Value Stream Analysis

Excel templates and charts, with online training and videos

to Measure, Analyze, Improve, and Control your Value Stream

The biggest strength of your Systems2win Value Stream Mapping template is Value Stream Analysis

If your organization has not already provided a license, download your free trial now

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Before you begin

Value Stream Analysis

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contents-table

Value Stream Analysis Training

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symbols

Value Stream Analysis

The Eye Catchers

Value Stream Mapping Symbols

What catches most people's attention when they first view a value stream map are the value stream mapping symbols, which have been called "the language of Lean", and are so important that we have devoted an entire training page to them.

charts

Charts

The next thing to catch attention are the Charts.

Your Systems2win Value Stream Mapping template comes with 5 pre-defined charts.

Lead Time Chart

Process Lead Time within your Critical Path processes are in green.

Queue time between your Critical Path processes are in blue.

If you elected to include your Pre or Post Production processes, they are on the ends — in red.

Tip: When you click the button to 'Add or Remove Columns', this chart gets automatically re-created.

(Try doing THAT with a home grown template)

Activity Ratio Pie Chart

Activity Ratio = Total Processing Time divided by Total Lead Time

(adjusted for Unit of Measure Conversions and Work Time Available)

This is an often embarrassingly small number that vividly shows how much room there is for improvement.

Tip: You can use the dropdown list to choose whether to chart Activity Ratio or % Value Add, which includes only Value Add activities, and is therefore an even more embarrassingly small ratio.

Work Balancing Chart

The Effective Cycle Time for each process on your Critical Path had better be lower than your Takt Time

or you won't meet your production schedule.

Tip: If a process has Change Over Time and/or Productivity Loss,

then this is a stacked bar chart — showing those components of total Effective Cycle Time.

Process Capacity Chart

The Capacity for each process on your Critical Path had better be higher than Demand or you will have some unsatisfied customers.

Cost Chart

Shows bars for both: Cost, and Cumulative Cost.

Supply Chain Charts

Special charts and metrics for Quality Screen, Delivery Screen, and Demand Amplification Screen.

Learn more about Supply Chain Mapping

sum

The Time Sum Line

If you have ever before used any value stream map, then your eye should naturally drift down near the bottom of the map, (above the charts), where you will find the Value Stream Totals, also known as the Time Sum Line, or "the castle wall".

If a value stream map has only 3 "bottom line" calculations, they should be these 3:

1. Lead Time
2. Process Time
3. Cycle Time

You will find training for these foundational lean metrics in our Lean Glossary.

And notice that you can also easily hide or unhide additional rows of 'bottom line' metrics for Cost, Steps, and more...

all without programming. You simply unhide the rows that you need.

andons

Andons

Most people don't notice the Andons until they are analyzing their own real-world value stream map

when they notice, "Hmm... why is that number bold red???"

"Wait a second... that process capacity won't meet demand. Or that Cycle time won't meet takt time.
Or we're utilizing our people more hours than we plan to schedule them to work."

"Wow... that was helpful. In fact, those are some of the very most important factors of value stream analysis, and it sure it nice that my Systems2win template makes it difficult to embarrass myself by missing such an important oversight..."

Tip: In the small white cells just to the left of Process Capacity and Utilization, you can enter your own user-defined thresholds for how close to the edge you want to get before your value stream mapping andons turn bold red to alert you to problems.

compare

Side-by-Side Comparisons

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simultaneous

Value Stream Analysis

The Layers

Simultaneous Processes

critical

Value Stream Map

Critical Path Processes

If your value stream has multiple streams of simultaneous processes, then you will soon come to appreciate the Systems2win innovation to

always keep all critical path processes in the Critical Path tier

The benefits of this convention are enormous

1. Your critical path is extremely obvious
2. Math is a whole lot easier to follow and validate
3. Math mistakes due to a confusing critical path flow are greatly reduced
4. Math for dead ends in Simultaneous Processes are handled correctly

   Lead Time already only considers Critical Path.
   Process Time, VA, and Steps should always consider dead ends.
   Cycle Time for dead end processes can be easily excluded by simply overriding.

The compromise of this convention

In some rare circumstances, the longest cycle time or lead time might be first in one sub-stream and then another.

The proper way to handle this is to always display the critical path process in the Critical Path tier, even if that means that you need to show the physical flow using:

1. arrows between layers
2. sub-captions just below the Process Boxes - to indicate physical location where the process is performed

Tip: Andons will turn italic red in the bottom Time Sum Line if Lead Time for any Simultaneous Process has larger values than the Critical Path process.

pre-production

Pre and Post-Production Processes

See our online training for several optional ways to handle segments of your value stream map.

One powerful option is use your 'Hide/Show Rows' button to unhide the optional tiers of processes for Pre and Post Production.

drill

Drill-downs and Roll-ups

The final 'layer' of a value stream map exists 'off the map'.

One of the most powerful features of your Systems2win templates is the ability to easily link to (and roll up data from) related documents.

 

For example, you might drill down to and roll up data from a Swim Lane Functional Flowchart that has far more detail than would be appropriate for a value stream map.

 

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leadership

Value Stream

Leadership

On your Sample sheet, if you click the 'Hide/Show Rows' button to Show All Rows,

you will see the following sample data.

You can optionally hide the Leadership section,but if your goal is to Measure, Analyze, Improve, and Control your value stream (not just draw it) then you will probably find this section very useful.

Use the dropdown lists for each process to select your answers to the questions:

The conditional formatting will turn the correct color even if your change the words for your own user-defined codes as long as your dropdown choices start with:

0 for Red

1 or 2 for Yellow

3 for Green

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uom

Value Stream Analysis

Demand and Capacity

Different units of measure for different processes

It's impossible to have a conversation about Demand and Capacity without first answering the question:

"for what?"

Demand for what? Capacity for what?

What is it that you are delivering to your customer?

2. Demand per Week

   Even if your forecasts use some other time period, you enter Demand per Week but then notice that if you use your button to 'Change Lead Time Unit of Measure', then the next row calculates Demand per your currently-selected Lead Time Unit of Measure, allowing you to switch at any time between working days, calendar days, weeks, or hours

Between the rows for Demand UOM and Demand per Week, notice the row for 'Process Unit of Measure'

If a Process within your value stream uses a different unit of measure, then in the column for that process, you can optionally enter the Ratio, and (in the cell to the right) enter the Unit of Measure.

For example Task 2 is making 4 Wheels per Go Cart.

Notice that all the math for that entire Process is now in "Wheels", rather than "Go Carts"

which is a really good thing, because you can be sure that the person working on that process is not thinking in terms of "How many Go Carts worth of Wheels do I need to make today?"

Andons

In Task 2, notice that some data is bold red — to alert you that there is a problem with your plan.

If Capacity is less than Demand, you have a problem.

If Cycle Time is greater than Takt Time, you have a problem.

If Utilization of your people greater than Work Time Available, you have a problem.

If you see bold red Andons, then you need to Stabilize your process so that it is capable of meeting your customer demand.

Value Stream Capacity

Value Stream Totals for:

• Smallest Possible Staff
• Total Capacity of your entire Value Stream

  taking into consideration what if scenarios — like "what if this bottleneck process works overtime?"

• and more Key Performance Indicators that might be important to YOUR value stream

  (or perhaps another value stream coming soon to your future)

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LT

Value Stream Analysis

Within and Between Processes

Lead Time — When can we have it?

The Lead Time Chart

makes it very easy to see that Lead Time consists of:

the sum of Process Lead Times (time within a process)

+ the sum of Queue Times (time between processes)

and you can optionally choose whether to include or exclude Pre and Post-production processes from your lead time analysis. Learn more

The Lead Time Unit of Measure Converter

allows you to click the 'Change Lead Time UOM' button at any time to switch between:

Three ways to calculate lead time

In your Systems2win Value Stream Mapping template v15.1 R180214 or higher, there are 3 ways to calculate lead time.

1. You can enter an override value in the Lead Time Override field.

In the cell just to the LEFT of the 'Between Processes' column,

(in other words, it the same column below the primary process...)

2. Lead Time - Takt Calc

   In the column just to the RIGHT of the process, enter the amount of Standard WIP Inventory that is usually found both WITHIN that process, and immediately AFTER it

   Lead Time Takt Calc = Std WIP * Takt Time

   In other words, how long does this stuff usually stay there at the rate that the customer buys it?

3. Process Lead Time

   If you don't enter data for either Override or Inventory WIP, then Lead Time will equal Process Lead Time.

   In other words, how long does it take to make a batch of this stuff, and then immediately pass it to the next operation? (assuming zero queue time between processes)

Process Lead Time

Time WITHIN each process

Unless you override it, Process Lead Time is calculated as

Cycle Time * Pitch Pulse Batch Size

Why would you override Process Lead Time?

If 'the thing' continues to be transformed in a way that does not involve the operator...

(perhaps drying, curing, growing, fermenting...)

then you can override Process Lead Time

Queue Time

Time BETWEEN processes

Distance

Distance Within a process is usually measured in feet or meters.

Distance Between a process is usually measured in miles or kilometers.

All default units of measure are defined in the pink cells in the headers for the Critical Path.

Steps

A "step" happens anytime that the thing being transformed could be handed off, in either:

1) sub-steps WITHIN each process
2) transportation or delays BETWEEN each process

currency

Cost

Currency button

Your Systems2win value stream mapping template has a special button that makes it exceptionally easy to instantly convert every currency cell in your value stream map to a new currency.

 

Cost Chart

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productivity

Value Stream Analysis

Critical Path Deep Dive

One huge benefit of the Systems2win convention of keeping all Critical Path processes in the same tier

is that this makes it far easier for you to use everything you know about familiar Microsoft Excel

to write your own user-defined formulas for ANY Key Performance Indicators that are critical to the success of YOUR value stream

AND... it makes it far easier for you to use your pocket calculator to validate and trust the (extensive) calculations that we have already programmed for you.

Critical Path Analysis calculations that you might never be able to program for yourself, such as...

Productivity

Download your free trial now, and put it through your paces.

% Complete and Accurate (Rework)

Percent Complete and Accurate is the flip side of Rework.

In other words, if a process has 3% Rework, it has 97% Complete and Accurate.

Lean Manufacturing tends to prefer to use Rework;
Lean Office and Service tend to prefer % Complete and Accurate.

Your Systems2win template provides both calculations.

Cumulative Scrap

Scrap doesn't just affect one process.

Every upstream process needs to produce enough to keep feeding the downstream process enough to meet ultimate customer demand.

Your Systems2win value stream mapping template calculates the effects of Cumulative Scrap correctly.

Guaranteed Turnaround Time

What is the longest time that your customer will ever wait for any product variation within the product family produced by your value stream?

Use the special features in your Sytems2win Value Stream Mapping template to calculate Guaranteed Turnaround Time

Optimum Batch Size

If Change Overs are an important consideration affecting the flow of your value stream, then the change over optimization calculations in your Systems2win Value Stream Map can easily justify a very fast Return on your entire Investment.

Download ROI Calculator

Path Codes and Scenarios

You should NEVER show multiple scenarios on an "As Is" value stream map, but it is rather common to show multiple scenarios on a single "Future State" map.

See our online training to choose between multiple ways to depict multiple scenarios on a single map with Path Codes and Scenarios as the most powerful and popular option.

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Value Stream Analysis

Anything Else

User-Defined Fields and Metrics

Remember, your Systems2win Value Stream Mapping template is an Excel template.

You're not wasting your time learning yet another new software program...

You are becoming a more and more expert user of the single most popular software in the world of business...

Microsoft Excel

And (of course) your Systems2win value stream mapping template has special features to make it even easier to leverage your Excel skills beyond what you might have thought was possible.

Learn more about user fields

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Return to home training page for how to do value stream mapping