Value Stream Mapping.ppt

Value Stream Mapping“Learning to See the Whole Process”,January 21,2008,Proposed Edits,Following are the action items identified for VSM training-People to be added to foundation of Lean House-DONEOrganization structure for managing value streams to be added.May be VSBM-reference Filtration presentationRemove Lean and use COS“-DONEAdd NVA necessary to VA-NVA slide-Also use this visual from Pauls presentation-DONEExplain Planned Downtime“-DONECapacity Vs Takt decisions-complexity of decision making due to different scenariosCarrying Cost of Inventory-add example of perishable items as inventory costValue Stream Management-Emphasis on PDCA is the way to manage the value streams ADDED RE-ADJUSTMENT TO PLANNINGIntroduce A3 as a tool for Value Stream Management This will become too long trainingAdd slides 9,10,11 from Pauls Future State Rev2“-DONEPrepare for different layers of training-e.g.,Level 1-Executive/Management level,Level 2-Train the Trainer,Level 3-OperatorAdd Office/business process related examples to this training added some,but needs some moreLead time-examples for transactional processesHow far should we project for future state-caution:future needs can change frequently.General guideline-6 months,Add Slides or suggestions on the BACK of Presentation,Overview of Value Stream Mapping(VSM),The goal for todays session is to provide information on:Enterprise Improvement Tools Define Organizational Structure to Manage Value Stream Define VSM for COS and Waste identification VSM defined and where VSM fits under the Cummins Operating System(COS)The 8 Wastes Value Stream Mapping Process Where can VSM help you at your company?,Just in TimeSupply ChainProduction SmoothingFlow/PullLine DesignKanbanSet-up ReductionPoint of Use,Systems,Structures,CustomerVoice of the CustomerValue Stream MappingTakt time,Built in QualityAutonomationMistake-proofingDOE,Policy DeploymentMetricsEmployee InvolvementValuesDesign TeamsKaizen(Continuous Improvement)Ergonomics,Enterprise Improvement Tools,Stability,Variation Reduction ToolsStandard WorkPeople,DFSSReliability&Maintenance(TPM),Visual Controls(5Ss),People goes in the foundation,Describe Org.Structure for VSMKaizen RolesVSM ManagerEtc,SalesPrice,Lean Production Fundamentals,Value Stream Mapping The Starting Point,What Is VSM?VSM improvement is defined as the process of shortening the time from receipt-to-order to cash,by eliminating waste exhibited in an organizations value stream.COS is a philosophy and ongoing effort to reduce waste and variation throughout every process.VSM is a systematic approach to identifying and eliminating non-value added activities through continuous improvement of processes.Waste elimination equates to increased process speed.or less Time!,Value Stream Mapping Defined,Value Understanding the value of the work performed by defining it as something that a customer is willing to pay for.Value Stream Mapping the process steps that we perform throughout the value chain by identifying the steps that add value and striving to eliminate those that add waste or non-value added Value Stream Mapping is an improvement tool under COS(Cummins Operating System)practice#2,Value and Waste,Value Add,Waste=Non-Value Added,Focus of traditionalimprovement programsWork Longer Work Harder/FasterAdd PeopleAdd Equipment,Focus of COS deploymentEliminate Waste,Transforms material or information to meet customer needsActivities that consume time,resources,and/or space,but do not contribute to customer needs,Non ValueAddedWaste,IncidentalWork,ValueAddedWork,Waiting Extra handling Excess bending Excess reaching Travel time Repositioning part Rearranging Repair&rework Reprocessing Working ahead,Walking Get parts Apply fixture Discard dunnage Dispose of container Change cart Check manifest,Welding Bolting Clamping Position Clipping Painting,Eliminate,Reduce,Categories of Work,Reducing Lead Time By Eliminating Waste,Under-utilized People,Over-production,Waiting,Transportation,Inventory,Scrap/rework,Motion,Over-processing,Total Lead Time,Value Added Time,Waste,Waste Defined-Customers View,Waste is any action that does not add value to a product or service in the eyes of the customerAdds cost in terms of time,effort,and materials Does not add value to the Product or ServiceIs all around us,#1 Scrap/Rework Yield,FPF(First Pass Fill),Definition:Any product that does not meet specifications and therefore either needs to be reworked or scrappedGoal:100%First Time Through Quality,#2 Over-production(&Under production)creates#3 Inventory,WAITING?,QUALITY ISSUES?,Transportation?,lengthens Lead-time,Changeovers,Definition:Producing more than is necessary,often causing WIP(Work In Process);working on parts ahead of schedule while delinquent parts waitGoal:Produce to Target Cycle Time then eventually produce all operations to Takt Time in the Future State,#2 Over-production(&Under production)False vs.True Efficiency,False Efficiency Customer orders 100 unitsDue to improved processes,you produce 125 units with the same resources it previously took to produce the 100You overproduce 25 units=Waste,True Efficiency Customer orders 100 unitsDue to improved processes,you produce 100 units with less resources than previouslyYou produce 100 units with less resources,at an increased profit margin,and still meet all customer expectations,#3 Inventory Defined locations and quantities,Before,After,If you had only 30 seconds to find the unit.which storage system would you choose?,Definition:material or parts that are stored for future use or shipment,#4 Motion,Definition:Excessive motion beyond what is needed to get the job done ERGONOMICS?SAFETY?Goal:Reduce non-value added motion,?,sitting,turning around,searching,climbing,choosing,bending,lying down,over,#5 Processing(Over&Under),Definition:Extra and/or unnecessary operationsStandardization of operations not thorough enoughProcessing a part above specificationsGoal:Process parts that consistently meet the minimum customer requirements 100%of the time,#6 Transportation,Definition:Moving parts to unnecessary distances from one operation to anotherGoal:Put operations in order;minimize or eliminate the travel distance between them,#7 Waiting,Definition:a person or part(s)sitting idle while waiting for material,a supervisor,the next operation,etc.Goal:Eliminate the unplanned interruptions that occur due to inefficienciesDevelop continuous flow wherever possibleConvert waiting to value-added work,#8 Under-utilized People,Definition:Skills untapped,Ideas not implemented and improvements not realizedGoal:Tap into the energies and unused improvement ideas from the workforce,Possible ROOT?Causes of Waste,Layout(Distance)Long Setup TimesIncapable ProcessesPoor Maintenance PlanningPoor Work MethodsInadequate TrainingLack of AdherenceInconsistent Performance MeasuresIneffective Production Planning&SchedulingEquipment/TOOLS Design and SelectionLack of Workplace OrganizationAvailability of required Resources,Value Stream Mapping,A tool that helps us“see”how a process operates in order to identify the best improvement opportunities.,Follow a products production path from beginning to end,and draw a visual representation of every process in the material and information flows.,Draw by hand using a pencilGo see for yourselfStart at shipping and work upstream,Mapping Icons,Assembly,C/T=2.3 hrsC/O=47 minMix=3 parts2%Scrap,2,2,ABCSteel Co.,Manufacturing Process,Manufacturing Data,Outside Source,Inventory,8 pcs3 days,I,Material Flow(Push),1xdaily,Marketplace&Pull System,Shipment,Information Flow Electronic Info,Workshop Outline,1.Understand the Need for a Future State MapCummins Crosspoint and Cummins In.Site Goals and Customer DataObjective of WorkshopThe need for change and improvement2.Identify improvement opportunitiesDefinition and Characteristics of an improved VSMWaste Elimination3.Create the Current State Map“Process Walk”(record cycle time,setup time,WIP,items in Process Information sheet)Drawing the Current State MapConfirming the Data4.Create the Future StateGuidelines for Creating the Future StateMapping the Future StateAchieving the Future State through Continuous Improvement Team 5.Create Action Plans to achieve Future StateIdentify and prioritize improvement projects,Takt Time,Definition:The beat of production-or-Customer demand stated in Time Takt=Work time available-Planned downtime Customer Demand(Planned Downtime includes breaks and lunch)Target Cycle Time=Takt x O.E.E.=(UNPLANNED DOWNTOWN)(O.E.E.=Overall Equipment Effectiveness),The Change Process:Determine Takt time,set-up for Flow,and install a Pull System,TO ACHIVE TARGET CYCLE TIME What is OEE?,Overall Equipment Effectiveness,QualityIssues,Performance(Speed Losses),Availability(Downtime),=X X,Setup TimeMachine FailuresTooling LossesPlanned Maintenance Material Shortage,Reduced operating speedMinor Stoppages,Scrap/reworkREWORK(FREE CUSTOMER Service)Yield or Startup Losses,Available Time-DowntimeAvailable Time,Total Cycle TimeActual Time,Good OutputActual Output,Parts Produced x Cycle Time,Capacity Tool,McDonalds.Is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 119 countries each day.VSM analysis:50 million divided by 30,000 restaurants=1,667 people per day at each locationRate per hour=1,667 divided by 18 hrs.(6:00 a.m.to Midnight)=92.6 people served per hour=1.54 people per minute=39 seconds to serve each customer=Takt time(Pace at which you need to meet customer demand),Takt Example,Non-Value-Added Work Reduces Speed,Profits and Customer Satisfaction,Example:Football Game,Elapsed Time=180 Minutes Regulation Time=60 Minutes Actual Playing Time=23.33 Minutes(Value-Added)(140 Plays x 10 Sec/Play)Value-Added=13%Value-Add%in a non-improved process,is usually less than 5%!BASEBALL is 4 minutes out of 180 minutes or 2.2%Value Added Example A no-huddle offensive,increases the“value-added”time,more plays per game,Value-Added Analysis,VSM Example,Why is Lead-time so Important?,Can you name one manufacturing or service process that would cost you more money if total end to end lead-time was reduced?Carrying costs of inventory is calculated at a minimum of 12%of the value annualized“Lead-time is the killer of productivity”-The longer the lead-time the more likely non-value added steps occurService flexibility is diminished as lead-times increaseChanges in customer production or demand requirements during an inflexible lead-time has negative consequences for the value chain,Value Stream Mapping for RECT Time Buckets,Lead-time,Insert Applicable Cummins Manufacturing Example and Transactional Ex.,Pre-work VSM Process Information Sheet,Spaghetti Diagram,CSR movement,MAIL,F,F,Repro,Auditor,Copier,SBU,17,30,1,2,3,4,6,7,8,9,10,11,12,13,14,15,16,18,21,22,24,25,26,28,32,33,20,5,19,23,27,29,31,Takt 165 minutes Current staffing 3,*This is a building layout showing non value-added walking time,Tool Example,1,Xelus Inventory SystemBMS System for Work Orders,Takt Time=1.21 units/Hr.14.88 hrs./12.29 units 948 units/77.14 days=12.29 Data:Two 8 hour shifts,16 hr.total per day planned breaks=14.88 hours per day planned working time.,Lead Time:5.16 46.1 Hrs.,Value Add Time:3.42 9.37 Hrs.,Current State Value Stream MapIn-Shop Service Current State(11-15-2007)Cummins Crosspoint,Branch 001,1 Truck,In-shop Customers,Recon Parts,Non-MDCService PartsFleetguard,Oil,etc.,Major Suppliers,3 Weeks?,1 day worth of Service visibility,Master Scheduler-Daily update BMS,Pick-up or Deliver Truck,Bi-weeklyPurchasing,Supermarket,Minor Repair=66.3%Value-added Time,Material,XYZ,Company,Process&Data Box,Customer or Suppliers,Inventory,Shipment,Push,Finished Goodsto Customer,Supermarket,Pull,Information,Material Info flow,WeeklySchedule,Information,Withdrawal Kanban,Signal Kanban,Kanban Post,Kanban arriving in batches,O X O X,Load Leveling,Operator,FIFO,Production Kanban,100%,S,C/T:10 min.,/,C/O:N/A,Yield:,:,#,Employees:,:,#,Shifts:,Distance:,Shared/Dedicated:,Open WO&input info.,2,2,Value Add=20 min.,Minor=2.1 Hours L-T,100%,S,C/T:10 min.,/,C/O:N/A,Yield:,:,#,Employees:,:,#,Shifts:,Distance:,Shared/Dedicated:,Greet Customer and Interview,2,2,96%,S,C/T:60 min.,/,C/O:15 min.,Yield:,:,#,Employees:,:,#,Shifts:,Distance:,Shared/Dedicated:,Reviews Complaint,assigns Tech to T/S,1,1,Quote Eff.,S,C/T:20-30 min.,/,C/O:1 min.,Yield:,:,#,Employees:,:,#,Shifts:,Distance:,Shared/Dedicated:,Develop Quote&Repair Plan,2,2,?%,S,Yield:,:,#,Employees:,:,#,Shifts:,Distance:,Shared/Dedicated:,Repair Unit,13.5,2,Quote Eff$,S,C/T:15 min.,/,C/O:5 min.,Yield:,:,#,Employees:,:,#,Shifts:,Distance:,Shared/Dedicated:,Invoice Customer,2,2,?%,S,C/T:15-30 min.,/,C/O:N/A,Yield:,:,#,Employees:,:,#,Shifts:,Distance:,Shared/Dedicated:,Communicate with Customer,2,2,FPF=90%,FGS,Diagnose,FIFO,C/T:Minor 34 min.,C/O:20 min.,C/T:Major 366 min.,C/O:20 min.,Value Add=150-246 min.,Major=4.5 Hours L-T,Minor=2.5 Hours L-T,Major=39.6 Hours L-T,Value Add=30-45 min.,Minor=.56 Hours L-T,Major=2.0 Hours L-T,Major Repair=20.3%Value-added Time,Only 1 Day!,Long L-T,Bottleneck!,Low ValueAdd%,Subtracted Diagnose and Develop Quote/Repair Plan process times from median Repair times to not double count repair time from BMS,Insert VSM transition slides,Current State without Future State bursts,VSM Requirements of Standardized Work,Standardized Work is made up of three basic elementsTakt TimeWork SequenceWork-in-Process Stock,Future State Map Objectives,1.Produce to Takt Time(Customer Pace)or Target Cycle Time(O.E.E.)2.Decide whether to produce to stock or to order(EXAMPLE AND DECISION MADE BASED CURRENT STATE TO FUTURE STATE)3.Develop continuous flow wherever possibleEXPLAIN THE FOLLOWING:DETERMINE if Bottlenecks need to be fixed first before next STEP4.Use supermarkets pull systems to control production where continuous flow does not extend upstream GO GET PULL DONT PUSH5.Send the customer schedule to only one production process6.Separate“Regular Runners from Irregular ONES”7.Level the production mix8.Level the production volume9.Consider Pull Systems with Customer and Supply Base after 1-8 is completed,Re-adjust the improvement plan,TAKT,Cycle and Target Cycle Time,Summary,The success of VSM is dependent upon integrating the improvement principles for Service/Manufacturing while validating the Effects of the Change using Six Sigma analysisIt takes a team of change agents and process owners to identify the opportunitiesValue Stream Mapping highlights the use of other critical tools like 5S,Standard Work,Set-up Reduction,O.E.E.,Pull Systems and other tools as part of KAIZEN,Continuous Flow and Voice of the Customer Focus on“Seeing the Whole Process”from the Customers viewpoint,internal customer view and your Supply Chain.,Add Slides or suggestions on the BACK of Presentation,Comments:1 Waste in terms of Service operations2 VSM example for service operation34,Waste in Service environment,Delay Duplication re-entering dataUnnecessary move