In today's competitive manufacturing environment, companies are constantly looking for ways to streamline processes, reduce waste, and optimize resource utilization. One effective strategy for achieving these goals is using digital value stream mapping. This advanced approach allows organizations to visualize and analyze workflows, identify bottlenecks, and implement changes to improve efficiency.
In this blog post, we’ll explore how Nancy Such, an experienced Lean Six Sigma Black Belt and continuous improvement leader, successfully launched a new product line by leveraging digital value stream mapping. Her method not only enabled smoother operations but also provided a robust framework for continuous process improvement.
The Evolution of Value Stream Mapping
Value stream mapping has evolved significantly over the years. Early tools included basic flowcharts, which outlined high-level activities without incorporating data. Later, manufacturers began using dry-erase boards to capture more detailed cycle times and station count data. Excel value stream maps followed, allowing for some calculations, but they proved challenging when managing complex processes.
Today, tools like electronic Value Stream Mapping (eVSM) software have transformed the way value stream maps are created and used. These digital maps offer greater flexibility, enabling manufacturers to capture precise details and run sophisticated analyses. With eVSM, companies can visualize their processes in real-time and simulate "What If" scenarios to make informed decisions quickly.
The Challenge: Launching a New Product Line
Nancy’s case study revolves around ACME End Caps, a manufacturing company that needed to launch a new product line while maintaining balanced operations. She based her case study on a real-world example, although of course, the names had to be changed to protect the innocent!
As with many new product launches, the initial process was hampered by undefined layouts, unknown work content, and unclear staffing requirements. With projected increases in demand, the leadership team needed a strategic approach to optimize resources and meet production targets.
Nancy’s solution? A digital value stream mapping workshop that integrated the entire cross-functional team to map out current processes and define future state workflows.
Implementing Digital Value Stream Maps
During the workshop, Nancy and her team began by creating a workshop profile, which included a clear definition of the problem, goals, deliverables, and team roles. They then used sticky notes to develop a traditional value stream map, capturing each function within the process. This preliminary map served as the foundation for building a digital value stream map using eVSM software.
The digital map provided several key benefits:
Enhanced Visibility: The team could view cycle times, setup times, and resource utilization in a single digital interface.
Improved Analysis: Digital maps enabled the team to run "What If" scenarios, allowing them to test various configurations and identify the optimal setup.
Better Communication: With a digital format, stakeholders could easily share the map, ensuring everyone was aligned on the current state and proposed changes.
Achieving Balance: A Case Study
With the digital value stream map in place, the team at ACME End Caps identified several areas for improvement. One critical finding was an imbalance in resource utilization. While operators were working at 77% capacity, finishers were significantly underutilized at only 14%. By reassigning finishing tasks to the operators and adjusting workloads, the team achieved a more balanced workflow, bringing operator utilization to 95%.
This reallocation not only improved productivity but also reduced unnecessary movement, decreasing travel distance by 185 feet for every 50 pieces produced. Such improvements translated into substantial cost savings and a more streamlined operation.
Sustaining Improvements: Standard Work and Control
Implementing changes is only half the battle—sustaining them requires a robust control plan. Nancy’s team created standard work instructions to outline new responsibilities and expected performance levels for each role. This documentation helped prevent process drift and ensured that the improvements made during the workshop were maintained long-term.
The final step was to develop a plan for ongoing monitoring and control, utilizing tools like visual management and metrics tracking to keep the team focused on continuous improvement.
The Impact: Significant Savings and Scalability
The results of this digital value stream mapping project were impressive. With these adjustments, ACME End Caps was able to save $38,000 annually during the initial phase and $192,000 per year once the full demand was realized. The changes led to a more balanced and efficient line that could easily scale up to meet increased demand.
Key Takeaways
Digital Value Stream Maps Are Powerful Tools: Transitioning from manual to digital maps allows for greater precision, faster analysis, and more effective communication
Balance Is Key: Analyzing resource utilization and reassigning tasks can significantly improve productivity and reduce costs.
Sustainability Requires Standardization: Documenting changes and creating standard work instructions are essential for maintaining process improvements.
Continuous Improvement Is a Team Effort: Engaging the entire team in workshops and using digital tools ensures that everyone is aligned and invested in achieving operational excellence.
By using digital value stream mapping, companies like ACME End Caps can make data-driven decisions that lead to lasting improvements. If you’re interested in exploring how digital value stream maps can transform your manufacturing processes, consider reaching out to experts like Nancy Such at Such Lean Solutions.
This blog post draws on insights from Nancy Such’s presentation, Launching a New Line and Achieving Balance With Digital Value Stream Maps. For more information or to contact Nancy, visit her LinkedIn profile. And if you’d like help with your own value stream, book a meeting here and we’ll work on it with you.