Transcript Value Stream Mapping

VSM001
Value Stream Mapping
Value Stream Mapping
Day 1
Value
Mapping
Stream
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Introductions
Jan Vlasak
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Agenda
• Current State Map
• Future State Map
• Value Stream Plan
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Agenda
Day 1:
Topic/Activity
Opening
Introduction
Goals of Workshop
Review of Lean Principles
Break
Introduction to Value Stream
Current State Map
Exercise 1 – Customer Loop
Lunch
Report-outs
Exercise 2 – Internal Loop
Report-outs
Break
Exercise 3 – Supplier Loop
Current State Report-outs
Opportunities In Future State
Example Future State Map
Adjourn
Time
8:00 AM
8:15 AM
8:30 AM
8:35 AM
9:00 AM
9:20 AM
10:05 AM
11:00 AM
12:00 AM
12:45 PM
1:00 PM
2:25 PM
2:40 PM
2:55 PM
3:45 PM
4:05 PM
5:00 PM
5:45 PM
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Agenda
Day 2:
Topic/Activity
Time
Introduction Day 2
Exercise 4 – Customer Loop
8:00 AM
8:15 AM
Break
Report-outs
9:30 AM
9:45 AM
Exercise 5 – Internal Loop
Report-outs
10:00 AM
11:45 AM
Lunch
Exercise 6 – Supplier Loop
12:00 AM
12:45 PM
Obstacles
Value Stream Plan
1:30 PM
2:00 PM
Exercise 7 - VSP
Final Report-outs
2:15 PM
3:00 PM
Break
The Value Stream Team
3:45 PM
4:00 PM
Closing Comments
4:15 PM
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Company Strategy
• Growth
• Competitive Position
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Cost Reductions
• Customer Price
• Labor Inflation
• Increase Earnings
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Keys to Lean Production
• Work Place Organization
• JIT Production
• Six Sigma Quality
• Empowered Teams
• Visual Management
• Pursuit of Perfection
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Key Factors for Lean Success
• Strategic Vision
• Strong Line Management Leadership
• Expert Training and Support
• Aggressive Performance Targets and Tracking
• Impatience
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“Becoming the Best”
• The Answer;
• Develop a Deep Understanding of Our Processes at
their Broadest Levels and Not Just Continue to
Improve Individual Work Units
• Working Together to Add Value to our Company
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Our Needs
• Tools to Support Linkages Between Processes
• Emphasis on Processes and Systems
• Horizontal Organization Based on Teamwork
• Leadership and Followership
• Commitment and Involvement
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Performance
• Operational Performance Determines Financial Results
• Lean Enterprise Is the Key to Successful Operational
Performance
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The AM of Tomorrow
• Complete Understanding of Lean Principles
• Commitment and Discipline to Live by these Principles
• Sense of Urgency to Exceed the Targets and
Deadlines
• Commitment to Strive for Perfection
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Potential Benefits
• Inventory Reduction
• Quality Improvement
• Productivity Improvement
• 12% Reduction in Overall Cost
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Why are we Here?
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Goals of the Workshop
•
•
•
•
•
•
L earn to See
E stablish a Plan
A ct on Opportunities
D rive Change
E nable Teams
R educe Lead Time
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Think Lean
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Waste
• Waste is Only the Symptom of a Deeper Problem
• Focus on the Source Rather than the Symptom
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Overproduction
Parts
Parts
Parts
Parts
Parts
Parts
Parts
Parts
• Definition:
• Producing More than Needed
• Producing Faster than Needed
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Takt Time
Available Work Time
Customer Demand
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One Piece Flow
Make One, Move One!!!
Process Process Process Process
A
B
C
D
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Pull System
“Production” KANBAN
“Withdrawal” KANBAN
Customer
Process
Supplying
Process
Product
Product
Supermarket
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Selecting the Point of Pull
P
O
P
Process
A
Process
B
Process
C
Process
D
FLOW
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Why Small Lots?
• Drive C/O Time Reduction
• Flexibility
• Reduce Inventory
• Reduce Lead Time
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Leveling
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A Brief Introduction to
Value
Mapping
Stream
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The Improvement Process
• Employee Involvement
• Training and Development
• Model Work Unit
• 20 Keys Assessment
• Traditional
• Learning
• Leading
• World Class
• Best in Class
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Results
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Improvement on all work units since introduction of
the AM Performance System
Factor
Improvement
PPM .…………………………….. 91.3 %
Scrap ……………………………. 57.6 %
Training hrs./Employee ………...182.2 %
Suggestions/employee ……..…. 347.5 %
Labor cost % of sales ……….… 36.4 %
WIP hours ………………………. 91.6 %
Changeover time …………….… 72.5 %
Lead time ……………………….. 87.0 %
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Production Space = 30%
Entrance
R Cut
Draw
Draw
Operator 1
Operator 2
Exit
F/A
Spin
Spin
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Opportunities = 70%
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Why???
•Opportunities in Work Units
Vs.
•Opportunities between Work
Units
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F
L
O
W
Stamping
C/T = 4 Sec.
Sub-Assembly
C/T = 60 Sec.
Final Assembly
C/T = 60 Sec.
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The Next Chapter in
AM’s Success Story
Value Stream Mapping
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What is a Value Stream?
All the Actions Involved in Making a Part
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Establishing Flow
Information
Production Flow
Material
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Elimination of Waste
A Broadened Perspective
• Identify and Target the Source of Waste in the Entire
Value Stream, rather than Just the Work Unit
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Adding Value
• Establishing the Vision
• Reducing the Lead Time
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Benefits of Value Stream Mapping
• Big Picture Approach
• Links Material/ Information Flow
• Team Growth
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Visionary Tool
• Planning
• Communication
• Implementation
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The Current State Map
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Sub-Assembly
Supplier
Stamping
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Finished Goods
Inventory
C/O Time
Down Time
Takt Time
Customer
Assembly
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The Future State Map
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A Lean Stream!!!
Sub-Assembly
Finished Goods
Inventory
Cycle Time
C/O Time
Down Time
Stamping
Final Assembly
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Annual Value Stream Plan
• This Plan Visually Displays:
• Step-by-Step Implementation Plan
• Measurable Goals
• Clear Checkpoints with Listed Deadlines, Ownership, and
Named Reviewers
• The Value Stream Plan will Play a Fundamental Role in
the Optimization of your Value Stream
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Management’s Role
• See Overall Flow
• Develop the Vision
• Lead Implementation
• Support EI Teams
• Make Sure Everyone Understands!
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Management’s Commitment
• Eliminate Overproduction
• Support Lean Principles
• Willingness to Take Risks
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“Whenever there is a product for a customer there is a value
stream
The challenge lies in seeing it”
AM
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The Current State Map
Practice Makes Perfect
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It’s Time to Practice
• At this Time Please Read through the Example Data Set
for General Exhaust
• We will Begin Drawing the Example Current State Map
in Just a Few Minutes
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Data Set for General Exhaust
• Customer
• General Auto
• Customer Information
• 20,000 pieces per month
• Container size = 300 pieces
• Customer operates on two shifts
• Two deliveries to customer per week
• General Auto
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Data Set for General Exhaust
(continued)
• General Exhaust Production Control Department
• Electronically receives General Auto’s 13 week forecast
and enters into MRP
• Electronically issues 13 week forecast to General
Components
• Receives daily firm order fax from General Auto
• Secures components through daily fax to General
Components
• Generates daily departmental schedule based on MRP
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Data Set for General Exhaust
(continued)
• Production Process:
• Sub-Assembly 1
Sub-Assembly 2
Final Assembly
• Work Time:
• 20 Days per months
• 2 shifts in all production departments
• 8 hours per shift
• 2 ten minute breaks per shift and unpaid lunch
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Data Set for General Exhaust
(continued)
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• Final Assembly
• 3 operators
• Takt Time = 55.2 seconds
• Cycle Time = 55 seconds
• Total Work Content = 146 seconds
• Changeover Time = N/A
• Uptime = 85%
• Observed Inventory
• .75 Days work in progress
• 3.5 Days finished goods
• Shipped to truck from final assembly finished goods
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Data Set for General Exhaust
(continued)
• Sub-Assembly 2
• 3 operators
• Takt Time = 55.2 seconds
• Cycle Time = 55 seconds
• Total Work Content = 130 seconds
• Changeover Time = N/A
• Uptime = 90%
• Observed Inventory
• .5 Days work in progress
• 1 Day finished goods
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Data Set for General Exhaust
(continued)
• Sub-Assembly 1
• 1 Operator
• Takt Time = 27.6 seconds
• Cycle Time = 24 seconds
• Total Work Content = 24 seconds
• Changeover Time = 30 minutes
• Uptime = 97%
• Observed Inventory
• 2 days raw material
• .25 days work in progress
• 1 day finished goods
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Data Set for General Exhaust
(continued)
• Supplier
• General Components
• Supplier Information
• Stampings
• Delivery to General Exhaust
• (1) time per day
• Container size = 300 pcs
• Two shift operation
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Always Start With the Customer!!!
Work Upstream from There
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What to Look For...
• Information Flow from the Customer
• Forecasts
• Firm Order
• Instruction to Produce
• Movement of Material
• Inventory
• Future Opportunities!
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Exercise 1: Customer Loop
• Walk through the Entire Process (Upstream)
• Sketch Value Streams for the Customer Loop
• Gather Data for the Customer Loop Worksheet
• Capture Information Flow
• Return to Room
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Worksheet
Exercise 1: Customer Loop
1. Who are the customers and where are they located?
2. How many pieces does the customer require per month?
3. What is our delivery frequency?
4. What is the container size (pieces per container)?
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Worksheet
Exercise 1: Customer Loop
5. How many shifts does the customer run?
6. In detail, describe how customer orders are placed
(Kanban, MRP, forecasts, firm orders, etc.)
7. Where is the point of pull?
8. How much finished goods inventory did you find (count it!)?
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Worksheet
Exercise 1: Customer Loop
9. Does any safety or buffer stock exist?
10. How is buffer and safety stock distinguished from
finished goods inventory?
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11. Map the Material and Information Flow
Customer Loop
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Report Outs
Customer Loop
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What We’ve Accomplished
• Understanding Customer Requirements
• Established Current State of Information and Material
Flow
• Have Started to Think About Future Opportunities
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Internal Loop
• Tie the Customer Loop to Internal Processes
• Establish the Relationship between Internal Processes
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What to Look For...
• Define Plant Level Processes
• Data Box Information
• Takt Time, # of Operators, C/O Time, Work Unit Cycle
Time, Total Work Content, Uptime %, # of Shifts,
Available Operating Time
• Capture All Inventory
• What Initiates Production?
• Future Opportunities!
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Exercise 2: Internal Loop
• If Needed, Walk through the Entire Process (Upstream)
• Sketch Value Streams for the Internal Loop
• Gather Data for the Internal Loop Worksheet
• Capture Information Flow
• Return to room
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Worksheet
Exercise 2: Internal Loop
1. Define the processes involved in the production of the part
from a plant level (bird’s eye) perspective.
Ex. Stamping Work Unit Sub-Assembly Final Assembly
2. For each of the plant level processes find the Takt Time,
# of Operators, Work Unit Cycle Time, Total Work Content,
Changeover Time, Uptime %, Number of Shifts, Available
Operating Time (in seconds).
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Exercise 2: Internal Loop
3. For each of the plant level processes count and calculate
the finished goods, work in progress, and raw materials
inventory.
4. How do the production work units know when and what to
produce? (Be very specific about this process)
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5. Map the Material and Information Flow
Internal Loop
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Report Outs
Internal Loop
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What We’ve Accomplished
• Understand Relationship between Internal Processes
• Current State of Information and Material Flow
• Identified Future Improvement Opportunities
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Supplier Loop
• Tie Internal Loop to Supplier
• Understand Flow of Information and Material
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What to Look For...
• Capture All Inventory
• Establish Current Information and Material Flow
• From Storage to the Work Unit
• From Supplier to Storage
• Understand Raw Material and Component
Requirements
• Future Opportunities!
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Exercise 3: Supplier Loop
• If Needed, Walk through the Entire Process
(Upstream)
• Sketch Value Streams for the Supplier Loop
• Gather Data for the Supplier Loop Worksheet
• Capture Information Flow
• Return to Room
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Worksheet
Exercise 3: Supplier Loop
1. Supplier Info?
Supplier
Part #
# of
Shifts
Delivery
Frequency
Amount of
Supplier Inventory
Quantity per
Container
Additional Comments:
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Exercise 3: Supplier Loop
2. Describe in detail how we decide we need more material
and how we inform our supplier of our needs (MRP,
Kanban, Forecasts, Firm Orders).
3. How do we decide how much raw material inventory we
need?
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4. Map the Material and Information Flow
Supplier Loop
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Report-Outs
Current State Map
(Putting It All Together)
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The Future State Map
Practice Makes Perfect
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It’s Time to Practice
• Please Review the Example Current State Map
• We will Begin Drawing the Future State Map Shortly
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Opportunities in Containerization
• Small Container Quantity
• Increases Flexibility
• Reduces Customer Fluctuation
• Overall Benefit
• Reduces Inventory Dollars
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Takt Time
Takt Time =
Available Operating Time
Pieces
=
28,800” - 1,200”
500 pcs
=
55.2” per piece
Sets Pace of Production to Match Customer Demand
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Effects of Container Size
• Current State Example
(takt time * container size) = min per container
60 seconds
(55.2” * 300 pieces)
276 minutes
60 seconds
60 minutes
(4 hrs 36 m)
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Effects of Container Size
• Future State Example
(takt time * container size) = min per container
60 seconds
(55.2” * 25 pieces) = 23 min
60 seconds
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Container Size
Small Containers = Improved Flexibility
Delivery Frequency
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Fluctuation Caused by Container Size
1300
1250
1200
1150
1100
1050
1000
950
900
850
800
Produce
Order
0
1
2
3
4
5
6
7
8
9
10 11 12 13
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Fluctuation Caused by Container Size
1300
1250
1200
1150
1100
1050
1000
950
900
850
Produce
Order
800
0
1
2
3
4
5
6
7
8
9
10 11 12 13
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Opportunities in Delivery Pitch
• Even Delivery Pitch
• Drives Constant Takt Time
• Reduces Fluctuation
• Overall Benefit
• Reduction in Inventory
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Time between shifts
Pick-Up
(2,500 pcs/truck)
7:00 am Wednesday
7:00 am Friday
Truck 1 = 2,760’
W
60
min
Truck 2 = 1,840’
Takt
460 min
460 min
400 min
460 min
460 min
460 min
400 min
460 min
T
= 66.24”
= 110,400”
460 min
M
= 165,600”
Takt
460 min
Th
60
min
= 44.16”
F
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Opportunities in Kanban
• Pull System
• Links Production to Customer Demand
• Aids in Visual Control
• Identifies Opportunities for Improvement
• Overall Benefit
• Improves Material Control
• Prevents Overproduction
• Reduces Inventory
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Pull System
“Production” KANBAN
“Withdrawal” KANBAN
Customer
Process
Supplying
Process
Product
Product
Supermarket
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Selecting the Point of Pull
P
O
P
Process
A
Process
B
Process
C
Process
D
FLOW
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Opportunities in Leveling
• Leveling Post
• Reduces Customer Demand Fluctuation
• Reduces Delivery Pitch Fluctuation
• Pulls Product Based on Takt Time
• Overall Benefits
• Eliminates Scheduling
• Levels Customer Demand
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Forecast
Week
1
Part A
5300
Average 5000
Difference 300
2
4700
5000
-300
3
5200
5000
200
4
4800
5000
-200
Average
5000
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Customer Fluctuation
5400
Part A
Average
5200
5000
4800
4600
0
1
2
3
4
5
week
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Leveling Post
Average
1000
Avail. Sec
55,200
Takt Time
55.2
Container Size
25
# Containers
40
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Buffer
Part A
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Opportunities in Takt Time Production
• Takt Time Post
• Produce to Takt Time
• Enables Visual Management
• Prevent Overproduction
• Overall Benefits
• Identifies Labor Opportunities
• Lowers Inventory
• Eliminates Scheduling
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Takt Time Post
6
1st Shift 0
0
6
0
6
6
1
2
6
1
8
6
2
4
6
3
0
6
3
6
6
4
2
6
4
8
6
5
4
7
0
0
7
0
6
7
1
2
7
1
8
7
2
4
7
3
0
Part A
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Opportunities in the Work Units
• Uptime
• TPM
• BOS Charting
• Team Problem Solving
• Overall Benefits
• More Capable Processes
• Employee Involvement
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Track Downtime and Improvement Activities on BOS Chart
Key Measurable
– Target
– Trend Line
Data Analysis
– Pareto
Improvement
Activities
Improvement
Tracking
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Opportunities in and between Work Units
• Continuous Improvement Tools
• Standardized Work
• Work Balance
• Bottleneck Improvements
• Overall Benefits
• Adding Value/ Removing Waste
• Improving Flexibility
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Work Balance
Current State
Sub-Assembly 2
Final Assembly
60
60
50
50
40
40
Walk
30
wait
30
Walk
20
20
Manual
10
0
Manual
10
0
1
2
3
1
2
3
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Work Balance
Future State
Final Assembly
60
50
40
30
20
10
0
Walk
Manual
1
2
3
4
5
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Opportunities in and between Work Units
• Pull System
• Withdraw Only What you Need
• Replenish What is Taken
• Overall Benefits
• Flexibility in Production
• Prevents Overproduction
• Reduces Inventory
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Pull System
Assumptions:
• Production Schedules Will Always Change
•
•
Production Will Never Go According to Schedule
It Is Human Nature to Overproduce
Withdrawal
Kanban
Production
Kanban
Preceding
Process
Store
New Product
Following
Process
Needed Product
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Opportunities in and between Work Units
• Changeover
• Decrease Changeover Time
• Increase # of Changeovers
• Drive Small Lot Production
• Overall Benefits
• Flexibility in Production
• Reduction in Inventory
• Better Inventory Turns
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CHANGEOVER Work Unit__________ SHIFT_____
AVG.
GOAL
18.0
16.0
14.0
MINUTES
12.0
10.0
8.0
6.0
4.0
2.0
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15
16
17
18
19
20
21
22
23
24
25
12
11
10
9
8
7
6
5
4
3
2
13
LAST
1996 YTD MO
1
LAST MO
YTD
1996
-
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15
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18
19
20
21
22
23
24
25
DAY
1
2
3
4
5
6
7
8
9
10
11
12
C/O #1
C/O #2
C/O #3
C/O #4
C/O #5
C/O #6
C/O #7
C/O #8
AVG.
16.3 14.7 13.2
18.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
GOAL
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Type of Activity
PLANT EXERCISE
No. Description
VIDEO TAPE ANALYSIS
Start Time
of Activity
H/M/S
End Time
of Activity
H/M/S
Activity Described
1
2
3
4
5
Elapsed
Time for
Activity
Seconds
Can be made ext. immediately
Obvious waste - remove immediately
Transfer to ext. after improvements
Adjustment activity
Remaining activity for Continuous Improvement
Check Type of
Activity
1
2
3
4
Proposed Solution
Resulting
Elapsed
Time
5
110
3
6
3
6
1
Game
Board
5
Supply Table
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4
5
4
2
1
Tool
Storage
Die
Storage
Dance Chart Example
Paper
Storage
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Opportunities in the Supplier Loop
• Supplier Development
• Identify Key Suppliers
• Reduce Container Size
• Increase Delivery Frequency
• Kanban!!!
• Overall Benefit
• Inventory Reduction
• Cost Reduction
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The Future State Map
It is Time To Draw
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Value Stream Mapping
Day 2
Value
Mapping
Stream
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Exercise 4: Customer Loop
• Step 1
• Review Takt Time Calculation
• Step 2
• Opportunities with Containerization
• Effect of Container Time
• Fluctuation due to Container Quantity
• Future State Proposal for Container Quantity
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Exercise 4: Continued
• Step 3
• Opportunities with Customer Pull Timing
• Identify Delivery Pitch
• Calculate Inventory Held Due to Pitch
• Future State Delivery Frequency/Timing
• Step 4
• Opportunities with Leveling
• Calculate Leveling Post
• Develop Point of Pull
• Future State Leveling System
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Exercise 4: Continued
• Step 5
• Opportunities in Takt Time Production
• Determine Kanban Delivery Frequency to Cell
• Future State Takt Time Post
• Step 6
• Map the Future State Customer Loop
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Worksheet 1
Takt Time Calculation
1. Formula:
Takt Time =
Available Operating Time
Pieces
2. Takt Time Results:
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Worksheet 2
Opportunities with Containerization
1. Effect of container time:
2. Fluctuation due to container quantity (Graph):
3. Future state proposal for container quantity
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Worksheet 3
Opportunities with Customer Pull Timing
1. Identify delivery pitch:
2. Calculate inventory held due to pitch:
3. Future state delivery frequency and timing:
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Worksheet 4
Opportunities with Leveling
1. Calculate leveling post:
2. Develop point of pull:
3. Future state leveling system:
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Worksheet 5
Opportunities in Takt Time Production
1. Determine kanban delivery frequency to the work unit:
2. Future state takt time post:
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Worksheet 6
Map the Future State Customer Loop
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Report-Outs
Future State Map
Customer Loop
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Exercise 5: Internal Loop
• Step 1
• Are BOS Charts Being Used?
• Identify the Main Causes of Downtime
• What Steps Can We Take to Achieve Best-in-Class Levels
of Uptime (97%)?
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Exercise 5: Continued
• Step 2
• Identify Manual and Walk Time
• Identify any Bottlenecks
• Calculate Labor Requirements
• Does this Labor Requirement Reflect what You
Witnessed on the Line?
• Do Opportunities Exist to Combine Work Units in the
Value Stream Based on Labor Requirements?
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Exercise 5: Continued
• Step 3
• Map the Future State Internal Loop
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Worksheet 1
Uptime %
1. Are BOS charts being used?
2. Identify the main causes of downtime:
3. What steps can we take to achieve Best-in-Class
levels of uptime (97%)?
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Worksheet 2
Standardized Work
1. Identify manual and walk time:
2. Identify any bottlenecks:
3. Calculate the labor requirements:
4. Does this labor requirement reflect what you
witnessed on the line?
5. Do opportunities exist to combine work units in the value
stream based on labor requirements?
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Worksheet 3
Map the Future State Internal Loop
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Report-Outs
Future State Map
Internal Loop
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Exercise 6: Supplier Loop
• Step 1
• Opportunities with Kanban
• Are Parts Ordered Based on Usage?
• Are Supplier Kanbans Being Used to Order Parts?
• Are Move Cards Used to Deliver Raw Materials to the Work
Units?
• Step 2
• Opportunities with Delivery Frequency
• Can Inventory be Reduced with an Increase in Delivery
Frequency?
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Exercise 6: Continued
• Step 3
• Opportunities with Containerization
• Do Component Container Sizes Match Finished Goods
Container Size?
• Step 4
• Map the Future State Supplier Loop
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Worksheet 1
Kanban
1. Are parts ordered based on usage?
2. Are Supplier Kanbans being used to order parts?
3. Are move cards used to deliver raw materials to the
work unit?
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Worksheet 2
Delivery Frequency and Containerization
1. Can inventory be reduced with an increase in delivery
frequency?
2. Do component container sizes match finished goods
container sizes.
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Worksheet 3
Map the Future State Supplier Loop
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Report-Outs
Future State Map
Supplier Loop
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Understanding the Future State
Drawing the Map
• Put Pencil to Paper!!!
• Remember:
• Start with the Customer
• Include Material and Information Flows
• Data Boxes!!!
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Report-Outs
Future State Map
(Putting Opportunities Together)
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Implementation
Making the Future State
a Reality
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Continuous Improvement Cycle
• Plan
• Developing the Improvement Plan
• Do
• Support the Implementation
• Check
• Analyze the Results
• Act
• Standardize the Process
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How Do We Implement?
• Break Implementation Into Steps
• Customer Loop
• Internal Loop
• Supplier Loop
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...How Do We Implement...
• Develop Implementation Packet
• Current State Map
• Future State Map
• Supporting Documentation (Standard Work Studies, etc.)
• Value Stream Plan
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Value Stream Plan
• The Plan Visually Displays:
• Step-by-step Implementation plan
• Measurable Goals
• Clear Checkpoints with Listed Deadlines, Ownership, and
Named Reviewers
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Key Points for Planning
• Produce to Takt Time
• Eliminate Overproduction
• Pull Product Based on Customer Demand
• Kanban
• Point of Pull
• Leveling
• Establish Continuous Flow
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Outline the Plan
• For Each Value Stream Loop
• Establish the Objectives
• Determine the Measurable Goal
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Plant Level Objective
Goal
Reduce lead-time
Measurable
9 Days to 4 Days
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Customer Loop
Goal
Measurable
Decrease Container Quantity
300 Pieces to 25 Pieces
Increase Delivery Frequency
2 per Week to 1 per Day
Finish Goods Pull System
Inventory
1.75 Days of F/G
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Internal Loop
Goal
Measurable
Increase Uptime %
Best in Class - 97%
Establish Continuous Flow
(0) Inventory Between Work Units
Reduce Changeover Time
(30) to (15) Minutes
Internal Pull System
Production/Move Cards
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Supplier Loop
Goal
Measurable
Implement Kanban
Supplier Cards
Increase Delivery Frequency
4 times per Day
Decrease Container Quantity
300 Pieces to 25 Pieces
150
Yearly Value Stream Plan
Date:
Champion:
Plant-Level
Objective
Value Stream
Loop
Loop
Value Stream
Objective
Goal
(Measurable)
Specific Scheduling Deadlines
(on Monthly Basis)
VSM001
Value Stream Mapping
Product Family:
Owner
Reviewer and
Review Dates
1 2 3 4 5 6 7 8 9 10 11 12
1
Customer
2
Internal
3
Supplier
151
Date: 10/29/99
Champion: Bill
Green
Plant-Level
Objective
Yearly Value Stream Plan
Value Stream
Loop
Value Stream
Objective
Goal
(Measurable)
Loop
300 to 25
1
Customer
2
Internal
3
Supplier
Sub-Muffler
Owner
Reviewer and
Review Dates
1 2 3 4 5 6 7 8 9 10 11 12
Dec Cont. Qty.
Reduce
Finished Goods
Inventory
Specific Scheduling Deadlines
(on Monthly Basis)
VSM001
Value Stream
Mapping
Product Family:
Inc. Del. Freq.
2 /wk to 1/D
FG Pull System
1.75 Days
Finished
Goods
Inc. Uptime %
BIC 97%
Cont. Flow (S/A
2 to F/A)
0 Inv. Between
work units
Reduce C/O
Time
15 minutes
Int. Pull Sys.
Prod. Move
Cards
Kanban
Supp. Cards
Inc. Del. Freq.
4/Day
Dec. Cont. Qty.
300 to 25
Gold
Team
Joan Smith
2/28/00
4/15/00
5/29/00
Blue
Team
John Doe
5/30/00
7/30/00
8/30/00
Red
Team
Jim Smith
9/30/00
10/15/00
12/30/00
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Exercise 7: Value Stream Plan
• Step 1
• Develop Value Stream Plan
• Step 2
• Discuss Roadblocks to Implementation
• How Do We Eliminate Roadblocks
153
Yearly Value Stream Plan
Date:
Champion:
Plant-Level
Objective
Value Stream
Loop
Loop
Value Stream
Objective
Goal
(Measurable)
Specific Scheduling Deadlines
(on Monthly Basis)
VSM001
Value Stream Mapping
Product Family:
Owner
Reviewer and
Review Dates
1 2 3 4 5 6 7 8 9 10 11 12
1
Customer
2
Internal
3
Supplier
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Report-Outs
The Value Stream Plan
(Putting Ideas Into Action)
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The Value Stream Team
Prepare the organization to see
opportunities for improvement and turn
those opportunities into reality
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Identify the Value Streams
• End of the Chain
• Completion of the final product
• Next move is to the Customer
• Move Upstream
• Identify the internal suppliers
• Final step is supplied parts
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Choose the Model
• Practice Makes Perfect!
• Begin with the less complicated
• Move to the more difficult
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Establishing the Team
• Selecting the Team
• Who are the people in the value stream
• What type of resources are required
• Function of the Team
• Analyze Value Stream Together
• Hold Frequent Meetings to Monitor Progress
• Eliminate Obstacles Together
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Transfer the Knowledge
• Start the Process
• Check Understanding
• Current State Map
• Clear Up Confusion
• Future State Map
• Get Commitment
• Develop the Plan
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Things to Remember
• Benchmark the Current Condition
• Dedicate the Resources
• Monitor the Progress
• Evaluate the Results
• Celebrate Success
• Continue the Pursuit of Perfection!!!
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Be
Impatient!
162