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© Lean & Mean Consulting. All rights reserved. 2015 © Lean & Mean Consulting. All rights reserved. 2016 02 / 16 Lean Value Stream Mapping & Analysis Creating End Vision and Roadmaps for Driving OpEx World - Class Standards of Operational Excellence

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© Lean & Mean Consulting. All rights reserved. 2015 © Lean & Mean Consulting. All rights reserved. 2016

02 / 16

Lean Value Stream Mapping & Analysis

Creating End Vision and Roadmaps for Driving OpEx

World-Class Standards of Operational Excellence

2

Objectives

Upon completion of this workshop, you will be able to:

Understand why creating a VSM is crucial for succeeding in Lean

Create a value stream map for both the current and future states

Develop a data collection plan for the value stream map

Conduct end-to-end assessment of value-added versus non-value-added activities

Prioritize projects based on strategic objectives

Develop action plan to achieve the future state

3

Agenda

1. Overview of Lean Thinking

2. Tools for VSM: make the life easier

3. Introduction to Value Stream Mapping

4. Identify a Value Stream

5. Create a Current State Value Stream Map

6. Analyze Value & Waste

7. Assess Opportunities

8. Develop a Future State Value Stream Map

9. Develop an Implementation Plan

4

3 enterprise value streams:

1. Raw Materials to Customer - Manufacturing

2. Concept to Launch - Engineering

3. Order to Cash - Administrative Functions

Value Stream Mapping

Supplier

PROCESS

Value Stream

Customer

PROCESS PROCESS

A B

C

5

A Value Stream is the set of all actions (both value

added and non value added) required to bring a specific product or service from raw material

through to the customer.

“Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it.”

Value Stream Mapping

6

Why Value Stream Mapping?

Ties together lean concepts and techniques

To set strategy before diving into tactics

Visualize the process at multiple levels

Enables us to see the flow and sources of waste

Provides a common language for analyzing processes

Provides a blueprint for creating flow and implementing Lean concepts and techniques throughout the entire value stream

7

Using the mapping process solely as a work design exercise

Using the map to make tactical improvements

Creating value stream maps during a kaizen event

Creating maps but taking no action

Mapping with an inappropriate team – or no team at all

Creating maps with no metrics…

Common Failings with Value Stream Mapping

8

VSM Toolbox: VSM Charter

9

VSM Toolbox: Future State Implementation Plan

10

VSM Toolbox Production VSM: Example Excel generated VSM

11

VSM Toolbox: VSM Template

12

• Creates an end-to-end view of the system

• Demonstrates interaction between material/work and information flow

• Provides a common visual language for understanding a complex system

Supplier/ Customer

Production Control

Customer

Work & Information Flow

Information flow

Value stream mapping provides an overview of the end-to-end business process

13

Value Stream Mapping Roadmaps

Develop

Implementation

Plan

Future

State

Design Establish

Current State

Baseline

Select

Product

Family

Define and scope

problem

Select product family

Determine VSM objective

and benefits

Map current state value

stream

Collect data

Quantify current state

value stream

performance

Analyze and identify

improvement

opportunities

Develop future state

value stream map

Prioritize improvement

projects

Develop implementation

plan

Seek management

approval

Implement the plan

and monitor

progress

1

2

3

4

14

• Phase 1 – Document and analyze the current state

Go to the Gemba!

• Phase 2 – Design the future state (3-6 month out)

• Phase 3 – Create the implementation plan!

VSM: Three Key Activities & Deliverables

15

Value Stream Walk - Three Actual Rules

“Go to the Gemba” - Actual place where the process is performed.

Talk to the Actual people involved in the process and get the real facts.

Observe and chart the Actual process.

Reality is invariably different from perception; Few processes work the way we think they do.

The purpose of value stream mapping is to identify waste, not to develop the perfect process map.

Understand the process through facts and data!

GO WALK IT!

16

Collect current state information while walking the actual material flows YOURSELF

Walk the whole process first, then revisit and gather information at each process

Begin at the shipping end and work ‘upstream’

When possible, establish original data:

get a detailed understanding, do your own timing

Historical data and what people tell you is normal is often wrong

Draw in pencil a sketch as you carry out the mapping, and clean up later

Current State Mapping Tips

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Consider both the material and information flow

Materials flow – presents the movement of material through the factory

Information flow – how does each process know what to produce and in which sequence

PRODUCTION FLOW

material

information

Like two sides of the coin!

18

Key Metrics: Time

Cycle Time (CT) The time it takes to actually perform the work, if one is able to work on

it uninterrupted

Includes task-specific doing, talking and thinking

Also called as “touch time”, work time.

Lead Time (LT) The elapsed time from the time work is made available until it is

completed and passed on to the next person or department in the chain

Also called as throughput time, turnaround time, elapsed time

Includes Cycle Time, not merely waiting time.

19

3 Types of Work-in-Process (WIP)

Process 1 Process 3 Process 2

WIP WIP

WIP

Waiting to be

processed Currently in

process

Completed, but not yet passed on

Process 2’s WIP

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• From this figure it is visible why the flow is bad in the current production. The bad flow also causes inventory between all processes.

• The takt time is 532 sec. based on 2 shifts. It is also clear that 2 shifts is not enough on the machining process.

20

40

60

80

100

120

Mach

inin

g 8

4 sec.

Drillin

g 2

6 sec.

Assem

bly

64

sec.

P. 1

1

30

%

50

%

20

%

85

%

30

%

Weld

ing

36

sec.

Bottleneck

Sec.

Takt time (2 shifts) = 108 sec.

= MUDA

• Calculation of takt

time:

The daily demand:

500 pcs.

The line operates 2

shifts.

Takt time =

(2 x 7.5 x 3600)* /

500 pcs. = 108 sec.

• For every 108

seconds there must

be a new product

ready for shipping

Current State – Leveling of Cycle Times

* 2 shifts x 7.5 hours per shift x 3600 seconds per hour

= Value added

21

Inventory

Process 1

Production Lead Time = 35 Days Value added time (VA) = 41 Sec.

12 Days

15 Sec

20 Days

17 Sec

2 Days

9 Sec

1 Day

Value adding activities

Material flow

Material Flow

Timeline. Value added and non-value added activities

Non-value adding activities

Process 2 Process n

22

Suppliers

Receiving Turret

1/0/1

Lasers

4/0/2

Rabbet Cell

Production

Planning

SU=1.28 mins

I

I

I

Robotic CT= 1.42 mins

Manual CT = 15.7 mins

Auto CT = 1.43 mins CT = 3.54 mins

Turret CT = 1.8 mins

AP CT = .5 mins

BP CT = 1.17 mins CT = .5 mins

Assy/PO CT=3 mins

Paint CT = 90 mins

2.7 days

Daily Schedule

Robotic Welder

Manual Welder

Auto Welder

Customers

4/0/1

9/0/4

2/2/2

1/1/1

SU=8.45 mins

SU=2 mins

SU=.58 mins

SU=1.5 mins

I

Paint Line

Assy/Packout

14/0/9

10/0/6

SU=0 mins

SU=5.15 mins

I

Shipping Orders

Forecast

Press Brake

Auto Press

Fabrication

1/0/1

1/0/1

SU=5 mins

SU=45 mins

150 pcs.

I

54 pcs.

716 pcs.

148 pcs.

4 coils

I 811 pcs.

0 pcs.

12.7 days .08 days 1.5 days

SU=1.1 mins

LT = 17.57 days

PT = 114.54 mins

PT to LT = 0.68%

186 pcs.

200 pcs.

.57 days

Work

Cells

CDO

Schedule

WIP

Reduction

Review

Staffing

Increase

PT to LT

Current State Value Stream Map Manufacturing Process

23

Transforming from Current State to Future State

Improvement

Maintenance

S

D C

A

P

D C

A

Maintenance

S

D C

A

P

D C

A

Improvement

Current State

Future State

Next Future State

24

Developing Future State

Future State Questions:

1. What is the TAKT time?

2. Will we build to shipping or to a supermarket?

3. Where can we use continuous flow?

4. Where do we have to use supermarket pull systems?

5. At what single point in the production chain do we trigger production?

6. How do we level the production?

SUPPORTING IMPROVEMENTS

What process improvement will be necessary? (e.g. uptime, changeover, training, etc.)

25

1. The team starts and ends the day together; begin and end breaks together

2. No interruptions or distractions – 100% focus; phones on silent; no email; no texting

3. Rank has no privilege

4. Seek the wisdom of ten instead of the knowledge of one

5. Use creativity before capital (in designing improvements)

To be continued…

VSM Improvement Activities: Rules of Engagement (1)

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Define tasks (1)

To get an overview of the tasks, Kaizen events are added to the “Future State” before the tasks are defined.

Kaizen events are drawn as “stars” or “bursts”.

Kaizen events aim to improve workplace organization (5S), increase uptime (OEE), reduce changeover times (SMED), implement Kanban, arrange the cell, cross-training, work sharing, etc.

When mapping the value stream, Kaizen is used to define the overall tasks to achieve the future value stream.

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PACE Prioritization Matrix

Ease

of

Imp

lem

enta

tio

n

Dif

ficu

lt

Low

Anticipated Benefit

High

Priority

Action

Eliminate

Easy

Consider

Projects/Kaizens

28

Lesson summary

Plan upfront: Select Product Family(ies), Communicate data requirements, Assign specific tasks to everyone involved

Go out on the floor! Measure times with a stopwatch, count inventory manually Regarding production planning, get the “official” story from the planner; get the

actual practice from the line supervisor or lead

Record the VA and NVA times for every step

Brainstorm problem areas before starting the Future State VSM

The Future State VSM is the roadmap of a lean transformation Challenge all “monuments” Set high goals

stamping welding assembly

29

Value Stream Mapping: Summary

Draw Customer Box

Draw Customer Requirements

Draw Management Control Box

Draw Supplier Box

Draw Transport to Production

Draw

Production/

Service Flow

Draw Communication

Arrows

Draw Push/ Pull Systems

Finalize

Measurements

Analyze Value Stream

Map

Identify Kaizen

Opportunities

Develop Future

State Map

30

Value Stream Management

The map is just a picture of ideas!

The fundamental change is in how we choose to manage the value stream as an integrated system of decisions and tasks.

31

Value Stream Management

Use your strategic plan as a guide

Find the gaps in necessary performance

Improve value streams to meet the performance

Create new metrics to support new ways of thinking and acting

Understand true product family costs

Manage operations by the value stream data

Always have a future state!

32

Critical sucess factors

Management must understand, embrace, and lead the organization into lean thinking.

Value stream managers must be empowered and enabled to manage implementations.

Improvements must be planned in detail with the cross functional Kaizen teams.

Successes must be translated to the bottom line and/or market share.

33

Planning and implementing

Don’t Wait!

You need a plan!

• Tie it to your business objectives

• Make a VS Plan: What to do by when

• Establish an appropriate review frequency

• Conduct VS Reviews walking the flow

34 © Lean & Mean Consulting. All rights reserved. 2016