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Breaking Implementation into Steps
A value stream map looks at the entire flow through your facility, as opposed to only individual processing areas,
and in most cases it will not possible to implement your entire future-state concept at once.  There is too much to
do!  So it is the value stream manager’s responsibility to break implementation into steps.
Perhaps the most important point about your future-state implementation plan is not to think of it as implementing
a series of techniques, but to envision it as a process of building a series of connected flows for a family of
products.  To help you do this, try to think about “value stream loops.”
Divide your future-state value stream map into segments or loops, as described below and shown at right:
The Pacemaker Loop:  The pacemaker loop encompasses the flow of material and information between your
customer and your pacemaker process.  This is the most downstream loop in your facility, and how you manage
this loop impacts all the upstream processes in that value stream.
Additional Loops:  Upstream of the pacemaker loop there are material-flow and information-flow loops between
pulls.  That is, each pull-system supermarket in your value stream usually corresponds with the end of another
loop.
You can circle these loops on your future-state map, to help you see the flow segments that make up your value
stream.  These loops are an excellent way to break your future-state implementation effort into manageable pieces.
In the Acme Stamping future state map there are three loops -- pacemaker, stamping, and supplier -- shown on
page 110.  With these three loops in mind, Acme’s steering-bracket value stream manager can break
implementation into steps, by loop, which might look like page 112.
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Acme Future State Implementation Steps
Loop 1: Pacemaker loop
Objectives:
· 
develop continuous flow from weld through assembly (cell)
· 
kaizen work elements to reduce total cycle time to 168 seconds or less
· 
eliminate weld-fixture changeover time
· 
improve uptime on welder #2 to 100%
· 
develop pull system with finished-goods supermarket (eliminate schedules)
· 
develop material-handler routes between the supermarkets and the cell
Goals:
· 
only 2 days of finished goods inventory in supermarket
· 
no inventory between workstations
· 
operate the cell with 3 people (at current demand rate)
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Loop 2: Stamping loop
Objectives:
· 
establish pull system with stamped-parts supermarket (eliminate stamping schedule)
· 
reduce stamping batch sizes to 300 (LH) and 160 (RH)
· 
reduce stamping changeover time to less than 10 minutes
Goals:
· 
only 1 day of stamped-bracket inventory in supermarket
· 
batch sizes of 300 & 160 pieces between changeovers
Loop 3: Coil Supplier loop
Objectives:
· 
develop pull system with steel-coil supermarket
· 
introduce daily coil delivery
Goals:
· 
only 1.5 days of coil inventory in supermarket
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Page 110
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The Value Stream Plan
Your future state map shows where you want to go.  Now you need to create one more sheet:  a yearly value stream
plan.  This plan shows:
· 
exactly what you plan to do by when, step by step;
· 
measurable goals;
· 
clear checkpoints with real deadlines and named reviewer(s).
The first question that usually arises in planning implementation is, “In what order should we implement?” or
“Where do we start?”  We suggest you answer these questions by considering the loops in your future-state value
stream.
To pick a starting point you can look for loops:
· 
where the process is well-understood by your people;
· 
where the likelihood of success is high (to build momentum);
· 
where you can predict high bang for the buck (but beware, this sometimes leads you to areas that have many
major problems to be solved, which can lead to conflicts with the previous criteria).
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If you have highlighted loops on your future state map, you can number them in order of your implementation plan
(use a pencil, because plans do change!)  One effective strategy is to begin implementation in your downstream
“pacemaker” loop and steadily transition upstream. The pacemaker loop being closest to the final customer, acts as
the internal “customer” and controls demand in upstream loops. As the flow in the pacemaker becomes lean and
onsistent it will reveal upstream problems that need attention.  However, the “moving upstream” strategy does not
preclude simultaneously implementing your future state objectives in more than one loop of the value stream. For
example, we have frequently opted to begin working on batch-size reduction and pull in an upstream fabrication
loop while we are still fine-tuning continuous flow and introducing leveling in the downstream pacemaker loop.
Within a value-stream loop, a sequence that your value stream improvements may generally follow is one that
mirrors the key questions for future-state design listed on page 73.
Specifically, improvements to a loop often follow this pattern:
1.  Develop a continuous flow that operates based on takt time.
2.  Establish a pull system to control production.
3.  Introduce leveling.
4 Practice kaizen to continually eliminate waste, reduce batch sizes, shrink supermarkets, and extend the range of
continuous flow.
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Naturally you will find this sequence will vary from case to case and the distinction between the steps may blur to
the degree that they are really happening at the same time. Even so, it is beneficial for you to have this general
sequential model in your mind as you proceed, recognizing that these implementation objectives are building on
each other.
Why the implementation sequence listed above? First, continuous flow gives you the biggest bang for the buck in
terms of eliminating waste and shortening lead time. It’s also the simplest area to begin working on.  (Don’t set up
a pull system if you can create continuous flow.)
Continuous flow with minimum waste means eliminating overproduction, which then means that you must (and
can) standardize your work elements so that production is consistent and predictable to your takt time. You’ll then
need pull as a means of giving production instruction to the flow (and to kick off the entire production sequence
from the customer in the case of the pacemaker loop). Finally, you’ll need leveling to achieve a lean flow anytime
you have multiple products, simply because lack of leveling will mean that you are still batching your builds of
different products. Even if you produce only one product, you still need to level the production volume.
That leaves the last key question, “What process improvements will be necessary for the value stream to flow as
your future-state design specifies?” Successfully developing continuous flow, pull, and leveling will demand
varying levels of preparatory work. For example, before you can reach a high degree of levelization, you will have
to gain the ability to execute quick changeovers. Or, before you can expect your assembly cells to operate
effectively at takt time, you will need a high level of first-time-through capability and machine reliability.  Or your
order-entry process needs to be changed.
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Here is the source of another potential Catch-22:  Which comes first, these preparatory process improvements or
introducing continuous flow, pull, and leveling improvements? Certainly, they both need to move hand-in-hand to
some degree. However, we have found that when in doubt, move forward on making flow improvements and let
those flow improvements drive the implementation of supporting process improvements. Otherwise, you can work
forever simply striving - and waiting - to attain a high level of process capability. Pitfall to avoid: don’t get stuck in
process improvement!
Once you have a sense for the basic order in which you want to implement the elements of your future-state vision,
the value stream manager needs to write them down as the yearly value stream plan. The format for the value
stream plan is shown with the Acme Stamping example on the next page. The plan will be familiar to you if you
have experience with policy deployment, or it may look like a variation of a Gantt chart.
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