1. Activity Of The Product

2. 2freeleansite.com Activity Of The Product Activity of the product focuses the “Product or Thing” from “start” to “finish”. - “Start” may mean raw materials, arrival at the dock, release of a job to the factory floor, receipt of a request for a proposal or engineering change. - “Finish” may mean delivery to the customer, shipment from our dock, or completion of the work by the process. Understand what the product is doing along the way. View the process from the perspective of the “Product or Thing” going through the process. Determine the actual work required to complete processing. Determine how long it takes to do the work. Look for opportunities to improve.

3. 3freeleansite.com What are the Four Things the PRODUCT can be doing? Total Thru-put Time 50 - 80% of the Gain Storage Transport Inspect Process Which Element Adds Value? Activity of the Product or “Thing” T.I.P.S.

4. 4freeleansite.com From The Perspective Of The “Thing” There are 4 activities the ‘product’ in any process: 1. Storage < 18% 2. Transportation< 2% 3. Inspection 0 4. Processing> 80% world-classour tendency 70-80% 10% 5-10% 1-5% Note: percentages are of process lead-time. This is an uncommon thought process; education and work experience typically have us focus on how ‘busy’ people and equipment are. Lean thinking has us initially focus on how busy (with value added activity) the ‘product’ is.

5. 5freeleansite.com Value Added Activity An activity that Changes the size, shape, fit, form, or function of material or information (for the 1st time) to meet customer requirements. Non-Value Added Activity All other activities that take time or resources or does not satisfy customer requirements Value Added Required Waste Pure Waste Idle! Value Added: ò C ustomer Values it ò C hanges the THING ò C ORRECT THE FIRST TIME! Defining Value

6. 6freeleansite.com Activity Of The Product Product Process Flow Analysis

7. 7freeleansite.com Stores Value Added Steps Non Value Added Steps DAY 0DAY 76 Elapsed Time = 76 Days Value Added 2 Days Total Activity = 4.5 Days Non-Value Added 2.5 Days Wait or Queue Steps (“White Space”) How do I get rid of the white space? Time Value Chart

8. 8freeleansite.com Time Value Analysis reveals the opportunity! A typical analysis at our facilities indicates that value is being added to the product around 1% of the time Time Value Chart “AS IS” ACME product # 12345 Elapsed Time= 187 Days Value Added= 1.83 Days Non-Value Added Activity = 6.54 Days Non-Value Added Wait= 179 Days Time Value Chart “TO BE” Elapsed Time= 20 Days Value Added= 1.83 Days Non-Value Added Activity = 5.17 Days Non-Value Added Wait= 13 Days Rework Loop Rework Rate Currently Required Waste Anodize 2 % Stores Inspect Elapsed Time Value Added “Most of the Lead Time is “White Space” or Product Waiting Time! Time Value Chart

9. 9freeleansite.com Wash 4081755-902 4081680-901 End Item4081602EPA 4081620-90X 4081900 4081910 The ‘Spaghetti’ Diagram is a very visual tool that can help others see waste and improvement opportunity. Spaghetti Chart and Inventory Map 100 1000 100 1000 100

10. Goal is to identify and eliminate waste! Translates to "change for the good". Think "continuous incremental improvement" of a current standard. Is a rapidly applied learn/ do approach for Improving. Determine the improvement need/opportunity, then go and do. Uses a focused workshop format with internal dedicated resources. Requires planning and commitment. Does not have to be a grand 'event'. Involves the people working in the process. Next step: Perform a Kaizen event

11. Activity Of The Product