Integrating Value Stream Mapping and DMAIC Methodology : A Case Study at TitanX

Abstract: Value stream mapping (VSM) is a commonly used Lean tool which is appropriate when examining the current state of a process to identify improvement opportunities in the form of wastes. VSM can be helpful in identifying activities that do not create value for the customer which makes it possible to reduce the non-value adding activities and create a more efficient process. The use of the Six Sigma methodology DMAIC has for duringthe last decades increased substantially with the growing interest in Six Sigma. Despite the increased acceptance of the DMAIC methodology as a concept for improvement and the amount of research that has been undertaken on the implementation of VSM in various industries the literature on the integration between Lean tools such as VSM and the Six Sigma methodology DMAIC is scarce. Many authors argue that an important next step within the Lean Six Sigma research is to conduct practical studies verifying the effectiveness of the integration between DMAIC and Lean tools such as VSM. Therefore the purpose of the thesis was to study and illustrate how value stream mapping (VSM) can be executed in a structured manner according to the DMAIC methodology. A secondary purpose of the thesis was to, through the use of the "VSM-DMAIC approach", present and implement improvements in a production process. To fulfill the purpose literature was studied in order to find recommendations to how value stream mapping can be executed through the DMAIC methodology. The literature review resulted in six ways in which VSM could be integrated through DMAIC. In the case study one way to execute VSM through DMAIC methodology was studied since there was not enough time to examine all integrations. Therefore DMAIC methodology was used as the basis of the improvement project with VSM applied simultaneously in order to strengthen the DMAIC methodology. To study and illustrate the "VSM-DMAIC approach" a case study was conducted at TitanX in Linköping where the thesis work was a part of a bigger project to eliminate losses in the manual assembly. Throughout the case study the use of DMAIC methodology along with Six Sigma tools were supplemented by value stream mapping. The secondary purpose of the thesis work was to, through the use of the "VSM-DMAIC approach", present and implement improvements in a production process. The aim of the case study was to decrease blocking and starving with 10 % which is considered to be have been achieved since the proposed improvements results in reduced blocking and starving of approximately 30 % if implemented fully. The conclusions were that the VSM worked well through the DMAIC methodology. The VSM gives a wider perspective while Six Sigma tools allow a deeper understanding of the problem and its contributing factors. Although only one way in which DMAIC methodology can be implemented with VSM was studied and illustrated through the case study it was concluded that using DMAIC methodology as the basis with VSM implemented simultaneously provided a more visual picture of the problem, highlighting the importance of the problem compared to other problems in the flow.