Uncover Inefficiencies With Value Stream Mapping. Presented by Chip Malboeuf Turn-Key Industries Engineering Services

Transcription

1 Uncover Inefficiencies With Value Stream Mapping Presented by Chip Malboeuf Turn-Key Industries Engineering Services

2 Please remember to thank these educational session sponsors Booth #437 Booth #1806 Booth #1024 Booth #1537 What we ll learn today What are value stream maps & their benefits How to develop value stream maps How to analyze the value stream How to identify process flow and utilization, waste and constraints. 1

3 BUT FIRST... Let s discuss the fundamentals of Lean Six Sigma Fundamentals of Lean Six Sigma VALUE Defined by the customer PERFECTION Constantly seek perfection MAP Map processes to aid understanding PULL Customers pull value; Plant pulls product FLOW Processes must have proper flow Lean Six Sigma Methodology Define Define the current process & project goals Measure Measure key aspects of the current process; collect relevant data Analyze Analyze data, determine root causes, find improvement opportunities Improve Improve the process based upon data analysis Control Control the improvements to ensure sustainable results 2

4 Lean Six Sigma War on Waste! The Eight Wastes Tim Wood U. The Eight Wastes Tim Wood U. T ransportation I nventory M otion W aiting O verproduction O verprocessing D efects U nderutilized Human Resources 3

5 VALUE STREAM MAPPING What is Value Stream Mapping? VSMs are a visual tool to help see and understand flow of Material and Information A big picture perspective Focuses on improving the whole, but not throwing out the entire process Requires physically observing the process House of Lean 4

6 Why Use Value Stream Mapping? Only understood processes can be improved. Understanding is easier when it is visual. Helps uncover waste (muda) Aids determination of VA vs. NVA To eliminate unnecessary steps or flow errors Identify bottlenecks Show steps that ultimately don t meet the needs of customers Current State VSM Current State VSM 5

7 Current State VSM Ideal State VSM Current State VSM Ideal State VSM Current State VSM Ideal State VSM Future State VSM 6

8 WHAT IS A PROCESS? What is a process? Process A series of actions, changes or functions bringing about a result Inputs Transformation Outputs What is a process Process Outputs go to... CUSTOMERS!... But which customers? External Customers Outside your company Customers/End Users who pay for your service (output) Internal Customers Inside your organization Other departments, typically do not pay for outputs 7

9 HOW DO WE ANALYZE A PROCESS? Or... How do we visualize a process? How Do We Analyze a Process? 1. See the process 2. See the waste 3. Visualize the perfect state 4. Eliminate waste, improve the process How Do We Visualize a Process? Three Visual Mapping Tools SIPOC (snapshot) Process Map (general overview) Value Stream Map (drill down) 8

10 SIPOC? How to create a SIPOC Diagram 1. Identify key process activities 2. Identify outputs of the process and known customers 3. Identify inputs to the process and likely suppliers Sounds scary, right? Let s use a familiar example. SIPOC Diagram Example: Making a Cup of Tea Supplier Inputs Process Outputs Customer Husband Teabag Add water to kettle Supermarket Kettle Put kettle on to boil Electricity / Gas Water Milk Cup Add tea bag to cup Add milk to cup Pour boiling water into cup Remove teabag from cup Serve Cup of tea Used teabag Wife 9

11 Process Maps High level visualization of an overall process Does not include detailed individual steps CREATING VALUE STREAM MAPS 10

12 Current State Value Stream Map A current state map is a pictorial view showing how material and information currently flow. To show process simply &visually To clarify your understanding of how the current process actually operates To create a baseline for future Using the Current State Value Stream Map 1. Define customer value 2. Create a current state VSM 1. Walk the process to identify tasks and flows 2. Gather data on resources, time, quality for each 3. Analyze map to determine opportunities for improvement 1. Identify value-added and waste 2. Brainstorm actions to eliminate waste and add value 4. Create future state map to visualize the desired state 5. Create action plans to move towards future state Walk the process Visualize yourself in the place of the product Walk the process backwards (from last step to first) or forward (from first step to last) Interview personnel who touch the process (look for problems that may be occurring) Measure people and/or product travel distances Look for constraints in the system (shared resources) Look for 8 types of wastes 11

13 Mapping Tips Create process map with a team. Use Post-it notes on butcher paper. Place top of process boxes just below the middle of the page. Leave enough room between process boxes to show inventory, flow, decisions. Title and date map. Current State VSM Exercise Marge & Homer s Hot Dog Stand Developing a Current State VSM for Marge & Homer s Hot Dog Stand Use Post-it notes for process elements Place Post-its on poster board Draw lines for process & information flow Don t worry about symbology Identify inputs & outputs Current State Value Stream Map 12

14 The objective is to: Value Analysis Eliminate the hidden costs that do not add value to the customer Reduce unnecessary process complexity, and thus errors Reduce the process cycle time Increase capacity by better utilizing resources What is Value Added? Any step or activity in a process is considered VALUE ADDED (VA) if it meets ALL of the following: If the customer wants it AND If it changes form, fit or function AND If it is done right the first time (i.e. not rework) Value? Value Added (VA) Activities that change form, fit, or function of a product or service Activities the customer wants to pay for Activities done right the first time Non-Value Added (NVA) Activities that do not change form, fit, or function Activities that fall under any of the eight forms of waste Activities not performed right the first time Business Value (BV) Activities causing no value to be created but which cannot be eliminated based on current technology or requirements 13

15 Value Added vs. Non Value Added Does Customer Was Form, consider step of VALUE and willing to pay Yes Fit or Function changed? Yes Rework? Yes 8 Types of MUDA for it? T Transportation No No No I Inventory M Motion W Waiting O Over-production Required by Current Instructions or Technology Yes Business Value Value Added O D U Over-processing Defects Under-utilization of people No Non- Value Added VA/NVA/BV Legend Non-value Added Business Value Value Added Be stingy with Business Value designations! Require chapter and verse proof that a step is required by law, by contract, etc. Current State VA / NVA NVA = Red BV = Yellow or Orange or Red with letter E VA = Green Visually identify areas for improvement opportunities Accomplished by color coding each step 14

16 Value Analysis Exercise Let s re-examine Marge & Homer s Hot Dog Stand Identify VA, NVA and BVA Identify with colored dots / Post-its the VA (green), NVA (yellow) and BV (red) activities Toward Future State Balance Work Cook in parallel Product/Service Using VSM Tools Determine the practical limits of your mapping activity Current State Map Ideal State Map Future State Drawing Understanding how things currently operate. How would things operate in a perfect world? Design a lean flow. Plan and Implementation The goal of mapping! 15

17 Ideal State Value Stream Maps Start with a clean sheet Picture your value stream with no waste Create flowchart using only the VA steps No stops, piles, backups, wait time, parallel paths (assume that anything is possible) Future State Value Stream Maps Visual of improved material and information flow Used to drive detailed implementation plans What type of improvements are needed and why? Examples of Improvement Targets Reducing cycle time Reducing inventory Cost reduction Increasing available capacity Decreasing the area footprint Reducing order lead time 16

18 QUICK REVIEW Benefits of Value Stream Mapping Aids in visualization of a process Shows flow of goods and information Common lexicon, easy to understand Spotlights waste, capacity, utilization & bottlenecks Going Back to School T ransportation I nventory M otion W aiting O verproduction O verprocessing D efects U nderutilized Human Resources 17

19 Tips for Creating VSMs Involve the entire team Walk the process, especially when stuck Post-its! Title/Date the VSM Save the results Review and update Time for questions Please wait for the microphone. THANK YOU! Turn-Key Industrial Engineering Services, Inc. 18

20 Time for Lunch and Match Game Room 313 Next Sessions Room 308 The Price is Right: Tips for Dealing With How Much Alan Berg, CSP Room 305 Why Didn t I Think of That? Rental Industry Simple, Creative, Money-Saving Ideas Contributors Room 309 SWOT Your Way to a Better Bottom Line Lynda Nance 19

21 Marge & Homer s Hot Dog Stand Marge and Homer have opened a hot dog stand at their local park. They offer a hot dog with choice of fresh fruit and beverage to walk up customers between 10 AM and 2 PM. Customers put on their own condiments. Customers say their hot dogs are good, but the wait is a little long. After two weeks, they have a brisk, and growing business. Homer and Marge notice they are barely keeping up with the customer demand, and making a little money after buying their supplies at the end of each day. They would like to improve their process to meet growing customer demand. They collected the following data for their business processes and need help analyzing it. As a first step, they have asked that you draw a process map. Later you will work with the data. Process Step Data for Average Day Time per Order 1 Marge takes orders, collects the money, and chats with the walk up customers. 60 sec spent taking customer order 50 customers per day Average Order: 2 hot dog/fruit/beverage combos 2 Marge tacks order-in on Homer s board. Homer takes order from board. Order-in spends 30 sec on board 3 Homer gets a cooked hot dog. If one isn t already cooked, Homer adds more dogs to the grill trying to estimate upcoming demand 4 Homer puts dog in bun, wraps it in foil, adds fruit of choice and puts in serving container. 5 If order isn t complete, Homer repeats steps 4-5. Otherwise goes to step 2. 6 Homer puts completed order on Marge s counter Time spent to produce a cooked hot dog is 50 sec Takes 20 sec per dog, about half the time spent adding fruit and putting in serving container. 10 sec per dog Order spends 30 sec on counter 7 Marge checks the order 10 sec per order 10% of orders returned to Homer 8 Marge adds beverage 10 sec per order 9 Marge calls customer to stand, delivers order and chats a bit 30 sec per customer 10 Homer sets up his work 10 min each hour area, keeping it clean and stocked 11 Marge fills up condiments, 10 min each hour keeps serving counter clean, and bags trash Cycle Time