Demand Chain Solutions
Demand Chain Solutions
Value Stream Mapping
Jason Fretz
Brian Grannan
Aaron Lininger
Jeff Lovell
Demand Chain Solutions
Implementation without a plan will lead to disaster
A Value Stream Map is a simple picture that helps you focus on flow and eliminate the waste
Lean ImplementationWhy do Value Stream Mapping?
Finished GoodsAssembly
Layout
Welding
Rolling 6-wk ForecastWeekly Order
6 x / Day
PC & L6-wk forecast
Daily
Level Box
DA1 DA2 DA3
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap =
Stamping
0 Overtime
2 Shifts
Max Size
# Material Handlers
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework =
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework=
Small Lot # Operators
Customer
X pcs / monthStd Pack Qty
# Shifts
WIP =
WIP = WIP =
Steel Supplier
Inv.TimeProc.Time TPc/t = ?? days ? days ? days ? days
? days ? days ? days
MAP THE FLOWS !
3
Eyes for Waste . . . . . . Eyes for Flow
Demand Chain Solutions
Objectives
Explain Value Stream Mapping
Complete a Current State Value Stream Map
Complete a Future State Value Stream Map with proposed Implementation Plan
Demand Chain Solutions
AgendaIntroduction to Value Stream Mapping
Current State MapData CollectionActivity: Map Current State
Review Current State Map Design Future State Future State Map Consider Key Questions Summary Activity: Design Future State
Session1
Session2
Demand Chain Solutions
Agenda - Session 1
Introduction to Value Stream Mapping
Current State Map
Data Collection
Activity: Map Current State
Demand Chain Solutions
Design Raw Materials
Definition of Value Stream
Assembly Plants Distribution Customer
2
Parts Manufacturing
Introduction to Value Stream Mapping
A Value Stream includes all elements (both value added and non-value added) that occur to a given product from its
inception through delivery to the customer.
Requirements
Demand Chain Solutions
VALUE STREAM
PROCESS
AssemblyCell
PROCESSWelding
PROCESSStamping
FinishedProduct
RawMaterial
Introduction to Value Stream Mapping
Typically we examine the value stream from raw materials to finished goods within a plant.
Definition of Value Stream
It is also possible to map business processes using Value Stream Mapping.
1
Demand Chain Solutions
Value Stream Mapping (VSM) is a hands-on process to create a graphical representation of the process, material and information flows within a value stream.
Definition of Value Stream Mapping
Finished GoodsAssembly
Layout
Welding
Rolling 6-wk ForecastWeekly Order
6 x / Day
PC & L6-wk forecast
Daily
Level Box
DA1 DA2 DA3
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap =
Stamping
0 Overtime
2 Shifts
Max Size
# Material Handlers
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework =
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework=
Small Lot # Operators
Customer
X pcs / monthStd Pack Qty
# Shifts
WIP =
WIP = WIP =
Steel Supplier
Inv.TimeProc.Time TPc/t = ?? days ? days ? days ? days
? days ? days ? days
Future State Material, Information and Process Flowswith total Product Cycle Time
Introduction to Value Stream Mapping
Demand Chain Solutions
Provide the means to see the material, process and information flows.
Support the prioritization of continuous improvement activities at the value stream
Provide the basis for facility layout
Objectives of Value Stream Mapping
Eliminate Waste
1
Introduction to Value Stream Mapping
AND...
Demand Chain Solutions
Map the Current State
The Process
Analyze the Current State and
Design the Future State
4
Introduction to Value Stream Mapping
Tues. & Fri.
PC & L
Weekly OrderMRP MSS
Weekly Order
# times/day
SteelSupplier
Steel
Pin# pcs# daysor shifts
I II
IStamping
Downtime
Changeover Time=4 hr
2 Shifts
TAKT =
2 Presses
Cycle Time =
ChangeOver
Welding
Layout
Scrap/Rework
Downtime = 20%
Uptime
# Operators
Cycle Time =
Weekly Build ScheduleDaily ShipSchedule
6 Week Rolling Forecast
6 Week Rolling Forecast
Finished Goods
Overtime =
# Shifts =
Assembly
DT, ScrapRework
WIP =
Cycle Time =
TAKT =
Changeover Time =
Layout
= 10%
Scrap
? days ? days ? days ? days? days ? days ? days
Inventory TimeProcessing Time
TPc/t = ?
TAKT =
WIP =
WIP = WIP =
X pcs/monthStd. Pack Qty.
# shifts
Customer
Finished GoodsAssembly
Layout
Welding
Rolling 6-wk ForecastWeekly Order
6 x / Day
PC & L6-wk forecast
Daily
Level Box
DA1 DA2
DA3
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap =
Stamping
0 Overtime
2 Shifts
Max Size
# Material Handlers
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework =
C/O Time =
CT =
TAKT Time
3 Shifts
DT =
Scrap / Rework=
Small Lot # Operators
Customer
X pcs / month
Std Pack Qty
# Shifts
WIP =
WIP = WIP =
Steel Supplier
Inv.TimeProc.Time
TPc/t = ?? days ? days ? days ? days
? days ? days ? days
Create an implementation plan and execute it !
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction
Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Pull To Sender Ass'y
Training
1999 2000Activity
Demand Chain Solutions
Agenda - Session 1
Introduction to Value Stream Mapping
Current State Map
Data Collection
Activity: Map Current State
Demand Chain Solutions
Current State MapThe Steps
Select a Product Family
Form a Team
Understand Customer Demand
Map the Process Flow
Map the Material Flow
Map the Information Flow
Calculate Total Product Cycle Time
Detail Off-Line Activities
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
Step 8:
Demand Chain Solutions
Define value stream (product family)
– Identify value stream from the customer end
– Product should pass through similar processes and common equipment
– Door-to-door in scope (within plant walls)
List part numbers
Current State MapStep 1: Select a Value Stream (Product Family)
Demand Chain Solutions
Select a cross-functional team
Select team members who are familiar withthe product
Ensure that teammembers are trained in theuse of VSM
Designate a champion (typically a line manager)
Current StateStep 2: Form a Team
Cross Functional Team
Manufacturing
PC & LMaintenance
Leadership
Product Engineering
Industrial EngineeringSensei
THIS IS CRITICAL 4
Demand Chain Solutions
Plan for Every Part
Production Control (monthly/weekly forecasts)
Production history (day-to-day, month-to-month variation)
Sales (product changes, new business, etc.)
Current State MapStep 3: Understand Customer Demand
Customer
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
1
Customer
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Current State Map
Inventory
Part A =
Part B =
Part C =
# of shifts =
ShippingAssemblyWeldingStamping
Takt =
C.T. =
D.T. =
FTQ = 90%
C/O Time =
Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. = 20%
FTQ =
C/O Time =
Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. =
FTQ =
C/O Time = 4 hrs.
Lot Size =
# of Shifts
WIP =
ChangeoverDowntime FTQ
Step 5: Map the Material Flow
Customer
Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Inventory
Part A =
Part B =
Part C =
# of shifts =
ShippingAssemblyWeldingStamping
Takt =
C.T. =
D.T. =
FTQ = 90%
C/O Time =
Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. = 20%
FTQ =
C/O Time =Lot Size =
# of Shifts
WIP =
Takt =
C.T. =
D.T. =
FTQ =
C/O Time = 4 hrs.
Lot Size =
# of Shifts
WIP =
Changeover Downtime FTQ
Current State Map
2 x/day
I
2 x/week
Supplier
1,200 pcs
I1,500 pcs
I800 pcs
I500 pcs
Customer
Demand/month:Part A = 705 pcs.
Part B = 600 pcs.
Part C = 1650 pcs.# of shifts =
Inventory
Part A = 750 pcs
Part B = 600 pcs
Part C = 1650 pcs
# of shifts =
ShippingAssemblyWeldingStamping
Takt =
C.T. =
D.T. =
FTQ = 90%
C/O Time =
Lot Size =
# of Shifts
WIP = 550 pcs.
Takt =
C.T. =
D.T. = 20%
FTQ =
C/O Time =
Lot Size =
# of Shifts
WIP = 60 pcs.
Takt =
C.T. =
D.T. =
FTQ =
C/O Time = 4 hrs.Lot Size =
# of Shifts
WIP = 25 pcs.
Changeover Downtime FTQ
I I II
2 x/day
2 x/week
Supplier
1,200 pcs 1,500 pcs 800 pcs 500 pcs
PC & L
Weekly Build Schedule
Daily Ship Schedule
6 week rolling forecast
6 week rolling forecastWeekly Order
Weekly Order
Current State MapStep 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time
Customer
Demand/month:
Part A = 705 pcs.
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =
Inventory
Part A = 750 pcs
Part B = 600 pcs
Part C = 1650 pcs
# of shifts =
ShippingAssemblyWeldingStamping
Takt =
C.T. =
D.T. =FTQ = 90%
C/O Time =
Lot Size =
# of Shifts
WIP = 550 pcs.
Takt =
C.T. =
D.T. = 20%
FTQ =C/O Time =
Lot Size =
# of Shifts
WIP = 60 pcs.
Takt =
C.T. =
D.T. =
FTQ =C/O Time = 4 hrs.
Lot Size =# of Shifts
WIP = 25 pcs.
Changeover Downtime FTQ
I I II
2 x/day
2 x/week
Supplier
1,200 pcs 1,500 pcs800 pcs
500 pcs
PC & L
Weekly Build Schedule
Daily Ship Schedule
6 week rolling forecast
6 week rolling forecastWeekly Order
Weekly Order
.27 days .17 days.4 days .5 days
1.0 days.18 days.02 days.008 daysTPc/t = 2.5 days
Demand Chain Solutions
Step 8: Detail Off-Line ActivitiesCurrent State Map
Show on the map using general icons
Detail on another sheet using either reference VSM and/or process flow-charting
IDies
Die RoomReceiving
Die RoomShipping(Remove from
ScheduleBoard)
Die Bench
IDies
2 shifts12 shifts
Schedule Board(Forecast)
Fork Truck
Press Room
Demand Chain Solutions
FIFO
Supermarket
SignalKanban
WithdrawalKanban
ProductionKanban
Leveling
PhysicalPull
Kanbanarrivingin batches
KanbanPath
KanbanPost
First-InFirst-OutFlow
MAX 50 PCS
Process Kaizen
Current State MapAdditional Mapping Icons
Demand Chain Solutions
It is not necessary that attribute data be precise.
It is necessary that the information at least be directionally correct.
Knowing that uptime is 82.7% vs. 82% is normally not necessary.
An assumption of 80%, however, when reality is 65% can be detrimental in that it may substantially misdirect the future state development and the prioritization of improvement activities.
1
Data Collection
Demand Chain Solutions
Agenda - Session 1
Introduction to Value Stream Mapping
Current State Map
Data Collection
Activity: Map Current State
Demand Chain Solutions
Attribute Data to Collect
How Operations are scheduled
Shipping/Receiving schedules
Pack sizes at eachprocess
Demand rates by process (Takt Time)
Working hours and breaks
Inventory Points (location & size)
Work-in-process inventory
Overtime per week
Process cycle times
Number of product variations at each step
Batch (lot) sizes
Changeover times
Changeover frequencies
Scrap
Rework
Downtime
Data Collection
Demand Chain Solutions
Tailor the data box for your plant’s needs.
The data box should be open ended to allow for additional attributes.
Data Box
Data BoxData Collection
Demand Chain Solutions
Scrap
Manufacturing Process
Kaizen Lightning
Burst
OutsideSource/
Customer
Data Box
Inventory
I
o o oTruck
Shipment
FinishedGoods to Customer
Push Arrow
Supermarket
Buffer orSafety Stock
Manual Information Flow
ElectronicInformation Flow
Production Kanban
Withdrawal Kanban
Signal Kanban
Kanban Post
ToolsIntroduction to Value Stream Mapping
Demand Chain Solutions 1
What is Takt Time?
Data Collection
Takt Time is the rate at which production should run to meet customer demand
The idea is to synchronize the pace of production to the pace of sales.
Your Operating Time per Shift
Customer Requirement per Shift
27,000 sec460 pieces = 59 sec
59 sec.
59 sec.
59 sec.
Demand Chain Solutions
1. Determine Total Customer Requirements for the affected process.
2. Determine the Scheduled Runtime (S.R.) for the affected process:
Scheduled Runtime = (Effective Minutes) - (Planned Downtime)
Effective Minutes = (minutes per shift) - (approved breaks)
Planned Downtime is the amount of time an operation is down for scheduled reasons.
3. Calculate Takt Time:
Scheduled RuntimeTakt Time =
Total Customer Requirements
3
How to Calculate Takt Time?
Data Collection
Demand Chain Solutions
Identify Opportunities for Improvement
?
Data Collection
Demand Chain Solutions
Agenda - Session 1 Introduction to Value Stream Mapping
Current State Map
Data Collection
Activity: Map Current State
Demand Chain Solutions
Activity: Map the Current State
• Complete draft of current state valuestream map.
• Review draft and identify openissues.
• Resolve open issues. Complete current state value stream map.
• Session 2 Review current state value streammap.
Complete By TaskApproximate Total Time:
Demand Chain Solutions
Session 2Agenda
Review current state Over view of developing future state Develop future state Develop action plans to get to future state Assign owners, timing, and frequency of review for action
items Report to leadership
Support Learning
Demand Chain Solutions
Agenda - Session 2 Review Current State Map
Design Future State - Purpose
Future State Map
Consider Key Questions
Summary
Activity: Design Future State
Demand Chain Solutions
Agenda - Session 2Review Current State Map
• Design Future State - Purpose
• Future State Map
• Consider Key Questions
• Summary
• Activity: Design Future State
Demand Chain Solutions
Define how the plant will operate in the future
Serve as the blueprint for implementation
Design Future State - PurposePurpose
Without it, the Current State Map is nothing more than wallpaper !
1
Demand Chain Solutions
Future State Map
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Step 7:
The Steps
Validate Customer Demand
Draw the Future State Process Flow
Map the Future State Material Flow
Map the Future State Information Flow
Calculate Total Product Cycle Time
Detail Off-Line Activities
Outline a Plan
2
Demand Chain Solutions
Original ConditionStep7: Outline a Plan
Future Condition
Inj:Molding
2SenderAss’y
2
MSS
Ass’yPlants
7
Stamping
10TankAss’y
4
Perform to TAKT & Pitch.
Produce to Order
Load Leveling and Pull
Zone Maintenance & Fast Response
Labels
LevelABABA. . .
Stagingby Truck
cardby
card
(Pitch = 14 Units)
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Stamping Changeover Reduction
Reduce Stamping Buffer
Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Pull To Sender Ass'y
Training
1999 2000Activity
Inj:Molding
2
SenderAss’y
2
MSS
TankAss’yStamping
Fuel PumpAss’y
I
I
I
I
I
I
Ass’yPlants
2
12
10 4
Cycle-Time Driven. Batches.
ChangeOver
ChangeOver
No Flow
Attendance
No Flow
Uptime
Item Current Target
Total product cycle time
Parts / Person Hour
Delivery Performance
Inventory (days)
Overtime
Uptime
METRICS
Future State Map
Demand Chain Solutions
Future State MapThe Steps
“Do It”Implement - Implement - Implement
Action - Action - Action - Action - Action
“Check It - Follow up”
Demand Chain Solutions
A simple way to approach the Future State Map is to begin
by modifying the Current State Map.
Future State MapThe Steps
Demand Chain Solutions
Agenda - Session 2 Review Current State Map
Design Future State - Purpose
Future State Map
Consider Key Questions
Summary
Activity: Design Future State
Demand Chain Solutions
Where will you need to use supermarket pull systems to control production of upstream processes?
What is Takt Time?
Will you build to a finished goods supermarket or directly to shipping?
Where can you use continuous flow processing?
At what single point in the production chain will you schedule production? (Typically, this will be the final process.)
How will you level the production mix at the pacemaker process?
What increment of work will you consistently release and take away at the pacemaker process?
What process improvements will be necessary at the value stream to flow as your future state design specifies?
Consider Key Questions
Demand Chain Solutions
Will you build to a finished goods supermarket or directly to shipping?
Every effort should be madeto minimize these variations. These variations are drivenby one of the seven formsof waste and should be eliminated.
Eliminate Waste
4
Consider Key Questions
The Wallof Protection:
Our Manufacturing Plant The Customer
Finished Goods Supermarket
Protects your customer from significant process variation.
Protects your manufacturing operation from significant demand variation.
Demand Chain Solutions
Where can you use continuous flow processing?
Consider Key Questions
Batch ProcessProcess
“A”Process
“B”Process
“C”
I IElapsed Time:60 Minutes
3
Process“A”
Process“B”
Process“C”
Continuous Flow (One-Piece Flow)
Elapsed Time:01 Minute
(Batch Process vs. Continuous Flow)
Demand Chain Solutions
Where can you use continuous flow processing?
Consider Key Questions
Batch Process
Continuous Flow (One-Piece Flow)
Process“A”
Process“B”
Process“C”
Process“A”
Process“B”
Process“C”
I IElapsed Time:60 Minutes
Elapsed Time:01 Minute
(Batch Process vs. Continuous Flow)
Demand Chain Solutions
This question is asking where you will require supermarkets or where you will have coupled processes.
Evaluate the following factors when considering this question:
Cycle Time CompatibilityEquipment Uptime/Downtime (remember that
coupling can multiply the effects of downtime)Equipment InvestmentFlexibility
Where can you use continuous flow processing?
2
Consider Key Questions
Demand Chain Solutions
Typically, a pull system is needed wherever continuous flow stops.
The only exception would be to use a simple FIFO system.
FIFO may work in situations where only inventory quantity needs to be controlled (not sequencing, batch sizing, etc.).
Visual quantity control is needed - without physically counting parts and scheduling machine operation.
Where will you need to use supermarket pull systems to control production of upstream processes?
2
Consider Key Questions
FIFO
Demand Chain Solutions
At what single point in the production chain will you
schedule production?
Consider Key Questions
FIFO
AssemblyMolding
PC&L
oxox
Pacemaker Process
Usually, you will schedule production at the final process.
Exceptions to this might be where your final process is supplied through FIFO.
1
Demand Chain Solutions
Consideration must be given to level both the mix and overall quantity of product scheduled for production.
Leveling of the production schedule is a fundamental requirement for the efficient management of operations
How will you level the production mix at the pacemaker process?
2
Time
Work-load
Without Leveling
Work-load
Time
With Leveling
Consider Key Questions
Demand Chain Solutions
Leveling of the overall production quantity must be supported by the leveling of the product mix.
How will you level the production mix at the pacemaker process?(Continued)
. Fri.
Part D
Part C
Part A & B
Part D
Part D
Mon. Tue. Wed. Thu
Traditional Scheduling
Daily Production
Mon 4370 Part D
Tue 4370 Part D
Wed 4370 Part D
Thu 4370 Part C
Fri 3277 B 1092 A
Level Scheduling
Mon. Tue. Wed. Thu. Fri.
Part APart B
Part CPart D
Part APart B
Part CPart DPart A
Part BPart C
Part DPart A
Part BPart C
Part DPart A
Part BPart C
Part D
Daily Production
Part A 218
Part B 655
Part C 874
Part D 2622
2
Consider Key Questions
Demand Chain Solutions
Leveling of the product mix must be supported by small lot production.
Small lot production must be supported by quick set-up.
How will you level the production mix at the pacemaker process?(Continued)
Consider Key Questions
Demand Chain Solutions
An effective way of communicating the level schedule to manufacturing operations can be through the use of a load leveling box.
How will you level the production mix at the pacemaker process?(Continued)
Consider Key Questions
Demand Chain Solutions
PartE
PartD
PartC
PartB
PartA
Mon Tues Wed Thurs Fri Sat Sun
BuildOrder
Macro-Leveling
What increment of work will you consistently release and take away at the pacemaker process?
Consider Key Questions
Demand Chain Solutions
Part C
PartB
PartA
8:00 8:10 8:20 8:30 8:40 8:50 9:00 9:10 9:20
Card (Part A
)
Card (Part A
)
Card (Part A
)
Card (Part B
)
Card (Part B
)
Card (Part B
)
Card (Part B
)
Card (Part C
)
Card (Part C
)
One column per pitch(Equals 10 minutes)
Kanban(pull card)
One row
per part num
ber
Std Pack = 10 pcsTakt Time = 1 min.
Build OrderSequenced and Timed
Micro-Leveling
What increment of work will you consistently release and take away at the pacemaker process?
(Continued)
Consider Key Questions
Demand Chain Solutions
Agenda - Session 2 Review Current State Map
Design Future State - Purpose
Future State Map
Consider Key Questions
Summary
Activity: Design Future State
Demand Chain Solutions
Data is analyzed to determine waste (inhibitors to flow).
Plans are developed toreduce or eliminate waste.
What process improvement are necessary for the value stream to flow as your future state design specifies?
This step is key to any successful value stream improvement
activities.
4
Consider Key Questions
This is the step where we can most impact
the bottom line.
Demand Chain Solutions
Explain Value Stream Mapping
Complete a Current State Value Stream Map
Complete a Future State Value Stream Map with proposed Implementation Plan
SummaryObjectives Review
Demand Chain Solutions
Agenda - Session 2 Review Current State Map
Design Future State - Purpose
Future State Map
Consider Key Questions
Summary
Activity: Design Future State
Demand Chain Solutions
Activity: Design Future StateTask
Using the current state map for your selected value stream, design your future state.
Outline a plan.
Review future state design and plan.
Approximate Total Time: