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    The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseValue Stream MappingValue Stream Mapping

    Lean Foundations

    Continuous Improvement Training

    Lean Foundations

    Continuous Improvement Training

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    The purpose of this module is to present the

    foundational principles of Waste Identification and

    elimination.

    Learn the History and Purpose of

    Value Stream Mapping.

    LearningLearningObjectivesObjectives LearningLearningObjectivesObjectives

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    Short HistoryShort HistoryShort HistoryShort History

    Origins in Toyota, circa1955 The way of doing business

    Also called Material and Information Flow Mapping

    Used by Toyota Motors to show both current and ideal states

    as part of the lean implementation process

    Discussed inLean Thinking

    Further developed and

    documented by the Lean

    Enterprise Institute of

    Brookline, Mass.Learning to See

    1996 1998

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    What is the Value Stream?What is the Value Stream?What is the Value Stream?What is the Value Stream?

    Total Value Stream

    SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER

    All the actions, both value added and non-value added, currently

    required to bring a product from raw materials to the customer.

    All the actions, both value added and non-value added, currently

    required to bring a product from raw materials to the customer.

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    The Value Stream PerspectiveThe Value Stream PerspectiveThe Value Stream PerspectiveThe Value Stream Perspective

    A value stream is all the actions (both value added and non-value

    added) currently required to bring a product (or transaction) though themain flows essential for every product/ service: from raw material/

    (customer need), through all the required steps, then back to the

    arms of the customer.

    Taking a value stream perspective means working on thebig picture, not just individual processes, and improving

    the whole, not just optimizing the parts.

    TOTAL VALUE STREAM

    SUPPLY

    PARTNERS YOUR PLANT OF COMPANY CUSTOMER TO END USER

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    Value Stream MappingValue Stream MappingValue Stream MappingValue Stream Mapping

    Lets look at an EXAMPLE

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    7

    WIP 870

    QTIME

    72H

    MELT903M

    INSPCHEM

    HoldFurnace

    Cast903

    INSP

    PROFILE

    WIP 696

    QTIME

    P/T 6N

    LOT 75K

    P/T 8H

    WIP 8 COILS

    120K

    P/T 3 HR

    15K

    WIP

    STORE STAGEBREAKDOWN

    911

    REC STAGE

    LEAD 2231.1

    VA 210.17%

    SCRAP

    WIP746K

    QTIME

    8 1OK

    LOT 1 COIL

    TIME .1

    WIP 15K

    WIP108K

    8HR

    Q/T

    8

    DOWNTIME 15%

    DOWNTIME 15.5%

    8 6 8 3

    Value Stream Map Value Stream Map OperationalOperationalexampleexampleValue Stream Map Value Stream Map OperationalOperationalexampleexample

    1. Map major process steps

    2. I.D. Value (green/ yellow) / Non-value (red)

    3. Capture all times, quantities

    4. Prioritize areas to improve

    X SHIPPED PER DAY

    850K

    1.870 WIP BEING WORKED

    4.276 WIP BEING STORED

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    Customer

    MACHINING

    C/T=1568 m

    C/O=50 min.

    2 SHIFTS

    OPER. 48

    Daily

    FIFO

    Prodn Cont.

    Supplier OrdersOrders

    IRREGULAR

    ASSEMBLY

    C/T=936 m

    C/O=0 min.

    1 SHIFT

    OPER. 24

    TEST

    C/T=60 m

    C/O=30 min.

    1 SHIFTS

    OPER. 5

    FINISH

    C/T=210 m

    C/O=0 min.

    1 SHIFTS

    OPER. 6

    DISPATCH

    C/T=30 m

    C/O=0 min.

    1 SHIFTS

    OPER. 2

    FIFOFIFO

    OXOX

    1 DAY

    2 DAYS 2 DAYS

    900 MINS 900 MINS 240 MINS 150 MINS 120 MINS

    1568 MINS 936 MINS 60 MINS 210 MINS 30 MINS

    4 WEEKS

    OUT

    12 WEEK FORECAST

    < 1/2 DAY

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    Why do Value Stream mapping?Why do Value Stream mapping?Why do Value Stream mapping?Why do Value Stream mapping?

    To understand the current situation - Thebig picture point of view (To use as a tool to

    improve the whole vs. optimizing the parts)

    Exposes sources of waste - not just the waste

    Shows linkage between information flow and

    material flow

    Forms the blueprint to identify areas ofimprovement

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    What does Value Stream Map do for us?What does Value Stream Map do for us?What does Value Stream Map do for us?What does Value Stream Map do for us?

    It helps visualize more than just the single-process level, i.e.assembly, welding, etc., in production. You can see the whole

    flow.

    It helps to see more than waste. Mapping helps to see the sources

    of waste in your value stream.

    It provides a common language for talking about manufacturing

    (and transactional) processes.

    It makes decisions about the flow apparent, so you can discuss

    them. Otherwise, many details and decisions in your area just

    happen by default.

    By adding data, it ties together lean concepts and six sigma

    techniques, which helps you avoid pet projects.

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    Value Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential Tool

    It forms the basis of an implementation plan. By

    helping you design how the whole door-to-door flow

    should operate - a missing piece in so many lean

    efforts - value stream maps become a blueprint for

    improvement. Imagine trying to build a house without

    a blueprint!

    It shows the linkage between the information flowand the material flow. No other tool does this.

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    Value Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential ToolValue Stream Mapping is an Essential Tool

    It enhances the quantitative tools and layout

    diagrams that produce a tally of non-value added

    steps, lead time, distance traveled, the amount of

    inventory, and so on.

    Value stream mapping is a qualitative tool by which

    you describe in detail how your facility should

    operate in order to create flow. Numbers are good

    for creating a sense of urgency or as before/ aftermeasures. Value stream mapping is good for

    describing what you are actually going to do to

    affect those numbers.

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    Value Stream MappingValue Stream MappingValue Stream MappingValue Stream Mapping

    Lets look at an EXAMPLE of Process Mapping

    A good start, but no data, no symbols, no color

    coding etc

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    Books: Learning to See, Lean Thinking14

    Process MapProcess Map w/ Analysisw/ Analysis - example- example

    SteelRecd

    PartsStocked

    Componentsmachined

    Plate Steelburned

    StructuralSteel Sawed

    Steelstocked

    Weld Shop Paint Shop

    Elect/Mech PartsRecd

    Blasting BoothSand Bast

    Mech parts toMech Assembly

    Staging

    Partsstocked

    Inspection

    MechAssembly

    Elect parts toElect Assembly

    Staging

    ElectAssembly

    InspectionRun TestCratingShippingWarehouseShip to

    Customer

    Steel Fabrication Process (Current State)

    Can you identify areas for improvement?

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    Books: Learning to See, Lean Thinking15

    SteelRecd

    Componentsmachined

    Plate Steelburned

    StructuralSteel Sawed

    Weld Shop Paint Shop

    Elect/Mech PartsRecd

    Blasting BoothSand Bast

    All parts toAssemblyStaging

    Inspection

    Mech/ElectAssembly

    Inspection &Run Test

    Ship toCustomer

    Steel Fabrication Process (Future State)

    Shipping &Crating

    Process Map w/ AnalysisProcess Map w/ Analysis- example- example

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    Impact of Immediate OpportunitiesImpact of Immediate OpportunitiesImpact of Immediate OpportunitiesImpact of Immediate Opportunities

    The Process Map good place to

    start process analysis activities:

    Safety issues resolved first !

    Visible results in areas Kaizened

    Low hanging fruit addressed Product flows more smoothly

    through that part of the stream

    Many pockets of success

    But

    Process Maps have

    limited impact on the

    total VALUE STREAM

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    Process Map (functional)Process Map (functional)

    Product Family orMain Process/ Information Flow

    (door to door)

    Product Family orMain Process/ Information Flow

    (door to door)

    Many products/ information flows shareMany products/ information flows share

    the same major stepsthe same major steps

    Many products/ information flows shareMany products/ information flows share

    the same major stepsthe same major steps

    Value Stream

    Operational Level (SIPOC)Operational Level (SIPOC)

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    Material and Information FlowsMaterial and Information FlowsMaterial and Information FlowsMaterial and Information Flows

    In Process Analysis, the information flow

    (paper) is treated with just as much

    importance as the material flow.

    Focus on one product family

    or major line

    or

    Administrative Procedure.

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    Routing Standardization via simplified XY MatrixRouting Standardization via simplified XY Matrix

    Can we identify Part/ Product Families ?Can we identify Part/ Product Families ?

    Routing Standardization via simplified XY MatrixRouting Standardization via simplified XY Matrix

    Can we identify Part/ Product Families ?Can we identify Part/ Product Families ?

    1 2 3 4 5 6 7 8 9

    A X X X X X

    BX X X X X X

    C X X X X X X

    D X X X X X

    E X X X X X

    F X X X X X

    G X X X X X

    As sem bly S teps & Eq u ipm ent

    P

    RODUCTS

    A ProductFamily

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    Production Systembased on Customer pull rate

    Just-in-Time

    (JIT)

    MakingProducts at

    the Right Time

    Based on

    When Theyre

    Sold

    Autonomation

    (Jidoka)

    Stop at Every

    Abnormality

    Leveled Production

    People

    Equipment

    Information

    Engineering

    Raw Material

    Wip / Sub Assys

    Finished Product

    Document flow of information and material !

    What will be seen?What will be seen?What will be seen?What will be seen?

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    Value Stream Mapping (VSM)Value Stream Mapping (VSM)

    builds on Process Mappingbuilds on Process Mapping

    Value Stream Mapping (VSM)Value Stream Mapping (VSM)

    builds on Process Mappingbuilds on Process Mapping

    Quality

    Speed

    Safety

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    Value Stream MappingValue Stream MappingValue Stream MappingValue Stream Mapping

    Lets look at an EXAMPLE with data, color codes

    etc

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    Supplier

    Prep Mach

    Assy

    Insp

    ShipStage Insp Store

    C/T 15 min

    Batch 12

    Req 450 pcs

    Q/T 480

    WIP150

    Dist 285

    8 per day

    Q/T 60 min

    50 pcs

    C/T 1 min

    Req 450

    C/T 8 min

    Batch 6

    Dist 30

    8 per day

    Q/T 60 min

    50 pcsC/T 5 min

    Req 450

    Oper 5

    C/T 5 min

    Req 450

    Oper 2.5

    Dist 400

    8 per day

    Dist 50

    20 per day

    Q/T 480

    WIP150C/T 85 min

    10 Orders

    Store

    Customer

    StageStore

    Rec 9000

    1 deliver

    eachmonth

    (Current State)

    Move Move

    Move Move

    Value Stream Map -Value Stream Map - exampleexampleValue Stream Map -Value Stream Map - exampleexample

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    Prep

    C/T 15 min

    Batch 12Req 450 pcs

    Mach

    C/T 1 min

    Req 450

    Assy

    C/T 5 min

    Req 450

    Oper 5

    Ship

    C/T 75 min

    10 Orders

    Ka

    nba

    n

    Ka

    nba

    n

    15 pc

    10 ReplinStore orders

    3 Day ahead

    of shipping

    Supplier

    Ka

    nba

    n

    Customer

    Supplier

    Delivers Daily

    Maintains 475

    in Kanban

    35 Pcs

    25 Replin

    (Future State)

    Value Stream Map -Value Stream Map - exampleexampleValue Stream Map -Value Stream Map - exampleexample

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    Value Stream MappingValue Stream Mapping

    Best PracticesBest Practices Always map in pencil - rough out 1st, clean later. Start at the customer and work backwards. Dont be too detailed at first, list major process steps.

    Walk the actual material and information flows yourself. Start with a quick walk, to get a feel for the

    flow and sequence then, go back and talk

    to the right people for each step.

    (Dont forget second and third shifts)

    Dont map the organization. Map

    the flows through the organization.

    Dont map the organization. Map

    the flows through the organization.

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    Value Stream MappingValue Stream Mapping

    Best PracticesBest Practices Color Code the operations. (Red, Yellow, Green) Add cycle time, wait time, travel time, quantities, yields,

    inventory, and number of machines/ operators required.

    Always collect current-state information while waking along theactual pathways of material and information flows.

    Map current and future state. (With Timelines and Target Dates) Involve the Management team totally.

    Dont map the organization. Map

    the flows through the organization.

    Dont map the organization. Map

    the flows through the organization.

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    Value Stream Mapping: ApplicationValue Stream Mapping: ApplicationValue Stream Mapping: ApplicationValue Stream Mapping: Application

    Deliverables:

    Map your current process

    On completed Value Stream Map, include:

    Color Code (all Value added operations vs. Non-value added operations)

    Document process and cycle times, distancesand units (as best as possible)

    Develop a Future State Map (if time permits)

    Provide a prioritized list of potential opportunitiesfor improvement i.e. 7 wastes tagged bySafety, Quality or Speed of Execution (SQScategories)

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    Books: Learning to See, Lean Thinking28

    Value Stream SymbolsValue Stream Symbols

    and Definitionsand Definitions

    Addendum

    Value Stream SymbolsValue Stream Symbols

    and Definitionsand Definitions

    Addendum

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    Books: Learning to See, Lean Thinking29

    Manufacturing Process

    Process Data Box

    I

    Truck Shipment

    Inventory

    Material Icons Represents Notes

    Outside Sources

    One box equals an area of continuous

    flow. All processes should be labeled.

    Box also used to identify departments

    such as production control.

    Used to show customers, suppliers

    and outside manufacturing processes.

    WELDING

    ABC

    COMPANY

    C/T=120 sec.

    C/O=22 min.

    3 SHIFTS

    3% SCRAP

    W/T=20 hrs Used to record information concerning

    a manufacturing process, department,

    etc.

    Count and time should be noted.225 pieces

    1.5 days

    Tuesday

    + Thurs Note the frequency of shipments.

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    Books: Learning to See, Lean Thinking30

    Material Icons Represents Notes

    FIFO

    Air Shipment

    Movement of prodn

    material by PUSH

    Movement of finished

    goods to the customer

    Supermarket

    Physical pull

    Transfer of controlled

    quantities of material

    between processes in a

    first in first out seq.

    Create rail or other icons as needed.

    Identifies material movements that are

    pushed by producer, not pulled by the

    customer ( the following process ).Also shows movement of raw material

    and components from suppliers if

    they are not pushed.

    Pull of materials from a supermarket.

    Indicates a device to limit quantity

    and ensure FIFO flow of material

    between processes.

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    Books: Learning to See, Lean Thinking31

    Information Icons Represents Notes

    Manual flow of

    information

    Electronic flow of

    information

    For example: production schedule

    shipping schedule

    For example: EDI, Fax, etc.

    OXOX Load leveling

    Sequence-Pull Ball

    Tool to level the volume and mixof Kanban over a specific period

    of time.

    Gives permission to produce a

    predetermined type and quantity.

    Weekly

    ScheduleInformation Describes an information flow.

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    Books: Learning to See, Lean Thinking32

    Information Icons Represents Notes

    20 Production Kanban

    Withdrawal Kanban

    Signal Kanban

    Kanban post

    Tells a process how many of what

    can be produced and gives permission

    to do so.

    Production instruction that orders

    production from a batch process,

    eg: stamping.

    Place where Kanban are collected

    and held for conveyance .

    Tells a process how many of whatcan be withdrawn and gives permission

    to do so.

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    Books: Learning to See, Lean Thinking33

    Lathe

    Changeover

    General Icons Represents Notes

    Kaizen lightning burst

    Buffer or safety stock

    Highlights critical improvement needs

    at specific processes. Can be used to

    plan Kaizen events.

    Buffer or Safety Stock must be

    noted.

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    The Lean EnterpriseThe Lean EnterpriseThe Lean EnterpriseThe Lean Enterprise

    Value Stream MappingValue Stream Mapping

    Lean FoundationsContinuous Improvement TrainingLean FoundationsContinuous Improvement Training


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