value stream mapping: beyond the mechanics - part 3 (executing the transformation plan)
TRANSCRIPT
Value Stream Analysis:Beyond the Mechanics (Part 3 of 3)
WebinarFebruary 18, 2014
© 2014 The Karen Martin Group, Inc.
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Coach / Facilitator / Consultant / Trainer: Lean transformation & business performance improvement in all industries.
Teacher: University of California, San Diego
Author & Speaker:Karen Martin, President
The Karen Martin Group, Inc.www.ksmartin.com
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2013 Shingo Prize winner!
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© 2014 The Karen Martin Group, Inc. 4
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Before the webinar…• Materials:
– www.ksmartin.com/files/webinarmaterials/02‐18‐2014_slides.pdf (or _handout.pdf)
More VSM Learning
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• Next Webinar– Thursday, March 27, 11:00 am – 12:15 pm PT– Value Stream Mapping: Case Studies– https://www2.gotomeeting.com/register/288652530
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© 2014 The Karen Martin Group, Inc.
© 2014 The Karen Martin Group, Inc. 6
You will learn how to…
• Create & manage a value stream transformation plan.
• Apply PDSA to assure that you’re making the best improvements.
• Engage the entire workforce in making change.
• Measure your progress.
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Basic Current State Value Stream Map: 3 Sections
1
2
3
© 2014 The Karen Martin Group, Inc.
© 2014 The Karen Martin Group, Inc. 8
Customer
1
Process 3
Function E
LT = 0.5 daysPT = 30 mins.%C&A = 95%
4
4
10 mins.1 days
120 mins.2 days
30 mins.0.5 days Total LT = 3.5 days
Total PT = 160 mins.Activity Ratio = 9.5%Rolled %C&A = 89.3%
Process 2
Function C
LT = 2 daysPT = 120 mins.%C&A = 95%
3
3
IT-1 IT-2
5 items
Process 1
Function A
LT = 1 daysPT = 10 mins.%C&A = 99%
5
2
1 items 10 items
Standard work
Modified approvals
IT interface
Cross-train
Cross-train
Standard workError
proof
Basic Value Stream Map: Future State
© 2014 The Karen Martin Group, Inc. 9
Basic Value StreamFuture State Performance Metrics
Metric Current State ProjectedFuture State
Projected% Improvement
Total Lead Time 9.5 days 3.5 days 63.2%
Total Process Time 180 minutes 160 minutes 11.1%
Activity Ratio 3.9% 9.5% 143.6%
Rolled % Complete & Accurate 30.0% 89.3% 197.7%
Other?
Other?
Prepare Understand Current State
DesignFuture State
Develop Transformation
Plan
Execute Transformation
Plan
Three Consecutive Days4 Weeks Prior to Mapping
Following Mapping
Repeat
Value Stream Mapping:Phases and Timing
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Customer
0.5 weeks10.0 days
50.4 weeks 0.3 weeks10.0 days
0.4 weeks 2.3 weeks30.0 days
3.1 weeks147.0 days
9.0 weeks105.0 days
0.1 weeks85.0 days
0.1 weeks10.0 days
0.1 weeks42.0 days
1.2 weeks20.0 days
0.3 weeks5.0 days
0.5 weeks3.0 days
1.8 weeks20.0 days
8.4 weeks 25.2 weeks 0.1 weeks21.0 days Total LT = 930.0 days
Total PT = 103.7 weeksActivity Ratio = 55.8%Rolled %C&A = 0%
Hand Over to Proj Mgmt
Sales 2 approvals
LT = 2 weeksPT = 12 hrs.%C&A = 2%
3
Review Specs; scope
project. Prepare initial
cust. docs
Eng, Quality, Planning
Start designing
projectLT = 6 weeksPT = 92 hrs.%C&A = 0%
5
SalesForce
Send PO or LOI
Customer
LT = 1 years%C&A = 5%
2
Prepare Proposal
Sales (~ 200 pp)
LT = 2 weeksPT = 2.5 days%C&A = 75%
1
Finalize Customer
Documents
EngineeringQuality
LT = 2 months%C&A = 50%
15A
Package & Ship
Product & Systems
Logistics
LT = 4 weeksPT = 72 hrs.%C&A = 99%
14
Release Long LT Items to Production
Eng
LT = 105 daysPT = 360 hrs.%C&A = 75%
7
Plan & Schedule Project
Project Mgmt
LT = 0 weeksPT = 16 hrs.%C&A = 35%
4
ReleaseComplete
Final Design
Eng
LT = 85 daysPT = 144 mins.%C&A = 25%
8A
Begin Create Customer
Docs
X3
EngineeringQuality
LT = 7 monthsPT = 124 hrs.%C&A = 0%
6B
Invoice Customer
Finance
LT = 4 weeksPT = 2.5 hrs.%C&A = 95%
6C
Issue Reqs for Short
Lead Parts
PurchasingPlanning
LT = 2 weeksPT = 3 hrs.%C&A = 5%
10A
Create Demand;
Issue Reqs forLong Lead
Items
PMPlanning
Doc ControlME
LT = 5 daysPT = 8 hours%C&A = 80%
8B
Build for ShipmentPRODUCT
Production
LT = 3 daysPT = 18 hrs.%C&A = 95%
13A
Build for Test Product
Production
LT = 4 weeksPT = 48 hrs.%C&A = 95%
11A
Test & Disassemble
Product
Production
LT = 5 daysPT = 14 hrs.%C&A = 90%
12
9 items
Procure Long Lead Items
Purchasing
LT = 2 weeksPT = 3 hrs.%C&A = 5%
9
Invoice Customer
Finance
LT = 2 monthsPT = 4 hrs.%C&A = 5%
10B
Test & Build from Test Systems
Production
LT = 6 daysPT = 44 hrs.%C&A = 95%
11B
Build for ShipmentSYSTEMS
SystemsProduction
LT = 1 daysPT = 8 hrs.%C&A = 95%
13B
Invoice Customer
(Shipment)
FinanceLogistics
PM
LT = 30 daysPT = 6 hrs.%C&A = 95%
15B
Invoice Customer
(final)
Finance
LT = 1 monthsPT = 3 hrs.%C&A = 95%
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<Client>CURRENT STATE Value Stream Map
(Product><Map assumptions>
Demand Rate = XXXX/ Year February 03, 2014
7 items 7 items 41 items 19 items 21 items 3 items 6 items 3 items 4 items 20 items 50 items 3 items450 items
150 items
CustomerReview &
Approve Docs
LT = 2 weeks%C&A = 5%
6
CustomerApprove Final
Documents
LT = 6 months
16
120 items
22 items
0 items
SupplierSend Parts
LT = 7 months
10C
3 items 18 items
25 items
3 items
3 items
MS ProjectExcel
Current State Value Stream Map
Future State Value Stream Map
Invoice Customer
Finance
LT = 2 daysPT = 2.5 hrs.%C&A = 95%
5B
Value StreamSTOPS if
no PO
Customer
Procure items
Purchasing
LT = 8 hoursPT = 6 hrs .%C&A = 99%
6A
4 hrs.8 hrs.
36 hrs.5 days
206 hrs.35 days
6 hrs.8 hrs. 105 days
2 hrs.4 hrs.
8 hrs.1 days
16 hrs.5 days
18 hrs.3 days
24 hrs.3 days Timeline LT = 160 days
Timeline PT = 320 hrs.Activity Ratio = 25.0%
Review PO
Sales
LT = 8 hoursPT = 4 hrs.%C&A = 95%
3
Prepare Proposals
Sales Engineering
QualityPurchasing
LT = 10 daysPT = 64 hours%C&A = 95%
1
Plan & Schedule
Project
PM
PT = 16 hrs.%C&A = 90%
4A
Stage order(100% comp.)Prod. Control
Hydrotest
Warehouse
LT = 4 hoursPT = 2 hrs .%C&A = 99%
8
Create balance of customer
docs
X 1.5Total PT=186h
ENGQuality
LT = 3 monthsPT = 124 hrs.%C&A = 80%
6B
Complete & Release ENG package BOM
Total PT=268h
LT = 7 weeksPT = 206 hrs.%C&A = 85%
5C
Test & Disassemble
Product(Includes Quality
Inspection)
Total PT=48h
Production
LT = 5 daysPT = 16 hrs.%C&A = 95%
10
Invoice Customer
(shipment)
Finance
LT = 8 daysPT = 6 hrs.%C&A = 95%
13A
Build for Shipment(Product)
Total PT=36h
Production
LT = 3 daysPT = 18 hrs.%C&A = 95%
11A
Package; ready to ship (including
docs)
Total PT=72h
Logistics
LT = 3.1 daysPT = 24 hrs.%C&A = 99%
12
Build for Test
(Product)
Total PT = 16h
Production
LT = 1.1 daysPT = 8 hrs .%C&A = 95%
9A
Build for Shipment(Systems)
Production
LT = 1 daysPT = 8 hrs .%C&A = 95%
11B
Build Crates
Total PT=48h
Logistics
LT = 3 daysPT = 24 hours%C&A = 99%
11C
Invoice Customer
(docs)
Finance
LT = 2 daysPT = 3 hrs .%C&A = 95%
13B
1. Create procedure/train GS service engineers to properly feedback
suggestions to engineering
2.Create bulletin re: s tandardized headplate des ign to eliminate flange
orientation.
5. Socialize new criteria for engineering, quality &
purchasing involvement4. Define technical info
Ebara needs from customer and when
3.Create v isual timeline to educate
customers
6. Revise s tandard Ts & Cs to incorporate time limit for customer
approval for final payment
8. Create criteria for LOI acceptance
9. Add initial project release in
SF10. Enforce customer
-requested CO procedure
Complete & release initial
customer docs
Eng (32 hrs)Quality (4 hrs)
LT = 5 daysPT = 36 hrs.%C&A = 85%
4B
12. Move to one release (pump &
systems)
11. Create one-piece engineering flow
18. Eliminate Requisitions
20. Create approved supplier program
16. Create trigger to release (BOMs) for
purchase.
14. Standardize WBS/QPR from
suppliers27. Pre-arrange
shipping based on production schedule
26. Update data book process to submit after test
reports received.
7. Error proof P.O. info (correct specs, ship to, etc .);
notify customer re missing info and drop dead date
Invoice customer
(major materials)
Finance
LT = 2 daysPT = 3 hours%C&A = 95%
7B
Build for Test
(Systems)
Production
LT = 5 daysPT = 22 hours%C&A = 95%
9B
13. Revise proposal template to limit time
to 4 revisions
15. Create commodity management team &
supplier SLAs
16. Create pull s ignal for invoicing.
19. Analyze/implement change management
system.
22. Create engineering tools
23. Automate shop order
release.
24. Eliminate witnessed testing of electrical feed-
throughs onsite
25. Transition data reduction to test engineer
28. Create the means to have a daily level-loaded
production schedule
Approve final
documents
Customer
LT = 30 days
12B
Send materials
Supplier
LT = 5 monthsPT = 0 hrs .
7A
Approve cust. doc package
Customer
LT = 2 weeks
5A
Send PO or LOI
Customer
LT = 1 years%C&A = 75%
2
21. Create configurator
(standard part)
Rolled %C&A = 21% Total PT = XX
© 2014 The Karen Martin Group, Inc. 13
Improvements / Hypotheses• Improved quality of information upfront.• Removed handoffs.• Shifted roles & responsibilities in 4 work areas.• Added a proper cross‐functional kick‐off activity.• Merged work.• Re‐sequenced work.• Moved work in parallel.• Innovated re: design.• Created new work triggers.• Created one‐piece flow in engineering by reconfiguring staff and workloads.
• Rationalized suppliers (starting the process).• Implementing a hard stop to work if no PO received.
© 2014 The Karen Martin Group, Inc. 14
Value Stream Performance ImprovementProjected Results
Metric Current State ProjectedFuture State
Projected% Improvement
Timeline Lead Time(RFQ to shipping)
17 months 7.5 months 56%
Timeline Process Time 600 hours 450 hour 25%
Rolled % Complete & Accurate 0% 21% > 2,000%
On‐time delivery 13% 90% 592%
# Internally‐produced Change Orders 25/project 12/project 52%
© 2014 The Karen Martin Group, Inc. 15
PACE Prioritization chart
Prioritization GridCreating the Transformation Plan
16
17
J F M A M J J A S O N D
1 PROJ Steve
2 PROJ Steve
3 KE Bruce
4 KE Bruce
5 PROJ Jessie
6 PROJ Sally
7 KE Jessie
8 PROJ Mike
9 JDI Jessie
10 PROJ Steve
11 PROJ Steve
12 PROJ Bob
13 JDI Jessie
14 PROJ Marcia
15 PROJ Tom
16 KE Marcia
17 PROJ Sally
Value Stream Champion Sally BrooksValue Stream Mapping Facilitator Karen Martin
Value Stream Transformation PlanValue Stream Product Y Scheduled Review Dates
Executive Sponsor Jim McMahon 2/10 + bi-weekly Thu 10 am
Socialize new criteria for engineering, quality, & purchasing involvement.
Date Created 1/5/2014Kaizen Burst # Improvement Objective / Hypothesis Proposed Countermeasure
Exec. Method * Owner
Planned Timeline for ExecutionStatus
Create procedure/train GS service engineers to properly feedback suggestions to engineering.
Create bulletin re: standardized headplate design to eliminate flange orientation.
Create visual "milestone" timeline to educate customers.
Define technical info needed from customer and when.
Signature: Signature: Signature:
Revise standard Ts & Cs to incorporate time limit for customer approval for f inal payment.
Error proof P.O. info (correct specs, ship to, etc.); notify customer re missing info and drop dead date.
Create criteria for LOI acceptance.
Add initial project release in SF.
Resocialize existing customer-requested CO procedure.
One piece engineering flow
Agreement
Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project)
Move to one release (pump & systems)
Date: Date: Date:
Create commodity management team & supplier SLAs.
Standardize WPS/PQR from suppliers.
Revise proposal template to limit time to 4 revisions.
Create pull signal for invoicing.
Create trigger to release (BOMs) for purchase.Co
nten
t rem
oved
for san
itizatio
n pu
rposes
© 2014 The Karen Martin Group, Inc. 18
Who? Accountability Tool
Sr. Leaders “What has to happen” Hoshin Plan, A3, Value Stream Mapping
Frontlines “How it will happen” Kaizen Events, Just‐do‐its, and Projects
Improvement RolesStrategic
Tactical
Middle Management
Tactical
Prepare Understand Current State
DesignFuture State
Develop Transformation
Plan
Execute Transformation
Plan
Three Consecutive Days4 Weeks Prior to Mapping
Following Mapping
Repeat
Value Stream Mapping:Phases and Timing
19
© 2014 The Karen Martin Group, Inc. 20
Key Success Factors• Consistent Executive Sponsor involvement
– Run or attend status meetings• Consistent status meetings
– At least monthly– Every other week to start
• Single point of ownership– But collaborative problem solving and obstacle removal.
• PDSA at every meeting• Edit the future state map real time• Adjust the transformation plan as needed
© 2014 The Karen Martin Group, Inc. 2121
Develophypothesis
Conduct experiment
Measure results
RefineStandardize Stabilize
© 2014 The Karen Martin Group, Inc. 22
Physically Post the Future State Map
Physically Postthe Transformation Plan
J F M A M J J A S O N D
1 PROJ Steve 0%
2 PROJ Steve 100%
3 KE Bruce 50%
4 KE Bruce 50%
5 PROJ Jessie 100%
6 PROJ Sally 100%
7 KE Jessie 0%
8 PROJ Mike 100%
9 JDI Jessie 50%
10 PROJ Steve 80%
11 PROJ Steve 10%
12 PROJ Bob 0%
13 JDI Jessie 100%
14 PROJ Marcia 25%
15 PROJ Tom 30%
16 KE Marcia 50%
17 PROJ Sally 50%
Value Stream Champion Sally BrooksValue Stream Mapping Facilitator Karen Martin
Value Stream Transformation PlanValue Stream Product Y Scheduled Review Dates
Executive Sponsor Jim McMahon 2/10 + bi-weekly Thu 10 am
Socialize new criteria for engineering, quality, & purchasing involvement.
Date Created 1/5/2014Kaizen Burst # Improvement Objective / Hypothesis Proposed Countermeasure Exec.
Method * OwnerPlanned Timeline for Execution
Status
Create procedure/train GS service engineers to properly feedback suggestions to engineering.
Create bulletin re: standardized headplate design to eliminate flange orientation.
Create visual "milestone" timeline to educate customers.
Define technical info needed from customer and when.
Signature: Signature: Signature:
Revise standard Ts & Cs to incorporate time limit for customer approval for f inal payment.
Error proof P.O. info (correct specs, ship to, etc.); notify customer re missing info and drop dead date.
Create criteria for LOI acceptance.
Add initial project release in SF.
Resocialize existing customer-requested CO procedure.
One piece engineering flow
Agreement
Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project)
Move to one release (pump & systems)
Date: Date: Date:
Create commodity management team & supplier SLAs.
Standardize WPS/PQR from suppliers.
Revise proposal template to limit time to 4 revisions.
Create pull signal for invoicing.
Create trigger to release (BOMs) for purchase.Co
nten
t rem
oved
for san
itizatio
n pu
rposes
© 2014 The Karen Martin Group, Inc. 24
And Repeat…
© 2014 The Karen Martin Group, Inc. 25
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“The new bible for value stream mapping.”—Art Byrne, author, The Lean Turnaround
© 2014 The Karen Martin Group, Inc. 26
Karen Martin, President7770 Regents Road #635San Diego, CA 92122
858.677.6799
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