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Value stream mapping and lean simulation: a case study in automotive

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Article in The International Journal of Advanced Manufacturing Technology · July 2016

DOI: 10.1007/s00170-015-7972-7

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 Value stream mapping and lean simulation: a case
study in automotive company
Andrade, P. F.; Pereira, V. G.; Del Conte, E. G.
Universidade Federal do ABC, Santo André, Brasil. Centro de Engenharia, Modelagem e Ciências Sociais Aplicadas - CECS

Abstract This work aims at applying the concepts of Value The construction of VSM consists of drawing the current
Stream Mapping (VSM) in an auto-parts company in the ABC state Value Stream Mapping (VSM). This is the state that
region of Sao Paulo. By mapping the current state of art, it reflects the reality of the process under review. Based on the
was possible to identify the waste present in an assembly line current state VSM, the Future Value Stream Mapping is
of clutch discs. The future state was suggested with designed, which introduces the new production flow reducing
improvements for elimination of waste and reduction of lead waste through the application of lean tools [4].
time, which went from 60.5 days to 4.14 days. Simulations For the analysis of a VSM, it is necessary to think statically
were made using current and future states to support the in terms of time, which is a limitation of the VSM since it is a
suggested improvements, and reduction of 7% in total static image of value stream, and just the most obvious
production time was verified, as well as 10% increase in the changes are suggested. An alternative that may assist in the
use of work positions. The results showed that VSM combined analysis of a VSM is the simulation of the resources actually
with simulation is a good alternative in the decision-making used in the process [5].
for change in production process. For Anand and Kodali [6] simulate is to perform
experiments with models of a real system. Simulation is
Keywords: Value Stream Mapping; Lean Production; Waste;
Simulation. performed by entering the information obtained in VSM in
simulation software. The integration of VSM with the
I. INTRODUCTION simulation is advantageous because it adds time dynamics to
Due to economic, political and social changes over the VSM and assists in making decisions regarding changes in a
years in the global economic market, organizations are forced production process.
to become more competitive due to the increased level of The objective of this paper is to apply concepts of VSM to
customers demand. Within such scenario, companies an auto-parts company and simulate the current and future
experience the need for improvement in its production state of a clutch disc assembly cell.
processes, in order to provide high quality products at For this, there was an initial review of literature regarding
affordable prices and on time. To this end, managers’ concerns lean manufacturing and waste concepts, in addition to the
in reducing waste are growing. types of losses that occur in a production process. Concepts
One way to achieve reduction of waste is by using the about the value chain and steps for conducting a VSM were
Value Stream Mapping (VSM) tool, which is defined by Liker also raised.
[1] as a map that captures the material and information flow, Later, a case study was performed in an assembly line of a
which helps identify losses in the system. multinational company in the auto-parts sector. That case
As per Rother and Shook [2], VSM is an easy study sought to identify and examine production flows
understanding tool which allows simultaneous representation existing in the assembly line and apply tools and techniques of
of the information and materials flow. VSM seeks to identify lean production in order to reduce waste.
and eliminate waste in a factory or production line in order to To identify sources of waste, the current state of the
serve customers with higher quality and promptness. assembly line value stream was mapped and analyzed. From
So the main purpose of this tool is to reduce time between such analysis, improvements using lean manufacturing tools
placement of order by customer and the time of delivery of the have been suggested and used for mapping the future value
product [3]. stream state.
To achieve this goal, VSM analyzes factors such as Seeking to prove and quantify the benefits gained from
information flow, delivery time, personnel, inventory and such improvements, a simulation model for each VSM state
material flow, as these impact each other during the was suggested and their results were compared.
production process. The impact that these factors generate is The next section comprises a literature review, which
difficult to define without analysis throughout the value defines concepts and tools used. The development and
stream. presentation of the case study is described in the third section,

1
followed by the analysis of results. Finally, the last section understand the flow of material and information to the extent
provides conclusions regarding this work. that the product follows its flow [2].

II. LITERATURE REVIEW B. Value stream mapping

According to Womack & Jones [7] waste is any human
activity which absorbs resources without creating value. For For Belokar et al. [10] VSM is used for analyzing and
organizations to aim at preventing and eliminating waste in the mapping processes to reduce waste, allowing better flow of
production process, it is necessary for them to identify the production. The purpose of VSM is to highlight the sources of
value chain of their products. waste and eliminate them through the implementation of
future state mapping. The goal is building a production chain
in which individual processes are connected to their
A. Value chain customers, either by continuous or pulled streaming, and each
process produces only what customers need and when they
The definition of Shank and Govindarajan [8] says that the need.
value chain for any company, in any business, is the To determine the percentage of added value it is necessary
interconnected set of all activities that create value, from a to calculate the processing time, which is the sum of the cycle
basic source of raw materials, through component suppliers, times of all operations in a production process, and these are
until handing over the final product to consumers. the operations that really add value to the product. After
The identification of this chain for each family of products determining it, just divide it by the lead time to find the
is one of the main steps of lean production as it greatly percentage of added value.
contributes to expose large and amazing amounts of waste. Lead time, according to the VSM theory, is determined by
The analysis of the value chain often shows that there are three the sum of processing time with the sum of the times that
types of action along its length [7]: intermediate stocks are standing still in the production line.
1. Many steps certainly add value; These times are calculated by multiplying the takt time of
process by the number of items in the intermediate stock [4].
2. Many other steps do not add value, but are inevitable;
Figure 2 shows an example for calculating the percentage
3. Many additional steps do not create value and should be considering a takt time of 50 seconds per piece.
promptly avoided.
Figure 1 illustrates these activities, proportionately showing
Process 1 Process 2
where each activity fits in. For example, unnecessary activities
represent approximately ¼ of the activities involved in the
8640 Items x 50 864 Items x 50 3456 Items x 50
production process and are seen as a loss, while works that No value added 5 days 12 h 2 days
Standstill time: 7.5 days

really add value represent a small portion of the whole. Some Value added 20 s 20 s Processing time: 65 s

of these activities cannot be completely eliminated, but can be

improved, thus lowering the percentage loss. Processing time 65 s
Percentage of added value 0.0001%
Lead-time 7.5 days + 65 s
Completely unnecessary for
accomplishment of works
Net Examples: Figure 2: Example for calculating the percentage of added value.
work - Handling time
Loss - Unnecessary transport
- Storage of in-process materials By applying lean tools, it is possible to eliminate waste of
- Change of material or tools from one
hand to the other
the current state and draw a future state with lean processes.
- Transportation of materials to places Percentage of added value is the indicator used to compare the
other than final destination
No added value, but it
must be done because
current and future states.
Work with no Movement of workers
of the current work
added value Works with added value
conditions.
C. Simulation
Examples:
- Walk from one place to another in order to get material
- Removal of purchased parts from packages
- Removal of a small amount of parts from a large box
- Equipment activation
Simulation is a resource that is widely used in various
segments, and particularly engineering, the application of this
resource has been growing in recent years. Generically, this
Figure 1: Understanding the manufacturing function [9]. can be defined as a model that mimics real activity [11, 12].
In the opinion of Freitas Filho [13] simulation helps test
Such addition of value or not is defined by means of hypotheses by evaluating the various possible scenarios
activities that effectively transform or not the product in a way without modifications in the real system. This becomes
that the customer is willing to pay. Value Stream Mapping, by advantageous since changes may involve costs and time.
encompassing the entire value chain, helps identify and

2
 Decision to use the simulation on certain projects is current state and then to analyze the impact of improvements
justified based on the following factors [13]: suggested before the implementation of future state.
• Gains in productivity from development of projects by
means of simulation;
• Amount of information enough to make it possible to III. VSM DEVELOPMENT
perform a simulation analysis of various scenarios; The case study was conducted in a branch of a
• Possibility of using animations during the simulation multinational in the auto-parts industry located in the ABC
process, in order to facilitate visualization of what is being region of Sao Paulo, and aimed at applying VSM to review its
modeled; mounting process of clutch discs, so as to identify waste and
• Simulated model behaves similarly to the real system. have a better control of productivity.
Thus, simulation can help an organization to consider In the assembly line of clutch discs, about 20,000 discs are
techniques of lean production, acting as a complementary tool assembled, on a monthly basis. It counts on approximately 150
for value stream mapping and thus being able to quantify products and such products bear from 30 to 40 components
gains during the initial planning and evaluation stages, also each in its assembly. This shows that the line used in the case
being able to identify needs for resources and generate study requires high flexibility and minimum waste to meet
performance statistics, while remaining flexible to the demand, which justifies the application of VSM.
organization's details [14]. The family of products used in the study was family 13 that,
In some cases, the future state map can be assessed in a despite showing only 3.8% of the monthly demand, was
relative ease way, but in others, there may be some difficulty. chosen because it has a complex flow of production, with a lot
In such cases, you can use simulation to further analyze data. of processes accomplished and a large number of components
An example where this may be observed is the prediction of used for assembly.
inventory levels through the production process, which is not Within family 13, clutch disc alfa was the model chosen for
possible with just a map of the future state, because a static data collection on the shop floor. This choice is due to the fact
model does not allow assessing how stock levels will be that this model is one of the major demands of remanufactured
affected to various production scenarios with different discs.
parameters [15, 12]. The production flow for manufacturing disc alfa was
By using simulation, it is possible to measure collected, as well as cycle times of each operation, the number
improvements in performance, which may be anticipated from of employees in each position and inventories of components
the application of principles of streaming lean manufacturing, required to assemble the model. Thus, generating the VSM of
setup reduction, total preventive maintenance, just-in-time current state shown in Figure 3.
inventory and leveled production scheduling [16].
Some authors like Rajentirakumar et al. [17], Donatelli and
Harris [14] use VSM and simulation as mutual complement.
Lian and Landeghem [18] suggest a method for deploying
extended VSM by means of simulation, where the simulated
model is fed with information on the current and future states
of VSM, initially to validate modeling in relation to the

3
 Figure 3: Current status of stream 13.
Current State of Stream 13

External Supplier Sales – Monthly

(Buy) Planning Auto-parts and
Automobile Manufacturer
Markets
Internal Supplier
(Do) PCP
Daily Planning

Multiplier

Stock
Shipment

pieces
Manual positioning Trim + Trim Join 2 parts and Final Assembly Riveting Buckling and
Packing
of Rivets spring clinch and Pressing Axial Runout
457 pieces
pieces pieces pieces pieces pieces pieces

F 7514 pieces

G 332 pieces

B 79920 pieces
pieces pieces
pieces pieces
pieces

Trim + pieces
Reinforcement pieces
pieces disc
pieces
pieces
pieces

D 1473 pieces

pieces
pieces

Production Lead
days days day days days days days days Time = 60.5 days

seconds seconds seconds seconds seconds seconds seconds

4
 The first point of improvement observed was the number of pressing (operation E) are above the takt time of process and
components required for mounting disc alfa. To assemble 427 may be considered as processes to be improved in the line.
discs of the monthly demand for model alfa, components
presented in Table 1 are required. It shows the amount of each Table 2 - Cycle times of stream 13 in seconds (s).
component to mount a single disc and to meet demand, in
addition to quantities available in stock for each component.

Final Assembly and Pressing

Manual positioning of Rivets

Trim + Reinforcement Disc

Buckling and Axial Runout

Join 2 parts and clinch
Trim + Trim spring
Table 1 - List of components required.

Packing
Riveting
Component Amount per Amount for Available
Unit demand
Trim
Trim rivet
Stream 13
Trim spring Total Cycle
Reinforcement disc
Takt time of Process
Tubular Rivet
Torsion Spring
Torsion Disc
Solid Rivet
Locking Ring
Hub Flange

Time (s)
Spring Washer Cycle
Snap Ring
Friction Collar
Takt Time of Process
Hub
Spacer
Washer
Smaller Spring Washer
Operations

It was observed that there were no amounts enough of

Figure 4: Chart of stream 13 cycle times.
components such as the Trim Spring, Tubular Rivet, Torsion
Disc, Solid Rivet, Hub Flange, Friction Ring and Hub to meet
In operation Trim + Reinforcement Disc, a manual riveter is
the demand of 427 discs model alfa. Other components were
used. Below the current state mapping is the timeline, which
in amounts much higher than those required, for example,
bears the processing time of each operation and the number of
Spring Washer, with 5313 items of that component in the line
days for each intermediate stock. Total processing time is 308
and only 427 being necessary to carry out the production. This
seconds, and lead time of 60.5 days, so the percentage of
scenario shows that there is no effective control on the supply
added value of the assembly line in current state is 0.006%.
of components and that demand would not be met since it was
To improve percentage of added value in production line, a
not possible to produce a single disc alfa.
future state has been suggested (see Figure 5), where we may
In the current state information flow, multiplier is the one
find some improvements made to the assembly line.
which informs what will be produced to employees after
receiving the daily Production Control and Planning (PCP),
i.e., it says what will be produced and the amounts to be
produced.
From data collected, takt time and takt time of process were
calculated, resulting in 61 and 44 seconds per piece,
respectively. The cycle time of each operation is shown in
Table 2, with takt time and takt time of process. From this
table, it was possible to draw the chart in Figure 4, in which
we are able to observe that operations regarding manual
positioning of rivets (operation A) and final assembly and

5
 Figure 5: Future State of Stream 13.
Future State of Stream 13
Sales – Monthly
Planning Auto-parts and
Automobile Manufacturer
Markets

External Supplier
(Buy)
PCP
Daily Planning

Shipment

Trim + Trim spring

Internal Supplier Manual positioning Max. Amount Join 2 parts and Final Assembly Buckling and Axial
+ Reinforcement Riveting Packing
(Do) of Rivets clinch (press) and Pressing Runout
disc
A 120 pieces
Min. Amount
Max. Amount

Min. Amount
B 4320pieces pieces pieces
pieces pieces
pieces
pieces
pieces pieces
pieces pieces

42s for trim + trim spring

30s for trim + Reinforcement disc pieces
pieces

pieces
pieces

Production Lead
day day day day days Time = 4.14 days
days
Processing Time =
seconds seconds seconds seconds seconds seconds seconds 264 seconds
6
 To remove the manual riveter from assembly line, it has assembly and pressing (operation E), which are above the
been suggested that the press used for Trim + Trim Spring takt time of process, but operation E has two permanent
operation must also perform the Trim + Reinforcement Disc workers in place, which reduces by half the processing time
operation in future state. As both operations supply the of this position. So the bottleneck is only in the first
operation for Joining 2 Parts and Clinching, it is necessary position, with 45 seconds. From this number, it is possible
to create two buffers, one for each operation, in order to to calculate the total production time, as shown in Equation
provide enough pieces to the joining operation. By means of 1. Since operation C, junction of trim and reinforcement
testing performed in line, it is possible to define buffers disc is independent from operation B, they can be made at
would have a maximum of 6 components and a minimum of the same time, and only the longest processing time between
3, in addition to compliance with FIFO. two operations should be counted. Thus, calculation is made
As per Figure 4, the cycle times of operations A and E are considering the time of operation A - positioning rivets - to
above the takt time of process. Operation E has two 427 pieces, and then adding the processing time for the last
operators to offset its high cycle time. Thus, to reduce piece to reach to operation H - packaging:
operation A cycle time, it has been suggested that, in future
state, the operator that used manual riveter in the Trim + Equation 1: (427 pieces x 45 s) + 44 s + 38 s + 57 s / 2 +
Reinforcement disc operation would also carry out operation 25 s + 20 s = 19.370,5 s = 5 hours and 23 minutes
A, which would also count with 2 operators.
In the future state (see Figure 5), it is also possible to Simulation showed production time much closer to that
observe that information flow has also changed because calculated - 5 hours and 21 minutes - and only 5% lower
there is the availability of Heijunka board in the line, so as than the time communicated by the company for the
to take the multiplier responsibility to inform which item production under study, validating the simulation model.
and which amounts must be produced. So, operators are Figure 6 illustrates the simulation environment of current
independent to begin production of the planned item. state.
Supermarkets are also present in future state, one for
internal and external suppliers of the line and another at the
end of the line, so that shipment pulls the discs being
required. With kanbans, it is possible to inform the previous
process that the customer has pulled an item.
With the supermarket in suppliers, it is ensured that the
line will only have the necessary components and quantities
required for production, as can be seen in future state.
To work with supermarket at the end of the line, the
production lot for disc alfa has been set at 60 parts. With
this amount, the line is going to carry out 7 times the
Figure 6: Simulation of current state.
production of that batch during the month. In the
supermarket, 2 batches of 60 pieces will be available to be
used for shipment. When a batch is removed from the line, IV. RESULTS AND DISCUSSION
the production of a new batch may be used for
replenishment.
According to statistics generated by the simulation
With all the improvements made in future state, the
program, it was possible to draw charts for visualization of
assembly line of discs will have a processing time of 264
results about the current VSM. Figure 7 shows the
seconds and lead time of 4.14 days. Thus, the percentage of
percentage of use of work positions, where one can see that
added value will increase to 0.074%.
stations A, C and H are never filled, because such stations
Simulation was done in a simplified manner, because of
have infinite capacity, being able to store both endless raw
the complexity of the production line under study, especially
materials and products already processed - stations A and C,
considering processing times at each position. Thus, the
as they are places where raw materials come in and station
study focused on the decreased time of production, in order
H where products come out. The most used position is the
to use the available manpower in the best possible way.
Final assembly and pressing station, with 96.16% of use
For better analysis of data, only the amounts of raw
because of the largest processing time among stations.
materials required for the production of 427 clutch discs
were used.
According to the company, the production of 427 clutch
discs was made in about 5 hours and 40 minutes. And
according to the obtained data, calculations were made
using processing times of each position. The bottleneck of
the process, as previously mentioned, is the operations for
manual positioning of rivets (operation A) and final

7
 % Utilization in the Current State With the changes, it is possible to estimate the new
production time, which considers half of the operation A
A - Manual positioning of Rivets
processing time due to the extra operator in the new
B - Trim and Trim spring
scenario. Thus, the bottleneck time turns to the second
D - Join 2 parts and clinch position - operation B - with 42 seconds. By calculating just
C - Trim and Reinforcement Disc as the current state, we have Equation 2:
E - Final Assembly and Pressing
F - Riveting
Equation 2: 45 s / 2 + (427 pieces x 42 s) + 38 s + 57 s / 2 + 25 s + 20 s =
G - Buckling and Axial Runout
18.068 s = 5 hours and 2 minutes
H - Packing

The screen capture of future state is shown in Figure 9,

with its simulated processing time. As in the Current VSM,
Figure 7: Chart depicting utilization of positions in the current the time given by the software is close to the calculated
state. value, with 4 hours and 59 minutes of production, thereby
decreasing the total production time by approximately 7%.
Figure 8 shows the use of available resources, the eight
workers who work in the line. In the current state, the most
used worker is worker 1, responsible for Manual positioning
of rivets, current bottleneck of production, with 9.07%
utilization. Worker 7 responsible for Trim and
Reinforcement Disc is the one with the lowest percentage of
use.

% Utilization in the Current State

Figure 9: Simulation of future state.

From the charts generated with the new outputs of

ProModel®, it is possible to see an improvement in the
percentage of utilization of positions. Figure 10 shows the
best use of position B. The new work position now uses
Operator 1

Operator 2

Operator 3

Operator 4

Operator 5

Operator 6

Operator 7

Operator 8

approximately 99% of its capacity, reducing loss by

idleness.

% Utilization in the Future State

Figure 8: Chart depicting utilization of resources in the current
state
Manual positioning of Rivets

Trim and Trim spring

With the simulation results, the suggested future state
now has arguments to be applied. The way found to reduce Join 2 parts and clinch

production time would be decreasing processing time of Final Assembly and Pressing

some operations, using the available resources. Due to the Riveting

similarity of operation B, junction of trim and trim spring Buckling and Axial Runout

with operation C, junction of trim with reinforcement disc, Packing

the connection of both operations has been suggested, due to
the high percentage of time with the C position only
partially occupied, as observed in the simulation. With only
one position responsible for these two operations, the Figure 10: Chart depicting utilization of work positions in the
future state
production of these two products would be switched, and the
available capacity of such position would be used in a better
In addition, as in current state, a chart to analyze the use
way.
of resources has been generated (see Figure 11). As
Operator 7, responsible for the extinguished position,
mentioned above, operator 7 started working in the first
would work to reinforce position A, where there was the
position, now being called operator 1.2, sharing the work
biggest bottleneck of the process, thus, reducing the
with operator 1.1, and reducing the use of operator 1.1, but
processing time of that position, and consequently reducing
decreasing the processing time of that position. Operator 2
the production time of 427 clutch discs.
now works harder, alternating between two operations that
are now made at position B.

8
 improvements suggested have been simulated, in order to
% Utilization of Resources in the Future State
check for feasibility of such changes.
The future state suggested decreased by 7% of the total
production time of 427 pieces in the simulation, only with
the relocation of an operator and joint of two work
positions.
The action plan suggested is advantageous according to
the application of Lean tools, kanban, supermarket and
especially the Value Stream Mapping along with the
simulation of the developed model.
Operator 1

Operator 2

Operator 3

Operator 4

Operator 5

Operator 6

Operator 7

Operator 8
We suggested the use of pull production with strict
control over the raw materials inventory with Kanban, the
production would be made in batches of 60 pieces, reducing
Figure 11: Chart depicting utilization of resources in the future the inventory cost of the final product.
state

With the suggested changes, there was a 10% increase in ACKNOWLEDGEMENT

the use of work positions and reduction of 7% in total Special thanks are due Dr. Guilherme Canuto da Silva
production time of 427 clutch discs - from 5 hours and 21 and Dr. Leonardo Ribeiro Rodrigues.
minutes to 4 hours and 59 minutes.
For purposes of comparison, we used the same amount of
pieces for production, however, the proposal is to use the REFERENCES
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