Value stream mapping water manufacturer

Water Heater Manufacturer

Rajat Ranjan – 3745611 thOctober, 2014Executive MBA (2014-17)SIBM, LavaleCampus, Pune

Objectives :Value stream is a collection of all actions (VA as

well as NVA) that are required to bring a product (or a group of products that use the same resources) through the main flows, starting with raw material ending with the customer.

The ultimate goal of VSM is identify all types of waste in the value stream and take steps to try and eliminate these.

VSM is a powerful tool to spot where the waste is and where in the supply chain the actions have to be taken

Advantages of VSM :It helps to see the sources of waste in

thevalue streamIt provides a common language for talking

about the manufacturing processIt makes the decision about flow apparentIt ties together lean concepts and techniques,

which helps avoid cherry pickingIt forms the basis of an implementation plan

by designing the whole door-to-door flow

Processes of VSM :Collecting Information regarding existing Process

FlowsNumber of People Involved a every stageIdentifying the Cycle times, waiting timesInterviewing the Business users, Business

AnalystsProcess Flow, Product Flow, Information Flow and

the Communication FlowTaktTime is CalculatedCurrent State is Expanded based on Lean

Philosophy

Processes of VSM :Eliminating of Non Value added activities,

Eliminating waste, improving the communication and information flow and implementing the pull system.

Finally projected savings in terms of total lead time are calculated

Benefits of new process changesNeed for Change management is created and

communicated for all end users in the company.

Value Stream Mapping Measures:Takt Time (T/T): Takt time = Production Time Available /

Customer

Demand

Cycle Time (C/T): Cycle time is the total time from the beginning to the end of your process

Lead Time (L/T):The amount of time, defined by the supplier, that is required to meet a customer request or demand

Value Stream Mapping Measures:Value Added Time (V/A): Cumulative time of all the value added activities in a process.Non-Value Added Time (NV/A): Cumulative

time of all the non-value added activities in process.

Every Part Every (EPE):Change Over Time (C/O): A period of transitionfrom one model.Operator Number: The number of employees in

the process.

Current state VSM AnalysisThe production of a water heater occurs in 31

steps and each step is taken by a different operator.

1. Tank controland nutfastening

2. Attaching theo-ring andresistor to the tank

3. Flangescrewing

4. Flangescrewing

5. Assembly ofreset thermostat

6. Flangescrewing

7. Back doorAssembly

8. Clemensscrewing

9. Aperturegrouping

10. Aperturebody assembly

10. Aperturebody assembly

12. SwitchScrewing

13. Cableassembly tothe resistor

14. Attachingclamp andsocket

15. Thermostatscrewing

16. Limitthermostatassembly

Current state VSM Analysis17. Keyscrewing

18. Checkingbefore closingthe front box

19. PartialChecking

20. Mostencontrol

21. Hand-eyecontrol

22. Closing thefront box

23. Attachingthe screw andtag to the front box

24. Attachingthe button andthe stage tag

25. Attachingthe barcode andfront front panel

26.Packagingand putting inthe operatingmanual

27.Putting theproduct into thebox

28. Separatorand assembly

28. Separatorand assembly

29.Closing thebox, sticking thebarcode and warning label

30.Productinstallation andsticking the barcode

31.Packaging

Current state VSM calculation : The average of monthly production is 33000 and

monthly work day is 22. So that the average number of daily production is

1500.The average of daily working time of the factory is

33600 seconds.Out of this time, 2400 is spared for tea breaks and

the remaining 31200 seconds is pure working time.The daily demand of the product by consumers is

1500Takt time is 31200/1500= 20.8 seconds.

Future state VSM Process : Initial 100m2 work environment composed of

a line of 25.6 m2 and a remaining part of 74.4 m2 is decreased to a 60.5 m2 area, composed of a 25.6 m2 line and a 34.9 m2

Remaining part, as a result of the improvements made

Line(m2) Others (m2)

Total(m2)

Before Kaizen 25.6 m2 74.4 m2 100 m2

After the FirstApplication ofKaizen

25.6 m2 34.9 m2 60.5 m2

Metric Current State Future State Projected Improvement

Total Lead Time 29.3 Days 9.4 Days 212 %

Total Process Time

9.8 min 6.8 Min 44%

Activity Ratio 33% 72% 39%

Performance Metrics

Thank you