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Standard Business Roadmap

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Presentation on theme: "Standard Business Roadmap"— Presentation transcript:

1 Standard Business Roadmap
Training Pack Standard Business Roadmap Value Stream Analysis / Mapping

2 Value stream mapping is the start to any lean transformation
“Where you can flow you flow Where you can’t flow You Pull ! Explain that this is only an introduction to VSM, after this training course you will not be an expert. Practice makes perfect.

3 Value Stream Mapping AGENDA Introduction to mapping
Creating a Current State Map Introduction To Lean Techniques Creating a Future State Map Using a Map as a basis for Tactical Implementation Planning Talk through the agenda and gain agreement that this is ok

4 Definition of Value Stream Map
A Value Stream Map is a diagram of all actions (both value added and non-value added) required to bring a product through from raw material to the arms of the customers Current Future Definition of Value added = any operation or activity that adds value to the product that the customer is willing to pay for. Non value added = waste. Representation of Current State: reveals waste and its sources Representation of Future State: explains how lean business will flow

5 Introduction to Mapping
Toyota have been benefiting from Material & Information Flow Mapping since 1940’s Taiichi Ohno could not see waste at a glance (especially across a geographical area) He developed Material & Information Flow Mapping as a standard method for mapping the flows visually Became the standard basis for designing improvements at Toyota - as a common language it became one of their business planning tools Talk through the slide giving some personal experience. Talk about an actual VSM that you have been involved with, explain product type area etc. Value Stream Mapping is now utilised throughout the world, in many businesses to strategically plan

6 Principles for Creating a Value Stream Map
Diagram needs to be on one sheet of paper Use the standard format for the diagram Use the standard symbols for the diagram Capture all of the data yourself Walk, Understand and Validate the process Involve as many people as practical Use paper and pencil Talk through the slide adding personal experience.

7 Value Stream Mapping V’s Process Mapping
Considers the whole value stream Identifies non value added between processes Improvements to system are usually significant but difficult to achieve Enables long term strategy to be planned Concentrates on a single process Identifies non value added within a process Improvements to process are usually small but very easy to implement Enables short term tactical planning Talk through the slide adding personal experience.

8 Standard Diagram Format for Single Site
Order Demand Signal Annual Forecast 22 Week Forecast Weekly Order Daily Expedite Customer Supply Free Issue Material Production Control Monthly quantities DAILY EXPEDITE Weekly Reduce Inventory - Supply Negotiations Set-ups? Lengthy Despatch Process Talk through the slide adding personal experience. Show the flows. Explain the total time v value added time. How much waste? I PART MARK I SLOT I SAW I CNC I ENGRAVE I VAPOUR BLAST I SHIPPING PRODUCTION LEAD TIME 35d 22 days 3.125d 0.625d 6.25d 3.125d 3.125d 5.625d Processing time 2.5m 15m 90m 45m 6m 7m 165.5 mins 0.65%

9 Determine the product family :
Product Family matrix Determine the product family : PRODUCTS PROCESS AND EQUIPMENT STEPS Weld 1 Weld 2 Assy 1 Assy 2 Polish Pack x x x x x Left x x x x x Right x x x x Upper x x Selecting a Product Family Don’t try to understand and map everything that is happening in your factory. Instead, map the value stream for one product family at a time. A product family is a group of products that pass over the same or similar process steps and equipment. Define your product families by looking at processes at the downstream end of the flow, nearest to shipping and hence the customer. Upstream fabrication processes, like stamping, injection moulding, or cutting, often feed parts to a variety of downstream processes, and thus may serve several product families. If you’ve already put your assembly operations into “product focused cells”, or if your assembly is paced by a moving conveyor, probably everything that goes through on cell could be considered a product family. If you have not yet put your operations into cells, then value stream mapping beginning with the product family matrix is just what you need. When the variety of products and assembly-type processes is complicated, a table of products and processes like this can help clarify product families. Lower x x Inner skin x x x x Outer skin

10 Using the Value Stream Mapping Course
CURRENT STATE MAPPING Product family Understanding how the shop floor currently operates. The foundation for the future state. Current state drawing 2 days Future state drawing Designing a future state. Talk through the slide adding personal experience. Talk about the flow of the process. Explain the importance of keeping the pace at which the activity flows. If we do not complete the CSM and the FSM within a short period of time then we will lose too much information. It is important to understand this because whilst collecting data for the current sate map we will already be thinking about how we can make improvements. By leaving the future state mapping until some time in the future all these ideas will be lost. People move jobs data could be lost etc. Plan and implementation

11 Using the Value Stream Mapping Course
CURRENT STATE MAPPING Product family Understanding how the shop floor currently operates. Current state drawing Material and information flows. Draw using icons. Start with the “door to door” flow. Have to walk the flow and get actuals - No standard times. Draw by hand, with pencil. Foundation for future state. 2 days Future state drawing Talk through the slide adding personal experience. It is important to state that if you do all the work and then you don’t make a plan and implement it then it has all been waste. Plan and implementation

12 Levels of Value Stream Process Single plant Single plant
Start here! Single plant Process Single plant Multiple plants Across companies Where to begin? Begin at the single plant level. This is where we can have full control. Improvements can be started straight away. We can move onto bigger and better things when we have made the local changes. Process improvements are what is needed to improve the whole value stream and only when they are needed according to the implementation plan.

13 Value Stream Mapping AGENDA Introduction to mapping
Creating a Current State Map Introduction To Lean Techniques Creating a Future State Map Using a Map as a basis for Tactical Implementation Planning

14 Creating a Current State Value Stream Map
THE 7 STEPS Customer Requirements Draw Process Steps Process Data Inventory Material Flow: Supplier to Manufacturer & Manufacturer to Customer Information Driving Flow & Internal Material Flow Manufacturing Lead Time & Processing Time Talk through the slide adding personal experience.

15 “Slug Brackets” Data Set
Slug Brackets stamping company produces several components for Slug assembly plants. This case concerns one product family: a titanium fastening bracket subassembly in two types: one for A1 Slugs and one for A2 Slugs. These components are sent to Final Assembly Line (FAL) Customer Requirements 320 pieces per month 200 per month of Type A1 120 per month of Type A2 Customer plant operates on 2 shifts Palletised returnable tray packaging with 1 brackets in a tray and up to 10 tray’s on a pallet. The customer orders in multiples of trays One daily shipment to the assembly plant by Truck Work Time 20 days in a month Two shift operation in all production departments Eight (8) hours every shift, with overtime if necessary Two 10-minute breaks during each shift Manual processes stop during breaks Unpaid Lunch-all processes continue Use this data for building up the current state map Ask the delegates to find the first 3 steps from the report (20 mins) Put on room walls: A1 copies of Data Current state icons 7 steps

16 “Slug Brackets” Data Set
Production Processes “Slug Brackets” process for this product family involves stamping a metal part followed by welding and subsequent assembly. The components are then staged & driven to the FAL on a daily basis. Switching between Type A1 and Type A2 brackets requires a 1 hour changeover in stamping and a 10-minute fixture change in the welding processes Coils (500ft) are supplied by the Coils R Us. Deliveries are made to “Slug Brackets” on Tuesdays and Thursdays by truck “Slug Brackets” Production Control Department Receives FAL 90/60/30 - day forecasts and enters them into MRP via EDI Issues “Slug Brackets” 6-week forecast to Coils R Us. via EDI secures coil steel by weekly faxed order release to Coils r Us. Receives daily firm order from the FAL via EDI Generates MRP based weekly departmental requirements based on customer order, WIP inventory levels, F/G inventory levels, and anticipated scrap and downtime Issues requirement to Coils R Us for it 500ft coils. Issues weekly build schedules to Stamping, Welding, and Assembly processes Issues daily shipping schedule to Shipping Department

17 “Slug Brackets” Data Set
Production Processes: All processes occur in the following order and each piece goes through all processes 1.) STAMPING (The press makes parts for many SB products) 1 operator to run press Automated 10 ton press with coil(automated material feed) Cycle Time: 1 minute (60 pieces a hour) Changeover time: 1 Hour (Good piece to good piece) Machine reliability: 85% Observed inventory: 5 Days of coils before stamping 150 pieces of Type A1 finished stampings 24 pieces of Type A2 finished stampings 2.) SPOT WELD WORKSTATION 1 (Dedicated to this product family) Manual process with 1 operator Cycle Time: 39 minutes Changeover time: 10 minutes (Fixture change) Reliability: 100% 36 pieces of Type A1 after process; 6 pieces of Type A2 3.) SPOT WELD WORKSTATION 2 Cycle Time: 46 minutes Reliability: 80% 3.) CONT’D Observed inventory: 6 pieces of type A1 before spot weld 2; 16 pieces of Type A1after spot weld; 18 pieces of Type A2. 4.) ASSEMBLY WORKSTATION 1 (Dedicated to this product family) Manual process with 1 operator Cycle Time: 62 minutes Changeover time: non Reliability: 100% 42 pieces of Type A1 6 pieces of Type A2 5.) ASSEMBLY WORKSTATION 2 Cycle Time: 40 minutes Changeover time: none Observed finished goods inventory in warehouse: 27 pieces of Type A1 14 pieces of Type A2 6.) SHIPPING DEPARTMENT Removes parts form finished goods warehouse and stages them for Truck shipment to customer

18 Creating a Current State Value Stream Map (2)
You need: A Large Piece of Paper A Pencil An Eraser (absolutely) A Ruler (maybe) A set of detailed information / data about the company - Its Processes, Machines, Employees, Stock , WIP etc Its Suppliers Its Customers This is where you need to hand out the above stuff.

19 Let’s begin! White-board exercise
Ask the delegates to draw the map with you.

20 Step 1 - Customer Requirements
320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 1 x Daily Customer Information Say aloud what you are drawing when you draw it. Draw customer factory icon in the upper right-hand corner of the whiteboard. Draw data box below the factory icon. Write “customer requirements” information into data box. Draw Truck icon beneath the data box. Draw “1x DAILY” inside the Truckicon. Why do we care how many shifts the customer plant is working? .

21 Step 2 - Process Steps Customer . 320 pieces/ month 200 A1 120 A2
2 shifts Pack size = 1 1 x Daily Process Boxes DRAW: Each process box, beginning with shipping and moving upstream. SAY: Each box name as you draw it. At the end of the flow is SHIPPING Moving to the left on the map, ahead of shipping is ASSEMBLY WORKSTATION 2. Be sure to leave some space between your process boxes as you will be drawing some things in there too. Ahead of Assembly 2 is ASSEMBLY WORKSTATION 1. Ahead of Assembly 1 is SPOTWELDING WORKSTATION 2. Upstream of that is SPOT WELDING WORKSTATION 1. And the whole Slug bracket value stream at Acme is kicked off with STAMPING. These are the production processes in the Slug bracket value stream, from right to left across the bottom half of the map. Stamping Spot weld # 1 Spot weld # 2 Assembly #1 Assembly # 2 Shipping .

22 Multiple process in parallel
Step 2 - Process Steps Customer 320 pieces/ month 200 A1 120 A2 Multiple process in parallel 2 shifts Pack size = 1 1 x Daily Stamping Spot weld # 1 Spot weld # 2 Process Boxes (cont.....) Here are some additional point you can explain to participants. The slug bracket is simple, with a single production chain running from left to right on the map. However, many times you will find multiple flows that merge, such as a product that includes both plastic and metal parts. To show multiple flows you can draw process boxes over one another like this. Just remember to leave enough room for the data boxes. DRAW: The multiple flow example. ERASE: The multiple flow example. If the map is too crowded you may need to make the process boxes smaller, use a larger sheet of paper, or begin by concentrating only on the main processes. The point is to get enough detail on paper so that you can understand the flow or how the facility operates as a material and information flow system. We need enough detail to accomplish that, but not so much detail that we’re back to where we started – unable to see! You should also notice that at this point the value stream map is not related to the physical layout of the factory. The process boxes simply move from left to right. At this point we re more concerned with the production flow than with the physical layout. Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping .

23 Step 3 - Process Data Customer Data Boxes
320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 1 x Daily Data Boxes Collect process information yourself, on the shop floor. The most important data is cycle time. Explain changeover time. Write “10T” inside the stamping process box. Write “C/T=1 min” in data box under the stamping process box. Write “C/O=1 hr” into the data box. Write “Uptime = 85%” into the data box. What is mean by cycle time? Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 10 T Cycle time= 1 minute Change over= 60 min Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x .

24 Draw these then erase after explanation
Step 4 -Inventory Customer 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 1 x Daily Draw these then erase after explanation I I Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping I 5 days I 150 A1 24 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x .

25 Step 4 -Inventory Customer I I I I I I Inventory (cont.....)
320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 1 x Daily I I I 42 A1 6 A2 I 16 A1 18 A2 I 42 A1 6 A2 I 27 A1 14 A2 Inventory (cont.....) Participants to read inventory counts from data sheet. Repeat each item as you write it on the whiteboard. Encourage participants to avoid average data. Draw inventory triangle. Record inventory quantity. Label the map in the lower right-hand corner. Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x .

26 Label the Map Customer I I I I I I We must label the map:
320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 1 x Daily I I I I I I We must label the map: This is because somebody will always say that ‘ it’s not always like that!’. Include information such as date/ company and Current State Map.h Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x Slug Brackets Stamping Currents State Map Date : .

27 Step 5 - Material Flow Supplier / Mfr & Mfr / Customer
Coils r us 320 pieces/ month 200 A1 120 A2 500 ft coils 2 shifts Tuesday and Thursday Pack size = 1 1 x Daily I I I I I I Add an icon for the customer Add icon for lorry Add arrows to show the flow of material Stamping Spot weld #1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x Slug Brackets Stamping Currents State Map Date : .

28 Step 5 - Material Flow Supplier / Mfr & Mfr / Customer
Coils r us 6 week forecast 30/ 60/ 90 day forecast Production Planning Weekly fax Daily expedite 320 pieces/ month 200 A1 120 A2 500 ft coils 2 shifts Pack size = 1 1 x Daily I I I I I I Add information flows Customer to supplier Supplier to sub supplier Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x Slug Brackets Stamping Currents State Map Date : .

29 Step 6 - Push & Pull Material Information Flows
Customer Coils r us 6 week forecast 30/ 60/ 90 day forecast Production Planning Weekly fax Daily expedite MRP 320 pieces/ month 200 A1 120 A2 500 ft coils Weekly plan 2 shifts Tuesday and Thursday Pack size = 1 1 x Daily I I I I I I Add schedule to each process Use the glasses as go and see scheduling. Ask the delegates ‘why do you think we need the go and see glasses?’ Because we need to go and check the progress of the material on the shop floor! Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x Slug Brackets Stamping Currents State Map Date : .

30 Step 6 - Push & Pull Material Information Flows
Customer Coils r us 6 week forecast 30/ 60/ 90 day forecast Production Planning Weekly fax Daily expedite MRP 320 pieces/ month 200 A1 120 A2 500 ft coils Weekly plan Daily shipping plan 2 shifts Tuesday and Thursday Pack size = 1 1 x Daily I I I I I I If each process is individually scheduled then they will produce only what they are told to produce. This ends in push. Draw push arrow icon. Add shipping daily schedule box. Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x Slug Brackets Stamping Currents State Map Date : .

31 Step 7 - Lead Time & Processing Time
Customer Coils r us 6 week forecast 30/ 60/ 90 day forecast Production Planning Weekly fax Daily expedite MRP 320 pieces/ month 200 A1 120 A2 500 ft coils 16 pieces/ day Weekly plan 2 shifts Tuesday and Thursday Pack size = 1 1 x Daily Daily shipping plan I I I I I I Take the chaps through inventory time calculation. Turn inventory into time: No of product/ Takt = time delay for inventory Inventory quantity/ customer demand e.g. 174/16 = rounded up = 10.9 days Draw equation for the lead time on a flip chart. You could also add equations for value added and stock turns etc. Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x 5 days 10.9 days 3 days 2.1 days 3 days 2.6 days 1 minute 39 minute 46 minute 62 minute 40 minute Slug Brackets Stamping Currents State Map Date : .

32 Step 7 - Lead Time & Processing Time
Customer Coils r us 6 week forecast 30/ 60/ 90 day forecast Production Planning Weekly fax Daily expedite MRP 320 pieces/ month 200 A1 120 A2 500 ft coils 16 pieces/ day Weekly plan 2 shifts Tuesday and Thursday Pack size = 1 1 x Daily Daily shipping plan I I I I I I Inventory (cont....) Participants to read inventory counts from data sheet. Repeat each item as you write it on the whiteboard. Encourage participants to avoid average data. Draw inventory triangle. Record inventory quantity. Label the map in the lower right-hand corner. Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x Production Lead Time = 26.6 days Processing time = 188 mins 5 days 10.9 days 3 days 2.1 days 3 days 2.6 days 1 minute 39 minute 46 minute 62 minute 40 minute Slug Brackets Stamping Currents State Map Date : .

33 Complete State Current State Value Stream Map
Customer Coils r us 6 week forecast 30/ 60/ 90 day forecast Production Planning Weekly fax Daily expedite MRP 320 pieces/ month 200 A1 120 A2 500 ft coils 16 pieces/ day Weekly plan 2 shifts Tuesday and Thursday Pack size = 1 1 x Daily Daily shipping plan I I I I I I Inventory (cont....) Participants to read inventory counts from data sheet. Repeat each item as you write it on the whiteboard. Encourage participants to avoid average data. Draw inventory triangle. Record inventory quantity. Label the map in the lower right-hand corner. Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 5 days 150 A1 24 A2 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 10 T Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x Cycle time= 46 minute Change over=10 min. Uptime =80% 1 x Cycle time= 62 minute Change over=0 min. Uptime =100% 1 x Cycle time= 40 minute Change over=0 min. Uptime =100% 1 x Production Lead Time = 26.6 days Processing time = 188 mins 5 days 10.9 days 3 days 2.1 days 3 days 2.6 days 1 minute 39 minute 46 minute 62 minute 40 minute Slug Brackets Stamping Currents State Map Date : .

34 Go and map your own processes.
Value Stream Mapping Go and map your own processes. Current state map

35 Value Stream Mapping AGENDA Introduction to mapping
Creating a Current State Map Introduction To Lean Techniques Creating a Future State Map Using a Map as a basis for Tactical Implementation Planning

36 Designing a Lean Flow Product family Current state drawing
FUTURE STATE MAPPING If you don’t design a future state then so far it’s all been waste You may not get it right first time, keep updating Becomes the foundation for your T.I.P. Begin with the current state First try should be low cost no cost Move existing kit Make only minor purchases Product family Current state drawing 2 days Future state drawing Plan and implementation The next phase is to develop a future state using lean techniques Talk through the slide adding personal experience. Apply Lean techniques

37 Waste Elimination Waste LEAD TIME Value Add Traditional Focus
Work Longer-Harder-Faster Add People or Equipment Lean Manufacturing Improve the Value Stream to Eliminate Waste The arrow represents lead time. As part of the lead time we will have value added and waste. Traditional thinking is to focus on the value added- Talk through the slide adding personal experience. Value Add Waste LEAD TIME

38 Isolated Efficiency V’s System Efficiency
Lean manufacturing is concerned with improvements over the entire value stream. It’s no good just improving one part of the process as this will have little or no effect on the whole.

39 Not Right First Time - Scrap, Rework & Defects
7 Wastes Over-production Not Right First Time - Scrap, Rework & Defects 1 7 2 Inventory WASTE 6 3 Motion Give a quick example of each waste. Mention that there is what is known as the 8th waste and that is ‘ the under utilisation of people’ Over-processing 5 4 Waiting Transportation

40 Overproduction Definition
To produce sooner, faster or in greater quantities than the absolute customer demand Manufacturing too much, too early or "Just in Case". Overproduction discourages a smooth flow of goods or services. Takes the focus off what the customer really wants. Leads to excessive inventory. Overproduction is the worst waste of all wastes. Overproduction can cause all the other wastes 15

41 Takt Time Takt is a German word meaning ‘beat’ (metronome)
Takt time is matching the pace of production to customer demand. Adherence to Takt time will ensure customer satisfaction through 100% on time delivery Takt = total time available* total customer demand 57.5 minutes = 2(480-20) minutes 16 pieces Explain the following Takt time is the pace of production. Cycle time is a measure of how fast we are producing go to the flip chart and draw a line balance chart. Explain the difference between cycle time and takt time. explain the reason why cycling faster than takt is expensive Time in this calculation means- 8.5 hour shift take away 30 minutes lunch, take away 20 minutes breaks, take away 10 minutes team time = 450 minute shift x 2 = 900 minutes per day production time available. Demand = 320 pieces per month/ 4 weeks = 46 pieces per week/ 5 days = 9.2 pieces per day. * only management allowances are deducted:- e.g. tea breaks, lunch breaks, team meetings, clean down time Beat makes no allowances for machine inefficiency e.g. breakdowns, changeovers

42 Go to Flip Chart Takt time Cycle time Op 1 Op 2 Op 3 Op 4
Draw this operator balance chart draw the chart with 3 operators and the Takt line draw the minute dotted Takt line draw an additional operator to show the impact of cycling faster than Takt If you decide to cycle faster than Takt you need to distribute work over more operators. This adds cost and increases the possibility of overproduction. Op 1 Op 2 Op 3 Op 4

43 Build to Shipping or to Supermarket?
Customer Customer 1 x Daily 1 x Daily Process Shipping Decide between holding a supermarket of finished goods or producing directly to shipping. Explain that with high cost or custom goods you may not have the option of holding any finished goods. Explain that directly producing to the customer is not always the better way. By doing this it can be very expensive, Both are as good as each other, it depends upon the product. If fast moving consumable goods then build to a supermarket. If high value custom goods then build direct to shipping. Shipping Process Which is better?

44 Go to Flip Chart Customer Customer Peak demand 1. 2. Lower peak
You need to have capacity for peaks and troughs in demand from the customer.holding some finished goods allows you to level your production volumes. Scenario 1. You will need the capacity to allow for peak demand. You need to understand what the average rate of sales are. Having enough equipment to deal with the highest demand is very costly. Scenario 2. Holding a small amount of finished goods will allow you level your production throughout your factory. Holding a small amount of finished goods is probably less expensive than maintaining the cost of equipment in the value stream. Lower peak Finished goods

45 One Piece at a Time Manufacture
Batch production Single piece flow Process C Process B Process A Process B Process C Key points In batch production it is necessary to build into boxes and then transport parts between work areas In one piece flow environments all of the in process stock is removed and workstations located together. Transport is minimised. One piece flow also allows for the opportunity of labour productivity improvements by using more efficient work balance. Process A

46 One Piece at a Time - Effect on Lead Time
Batch production - Lead time 17 units of time Continuous flow processing - Lead time - 7 units of time Process A Transfer time B Transfer time Key points This draws a comparison between batch production and Continuous flow processing. Stress that in batch production, material only moves to the next stage after the whole batch is complete. In Continuous flow processing the material moves to the next stage as soon as it has finished the current operation. Continuous flow processing maintains a minimum but constant number of parts within the system Any quality issues can be eliminated without affecting a large batch of parts. C First part complete after 3 units Complete First part complete after 13 units Complete

47 Solution to Scheduling - Supermarket Pull System
Customer goes to supermarket and withdraws what it needs when it needs it. Supplier process produces to replenish what the customer has withdrawn. Production Kanban Withdrawal Kanban Supplier Process Customer Process Where there are problems in the flow we need to use a supermarket pull system. The supermarket takes away the need for ‘go and see’’ scheduling. The Pull system links isolated islands of production. The purpose of a pull system is to control production between flows, controls production at the supplying process without trying to schedule. The supermarket is open to the left to show that the control of it belongs to the supplying process. The idea is to hold the optimum level of goods to ensure good flow. Lean thinkers should always think about where we can flow. A pull system should only be used when flow cannot be achieved. The saying is ‘ where you can flow you flow, where you can’t flow you pull’ New product Withdrawn product Inventory Marketplace

48 Scheduling Your Value Stream
Pull System now schedules supply processes: only schedule one place Schedule Customer Stamping 10 T Spot weld # 2 Assembly # 1 Shipping Flow Schedule Customer If pull system controls the flow from upstream processes we should only need to schedule at one point in the value stream. With custom, high value and short shelf life goods the scheduling point may be further upstream. In some cases we can use ‘First in First out’ between process that have poor flow. These FIFO lanes need to have min/ max levels. When the max level has been achieves then the supplying process must stop to avoid over production. Stamping 10 T Spot weld # 2 Assembly # 1 Shipping Flow

49 Scheduling Your Value Stream
Whip effect of volume fluctuation Customer Stamping 10 T Spot weld # 2 Assembly # 1 Shipping Pacemaker Flow Coupled Processes but: Larger whip effect, larger supermarkets; large batches, large supermarkets; long changeovers, large supermarkets OOXXOOXX Now that we have managed to re-couple the process with supermarkets we need to understand what levels of goods we need to hold to achieve good flow with out over production. Anything that lengthens the time to replenish the supermarket will make us hold higher levels. The more batching and volume fluctuation at the customer process, the bigger the supermarket needs to be. This is where we need to start to consider what is the Pacemaker process. The scheduling point in the value stream is the pacemaker process. This process is usually the one nearest to the customer. Batching in large quantities at the pacemaker process means more inventory in the upstream supermarkets. The pacemaker process should operate with minimum volume fluctuations and minimal batching of types of products. Customer Stamping 10 T Spot weld # 2 Assembly # 1 Shipping Pacemaker Flow Ideally minimal fluctuation at Pacemaker and minimum batch size to reduce stock in up stream processes

50 Levelling Production at the Pacemaker Process
Production schedule Monday = 40A Tuesday =10A, 30 B Wednesday =1 B, 1C Thursday = 40 C Friday = 1 C, 1 A Production scheduler Build every part every day Monday: 10 A, 6 B, 9 C Tuesday: 10 A, 6 B, 9 C Wednesday: 10 A, 6 B, 8 C Translates to: Thursday: 10 A, 7 B, 8 C Friday: 11 A, 6 B, 8 C We can measure the degree of batching with something called ‘EPEI’ this means every part every interval. The first improvement shown on the slide is to every part every day. The minute improvement shows every part every ship window. This would then be aligned to the shipping schedule of the customer. This will allow us to ‘make one move one’ and also means less inventory on the shop floor. Every part every ship window Monday: 5 A, 3 B, 5 C Monday: 5 A, 3 B, 4 C Tuesday: 5A, 3 B, 5 C Tuesday: 5A, 3 B, 4 C Wednesday: 5 A, 3 B, 4 C Wednesday: 5 A, 3 B, 4 C Thursday: 5 A, 4 B, 4 C Thursday: 5 A, 3 B, 4 C Friday: 6 A, 3 B, 4 C Friday: 5 A, 3 B, 4 C

51 What do we do if a link breaks?
A Lean System all Processes are Linked SHIPPING Process Supplier Process Assembly plant Supplier A lean production is all linked together with each process producing exactly what the next one actually needs. There is very little inventory between each process and lead time is very short. But what would happen if one of the links broke? Traditionally we would add more waste to cover the problem that has occurred, this then would usually be called a safety net and become part of the production system. In lean we need to respond to problems quickly to maintain the flow. But how are we made aware of problems? (go to next slide) All Processes linked to produce exactly what their customer wants when the customer needs it. What do we do if a link breaks?

52 What do we do if a Link Breaks?
Problem Solve - Maintain Flow!! Do NOT add “Waste” to act as a safety net and cover the problem A lean production is all linked together with each process producing exactly what the next one actually needs. There is very little inventory between each process and lead time is very short. But what would happen if one of the links broke? Traditionally we would add more waste to cover the problem that has occurred, this then would usually be called a safety net and become part of the production system. In lean we need to respond to problems quickly to maintain the flow. But how are we made aware of problems?(by managing our time frames) How do we know if a link/process has broken?

53 When do we find out if a link has broken?
The amount of work produced at the Pacemaker process is to schedule. Each part of the process is working to Takt And are you providing a Takt image? Monitor the process at set intervals; your management time frame! 1 week 1 day We need a signal when the link has broken and that production may stop at a process. We manage this by deciding our management time frame. Traditionally this may have been a week e.g. we would launch material onto the shop floor on a Monday then decide to check it on a Thursday to see how we are doing. If the link had broken on the Tuesday we would have missed 2-3 days worth of production until we knew. Obviously this is not good in a lean environment! Another way to manage this is on a daily basis but this still leaves us exposed for a long period of time. We could manage to takt. This would tell us every time a product did not meet it’s customer needs and allow us to respond quickly. In our business with long takt times we need to manage the situation closed so we mainly manage to an hour therefore our management time frame = 1 hour. This will show us how we are performing to takt. If we fall behind we know that we need to do something to catch the lost time back. This may be done by adding overtime, adding more resource or moving resource from other areas that are in front. 1 shift takt 1 hour

54 Value Stream Mapping AGENDA Introduction to mapping
Creating a Current State Map Introduction To Lean Techniques Creating a Future State Map Using a Map as a basis for Tactical Implementation Planning


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