Transcript Lead Time.ppt

Lead Time Reduction
Purpose of Lead Time Analysis
• To document all steps in a process
• To quantify the time and distance of each step in a
process
• To identify where value is being added to the process
• To understand how non-value added activities drive cost
in a process
• To learn that reducing Lead Time contributes directly to
improving Q,S,T, P and Customer Satisfaction.
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Lead Time - Oil Change
Car Dealer A
Car Dealer B
Quick Lube
• Call: make appointment
• Take car in
• Write up order
• Wait for shuttle
• Call: See if car is done
• Get ride back to dealer
• Check with service
• Pay cashier
• Look for your car
• Check oil
• Drive away
• Drive into lube area
• Write up order
• Pay cashier
• Wait
• Pick up car
• Drive off
• Drive into lube area
• Write up & pay while
oil is being changed
• Pay cashier
• Drive off
Traditional
• 8 Hours
Improved
• 29 Minutes
Ideal
• 10 Minutes
Lead Time Reduction
Eliminates waste because the more time it
takes to complete a product or service:
Cost
Quality
Lead Time
Definition:
Total time required to complete one unit of a
product or service.
Lead Time
Start
Finish
Every Process Has a Lead Time
• Business plan development
• Painting process
• Tool & die manufacturing
• Stamping operation
• Building a house
• Income tax refund
• Servicing your car
• Receiving materials and building customer products
• Banking process
• Grocery shopping
Lead Time Reduction
Graphic Tool Process
Directions for use of graphic tool:
The Lead Time Reduction Process:
1. Identify the product/service you provide.
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2. List all steps required to complete product, from start to
finish.
3. Identify time now required to complete each step.
4. Identify steps that add value to the product.
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5. Graph process (see graphic tool ex. to right).
6. Analyze & eliminate time needed for non-value added
(“NVA”) steps.
• Make one box for each step
• Make box height roughly proportional to
time required for step
• Put “VA” boxes on left
• Put “NVA” boxes on right
• Put boxes in correct order
• Label boxes (name of step and time
required)
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7. Analyze & reduce time needed for value-added (“VA”)
steps.
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8. Graph this process.
9. Identify the “ideal” process (ideal = minimum time for
“VA” steps with no “NVA” steps).
10. Graph ideal process & work to achieve it.
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Current
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Future
Ideal
Lead Time Reduction Process
Step 1: Identify the product or service you provide, i.e:
- Finished product
- Administrative service
- Repair
- Parts ordering
- Sub-assembly
- Procedure
- Therapy
- Consultation
Lead Time Reduction Process
Step 1 (Continued):
• Identify the beginning of the process
• Identify the end of the process
Lead Time Reduction Process
Step 2:
• Walk through the process in the natural sequence:
- “First we . . . Then we . . . Then we . . .”
• Identify individual steps
• Number steps
Lead Time Reduction Process
Step 3: Take Measurements:
• Identify the time required for each step:
- Follow one unit through the process
- Review records where necessary
- Minimize “guesstimates”
- Wait time = Average inventory
Average throughput
• Identify associated measures
- Measure distance traveled for “move” steps
- Note batch size / quantity
Lead Time Reduction Process
Step 4:
Identify steps as Value-Added (VA) or Non-Value-Added (NVA):
• Value-Added (VA)
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Any activity that the customer is willing to pay for.
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Why the customer is here, such as:
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Treatment
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Assembly
Lead Time Reduction Process
Step 4 (Continued):
• Non-Value-Added (NVA)
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Any activity, operation, or use of resource that does not
conform to customer expectations.
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Non-Value-Added describes something that the customer
does not perceive as adding value, even though it may be
necessary because of current process limitations, such as:
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Re-work
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Inspection
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Waits
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Moves
Lead Time Analysis
Process / Product Description: ____________________________________
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PROCESS STEP DESCRIPTION
Page ____ of ____
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Date completed: ______________
Prepared by: ______________________
Lead Time Reduction Process
Step 5:
• Graph the process:
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Make one box for each step
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Make box height proportionate to time required for step
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Position “VA” boxes on left
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Position “NVA” boxes on right
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Put boxes in correct order
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Label boxes with:
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Number of step
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Activity of step
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Time required
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Distance traveled
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Quantity (if applicable)
Lead Time Reduction Process
Step 5:
• Summarize Information:
- Total the number of VA steps & NVA steps
- Total the time required for VA steps & NVA steps
- Determine % of Value Added work:
% VA =
VA Time
VA Time+ NVA Time
X 100
Lead Time Reduction Process
Step 6:
Analyze & eliminate NVA activity
Step 7:
Analyze & eliminate VA activity
• Reduce
• Eliminate
• Combine
New Allergy Clinic
Tx room
Tx room
Waiting Room #2
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Sign-in Desk #1
Tx room
Tx room
Sign-in Desk #2
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Waiting Room #1
Storage
Lean Implementation Workshop Lead-time Analysis
Process / Product Description:
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Process Step Description
Patient trail for allergy shot process
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Patient MOVES to desk #1
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Patient signs in (first time)
.25
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Patient MOVES to waiting room #1
.25
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Patient WAITS
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Patient MOVES to desk #2
.25
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Patient signs in (second time)
.25
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Patient MOVES to waiting room #2
.25
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Patient WAITS
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Patient MOVES to treatment room
.25
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Patient WAITS
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Patient gets allergy shot
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Patient MOVES to waiting room #1
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Patient WAITS
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Patient MOVES to reception desk line
.25
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Patient is checked for allergic reaction
.25
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Patient MOVES to exit
.25
25’
20’
50’
15’
10’
75’
25’
25’
Current
Process
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Leadtime
Reduction
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Improved
Process
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16 steps
54 minutes
245
feet
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Leadtime
Reduction
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10 steps
21 minutes
95 feet
Ideal
Process
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Lead Time Reduction Process
Steps 6 & 7 (Continued): Improvement tools:
• Simplification
• Problem solving / prevention
• Machine / facility layout
• Multi-functional employees
• Standardized operations
• Set-up time reduction
• Total planned maintenance
• Supplier relations
• Visual controls
• Reduction of variation
Lead Time Reduction Process
Step 8:
• Graph the improved process
- Using results of steps 6 & 7
Step 9:
• Identify the ideal process
- Ideal process is one with no NVA activity
and minimized VA steps and time
Step 10:
• Graph the “ideal” process
Lead Time Reduction Process
Step 11:
Repeat the process
Leadtime Analysis Graphic Tool
Time
Value-Added Process Steps
Non-Value-Added Process Steps
Time
Wait
Move
Wait
Inspect
Wait
Move
Wait
Total
VA
% Value-Added =
Total
NVA
Value-Added Time
Value-Added Time + Non-Value-Added Time
x 100
Leadtime Analysis Graphic Tool
Min.
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Value-Added Process Steps
Non-Value-Added Process Steps
1. Store raw material
11,520
3. Wait
8,640
2. Process
4. Move
5. Wait
6. Inspect
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Min.
115
5,760
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7. Process
8. Wait
4,320
9. Move
115
10. Wait
4,320
13. Store finished goods
10,080
11. Process
12. Process
NVA = 44,873 min.
(31.16 days)
VA = 64 min.
64 min. Value-Added Time
44,937 min. Total VA & NVA Time
x 100 = .14% Value-Added Activity