Page 437 - The Toyota Way Fieldbook

410 THE TOYOTA WAY FIELDBOOK

Value Stream Model Line Approach
You now know many things you should not do, but what should you do? Like
Goldilocks and the three bears, some approaches are too narrow and specific
(e.g., process, hot jobs, tools approaches) and others are too big and grandiose
(like the Company X production system). We believe the value stream model
line is just right for most organizations. What do we mean by this?
While hot jobs and processes are scattered across various points in the
organization, value streams cut across the organization from raw materials to
the customer. Lean is a value stream philosophy: Start with what the customer
values and eliminate waste in the value stream. So why not focus on building
lean value streams, since tools come together to create systems at that level?
Value stream mapping, described in Chapter 3, is a core tool for envisioning
your lean value streams. It starts with a current state map, which provides a pic-
ture of the current situation. Waste becomes apparent, but in this approach any
process kaizen to fix problems in the current state is strongly discouraged. The
value stream map is not intended to determine a set of point kaizen activities.
Rather, the current state is the starting point in developing a lean future state
vision—a holistic picture of connected flows. Ideally, a cross-functional leader-
ship team led by a “value stream manager” or other high-level manager creates
the current state and achieves consensus on the lean future state. Action is driv-
en by project plans to achieve the future state.
The action plans are straightforward Gantt charts. But we strongly advise that
actions be organized around material and information flow loops. An example
3
of a future-state map divided into loops is shown in Figure 19-5. In this case
three loops are shown:
1. Pacesetter Loop. This loop is closest to the customer, and it paces all
upstream operations. It is also the one schedule point in the plant. In this
case, the leveled schedule is sent to Process 3 but then it flows through—
first in, first out—without a break in the sequence to the finished goods
supermarket. The pace of Process 3 then establishes the pace of pull from the
intermediate goods supermarket, which pulls from Process 1, which pulls
from the supplier.
2. Intermediate Process Loop. This processes supplies materials and replen-
ishes the supermarket that holds products for its customer—the Pacesetter
Loop.
3. Supplier Loop. This includes the supplier of raw materials, and the
replenishment loop to keep the supplied parts supermarket stocked with
materials.

Mike Rother and John Shook. Learning to See (version 1.3). Cambridge, Massachusetts: Lean
3
Enterprise Institute, 2003.