supplier development project tools for supplier development inspiration for tools to be used in...

Supplier Development project

Tools for supplier development

Inspiration for tools to be used in workshops


Value stream mapping and the seven wastes


The five principles of Lean

1.1. Specify value from the customers’ perspective

2.2. Map the value stream to understand value and non-value added steps

3.3. Flow the work through the processes in the value stream

4.4. Schedule the work based on customer pull

5.5. Strive for perfection through continuous improvement and waste elimination


The seven types of waste

Overproduction Production of more and/or earlier than demanded by the customer.

Operator and/or equipment waits for materials and toolsWaiting

Unnecessary operator motion due to layout.Motion

Unnecessary processing to compensate for weaknesses other places, e.g. test and control.Processing

Inventory ties up capital, space and time and presents a risk of defect goods.Inventory

Unnecessary transportation due to poor layout.Transportation

Waste of time, resources and materials.Defects


IndustryWeek benchmark 25 quantile 50 quantile 75 quantile 90 quantileFinished-product first-pass yield 90% 95% 98% 99%

Scrap and rework cost as % of sales 5% 2% 1% 0.50%

Customer lead time, order to shipment 30 days 14 days 5 days 2 days

On-time delivery rate 90% 95% 98% 99%

Machine downtime (% of sched. uptime) 10% 5% 2% 1%Total inventory turns (per year) 4 8 14 26

Raw materials inventory turns 6 12 21 46Work-in-process inventory turns 6.5 13 33 90Finished goods inventory turns 6 12 25 60

Productivity (USD 1000 per employee) USD 108 USD 161 USD 266 USD 500

Benchmark data

Focus onown plant

Include the entirevalue chain


Value stream mapping method – step by step

Press Weld #1 Weld #2 Assembly 1 Assembly 2 Shipping

Korsørassemblyplant

Svendborg steel

Step 1: Processes in the value chain



O/T = 10 min

OP = 100%

C/T = 39 sec

O/T = 10 min

OP = 80%

C/T = 46 sec

O/T = Ø

OP = 100%

C/T = 62 sec

O/T = Ø

OP = 100%

C/T = 1 sec

OP = 85%

O/T = 1 hour

C/T = 40 sec

Press Weld #1 Weld #2 Assembly 1 Assembly 2 Shipping

1 1 1 1 1

Korsørassembly plant

Svendborg steel 18,400 units per month

-12,000 V-6,400 H

Boxes = 20 units2 shifts

Step 2: Data boxes for processes



Shipping

C/T = 1 sec

OP = 85%

O/T = 1 hour

Press

1

O/T = 10 min

OP = 100%

C/T = 39 sec

Weld #1

1

O/T = 10 min

OP = 80%

C/T = 46 sec

Weld #2

1

O/T = Ø

OP = 100%

C/T = 62 sec

Assembly 1

1

O/T = Ø

OP = 100%

C/T = 40 sec

Assembly 2

1



-12,000 V-6,400 H


Step 3: Transportation and inventories

2xweek

COIL

5 DAYS

L 4600 V2400 H

L

1100 V600 H

L

1600 V850 H

L

1200 V640 H

L

2700V1440 H

L

1xdaily



Shipping

C/T = 1 sec

OP = 85%

O/T = 1 hour

Press

1

O/T = 10 min

OP = 100%

C/T = 39 sec

Weld #1

1

O/T = 10 min

OP = 80%

C/T = 46 sec

Weld #2

1

O/T = Ø

OP = 100%

C/T = 62 sec

Assembly 1

1

O/T = Ø

OP = 100%

C/T = 40 sec

Assembly 2

1



-12,000 V-6,400 H


Step 4: Information flow

2xweek

COIL

5 DAYS

L 4600 V2400 H

L

1100 V600 H

L

1600 V850 H

L

1200 V640 H

L

2700 V1440 H

L

1xdaily

Productionmanagement

MRP

90/60/30-dayforecast

Dailyorders

6-weekforecast

Weekly fax

920 units per day

Week plan Dailyorders



Shipping

C/T = 1 sec

OP = 85%

O/T = 1 hour

Press

1

O/T = 10 min

OP = 100%

C/T = 39 sec

Weld #1

1

O/T = 10 min

OP = 80%

C/T = 46 sec

Weld #2

1

O/T = Ø

OP = 100%

C/T = 62 sec

Assembly 1

1

O/T = Ø

OP = 100%

C/T = 40 sec

Assembly 2

1



-12,000 V-6,400 H


Step 5: Lead time and value time

2xweek

COIL

5 DAYS

L 4600 V2400 H

L

1100 V600 H

L

1600 V850 H

L

1200 V640 H

L

2700 V1440 H

L

1xdaily

Productionmanagement

MRP

90/60/30-dayforecast

Dailyorders

6-weekforecast

Weekly fax

920 units per day

Week plan Dailyorders

1 sec 39 sec

7.6 days

46 sec

1.8 days

62 sec

2.7 days

40 sec

2.0 days 4.5 daysLead time23.6 days

Process time188 sec

5 days


Future situation – some good advice• What is takt time?• Is the production for orders or supermarket?• Where can we use continuous flow?• Where will we need to use supermarket pull systems?• Where in the production process do we initiate the production?• How do we level the mix in the pacemaker process?• How much of the work is initiated and removed by the pacemaker? • Which changes must be made?• Which improvements must be made?• Which process improvements are necessary?

(e.g. running time, changeover, training)


Expanded value stream mapping method – Step by step

Customer

OEMCompanySupplier

Raw materialsupplier

Cross-dock

Step 1: Processes in the value chain



Customer

OEMCompanySupplier


Cross-dock

Step 2: Data boxes for processes

RV = 10 d

VIA = 8 d

FV = 1 d

EPE = 2 d

RV = 32 d

VIA = 20 d

FV = 8 d

EPE = 2 d

RV = 8 d

VIA = 1 d

FV = 3 d

EPE = 1 d

10,000 items per unit



Customer

OEMCompanySupplier

Raw materialSupplier

Cross-dock

Step 3: Transportation

RV = 10 d

VIA = 8 d

FV = 1 d

EPE = 2 d

RV = 32 d

VIA = 20 d

FV = 8 d

EPE = 2 d

RV = 8 d

VIA = 1 d

FV = 3 d

EPE = 1 d

Daily

1 x 4 – 8 weeks

180 km

DP = 23%

11,070 items per month

500 m

1 x week

180 km

DP = 83%


1 x week

180 km

DP = 83%



65 km

DP = 100%

1 unit = 28 units



Customer

OEMCompanySupplier


Cross-dock

Step 4: Information flow

RV = 10 d

VIA = 8 d

FV = 1 d

EPE = 2 d

RV = 32 d

VIA = 20 d

FV = 8 d

EPE = 2 d

RV = 8 d

VIA = 1 d

FV = 3 d

EPE = 1 d

Daily

1 x 4 – 8 weeks

180 km

DP = 23%


500 m

1 x week

180 km

DP = 83%


1 x week

180 km

DP = 83%



65 km

DP = 100%

1 unit = 28 units

OEMplanning

Companyplanning

SupplierPlanning

Daily call-off

Weekly call-off

Monthly call-off

Weekly P-plan

Dailyplan

Weekly confirmation

Weekly confirmationWeekly

plan

Daily confirmation

Dailyplan



Customer

OEMCompanySupplier


Cross-dock

Step 5: Lead time and value time

RV = 10 d

VIA = 8 d

FV = 1 d

EPE = 2 d

RV = 32 d

VIA = 20 d

FV = 8 d

EPE = 2 d

RV = 8 d

VIA = 1 d

FV = 3 d

EPE = 1 d

Daily

1 x 4 – 8 weeks

180 km

DP = 23%


500 m

1 x week

180 km

DP = 83%


1 x week

180 km

DP = 83%



65 km

DP = 100%

1 unit = 28 units

OEMplanning

Companyplanning

Supplierplanning

Daily call-off

Weekly call-off

Monthly call-off

Weekly P-plan

Dailyplan

Weekly confirmation

Weekly confirmationWeekly

plan

Daily confirmation

Dailyplan

19 days 68 days 2 days 12 days3 hours 3 hours 2 days L/T = 104 days1 plant = 99 dTransportation = 5 dTotal steps = 59VA steps = 10


Problem-solving


Root cause analysis – 5 WhysThe car

cannot start

Forgot tofill up the car

No petrol station

Ran outHole in the fuel tank

AHA – The countermeasure is to introduce a warning light in the car.

No signal

Nopetrol

Engine failure

Why?


The Pareto chartThe method is used for identifying key factors and thus focus the effort.It is typically one of the first tools we use after the data collection process.

• The chart is named after the Italian economist Wilfredo Pareto, who studied the distribution of wealth in the population of Rome. Pareto observed that 80% of income was received by 20% of the population.

• Other examples

– 80% of a company’s sales come from 20% of its products.

– 80% of the total number of cases come from 20% of the case types.

PARETO CHART

0

25

50

75

100Per cent

TYPE OF ERRORA good idea to identify where to start the problem-solving is to categorise the causative conditions and arrange them in columns.


Fishbone diagramThe fishbone diagram is a tool for root cause analysis. The diagram breaks down the problem into its various causes.

Materials Man power

Methods Machines

xxxx

xxxxxxxx

xxxx

xxxxxxxx

xxxx

xxxxxxxx

xxxx

xxxx

xxxx

Problem

The problem is displayed to the right – that is the head of the fish:

• Identify the root causes – write them down at the end of the fishbones.

• Causes can be traced back to root causes with one or more of the six Ms: man power, machines, methods, materials,measurements and management.

• Break down the root causes to the problem.

• Circle the most relevant causes.

• Find the connection between the root causes.

• Take countermeasures against the most important causes and casual relations.

supplier development project tools for supplier development inspiration for tools to be used in...

Documents

value stream4

units2 shiftsstep

customer lead time

total inventory

transportationwaste

process inventory turns6

customer pull5

operator andor equipment