pg 1 what is a value stream? all actions (value and non-value-added) currently required: – to...

Pg 1

What Is A Value Stream?

All actions (Value and Non-Value-Added) currently required:

– To design a product from concept to launch

– To produce a product from raw material into the arms of the customer

Simple, effective text reference on VSM: Learning To See, by Mike Rother, John Shook (ISBN# 0-9667843-0-8).

Pg 2

Steps In Value Stream Mapping

• Select a product family or service based on end customer• Have one person lead the mapping effort• Map the current state at the “door to door” (start to end) level for

the plant• Map the desired future Lean value stream• Develop an implementation plan to achieve the future state

Pg 3

Value Stream Mapping ExampleRequest For Quotation Process

Revise

Continue

C/T = 14 daysW/T = 2 daysVA/T = 1 day

CustomerMeetings


VerifyCustomer

Requirements

C/T = 5 daysW/T = 2 daysVA/T = 4 hours

Consult WithManufacturing

Engineer


CreatePreliminary

RFQ


Gather StrawmanRequirements

C/T = 3 daysW/T = 4 hoursVA/T = ~ 0

Assign Buyer

C/T = 5 daysW/T = 1 dayVA/T = ~ 0

Review andApproval Cycle


Create FinalRFQ



C/T = 2 daysW/T = 1 dayVA/T = 2 hours

Release RFQ

Continue

TriggeringEvent

C/T = Calendar TimeW/T = Work TimeVA/T = Value-Added Time

“As Is” ProcessCycle Time*:

C/T = 58 daysW/T = ~14 daysVA/T = 5 days

MeasurableDeliverable

* Assumes no revisions!Revise

Iterate

Pg 4

Tips For Mapping The Current Process

• Collect data yourself by walking the pathways of material and information– “Walk the process” repeatedly

• Begin with a quick “door-to-door” walk• Start at shipping and work upstream• Bring a stopwatch and gather your own times• Map entire stream yourself• Draw by hand in pencil first (or use flipcharts, white boards)

Pg 5

Typical Process Data

• Cycle Time • Changeover time• Uptime• Production batch sizes• Number of operators• Number of product variations• Pallet size• Working time • Scrap rate

Pg 6

Current State Value Stream(Also Referred To As The “As Is” State)

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• Takt Time (T/T): Production pace needed to meet the customer demand (VOC) Compare to cycle time.

• Cycle Time (C/T): How often a unit or product is completed by the operation; start to finish (VOP)

• Changeover Time (C/O): Time to switch from producing one product type to another

• Lead Time (L/T): Time it takes for one unit to complete the process (includes NVA time that unit or product waits between operations)

• Total Cycle Time: Cumulative time it takes for unit or product to complete all operations (does not include wait time between operations)

• Uptime: Is calculated by dividing the actual machine time available to run by the time scheduled to run

• Working Time (W/T): Time per period minus breaks, clean up…

Time Definitions

Pg 8

Reduce Cycle Time – Eliminate Waste

Baseline Lead Time

Improved Lead Time

• Lead Time – The actual duration of a task from start to finish (the calendar time)

• Work Time – The shortest time currently possible for a task

• Value-Added Time – The amount of the work time that is actually Value-Added… the rest is waste!

Value-Added TimeWork Time

Lead Time

Value Add:1)It must transform the product or service2)The customer must be willing to pay for it3)It must be done correctly the first time

Pg 9

Future Lean Value Stream(Also Referred To As The “To Be”

State)• Produce to customer demand• Develop continuous one-piece flow• Control production with pull systems• Send the customer schedule to only one process (the pacemaker)• Level the production mix at the pacemaker• Level the production volume at the pacemaker• Shorten changeovers and produce in small “lots” upstream from

the pacemaker

Pg 10

ImplementingThe Future Lean Value Stream

• Begin with completed map of future value stream, broken down into a series of connected flows or “loops”

• Develop value stream plan:– Exactly what you want to do by when, step by step– Measurable goals– Clear checkpoints with named reviewer(s)

Pg 11

Future State Value Stream

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1. Map “As Is” Process – 2. Prioritize Waste Opportunities –

3. Identify Lean Methods and Assign Action Items –

4. Map “Future State”, Perform Demo, and Deploy –

Level 0

Level 1

Lean Solution Responsibility Due Date

Demo OK?

Step-by-step Process For Waste Elimination

Pg 13

Identify The Value Stream For The ProcessBusiness Process Example

The Top-level Value Stream For A Sales Order Process:

C/T = 0

InitialContact

?No

Yes

C/T = 5 min.

Wait forSales Person

C/T = 10 min.

SalesPitch

C/T = 30 min.

ConfigureProduct

C/T = 10 min.

CompleteOrder Form

C/T = 5 min.

Promiseto Ship

C/T = 7 days

PendingOrder Queue

C/T = 6 days

Batch SimilarOrders

C/T = 3 days

Check Avail.Material

C/T = 1 day

Work OrderIssued

Pg 14

Case Example Step 1:As Is Map, Creation Of A Request For Quotation

Revise

Continue


CustomerMeetings


VerifyCustomer

Requirements



Engineer


CreatePreliminary

RFQ




Assign Buyer




Create FinalRFQ




Release RFQ

Continue

TriggeringEvent

C/T = Calendar TimeW/T = Work TimeVA/T = Value-Added Time

“As Is” ProcessCycle Time*:

C/T = 58 daysW/T = ~14 daysVA/T = 5 days

MeasurableDeliverable

* Assumes no revisions!Revise

Iterate

Pg 15

Case Example Step 2: Prioritize Waste/Defect Opportunities

Dark Gray - Greatest Potential BenefitGray - Worthwhile Opportunity

Revise

Continue


CustomerMeetings


VerifyCustomer

Requirements



Engineer


CreatePreliminary

RFQ




Assign Buyer




Create FinalRFQ

C/T = 5 daysW/T = 1 dayVA/T = ~0



Release RFQ

Continue

Iterate

Revise

Pg 16

Waste Opportunity Impact Ease Priority Six Sigma/Lean Method

1. Eliminate first iteration loop to determine customer needs

2. Reduce time to gather strawman requirements

3. Reduce time required to consultwith manufacturing engineer

4. Eliminate first approval cycle

5. Reduce final approval cycle

6. Reduce time to assign buyer

5 3 15

5 2 10

3 3 9

4 3 12

4 4 16

3 3 9

Hold focused customer needs negotiation meeting

Use template or checklist to accelerate info. gathering

Involve ME in customer meetings or use a “feed forward” of info.

Use customer-defined template and feed forward of prelim. info.

Use a reservation system to enable immediate review

Implement real-time priority system to eliminate queue

Case Example Step 3:Identify Lean Methods And Assign Action Items

Now assign responsibilities and due dates and get started!

Pg 17

Case Example Step 4:Map “Future State”, Perform Demo, And Deploy

Targets for First RoundImprovement:

C/T = 16 days W/T = ~8 days VA/T = 5 days

“As-Is” ProcessCycle Time:

C/T = 58 days W/T = ~14 days VA/T = 5 days

Revise

Continue


CustomerMeetings


Hold FocusedCustomer Needs

Negotiation



Engineer


CreatePreliminary

RFQ



C/T = 1 dayW/T = 4 hoursVA/T = ~ 0

Assign Buyer




Create FinalRFQ

C/T = 1 dayW/T = 1 dayVA/T = ~0



Release RFQ

Continue

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