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Supply Chain Academy
Waste Identification
1
Supply Chain Academy
Waste Identification Agenda
• Value add and waste
• Waste walk
• Visual management
• Mistake proofing
• 5S
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Waste Identification
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Value Add & Waste
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Value Add•Customer is willing to
pay for it•Changes the product or information in some way
•Is done correctly the first time (done once)
Optimize
Business Non-Value Add•Non-value added
activities that are needed to ensure the value
added steps have been properly completed.
Minimize
Non-Value Add•Activities that the customer would be unwilling to pay for.
Eliminate
Value Add (VA) vs. Non-Value Add (NVA)
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Non Value Adding NVA
114 Hours - 95%
VA
6 Hours - 5%
Typical ratio of value-adding activity
Decrease lead time radically by focusing first on reducing non value-adding activity!
If focus is only on reducing value-adding activitiesNon Value Adding NVA
VA
NVA VA
Lead Time4 Days320 1 5
114 Hours - 97.5%
Continuous Improvement Focus
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Waste: Inappropriate Pricing Excessive Costs Data entry errors Design flaws Processing an order
before it is necessary Waiting for approvals Restrictions of authority
to make routine decisions
Movement of paperwork Unread emails Walking/driving between
offices Generating unused
reports Unnecessary approvals
Value Add: Designing Products Order processing Ordering materials Invoicing
Value And Waste - Office
NVAValue Add: Any task that physically
changes the form, fit or functionof the product or service
The task is done right the first time
Task meets customer requirements
VA
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Waste: Material handling Walking to get parts Waiting for a part Waiting for a fork-lift Looking for parts Shortages Waiting for the line to
move Waiting for the
overhead crane Picking up tools Hunting for tools Rework Inspection Paint overspray Repackaging Air/Wastewater
emissions
NVAValue Add: Any task that physically
changes the form, fit or function of the product or service
The task is done right the first time
Task meets customer requirements
Value Add: Welding Painting Assembling
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Value And Waste - Manufacturing
VA
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Waste
• Anything that is non-value added (NVA)• Uses resources but creates no value
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Waste Identification
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Waste & Waste Walk
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Defects
Cargo door latch not painted on inside of stow box Corrosion – Poor finish
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Overproduction
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Waiting – People
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Waiting - Product
Paperwork waiting in inboxes to be processed
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Non-Utilized Human Resources
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Transportation
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Inventory
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Motion
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Customer Requirement
What we think is Customer Requirement
Extra Processing
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A hands-on activity performed by an individual or group
Physically tracks the specific tasks being completed along the path of a predefined set of process steps
To understand the flow of information, products, materials, and people in completing a customer order..at the source!
To identify waste and immediately resolve the situation
Waste Walk - Definition
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Waste Walk –Audit Sheet
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Waste Walk-Let’s practice!
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Making Toast – Current State
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Identify at least three examples where you observed one or more of the eight wastes.
Share the opportunities with the group and suggestions for improvement
Waste Walk-Reflection
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Making Toast – Future State
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Reference
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Waste Identification
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Visual Management
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What is Visual Management?
It’s a set of techniques aimed to:
• Make waste visible so we can eliminate it and prevent it from recurring in the future
• Make normal and abnormal conditions visible so standards can easily be followed by all employees
• Improve our efficiency by effectively communicating
Visual Management
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Reference
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Waste Identification
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Mistake Proofing
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• Why mistake proofing is important
– Customers expect defect free products
– 100% inspection may not provide 100% defect-free products
– Eliminates potential for waste• Scrap• Re-work• Delays / Downtime
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Mistake Proofing
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Reactive Approach
• Mistakes will occur so…– Implement detection /
inspection– Rework errors
• Time focused– No time to implement
mistake proofing but…– There is time to fix mistakes
Proactive Approach• Mistakes can be eliminated
– Focus on process• Understand where errors can
occur• Ask “why”, then “how”
– Implement mistake proofing – Improve
• Show examples• Show it works• Train employees to identify
opportunities and develop and implement mistake proofing
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Mistake Proofing: Cultures
What is the culture in your facility?
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• A simple idea that reduces or eliminates the possibility for defects.
• Prevents people from making mistakes.
• Ensures proper conditions exist before executing process steps
• Performs detection functions, eliminating defects as early as possible
• Can be considered an extension of design/process FMEA
• Involve process operators to obtain ideas
Mistake Proofing: Basic concepts
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Waste Identification
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5S
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What is 5S?
• Workplace organization tool
• Helps us create visually appealing, orderly and functional workplace.
• Goal is to enable employees within the work area to identify abnormal conditions that may impact their work.
• Important for both office and manufacturing!
A place for everything and everything in its place!
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Let take a closer look at the 5S’s
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What does it all mean? 5S, 6S, 5S+1
• Many acronyms/names — one main theme – Visual and orderly workplace– Identifies abnormal conditions that will impact quality, productivity, flow,
safety, etc.
• The S’s: – 5 key steps of the process: Sort, Set-in-Order, Shine, Standardize, and
Sustain– 6S or 5S+1 includes safety
• We will learn the process as we go
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Why do we need 5S?
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Discussion Point
• SORT• SET IN ORDER• SHINE• STANDARDIZE• SUSTAIN
Which S is the most difficult?
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Why Implement 5S?
Higher productivity
Reduce changeover
Eliminate waste
Reduce machine breakdown
Increased quality
Meet deadlines
Safer places to work
Enhance pride
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Sort:
How many Allen wrenches do we need?
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Importance of Sort:Separate the needed from the unneeded
• Separate the needed from the unneeded• Problems and annoyances in workflow are reduced• Optimized storage and operating space• Improved communication between employees• Enhanced productivity
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Implementing Sort – Red Tagging Strategy:Separate the needed from the unneeded
Tag items that have uncertain usefulness in this area
• Is it needed?
No – put in a Red Tag area for disposition
Infrequently – store away from the work area
• If needed – is it needed in this quantity?
Store excess elsewhere
• If needed – does it need to be located here?
Create a Red Tag holding area
• Items stored here for an agreed upon time
• Disposed of if not used within that time
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• Tag items
• Record information on log
• Move item to Red Tag area (2–4 weeks max)
• Communicate Red Tag area to other departments
• Dispose of remaining items after 4 weeks
Contact Red Tag owner to return item to service
Everything needs a disposition
− Go to another department
− Reclaimed because we really do need it
− Sell, donate
− Recycle or proper disposal
Sort:Separate the needed from the unneeded
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Tagging event should be carried out in a 1 day period
• Evaluation process (two weeks)
Keep item where it is
Move item to new location
Store item away from work area
Hold item in local holding area for further evaluation
Immediate disposition of:
• Defective or excess quantities of small parts and inventories
• Outdated or broken tools, jigs, dies, inspection gear
• Worn-out items
• Outdated: posters, signs, notices, office supplies, computer equipment, forms
Implementing Sort:Separate the needed from the unneeded
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Set in Order:An organized workplace
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Arrange items so that they are easy to find and use
• Eliminating:
• Motion
• Searching
• Excess human energy
• Excess inventory
• Defective products
• Unsafe conditions
Set in Order:An organized workplace
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• Visual control
• Tells you how to do task at a glance
• Identifies location of equipment
• Identifies location of raw and finished materials
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Set in Order:An organized workplace
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Locate items by frequency of use
• Place frequently used items where needed
• Store infrequently used items away from place of use
• Store items together if used together
Tooling and office equipment (eliminate variety of tools, dies, jigs, and forms)
• Store tools according to function or product
• Function — works best in job shop type of work
• Product — works best for repetitive production
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Set in Order:An organized workplace
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Improving parts layout
• Worktable was too wide
• Parts stand was too far away
• Parts were laid out horizontally (hard to reach)
• Worktable was made smaller (1/3 width)
• Parts were put within closer reach
• Parts were laid out on a slant (easier to reach)
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Set in Order:An organized workplace
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5S Mapping
• Make a floor plan of work area
• Show location of equipment, parts, jigs, racks, etc.
• Track the flow of information and movement
• Are there shared printers, copiers, fax machines
• Draw arrow on plan in the order that the operation occurs (number them)
• Analyze map for congested areas, motion waste…
• Create a map with optimal space that uses the least motion waste
• U-shaped cells tend to be more efficient
• In process inventory should be positioned for best flow
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Set in Order:An organized workplace
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Identifying locations
• Sign board strategy
• Location indicators
• Names of equipment, inventory, department, etc.
• Painting strategy
• Cart locations
• Raw material & office supplies storage
• Outline strategy
• Shadow boards
• Aisles
• Color-coding strategy
• Identifying tools, parts, etc. by color to indicate purpose
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Set in Order:An organized workplace
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Shine:Enhance workplace pride
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Shine:Enhance workplace pride
Keeping the work environment clean
• Daily routines – everyone has responsibilities
Problems avoided by shine
• Defects are less obvious in dark and dirty areas
• Spilled liquids may cause slips and trips
• Machines do not receive sufficient maintenance
• Cut shavings can get into production processes and create defects
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Determine methods
• “Pit Stop” – methods to clean an area in 15 minutes or less
• Creativity of methods – create new ways to maintain the shine using different tools or cleaning products
Provide the right cleaning tools and supplies
• Point of use
• Convenient to allow pit stop approach (<15 min)
Make it a habit
• Schedule to divide up tasks by shift/day of week
• Checklist to provide accountability
• Shift change hand-offs
Shine:Enhance workplace pride
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Standardize:Synchronizing the operation
• Clear roles and responsibilities, consistently applied
• Training to ensure all know how to apply 5S techniques
• 5S must not become static
• Daily time to carry out 5S sessions
• Standardize: Aisle marking/signs Cleanliness standards Color schemes Cleaning schedules
Develop “Our Way”
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# of Problems Rating Level Audited area: Date
5 or more
3 - 4 Auditing team:
2
1
none
Ca te g o ry Ite m Co mme nts LEVEL
Sort Only needed equipment, tools, furniture, etc. are present
Only needed items are on walls, bulletin boards, etc.
No items are in aisle ways, stairways, corners, etc.
Unneeded supplies, parts, or materials are present
Safe from hazards (water, oil, chemical, machines)TOTAL
Set in Order Correct places for items are obvious
Items are in their correct places
Aisle ways, workplaces, equipment locations are indicated
Items are put away immediately after use
Height and quantity limits are obviousTOTAL
Shine Floors, walls, stairs, and surfaces are free of dirt, oil, and grease
Equipment is kept clean and free of dirt, oil, and grease
Cleaning materials are easily accessible
Lines, labels, signs, etc. are clean and not broken
Other cleaning problems (of any kind) are not presentTOTAL
Standardize Necessary information is visible
All standards are known and visible
Checklists exist for all cleaning and maintenance jobs
All quantities and limits are easily recognizable
How many items can't be located within 30 seconds?TOTAL
Sustain All employees have had 5S training?
Daily 5S is performed every day and shift?
Personal belongings are easily stored?
Job aids are available and up to date?
Monthly 5S Audits are being performed?TOTAL
TOTAL AUDIT SCORE OF 125
5S Audit Sheet - Production
Level 1
Level 2
Level 3
Level 4
Level 5
(Cleaning and looking for ways to
keep clean and organized)
(Maintain and monitor the first
three categories)
(Stick to the rules)
(Distinguish between what is
needed and what is not)
(A place for everything and everything in its
place)
Sustain:Discipline over time
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Sustain:Discipline over time
DefinitionTo maintain discipline, we need to practice and repeat until it becomes a way oflife - Culture
How• Verify through objective evidence that every asset and work center are in
compliance with the best practices of 5S and workplace organization (at any hour of any day)
• Ensure gaps and improvement ideas are listened to and acted on• Ensure “ideal behaviors” are followed
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Sustain:Discipline over time
• Shift/daily/weekly/monthly audit Identify exceptions, discrepancies, and recommendations
• Defined structure for pass/fail
• Visual management
• Standardized work
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5S: Getting Started Tips5S needs identification
• Pull together a group that represents the 5S target area
• 5S kit — labels, tape, paint, and cleaning supplies
• Determine possible needed resources
• Electricians
• Plumbers
• Mechanical specialists
• Preorder any supplies that you may need
• New equipment
• Organizational items
• Reserve training area, if needed
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5S Summary
5S is the foundation to continuous improvement• Identifies abnormal conditions!
Real business benefits happen with a 5S strategy• 5S should not be a single-event mentality• A way of life!
Benefits are both in the office and on the shop floor• Review your computer desktop and files
5S events can be a way to get started on a lean journey• Impressive results the first time• Everyone enjoys a clean, well-organized workplace• Engages employees• Improved 5S leads to safer work environments
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Key Training Takeaways
Visual management is a technique to make waste visible so we can eliminate it and prevent it from recurring in the future
5S is a workplace organization tool that helps us create a visually appealing, orderly and functional workplace
Value added activities are:•Customer is willing to pay for it•Changes the product or information in some way•Is done correctly the first time (done once)
Waste is:•Anything that is non-value added (NVA)•Uses resources but creates no value
DOWNTIME is an easy way to remember the eight types of wastes
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Reference Material
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Value Stream Mapping
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Continuous Improvement Tools
– Waste Identification
– Value Stream Mapping
– 5S
– Standardized Work
– Visual Workplace
– Continuous & Cellular Flow
– Takt Time
Customer Supporting Systems/Tools
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• A visual tool used to understand and communicate the steps to change material and/or information for the purpose of creating a product or service that customers are willing to pay for including:
– The flow of value adding activities that serves the customer needs
– The supply-chain from raw materials to consumption
What is Value Stream Mapping
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• It helps you to visualize more than just the single-process level. You can see the flow.
• It helps you see more than waste. Mapping helps you to see the sources of waste in your value stream.
• It provides a common language for talking about a process.
• It makes decisions about the flow apparent, so you may discuss them.
• It ties together lean concepts and techniques which helps avoid random application.
• It shows the linkage between information and material flow.
• It becomes a blueprint for implementation.
Why Value Stream Map?
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RawMaterial
PROCESS
VALUE STREAM
FinishedProduct
PROCESSPROCESSStamping Welding Assembly
Cell
Raw Material to Finished Product
Research Engineering Production
VALUE STREAM
Concept New Product
Concept to Launch
Product Costing
Ordering Accounting Payables
VALUE STREAM
Product Sale
Order to Cash
Three Types of Value Streams
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Some Lessons Learned
Management must lead the design and introduction of lean value streams
Techniques System Philosophy
• Random use of the toolsis not enough.
• The tools must comprise a system to give customerswhat they want, when they want it, with minimum waste.
• Focus on flow to create asystem.
LeanProcessSystems
SmallLots
PullSystems
LevelScheduling
Standard Operations
Lead TimeReduction
ErrorProofing
P M
Containerization
QuickSet-up
FlowLayout
Transportation
Reduction of
Variation
ProcessCapability
Employee Involvement
W P O
Value Streams and Mapping
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ManufacturingOffice
Value Stream Mapping Examples
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• Lays the groundwork for creating a strategic plan – Shows us the landscape and helps us see the
path we must take to get from point “A” to point “B”
• Creates a graphic representation of how a business process works
– Shows how material and/or information is linked from one process step to the next
• Helps identify improvement opportunities– Helps us see the waste and potential root
causes– Eliminates the non-value added steps– Reduces wasted resources
Benefits of Value Stream Mapping
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• Administrative activities are often a major percentage of the total throughput time• Many functions support several services with no clear boundaries and are not well
documented • Harder to identify customer, product and customer value• Waste is much harder to see - more entrenched and hidden
Going Beyond the Plant Level?
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Identify Value Stream
Current StateDrawing
Action Plan
Future-StateDrawing
Design a lean flow
Identify and resolve gaps
Specific process / product family
Value Stream Mapping as a Living Process
84
Step
1
2 – 3 - 4
5 – 6 - 7
8 – 9 – 10
Understand how the work site currently operatesIdentify improvement opportunitiesData Collection
Implement the planPlan how to get there
Measure the results
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• Define value stream (product/process family)– Choose the right value stream – Identify value stream from the customer end– Value stream should pass through similar processes
(administrative/manufacturing)
• Group similar products/processes to determine value streams
Product Process 1 Process 2 Process 3 Process 4 Process 5 Process 6
A x x x xB x x xC x x x xD x x x xE x xF x x x
Product/ Process Step 1 Step 6Step 5Step 4Step 3Step 2
Product/Process/Service Identification
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Identify Value Stream
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Current StateDrawing
Action Plan
Future-StateDrawing
Value Stream Mapping as a Living Process
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Step
1
2 – 3 - 4
5 – 6 - 7
8 – 9 – 10
Identify Value Stream Specific process / product family
Understand how the work site currently operatesIdentify improvement opportunitiesData Collection
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All objectives must be scoped in relation to the company’s strategic plan
– Pinpoint goals• Use value stream mapping as a tool
Determine Objectives
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Current StateDrawing
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Think in terms of halves and doubles…if it is something bad—cut it in half; something good double it…
Improvement initiatives:• Safety (e.g., identify at least X safety issues)
• Quality (e.g., reduce rework from X% to Y%)
• Productivity (e.g., increase productivity from X% to Y%)
• Reduce lead time from X weeks to Y weeks
• Customer development—improve response time from X to Y
Example Objectives
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Product FamilyProcess Data Box
Data Collection
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Current StateDrawing
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• Cycle time
• Wait time• First receipt quality
• Data sources
• Systems used• Equipment
• Process owner/operator
• Information/data needed or produced
Data Collection for Office VSM
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Current StateDrawing
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• You must understand the current state before you can determine what the future state must look like
• Focus on the most accurate and useful information
• Gather “actual” information—do not rely on “standard” data
• Map only the process, do not be distracted by the exceptions– Collect the issues and concerns for addressing later
• Do not hurry, do it right the first time
• Draw the first time using Post–Its
• Expect to make numerous changes
Draw the Current State Value Stream Map
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I
CI Starburst (identifies improvement needs)
Typical Icons for Current State Value Stream Map
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Flow Arrow - indicates Product Flows from one process to another
Push Arrow - indicates Product is pushed into next process
Pull Arrow - indicates Process or Customer pulls Product from previous process or VendorInformation Flow - indicates flow of information regarding Part #, Quantity, and Delivery Schedule
Inventory
Truck ShipmentProcess Data Box
External Sources(Suppliers, Customers, etc.)
Electronic Information FlowSupermarket - small Inventory of Product from which the next Process or Customer may Pull
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Takt is:• A German word that
means “drum beat” or rhythm
Cycle time is:• Length of time required to
complete one step or operation in the process
Remember: Operating time does not include TPM activities, breaks, lunches (unrelieved breaks & lunches), 5S, meeting time, or any time the machine or cell is not operating.
Takt Time and Cycle Time
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Current StateDrawing
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Assembly Line:
• Customer requirements
100 vehicles/week or 20 vehicles/day
• Operating Time = 8 hrs/shift
(less 5S, breaks, lunch, etc.) = 7.25 hrs.
Accounts Payable:
• Requirements
220 invoices/week or 44 invoices/day
• Operating Time = 8 hrs/shift
(less 5S, breaks, lunch, etc.) = 7.25 hrs.
Takt Time Calculation Examples
Class Exercise
Takt Time = ( ) X ( )vehicles
= minutes/vehicle
Takt Time = ( )X ( )invoices
= minutes/invoice
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7.25 hrs. 60 mins/hr.20
21.75
447.25 hrs. 60 mins/hr.
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TAKT = 15 MIN
1
910
18
9
0
2
4
6
8
10
12
14
16
18
20
Stamping Weld Weld Assemble Assemble
Current Cycle Times
Step 1 Step 3 Step 4 Step 5Step 2
• Where is the bottleneck?• Opportunities for improvement?• Sum of the cycle times/Takt = ~ People• 47/15 minutes = 3.1 People
Takt Time Application Example
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• Where can continuous flow be introduced?• Conduct a Continuous Improvement Event (CIE) to improve the process
with a target of 13 minutes/person• Move the free resource to value-added tasks
13 9 130
2
4
6
8
10
12
14
16
18
20
Weld Weld / Assemble Assemble
After CIE Cycle Times
4
TAKT = 15 MIN
Step 1 Step 3Step 2
Future State Target
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Identify all potential areas for improvement
• Activities that can be eliminated• Activities that do not add value• High scrap/rework rate
Current State VSM – Example
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• Long setup/changeover• Excessive hand-offs• Excess inventory• Long wait times
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Scrap
Manufacturing Process
Kaizen Lightning
Burst
OutsideSource/
Customer
Data Box
Inventory
I
o o oTruck
Shipment
FinishedGoods to Customer
Push Arrow
Supermarket
Buffer orSafety Stock
Manual Information Flow
ElectronicInformation Flow
Production Kanban
Withdrawal Kanban
Signal Kanban
Kanban Post
Required ToolsValue Stream Mapping Exercise
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Materials Supplier
Customer
Chassis Body Trim Inspect
Associates Staff
Cycle Time Sec
Sec
Changeover Loss Per Item Sec
Downtime Loss Per Item Sec
Sec
Sec Sec
Sec
Sec
SecSecSec
Transport Time Sec
MRP
ProductionControl
Current Condition Value Stream Map
Queue Sec Queue Sec Queue Sec Queue Sec Queue SecAssociates Staff
Cycle Time SecChangeover
Loss Per Item SecDowntime
Loss Per Item SecTransport
Time Sec
Associates Staff
Cycle Time SecChangeover
Loss Per Item SecDowntime
Loss Per Item SecTransport
Time Sec
Associates Staff
Cycle Time SecChangeover
Loss Per Item SecDowntime
Loss Per Item SecTransport
Time Sec
Cyc
le T
ime
(sec
)
Station5
101520253035404550556065
Chassis Body Trim Inspect
TAKT
NVA
VA
NVA +VA = Production Lead Time = Sec
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• Always collect current state information while walkingalong the pathway of material and information flowsyourself.
• Begin with a quick overview to identify main processes; then go back and gather data.
• Begin at the customer and work backwards.
• Do not rely on information and timing you do notpersonally obtain.
• Don’t map the whole value stream yourself.
• Always draw by hand, in pencil
Value Stream Mapping Tips
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Process Metrics (CI Specialist Data)
Aver
age
of a
ll O
bser
vatio
ns
Metrics
# Safety Incidents 1# Defects 4
Final Ending Inventory for Chassis (from chassis sheet) $450 Final Ending Inventory for Body (from body sheet) $3,850 Final Ending Inventory for Trim (from trim sheet) $1,200 # Unsold (WIP) at Inspect/Ship 2Unsold (WIP) Inventory Cost $2,400
# Units sold at Inspect/Ship 16Sold Inventory Cost $19,200
# Scrap at Inspect/Ship (found at inspect/ship) 4Scrap Inventory Cost $4,800
# Scrap (Re-inspects) (found by customer) 0Scrap (Re-inspects) Inventory Cost $0
Total Inventory Costs $31,900 # Defective Quads Sold to Customer 0
Re-inspection Fees (# Defective Quads Sold * $1000) $0# Customer Orders Missed 9$ Loss for Missed Orders (# Missed Orders * $600) $5,400
Total Costs $37,300
# Units Delivered & Accepted 16Revenue (# Good Quads Sold * Revenue) $28,800
Total Profit/Loss (Revenue - Costs) ($8,500)On Time Delivery 64%
Business KPIs
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Current State Mapping Icons
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Outside Source
Customer
Step 1: Start closest to the customer and then document every process step upstream (Note cycle time, changeover time, batch size, scrap, etc.)
Materials Supplier
Customer
Chassis
Staff
Sec
Sec
Sec
Sec
Body
Staff
Sec
Sec
Sec
Sec
Trim
Staff
Sec
Sec
Sec
Sec
Inspect
Staff
Sec
Sec
Sec
Sec
ManufacturingProcess
Data Box
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Current State Mapping Icons
103
Outside Source
CustomerMaterials Supplier
Customer
Staff
22 Sec
9.6 Sec
5 Sec
10 Sec
Staff
37 Sec
9.6 Sec
10 Sec
7 Sec
Staff
24 Sec
Sec
0 Sec
9 Sec
1 1 1 1Associates Associates Associates Associates Staff
Cycle Time Cycle Time Cycle Time Cycle Time Sec
0Changeover Loss Per Item
Changeover Loss Per Item
Changeover Loss Per Item
Changeover Loss Per Item Sec
0Downtime Loss Per Item
Downtime Loss Per Item
Downtime Loss Per Item
Downtime Loss Per Item Sec
2Transport Time
Transport Time
Transport Time
Transport Time Sec
4.8
8 Changes X 15 seconds per Change / 25 planned units = 4.8 Seconds at Trim
15
Average of 3 measurements by the CI Specialist
• Based on the die roll, you had a 33% chance of downtime at Chassis and Body only. • So, your Mean Time Between Failures was 3 cycles, statistically.• At Body, the duration, or Mean Time To Repair, was 30 seconds. (Sand timer)• 30 seconds / 3 cycles = 10 seconds on average
OtherOther Other
Chassis Body Trim Inspect
Step 1: Start closest to the customer and then document every process step upstream (Note cycle time, changeover time, batch size, scrap, etc.)
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Material MovementVia Push
Truck Shipment
Inventory
Outside Source
Current State Mapping Icons
104
Step 2: Track WIP/Inventory upstream and check actual quantities that are on the shop floor
Step 3: Identify push & pull material flow
CustomerMaterials Supplier
Customer
Chassis Body Trim Inspect
1Associates Staff
22Cycle Time Sec
10Changeover Loss Per Item Sec
5Downtime Loss Per Item Sec
10Transport Time Sec
45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec
1Associates Staff
37Cycle Time Sec
10Changeover Loss Per Item Sec
10Downtime Loss Per Item Sec
7Transport Time Sec
1Associates Staff
24Cycle Time Sec
5Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
9Transport Time Sec
1Associates Staff
15Cycle Time Sec
0Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
2Transport Time Sec
• 45 second TAKT time (the customer required a unit every 45 seconds)• Each unit of WIP represents 45 seconds of demand.• 2 units in WIP = 90 seconds worth of sales at Inspect.
Supply Chain Academy
Current State Mapping Icons
105
Outside Source
Customer
Step 4: Map Information Flow: How does everyone know what to do?
Materials Supplier
Customer
Chassis Body Trim Inspect
1Associates Staff
22Cycle Time Sec
9.6Changeover Loss Per Item Sec
5Downtime Loss Per Item Sec
10Transport Time Sec
MRP
ProductionControl
45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec
1Associates Staff
37Cycle Time Sec
9.6Changeover Loss Per Item Sec
10Downtime Loss Per Item Sec
7Transport Time Sec
1Associates Staff
24Cycle Time Sec
4.8Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
9Transport Time Sec
1Associates Staff
15Cycle Time Sec
0Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
2Transport Time Sec
Supply Chain Academy
Current State Mapping Icons
106
Step 5: Calculate Cycle vs. Lead time and create the TAKT time chart
Product Idle Time = 765 Sec
Total Station Time = 165 Sec
Product Lead Time = 930 Sec = 15.4 Min
Materials Supplier
Customer
Chassis Body Trim Inspect
1Associates Staff
22Cycle Time Sec
46.6 Sec
9.6Changeover Loss Per Item Sec
5Downtime Loss Per Item Sec
540 Sec63.6 Sec 37.8 Sec
90 Sec17 Sec
0 Sec90 Sec45 Sec
10Transport Time Sec
MRP
ProductionControl
45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec
1Associates Staff
37Cycle Time Sec
9.6Changeover Loss Per Item Sec
10Downtime Loss Per Item Sec
7Transport Time Sec
1Associates Staff
24Cycle Time Sec
4.8Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
9Transport Time Sec
1Associates Staff
15Cycle Time Sec
0Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
2Transport Time Sec
Cyc
le T
ime
(sec
)
5101520253035404550556065
Chassis Body Trim Inspect
TAKT
Supply Chain Academy 107
Product Idle Time = 765 Sec
Total Station Time = 165 Sec
Product Lead Time = 930 Sec = 15.4 Min
Materials Supplier
Customer
Chassis Body Trim Inspect
1Associates Staff
22Cycle Time Sec
46.6 Sec
9.6Changeover Loss Per Item Sec
5Downtime Loss Per Item Sec
540 Sec63.6 Sec 37.8 Sec
90 Sec17 Sec
0 Sec90 Sec45 Sec
10Transport Time Sec
MRP
ProductionControl
45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec
1Associates Staff
37Cycle Time Sec
9.6Changeover Loss Per Item Sec
10Downtime Loss Per Item Sec
7Transport Time Sec
1Associates Staff
24Cycle Time Sec
4.8Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
9Transport Time Sec
1Associates Staff
15Cycle Time Sec
0Changeover Loss Per Item Sec
0Downtime Loss Per Item Sec
2Transport Time Sec
Cyc
le T
ime
(sec
)
5101520253035404550556065
Chassis Body Trim Inspect
TAKT
Where is our bottleneck?
Supply Chain Academy
Current StateDrawing
Action Plan
Future-StateDrawing
Design a lean flowIdentify and resolve gaps
Specific process / product family
Value Stream Mapping as a Living Process
108
Step
1
2 – 3 - 4
5 – 6 - 7
8 – 9 – 10
Understand how the work site currently operatesIdentify improvement opportunitiesData Collection
Implement the planPlan how to get there
Measure the results
Identify Value Stream
Supply Chain Academy
Map the Current State
Analyze the Current State and
Design the Future State
Create an Implementation Plan and execute it !
Admitting
I
IIn
Hallway
LEGEND: Electronic Physical Flow Feedback
Blood Draw X Ray Doctor Review Billing
Send to Waiting ALog Time In
Record ValueDraw Blood
Record ValueTake X Ray
Review X RayReview Blood
Log Time OutRecord Values
Retest if Needed
Clinic Supplies
Syringes
X RayFilm
Regional SupplyManager
Clinic Manager
ClinicPerformance
SupplyRequirements
IIn
Hallway
IIn
Hallway
Low MachineReliability
RetestsRandomArrivals
DeliveryWeekly
VP Performance
ClinicPerformance
Re Tests
Waiting Rm B
Capacity 4 PatientsFill Room Next
Waiting RmA
Capacity 4 PatientsFill Room First
Stop if “A” is Full
I
PeopleWaiting
Direct from A only if B empty
X Ray Blood Draw
Record ValueTake X Ray
Record ValueDraw Blood
Dual PathOverflow to B I
InHallway
(avg. wait in “A”)(Transfer A to B)
(avg. wait in “B”)(process time) (process time)
(avg. wait)(process time)
(avg. wait)(review time)
(avg. wait)(process time)
TPCT: 423 MinutesUnknown due to extremevariability of data
C/T 10 Minutes
C/T 12 Minutes
C/T 12 Minutes C/T 13 Minutes
C/T 13 Minutes
NOFIFO !
Lost Patients
C/T 5 MinutesC/T 18 Minutes
10 Min 5 Min 12 Min 13 Min120 Min 40 Min 60 Min 50 Min 90 Min
5 Min 18 Min
7+ Hours
FTQ 50% FTQ 50%
FTQ 50% FTQ 50%
Clinic Supplies
Syringes
X RayFilm
Regional SupplyManager
Clinic Manager
ClinicPerformance
SupplyForecast
FrequentDelivery
VP Performance
ClinicPerformance
Admitting Blood Draw X Ray Doctor Review
Billing
Stage for BloodLog Time In
Record Value
Draw Blood
Record Value
Take X RayReview X RayReview Blood
Compile data frompatient records
Log Time OutPull patients toLevel Schedule
FIFO
Retake if Error Retake if ErrorVerify Results Verify Results
Off-lineOperation
FIFO FIFO
Provide arrival windows forpatients to minimize waiting
(process time) (process time) (process time) (review time)(minimal wait) (minimal wait) (minimal wait)
TPCT: 18 MinutesConsiderably reducedthrough improved flow
LEGEND: Electronic Physical Flow Feedback
2 Min2.5 Min 2.5 Min 2 Min
3 Min 3 Min3 Min
C/T 2 MinutesC/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes
96% Improvement in TPCT
Action Item ResponsibleImprove X Ray Equipment Reliability Sherry Wilson (Med-Tech)
Improve Blood Draw Process Vlad
Technician Training - Verify Test Results Dr. Choi
Implement Use of Patient Record as Data Log Joe Packer (Billing)
Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly)
Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL)
Develop Level Schedule for Patient Arrival Ed Case (Admitting)
- - - 2001 - - - - - - 2002 - - -Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Value Stream Mapping
109
Supply Chain Academy
Scrap
Manufacturing Process
Kaizen Lightning
Burst
OutsideSource/
Customer
Data Box
Inventory
I
o o oTruck
Shipment
FinishedGoods to Customer
Push Arrow
Supermarket
Buffer orSafety Stock
Manual Information Flow
ElectronicInformation Flow
Production Kanban
Withdrawal Kanban
Signal Kanban
Kanban Post
Required Tools
Value Stream Mapping Exercise
110
Supply Chain Academy
• Production should be scheduled at the pacemaker process– Information flow must support this process
RawMaterial
PROCESS
FinishedProduct
PROCESSPROCESSStamping Welding Assembly
Cell
Production ControlDaily
Schedule
Key Questions to ask: How to schedule production
111
In our build-to-order process, where is the schedule really determined?
Supply Chain Academy
Inbound Storage Observations:– Tier 2 supplier consistently delivered material three days early and the facility looks
like a warehouse with an assembly operation running through it– Excess inventory– On-hand obsolete parts means that we sort through inventory to find the right parts
Line Side Delivery Observations:– Unknown usage quantities and usage seams to vary, even though both models seam
to use the same components– Sometimes there are too many parts lineside (wheels and tire carriers)– Sometimes the assembler runs out of parts
Voice of the Material Handler
112
Supply Chain Academy 113
Single Point Scheduling
Change Over Reduction
Pull System
Line Balance
Inspector Repairs
Defects?
KEEP YOUR CURRENT AND FUTURE STATE VALUE STREAM MAPS. YOU WILL NEED THEM.
Material Strategy
Supply Chain Academy
Action Plan Components
• % Status: Update this column to indicate the % complete status of the
project, round to the nearest 25%
• 30 Day Focus– 3rd tab in Action Plan Template– Deep dive into details required for the next 30 day success
114
Supply Chain Academy
• Implement the plan– Work as a team on action items– Meet on a regular basis for
accountability
• Measure– Review expected results
• Repeat the value stream mapping process
– Monitor new process to achieve sustainability
Measure the Results of the Plan
115
Supply Chain Academy
Current StateDrawing
Action Plan
Future-StateDrawing
Design a lean flow
Identify and resolve gaps
Specific process / product family
Value Stream Mapping as a Living Process
116
Step
1
2 – 3 - 4
5 – 6 - 7
8 – 9 – 10
Understand how the work site currently operatesIdentify improvement opportunitiesData Collection
Implement the planPlan how to get there
Measure the results
Identify Value Stream
Supply Chain Academy
• VSM is a valuable tool to help see opportunities– Helps us to see waste and root causes– Helps us to see customer / supplier connections and related flow
of information and materials– Can be used to help define your strategies– Can be useful for any process to help better define issues
• VSM is useful for factory floors, service industries and offices
• VSM is only effective if the results are implemented and sustained!
• Review the value stream map to ensure it’s up-to-date
Value Stream Mapping Summary
117
Supply Chain Academy
Authors: Mike Rother and
John Shock
Reference Material
118
Supply Chain Academy
Questions?
119
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