Standard Business Roadmap Value Stream Analysis / Mapping

Training Pack Standard Business Roadmap Value Stream Analysis / Mapping

Value stream mapping is the start to any lean transformation Where you can flow you flow Where you can t flow You Pull!

Value Stream Mapping AGENDA! Introduction to mapping! Creating a Current State Map! Introduction To Lean Techniques! Creating a Future State Map! Using a Map as a basis for Tactical Implementation Planning

Definition of Value Stream Map A Value Stream Map is a diagram of all actions (both value added and non-value added) required to bring a product through from raw material to the arms of the customers Current Future Representation of Current State: reveals waste and its sources Representation of Future State: explains how lean business will flow

Introduction to Mapping Toyota have been benefiting from Material & Information Flow Mapping since 1940 s Taiichi Ohno could not see waste at a glance (especially across a geographical area) He developed Material & Information Flow Mapping as a standard method for mapping the flows visually Became the standard basis for designing improvements at Toyota - as a common language it became one of their business planning tools Value Stream Mapping is now utilised throughout the world, in many businesses to strategically plan

Principles for Creating a Value Stream Map Diagram needs to be on one sheet of paper Use the standard format for the diagram Use the standard symbols for the diagram Capture all of the data yourself Walk, Understand and Validate the process Involve as many people as practical Use paper and pencil

Value Stream Mapping V s Process Mapping VALUE STREAM MAPPING PROCESS MAPPING! Considers the whole value stream! Identifies non value added between processes! Improvements to system are usually significant but difficult to achieve! Enables long term strategy to be planned! Concentrates on a single process! Identifies non value added within a process! Improvements to process are usually small but very easy to implement! Enables short term tactical planning

Standard Diagram Format for Single Site Order Supply Free Issue Material Production Control Demand Signal Annual Forecast 22 Week Forecast Weekly Order Daily Expedite Customer Monthly quantities DAILY EXPEDITE Weekly Reduce Inventory - Supply Negotiations Set-ups? Lengthy Despatch Process I PART MARK I SLOT I SAW I CNC I ENGRAVE I VAPOUR I BLAST SHIPPING PRODUCTION LEAD TIME 35d 2.5m 3.125d 15m 0.625d 90m 6.25d 45m 3.125d 6m 3.125d 7m 5.625d 22 days Processing time 165.5 mins 0.65%

Product Family matrix! Determine the product family : PROCESS AND EQUIPMENT STEPS PRODUCTS Left Right Upper Lower Inner skin Outer skin Weld 1 Weld 2 Assy 1 Assy 2 Polish Pack x x x x x x x x x x x x x x x x x x x x x x

Using the Value Stream Mapping Course CURRENT STATE MAPPING 2 days Product family Current state drawing Future state drawing! Understanding how the shop floor currently operates.! The foundation for the future state.! Designing a future state. Plan and implementation

Using the Value Stream Mapping Course CURRENT STATE MAPPING 2 days Product family Current state drawing Future state drawing Plan and implementation! Understanding how the shop floor currently operates.! Material and information flows.! Draw using icons.! Start with the door to door flow.! Have to walk the flow and get actuals - No standard times. Draw by hand, with pencil.! Foundation for future state.

Levels of Value Stream Process Start here! Single plant Multiple plants Across companies

Creating a Current State Value Stream Map THE 7 STEPS 1. Customer Requirements 2. Draw Process Steps 3. Process Data 4. Inventory 5. Material Flow: Supplier to Manufacturer & Manufacturer to Customer 6. Information Driving Flow & Internal Material Flow 7. Manufacturing Lead Time & Processing Time

Slug Brackets Data Set Slug Brackets stamping company produces several components for Slug assembly plants. This case concerns one product family: a titanium fastening bracket subassembly in two types: one for A1 Slugs and one for A2 Slugs. These components are sent to Final Assembly Line (FAL) Customer Requirements 320 pieces per month 200 per month of Type A1 120 per month of Type A2 Customer plant operates on 2 shifts Palletised returnable tray packaging with 1 brackets in a tray and up to 10 tray s on a pallet. The customer orders in multiples of trays One daily shipment to the assembly plant by Truck Work Time 20 days in a month Two shift operation in all production departments Eight (8) hours every shift, with overtime if necessary Two 10-minute breaks during each shift Manual processes stop during breaks Unpaid Lunch-all processes continue

Slug Brackets Data Set Production Processes Slug Brackets process for this product family involves stamping a metal part followed by welding and subsequent assembly. The components are then staged & driven to the FAL on a daily basis. Switching between Type A1 and Type A2 brackets requires a 1 hour changeover in stamping and a 10-minute fixture change in the welding processes Coils (500ft) are supplied by the Coils R Us. Deliveries are made to Slug Brackets on Tuesdays and Thursdays by truck Slug Brackets Production Control Department Receives FAL 90/60/30 - day forecasts and enters them into MRP via EDI Issues Slug Brackets 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 the FAL via EDI Generates MRP based weekly departmental requirements based on customer order, WIP inventory levels, F/G inventory levels, and anticipated scrap and downtime Issues requirement to Coils R Us for it 500ft coils. Issues weekly build schedules to Stamping, Welding, and Assembly processes Issues daily shipping schedule to Shipping Department

Slug Brackets Data Set Production Processes: All processes occur in the following order and each piece goes through all processes 1.) STAMPING (The press makes parts for many SB products) 1 operator to run press Automated 10 ton press with coil(automated material feed) Cycle Time: 1 minute (60 pieces a hour) Changeover time: 1 Hour (Good piece to good piece) Machine reliability: 85% Observed inventory: 5 Days of coils before stamping 150 pieces of Type A1 finished stampings 24 pieces of Type A2 finished stampings 2.) SPOT WELD 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 after process; 6 pieces of Type A2 3.) SPOT WELD WORKSTATION 2 (Dedicated to this product family) Manual process with 1 operator Cycle Time: 46 minutes Changeover time: 10 minutes (Fixture change) Reliability: 80% 3.) CONT D Observed inventory: 6 pieces of type A1 before spot weld 2; 16 pieces of Type A1after spot weld; 18 pieces of Type A2. 4.) ASSEMBLY WORKSTATION 1 (Dedicated to this product family) Manual process with 1 operator Cycle Time: 62 minutes Changeover time: non Reliability: 100% Observed inventory: 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 DEPARTMENT Removes parts form finished goods warehouse and stages them for Truck shipment to customer

Creating a Current State Value Stream Map (2) You need:! A Large Piece of Paper! A Pencil! An Eraser (absolutely)! A Ruler (maybe)! A set of detailed information / data about the company - Its Processes, Machines, Employees, Stock, WIP etc Its Suppliers Its Customers

White-board exercise Let s begin!

Step 1 - Customer Requirements F.A.L. 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 Daily.

Step 2 - Process Steps F.A.L. 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 Daily Stamping Spot weld # 1 Spot weld # 2 Assembly #1 Assembly # 2 Shipping.

Step 2 - Process Steps F.A.L. 320 pieces/ month 200 A1 120 A2 Multiple process in parallel 2 shifts Pack size = 1 Daily Stamping Spot weld # 1 Spot weld # 2 Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping.

Step 3 - Process Data F.A.L. 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 Daily Stamping Spot weld # 1 Spot weld # 2 Assembly # 1 Assembly # 2 Shipping 10 T Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over= 60 min Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80%.

Step 4 -Inventory F.A.L. 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 Draw these then erase after explanation Daily I I I 5 days Stamping 10 T Cycle time= 1 minute I 150 A1 24 A2 Spot weld # 1 Cycle time= 39 minute Spot weld # 2 Cycle time= 46 minute Assembly # 1 Cycle time= 62 minute Assembly # 2 Cycle time= 40 minute Shipping Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80%.

Step 4 -Inventory F.A.L. 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 Daily I Stamping 5 days 150 A1 10 T 24 A2 I Spot weld # 1 I 42 A1 6 A2 Spot weld # 2 I 16 A1 18 A2 Assembly # 1 I 42 A1 6 A2 Assembly # 2 I 27 A1 14 A2 Shipping Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80%.

Label the Map F.A.L. 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld # 1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80% Slug Brackets Stamping Currents State Map Date :.

Step 5 - Material Flow Supplier / Mfr & Mfr / Customer Coils r us F.A.L. 500 ft coils 320 pieces/ month 200 A1 120 A2 Tuesday and Thursday 2 shifts Pack size = 1 Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld #1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80% Slug Brackets Stamping Currents State Map Date :.

Step 5 - Material Flow Supplier / Mfr & Mfr / Customer Coils r us 6 week forecast Weekly fax Production Planning 30/ 60/ 90 day forecast Daily expedite F.A.L. 500 ft coils 320 pieces/ month 200 A1 120 A2 2 shifts Pack size = 1 Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld # 1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80% Slug Brackets Stamping Currents State Map Date :.

Step 6 - Push & Pull Material Information Flows Coils r us 6 week forecast Weekly fax Production Planning 30/ 60/ 90 day forecast Daily expedite F.A.L. 500 ft coils MRP Weekly plan 320 pieces/ month 200 A1 120 A2 Tuesday and Thursday 2 shifts Pack size = 1 Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld # 1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80% Slug Brackets Stamping Currents State Map Date :.

Step 6 - Push & Pull Material Information Flows Coils r us 6 week forecast Weekly fax Production Planning 30/ 60/ 90 day forecast Daily expedite F.A.L. 500 ft coils MRP Weekly plan 320 pieces/ month 200 A1 120 A2 Tuesday and Thursday 2 shifts Pack size = 1 Daily shipping plan Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld # 1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80% Slug Brackets Stamping Currents State Map Date :.

Step 7 - Lead Time & Processing Time Coils r us 6 week forecast Weekly fax Production Planning 30/ 60/ 90 day forecast Daily expedite F.A.L. 500 ft coils MRP Weekly plan 16 pieces/ day 320 pieces/ month 200 A1 120 A2 Tuesday and Thursday 2 shifts Pack size = 1 Daily shipping plan Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld # 1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping Cycle time= 1 minute Cycle time= 39 minute Cycle time= 46 minute Cycle time= 62 minute Cycle time= 40 minute Change over=1 hour Change over=10 min. Change over=10 min. Change over=0 min. Change over=0 min. Uptime =85% Uptime =80% 5 days 10.9 days 3 days 2.1 days 3 days 2.6 days 1 minute 39 minute 46 minute 62 minute 40 minute Slug Brackets Stamping Currents State Map Date :.

Step 7 - Lead Time & Processing Time Coils r us 6 week forecast Weekly fax Production Planning 30/ 60/ 90 day forecast Daily expedite F.A.L. 500 ft coils MRP Weekly plan 16 pieces/ day 320 pieces/ month 200 A1 120 A2 Tuesday and Thursday 2 shifts Pack size = 1 Daily shipping plan Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld # 1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping 5 days Cycle time= 1 minute Change over=1 hour Uptime =85% Cycle time= 39 minute Change over=10 min. Cycle time= 46 minute Change over=10 min. Uptime =80% Cycle time= 62 minute Change over=0 min. Cycle time= 40 minute Change over=0 min. Production Lead Time = 26.6 days Processing time = 188 mins 10.9 days 3 days 2.1 days 3 days 2.6 days 1 minute 39 minute 46 minute 62 minute 40 minute Slug Brackets Stamping Currents State Map Date :.

Complete State Current State Value Stream Map Coils r us 6 week forecast Weekly fax Production Planning 30/ 60/ 90 day forecast Daily expedite F.A.L. 500 ft coils MRP Weekly plan 16 pieces/ day 320 pieces/ month 200 A1 120 A2 Tuesday and Thursday 2 shifts Pack size = 1 Daily shipping plan Daily I I I I I I Stamping 5 days 150 A1 10 T 24 A2 Spot weld # 1 42 A1 6 A2 Spot weld # 2 16 A1 18 A2 Assembly # 1 42 A1 6 A2 Assembly # 2 27 A1 14 A2 Shipping 5 days Cycle time= 1 minute Change over=1 hour Uptime =85% Cycle time= 39 minute Change over=10 min. Cycle time= 46 minute Change over=10 min. Uptime =80% Cycle time= 62 minute Change over=0 min. Cycle time= 40 minute Change over=0 min. Production Lead Time = 26.6 days Processing time = 188 mins 10.9 days 3 days 2.1 days 3 days 2.6 days 1 minute 39 minute 46 minute 62 minute 40 minute Slug Brackets Stamping Currents State Map Date :.

Value Stream Mapping Go and map your own processes. Current state map

Designing a Lean Flow FUTURE STATE MAPPING 2 days Product family Current state drawing Future state drawing! If you don t design a future state then! so far it s all been waste! You may not get it right first time, keep updating! Becomes the foundation for your T.I.P.! Begin with the current state! First try should be low cost no cost! Move existing kit! Make only minor purchases Plan and implementation Apply Lean techniques

Waste Elimination Traditional Focus Work Longer-Harder-Faster Add People or Equipment Lean Manufacturing Improve the Value Stream to Eliminate Waste Value Add Waste LEAD TIME

Isolated Efficiency V s System Efficiency

7 Wastes Not Right First Time - Scrap, Rework & Defects Over-production 7 1 2 Inventory Over-processing 6 WAS TE 5 4 3 Motion Transportation Waiting

Overproduction Definition To produce sooner, faster or in greater quantities than the absolute customer demand Manufacturing too much, too early or "Just in Case". Overproduction discourages a smooth flow of goods or services. Takes the focus off what the customer really wants. Leads to excessive inventory.

Takt Time Takt is a German word meaning beat (metronome) Takt time is matching the pace of production to customer demand. Adherence to Takt time will ensure customer satisfaction through 100% on time delivery Takt = total time available* total customer demand 57.5 minutes = 2(480-20) minutes 16 pieces * only management allowances are deducted:- e.g. tea breaks, lunch breaks, team meetings, clean down time Beat makes no allowances for machine inefficiency e.g. breakdowns, changeovers

Go to Flip Chart Takt time Cycle time Op 1 Op 2 Op 3 Op 4

Build to Shipping or to Supermarket? TO SHIPPING TO SUPERMARKET F.A.L. F.A.L. Daily Daily Process Shipping Shipping Process Which is better?

Go to Flip Chart 1. Peak demand F.A.L. 2. F.A.L. Lower peak Finished goods

One Piece at a Time Manufacture Batch production Single piece flow Process C Process B Process A Process B Process C Process A

One Piece at a Time - Effect on Lead Time Batch production - Lead time 17 units of time Continuous flow processing - Lead time - 7 units of time Process A B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Transfer time Transfer time C First part complete after 3 units Complete First part complete after 13 units Complete

Solution to Scheduling - Supermarket Pull System Customer goes to supermarket and withdraws what it needs when it needs it. Supplier process produces to replenish what the customer has withdrawn. Production Kanban Withdrawal Kanban Supplier Process Customer Process New product Withdrawn product Inventory Marketplace

Scheduling Your Value Stream Pull System now schedules supply processes: only schedule one place Schedule Stamping Spot weld # 2 Assembly # 1 Shipping 10 T F.A.L. Flow Schedule Stamping Spot weld # 2 Assembly # 1 Shipping 10 T F.A.L. Flow

Scheduling Your Value Stream Whip effect of volume fluctuation Stamping Spot weld # 2 Assembly # 1 Shipping Pacemaker 10 T F.A.L. Flow Coupled Processes but: Larger whip effect, larger supermarkets; large batches, large supermarkets; long changeovers, large supermarkets OOXXOOXX Stamping Spot weld # 2 Assembly # 1 Pacemaker Shipping 10 T F.A.L. Flow Ideally minimal fluctuation at Pacemaker and minimum batch size to reduce stock in up stream processes

Levelling Production at the Pacemaker Process Production schedule Monday = 40A Tuesday =10A, 30 B Wednesday =1 B, 1C Thursday = 40 C Friday = 1 C, 1 A Production scheduler Build every part every day Translates to: Monday: 10 A, 6 B, 9 C Tuesday: 10 A, 6 B, 9 C Wednesday: 10 A, 6 B, 8 C Thursday: 10 A, 7 B, 8 C Friday: 11 A, 6 B, 8 C Monday: 5 A, 3 B, 5 C Tuesday: 5A, 3 B, 5 C Wednesday: 5 A, 3 B, 4 C Thursday: 5 A, 4 B, 4 C Friday: 6 A, 3 B, 4 C Every part every ship window Monday: 5 A, 3 B, 4 C Tuesday: 5A, 3 B, 4 C Wednesday: 5 A, 3 B, 4 C Thursday: 5 A, 3 B, 4 C Friday: 5 A, 3 B, 4 C

A Lean System all Processes are Linked Process Supplier Process SHIPPING Supplier Assembly plant All Processes linked to produce exactly what their customer wants when the customer needs it. What do we do if a link breaks?

What do we do if a Link Breaks? Problem Solve - Maintain Flow!! Do NOT add Waste to act as a safety net and cover the problem How do we know if a link/process has broken?

When do we find out if a link has broken? " The amount of work produced at the Pacemaker process is to schedule. " Each part of the process is working to Takt " And are you providing a Takt image? " Monitor the process at set intervals; your management time frame! 1 week 1 day 1 shift takt 1 hour

Value Stream Mapping AGENDA " Introduction to mapping " Creating a Current State Map " Introduction To Lean Techniques " Creating a Future State Map " Using a Map as a basis for Tactical Implementation Planning