝑝 ,𝐶𝑝𝑘 -Process Capability Index

# 𝒐𝒇 𝒅𝒆𝒇𝒆𝒄𝒕𝒔 ×𝟏𝟎𝟔 𝑫𝑷𝑼×𝟏𝟎𝟔

DPMO= = (DPU=Defects Per Unit, OFE= Opportunity for
# 𝒑𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒐𝒏 ×𝑶𝑭𝑬 𝑶𝑭𝑬
Error)
 Defects Defectives
Cap + Body 2 1
Ink Dry + Body + Cap 3 1
Tip + Print + Ink + Body +Cap 5 1
Body 1 1

5 OFE- Cap Broken, Body Broken, Ink Dry, Print issue, Tip issue.
11×106
DPMO= =22000
100×5

Based on the Sigma and DPMO table, Sigma Level=3.51

Rolled throughput yield: The cumulative output you get after all the processes are
completed including the reworks of the products.