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Lesson 313 of IEKC Industrial Engineering ONLINE Course Notes
The origin of the VSM chart is the following statement of Taiichi Ohno.
The origin of the VSM chart is the following statement of Taiichi Ohno.
"What is Toyota doing now?" I asked.
His (Ohno's) answer was very simple.
"All we are doing is looking at the time line," he said, "from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the nonvalue-added wastes."
Material and information chart was used by TPS executives to compare current and planned system. That chart was renamed as VSM.
Source. Publisher's foreword.
Toyota Production System Beyond Large-Scale Production, Taiichi Ohno, Foreword by Norman Bodek.
Productivity, Inc., 1988 Translation.
The First Book on VSM
Learning to See: Value Stream Mapping to Add Value and Eliminate Muda
Mike Rother, John ShookLean Enterprise Institute, 01-Jan-2003 - Business & Economics - 102 pages
In 1998 John teamed with Mike Rother of the University of Michigan to write down Toyota's mapping methodology for the first time in Learning to See. This simple tool makes it possible for you to see through the clutter of a complex plant. You'll soon be able to identify all of the processing steps along the path from raw materials to finished goods for each product and all of the information flows going back from the customer through the plant and upstream to suppliers. With this knowledge in hand it is much easier to envision a "future state" for each product family in which wasteful actions are eliminated and production can be pulled smoothly ahead by the customer.
Much more important, these simple maps - often drawn on scrap paper - showed where steps could be eliminated, flows smoothed, and pull systems introduced in order to create a truly lean value stream for each product family.
In plain language and with detailed drawings, this workbook explains everything you will need to know to create accurate current-state and future- state maps for each of your product families and then to turn the current state into the future state rapidly and sustainably.
In Learning to See 2003 edition you will find:
An introduction by Mike Rother and John Shook describing how they discovered the mapping tool in their study of Toyota.
Guidance on identifying your product families.
A detailed explanation of how to draw a current-state map.
A practice case permitting you to draw a current-state map on your own.
A detailed explanation of how to draw a future-state map.
Advice on breaking implementation into easy steps.
An explanation of how to use the yearly value stream plan to guide each product family through successive future states.
More than 50,000 copies of Learning to See have been sold in the past two years. Readers from across the world report that value stream mapping has been an invaluable tool to start their lean transformation and to make the best use of kaizen events.
http://books.google.co.in/books/about/Learning_to_See.html?id=mrNIH6Oo87wC
What are the origin's of Value Steam Mapping?
Baudin' Explanation - http://michelbaudin.com/2013/10/25/where-do-value-stream-maps-come-from/
Origin in Toyota’s Operations Management Consulting Division (OMCD)
Materials and Information Flow diagram was developed at Toyota’s Operations Management Consulting Division (OMCD), for selective use with suppliers — that is, wherever the main issue is with flows of materials and information related to these flows.
The OMCD, whose Japanese name actually means “Production Investigation Division” (生産調査部). is a group of 55 to 65 high-level TPS experts.
The technique was brought to the US by the Toyota Supplier Support Center (TSSC).
According to John Shook, Materials and Information flow diagrams were created by Toyota’s OMCD group. They were introduced to the U.S. by TSSC,
Jim Womack and Dan Jones introduced the concept of “value stream” and in Lean Thinking told readers to map them. While the book had an example and descriptions, the process wasn’t laid out. At that time, Mike Rother had just become very interested in Toyota’s M&I flow mapping so John introduced him to Jim Womack and Dan Jones.
Mike was the lead author (John Shook is co-author) of the workbook Learning to See and developed the mapping workshop. Dan Jones came up with the title Learning to See. Jim Womack and Dan Jones coined the term “value stream” and “value-stream mapping.”
John Shook said it was and still is used by the select group of TPS experts, mostly in the OMCD organization. (I think it is now Operations Management and Development Division.) So, the tool came to LEI in a roundabout way from TSSC.
”John (Shook), has known about the “tool” for over ten years, but never thought of it as important in its own right. It is used by Toyota Production System practitioners to depict current and future, or “ideal” states in the process of developing implementation plans to install lean systems. At Toyota, while the phrase ‘value stream’ is rarely heard, infinite attention is given to establishing flow, eliminating waste, and adding value.”
Materials and Information Flow Analysis at TSSC
TSSC still teaches Materials and Information Flow analysis.
http://www.tssc.com/kaizenleader1.asp#Material_&_Information_Flow:
“Material & Information Flow: day in classroom designed to develop the skill to document the current condition and locate the process bottleneck. 1 day shop floor focused on grasping the current condition and finding the bottleneck in an actual shop floor setting. Length: 1.5 days”
Microlevel versus Macro Level
Ohba says that one should start at the micro level — machines, cells, workstations, tooling, fixtures, operator job design, etc. — not at the macro level — lines, departments, suppliers, customers, etc. His reasoning is that you need to develop skills before you can address macro level issues. And he is saying that you should not start with VSM because it is a macro level tool. What Ohno does not say in his presentation is how you find out where in the plant you should start at the micro level. To me, an appropriate pilot project must meet the following conditions:
It must provide an opportunity for tangible, short-term performance improvements.
Both management and the work force in charge of the target process must be willing and able.
The target process must have at least one more year of economic life.
To identify such opportunities, you need to observe operations directly, interact with operators, managers and engineers, and analyze data. VSM is one of the tools that are useful in doing this, but it is not the only one, and it is not always needed.
One week of process kaizen and one week of system kaizen. During that week we used MIFD. Later on they started using it more and more in the plants only when needed.”
The “Value Stream Mapping” Label
“Materials and Information Flow” accurately describes what the technique is about, and is almost self-explanatory.
According to Gary Stewart, a 23-years Toyota veteran:
“The VSM process was known internally simply as “process mapping” – (or occasionally later as MIFD – but that was more specific to OMCD ) – it is only one of a suite of tools that should be used together to understand the process from high level to great detail. I think today the term VSM and the use by consultants of the term VSM is more of creating a branding difference in both Marketing and Consulting. In Marketing “process mapping” does not sound very sexy – But with Value Stream Mapping – you have a major brand differentiator.
Unquestionably, Jim Womack is an outstanding marketer. “Process Mapping,” “Materials and Information Flow Analysis,” are all terms that, at best, appeal to engineers. Any phrase with “value” in it, on the other hand, resonates with executives and MBAs.
Art Smalley’s perspective on VSM
“Value stream mapping, for instance, is perhaps the most widely used tool in lean programs today.
A third dimension, human motion, is often added to the mix for consideration as well at Toyota. As TPS evolved internally and was rolled out to supplier companies externally a consistent problem was insufficient investigation into the details of material flow, information flow, and human motion in the process. It became a requirement for engineers and others in charge of manufacturing processes and line conversion work at suppliers to make maps.
The emphasis was to draw both detailed standardized work charts depicting operator motion, and flow charts depicting material storage locations, scheduling points, and operator work sequence before the start of production. In other cases, this tool was used externally to find ways to convert lines to more efficient ones.
The key point is that the tool was created to analyze and solve a specific category of problems Toyota faced in new production lines and in helping suppliers implement lean. From this fairly specific local origin in Toyota, the tool was slightly modified (the human motion emphasis was reduced) and popularized in the U.S. by my good friend and former Toyota colleague John Shook, and his co-author Mike Rother, in their insightful, best selling workbook “Learning to See”.
The book is about learning to see what is primarily a material and information flow problem, or essentially elements of the JIT pillar of Toyota’s production system (flow, takt time, level, and pull production).
By design it doesn’t even attempt to address the topic of Jidoka for example which Toyota considers an equally if not more important support pillar than JIT or equipment stability. The technique used in the workbook simply measures the overall manufacturing lead-time versus production value add time. Everything non-value adding (i.e. the waste) is to be eliminated and answering seven specific questions outlined in the workbook will help you accomplish some of this goal.
Overall, however, when the 4M’s of manufacturing (man, machine, material, and method) are considered you’ll realize that this tool mainly considers the material (and information) flow component. The other 3M’s are much less emphasized and one other important M – metrics – is expressed chiefly in terms of lead-time and value-add time.
This is fine for Toyota. Internally they well know the limits of the tool and understood that the it was never intended as the best way to see and analyze every waste or every problem related to quality, downtime, personnel development, cross training related issues, capacity bottlenecks, or anything to do with profits, safety, metrics or morale, etc.
No one tool can do all of that. For surfacing these issues other tools are much more widely and effectively used. Unfortunately, the average user of the workbook tends to copy the pattern expressed in value stream mapping regardless of the nature of their manufacturing problems.
The unintended consequence of the success of the method has been to convince many people that it is a universal tool for identifying all problems in manufacturing operations.
This guidance however biases companies with major quality, downtime, or factor productivity problems to deemphasize them since those items are not surfaced well using the method and questions outlined in value stream mapping. The tool just does not frame these problems well by design. Couple this effect with the fact that most lean efforts already have a disproportionate bias towards the concept of “flow”, and there is a recipe for inherent danger.
For example instead of learning to see what is truly broken in their processes companies wind up typically focusing on a particular subset of operational problems chiefly that of flow and lead-time related issues.”
John Shook in VSM Misunderstandings - http://www.lean.org/library/shook_on_vsm_misunderstandings.pdf
Seeing the Whole Value Stream, 2nd Ed.
Jim Womack, Dan Jones
Lean Enterprise Institute, 2011 - Business & Economics - 108 pages
When the first edition of Seeing the Whole was published in 2003, the world was in a mad rush to outsource and offshore in pursuit of suppliers with drastically lower piece prices. Today the situation is very different; currencies have shifted, labor costs in many low-wage countries have risen, and the potential for squeezing further price reductions from suppliers is largely exhausted. What’s more, high product quality and rapid response to changing customer demands have proved elusive along unwieldy, opaque supply chains.
Seeing the Whole Value Stream provides managers with a proven method for understanding and improving the value-creating process that suppliers share with customers. By identifying all the steps and time required to move a typical product from raw materials to finished goods, the authors show that nearly 90 percent of the actions and 99.9 percent of the time required for the supply chain's current state create no value. In addition, the method clearly shows demand amplification of orders as they travel up the supply chain, steadily growing quality problems, and steadily deteriorating shipping performance at every point up stream from the customer.
Applying the method to a realistic example, the authors show how four firms sharing a value stream can create a win-win-win-win future in which everyone, including the end consumer, can be better off.
The workbook goes step-by-step through an improvement process that converts the traditional supply chain of isolated, compartmentalized operations into an ideal future-state value stream in which value flows from raw materials to customer in just 6 percent of the time previously needed. The dramatically improved value stream also eliminates unnecessary transport links, inventories, and handoffs, the key drivers of hidden connectivity costs.
The information in the 108-page book is supported by multiple diagrams, charts, and maps. The main sections of the book are:
Getting Started
The Current-State Map
The Extended Value Stream
Future States 1 & 2
Ideal State
Perspectives on Extended Value Streams: 5 essays
In response to feedback asking for examples in other sectors and questions about how to understand supply chain costs more accurately, five essays have been added to the book for this new edition. These essays demonstrate how real companies have taken on the challenge of improving their extended value streams working in collaboration with their suppliers and customers.
The new essays for the book are:
Spreading value-stream thinking from manufacturers to final customers through service providers—extending the wiper example. This extends the value-stream analysis in the first edition—using the same example of a windshield wiper—through the auto service system to the end customer.
Applying extended value-stream thinking to retail—a look at the Tesco story. This follows the path of an individual product through a complex retail channel from manufacturer to end customer.
Learning to use value-stream thinking collaboratively with suppliers and customers. This essay demonstrates how a second-tier supplier convinced much larger partners to embrace collaborative thinking about their shared value stream.
Product costing in value-stream analysis. An essay on adding realistic costing to value streams to more accurately understand total cost.
Seeing and configuring the global value stream. This essays shows how a manufacturer can analyze all of the value streams in a complex supply network.
Preview the book: https://books.google.co.in/books?id=llLhQ93jKyYC
Seeing the Whole Value Stream
https://www.slideshare.net/LeanUK/seeing-the-whole-value-stream
Lean and the Extended Value Stream
How does lean manufacturing apply to the entire supply chain? This presentation talks about the application of lean to the entire value stream. Presentation by EMS Consulting Group, Inc. www.emsstrategies.com
https://www.slideshare.net/darrendolce/lean-and-the-extended-value-stream?next_slideshow=1
Applications
8 SIMPLE STEPS TO IMPLEMENT VALUE STREAM MAPPING (VSM)
OLANAB CONSULTS
Shahrukh Irani
Enhancing Value Stream Mapping for Manufacturing, ISE Magazine April 2021 Volume: 53 Number: 4
By Shahrukh A. Irani
Using Value Stream Mapping to Improve Forging Process - M.Sc. thesis (MIT)
http://alvarestech.com/temp/capp/AppleFoxconnEstrategiaManufaturaValueStreamMapsProcessMaps/%5BArticle%5D%20Using%20Value%20Stream%20Mapping%20(VSM)%20to%20Improve%20Forging%20Processes_By%20Stephen%20G.%20King_2004_(Scan).pdf
2013 - Karen Martin - Value Stream Mapping - One Hour Video Presentation
She wrote a book on VSM
_______________
https://www.youtube.com/watch?v=5YJYMLaV9Uw
_______________
Blog articles on VSM
Ud. 11.4.2022, 29.1.2022, 8.11.2021, 23 June 2021
30.10.2013
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