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Sino Waypoint Consulting Inc.1

Lean Manufacturing

Value Stream MappingValue Stream Mapping

Present by:Wenqin Shao, Wenqin Shao, MBA, M.Sc. MBA, M.Sc. P.EngP.Eng..

Sino Waypoint Consulting Inc.Sino Waypoint Consulting [email protected][email protected]


AgendaAgenda

Phase 1 Phase 1 Introduction Introduction Current State Value Stream MapCurrent State Value Stream Map

Phase 2Phase 2 Lean Value StreamLean Value StreamFuture State MapFuture State Map

Phase 3Phase 3 2 Cases Study2 Cases StudyPhase Phase 44 Achieving the Future StateAchieving the Future StatePhase Phase 55 Getting StartedGetting Started


Current State MapCurrent State Map

•• Introduction Introduction What is it?What is it?Why use it?Why use it?Product FamiliesProduct FamiliesValue Stream ManagerValue Stream Manager

•• Steps in Value Stream ImprovementSteps in Value Stream Improvement•• Current State Value Stream MapCurrent State Value Stream Map


Value Stream MappingValue Stream MappingWhat is it? What is it?

Visual representation of all the actions needed Visual representation of all the actions needed to bring an idea into the arms of the customerto bring an idea into the arms of the customerLooks at the entire process, not just individual Looks at the entire process, not just individual stepsstepsBreak down entire flow into value stream loopsBreak down entire flow into value stream loops

Design from concept to launchDesign from concept to launchFrom raw material to the shipping dockFrom raw material to the shipping dockThe supply chainThe supply chainFrom shipping dock to the end userFrom shipping dock to the end user

Start within the four wallsStart within the four walls


Value Stream MappingValue Stream Mapping

Why use it? Why use it? Helps visualize the flow withinHelps visualize the flow within--and betweenand between--processesprocessesBecomes a common languageBecomes a common languageLinks information flow with material flowLinks information flow with material flowIdentifies sources of wasteIdentifies sources of wasteCommunicates a Communicates a ““future statefuture state”” visionvisionForms basis of improvement plan Forms basis of improvement plan Describes how to achieve future stateDescribes how to achieve future state


Value Stream ManagerValue Stream Manager•• Value streams cross functional/departmental Value streams cross functional/departmental

boundariesboundaries•• Departments responsible for individual performance, no Departments responsible for individual performance, no

one for the value stream of a product familyone for the value stream of a product family•• Focus is on process Kaizen, not flow KaizenFocus is on process Kaizen, not flow Kaizen•• Need a champion: Need a champion:

Senior levelSenior levelResponsible for lean implementation Responsible for lean implementation Leads the mapping processLeads the mapping processMonitors progress and resultsMonitors progress and resultsProvides corrective actionsProvides corrective actionsHandsHands--on, results drivenon, results driven


Value Stream Mapping StepsValue Stream Mapping Steps

PRODUCT FAMILY

CURRENT-STATE DRAWING

FUTURE-STATE DRAWING

WORK PLAN AND IMPLEMENTATION


Product FamiliesProduct Families

••Customers care about one product, not all productsCustomers care about one product, not all products••Map one family of products at a timeMap one family of products at a time••Definition of Definition of ““familyfamily””: a group of products that pass : a group of products that pass through similar processing steps and common equipmentthrough similar processing steps and common equipment

XXX70F

XX120E

XX60D

XXXX80C

XXXX50B

XXXX100A

Step 5Step 4Step 3Step 2Step 1VolumeProduct


Product FamiliesProduct Families

Identify the product families in your plant Identify the product families in your plant

For each product For each product ““typetype””, determine the production , determine the production volume volume For major product families (80% of total volume), For major product families (80% of total volume), determine the routingsdetermine the routingsSort and aggregate into product familiesSort and aggregate into product families


Current State Value StreamCurrent State Value Stream

•• Start with the doorStart with the door--to door flow in the plantto door flow in the plant•• Draw process categoriesDraw process categories--paint, weldpaint, weld--not not

process stepsprocess steps•• Use symbols or iconsUse symbols or icons•• Walk the flow to collect informationWalk the flow to collect information•• Begin at shipping, and work upstreamBegin at shipping, and work upstream•• Measure times yourselfMeasure times yourself--do not use standardsdo not use standards•• Map the entire stream yourselfMap the entire stream yourself•• Draw by hand, in pencilDraw by hand, in pencil


VSM IconsVSM Icons

ASSEMBLY Manufacturing Process One process box equals an area of flow. All processes should be labeled. Also used for departments, such as Production Control.

C/T = 45 sec.C?O = 30 min3 shifts2% Scrap

Data Box Used to record information concerning a manufacturing process, department customer, etc.

XYZCorporation

Outside Sources Used to show customers, suppliers, and outside manufacturing processes

inventory Count and time should be noted300 pieces

1 Day


VSM Icons VSM Icons ((concon’’tt))

Truck Shipment Note frequency of shipments.

Movement of finished goods to the customer

Movement of production material by PUSH

Material that is produced and moved forward before the next process needs it; usually based on a schedule.

Supermarket A controlled inventory of parts that is used to schedule production at an upstream process.

Mon.+Wed.



Withdrawal Pull of materials, usually from a supermarket.

Transfer of controlled qualities of material between processes in a “First-In-First-Out”sequence

Indicates a device to limit quantity and ensure FIFO flow of material between processes. Maximum quantity should be noted.

Max. 20 pieces

FIFO



Manual information flow For example: production schedule or shipping schedule.

Production Kanban(dotted line indicates kanban path)

The “one-per-container” kanban. Card or device that tells a process how many of what can be produced and gives permission to do so.

Weekly Schedule

Information Describes an information flow.

Electronic information flow

For example via electronic data interchange.

20

Withdrawal Kanban Card or device that instructs the material handler to get and transfer parts (i.e. from a supermarket to the consuming process).

Signal Kanban The “one-per-batch” kanban. Signals when a reorder point is reached and another batch needs to be produced. Used where supplying process must produce in batches because changeovers are required.


VSM IconsVSM Icons ((concon’’tt))

Sequenced-Pull Ball Gives instruction to immediately produce a predetermined type and quantity, typically one unit. A pull system for subassembly processes without using a supermarket.

Kanban arriving in Batched

Kanban Post Place where kanban are collected and held for conveyance.

Load Leveling Tool to intercent batches of kanban and level the volume and mix of them over a period of time.

“Go See” Production Scheduling

Adjusting schedules based on checking inventory levels

OXOX


VSM IconsVSM Icons ((concon’’tt))

Kaizen lightening burst Highlights improvement needs at specific processes that are critical to achieving the value stream vision. Can be used to plan kaizen workshops.

Buffer or safety stock “Buffer” or “Safety Stock” must be noted

Operator Represents a person viewed from above.

Weld changeover

Welderuptime



•• CustomerCustomer’’s requirementss requirements--upper right corner of mapupper right corner of map•• Process stepsProcess steps--from left to rightfrom left to right•• If multiple branches, draw main ones firstIf multiple branches, draw main ones first•• Add data: cycle time, changeover time, uptime, batch Add data: cycle time, changeover time, uptime, batch

size (EPE), number of operators, number of product size (EPE), number of operators, number of product variations, pack size, working time, variations, pack size, working time, scapscap raterate

•• Measure and record inventoryMeasure and record inventory•• Map key supplier deliveriesMap key supplier deliveries

…… contcont’’dd



…… contcont’’dd•• Add double arrows for shipping from suppliers.Add double arrows for shipping from suppliers. to to

customerscustomers•• Add information flow from right to left. Use narrow Add information flow from right to left. Use narrow

arrow (wiggles for electronic flow)arrow (wiggles for electronic flow)•• Connect Connect ““batch and pushbatch and push”” steps with wide striped steps with wide striped

arrowsarrows•• Summarize with a timeline under the process boxes Summarize with a timeline under the process boxes

and inventories.and inventories.


Current State Value StreamCurrent State Value StreamAc

me

Dat

aAcme Stamping Data Set Acme Stamping Company produces several components for vehicle assembly plants. This case concerns one product family, a steel instrument-panel bracket subassembly in two types: one each for left-hand and right-hand drive versions of the same automobile model. These components are sent to the State Street Vehicle Assembly Plant (the customer). Production Process

Acme’s processes for this product family involve stamping a metal part followed by welding and subsequent assembly. The components are then staged & shipped to the vehicle assembly plant on a daily basis.

Switching between types “LH” (left-hand drive) and type “RH” (right-hand

drive) brackets requires a 1 hour changeover in stamping and a 10 minutes fixture change in the welding processes.

Steel coils are supplied by Michigan Steel Co. Steel deliveries to Acme

arrive on Tuesday and Thursday. Customer Requirements

18,400 pieces per month o 12,000 per month of type “LH” o 6,400 per month of type “RH”

customer plant operates on two shifts palletised returnable tray packaging with 20 brackets in a tray and up to 10

trays on a pallet. The customer orders in multiples of trays. One daily shipment to the assembly plant by truck.

Work Time

20 days a month two shifts operation in all production departments eight (8) hours every shift, with overtime if necessary two 10-monutes break during each shift manual processes stop during breaks unpaid lunch.

Acme Production Control Department

Receives State Street’s 90/60/30-day forecasts and enters them to MRP. Issues Acme 6-week forecast to Michigan Steel Co. via MRP. Secures coil steel by weekly Faxed order release to Michigan Steel Co. Receives daily firm order from State Street. Generate MRP based weekly departmental requirements based upon

customer order. WIP inventory levels, F/G inventory levels, and anticipated scrap and downtime.

Issues weekly build schedules to Stamping, Welding, and Assembly processes.

Issues daily shipping schedule to shipping department

Process Information All processes occur in the following order and each piece goes through all processes. 1. Stamping (the press makes parts for many Acme products) Automated 200 Ton press with coil (automatic) material feed Cycle Time: 1 second (60 pieces per minute) Changeover time 1 hour (good piece to good piece) Machine reliability 85% Observed inventory:

5 days of coils before stamping 4,600 pieces of type “LH” finished stampings 2,400 pieces of type “RH” finished stampings

2. Spot Weld Workstation I (dedicated to this product family) manual process with one operator Cycle Time: 39 seconds Changeover time: 10 minutes (fixture change) Reliability: 100% Observed inventory:

1,100 pieces of type “LH” 600 pieces of type “RH”

3. Spot Weld Workstation II (dedicated to this product family) manual process with one operator Cycle Time: 46 seconds Changeover time: 10 minutes (fixture change) Reliability: 80% Observed inventory:

o 1,600 pieces of type “LH” o 850 pieces of type “RH”

4. Assembly Workstation I (dedicated to this product family) manual process with one operator Cycle Time: 62 seconds Changeover time: none Reliability: 100% Observed inventory:

1,200 pieces of type “LH” 640 pieces of type “RH”

5. Assembly Workstation II (dedicated to this product family) manual process with one operator Cycle Time: 40 seconds Changeover time: none Reliability: 100% Observed inventory:

o 2,700 pieces of type “LH” o 1,440 pieces of type “RH”

6. Shipping Department Removes parts from finished goods warehouse and stages them for truck shipment to

customer.


Acme Floor LayoutAcme Floor Layout

200 TPress

PRESS DEPT.

Steel CoilStorage

Stamped PartsStorage

Weld II

WELDING DEPT.

Weld I

Welding inspection area

Welded Parts Storage

Assembly #1 Assembly #2

ASSEMBLY DEPT.

Fina

l Ins

pect

ion

SHIPPING

Finished Goods Storage

= Work in Progress (WIP) in Baskets

= Finished Goods in Trays


Acme ViewAcme Viewss

Coils5 Day

STAMPING

200 T

1

C/T=1 secondC/O = 1 hourUptime = 85%27,600 s. availEPE=2 weeks

2700 L1440 R

4600 L2400 R

S. Weld #1

1

C/T=39 secondC/O = 10 minUptime=100%2 shifts27,600 s.avail.

1100 L600 R

S. Weld #2

1


1600 L850 R

Assembly #1

1

C/T=62 secondC/O = 0Uptime=100%2 shifts27,600 s.avail.

1200 L640 R

Assembly #2

1


State Street Assembly

18,400 psc/mo-12,000 ”L”-6,400 “R”

Tray = 20 pieces2 shifts

MichiganSteel Co.

500 ft coils

Tues.+Thurs.

1 xDaily

Shipping

Staging


Acme Acme Information FlowInformation Flow

Coils5 Day

STAMPING

200 T

1


2700 L1440 R

4600 L2400 R

S. Weld #1

1


1100 L600 R

S. Weld #2

1


1600 L850 R

Assembly #1

1


1200 L640 R

Assembly #2

1



18,400 psc/mo-12,000 ”L”-6,400 “R”


MichiganSteel Co.

500 ft coils

Tues.+Thurs.

1 xDaily

Shipping

Staging

Productcontrol

MRPDailyOrder

90/60/30 dayForecast

weeklyFax

6 weekForecast

Weekly schedule

Daily shipschedule


TaktTakt TimeTime

Coils5 Day

STAMPING

200 T

1


2700 L1440 R

4600 L2400 R

S. Weld #1

1


1100 L600 R

S. Weld #2

1


1600 L850 R

Assembly #1

1


1200 L640 R

Assembly #2

1



18,400 psc/mo-12,000 ”L”-6,400 “R”


MichiganSteel Co.

500 ft coils

Tues.+Thurs

1 xDaily

Productcontrol

MRPDailyOrder

90/60/30 dayForecast

weeklyFax

6 weekForecast

Weekly schedule

Daily shipschedule

Shipping

Staging

5 days

1 second

7.6 days

39 seconds

1.8 days

46 seconds

2.7 days

62 seconds

2 days

40 seconds

4.5 days

Production Lead Time

23.6 days Processing Time

188 seconds


Acme Material FlowAcme Material Flow

200 TPress

PRESS DEPT.

Steel CoilStorage

Stamped PartsStorage

Weld II

WELDING DEPT.

Weld I

Welding inspection area

Welded Parts Storage

Assembly #1 Assembly #2

ASSEMBLY DEPT.

Fina

l Ins

pect

ion

SHIPPING

Finished Goods Storage


VSM Memory Jogger

Value Stream Mapping• Start with the door-to door flow in the plant.• Draw process categories- paint, weld-not

process steps.• Use symbols or icons.• Walk the flow to collect information.• Begin at shipping, and work upstream.• Measure times yourself, do not use standards.• Map the entire stream yourself.• Draw by hand, in pencil.


VSM Memory JoggerCurrent State Value Stream• Customer’s requirements – upper right corner of map.• Process steps – from left to right.• If multiple branches, draw main ones first.• Add data, cycle time, changeover time, uptime, batch size

(EPE). number of operators, number of product variations, pack size, working time, scrap rate.

• Measure and record inventory.• Map key supplier deliveries• Add double arrows for shipping from suppliers / to

customers.• Add information flow from right to left.• Connect “batch and push” steps with wide striped arrows.• Summarizes with a timeline under the process boxes and

inventories.


VSM Memory JoggerFuture State Value Stream1. Produce to your TAKT time.2. Implement continuous flow where possible.3. Use Supermarkets to control production

where continuous flow does not extend upstream.

4. Send customer schedule to only one production process.

5. Level the production mix.6. Level the production volume.7. Small lot production.


VSM Memory JoggerAchieving the Future State

1. Break the value stream into loops.2. Develop yearly value stream plan.3. Start with one loop-high probability of

success, pacemaker.4. Improve the loop.5. Practice Kaizen continuously.


Prepare Current State VSM’s

Step 1 (Full VSM team)Step 1 (Full VSM team)

Select product familiesSelect product familiesGather data for 1Gather data for 1stst value stream map value stream map practicepracticeMap the first value streamMap the first value streamCreate spaghetti diagramCreate spaghetti diagram


Prepare Current State VSM’s

Step 2 (SubStep 2 (Sub--team)team)Form subForm sub--teams of 3 to 5 membersteams of 3 to 5 membersAllocate remaining value stream to subAllocate remaining value stream to sub--teamsteamsGather data for next value streams, map next Gather data for next value streams, map next streamsstreamsCreate spaghetti diagramsCreate spaghetti diagrams

Step 3 (Full VSM team)Step 3 (Full VSM team)Q&A review at end of 2Q&A review at end of 2ndnd dayday


Lean Value Stream

•• Fundamental principle:Fundamental principle:Anything that does not add value to the product Anything that does not add value to the product is waste and must be eliminatedis waste and must be eliminated

•• Ask: Ask: ““Is this something that the customer would Is this something that the customer would be willing to pay for?be willing to pay for?””

•• Ask:Ask:””DoesDoes this activity change the form, fit or this activity change the form, fit or function of the product or service?function of the product or service?””


Overproduction

•• OverproductionOverproduction--production more, sooner or production more, sooner or faster than required by the next process faster than required by the next process –– is the is the most significant source of wastemost significant source of waste

•• Results in:Results in:Excessive inventories $$$Excessive inventories $$$Extra storage space / racks, handling / equipmentExtra storage space / racks, handling / equipmentWasted time spend counting, picking, sorting, Wasted time spend counting, picking, sorting, reworkingreworkingComplex inventory management systemsComplex inventory management systemsShortages, excess capacity and peopleShortages, excess capacity and peopleLong lead timesLong lead times

•• Lean: make only what the next process needsLean: make only what the next process needs


Guideline #1

••Produce to your Produce to your TTaktakt timetime

••Synchronize the pace of production to the pace Synchronize the pace of production to the pace of salesof sales

shiftperdemandcustomershiftpertimeworkingavailabletimeTakt =


Guideline #2

Implement continuous flow where possibleImplement continuous flow where possible

•• Produce one piece at a time, move directly Produce one piece at a time, move directly to next process stepto next process step

•• Connect the valueConnect the value--added processesadded processes•• May need to deMay need to de--couple with pull / FIFO couple with pull / FIFO

until: process reliability improved; zero until: process reliability improved; zero changeover times; smaller, dedicated changeover times; smaller, dedicated equipmentequipment


Guideline #3

•• Use supermarkets to control production where Use supermarkets to control production where continuous flow does not extend upstreamcontinuous flow does not extend upstream

•• May need to batch some processes:May need to batch some processes:Very fast / slow processesVery fast / slow processesEquipment sharedEquipment sharedLong travel distancesLong travel distancesLong lead timesLong lead timesunreliableunreliable

•• Implement PULL where flow is interrupted, or Implement PULL where flow is interrupted, or upstream process must operate in batch modeupstream process must operate in batch mode


Pull and Supermarkets

•• Pull provides accurate production requirements Pull provides accurate production requirements to upstream process, avoids forecasting and to upstream process, avoids forecasting and scheduling scheduling

•• Eliminate supermarkets near supply processEliminate supermarkets near supply process--gives visibility to demandgives visibility to demand

•• Use cards, containers, racking, spots on floorUse cards, containers, racking, spots on floor•• FIFO lanes for custom parts, costly parts, FIFO lanes for custom parts, costly parts,

infrequent usageinfrequent usage


Pull and Supermarkets

Supply

X Customer

Y

Customer

Z


Pull Supermarket Alternatives

Customer parts, high cost, infrequent usageCustomer parts, high cost, infrequent usage•• FIFO lanesFIFO lanes

First in first out chute; fixed amount inventoryFirst in first out chute; fixed amount inventorySupply operation dictates sequenceSupply operation dictates sequenceSupplier stops when lane in fullSupplier stops when lane in full

•• Sequenced pull ballSequenced pull ballCustomer orders exact quantity neededCustomer orders exact quantity neededCoded balls or disks, electronic signalCoded balls or disks, electronic signalRequires short lead time and ordering rulesRequires short lead time and ordering rules


Guideline #4

Send customer schedule to only one production Send customer schedule to only one production processprocess

•• Using Pull systems allows us to only schedule Using Pull systems allows us to only schedule one process stepone process step--termed the pacemaker processtermed the pacemaker process

•• Pacemaker schedule is determined by customers Pacemaker schedule is determined by customers ordersorders

•• Processes downstream of pacemaker need to Processes downstream of pacemaker need to FlowFlow

•• Pacemaker process further upstream in custom Pacemaker process further upstream in custom products or job shopsproducts or job shops


Guideline #5

Level the production mixLevel the production mix

•• Large batches creates excess inventories, and all Large batches creates excess inventories, and all the inherent wastesthe inherent wastes--shortages, long lead times, shortages, long lead times, space, handling, slow responsespace, handling, slow response

•• Leveling is producing different products evenly Leveling is producing different products evenly over a time periodover a time period

•• Change from Change from AAAAAA--AAAAAA--AAAAAA--BBBB--BBBB--BBBBtoto AAAAAA--BBBB--AAAAAA--BBBB--AAAAAA--BBBB

•• Requires zero changeover capabilityRequires zero changeover capability


Guideline #6

Level the production volumeLevel the production volume

•• Release small, consistent production volume to Release small, consistent production volume to the pacemaker process, often less than 1 hours the pacemaker process, often less than 1 hours worth. Also termed the worth. Also termed the ““pitchpitch””

•• Provides a Provides a ““takttakt imageimage”” to rapidly respond to to rapidly respond to problemsproblems

•• Prevents batchingPrevents batching•• LoadLoad--leveling box providers mix and volume leveling box providers mix and volume

scheduling to the pacemaker processscheduling to the pacemaker process


Guideline #7

Small lot productionSmall lot production

•• Make Make ““every part every dayevery part every day””……then EPE shiftthen EPE shift

……then EPE hour or pallet or pitchthen EPE hour or pallet or pitch•• Need to reduce changeover times, Need to reduce changeover times,

distances, delaysdistances, delays


Future State Map

•• Goal: build a chain of productionGoal: build a chain of productionIndividual processes are linked to their customers by Individual processes are linked to their customers by continuous flow or pull continuous flow or pull Produce only what the customer wantsProduce only what the customer wantsProduce only when the customer needs itProduce only when the customer needs it

•• Current constraints may include product design, Current constraints may include product design, existing process equipment, or remote locationsexisting process equipment, or remote locations

•• Initial future state map:Initial future state map:What can do with want we have?


Key Questions

•• What is the What is the takttakt time?time?•• Build to stock, or to order?Build to stock, or to order?•• Where can you use continuous flow Where can you use continuous flow

processing?processing?•• Where will you need to use Pull systems?Where will you need to use Pull systems?•• Where is the production scheduling pointWhere is the production scheduling point--the the

pacemaker process?pacemaker process?•• How will you level the production mix?How will you level the production mix?•• What will be the production release quantity?What will be the production release quantity?•• What process improvements are needed?What process improvements are needed?


ACME Q1

TaktTakt timetime

•• Work time 27,600 sec / shiftWork time 27,600 sec / shift•• Customer demand 460 unit per shiftCustomer demand 460 unit per shift•• TaktTakt time = 60 sectime = 60 sec


ACME Q2

FGI supermarket or pull from customerFGI supermarket or pull from customer

IssuesIssuesCustomer demand variationCustomer demand variationProcess reliabilityProcess reliabilityCustomization, unit valueCustomization, unit value


ACME Q3

Continuous flowContinuous flow

IssuesIssuesTaktTakt time versus cycle timetime versus cycle timeLine balanceLine balanceDedicated equipment Dedicated equipment Changeover timeChangeover time

Kaizen needsKaizen needsWork content, welder changeover & uptimeWork content, welder changeover & uptime


ACME Q4

Supermarket pullSupermarket pull

IssuesIssuesShared customersShared customersBatch sizesBatch sizes

Stamping & vendorStamping & vendorKaizen needsKaizen needs

Changeover time now 1 hourChangeover time now 1 hour


ACME Q5

Pacemaker processPacemaker process

•• Determined by customersDetermined by customers’’ ordersorders•• Does flow occur downstream?Does flow occur downstream?


ACME Q6

Level mixLevel mix

•• Option A Option A –– level mix pull from level mix pull from supermarket to shippingsupermarket to shipping

•• Option B Option B –– level mix pull from weld / level mix pull from weld / assembly to supermarketassembly to supermarket

•• Batch size vs. material movement Batch size vs. material movement tradeofftradeoff


ACME Q7

Work unit to scheduleWork unit to schedule

IssuesIssuesTaktTakt image for shop => short intervalimage for shop => short intervalSchedule complexity => longer intervalSchedule complexity => longer interval


ACME Q8

Process improvement requiredProcess improvement required

•• Changeover time at stampingChangeover time at stamping•• Changeover time in weld / Changeover time in weld / assyassy•• Uptime on 2Uptime on 2ndnd spot weld machinespot weld machine•• Waste time in weld / Waste time in weld / assyassy


Achieving the Future State

•• Break the value stream into loopsBreak the value stream into loops•• Pick a loop to start:Pick a loop to start:

Where process is well understoodWhere process is well understoodWhere likelihood of success is highWhere likelihood of success is highWhere benefits are greatWhere benefits are great

•• Pacemaker loop often the best starting pointPacemaker loop often the best starting pointClosest to the customerClosest to the customerReveals problems in upstream loopsReveals problems in upstream loops

•• Evaluate potential roadblocksEvaluate potential roadblocksBatch size, uptime, cycle time Batch size, uptime, cycle time vsvs takttakt, etc., etc.


ACME LoopsState Street Assembly

18,400 psc/mo-12,000 ”L”-6,400 “R”


MichiganSteel Co.

500 ft coils

Daily

Shipping

Staging

Productcontrol

MRPDailyOrder

second dayForecast

DailyOrder

2 weekForecast

coil

coils

(at the press)

Stamping

EPE = 1 shiftC/O < 10min

Changeover

20

Weld+Assy

Takt = 60secC/T =56 secC/O=0Uptime=100%2 shifts

L

R

OXOX

Daily orderSupplier

Loop

Stamping Loop

Pacemaker Loop


ACME Loops

Kaizen

Kaizen

Kaizen


18,400 psc/mo-12,000 ”L”-6,400 “R”


MichiganSteel Co.

500 ft coils

Daily

Shipping

Staging

Productcontrol

MRPDailyOrder

second dayForecast

DailyOrder

2 weekForecast

coil

coils

(at the press)

Stamping

EPE = 1 shiftC/O < 10min

Changeover

20

Weld+Assy

Takt = 60secC/T =56 secC/O=0Uptime=100%2 shifts

L

R

OXOX

Daily order

1.5 days

1 seconds

1 days

16.8 seconds

2 days


4.5 days

Processing Time

17.8 seconds


Mechanical & OpticMechanical & Optic LayoutLayout

OPETIC DEPT.Se

mi A

ssy

Goo

ds

Final Inspection

Sem

i ass

y. g

oods

MECHANICAL DEPT.

Fina

l Ins

pect

ion

Rel

ay P

rep.

Lens

Pre

p.

Relay install

Mirror Prep.

Mirror Install

Kitting Prep.


Material Flow ChartMaterial Flow Chart

OPETIC DEPT.

Sem

i Ass

yG

oods

Final Inspection

Sem

i ass

y. g

oods

MECHANICAL DEPT.

Fina

l Ins

pect

ion

Rel

ay P

rep.

Lens

Pre

p.

Relay install

Mirror Prep.

Mirror Install

Kitting Prep.

AB

AB

C

ABC

D


TestingTesting LayoutLayout

Final inspection

Assyed goods

Semi assy. goods

Shipping Goods

Scrap Goods Packaging Area


TestingTesting Material FlowMaterial Flow

Final inspection

Assyed goods

Semi assy. goods

Shipping Goods

Scrap Goods Packaging Area


Process FlowProcess Flow ViewViewss

Stock Room

External Vendors

Internal warehouse

Stock Room

Finished Goods

5 Days

Mirror Prep.

4

C/T=22.5 minC/O = 1 hourYield = 60%

5 Days

Relay Prep.

4

C/T=30 minC/O = 30 minYield = 60%

5 Days

Lens Prep.

4

C/T=35 min C/O = 1 hourYield = 60%

5.5Days

Relay install

6

C/T=15 minC/O = 2 hourYield = 80%

6.5Days

Mirror install

4


7.8Days

Optic install

36


Coils5 Day

Testing

29



Information FlowInformation Flow

Stock Room

External Vendors

Internal warehouse

Stock Room

Finished Goods

Productcontrol

DailyOrder

weeklyFax

3 monthForecast

Weekly schedule

5 Days

Mirror Prep.

4


5 Days

Relay Prep.

4


5 Days

Lens Prep.

4


5.5Days

Relay install

6


6.5Days

Mirror install

4


7.8Days

Optic install

36


Coils5 Day

Testing

29



TaktTakt TimeTime

Stock Room

External Vendors

Internal warehouse

Stock Room

Finished Goods

Productcontrol

DailyOrder

weeklyFax

3 monthForecast

Weekly schedule

7.6 days

35 min

5.5 days

15 min6.5 days

23 min7.8 days

45 min

5 days

5 Days

Mirror Prep.

4


5 Days

Relay Prep.

4


7.6Days

Lens Prep.

4


5.5Days

Relay install

6


6.5Days

Mirror install

4


7.8Days

Optic install

36


Coils5 Day

Testing

29


Processing Time

364 minutes


32.3 days

226

min


Cellular Cell

Mechanical Cell

Lens Prep.

Relay Prep.

Mirror Prep.

Final Build

FIFO

FIFO

FIFO

Semi Prep.

Optic & Test Cell 1

Optic & Test Cell 2

Packing & shipping

Shipping Goods


Material Flow

Mechanical Cell

Lens Prep.

Relay Prep.

Mirror Prep.

Final Build

FIFO

FIFO

FIFO

Semi Prep.

Optic & Test Cell 1

Optic & Test Cell 2

Packing & shipping

Shipping Goods


Future Value Stream MapFuture Value Stream Map

Mechanical Assembly

6

1 CellC/T=22.8 minYield = 90%

Stock Room

Internal warehouse

External Vendors

Finished Goods

Productcontrol

Daily updateQuarterly

request

1.5 days

22.8 min

0.35 days

167 min

2.7 days

28 min

0.67 days

Opti &test Assembly

7

3 CellC/T=167 minYield = 92%

Packaging

3


DailyX 3

Finished

FIFO

150 pcs

FIFO

4 goods

Uptp 2 shifts

Rejects

1.85 days 0.68 days 0.35 days



Mechanical Assembly

6


Stock Room

Internal warehouse

External Vendors

Finished Goods

Productcontrol


request

1.5 days

22.8 min

0.35 days

167 min

2.7 days

28 min

0.67 days

Opti &test Assembly

7


Packaging

3


DailyX 3

Finished

FIFO

150 pcs

FIFO

4 goods

Uptp 2 shifts

Rejects



5.57 days

Processing Time

217.8 min



Mechanical Assembly

6


Stock Room

Internal warehouse

External Vendors

Finished Goods

Productcontrol


request

1.5 days

22.8 min

0.35 days

167 min

2.7 days

28 min

0.67 days

Opti &test Assembly

7


Packaging

3


DailyX 3

Finished

FIFO

150 pcs

FIFO

4 goods

Uptp 2 shifts

Rejects


Combine test tasks

Implement E-datasheet

Reduce Sealing C/T <6.9 min

Develop control labels


Improve the Loop

•• Develop continuous flow cells operating Develop continuous flow cells operating at at TTaktakt timetime

•• Establish a pull system Establish a pull system –– replace replace schedulesschedules

•• Introduce leveling Introduce leveling –– load and mixload and mix•• Practice kaizen continuouslyPractice kaizen continuously

Eliminate wasteEliminate wasteReduce batch sizesReduce batch sizesShrink supermarket WIPShrink supermarket WIPExtend range of continuous flowExtend range of continuous flow


Common Objectives for Loops

•• Develop level load mechanism / systemDevelop level load mechanism / system•• Continuous flowContinuous flow•• Balance line / reduce cycle timeBalance line / reduce cycle time•• Reduce changeover time / batch sizeReduce changeover time / batch size•• Improve uptime, e.g. TPMImprove uptime, e.g. TPM•• Set up pull & / or supermarketSet up pull & / or supermarket

Internal & / or vendorInternal & / or vendor


Common Goals for Loops

•• Reduce nonReduce non--value added activitiesvalue added activities•• Cross train staffCross train staff•• Train kaizen teamsTrain kaizen teams•• Reduce / eliminate cell WIP Reduce / eliminate cell WIP

inventoryinventory


Cost Factors

•• Inventory value %Inventory value %•• Expediting costs & /or on time deliveryExpediting costs & /or on time delivery•• LaborLabor•• Floor spaceFloor space•• Time cost of moneyTime cost of money

One time vs. ongoing One time vs. ongoing DCF % rateDCF % rate


Prepare Future State Plan

•• Prepare draft implementation plan for each Prepare draft implementation plan for each future state mapfuture state map

Objective, actions, responsible person, timing, Objective, actions, responsible person, timing, resources required, quantify costs & benefitsresources required, quantify costs & benefits

•• Review draft plans withReview draft plans withPersons assigned actionsPersons assigned actionsManagement teamManagement team

•• Finalize priorities and plans with full team Finalize priorities and plans with full team •• Plan the kickoffPlan the kickoff


Yearly Value Stream PlanG

antt

Cha

rt

Date:Supervision: Manager Cell Engineering MaitenaneManager:

Product-Family

V.S. Loop Objective Goal

(measurable) 1 2 3 4 5 6 7 8 9 10 11 12 Measurement Date

Improve Profitability in Brackets

1

Lean Manufacturing Yearly Value Stream PlanSignatures

Yearly Value Stream Plan

Product Family:

Review schedule

2

3

4

Zero WIP < 168s

< 30 s C/O


Lean Value Stream Support & Monitoring

Value stream manager / championValue stream manager / champion•• Progress reviewProgress review

Regularly scheduledRegularly scheduledFormally plan new effortsFormally plan new effortsAdvertise progress Advertise progress Solicit informal reports from usersSolicit informal reports from usersBe flexible, plans evolveBe flexible, plans evolve


Review FormDate:Supervision:Manager:

Plant-Level Objective V.S. Loop

Objective & Measurement

Goal

Progress Condition Evaluation Remaining Problems

O= success X = unsuccessful Product Family:

SignaturesValue Stream Review

Lean Manufacturing Implementation Review Form

Points and ideas for coming year's objectives

Δ = Limited success


Management Responsibilities

Management roleManagement roleLearn, apply, and teachLearn, apply, and teachLead by walking the talkLead by walking the talk

TasksTasksEliminate overproduction Eliminate overproduction –– plant wide plant wide takttakt timetimeEncourage a try, fail, and learn cultureEncourage a try, fail, and learn culturePersonal time budget for lean value streamPersonal time budget for lean value streamIndirect support functionsIndirect support functions

Support direct functions @ Support direct functions @ TTaktakt and pitch timeand pitch time


Lean Value Stream Support Systems

•• Change focus from departments to product Change focus from departments to product teamsteams

•• Measure performance on lean principlesMeasure performance on lean principlesSpace, inventory, lead time, defects, missed Space, inventory, lead time, defects, missed shipmentsshipments

•• Incorporate into normal business processesIncorporate into normal business processesBudgetingBudgetingProduction performanceProduction performancePersonnel appraisalPersonnel appraisal

•• Continuous improvementContinuous improvement


VSM Implementation Summery

•• Identify vs. loopsIdentify vs. loops•• Document action items and goalsDocument action items and goals•• Prioritize loops and sequencePrioritize loops and sequence•• Document implementation planDocument implementation plan•• Communicate plan to businessCommunicate plan to business•• Kick offKick off•• Monitor progressMonitor progress


VSM Wrap-up

PRODUCT FAMILY

CURRENT-STATE DRAWING

FUTURE-STATE DRAWING

WORK PLAN AND IMPLEMENTATION


Value Stream Mapping

LetLet’’s get started!!!s get started!!!

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