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Value Stream Mapping
Steps
Select one value stream - a product familyWalk the physical flow of material no data collectionWalk the flow again, collecting dataDraw the Current State MapIdentify opportunities to eliminate waste and create flowDraw the Future State MapGenerate a Value Stream PlanStart making the improvementsConduct Value Stream ReviewsRepeat the cycle
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Value Stream Mapping
Value Stream Plan
The future state Map tells you where you want to go. Now youneed to create one more sheet: a yearly value stream plan which
showsExactly what you plan to do and when, step-by-step.
Measurable goals.
Clear check points with real deadlines and namedreviewers(s).
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Value Stream Mapping
Value Stream Plan
The first question that usually arises in planning implementationis In what order should we implement? Or Where do we start
Solution: You answer these questions by considering the loops inyour future value stream.
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Value Stream Mapping
One effective strategy is to begin implementation in yourdownstream pacemaker loop and transition upstream asnecessary.
The pacemaker loop , being closest to the final customer actsas the internal customer and controls demand in theupstream loops.As the flow in the pacemaker processbecomes lean and consistent it will reveal upstream problems
that need attention.
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Key Concepts of Lean
The cost reduction principle
The seven deadly wastes
Two pillars of TPS
The 5S system
Visual work place
Three stages of lean application
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Key Concepts of Lean
The cost reductionprinciple
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Traditional thinking dictates that you set your sale price by calculatingyour cost and adding on a margin of profit
Cost+ profit = price
Traditional thinking
Profit
Cost
Price
Price
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Key Concepts of Lean
The cost reductionprinciple
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The market is so competitive that there is always some one ready totake your place. The customer can often set the price and you dont have the luxury of adding a margin of profit.
price-cost = profit
Lean thinking
Under these circumstances, the only way to remain profitable is toeliminate waste from your value stream, thereby reducing costs . This iscost reduction principle
Price
Price
Profit
Cost
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Key Concepts of Lean
The Seven DeadlyWastes
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Overproduction
Waiting
Transporting
Processing
Inventory
Movement(Motion)
Defects
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Key Concepts of Lean
TWO PILLARS
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Just in Time(JIT) production
Jidokha (autonomation)
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Key Concepts of Lean
Visual Work Place
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A visual workplace or visual factory begins with one simplepremise: One picture is worth a thousand words .
For that reason, the essence of the visual factory is just-in-time information .
On the shop floor, the goal of a visual factory is to give peoplecontrol over the work place.
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Key Concepts of Lean
The 5S System consists of five activities
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Sort(Seiri) Keeping only what you need and remove unnecessaryitems
Set in Order(Seiton) arranging necessary items for easy and efficientaccess and keep them that way
Shine(Seisou)-clean everything , keeping it clean and using cleaning asa way to ensure that your area and equipment is maintained as it shouldbe.
Standardize(Seiketsu) creating guidelines for keeping the areaorganized , orderly ,clean and making the standards visual and obvious.
Sustain(Shisukhe)-educating and communicating to ensure thateveryone follows the 5S standards.
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Three Stages of lean application16
Stages
Customer demand Stage
Flow stage
Leveling Stage
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Three Stages of lean application17
Understand Customer Ordering Patterns
Sales forecasts
Previous three months actual production
Current production forecasts
Long-term agreements
Interviews with customers
There are many sources for this information including:
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Three Stages of lean application18
Demand Stages
Takt time
Pitch
Takt image
Buffer and Safety inventories
Finished-goods supermarket
The various tools and concepts for determining and meeting
demand schedule include
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Three Stages of lean application19
Demand Stages
Takt is a German word for a musical beat or rhythm.
Takt time keeps the beat for customer demand
Takt time is the rate at which a company must produce to satisfycustomer demand
Producing to takt means synchronizing the pace of production withthe pace of sales.
Takt time
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Three Stages of lean application20
Demand Stages
Takt time = Available production timeTotal daily quantity required
Note: Calculate takt time in seconds for high-volume value streams.
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Three Stages of lean application21
Demand Stages
Pitch
Pitch = takt time pack-out quantity
Pitch is the amount of time -based on takt required for an upstreamoperation to release a predetermined pack-out quantity of work inprocess(WIP).
Note: high-volume , low-product mix lines ,pitch will normally bebetween 12 and 30 minutes depending on customer requirementsand any internal constraints.
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Three Stages of lean application22
Demand Stages
Takt Image: Visualize one-Piece Flow
Takt image is the vision of an ideal state in which you have eliminatedwaste and improved the performance of the value stream to the pointthat you have achieved one-piece flow based on Takt time
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Three Stages of lean application23
Buffer Inventory/Stock
Buffers Stock is used when customer demand suddenlyincreases and your production is not capable of meeting a
lower(faster) takt time.
Safety Inventory/Stock
Safety Stock protects us from internal problems(labor power issues,
quality problems, equipment reliability ,power outages)
As the customer demand becomes more stable and you improve thereliability of your operations and processes, you should periodically reviewinventories and minimize or eliminate them if possible
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