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Original Date: 10/10/2005
Revision Date: / /
Information : Value Stream Mapping
Value Stream Mapping is a lean tool Raytheon’s Integrated Air Defense Center in Andover has used successfully to understand the flow and control of materials from incoming raw material to finished goods. Since Raytheon has implemented Value Stream Mapping, the company has realized a smooth manufacturing process and cycle time reduction and has significantly increased quality and reduced waste. Since Value Stream Mapping allows insight into the decision-making flow in addition to the process flow, it is an effective lean manufacturing tool.
Value Stream Mapping (VSM) is a paper-and-pencil tool that helps to understand the flow of material and information as a product or service makes its way through the value stream. Raytheon’s Andover Integrated Air Defense Center (IADC) is using VSM as a lean manufacturing methodology that first maps the process, then above it map the information flow that enables the process to occur. VSM differs from the process mapping of Six Sigma in four ways:
It gathers and displays a far broader range of information than a typical process map
It tends to be at a higher level than many process maps
It tends to be used at a broader level, from receiving of raw material to delivery of finished goods.
It tends to be used to identify where to focus future projects, sub-projects, and/or Kaizen events
Raytheon began implementing VSM as part of their processes in 2004. Prior to VSM lean implementation, plans were casual and lacked a systemic approach. Individual processes were optimized, but system improvements were not always realized and a clear road map was not identified. After implementing VSM, the Raytheon Six Sigma™ (R6 s ) Team generated a future state value stream map that prioritized the actions, which resulted in the greatest system improvements. An improvement plan was generated and communicated to all team members and sponsors. A pull system now links customer consumption with internal and external suppliers. Baseline and target matrices are recorded and performance to the target is monitored to ensure achievement goals.
VSM takes into account not only the activity of the product, but also the management and information systems that support the basic process. VSM is one of the lean tools Raytheon uses that positions Operations in long-term solutions in integration.
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