You are on page 1of 53

Source book: Value-stream Management: eight steps to planning, mapping and sustaining lean improvements, Tapping, Luyster, Shuker,

2002)

Prepared by Dr. ule Itr Satolu

What is a value-stream?
Manufacturing companies: finished goods Operations are process elements that add value to the product. Non-value adding elements Value stream consists of everything, including nonvalue adding act.- that makes transformation possible!

Prepared by Dr. ule Itr Satolu

Value-Stream
Value-stream similar to a river! Network of processes and operations through which material and information flows in time and space. Communication all along the supply chain: information flow. Material transport & conveyance: material flow.

Prepared by Dr. ule Itr Satolu

Value-Stream Mapping (VSM)


Map current state of production showing flow of material and information. Goal: To gather accurate and real-time data related to product family or value-stream. Go to the shopfloor, and collect data. (No past reports etc.).

Prepared by Dr. ule Itr Satolu

VSM
To improve a process, you must first observe and understand it! Mapping a process: clean picture of wastes! While gathering data at each point, ask how do we know what to do next? Means of communication. Trace information and material flow! Capturing this information is the essence of VSM.

Prepared by Dr. ule Itr Satolu

VSM Icons

(Tapping, Luyster, Shuker, 2002)


Prepared by Dr. ule Itr Satolu 6

Mapping Current State


Post current state-map on the story board. Tool for good visual communication and management!

Prepared by Dr. ule Itr Satolu

Mapping Current State


Visualize entire flow, rather than a single operation Visualize how currently operations communicate Sources of wastes Bottlenecks and WIP Safety and equipment concerns Common language for people See how operation running truly!

Prepared by Dr. ule Itr Satolu

Getting Ready
1. 2.

Draw simple sketches of main production operations on a white board. Go to the floor. Start from the most downstream operation (shipping) and collect actual process data for the key attributes!

Prepared by Dr. ule Itr Satolu

Getting Ready
Key Attributes:
Quantity of parts shipped per month and per day Supplier delivery schedule Available production time Cycle time (machine, operators), Setup time, uptime WIP (between processes)

Prepared by Dr. ule Itr Satolu

10

Getting Ready
Key Attributes: Number of operators at each process, Number of shifts Inventory locations and quantities Time between processes

Prepared by Dr. ule Itr Satolu

11

Example
Premiere Manufacturing Company Processes:
Machining, deburring, crimping, testing, marking, shipping

Average demand:10080 units per month=504 per day.


6720 per month #4 hoses=336 per day 3360 per month #6 hoses=168 per day

Shipping month: 20 days

Prepared by Dr. ule Itr Satolu

12

Example
Units/container: 24 Containers/day: 21 Supplier info: Company recieves a weekly shipment of 2500 units from its supplier ABC.

Prepared by Dr. ule Itr Satolu

13

Example
Process attributes Shipping
Frequency: daily Finished goods inventory=2000 units

Marking
Cycle time=50 sec Changeover=5 min Availability=27600 seconds Uptime=99% 1 operator
Prepared by Dr. ule Itr Satolu 14

Example
Process attributes Marking
WIP=2000 units between testing and marking Time between marking and shipping: 4 days

Similar data collected for Testing, Crimping, Deburring, Machining.

Prepared by Dr. ule Itr Satolu

15

Example
Flow of information and material All communications with customer & supplier is electronic. Prod. Control recieves monthly forecasts and weekly orders from customer. Prod. Control transmits monthly forecasts and weekly orders to the supplier. Weekly order release to production supervisor.

Prepared by Dr. ule Itr Satolu

16

Example
Flow of information and material Daily order release to the processes. All material pushed FIFO lane between machining and deburring.

Prepared by Dr. ule Itr Satolu

17

Mapping Current State


1. 2. 3.

Draw icons for supplier, customer, production control (certain icons!). Draw a data label below the customer icon. Enter customer req.s. Enter shipping & receiving data:
Shipping icon below customer icon Truck icons and delivery frequency Direction arrows

Prepared by Dr. ule Itr Satolu

18

Mapping Current State


4.

Draw manufacturing processes boxes and label them: Upstream: left, downstream: right.
Data boxes below each process icon. Add a notched line (Turkish: entikli izgi) below the process boxes.

Prepared by Dr. ule Itr Satolu

19

Mapping Current State


5.

Enter process attributes into the data boxes for each process. Show value-added time (cycle time) below each data box, on the notched line.

Write shift time, planned breaks, total available production time into the box, to upper right corner!

Prepared by Dr. ule Itr Satolu

20

Steps 1-5:

Production Control MRP

1 shift/day= 8.5 hours 30 min unpaid lunch Breaks= 20 min Net Available Time= 460 min.

ABC

Cord Inc.

Requirement= 10080 /month 6720 # 4 part 3360 # 6 Per day 336 parts (# 4) 168 parts (#6) 504 parts Total

Weekly

Daily

Shipping

Machining

Deburring

Crimping

Testing

Marking

CT= C/O= Avail= Uptime=

45 60

sec min

CT= C/O= Avail= Uptime=

sec min

CT= C/O= Avail= Uptime=

40 5

sec min

CT= C/O= Avail= Uptime=

30 5

sec min

CT= C/O= Avail= Uptime=

50 5

sec min

Stats LT= 34 days TCT=170 sec

27600 sec 87 %

27600 sec 100 %

27600 sec 99 %

27600 sec 99 %

27600 sec 99 %

45 sec

U x ni x t

5 sec

Prepared by 40 sec Itr Satolu Dr. ule

U x ni x t

U x ni x t

30 sec

U x ni x t

xx Unit 50 sec

21

Attributes Defined
Available production time= 460 min= 27600 sec. Changeover times (C/O) per shift. Changeover times, not planned downtime (Ex.:3600 sec for machining) Uptime= Actual oper. time/Total Available Time Uptime for machining= (27600-3600) / 27600 = 87%

Prepared by Dr. ule Itr Satolu

22

Mapping Current State


6.

Show information flow, both electronic and manual, and their frequency.
Draw communication arrows from customer to production control, Draw arrows from prod. control to supplier. Draw arrow from prod. control to prod. Supervisor Draw arrows from supervisor to the processes.

Prepared by Dr. ule Itr Satolu

23

Step 6:
F/C Monthly Weekly orders

Production Control MRP


F/C Monthly Weekly orders Weekly

1 shift/day= 8.5 hours 30 min unpaid lunch Breaks= 20 min Net Available Time= 460 min.

ABC

Cord Inc.

Production Supervisor
Weekly

Requirement= 10080 /month 6720 # 4 part 3360 # 6 Per day 336 parts (# 4) 168 parts (#6) 504 parts Total

Daily Daily Daily Daily Daily

Daily

Shipping

Machining

Deburring

Crimping

Testing

Marking

CT= C/O= Avail= Uptime=

45 60

sec min

CT= C/O= Avail= Uptime=

sec min

CT= C/O= Avail= Uptime=

40 5

sec min

CT= C/O= Avail= Uptime=

30 5

sec min

CT= C/O= Avail= Uptime=

50 5

sec min

Stats LT= 34 days TCT=170 sec

27600 sec 87 %

27600 sec 100 %

27600 sec 99 %

27600 sec 99 %

27600 sec 99 %

xx Unit 45 sec

U x ni x t

5 Prepared sec

U x ni x t

by Dr. 40 sec Satolu ule Itr

U x ni x t

30 sec

U x ni x t

xx Unit 50 sec

24

Mapping Current State


7.

Draw inventory icons at the places where inventory is stored


between processes, and between the most upstream process and supplier, between the most downstream process and shipping.

Calculate days of inventory (WIP) on hand and write the results on the time line. Ex: 2000 hoses between testing & marking 2000 hoses / 504 hoses/day=3.96 days or 4 days
Prepared by Dr. ule Itr Satolu 25

Prepared by Dr. ule Itr Satolu

26

Mapping Current State


8.

Draw in push, pull, FIFO locations.


Production based on a schedule: push! Others: Combinations of pull or FIFO.

Prepared by Dr. ule Itr Satolu

27

Current State Map:

Prepared by Dr. ule Itr Satolu

28

Points to Remember for Current State Mapping


Understand where you are now and decide where you want to go. Focus on the most accurate information. Gather actual info- not standard data. Draw in pencil or on a white board: you will make several changes.

Prepared by Dr. ule Itr Satolu

29

Lean Metrics
Identify the metrics that will help you achieve your goals.
Inventory turns Days of inventory on hand WIP Uptime Lead time On-time delivery Total cycle time Defective parts per million (PPM)
Prepared by Dr. ule Itr Satolu 30

Lean Metrics
Determine the current values (baseline) for the identified metrics. Metric Total value stream WIP Total product cycle time Total value stream lead time On-time delivery Defective PPM-external Uptime Baseline 17040 units 170 seconds 34 days 88 % 45 84 %
31

Prepared by Dr. ule Itr Satolu

Lean Metrics
Total value-stream lead time=34 days
But total value-added time=170 seconds. Huge oppurtunity for improvement.

Percent of On-time delivery is 88% due to


Uptime issues in machining process Shifting production schedules

Prepared by Dr. ule Itr Satolu

32

Lean Metrics- Example


Uptime = Actual operating time Available production time Actual operating time losses:
Changeover time, quality problems, late delivery from upstream, breakdowns, quality problems.

Improvement tech.: Setup time reduction (quick changeover techniques). Track both internal & external defect rates.

Prepared by Dr. ule Itr Satolu

33

Discussion to Identify Wastes


10 days of inventory between machining and deburring- Why? High changeover times- What is its impact on WIP?

Prepared by Dr. ule Itr Satolu

34

Mapping the Future State


Preparation: Draw the customer, supplier, production control icons. Add shipping data.

Prepared by Dr. ule Itr Satolu

35

Mapping the Future State


Stage-1: Focus on Demand What is the demand? What is the takt time? Can you meet takt time with current capabilities? Need buffer stock, safety stock? How much? Finished goods supermarket? Other improvement tools?

Prepared by Dr. ule Itr Satolu

36

Mapping the Future State


Stage-1: Focus on Demand 1. Determine the takt-time and pitch for high volume products. Takt-time = Available production time Required production quantity
Takt time= 27600 sec / 504 hoses Takt time= 55 sec per hose Pitch= Takt time * Pack-out Quantity Pitch= 55 sec * 24 units/container Pitch= 1320 sec= 22 min
Prepared by Dr. ule Itr Satolu 37

Mapping the Future State


Stage-1: Focus on Demand 2. Determine if you can meet demand with current capabilities.
Cycle time of line= 50 sec (longest cycle time) Capacity= 27600 sec 50 sec/part= 552 parts 552 units*0.84=464 units (where uptime of the line=0.84) 464 < 504 units/day. Actual capacity is less than required capacity.

Prepared by Dr. ule Itr Satolu

38

Mapping the Future State


Stage-1: Focus on Demand 3. Determine if you need buffer and safety inventories.
Buffer: when customer ordering pattern varies. Safety: when internal constraints or inefficiencies disrupt flow. Buffer & safety inventories are a hedge against uncertainty.

Prepared by Dr. ule Itr Satolu

39

Mapping the Future State


Stage-1: Focus on Demand 4. Determine if you need a finished goods supermarket
If you are 100% confident in the production system (flow), directly ship from the last process. Otherwise, a supermarket needed. Maintain certain level of inventory by pull system!

Prepared by Dr. ule Itr Satolu

40

Mapping the Future State


Stage-1: Focus on Demand 5. Determine which improvement techniques to implement!
Quick changeover techniques (QCO):For machining. Autonomous maintenance (to increase uptime) 5S for workplace organization and standardization.

Prepared by Dr. ule Itr Satolu

41

Mapping the Future State


Stage-2: Focus on Flow
Continuous flow: Produce only those units needed When they needed In exact amounts

1.

Perform line balancing: For evenly distributing work elements within a value stream to meet takt time!

Prepared by Dr. ule Itr Satolu

42

Stage-2: Focus on Flow

Mapping the Future State

# of operators= 170 sec / 55 sec (takt time)= 3.09 operators # of operators= 150 sec / 55 sec (takt time)= 2.7 operators

* Improve tooling maintenance and eliminate the need for deburring. * Distribute work of other 3 operations between the operators. * Reduce C/O times in machining to 15 min. * Achieve C/O time to <1 min in other operations.
Prepared by Dr. ule Itr Satolu

Target

43

Mapping the Future State


Stage-2: Focus on Flow 2. Plan for Work cells Achieving a balanced line depends on applying principles of cell design. Workers and machines for C,T,M grouped into a cell. Workers can cooperate.
Prepared by Dr. ule Itr Satolu 44

Mapping the Future State


Stage-2: Focus on Flow 3. Determine how to control upstream production: At points where continuous flow is not achievable, determine how to control flow of prod.

Put supermarkets. Ex.: one between suppliermachining and the other machining-the cell. Use a kanban system. Use FIFO lanes. Use computer assisted scheduling.

Prepared by Dr. ule Itr Satolu

45

Mapping the Future State


Stage-2: Focus on Flow 4. Determine which improvement methods to use

5S, TPM, autonomous maintenance and QCO in manufacturing cell. Why? Standardized work, QCO, 5S at crimpingtesting-marking cell.

Prepared by Dr. ule Itr Satolu

46

Mapping the Future State


Stage-3: Focus on Leveling 1. Decide on paced withdrawal or a Heijunka System, and Design or refine Kanban system. 2. Determine route of the material handler (runner). Map all material and information flow. 3. Determine which improvement methods to use.

Prepared by Dr. ule Itr Satolu

47

Mapping the Future State


Stage-3: Focus on Leveling It is necessary to create a Kanban system. 24 units per cont. Containers reusable Pitch=22 min.=55 sec X 24 units= 1320 sec

Prepared by Dr. ule Itr Satolu

48

Mapping the Future State


Stage-3: Focus on Leveling Withdrawal Kanban tells runner how many units to be pulled from finished goods supermarket. Prod. Kanban tells the cell how many units should be replenished. Signal Kanbans between machining and the cell tell the machining oper. How many units pulled from the supermarket.

Prepared by Dr. ule Itr Satolu

49

Mapping the Future State


Stage-3: Focus on Leveling Signal Kanbans at the upstream of machining tell supplier how much raw material pulled. In the Heijunka box,withdrawal Kanbans are put and are visually controlled.

Prepared by Dr. ule Itr Satolu

50

Future State Map


F/C Monthly

Production Control

1 shift/day= 8.5 hours 30 min unpaid lunch Breaks= 20 min Net Available Time= 460 min.
F/C Monthly Weekly orders

Weekly orders

Pitch=22 VW
Runner

ABC

Cord Inc.

S
Weekly

Takt=55 sec.
W
504 units/day 24 units/ container

Daily

Buffer and safety stock in shipping area. Pitch=22 min.

1 5

S P S 5S
Machining

Shipping

VW 5S
Crimping/Testing/ Marking Cell

U-shaped cell & std. Work Heijunka & a runner.

QCO
2

5S Std. Work

TPM
CT= C/O= 45 sec 30 min

4
CT= C/O=
Avail=

QCO

105 sec < 1 min


27600 sec

Avail= 27600 sec Uptime= 93 %

Uptime= 100 % Takt= 55 sec

5 days 45 sec

2 days 105 sec

1 day

Stats LT= 8 days TCT=150 sec

Prepared by Dr. ule Itr Satolu

51

Heijunka Box

Prepared by Dr. ule Itr Satolu

52

(Tapping, Luyster, Shuker, 2002)


Prepared by Dr. ule Itr Satolu 53

You might also like