VSM Smart Manufacturing

8/10/2019 VSM Smart Manufacturing

1/40

CMO/DS/IM/Richard Lindroos COMPANY CONFIDENTIAL

VALUE STREAMMAPPING

Smart Way Training Material

Version 1.5


2/40


Value Stream and Value StreamMapping

A Value Streamis all the value adding (VA) and non-valueadding (NVA) activities currently required to bring aproduct through the main production flows essential to theproduct

Value Stream Mapping (VSM) is about drawing thesestreams on a big board to get an overview of the bigpicture

VAactivities are those activities that the customer is ready to pay for NVAactivities examples include transportation, waiting, buffering etc

of the product or its parts


3/40


7-Wastes

Overproduction Inventories

Motion

Waiting Defects

Over Processing

Transportation


4/40


Purpose & Benefits

The purpose of Value Stream Mapping is to highlightsources of waste and eliminate them by implementation ofan idealfuture state value stream that should be strivedtowards

Benefits: Reduction of complexity & lead time of material flow Better targeted information flow Visible and focused improvement opportunities Widely usable overall picture, shows how material is

really flowing through the whole factory


5/40


Two Approaches to reducing lead time

Percent of Lead Time

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

VA

NVA

NVA

NVA

VA

VA

1. Making value adding processes twice asfast

2. Reducing half of the non-value-addingprocesses

VA = Value adding NVA = Non-value adding


6/40


Example of a Value Stream Map


7/40


Value Stream Mapping Cycle

Current statemap

Remove waste Future state map

Implementationplan


8/40


Basics before Mapping starts


9/40


Where to start

The first mapping is at a micro (factory door-to-door) level

Once the overall factory flow is known it is easier to map atmacro (DSN) level

POSComponents Manufacturing Channel

Partner

Consumer

DemandSupply

Macro levelMicro level


10/40


Material flow icons

Manufacturing

Process

Outside

Sources

Data Box Inventory

Truck

Shipment

PUSH

Arrow

Finished Goods

to ConsumerFirst-In-First-Out

Sequence Flow

SupermarketWithdrawal

(Pull)

Max. 20 pieces

Cycle time Secs20

Changeover Hrs4

MFR %0,87

Mon.+ Wed. FIFO

Name

UnitValue

Name

UnitValue

Name

UnitValueMaterial FlowMilk Run

Transport

SMT TOPDND SUPPLIER ENGINEBUFFER

S1E


11/40


Information Flow Icons

Manual

Information Flow

Electronic

Information FlowSchedule Load Leveling

Withdrawal

Kanban

Production

Kanban

Signal Kanban Kanban Post

Kanban Arriving

in BatchesSequenced-Pull Ball Go-See

Scheduling

OXOXDailyschedule


12/40


General Icons

Improvement Needs

- Ideas

Buffer or SafetyStock

Operator

Crossdocking Plane Shipment Warehouse

DSN Icons

Name

UnitValue

Name

UnitValue

Name

UnitValue

CHANGEOVER

Cross-Dock

IHUB


13/40


Current State Mapping


14/40


Step 1Decide scope of mapping

Guidelines:

Starting point:Production order release

End point: Materials loaded on trailer


15/40


Step 2Indicating customer on map

The customer is drawn with a green factory box in theupper right corner of the map

When we map a whole product family it is wise to notdistinct between any certain customer, but look at allorders for that product during a time period

Some metrics that can be used to describe the customerare:

Daily demand Nr of PO:s (during a time period) Average order size

Customers

Avg order size Pcs220

Daily demand Pcs14 000

Daily nr ofprod. orders

Pcs65


16/40


Step 3Drawing ProductionProcesses

Process boxes are drawn horizontally from left to right onthe bottom of the map according to their order in thematerial flow

The process boxes are drawn in blue colour, with a nameindicating what the process is

There are no strict rules on what to indicate as a separateproduction process, but some guidelines are given in thefollowing pages

Note: this example map is simplified

PROCESS 1 ASSEMBLY SHIPPINGPROCESS 2

Flow of material


17/40



Guideline 1:

If the material can flow physically through a process entitysuch as the ATO cell, then this is shown as one separateprocess box

ATO cell


18/40



Guideline 2 continued: Choosing split btw processes

Instead, the process boxes should be shown as separateprocess boxes as shown beneath

Whole engine line

SMT TOP SMT BOT

SMT TOP Material Stock

xx kB_1

SMT BOT Material Stock

xx kB_2

HaFA

HaFA Material Stock

xx kB_F


19/40


Step 4Drawing Supplying Sources

The iHub is drawn as a yellow warehouse in the upper leftcornerco-located and off-located iHubs are drawn withthe same symbol

Supplying sources, such as the CEMs, DND supplier,subcontractors are drawn with the same symbol as thecustomera green factory

IHUB

SUBCONTRACTOR

DND SUPPLIER

CEM/OTHER SITE

ENGINE SUPPLIER


20/40


Step 5Drawing Inventories/buffers

Inventory triangles are drawn in between the processboxes to indicate the location of a physical inventory in thematerial flow

The inventory triangles are drawn in yellow colour

Beneath the triangle an open box is drawn with adescribing name of the inventory as well as the storagelocation (e.g. S1C or 205)

Later on, the value of the material in the inventory can alsobe recorded in the inventory box

Engine buffer

xx k(101)

I indicating Inventory

Describing name for inventory

Value of material in inventorySystem name for inventory


21/40


Step 5Drawing Inventories/buffers

Guideline 1: What inventories should be drawn?

Draw an inventory triangle for each location of inventorybetween processes

If there are two inventories between processesdrawtriangles for both

Note: it might be wise to leave out some inventories that are forvery low-valued materials, such as plastic bags or carton

Note: in the pilots, the inventories for re-work has also been leftunmapped as their influence on the material flow is quitemarginal

S 6 I b d & O b d


22/40


Step 6Inbound & Outboundshipment

Shipment types and frequencies for both outbound andinbound shipments are mapped with arrows

The form of transportation can be indicated by a symbol

Customer X

Nr of variants pcs2

Volume pcs10 000

Blue pcs4000

Red pcs6000

SMT TOP SMT BOT ASSEMBLY SHIPPING

C/T Secs15

C/O Hrs4

Uptime %86

MFR %0,5

Staff2

C/T Secs30

C/O Hrs2

Uptime %75

MFR %0,9

Staff6

C/T Secs20

C/O Mins16

Uptime %72

MFR %1,2

Staff5

Duration Hrs4

Delivery freq Mins25

Pallet size pcs460

Staff6

iHub

3 x daily 3 x daily

12 x daily

weekly

Av. Size Min

Dur at io n H rs18

Del. Fr eq . Sh1

Engine Buffer

Pcsmax. 6600

2 x/shift

St 6 P D t B


23/40


Step 6Process Data BoxInformation

In the data boxes beneath the production process boxesthe following information are good to measure:

Total cycle time of process Manual cycle times Automatic cycle times

Real output of process (e.g.per shift)

Non value added time in process (Throughput time ofprocess - total cycle time) Changeover time OEE (if available) SMT BOT

Throughputtime

SecsValue

Output (qty/

shift) mean Pcs2400

Capacity (qty/shift theoret.)

Pcs2756

Normal cycletime

UnitValue

Example:

St 7 I t D t B


24/40


Step 7Inventory Data BoxInformation

In the data boxes beneath the inventory boxes thefollowing information are good to measure:

Buffer level Replenishment cycle Duration (hours of supply) Material turnover rate

Handover times/confirmation

Example:Replenishmentcycle/one line Mins450

Buffer levelmean

Engines

46200

Buffer durat ion Hrs79

ENGINEBUFFER

S1E

St 7 T f fl b t


25/40


Step 7Type of flow betweenprocesses

Now we insert push, pull or FIFO techniques usedbetween the processes

Max. 200 pieces

4 000 pcs

4 days

I400 Blue

200 Red

I


26/40


Step 8Information Flows

Information flows explain how much and when each

process should produce Information flows are indicated by red narrow lines

There are separate lines for forecasts and orders

i HUB

PRODUCTION

CONTROL

MRP

CUSTOMER

3 week

forecast 2 weekforecast

DailyOrder

WeeklyOrder

Workqueue

2 weekSchedule

Shippingschedule


27/40


Step 8Mapping timelines

We will now indicate all lead times for processes andduration times for inventories on a timeline beneath allprocesses boxes and inventory triangles

Lead times for each inventory triangle are calculated asfollows: inventory quantity divided by the daily customerrequirement (=DOS)

If the lead time and the actual value adding time for a processdiffer, we indicate it in the following way:

12 min

10 seconds3 days Inventory OS

St 9 S i i d ti


28/40


Step 9Summarizing productionand value adding times

With data from observation of current operations in factorywe can summarize the current condition of this valuestream

By adding the lead times for each process and inventorywe get a good estimate of the total production lead time

Similarly we can summarize the value adding times ofeach process

Compare value added with total lead time

C t St t M


29/40


PROCESS 1

8

PROCESS 1

8

PROCESS 1

8

PROCESS 1

8

Weekly

i HUB

6xDaily

8xDaily

400 pcs

6 hours

I400 Blue200 Red

I

PRODUCTION

CONTROL

MRP

3 weekforecast

2 weekforecast

Daily

OrderWeeklyOrder

DailySchedule

2 weekSchedule

6 hours 6 hours 4 days 6 hours

10 sec 16 sec 14 sec

30 min 30 min 4 hours 4,8 days

40 seconds

ProductionLead Time

Processing Time

Current State Map


30/40


Future State Mapping


31/40


Future State Mapping

Goal:

To build a chain of production where the individualprocesses are linked to their customers either bycontinuous flow or pull, and that each process gets asclose as possible to producing only what its customerneeds when they need it


32/40


Dream about perfection

Think outside the box

Develop alternatives to the current state map - waste free

Focus on shortening production lead time

Test if each new idea support:

Takt time

One-piece flow

Pull

Hints for Mapping Future State

Be Open minded and Smart !


33/40


Key Questions for the Future State

1. What is the Takt time?

2. Where can we use continuous flow processing?

3. Where will we need to use kanban controlled pullsystems?

4. Will we build to a finished goods supermarket from which

customer pulls, or directly to shipping?5. Where will the production scheduling point be?

6. How will we level the production mix?

7. What process improvements will be necessary?


34/40


1. What is the Takt Time ?

Takt time is the rate at which products must be producedto fulfil customer orders

Example:

Available production time: 27 000seconds Customer demand:

450 units per shift

Takt time =60 sec

Available production time: 28 8001800 = 27 000 seconds per

shift

-> Each unit must be produced in 60 seconds

Breaks

2 Where can we use continuous flow


35/40


2. Where can we use continuous flow?

Is it possible to produce one product at a time without

interruptions?

This thinking can also be applied to material replenishment

Continuous Flow


36/40


Continuous flow continued

To create continuous flow we are often required to balance

the flow of operations inside a cell or along a line

Packing

Weld

Weld A

ssemble

Assemble

Packing

As

semble

Assemble

Weld

Weld

TAKT

TAKT

Line Balancing

3 Where will we need to kanban


37/40


3. Where will we need to kanbancontrolled pull system ?

The general guideline given is: Use supermarket where

continuous flow is not possible (e.g. ENO -> ATO)

Example:

4 Build to supermarket or directly


38/40


4. Build to supermarket or directlyto shipping ?

Building to asupermarket

The supermarketschedules assembly

Building Directly to

ShippingProduction controlschedules assembly

5 Where will the production


39/40


5. Where will the productionscheduling point be ?

The more we customize, the more upstream the scheduling point

need to be pacemaker process If you have a pull system this is the only scheduling point you need

Downstreamscheduling point

Upstreamscheduling point


40/40

6. How will we Level Production ?

Levelling means to completely even out the production

of product types and volumes in relation to customershipping batchesand real customer needs

Model A

80 000 units

Model B

40 000 units

Model C

40 000 units

week 1 week 3 week 4week 2

MassProductionMonthly

schedule(160 000units permonth)

A B C

hour 1 hour 3 etchour 2

Levelled

ProductionHourlyschedule

(280 unitsper hour)

A B C A B C A B C

140

70 70

140

70 70

140

70 70

140

70 70

Documents

VSM Smart Manufacturing