Value Streams – Mapping –February 4, 2003
Delphi Manufacturing System (DMS)
Value Stream Mapping
Rev. 05 February 2001 (Version 4.1)
Value Streams – Mapping –February 4, 2003
Introduction
Institutionalized at Delphi as our approach to lean manufacturing
Lean manufacturing is the balanced use of people, equipment
and material that gives the lowest life cycle cost.
Delphi’s lean enterprise requires our suppliers’ involvement as
part of the total value chain
Commitment is required from our entire supply chain to enable
us to provide our customers with the higher value they demand
and deserve
Delphi Manufacturing System
Value Streams – Mapping –February 4, 2003
Lean Thinking - as summarized by James Womack
• Specify VALUE by Product
• Identify the VALUE STREAM
• Make the Product FLOW
• at the PULL of the Customer
• in Pursuit of PERFECTION“Identifying the entire value stream for each product family is the next step in lean thinking.” - J. Womack & D. Jones, Lean Thinking
Value Streams – Mapping –February 4, 2003
Value Stream Mapping
According to Womack and Jones, the authors of the book Lean Thinking, management must change their focus
– From:» departments
» functions
» firms
» existing assets and technologies
– To:
» the value stream for specific products
Value Streams – Mapping –February 4, 2003
Value Stream Mapping
Womack and Jones’ Five-Step Approach was followed by many:1. Find a change agent (how about you?)
2. Find a sensei (a teacher)
3. Seize or create a crisis
But most jumped from Step Three to Step Five5. Pick something and get started
And skipped Step Four4. Map your value streams
Value Streams – Mapping –February 4, 2003
Value Stream Mapping
Many Have Left Out Flow Kaizen
This leads to isolated improvement efforts that do not lead to a total system improvement
“Random Acts of Goodness”
This leads to isolated improvement efforts that do not lead to a total system improvement
“Random Acts of Goodness”
Value Streams – Mapping –February 4, 2003
Why focus on Flow?
Understanding and managing manufacturing from a flow based perspective lends itself to a more comprehensive approach to the identification and elimination of elimination of wastewaste
There is a direct link between flow and cost
New BusinessNew Business Sustainable ProfitsSustainable Profits
New BusinessNew Business Sustainable ProfitsSustainable Profits
DecreasedDecreasedCostCost
DecreasedDecreasedCostCost = =
ImprovedFlow
ImprovedFlow
DecreasedDecreasedCostCost
DecreasedDecreasedCostCost = =
EliminationEliminationof Wasteof Waste
EliminationEliminationof Wasteof Waste
ImprovedFlow
ImprovedFlow = =
Value Streams – Mapping –February 4, 2003
Some Lessons Learned
Management must lead the designand introduction of lean value streams.
Techniques System Philosophy Random use of the tools is not enough.
The tools must comprise a system to give customers what they want, when they want it, with minimum waste.
Focus on flow to create a system.
LeanProcessSystems
SmallLots
PullSystems
LevelScheduling
Standard Operation
s
Lead TimeReduction
ErrorProofing
P M
Containerization
QuickSet-up
FlowLayout
Transportation
Reduction of
Variation
ProcessCapability
Employee Involvement
W P O
Value Streams and Mapping
Value Streams – Mapping –February 4, 2003
A Value Stream is all the actions (both value added and non-value added) required to bring a product to the customer.
It is:
“Big Picture”, not individual processes
Improving the whole, not just optimizing
the parts
What is a Value Stream?
Value Streams – Mapping –February 4, 2003
SITE PLANTraditional Process
Departments
11 22 33 44
SUPPLIERS CUSTOMERS
Materials Molding Trim Assembly Packing Air Ducts
Value Stream Owner
Value Stream Owner
Value Stream Owner
Bottles
Tanks
Resonators
ENTERPRISE
Value Stream Model
Value Streams – Mapping –February 4, 2003
1. What are you doing to ensure that your function supports the Value Streams?
2. What are you doing to make your own function Lean?
Questions for Lean Leaders
PresidentPresident
Business Line Teams
FunctionalExcellence
Value Stream Management
Fu
nctio
nal T
eams
Value Stream Organization
Value Streams – Mapping –February 4, 2003
RawMaterial
PROCESS
VALUE STREAM
FinishedProduct
PROCESSPROCESS
Stamping Welding AssemblyCell
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
Value Streams – Mapping –February 4, 2003
Enterprise Value Stream
Assembly Plants Distribution Customer
Design Raw Materials Parts ManufacturingRequirements
Value Stream
A Value Stream includes all elements that occur to a given product from inception through delivery to the customer.
Value Streams – Mapping –February 4, 2003
VALUE STREAM
FinishedProduct
RawMaterial
VSM methods are also used to
map business processes
ASSEMBLYLayout
Stamping Process Machining Process Assembly Process
Plant Value Stream
Value Stream
Typically we examine the value stream in a plant - from raw materials to finished goods.
Value Streams – Mapping –February 4, 2003
A visual representation of every process
in the material and information flow of a
product’s path from customer to supplier.
What is a Value Stream Map?
Value Streams – Mapping –February 4, 2003
Communication tool
Production tool
Business planning tool
A Value Stream Map is a:
Value Streams – Mapping –February 4, 2003
Helps you See Flow, Identify Waste, and
develop a Lean Value Stream.
Value Stream Mapping
Value Streams – Mapping –February 4, 2003
Value Stream Mapping
Value Stream Mapping (VSM) is a hands on process that uses icons to create a graphical representation of flow.
Value Streams – Mapping –February 4, 2003
Value Stream Mapping
• Emphasizes Material
and Information Flow
• Highlights Sources of Waste
Uses
• Link Individual Processes to their Customer(s) by Continuous Flow or Pull
• Each Process Produces only what its Customer needs when they need it
Goals
• Prioritizes Application of DMS Interdependent Elements
Strategy
Value Stream Mapping
Value Streams – Mapping –February 4, 2003
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?
Value Streams – Mapping –February 4, 2003
Implementation without a plan will lead to disaster
A Value Stream Map is a simple visual tool that helps you see the flow, find the waste and develop an improved process.
Eyes for Waste . . . . . . Eyes for Flow
Why do it?
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 Blood
Log Time In
Record Value
Draw Blood
Record Value
Take X Ray
Review X Ray
Review Blood
Compile data frompatient records
Log Time OutPull patients toLevel Schedule
FIFO
Retake if Error Retake if Error
Verify 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 Minutes
C/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes
96% Improvement in TPCT
Value Streams – Mapping –February 4, 2003
Understand how the worksite currently operates
Design a lean flow
Plan how to get there
Identify Value Stream
Current StateDrawing
Action Plan
Future-StateDrawing
Value Stream Mapping Process
Identify improvement opportunities
Identify and resolve gaps
Specific process / product family
Value Streams – Mapping –February 4, 2003
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 A
Log Time In
Record Value
Draw Blood
Record Value
Take X Ray
Review X Ray
Review Blood
Log Time Out
Record 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 Patients
Fill Room Next
Waiting RmA
Capacity 4 Patients
Fill Room First
Stop if “A” is Full
I
PeopleWaiting
Direct from A only if B empty
X Ray Blood Draw
Record Value
Take X Ray
Record Value
Draw 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 Minutes
C/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 Blood
Log Time In
Record Value
Draw Blood
Record Value
Take X Ray
Review X Ray
Review Blood
Compile data frompatient records
Log Time OutPull patients toLevel Schedule
FIFO
Retake if Error Retake if Error
Verify 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 Minutes
C/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes
96% Improvement in TPCT
Action Item Responsible
Improve 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 Process
Value Streams – Mapping –February 4, 2003
The Steps
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
Step 8:
VSM Current State
Select a product family
Form a team
Understand customer demand
Map the process flow
Map the material flow
Map the information flow
Calculate Total Product cycle time
Detail off-line activities (optional)
Value Streams – Mapping –February 4, 2003
Form a Team
Cross Functional Team
Manufacturing
FinancialPurchasing
Leadership
ProductionControl
EngineeringSensei
This step is critical to insure successful implementation
VSM Current State
Select a cross-functional team– Select team members
familiar with the process– Make sure the team is
trained to use VSM
Designate a Champion(typically a line manager)
Value Streams – Mapping –February 4, 2003
Sources for customer data– Plan for Every Part (PFEP)– Industrial Engineering budgeted volumes– Production Control forecasts
» Analyze variation (daily, weekly, monthly…)
– Production history» Analyze variation (daily, weekly,
monthly…)– Sales information databases
» Product changes, new business opportunities
Understand customer demand VSM Current State
CUSTOMER
Volume I nfo:20,000 pcs/month
Std. pack = 300pcs2 shif ts
Takt = 54s
CUSTOMER
Volume I nfo:20,000 pcs/month
Std. pack = 300pcs2 shif ts
Takt = 54s
Value Streams – Mapping –February 4, 2003
Tailor the data box for your plants needs.
The data box should be open ended to allow for additional attributes.
Data Box
Data Box
Current State
Value Streams – Mapping –February 4, 2003
– Don’t spend excess time to determine if uptime is 82% or 82.8%.
– Do spend time to identify specific areas where uptime impacts the flow of the value stream. Is uptime 80% or 65%?
Data Collection
A Value Stream Map provides a high level picture so absolute precision is not required.
– It is necessary, however, that the information at least be directionally correct.
For Example:
Value Streams – Mapping –February 4, 2003
Attribute Data to Collect
How Operations are scheduled
Shipping/Receiving schedules
Pack sizes at eachprocess
Demand rates by process (Takt Time)
Working hours and breaks
Inventory Points (location & size)
Work-in-process inventory
Overtime per week
Process cycle time
Number of product variations at each step
Batch (lot) sizes
Changeover time Changeover
frequency
Scrap
Rework
Downtime
Data Collection
Value Streams – Mapping –February 4, 2003
Identify Opportunities for Improvement
?
Data Collection
Value Streams – Mapping –February 4, 2003
Include all output from a process so you can identify
bottlenecks.
C/ T = 2s
Takt = 5s
2 Shif ts
C/ O = 4 hours
5% Downtime
2 Presses
WI P = 5,000 pcs
STAMPI NG
Map the Process FlowVSM Current State
Collect data from the production floor
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/Scrap/ReworkC/O = 25 min
FINISHED GOODSWELDING ASSEMBLYSTAMPING
UPTIME
CHANGEOVERSCRAP
Layout
CUSTOMER
Volume Info:20,000 pcs/monthStd. pack = 300
pcs2 shiftsTakt = 54s
Value Streams – Mapping –February 4, 2003
Include all output from a process so you can identify
bottlenecks.
C/ T = 2s
Takt = 5s
2 Shif ts
C/ O = 4 hours
5% Downtime
2 Presses
WI P = 5,000 pcs
STAMPI NG
Map the Process FlowVSM Current State
Collect data from the production floor
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/Scrap/ReworkC/O = 25 min
FINISHED GOODSWELDING ASSEMBLYSTAMPING
UPTIME
CHANGEOVERSCRAP
Layout
CUSTOMER
Volume Info:20,000 pcs/monthStd. pack = 300
pcs2 shiftsTakt = 54s
Value Streams – Mapping –February 4, 2003
Include suppliers of key
components.
Map the Material FlowVSM Current State
Use icons to show push or pull
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/
Scrap/Rework
C/O = 25 min
FINISHED GOODSWELDING ASSEMBLYSTAMPING
Steel Supplier
I
Steel
4 days
I
10,000 pcs
10 days
I
2,000 pcs
2 days
I
1,200 pcs
1.2 days
Mon &
Wed
1 timedaily
UPTIME
CHANGEOVERSCRAP
Layout
CUSTOMER
Volume Info:20,000 pcs/month
Std. pack = 300
pcs2 shifts
Takt = 54s
Value Streams – Mapping –February 4, 2003
Include suppliers of key
components.
Map the Material FlowVSM Current State
Use icons to show push or pull
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/
Scrap/Rework
C/O = 25 min
FINISHED GOODSWELDING ASSEMBLYSTAMPING
Steel Supplier
I
Steel
4 days
I
10,000 pcs
10 days
I
2,000 pcs
2 days
I
1,200 pcs
1.2 days
Mon &
Wed
1 timedaily
UPTIME
CHANGEOVERSCRAP
Layout
CUSTOMER
Volume Info:20,000 pcs/month
Std. pack = 300
pcs2 shifts
Takt = 54s
Value Streams – Mapping –February 4, 2003
There are many information sources FIND THEM
Map the Information FlowVSM Current State
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/
Scrap/Rework
C/O = 25 min
FINISHED GOODSWELDING ASSEMBLYSTAMPING
Steel Supplier
PC&L
MRP
MSS
I
Steel
4 days
I
10,000 pcs
10 days
I
2,000 pcs
2 days
I
1,200 pcs
1.2 days
Mon &
Wed
1 timedaily
6 WeekRolling
Forecast
WeeklyOrder
WeeklyOrder
6 WeekRolling
ForecastWeekly Build
ScheduleDaily ShipSchedule
UPTIME
CHANGEOVERSCRAP
Layout
CUSTOMER
Volume Info:20,000 pcs/month
Std. pack = 300
pcs2 shifts
Takt = 54s
Value Streams – Mapping –February 4, 2003
There are many information sources FIND THEM
Map the Information FlowVSM Current State
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/
Scrap/Rework
C/O = 25 min
FINISHED GOODSWELDING ASSEMBLYSTAMPING
Steel Supplier
PC&L
MRP
MSS
I
Steel
4 days
I
10,000 pcs
10 days
I
2,000 pcs
2 days
I
1,200 pcs
1.2 days
Mon &
Wed
1 timedaily
6 WeekRolling
Forecast
WeeklyOrder
WeeklyOrder
6 WeekRolling
ForecastWeekly Build
ScheduleDaily ShipSchedule
UPTIME
CHANGEOVERSCRAP
Layout
CUSTOMER
Volume Info:20,000 pcs/month
Std. pack = 300
pcs2 shifts
Takt = 54s
Value Streams – Mapping –February 4, 2003
Upper line is Production Lead Time measured in days or hours
– Production Lead Time = Inventory Quantity Daily Customer Requirement
Lower line is Process Time measured in minutes or seconds
Add Production Lead Time and significant Process Times to estimate Total Product Cycle Time
– Total time for one part to make its way from raw material as received to finished product shipped to customer
– Total time dock to dock
Add Process Times to determine the Value-Added Time
Total Product Cycle Time Metrics
Value Stream Mapping
Value Streams – Mapping –February 4, 2003
Calculate Total Product cycle timeVSM Current State
Figure IG-2-F: Total Product Cycle Time
1 Shift
Overtime = 4hr/d
C/T = 2s
Takt = 5s
2 Shifts
C/O = 4 hours
5% Downtime
2 Presses
WIP = 5,000 pcs
WIP = 1,500 pcs
Takt = 8s
4 Operators
C/T = 7s
2% Scrap/Rework
20% Downtime
7 Operators
Takt = 12s
C/T = 11s
WIP = 600 pcs
10% Downtime/Scrap/Rework
C/O = 25 min
FINISHED GOODSWELDING ASSEMBLYSTAMPING
Steel Supplier
PC&L
MRP
MSS
I
Steel4 days
I
10,000 pcs10 days
I
2,000 pcs2 days
I
1,200 pcs1.2 days
Mon &
Wed
1 time
daily
6 Week
Rolling
Forecast
Weekly
Order
WeeklyOrder
6 Week
Rolling
ForecastWeekly Build
Schedule
Daily Ship
Schedule
UPTIME
CHANGEOVERSCRAP
Layout
4 days
5 days
10 days
1.5 days
2 days
.6 days
1.2 days
TPc/t = 24.3 daysProcessing Time
Inventory Time
CUSTOMER
Volume Info:20,000 pcs/month
Std. pack = 300pcs2 shifts
Takt = 54s
Value Streams – Mapping –February 4, 2003
Detail Off-line Activities (optional)VSM Current State
C/ T = 4s
Takt = 5s
3 Shif ts
C/ O = 15 min
5% Downtime
4 presses
WI P = 240 pcs
DI E BENCH
I
Dies
12 Shif ts
I
Dies
2 Shif ts
DI E RECEI VI NG DI E SHI PPI NG
1 operator
1 Shif t
C/ T = 10 min
12 operators
3 Shif ts
C/ T = 40 hrs
1 operators
1 Shif t
C/ T = 40 min
Fork Truck1 time perday
Die Checklist &Yellow Tag Status
Daily Priorities(verbal communication)
STAMPI NG
Fork Truck(movementon demand)
Useful when a critical process or activity impacts the value stream.
– Examples: die change; trades response.
Value Streams – Mapping –February 4, 2003
What is Takt Time?Takt Time is the Cycle Rate at which
production should run to meet customer demand
Scheduled Run Time
Customer Requirements
27,000 sec460 pieces= 59 seconds
59 sec.
59 sec.
59 sec.
Data Collection
The idea is to synchronize the pace of production with the
customer.
Value Streams – Mapping –February 4, 2003
Operator Balancing to Takt Time
Data Collection
TIMEin seconds
TAKT TIME
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10
Step 11
Step 12
Step 13
Step 14
Step 15
Step 16
Step 17
OP 1 OP 2 OP 3 OP 4
Operators C/TBalanced
Not Balanced
Value Streams – Mapping –February 4, 2003
Value Stream maps are drawn using icons to represent the material,information and process flows of the value stream
Value Stream Mapping
– There are many defined icons (see appendix)– Icons specific to your operation may be added as long as
they are visually descriptive and understood by the entire operation
Appen
dix
Mapping Icons
10 days
1 sec
7.6 days
38 sec
1.8 days
45 sec
2.6 days
61 sec
2 days
39 sec
4.5daysProduction Lead Time = 28.5 days
Processing Time = 184 seconds
Weldon Inc.Current StateMay 24, 2000
Value Streams – Mapping –February 4, 2003
Value Stream Mapping
Value Stream Mapping is a language
that must be practiced
Value Streams – Mapping –February 4, 2003
Mapping Tips Always collect current state information while walking along the pathway of material and information flows yourself.
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 not personally obtain.
Map the whole value stream yourself.
Always draw by hand, in pencil
Value Stream Mapping
Value Streams – Mapping –February 4, 2003
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
Value Streams – Mapping –February 4, 2003
Required ToolsValue Stream Mapping
Can be done without delay. As you draw you will think of further information you need.
Can do it yourself, which is key to understanding the material and information flows.
You focus on understanding the flows not the computer. The point of value stream mapping is not the map, but understanding the flow of material and information.
Having to manually fine-tune your drawings will improve your mapping ability.
Always draw by hand, in pencil!
Value Streams – Mapping –February 4, 2003
HANDOUT
Value Stream Mapping
Value Streams – Mapping –February 4, 2003
Activity: Acme Stamping
Value Streams – Mapping –February 4, 2003
Acme Stamping Activity
Acme Stamping produces components for vehicle assembly plants. This case study concerns one product family: a stamped-steel steering bracket. This product is made in two versions: one for left-side drive cars and one for right-side drive. These components are sent to the State Street Vehicle Assembly Plant (the customer).
Value Streams – Mapping –February 4, 2003
Task
Draw the current state Value Stream Map for Acme Stamping including Metrics
Approximate Total Time:
20 min.
Value Stream Mapping
18,400 pcs/mo-12,000 “LH”- 6,400 “RH”Tray = 20 pieces2 shifts
State Street
Steering Brackets Current State June 6, 2000
Stamping
200 Ton
S. Weld #1 S. Weld #2 Assembly #1 Assembly #2 Shipping
Staging
18,400 pcs/mo-12,000 “LH”- 6,400 “RH”Tray = 20 pieces2 shifts
C/T = 1 secondC/O = 1 hourUptime = 85%2 shifts27,000 sec. avail.
C/T = 38 secondsC/O = 10 minutesUptime = 100% 2 shifts27,000 sec.avail.
C/T = 45 secondsC/O = 10 minutesUptime =80% 2 shifts27,000 sec. avail.
C/T = 61 secondsC/O - 0Uptime = 100% 2 shifts27,000 sec. avail.
C/T = 39 secondsC/0 = 0Uptime = 100% 2 shifts27,000 sec. avail.
State Street
Steering Brackets Current State June 6, 2000
Stamping
200 Ton
S. Weld #1 S. Weld #2 Assembly #1 Assembly #2 Shipping
Staging
18,400 pcs/mo-12,000 “LH”- 6,400 “RH”Tray = 20 pieces2 shifts
C/T = 1 secondC/O = 1 hourUptime = 85%2 shifts27,000 sec. avail.
C/T = 38 secondsC/O = 10 minutesUptime = 100% 2 shifts27,000 sec.avail.
C/T = 45 secondsC/O = 10 minutesUptime =80% 2 shifts27,000 sec. avail.
C/T = 61 secondsC/O - 0Uptime = 100% 2 shifts27,000 sec. avail.
C/T = 39 secondsC/0 = 0Uptime = 100% 2 shifts27,000 sec. avail.
Michigan Steel .State Street
Steering Brackets Current State June 6, 2000
Stamping
200 Ton
Coils10 days
4600 LH2400RH
S. Weld #1 S. Weld #2
1100 LH600 RH
1600 LH850 RH
Assembly #1
1200 LH640 RH
Assembly #2
2700 LH1440 RH
Shipping
Staging
18,400 pcs/mo-12,000 “LH”- 6,400 “RH”Tray = 20 pieces2 shifts
C/T = 1 secondC/O = 1 hourUptime = 85%2 shifts27,000 sec. avail.
C/T = 38 secondsC/O = 10 minutesUptime = 100% 2 shifts27,000 sec.avail.
C/T = 45 secondsC/O = 10 minutesUptime =80% 2 shifts27,000 sec. avail.
C/T = 61 secondsC/O - 0Uptime = 100% 2 shifts27,000 sec. avail.
C/T = 39 secondsC/0 = 0Uptime = 100% 2 shifts27,000 sec. avail.
I I I I I
I
Michigan Steel .State Street
Tues &Thurs
1 x Daily
Steering Brackets Current State June 6, 2000
Production Control
MRP
6-week Forecast
Weekly Fax
Stamping
200 Ton
Coils10 days
4600 LH2400RH
S. Weld #1 S. Weld #2
1100 LH600 RH
1600 LH850 RH
Assembly #1
1200 LH640 RH
Assembly #2 Shipping
Staging
30/60/90 day Forecast
DailyOrder
18,400 pcs/mo-12,000 “LH”- 6,400 “RH”Tray = 20 pieces2 shifts
C/T = 1 secondC/O = 1 hourUptime = 85%2 shifts27,000 sec. avail.
C/T = 38 secondsC/O = 10 minutesUptime = 100% 2 shifts27,000 sec.avail.
C/T = 45 secondsC/O = 10 minutesUptime =80% 2 shifts27,000 sec. avail.
C/T = 61 secondsC/O - 0Uptime = 100% 2 shifts27,000 sec. avail.
C/T = 39 secondsC/0 = 0Uptime = 100% 2 shifts27,000 sec. avail.
Weekly Schedule
Daily Shipschedule
10 days
1 second
7.6 days
38 seconds
1.8 days
45 seconds
2.6 days
61 seconds
2 days
39 seconds
4.5 days
I I I I
2700 LH1440 RH
I
I
Michigan Steel .State Street
Tues &Thurs
1 x Daily
Production Lead Time = 28.5 Days Value-added Time = 184 seconds
Steering Brackets Current State June 6, 2000
Value Streams – Mapping –February 4, 2003
Waste is anything that does not directly add value to the final product or contribute to the products transformation.
Waste only adds time and cost, no value. Waste is the reason that product flow stops and is the cause for non competitiveness.
Over-Production
MaterialMovement
Processing
Waiting
Inventory
Correction
Motion
OFWASTE
TYPES
There are seven basic types of waste known as
C O M M W I PC O M M W I P
Value Stream Mapping
Value Streams – Mapping –February 4, 2003
Waste is any element that adds no value to the final product Waste is non value added (only adds cost and time) Waste is a symptom of problems in a value stream
The 7 Wastes
– Correction
– Overproduction
– Movement of Material
– Motion
– Waiting
– Inventory
– Processing Contributors to Waste
– Unevenness
– Overburden
– Current Process Methods Ways to Eliminate Waste
– Simplify
– Combine
– Eliminate
Standardization & Waste
Solution: Find and address the causes of waste !
Value Streams – Mapping –February 4, 2003
Other Common Waste
Searching or waiting for informationor material
Miscommunication
Lack of Consistent Standards
Persistent misconception– Stubbornness
Lack of training
Waste
Value Streams – Mapping –February 4, 2003
...by entering the never ending cycle of the 5 KAIZEN STEPS to become a lean, agile enterprise.
5. Kaizen-Layout
4. Kaizen-Equipment
3. Kaizen-Flow & Process
2. Standardization
1. OBSERVATION
…through the identification and elimination of:
Waste - Fluctuation - Unreasonable Practices
Underlying concept: Implement the best possible, lean combination of the 3M’s:
…focusing on the 3S’s (SSStip):
Methodology
Value Streams – Mapping –February 4, 2003
Kaizen
On-goingobservationsto identifywaste andcontinuousimprovementopportunities.
Problem solvingand standardization
Observe
Poor work distribution Employees not engaged Unorganized and/or dirty
work areas Mistakes and Errors Long Delays Multiple Approval Levels High inventories
Standardize
Interdependent Elements Flow Manufacturing
System Design Employee Environment &
Involvement Workplace Organization Quality Operational Availability Material Movement
Observation
Our observations will help to pinpoint which DMS Interdependent Element can provide guidance for the standardization step.
Value Streams – Mapping –February 4, 2003
Problem Solving
Develop “eyes for waste”
Hiding problems will
undermine the system
“No Problem” IS
Problem
Problem Solving is a key ingredient of a successful company’s culture and must:
– Become part of every employee’s daily routine.– Focus on root causes.– Be supported by continuous follow-up.
Opportunities for Improvement
Value Streams – Mapping –February 4, 2003
Opportunities for Improvement
Standardized work– Documented (common) process– Delegation of authority
Workplace organization– Visual controls
Information databases
Cross-functional teams
Value Streams – Mapping –February 4, 2003
Standardized Work InstructionsOpportunities for Improvement
Especially needed for training of new-hires and transferred employees
Allows the organization to retain knowledge and best practices
Includes check sheetsand guidelines
SPECIAL ADVERTISEMENT FOR THE DMS EMPLOYEE ENVIRONMENT AND INVOLVEMENT MANUAL
What is Standardized Work?
Standardized Work are the proper methods and procedures required to perform a job task. Operators are trained to follow these methods and management audits the process and provides re-training when necessary.
Operator Certification ensures that operators have the knowledge, skills and abilities to perform these tasks.
Value Streams – Mapping –February 4, 2003
Workplace Organization - Visual Controls
Opportunities for Improvement
Strict workplace organization– Especially for common areas
Where in the heck is the hammer?
Tool Storage
Value Streams – Mapping –February 4, 2003
Workplace Organization - Visual ControlsOpportunities for Improvement
Strict workplace organization– Especially for common areas
Tool Storage
Here’s the hammer?
Value Streams – Mapping –February 4, 2003
Similar to a supermarket for parts - data can be kept up to date and pulled when needed
– Open capacity for products and processes– Cost of capacity
Sales andMarketing
Operations
Refresh and verify data CustomerQuote
Supermarkets & DatabasesOpportunities for Improvement
FIFO
Value Streams – Mapping –February 4, 2003
Simple, Visual Brainstorming Process Link Process, Material and Information Flows Provide a Blueprint for Implementation
– Can be used to create a single (common) process
Provide a Common Language– Easy to share between regions, divisions, countries
SummaryValue Stream Mapping
Value Streams – Mapping –February 4, 2003
AND...
Waste
Summary
Provide the means to see information, material, and process flows.
Support prioritization of continuous improvement activity.
Provide the basis for improving Total Product cycle time.
Course Objectives