Seven Steps to Creating a VSM JAN2014

Seven Steps to Creating a Value Stream Map (VSM)

Process Steps & Case Study

Revision: New

Date: Jan. 2014

Content:

Purpose

Process Steps

Case Study

Purpose:

This presentation identifies the steps needed to create a Value Stream Map VSM.

An example is provided using a case study that allows the user to witness the development of a VSM.

Process Step Approach

2. Draw Process Steps

3. Enter Process Data

4. Enter Inventory Count

5. Draw Material Flow : Supplier to Manufacturer, Manufacturer to Customer

6. Draw Information Flow and internal material flow

7. Calculate Lead Time, processing time & max value add %

1. Identify Customer Requirements

Step 1 : Identify Customer Requirements Customer Demand

Number of Shifts

Pack Size

Step 2 : Draw Process Steps For ease, combine parallel process steps

Step 3 : Enter Process Data Cycle Time

Changeover Time

Uptime

Amount of Operators

Seven Steps to Creating a VSM


Step 4 : Enter Inventory Count Enter inventory count between each process step

Don't forget inventory at the beginning before 1st process step

Step 5 : Draw Material Flow From supplier

To customer

Step 6 : Draw information & internal material flow From Aircraft Assembly Plant to supplier

From production planning to process steps


Step 7 : Calculate lead time, processing time & maximum value add %

Processing Time Sum of all cycle times

Lead Time Processing time + sum of all inventory times

Inventory time = inventory quantity/daily customer demand

For example, if the customer requires 20 items per day and there are 40 items in inventory. There is 2 days inventory time (waiting time)

Convert inventory time from days to minutes (include breaks, but not uptime or changeover time)

Maximum Value Add %

Max. Value add % = (processing time/lead time) x 100


Introduction The Joe Bloggs Stamping Company produces several components for Aircraft Part

Assembly Plants

This case concerns one product family ; a Titanium Bracket Sub-Assembly in two types A1 and A2

These components are sent to Assembly Plant

Customer Requirements 320 pieces per month

200 per month Type A1

120 per month Type A2

Customer Plant operates 2 shifts

Palletised returnable tray packaging with 1 bracket per tray and up to 10 trays per pallet. The Customer orders in multiples of trays

Ships once daily to the Assembly Plant by road

Case Study: Joe Bloggs Stamping Company


Work Time 20 days in a month

2 shift operation in all production departments

8 hours every shift, with overtime if necessary

Two 10 minute planned breaks during each shift

Manual processes stop during breaks

Unpaid lunch, all processes continue

Production Processes Joe Bloggs process for this product family involves stamping a metal part followed by

welding and subsequent assembly. The components are then stored and driven to the AssyPlant on a daily basis.

Switching between Type A1 and A2 brackets requires a 1 hour changeover in stamping and a 10 minute fixture change in the welding processes.

Coils (500m) are supplied by Coils R Us

Deliveries are made to Joe Bloggs on Tuesdays and Thursdays by truck.




Joe Bloggs Production Control Department Receives Assy Plants 90/60/30 day forecasts and enter them into MRP via

Electronic Data Interchange (EDI)

Issues Joe Bloggs 6 week forecast to Coils R Us via EDI

Secures coil steel by weekly faxed order release to Coils R Us

Receives daily firm order from Assy Plant via EDI

Generates MRP (manufacturing resource planning) based weekly departmental requirements based on customer order, Work in Process (WIP) inventory levels, Finished Goods (F/G) inventory levels, anticipated scrap and downtime.

Issues requirements to Coils R Us for 500m coils

Issues weekly build schedules to Stamping, Welding and Assembly processes

Issues daily shipping schedule to Shipping Department



All production processes occur in the following order, each piece goes through all process

1. Stamping(The press makes parts for many products)

1 Operator to run press

Automated 10 ton press with coil (automated material feed)

Cycle Time : 1 minute (60 pieces an hour)

Changeover Time : 1 Hour (good piece to good piece)

Machine Reliability : 85%

Observed Inventory

4000m of coils before stamping (enough to make 80 brackets)

150 pieces of Type A1 finished stampings

24 pieces of Type A2 finished stampings



2. Spotweld Workstation 1(dedicated to this product family)

Manual process with 1 operator Cycle Time : 39 minutes

Changeover Time : 10 minutes (fixture change)

Reliability : 100%

Observed Inventory

36 pieces of Type A1 & 6 pieces of Type A2 after process

3. Spotweld Workstation 2(dedicated to this product family)

Manual process with 1 operator

Cycle Time : 46 minutes

Changeover Time : 10 minutes (fixture change)

Reliability : 80%

Observed Inventory

6 pieces of Type A1 before Spotweld 2

16 pieces of Type A1 & 18 pieces of Type A2 after Spotweld



4. Assembly Workstation 1(dedicated to this product family) Manual process with 1 operator Cycle Time : 62 minutes Changeover Time : none Reliability : 100% Observed Inventory after process step

42 pieces of Type A1 & 6 pieces of Type A2

5. Assembly Workstation 2(dedicated to this product family) Manual process with 1 operator Cycle Time : 40 minutes Changeover Time : none Reliability : 100% Observed finished goods inventory in warehouse

27 pieces of Type A1 & 14 pieces of Type A2

6. Shipping DepartmentRemove parts from finished goods warehouse and prepares them for shipment to the customer


Mon.

+ Wed.

FIFO

Assembly

XYZ

Corporation

C/T = 45 sec

C/O = 30 min

3 Shifts

2% Scrap

Manufacturing

Process

Outside

Sources

Data BoxI

300 pieces

1 day

Inventory

Truck

Shipment

PUSH

Arrow

Finished Goods

to Customer

First-In-First-Out

Sequence Flow

Supermarket

Withdrawal

Material Flow Icons


Weekly

ScheduleOXOX

Manual

Information Flow

Electronic

Information Flow

Schedule Load Levelling

Withdrawl

Kanban

Production

Kanban

Signal Kanban

Kanban Post

Sequenced-Pull Ball

Go See Scheduling

Kanban Arriving

in Batches

Information Flow Icons


Improvement Lightening

Burst

Buffer or Safety Stock

Operator

General Icons


C/T = 1 Min

C/O = 1 Hour

Uptime = 85%

1 x

10T

Stamping

C/T = 39 Min

C/O = 10 Min

Uptime = 100%

1 x

Spot Weld 1

C/T = 46 Min

C/O = 10 Min

Uptime = 80%

1 x

Spot Weld 2

C/T = 62 Min

C/O = 0

Uptime = 100%

1 x

Assembly 1

C/T = 40 Mins

C/O = 0

Uptime = 100%

1 x

Assembly 2 Shipping

320 Pieces/Month

200 A1

120 A2

2 Shifts

Pack Size 1

Aircraft Assembly

Plant

I

27A1

14A2

I

42A1

6A2

I

16A1

18A2

I

42A1

6A2

I

150 A1

24A2

I

80

Identify Customer Requirements, Draw Process Steps, Enter Process Data and Enter Inventory Count

Case Study: Steps 1-4


C/T = 1 Min

C/O = 1 Hour

Uptime = 85%

1 x

10T

Stamping

C/T = 39 Min

C/O = 10 Min

Uptime = 100%

1 x

Spot Weld 1

C/T = 46 Min

C/O = 10 Min

Uptime = 80%

1 x

Spot Weld 2

C/T = 62 Min

C/O = 0

Uptime = 100%

1 x

Assembly 1

C/T = 40 Mins

C/O = 0

Uptime = 100%

1 x

Assembly 2 Shipping

320 Pieces/Month

200 A1

120 A2

2 Shifts

Pack Size 1

Aircraft Assembly

Plant

I

27A1

14A2

I

42A1

6A2

I

16A1

18A2

I

42A1

6A2

I

150 A1

24A2

I

80

1 x Daily

Tues &

Thurs

Coils R Us

500M Coils

Draw Material Flow : Supplier to Manufacturer and Manufacturer to Customer

Case Study: Step 5


C/T = 1 Min

C/O = 1 Hour

Uptime = 85%

1 x

10T

Stamping

C/T = 39 Min

C/O = 10 Min

Uptime = 100%

1 x

Spot Weld 1

C/T = 46 Min

C/O = 10 Min

Uptime = 80%

1 x

Spot Weld 2

C/T = 62 Min

C/O = 0

Uptime = 100%

1 x

Assembly 1

C/T = 40 Mins

C/O = 0

Uptime = 100%

1 x

Assembly 2 Shipping

320 Pieces/Month

200 A1

120 A2

2 Shifts

Pack Size 1

Aircraft Assembly

Plant

I

27A1

14A2

I

42A1

6A2

I

16A1

18A2

I

42A1

6A2

I

150 A1

24A2

I

80

1 x Daily

Tues &

Thurs

Coils R Us

500M Coils

MRP

Production Planning

Daily Expedite

6 Week Forecast

Weekly Fax

30/60/90 Day F/C

Weekly Plan

Daily

Shipping

Plan

Draw Information Flow and Internal Material Flow

Case Study: Step 6


C/T = 1 Min

C/O = 1 Hour

Uptime = 85%

1 x

10T

Stamping

C/T = 39 Min

C/O = 10 Min

Uptime = 100%

1 x

Spot Weld 1

C/T = 46 Min

C/O = 10 Min

Uptime = 80%

1 x

Spot Weld 2

C/T = 62 Min

C/O = 0

Uptime = 100%

1 x

Assembly 1

C/T = 40 Mins

C/O = 0

Uptime = 100%

1 x

Assembly 2 Shipping

320 Pieces/Month

200 A1

120 A2

2 Shifts

Pack Size 1

Aircraft Assembly

Plant

I

27A1

14A2

I

42A1

6A2

I

16A1

18A2

I

42A1

6A2

I

150 A1

24A2

I

80

1 x Daily

Tues &

Thurs

Coils R Us

500M Coils

MRP

Production Planning

Daily Expedite

6 Week Forecast

Weekly Fax

30/60/90 Day F/C

Weekly Plan

Daily

Shipping

Plan

4600

Mins

1 Min

2392

Mins

2760

Mins

1932

Mins

2760

Mins

10,028

Mins

40 Mins62 Mins46 Mins39 Mins Processing Time =

188 Mins

Production Lead

Time = 26.8 Days

Case Study: Step 7

Calculate Lead Time and Processing Time


1 Working Day8 Hours x 2 Shifts

8 x 60 x 2 = 960 Minutes

960 Minutes Breaks

960 40 = 920 Minutes

Convert Lead Time to MinutesLead Time = 26.8 Days

26.8 x 920 = 24,660 Minutes

Calculate Max. VA %Max VA% = (processing time / lead time) x 100

= (188 / 24660) x 100

= 0.76%

Therefore the Max VA% indicates that the item has only been worked on for 0.76% of the time it has been within the value stream (touch time)

The 0.76% is not all value add time because some of the cycle time within the process steps could be waste

This is why it is called Maximum Value Add %, because even with a perfect process (with no waste) the Max VA % could only ever be 0.76%

Case Study: Step 7 Max Value Add %

Documents

Seven Steps to Creating a VSM JAN2014