1. 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).

2. 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

3. Pg 3 Value Stream Mapping Example Request For Quotation Process

4. 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)

5. 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

6. Pg 6 Current State Value Stream (Also Referred To As The “As Is” State)

7. Pg 7 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

8. 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 Time Work Time Lead Time Value Add: 1)It must transform the product or service 2)The customer must be willing to pay for it 3)It must be done correctly the first time

9. 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

10. Pg 10 Implementing The 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)

11. Pg 11 Future State Value Stream

12. Pg 12 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 SolutionResponsibilityDue Date Demo OK? Step-by-step Process For Waste Elimination

13. Pg 13 Identify The Value Stream For The Process Business Process Example The Top-level Value Stream For A Sales Order Process: C/T = 0 Initial Contact ? No Yes C/T = 5 min. Wait for Sales Person C/T = 10 min. Sales Pitch C/T = 30 min. Configure Product C/T = 10 min. Complete Order Form C/T = 5 min. Promise to Ship C/T = 7 days Pending Order Queue C/T = 6 days Batch Similar Orders C/T = 3 days Check Avail. Material C/T = 1 day Work Order Issued

14. Pg 14 Case Example Step 1: As Is Map, Creation Of A Request For Quotation

15. Pg 15 Case Example Step 2: Prioritize Waste/Defect Opportunities

16. Pg 16 Waste OpportunityImpactEasePrioritySix Sigma/Lean Method 1.Eliminate first iteration loop to determine customer needs 2.Reduce time to gather strawman requirements 3.Reduce time required to consult with manufacturing engineer 4.Eliminate first approval cycle 5.Reduce final approval cycle 6.Reduce time to assign buyer 5315 5210 339 4312 4416 339 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!

17. Pg 17 Case Example Step 4: Map “Future State”, Perform Demo, And Deploy