2. VALUE STREAM MAPPING Analysis of Material Transport

3. Outline  Introduction to Value Stream Mapping  Current State Map  Data Collection  Activity: Map Current State

4. Design Raw Materials Assembly Plants Distribution Customer Parts Manufacturing Definition of Value Stream A Value Stream includes all elements (both value added and non-value added) that occur to a given product from its inception through delivery to the customer. Requirements

5. VALUE STREAM PROCESS Assembly Cell PROCESS Welding PROCESS Stamping Finished Product Raw Material Value Stream Segment Typically we examine the value stream from raw materials to finished goods within a plant. It is also possible to map business processes using Value Stream Mapping.

6. Value Stream Mapping (VSM) is a hands-on process to create a graphical representation of the process, material and information flows within a value stream. Finished GoodsAssembly Layout Welding Rolling 6-wk Forecast Weekly Order 6 x / Day PC & L 6-wk forecast Daily Level Box DA1 DA2 DA3 C/O Time = CT = TAKT Time 3 Shifts DT = Scrap = Stamping 0 Overtime 2 Shifts Max Size # Material Handlers C/O Time = CT = TAKT Time 3 Shifts DT = Scrap / Rework = C/O Time = CT = TAKT Time 3 Shifts DT = Scrap / Rework= Small Lot# Operators Customer X pcs / month Std Pack Qty # Shifts WIP = Steel Supplier Inv.Time Proc.Time TPc/t = ? ? days Future State Material, Information and Process Flows with total Product Cycle Time Value Stream Mapping

7.  Provide the means to see the material, process and information flows.  Support the prioritization of continuous improvement activities at the value stream  Provide the basis for facility layout Eliminate Waste Objectives of Value Stream Mapping AND...

8.  Producing defective parts  Passing on defective parts  Not communicating improvements  Overproduction  Inventories  Motion  High nonvalue ratio  Transportation  Waiting  Counting  Inspection after the fact  Facility layout  Excessive setup times  Incapable process  Maintenance  Work method  Training (or lack of)  Supervisory ability (coaching)  Production planning/scheduling  Lack of workplace organization  Supplier quality/reliability  Lack of concern Waste Opportunities

9. Approaches

10. Define all activities required to design, order, and provide a specific product, from concept launch, to order to delivery, from raw materials into the hands of the customer. This includes: Information flow Material flow Inventory (WIP) Non value-added activities Transportation flow Mapping Value Streams

11. Value Stream Mapping A visual tool for identifying all activities of the planning, and manufacturing process to identify waste Provides a tool to visualize what is otherwise usually invisible The leaders of each product family need to have a primary role in developing the maps for their own area Develop a current state map before improvements are made so that the efforts and benefits can be quantified On the shop floor, not from your office—you need the real information, not opinion or old data What? Why? Who? When? Where?

12. Value Stream Map Symbols Spot weld ABC plating C/T = 30 sec C/O = 10 min 3 shifts 2% scrap rate Process Finished goods VendorData box 3,000 units = 1 day Inventory PushSupermarket Physical pull Mon and Wed Shipment

13. Approach to Value Stream Mapping Step #1  Identify customer requirements  Define method of delivery  Define typical quantity requirements  It is OK that more than one customer is served by this value stream, but make sure that the primary processes used are similar  Use a pencil rather than computer 6 units/ week Recyclable tray XYZ Corporation 18 units/day 9 lefts 9 rights

14. Approach to Value Stream Mapping Step #2  Perform an upstream walk through each process step, observing and documenting as much of the following as possible:  Cycle time (operator & machine cycle time)  Changeover times  Average inventory queue  Average production batch size  Number of operators at each process  Package or container size  Available time (don’t count breaks)  Scrap rate  Machine up time (availability)  Number of product variations 6 units/ week Recyclable tray XYZ Corporation 18 units/day 9 lefts 9 rights

15. Process Description Crew size: Output: per: Waste % Time available C/T C/O Up time: I The triangle symbol identifies inventory; this can be expressed in pieces or in time (how many hours, days, or weeks of inventory). The arrow connects to the next process. A straight arrow can stand for a push, a curved arrow can symbolize a physical pull from a kanban location. Step #3 Record as much data as is pertinent in the process description box Approach to Value Stream Mapping

16. Step #4 Dream about perfection Think outside the box Develop alternatives to the current state map—Muda free Focus on velocity Test each idea if it supports: One-piece flow Pull Approach to Value Stream Mapping

17. Step #4 Dream about perfection Think outside the box Develop alternatives to the current state map—Muda free Focus on velocity Test each idea against TOP— in other words, does it support: One-piece flow Pull Develop a “future state” map that visually describes the goal Break down the future state map into manageable steps Develop a Gantt chart (time-phased project plan) Identify the kaizen events that will need to take place Approach to Value Stream Mapping

18. Fast Track Process Improvement What process? Customer + requirements Map current process Identify hot-spots Root-cause analysis Improvements to a) fix root causes b) meet C requirements Metrics (1-3 months) Communicate plan Implement, measure, fine-tune

19. Weekly shipments: 700,000 lineal 50,000 pieces 1,034 sec280 sec I Molder #4 Crew size: 4 Run speed 300 ft/min Output:1,285 pieces/hr Waste = 1/2% Sec available27,000 C/T= 2.8 sec C/O= 5 - 45 min % Crew:days= 100% swing = 0 % % Reliability = 98% Weekly hr = 38.9 I Prime Crew size: 3 Run speed: 3,15 l ft/min Output: 1,350 pieces/hr Waste = 3% Sec available 27,000 C/T= 1.3 sec C/O= 1 min - 1 hr % Crew:days =100% swing = % Reliability =73% Weekly hr = 18.5 130 sec Staging 5,350 finished pieces/day I Lam #1 Crew size: 4 Run speed 58 ft/min Output: 500 pieces/hr Waste = 1/2% Sec available 27,000 C/T= 7.2 sec C/O= 5 - 25 min % Crew:days= 100% swing = 0% % Reliability = 98% Weekly hr = 5 5 % 90 % I Resaw (4 saws) Crew size: 1 1/3 Run speed 184 ft/min. Output:1,584 pieces/hr Waste = Sec available 108,000 C/T= 2.3 sec C/O= 7 - 30 min % Crew Days =100% Swing =0% % Reliability = 95% Weekly hr = 31.6 5 % 10% 230 sec 90% 268 pieces 4,500 pieces 9000 pcs 9,000 pieces.5 hr48 hr 6-day lead time as shown Current State Map (Simplified)

20. Process Time Shear 10 blanks= 15 min Punch 10 blanks= 30 min Deburr 100 parts= 10 min Form 100 parts = 40 min Hrdwr 100 parts= 15 min Pack 100 parts= 10 min Total = 120 min Lead time 1.0 day 0.5 day 1.0 day 1.5 day 0.5 day 5.5 day (7,920 min) 120 is 1.5% of total lead time or a ratio of 1:66 Value-added Ratios VA:NVA

21. Production lead time = 3.7 hr Value-added time 1,233 sec Weekly shipments: 700,000 lineal 50,000 pieces 1,034 sec VA Ratio =1:12 Staging 5,350 finished pieces/day I Lam #1 Crew size: 4 Run speed 58 ft/min Output: 500 pieces/hr Waste = 1/2% Sec available 27,000 C/T= 7.2 sec C/O= 5 -25 min % Crew:days= 100% swing = 0% % Reliability = 98% Weekly hr = 5 5% I Primed lineal cell Crew size: 6 Run speed 300 ft/min Output: 1,285 pieces/hr Waste = 1.2% Sec available 27,000 C/T= 2.8 sec C/O= 10 - 20 mins % Crew days =100% % Reliability = 95 % Weekly hr = 38.9 199 sec 268 pieces 4,500 pieces.5 hr.2 hr 3 hr  Free up $50,625 inventory  96% improvement in lead time  Instant quality feedback 1-day lead time as shown 95% Future State Map

22. Before  5 forklift movements  28,118 pieces in WIP  144 hr lead time  273 labor hr/week  9,000 ft 2 required After  3 forklift movements  10,118 pieces in WIP  3.7 hr lead time  235 labor hr/week  2,760 ft 2 required Improvement  40% reduction  64% reduction  97% reduction  14% reduction  70% reduction Improvement Data

23. Value Stream Mapping: Summary  Develop a current state map first  Clearly document the future state map so everyone can visualize it  Perform the improvements in manageable steps  Be good at finishing—use policy deployment  Don’t wait for the entire process to complete, celebrate the journey

24. Dr. Kenneth Andrews Garry Conner References