11 Value Stream Mapping & Lead Time

7/27/2019 11 Value Stream Mapping & Lead Time

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© 2001 ConceptFlow 1

Value Stream Mapping and Lead Times




Module Objectives

By the end of this module, the participant will be able to:• Discuss the difference between operations improvement and process

improvement• Identify and map a value stream• Describe the components of lead time• Discuss the importance of lead time reduction




Processes And Operations

• Process - the flow of products/services/services from one worker toanother • Operation - the discrete stage at which a worker may work on different

products/services/services






Four Phenomena Of Process – F. B. Gilbreth

SHIP• Delay (Storage)• Transport (Handling)• Inspection• Processing




Two Types Of Delays

• Process delays - delay of an entire lot between processes• Lot delays - occurs when individual items wait to fall in step with entire

lots


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Process Improvement Or OperationImprovement?

• Production is a network of processes and operations• But in improving production, process phenomena should be given top

priority





Value Stream Management – Lean Enterprise Institute

“...the process of increasing the ratio of value to non -value by identifyingand eliminating sources of waste in the overall value stream for definedproduct/service families, ensuring that the value stream is profitable andmeets or exceeds client requirements”



Identify The Value Stream – Lean Thinking

• Value stream is all actions required to bring a specific service/productthrough three critical tasks:1. Problem Solving2. Information Management3. Physical Transformation

• The Lean Enterprise is the sum of all activities that perform these threetasks

• Is often more than one organization



Benefits Of Value Stream Mapping

• Provides a simple but true picture of what is happening in the process• Calibrates your team to a common understanding of the process• Helps analyze a process by breaking it down into its component steps• Provides a structure to which specific data can be attached• Includes the flow of material and the flow of information



Steps In Value Stream Mapping

1. Select one product/service family based on end client2. Have one person lead the mapping effort3. Map the current state at the “door to door” level4. Map the desired future lean value stream5. Develop an implementation plan to achieve the future state






INFORMATION FLOW ICONS

300 pieces1 Day

Kanban Post

First-In First-Out Sequence Flow

Load Leveling

Inventory

OXOX

FIFO

MATERIAL FLOW ICONS

2% Scrap

C/T = 45 sec

C/O = 30 min

3 Shifts

“Go See” Scheduling

Signal Kanban

Finished Goods to Customer

Data Box

WeeklySchedule

Schedule

ASSEMBLY

Manufacturing Process

Truck Shipment

Withdrawal Kanban

Kanban Arriving in Batches

Mon +Wed

Manual Infomation Flow

XYZCorporation

Sequenced-Pull Ball

Production Kanban

Outside Sources

Push Arrow

Electronic Infomation Flow

Icons For Mapping The Current Process




GENERAL ICONS

Supermarket

Withdrawal

Buffer or Safety Stock

UPTIME

CHANGEOVER

Kalzen Lightening Burst

Operator

1

Icons For Mapping The Current Process






Icons - Value Stream Map

Office Data Box Process Box Inventory

Shipping(Truck)

InformationFlow

ElectronicInformation Flow

ASSEMBLY




Icons - Value Stream Map

Shipment of Goods(Inbound or Outbound) Push Movementof Material

Timeline

LeadTime

ProcessingTime …Value Added




Tips For Mapping The Current Process

• Collect data yourself by walking the pathways of material andinformation• „Walk the process repeatedly

• Begin with a quick “door -to-door” walk • Bring a stopwatch and gather your own times

• Map entire stream yourself • Draw by hand in pencil




Levels Of A Process

Terms

CoreBusinessProcess

(“Strategic”)

BusinessProcesses

High LevelProcess Map

DetailedSub-Process

Map

BusinessDevelopment

Sales Underwriting Contracting ClientService

Docs Negotiate Close

Underwriters (ext.) Clients

(int.) Cust.Service Dept.

Client

Tasks Procedures

Supplier

FunctionalDepartments

Sub-process

DetailedSub-process

Terms






Relating The Versions Of Process Maps ToLevels Of Performance

Time

D e f e c t s a n d

W a s t e

Breakthrough

As-Is = Current State

Could-Be = Breakthrough State

Improvement Period

Should-Be = Process EntitlementQ,S&C

$$$

Q: QuickS: SimpleC: Easy




Typical Process Data

• Cycle time• Uptime• Inventory• Batch Sizes• Number of operators• Number of product/service variations• Working time• Scrap/rework rate• Defect rate (dpu)




Time Definitions

• Cycle time (C/T): how often a unit or product/service is completed bythe operation; start to finish• Changeover time (C/O): time to switch from producing one

product/service type to another • Lead time (L/T): time it takes for one unit to complete the process

(includes NVA time that unit or product/service waits betweenoperations)• Total Cycle Time: cumulative time it takes for unit or product/service to

complete all operations (does not include wait time betweenoperations)

• Uptime is calculated by dividing the actual time available to run by thetime scheduled to run• Working time (W/T): time per period minus breaks…




• Cycle Time - The actual duration of a task from start to finish (thecalendar time)• Work Time - The shortest time currently possible for a task• Value-Added Time - The amount of the work time that is actually

value- added… the rest is waste!

“Cycle” Time

“Work” Time

“Value - Added” Time

Work Time Versus Value-Added Time




Demo OK?

1) Map “As -Is” Process - 2) Prioritize Waste Opportunities -

3) Identify Lean Methods and Assign Action Items -

4) Map “Future State”, PerformDemo, and Deploy -

Level 0

Level 1

Lean Solution Responsibility Due Date

Step-by-Step Process For Waste Elimination




Business Process Example - Identify TheValue Stream For The Process

The top-level value stream for a sales order process:

C/T = 0

InitialContact

?No

Yes

C/T = 5 min.

Wait for Sales Person

C/T = 10 min.

SalesPitch

C/T = 30 min.

ConfigureProduct/Service

C/T = 10 min.

CompleteOrder Form

C/T = 5 min.

Promiseto Ship

C/T = 7 days

PendingOrder Queue

C/T = 6 days

Batch Similar Orders

C/T = 3 days

Check Avail.

C/T = 1 day

Work Order Issued




Step 1 - Map the “As - Is” Valu e Stream

“As - Is” Process Cycl e Time:

E/T = 249 Hrs W/T = 18.08 Hrs

VA/T = 6.63 Hrs

E/T = Elapsed Tim e W/T = Work Time VA/T = Value-Ad ded Tim e

Portfolio Review Duration




Speed

“If things seem under your control, you re just not going fast enough” – Mario Andretti

“It used to be that the big ate the small. Now the fast eat the slow” – Geoff Yang, Institutional Venture Partners




Step 2 - Prio ritize Waste / Defect Opp ortun i t ies


Cross Functional Team Prioritizes Opportunities

Red – Greatest Potent ial Benefi t

Yellow – Worthwh i le Oppor tun i ty E/T = 249 Hrs W/T = 18.08 Hrs

VA/T = 6.63 Hrs






Step 4 - Fut ur e State Map

Future Process Cycl e Time:

E/T = 146 Hrs W/T = 15.92 Hrs

VA/T = 6.63 Hrs

Future State Map


Yellow – Worthwh i le Oppor tun i ty

Previous Process Cycle Time:

E/T = 249 Hrs

W/T = 18.08 Hrs VA/T = 6.63 Hrs




Future Lean Value Stream

• Produce to client demand• Develop continuous one-piece flow• Control production with pull systems• Send the client schedule to only one process (the pacemaker)• Level the production mix at the pacemaker • Level the production volume at the pacemaker




Implementing The Future Lean Value Stream

• Begin with completed map of future value stream, broken down into aseries of connected flows or “loops” • Develop value stream plan

• Exactly what you want to do by when, step by step• Measurable goals

• Clear checkpoints with named reviewer(s)




Advantages Of Lead Time Reduction

• Short delivery time to client• Quickly adapt to changes in demand• Low work-in-process• Minimize excess and obsolete advice/plans due to changes






Philip R. Thomas - Thomas Group, Inc.

• Total cycle time can be measured and improved• Mapping the process has visual impact - how long do steps take?• Shorter cycle time results in more cycles of learning for problem

solving and process improvement (more feedback loops)




Barriers To Cycle Time Improvement

Business Process Barriers• ________________________ • ________________________ • ________________________ • ________________________ • ________________________ • ________________________

Culture Barriers• ________________________ • ________________________ • ________________________ • ________________________ • ________________________ • ________________________




Philip R. Thomas - Thomas Group, Inc.

• Vision is shorter cycle time, less inventory combined with less risk• Cycle time is composed of actions in progress and processing speed• Key concept: Do fewer actions in progress, do the remaining ones

faster




Key Learning Points

• • • •




Objectives Review

By the end of this module, the participant will be able to:• Discuss the difference between operations improvement and process

improvement• Identify and map a value stream• Describe the components of lead time

• Discuss the importance of lead time reduction



Trademarks and Service Marks

Six Sigma is a federally registered trademark of Motorola, Inc.

Breakthrough Strategy is a federally registered trademark of Six Sigma Academy.

VISION. FOR A MORE PERFECT WORLD is a federally registered trademark of Six Sigma Academy.

ESSENTEQ is a trademark of Six Sigma Academy.

FASTART is a trademark of Six Sigma Academy.

Breakthrough Design is a trademark of Six Sigma Academy.

Breakthrough Lean is a trademark of Six Sigma Academy.

Design with the Power of Six Sigma is a trademark of Six Sigma Academy.

Legal Lean is a trademark of Six Sigma Academy.

SSA Navigator is a trademark of Six Sigma Academy.

SigmaCALC is a trademark of Six Sigma Academy.

iGrafx is a trademark of Micrografx, Inc.

SigmaTRAC is a trademark of DuPont.

MINITAB is a trademark of Minitab, Inc.




Step 2 - Prio ritize Waste / Defect Opp ortun i t ies


Cross Functional Team Prioritizes Opportunities


Yellow – Worthwh i le Oppor tun i ty E/T = 249 Hrs W/T = 18.08 Hrs

VA/T = 6.63 Hrs



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11 Value Stream Mapping & Lead Time