Value Stream Mapping
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1 Value Stream Mapping (VSM) Value Stream Mapping W W W. E C C I N T E R N A T I O N A L. C O M PHILIPPINES :: MALAYSIA :: VIETNAM :: INDONESIA :: INDIA :: CHINA
2 What Is Value? A capability provided to a customer, of the highest quality, at the right time, at an appropriate price, as defined by the customer.
3 Value Stream Mapping Purpose Provide optimum value to the customer through a complete value creation process with minimum waste in: Design (concept to customer) Build (order to delivery) Sustain (in-use through life cycle to service)
4 The VSM Mapping Process Product Family Current Map State Future State Map Work Plan
5 Current State Value Stream Map Example
6 What Is Value? "Value" is what the customer is buying Always think first about the end-customer Who is the customer? What are they buying? Describe value using the customers' words
7 Why VSM? Many organizations pursuing lean conversions have realized that improvement events alone are not enough Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it
8 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM Lean + + = Basics
9 Value Steam Mapping Steps Next Future State Future State Current State Original State
10 Value Stream Scope Extended Value Stream Concept Order In-use Multi-plant/Multi-company Launch Delivery Recycle Plant Action Action Action Action Action Action Action
11 Apply Five Simple Principles Specify value from the standpoint of end customer Identify the value stream for each product family Make the product flow So the customer can pull As you manage toward perfection Perfection VALUE VALUE STREAM PULL FLOW
12 What is the Value that Flows? Specify value from the standpoint of the end customer Ask how your current products and processes disappoint your customer s value expectation: price? quality? reliable delivery? rapid response to changing needs????
13 What Flows? "ITEMS" flow through a value stream In manufacturing, materials are the items In design & development, designs are the items In service, external customer needs are the items In admin., Internal customer needs are the items Analysis begins with part of a total value stream. That part of the value stream has customers too.
14 7 Forms of Waste PEOPLE Motion QUALITY Processing Fixing Defects TYPES OF WASTE Waiting Inventory Moving Things Making Too Much QUANTITY
15 Material Flow Icons ASSEMBLY Manufacturing Process XYZ Corporation Outside Sources C/T = 45 sec. C/O = 30 min. 3 Shifts 2% Scrap Data Box Mon. + Wed. Truck Shipment Supermarket Buffer or Safety Stock 300 pieces 1 Day Inventory Finished Goods to Customer max. 20 pieces FIFO First-In-First-Out Sequence Flow Physical Pull/Withdrawa l PUSH Arrow
16 Information Flow Icons Manual Information Flow Electronic Information Flow Signal Kanban Load Leveling Box Sequenced-Pull Ball Withdrawal Kanban Production Kanban Kanban Post Weekly Schedule Schedule Go See Production Scheduling General Icons Kaizen Lightening Burst Operator
17 TAKT TIME Takt Time = Effective Working Time per Shift Customer Requirement per Shift Synchronizes pace, evenly applying customer demand across the work day. Takt Time is "Beat Time"? "Rate Time" or Heart Beat" Lean Production uses Takt Time as the rate or time that a completed product is finished. If you have a Takt Time of two minutes that means every two minutes a complete product, assembly or machine is produced off the line. (
18 Imp events Projects Do Its Example - Quoting Value Stream Action Plan What X X X X X Define basic measurements for the business unit and value stream (measure & track) Communicate Lean initiative, why & how to all employees in impacted value stream Quality write standard work for RFQ s, increase accuracy/completeness to 95% Engineering reduce cycle time by 50%, Increase first time yield to 90%, write std. Work. CAS reduce cycle time by 50%, write std. Work.
19
20 Thank you very much! facebook.com/eccinternational linkedin.com/company/ecc-international eccinternational.wordpress.com
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