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Value Stream Mapping A Tool to Move Forward With

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  1. Value Stream Mapping A Tool to Move Forward With Welcome to Presented by Bob Forder

  2. 'Life isn't about how to survive the storm, but how to dance in the rain'

  3. Why a Value Stream Map? If you don’t know where you are at – How do you know how to get to where you want to be. ASK YOURSELF THESE THREE QUESTIONS Where am I today? Where do I want to be Tomorrow? How Do I get There?

  4. What is a “Value Stream” The steps involved in creating an OUTPUT for an Internal or an External Customer • Creating a report for your Boss • Creating a Purchase Order • Creating an Invoice to send to a Customer • Installing a new PC for a User • Making a Mould for the Foundry to Pour • Machining a Part • Assembling Sub Components into Finished Goods for Sale

  5. Typical Data Requirements

  6. MAPPING ICONS Kanban Path Kanban Post Supermarket Kanban arriving in batches Signal Kanban MAX 50 PCS First-In First-Out Flow FIFO Withdrawal Kanban Pull Process Kaizen Production Kanban Leveling

  7. Mapping Icons

  8. Current- State MAPPING ICONS Drawing Outside Source Pr. Control or Customer Electronic Information Flow ABC Mfg. MRP Truck Manual Shipment Tue & Flint Assy. Information Fri Flow 4/day Stamping Assembly I I I Inventory (incl. count & time) 2 Shifts 2 Shifts Manufacturing Cycle Time Cycle Time C/O Time C/O Time Process (or a Material Department) Movement via PUSH Data Box

  9. CURRENT-STATE DRAWING Product Family Understand how the business enterprise currently operates Current- State Drawing * Look at Material and Information Flows * Draw using standardized icons Future-State Drawing Start with the “door to door” flow * * Walk the flow & get actuals • no standard times • draw by hand Work Plan and Implementation

  10. LET’S MAKE A VALUE STREAM MAP You are the Acme Stamping Company

  11. “Acme Stamping” Data Set • Acme Stamping Company produces several components for vehicle assembly plants. This case concerns one product family: a steel instrument-panel bracket subassembly in two types: one each for left-hand and right-hand drive versions of the same automobile model. These components are sent to the State Street Vehicle Assembly Plant (the customer). • Customer Requirements: • 18,400 pieces per month • 12,000 per month of type “LH” • 6,400 per month of type “RH” • Customer plant operates on two shifts • Palletized returnable tray packaging with 20 brackets in a tray and up to 10 trays 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 hours every shift, with overtime if necessary • Two 10-minute breaks during each shift • Manual processes stop during breaks • Unpaid lunch

  12. TAKT TIME Synchronizes Pace of Production to Match Pace of Sales Rate for producing a product, and its components, based on sales rate. Your Operating Time per Shift T.T. = Customer Requirement per Shift 27,600 sec = 60 sec 60 sec. 460 pieces 60 sec. 60 sec.

  13. Takt Time = 60 Seconds 18,400 parts/month / 20 days/month = 920 parts per day 920 Parts per day / 2 Shifts = 460 Parts per shift 2 shifts per day / 2 = 1 8 hours per shift = 8 * 60 Minutes per hour = 480 minutes * 60 Seconds per minute = 28800 seconds - 2 10 minute breaks = 2 * 10 * 60 = 1200 seconds 28,800 - 1200 = 27,600 seconds available to make parts 27,600 Available Seconds / 460 Parts per Shift Required Equals 60 seconds per part or a Takt Time (TT) of 60Sec.

  14. Production Processes: • Acme’s process for this product family involves stamping a metal part followed by welding and subsequent assembly. The components are then staged and shipped to the vehicle assembly plant on a daily basis. • Switching between type “LH” (left hand drive) and type “RH” (right hand drive) brackets requires a 1-hour changeover in stamping, and 10-minute fixture change in the welding processes. • Steel coils are supplied by Michigan Steel Company. Deliveries are made to Acme on Tuesdays and Thursdays. • Acme Production Control Department: • Receives State Street’s 90/60/30 day forecasts and enters them into MRP • Acme issues a 6-week forecast to Michigan Steel Co. via MRP • Secures coil steel by weekly faxed order release to Michigan Steel co. • Receives daily firm order from State Street • Generates MRP based weekly departmental requirements based upon customer orders, WIP inventory levels, F/G inventory levels, and anticipated scrap and downtime • Issues weekly build schedules to Stamping, Welding, and Assembly processes • Issues daily shipping schedule to Shipping Department

  15. Takt Time = 60 So… We always start with the Customer and a “Bart Head” What do we know about the Customer?

  16. Takt Time = 60

  17. Process Information: • All processes occur in the following order and each piece goes through all processes. • 1. Stamping • (The press makes parts for many Acme products and is called a shared resource) • Automated 200 ton press with coil (automatic material feed) • Cycle time: 1 second (60 pieces per minute) • Changeover time: 1 hour (good piece to good piece) • Machine reliability: 85% • Observed Inventory • 5 days of coils before stamping • 4,600 pieces of type “LH” finished stampings • 2,400 pieces of type “RH” finished stampings

  18. 2. Spot-Weld Workstation #1 • (Dedicated to this product family) • Manual process with one operator • Cycle time: 39 seconds • Changeover time: 10 minutes (fixture change) • Reliability: 100% • Observed Inventory: • 1,100 pieces of type “LH” • 600 pieces of type “RH”

  19. 3. Spot Weld Workstation #2 • (Dedicated to this product family) • Manual process with one operator • Cycle time: 46 seconds • Changeover time: 10 minutes (fixture change) • Reliability: 80% • Observed Inventory: • 1,600 pieces of type “LH” • 850 pieces of type “RH”

  20. 4. Assembly Workstation #1 • (Dedicated to this product family) • Manual process with one operator • Cycle time: 62 seconds • Changeover time: none • Reliability: 100% • Observed Inventory: • 1,200 pieces of type “LH” • 640 pieces of type “RH”.

  21. 5. Assembly Workstation #2 • (Dedicated to this product family) • Manual process with one operator • Cycle time: 40 seconds • Changeover time: none • Reliability: 100% • Observed Finished Goods Inventory in Warehouse: • 2,700 pieces of type “LH” • 1,440 pieces of type “RH” • 6. Shipping Department • Removes parts from finished goods warehouse and stages them for truck shipment to the customer

  22. Takt Time = 60 So… Let’s Start Building the Process starting with the first process The Triangle with the “I” is for your observed Inventory before each process The Box is to Identify a process

  23. Takt Time = 60 So… What do we know about the Process and what do we want to know?

  24. Takt Time = 60

  25. Takt Time = 60

  26. Takt Time = 60

  27. Takt Time = 60

  28. Takt Time = 60

  29. Takt Time = 60

  30. Takt Time = 60

  31. Takt Time = 60

  32. MICH. STEEL STATE STREET weekly fax STEEL COILS • 18400 pcs/mo • 12000 LH • 6400 RH • 2 SHIFTS • Min. pack : 20 Tues/ Th daily order 1/day 6 wk. f’cst Stamping Weld I Weld II ASSM I ASSM II Shipping 90/60/30 day f’cst 5 days 4600 LH 2400 RH 7000 T I 1100 LH 600 RH 1700 T 1600 LH 850 RH 2450 T 1200 LH 640 RH 1840 T 2700 LH 1440 RH 4140 T C/T: 40 sec C/T: 62 sec C/T: 1 sec C/T: 39 sec C/T: 46 sec I I I I I C/O: 1 hr C/O: 10 min C/O: 10 min C/O: 0 C/O: 0 (7000/920) = 7.6 d (1700/920) = 1.8 d (2450/920) = 2.7 d (1840/920) = 2 d (4140/920) = 4.5 d Rel: 100% Rel: 85% Rel: 100% Rel: 80% Rel: 100% Lead Time Dedicated Dedicated Dedicated Multiple Products Dedicated 2.7 days 2 days 4.5 days 23.6 days 5 days 7.6 days 1.8 days Process Time 1 sec 39 sec 46 sec 62 sec 40 sec 188 sec CURRENT STATE 20 days / mo 2 shifts – 8hrs (2) 10 min breaks / shift ACME PC&L MRP Daily Ship Schedule WEEKLY SCHEDULE

  33. Future State I ACME PC&L MICH. STEEL STATE STREET Daily fax MRP BATCH STEEL COILS • 18400 pcs/mo • 12000 LH • 6400 RH • 2 SHIFTS • Min. pack : 20 300 LH 160 RH C/T < 60 sec BIN BIN coil LH coil 20 20 20 RH daily order 1/day 6 wk. f’cst 90/60/30 day f’cst Weld 2 C/T: 1 sec C/T: 56 sec C/T: 46 sec C/O: 10 min C/O: 1 hr C/O: 0 Rel: 80% Rel: 100% Rel: 85% Multiple Products Total work = 102 sec Total work = 85 sec Lead Time 0.75 days 1.5 days 5.25 days 1.5 days 1.5 days Process Time 1 sec 85 sec 102 sec 188 sec Daily Order DAILY OXOX BATCH 20 600 LH 320 RH 20 LH LH Stamping Shipping ASSEMBLY 200T 2 RH RH coils Reduced lead time by 18.35 days

  34. Future State II ACME PC&L MICH. STEEL STATE STREET Daily fax MRP STEEL COILS • 18400 pcs/mo • 12000 LH • 6400 RH • 2 SHIFTS • Min. pack : 20 BIN coil LH coil 20 20 20 RH Weld c/o BATCH daily order 1/day 20 600 LH 320 RH 6 wk. f’cst 20 LH Stamping Shipping 90/60/30 day f’cst WELD + ASSEMBLY 200T 3 RH C/T: 56 sec C/T: 1 sec C/O: 1 hr C/O: 0 Rel: 85% Rel: 98% Weld rel >98% Multiple Products Total work = 168 sec Lead Time 1.5 days 4.5 days Process Time 168 sec 169 sec Daily Order DAILY OXOX Total work < 168 coils 1.5 days 1.5 days 1 sec

  35. Future State III ACME PC&L MICH. STEEL STATE STREET Daily fax MRP STEEL COILS • 18400 pcs/mo • 12000 LH • 6400 RH • 2 SHIFTS • Min. pack : 20 BIN coil LH coil 20 20 20 RH Weld c/o BATCH daily order 1/day 20 600 LH 320 RH 6 wk. f’cst 20 LH Stamping Shipping 90/60/30 day f’cst WELD + ASSEMBLY 200T 3 RH C/T: 56 sec C/T: 1 sec C/O: 1 hr C/O: 0 Rel: 85% Rel: 98% Weld rel >98% Multiple Products Total work = 168 sec Lead Time 1.5 days 4.5 days Process Time 168 sec 169 sec Daily Order DAILY OXOX Total work < 168 coils 1.5 days 1.5 days 1 sec

  36. WHAT WOULD AN INFORMATION OR AN OFFICE TYPE MAP LOOK LIKE?

  37. Thank you … Remember that this was just a quick taste of How to Build a VSM, How to Read a VSM and What to do with a VSM • Bob Forder • 5S / Lean Coordinator at Deloro Stellite Inc., Belleville • Chairman of the Quinte Manufacturers Association • Owner and Trainer for Learning To See Lean • www.ltsl.ca

  38. The 5S numbers game.

  39. These sheet represents our current work place. • Please do not look at the sheets until asked to do so. • Our job during a 20 second shift, is to strike out the numbers 1 to 49 in correct sequence. Example: 1 2 3 • The team score will be represented by the lowest individual score achieved. • The sheets will be handed out face down and I will keep time. • Each person will call out their individual scores • Turn over sheet 1 Now.

  40. 48 87 45 72 30 33 27 3 69 51 21 24 18 57 9 75 54 78 6 36 63 60 15 12 81 42 39 84 66 90 53 2 68 80 77 86 62 74 29 65 5 41 20 23 35 56 32 89 44 8 83 50 26 47 17 11 38 71 59 14 31 64 49 34 61 7 28 54 40 16 52 58 76 10 22 88 73 85 1 43 4 82 25 13 37 19 67 79 46 70

  41. TEAM SCORE ___________

  42. For our first action, we are going to implement 5S in this area. • The first step of this is “Sort” and so we have removed from the area all the numbers from 50 to 90 which are not needed. • Same rule applies. Strike out numbers 1 to 49 in sequence during a 20 second shift. • Turn over the 2nd sheet now!

  43. 48 45 30 33 27 3 21 24 18 9 6 36 15 12 42 39 2 29 5 41 20 23 35 32 44 8 26 47 17 11 38 14 31 49 34 7 28 40 16 10 22 1 43 4 25 13 37 19 46

  44. TEAM SCORE ___________

  45. Having achieved some improvement, we now need to move onto the next step ”Set In Order”. • We have installed some racking, and we have organized the items so that with Number 1 in the bottom left hand corner, the numbers are located from left to right and bottom to top - examples 1 in the bottom left, 2 in the middle, and 3 in the top left. • Same rules apply 20 second shift, lowest individual score equals team score etc… • Turn over the 3rd Sheet now!

  46. 48 45 30 33 27 3 21 24 18 9 6 36 15 12 39 42 2 29 5 41 20 23 35 32 44 8 26 47 17 11 38 14 31 49 34 7 28 40 16 10 22 1 43 4 25 13 37 19 46