File G: Value Stream Cost Analysis Exercise Using Simplified File F Template

Stream Capacity Exercise This file presents an exercise that will step you through the use of the BMA Value Stream Cost Analysis template included as File F. It is a simplified method of the value stream cost analysis template provided with the first edition of this book. We suggest going through this exercise prior to using the template provided as File F. It assumes a one-process value stream. The Template is suitable for more complicated value streams having many proceses.

Step 1. Calculate the Total Available Employee Time (#employees x #days x Labor Hrs per shift ) x 3,600 seconds Step 2. Calculate the Employee Productive Time (Qty per Month x Cycle Time x Crew Size) Step 3. Calculate the Employee Productive Capacity Percentage. (Employee Productive Time / Total Available Time) Step 4. Calculate the change-over time, scrap & rework time, downtime, inspection time. C/O = (quantity/batch size) x Change-over time Scrap/rework = Qty x (scrap + rework rate) x Cycle Time x Crew size D/T = Downtime% x Total Available Time Inspection= (Inspect% x Quantity) x Inspection time Step 5. Calculate the Total Non-Productive Time Step 4 plus 5S & meetings Step 6. Calculate the Employee Non-Productive Capacity Percentage Total Non-Prod Time / Total Available Time Step 7. Calculate the Employee Available Capacity Percentage. 100% - (Prod. Capacity + Non-Prod Capacity) Calculate the Employee Capacity for this small value stream

Notes / Answer Sheet

The employee capacity has changed as a result of the kaizen improvements. Change-over = 2700 sec Batch size = 300 Scrap = 16% Rework = 10% Downtime = 0% Inspection = 0% Calculate the employee capacity after the kaizen

Notes / Answer Sheet

Increase sales by 20% Reduce the number of people from 5 to 4 Calculate the employee capacity after the kaizen

Notes / Answer Sheet

Value Stream Capacity Exercises Answer Sheet