FINAL VSM V1 DINNER MEETING SEPT132017asqprinceton.org/wordpress/wp-content/uploads/2017/... · í ï 6$1' 52&. &(0(17 yd 0lq 0lq 0lq 0lq 0lq 0lq 0lq 0lq qyd 0lq 0lq 0lq 0lq 0lq 0lq

Value-stream mapping to create value andeliminate muda

Richard Herczeg and Dr. Guru ChadhaASQ Princeton NJ SectionDinner MeetingSep 13, 2017

(c) 2017 Richard Herczeg, Guru Chadha1

Dr. Guru Chadha

2

Dr. Guru ChadhaTransformation Expert. Coach. Facilitator.

Global Project Manager: Transforming Performance, Development, and Learning (2016 to present)

Process Engineer: Lean Practitioner for the Boeing Production Systemnationally for Defense and Commercial Aircraft Production (2009 – 2014)

Director Business Transformation: Deployed and sustained Lean globally(2014-2016)

Senior Manager Business Transformation: Corporate Six Sigma Team(2006-2009)

Quality Systems Engineer: Management System (2002-2006)

Process Improvement Coach: (2013 to present)

(c) 2017 Richard Herczeg, Guru Chadha

D.B.A. and M.S.Quality SystemsManagement, 2012 and 2004

B.E.Mechanical Engineering, 1992

ExecutiveCoaching, 2017-18

3

Richard HerczegProject Manager, Business Analyst, Black Belt, Coach

• 8 year volunteer of ASQ Princeton Section. Roles included Chair (Twice), Education Chair, Program Chair & Treasurer

• 5 year Project Manager at IEEE HQ - leading efforts on the design, development and implementing of learning events for local IEEE sections at Global level

• 17 years at Johnson & Johnson Consumer, in area of Business Process Improvement

• 3 years of experience in Health Care & Manufacturing• B.S. Economics - College of NJ : 1994 • M.B.A in Org. Behavior - Georgian Court University: 2000• M.B.A. in Quantitative Methods - Northcentral University: 2011• Certified Six Sigma Green Belt - Johnson & Johnson: 2002• Certified Six Sigma Black Belt - CSSBB ASQ - 2007• Certified Lean Six Sigma Master Blackbelt - Villanova University: 2010• Project Management Professional (PMP) – PMI : 2010• Certified Business Analyst Professional - CBAP: In Progress


Agenda Lean Methodology / Mindset

VSM Fundamentals

VSM Journey & Gemba: Current State Future State Ideal State

VSM Applications

Utilizing VSM as a key strategic tool

Q&A (Interactive session)

4(c) 2017 Richard Herczeg, Guru Chadha

Process Improvement Methodologies

5

Quality Progress 2002 : How to Compare Six Sigma, Lean and Theory of Constraints. David Nave.


Lean Principles

1. Specify value

2. Map the flow of value

3. Make value flow

4. Establish pull

5. Pursue perfection

Lean is primarily focused on maximizing value flow in the process through the elimination of waste


Value

CPR:• Will the customer pay for it?• Are we processing / changing form,

fit, and function?• Are we doing it right the first time?


Value

Value-Added (VA):Activities that must be performed to meet customer requirements.

– Submit a proposal– Create a computer program– Create a design– Answer a tech request

Non Value-Added (NVA):Activities that do not contribute to meeting customer requirements.

– Review and Approval– Movement to other organizations– Rework– Waiting in an inbox

Business Value-Added (BVA):Activities that are essential to conducting business, but could be eliminated without impacting the product functionality or service to the customer.

– Order supplies– Update Personnel Records– Maintain copiers, faxes– Prepare Financial Reports


Muda – 8 deadly wastes


8

1

36

5

2

4

7

Excess production

Transportation

Over-processing

Waiting

Inventory

Defect

Motion

Not utilizing intellect

Tasks done in large batches rather than to match demand (typically leads to inventory)

Maintaining two processes (one for ‘urgent’ and one for ‘normal) increases wait times for ‘normal’ cases

Lack of correct ‘right first time' inputs drives multiple ‘touches’ of file

Hundreds of service requests are backlogged (which also leads to customers waiting)

Employee movement to reach for files

Paperwork delivered from admins desk to manager´s office

Rechecking order accuracy or check-the-checker activities

Experts working low priority case, not listening to SME ideas

Value-StreamStream:• FLOW is a beautiful thing!• Spiritual – in the zone!• Make the flow uninterrupted• Interruptions in the FLOW create problems


Value-Stream Map (VSM)


A VSM is a visual representation of material and information flow for a particular Value Stream.

VSM is hence a graphical tool

Start from the closest point to the customer, and work your way upstream through the various processes.

Process 2 Process 3Process 1

Upstream Downstream

Supplier CustomerInformation

Flow (Right-to-Left)

Process FlowFlow (Left-to-Right)

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CANALETA VSM


13

SAND,ROCK,CEMENT

va 25 Min. 5 Min. 2 Min. 2 Min. 1 Min. 3 Min. 480 Min 40 Min. nva 0 Min. 0 Min. 0 Min. 0 Min. 150 Min. 375 Min. 0 Min. 0 Min.

30 Feet 1 Feet 1 Feet 0 FEET 2 FEET 10 Feet 0 Feet 10 Feet TWICE TWICE 150 TIMES 150 TIMES 150 TIMES 150 TIMES

STAGE CEMENTCT = 15 Min.

Crew = 1SPACE = 12SQFT

Available Min = 480

Sales Rep

SALES ORDER

LOAD MIXERCT = 5 MinCrew = 1

SPACE= 3 SQFT

Available Min.= 480

Customer

MONTHLY SCHEDULE

CUSTOMERPICKUP

I

= inventory

I

1 Month

MONTHLY PICKUP DAILY

SCHEDULE

LOAD SHAKERCT = 2 MinCrew = 1

SPACE= 3 SQFT

Available Min.= 480

SHAKINGCT = 2 MinCrew = 1

SPACE= 3 SQFT

Available Min.= 480

FORM REMOVECT = 1 MinCrew = 2

SPACE= 2 SQFT

Available Min.= 480

MOVE DRYINGCT = 3 MinCrew = 2

SPACE= 100 SQFT

Available Min.= 480

DRYINGCT = 480 Min

Crew = 0SPACE= 100 SQFT

Available Min.= 480

SHIPPING STAGINGCT = 40 Min

Crew = 2SPACE= 200 SQFT

Available Min.= 480

WEEKLY PICK-UP

SCHEDULE

5 % Waste

300

REMOVE 2 AT AT TIME

NEED 300 BRICKS DAILY TO MEET

DEMAND

300 300

Monthly Pickup, Sales Rep, Scheduling, Operator, Form

Removal , Move to Drying and Staging all done by same 2

People

Kaizen KaizenKaizen

VSM EXAMPLE


Let’s practice how to see


Working as a table team, create a bulleted list of the high-level process steps based on what you see in the video

Create Current State VSM at home (in the interest of time during our session!)

https://www.youtube.com/watch?v=tyeJ55o3El0

VSM as an analytical tool


Lead Time

Move Wait“Gather

Data”“Create Document"

Cycle Time

Step #1 Step #2 Step #3Input Order

Step #4 Step #5 Step #6

Process Time

VSM is not only a graphical tool but also an analytical tool.

VSM as an analytical tool


Collect during Gemba Walk: • Cycle time• Changeover/information gathering/log on time• Process reliability (uptime) – computer, phones, copier, etc.• Scrap/Rework/Defect rate (turn backs in the process)• Number of operators performing the step• Batch sizes produced at the step • Working time (minus breaks) – how many shifts?• Pack size – What does the customer want in quantity delivered?• Document the inventory at each process step

VSM as a line balancing tool


VSM is not only a graphical and analytical tool but also a line balancing tool.

Source: http://www.lean.org

Seeing Opportunities for Improvement during Gemba Walks – 3 M’s


Source: http://www.lean.org/lexicon/muda-mura-muri

Seeing Opportunities for Improvement during Gemba Walks – 8 deadly wastes


8

1

36

5

2

4

7

Excess production

Transportation

Over-processing

Waiting

Inventory

Defect

Motion

Not utilizing intellect

Tasks done in large batches rather than to match demand (typically leads to inventory)

Maintaining two processes (one for ‘urgent’ and one for ‘normal) increases wait times for ‘normal’ cases

Lack of correct ‘right first time' inputs drives multiple ‘touches’ of file

Hundreds of service requests are backlogged (which also leads to customers waiting)

Employee movement to reach for files

Paperwork delivered from admins desk to manager´s office

Rechecking order accuracy or check-the-checker activities

Experts working low priority case, not listening to SME ideas

Capturing Opportunities for Improvement – Kaizen Starbursts


PROBLEM AREA ON the

CHART

Scrap Rate 11%

Set-up 55 minutes

Excessive Inventory 3,450 pcs

Lead-time 5 weeks

Post at the appropriate spot on your Value Stream Map Current State

Prioritizing Opportunities for Improvement –Impact vs. Effort Matrix


• Root Cause Problem Solving for high complexity problems / opportunities

• Quick Wins for low high complexity problems / opportunities

• Action Plans for implementation

Source: http://www.asq.org

Solutioning for Opportunities for Improvement – ECRSS


E

ECRSS

• Simplify-Take complexity out of the process

• Eliminate-Identify steps that can be quickly and easily eliminated

•Combine-Combine steps without any negative impact

• Standardize-Create standard work using checklists and templates

•Rearrange-Rearrange steps i.e. change work sequence

C

RS

S

S

S

Let’s practice how to solution


Working as a table team, create a bulleted list of solutions for the wastes that you saw in the video

Create Future State VSM at home (in the interest of time during our session!)

https://www.youtube.com/watch?v=tyeJ55o3El0

VSM as a key strategic tool


Advanced Lean companies utilize VSM not only as graphical, analytical, and line-balancing tool but also as a key strategic tool

Key VSM’s are directly linked to strategic and tactical plans

Key improvements in VSM’s are synced up with annual business planning and budgeting cycle

In addition to operational metrics, financial metrics are linked and shown on VSM’s

In addition to Current and Future State VSM’s, Ideal State VSM is created to visualize and achieve improvements strategically over 3 – 5 years timeframe

Q&A and Thank You!Richard Herczeg

732-557-1908

[email protected]

Guru Chadha, DBA

609-752-9408

[email protected]


Documents

FINAL VSM V1 DINNER MEETING SEPT132017asqprinceton.org/wordpress/wp-content/uploads/2017/... · í ï 6$1' 52&. &(0(17 yd 0lq 0lq 0lq 0lq 0lq 0lq 0lq 0lq qyd 0lq 0lq 0lq 0lq 0lq 0lq