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Standard Business Roadmap Value Stream Analysis / Mapping Training Pack.

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Presentation on theme: "Standard Business Roadmap Value Stream Analysis / Mapping Training Pack."— Presentation transcript:

1 Standard Business Roadmap Value Stream Analysis / Mapping Training Pack

2 Value stream mapping is the start to any lean transformation Where you can flow you flow Where you cant flow You Pull !

3 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 AGENDA Value Stream Mapping

4 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 Representation of Current State: reveals waste and its sources Future Representation of Future State: explains how lean business will flow Definition of Value Stream Map

5 Toyota have been benefiting from Material & Information Flow Mapping since 1940s He developed Material & Information Flow Mapping as a standard method for mapping the flows visually Taiichi Ohno could not see waste at a glance (especially across a geographical area) Became the standard basis for designing improvements at Toyota - as a common language it became one of their business planning tools Value Stream Mapping is now utilised throughout the world, in many businesses to strategically plan Introduction to Mapping

6 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 Principles for Creating a Value Stream Map

7 VALUE STREAM MAPPING 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 Value Stream Mapping Vs Process Mapping

8 Processing time Production Control II II I I I PRODUCTION LEAD TIME 22 days mins 0.65% 7m 3.125d 6m 3.125d 45m 6.25d 90m 0.625d 15m 3.125d 2.5m 35d PART MARK SLOT SAW CNCENGRAVE VAPOUR BLAST SHIPPING Demand Signal Annual Forecast 22 Week Forecast Weekly Order Daily Expedite DAILY EXPEDITE 5.625d Order Reduce Inventory - Supply Negotiations Set-ups? Lengthy Despatch Process Monthly quantities Supply Customer Free Issue Material Weekly Standard Diagram Format for Single Site

9 Determine the product family : PRODUCTS PROCESS AND EQUIPMENT STEPS xxxxx xxxxx Weld 1Weld 2Assy 1Assy 2PolishPack Left Right Upper Lower Inner skin Outer skin x x x xxx x x xxxx Product Family matrix

10 Product family Current state drawing Future state drawing Understanding how the shop floor currently operates. The foundation for the future state. Designing a future state. Plan and implementation 2 days CURRENT STATE MAPPING Using the Value Stream Mapping Course

11 Product family Current state drawing Future state drawing Understanding how the shop floor currently operates. 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. Plan and implementation CURRENT STATE MAPPING 2 days Using the Value Stream Mapping Course

12 Process Single plant Multiple plants Across companies Levels of Value Stream Start here! Single plant

13 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 AGENDA Value Stream Mapping

14 THE 7 STEPS 1. Customer Requirements 2. Draw Process Steps 3. Process Data 4. Inventory 5. Material Flow: Supplier to Manufacturer & Manufacturer to Customer 6. Information Driving Flow & Internal Material Flow 7. Manufacturing Lead Time & Processing Time Creating a Current State Value Stream Map

15 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 trays 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 Slug Brackets Data Set

16 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 Slug Brackets Data Set

17 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% Observed inventory: 36 pieces of Type A1 after process; 6 pieces of Type A2 3.) SPOT WELD WORKSTATION 2 (Dedicated to this product family) Manual process with 1 operator Cycle Time: 46 minutes Changeover time: 10 minutes (Fixture change) Reliability: 80% 3.) CONTD 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% Observed inventory: 42 pieces of Type A1 6 pieces of Type A2 5.) ASSEMBLY WORKSTATION 2 (Dedicated to this product family) Manual process with 1 operator Cycle Time: 40 minutes Changeover time: none Reliability: 100% 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 Slug Brackets Data Set

18 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 Creating a Current State Value Stream Map (2)

19 White-board exercise Lets begin!

20 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts 1 x Daily Step 1 - Customer Requirements

21 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly #1 Spot weld # 2 Spot weld # 1 Stamping Step 2 - Process Steps 1 x Daily

22 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Spot weld # 2 Spot weld # 1 Stamping Multiple process in parallel Step 2 - Process Steps 1 x Daily

23 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over= 60 min Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 Step 3 - Process Data 1 x Daily

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

25 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 II 5 days 150 A1 24 A2 I 42 A1 6 A2 I 16 A1 18 A2 I 42 A1 6 A2 I 27 A1 14 A2 Step 4 -Inventory 1 x Daily

26 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 IIII 5 days 150 A1 24 A2 II 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 Slug Brackets Stamping Currents State Map Date : Label the Map 1 x Daily

27 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld #1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 IIII 5 days 150 A1 24 A2 II 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 Slug Brackets Stamping Currents State Map Date : Coils r us 500 ft coils Tuesday and Thursday Step 5 - Material Flow Supplier / Mfr & Mfr / Customer 1 x Daily

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

29 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 IIII 5 days 150 A1 24 A2 II 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 Coils r us 500 ft coils Tuesday and Thursday Production Planning 30/ 60/ 90 day forecast Daily expedite 6 week forecast Weekly fax MRP Weekly plan Step 6 - Push & Pull Material Information Flows Slug Brackets Stamping Currents State Map Date : 1 x Daily

30 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 IIII 5 days 150 A1 24 A2 II 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 Coils r us 500 ft coils Tuesday and Thursday Production Planning 30/ 60/ 90 day forecast Daily expedite 6 week forecast Weekly fax MRP Weekly plan Daily shipping plan Step 6 - Push & Pull Material Information Flows Slug Brackets Stamping Currents State Map Date : 1 x Daily

31 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 IIII 5 days 150 A1 24 A2 II 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 Coils r us 500 ft coils Tuesday and Thursday Production Planning 30/ 60/ 90 day forecast Daily expedite 6 week forecast Weekly fax MRP Weekly plan Daily shipping plan 16 pieces/ day 10.9 days 2.1 days 3 days2.6 days 5 days 1 minute39 minute46 minute62 minute40 minute 3 days Step 7 - Lead Time & Processing Time Slug Brackets Stamping Currents State Map Date : 1 x Daily

32 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 IIII 5 days 150 A1 24 A2 II 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 Coils r us 500 ft coils Tuesday and Thursday Production Planning 30/ 60/ 90 day forecast Daily expedite 6 week forecast Weekly fax MRP Weekly plan Daily shipping plan 16 pieces/ day 10.9 days 2.1 days 3 days2.6 days 5 days Production Lead Time = 26.6 days Processing time = 188 mins 1 minute39 minute46 minute62 minute40 minute 3 days Step 7 - Lead Time & Processing Time Slug Brackets Stamping Currents State Map Date : 1 x Daily

33 Customer. Pack size = pieces/ month 200 A1 120 A2 2 shifts Shipping Assembly # 2 Assembly # 1 Spot weld # 2 Spot weld # 1 Stamping Cycle time= 1 minute Change over=1 hour Uptime =85% 1 x Cycle time= 39 minute Change over=10 min. Uptime =100% 1 x 10 T 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 IIII 5 days 150 A1 24 A2 II 42 A1 6 A2 16 A1 18 A2 42 A1 6 A2 27 A1 14 A2 Coils r us 500 ft coils Tuesday and Thursday Production Planning 30/ 60/ 90 day forecast Daily expedite 6 week forecast Weekly fax MRP Weekly plan Daily shipping plan 16 pieces/ day 10.9 days 2.1 days 3 days2.6 days 5 days 1 minute39 minute46 minute62 minute40 minute 3 days Complete State Current State Value Stream Map Production Lead Time = 26.6 days Processing time = 188 mins Slug Brackets Stamping Currents State Map Date : 1 x Daily

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

35 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 AGENDA Value Stream Mapping

36 Product family Current state drawing Future state drawing Plan and implementation FUTURE STATE MAPPING If you dont design a future state then so far its 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 2 days Apply Lean techniques Designing a Lean Flow

37 Value Add Waste Traditional Focus Work Longer-Harder-Faster Add People or Equipment Lean Manufacturing Improve the Value Stream to Eliminate Waste LEAD TIME Waste Elimination

38 Isolated Efficiency Vs System Efficiency

39 Motion Inventory WAS TE Over-production Waiting Not Right First Time - Scrap, Rework & Defects Over-processing Transportation 7 Wastes

40 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. To produce sooner, faster or in greater quantities than the absolute customer demand Definition Overproduction

41 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 * 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 57.5 minutes = 2(480-20) minutes 16 pieces Takt Time

42 Op 1 Op 2 Op 3 Op 4 Takt time Go to Flip Chart Cycle time

43 Process Shipping Customer Process Shipping TO SHIPPING Customer TO SUPERMARKET Which is better? Build to Shipping or to Supermarket? 1 x Daily

44 1. Customer Peak demand 2. Lower peak Customer Finished goods Go to Flip Chart

45 Batch production Process C Process B Process A Process C Process B Process A Single piece flow One Piece at a Time Manufacture

46 Batch production - Lead time 17 units of time Continuous flow processing - Lead time - 7 units of time A B C Transfer time Process First part complete after 3 units CompleteFirst part complete after 13 units Complete One Piece at a Time - Effect on Lead Time

47 Supplier Process Customer Process Withdrawal Kanban Production Kanban Inventory Marketplace Customer goes to supermarket and withdraws what it needs when it needs it. Supplier process produces to replenish what the customer has withdrawn. New product Withdrawn product Solution to Scheduling - Supermarket Pull System

48 Shipping Assembly # 1Spot weld # 2 Stamping 10 T Customer ShippingAssembly # 1Spot weld # 2Stamping 10 T Customer Flow Schedule Pull System now schedules supply processes: only schedule one place Scheduling Your Value Stream

49 Shipping Assembly # 1Spot weld # 2Stamping 10 T Customer ShippingAssembly # 1Spot weld # 2Stamping 10 T Customer Flow Pacemaker Whip effect of volume fluctuation Pacemaker OOXXOOXX Ideally minimal fluctuation at Pacemaker and minimum batch size to reduce stock in up stream processes Coupled Processes but: Larger whip effect, larger supermarkets; large batches, large supermarkets; long changeovers, large supermarkets Scheduling Your Value Stream

50 Production scheduler Monday: 10 A, 6 B, 9 C Translates to: Build every part every day Every part every ship window Production schedule Monday = 40A Tuesday =10A, 30 B Wednesday =1 B, 1C Thursday = 40 C Friday = 1 C, 1 A Tuesday: 10 A, 6 B, 9 C Wednesday: 10 A, 6 B, 8 C Thursday: 10 A, 7 B, 8 C Friday: 11 A, 6 B, 8 C Monday: 5 A, 3 B, 5 C Tuesday: 5A, 3 B, 5 C Wednesday: 5 A, 3 B, 4 C Thursday: 5 A, 4 B, 4 C Friday: 6 A, 3 B, 4 C Monday: 5 A, 3 B, 4 C Tuesday: 5A, 3 B, 4 C Wednesday: 5 A, 3 B, 4 C Thursday: 5 A, 3 B, 4 C Friday: 5 A, 3 B, 4 C Levelling Production at the Pacemaker Process

51 Process Supplier SHIPPING Process Assembly plant All Processes linked to produce exactly what their customer wants when the customer needs it. What do we do if a link breaks? A Lean System all Processes are Linked

52 How do we know if a link/process has broken? Problem Solve - Maintain Flow!! NOT Do NOT add Waste to act as a safety net and cover the problem What do we do if a Link Breaks?

53 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 1 shift 1 hour takt When do we find out if a link has broken?

54 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 AGENDA Value Stream Mapping


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