Water Heater Manufacturer
Rajat Ranjan – 3745611 thOctober, 2014Executive MBA (2014-17)SIBM, LavaleCampus, Pune
Objectives :Value stream is a collection of all actions (VA as
well as NVA) that are required to bring a product (or a group of products that use the same resources) through the main flows, starting with raw material ending with the customer.
The ultimate goal of VSM is identify all types of waste in the value stream and take steps to try and eliminate these.
VSM is a powerful tool to spot where the waste is and where in the supply chain the actions have to be taken
Advantages of VSM :It helps to see the sources of waste in
thevalue streamIt provides a common language for talking
about the manufacturing processIt makes the decision about flow apparentIt ties together lean concepts and techniques,
which helps avoid cherry pickingIt forms the basis of an implementation plan
by designing the whole door-to-door flow
Processes of VSM :Collecting Information regarding existing Process
FlowsNumber of People Involved a every stageIdentifying the Cycle times, waiting timesInterviewing the Business users, Business
AnalystsProcess Flow, Product Flow, Information Flow and
the Communication FlowTaktTime is CalculatedCurrent State is Expanded based on Lean
Philosophy
Processes of VSM :Eliminating of Non Value added activities,
Eliminating waste, improving the communication and information flow and implementing the pull system.
Finally projected savings in terms of total lead time are calculated
Benefits of new process changesNeed for Change management is created and
communicated for all end users in the company.
Value Stream Mapping Measures:Takt Time (T/T): Takt time = Production Time Available /
Customer
Demand
Cycle Time (C/T): Cycle time is the total time from the beginning to the end of your process
Lead Time (L/T):The amount of time, defined by the supplier, that is required to meet a customer request or demand
Value Stream Mapping Measures:Value Added Time (V/A): Cumulative time of all the value added activities in a process.Non-Value Added Time (NV/A): Cumulative
time of all the non-value added activities in process.
Every Part Every (EPE):Change Over Time (C/O): A period of transitionfrom one model.Operator Number: The number of employees in
the process.
Current state VSM AnalysisThe production of a water heater occurs in 31
steps and each step is taken by a different operator.
1. Tank controland nutfastening
2. Attaching theo-ring andresistor to the tank
3. Flangescrewing
4. Flangescrewing
5. Assembly ofreset thermostat
6. Flangescrewing
7. Back doorAssembly
8. Clemensscrewing
9. Aperturegrouping
10. Aperturebody assembly
10. Aperturebody assembly
12. SwitchScrewing
13. Cableassembly tothe resistor
14. Attachingclamp andsocket
15. Thermostatscrewing
16. Limitthermostatassembly
Current state VSM Analysis17. Keyscrewing
18. Checkingbefore closingthe front box
19. PartialChecking
20. Mostencontrol
21. Hand-eyecontrol
22. Closing thefront box
23. Attachingthe screw andtag to the front box
24. Attachingthe button andthe stage tag
25. Attachingthe barcode andfront front panel
26.Packagingand putting inthe operatingmanual
27.Putting theproduct into thebox
28. Separatorand assembly
28. Separatorand assembly
29.Closing thebox, sticking thebarcode and warning label
30.Productinstallation andsticking the barcode
31.Packaging
Current state VSM calculation : The average of monthly production is 33000 and
monthly work day is 22. So that the average number of daily production is
1500.The average of daily working time of the factory is
33600 seconds.Out of this time, 2400 is spared for tea breaks and
the remaining 31200 seconds is pure working time.The daily demand of the product by consumers is
1500Takt time is 31200/1500= 20.8 seconds.
Future state VSM Process : Initial 100m2 work environment composed of
a line of 25.6 m2 and a remaining part of 74.4 m2 is decreased to a 60.5 m2 area, composed of a 25.6 m2 line and a 34.9 m2
Remaining part, as a result of the improvements made
Line(m2) Others (m2)
Total(m2)
Before Kaizen 25.6 m2 74.4 m2 100 m2
After the FirstApplication ofKaizen
25.6 m2 34.9 m2 60.5 m2
Metric Current State Future State Projected Improvement
Total Lead Time 29.3 Days 9.4 Days 212 %
Total Process Time
9.8 min 6.8 Min 44%
Activity Ratio 33% 72% 39%
Performance Metrics
Thank you