Kenneth J. Andrews EMP Manufacturing Systems: EMP-5179 Module #5: Value-Stream Mapping & Quick Set-Up Dr. Ken Andrews High Impact Facilitation Fall 2010

Kenneth J. Andrews EMP Program Overview (Modules & Weeks) 7. Quality at Source 8. Customer Ints. 9. QFD & DFM 10. Teams & Change 11. Term Papers 1. Intro. To Manuf. Systems 2. Lean & JIT 3. Push vs. Pull Process Impr. 4. TQ Tools & Techs. 5. Value Stream Maps 6. Manuf. Metrics 12. Final Exam (Dec 6)-new date There IS Class on Nov 8 No Class on October 11

Kenneth J. Andrews EMP EMP-5179: Module #5  Gen-X Case Study  Value Stream Mapping (ref Gary Conner)  Quick Set-Up

Kenneth J. Andrews EMP  Quality  Cost  Delivery Key Manufacturing Strategies

Kenneth J. Andrews EMP  Producing defective parts  Passing on defective parts  Not communicating improvements  Overproduction  Inventories  Motion  High nonvalue ratio  Transportation  Waiting  Counting  Inspection after the fact  Facility layout  Excessive setup times  Incapable process  Maintenance  Work method  Training (or lack of)  Supervisory ability (coaching)  Production planning/scheduling  Lack of workplace organization  Supplier quality/reliability  Lack of concern Waste Opportunities

Kenneth J. Andrews EMP Two Approaches

Kenneth J. Andrews EMP Define all activities required to design, order, and provide a specific product, from concept launch, from order to delivery, from raw materials into the hands of the customer. This includes: Information flow Material flow Inventory (WIP) Non value-added activities Transportation flow Mapping Value Streams

Kenneth J. Andrews EMP Value Stream Mapping A visual tool for identifying all activities of the planning, and manufacturing process to identify waste Provides a tool to visualize what is otherwise usually invisible The leaders of each product family need to have a primary role in developing the maps for their own area Develop a current state map before improvements are made so that the efforts and benefits can be quantified On the shop floor, not from your office—you need the real information, not opinion or old data What? Why? Who? When? Where?

Kenneth J. Andrews EMP Value Stream Map Symbols Spot weld ABC plating C/T = 30 sec C/O = 10 min 3 shifts 2% scrap rate Process Finished goods VendorData box 3,000 units = 1 day Inventory PushSupermarket Physical pull Mon and Wed Shipment

Kenneth J. Andrews EMP Approach to Value Stream Mapping Step #1 –Identify customer requirements –Define method of delivery –Define typical quantity requirements –It is OK that more than one customer is served by this value stream, but make sure that the primary processes used are similar –Use a pencil rather than computer 6 units/ week Recyclable tray XYZ Corporation 18 units/day 9 lefts 9 rights

Kenneth J. Andrews EMP Approach to Value Stream Mapping Step #2 –Perform an upstream walk through each process step, observing and documenting as much of the following as possible: Cycle time (operator & machine cycle time) Changeover times Average inventory queue Average production batch size Number of operators at each process Package or container size Available time (don’t count breaks) Scrap rate Machine up time (availability) Number of product variations 180 units/ week Recyclable tray XYZ Corporation 18 units/ day 9 lefts 9 rights

Kenneth J. Andrews EMP Process Description Crew size: Output: per: Waste % Time available C/T C/O Up time: I The triangle symbol identifies inventory; this can be expressed in pieces or in time (how many hours, days, or weeks of inventory). The arrow connects to the next process. A straight arrow can stand for a push, a curved arrow can symbolize a physical pull from a kanban location. Step #3 Record as much data as is pertinent in the process description box Approach to Value Stream Mapping

Kenneth J. Andrews EMP Step #4 Dream about perfection Think outside the box Develop alternatives to the current state map—Muda free Focus on velocity Test each idea against TOP— in other words, does it support: One-piece flow Pull Approach to Value Stream Mapping

Kenneth J. Andrews EMP Step #4 Dream about perfection Think outside the box Develop alternatives to the current state map—Muda free Focus on velocity Test each idea against TOP— in other words, does it support: One-piece flow Pull Develop a “future state” map that visually describes the goal Break down the future state map into manageable steps Develop a Gantt chart (time-phased project plan) Identify the kaizen events that will need to take place Approach to Value Stream Mapping

Kenneth J. Andrews EMP Fast Track Process Improvement What process? Customer + requirements Map current process Identify hot-spots Root-cause analysis Improvements to a) fix root causes b) meet C requirements Metrics (1-3 months) Communicate plan Implement, measure, fine-tune

Kenneth J. Andrews EMP Weekly shipments: 700,000 lineal 50,000 pieces 1,034 sec280 sec I Molder #4 Crew size: 4 Run speed 300 ft/min Output:1,285 pieces/hr Waste = 1/2% Sec available27,000 C/T= 2.8 sec C/O= min % Crew:days= 100% swing = 0 % % Reliability = 98% Weekly hr = 38.9 I Prime Crew size: 3 Run speed: 3,15 l ft/min Output: 1,350 pieces/hr Waste = 3% Sec available 27,000 C/T= 1.3 sec C/O= 1 min - 1 hr % Crew:days =100% swing = % Reliability =73% Weekly hr = sec Staging 5,350 finished pieces/day I Lam #1 Crew size: 4 Run speed 58 ft/min Output: 500 pieces/hr Waste = 1/2% Sec available 27,000 C/T= 7.2 sec C/O= min % Crew:days= 100% swing = 0% % Reliability = 98% Weekly hr = 5 5 % 90 % I Resaw (4 saws) Crew size: 1 1/3 Run speed 184 ft/min. Output:1,584 pieces/hr Waste = Sec available 108,000 C/T= 2.3 sec C/O= min % Crew Days =100% Swing =0% % Reliability = 95% Weekly hr = % 10% 230 sec 90% 268 pieces 4,500 pieces 9000 pcs 9,000 pieces.5 hr48 hr 6-day lead time as shown Current State Map (Simplified)

Kenneth J. Andrews EMP Process Time Shear 10 blanks= 15 min Punch 10 blanks= 30 min Deburr 100 parts= 10 min Form 100 parts = 40 min Hrdwr 100 parts= 15 min Pack 100 parts= 10 min Total = 120 min Lead time 1.0 day 0.5 day 1.0 day 1.5 day 0.5 day 5.5 day (7,920 min) 120 is 1.5% of total lead time or a ratio of 1:66 Value-added Ratios VA:NVA

Kenneth J. Andrews EMP Production lead time = 3.7 hr Value-added time 1,233 sec Weekly shipments: 700,000 lineal 50,000 pieces 1,034 sec VA Ratio =1:12 Staging 5,350 finished pieces/day I Lam #1 Crew size: 4 Run speed 58 ft/min Output: 500 pieces/hr Waste = 1/2% Sec available 27,000 C/T= 7.2 sec C/O= min % Crew:days= 100% swing = 0% % Reliability = 98% Weekly hr = 5 5% I Primed lineal cell Crew size: 6 Run speed 300 ft/min Output: 1,285 pieces/hr Waste = 1.2% Sec available 27,000 C/T= 2.8 sec C/O= mins % Crew days =100% % Reliability = 95 % Weekly hr = sec 268 pieces 4,500 pieces.5 hr.2 hr 3 hr  Free up $50,625 inventory  96% improvement in lead time  Instant quality feedback 1-day lead time as shown 95% Future State Map

Kenneth J. Andrews EMP Before  5 forklift movements  28,118 pieces in WIP  144 hr lead time  273 labor hr/week  9,000 ft 2 required After  3 forklift movements  10,118 pieces in WIP  3.7 hr lead time  235 labor hr/week  2,760 ft 2 required Improvement  40% reduction  64% reduction  97% reduction  14% reduction  70% reduction Improvement Data

Kenneth J. Andrews EMP Value Stream Mapping: Summary  Develop a current state map first  Clearly document the future state map so everyone can visualize it  Perform the improvements in manageable steps  Be good at finishing—use policy deployment  Don’t wait for the entire process to complete, celebrate the journey

Kenneth J. Andrews EMP EMP-5179: Module #5  Review Quiz #1  Gen-X Case Study  Value Stream Mapping  Quick Set-Up

Kenneth J. Andrews EMP JIT: Pull System  Benefits: –Eliminate waste. –Eliminate over production. –Reduce inventory and warehousing costs.  Restrains. –Higher shipping costs per unit. –Needs extensive supplier and system integration. Remember from Module #2?

Kenneth J. Andrews EMP Reducing Inventories through Setup Time Reduction  Central to JIT is the reduction of production lot sizes so that inventory levels are reduced.  Smaller lot sizes result in more machine setups  More machine setups, if they are lengthy, result in: –Increased production costs –Lost capacity (idle machines during setup)  The answer is: REDUCE MACHINE SETUP TIMES Remember from Module #2?

Kenneth J. Andrews EMP Set-Up Reduction  Traditionally, we have left set-up operations to the workers. Even when employees are conscientious, they often lack the resources and authority to make significant improvements to the set-up process.  Outdated accounting practices still “drive” many organization’s thoughts regarding set-up. That is- large lot size runs in order to spread the cost of timely and costly set-up operations across many pieces, thereby reducing set- up cost per piece.  What this model of thinking results in is lengthy set-up operations that take hours or days, instead of minutes. Most set-ups can be reduced by 50-90% with a focused approach, using low-cost, no cost techniques.  The potential that reducing set-up has is difficult for most people to envision as a reality, because “that is the way we have always done it”, blinds us to the possibilities.  In order to achieve small lot production and thereby achieve significant reductions in inventory and WIP, set-up reductions must be done first.

Kenneth J. Andrews EMP Typical setup activities –Prepare30% –Attach machine parts5% –Measure, center 15% –Adjust50% Setup reduction

Kenneth J. Andrews EMP The SMED Approach  Observe (videotape) the setup –Time –Distance (spaghetti diagram)  Define internal/external elements  Separate external elements from setup  Shift as many internal elements to external as possible  Streamline internal elements  Streamline external elements

Kenneth J. Andrews EMP Time Observation Sheet

Kenneth J. Andrews EMP Set-Up Reduction Internal Set-up - Defined as the elements or work that must be carried out while the machine or equipment is shut down or idle. - Example of Internal Set-up Elements: - Removal and attachment of dies. - Tooling adjustments when tooling is on the machine. External Set-Up - Defined as set-up elements which can take place while the machine is in operation or after the operation is completed. - Example of External Set-Up Elements: (1) Return of dies to storage. (2) Transporting of new dies to machine.

Kenneth J. Andrews EMP Set-Up Reduction: Internal  External  Improving Transportation and removal of Dies and other Parts: Do as an External Activity and not when the machine is idle. - Die storage should have a clearly marked and specific location, not simply a general shop area. Dies need to always be returned to the same location, in “production ready” condition. - Wherever possible, dies should be stored at or near the point of production use. Segregation by cell, product line or family are also possible location schemes.  Eliminate Small losses: - Determine what preparations have to be made in advance. - Determine what tools need to be on hand - What type of work bench is required for proper organization of tools and other equipment. - Where the tools, jigs, dies, blades, cutters placed after each use

Kenneth J. Andrews EMP  Pre-assemble. Do any assembly of parts attachment when the machine is running and adjust “pre-sets” also during External Time.  Eliminate “guess work” and repeated need to adjust to get correct settings of tooling, jigs, beds, etc.  Use standard and “One-Touch” Tools. “One-Touch” tools are quick fitting jigs, fixtures, that require minimal adjustment and are easily placed repeatedly and accurately for each set-up.  Simplify Clamping Mechanisms. –Reduce the number of bolts. –Use single thread bolts versus multiple thread bolts. –Replace bolts with hydraulic or cam-operated clamps. Set-Up Reduction: Internal  External

Kenneth J. Andrews EMP Set-Up Reduction: Internal  External  Add parallel operations –Two people are more effective than one and the set-up time can often be reduced by more than 50% with the same amount of labor.  Optimize the Number of Workers and the Division of Labor. –On lengthy set-ups, use more than two people. –Determine what the “optimum” number is through analysis. –Determine how the work is to be divided to optimize efficiency and avoid duplication of efforts. –Standardize the work and cross-train.

Kenneth J. Andrews EMP Three ways to spend money on Setup  Run large batch sizes, hold lots of inventory  Run small batch sizes with no change to the setup  Fix the setup

Kenneth J. Andrews EMP Set-Up Time & Lot Size  In a mass production environment, the most commonly recognized benefits of shorter set-up times are: –Greater machine utilization –Higher workstation efficiency –Overall factory efficiency ????  In a lean environment the greatest benefit of reduced set-up times is: –The ability to produce in smaller lots

Kenneth J. Andrews EMP Production Options with Quick Set-Up Set-up A B Original Set-up A B Improved Set-up A B Larger Lots Set-up A B A B Smaller Lots

Kenneth J. Andrews EMP Impact of Small Lots on Total System Efficiency  Eliminates Over-Production  Reduces Cycle-Time  Reduces Congestion/Waiting at Machines  Supports Inventory/WIP Reduction  Less Floor-Space Requirements  Reduces Scrap  Improves Quality (“machine + man + dog”)  Improves Customer Response Time & Flexibility  Increases Worker Motivation

Kenneth J. Andrews EMP Preparation for Next Week  Watch for new articles/links on the website  Download material for module #6  Ideas for your term paper??