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10/21/2013
1
Theory and practical application
case study
Christopher Martin
Maximized
Value Stream Mapping
Christopher Martin
• Production planning supervisor at Case IH
– Process improvement specialist with over 2
decades of exposure:
• production operations planning, materials
management and control, process improvement,
database/systems design and development
– Project activity in support of fabrication, welding,
painting and assembly on several production lines.
• President – Central Nebraska APICS Chapter
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Elements to Cover
• Value stream mapping – definition/theory
• Current state map
• Action plan to future state
• Future state map
• Case Study – VSM at the Case IH Grand Island
facility
• Workshop – Video Console VSM
What is Value Stream Mapping
VSM: process of mapping the primary material
and information flows in converting raw
material to finished product or creating a service
of value that a customer is willing to pay for.
Levels that can be mapped:
Process : Plant : Multiple plants: Cross company
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Benefits of VSM
• Visualize entire process
• Common language
• Demonstrates links between operations
• Flow decisions easy to identify
• Waste identified
• Continuous improvement tool - iterations
VSM Primary Maps
• Current state map
– How we are today including key measurement and
communication flows
• Future state map
– Where we plan to be a year or two from now
based on proposed process improvement activity
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Steps to a Current State Map
• Walk the process – start upstream
• Establish customer requirements
• Determine major product families
• Pick a primary flow and major product
• Walk again, measure key elements, count
inventory
• Draw current state map
Establish Customer Requirements
• Define takt time – pieces per day, week,
month, year – rate customer requires product
– 21 units per day in 8 hours, 100% utilization
• Factor 0.5 hr lunch, 2 - 15 min breaks
• Avaliable time => 7 hours => 420 mins
– 420/ 21 => 20 min takt time
• Goal is to produce 1 unit every 20 mins
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Determine Major Product and Flow
• Delineate major processes
– Simplify but cover major steps in the flow
2
Mix Ingredients
1
Bake Pizza
2
Cut/ Box Pizza
3
Sort for Delivery
2
Mix Ingredients
1
Bake Pizza
2
Cut/ Box Pizza
3
Sort for Delivery
2
Take Order
1
Prepare Bill
2
Order
Ingredients
3
Receiving
2
Get Ingredients
2
Measure
2
Prepare Boxes
2
Put in Warmer
2
Payment Process
Measure Process Data
• Typical data to measure – varies with product
– Cycle Time : Changeover time : Uptime : Lead time
– EPE – 'leveled' production time : Scrap rate
– # of Operators : Pack size : Available time
• Use smallest time measurement feasible for
product – seconds, minutes, hours, days
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Determine system triggers/ Info flow
• Examples of symbols used:Electronic Information
Withdraw Kanban Production Kanban
Pull
Kanban Post
Push
Supermarket
ProcessCustomer/ Supplier
Shipping TruckData Table
Primary elements to consider
• VA - value added activity
– impacts the fit, form or function of a product or
service that a customer is willing to pay for – eg
install gas cap on tank
• NVA - non value added activity
– elements in the conversion process that adds no
value to the product or service – eg move gas cap
to point of installation
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Draw Current State Map – eg: Pizza
CustomersSuppliers
Cycle Time: 5 mins
# of Employees: 2
Shifts: 3.
Cycle Time: 25 mins
# of Employees: 1
Shifts: 3
Cycle Time: 2 mins
# of Employees: 2
Shifts: 3
Cycle Time: 3 mins
# of Employees: 3
Shifts: 3
Take orders, prepare bils, order raw
materials, issue instruction to make pizza
Production Control
2
Mix Ingredients
1
Bake Pizza
2
Box Pizza
3
Sort for Delivery
Once Per Week
Daily
5 mins
7 Days
25 mins
0 Days
2 mins
0 Days
3 mins
0 Days
35 mins
0.25 Days 7.25 Days
Daily
I
I
Tickets
Bills
Cash/ CC Receipt
Review map for process inefficiencies
• Waste – 7 primary symptoms of problems
- Over-production : Waiting : Transportation
- Inventory : Motion : Over-processing : Defects
- NVA vs VA time
- Over or under takt
- Push systems
- Line balance
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Ask Primary Questions
• What is causing the waste?
• Where can we use continuous flow or pull?
• Where is best to trigger production?
• What is the bottleneck?
• How do we improve the bottleneck?
• How do we level production?
Determine Plan of Action
• Implement kanban
• Add kitting areas with kit carts
• Use standard packaging from suppliers
• Balance lines and reallocate resources
• Rearrange work stations for efficiency
• Mix model production where feasible
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List opportunity to improve – eg Pizza
• Implement electronic signals
• Increase frequency of delivery
• Reduce raw material inventory value
• Improve efficiency of boxing operations
• Increase speed of delivery
Draw Future State Map – eg Pizza
CustomersSuppliers
Cycle Time: 5 mins
# of Employees: 2
Shifts: 3.
Cycle Time: 25 mins
# of Employees: 1
Shifts: 3
Cycle Time: 0.25 mins
# of Employees: 1
Shifts: 3
Cycle Time: 3 mins
# of Employees: 3
Shifts: 3
Take orders, prepare bils, order raw
materials, issue instruction to make pizza
Production Control
2
Mix Ingredients
1
Bake Pizza
1
Cut/ Box Pizza
3
Sort for Delivery
Twice Per Week
Daily
(1 mins - internal)
3 Days
5 mins
0 Days
25 mins
0 Days
0.25 mins
0 Days
33.25 mins
0.10 Days 3.10 Days
Hourly
I
Bills
Cash/ CC Receipt
Boxes
Ingredients
3 Days
3 Days
1
Make Box
supermarket
kanban
Pre-make
boxes
Order
Screen
3 mins
0 Days
Improve
Delivery
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Develop Project Plan/ Kaizen Journal
• Add key responsible persons
• Add timelines with milestone measurements
• Develop teams – include primary operators
Case Study: Case IH – Grand Island
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Case Study – Case IH – Grand Island
• Case IH is a global leader in agricultural
equipment. With headquarters in the United
States, Case IH has a network of more than
4,900 dealers and distributors that operates in
over 160 countries. – Corporate Website
The Challenge: Grand Island Plant
• 2 major product lines and 7 minor products
• Over 200,000 pieces installed daily
• Manufacturing in 4 buildings
• Warehousing 2 miles away
• Varying production shifts
• Suppliers from all over the globe
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The Challenge – complex layout/ pace
Fabrication
Weld
Main Spine for Assembly
Feeder Lines
Supermarkets
Sub-Areas etc
Main Paint – 1 of 3
systems
The Challenge – Product & Process
• Major value product – Axial Flow Combine
– 3 major models, 20 model variations, thousands
of option combinations
• Major process flow
– Welding and assembly in multiple buildings using
multiple paint systems. Several lines support
major product with complex movement of parts.
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The Decision
• Product
– Pick high volume model
• AFX High Capacity
• Process
– Pick major component that travels major
processes – fab, weld, paint, assemble, ship
• Grain Tank
The Decision: Components
Component Growth
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The Decision: Path
Fabrication
Weld
Main Spine for Assembly
Feeder Lines
Supermarkets
Sub-Areas etc
Main Paint – 1 of 3
systems
Measurements
• Primary measurements taken
– Cycle time : Area lead time : Utilization
– Takt time – different paces due to mixed model vs
dedicated lines
– Inventory : EPE : Changeover time
– Number of shifts/associates
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Current State Map – 2009
Suppliers
Central Planning
Customers
Laser Cut Form Weld Paint GT Assembly UMF Line
WeeklyDaily
Build Card/
Line set Sheet
Main/ Trim
Buffer – 0 to 2 units
MRP
MRP/ leanFloleanFlo
Weekly requirements
1 yr forecast
6 week Frozen
Order sequence
0.80 hrs
2.5 Days
0.03 hrs
0.5 days
0.95 hrs
6 days
4.84 hrs
0.3 days
5.06 hrs
1 day
20.86 hrs
3 Days
3.17 6.01 hrs
13.3 days
2009 observation highlights
• High inventory especially pre-assembly areas
• Delays across lines despite Andon system
• Imbalance/overtime /high cycle times
• Excessive transportation
• Complicated electronic signals difficult to
match with physical movement
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Challenges to Future State beyond 09
• Reduce inventory while doubling output
• Balance lines to reduce resource waste/takt
• Improve material delivery flow/reliability
• Link major lines for continuous flow
• Optimize fabrication operations
• Use world class manufacturing (WCM) as
primary driver
Future State Map 2013 - increased vol
Suppliers
Central Planning
Customers
Laser Cut Form Weld Paint GT Assembly UMF Line
WeeklyDaily
Build Card/
Line set Sheet
Main/ Trim
Buffer – 0 to 2 units
MRP
MRP/ leanFloleanFlo
Weekly requirements
1 yr forecast
6 week Frozen
Order sequence
0.80 hrs
2.0 Days
0.03 hrs
0.5 days
0.45 hrs
2.5 days
4.84 hrs
0.1 days
1.87 hrs
0.5 day
14.12 hrs
0.3 Days
1.33 hrs 4.8 hrs
5.9 days
Reduce
WIP from
Steel
supplier
Kanban
flow
FIFO
Reduced
Takt across
assembly
Mixed
model GT
Sequenced
pull from
SM
SMED on
Brakes
Dynamic
Nesting
Reduced
Fleet
Kanban pulls
from WH
Implement
FIFO
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Overall results
• Almost doubled output with same shift plan
• Reduced lead time/inventory by 7.4 days
• Reduced cycle time by 40%
• Reduced assembly takt by 50%
• Millions saved due to improvement activity
• Changed overall culture of the plant
Challenges to the next Future State
• Continue expansion to all major components
• Reduce inventory between weld and fab
• Optimize paint and fabrication operations
• Continue line balancing and reduce cycle time
• Remove buffers, expand continuous flow
• Consistently include all associates in changes
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Workshop
• VSM of a small video game console
– Study current system and improve it
– Increased demand to 100 units per day
Situation at a glance
• Weekly electronic requirements feed
• MRP system to control daily orders
• Plant ships daily to the customer with delays
• Suppliers ship daily to the plant
• High overtime including weekends
• Struggle to properly balance workforce
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Plant Specification – 4 work cells
– Motherboard – C/T - 10 mins, Inv 50 completed,
100 pre-staged boards, 2 associates, 8 hour shift
– Console – C/T - 25 mins, Inv 25 completed, 3
associates, 8 hour shift
– Controller – C/T - 15 mins for controller and 5
mins to install to the body, Inv 25 completed, 2
associates, 8 hour shift
– Test – C/T - 5 mins testing and 5 mins to package,
Inv 75 completed packages, 2 associates, 8 hour
shift
Action Items
• Complete a current state map based on your
plant observations
• Review this map and develop a proposed set
of actions to improve the production system
• Complete a future state map based on your
recommendations
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Current State Map – Video Console
Customers
100/ DaySuppliers
Cycle Time: 10 mins
# of Employees: 2
Shift: 8 hours
Cycle Time: 25 mins
# of Employees: 3
Shift: 8 hours
Cycle Time: cont 15 mins
install: 5 mins
Total: 20 mins
# of Employees: 2
Shift: 8 hours
Cycle Time: test – 5 mins
pack – 5 mins
Total – 10 mins
# of Employees: 2
Shift: 8 hours
Production Control
2
Motherboard
3
Console
2
Controller
2
Test
Daily
10 mins
1 Days
25 mins
0.5 Days
20 mins
0.25 Days
10 mins
0.25 Days
65 mins
0.75 Days 2.75 Days
Daily
I
I
Daily Requirements
75 pcs25 pcs50 pcs 25 pcs
100 pcs
Weekly
Actions to improve to Future State
• Reduce cycle times towards 4.8 min takt
• Reduce inventory
• Improve pace operation – console assembly
• Improve transportation to customer
• Balance lines to streamline and achieve pull
• Streamline raw material delivery
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Future State Map: Video Console
Customers
100/ DaySuppliers
Cycle Time: 10 mins
# of Employees: 2
Shift: 8 hours
Cycle Time: 20 mins
# of Employees: 3
Shift: 8 hours
2 stations
Cycle Time: cont 15 mins
# of Employees: 2
Shift: 8 hours
Cycle Time: test – 5 mins
pack – 5 mins
install – 5 mins
# of Employees: 3
Shift: 8 hours
Production Control
2
Motherboard
3
Console
2
Controller
3
Test
Milk run
10 mins
0.5 Days
20 mins
0.25 Days
15 mins
0.25 Days
15 mins 55 mins
0.25 Days 1.25 Days
Milk Run
I
Daily Requirements
25 pcsMin - 10 pcs
Max – 25 pcs
50 pcs
Weekly
Takt Time
8*60100 = 4.8 mins
Add kanban
triggered
replenishment
Share
employees
Restrict
Supermarket
Cycle Time
reduction
Continuous
Flow
FIFO
Min - 10 pcs
Max – 25 pcs
Vary
frequency
to pace
Change
trucking Co
Thank You
Christopher Martin
(308) 379-8980 or (308) 850-6443
LinkedIn :
http://www.linkedin.com/profile/view?id=121894825
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Survey
http://tinyurl.com/lr3pjct
