05 - Chapter 2 _ the Value Stream.ppt

Engineering Management

MSE507

Lean Manufacturing

Chapter 2

The Value Stream

"Whenever there is a product for a customer, there is a

value stream. The Challenge lies in seeing it”

PHILIP (PHIL) M. CONDIT

"There is only one boss: the customer. And he can

fire everybody in the company, from the chairman

on down, simply by spending his money

somewhere else."

Samuel M. Walton Wal-Mart Stores, Inc.

Why Map A Value Stream?

 _{Lean Manufacturing is:}

the relentless elimination of waste

 _{Waste is using resource…}

…without adding value

Value Streams

 _{A Value Stream is the entire set of activities running from raw}

material to finished product for a specific product or product family

 _{In a typical enterprise, value streams can intersect with other}

Value Stream Maps

 _{Value Stream Maps are powerful visual tools to help see waste}

and understand the flow of material and information

• Especially powerful for illustrating the wastes of Overproduction, Idle Material & Transportation

 _{Value Stream Maps show all actions required to deliver a}

product…

Other Benefits Of VSM

 _{Provides a big picture perspective that helps focus on improving}

the whole process, not just optimizing bits and pieces

 _{Shows the linkage between the information flow and material}

flow

 _{Helps to see across the functional boundaries over which a}

Other Uses For VSM

 _{To help understand how your business actually works}

(you don’t understand the current process if you can’t draw it)  _{A tool for establishing a vision and implementation plan for a}

new business or product line

 _{A visual tool and common language for talking to others about}

Mapping Process

Product Family

Current State Drawing

Work Plan &

Implementation

Future State Drawing

Understand how the value

currently flows

Design a LEAN flow

Plan how to get there

and execute the plan

Value Stream Step 1

Create a Matrix

1 2 3 4 5 6

A X X X X X

B X X X X X X

C X X X X X

D X X X

E X X X

F X X X X

P

ro

du

ct

s

Assembly and Equipment

A Reminder

The point of value stream mapping is not the

maps, but to understand the flow of information

and material and see waste

...and then use that understanding and insight to

improve your process

Engineering Management

Value Stream Mapping

Current State Maps

The Current State Map

 _{A pictorial view, drawn with pencil and paper while observing}

the process on the factory floor, that shows how material and information currently flow

 _{Creates a baseline for future improvements to be measured}

against

 _{Clarifies understanding of how the current production system}

Example

Material Flow Information Flow

INVENTORY ICONS WITH PUSH ARROWS

Customer

PROCESS BOX ICONS

DATA BOX ICONS

- C/T time - C/O time - Up time - Scrap

28 days

15 sec

7.6

days days10 days7 days1.5 days3

395sec 501 sec

150 sec 60 sec

PLT = 57.1 days

PT = 18.7 minutes

Material Flow Icons

Assembly

XYZ Corporation

Data Box

C/O=30 min. C/T=45 sec.

3 Shifts. 2% Scrap

I

300 pieces 1 day

Inventory Supermarket

Shipment Push Finished Goods to Customer Physical

FIFO

First-In-First-Out Process

Box

Supplier/ Customer

Mon + Wed

Information Flow Icons

Manual Information Flow

Electronic Information Flow

Weekly Schedule

Schedule

OXOX

Load Leveling Box

Sequenced-Pull Ball

Withdrawal

Kanban Production_Kanban

Signal

General Icons

Uptime

Changeover

Kaizen Lightning Burst Operator

Buffer or Safety Stock

“Go See” Production

Value Stream Map - Acme Exercise

(Use the Handout Data Sheet)

 _{Use a pencil and small Post-it notes on 11” x 17” paper.}

 _{Use the following colors}

• BLUE - Process

• YELLOW - Inventory (tear in half)

• PINK - Master schedule / Production control

• GREEN - Supplier & Customer

 _{Fill in a Post-it notes for each process/data and symbol}

 _Remember

“Always start with the Customer”

 _{Build the map, leave enough room between process boxes to}

VSM - Acme Exercise

State Street Assembly

18400 pieces/month -12000- L

- 6400- R

Tray = 20 pieces

Step 1

State Street Assembly

500 ft coils

VSM - Acme Exercise

 _{Draw in process boxes and data.}

• Add a shipping box

18400 pieces/month -12000- L

- 6400- R

Tray = 20 pieces

Coils 5 days

I I I I I I

Stamping

4600 L 2400 R

S. Weld #1

C/O=1 hour

1

1 _{1 1}

S. Weld #2 Ass’y _#1 Ass’y _#2

1 Shipping Staging 1100 L 600R 1600 L

850R 1200 L_640R

2700 L 1440R C/T=1 sec Uptime =85% 27,600 sec. avail. C/T=39 sec Uptime = 100% 27,600 sec. avail. C/O=10 m C/T=46 sec Uptime = 80% 27,600 sec. avail. C/O=10 m C/T=62 sec Uptime = 100% 27,600 sec. avail.

C/O = 0

C/T=40 sec

Uptime = 100%

27,600 sec. avail.

C/O = 0

State Street Assembly

Steps 2 & 3

State Street Assembly

500 ft coils

VSM - Acme Exercise

 _{Draw in Customer and Suppliers delivery schedules and}

Steps 4 & 5

18400 pieces/month -12000- L

- 6400- R

Tray = 20 pieces 2 shifts

Coils 5 days

I I I I I I

Stamping

4600 L 2400 R

S. Weld #1

C/O=1 hour

1

1 _{1 1}

S. Weld #2 Ass’y _#1 Ass’y _#2

1 Shipping Staging 1100 L 600R 1600 L

850R 1200 L_640R

2700 L 1440R C/T=1 sec Uptime =85% 27,600 sec. avail. C/T=39 sec Uptime = 100% 27,600 sec. avail. C/O=10 m C/T=46 sec Uptime = 80% 27,600 sec. avail. C/O=10 m C/T=62 sec Uptime = 100% 27,600 sec. avail.

C/O = 0

C/T=40 sec

Uptime = 100%

27,600 sec. avail.

C/O = 0

Tues. &

Thurs. 500 ft coils

VSM - Acme Exercise

 _{Put in production control and schedules}

Step 6

Production Control

MRP

Weekly Schedule Daily Ship _Schedule

Daily Order 90/60/30 day forecasts 6 week forecast Weekly Fax 1x Daily Tues. & Thurs. 500 ft coils

Coils 5 days

I I I I I I

Stamping

4600 L 2400 R

S. Weld #1

C/O=1 hour

1

1 _{1 1}

S. Weld #2 Ass’y #1 Ass’y #2

1 Shipping Staging 1100 L 600R 1600 L 850R 1200 L 640R 2700 L 1440R C/T=1 sec Uptime =85% 27,600 sec. avail. C/T=39 sec Uptime = 100% 27,600 sec. avail. C/O=10 m C/T=46 sec Uptime = 80% 27,600 sec. avail. C/O=10 m C/T=62 sec Uptime = 100% 27,600 sec. avail. C/O = 0

C/T=40 sec

Uptime = 100%

27,600 sec. avail. C/O = 0

18400 pieces/month -12000- L

- 6400- R

VSM - Acme Exercise

Production Control MRP Daily Order 90/60/30 day forecasts 6 week forecast 1x Daily Tues. & Thurs. 500 ft coils

Coils 5 days

I I I I I I

Stamping

4600 L 2400 R

S. Weld #1

C/O=1 hour

1

1 _{1 1}

S. Weld #2 Ass’y #1 Ass’y #2

1 Shipping Staging 1100 L 600R 1600 L 850R 1200 L 640R 2700 L 1440R C/T=1 sec Uptime =85% 27,600 sec. avail. C/T=39 sec Uptime = 100% 27,600 sec. avail. C/O=10 m C/T=46 sec Uptime = 80% 27,600 sec. avail. C/O=10 m C/T=62 sec Uptime = 100% 27,600 sec. avail. C/O = 0

C/T=40 sec

Uptime = 100%

27,600 sec. avail. C/O = 0

18400 pieces/month -12000- L

- 6400- R

Tray = 20 pieces 2 shifts

State Street Assembly

Daily Ship Schedule

Step 7

VSM - Acme Exercise

 _{Draw production lead time/value-added timeline}

 _{Calculate production lead time for inventory triangles by}

dividing quantity of inventory by the customer daily requirement • This is a really neat trick! It turns a count of inventory into the

number of production days that inventory represents • Stamping / Weld

18,400 pieces/mo / 20 days = 920 pieces/day 920 / 16 hours (2 shifts) = 57.5 pieces/hour

7000 pieces (total Inv.) / 57.5 pieces/hour = 121.7 hours of Inv. 121.7 hours of Inv. / 16 hours = 7.6 days of Inventory

Finish the rest of the calculations.

 _{What is the inventory production lead time?}

Production Control MRP Daily Order 90/60/30 day forecasts 6 week forecast 1x Daily Tues. & Thurs. 500 ft coils

Coils 5 days

I I I I I I

Stamping

4600 L 2400 R

S. Weld #1

C/O=1 hour

1

1 _{1 1}

S. Weld #2 Ass’y #1 Ass’y #2

1 Shipping Staging 1100 L 600R 1600 L 850R 1200 L 640R 2700 L 1440R C/T=1 sec Uptime =85% 27,600 sec. avail. C/T=39 sec Uptime = 100% 27,600 sec. avail.

C/O=10 m C/T=46 sec

Uptime = 80% 27,600 sec. avail. C/O=10 m C/T=62 sec Uptime = 100% 27,600 sec. avail. C/O = 0

C/T=40 sec

Uptime = 100%

27,600 sec. avail. C/O = 0

18400 pieces/month -12000- L

- 6400- R

Tray = 20 pieces 2 shifts Daily Ship

Schedule

Step 7

Weekly ScheduleWeekly Schedule Weekly

Fax

5 days

1 sec

7.6

days days1.8 days2.7 days2 days4.5

40 sec 62 sec

46 sec

39 sec PLT = _{PT = 188} 23.6_sec. days

Acme Steering Bracket Line

3-15-2002 _{State Street}

Assembly Michigan Steel

Company

The Office

 _{Office functions support many shop floor value streams -}

purchasing, payroll

 _{The rate of customer demand is often hard to “see”}

 _{Inventory can be forms, paperwork, in-baskets, out-baskets,}

voicemail, email

 _{Cycles of activity often are random - little standard work}

The Office

The Office Current State

 _{Define boundaries of your value stream}

 _{“There has to be a ‘product’ or ‘service’ to follow - like a}

The Office Current State

 _{What capability do you provide?}

 _{Is the demand stable?}

• If not, what is the range ?

Constructing Office Current State

 _{Waiting should be recorded if there is no apparent ‘end’ takt}

time and the next process is far away

 _{Use Cycle Time of customer process to understand total lead}

time

I

Outbox

1 Day

w

Waiting

1/2 Day at meeting

I

Inbox

Constructing Office Current State

State Street Assembly

Customer

Make notes where you see obvious Waste on the Map

Poor workplace Organization

Re-enter Data: Legacy System

Duplication: Many Signatures

Paper Form Rework: Incomplete Data State Street

1 sales Rep State Street Assembly Michigan Steel Company Customer Customer Central database Engineering database I Outbox 2 files 1 Day w Waiting

1/2 Day at meeting I Inbox 2 files 1 Day I Outbox 3 files 1 Day w Waiting 1/2 Day Customer I Inbox 10 files 1 Day I Outbox 4 files 1 Day w Waiting I Inbox 2 files 1 Day w Waiting 1/2 Day Purchasing quote I Inbox 7 files

1 Day Clarify1 Day I Email / voicemail W Meeting 3 hours 4 Estimates .5 hours

Total 10 Days

Total CT 8 hrs 20 min

60 min

3 hrs 20 min

4 hrs 10 min

.5 hr 3 hr 1 Day .5 Day 1 Day

.5 Day 1 Day 1 Day .5 Day 1 Day 1 Day 1 Day 1 Day

Order

Receipt Manf. _Eng.

Eng. Review Quote Prep BOM Validation

1 Sales Rep

1 Eng. 1 Eng.

1 sales Rep

Email Quote Design Log file Phone Clarification Email -Clarification EmailO

rder Phone_{Clarification}

Phone Clarification

Mapping Tips

 _{Use Colored Post-it notes paper for Mapping}

(Easier to move Post-it notes than redraw)

 _{Use roll of butcher paper so you can use a wall and see the}

whole VSM

 _{Use string or ribbon to show material & information flows}

Mapping Tips

 _{Best to map production lines between}

Tuesday and Thursday

 _{Use someone from the line or process to walk you through it}

first, post-it note process, come back and get

Real Data and Times

 _{If you plan on using the times to balance your process then do}

not take shortcuts - you will be way off (Embarrass yourself!!)

Mapping Steps





process sequence and capture the sequence on a Post-it note



stream?)









Mapping Tips

 _{Calculate production lead time for inventory triangles by dividing}

quantity of inventory by the customer daily requirement

• This is a really neat trick! It turns a count of inventory into the number of production days that inventory represents

Homework Assignment

 _Questions:

1. Use slide 30 as a template and construct a value stream of your choice (product or service)

2. Explain the advantages and possible disadvantages of using Value Stream Maps to improve the business

 _{Read Lean Thinking Chapter 3 - Flow}