How to Map Value Streams in the real world?

Over the years we have heard many questions about Value Stream Mapping from people who are new to VSM as well those who have used VSM before.
Questions like these are not uncommon...
Where to begin mapping the Value Stream?
How many Value Stream Maps should be created to begin Lean implementation?
What about overlapping Value Streams?
How to handle parallel Value Streams?
How much information should be captured on the Value Stream Maps?

We will try to address the above questions in the next few posts.

In this post we would like to address the reason for the above questions. The primary reason for VSM questions is the way most people think. In Lean thinking, Value is defined by the customer and it flows across multiple functions. The focus of VSM is to capture the flow of material and information across the functions by actually walking the stream. Additional information like process and wait time along with information about the person working at the process step is also captured on the Value Stream Map. Overall lead time can also be calculated and displayed on the map.

Most of the confusion around VSM is because people think about process maps or about the function/department they work in.
This is because most organizations still think about department efficiency or process steps. Value Stream Mapping crosses multiple functions in the organization.

The steps to map Value Streams is explained in the article How to Map Value Streams?on our website.

Becoming lean without reducing mura

In the last post we covered the importance of balancing muri and mura to remove muda (waste) in the process. But what do you do when mura or unevenness in production cannot be controlled?

We often hear manufacturers say that production volumes change everyday sometimes every hour as the customer demand is constantly changing. In today's world the business has to do what the customer wants or be prepared to face consequences of lost sales, lost customer etc.
Most customers today demand what they need when they need it. Businesses that can cater to this need survive.
So how does the business remain lean inspite of these flucutations in production volume?

The business can be ready for such fluctuations by accounting for it beforehand. The manufacturer can plan for this by taking 3 simple steps...
1. Carry a small finished goods inventory to satisfy the customer demand in case the demand suddenly rises. The question becomes how much? Carry enough inventory to allow production to run smoothly without stressing the plant people and equipment. Carrying too much inventory is a form of waste and not recommended in a lean system. Too much inventory will hide problems and tie up cash in form of product cost, floor space occupied to store the product etc.

2. Plan for producing quantities that do not push the plant over limits. This will allow the plant to pace production so that the total cycle time is met. Process steps can be run below takt time to meet customer demand.

3. Leadership should think ahead with the foresightedness of planning for leveling the production load so that customer demand is met.

Do you experience irregularities in production? How do you manage such production irregularities and being lean at the same time?
Write to us at info@sybeq.com about your experiences and challenges in your lean journey.