Value Stream Mapping
Value Stream Mapping
Value Stream Mapping
Bangladesh
A report submitted to the Department of Industrial Engineering and Management,
Khulna University 0f Engineering & Technology in partial fulfillment of the
requirement for the
Course of IPE 4002
Submitted By:
Al-Nahian Bin Hossain
Roll-1211024
Submitted To:
Subrata Talapatra
Head
Department of Industrial Engineering and Management
Khulna University of Engineering & Technology
Khulna-9203, Bangladesh.
05 September, 2016
SUBMITTED BY:
Al-Nahian Bin Hossain
Roll: 1211029
SUPERVISED BY:
Subrata Talapatra
Head
Department of Industrial Engineering and Management
Khulna University of Engineering & Technology
5 September, 2016
ABSTRACT
Value stream mapping is a lean manufacturing procedure that originated from the Toyota
Production System (TPS). It is used to examine and intend the flow of material and
information required to bring a product or service to a consumer. This thesis has two
major objectives. The first is an in detail literature review on value stream mapping,
especially in relation to useful value stream mapping tools and the application of value
stream mapping in garments industry. The literature review of value stream mapping
provides an overview of this lean tool, which offers a structure for potential study in the
application of value stream mapping in garments industry. The other objective is to
perform a case study of my own understanding in doing this research study and the value
stream mapping of my thesis writing process. In this study value stream mapping has been
prepared in an apparel manufacturing unit at sewing section, as sewing room is most
brimming room comparing with any other departments in this type of organization. Here
on a specific product value stream has been done in current state and non value added
activity was separated and a future state mapping is projected for that style of product.
The value stream mapping process helps imagine the work and target waste, which enables
upcoming improvement toward an improved state. As a result, the superior value stream
maps can be strategy for future studies.
ACKNOWLEDGEMENT
In the name of Allah, The Most Loving and The Most Compassionate
We would like to take this opportunity to extend our deepest gratitude to the following persons
who helped us a lot in the special studies, which enabled us to complete our report in time as the
requirement for the course no: IPE 4002.
First and foremost, a special thanks to my supervisor Subrata Talapatra
Head, Department of Industrial Engineering and Management, Khulna University of
Engineering & Technology (KUET) for providing us the opportunity to study on His
enthusiasm for scientific research, research methodology and insightful physical understanding
will definitely inspire our future research and work. He encouraged us to grow as a scientific
engineer with his invaluable guidance throughout our work. We are benefited a lot of
professional knowledge in the material science research area, which makes our special study a
memorable and valuable experience for our career.
Thanks to our classmates with their encouragement and help. We sincerely thanks to the staff
members of the Department of Industrial Engineering and Management for their help. Last but
not least, our special thanks, to our family members for their continuous support and advice from
the early stage of our study.
May ALLAH bless the course teachers.
Author
NOMENCLATURE
Lean manufacturing
A production practice that considers the expenditure of resources for any goal other than the
creation of value for the end customer to be wasteful, and thus a target for elimination. (Liker,
2004)
Value Stream
The sequence of activities required to design, produce, and deliver a good or service to a
customer; includes the dual flows of information and material (Womack & Jones, 1996).
Value Stream Mapping (VSM)
A lean-management method for analyzing the current state and designing a future state for the
series of events that take a product or service from its beginning through to the customer (Rother
& Shook, 2003).
Push-Pull System
Describes the movement of a product or information between two subjects. In markets,
consumers usually "pull" the goods or information they demand for their needs, while suppliers
"push" them toward the consumers. Push production is based on forecast demand and pull
production is based on actual or consumed demand. (Liker, 2004)
A production strategy that strives to improve a business's return on investment by reducing inprocess inventory and associated carrying costs. JIT focuses on continuous improvement and can
improve a manufacturing organization's return on investment, quality, and efficiency. (Liker,
2004)
Continuous-flow Manufacturing (CFM)
An approach to discrete manufacturing that contrasts with batch production. The goal is an
optimally balanced production line with little waste, the lowest possible cost, on-time and defectfree production. (Bowers, 1990)
Takt Time
Derived from the German word Taktzeit, sets the pace for industrial manufacturing lines so that
production cycle times can be matched to customer demand rate. (Liker, 2004)
Critical Path Method (CPM)
A method for scheduling a set of project activities. (Kelley,1959)
TABLE OF CONTENTS
Page
TITLE PAGE.....................................................................................................................1
ABSTRACT...................................................................................................................... 2
ACKNOWLEDGEMENTS ...............................................................................................3
NOMENCLATURE .......................................................................................................... 4
TABLE OF CONTENTS ................................................................................................ 5
LIST OF FIGURES ...........................................................................................................6
LIST OF TABLES ............................................................................................................ 6
1 INTRODUCTION ....................................................................................... .....................7
1.1 Background.............................................................................................................. 7
1.2 Objective of the Study .............................................................................................. 7
1.3 Significance.............................................................................................................. 8
1.4 Limitations ............................................................................................................... 8
1.5 Delimitation.............................................................................................................. 8
LIST OF FIGURES
LIST OF TABLES
1. INTRODUCTION
1.1 Background
Since it originated in the Toyota Production System (TPS), many researchers have discussed the
application of Value Stream Mapping (VSM) in different industries. Value stream mapping is a
lean manufacturing technique used to analyze and design the flow of material and information
required to bring a product or service to a consumer (Rother & Shook, 2003). Value stream
mapping is a powerful tool that provides a visual view of work processes, improves work
strategies and deepens an understanding of eliminating waste and delivering value. Since 1993,
the new philosophy of lean production and the application of value stream mapping have been
introduced in construction (Pasqualini & Zawislak 2005). A literature review shows that previous
studies on the application of value stream mapping in construction have focused on macroprocesses, such as supply chain (Arbulu & Tommelein 2002) or project delivery (Mastroianni &
Abdelhamid 2003), or on single operations, such as components manufacturing (Alves et
al.2005) and masonry works (Pasqualini & Zawislak, 2005). By definition, value stream
mapping analyzes the flow of material and information in a value stream; however, previous
studies did not emphasize the flow of information during work processes.
1.3 Significance
First, the literature review of value stream mapping provides an overview of this lean tool, which
offers a framework for future study in the application of value stream mapping in construction
industry. Second, the case study of my thesis writing process can be regarded as information
flow, and applying value stream mapping in the process helps visualize the work and target
waste, which enables future improvement toward a better state.
1.4 Limitations
The limitations of my study include the following: first, the literature search is limited to
research written in English; valuable studies in other languages could be excluded. Second, in the
case study portion, the time for doing one unit of research work (e.g. reading a research paper)
varies depending on many reasons. The time recorded will be an average time, and thus may
affect the accuracy of the value stream map.
1.5 Delimitation
The scope of the research is delimited to an in-depth literature review of previous studies on
value stream mapping and the application of value stream mapping in construction industry. The
practice of mapping out my thesis writing process will enhance my understanding of value
stream mapping, in preparation for further study in this area in the future.
2. LITERATURE REVIEW
2.1 Introduction
This study focuses on the value stream mapping tool and its application. In order to build the
theoretical framework, a comprehensive literature review is important for the first part of this
study. The summary of previous research on value stream mapping will provide the larger picture
of the current research. . In the second portion of this research, the task is to map the thesis
writing process and the method is following the value stream mapping principles identified in the
literature review. The value stream mapping method will be discussed in the next chapter.
process of reading and evaluating articles helps researchers find connections between the
existing researches and identify problems or gaps that exist in the published studies. Then
researchers start to develop and connect their own ideas to it.
The following sections summarize the literature review from several main aspects according to
keywords.
In the book Value Stream Mapping: How to Visualize Work Flow and Align People for
Organizational Transformation (2013), Martin and Osterling summarized the benefits of value
stream mapping as the following.
(1) The visual unification tool can help in visualizing non-visible work, such as information
exchanges. Visualizing non-visible work is a key step in understanding how work gets done.
(2) Value stream maps can create connections to the customer, which helps an organization focus
more on the customers perspective and deliver more value to the customer.
(3) Value stream maps can provide a holistic system view by connecting disparate parts into a
more collaborative organization, with the objective of providing higher value to customers.
(4) Value stream mapping can help in visualizing and simplifying the work process at a macro
level, which may help in making strategic improvement decisions better and faster.
(5) Value stream maps are effective means to orient newcomers by helping them understand a
holistic view and where they fit in an organization.
To sum up, value stream maps provide a visual, full-cycle macro view of how work progresses
from a customer request to the final fulfillment of that request. The mapping process deepens the
understanding of work systems that deliver value to customers and reflect the work flow from a
customers perspective. As a result, the process of value stream mapping provides effective ways
to establish strategic directions for better decision making and work design.
2.4.3 Create a Value Stream Map
Drawing a value stream map is the result of implementing a VSM tool. In the pioneering work of
Rother and Shook (2003), the landmark book Learning to See provided the first way to see the
value streams that Womack et al. introduced. According to Rother and Shook, the process of
creating a value stream map can be briefly summarized as:
(1) Identify the target product, process family or service.
The process family is a group of products or services that go through the similar or same
processing steps or the most problematic process family that needs to be improved.
(2) Draw the current state value stream map.
The current state map should illustrate how the exact activities are performed in a real working
context. To create a current state map, collect data and information by walking the flow and
interviewing the people who perform the tasks. With the information gathered through the
process, the current state value stream map can be created using pre-defined symbols
representing different elements in the value stream, which shows the information, process steps
required and current delays to deliver the request product or service to the customer.
The second tool, supply chain response matrix, helps identify the critical lead-time activities
constraining the process, in order to target these activities for improvement. Figure 3 shows an
example supply chain response matrix. The horizontal axis indicates the lead time for the
product. In this example, the cumulative lead time is 42 days. The vertical axis shows the
cumulative inventory in the supply chain, which represents an additional 99 working days, thus
the total lead time is 141 days. Each of the activity lead times can be targeted for improvement.
The third tool, production variety funnel, aids in understanding how products are produced and
how a company or supply chain operates. This tool helps the mapper to target inventory
reduction and gain an overview of the company. Figure 4 shows the production variety funnel of
a brewing industry case.
The fourth tool, quality filter mapping, helps to identify where quality problems occur. There are
three types of defects: the first is product defect, which is when defects are not caught by
inspections and are passed to customers. The second is quality defect, or service defect, e.g.
inappropriate delivery (early or delay), or any defect associated with customers experience. The
third defect is internal scrap, which refers to product defects that have been caught by inspection
checks. Then the three defects are mapped out; Figure 5 is an example of a quality filter map.
Using the mapping process, it is easier to identify where defects are occurring and to make
improvement to minimize waste.
The fifth tool, demand amplification mapping, helps in analyzing demand variability. A demand
amplification map shows how demand changes along a supply chain, and analysis and decisions can
be made using the information. Figure 6 is a demand amplification map of one food company. Two
curves are plotted: the lighter shaded one is actual customer sales while the darker curve represents
orders placed with the supplier to fulfill this order. From the map, the variability of supplier orders is
much higher than the consumer sales. Analyzing the demand changes along the supply chain helps in
managing the fluctuations or redesigning the value stream.
The sixth tool, decision point analysis, aids in identifying the point in the supply chain where
actual demand-pull gives way to forecast-driven push (Hines and Rich, 1997). In other words, it
is the point where products stop being made according to actual demand and are made against
forecast only. This tool shows where that point exists. Figure 7 is an example from a food
company that shows the decision point analysis. Knowing where the point is enables the planner
to assess the processes operating upstream and downstream from this point. The purpose is to
make sure they are working under the same pull or push philosophy. From a long-term
perspective, it provides various scenarios to see what the result is if the point is moved.
The seventh tool, physical structure, provides an overview of the supply chain at an industry
level. It helps with understanding how an industry operates and brings attention to areas that
might need improvement. Figure 8 illustrates the physical structure mapping tool that can be split
into volume structure and cost structure. The volume structure has various tiers in both
distribution and supplier areas, and the assembler is in the middle. The structure shows the
organizations involved in the value stream. In each part, the areas are proportional to how many
organizations are there. The cost structure is similar to the volume structure; however, the areas
are linked to the cost-adding process. In this example, the most cost adding in raw material
acquiring is the first tier. The purpose of the cost volume is to analyze the value adding required
in the final product when selling to the consumer.
In a later study, the Value Stream Analysis Tool (VALSAT) is introduced. (Hine et al. 1998). This
tool provides an organization with a deeper understanding of its value stream, which the WHATs
represent the required improvements according to customer needs, and the HOWs represent the
possible techniques in achieving these improvements. VALSAT helps determine which of the
HOWs to implement so that the most important WHATs can be resolved.
The tools introduced above can be applied in combination or singularly, based on the
requirements of the individual value stream (Hines & Rich 1997). Thus, choosing among the
tools to effectively eliminate the waste in any value stream becomes vital.
Procedure of VSM
The first step before starting the mapping is to identify the product families. Womack defines a
product family as a group of similar items that proceed through the same basic steps and
equipment within the organization (Womack, 2006). As a second step Womack emphasizes to
determine the current problem(s) with the value stream, e.g. within an A3 analysis. An A3
analysis is a standardized report form used by Toyota to systematically document problems and
their solutions on one page of an A3 sheet. Afterwards the development of the current state map
is ideally conducted by a multidisciplinary team where participants should be from the whole
value stream. Special attention must be paid whether every process step is:
Valuable (out of the perspective of the customer)
Capable (process capability)
Available (utilization of equipment)
Adequate (machine capacity)
Flexible
The final step of mapping the current state is measuring the throughput time of the value stream.
Finally the future state map can be created focusing mainly on the following improvement areas
(Womack, 2006):
Every step must be analyzed whether it really adds value to the product or service. Create
continuous flow: By connecting manufacturing processes (whenever possible) throughput time
can be dramatically reduced which reduces consequently costs. Leveling the output of the value
stream: Womack suggests to identify one spot along the value stream, the so-called pacemaker
step where customer orders are transformed into production instructions. It is essential to create a
standard inventory at this point to operate in a level, smoothed manner, using first-in/first-out
(FIFO) scheduling downstream from the pace-maker and pull signals upstream. (Womack,
2006) Liker (Liker and Meier, 2006) emphasizes that the real benefit of value stream mapping
lies in creating a true system based on the flow of materials and information across the entire
value stream instead of isolated point kaizen. Braglia (Braglia et al., 2006) developed a new
value stream mapping approach for complex production systems. He developed the following
Improved Value Stream Mapping (IVSM) procedure, which addresses the problem of complex
production processes characterized by multiple flows that merge:
a.
b.
c.
d.
e.
f.
g.
Bozzone (Bozonne, 2002) emphasizes the reduction of lead time for job shops as the equivalent
of the reduction of inventory in a mass-production environment. He concludes that one of the
main strategies during a Lean implementation of a MTO company should be the reduction of
lead time. Goldratt (Goldratt, 1997) describes the analogies between the lead time of projects and
the inventory of a massproduction. The production of complex products having a batch size of
one can be conducted in a
Project Management approach.
Alves (Alves et al., 2005) et al. investigates the use of VSM for manufacture-to-order products in
a job shop environment. They conclude that VSM for a job shop environment has to be flexible
to deal with its dynamic nature. Within a case study, specifically the fabrication of Heating
Ventilating and Air Conditioning, the authors present a VSM for the fabrication of sheet metal
ducts.
2.5 Summary
The literature review provides a current study of value stream mapping, specifically its principles
and tools, and the current application in construction. Future research could be conducted for the
further application of the different value stream mapping tools. VSM includes a step by step
approach to transform a current manufacturing state into a lean future state, which is the basis of
its success in practice[8].VSM is done visually separating value added from non value adding
activities. In this research following steps are monitored for a specific style:
1. Mention all the operation or steps of job.
2. Create a cumulative chart for that specific style.
3. Measure the time required for each single step of job or operation by time study.
4. Identify the non-value added activity.
5. Separate the each non value added time and make sum.
6. Calculate each value added activity time.
7. Identify the proportion of value added and non-value added.
8. Create the target flow chart by eliminating non value added.
9. Make new operation breakdown for that style.
10. Implement the target (future state) process or operation breakdown in the production floor.
3. METHODOLOGY
VSM includes a step by step approach to transform a current manufacturing state into a lean
future state, which is the basis of its success in practice.VSM is done visually separating value
added from non value adding activities. In this research following steps are monitored for a
specific style:
1. Mention all the operation or steps of job.
2. Create a cumulative chart for that specific style.
3. Measure the time required for each single step of job operation by time study.
4. Identify the non-value added activity.
5. Separate the each non value added time and make sum.
6. Calculate each value added activity time.
7. Identify the proportion of value added and non-value added.
8. Create the target flow chart by eliminating non value added.
N
o
Activities
Area
Waiting
for front
back
match
Front
back
match
Waiting
for
shoulder
join
Shoulder
join
Table
Waiting
Thread
Cut
Sewing
Line
Sewing
Line
Waiting
for care
label
attach
Table
Work
Statio
n
Sewing
Line
Numbe Cycl
r
of e
worker Time
s
Non
Value
Adde
d
Time
.700
.700
.100
0.155 0.155
7.49
.35
21.95
Table
Sewing
line
Time (Minutes)
for all activities
.10
.94
.15
16.22
Activities
Area
Work
Statio
n
Time (minutes)
for all activities
Number of
Workers
Cycle
Time
.242
.183
.380
.240
.210
.250
.250
.095
.095
.287
1.58
Care label
Sewing
attach at left line
seam
.24
3.13
1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
.18
Non
Value
Added
Time
.183
5.25
.38
70.85
.24
.240
13.17
.21
57.03
.25
4.08
.09
11.20
.29
3.15
.78
2
5
Waiting
26
Thread cut
27
28
29
30
31
32
33
34
35
36
37
38
39
40
.
41
42
line
Sewing
line
Sewing
line
Sewing
line
Arm hole Sewing
top stitch
line
Waiting
Sewing
line
Thread cut
Sewing
line
Waiting
Sewing
line
Side seam
Sewing
line
Waiting
Sewing
line
Thread cut
Sewing
line
Waiting
Sewing
line
Sleeve
Sewing
close tack
line
Waiting
Sewing
line
Thread cut
Sewing
line
Waiting
Sewing
line
Chap tack
Sewing
line
Waiting
Sewing
line
Blind
Sewing
bottom hem line
Sewing
Waiting
line
.24
.50
.500
.500
.48
.96
.96
.52
.52
1.350
.367
.148
.373
.330
.450
15.30
.26
19.10
.45
1.40
.38
.367
9.50
.15
3.00
.37
3.43
.33
7.89
.44
7.98
.373
43
Thread cut
44
Waiting
45
Back neck
piping top
stitch
Waiting
46
4
7
4
8
4
9
Thread cut
Waiting for
quality
check
Quality
check
Sewing
line
Sewing
line
Sewing
line
.20
.203
Sewing
line
9.34
Sewing
line
QC
table
.19
QC
table
.203
.290
.187
.187
.30
.300
.300
Total
32
10.400
4.493
13.23
.29
5.20
= 65000 BDT
Proportion for value added activity =
(95000/160000)*100% = 59.38%
Proportion for non-value added activity =
(65000/160000)*100% = 40.63%
Wastage: 40.63% time or 40.63% labor is wasted for non
value added activity.
It is clear from the discussed session that through value stream mapping current state of
production floor can be changed in a more balanced and organized state which we are calling
future state mapping. By reducing total cycle time of worker through eliminating unnecessary
operations or jobs, total amount of production can be increased. For the studied style cycle time
for current state mapping is 10.400 minute The reduction of time can be done by eliminating the
non-value added jobs or activities. In this case number of worker is also reduced to a number of
19 from total number of 32.
The comparison is stated in TABLE 2.
Parameter
Total
Cycle
Time 10.400
(Minutes)
Labor (In Number) 32
Cost (BDT)
160000
5.907
Non-Value
Activity
4.493
19
95000
13
65000
Added
If we consider the cycle time, labor amount and wages in percentages than from above
calculation it is comprehensible that non-value added activity is covering a good proportion of
share for the following cases. Non-value added activity requires 43.20% time of total cycle time
where value added activity contributes 56.79% of time. Same thing happens for labor, value
added activity requires 59.38% of labor where 40.63% of labor is wasted through non-value
added activity.
Table 3 shows comparison for more elastration.
Topic
Cycle Time
Labor
Cost
56.79
59.38
59.38
Fig.8 shows the proportion of value added activities to the non-value added activities of sewing
section.
6. CONCLUSION
Industrial administrative position holders constantly trying to enlarge their profit revenue and
end customers or consumers are trying to get product with better quality and lower price. In this
vice-versa situation value stream mapping can be most efficient and constructive tool to
implement in organizations. VSM is defined as a influential tool that not only highlights process
in efficiencies, transactional and communication mismatches but also guides about the
improvements. From this study, it is apparent that by VSM in an apparel industries sewing floor,
labor amount as well as production time can be reduced easily which is cost effective for sewing
section. A Value Stream Mapping is a preliminary point for improvement projects in which an
overview is created of the lead time, processing time and recovery time. Findings of this research
can be important and helpful to other similar apparel industries of Bangladesh, those who expect
for better production with quality. Further study may be carried out with-in the other sections of
apparel industries.
7. REFERENCES
Alves, T., Tommelein, I. D., & Ballard, G. (2005). Value stream mapping for make-to-order products
in a job shop environment. Construction Research Congress.
Arbulu, R. J., & Tommelein, I. D. (2002). Value stream analysis of construction supply chains: case
study on pipe supports used in power plants. In Proc. Tenth Annual Conference of the International
Group for Lean Construction (pp. 183-195).
Ballard, G. (2001, August). Cycle time reduction in home building. In-Proceedings of the 9th Annual
Conference of the International Group for lean construction.
Bashford, H. H., Sawhney, A., Walsh, K. D., & Kot, K. (2003). Implications of even flow production
methodology for US housing industry. Journal of Construction Engineering and Management,
129(3), 330-337.
Bowers Jr, G. H. (1990). Continuous flow manufacturing. Semiconductor Manufacturing Science
Symposium, 1990. ISMSS 1990. IEEE/SEMI International (pp. 5-8). IEEE.
Fontanini, P. S., & Picchi, F. A. (2004). Value stream macro mappinga case study of aluminum
windows for construction supply chain. In Twelfth Conference of the International Group for Lean
Construction (IGLC 12) 576-587.
Galvan, J. L. (2006). A Guide for Students of the Social and Behavioral Sciences. Pyrczak
Publishing.
Hines, P., & Rich, N. (1997). The seven value stream mapping tools. International
Journal of Operations & Production Management, 17(1), 46-64.