Starting the Journey

Lean Means Eliminating WasteLean Means Eliminating Waste  Ohno – Reduce customer order to cash collection by removing non-value added wastes  One Time vs. Systematic Continuous  3 Keys to Complete Success  Focus on understanding concepts (principles)  Unwavering acceptance of all aspects of lean  Implementation plans: systematic, cyclical, continuous

7 Wastes Plus 17 Wastes Plus 1 1.Overproduction 2.Waiting 3.Transportation or conveyance 4.Over processing 5.Excess inventory 6.Unnecessary movement 7.Defects 8.Unused employee creativity

Building a Lasting Learning OrganizationBuilding a Lasting Learning Organization  Develop skilled leadership at all levels  Standardized plans for reacting to issues  Methods to create and sustain process stability  Standardized work  Etc.

Value Stream MappingValue Stream Mapping  Not just how, but why!!  Future State Map is the key  Requires assistance from experienced lean leader  Not as simple as it looks  VSM is an ‘action’ plan  Move from ‘isolated point kaizen’ to ‘true system based flow’

Future State ObjectivesFuture State Objectives  Flexibility  Short lead-time  Connected processes  Flow loops  Simplified information flow  Awareness of the customer requirement  Pacesetter

Transformation: Step by StepTransformation: Step by Step  Stabilize  Create Flow  Standardize  Level incrementally  Then connect processes and...  Stabilize  Create Flow  Standardize  Level incrementally

What’s Next?What’s Next?  Creating Stability  Developing Flow  Standardize  Level Incrementally

9 Value Stream Mapping

10 Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it (from Learning to See)

11 Outlook  Introduction to Value-Stream Mapping  The Current-State Map  Future lessons:  What Makes a Value Stream Lean  The Future-State Map  Achieving the Future State Map

12 Getting StartedGetting Started  What is Value-Stream Mapping?  Material and Information Flow  Selecting a Product Family  The Value-Stream Manager  Using the Mapping Tool

13 What is Value-Stream MappingWhat is Value-Stream Mapping  Value stream: Actions required to bring a product through the main flows essential to every product:  Production flow from raw material to customer delivery  Design flow from concept to launch  Different levels of value-stream mapping

14 Levels of MappingLevels of Mapping

15 Example: Value-Stream MapExample: Value-Stream Map Information Flow Material Flow

16 Why Value Stream Mapping?Why Value Stream Mapping?  Visualizes current flow  Shows waste  Communication tool  Provides basis for improvement  Shows linkage between information and material flow  Ultimate goal: Reduce lead time

17 Who is Responsible?Who is Responsible?  VSM crosses organizational boundaries  Need one person with lead responsibility for product family’s value stream  High level executive (often plant manager) or value- stream manager

18 Mapping StepsMapping Steps

19 Summary – Getting StartedSummary – Getting Started  Select a product family  Have one person personally lead the mapping effort  Begin at the “door-to-door” level  Consider material and information flows

20 Current-State MapCurrent-State Map  Material Flow Icons  General Icons  Information Flow Icons

21 Material Flow Icons 1Material Flow Icons 1

22 Material Flow Icons 2Material Flow Icons 2

23 Information Flow Icons 1Information Flow Icons 1

24 Information Flow Icons 2Information Flow Icons 2

25 General IconsGeneral Icons

26 Mapping TipsMapping Tips  Always collect current-state information while walking along the actual pathways of material and information flows yourself  Begin with quick walk along the entire door-to- door value stream  Begin at shipping and work upstream  Bring your stopwatch and do not rely on standard times or information that you do not personally obtain  Map the whole value stream yourself  Always draw by hand in pencil

27 Draw by Hand in PencilDraw by Hand in Pencil  No delay  You can do it yourself  Focus on understanding flow  Keep eraser handy

28 Steps in Drawing VSMSteps in Drawing VSM 1.Customer 2.Processes, Data boxes and Inventory 3.Material Flow 4.Information Flow and Push Arrows 5.Timeline

29 Current-State Mapping ExampleCurrent-State Mapping Example  ACME Stamping  Stamped-steel steering brackets  Hold the steering column to the body of a car  Two versions: Left-hand side and right-hand-side

30 1. Mapping Customer Requirements1. Mapping Customer Requirements  Customer: State Street Assembly  Two shifts  18,400 steering brackets per month  12,000 left-hand  6,400 right-hand  Palletized returnable tray packaging  20 brackets per tray  Up to 10 trays per pallet  Customer orders in multiples of trays

31 2. Basic Production Processes2. Basic Production Processes 1.Processes 2.Data Boxes 3.Inventory

Processes ACME2. 1. Processes ACME  Stamping  Spot-Welding Workstation 1  Spot-Welding Workstation 2  Assembly Workstation 1  Assembly Workstation 2  Shipping

Data Boxes2. 2. Data Boxes  Mapping Tip: Typical Process Data  C/T = cycle time  C/O = changeover time  Uptime  EPEx = Production batch sizes (Every part every …)  Number of operators  Number of product variations  Pack size  Working time (time available in seconds)  Scrap rate

Data Boxes ACME2. 2. Data Boxes ACME  Assembly #2  C/T = 40 seconds  C/O = 0  Uptime = 100%  Shifts = 2  Seconds available = 27,600

Inventory ACME2. 3. Inventory ACME  Stamping  5 coils before stamping  4,600 LH  2,400 RH  Spot-Welding Workstation 1  1,100 LH  600 RH  Spot-Welding Workstation 2  Assembly Workstation 1  Assembly Workstation 2  Shipping

36 3. Mapping Material3. Mapping Material  Steel supplier  Weekly orders  Shipments by truck twice weekly (Tuesday/Thursday)  Pack size = 500 foot rolls of coiled steel  Customer  One daily shipment by truck

37 4. Mapping the Information Flow4. Mapping the Information Flow  Right to left, top half of the map space  ACME: MRP system to schedule shop floor  “Go see” scheduling

38 5. Draw Time Ladder5. Draw Time Ladder  Upper line = production lead time  Calculation inventory lead time = inventory quantity/daily customer requirements  Lower line = processing time  Summarizes current conditions of value-stream  Which time is value adding?

39 Problems  Production lead time > Processing time  Financial  Quality  Flexibility

40 In-class exerciseIn-class exercise  Divide into teams from simulation exercise  Develop current-state map for simulation

41 Individual Homework 1 5%Individual Homework 1 5%  Draw Current-State map for TWI Industries  Due Monday