1st Edition

Value Stream Mapping for the Process Industries Creating a Roadmap for Lean Transformation

By Peter L. King, Jennifer S. King Copyright 2015
    248 Pages 100 B/W Illustrations
    by Productivity Press

    224 Pages
    by Productivity Press

    Providing a framework that highlights waste and its negative effects on process performance, value stream maps (VSMs) are essential components for successful Lean initiatives. While the conventional VSM format has the basic structure to effectively describe process operations, it must be adapted and expanded to serve its purpose in the process industry.

    This book describes in detail how to create a complete VSM for a process industry manufacturing operation. Detailing the unique features of process operations and why they require additions and adjustments to traditional VSMs, the book walks readers through the steps in analyzing the map. It explains how to scope improvement projects, prioritize them, and then use future state VSMs to illustrate and motivate systemic improvement. In doing so, it supplies readers with a roadmap for a complete Lean transformation.

    • Describes how to analyze the map for waste and flow issues so that they can be reduced and even eliminated
    • Provides examples of the calculations needed for the flow parameters in data boxes
    • Explains how the VSM concept can be applied to the entire supply chain
    • Includes strategies for engaging your entire workforce in map creation

    The book introduces a target manufacturing process and uses it to describe how to create a complete VSM. The target process is complex enough to illustrate the issues often encountered in mapping a process industry operation, but straightforward enough to explain all of the mapping considerations and decisions.

    The book includes real examples of how VSMs brought much greater clarity to the real issues the processes faced and cases where the insight enabled management to avoid costly, inappropriate investments.

    The Value of Mapping
    A Focus on Flow Rather Than on Function

    Value Stream Mapping Fundamentals
    Introduction to Value Stream Mapping
    Material Flow
         Major Process Steps
         Data Boxes
         Process Box and Process Data Box
         Inventory Data Box
         Transportation Data Box
         Customers Data Box
         Supplier Data Box
    Material and Information Flow Icons
    Information Flow
    The Third VSM Component—The Timeline
    Parallel Equipment
    Level of Detail

    VSM Enhancements for Process Operations
    Distinguishing Features of Process Operations That Require a Different VSM Approach
    Capital Intensive vs. Labor Intensive
    Material Flow Patterns—SKU Fan Out
    Product Changeover Issues Are Complex
    Product Families—Selecting a Target Product or Family
    Takt Rate vs. Takt Time
    Units of Production
    Generating the Map
    Time Units
    Where to Begin

    Additional Good Mapping Practices
    Good VSM Practices
    Map Layout—Flow Direction
    Level of Detail
    Level of Precision
    Parallel Equipment
    Logical Flow vs. Geographic Arrangement
    Support Processes
    Computer Tools vs. Brown Paper
    Qualified Guidance and Coaching

    Our Focusing Problem—A Synthetic Fiber Process
    Process Overview
    Raw Materials
    Step 1: Polymerization
    Step 2: Fiber Spinning
    Step 3: Draw–Anneal
    Step 4: Cut—Bale
    Finished Product Storage and Shipping
    Order Processing and Production Scheduling
    The Synthetic Fiber Manufacturing VSM

    Developing the Material Flow

    Calculating Data Box Parameters
    Process Step Data Boxes
         Overall Equipment Effectiveness (OEE)
              Calculating Availability
              Calculating Performance
              Calculating Quality
              Calculating OEE
         Remaining Factors
         Another Example of OEE
    Supplier Data Boxes
    Customer Data Boxes
    Inventory Data Boxes
    Transportation Data Boxes

    Material Flow Rates and Takt
    Calculating Takt
    Rope Takt in Gaylords
    Annealed Product Takt
    Filament Takt
    Flake, Spinning, and Polymer Takt
    Raw Material Takt

    Completing the Data Boxes: Utilization, Delivery Frequency, and Days of Supply
    Transportation Frequency
    Inventory Days of Supply

    Mapping the Information Flow
    Why Map Information Flow?
    Fiber Manufacturing Information Flow
    Capacity Constraint Resources
    Additional Information Mapping Tools

    Developing the Timeline
    Timeline Principles
    Fiber VSM Timeline
    Cash Flow Cycle Time

    Finding the Waste—Analyzing the Map
    General Impressions from the Current State
    Inventory Opportunities
    Baler Reliability
    Spinning Yield
    Long Campaign Cycles (EPEIs)
    Hot Roll Draw–Anneal
    Uncoordinated Scheduling
    Capturing Potential Opportunities

    Scoping the Opportunities
    Inventory Opportunities
         1. Raw Material Inventory in Rail Cars Is Too High
         2. Flake Inventory Is High
         3. Filament Inventory Is High
         4. Rope Finished Product Inventory in Gaylords Is Too High
         5. Right Size the Cutter Box Inventory
         6. Bale Finished Product Inventory Is Too High
    Equipment Opportunities
         7. Spinning Changeover Losses Are High; Spinning Utilization Is High
         8. Baler Reliability Is Poor
         9. Changeover Improvement—Balers
         10. Reduce the Baler Campaign Cycle (EPEI)
         11. Mothball One Baler
         12. Hot Roll Draw–Anneal Reliability and Yield Wastes
         13. Mothball One Polymer Reactor
    System-Wide Opportunities
         14. Implement Virtual Cellular Flow
         15. Filament Tub FIFOs after Implementation of Virtual Cells
         16. Implement Pull Replenishment across the Value Stream
         17. Drop the 60 Very Low Demand SKUs

    Implementation Strategy and Sequence
    Strategy for Implementation of Improvements
    Riverside Fiber Plant Future States
    Future State Generation 1
    Future State Generation 2
    Future State Generation 3

    Future State Value Stream Maps
    Why a Future State VSM?
    Future State 1 Map
    Future State 2 Map
    Future State 3 Map

    Supply Chain Mapping
    Why a Supply Chain Map Is Important
    Supply Chain Wastes
    Effects of Wastes at the Supply Chain Level
    Supply Chain Map Components
    Future State Supply Chain Map
    Supply Chain Map Example

    VSM as a Way of Engaging Employees
    Origin of the Problem
    A New Paradigm on the Role of Labor
    The Nature of Engagement

    A Roadmap for Continuous Improvement

    Benefits of Developing a VSM
    Operations That Have Benefitted from Using a VSM
    Processing of Large Rolls in a Sheet Goods Plant
    Bottling Salad Dressing
    Cooling Towers in Polyethylene Production
    Producing Waxes for Coating Cardboard Boxes
    Improving a Capital Project Execution System

    Appendix A: Process Industry Characteristics
    Characteristics That Distinguish the Process Industries
         Equipment Is Large and Difficult to Relocate
         Processes Are Difficult to Stop and Restart
         Capital Intensive vs. Labor Intensive
         Hidden WIP
         Product Differentiation Points

    Appendix B: SMED Principles
    SMED Origins
    SMED Concepts
    Product Changeovers in the Process Industries

    Appendix C: Cellular Flow
    Typical Process Plant Equipment Configurations
    Cellular Manufacturing Applied to Process Lines

    Appendix D: Pull Replenishment Systems
    Why Is Pull Important?
    What Is Pull?
    Pull in Assembly
    Difficulties in Process Plants
    Push–Pull Interface
    Visual Signals
    When to Start Pulling: The Sequence of Implementation
    Value Stream Focus
    Showing Pull on a Value Stream Map

    Appendix E: Cycle Stock and Safety Stock
    Cycle Stock and Safety Stock
    Calculating Cycle Stock
         Fixed Interval Replenishment Model
         Fixed Quantity Replenishment Model
    Safety Stock
         Variability in Demand
         Variability in Lead Time
         Combined Variability
    Example—Cut–Bale 2 Safety Stock

    Appendix F: Product Wheels
    Introduction to Product Wheels
    Product Wheels Defined
    Benefits of Product Wheels
    Product Wheel Applicability
    Process Improvement Time

    Appendix G: Additional Reading


    Peter L. King, Jennifer S. King

    Value Stream Mapping has become a key tool for implementing Lean thinking and positive change across our business. This book describes, in detail, the process by which Pete King has helped many organizations like ours to delight customers and relentlessly drive out waste. A must-read for any executive wanting to facilitate a transformation journey within the process industries.
    —Steve Anderson, Global Vice President of Supply, Afton Chemical

    Pete King has developed an international reputation as a leading authority on the subject of Lean in the process industries. In this book, he superbly condenses his decades of practical experience into a clear and highly effective guide. From diagnosing the major wastes and inhibitors to flow, to designing and executing a roadmap, Pete offers everything required to deliver true operational excellence from Value Stream Mapping.
    —Pete Wright, Managing Director & Principal Consultant, Pico Consulting Ltd.

    A must-read for practitioners and consultants alike. So far, Lean initiatives in the process industry have been handicapped by the fact that all good books on Value Stream Mapping refer to discrete manufacturing. Food, pharma, and chemical processes are, by their nature, different and need an adapted approach. Peter King’s deep, hands-on experience provides the process industry with a state-of-the-art toolkit to eliminate waste and reach breakthrough performance.
    —Hans van Oosteren, Managing Partner, Improvium

    The book is very practical in its organization: for each theoretical step, King includes real-world examples. More than a book on VSM, it offers us a meaningful and complete discussion about process industry productivity. As he explains the different parts of the map, King skillfully guides us through various practical approaches used to eliminate waste and create flow. It is remarkable how he managed to include so much knowledge and experience into a book that is so pleasant to read.
    —Henrique Fagundes, Operations Implementation Leader, McKinsey & Company

    Peter has based this book on his extensive experience, to create a clear guide which will be invaluable for both leaders and Lean professionals. The user will be able to use the VSM to identify waste and remove bottlenecks, following the real examples from both the discrete product and process industries. This is the first book I have read on the subject that goes into the required level of depth and detail to clearly demonstrate the path to a complete Lean transformation.
    —John Cockburn-Evans, Fellow, Institute of.Chem.E.; Certified Professional Coach; Senior Consultant & Lean Coach, DuPont Sustainable Solutions