Transcript CAP Tools for Six Sigma Notes

The Lean Enterprise
Value Stream Mapping
Lean Foundations
Continuous Improvement Training
Learning Objectives
The purpose of this module is to present the
foundational principles of Waste Identification and
elimination.
Learn the History and Purpose of
Value Stream Mapping.
Short History
Origins in Toyota, circa1955 – The way of doing business…
Also called “Material and Information Flow Mapping”
Used by Toyota Motors to show both current and ideal states
as part of the lean implementation process
Discussed in “Lean Thinking”
Further developed and
documented by the Lean
Enterprise Institute of
Brookline, Mass.
“Learning to See”
1996
1998
What is the Value Stream?
SUPPLIERS
YOUR PLANT OR BUSINESS
CUSTOMER TO END USER
Total Value Stream
All the actions, both value added and non-value added, currently
required to bring a product from raw materials to the customer.
The Value Stream Perspective
A value stream is all the actions (both value added and non-value
added) currently required to bring a product (or transaction) though the
main flows essential for every product/ service: from raw material/
(customer need), through all the required steps, then – back to the
arms of the customer.
Taking a value stream perspective means working on the
big picture, not just individual processes, and improving
the whole, not just optimizing the parts.
SUPPLY
PARTNERS
YOUR PLANT OF COMPANY
CUSTOMER TO END USER
TOTAL VALUE STREAM
Value Stream Mapping
• Let’s look at an EXAMPLE
Value Stream Map – Operational example
DOWNTIME 15%
REC
STAGE
WIP 870
WIP 696
QTIME
QTIME
72H
8
MELT
903M
INSP
CHEM
Hold
Furnace
Cast
903
LOT 75K
P/T 8H
WIP 8 COILS
120K
P/T 3 HR
15K
WIP
6
8
3
P/T 6N
DOWNTIME 15.5%
INSP
PROFILE
7%
SCRAP
1.
2.
3.
4.
STORE
WIP
746K
QTIME
8 1OK
STAGE
WIP
108K
8HR
Q/T
8
BREAKDOWN
911
LOT 1 COIL
TIME .1
WIP 15K
Map major process steps
I.D. Value (green/ yellow) / Non-value (red)
Capture all times, quantities
Prioritize areas to improve
LEAD
2231.1
VA
210.1
X SHIPPED PER DAY
850K
1.870 WIP BEING WORKED
4.276 WIP BEING STORED
7
Value Stream Map – Big Picture example
MANUFACTURING LEADTIME = 3 1/2 DAYS
CUSTOMER LEADTIME = 2 WEEKS
Prod’n Cont.
12 WEEK FORECAST
Orders
Supplier
Customer
Orders
4 WEEKS
OUT
Daily
OXOX
IRREGULAR
PITCH = 60
MINUTES
1 DAY
2 DAYS
MACHINING
ASSEMBLY
C/T=1568 m
C/O=50 min.
2 SHIFTS
OPER. 48
C/T=936 m
C/O=0 min.
1 SHIFT
OPER. 24
2 DAYS
1568 MINS
TEST
FIFO
936 MINS
900 MINS
FIFO
60 MINS
< 1/2 DAY
900 MINS
C/T=60 m
C/O=30 min.
1 SHIFTS
OPER. 5
FINISH
240 MINS
C/T=210 m
C/O=0 min.
1 SHIFTS
OPER. 6
DISPATCH
FIFO
210 MINS
C/T=30 m
C/O=0 min.
1 SHIFTS
OPER. 2
30 MINS
<2 ENGINES
<2 ENGINES
150 MINS
120 MINS
LT<3 1/2 DAYS
Why do Value Stream mapping?
• To understand the current situation - The
“big picture” point of view (To use as a tool to
improve the whole vs. optimizing the parts…)
• Exposes sources of waste - not just the waste
• Shows linkage between information flow and
material flow
• Forms the blueprint to identify areas of
improvement
What does Value Stream Map do for us?
• It helps visualize more than just the single-process level, i.e.
assembly, welding, etc., in production. You can see the whole flow.
• It helps to see more than waste. Mapping helps to see the sources
of waste in your value stream.
• It provides a common language for talking about manufacturing
(and transactional) processes.
• It makes decisions about the flow apparent, so you can discuss
them. Otherwise, many details and decisions in your area just
happen by default.
• By adding data, it ties together lean concepts and six sigma
techniques, which helps you avoid “pet projects”.
Value Stream Mapping is an Essential Tool
• It forms the basis of an implementation plan. By
helping you design how the whole door-to-door flow
should operate - a missing piece in so many lean
efforts - value stream maps become a blueprint for
improvement. Imagine trying to build a house
without a blueprint!
• It shows the linkage between the information flow
and the material flow. No other tool does this.
Value Stream Mapping is an Essential Tool
• It enhances the quantitative tools and layout
diagrams that produce a tally of non-value added
steps, lead time, distance traveled, the amount of
inventory, and so on.
• Value stream mapping is a qualitative tool by which
you describe in detail how your facility should
operate in order to create flow. Numbers are good
for creating a sense of urgency or as before/ after
measures. Value stream mapping is good for
describing what you are actually going to do to
affect those numbers.
Value Stream Mapping
• Let’s look at an EXAMPLE of Process Mapping
• A good start, but no data, no symbols, no color
coding etc
Process Map w/ Analysis - example
Steel Fabrication Process (Current State)
Can you identify areas for improvement?
Structural
Steel Sawed
Steel
Recd
Steel
stocked
Plate Steel
burned
Parts
Stocked
Weld Shop
Blasting Booth
Sand Bast
Components
machined
Elect/Mech Parts
Recd
Ship to
Customer
Inspection
Parts
stocked
Warehouse
Paint Shop
Shipping
Crating
Mech parts to
Mech Assembly
Staging
Mech
Assembly
Elect parts to
Elect Assembly
Staging
Elect
Assembly
Run Test
Inspection
Books: Learning to See, Lean Thinking
14
Process Map w/ Analysis - example
Steel Fabrication Process (Future State)
Structural
Steel Sawed
Steel
Recd
Plate Steel
burned
Weld Shop
Blasting Booth
Sand Bast
Components
machined
Inspection
All parts to
Assembly
Staging
Elect/Mech Parts
Recd
Ship to
Customer
Paint Shop
Shipping &
Crating
Mech/Elect
Assembly
Inspection &
Run Test
Books: Learning to See, Lean Thinking
15
Impact of “Immediate Opportunities”
The Process Map good place to
start process analysis activities:
• Safety issues resolved first !
• Visible results in areas Kaizened
• “Low hanging fruit” addressed
Product flows more smoothly
through that part of the stream
Many pockets of success …
But –
Process Maps have
limited impact on the
total VALUE STREAM
Many products/ information flows share the
same major steps
Operational Level (SIPOC)
Process Map (functional)
“Value Stream”
Product Family or
Main Process/ Information Flow
(door to door)
Material and Information Flows
In Process Analysis, the information flow
(paper) is treated with just as much
importance as the material flow.
Focus on one product family
or “major line”
or
Administrative Procedure.
Routing Standardization via simplified XY Matrix
Can we identify “Part/ Product Families” ?
PRODUCTS
Assembly Steps & Equipment
1
2
3
A
X
X
X
B
X
X
X
C
X
X
X
D
X
X
X
X
X
E
X
X
X
X
X
4
X
5
6
X
X
X
X
X
X
7
8
9
A Product
Family
X
F
X
X
X
X
X
G
X
X
X
X
X
What will be seen?
Production System
based on Customer pull rate
Just-in-Time
(JIT)
Making
Products at
the Right Time
Based on
When They’re
Sold
People
Autonomation
(Jidoka)
Equipment
Information
Engineering
Stop at Every
Abnormality
Raw Material
Wip / Sub Assy’s
Finished Product
Leveled Production
Document flow of information and material !
Value Stream Mapping (VSM)
builds on Process Mapping
Value Stream Mapping
• Let’s look at an EXAMPLE with data, color codes
etc
Value Stream Map - example
(Current State)
Supplier
Prep
Store
Rec 9000
1 deliver
each
month
Store
C/T 15 min
Batch 12
Req 450 pcs
Stage
Q/T 60 min
50 pcs
Mach
Move
Q/T 480
WIP150
Assy
C/T 5 min
Req 450
Oper 5
Insp
Stage
Dist 285”
8 per day
Insp
C/T 5 min
Req 450
Oper 2.5
Q/T 60 min
50 pcs
Move
Dist 400”
8 per day
Customer
C/T 1 min
Req 450
C/T 8 min
Batch 6
Store
Q/T 480
WIP150
Move
Dist 30”
8 per day
Move
Dist 50”
20 per day
Ship
C/T 85 min
10 Orders
Value Stream Map - example
(Future State)
Customer
Supplier
Supplier
Delivers Daily
Maintains 475
in Kanban
15 pc
10 Replin
Mach
C/T 1 min
Req 450
Kanban
C/T 15 min
Batch 12
Req 450 pcs
Kanban
Kanban
Prep
Ship
Assy
35 Pcs
C/T 5 min
25 Replin Req 450
Oper 5
Store orders
3 Day ahead
of shipping
C/T 75 min
10 Orders
Value Stream Mapping
Best Practices
• Always map in pencil - rough out 1st, clean later.
• Start at the customer and work backwards.
• Don’t be too detailed at first, list major process steps.
• Walk the actual material and information flows yourself.
• Start with a quick walk, to get a feel for the
flow and sequence then, go back and talk
to the right people for each step.
(Don’t forget second and third shifts)
Don’t map the organization. Map
the flows through the organization.
Value Stream Mapping
Best Practices
• Color Code the operations. (Red, Yellow, Green)
• Add cycle time, wait time, travel time, quantities, yields,
inventory, and number of machines/ operators required.
• Always collect ‘current-state’ information while waking along the
actual pathways of material and information flows.
• Map current and future state. (With Timelines and Target Dates)
• Involve the Management team totally.
Don’t map the organization. Map
the flows through the organization.
Value Stream Mapping: Application
Deliverables:
 Map your current process
 On completed Value Stream Map, include:
– Color Code (all Value added operations vs. Nonvalue added operations)
– Document process and cycle times, distances
and units (as best as possible)
 Develop a “Future State” Map (if time permits)
 Provide a prioritized list of potential opportunities
for improvement … i.e. – 7 wastes tagged by
Safety, Quality or Speed of Execution (SQS
categories)
Value Stream Symbols
and Definitions
Addendum
Books: Learning to See, Lean Thinking
28
Material Icons
Represents
Notes
WELDING
ABC
COMPANY
C/T=120 sec.
C/O=22 min.
3 SHIFTS
W/T=20 hrs
3% SCRAP
I
225 pieces
1.5 days
Tuesday
+ Thurs
Manufacturing Process
One box equals an area of continuous
flow. All processes should be labeled.
Box also used to identify departments
such as production control.
Outside Sources
Used to show customers, suppliers
and outside manufacturing processes.
Process Data Box
Used to record information concerning
a manufacturing process, department,
etc.
Inventory
Count and time should be noted.
Truck Shipment
Note the frequency of shipments.
Books: Learning to See, Lean Thinking
29
Material Icons
Represents
Notes
Air Shipment
Create rail or other icons as needed.
Movement of prod’n
material by PUSH
Identifies material movements that are
pushed by producer, not pulled by the
customer ( the following process ).
Movement of finished
goods to the customer
Also shows movement of raw material
and components from suppliers if
they are not pushed.
Supermarket
Physical pull
FIFO
Transfer of controlled
quantities of material
between processes in a
first in first out seq.
Pull of materials from a supermarket.
Indicates a device to limit quantity
and ensure FIFO flow of material
between processes.
Books: Learning to See, Lean Thinking
30
Information Icons
Weekly
Schedule
OXOX
Represents
Notes
Manual flow of
information
For example: production schedule
shipping schedule
Electronic flow of
information
For example: EDI, Fax, etc.
Information
Describes an information flow.
Load leveling
Tool to level the volume and mix
of Kanban over a specific period
of time.
Sequence-Pull Ball
Gives permission to produce a
predetermined type and quantity.
Books: Learning to See, Lean Thinking
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Information Icons
20
Represents
Notes
Production Kanban
Tells a process how many of what
can be produced and gives permission
to do so.
Withdrawal Kanban
Tells a process how many of what
can be withdrawn and gives permission
to do so.
Signal Kanban
Production instruction that orders
production from a batch process,
eg: stamping.
Kanban post
Place where Kanban are collected
and held for conveyance .
Books: Learning to See, Lean Thinking
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General Icons
Lathe
Changeover
Represents
Notes
Kaizen lightning burst
Highlights critical improvement needs
at specific processes. Can be used to
plan Kaizen events.
Buffer or safety stock
“Buffer” or “Safety Stock” must be
noted.
Books: Learning to See, Lean Thinking
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The Lean Enterprise
Value Stream Mapping
Lean Foundations
Continuous Improvement Training