Value Stream MappingValue stream mapping is a key method of implementing "lean manufacturing" to reduce waste and streamline both material and information flow. A value stream map identifies all the actions that take a product through the manufacturing process, from obtaining raw materials to delivering the final product. The idea is to draw, on one page, a "map" of the flow of material throughproduction and the flow of information from the customer back to each productionprocess and key supplier. Once the value stream is identified, steps are taken to optimize the manufacturing process by identifying waste. This adds value to your products and services that can easily set you apart from the competition. Value stream mapping is a low-tech, pencil-and-paper tool that enhances communication, business planning, and overall management. It's not just for the shop floor either–it can be applied to every part of the organizationThe first step is drawing a detailed picture of each part of your operation to produce a "current state map"–the situation as it exists today. The entire manufacturing process is mapped out, including cycle times, down times, in-process inventory, material moves, and information flow paths. The second step is identifying ways to improve your process flow that will eliminate waste and utilize time, talent, and equipment more efficiently. This invariably results in a better understanding of the entire manufacturing process. These improvements define the "future state map"–where you want to be in one month or a year from now. The third and final step is implementing the process improvements, which leads to reduction of work-in-process and production lead times, fewer defects, and faster responses to demand changes. Expect to get defective parts down by30%. Until you do a value stream map seven times on the same process, you aren't really lean. Value Stream Mapping Definitions Current State Map - Map of the situation as it exists today i.e. “the current state” and use it to identify sources of waste and the degree of (or more often the lack of) flow within the production system. Future State Map - Map that shows how value could flow in a very short period of time. Value - The reliable performance of a product at the lowest possible cost. Value is the relationship of function to cost. WEC 01/07 MET 345 1Value Stream - The specific activities required to design, order, and provide a specific product, from concept to launch, order to delivery, and raw materials into the hands of the customer. Value Stream Mapping (VSM) - Identification of all the specific activities occurring along a value stream for a product or product family. Value Stream Manager – Person responsible for creating a future state map andleading door-to-door implementation of the future state for a particular product family. Makes change happen across departmental and functional boundaries. Waste – Any activity that consumes resources but creates no value for the customer.Value Stream Mapping—A pencil-and-paper tool used: a) to follow a product or information (or both) activity path from beginning to end and draw a visual representation of every process (value and non-value) in the material and information flows. b) then to design a future state map which has waste removed and creates more flow and c) to end up with a detailed implementation plan for the future state.TOYOTA'S 14 MANAGEMENT PRINCIPLES OF LEAN MANUFACTURING*- 1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. - 2. Create continuous process flow. - 3. Use pull systems to avoid overproduction. - 4. Level out work load. - 5. Get quality right the first time. - 6. Standardization tasks are the foundation for continuous improvement and employee empowerment. - 7. Use visual controls, so no problems are hidden. - 8. Use only reliable, thoroughly tested technology that serves your people and process. - 9. Grow leaders who thoroughly understand the work done by your company. - 10. Develop exceptional people and teams who follow your company's philosophy. - 11. Respect your extended network of suppliers and partners by challenging them and helping them improve. - 12. Go see for yourself in order to understand the situation. - 13. Make decisions slowly by considering all options; implement them rapidly. - 14. Become a lean organization through relentless reflection and continuous improvement. WEC 01/07 MET 345