8964335 Value Stream Mapping

By : Gaurav Narula

Demand Chain Solutions

Value Stream Mapping

Gaurav Narula

By : Gaurav Narula

Implementation without a plan will lead to disaster

A Value Stream Map is a simple picture that helps you focus on flow and eliminate the waste

Lean ImplementationWhy do Value Stream Mapping?

Finished GoodsAssembly

Layout

Welding

Rolling 6-wk ForecastWeekly Order

6 x / Day

PC & L6-wk forecast

Daily

Level Box

DA1 DA2 DA3

C/O Time =CT =TAKT Time3 Shifts

DT =Scrap =

Stamping

0 Overtime2 ShiftsMax Size# Material Handlers


DT =Scrap / Rework =


DT =Scrap / Rework=Small Lot # Operators

Customer

X pcs / monthStd Pack Qty

# Shifts

WIP =WIP = WIP =

Steel Supplier

Inv.TimeProc.Time TPc/t = ?? days ? days ? days ? days

? days ? days ? days

MAP THE FLOWS !

3

Eyes for Waste . . . . . . Eyes for Flow

By : Gaurav Narula

Objectives

Explain Value Stream Mapping

Complete a Current State Value Stream Map

Complete a Future State Value Stream Map with proposed Implementation Plan

By : Gaurav Narula

AgendaIntroduction to Value Stream Mapping

Current State MapData CollectionActivity: Map Current State

Review Current State Map Design Future State Future State Map Consider Key Questions Summary Activity: Design Future State

Session1

Session2

By : Gaurav Narula

Agenda - Session 1 Introduction to Value Stream Mapping

Current State Map

Data Collection

Activity: Map Current State

By : Gaurav Narula

Design Raw Materials

Definition of Value Stream

Assembly Plants Distribution Customer

2

Parts Manufacturing

Introduction to Value Stream Mapping

A Value Stream includes all elements (both value added and non-value added) that occur to a given product from its

inception through delivery to the customer.

Requirements

By : Gaurav Narula

VALUE STREAMPROCESS

AssemblyCell

PROCESSWelding

PROCESSStamping

FinishedProduct

RawMaterial


Typically we examine the value stream from raw materials to finished goods within a plant.

Definition of Value Stream

It is also possible to map business processes using Value Stream Mapping.

1

By : Gaurav Narula

Value Stream Mapping (VSM) is a hands-on process to create a graphical representation of the process, material and information flows within a value stream.

Definition of Value Stream Mapping


Layout

Welding


6 x / Day

PC & L6-wk forecast

Daily

Level Box

DA1 DA2 DA3

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap =

Stamping

0 Overtime

2 Shifts

Max Size

# Material Handlers

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework =

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework=

Small Lot # Operators

Customer


# Shifts

WIP =

WIP = WIP =

Steel Supplier

Inv.TimeProc.Time TPc/t = ?? days ? days ? days ? days


Future State Material, Information and Process Flowswith total Product Cycle Time


By : Gaurav Narula

Provide the means to see the material, process and information flows.

Support the prioritization of continuous improvement activities at the value stream

Provide the basis for facility layout

Objectives of Value Stream Mapping

Eliminate Waste 1


AND...

By : Gaurav Narula

Map the Current State

The Process

Analyze the Current State and

Design the Future State

4


Tues. & Fri.

PC & L

Weekly OrderMRP MSS

Weekly Order

# times/day

SteelSupplier

Steel

Pin# pcs# daysor shifts

I II

IStamping

Downtime

Changeover Time=4 hr

2 Shifts

TAKT =

2 Presses

Cycle Time =

ChangeOver

Welding

Layout

Scrap/Rework

Downtime = 20%

Uptime

# Operators

Cycle Time =

Weekly Build Schedule Daily ShipSchedule

6 Week Rolling Forecast6 Week Rolling Forecast

Finished Goods

Overtime =

# Shifts =

Assembly

DT, ScrapRework

WIP =

Cycle Time =

TAKT =

Changeover Time =

Layout

= 10%

Scrap

? days ? days ? days ? days? days ? days ? days

Inventory TimeProcessing Time

TPc/t = ?

TAKT =

WIP =

WIP = WIP =

X pcs/monthStd. Pack Qty.# shifts

Customer


Layout

Welding


6 x / Day

PC & L6-wk forecast

Daily

Level Box

DA1 DA2 DA3

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap =

Stamping

0 Overtime

2 Shifts

Max Size

# Material Handlers

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework =

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework=

Small Lot # Operators

Customer


# Shifts

WIP =

WIP = WIP =

Steel Supplier

Inv.TimeProc.Time

TPc/t = ?? days ? days ? days ? days


Create an implementation plan and execute it !

1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH

Establish TAKT & Flow in Tank Ass'y

Stamping Changeover Reduction

Reduce Stamping Buffer

Move Ass'y to Plant 10

Establish TAKT & Flow in Sender Ass'y

Pull To Sender Ass'y

Training

1999 2000Activity

By : Gaurav Narula


Current State Map

Data Collection


By : Gaurav Narula

Current State MapThe Steps

Select a Product FamilyForm a TeamUnderstand Customer DemandMap the Process FlowMap the Material FlowMap the Information FlowCalculate Total Product Cycle TimeDetail Off-Line Activities

Step 1:Step 2:Step 3:Step 4:Step 5:Step 6:Step 7:Step 8:

By : Gaurav Narula

Define value stream (product family)– Identify value stream from the customer end

– Product should pass through similar processes and common equipment

– Door-to-door in scope (within plant walls)

List part numbers

Current State MapStep 1: Select a Value Stream (Product Family)

By : Gaurav Narula

Select a cross-functional team

Select team members who are familiar withthe product

Ensure that teammembers are trained in theuse of VSM

Designate a champion (typically a line manager)

Current StateStep 2: Form a Team

Cross Functional Team

Manufacturing

PC & LMaintenance

Leadership

Product Engineering

Industrial EngineeringSensei

THIS IS CRITICAL 4

By : Gaurav Narula

Plan for Every Part Production Control

(monthly/weekly forecasts) Production history (day-to-day, month-to-month

variation)

Sales (product changes, new business, etc.)

Current State MapStep 3: Understand Customer Demand

Customer

Demand/month:Part A =Part B =Part C =

# of shifts =

1

Customer


# of shifts =

Current State Map

InventoryPart A =Part B =Part C =

# of shifts =

ShippingAssemblyWeldingStamping

Takt =C.T. =D.T. =FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP =

Takt =C.T. =

D.T. = 20%FTQ =C/O Time =Lot Size =# of ShiftsWIP =

Takt =C.T. =D.T. = FTQ =

C/O Time = 4 hrs.Lot Size =

# of ShiftsWIP =

ChangeoverDowntime FTQ

By : Gaurav Narula

Step 5: Map the Material Flow

Customer


# of shifts =

InventoryPart A =Part B =Part C =

# of shifts =


Takt =C.T. =D.T. =FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP =

Takt =C.T. =D.T. = 20%FTQ =C/O Time =Lot Size =

# of ShiftsWIP =


C/O Time = 4 hrs.Lot Size =# of ShiftsWIP =

Changeover Downtime FTQ

Current State Map

2 x/day

I

2 x/week

Supplier

1,200 pcsI

1,500 pcs

I800 pcs

I500 pcs

By : Gaurav Narula

Customer

Demand/month:Part A = 705 pcs.

Part B = 600 pcs.Part C = 1650 pcs.# of shifts =

InventoryPart A = 750 pcsPart B = 600 pcsPart C = 1650 pcs

# of shifts =


Takt =C.T. =D.T. =

FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP = 550 pcs.

Takt =C.T. =

D.T. = 20%FTQ =C/O Time =Lot Size =# of ShiftsWIP = 60 pcs.


C/O Time = 4 hrs.Lot Size =

# of ShiftsWIP = 25 pcs.


I I II

2 x/day

2 x/week

Supplier

1,200 pcs 1,500 pcs 800 pcs 500 pcs

PC & L

Weekly Build Schedule

Daily Ship Schedule

6 week rolling forecast

6 week rolling forecastWeekly Order

Weekly Order

Current State MapStep 6: Map the Information Flow

By : Gaurav Narula

Step 7: Calculate Total Product Cycle Time

Customer

Demand/month:Part A = 705 pcs.Part B = 600 pcs.Part C = 1650 pcs.# of shifts =

InventoryPart A = 750 pcsPart B = 600 pcsPart C = 1650 pcs

# of shifts =


Takt =

C.T. =D.T. =FTQ = 90%C/O Time =Lot Size =# of ShiftsWIP = 550 pcs.

Takt =C.T. =

D.T. = 20%

FTQ =C/O Time =Lot Size =# of ShiftsWIP = 60 pcs.

Takt =C.T. =D.T. =

FTQ =C/O Time = 4 hrs.

Lot Size =# of ShiftsWIP = 25 pcs.


I I II

2 x/day

2 x/week

Supplier

1,200 pcs 1,500 pcs800 pcs

500 pcs

PC & L

Weekly Build Schedule

Daily Ship Schedule

6 week rolling forecast

6 week rolling forecastWeekly Order

Weekly Order

.27 days .17 days.4 days .5 days1.0 days.18 days.02 days.008 days

TPc/t = 2.5 daysBy : Gaurav Narula

By : Gaurav Narula

Step 8: Detail Off-Line ActivitiesCurrent State Map

Show on the map using general icons Detail on another sheet using either reference

VSM and/or process flow-charting

IDies

Die RoomReceiving

Die RoomShipping(Remove from

ScheduleBoard)

Die Bench

IDies

2 shifts12 shifts

Schedule Board(Forecast)

Fork Truck

Press Room

By : Gaurav Narula

FIFO

Supermarket

SignalKanban

WithdrawalKanban

ProductionKanban Leveling

PhysicalPull

Kanbanarrivingin batches

KanbanPath

KanbanPost

First-InFirst-OutFlow

MAX 50 PCS

Process Kaizen

Current State MapAdditional Mapping Icons

By : Gaurav Narula

It is not necessary that attribute data be precise.

It is necessary that the information at least be directionally correct.

Knowing that uptime is 82.7% vs. 82% is normally not necessary.

An assumption of 80%, however, when reality is 65% can be detrimental in that it may substantially misdirect the future state development and the prioritization of improvement activities.

1

Data Collection

By : Gaurav Narula


Current State Map

Data Collection


By : Gaurav Narula

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 times

Number of product variations at each step

Batch (lot) sizes Changeover times

Changeover frequencies

Scrap

Rework

Downtime

Data Collection

By : Gaurav Narula

Tailor the data box for your plant’s needs. The data

box should be open ended to allow for additional attributes.

Data Box

Data BoxData Collection

By : Gaurav Narula

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

ToolsIntroduction to Value Stream Mapping

By : Gaurav Narula 1

What is Takt Time?Data Collection

Takt Time is the rate at which production should run to meet customer demand

The idea is to synchronize the pace of production to the pace of sales.

Your Operating Time per ShiftCustomer Requirement per Shift

27,000 sec460 pieces = 59 sec

59 sec.59 sec.

59 sec.

By : Gaurav Narula

1. Determine Total Customer Requirements for the affected process.

2. Determine the Scheduled Runtime (S.R.) for the affected process: Scheduled Runtime = (Effective Minutes) - (Planned Downtime)

Effective Minutes = (minutes per shift) - (approved breaks)

Planned Downtime is the amount of time an operation is down for scheduled reasons.

3. Calculate Takt Time:

Scheduled RuntimeTakt Time = Total Customer Requirements

3

How to Calculate Takt Time?Data Collection

By : Gaurav Narula

Identify Opportunities for Improvement

?Data Collection

By : Gaurav Narula


Current State Map

Data Collection


By : Gaurav Narula

Activity: Map the Current State

• Complete draft of current state valuestream map.

• Review draft and identify openissues.

• Resolve open issues. Complete current state value stream map.

• Session 2 Review current state value streammap.

Complete By TaskApproximate Total Time:

By : Gaurav Narula

Session 2Agenda

Review current state Over view of developing future state Develop future state Develop action plans to get to future state Assign owners, timing, and frequency of review for action

items Report to leadership

Support Learning

By : Gaurav Narula

Agenda - Session 2 Review Current State Map

Design Future State - Purpose

Future State Map

Consider Key Questions

Summary

Activity: Design Future State

By : Gaurav Narula

Agenda - Session 2Review Current State Map

• Design Future State - Purpose

• Future State Map

• Consider Key Questions

• Summary

• Activity: Design Future State

By : Gaurav Narula

Define how the plant will operate in the future

Serve as the blueprint for implementation

Design Future State - PurposePurpose

Without it, the Current State Map is nothing more than wallpaper !

1

By : Gaurav Narula

Future State Map

Step 1:

Step 2:

Step 3:

Step 4:

Step 5:

Step 6:

Step 7:

The Steps

Validate Customer Demand

Draw the Future State Process Flow

Map the Future State Material Flow

Map the Future State Information Flow

Calculate Total Product Cycle Time

Detail Off-Line Activities

Outline a Plan

2

By : Gaurav Narula

Original ConditionStep7: Outline a Plan

Future Condition

Inj:Molding

2 SenderAss’y

2

MSS

Ass’yPlants

7

Stamping10

TankAss’y

4

Perform to TAKT & Pitch.

Produce to Order

Load Leveling and Pull

Zone Maintenance & Fast Response

Labels

LevelABABA. . .

Stagingby Truck

cardby

card

(Pitch = 14 Units)

1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH

Establish TAKT & Flow in Tank Ass'y

Stamping Changeover Reduction

Reduce Stamping Buffer

Move Ass'y to Plant 10

Establish TAKT & Flow in Sender Ass'y

Pull To Sender Ass'y

Training

1999 2000Activity

Inj:Molding

2

SenderAss’y

2

MSS

TankAss’yStamping

Fuel PumpAss’y

I

I

I

I

II

Ass’yPlants

2

12

10 4

Cycle-Time Driven. Batches.

ChangeOver

ChangeOver

No Flow

Attendance

No Flow

Uptime

Item Current Target

Total product cycle time

Parts / Person Hour

Delivery Performance

Inventory (days)

Overtime

Uptime

METRICS

Future State Map

By : Gaurav Narula

Future State MapThe Steps

“Do It”Implement - Implement - Implement

Action - Action - Action - Action - Action

“Check It - Follow up”

By : Gaurav Narula

A simple way to approach the Future State Map is to begin

by modifying the Current State Map.

Future State MapThe Steps

By : Gaurav Narula



Future State Map


Summary


By : Gaurav Narula

Where will you need to use supermarket pull systems to control production of upstream processes?

What is Takt Time?Will you build to a finished goods supermarket or directly to shipping?

Where can you use continuous flow processing?

At what single point in the production chain will you schedule production? (Typically, this will be the final process.)

How will you level the production mix at the pacemaker process?

What increment of work will you consistently release and take away at the pacemaker process?

What process improvements will be necessary at the value stream to flow as your future state design specifies?


By : Gaurav Narula

Will you build to a finished goods supermarket or directly to shipping?

Every effort should be madeto minimize these variations. These variations are drivenby one of the seven formsof waste and should be eliminated.

Eliminate Waste

4


The Wallof Protection:

Our Manufacturing Plant The Customer

Finished Goods Supermarket

Protects your customer from significant process variation.

Protects your manufacturing operation from significant demand variation.

By : Gaurav Narula

Where can you use continuous flow processing?Consider Key Questions

Batch ProcessProcess

“A”Process

“B”Process

“C”

I IElapsed Time:60 Minutes

3

Process“A”

Process“B”

Process“C”

Continuous Flow (One-Piece Flow)

Elapsed Time:01 Minute

(Batch Process vs. Continuous Flow)

By : Gaurav Narula

Where can you use continuous flow processing?Consider Key Questions

Batch Process

Continuous Flow (One-Piece Flow)

Process“A”

Process“B”

Process“C”

Process“A”

Process“B”

Process“C”

I IElapsed Time:60 Minutes

Elapsed Time:01 Minute

(Batch Process vs. Continuous Flow)

By : Gaurav Narula

This question is asking where you will require supermarkets or where you will have coupled processes.

Evaluate the following factors when considering this question:Cycle Time CompatibilityEquipment Uptime/Downtime (remember that

coupling can multiply the effects of downtime)Equipment InvestmentFlexibility

Where can you use continuous flow processing?

2


By : Gaurav Narula

Typically, a pull system is needed wherever continuous flow stops.

The only exception would be to use a simple FIFO system. FIFO may work in situations where only inventory

quantity needs to be controlled (not sequencing, batch sizing, etc.).

Visual quantity control is needed - without physically counting parts and scheduling machine operation.

Where will you need to use supermarket pull systems to control production of upstream processes?

2


FIFO

By : Gaurav Narula

At what single point in the production chain will you

schedule production?


FIFO

AssemblyMolding

PC&L

oxox

Pacemaker Process

Usually, you will schedule production at the final process.

Exceptions to this might be where your final process is supplied through FIFO.

1

By : Gaurav Narula

Consideration must be given to level both the mix and overall quantity of product scheduled for production.

Leveling of the production schedule is a fundamental requirement for the efficient management of operations

How will you level the production mix at the pacemaker process?

2

Time

Work-load

Without Leveling

Work-load

Time

With Leveling


By : Gaurav Narula

Leveling of the overall production quantity must be supported by the leveling of the product mix.

How will you level the production mix at the pacemaker process?(Continued)

. Fri.

Part D

Part C

Part A & B

Part D

Part D

Mon. Tue. Wed. Thu

Traditional SchedulingDaily Production

Mon 4370 Part D

Tue 4370 Part D

Wed 4370 Part D

Thu 4370 Part C

Fri 3277 B 1092 A

Level Scheduling

Mon. Tue. Wed. Thu. Fri.

Part APart B

Part CPart D

Part APart B

Part CPart DPart A

Part BPart C

Part DPart A

Part BPart C

Part DPart A

Part BPart C

Part D

Daily Production

Part A 218

Part B 655

Part C 874

Part D 2622

2


By : Gaurav Narula

Leveling of the product mix must be supported by small lot production.

Small lot production must be supported by quick set-up.



By : Gaurav Narula

An effective way of communicating the level schedule to manufacturing operations can be through the use of a load leveling box.



By : Gaurav Narula

PartE

PartD

PartC

PartB

PartA

Mon Tues Wed Thurs Fri Sat Sun

BuildOrder

Macro-Leveling



By : Gaurav Narula

Part C

PartB

PartA

8:00 8:10 8:20 8:30 8:40 8:50 9:00 9:10 9:20

Card (Part A

)

Card (Part A

)

Card (Part A

)

Card (Part B

)

Card (Part B

)

Card (Part B

)

Card (Part B

)

Card (Part C

)

Card (Part C

)

One column per pitch(Equals 10 minutes)

Kanban(pull card)

One row

per part num

ber

Std Pack = 10 pcsTakt Time = 1 min.

Build OrderSequenced and Timed

Micro-Leveling


(Continued)


By : Gaurav Narula



Future State Map


Summary


By : Gaurav Narula

Data is analyzed to determine waste (inhibitors to flow).

Plans are developed toreduce or eliminate waste.

What process improvement are necessary for the value stream to flow as your future state design specifies?

This step is key to any successful value stream improvement

activities.

4


This is the step where we can most impact

the bottom line.

By : Gaurav Narula

Explain Value Stream Mapping

Complete a Current State Value Stream Map

Complete a Future State Value Stream Map with proposed Implementation Plan

SummaryObjectives Review

By : Gaurav Narula



Future State Map


Summary


By : Gaurav Narula

Activity: Design Future StateTask

Using the current state map for your selected value stream, design your future state.

Outline a plan.

Review future state design and plan.

Approximate Total Time:

Documents

8964335 Value Stream Mapping