Lean Transformation With VSM

8/14/2019 Lean Transformation With VSM

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Lean Transformation

Lean / Value Stream

Mapping Overview


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Agenda

Lean Principles

Company Vision

What is Value Stream Mapping

Seven requirements of Lean

Building Lean Organization


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Roots of Lean Thinking

Interchangeable parts: 1850s

Toyoda Weaving: 1902

Ford: Highland Park: 1913

GM: Mixed Model: 1930-1940

Deming Influence: 1950s

Ohno: American Supermarkets: 1950s

Toyota Production System: 1945-1970-now

Theory of Constraints: 1980s Lean


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Womack and Jones

Lean Thinking 5 principles:

1- Specify value

2- Map the flow of value3- Make value flow

4- Pull from the customer

5- Seek perfection

Jim Womack and Dan Jones,

Lean Enterprise Institute, USA & England


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Vision

Supply Chain Vision(13 weeks)

Customer

Order Raw MaterialAssembly

& Test

Procurement

Cycle

Order

Cycle

Current Supply Chain

(average in excess of 40 weeks)

Delivery

Cycle

Assembly

Cycle

ShippingManufacturing

FINLA

FAB


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Vision

Material Flow Strategy

Engine Core Build

A Supply Chain delivering an

engine every shift


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Point Efficiency vs System Efficiency

Fast rower

How fast should we produce?


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The Transformation

Its all about

Connecting

the Dots


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What is a Value Stream?

All activities both value added and non-value added required to bring product

from raw material to the customerValue Stream

Customer

Producer

A

CUSTOMER

Raw

Material

Finished

Product

Producer

B

Producer

CWarehouse

Assembly &

Text


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Example of a Current State Map

CustomerRaw MaterialSupplier ProductionControl

90/60/30

day forecasts

Daily

Order

6 Week

ForecastWeekly Fax

Producer A

1

I

2500 parts

I

1800 partsI

Shipping

1500 parts

Weekly Schedule DailySchedule

30 days 35 days 5 days

5 hours 10 hours 20 hours

Leadtime

= 270 days

Processing

time = 35 hrs.

Producer B

1

Assembly

1

I

2500 parts

200 days

C/T = 46 sec.C/O = 10 min.

Uptime = 80%

C/T = 46 sec.C/O = 10 min.

Uptime = 80%

C/T = 46 sec.C/O = 10 min.

Uptime = 80%


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Set-upTotal Work


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Value Stream Mapping Advantages

Measures value from a customers perspective

Focus is on lead time

Shows a system view

Links the material and information flows Enables the organization to identify waste

Provides a roadmap for continuous improvement & change


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Seven Requirements of Lean

1- Takt time

2- Finished goods strategy

3- Continuous flow

4- Pull System

5- Schedule only one point

6- Pitch

7- Interval

(EPEI=Every Part Every Interval)


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Requirement #1: Takt Time

Synchronizes the pace of production to the

pace of sales

The rate of assembly based on customer

demand

TAKT Time =Effective working time per shift

Customer demand per shift

460 minutes460 pieces

= 1 min / partTAKT Time =


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Requirement #2: Finished Goods Strategy

Build to Stock

Best for mass production

Standard product

Build to Order

More difficult to level load Custom product

High value product coupled with uncertain demand

Hybrid

Aids level loading

Run as a Build to Order system with inventory for peak loads

High value or highly variable demand patterns


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Requirement #3: Continuous Flow

Process

BProcess

AProcess

C

10 minutes

10 minutes

Batch & Queue Processing

Leadtime : 30+ minutes for total order

10 minutes

ProcessA

ProcessB

ProcessC

One-Piece Flow

3 min.

Leadtime : 12 min.


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Customer goes to supermarket and gets what they need when they need itSupplier produces to replenish what was withdrawn

supermarket

supplying

process

customer

process

production

kanban

withdraw

kanban

withdrawn

product

new

product

Purpose: A way to control production

between flows without scheduling

Requirement #4: Pull System


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Requirement #5: Schedule Only One Point -

What & When

flow

Customer

Supermarket

Flow

Customer

FIFO FIFO

Pull


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Requirement #6: Pitch

Management timeframe: how often we find out andcan react to problems

It is a takt image for the operators

Start

In

FIFO

KANBAN

Out

FinishStrategy


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Requirement #7: Interval

(EPEI = Every Part Every Interval)

How long does it take to

make parts of every

model?

H A

B

C

DE

F

G


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Future State - What to expect

Drumbeat Set the pace

Pitch Monitor flow of material

Reduce process inefficiencies

Flow / Pull / Kanban Reduce inventory levels


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Building the Lean Organization

Every one of us must realize that:

the company is in business because of our customers

the customers have choices those choices lay with our competition

waste adds cost, time, and service interruption thus giving the

advantage to the competition


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Supporting the Lean Organization

At every level

Understand what is important to the customer

See the flow of value

Recognize waste

Solve problems that interrupt the flow of value

Continuously improve the flow of value

Conti nuously reduce variation to enable the achievement of lean

metrics


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VSM Project Milestone - TypicalWeek 1 Week 2 Week 4 Week 5 Week 6

(4 - 9 months)

Management

awarenessTeam

Training &

Workshop

Identify

VSM Expert &

Project Leader

Team members& commitment

Present action

plan to Mgmt

Implement action

plan & monitor

progress


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Driving

Customer Satisfaction

Quality Improvement

Inventory Reduction

Leadtime Reduction

Process Improvement

A Drumbeat Throughout

the Value Chain

Documents

Lean Transformation With VSM