ne indiana lean network
TRANSCRIPT
NE Indiana Lean Network
Peak Enterprise Solutions
Value Stream Mapping
2
5/10/20182
▪ Manufacturing, Process and Discreet
▪ Mittal Steel: Superintendent of
Production Planning & Scheduling &
Project Leader
▪ Modbar: General Manager
▪ Fox Products: President
▪ Peak Enterprise Solutions: Principal
Owner▪ BS, Administrative Management: University of Arkansas
▪ MBA, Operations Management: DePaul University
▪ CPIM Certified: APICS
▪ Advisory Board: NE Indiana Lean Network
As a broad-based manufacturing and operations professional, Brad has over 30 years experience contributing to performance improvements.
▪ ERP Project Management
▪ Supply Chain Management
▪ Materials Management
▪ Lean Manufacturing
▪ Leadership Development
▪ ERP Selection/Implementation
▪ Business and Process Systems
Integration
BRAD STAATS S E N I O R C O N S U L T A N T
I N D U S T R Y C O N S U L T I N G
I N F O R M A T I O N T E C H N O L O G Y
E D U C A T I O N & C E R T I F I C A T I O N S
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Value Stream Mapping
▪ Agenda
▪ The role VSM serves in Lean Thinking
▪ Business issues associated with implementation
▪ Description of VSM concepts
▪ Create a value stream map
▪ Symbols
▪ Current state
▪ Future state
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Defining Value Stream Mapping
What Is A Value Stream
All of the actions required to conduct a process from beginning to
end with the end being defined as “delivery to the customer”.
▪Value added
▪Non-value added
▪Material flow
▪ Information flow
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Defining Value Stream Mapping
What Is Value Stream Mapping
▪ Looking at the big picture, not just individual processes, and
improving the whole
▪ Maps the flow of products through the organization – not
departmental flow
▪ Cross functional
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Defining Value Stream Mapping
Why Map the Value Stream
▪ Visualize the whole flow
▪ See the sources of waste
▪ Provide a common picture
▪ Make decisions about the flow apparent
▪ Coordinates lean concepts and techniques
▪ Show links between processing and information
▪ More qualitative than quantitative
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Creating A Value Stream Map
Using The Mapping Tool
▪ Identify product family
▪ Draw current-state
▪ Develop future-state
▪ Identify kaizen events
▪ Create work plans for implementation
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Creating A Value Stream Map
Selecting A Product Family
▪ Focus is on customer needs
▪ Simplifies the mapping process
▪ Walk the process
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Creating A Value Stream Map
Value Stream Mapping – Tips
▪ Begin with a quick walk from beginning to end of the
entire value stream
▪ Begin at the end and work to the beginning
▪ Collect information first hand, following the actual
material flow
▪ Collect actual times, do not rely on standards
▪ Map the whole stream yourself
▪ Keep it basic and keep it simple
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Creating A Value Stream Map
Defining The Current State
▪ Begin with the customer requirements
▪ Analyze the current production situation
▪ Include material and information flows
▪ Identify multiple flows in the stream
▪ Use a common unit of time
▪ Don’t map every part or every step
▪ Get the data accurate
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Creating A Value Stream Map
Draw the Current State Map
▪ Material flow is drawn left to right
▪ Information flow is drawn right to left
▪ Group continuous flow steps into one process
▪ Use standard symbols / icons
▪ Keep it simple
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Creating A Value Stream Map
Collect Process Data
▪ Cycle time
▪ Changeover time
▪ Uptime
▪ EPE (production batch size)
▪ Number of operators
▪ Number of product variations
▪ Pack size
▪ Available time
▪ Scrap rate
work time / cycle time
x uptime %
= available capacity
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Creating A Value Stream Map
How to Create a Lean Value Stream
▪ Produce to your Takt Time
▪ Available work time / Customer Demand
▪ Develop continuous flow whenever possible
▪ Use supermarkets for upstream processes
▪ Try to schedule only one process
▪ Eliminate over production
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Creating A Value Stream Map
How to Create a Lean Value Stream
▪ Level the production mix
▪ Level the production rate
▪ Create pull systems to be used
▪ Enable quick changeovers
▪ Try to achieve “every part every day”
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Creating A Value Stream Map
Drawing The Future-state Map
▪ Identify what increment of work will be used
▪ Define the pacemaker process
▪ Cycle pacemaker process as close to Takt time as possible
▪ What process improvements need to be made
▪ Work with what you have
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Achieving Future State
Value Stream Plan
▪ What to do by when
▪ Step by step
▪ Measurable goals
▪ Clear checkpoints / real deadlines
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Achieving Future State
Value Stream Improvement Is Management’s Job
▪ Constant efforts to achieve goals
▪ Firm belief that lean principles can succeed
▪ Really learn and live value stream improvement
▪ Set the example
▪ Focus all resources on the operations
▪ Change organization focus
▪ New performance measures
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Value Stream Mapping
▪ Draw it in Pictures
▪ Talk the Talk and Walk the Walk
▪ Identify the Value Stream
▪ Eliminate the Waste
▪ Keep it Simple
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Value Stream Mapping – an Exercise
Acme Stamping
From Learning to See
State Street Assembly
Shipping
(staging)
18400 pieces/month
12000 L
6400 R
Tray = 20 pcs
2 shifts per day
1x day
2700 L
1440 RCT = 40 sec
CO = 0
UP = 100%
2 shifts
Avail = 460 min
27600 secs
Assembly 2Assembly 1
CT = 62 sec
CO = 0
UP = 100%
2 shifts
Avail = 460 min
27600 secs
Welding 2Welding 1Stamping
CT = 46 sec
CO = 10 min
UP = 80%
2 shifts
Avail = 460 min
27600 secs
CT = 39 sec
CO = 10 min
UP = 100%
2 shifts
Avail = 460 min
27600 secs
CT = 1 sec
CO = 60
UP = 85%
2 shifts
Avail = 460 min
27600 secs
1200 L
640 R
1600 L
850 R
1100 L
600 R
4600 L
2400 R
5 days
Tues +
Thurs
Michigan Steel Co.
Whole coils
Production Control
Weekly Schedule
Daily
Ship
Schedule
Daily
Order
30/60/90
day
forecast
Daily Fax
6 week
forecast
5 days
1 sec
7.6 days
39 secs
1.8 days
46 secs
2.7 days
62 sec
2 days
40 secs
4.5 days Production Lead Time = 23.6 days
Process time = 188 secs
Acme Stamping
Current State Map
MRP
1 1 1 1 1
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Future State Questions
▪ What is the Takt Time?
▪ Available work time / Customer Demand
28,800 – 1,200 = 27,500 secs per shift
460 units per shift
Takt Time = 50 seconds
▪ What supermarkets can be used?
▪ How to make continuous flow?
▪ What is the pacemaker operation
▪ How to level the product mix?
▪ What process improvements area required?
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State Street Assembly
Shipping
(staging)
18400 pieces/month
12000 L
6400 R
Tray = 20 pcs
2 shifts per day
1x day
Stamping
Takt Time – secs
CT = 55 sec x 3
CO = 0 min
UP = 100%
2 shifts
Avail = 460 min
27600 secs
CT = 1 sec
CO = 60
UP = 85%
2 shifts
Avail = 460 min
27600 secs
1.5 days
Daily
Michigan Steel Co.
Whole coils
Production Control
Daily
Orders
Daily
Order
30/60/90
day
forecast
Daily
Order
6 week
forecast
1 sec
1.5 days 1.5 days
165 secs
2 days Production Lead Time = 5 days
Process time = 166 secs
Acme Stamping
Future State Map
Welding /
Assembly
MRP
2 days
20 pcs
1.5 days
20 pcs
1 bin
1 coil
1 coil
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And You……………?
Examples of what you have seen?
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Thank You!!