Transcript Lean Event Overview

Value Stream Mapping
Quick Start
Defining A Value Stream
• A series of steps that must be performed in the
proper sequence to create value for a customer
• The complete value stream includes information
flow and product or material flow
• The value stream includes all steps; value-added
and non value-added
If there is a product, service or process for a customer,
there is a value stream.
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Why Value Stream Map?
• Helps you visualize more than just the process level
• Allows you to see the sources of waste
• Define key leverage points for improvements
• Displays linkage between information and material flow
- Admin processes may show linkage between information flow and the
actions that result from the information flow
VSM creates a common understanding of reality and
the improvement possibilities.
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Value Stream Levels
Process Level
Facility Level
(Cell or Department)
Extended Value Stream
Multiple Facilities: (Includes Suppliers & Customers)
Choose the level appropriate for your scope.
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The VSM Process Overview
Current State
Identify key process steps for delivering product/service to customer
Utilize information from “go see” (Gemba) or interviews
Include key metrics with each step
Include lead time and cycle time data
Identify Undesirable Observations (UDO’s)
Determine data gaps that need to be collected
Identify flow of information from end customer to beginning of process
Include systems that provide information
Record the frequency and type of information
If information is your “product” you can identify origin of information
Determine if the Value Stream steps are VA or NVA
Analyze wastes and determine improvements
Develop action plan to make improvements
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7 Steps to Utilizing a Value Stream Map
1.
2.
3.
4.
5.
Identify scope of the Value Stream Map
Identify VSM team lead and participants
Organize and conduct a tour of area to “go see”
Map the high level process and gather key data
Identify the value stream (product/process
alignment and the critical path)
6. Create the Current State Value Stream Map
• Material Flow
• Information Flow
• VA/ NVA classification
7. Identify the Waste
• Identify areas of opportunities for improvement
• Develop an Action Plan to make the improvements
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Step 3: “Go See” the Product/Service
If the process is visible:
• Process map at high level
• Walk the process and record individual process steps, UDOs*, cycle
time, distance, # of people, quality, etc.
• Ask operators questions
• Note metrics, materials, machines, WIP**, finished goods
If the process is not visible:
•
•
•
•
•
•
•
Create detailed process map
Include UDOs, cycle time, distance, # of people, quality, etc.
Provide process map to all operators
Interview employees involved in process
Analyze portions of process which are visible
Utilize VOC surveys to collect key data points
Validate findings with operators
*UDO (Undesirable Observation) – any observation about the process that is not ideal
**WIP (Work In Process inventory) – inventory that is contained in the process
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Step 4: Map the High-Level Process
Example: Generating an estimate for a customer
2 days between processes
Gather
Info
Input Boundary
Analyze
Info
Develop
work-up
30 minute cycle time
Input data
into file
Collect
Sub-quotes
On-Line Tool
6 people involved
Prepare
Estimate
Approval
Meeting
WIP
Output Boundary
• Having 4 to 10 process steps is common
• Review the scope if you have more or less
• Consolidate detailed process steps into higher level value stream steps
• Determine key data to collect, WIP, Distance, Time, # of people, quality, etc.
• Capture any variation within the process
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Step 4: Identify Key Data Elements
Example: Generating an estimate for a customer
Gather
Info
Cycle Time:
Analyze
Info
Who:
Missing data to
be collected
prior to VSM
9
24 hrs
2 hrs
48 hrs
1
Transport:
WIP:
Input data
into file
4 hrs
Wait Time:
# of People:
Develop
Takeoff
2
1
1
8 hrs
Ops
4
Sales/Ops
Approval
Meeting
8 hrs
2
Phone
2
Prepare
Estimate
2 hrs
24 hrs
Manual
2
Collect
Sub-quotes
6
E-mail
3
Sales/Ops
E-Mail
3
Sales
Sales
• If data not available, use averages based on operators assessment
• Check old records, files, reports, etc.
• Additional data collection by surveys/interviews
• Finalize data during the “Identify Materials Flow” step
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Step 5: Identify the Value Stream
• Determine critical path and area for improvement
“Whenever there is a product for a customer, there is a
value stream. The challenge lies in seeing it.”
Learning to See by Rother and Shook
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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
Step 6: Create the Current State VSM
• Map the Material Flow
• Map the Information Flow
• Classify VA and NVA activities
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VSM Symbols
FIFO
Information
First in
First out control
max 10
People
required
Things pulled
by next process
Electronic
Information
Things pushed
to next process
I
Waiting
Transport
Pull system
Paper trigger
Pull system
Returnable
container
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Inventory
Pieces
In
InputBasket
Out
OutputBasket
Step 6: Map the Materials Flow
No
Process
No
standard
work
Cycle Time:
Gather
Info
Analyze
Info
Develop
Takeoff
Input data
into file
Collect
Sub-quotes
Prepare
Estimate
Approval
Meeting
4 hrs
8 hrs
24 hrs
2 hrs
4 hrs
2 hrs
2 hrs
Wait Time:
# of People:
Too many
people
8 hrs
48 hrs
1
2
Transport:
Manual
8 hrs
1
Manual
WIP:
2
2
Who:
Sales
Ops
24 hrs
1
E-mail
4
Sales/Ops
8 hrs
2
Phone
1
Sales/Ops
2
E-mail
Push
• Material flows from left to right
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E-Mail
2
3
Sales/Ops
Sales
Sales
• Include all key data for each process step
• Include UDOs
6
3
• Come to agreement on process steps as a team
UDO
8 hrs
Step 6: Map the Information Flow
Sales Funnel
Sales
Database
Customer
Leader
1-5 days
75 Estimates
per month
Sales
Estimator
Representative
2-5 days
• Information should flow right to left, always starting with customer
• Cycle times can be averages or ranges
• The more detail you include, the more waste you will see
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Step 6: Identify VA & NVA
Sales Funnel Database
Sales Leader
Customer
1-5 days
75 Estimates
per month
Sales Representative
Estimator
2-5 days
No
Process
No
standard
work
Gather
Info
Analyze
Info
4 hrs
8 hrs
8 hrs
# of People:
1
Transport:
Develop
Takeoff
24 hrs
48 hrs
2
Manual
2
2
1
Who:
Sales
Ops
VA/NVA
VA
NVA
Sales/Ops
VA
Prepare
Estimate
Approval
Meeting
4 hrs
2 hrs
2 hrs
24 hrs
1
8 hrs
8 hrs
2
E-mail
4
Collect
Sub-quotes
2 hrs
8 hrs
Manual
WIP:
Input data
into file
Too many
people
Phone
1
2
E-mail
E-Mail
3
Sales/Ops
NVA
Sales/Ops
2
3
Sales
Sales
NVA
NVA
NVA
• Customer cares
• Changes form, fit or function
• Correct
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Step 7: Use the VSM to Identify Waste
• Identify areas of opportunities for improvement
• Develop an action plan to make the improvements
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Step 7: Use the VSM to Identify Waste
Sales Funnel Database
Customer
Sales Leader
1-5 days
Sales
Representative
Estimator
2-5 days No
No
Process
standard
work
Gather
Info
Analyze
Info
4 hrs
1
2
4
Sales/Ops
VA
2 hrs
2 hrs
2
Phone
1
Sales/Ops
NVA
• Cycle times too long
3
Sales/Ops
NVA
8 hrs
2
E-mail
6
E-Mail
2
Sales
NVA
3
Sales
NVA
Time Value Map
• Too much “queue time” between steps
• No process standardization
• Transportation issues
• Too many people involved in Approval
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Approval
Meeting
8 hrs
1
E-mail
Prepare
Estimate
4 hrs
24 hrs
1
Too
many
people
Collect
Sub-quotes
2 hrs
8 hrs
Manual
2
Ops
NVA
Input data
into file
24 hrs
48 hrs
Manual
2
Sales
VA
Develop
work-up
8 hrs
8 hrs
# of People:
Transport:
WIP:
Who:
VA/NVA
75
Estimates
per month
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43 days
Step 7: Identify Areas of Improvements
• Improvements should be made based on waste
analysis identified during VSM activity.
• Example: Opportunities identified in the
Generating an Estimate for a Customer VSM :
- Create standard work for operators to follow
- Develop “templates” to use when “Developing Quotes”
- Remove NVA steps when possible
- Streamline information flow from Customer to Estimator
- Mitigate interruptions to “flow” estimate (reduce queue
time)
- Improve policies with Sales to obtain timely quotes
- Reduce the number of people required for the “Approval
Meeting”
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Step 7: Create An Action Plan
• Action plans are critical to successfully implementing
VSM improvements
• Determine improvement projects, schedules and
owners
- Immediate improvements (2 - 5 days): Kaizen Events
- Medium term improvements (3-6 months): Lean/ GB projects
- Long term improvements (6+ months): Lean Expert/ BB
projects
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Step 7: Create An Action Plan
• Identify the high impact improvements and long
term and short term actions
high
Sweet Spot
High Hard
Just Do It
Don’t Do
Impact
low
high
Effort
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Value Stream Mapping
Quick Start