618week10-Lean.ppt

Six Sigma Quality Engineering Week 10Lean Enterprise Continuous Improvements (Kaizen)

What is a Kaizen Blitz?A Kaizen Blitz is a cross functional multi-level team of 5 to 10 members working intensely for 10 to 14 hours a day, to rapidly develop, test and refine solutions to problems and leave a new solution in place in just a few days. They dont plan, they dont propose, they do. This focus on immediate change is what sets Kaizen activity apart from other improvement tools.A Kaizen Blitz, used in conjunction with the Toyota Production System (TPS) and current Lean Manufacturing principles, can serve as a catalyst for the initial implementation of a plant wide Lean Manufacturing initiative.

Cycle of an Event123456789101112Our Way of LifeRecognize the Need for ChangeSchedule the EventSelect System / Process to OptimizeDevelop the ObjectivesProcess Owner: Review & Explains ObjectivesLearning the Tools5S, Process FlowTAKT / Cycle TimeCapture the DetailsData GatheringDetail AnalysisSet Goals,Make a PlanMake the ChangeProcess Owner:Accepts ChangeFormalize the Change

Define the problemAnywhere Work is being done Waste is being generated THE CUSTOMER DOES NOT PAY FOR WASTEModule 0013Where do we start first?

How Material SpendsTime In The FactoryValue Added4%Non-Value Added96%80'sValue Added16%Non-Value Added84%90'sLargeopportunity We can makethis betterbut it is notour focusBetter

How Paper Spends TimeIn An Office ProcessVA 18%NVA 82%ref: Otis - NAD, 1991We will also focus on front end throughputopportunitiesModule 0013

Total Cost6 %Direct Labor As a Percent of Total Cost.This is not alabor reductionprogramModule 0013

The New EquationOld ViewMfg.CostProfitSalesPriceSupplier Cost IncreasesSalesPriceMfg.CostProfitSalesPriceSupplier Cost IncreasesCost + Profit = Sales Price New RealityProfit = Sales Price - CostEither wayMfg. Costs haveto decrease tomaintain orincrease profitsValue

Process Layout And FlowMass Production SystemReceivingOP1InspectionStoreInspectionStoreRaw MaterialLay it outWIPWIPWIPWIPWIPWIPOP2OP3TrimCleanFormOP4WIPWIPWIPWIPWIPWIPOP5OP6Heat TreatCleanPunchWIPWIPWIPWIPModule 0013

Separating The Value AddedFrom Non-Value AddedReceive + Inspect + Move + Store + Count + MoveAnneal + Move + Wheelabrate + Inspect + MoveMill to Face + Inspect + Move + Wash + Move + Store + MoveTurn Stem I.D. & O.D. + Inspect + Move + Wash + Move + Store + MoveGrind Top Face + Inspect + Move + Wash + Move + Store + MoveDrill CBore, Through Hole & Venthole + Inspect + Move + Deburr Venthole + Move Mill Clearance + Inspect + Move + Wash + Degrease + MoveCarburize + MoveAnneal + Move + Degrease + Inspect + Move + WashHone Stem I.D. + Inspect + Move + Wash + Move + Store + MoveMill Nut Surface + Inspect + Move + Wash + MoveMeasure itModule 0013

Separating The Value AddedFrom Non-Value AddedREDRILL & TAP + Move + Wash + Degrease + MoveINSTALL SCREWS + MoveHARDEN + Move + Degrease + MoveREMOVE SCREWS + MoveTEMPER + Move + Wheelabrate + Inspect + MoveHONE STEM I.D. + Inspect + Move + Wash + MoveFINISH GRIND TOP FACE + Inspect + Move + Wash + MoveInspect "A" Dimensions + MoveInspect "B" Dimensions + Move + Select Fatigue Test Samples + Store + MoveAudit + Move (If quality Audit is Acceptable) (Rejected - Rework) + StoreReceive in Finish Stock Room + Count + Store + Issue + MoveBAG + Inspect (If Acceptable) + MoveSHIPPING

SUMMARY: 17 VALUE ADDED ELEMENTS / 93 NON-VALUE ADDED ELEMENTSLEAD TIME: 345 HOURS/23 HOURS DAY = 15 DAYS1. Why?2. Why?3. Why?4.Why?5.Why?Module 0013

Crosshead CellValue Added SummarySmall change The Lean focusModule 0013

Process Flow SummaryTypicalU.S. AverageProcess Timewas 4%Sitting in a rack or in queueAdding valueIs lead-time important?which should you attack first?

Process Layout Flow AndMass Production ProcessRAWMATERIALSCLEANINGTOFINISHEDSTORESINSPECTIONPUNCHINGFORMINGCUTTINGTRIMMINGRAWMATERIALSTORESHEATTREATThis could also be office structure process islandsModule 0013

The General Concept1. Specify VALUE From your customers perspective, not yours. What does the customer want? What are they willing to pay for?2. Identify the VALUE STREAM and Eliminate Waste The entire value delivery process from inquiry to receipt of cash.3. Make value FLOW - Ideally One-Piece-At-A-Time4. Let the customer PULL value through the process. Not suppliers or machine technology5. Pursue PERFECTIONCritical Ingredients Of Lean Are:Anywhere work is being done, waste is being generated.Module 0013

Lean Thinking-DefinedHuman activity that absorbs resources but creates no value.Mistakes that require rework.Production of items no one wants so inventory piles up.Processing steps which arent actually needed.Movement of employees/goods without any purpose.Downstream people/processes waiting for upstream activity.Goods/services which do not meet the needs of the customer

Total Elimination of..WasteModule 0013

Eliminate Waste Out Of Total ActivitiesModule 0013

Lean ManufacturingThe Fundamental ConceptMake What is neededWhen it is neededIn the Amount NeededModule 0013

New Competitive RealitiesAs Time is Compressed, Quality, Productivity and Cost are ImprovedYou need more than cost reductions to steal customers away from your competition. You cannot cost reduce yourself to prosperity, you need to grow. Module 0013

Lean ManufacturingIs a Methodology for the Systematic Elimination of WasteLeanStoresReworkNon-Lean7 Types of WasteOverproductionWaitingTransportationUnnecessary ProcessingInventoryUnnecessary MotionCorrection+ A PersonApplies to allbusiness processes!Module 0013

Waste of OverproductionTo produce more parts than necessary or at a rate faster than required. (Both contribute to excess inventory and waste time that could be spent making required product.) THE PRIMARY WASTEModule 0013

Waste Of CorrectionTo correct or repair a defect in materials or parts adds unnecessary costs. (rework)Module 0013

Waste Of ProcessingTo process unnecessary work which does not advance or improve the quality of the product. (performing multiple transactions to receive material, transacting parts into inventory... then take them out to load machines.)

Module 0013

Waste Of InventoryInventory is a drain on an organizations overhead. The greater the inventory, the higher the overhead costs become.

(With excess inventory, we cover-up unacceptable change over times, excessive downtime, and operator inefficiency)Module 0013

Waste Of MotionAny movement of people or machinery which does not contribute added value to the product.

(excessive walking distance between operations)Module 0013

Waste Of WaitingIdle time between operations or events.

(operator waiting for machine to finish cycling or machine waiting for operator to load new parts)Module 0013

Why Focus On HumanInstead Of Equipment?Equipment is a sunk cost; it depreciates over time, wears out or becomes obsolete.

The Operator is an ongoing resource that should appreciate over time. They gain skill and knowledge.Your competition can easily match you machine for machineYour competitive edge is in how you deploy your value adding peopleModule 0013

How does lean specifically attack the problem?Module 0013

Tools Of The Lean Enterprise*5s*Supplier Certification*Cell layout(U shape)*Takt time*5 Whys*Right Sizing*Single minute exchange of die (SMED)*Quality at source*Signal lights*Visual Controls*Multi-skills training*Autonomation*Curtain*1 part pull*Line stop*Mistake proofing*Standard Work*TPM*Process Mapping*Kanban*POU inventory*Right sizing*Time observations*% loading*Normal/Abnormal*Value adding analysisModule 0013

5-S WorkplaceOrganization Steps 1.SORT Clearly distinguish what is needed and what is not Remove what does not support the least waste way

2.STRAIGHTEN Organize the way things are kept, making it easier for anyone to find & return items to their proper location in the sequence used

3. SHINE Keep things clean-floor, machines, desks, files equipment-neat & tidy

4. STANDARDIZE Maintain & improve the first 3Ss

5. SUSTAIN Achieve the discipline / habit of properly maintaining the correct procedures

Lean ManufacturingInvolves the precise definition of Normal in such a way that the Abnormal is exposed in Real-Time and can be eliminated. The result is a Continuous Improvement EnvironmentModule 0013

Identify The WasteBased on Observation: Normal vs. AbnormalValue-Added Non Value-Added EliminateKaizen EliminateModule 0013

Dont ForgetIt is the not the person doing the work that is ugly. It is the Waste that is ugly.We are not stripping people of their dignity.We are attacking WasteWasteMonsterModule 0013

RAWMATERIALS

FixtureCLEANING

FixtureFINISHEDSTORES

FixturePUNCHING

FixtureFORMING

FixtureCUTTING

FixtureTRIMMING

FixtureHEAT TREAT

FixturePARTOne Piece Flow ModelModule 0013

Physical LayoutSupports one piece flowSupports Standard Work In ProcessSupports Standard WorkSupports visual controlEach kaizen reduces the cell size Kaizen after Kaizen after KaizenModule 0013

Visual ControlsThe use of signals, lights, measurements, diagrams, charts & signs to : Clearly define the normal or desired conditionExpose the abnormal undesired condition - real time

Material Replenishment SystemHow they workThis same shelf with additional Visual Controls becomes more meaningful

Standard Work may be :Green - normalYellow - reorder point passedRed - replenishment past due, contact supplier immediatelyBlue - abnormal, investigate - consumption changed, supplier overshippedModule 0013

Material Replenishment System1. Ensuresthe right thing ( Instrument, supply, etc )in the right quantityat the right timeto the right locationin the right orientation2. Simple signs used to trigger material replenishment according to usage at Takt time cadence Module 0013

Standard WorkThere can be no improvement no Kaizen without the basis of Standard Work

Standard Work details the motion of the operator & the process sequence in producing a part

It is the statement of the least waste way of production through the best combination of people & equipment, the least amount of Work In Process possible, showing where to check for quality & where there are safety issues

It provides a routine for consistency of an operation & a basis for improvementNot machineIt tells us how to make oneto our TAKT timeModule 0013

Single Minute Exchange Of DieS.M.E.D.A process for dramatically, logically & methodically reducing set up or changeover time To enable the significant reduction of lot sizes & the approach towards single piece flowSupports mixed model, daily productionThe goal is to change a set up in one TAKT timeLarge machine centers set ups must be done during machine cycle timeLevel loaded demand (1A,1B,1A,1B) In other words PROFESSIONALISMModule 0013

Takt TimeFrom the German word for meter

The time which reflects the rate at which customers buy one unit

It is what it isNot much youcan do aboutthisWe can work with thisModule 0013

5 Whys1. Why did the system fail?A: The motor burned out2. Why did the motor burn out?A: The shaft seized3. Why did the shaft seize?A: There was no lubrication4. Why was there no lubrication?A: The line filter was clogged5. Why was the line filter clogged?A: It was the wrong sized mesh!Root CauseModule 0013

TPMThe lack of TPM results in BreakdownsBreakdowns are a result of undetected or ignored equipment deterioration75% of all equipment deterioration can be detected by a trained operatorThe remaining 25% can be detected by trained maintenance technicians performing preventative & predictive maintenance therefore all breakdowns can be preventedDo a careful analysis of when the machine does not need to be run( lunchperiods,breaks, second shift, weekends, holidays etc.) 75% of all machine downtime is due to dirt and lack of proper lubrication.Module 0013

Process MappingA visual representation of a process that can include:process stepssequencedurationdistanceA process map can be constructed at a high level - broad process steps or at a lower level - with process detailYou have to do more than just ask someone how long an operation takes. Generally, they will not include walking and waiting, and will give highly inaccurate set up times.

One Part PullThe opposite of batch productionProcessing product one at a time at the unit level at which the product is soldLean Manufacturing delivers its greatest improvements, maximizes its problem exposure, and enables constant top quality when one part pull is relentlessly appliedExposes the problems (Makes it ugly). It is hard to hide problems in the system with no buffer stockRepairs are made on 1 part rather than the entire batchModule 0013

Mistake ProofingMistake proofing goal - Zero defectsMistake Proofing is a method that uses simple, low cost devices to check each part at each operation to prevent mistakes from occurring1. Built into product design2. Built into process3. Automatic check systemWork to achieve defect preventionnot defect detectionModule 0013

Right SizingOnly the right amount of resources equipmentspacework surfacematerial to support one piece flow

Must first improve the operation, then improve the equipment. You do not want to size the equipment toaccommodate a wasteful cellModule 0013

Right SizingBuy only the minimum amount of equipment, preferably built in houseDo not always think that expensive, high performance machines are always the best, but consider a consistency of the whole productionFirst improve operation and afterwards carry out improvement of equipment, otherwise it might cause the mechanization of waste.Module 0013

Multi-Skilled WorkersThe leanest process may require workers to provide effort in a variety of tasksRigid job classifications & definitions are in direct conflict with teamwork & reduce flexibility to meet customer needsMulti skilled workers are capable of maximizing teamwork & performanceEspecially important to 1 part flow in anassembly operation Module 0013

Curtain OperationA Curtain Operation :Is often out of the cell/build flow areaDoes not lend itself to one piece flowCould be a batch type operation such as heat treat or cureIs often a monument

A Curtain Operation done effectively enables one piece flowModule 0013

Curtain OperationCurtainOperationInboundOutboundhThe rabbit chaseModule 0013

Supplier CertificationA tool designed to make suppliers take the full responsibility for the quality of their product, such that incoming inspection by the purchasing firm may be eliminatedSuppliers with proven track records of excellent performance are certified & expected to guarantee defect - free productsRequires a good deal of homework doneon your specifications and drawingsto make sure you are not the problem.Module 0013

Design For ManufacturingAnd AssemblyA conscious process of making design decisions only after fully evaluating the manufacturing processes, tools, quality control measures & equipment impactsModule 0013

Quality Function DeploymentA technique where product performance features and the characteristics which deliver them are determined by the Voice of the Customer & paid heed to by the producer ( by listening & acting )The quality responsibility is then deployed throughout the organization by tying compliance activities directly to the fulfillment of these customer requirementsModule 0013

Standard WorkStandard work is a tool that defines the interaction of the operator and machine in producing a part.It details the motion of the operator and the sequence of the machine. It provides a routine for consistency of an operation and a basis of improvement.Module 0013

Time ObservationOne of the critical tools for documenting realityOne time observation form per operatorTwo observers for each operator.One operates time pieceOne records the informationFocus on the operator, not part flow or machine cycle timeModule 0013

Standard Work SheetModule 0013

STEPTIMENUMBERMan.Auto.Walk12Spec. SteelFin. Grind O.D.1/22/9812369040p.u. & blow off partunload, load, cycle startgage 2 dia. - go/no goload drill hopper21343----523--33--2152510152025303540455014438TT

Standard Work SheetTTIn the case where the cycle time does not come up to the Takt Time...then not enough work has been assignedTTIdeally, the Cycle Time should equal the Takt TimeCT =TTModule 0013

Tools To Document RealityTime Observation SheetStandard Work SheetsStandard Work Combination Sheet Percent Loading ChartProcess Capacity5S WorksheetModule 0013

Lean ManufacturingInvolves the precise definition of Normal in such a way that the Abnormal is exposed in Real Time and can be eliminated. The result is a Continuous Improvement EnvironmentModule 0013

Make It UglywasteProcessFlowMappingTimeObservationStudies

Takt TimeAnalysisVisualControlsModule 0013

The GoalTotal Elimination of Waste Module 0013

Typical Lean Activities InitiatedAt A Kaizen Event The 5sPOUKanbansTakt time 1 part pull systems Process mapping Right sizing Time observations Value adding analysis Visual controls Curtain Standard work Cell layout Signal lightsModule 0013

Two Steps Forward, One Step BackTwo steps forward, one step back is OK No steps forward is notImplementation errors will occur, these should be rewarded if done for the right reasonAnchor Dragging is unacceptableSteady State in our industry, or any other, will lead to failureIts not OK to do nothing to improve our operation on the grounds that the risk of failure, (step backward) is too highBad news isgood newsManagementmust monitor

To Lean ImplementationOne piece flow

Step OneChoose Your Project WellHigh Probability For SuccessGood VisibilityShort In DurationRequires Several Lean ToolsIs Measurable

Step TwoChoose Your Team WellOpen Minded And EnthusiasticSelect People Who Work With The ProductOperatorsMaintenance PeopleSupervisorsME/IEPlanners

Step ThreeTrain! Train! Train!Overview Of Six Sigma Continuous ImprovementSingle Piece Build (Use The Stockless Production Video Made By Hewlett PackardUse Your Black Belts

Step FourCalculate Takt TimeThis Is The Customers Drum BeatTakt Time = Units Purchased Per Day Divided Into Actual Time Available In A ShiftExample: 27,000 Seconds / 20 Units = 1350 Seconds Per Unit Or (1) Unit Every 22.5 Minutes

Takt TimeThe time (pace) required to produce aproduct based on customer demand.Often expressed as: TAKT TIME = Time AvailableCustomer DemandExample: Elevator Manufacturer-Customer Demand:50 Hydraulic Elevators / Week-Daily Demand:10 Hydraulic Elevators-Time Available:435 Minutes / Day (480 min less cleanup, breaks)435 / 10 = 43.5 Minutes per elevator = TAKT TIMEThis pace must be maintained in order to satisfy customer demand!

Cycle TimeThe time for an operatorto do a prescribed taskand return to his/her original stance.

Lead TimeThe amount of time it takesto convert raw materials intofinished goods (External Customer)or to move goods from one partof the process to another(Internal Customer)

Cycle Time vs. Lead TimeTask1Task2Task3Task4Task5Lead TimeMOVEWAITSET-UPRUNCycle Time

Takt Time vs. Lead TimeLead TimePROCESSWIP>TAKT Time is a rate of demand>Lead Time is how long the whole process takes>They are NOT related!1 Unit / MinuteTAKT TimeCan a process have a 1 hour TAKT Time and a 6 month Lead Time?

Step FiveStudy The ProjectTeam Meetings To Discuss The Project Set Objectives25% Improvement In Through Put50% Reduction In Floor Space65% Reduction In InventoryMeeting The Takt TimeEstablish The Metrics

Batch vs. One-Piece Flow(Process oriented layout with Lot Size = 5)Processing Time = 1 Minute / UnitProcess FlowTIME ELAPSED (MINUTES)05101520NOTE: Typically, the distances between process is long in a process oriented layout, making difficult to transfer units one-by-one.Manufacturing Lead Time

Batch vs. One-Piece Flow(Process oriented layout with Lot Size = 1)Processing Time = 1 Minute / UnitProcess FlowTIME ELAPSED (MINUTES)01234Manufacturing Lead TimeAdd the Balance of Units (4 x 1/Unit)8

Boeing 737 Lean Cell

Boeing 737 Lean CellOne 737 airplane every 9 days

Value Stream Analysis

What you can ExpectValue Stream Analysis Kaizen Training contains what you need to know to get the job done, not everything you need to know to be an expert.Part 1Lean concepts and terminologyPart 2The process by which we create future states

Lean ThinkingValue in the Eyes of the CustomerThe Value StreamFlowPull of the Customer Perfection

Value AddedValue is added any time we physically change our product towards what the customer is buyingIf we are not adding value, we are adding cost or wasteLean Manufacturing drives the systematic elimination of wasteValue-Added Time : MinutesTime in Plant : WeeksORDERCASHKEY QUESTION Are my customers willing to pay for this ????

Value Added vs. Non-Value AddedOverproductionWaitingTransportationNon-value added processingExcess inventoryExcess motionDefectsLEAN = ELIMINATING THE 7 WASTES

7 Basic Types of Waste (Toyota)Overproduction producing more than what is demanded by the customerInventory Storing more than the absolute minimum neededTransportation the unnecessary movement of materialsWaiting waiting for the next process stepExcess processing due to poor tool or product designWasted motion unnecessary reaching, walking, looking for parts, tools, prints, etcDefects scrap and rework

What is Flow ?Producing and moving one item at a time (or a small and consistent batch of items) through a sequence of process steps as continuously as possible, with each step making just what is requested by the next step.

Lean Lexicon Version 1 p9CONTINUOUS FLOWTRADITIONAL

Continuous Flow More Efficient & FasterTraditional Batch LayoutContinuous Flow Layout

Production KANBANWithdrawal KANBANSUPERMARKETproductproductCUSTOMER PROCESS goes to supermarket and withdraws what it needs when it needs it.SUPPLYING PROCESS produces to replenish what was withdrawn.PURPOSE: Controls production at supplying process without trying to schedule. Controls production between flows.Mike Rother Learning to SeeSupermarket Pull System

Process

A

Supplyingprocess

Process

B

Customerprocess

Takt TimeTakt time paces production to the pace of customer requirements.Total daily operating timeTakt Time =Total daily customer requirementOperating time =1 shift x 8 hours (2) 20-min. breaks = 440 mins/day Customer880 units/month== 44 units/dayRequirement20 days/month440 mins/dayTakt time== 10 mins/unit44 units/day

What is a Value Stream ?A Value Stream is all the actions, value creating and non-value creating, required to bring a product from order to delivery

Starts with raw materials

Finalizes at the end-customer

Involves several businesses

Value Stream MappingHelps you to see the sources of waste in the value streamShows the flow of information and materialForms the blueprint for lean implementation (Imagine trying to build a house without a blueprint).Helps you to see more than just the single process level Provides a common language for talking about manufacturing processesMakes decisions about the flow apparent, so they can be discussedTies together lean concepts and techniques, which helps to avoid cherry picking Improvement projects

Mike Rother Learning to See

What is Value Stream Analysis?Value stream maps describe a value streamValue stream analysis is a planning processUses value stream maps to communicateInformation FlowMaterial FlowThree value stream maps are createdCurrent stateIdeal stateFuture state (3 months from now)Action plans are developed for the future state map

The Value Stream Analysis ProcessPhase 1-Pre-event work

Phase 2-The Main Event

Phase 3-Accountability Process

Value Stream Analysis Process

Phase 1Pre-event Planning

Pre-Event WorkThree weeks prior to the eventDetermine team members Define the objective of the teamSelect the area and topicLogistics (conf. Rm., times, facilitator supplies, etc.)Invite team members to the eventClarify roles and responsibilitiesEvent leader-value stream manager from the area (owns resources and results)Event facilitator-CI Leaders who manage the improvement process and share in ownership of resultsSubject matter experts

Pre-Event WorkTwo weeks prior to the eventPart/quantity analysis (select representative part number)Gather and review data (Yield, job closures, CONC, etc.)Determine future demandReview prior event dataReview any customer issuesReview any requirements for capital equipment

One week prior to the eventVerify customer demandReview above data


Phase 2The Main Event

The Main EventTrainingGemba WalkValue Stream Map-Current StateDevelop Ideal State MapDevelop Future State Map (3 months out)Develop Future State PlanManagement Report Out

VSM Event Steps 1 &2Training and Gemba WalkTrainingThe concepts of Lean need to be applied to classroom training as well as our other processesThis is a learn by doing processWe will minimize classroom learningGemba WalkGemba means, shop floor or where the process isWe need to go there so we know what we are mapping

Value Stream Map-Current StateMap the physical flow (manufacturing loop, customer loop, supplier loop) Map the information flowComplete the lead time data barVisually identify wasteIdentify value added/non-value added (red, yellow, green dots)Visually identify the most significant opportunities with kaizen bursts.Summarize all information and metrics (date, P/N, times, inventory, OTD, quality, etc.)VSM Event Step 3Current State Map

Elements of Value Stream MapsInformationLead Time Data BarManufacturing LoopSupplier LoopCustomer Loop

Manufacturing Loop QuestionsWhat are the changeover times?What are the quantity of machines per process?Count all work in process (WIP)Look for evidence of quality problemsLook for processing wasteIs there great distances between processes?Is the product flexible or made to order?Is there obvious batch processing?

Who and where are your customers?What are the product lines or families?Future marketing plans? Review growth potential.What is the total yearly order requirement? Quantity by product family or product typeWhat is the high, low and mean ordering pattern? Monthly or quarterly high & low for several periodsHow often do we deliver to our customer?What takt time do we supply to?Customer Loop Questions

Where in the production chain do we trigger production?How much work do we release at one time?How long does it take to go from customer order to production order?How do we physically schedule production?How do we react to customer emergencies?

Production Control Questions

Supplier Loop Questions#1 question, how do you tell suppliers what to ship, make, etc.?When and how often do they get purchase orders from Customers?When and how do we change the purchase order?When and how often do suppliers ship product and how? Is it level? (Truck, train, etc.)Do we have standard pack quantities?Are suppliers aware of our inventory quantities?Are we sure of suppliers inventory? How?Do we have a supplier training program?

Information Flow QuestionsHow are the manufacturing and procurement orders distributed?Who gets themHow frequentlyWhat is the process of generating themHow are the shop order schedules generated and revised? Are there shortage meetings? What parts of the manufacturing loop are scheduled by MRP? Make sure to document the informal (hot lists) as well as formal (MRP) information channels.

Current State Lead Time Data BarCycle Time (CT)DOH Inventory8 Days4 Hrs4 DaysLeadTimeTotal12 Days4 HrsCT Total(1 Hr.)VA Time (yes/no)

Mapping Icons

As a team, review each process step for elements that are value added and non value added Each step can have any combination of value added, type 1 waste and/or type 2 wasteIdentify value added with a green dotIdentify type 1 waste (waste but unavoidable in the current state) with a yellow dotIdentify type 2 waste (pure waste, eliminate immediately) with a red dotAs type 2 waste is identified, generate the actions to remove it (this will be the beginning of the future state implementation plan)Prioritize the waste opportunities and identify the biggest opportunities on the CS map with kaizen burstsVisually Identify Waste

Avoid shared resourcesAssume that anything is possibleOur customers are happyOur profits are upHigh job satisfactionCapital is available if neededCreate an ideal state mapMap the physical flowMap the information flowComplete the lead time data barVSM Event Step 4 Ideal State Map

What of the ideal state map can be implemented in 3 months?Identify short term goalsLEAD TIMEINVENTORYPRODUCTIVITYQUALITYCAPACITYWork from your current state mapVSM Event Step 5 Future State Map (3 months out)

This plan answers the question, what actions need to be completed in the next 90 days to achieve the future state?Think back to the visually identify waste step Plan addresses all red dots and Kaizen burstsVSM Event Step 6 Future State Plan

Sheet1

Activ-ityGOAL/OPPORTUNITYACTIONPRIORITYLEADERDATESTATUS/REMARKS

OPENEST COMPACT COMP

1TestThe electrical station is located away from the test area.Re-locate electrical station closer to test area.Short TermTEAM1/5/051/10/051/7/05THE ELECTRICAL TEST STATION HAS BEEN RELOCATED NEAR THE TEST AREA

2AssyOnly three technicians are certified solderers.Train and certify more technicians to perform solderingShort TermJoe1/5/054/30/053/18/054 MORE TECHNICIANS HAVE BEEN TRAINED

3Plan'gDetails are being issued in the middle of the processReview kitting processLong TermJohn1/5/053/15/05Most of the detail parts are part of POU inventory. The leftovers will be looked at case by case.

This report out is how the team publicly commits to management What the goal of the event wasWhat was learnedWhat was accomplished during the eventWhat the outcome is. How much better will we be?Description of the future stateCommitment of the action plan

VSM Event Step 7 Management Report Out


Phase 3Accountability Process

The Accountability ProcessThe momentum for improvement is never higher then at the end of the event when everyone can really see the waste. As a result the accountability process must start immediately following the event (next day).Display the current state map, future state map and future state plan in the the affected area. Commit to a stand up meeting in front of the maps and plan (daily at first, and then less frequent as applicable) Focus on Due date control. Not meeting dates is letting the team down

Questions? Comments?

First were did Lean come from?F. Taylor championed time and motion studies for Henry Ford. Employees were trained to do simple and narrow tasks (and, many businesses still do today). While E. Whitney was perfecting the concept of standard parts for interchangeability during serviceHenry Ford combined these two systems to define predictable manufacturing for his era. These were times of mass markets, huge production runs, infrequent changes.Toyota learned from this and expanded upon it with the kanban system noticed during a visit to a U.S. grocery store to help them produce cars JIT because of the great cost of raw materials in Japan Then the U.S. took notice during the oil shock and the world took notice soon afterwardsWe usually analyze part of a total value stream. The part that we have most control over. But we must draw the entire picture the whole flow helps us account for all of the major cost and time elements. It show how material and information flows interact and sometimes conflict. And most importantly, keeps us focused on our primary objective, to satisfy the end customer.

Once we have the big picture of the whole value stream, we can focus on value as defined in the eyes of the customer,

Items flow through a value stream: In the manufacturing industryIn the service industry..In the admin. Such as in HRwe have internal customers, all of you are HR customers..

The point is there are many immediate customers that are part of a value stream, we create value through adding value to each item as it goes through the value stream.

Facilitator Notes:Takt time is the primary measurement tool in standardized work. Takt time is the German work for musical meter or rhythm.A value stream is all the activities that create value. All of the actions for a whole product family.

A value stream starts with raw materials and ends with end customer. It is a visual management picture of the complete process.

Most value streams involve several businesses. It includes suppliers and processes outside of this facility. The complete process. You need to think outside our walls.

*they are visual descriptions of a value stream. They are powerful because they give us a way of communication about what the current value stream is and what it will become in the future.

*Value stream analysis is a planning process that uses value stream maps. It has clear boundaries and is usually focused on a part of the value stream. Value stream maps are used to communicate either info. Or material flow.

*In a value stream analysis three value stream maps are created: Current state: what is the value stream today. Ideal state: Making the Current State better, map depicting the opportunities for improvement employing lean methodologies. Future State: 6-12 mos. What do we want the value steam to be.

From the future state we choose action plans for the next 3-6 months. We chose this action with ideal state in mind or what good looks like.

*Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying is an orderly, organized area which they create by buying the cabinet, some bins and some labels)

Read questions?

We summarize this definition of what the customer sees as value and attach it to our value stream map. Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying is an orderly, organized area which they create by buying the cabinet, some bins and some labels)

Read questions?


Read questions?


Read questions?

We summarize this definition of what the customer sees as value and attach it to our value stream map. Does your map look like this?Discuss.Note the bursts. Long cycle times and inventory amounts are highlighted. Cycle time can be reduced by using 6 Sigma to increase the number of quality parts out of a process. Also used to understand the process and the effects of speeding up the cycle time. High inventory often used to mask quality problems or a result of build up due to bottlenecks.Notes:

Heres the questions we need to know about our customers current state.Break into teams. For a 3 legged process, you may have 4 teams, 1 for each leg of the process and 1 for the supplier/customer loop.Notes:

Notes:

NotesThese are all the icons:

point out some of the key ones-the customer box-the push arrows-the computer tombstone indicating info is waiting to be processed-the information box

Now its time to get practical. The future state map describes what you really think youre going to accomplish in the next 6-12 months.

Again dont let this step take too long to createsome parts of the plan arent easy to see yet. Focus on the places that are easy to see and plan about. You learn by doing. Dont try to develop fancy plans.

As you develop the future map, focus on the low hanging fruit. Where is obvious impact to inventory?

Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying is an orderly, organized area which they create by buying the cabinet, some bins and some labels)

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We summarize this definition of what the customer sees as value and attach it to our value stream map.

Documents

618week10-Lean.ppt