Session-8D Lean Metrics & Future State VSM.pdf

7/23/2019 Session-8D Lean Metrics & Future State VSM.pdf

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Lean Metr cs & Future State VSM

Session 15

M.S Ramaiah School of Advanced Studies - Bangalore 1


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Session Objectives

Fundamentals of Lean Metrics.



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The metrics that best suit your organization depend a great deal on

. ,

step1 of the Value Stream Management process, will guide you indetermining the appropriate metrics. Here are some basic metrics

that most companies will find useful:

Inventory turns.

Days of inventory on-hand.

Defective parts per million (DPPM) or sigma level.

Total value stream WIP.



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Lean Metrics: The Fundamentals

Total c cle time or total value addin time VAT .

Total lead-time.

.

On time delivery. Overall equipment effectiveness.

First-time-through capability.

Health and safety record (including OSHA record able and

reportable incidents).



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Premiere Manufacturin Case Stud Ste 5


After reviewing the list of common metrics and customers

requirements, Premieres core implementation team drafts a list

of the metrics that will work best for tracking progress toward the

targets. The team reviews the metrics with management and gains

- -.

determined during current-state mapping.



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Lean Metrics: The FundamentalsMetric Baseline

Total value stream WIP inventory 17,040 units

Total product cycle time 170 seconds

Total value stream lead time 34 days

Defective PPM external 45

Uptime 84 percent

Figure- 5.3 Metrics and baseline measurements.



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Discussion Topics to Help Identify Wastes

Before proceeding to the next step mapping the future state it isimportant to identify as much as you can in the value stream. As

you examine the current state map from the case study, and your

own current state map, look for obvious forms of waste. Take this

o ortunit to review what ou have learned so far with our own

core implementation team, keeping track of questions as they arise.

Here are some observations and questions from the case study to get

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1. The total value stream c cle time or the value addin

time is 170 seconds. Yet the lead-time through the valuestream is 34 days! Why?

2. There is 10 days of inventory between the machining and

deburring operations. Why?

3. How might you gain extra capacity without additional

capital investment?



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4. In traditional manufacturing environments there is often a

reluctance to perform changeovers. What impact does this have

on levels of WIP inventory?

5. In the Premiere Manufacturing case study, production

schedules are being delivered daily to each process. Processes are

inde endentl makin roduct, whether the downstream rocessrequires it or not. Why are there so many production schedules?

6. What if the machining cycle time were equal to the takt time.

Why would this be problematic?



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-. , ,

and production control icons, and the communications arrowsbetween them, in the same positions as you did on the current-state

map:

Draw the customer icon in the upper right corner. Draw the supplier icon in the upper left corner.

Draw the production control icon between the customer and

supplier icons



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Draw the communications arrows running from the customericon to the production control icon and from the production

.

Label the arrows to show order and forecast frequencies

production control and the supplier. Be sure to make any

adjustments to reflect changes in forecast or ordering

requenc es you may ave nego a e s nce you comp e e ecurrent-state map.



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ean e r cs: e un amen a s



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2. Now add the shipping information:

Draw the shipping icon in the appropriate place.

Draw a truck between the shipping icon and the customer icon, with

a e very arrow runn ng rom s pp ng o e cus omer. n er e

frequency with which products are shipped to the customer inside the

truck icon.

Draw a truck icon between the supplier icon and the icon

representing the most upstream operation, with a delivery arrow

running from the supplier to the operation. Enter the frequency withwhich the supplier ships raw materials inside the truck icon.


e ow e cus omer con, en er e cus omer requ remen s

(quantities).


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Steps to Designing a Future State that Includes Customer

Demand Elements

The steps shown below outline the process for designing the

u ure-s a e p an o mee cus omer eman .

1. Determine takt time and pitch.

2. Determine whether you can meet demand using current

production methods.

3. Determine whether you need buffer and safety inventories.

4. Determine whether you need a finished-goods supermarket.


5. Determine which improvement methods you will use.


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Obstacle Solution

Fluctuations in customer demand Buffer inventory

Internal problems throughout the process Safety inventory

na y o sus a n a con nuous ow

from the

Most downstream operation to the

customer

n s e -goo

supermarket



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Premiere Manufacturing Case Study- Step 6, Demand Stage:

Determine which improvement methods to use

The team decides that the following improvement methods will help make it

1. 5S system: Improving flow and eliminating obvious wastes byimplementing the 5S system will pave the way for additional

improvements.

2. Quick changeover: The 60-minute changeover at machining presents a.

changeover (QCO) methods will help make the process faster and flexible

enough to satisfy demand.

3. Autonomous maintenance: After the 5S system is implemented at eachlocation autonomous maintenance will be introduced at machining to

eliminate the small e ui ment roblems that hurt overall rocess


reliability.

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Based on its discussions with operators, the team believes it can achieve

Improving programming and tooling maintenance to eliminate the need for

deburrin - one o erator re uired.

Distributing the work of the three remaining operations between two operators.

Reducing change over time in machining to 15min.

Achievin chan eover time of less than one minute incrimping/testing/marking.

The team decides that the value stream should operate with three

operators. A t oug t e personne requ rement was ca cu ate as 2.7operators at a total cycle time of 150 seconds, there is simply too much

for ust two o erators. The o erator balance chart for the future state is


shown in Fig 6-2.

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Premiere Manufacturing Case Study Step 6, Flow Stage:

ontro ng pstream ro uct on

Team members are confident that reconfiguring the old line into a

process w wo ce s s a goo way o sus a n ow. ey e eve

that pulling this off will require in-process supermarkets prior to

machining and between machining and crimping/testing/marking. Akanban system will also be critical to sustaining flow. The team

decides to defer mapping this until it focuses on leveling production,

when it will have a better handle on how material will actuall flow

through the value stream to meet customer demand.

In the meantime, the team draws two in-process super markets on


the future state map in the positions mentioned above.

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Premiere Manufacturing Case Study Step 6, Flow Stage:

Determinin Which Im rovement Methods to use.

The team has already identified some improvements necessary forachieving targets. Now it reconsiders its list of improvement

methods and draws icons at the appropriate places on the future-

state map. Here is the list of the improvement methods the team

flow;

1. 5S, TPM, autonomous maintenance, and CO at machinin .

2. Standardized work at the crimping/testing/marking cell.


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3. QCO at the crimping /testing/marking cell.

4. 5S at the crimping/testing/marking cell (to address problemswith new layout) and at shipping.

By identifying TPM as an improvement method, the core

implementation team in the Premiere Manufacturing case

s u y s no ca ng or a rue, p an w e n a ve, u

an isolated application of TPM methods.


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The team decides that the value stream requires the following types of

kanbans in the following locations:

1. Withdrawal kanbans that will tell the runner how many units should bepulled from the finished-goods supermarket and staged in shipping.

2. Production kanbans that tell operators in the crimping/testing/marking

cell how many units must be produced to replenish those pulled from the

- .

3. Signal kanbans at the in-process supermarket between machining and the

crim in /testin /markin cell that tell the machinin o erator how man

units have been pulled from the supermarket.

4. Signal kanbans just upstream of machining that tell the supplier how


many un ts ave een pu e rom raw mater a nventory.

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The team decides that machining will produce in batches of 96 to 192

units. The batch size, a multiple of the 24-unit pack-out quantity, will

depend on the number of signal kanbans that have accumulated after the

machining and the crimping/testing/marking cell.

e eam ec es o wa o raw e cons represen ng e an ans.

will add the signal kanban icons when it maps material and information

flow in machining. It will add the withdrawal kanban and production

kanban icons when it maps the runners route.


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Heijunka or Paced Withdrawal?

e team ec es to mp ement e un a or t e o ow ng reasons:

1. A heijunka box, a device used to implement a heijunka system,

prov es a great means o v sua y contro ng w t rawa an ans.

2. The team talks about the likelihood of creating one value streamto produce #4, #6, #8, and #10 hoses, because the processes are so

similar. Given this likelihood, the team reasons that it would be wise

such a big change when the value stream begins to produce fourhoses instead of two.


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The team draws a hei unka box icon below the roduction control icon

with a manual communication arrow running from production control

to the heijunka box. The entire pull system begins here. Since the ratio

,

will place kanban cards in the heijunka box in such a way that premieremakes two lots of #4 hoses for every lot of #6 hoses that it

produces(figure 6-3).


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Premiere Manufacturing Case Study- Step 6, leveling Stage:

eterm ne t e route o t e runner, map mater a an n ormat on ow,

and improvement methods.

unner s rou e, s ep

Now the team begins to draw the runners route:

. s c gure rawn enea e e un a ox con represen s e runner.

2. A team member draws a withdrawal kanban icon half way between the

icon re resentin the runner and the icon re resentin the finished oods

supermarket. A dashed arrow running from the runner icon to thesupermarket icon is added. The arrow bisects the withdrawal kanban


.

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,

1. Team draws a dashed arrow from finished goods supermarketicon to the shi in icon to re resent the next le of the

runners route.

2. Just beneath the dashed arrow, the team draws a supermarketparts icon and a physical material pull icon to show that the

runner pulls parts from the supermarket to the stage of

.


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Runners route, step 3

The team draws a production kanban icon just above and slightly to the right

of the icon representing the crimping/testing/marking cell.

e eam raws a as e arrow runn ng rom e s pp ng con o e

crimping/testing/marking cell icon. The arrow bisects the production kanbanicon.

unner s route, step

The team draws a dashed arrow from the crimping/testing/marking icon to the

finished goods supermarket icon. This is all that is required to show that therunner transfers finished goods from crimping/testing/marking cell to

supermarket.

Runners route, step 5

After the runner transfers finished goods to the finished goods supermarket, hereturns to the heijunka box to retrieve the withdrawal kanban from the next slot.

The team draws a dashed arrow from the finished goods supermarket icon to


the heijunka box icon to document this last leg of the runners route.

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You may wonder where the runner gets the production kanbans.

Production kanbans are attached to containers of finished goods. When a

runner pulls a container of finished goods from a supermarket to stage,

container. The production kanban is then used to initiate replenishment

of the inventory that has just been pulled.


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Mapping material and information flow in machining:

.

pulling required parts from the supermarket between the cell and machining.

This is shown on the map by drawing a supermarket parts icon and a manual

crimping/marking/testing cell icon.

.

the in-process supermarket, the operator will also pull a signal kanban from

the container and place it in a special holder on the side of the supermarket

ow rac . e mac n ng opera or w re r eve s gna an ans w en e or s e

delivers the parts to the supermarket flow rack. To illustrate this part of the

plan the team draws a manual communication arrow and a signal kanban icon


rom supermar e con o mac n ng con.

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Note: Even though machining is not overproducing parts, a material

pus arrow s st rawn etween t e operat on an t e n-process

supermarket just down-stream. This indicates that the productionschedule in machinin is not based strictl on what the

crimping/marking/testing cell has just pulled from the in-process

supermarket.


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3. The machining operator will be responsible for pulling containers

from the raw materials supermarket just upstream. To illustrate this

plan, the team draws a manual material pull icon and a supermarket

parts icon between the supermarket icon and the machining icon.

4. The machining operator will also be responsible for pulling the

signal kanbans from raw material containers and placing the signal

.

responsible for collecting the signal kanbans and taking them back to

the suppliers plant. To illustrate this part of the plan, the team draws

a kanban post icon between the supermarket icon and the suppliertruck icon. A manual communication arrow and a signal kanban icon

are drawn runnin from the kanban ost icon to the su lier icon.


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Documents

Session-8D Lean Metrics & Future State VSM.pdf