Starting the Journey

Lean Means Eliminating Waste Ohno – Reduce customer order to cash

collection by removing non-value added wastes

One Time vs. Systematic Continuous

3 Keys to Complete Success Focus on understanding concepts (principles) Unwavering acceptance of all aspects of lean Implementation plans: systematic, cyclical,

continuous

7 Wastes Plus 11. Overproduction

2. Waiting

3. Transportation or conveyance

4. Over processing

5. Excess inventory

6. Unnecessary movement

7. Defects

8. Unused employee creativity

Building a Lasting Learning Organization

Develop skilled leadership at all levels

Standardized plans for reacting to issues

Methods to create and sustain process stability

Standardized work

Etc.

Value Stream Mapping Not just how, but why!!

Future State Map is the key Requires assistance from experienced lean

leader Not as simple as it looks

VSM is an ‘action’ plan

Move from ‘isolated point kaizen’ to ‘true system based flow’

Future State Objectives Flexibility

Short lead-time

Connected processes

Flow loops

Simplified information flow

Awareness of the customer requirement

Pacesetter

Transformation: Step by Step Stabilize

Create Flow Standardize

Level incrementally

Then connect processes and . . .

Stabilize Create Flow

Standardize Level incrementally

What’s Next? Creating Stability

Developing Flow

Standardize

Level Incrementally

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Value Stream Mapping

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Whenever there is a product for a customer, there is a

value stream. The challenge lies in seeing it

(from Learning to See)

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Outlook

Introduction to Value-Stream Mapping

The Current-State Map

Future lessons: What Makes a Value Stream Lean The Future-State Map Achieving the Future State Map

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Getting Started

What is Value-Stream Mapping?

Material and Information Flow

Selecting a Product Family

The Value-Stream Manager

Using the Mapping Tool

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What is Value-Stream Mapping

Value stream: Actions required to bring a product through the main flows essential to every product: Production flow from raw material to customer

delivery Design flow from concept to launch

Different levels of value-stream mapping

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Levels of Mapping

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Example: Value-Stream MapInformation Flow

Material Flow

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Why Value Stream Mapping?

Visualizes current flow

Shows waste

Communication tool

Provides basis for improvement

Shows linkage between information and material flow

Ultimate goal: Reduce lead time

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Who is Responsible?

VSM crosses organizational boundaries

Need one person with lead responsibility for product family’s value stream

High level executive (often plant manager) or value-stream manager

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Mapping Steps

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Summary – Getting Started

Select a product family

Have one person personally lead the mapping effort

Begin at the “door-to-door” level

Consider material and information flows

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Current-State Map

Material Flow Icons

General Icons

Information Flow Icons

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Material Flow Icons 1

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Material Flow Icons 2

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Information Flow Icons 1

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Information Flow Icons 2

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General Icons

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Mapping Tips

Always collect current-state information while walking along the actual pathways of material and information flows yourself

Begin with quick walk along the entire door-to-door value stream

Begin at shipping and work upstream

Bring your stopwatch and do not rely on standard times or information that you do not personally obtain

Map the whole value stream yourself

Always draw by hand in pencil

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Draw by Hand in Pencil

No delay

You can do it yourself

Focus on understanding flow

Keep eraser handy

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Steps in Drawing VSM

1. Customer

2. Processes, Data boxes and Inventory

3. Material Flow

4. Information Flow and Push Arrows

5. Timeline

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Current-State Mapping Example

ACME Stamping Stamped-steel steering brackets

Hold the steering column to the body of a car Two versions: Left-hand side and right-hand-side

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1. Mapping Customer Requirements

Customer: State Street Assembly

Two shifts

18,400 steering brackets per month 12,000 left-hand 6,400 right-hand

Palletized returnable tray packaging 20 brackets per tray Up to 10 trays per pallet Customer orders in multiples of trays

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2. Basic Production Processes

1. Processes

2. Data Boxes

3. Inventory

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2. 1. Processes ACME

Stamping

Spot-Welding Workstation 1

Spot-Welding Workstation 2

Assembly Workstation 1

Assembly Workstation 2

Shipping

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2. 2. Data Boxes

Mapping Tip: Typical Process Data C/T = cycle time C/O = changeover time Uptime EPEx = Production batch sizes (Every part every

…) Number of operators Number of product variations Pack size Working time (time available in seconds) Scrap rate

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2. 2. Data Boxes ACME

Assembly #2 C/T = 40 seconds C/O = 0 Uptime = 100% Shifts = 2 Seconds available = 27,600

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2. 3. Inventory ACME

Stamping 5 coils before stamping 4,600 LH 2,400 RH

Spot-Welding Workstation 1 1,100 LH 600 RH

Spot-Welding Workstation 2

Assembly Workstation 1

Assembly Workstation 2

Shipping

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3. Mapping Material

Steel supplier Weekly orders Shipments by truck twice weekly

(Tuesday/Thursday) Pack size = 500 foot rolls of coiled steel

Customer One daily shipment by truck

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4. Mapping the Information Flow

Right to left, top half of the map space

ACME: MRP system to schedule shop floor

“Go see” scheduling

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5. Draw Time Ladder

Upper line = production lead time Calculation inventory lead time =

inventory quantity/daily customer requirements

Lower line = processing time

Summarizes current conditions of value-stream

Which time is value adding?

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Problems

Production lead time > Processing time Financial Quality Flexibility

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In-class exercise

Divide into teams from simulation exercise

Develop current-state map for simulation

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Individual Homework 1 5%

Draw Current-State map for TWI Industries

Due Monday