Using Value Stream Mapping as a Strategic Planning and Implementation Tool Using Value Stream Mapping as a Strategic Planning and Implementation Tool Frank Garcia Frank Garcia Director, Engineering Services Director, Engineering Services ADVENT DESIGN CORPORATION ADVENT DESIGN CORPORATION
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Using Value Stream Mapping As a Strategic Planning & Implementation Tool
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Using Value Stream Mapping asa Strategic Planning and
Implementation Tool
Using Value Stream Mapping asa Strategic Planning and
Implementation Tool
Frank GarciaFrank GarciaDirector, Engineering ServicesDirector, Engineering Services
Identify areas for lean improvementsIdentify areas for lean improvements
Train team members in use of lean Train team members in use of lean conceptsconcepts
Integrated lean implementation plan Integrated lean implementation plan
Long term planning Long term planning
What We’ll CoverWhat We’ll Cover
What is VSM?What is VSM?
Basic Lean Concepts Basic Lean Concepts
Developing Value Stream Maps: Current Developing Value Stream Maps: Current& Future State& Future State
Implementing Implementing VSMsVSMs
Using Using VSMsVSMs
Lean ManufacturingLean Manufacturing
Any activity or action which doesAny activity or action which doesnot add value to the product is anot add value to the product is a
form of waste and must beform of waste and must beeliminated or minimizedeliminated or minimized..
Fundamental Principle of Lean Manufacturing
Definition of Value -AddedDefinition of Value -AddedValue is added any time the product is physicallyValue is added any time the product is physicallychanged towards what the customer is intendingchanged towards what the customer is intendingto purchase.to purchase.
Value is also added when a service is providedValue is also added when a service is providedfor which the customer is willing to pay (i.e.for which the customer is willing to pay (i.e.design, engineering, etc.).design, engineering, etc.).
If we are not adding value, we are adding cost orIf we are not adding value, we are adding cost orwaste.waste.
90% of lead time is non-value added!
Waste or Opportunities forImprovement
Waste or Opportunities forWaste or Opportunities forImprovementImprovement
Adds no valueAdds no valueAdds only cost andAdds only cost andtimetimeSymptom rather thanSymptom rather thancausecausePoints to problems inPoints to problems invalue stream andvalue stream andprocessprocessNeed to addressNeed to addresscausescauses
The EIGHT WastesThe EIGHT Wastes
Inventory (more than one piece flow)Inventory (more than one piece flow)Overproduction (more or Overproduction (more or soonersooner than needed) than needed)Correction (inspection and rework)Correction (inspection and rework)Material MovementMaterial MovementWaitingWaitingMotionMotionNon-Value Added ProcessingNon-Value Added ProcessingUnderutilized PeopleUnderutilized People
FLOW & PULLFLOW & PULL
Make the value-creating steps flowMake the value-creating steps flowProduce only what is neededProduce only what is neededIf a process is not completed correctly the firstIf a process is not completed correctly the firsttime, it does not move down the line fortime, it does not move down the line foradditional workadditional workEliminate re-workEliminate re-work
Value StreamValue Stream
The value stream is the set of all theThe value stream is the set of all thespecific actions required to bring aspecific actions required to bring aspecific product (good or service) throughspecific product (good or service) throughthe critical management tasks of anythe critical management tasks of anybusiness:business:
Information Management Information Management Transformation Transformation
The value stream map follows the order path fromThe value stream map follows the order path frombeginning to end and shows a visualbeginning to end and shows a visualrepresentation of every process in the order andrepresentation of every process in the order andinformation flowsinformation flows
Shows how the shop floor or office currentlyShows how the shop floor or office currentlyoperatesoperates
Develops the foundation for the future stateDevelops the foundation for the future state
Value Stream Map An Assessment Tool
Value Stream Map An Assessment ToolAn Assessment Tool
CustomersSuppliers
File: VSM-A1
ProductionControl
IProcess
RawMaterials
FinishedGoods
Equipment
CycleTimesChangeOverReliabilityError Rate
LeadTime
Value Stream Map Concept
I
OrdersOrders
Schedules
Using the Value Stream Mapping ToolUsing the Value Stream Mapping Tool
product family
current state drawing
future state drawing
plan and implementation
Understanding how the shop floorcurrently operates. The foundationfor the future state.
Designing a lean flow
Who Develops the VSM?Who Develops the VSM?
Team Approach?Team Approach? Better understanding of process Better understanding of process & opportunities & opportunities Provides training in Lean Provides training in Lean Concepts Concepts Feel ownership of Feel ownership of VSMsVSMs Exchange of ideasExchange of ideas More open discussion More open discussion Takes more time Takes more time
Who Develops the VSM?Who Develops the VSM?Engineer Collects Data and DraftsEngineer Collects Data and DraftsVSM?VSM?
Takes less time Takes less time Can be done with Management Can be done with Management TeamTeam Can train on lean concepts & get buy in Can train on lean concepts & get buy in Less ownership by team and operators Less ownership by team and operators Less exchange of ideas within the company Less exchange of ideas within the company
Who Develops the VSM?Who Develops the VSM?Depends on the company culture andDepends on the company culture andpreferencepreferenceHow much time can be devoted?How much time can be devoted?Team Approach is most effective!Team Approach is most effective!
What Tools to Use to Make the VSM?What Tools to Use to Make the VSM?
Hand draw?Hand draw?
Use Excel or Visio?Use Excel or Visio?
Use Use AUTOCADAUTOCAD??
What Tools to Use to Make the VSM?What Tools to Use to Make the VSM?
Hand drawnHand drawn• Quick• Easy for teams• Difficult to change & copy• Harder to present
Use Excel or VisioUse Excel or Visio• Requires program
knowledge• Easy to change• Can use templates• Easy to share &
e-mail• Easy to present
Use Use AUTOCADAUTOCAD??
FORGET IT!FORGET IT!
Current State MapCurrent State Mapproduct family
current state drawing
Future state drawing
plan and implementation
Understanding how the shop Understanding how the shop floor currently operates.floor currently operates.
Material and information flows Draw using icons Start with the “door to door” flow Walk the flow and get real data
* no standard times * draw by hand
Basis for the Future Sate
Current State MapCurrent State Mapproduct family
current state drawing
Future state drawing
plan and implementation
Recommended DataRecommended Data
Cycle Time Changeover time Number of People Available Working Time Acceptance or Reject Rate Equipment reliability or downtime
Corner Punch
C/T = 2 min.C/O = up to 30 min.Rel. = 99%Scrap = 2%
Various Distributors(~ 24 for Smith Corp. &~ 6 for Jones Systems
Sheet GalvanizedSteel (4’ by 8’ or cut)
Up to an averageof 130,000 lbsdaily in peak
season
Production Control(normally working
24 to 48 hours aheadof
promised shipment)
Randomly PlacedOrders (normallysingle unit orders)
Blanket Annual PurchaseOrder with Daily Releases
2 to 5 days
4 min.
2 to 5 Working Days, Lead Time
32 minutes, Value-Added Time
Value Stream Map (Current State)
DailyShipments
1/2 Operator
Add Z Brace
C/T = 7 min. C/O = N/A Rel. = 98% to 99%
1/2 Operator
2 min. 2 min. 5 min. 2 min. 7 min.
DailyProduction
Reports
Daily Shipping Schedule
Rack
1 MaterialHandler
DailyProduction
Reports
Average volume of 1000systems per month in peakseason.Customers are mainlydistributors. There are afew dealers.
C/T = N/A C/O = N/A Rel. = 100%
Radius & Band
C/T = 8 min. (average) C/O = 2 to 30 min. Rel. = 80% to 100%
2 Operators
8 min.
Sheet Galvanized Steel (4’ by 8’ or cut)
Sheet Galvanized Steel (4’ by 8’ or cut)
Sheet Galvanized Steel (4’ by 8’ or cut)
2 to 5 daysdependingon pre-cut
size
1 AccurshearAutomatedShear (P-3)
1 ManualNotcher (S-23)& 1 AutomatedNotcher (R-3)
3 Semi-Auto Punches
(S-1, S-2, & S-3)
1 ManualBrake (R-7)
& 1 AutomatedBrake (R-13)
1 AutomatedMachine (R-8)
1 AutomatedMachine (ACR)
1 Manual Table,1 Jig-less
Machine (R12),& 1 Jig Machine
(R1)
Specialty Punch
C/T = 2 min.C/O = N/ARel. = 99%
0 Operators
2 min.
4 Semi-Auto Punches
In StraightPanel Dept.
Future State MapFuture State Map
Product family
Current statedrawing
Future state drawing
plan and implementation
Designing a Lean FlowDesigning a Lean Flow
You always need a future state!
Complete 75% & Keep Updating
Consider Material & Information flows
Foundation for your Work Plan - like a “blueprint”
Begin by evaluating Current State
1st iteration assumes existing steps & equipment Can move equipment, combine operations, reduce scrap, etc.
Future State QuestionsFuture State QuestionsWhat is the What is the takt takt time?time?Will we build to shipping or to a supermarket?Will we build to shipping or to a supermarket?Where can we use continuous flow? Where can we use continuous flow? (Single Piece (Single Piece vs vs Batch)Batch)Where do we have to use supermarket pull system?Where do we have to use supermarket pull system?At what single point in the production chain do we triggerAt what single point in the production chain do we triggerproduction?production?How do we level the production mix at the pacemakerHow do we level the production mix at the pacemakerprocess?process?
SUPPORTING IMPROVEMENTSSUPPORTING IMPROVEMENTSWhat process improvements will be necessary?What process improvements will be necessary?
8 hours/day20 days/monthProcess Time: 3.1 – 7.9 daysLead Time: 8.1 – 12.9 daysNOTE: Process and lead time based only on service unit path as shown in bold.
High volumeconsoles &accessories in asupermarket typearrangementwith stockinglevels
ProductionRunRequest
ExtrusionCutting
2 Operators
As Required
15 days
15 min.
C/T = 15 min. C/O = 0 minRel. = 100%
ProductionRunRequest
ManufacturingCells
The VSM Improvement
AssembleConsoles &Accessories
Kit & Pack
I
C/T = 5-10 min. C/O = 0 minRel. = 100%
C/T = 10-20 min C/O = 0 min.Rel. = 100%
6 Operators
2 Operators
0
5 to 10 min. 10 to 20 min.
DailyProduction
Reports
0
2 days
DailyOrders
I
$250K worth,about 15 days
(mainly extrusion)High volumeconsoles &accessories in asupermarket typearrangementwith stockinglevels
ProductionRunRequest
ExtrusionCutting
2 Operators
15 days
15 min.
C/T = 15 min. C/O = 0 minRel. = 100%
ProductionRunRequest
ManufacturingCells
How Do We Implement the Future StateVSM?
How Do We Implement the Future StateHow Do We Implement the Future StateVSM?VSM?
Don’t Wait! Don’t Wait! Use future state VSM to highlight changes Use future state VSM to highlight changes Break up the future state into loops Break up the future state into loops Develop a VSM implementation plan Develop a VSM implementation plan Tie plan to business objectives Tie plan to business objectives Assign projects to team members to Assign projects to team members toimplementimplement
Average of 1 mm pcs per dayin Various SizesOrders (2 to 13)
Omega PrecisionProduction ControlVista Software System
Randomly PlacedOrders (Various Sizes)
Projected requirements
Order as Needed
Weekly ProductionSchedule Pressroom
Manager
Weekly ShippingList
10 Days
1.5day(avg)
2 Days
2.25 Days
1 Day to 12 Weeks 16.75 Days Lead Time+ coil lead time per average order3.75 Days ValueAdded Time
Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment
(Potential Future State Changes in Red)
DailyShipments
1 unit
Manual 11 Stamping Presses
6 Operators
10 to 24 coils3 times /week
Average order = 208,000 pcs252,000 strokes
Standard Timefor Setup
AdjustmentSetupTime
Visual Statusof Presses
SankyoCoil Feeds
ReduceCycle Time
Layout isa Problem
AutoBagging
FormalProduction
Control
Single Pointof Control
2 Baskets - Strip1 Basket - Pieces
C/T = 2 Hr Strips Max 1000/Basket Min 200/Basket = 30 Min Pcs. 25,000 Pcs/BasketC/O = NoneRel. = 95%
Combine?•Lot Control Improvement
•Handling Reduction
Review WorkSchedule with
Suppliers
Pre-Control forRoll Changes
Stamping DegreasingDrying
Packing Shipping
I I I I
Run: 200-600pcs/minC/T = .003 min/pc.
C/O = 4.5 hrs.
Available: 590 min/shiftRel. = 90%
C/T =10 hrC/O = NoneRel. = 80%
2Hours
1 Operator Shipper
50 to 70Racks
100 to 125Coils
20 to 40Bins
1 Dayto
12 Weeks
VariousCustomers
Brass (40%)
4 Weeks LT
BerylliumCopper
(30%)6 Mos. LTIn Stock- 1
Week
PhosphorBronze(30%)
10 Week LT6 Weeks Reroll
Every Week Every Week Every Week
Average of 1 mm pcs per dayin Various SizesOrders (2 to 13)
Production ControlVista Software System
Randomly PlacedOrders (Various Sizes)
Projected requirements
Order as Needed
Weekly ProductionSchedule Pressroom
Manager
Weekly ShippingList
10 Days
1.5day(avg)
2 Days
2.25 Days
1 Day to 12 Weeks 16.75 Days Lead Time+ coil lead time per average order3.75 Days ValueAdded Time
Value Stream Map (Current State)Stamping Orders With No Plating or Heat Treatment
(Potential Future State Changes in Red)
DailyShipments
1unit
Manual 11 Stamping Presses
6 Operators
10 to 24 coils3 times/week
Average order = 208,000 pcs252,000 strokes
File: Omega VSM Current Loop) May 24
Standard Timefor Setup
AdjustmentSetupTime
Visual Statusof Presses
SankyoCoil Feeds
ReduceCycle Time
Layout isa Problem
AutoBagging
FormalProduction
Control
Single Pointof Control
2 Baskets - Strip1 Basket - Pieces
C/T = 2 Hr Strips Max1000/Basket Min 200/Basket = 30 Min Pcs. 25,000Pcs/BasketC/O = NoneRel. = 95%
Combine?•Lot Control Improvement
•Handling Reduction
Review WorkSchedule with
Suppliers
Pre-Control forRoll Changes
SUPPLIERLOOP
PRODUCTIONCONTROL
LOOP
DEGREASE/PACKLOOP
(PACEMAKER)
PRESSLOOP
Stamping
Shipping
Shipper
VariousCustomers
Brass (40%)
4 Weeks LT
BerylliumCopper
(30%)6 Mos. LTIn Stock- 1
Week
PhosphorBronze(30%)
10 Week LT6 Weeks Reroll
Every Week Every Week Every Week
Average of 1 mm pcs per dayin Various SizesOrders (2 to 13)
Production ControlUsing Vista Software Module Randomly Placed
Orders (Various Sizes)
Projected requirements
Order as Needed
1 Day
1day
1 Day
1 Day
1 Day
Value Stream Map (Future State)Stamping Orders With No Plating or Heat Treatment
DailyShipments
File: Omega VSM Future Loop) May 24
5 Days Lead Timeand Coil Lead Time
Degreasing Packing
New UltrasonicCleaners
Daily Order
BinBatch
Coi
l
Coils
Finished Goods
SUPPLIERLOOP PRODUCTION
CONTROLLOOP
PRESSLOOP
DEGREASE/PACKLOOP
(PACEMAKER)
VSM IMPLEMENTAIONVSM IMPLEMENTAION
LOOP OBJECTIVES PROJECTSSEQUENCE (PRIORITY)
COMPLETION DATE (Mon./Yr)
Supplier Loop * Develop pull system with suppliers 1. Review Weekly/Monthly Requirements With Suppliers 1 Sep-01* Increase number of deliveries per week 2. Revise current blanket orders 1 Sep-01* Reduce raw material inventory to match 3. Send daily consumption data to suppliers 2 Nov-01
4. Setup point of use raw material areas 1 Oct-01
Production Control Loop * Implement daily shipping schedule 1. Single point to schedule( shipping). See pacemaker loop. 1 Oct-01* Work to schedule manufacturing based on shipping requirements 2. Daily production schedule by Operations Manager 1 Oct-01
3. Implement kanban loops as shown on future state VSM 2 Nov-014. Use MRP for materials forecasting 1 Oct-01
Element * Reduce lead time 1. Eliminate WIP between winding & annealing 1 Sep-01Loop * Develop continuous flow 2. Implement supermarket for element prep and kanbans 1 Oct-01
* Develop pull system with element prep supermarket 3. Crosstrain element assembly operations 2 Dec-01
Module Assembly Loop * Reduce cycle time 1. Analyze process variance in environmental test 1 Oct-01* Reduce variation in cycle time in testing 2. Analyze process variance in module drydown 1 Oct-01* Reduce variation in cycle time in drydown 3. Implement supermarket and kanbans for cell installation 1 Oct-01* Establish pull system with supermarket from cell installation 4. Crosstrain module assembly operations 2 Dec-01* Reduce use of carriers 5. Analyze need for carriers vs. subassembly units 1 Sep-01
Pacemaker Loop * Reduce cycle time 1. Improve assembly methods in final mechancial assembly 2 Dec-01
(Unit Assembly/Shipping Loop)* Establish pull system with supermarket from shipping
2. Review design for manufacturing assembly improvements for tubing assembly 3 Feb-02
4. Set up raw material suppermarket for final assembly 1 Oct-015. Crosstrain unit assembly operations 2 Dec-01
NOTES:1. Conduct kanban and point of use training for plant personnel in 2001.2. Priotities as follows: #1(Complete in 2 months), #2(Complete in 4 months), #3(Complete in 6 months)3. Consider use of teams for implementation after training.
FUTURE STATE IMPLEMENTATION PLAN & SCHEDULE
7. Set up leak tested subassembly units in supermarket for final assembly
6. Analyze material handling reductions and layout improvements for element prep operations
3. Consolidate inspection with final mechanical assembly or shipping/packing