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Definition of Value-added. Value Added Any activity that increases the market form or function of the product or service. These are activities the customer is willing to pay for . Non Value-added Any activity that does not add market form or function or is not necessary .

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definition of value added
Definition of Value-added

Value Added

Any activity that increases the market

formor function of the product or service.

These are activities the customer is willing to pay for.

Non Value-added

Any activity that does not add market form or

function or is not necessary.

These activities should be eliminated, simplified, reduced, or integrated.

slide31

Lean = Eliminating the 8 Wastes

Typically 95% of Total Lead Time is

Non-Value Added!!!

RUN

TIME

Order Processing, Transport, Storage, Waiting, Rework,

Machine Setup, Inspection, Machine Breakdowns, etc...

Total Lead Time

lean eliminating the 8 wastes
Lean = Eliminating the 8 Wastes
  • Defects
  • Overproduction
  • Waiting
  • Non Value-added Processing
  • Transportation of Part/Materials/Tooling
  • Inventory in Excess
  • Motion in Excess
  • Employees that are underutilized
lean building blocks
Lean Building Blocks

Continuous Improvement

Pull/Kanban

Cellular/Flow

TPM

Quality at Source

POUS

Quick Changeover

Standardized Work

Batch Reduction

Teams

Value

Stream

Mapping

5S System

Visual

Plant Layout

slide71

Bracket (1)

10,000 pcs.

10 days

Q

Q

Coil

28,000 pcs.

14 days

Weld

Paint

Assembly

Ship

Side (2)

27,000 pcs.

13.55 days

4,500 pcs.

4.5 days

2,300 pcs.

2.3 days

1,500 pcs.

1.5 days

Queue

3 day

Queue

5 day

C/O: 30 min.

C/0: 1 hr.

C/T: 5 min.

C/T: 2 min.

C/T:Oper 2 min.

C/T:Oper 2 min.

Batch: 250 pcs.

Stamp

Stamp

T Batch: 25 pcs.

C/T:Equip 1 min.

C/T:Equip 10 min.

Batch:250 pcs.

L/T: 4 hr.

Front (1)

11,500 pcs.

11.5 days

Rear (1)

9,000 pcs.

9 days

MTBF: 1 mo.

MTBF: 6 mo.

Coil

5,500 pcs.

5.5 days

Coil

12,500 pcs.

12..5 days

MTTR: 30 min.

MTTR: 1 wk.

Contingency

10,000 pcs.

10 days

C/O: 30 min.

C/O: 20 min.

Scrap: .05 %

Rework: 5%

C/T: 1 sec.

C/T: 3 sec.

Batch:14,000 pcs.

Batch:7,000 pcs.

MTBF: 3 mo.

MTBF: 2 mo.

MTTR: ½ day

MTTR: 2 day

Scrap: 2%

Scrap: 3%

Order: Weekly Fax

Order: Daily Fax

Order Entry

Production Control

Customer

Suppliers

MCT Operations Planning

MRP

Forecast: 12 months

Firm: Current + 14 days Trade-off: 15 to 90 days Forecast: 91 days +

Component: Frame 20,000 pcs/mo. 25 pcs/container

Operations: 4 wks.

Batch: 1x/day

Batch: 3 hrs.

MCT Raw

C/T: 3 hrs.

C/T: 10 min.

Logistics: 5 days Batch: 1x/wk

Scheduling

5 days/wk 2 shifts/day 18 hrs/day

MCT Logistics

Batch: 1x/day

Logistics: 3 days Batch: 1x/day

C/T: 45 min.

Job Packet

Paint Schedule

Press #1

Ship Schedule

MCT Operations Manufacturing

Press #2

MCT Contingency