Operations Management 24.11.20
Value stream mapping
Value stream mapping and waste
o Value stream mapping is a technique that popular with the lean operations movement
o 3 lean wastes:
Muda:
- Any wasteful activity
- 2 types of Muda:
1. The waste that can’t be easily eliminated
2. The waste that can easily be removed with Kaizen
Mura:
- Variability in the load placed on production
- The waste caused by the variability in the demand and the variability introduced by
the production planning and distribution scheduling activities
Muri:
- The waste of overburden
- Place high order and have to work overtime, that is an overproduction which should
be avoided
- The waste of overtime that is used to meet the peak loads on our production system or
the waste of the excess capacity used to try to avoid the overtime
Key questions to ask from your value stream map
1. What is your strategic objective?
- Are you trying to minimise inventory, production, capacity, overtime, and rush
transportation orders or a combination of some/all of these costs?
2. What is your pacemaker process?
3. How often should you create a production plan?
4. What forecasting method should you use?
5. Which replenishment algorithm should you use?
6. What is the optimal sequence of production within the planning cycle?
7. How are you going to place orders on your supplier for raw materials and components?
8. What information should you pass to your suppliers to help them plan their activities?
, Operations Management 24.11.20
Value stream mapping to identify your Mura and Muri
Example value stream map
Customers
Suppliers
Way to
Information
flow visualise
material flow
and gives
information
about supply
and material
flow
Material flow
within the
- company
Use MRP system to create weekly schedules, which are manually sent to production
processes
- I Triangles = inventory
- Production steps with information below
- Give supplier a forecast
- Information flow in middle
- Material flow at bottom
- Allows us to visualise material flow and information such as lead time
Value stream mapping
Value stream mapping and waste
o Value stream mapping is a technique that popular with the lean operations movement
o 3 lean wastes:
Muda:
- Any wasteful activity
- 2 types of Muda:
1. The waste that can’t be easily eliminated
2. The waste that can easily be removed with Kaizen
Mura:
- Variability in the load placed on production
- The waste caused by the variability in the demand and the variability introduced by
the production planning and distribution scheduling activities
Muri:
- The waste of overburden
- Place high order and have to work overtime, that is an overproduction which should
be avoided
- The waste of overtime that is used to meet the peak loads on our production system or
the waste of the excess capacity used to try to avoid the overtime
Key questions to ask from your value stream map
1. What is your strategic objective?
- Are you trying to minimise inventory, production, capacity, overtime, and rush
transportation orders or a combination of some/all of these costs?
2. What is your pacemaker process?
3. How often should you create a production plan?
4. What forecasting method should you use?
5. Which replenishment algorithm should you use?
6. What is the optimal sequence of production within the planning cycle?
7. How are you going to place orders on your supplier for raw materials and components?
8. What information should you pass to your suppliers to help them plan their activities?
, Operations Management 24.11.20
Value stream mapping to identify your Mura and Muri
Example value stream map
Customers
Suppliers
Way to
Information
flow visualise
material flow
and gives
information
about supply
and material
flow
Material flow
within the
- company
Use MRP system to create weekly schedules, which are manually sent to production
processes
- I Triangles = inventory
- Production steps with information below
- Give supplier a forecast
- Information flow in middle
- Material flow at bottom
- Allows us to visualise material flow and information such as lead time
