VSM001 Value Stream Mapping
Value Stream Mapping Day 1
Value
Mapping Stream
1
VSM001 Value Stream Mapping
Introductions Jan Vlasak
2
VSM001 Value Stream Mapping
Agenda • Current State Map • Future State Map • Value Stream Plan
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VSM001 Value Stream Mapping
Agenda Day 1: Topic/Activity Opening Introduction Goals of Workshop Review of Lean Principles Break Introduction to Value Stream Current State Map Exercise 1 – Customer Loop Lunch Report-outs Exercise 2 – Internal Loop Report-outs Break Exercise 3 – Supplier Loop Current State Report-outs Opportunities In Future State Example Future State Map Adjourn
Time 8:00 AM 8:15 AM 8:30 AM 8:35 AM 9:00 AM 9:20 AM 10:05 AM 11:00 AM 12:00 AM 12:45 PM 1:00 PM 2:25 PM 2:40 PM 2:55 PM 3:45 PM 4:05 PM 5:00 PM 5:45 PM 4
VSM001 Value Stream Mapping
Agenda Day 2: Topic/Activity Introduction Day 2
Time 8:00 AM
Exercise 4 – Customer Loop
8:15 AM
Break
9:30 AM
Report-outs
9:45 AM
Exercise 5 – Internal Loop
10:00 AM
Report-outs
11:45 AM
Lunch
12:00 AM
Exercise 6 – Supplier Loop
12:45 PM
Obstacles
1:30 PM
Value Stream Plan
2:00 PM
Exercise 7 - VSP
2:15 PM
Final Report-outs Break
3:00 PM 3:45 PM
The Value Stream Team
4:00 PM
Closing Comments
4:15 PM 5
VSM001 Value Stream Mapping
Company Strategy
• Growth • Competitive Position
6
VSM001 Value Stream Mapping
Cost Reductions • Customer Price • Labor Inflation • Increase Earnings
7
VSM001 Value Stream Mapping
Keys to Lean Production • Work Place Organization • JIT Production • Six Sigma Quality • Empowered Teams • Visual Management • Pursuit of Perfection
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VSM001 Value Stream Mapping
Key Factors for Lean Success • Strategic Vision • Strong Line Management Leadership • Expert Training and Support • Aggressive Performance Targets and Tracking • Impatience
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VSM001 Value Stream Mapping
“Becoming the Best” • The Answer; • Develop a Deep Understanding of Our Processes at their Broadest Levels and Not Just Continue to Improve Individual Work Units • Working Together to Add Value to our Company
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VSM001 Value Stream Mapping
Our Needs • Tools to Support Linkages Between Processes • Emphasis on Processes and Systems • Horizontal Organization Based on Teamwork • Leadership and Followership • Commitment and Involvement
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VSM001 Value Stream Mapping
Performance • Operational Performance Determines Financial Results • Lean Enterprise Is the Key to Successful Operational Performance
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VSM001 Value Stream Mapping
The AM of Tomorrow • Complete Understanding of Lean Principles • Commitment and Discipline to Live by these Principles • Sense of Urgency to Exceed the Targets and Deadlines • Commitment to Strive for Perfection
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VSM001 Value Stream Mapping
Potential Benefits • Inventory Reduction • Quality Improvement • Productivity Improvement
• 12% Reduction in Overall Cost
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VSM001 Value Stream Mapping
Why are we Here?
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VSM001 Value Stream Mapping
Goals of the Workshop • L earn to See • E stablish a Plan • A ct on Opportunities • D rive Change • E nable Teams • R educe Lead Time
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VSM001 Value Stream Mapping
Think Lean
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VSM001 Value Stream Mapping
Waste • Waste is Only the Symptom of a Deeper Problem • Focus on the Source Rather than the Symptom
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VSM001 Value Stream Mapping
Overproduction Parts Parts Parts
Parts
Parts Parts
Parts
Parts
• Definition: • Producing More than Needed • Producing Faster than Needed
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VSM001 Value Stream Mapping
Takt Time
Available Work Time Customer Demand
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VSM001 Value Stream Mapping
One Piece Flow Make One, Move One!!!
Process Process Process Process A B C D
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VSM001 Value Stream Mapping
Pull System “Production” KANBAN
“Withdrawal” KANBAN
Customer Process
Supplying Process Product
Product
Supermarket
22
VSM001 Value Stream Mapping
Selecting the Point of Pull P O P
Process A
Process B
Process C
Process D
FLOW 23
VSM001 Value Stream Mapping
Why Small Lots? • Drive C/O Time Reduction • Flexibility • Reduce Inventory • Reduce Lead Time
24
VSM001 Value Stream Mapping
Leveling
25
VSM001 Value Stream Mapping
A Brief Introduction to
Value
Mapping Stream
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VSM001 Value Stream Mapping
The Improvement Process • Employee Involvement • Training and Development • Model Work Unit • 20 Keys Assessment • Traditional • Learning • Leading • World Class • Best in Class
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VSM001
Results
Value Stream Mapping
Improvement on all work units since introduction of the AM Performance System
Factor Improvement PPM .…………………………….. 91.3 % Scrap ……………………………. 57.6 % Training hrs./Employee ………...182.2 % Suggestions/employee ……..…. 347.5 % Labor cost % of sales ……….… 36.4 % WIP hours ………………………. 91.6 % Changeover time …………….… 72.5 % Lead time ……………………….. 87.0 % 28
VSM001 Value Stream Mapping
Production Space = 30% Entrance
R Cut
Draw
Draw
Operator 1 Operator 2
Exit
F/A
Spin
Spin
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VSM001 Value Stream Mapping
Opportunities = 70%
30
VSM001 Value Stream Mapping
Why???
•Opportunities in Work Units Vs. •Opportunities between Work Units
31
VSM001 Value Stream Mapping
F L O W
Stamping C/T = 4 Sec.
Sub-Assembly C/T = 60 Sec.
Final Assembly C/T = 60 Sec. 32
VSM001 Value Stream Mapping
The Next Chapter in AM’s Success Story
Value Stream Mapping
33
VSM001 Value Stream Mapping
What is a Value Stream? All the Actions Involved in Making a Part
34
VSM001 Value Stream Mapping
Establishing Flow
Information
Production Flow Material
35
VSM001 Value Stream Mapping
Elimination of Waste A Broadened Perspective
• Identify and Target the Source of Waste in the Entire Value Stream, rather than Just the Work Unit
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VSM001 Value Stream Mapping
Adding Value
• Establishing the Vision • Reducing the Lead Time
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VSM001 Value Stream Mapping
Benefits of Value Stream Mapping
• Big Picture Approach • Links Material/ Information Flow • Team Growth
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VSM001 Value Stream Mapping
Visionary Tool • Planning • Communication • Implementation
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VSM001 Value Stream Mapping
The Current State Map
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VSM001
Sub-Assembly
Supplier
Stamping
Value Stream Mapping
Finished Goods Inventory C/O Time
Down Time
Takt Time
Customer
Assembly 41
VSM001 Value Stream Mapping
The Future State Map
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VSM001 Value Stream Mapping
A Lean Stream!!! Sub-Assembly Cycle Time
C/O Time
Stamping
Finished Goods Inventory
Down Time
Final Assembly
43
VSM001 Value Stream Mapping
Annual Value Stream Plan • This Plan Visually Displays: • Step-by-Step Implementation Plan • Measurable Goals • Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers
• The Value Stream Plan will Play a Fundamental Role in the Optimization of your Value Stream
44
VSM001 Value Stream Mapping
Management’s Role • See Overall Flow • Develop the Vision • Lead Implementation • Support EI Teams
• Make Sure Everyone Understands!
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VSM001 Value Stream Mapping
Management’s Commitment
• Eliminate Overproduction • Support Lean Principles • Willingness to Take Risks
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VSM001 Value Stream Mapping
“Whenever there is a product for a customer there is a value stream The challenge lies in seeing it�
AM
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VSM001 Value Stream Mapping
The Current State Map
Practice Makes Perfect
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VSM001 Value Stream Mapping
It’s Time to Practice
• At this Time Please Read through the Example Data Set for General Exhaust • We will Begin Drawing the Example Current State Map in Just a Few Minutes
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VSM001 Value Stream Mapping
Data Set for General Exhaust •
Customer • General Auto
•
Customer Information • 20,000 pieces per month • Container size = 300 pieces • Customer operates on two shifts • Two deliveries to customer per week
• General Auto
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VSM001 Value Stream Mapping
Data Set for General Exhaust (continued)
•
General Exhaust Production Control Department • Electronically receives General Auto’s 13 week forecast and enters into MRP • Electronically issues 13 week forecast to General Components • Receives daily firm order fax from General Auto • Secures components through daily fax to General Components • Generates daily departmental schedule based on MRP
51
VSM001 Value Stream Mapping
Data Set for General Exhaust (continued)
• Production Process: • Sub-Assembly 1
Sub-Assembly 2
Final Assembly
• Work Time: • 20 Days per months • 2 shifts in all production departments • 8 hours per shift • 2 ten minute breaks per shift and unpaid lunch
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VSM001
Data Set for General Exhaust (continued)
Value Stream Mapping
• Final Assembly • 3 operators • Takt Time = 55.2 seconds • Cycle Time = 55 seconds • Total Work Content = 146 seconds • Changeover Time = N/A • Uptime = 85% • Observed Inventory
• .75 Days work in progress • 3.5 Days finished goods • Shipped to truck from final assembly finished goods 53
VSM001 Value Stream Mapping
Data Set for General Exhaust (continued)
•
Sub-Assembly 2 • 3 operators • Takt Time = 55.2 seconds • Cycle Time = 55 seconds • Total Work Content = 130 seconds • Changeover Time = N/A • Uptime = 90% • Observed Inventory
• .5 Days work in progress • 1 Day finished goods
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VSM001 Value Stream Mapping
Data Set for General Exhaust (continued)
•
Sub-Assembly 1 • 1 Operator • Takt Time = 27.6 seconds • Cycle Time = 24 seconds • Total Work Content = 24 seconds • Changeover Time = 30 minutes • Uptime = 97% • Observed Inventory
• 2 days raw material • .25 days work in progress • 1 day finished goods 55
VSM001 Value Stream Mapping
Data Set for General Exhaust (continued)
•
Supplier • General Components
•
Supplier Information • Stampings • Delivery to General Exhaust
• (1) time per day • Container size = 300 pcs • Two shift operation
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VSM001 Value Stream Mapping
Always Start With the Customer!!! Work Upstream from There
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VSM001 Value Stream Mapping
What to Look For... • Information Flow from the Customer • Forecasts • Firm Order
• Instruction to Produce • Movement of Material • Inventory • Future Opportunities!
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VSM001 Value Stream Mapping
Exercise 1: Customer Loop • Walk through the Entire Process (Upstream) • Sketch Value Streams for the Customer Loop • Gather Data for the Customer Loop Worksheet • Capture Information Flow • Return to Room
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VSM001 Value Stream Mapping
Worksheet Exercise 1: Customer Loop
1. Who are the customers and where are they located? 2. How many pieces does the customer require per month? 3. What is our delivery frequency? 4. What is the container size (pieces per container)?
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VSM001 Value Stream Mapping
Worksheet Exercise 1: Customer Loop
5. How many shifts does the customer run? 6. In detail, describe how customer orders are placed (Kanban, MRP, forecasts, firm orders, etc.) 7. Where is the point of pull? 8. How much finished goods inventory did you find (count it!)?
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VSM001 Value Stream Mapping
Worksheet Exercise 1: Customer Loop
9. Does any safety or buffer stock exist?
10. How is buffer and safety stock distinguished from finished goods inventory?
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VSM001 Value Stream Mapping
11. Map the Material and Information Flow
Customer Loop
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VSM001 Value Stream Mapping
Report Outs
Customer Loop
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VSM001 Value Stream Mapping
What We’ve Accomplished • Understanding Customer Requirements • Established Current State of Information and Material Flow • Have Started to Think About Future Opportunities
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VSM001 Value Stream Mapping
Internal Loop • Tie the Customer Loop to Internal Processes • Establish the Relationship between Internal Processes
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VSM001 Value Stream Mapping
What to Look For... • Define Plant Level Processes • Data Box Information • Takt Time, # of Operators, C/O Time, Work Unit Cycle Time, Total Work Content, Uptime %, # of Shifts, Available Operating Time
• Capture All Inventory • What Initiates Production? • Future Opportunities!
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VSM001 Value Stream Mapping
Exercise 2: Internal Loop • If Needed, Walk through the Entire Process (Upstream) • Sketch Value Streams for the Internal Loop • Gather Data for the Internal Loop Worksheet • Capture Information Flow • Return to room
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VSM001 Value Stream Mapping
Worksheet Exercise 2: Internal Loop
1. Define the processes involved in the production of the part from a plant level (bird’s eye) perspective. Ex. Stamping Work Unit Sub-Assembly Final Assembly
2. For each of the plant level processes find the Takt Time, # of Operators, Work Unit Cycle Time, Total Work Content, Changeover Time, Uptime %, Number of Shifts, Available Operating Time (in seconds).
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VSM001 Value Stream Mapping
Worksheet Exercise 2: Internal Loop
3. For each of the plant level processes count and calculate the finished goods, work in progress, and raw materials inventory.
4. How do the production work units know when and what to produce? (Be very specific about this process)
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VSM001 Value Stream Mapping
5. Map the Material and Information Flow
Internal Loop
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VSM001 Value Stream Mapping
Report Outs
Internal Loop
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VSM001 Value Stream Mapping
What We’ve Accomplished • Understand Relationship between Internal Processes • Current State of Information and Material Flow • Identified Future Improvement Opportunities
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VSM001 Value Stream Mapping
Supplier Loop • Tie Internal Loop to Supplier • Understand Flow of Information and Material
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VSM001 Value Stream Mapping
What to Look For... • Capture All Inventory • Establish Current Information and Material Flow • From Storage to the Work Unit • From Supplier to Storage
• Understand Raw Material and Component Requirements • Future Opportunities!
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VSM001 Value Stream Mapping
Exercise 3: Supplier Loop • If Needed, Walk through the Entire Process (Upstream) • Sketch Value Streams for the Supplier Loop • Gather Data for the Supplier Loop Worksheet • Capture Information Flow • Return to Room
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VSM001 Value Stream Mapping
Worksheet Exercise 3: Supplier Loop 1. Supplier Info? Supplier
Part #
# of Shifts
Delivery Frequency
Amount of Supplier Inventory
Quantity per Container
Additional Comments: 77
VSM001 Value Stream Mapping
Worksheet Exercise 3: Supplier Loop
2. Describe in detail how we decide we need more material and how we inform our supplier of our needs (MRP, Kanban, Forecasts, Firm Orders).
3. How do we decide how much raw material inventory we need?
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VSM001 Value Stream Mapping
4. Map the Material and Information Flow
Supplier Loop
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VSM001 Value Stream Mapping
Report-Outs
Current State Map (Putting It All Together)
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VSM001 Value Stream Mapping
The Future State Map
Practice Makes Perfect
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VSM001 Value Stream Mapping
It’s Time to Practice • Please Review the Example Current State Map • We will Begin Drawing the Future State Map Shortly
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VSM001 Value Stream Mapping
Opportunities in Containerization • Small Container Quantity • Increases Flexibility • Reduces Customer Fluctuation
• Overall Benefit • Reduces Inventory Dollars
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VSM001 Value Stream Mapping
Takt Time
Takt Time =
Available Operating Time Pieces
=
28,800” - 1,200” 500 pcs
=
55.2” per piece
Sets Pace of Production to Match Customer Demand 84
VSM001 Value Stream Mapping
Effects of Container Size • Current State Example (takt time * container size) = min per container
60 seconds (55.2� * 300 pieces)
276 minutes
60 seconds
60 minutes
(4 hrs 36 m)
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VSM001 Value Stream Mapping
Effects of Container Size • Future State Example (takt time * container size) = min per container
60 seconds (55.2� * 25 pieces) = 23 min 60 seconds
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VSM001 Value Stream Mapping
Container Size
Small Containers = Improved Flexibility
Delivery Frequency
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VSM001 Value Stream Mapping
Fluctuation Caused by Container Size 1300 1250 1200 1150 1100 1050 1000 950 900 850 800
Produce Order
0
1
2
3
4
5
6
7
8
9
10 11 12 13 88
VSM001 Value Stream Mapping
Fluctuation Caused by Container Size 1300 1250 1200 1150 1100 1050 1000 950 900 850 800
Produce Order
0
1
2
3
4
5
6
7
8
9
10 11 12 13
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VSM001 Value Stream Mapping
Opportunities in Delivery Pitch
• Even Delivery Pitch • Drives Constant Takt Time • Reduces Fluctuation
• Overall Benefit • Reduction in Inventory
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Time between shifts Pick-Up (2,500 pcs/truck) 7:00 am Wednesday 7:00 am Friday
Truck 1 = 2,760’
= 66.24”
Takt
460 min
460 min
460 min
400 min
460 min
460 min
460 min
400 min
460 min
T
W
60 min
Truck 2 = 1,840’ = 110,400”
460 min M
= 165,600” Takt
Value Stream Mapping
Th
= 44.16”
F
60 min
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VSM001 Value Stream Mapping
Opportunities in Kanban • Pull System • Links Production to Customer Demand • Aids in Visual Control • Identifies Opportunities for Improvement
• Overall Benefit • Improves Material Control • Prevents Overproduction • Reduces Inventory
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VSM001 Value Stream Mapping
Pull System “Production” KANBAN
“Withdrawal” KANBAN
Customer Process
Supplying Process Product
Product
Supermarket
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VSM001 Value Stream Mapping
Selecting the Point of Pull P O P
Process A
Process B
Process C
Process D
FLOW 94
VSM001 Value Stream Mapping
Opportunities in Leveling • Leveling Post • Reduces Customer Demand Fluctuation • Reduces Delivery Pitch Fluctuation • Pulls Product Based on Takt Time
• Overall Benefits • Eliminates Scheduling • Levels Customer Demand
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VSM001 Value Stream Mapping
Forecast
1 Part A 5300 Average 5000 Difference 300 Week
2 4700 5000 -300
3 5200 5000 200
4 4800 5000 -200
Average
5000
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VSM001 Value Stream Mapping
Customer Fluctuation 5400
Part A Average
5200 5000 4800 4600 0
1
2
3
4
5
week
97
VSM001 Value Stream Mapping
Leveling Post Average 1000
Avail. Sec 55,200
Takt Time 55.2
Container Size 25
# Containers 40
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Buffer Part A
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VSM001 Value Stream Mapping
Opportunities in Takt Time Production • Takt Time Post • Produce to Takt Time • Enables Visual Management • Prevent Overproduction
• Overall Benefits • Identifies Labor Opportunities • Lowers Inventory • Eliminates Scheduling
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VSM001 Value Stream Mapping
Takt Time Post 6 1st Shift 0 0
6 0 6
6 1 2
6 1 8
6 2 4
6 3 0
6 3 6
6 4 2
6 4 8
6 5 4
7 0 0
7 0 6
7 1 2
7 1 8
7 2 4
7 3 0
Part A
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VSM001 Value Stream Mapping
Opportunities in the Work Units • Uptime • TPM • BOS Charting • Team Problem Solving
• Overall Benefits • More Capable Processes • Employee Involvement
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VSM001 Value Stream Mapping
Track Downtime and Improvement Activities on BOS Chart
Key Measurable
Improvement Activities
Data Analysis
Improvement Tracking
– Target – Trend Line
– Pareto
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VSM001 Value Stream Mapping
Opportunities in and between Work Units • Continuous Improvement Tools • Standardized Work • Work Balance • Bottleneck Improvements
• Overall Benefits • Adding Value/ Removing Waste • Improving Flexibility
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VSM001 Value Stream Mapping
Work Balance Current State
Sub-Assembly 2
Final Assembly 60
60
50
50
40
40
Walk
30
wait
30
Walk
20
20 Manual
10 0
Manual
10 0
1
2
3
1
2
3
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VSM001 Value Stream Mapping
Work Balance Future State
Final Assembly 60 50 40 30 20 10 0
Walk Manual
1
2
3
4
5 105
VSM001 Value Stream Mapping
Opportunities in and between Work Units • Pull System • Withdraw Only What you Need • Replenish What is Taken
• Overall Benefits • Flexibility in Production • Prevents Overproduction • Reduces Inventory
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VSM001 Value Stream Mapping
Pull System Assumptions: • Production Schedules Will Always Change •
Production Will Never Go According to Schedule
•
It Is Human Nature to Overproduce
Withdrawal Kanban
Production Kanban Preceding Process
Store
New Product
Following Process
Needed Product
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VSM001 Value Stream Mapping
Opportunities in and between Work Units • Changeover • Decrease Changeover Time • Increase # of Changeovers • Drive Small Lot Production
• Overall Benefits • Flexibility in Production • Reduction in Inventory • Better Inventory Turns
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VSM001 Value Stream Mapping CHANGEOVER Work Unit__________ SHIFT_____ AVG.
GOAL
18.0
16.0
14.0
MINUTES
12.0
10.0
8.0
6.0
4.0
2.0
17
18
19
20
21
22
25
16
24
15
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
10.0
23
14
12
11
10
9
9
8
8
7
7
6
5
4
3
2
13
LAST
1996 YTD MO
1
LAST MO
YTD
1996
-
DAY
1
2
3
4
5
6
C/O #1 C/O #2 C/O #3 C/O #4 C/O #5 C/O #6 C/O #7 C/O #8 AVG. 16.3 14.7 13.2 18.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 GOAL
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VSM001 Value Stream Mapping
Type of Activity
PLANT EXERCISE
No. Description
VIDEO TAPE ANALYSIS
Start Time of Activity H/M/S
End Time of Activity H/M/S
Activity Described
1 2 3 4 5
Elapsed Time for Activity Seconds
Can be made ext. immediately Obvious waste - remove immediately Transfer to ext. after improvements Adjustment activity Remaining activity for Continuous Improvement
Check Type of Activity 1
2
3
4
Proposed Solution
Resulting Elapsed Time
5
110
3
6
3
1
Value Stream Mapping
6 Game Board
5
Supply Table
2
VSM001
4 5
4 2
1 Tool Storage
Die Storage
Dance Chart Example
Paper Storage 111
VSM001 Value Stream Mapping
Opportunities in the Supplier Loop
• Supplier Development • Identify Key Suppliers • Reduce Container Size • Increase Delivery Frequency • Kanban!!!
• Overall Benefit • Inventory Reduction • Cost Reduction
112
VSM001 Value Stream Mapping
The Future State Map
It is Time To Draw
113
VSM001 Value Stream Mapping
Value Stream Mapping Day 2
Value
Mapping Stream
114
VSM001 Value Stream Mapping
Exercise 4: Customer Loop • Step 1 • Review Takt Time Calculation
• Step 2 • Opportunities with Containerization
• Effect of Container Time • Fluctuation due to Container Quantity • Future State Proposal for Container Quantity
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VSM001 Value Stream Mapping
Exercise 4: Continued • Step 3 • Opportunities with Customer Pull Timing
• Identify Delivery Pitch • Calculate Inventory Held Due to Pitch • Future State Delivery Frequency/Timing
• Step 4 • Opportunities with Leveling
• Calculate Leveling Post • Develop Point of Pull • Future State Leveling System 116
VSM001 Value Stream Mapping
Exercise 4: Continued
• Step 5 • Opportunities in Takt Time Production
• Determine Kanban Delivery Frequency to Cell • Future State Takt Time Post
• Step 6 • Map the Future State Customer Loop
117
VSM001 Value Stream Mapping
Worksheet 1 Takt Time Calculation
1. Formula:
Takt Time =
Available Operating Time Pieces
2. Takt Time Results:
118
VSM001 Value Stream Mapping
Worksheet 2 Opportunities with Containerization
1. Effect of container time:
2. Fluctuation due to container quantity (Graph):
3. Future state proposal for container quantity
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VSM001 Value Stream Mapping
Worksheet 3 Opportunities with Customer Pull Timing
1. Identify delivery pitch:
2. Calculate inventory held due to pitch:
3. Future state delivery frequency and timing:
120
VSM001 Value Stream Mapping
Worksheet 4 Opportunities with Leveling
1. Calculate leveling post:
2. Develop point of pull:
3. Future state leveling system:
121
VSM001 Value Stream Mapping
Worksheet 5 Opportunities in Takt Time Production
1. Determine kanban delivery frequency to the work unit:
2. Future state takt time post:
122
VSM001 Value Stream Mapping
Worksheet 6 Map the Future State Customer Loop
123
VSM001 Value Stream Mapping
Report-Outs
Future State Map Customer Loop
124
VSM001 Value Stream Mapping
Exercise 5: Internal Loop • Step 1 • Are BOS Charts Being Used? • Identify the Main Causes of Downtime • What Steps Can We Take to Achieve Best-in-Class Levels of Uptime (97%)?
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VSM001 Value Stream Mapping
Exercise 5: Continued • Step 2 • Identify Manual and Walk Time • Identify any Bottlenecks • Calculate Labor Requirements • Does this Labor Requirement Reflect what You Witnessed on the Line? • Do Opportunities Exist to Combine Work Units in the Value Stream Based on Labor Requirements?
126
VSM001 Value Stream Mapping
Exercise 5: Continued • Step 3 • Map the Future State Internal Loop
127
VSM001 Value Stream Mapping
Worksheet 1 Uptime %
1. Are BOS charts being used? 2. Identify the main causes of downtime:
3. What steps can we take to achieve Best-in-Class levels of uptime (97%)?
128
VSM001 Value Stream Mapping
Worksheet 2 Standardized Work 1. Identify manual and walk time: 2. Identify any bottlenecks: 3. Calculate the labor requirements: 4. Does this labor requirement reflect what you witnessed on the line? 5. Do opportunities exist to combine work units in the value stream based on labor requirements? 129
VSM001
Worksheet 3 Map the Future State Internal Loop
Value Stream Mapping
130
VSM001 Value Stream Mapping
Report-Outs
Future State Map Internal Loop
131
VSM001 Value Stream Mapping
Exercise 6: Supplier Loop • Step 1 • Opportunities with Kanban • Are Parts Ordered Based on Usage? • Are Supplier Kanbans Being Used to Order Parts? • Are Move Cards Used to Deliver Raw Materials to the Work Units?
• Step 2 • Opportunities with Delivery Frequency • Can Inventory be Reduced with an Increase in Delivery Frequency?
132
VSM001 Value Stream Mapping
Exercise 6: Continued • Step 3 • Opportunities with Containerization • Do Component Container Sizes Match Finished Goods Container Size?
• Step 4 • Map the Future State Supplier Loop
133
VSM001 Value Stream Mapping
Worksheet 1 Kanban
1. Are parts ordered based on usage? 2. Are Supplier Kanbans being used to order parts?
3. Are move cards used to deliver raw materials to the work unit?
134
VSM001 Value Stream Mapping
Worksheet 2 Delivery Frequency and Containerization
1. Can inventory be reduced with an increase in delivery frequency?
2. Do component container sizes match finished goods container sizes.
135
VSM001
Worksheet 3 Map the Future State Supplier Loop
Value Stream Mapping
136
VSM001 Value Stream Mapping
Report-Outs
Future State Map Supplier Loop
137
VSM001 Value Stream Mapping
Understanding the Future State Drawing the Map
• Put Pencil to Paper!!! • Remember: • Start with the Customer • Include Material and Information Flows • Data Boxes!!!
138
VSM001 Value Stream Mapping
Report-Outs
Future State Map (Putting Opportunities Together)
139
VSM001 Value Stream Mapping
Implementation
Making the Future State a Reality
140
VSM001 Value Stream Mapping
Continuous Improvement Cycle • Plan • Developing the Improvement Plan
• Do • Support the Implementation
• Check • Analyze the Results
• Act • Standardize the Process
141
VSM001 Value Stream Mapping
How Do We Implement?
• Break Implementation Into Steps • Customer Loop • Internal Loop • Supplier Loop
142
VSM001 Value Stream Mapping
...How Do We Implement...
• Develop Implementation Packet • Current State Map • Future State Map • Supporting Documentation (Standard Work Studies, etc.) • Value Stream Plan
143
VSM001 Value Stream Mapping
Value Stream Plan • The Plan Visually Displays: • Step-by-step Implementation plan • Measurable Goals • Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers
144
VSM001 Value Stream Mapping
Key Points for Planning • Produce to Takt Time • Eliminate Overproduction
• Pull Product Based on Customer Demand • Kanban • Point of Pull • Leveling
• Establish Continuous Flow
145
VSM001 Value Stream Mapping
Outline the Plan • For Each Value Stream Loop • Establish the Objectives • Determine the Measurable Goal
146
VSM001 Value Stream Mapping
Plant Level Objective
Goal Reduce lead-time
Measurable 9 Days to 4 Days
147
VSM001 Value Stream Mapping
Customer Loop
Goal
Measurable
Decrease Container Quantity
300 Pieces to 25 Pieces
Increase Delivery Frequency
2 per Week to 1 per Day
Finish Goods Pull System Inventory
1.75 Days of F/G
148
VSM001 Value Stream Mapping
Internal Loop
Goal
Measurable
Increase Uptime %
Best in Class - 97%
Establish Continuous Flow
(0) Inventory Between Work Units
Reduce Changeover Time
(30) to (15) Minutes
Internal Pull System
Production/Move Cards
149
VSM001 Value Stream Mapping
Supplier Loop
Goal
Measurable
Implement Kanban
Supplier Cards
Increase Delivery Frequency
4 times per Day
Decrease Container Quantity
300 Pieces to 25 Pieces
150
VSM001
Yearly Value Stream Plan
Date: Champion:
Plant-Level Objective
Value Stream Loop Loop
Value Stream Objective
Goal (Measurable)
Specific Scheduling Deadlines (on Monthly Basis)
Value Stream Mapping
Product Family:
Owner
Reviewer and Review Dates
1 2 3 4 5 6 7 8 9 10 11 12
1 Customer
2 Internal
3 Supplier
151
VSM001 Date: 10/29/99 Champion: Bill Green
Plant-Level Objective
Yearly Value Stream Plan Value Stream Loop
Value Stream Objective
Goal (Measurable)
Loop
Reduce Finished Goods Inventory
1 Customer
2 Internal
3 Supplier
Specific Scheduling Deadlines (on Monthly Basis)
Value Stream Mapping Product Family: Sub-Muffler Owner
Reviewer and Review Dates
1 2 3 4 5 6 7 8 9 10 11 12 Dec Cont. Qty.
300 to 25
Inc. Del. Freq.
2 /wk to 1/D
FG Pull System
1.75 Days Finished Goods
Inc. Uptime %
BIC 97%
Cont. Flow (S/A 2 to F/A)
0 Inv. Between work units
Reduce C/O Time
15 minutes
Int. Pull Sys.
Prod. Move Cards
Kanban
Supp. Cards
Inc. Del. Freq.
4/Day
Dec. Cont. Qty.
300 to 25
Gold Team
Joan Smith 2/28/00 4/15/00 5/29/00
Blue Team
John Doe 5/30/00 7/30/00 8/30/00
Red Team
Jim Smith 9/30/00 10/15/00 12/30/00 152
VSM001 Value Stream Mapping
Exercise 7: Value Stream Plan • Step 1 • Develop Value Stream Plan
• Step 2 • Discuss Roadblocks to Implementation • How Do We Eliminate Roadblocks
153
VSM001
Yearly Value Stream Plan
Date: Champion:
Plant-Level Objective
Value Stream Loop Loop
Value Stream Objective
Goal (Measurable)
Specific Scheduling Deadlines (on Monthly Basis)
Value Stream Mapping
Product Family:
Owner
Reviewer and Review Dates
1 2 3 4 5 6 7 8 9 10 11 12
1 Customer
2 Internal
3 Supplier
154
VSM001 Value Stream Mapping
Report-Outs
The Value Stream Plan (Putting Ideas Into Action)
155
VSM001 Value Stream Mapping
The Value Stream Team
Prepare the organization to see opportunities for improvement and turn those opportunities into reality
156
VSM001 Value Stream Mapping
Identify the Value Streams • End of the Chain • Completion of the final product • Next move is to the Customer
• Move Upstream • Identify the internal suppliers • Final step is supplied parts
157
VSM001 Value Stream Mapping
Choose the Model
• Practice Makes Perfect! • Begin with the less complicated • Move to the more difficult
158
VSM001 Value Stream Mapping
Establishing the Team • Selecting the Team • Who are the people in the value stream • What type of resources are required
• Function of the Team • Analyze Value Stream Together • Hold Frequent Meetings to Monitor Progress • Eliminate Obstacles Together
159
VSM001 Value Stream Mapping
Transfer the Knowledge • Start the Process
• Check Understanding
• Current State Map
• Clear Up Confusion
• Future State Map
• Get Commitment
• Develop the Plan
160
VSM001 Value Stream Mapping
Things to Remember • Benchmark the Current Condition • Dedicate the Resources • Monitor the Progress • Evaluate the Results • Celebrate Success • Continue the Pursuit of Perfection!!!
161
VSM001 Value Stream Mapping
Be Impatient!
162