creating flow through value streams student guide master english version 2

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CREATING FLOW THROUGH VALUE STREAMS

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Page 1: Creating Flow Through Value Streams Student Guide Master English Version 2

CREATING FLOW THROUGH VALUE

STREAMS

Page 2: Creating Flow Through Value Streams Student Guide Master English Version 2

Creating Flow Through Value Streams

Based on Learning to See by Mike Rother & John ShookPublished by the Lean Enterprise Institute, 1998; available at www.lean.org

Your overview for

Page 3: Creating Flow Through Value Streams Student Guide Master English Version 2

Production ExcellenceProduction Excellence

The aim of Production Excellence is:

An approach to seeing waste, removing waste and sustaining improvements in the production processes and associated activities

Page 4: Creating Flow Through Value Streams Student Guide Master English Version 2

Learning FrameworkLearning Framework

1. Introduction to Lean

2. The Current State Map Exercise 1: Your Current State

3. The Lean Value Stream

4. The Future State Map Exercise 2: Your Future State

5. Implementing the Future State

6. Conclusion

Page 5: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream Mapping WorkshopValue Stream Mapping Workshop

Objectives:

1. Teach the language of Lean.

2. Introduce Value Stream Mapping in a practical, hands-on manner.

3. Understand what really makes a Value Stream ‘Lean’.

4. Develop your ability to design future state Value Streams.

5. Develop a successful implementation plan that gets it done!

Page 6: Creating Flow Through Value Streams Student Guide Master English Version 2

Introduction to LeanIntroduction to Lean

Introduction to LeanCurrent State

The Lean Value Stream

Future State

Implementing the Future State

Conclusion

Page 7: Creating Flow Through Value Streams Student Guide Master English Version 2

Getting StartedGetting Started

What is Lean?

Where did it come from?

What is Value?

Who defines Value?

Page 8: Creating Flow Through Value Streams Student Guide Master English Version 2

Types of ActivitiesTypes of Activities

Incidental Work

Pure Waste

Value

Page 9: Creating Flow Through Value Streams Student Guide Master English Version 2

The Flow of Value -The Flow of Value -Value Stream MappingValue Stream Mapping

“A new pair of Lean glasses”

Page 10: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream MappingValue Stream Mapping

Enables everyone to see the waste simply and easily.

Provides a system-level view.

Snapshot from the customer’s perspective.

Identifies the current operating philosophy.

Provides a roadmap for change that yields bottom line results.

Page 11: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream Improvement &Value Stream Improvement &Process ImprovementProcess Improvement

Value Stream:

Learning to See, Mike Rother & John Shook, Lean Enterprise Institute, 1998

Process A Process B Process C

Raw Material

Finished Product Customer

Page 12: Creating Flow Through Value Streams Student Guide Master English Version 2

Sample Current State MapSample Current State Map

Cut

1PT = 120 sCT = 120 sUT = 100%CO = 0

Weld

1PT = 55 sCT = 55 sUT = 100%CO = 10 m

Pack

1PT = 70 sCT = 70 sUT = 85%CO = 10 m

Ship

1I400

I450

I250

I7 days

Daily Weekly

Supplier CustomerProduction Control

Forecast

Weekly Schedule

Weekly Order

Forecast

Weekly Order

Page 13: Creating Flow Through Value Streams Student Guide Master English Version 2

Using the Value Stream Mapping ToolUsing the Value Stream Mapping Tool

Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

Page 14: Creating Flow Through Value Streams Student Guide Master English Version 2

Identify Product FamiliesIdentify Product Families

XXXXXXXSensor Activated Arm

XXXXXS4 Servo Motor

XXXXS2 Servo Motor

XXXRadon Detector

XXXXXXXManual Activated Arm

XXXXXXXLaser Activated Arm

Co

nfig

ure

& T

est

Fin

al A

ssemb

ly

Electrical

Assem

bly

Mech

. A

ssemb

ly

Weld

ing

Stam

p

Injectio

n

Mo

ld

. . . based on similar “downstream” or dedicated processing steps. . . based on similar “downstream” or dedicated processing steps

Process Steps & EquipmentProcess Steps & Equipment

Pro

du

cts

Pro

du

cts

Page 15: Creating Flow Through Value Streams Student Guide Master English Version 2

Levels of a Value StreamLevels of a Value Stream

Process Level

Single Plant(door to door)

Multiple Plants

Across Companies

Balance Charting and “cell” design

This Class

Macro Mapping

Global Mapping

Page 16: Creating Flow Through Value Streams Student Guide Master English Version 2

Section 1 Quiz – True or FalseSection 1 Quiz – True or False

1. A Value Stream Map shows the people flow, material flow and information flow in a value stream.

2. A Value Stream is defined as all the Value Added activities required to bring a product from raw material to the customer.

3. Determining Process Families is the step most companies tend to skip when using Value Stream Mapping.

4. You should always start mapping at an individual process level, and work your way up.

Page 17: Creating Flow Through Value Streams Student Guide Master English Version 2

Current StateCurrent State

Introduction to Lean

Current StateThe Lean Value Stream

Future State

Implementing the Future State

Conclusion

Page 18: Creating Flow Through Value Streams Student Guide Master English Version 2

Current State MapCurrent State Map

Draw both the material & information flows.

Follow a “control part” from receiving dock to shipping dock.

Walk the flow to get actual data by observing: Do not use engineering or standard times Always use a pencil

Understanding how the shop floor currently operatesUnderstanding how the shop floor currently operates

Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

Page 19: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Supply Case StudyEMC Supply Case Study

The following pages contain case study information on EMC Supply.

Becoming proficient with mapping Value Streams requires practice – draw the EMC current state value stream map along with the instructor.

Be sure to ask questions, or let the instructor know if things are moving too fast.

Page 20: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Supply Co.EMC Supply Co.Current State Data SetCurrent State Data Set

Customer Requirements:

6,000 pieces per month 2,600 “sensor-activated arms” per month 2,050 “laser-activated arms” per month 1,350 “manually-activated arms” per

monthABC Industrial Supply operates on two shifts

Shipping requirements: Palletized cartons with 10 arms per carton and up to 10 cartons per pallet. The customer orders in multiples of cases.

Shipments are made daily to the distribution facility by truck

EMC Working Time:

20 working days per month

Two shift operation in all production departments

Employees are paid for eight hours every shift

Two 15-minute breaks during each shift

Manual processes stop during breaks

Unpaid 30-minute lunch

EMC Supply Co. Data Set

The Electro-Motion Control (EMC) Supply Company builds products for the motion control and electronics industries. This case concerns one product family consisting of the following products: Sensor-Activated Arms, Laser-Activated Arms and Manually-Activated Arms. These components are sent to the ABC Industrial Supply (the customer).

Page 21: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Supply Co.EMC Supply Co.Current State Data SetCurrent State Data Set

EMC Production Processes

At EMC, the processes for this product family involves:

Injection Molding Mechanical Assembly Electrical Assembly Final Assembly Configure & Test.

Additionally, a bracket is Stamped, moved to a Welding operation, then onto Mechanical Assembly to be attached to the housing. The finished products are then staged and shipped to the distribution center on a daily basis.

100 ft steel coils are supplied by Stanley Steel Co. Deliveries are made to EMC once per week.

500 lb. containers of plastic are supplied by Aspen Plastics, and are delivered twice per month.

Page 22: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Supply Co.EMC Supply Co.Current State Data SetCurrent State Data Set

EMC Production Control Department:

Receives ABC Industrial Supply’s 6-week forecast via MRP.

Issues a 6-week forecast to Stanley Steel via MRP.

Issues a 12-week forecast to Aspen Plastics via MRP.

Secures coil steel via weekly fax order to Stanley Steel Co.

Secures plastic containers by monthly faxed order release to Aspen Plastics.

Receives daily firm faxed order from ABC Industrial Supply.

Generates MRP based weekly departmental schedules based upon customer orders, WIP inventory levels, F/G inventory levels, and anticipated scrap and downtime.

Issues weekly build schedules to Molding, Stamping, Welding, and Mechanical, Electrical, Final Assembly, and Testing processes

Issues daily shipping list to Shipping Department.

Page 23: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Shipping Dept.Hmmm . . . here we go. ABC

Distribution gets daily shipments from us – Production Control gives us the daily ship

list. We ship once per day.

Some of the pallets are over there. You can see that Arm Assemblies get packed into

cartons that hold 10 each; 10 of those cartons go on each

pallet.

That’s all I have time to look up for you now – it’s our

morning break.

Page 24: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Configure & Test Workstation

I720

Sensor

I464 Laser

I285

Manual

I perform a diagnostic test on the Arm Assemblies. It takes me about 150 seconds to do

each.

How do I know what to do next? I get a weekly schedule from Production Control (like

everyone else), and I just make sure I have all that done

by the end of the week.

Changeover? None; the test fixture is universal.

Uptime? It’ s pretty good; about 95%

Page 25: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Final Assembly Workstation

I460

Sensor

I325

Laser

I270

Manual

I work on the Sensor-Activated, the Laser-Activated, and the

Manual ones too. They all take the same time, about 135 seconds for

each.No changeover, and the

bench is always available for work.

Page 26: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Electrical Assembly Workstation

I380

Sensor

I265

Laser

I140

Manual

All I work on are the Sensor-Activated, the Laser-

Activated, and the Manual Arms. It doesn’t matter

which one I work on, they all take about 210 seconds for

each.No changeover, and the

bench is always available for work.

Page 27: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Mechanical Assembly Workstation

I460

Sensor

I255

Laser

I235

Manual

I start the Assembly process for the Sensor-Activated, the Laser-

Activated, and the Manual Arms. It takes the same time, about 165 seconds

for each. I need both brackets from Stamping, and the housings from that injection Molding

machine. No changeover, and the bench is always

available for work.

Page 28: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

100 T Injection Mold

I760

Sensor

I530

Laser

I420

Manual

Of course I make the housings for those arm assemblies; I also make a few others – you can see some of my finished housings right there. They go to Mechanical assembly

when I’m done.

They’re easy to mold – they only take 30 seconds per piece after a 1

hour setup.

The molder? It’s a pretty good machine, maybe it’s down about

20% of the time.

Page 29: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Welding Workstation

I350

Sensor

I275

Laser

I160

Manual

I’m dedicated to making brackets, for those Arm

Assemblies and can make one about every 60 seconds.

My job’s a little tougher than that of the assemblers. Takes me 5 minutes to make

a fixture change, and my welder shuts down a lot – its

uptime is about 85%.

Every once in awhile I leave some work for 2nd shift, but they have a lot to do in their

own 8 hours, so I avoid it when I can.

My parts are needed in Mechanical Assembly.

Page 30: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

150 T Stamping Press

I260

Sensor

I200

Laser

I170

Manual

I make the brackets for those arm assemblies; I also make quite a

few other parts – There are some finished brackets right there.

They go over to Mechanical Assembly next.

The press cycles at 1 second – setups take about 45-minutes.

The Press is fairly reliable; only down about 10% of the time.

Page 31: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Receiving Dock

That’s the steel coil that we turn into brackets at

Stamping– got 7 days on hand right now. Comes to us from

Stanley Steel Company, and we get deliveries from them once

a week.

Over there are the 500 lb. containers of plastic for Injection Molding of the

housings-right now we have about 12 days worth. That

comes in from Aspen Plastics twice per month.

Page 32: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State MapEMC Current State MapWalking the Value StreamWalking the Value Stream

Production Control

Supplier Questions? Okay….I guess.. Steel coil from Stanley Steel? We place orders for that

weekly via e-mail.

They get some planning notice from us as well, through a six-week forecast that we issue

directly through MRP.

Plastic containers are ordered from Aspen Plastics by a monthly

fax release.

We also provide them with a 12-week forecast electronically via

MRP.

Page 33: Creating Flow Through Value Streams Student Guide Master English Version 2

Section 2 Quiz – True or FalseSection 2 Quiz – True or False

1. The best way to Value Stream Map is in a conference room using system data.

2. Value Stream Mapping always starts with the customer.

3. The Lead-Time Ladder depicts the ratio of Value-Added time to Non-Value Added time.

Page 34: Creating Flow Through Value Streams Student Guide Master English Version 2

How Would You Map….How Would You Map….

1. Multiple parts competing for a shared resource like heat treat or inspection?

2. Multiple machines of the same function?

3. Parts inside the heat treat oven?

4. Rework Processes?

5. Rework loops?

Page 35: Creating Flow Through Value Streams Student Guide Master English Version 2

Team Tips – Team Tips – Your Current State MapYour Current State Map

Everyone draws - practice is essential!

Calculate the rate of customer demand.

Be sure to draw both material and information flows.

Introduce yourself to operators and explain your task.

Combine individual efforts into one team drawing.

Remember to include the Lead-Time Ladder at the bottom.

Make an overhead transparency.

The whole team will present to the class (10 minutes).

Briefly walk the class through the flow, and highlight problems and opportunities that were identified.

Page 36: Creating Flow Through Value Streams Student Guide Master English Version 2

The Lean Value StreamThe Lean Value Stream

Introduction to Lean

Current State

The Lean Value StreamFuture State

Implementing the Future State

Conclusion

Page 37: Creating Flow Through Value Streams Student Guide Master English Version 2

EMC Current State

MechanicalMolding

Stamping Welding

Electrical Final Testing Shipping

I12 Days

(Containers)

I7 Days

(Coils)

I260 “S”

200 “L”

170 “M”

I350 “S”

275 “L”

160 “M”

I460 “S”

255 “L”

235 “M”

I380 “S”

265 “L”

140 “M”

I460 “S”

325 “L”

270 “M”

I720 “S”

464 “L”

285 “M”

I760 “S”

530 “L”

420 “M”

ABC Industrial

Supply

Aspen

Plastics

6,000 pcs/mo

2,600 Sensor

2,050 Laser

1,350 Manual

2 Shifts

10 Arms/Ctn.

10 Ctns./Pallet

C/T=150s

C/O= 0

UP = 95%

C/T=30s

C/O=60min

UP = 80%

C/T=135s

C/O= 0

UP =100%

C/T=210s

C/O= 0

UP =100%

C/T=165s

C/O= 0

UP =100%

Production Control

MRP

6-wk Foreca

stDaily Firm Order

12-wk Forecast

Monthly Fax 6-wk

Forecast

Wkly Fax

Weekly Schedule

Daily Ship Schedule

C/T=1s

C/O=45min

UP = 90%

C/T=60s

C/O=5min

UP = 85%

1 x Daily

1 x Week

Stanley

Steel

7d

1 s 60 s

2.1d 2.6d

12d 5.7d

30 s 165 s 150 s135 s210 s4.9d3.5d2.6d3.2d 31.9 days L/TM

690 sec P/TM

25.9 days L/T S

721 sec P/T S

2x Month

Page 38: Creating Flow Through Value Streams Student Guide Master English Version 2

Improving EMCImproving EMC

How should we improve EMC’s current state?

Where is our greatest opportunity for improvement?

Which process should we target first?

What departments will we need for Brainstorming sessions?

Page 39: Creating Flow Through Value Streams Student Guide Master English Version 2

Lean GuidelinesLean Guidelines

Takt time

Finish goods strategy

Continuous flow

FIFO

Pull

Schedule only one point

Interval

Pitch

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

Page 40: Creating Flow Through Value Streams Student Guide Master English Version 2

How fast should we produce?How fast should we produce?

Point Efficiency Point Efficiency vs. vs.

System System EfficiencyEfficiency

Page 41: Creating Flow Through Value Streams Student Guide Master English Version 2

Takt TimeTakt Time

Customer demand rate

Used to synchronize the pace of production and customer demand

Takt time =Effective working time per time period

Customer demand per time period

=450 minutes

150 pieces= 3

minutes

Page 42: Creating Flow Through Value Streams Student Guide Master English Version 2

Finished Goods StrategyFinished Goods Strategy

ShippingAssembly

Customer

supermarket

ShippingAssembly

Customer

Build to shipping . . . Build to a supermarket . . .

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

Page 43: Creating Flow Through Value Streams Student Guide Master English Version 2

Continuous Flow ProcessingContinuous Flow Processing

A CB

Batch processing – one minute per piece

Continuous flow – make one move one

A B C

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

Page 44: Creating Flow Through Value Streams Student Guide Master English Version 2

How do we connect separate processes? How do we connect separate processes?

ShippingAssemblyMolding

Customer

How do I know what to work on

next?

How do I know what to work on

next?

How do I know what to work on

next?

How do I know what to work on

next?

How do I know what to work on

next?

How do I know what to work on

next?

Page 45: Creating Flow Through Value Streams Student Guide Master English Version 2

FIFO – FIFO – FFirst irst IIn n FFirst irst OOutut

FIFO is a form of flow

FIFO is similar to ping pong balls going through a pipe. They always come out in the same order, and the pipe is only so big. Once you fill it, that’s it.

FIFOFIFO

Process BProcess A

Page 46: Creating Flow Through Value Streams Student Guide Master English Version 2

Supermarket Pull SystemSupermarket Pull System

Customer goes to supermarket and gets what they need when they need it

Supplier produces to replenish what was withdrawn

Customer Process

Supplying Process

supermarket

ABC

D

productionkanban

withdrawalkanban

newproduct

withdrawnproduct

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

Page 47: Creating Flow Through Value Streams Student Guide Master English Version 2

customer

FIFO FIFO

pull

1 2 3 4

customer

supermarket

1 2 3 4

Try to Schedule Only One PointTry to Schedule Only One Point

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

Page 48: Creating Flow Through Value Streams Student Guide Master English Version 2

Establishing an intervalEstablishing an interval

100Titanium ArmD

300Aluminum ArmC

600Steel ArmB

1000Plastic ArmA

Weekly Demand

Product

Production capability - 400 per dayProduction capability - 400 per day

Page 49: Creating Flow Through Value Streams Student Guide Master English Version 2

Establishing an intervalEstablishing an interval

100Titanium ArmD

400400400400400Total:

300Aluminum ArmC

400200Steel ArmB

200400400Plastic ArmA

FriThursWedTuesMonDescriptionProduct

Interval = ?

Page 50: Creating Flow Through Value Streams Student Guide Master English Version 2

Establishing an intervalEstablishing an interval

2020202020Titanium ArmD

400400400400400Total:

6060606060Aluminum ArmC

120120120120120Steel ArmB

200200200200200Plastic ArmA

FriThursWedTuesMonDescriptionProduct

Interval = ?

Page 51: Creating Flow Through Value Streams Student Guide Master English Version 2

What if there are problems?What if there are problems?

. . . if a machine breaks down?

. . . if defective parts are made?

. . . if we are rowing too fast, or not fast enough?

Page 52: Creating Flow Through Value Streams Student Guide Master English Version 2

Visual Management Time FrameVisual Management Time Frame

How much work do we schedule & take away at the single point of scheduling?

This amount is our management time frame – how quickly we identify & can react to problems.

How are we doing in terms of meeting Customer demand.

1 week

1 day

1 shift

1 hour

1 takt

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

Page 53: Creating Flow Through Value Streams Student Guide Master English Version 2

Load Leveling BoxLoad Leveling Box

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

1st Shift 7:00 a.m 7:30 a.m 8:00 a.m. 8:30 p.m. 9:00 p.m.

2nd Shift 3:00 p.m. 3:30 p.m. 4:00 p.m. 4:30 p.m. 5:00 p.m.

A

B

C

D

. . .

Page 54: Creating Flow Through Value Streams Student Guide Master English Version 2

Section 3 Quiz – True or FalseSection 3 Quiz – True or False

1. Takt Time is the Customer Demand Rate.

2. Continuous flow is the best way to perform work, because it moves people closer.

3. FIFO is a form of flow.

4. Pitch provides a “management time frame.”

Page 55: Creating Flow Through Value Streams Student Guide Master English Version 2

Future State QuestionsFuture State Questions

1. What is our Takt time?

2. What is our Finished Goods strategy for this Value Stream?

3. Where can we implement continuous flow?

4. Where can we implement FIFO?

5. Where do we have to use supermarket pull systems?

6. At what single point in the Value Stream do we initiate production?

7. What interval can we support at the pacemaker?

8. What is our management time frame at the pacemaker?

9. What process improvements will be necessary? (e.g. uptime, changeover, training)

Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

Page 56: Creating Flow Through Value Streams Student Guide Master English Version 2

Future StateFuture State

Introduction to Lean

Current State

The Lean Value Stream

Future StateImplementing the Future State

Conclusion

Page 57: Creating Flow Through Value Streams Student Guide Master English Version 2

Future State IconsFuture State Icons

Learning to See Mike Rother John Shook Lean Enterprise Institute 1998

Material Flow Information Flow

shared resource

rework process

multiple machines

supermarket

FIFO

max 50 pcs.

FIFOlane

pull

withdrawalkanban

productionkanban

kanban arrivingIn batches

OXOX loadleveling box

kanban post

signal kanban

uptimekaizen

lightningburst

General

3

manual information flow electronic

information flow

pitch

Delivery of FG to customer

Page 58: Creating Flow Through Value Streams Student Guide Master English Version 2

Section 4 Quiz – True or FalseSection 4 Quiz – True or False

1. Pitch is always calculated by multiplying Takt time by a pack quantity.

2. A Pacemaker should be located closest to the customer in order to respond quickly.

3. A schedule must be issued when a shared resource is encountered and continuous flow is not possible.

4. EPEI stands for Every Part, Every Interval.

Page 59: Creating Flow Through Value Streams Student Guide Master English Version 2

Future State MappingFuture State Mapping

1. Use the future state questions

2. Begin by drawing on your current state map

3. Then draw a fresh future state

4. Go to the shop floor if information is needed

5. Make two overhead transparencies One showing the answers to the 9 questions One showing your Future State Map

6. Present your transparencies (10 minutes)

7. Cover your answers to the 9 future state questions in your debrief

Page 60: Creating Flow Through Value Streams Student Guide Master English Version 2

Implementing the Implementing the Future StateFuture State

Introduction to Lean

Current State

Lean Value Stream

Future State

Implementing the Future State

Conclusion

Page 61: Creating Flow Through Value Streams Student Guide Master English Version 2

A Plan To Get ThereA Plan To Get There

The future state implementation plan must support organizational business objectives

Break down the future state into “loops”

Create measurable goals for your value stream plan

Relate the future state map to your layout

The value stream manager should conduct regular progress reviews with the senior person on-site

Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

Page 62: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream ManagersValue Stream Managers

Provide cross-departmental focus on the system

Responsible for implementing the future state

Usually report to top manager onsite

CustomerSupplier

Page 63: Creating Flow Through Value Streams Student Guide Master English Version 2

Stamp C/O

Molding

Stamping

Shipping

3 Days

(Containers)

1.5 Days

(Coils)

ABC Industrial Supply

Aspen

Plastics

6,000 pcs/mo

2,600 Sensor

2,050 Laser

1,350 Manual

2 Shifts

10 Arms/Carton.

10 Cartons./Palle

t

C/T=30s

C/O=60min

UP = 80%

Takt = 180 sec

P C/T= 170 sec

P/T = 660 sec.

Op = 4

Production Control

MRP

6-wk Foreca

stDaily Firm Order

12-wk Forecast

Daily Fax6-wk

Forecast

Daily Fax

Daily Ship Schedule

C/T=1s

C/O=45min

UP = 90%

Stanley

Steel

1.5 days

3 days 2 days

30 sec 660 sec

2 days 7 days L/T M

690 sec P/T M

3x Week Takt=180 sec

1 x Daily

1 x Daily

30

Cartons

60

60

30

XOXO

Pitch=30 min.

SLM,SLM,…

2 Days

2 Days

60

60

Weld, Assembly

& Test Cell

2 Days

1 sec

2 days

Mold C/O

Mold Uptime

Weld C/O

Work Balancing

Weld Uptime

Stamp Uptime

661 sec P/T S

5.5 days L/T S

Page 64: Creating Flow Through Value Streams Student Guide Master English Version 2

Implementation PlanImplementation Plan

Implementation Plan – EMC Stamping

Value Stream – Steering Brackets

Value Stream Manager – Mary Brown

Bus. Objective VS Objective Goal Respon Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Status

Value Stream Loop #1 - Pacemaker

Reduce value stream inventory and customer lead times

Improve welder uptime

UP > 90% Larry Complete

Reduce welder changeover

C/O < 1 min Mary On time

Achieve one piece flow

Zero WIP Mary Behind

Establish FG supermarket

Two days FG; no schedule

Peter

Run at pitch Load leveling box used to schedule

Peter

Value Stream Loop #2 – Molding Loop

Reduce post-Molding WIP

Establish . . .

Page 65: Creating Flow Through Value Streams Student Guide Master English Version 2

Conducting Value Stream ReviewsConducting Value Stream Reviews

Review progress at least at a two week “pitch”

Value Stream Manager reviews with senior person on-site

Conduct the review by walking the flow with the value stream plan

Focus on those items not yet completed

Senior person enables change and provides assistance with harder items

Page 66: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream Manager’s ToolsValue Stream Manager’s Tools

5S TPM

Quick- Changeover

Standard Work

Process Certification

Market Feedback

MistakeProofing

Page 67: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream Manager’s ToolsValue Stream Manager’s Tools

ParetoAnalysis

Fishbone Diagram

Affinity Diagrams

PDCA

ProblemSolving

Page 68: Creating Flow Through Value Streams Student Guide Master English Version 2

Section 5 Quiz – True or FalseSection 5 Quiz – True or False

1. Value Stream reviews should occur at quarterly meetings, in a conference room.

2. A Value Stream Manager has responsibility to improve the end-to-end Value Stream, and reports to the top person on-site.

3. A Value Stream should be broken into loops for implementation.

4. Until a Future State with less waste has been implemented, you haven’t created any value.

Page 69: Creating Flow Through Value Streams Student Guide Master English Version 2

ConclusionConclusion

Introduction to Lean

Current State

The Lean Value Stream

Future State

Implementing the Future State

Conclusion

Page 70: Creating Flow Through Value Streams Student Guide Master English Version 2

Using the Value Stream Mapping ToolUsing the Value Stream Mapping Tool

Product Family

Definition

Current State Map

Future State Map

ImplementationPlan

Page 71: Creating Flow Through Value Streams Student Guide Master English Version 2

ImplementationImplementation

Appoint a Value Stream Manager

Walk the flow at regular “pitch” intervals

Use point kaizen at the process and value stream level

Value Stream Improvement

Process

Improvement

Page 72: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream MappingValue Stream Mapping

Helps you visualize flow to the customer

Links a value stream’s material and information flows

Uses a common language

Creates a Strategic Improvement plan based on a systemic process

Improvement Plan yields bottom line results

Page 73: Creating Flow Through Value Streams Student Guide Master English Version 2

Value Stream Mapping WorkshopValue Stream Mapping Workshop

Objectives:

1. Teach the language of Lean

2. Introduce value stream mapping in a practical manner by doing it

3. Understand what really makes a Lean value stream

4. Develop your ability to design future state value streams

5. Develop a successful implementation plan that gets it done!

Page 74: Creating Flow Through Value Streams Student Guide Master English Version 2

Based on the book, Creating Mixed Model Value Streams by Kevin J. Duggan and published by Productivity Press, this session will overview practical lean methods for building to demand. We will cover how to develop a mixed model ‘pacemaker’ that can handle a high mix of products, each with different cycle times, variable demand, and other real life challenges.

We will discuss concepts of true product families, machine loading, EPEI (Every Part Every Interval), pitch, Heijunka (load leveling) scheduling, standard work, and managing demand changes. These advanced concepts will allow the participant to understand how lean can be applied in real-life complex environments.

Learning Objectives •Defining true product families for Value Stream Flow •Creating continuous flow in a mixed-model environment •Methods for machine loading•How to determine equipment based EPEI at the pacemaker •Methods for balancing for flow•Developing pitch and scheduling the pacemaker •Leveling the schedule with Mix Logic Charts•Managing to customer demand changes

Mixed Model Value StreamsMixed Model Value Streams

For more information about this class, please call Duggan & Associates Inc. For more information about this class, please call Duggan & Associates Inc.

at (401) 826-2007, or visit our website at at (401) 826-2007, or visit our website at www.dugganinc.com. .

Page 75: Creating Flow Through Value Streams Student Guide Master English Version 2

Online Training in Online Training in

Mixed Model Value Streams Mixed Model Value Streams This course is available online. It follows the

same standard work as the instructor used today. To take this course online,

go to

www.leantrainingonline.com

or

www.dugganinc.com

Page 76: Creating Flow Through Value Streams Student Guide Master English Version 2

Creating Flow Through Creating Flow Through Shared Resources Shared Resources

This advanced session will cover how to create flow through processes that are shared with other value streams. The concepts of branch takt times, multiple FIFO lanes, intervals (EPEI) for shared resources, and other advanced concepts will be reviewed.

Processes such as heat treat, inspection, paint, and other monument equipment usually restrict value stream flow which result in priority lists and expediting. This session will cover concepts such as upstream scheduling, multiple FIFO lanes, Guaranteed Turnaround Times (GTT), flight schedules and other techniques to create flow through shared resources.

Learning Objectives

•Pacemaker placement in regards to shared resources•Methods for determining intervals (EPEI) for shared resources •The concepts of branch takt time and average weighted cycle times •The use of FIFO lane systems to flow through shared resources •The use of flight schedules to handle batch processes •Scheduling and sequencing upstream resources•Managing the flow through shared resources with visual systems such as EPEI wheels

For more information about this class, please call Duggan & Associates Inc. For more information about this class, please call Duggan & Associates Inc.

at (401) 826-2007, or visit our website at at (401) 826-2007, or visit our website at www.dugganinc.com..

Page 77: Creating Flow Through Value Streams Student Guide Master English Version 2

The Practical Lean Supply Chain will provide participants with a clear understanding of the fundamental principles behind creating a lean supply chain. This includes identifying the supply chain as Vertically Integrated (V.I.) or Final Assembly and Test (F.A.T.) models. For each model, different methods for supplier connections will be covered. These methods include pull systems, milk runs, bread runs, sequenced FIFO, and others. The type of part and the type of connection will also be covered.

Once connections are established, supplier integration into your value streams will be discussed. This includes understanding supplier delivery capability, scheduling intervals, finished goods strategies, information flows, and supplier improvement techniques.

The summary of applying supplier connections and supplier integration techniques into vertically integrated or final assembly and test models will also be covered to provide a deep understanding of which model is best for your operation.

Learning Objectives

•Introduce the practical techniques to create a lean supply chain•Illustrate different supply chain models and how lean applies to them•Understand various methods for supplier connections and what parts should use which connection•Understand the differences between supplier connection and supplier integration •Introduce methods for supplier integration

For more information about this class, please call For more information about this class, please call Duggan & Associates Inc.Duggan & Associates Inc.

at (401) 826-2007, or visit our website at at (401) 826-2007, or visit our website at www.dugganinc.com. .

Lean Supply ChainLean Supply Chain

Page 78: Creating Flow Through Value Streams Student Guide Master English Version 2

The Practical Lean Supply Chain will provide participants with a clear understanding of the fundamental principles behind creating a lean supply chain. This includes identifying the supply chain as Vertically Integrated (V.I.) or Final Assembly and Test (F.A.T.) models. For each model, different methods for supplier connections will be covered. These methods include pull systems, milk runs, bread runs, sequenced FIFO, and others. The type of part and the type of connection will also be covered.

Once connections are established, supplier integration into your value streams will be discussed. This includes understanding supplier delivery capability, scheduling intervals, finished goods strategies, information flows, and supplier improvement techniques.

The summary of applying supplier connections and supplier integration techniques into vertically integrated or final assembly and test models will also be covered to provide a deep understanding of which model is best for your operation.

Learning Objectives

•Introduce the practical techniques to create a lean supply chain•Illustrate different supply chain models and how lean applies to them•Understand various methods for supplier connections and what parts should use which connection•Understand the differences between supplier connection and supplier integration •Introduce methods for supplier integration

For more information about this class, please call For more information about this class, please call Duggan & Associates Inc.Duggan & Associates Inc.

at (401) 826-2007, or visit our website at at (401) 826-2007, or visit our website at www.dugganinc.com. .

Lean Supply ChainLean Supply Chain