vsm

110/24/2002Page 1

Value Stream Mapping

John Drogosz, Ph.D. Keith LeitnerSr. Lean Consultant Sr. Lean ConsultantOptiprise, Inc. Optiprise, Inc.(734) 972-3803 (814) [email protected] [email protected]

NSR ASP Lean Shipbuilding & Ship Repair ForumJune 2002

Lean Enterprise SystemLean Enterprise SystemHighest Quality, Lowest Cost, Shortest Lead TimeHighest Quality, Lowest Cost, Shortest Lead Time

Foundation of Operational Stability, Preventive Quality Culture

Lean Enterprise System

Understanding Value-Added

Separate Manual from Machine

Time

Elimination ofVariation

Total ProductiveMaintenance

Error Proofing

Design for Manufacturing

Standard Work

Built in QualityBuilt in QualityJust in TimeJust in Time

Quick ChangeQuick ChangeOver & Lot Over & Lot

Size ReductionSize Reduction

Level ProductionLevel Production

Continuous FlowContinuous FlowProduce only:

What is needed, When it is neededat Rate of Customer

Consumption

Pull SystemPull System

SPC & 6 Sigma

Problem Solving Preventive Maintenance

CommunicationsProcess Stability

Measurement/System5 S & Organization

Flexible, Capable,Highly

MotivatedPeople

Culture

Value Str. MappingLean Visioning

Build The Base First

210/24/2002Page 3

LEARNINGORGANIZATION

DESIGNED AND BUILTBY FLEXIBLE, CAPABLE,HIGHLY MOTIVATEDPEOPLE

100% CUSTOMER SATISFACTIONLOWEST COST, FASTEST DELIVERY & HIGHEST QUALITY

WORLD CLASS SHIPBUILDING

LEAN SHIPBUILDING

"THE RIGHT PART, RIGHT TIME, IN THE RIGHT AMOUNT"TAKT TIME (PACEMAKER)EFFICIENT FLOWPULL SYSTEMLEVEL & BALANCED SCHEDULES

VALUE CHAIN INTEGRATIONINTEGRATED PRODUCT AND PROCESSDEVELOPMENTCUSTOMER FOCUSSUPPLY CHAIN INTEGRATION

CONTINUOUSIMPROVEMENT

JUST IN TIMEACCURACY CONTROLLABOR-MACHINE BALANCINGIN-CONTROL PROCESSESVISUAL CONTROLWORKER SELF-QUALITYCONTROL ERROR PROOFING

STANDARD SYSTEMSTOTAL PRODUCTIVE MAINTENANCEERGONOMICS AND SAFETYELIMINATION OF WASTE

STABLE SHIPYARD PROCESSES

BUILT IN QUALITY

GOAL

STABLE SHIPYARD PROCESSES STANDARD SYSTEMS WORKPLACE ORGANIZATION (5S) TOTAL PRODUCTIVE MAINT. ERGONOMICS AND SAFETY

10/24/2002Page 4

Comparison of Traditional vs. Lean Value Stream Cultures

Traditional Culture Most people understand

only the functions in which they work

Functions are competitors A functions Measures

isolate it from other functions

Value Stream Culture People understand the big

picture and the business of the other functions

Functions are partners Common Goals (Order to Ship

Time, Information accuracy and timeliness, etc.)

310/24/2002Page 5

10/24/2002Page 6

What do most firms do?

Go directly to KAIZEN Blitzes!

Isolated Tools - with Isolated Results:

5S (label the trash cans)Partial Cellular layouts

Kanban cards&

No effect on your business!

410/24/2002Page 7

Value Stream Perspective

Get away from isolated perspective / improvements

Process 1Process 1

Kaizen

Process 3Process 3

Kaizen

Process 2Process 2

Kaizen

10/24/2002Page 8

Product Leadtime

Value Added Time is only a very small percentage of the Leadtime.Traditional Cost Savings focused

on only Value Added Items.FOCUS ON NON-VALUE

ADDING ITEMS.

TimeRawMaterial

FinishedParts

WaitingStagingTransportation Inspection Set-up

= Value Added Time

= Non-Value Added Time (WASTE)

Machining AssemblyCasting

510/24/2002Page 9

Traditional Results

Time

Time

Traditional Results of Manufacturing Improvement

Small Amount ofTime Eliminated

10/24/2002Page 10

Lean Results

Time

Time

Focused on Non-Value Adding Items

Large Amount of Time Eliminated

610/24/2002Page 11

Definition

Total Value StreamTotal Value Stream

SUPPLIERSSUPPLIERS PLANT OR COMPANYPLANT OR COMPANY CUSTOMER TO END USERCUSTOMER TO END USER

What is the Value Stream: All actions (VA & NVA) Currently Required Bring product through main flows essential to get

product to the customer

10/24/2002Page 12

Types of Value Streams

ProductionRaw Material Customer

DesignConcept Launch

AdministrativeOrder-taking Delivery

710/24/2002Page 13

Two kinds of Kaizen

Value Stream Improvement is Flow Kaizen Management doing Kaizen

Flow KaizenFlow Kaizen(Value Stream Improvement)(Value Stream Improvement)

Point KaizenPoint Kaizen(Elimination of Waste)(Elimination of Waste)

SeniorSeniorManagementManagement

Front Front LinesLines

TimeTime

FocusFocus

10/24/2002Page 14

The Value Stream Map Most basic tool of lean

management

Based on Toyotas Material and Information Flow Diagram

Easy to create

Easy for everyone to understand

Key to sustainable progress through a current-state becomes future-state management cycle

product family

current-statedrawing

future-statedrawing

work plan

810/24/2002Page 15

Learning to See,Mike Rother and John Shook

10/24/2002Page 16

Visualize material and information flowFacilitate the identification and elimination of

waste and the sources of waste Support the prioritization of continuous

improvement activities at the plant and value stream levelsSupport constraint analysisProvide a common language for evaluating

processes

Objectives ofValue Stream Mapping

910/24/2002Page 17

Value Stream Mapping Process

Understanding how the work area currently operates. The foundation for the future state.

Designing a lean flow.

product family


future-statedrawing

work plan Lean Transformation Plan

10/24/2002Page 18

1X Weekly

Sr. Mgt.

I

Fiber Prep

Vendor

Inventory - Product that is not being worked on

Factory - a Customer or Vendor facility

Transportation - Indicates shipment of Product to/from external facility

Functional Group - Processes Information but adds no Value to Product

Process Box - Area where Value is added to Product

Value Steam Mapping Symbols

10

10/24/2002Page 19

Supermarket (Kanban) - Small Inventory of Product from which thenext Process or Customer may Pull

Flow Arrow - Indicates Product Flows from one process to another

Pull Arrow - Indicates Process or Customer pulls Product from previous process or Vendor

Push Arrow - indicates Product is pushed into next process

Information Flow - Indicates flow of information regarding Part #, Quantity and Delivery Schedule

Value Steam Mapping Symbols

10/24/2002Page 20


Understanding how the work area currently operates.


product family


future-statedrawing


11

10/24/2002Page 21

I

I

I

Push

Fiber Prep

Wafer Fab

Package Prep

Dice & Polish A & T

Shipping

Packing

1X Daily

Customers

100/DaySuppliers

Scheduled Shipments

II

I

I

I

I

I

RifocsConnector

Modulator FabricationMaterial Flow

(1/99)

15 - 30 days

20 days

6 days

2 days

3 days

1.5 days

.1 days

.5 days

.5 days

3 days

10/24/2002Page 22

Materials Mgt

MRP

Purchasing

ForecastMeetings

Sr. Mgt.

Sales

Info Flow

Order

Acct Mgrs

Fiber Prep

Wafer Fab

Package Prep

Dice & Polish A & T

Shipping

Packing

Customers

100/Day

Suppliers

Orders

RifocsConnector

Modulator Fabrication

Information Flow(1/99)

12

10/24/2002Page 23

DMXFt. Wayne, INPart X

ABXEuropePart A

FAX1/wk6 wk firm6 wk fcast

FAX1/mo.6wk forecast

SupplierAustin, TX

EDI Order to Supplier ABC

FAX + Lotus Notes Shipment Confirmation

Information Flow Data

Type of information (forecast, schedule, etc.) Mode of transmission (Phone, Fax, EDI, Email) Frequency of transmission Who receives/transmits the

information ?

Note: Capture formal and informal information flows

10/24/2002Page 24

I

I

I

Materials Mgt

MRP

Purchasing

ForecastMeetings

Sr. Mgt.

Sales

Info Flow

Push

Order

Acct Mgrs

Fiber Prep

Wafer Fab

Package Prep

Dice & Polish A & T

Shipping

Packing

1X daily

Customers

100/Day

Suppliers

Scheduled Shipments

II

I

II

I

Orders

RifocsConnector

Modulator FabricationValue Stream Map

(1/99)

I

15 - 30 days

20 days

6 days

2 days

3 days

1.5 days

.1 days

.5 days

.5 days

3 days

13

10/24/2002Page 25

40,000 pcs/mo.-30,000 L-10,000 R

Container= 50 pcs

2 shifts

Grind AssembleDrillStamping300 T press3 shiftsEPE = 2 weeks

CustomerSupplier

250 ft coils

Example: Current State Map

General Information- 20 days/month- 7.2 hours avail./shift- 2 shifts/day

2 machinesC/T=36sec 19 20 19

10 8 8

10 20 30OPC/TC/0

12000 L4000 R

I4500 L1500 R

I3000 L1000 R

I500/Gon 250/Cart 100/Cart

ProductionControl

8 weekForecast

WeeklyFax

30/60/90 dayForecast

DailyOrder

Daily Requirements

MRP System

Daily ShipScheduleI

4 coils

Mondays

ShipStaging

4500 L1500 R

I

50/Cont.

2 xdaily

Takt = 4.1 secC/T= 3 sec.O.A. = 70%FTQ = 98%C/O = 4 hrs, 1X/wk Scrap = 2%Rework = none# operators = 1/shiftCapacity = 22,000/dayV.A. = 3 secShared:part # 123,ABC

Takt = 25.9 secC/T= 18 sec.O.A. = 85%FTQ = 99.5%C/O = 40 min,1X/wkTool C/O= 30/day Scrap = 0.5%Rework = none# operators = 2/shiftCapacity = 2450/dayV.A. = 36 secDedicated: L,R

Takt = 25.9 secC/T= 20 sec.O.A. = 75%FTQ = 98%C/O = 60 min, 1X/wkToolC/O = 2hrs, 1X/wkScrap = 2%Rework = none# operators = 1/shiftCapacity = 2200/dayV.A. = 20 secDedicated: L,R

Takt =25.9 secC/T= 20 sec.O.A. = 90%FTQ = 95%C/O =10min,1X/day Scrap = noneRework = 5%# operators = 3/shiftCapacity = 2230/dayV.A. = 58 secDedicated: L,R

Current State Map: On-Block Outfitting

SOC 3 Block1 day

Trade Work Supprt. WorkInv. (Elec.) (Electrical) Wait (PCI) Inst. Vent Wait (PCI)

Warehouse 7.5 days C/T: 15 days 2.5 days 3 days 3 days

15 days 3 days1 day 7.5 days 2.5 days 3 days

Turn Block Paint Clean/Prep Supprt. WorkWait (Svcs.) Wait (Paint) (for Turn) Wait (Trade) Insul. P-Pen.

0.5 days 0.5 days 2 days 0.5 days 0.5 days 0.5 days 3 days

0.5 days 2 days 0.5 days 3 days0.5 days 0.5 days 0.5 days

Scaffolding Trade Work Test PipeWait (Svcs.) Wait (Trade) Inv. (Pipe) (Pipe) Wait (P-Test)

0.5 days 2 days 0.5 days 3.5 days 7 days 1 day 2 days

2 days 7 days 2 days0.5 days 0.5 days 3.5 days 1 day

Inst. Insul. Paint Ins. Steam P.Wait (Svcs.) Wait (PCI) Wait (Paint) Wait (PCI)

0.5 days 3 days 0.5 days 3 days 0.5 days 4.5 days 1 day

3 days 3 days 4.5 days0.5 days 0.5 days 0.5 days 1 day

Scaffold Erect(for Erection) Wait (Svcs.) SOC 6

1 day 0.5 days 0.5 days 1 Block

1 day 0.5 days Value Added Time = 47 days0.5 days

Lead Time = 71.5 daysVA Ratio = 0.657 (value added days / lead time days)

Master Planning:Issues a complete schedule

good for the life of the product barring any major changes.

SOC 6 reports any problems that would cause a major schedule change. Otherwise, blocks

are erected per the schedule.

MACPAC& LMS

Daily Pick Ticket

As Sched.

Post-Turn Delivery

As Req.

14

10/24/2002Page 27

Current State Mapping

Assign a scribe who will draw the Current State Map Document customer information and requirements. Identify main processes. (In order). Fill in a Data Box for each main process. (Do not use

standard times, use data observed on the floor whenever possible) Identify Inventory at each stage. (Number of pieces

and days) Material Movement. (Push or Pull?) Document Information Flows. (How do processes

know what to make?)

Guidelines

10/24/2002Page 28




product family


future-statedrawing


15

10/24/2002Page 29

1. Calculate Takt TimeThe Beat of Production

Takt time is the time in which a unit must be produced in order to match the rate of customer

demand.

Takt Time = Available TimeUnit Demand

Future State Questions

10/24/2002Page 30

Takt Time Example3 Months Schedule = 52,800 Units

=17,600/ Month17,600/22 = 800/day or 400/shift

Per Shift:420min/400 = 1.05 minor 63 seconds per piece

Parts should move from operation to operation every 63 seconds

16

10/24/2002Page 31

Block Construction To Takt Time

ALL STEEL PREPFOR BLOCK

ALL STEEL SUB-ASSEMBLY FOR

BLOCK

ALL STEELASSEMBLY FOR

BLOCK

BLOCKCONSTRUCTION

BLOCKOUTFITTING

GRAND BLOCKJOINING

GRAND BLOCKERECTION IN

DOCK

ALL OUTFITASSEMBLY FOR

BLOCK

ALL OUTFIT SUB-ASSEMBLY FOR

BLOCK

ALL OUTFIT PREPFOR BLOCK

ALL TASKS TAKE SAMETIME WHICH IS SET BYSHIP CONSTRUCTION

SCHEDULE

10/24/2002Page 32


2. What are the production constraints that do not allow us to meet the customer requirements?

3. How can we simplify, combine and/or eliminateprocesses to improve the flow?

Processes:

17

10/24/2002Page 33

Effective Cycle Time =

Capacity Analysis

Gross Cycle TimeOperational Quality rate Availability through final op

X

10/24/2002Page 34

Effective Cycle Time Vs Takt Time

Stamping Drill Grind Assemble

Takt Time: 3.9 sec 23 sec X 2 machines 23 sec 23 sec= 46 sec.

Effective C/T: 3sec 36 sec 20 sec 20 sec(.7)(1-.02-.025) (.85)(1-.005-.02) (.75)(1-.02) (.9)(1-.05)= 4.5 sec = 43 sec = 27.2 sec = 23.9 sec

Capacity Analysis

We need to establish realistic targets for Quality and Operational Availability for the Future State that

will meet the Customer Requirements

18

10/24/2002Page 35

MANUAL

CUTTING PLATE

MANUAL

PROFILE CUTTING

MANUAL

PLATE JOINING

MANUAL

STIFFNER WELDING.90 .90.85 .90X XX

System Reliability = .62

Low Individual Machine Reliability

High Individual Machine Reliability

N/C BURNING

MACHINE

ROBOTIC

PROFILE CUTTING PLATE JOINING

PLATE LINE

STIFFNER JOINING.95 .97.98 .96X XX

System Reliability = .87

Serial Unreliability leads to No Control

10/24/2002Page 36

Use Statistical Process Control (SPC) at those stations where critical process indicators demonstrate high degrees of variability.

Quality

Improves product quality by controlling in-process variability.Helps ensure the operator is not passing on quality defects.Helps prevent errors from occurring by making process adjustments in out of control conditions.

UCL

X-bar

LCL

Stiffener Length

Out of ControlCondition

19

10/24/2002Page 37

45,000 pcs/mo.-30,000 L-15,000 R

Container= 50 pcs

2 shifts

Ship

Staging

Drill, Grind & AssembleStamping

300 T press3 shiftsEPE = 1 day

CustomerSupplier

Takt = 3.9 secC/T= 3 sec.O.A. = 80%FTQ = 98.5%C/O = 20 min, 1X/shift Scrap = 1.5%Rework = none# operators = 1/shiftV.A. = 3 secShared:part # 123,ABC

250 ft coils

Future State Map of Operations

Takt =23 secC/T= 20 sec.O.A. = 90%FTQ = 97%C/O =10min,1X/shift Scrap = 2%Rework = 1%# operators = 5/shiftV.A. = 114 secDedicated: L,R


36 20 19 20 1910 10 10 8 8

Drill(2) Grind 30OP

C/TC/0

2010

10/24/2002Page 38

BEFORE - BATCH BUILDING

STORAGE

SORTING

SORTING

SORTING/

BUFFER

SORTING/

BUFFER

BLOCK

CONST-

RUCTION

AFTER - IDEAL OF ONE PIECE FLOW

BLOCK

CONST-

RUCTION

Batch Processing versus One-Piece Flow

20

10/24/2002Page 39

Example: Cutting Line

One-Piece Flow Line5-S Opportunity

Example: Boeing Final Assembly Cell

21

10/24/2002Page 41


4.Where can continuous flow processing be used?5. Where can we use FIFO?6.Where will supermarket pull systems be

required to control upstream production?

Material Flow:

10/24/2002Page 42

Eliminate Overproduction andInventory Wastes ( Cycle Time)

How Do We Get Rid of the Triangles?

Process 2Process 2Process 1Process 1 Process 3Process 3

INVINV INVINV

What is the waste caused by overproduction ?

HandlingStorage spaceShortagesCritical capacity

Logistics/ExpeditingInventory Carrying CostSlower FeedbackLengthens lead times

22

10/24/2002Page 43

45,000 pcs/mo.-30,000 L-15,000 R

Container= 50 pcs

2 shifts

Ship

Staging



CustomerSupplier

Takt = 3.9 secC/T= 3 sec.O.A. = 80%FTQ = 98.5%C/O = 20 min 1X/shift Scrap = 1.5%Rework = none# operators = 1/shiftV.A. = 3 secShared:part # 123,ABC

250 ft coils

Future State Map

Takt =23 secC/T= 20 sec.O.A. = 90%FTQ = 97%C/O =10min,1X/shift Scrap = 2%Rework = 1%# operators = 5/shiftV.A. = 114 secDedicated: L,R


36 20 19 20 1910 10 10 8 8

Grind 30OPC/TC/0

2010

50

L

R

50coil

Batch

ProductionControl

MRP System

Coils

(at the press)

DailyMilk Run

2 shifts

2 xdaily

Drill(2)

10/24/2002Page 44

Using Sequencing

BEFORE

Plate Panel Pallet

JumbledMust be sorted

AFTER

Plate Panel Pallet

Sequenced

23

10/24/2002Page 45

7. At which single point(pacemaker) in theproduction chains will we trigger production?

8. How much work do we consistently release and remove from the pacemaker process?

9. How will we level the production mix at the pacemaker process?

10. Will we build directly to customer order or to a finished goods supermarket ?

11. How will suppliers know what to ship?


Information Flow:

45,000 pcs/mo.-30,000 L-15,000 R

Container= 50 pcs

2 shifts

Ship

Staging



CustomerSupplier

Takt = 3.9 secC/T= 3 sec.O.A. = 80%FTQ = 98.5%C/O = 4 hrs, 1X/day Scrap = 1.5%Rework = none# operators = 1/shiftV.A. = 3 secShared:part # 123,ABC

250 ft coils

Takt =23 secC/T= 20 sec.O.A. = 90%FTQ = 97%C/O =10min,1X/shift Scrap = 2%Rework = none# operators = 5/shiftV.A. = 114 secDedicated: L,R


36 20 19 20 1910 10 10 8 8

Grind 30OPC/TC/0

2010 50

L

R

totecoil

Batch

ProductionControl

8 weekForecast

DailyFax

30/60/90 dayForecast

DailyOrderMRP System

50DailyMilk Run

Coils

(at the press)

2 xdaily

Changeover

GrindUptime

Future State Map Date:

1 day 1 day 1 day L.T. = 3 dV.A. = 117 s3 sec, 114 sec.

DrillChangeover

GrindChangeover

50

Drill(2)

OXOX

50

50

24

10/24/2002Page 47

Production Smoothing

Leveled ProductionLeveled ProductionLeveled ProductionMove to Level Production

ProductionVolume

Monthly Production

ProductionVolume

Monthly Production

Traditional Production

ProductionVolume

Monthly Production

Level Production

10/24/2002Page 48

Why Level Production?

Smooths demand on upstream operations

Foundation for pull (kanban) systems Minimizes inventory Efficient use of resources

25

10/24/2002Page 49

How to Level Production Using Temporary Employees Cross Training Employees Careful planning Standardized Times for Processes Standardized Designs Balancing Processes across the Shipyard Takt Time Planning

Best Results:Best Results:Combination of All, Which Results in the

Least Amount of Waste

Future State Map: : On-Block Outfitting

Move Next BlockTo SOC 5

All Trades Clean/Prep Paint Turn BlockShoot Pins Scaffolding

C/T: 20 days 0.5 days 2 days 1.5 days

20 days 0.5 days 2 days 1.5 days1 day 1 day

Erect Clean/Prep Insulation Paint All TradesScaffold

0.5 days 1 day 3 days 3 days 7.2 days

0.5 days 1 day 3 days 3 days 7.2 days

Value added Time = 38.7 daysLead Time = 40.7 days

Planning / Production Control

Warehouse,Trade Shop,

& SOC 3

On Demand

SOC 61 Block

VSR = 0.95 (value added days / lead time) days

Utilize standard times in part number descriptions.

Determine the order blocks are erected in based on level production for all stages of

construction.

MACPAC& LMS

Produce Next Appro.

Order

Produce Next Block

26

SUB

ASSEMBLY

SHOP

PLATE

PROCESSING

SHOP

PROFILE

PROCESSING

SHOP

PLATE

AND

PROFILE

STOCKYARD

FLAT

PLATE

STORAGE

CURVED

PLATE

STORAGE

STRAIGHT

PROFILE

STORAGE

CURVED

PROFILE

STORAGE

CURVED

BLOCK

SHOPPIPE

SHOP

SUB

ASSEMBLY

STORAGE

FLAT

BLOCK

SHOPBLOCK

OUT-

FITTING

and

GRAND BLOCK

CONSTR

PAINT

SHOP

PAINT

SHOP

BERTH

BEFORE: FUNCTIONAL-BATCH PROCESS

BERTH

PLATE

AND

PROFILE

STOCKYARD

FLAT BLOCK LINE

SUB-ASSEMBLY

CURVED BLOCK LINE

PAINT

SHOP

PAINT

SHOPCURVED BLOCK

OUTFITTING

FLAT BLOCK

OUTFITTING

PIPE SHOP

GRAND

BLOCK

CONSTR-

UCTION

AFTER: PRODUCT-FLOW PROCESS

Functional-Batch versus Product-Flow Process

OFFICES

WORKER

FACILITESPLATE

PROCESSING

PROFILE

PROCESSING

PARTS

BUFFER

PANEL

BUFFER

SUB-ASSEMBLY

SHOP

PARTS &

SUB-

ASSEMBLY

BUFFER

BLOCK

CONST-

RUCTION

BLOCK

BUFFER

PAINT

SHOPS

PIPE

SHOPS

PIPE

BUFFERBLOCK OUTFITTING &

GRAND BLOCK CONSTRUCTION

STOCK

YARD

BERTH

OFFICES

BEFORE

CREATING LEAN FLOW FREES UP SPACE

BERTH

OFFICESWORKER

FACILITES

GRAND BLOCK CONST.

FLAT BLOCK LINE

CURVED BLOCK LINE

SUB-ASSEMBLY LINESTOCK

YARD

C.B. PAINT

FLAT BLOCK PAINT FLAT

BLOCK

OUT-

FITTING

PIPE

SHOP

CURVED

BLOCK

OUT-

FITTING

AFTER

SPACE FREED UP

SPACE FREED UP

27

10/24/2002Page 53

Define Future Lean Vision

Use Value Stream Map, then Make Lean Action Plan for Improvement

Q: How Good is Good?!

10/24/2002Page 54

Improvements by Moving to Future State

On-block inventory reduced from a total of 15 days to 2 days (82% reduction)

Lead Time vs. Value Added Time (VAR) increased from 0.67 to 0.95

Reduced complexity in information flows

28

10/24/2002Page 55




product family


future-statedrawing


10/24/2002Page 56

Future Value Stream Mapping Workshop ACTION PLAN

# Item Responsible Due DatePLANT-WIDE:

1 Develop Standard Work process, form & training R. Soreno 23-Jun2 JIT Handbook Development Y. Kim 2-Jul3 Problem Solving Process, Forms & Training J. Jackson 20-Jul4 Visual Workplace-Form & Employee Rating Committee G. Harrison 15-Jun5 TPM (method, training, OEE tracking) M. Thompson 20-Jun

ASSEMBLY:1 Map Ass'y (and Other) box B. Smith 7-Jul2 TPM workshop R. Valentine 15-Jul3 Develop Pull System from Table K. Masterson 11-Aug4 Plan for 2 Shift Assembly V. Carrera 30-Jul5 One-piece flow/Cell Design Workshop P. Gordon 23-Jul

Example: Work Plan

29

10/24/2002Page 57

Setting SMART Goals

Goals Should be S.M.A.R.T.!Specific John does xxxx (someone on Team to be accountable)Measurable John tracks OEE on M7 and updates TeamAction-Oriented John leads 5S and reports resultsRealistic John develops an employee overview by tomorrowTime-Based John to lead 5S in Area7, report results by 7/12

10/24/2002Page 58

Approach to Lean Transformation

Select Model Line (a major product line) Identify Roles and Responsibilities for Lean

Enterprise Implementation Develop a Current State Map and Future State

Map for Model Line Develop Project Plan for Model Line

Transformation Week by Week Transformation Schedule for one-week Kaizen events as needed

JUST DO IT!

30

10/24/2002Page 59

I

I

I

Push

Fiber Prep

Wafer Fab

Packag e Prep

Dice & Polish A & T

Shipping

Packing

1X Daily

Customers

100/Day

Suppliers

ScheduledShip ments

II

I

I

I

I

I

RifocsRifocs

Modulator FabricationMaterial Flow

(1/99)

15 - 30 days

20 days

6 days

2 days

3 days

1.5 days

.1 days

.5 days

.5 days

3 days

MaterialsMgt

MRP

Purchasing

ForecastMeetings

Sr. Mgt.

Sales

Info Flow

Order

Acct Mgrs

Fiber Prep

Wafer Fab

P ackage Prep

Dice & Polish A & T

Shipping

Packing

Customers

100/Day

Suppliers

Orders

RifocsRifocs

ModulatorFabrication

Information Flow(1/99)

25'-0" 25'-0"25'-0" 25'-0"

106'-0"

4'-5 9/16"

29'-0"

14'-0"

28'-0

"

13'-0"

14'-6

"

1'-0"

10'-0"

29 Griffin Road SouthManufacturing Facility

Lunch Room

Bay 1Bay 2Bay 3Bay 4b

Bay 4a

LoadingDock

20'-0

"

24'-0

"

MaterialsMgt

MRP

Purchasing

ForecastMeetings

Sales

Info Flow

Material Push

Fiber Prep

Wafer Fab

Package Prep

Dice & Polish A & T

Pack/Ship

1X daily

Customers

100/Day

Suppliers

ScheduledShip men ts

Orders

RifocsRifocs

Modulator FabricationFuture State Map

Order

Material Flow

I

I

I

I

25'-0" 25'-0"

1'-0"

10'-0"

29 Griffin Road SouthManufacturing Facility

Lunch Room

Bay 3Bay 4b

Bay 4a

LoadingDock

20'-0

"

24'-0

"

Current State

Future State

CI Plans

Continuous Improvement

Process

10/24/2002Page 60

Observed Results Using the Value Stream Mapping Process

Lead time reductions of 50+% Productivity increases of 15-20% Quality improvements of 5 15% Increased visibility of critical operations Improved allocation of resources Improved communication/understanding of

processes by supplier and customer Accelerated Lean transformation

31

10/24/2002Page 61

Conclusions

Value Stream Mapping helps to:

visualize the product flow show the links between the information and material

flows identify the sources of waste in the system establish a clear future vision for the value stream prioritize improvement activities focus attention on the key elements that will improve

the Lead Time and reduce the Total Cost of the Product

10/24/2002Page 62

References

Learning to Seeby Rother & Shookwww.lean.org

Lean Thinkingby Womack & Jones

1Building Lean Enterprise ExcellenceBuilding Lean Enterprise Excellence

Lean Shipbuilding & Repair ForumJune 6, 2002

Value Stream Mapping for Ship Construction

and Repair

Building Lean Enterprise ExcellenceBuilding Lean Enterprise Excellence

Levels of Value Stream Mapping

Single Plant (Door to Door)

Multiple Plants

Across CompaniesLearning to See Rother & Shook Lean Enterprise Institute 1999

Process Level


Better Tool

Single Plant (Door to Door)

Multiple Plants

Across Companies

Process Level


Schematic representation of the current or proposed flow. Used to analyze sources of variation of machines,

methods, materials and manpower throughout the process.

Helps to analyze all aspects of the process: InspectionTransportStorage and Delays

Uses Standard ASME Symbols

Process Sequence Charts -Overview


ReceivePart

MachinePart

Rework

Flow Chart Process Sequence Chart

Accept

YES

NO

Receive Material

Inspect

Move to Machine

Machine

Store

Flow vs. Process Sequence Chart


Operation- Indicates main steps in the process (usually VA).- Part, material, process modified before proceeding.

Inspection- Indicates inspection or check for quality.- No modification to part, material or process.

Transport- Indicates movement of manpower, materials,equipment.

- Movement other than during operation (trucks, benches, bins, conveyors).

Chart Symbols


Permanent Storage- Indicates controlled storage of material.- Permanent storage requires authorization to remove.- Temporary storage requires no authorization.

Temporary Storage or Delay- Indicates a delay in the sequence of events without record.Examples are:

- work stacked on the floor,- work waiting between operations,- parts waiting to be put into store,- letters waiting to be signed.

Chart Symbols


Combined Activities- Indicates activities performed simultaneously (ie. operation & inspection).

- Should not be confused with Poka Yoke symbol.

Poka Yoke (mistake proofed operation)-Indicates operation with mistake proof device fitted.-Not an ASME Symbol.

Chart Symbols

110/24/2002Page 1

Applying Value Stream Mapping Above the Shop Floor

John Drogosz, Ph.D.Sr. Lean ConsultantOptiprise, Inc.(734) [email protected]

NSR ASP Lean Shipbuilding & Ship Repair ForumJune 2002

10/24/2002Page 2

Engineering & Business Processes

Must deal with multiple projects simultaneously

Even though many of the specific challenges are unique, much of the work, tasks, and sequences of tasks are common across projects

Most systems can be viewed as a knowledge work job shop with multiple work centers and an integrated network of queues

210/24/2002Page 3

Highly variable volumes of work

Tend to work in batches

Lots of expediting

Many capacity mismatches

Create tremendous system congestion, queues and long lead times

Engineering & Business Processes

10/24/2002Page 4

Why use VSM?

Potentially even more valuable above the shop floor as it helps to

Understand highly complex system made up of diverse, interdependent, concurrent activities

Synchronize activities Highlight dependencies Identify opportunities for the application of specific tools

and strategies

310/24/2002Page 5

Process Differences

The need for adaptation

Primarily Manufacturing OrganizationLarge, Very Diverse Group of Technical Specialists

Linear EvolutionNon-linear and Multi-directional Flows

Physical ManufacturingPrimarily Knowledge Work

Seconds and MinutesWeeks and Months

Physical Product FlowVirtual Data Flow

Traditional VSMVSM above shop floor

Created by Jim Morgan

10/24/2002Page 6

Challenges in collecting data

Long Cycle times for many tasks

Resources work on several tasks at the same time

Product resides in multiple work centers simultaneously

Difficult to follow the evolution of the product

Existing business systems do not time/costs by task

410/24/2002Page 7

Version 1E/C 1A 8CVersion 2.1

Version 2.2b

Version 1 E/C Req 1.2Version 2.2b

Version 1 E/C Req 1.5

Structural Eng

Process ver 1.3

E/C Req 1.5

Weight Control

Configuration Management

Scoping

ZZZ

Designer


10/24/2002Page 8

Hood Inr v2 Hood Inr v1.2Hood Otr v11 Hood Otr v8

Engineering

Fndr Inr v5Frt Ctr Mbr v2

January February March April May

InitialRelease

Milestone Release I

Milestone Release II

FinalMilestone

Release

WIPData

E/C ChangeRequests


510/24/2002Page 9

Complex Information Flows

Many different technical disciplines working together simultaneously

Reciprocal information exchanges

Web of interdependencies

Data releases

Feedback

Product changes

Scheduling information

Unscheduled data exchanges

10/24/2002Page 10

Program Mgmt

Structural Eng

Scoping

E/C Req 15

E/Cs

WIP ver 14

PDN II Rel Ver I?

E/C Req 15a

February

Updated TimingRecovery Plan

Billing

Major Concern

Craft

610/24/2002Page 11

Mapping The Current State

Crucial first step in process improvement deep understanding of the existing process.

Identify all the activities currently involved

Start at a high level Develop a preliminary map or process outline should be developed by the team to serve as a VSM guide.

Utilize a go to the source strategy.

Its not about the map!

More questions than answers!

10/24/2002Page 12

Example: Process Outline


710/24/2002Page 13

Vendor InfoEng/Mat

Weight Control

Composites

Tech Check

O&F Dwgs

Wireways

Wire List

Cable Routing

Penetration Control

Foundation Dwgs

Structural Mfg Aids

2D Dwg DevEng

3D Dwg DevEng

3D Dwg ExtrEng

CADMEng

Bill & ScopePlanning

BudgetingIE

Macro Map

Structural Models

Mach. Arrangement

Foundation Models

Wireways Models

HVAC Models

Piping Models

Example: Process Outline

10/24/2002Page 14

Map Components

Work centers Time line and scheduled events Process boxes and activity levels Data boxes Primary data flows Icons Engineering Activity Logs Tool Activity Tags

810/24/2002Page 15

Work Centers

Primarily various functional disciplines Layered and color coded


10/24/2002Page 16

Time Line and Scheduled Events

25 24 23 22 21 20

PDN 0 Release PDN I PDN II FINALRELEASE

Body and Structures Engineering Data Release Milestones

Clay Freeze

Months before production start


9Process Boxes and Activity Levels

At a low level of magnification, process boxes (activities) are summarized in terms of total task times and located on the time scale to correspond to peak periods of activity.

Periods of repetitive activity and product refinement through trial and error are shown as periods of looping within the design process flow.



Process Boxes and Activity Levels

At a high level of magnification, activity is depicted in real-time. Complex interactions can be recorded between groups and dependencies between dependent activities analyzed.

Load level lines and overtime markers show activity loading and periods of intense effort.

10

Example: Data Boxes

Task Time(Value Added Activity)

Time in System

Value Ratio

Changeover (if any)

Expedite / Overtime

Daily Loading


10/24/2002Page 20

Definitions Work center: Location where specific work or task is done Time in System(Throughput Time): Time frame from

when a task is started within a work center until it leaves the work center

Task Time: The total time it actually requires to complete a task within a work center.

Value Ratio: Task time divided by time in system for a work center or the sum of the task times divided by lead time for the process

Lead Time: The time required for a single new product to complete the entire process as defined

Time in Queue: Time a single unit spends in a specific queue for instance a released product design waiting for a processing resource.

11

10/24/2002Page 21

Example: Current State

10/24/2002Page 22

Example: Data Boxes

DisciplineProcessing

(HOURS)Throughpu

t (Days)

CSI

Wireways

Hot WorkMachinery ArrangementMachinery GratingGT Machinery DG Machinery

O&F

HVAC

Lead Sheets

BOM File

Drawing Formats for Parts List

Run Extraction Program

Structural Elements

NVA-R

DisciplineProcessing

(HOURS)Throughpu

t (Days)

All

Merge 3-D Model into Drawing Extraction Model

NVA-R

12

10/24/2002Page 23

Primary Data Flows

Product / Design Flow

Information Flow

(PUSH by supplier onto customer delay queue or in-process activity)

(PULL by customer from storage)

(E/C Requests, directions, etc)

(Discussion)

(Meeting requests, data availability notification, etc)

(Program management activity)


P/D VSM Current State IconsDelay Types

Event Icons

Activity Icons

Traditional VSM Ship and Supply


13

Example: Time Tracking Sheet

Official Milestone DatesData Received Dates

WIP

Level II

Level I

Level III

Level I+

Level II+

Data Releases + External Communications

O/T and IntenseActivity Periods

DesignPhases

Preliminary

ProcessingLevel

ILevel

IIR

ework

Level IIU

pdateTo Final

Process Chg

Rew

ork

C

D

C/D

C

C

Sources of Delay

D

C


1Job Summary Process Rapid Improvement Workshop

November 13 to November 16, 2001

Puget Sound Naval ShipyardJim Forster

05/03/02

Summary of Tools Used

Waste Walk Brainstorming Visual Management 5-S Diverse Workshop Team

What is a Job Summary?What is Value Added?

2Current JS Work Flow

Current JS Work Flow Cont

3Before Layout

30,744 Ft. Traveled 58 Hand-offs Redundant Communications

Before Situation Measures

Key Measures (based on a 30 job phase summary)

Total Lead Time = 97 Days Value Added Time = 15 Days Wait Time (Non-Value Added)

= 62 Days Non-Value Added Required Time = 20 Days Job Summary Travel Distance = 30,744 ft (5.8 Miles) Process Steps = 70 Hand Offs = 58

4Specific Goals

Reduce Lead Time by 50% Establish Visual Controls Reduce Job Summary Cost by 20% Reduce Travel Distance by 75% Establish 5S

Future State Job Summary Process

STATUSALL CU PHTO PRL

.2

FILESTD.PACKAGE

START:ASSIGNJ.obSummary

DEVELOPBUBBLECHART

CONFIRMW.B.S.WITHTEAM

PHASECUS PERBUBBLECHART

BUILDCUASSYS

DEVELOPALL PHASESF PhasePRIORITY

TECHREVIEWCONTRACTOR IN-HOUSE

APS /ZMREVIEW

APPROVESUMM &ALL CU PH

END PROCESSSTART:- LF TGI- PACKAGING

PREPS/CPKG.

SHIPCHECK XFER

LLTMTO END USE

LLTM CUPHASE

STARTREMAININGJMLS

MATLPROCESS

MATL SPECIALISTISSUELLTMJML

MATLSPECALISTCOMPL JML

INCORPORATECOMMENTS

STARTSCHEDULINGPROCESS

UPDATEMETRICS& HISTORYFILE

82

.1

3

14 3

1

10

.2

1.5

3012

.2

.5

.5

Cross-Functional Core Team

- Co-Located Team- Standard Processes

One JS Owner

Self-Directed Reviews

Product LineHistory

12

903

10

1

1.5

34

2

5After

Total Distance: 2,464 to 13,944 Ft.

Control Board

JS ID SUMMARY

HOLDER Complete Total Submit Complete Submit Complete Schedule Actual Schedule ActualCOMMENTS / REMARKS

514A0101 GUTIERREZ 75% 15 2/20/02 2/20/02

Y

03/01/02

TECH REVIEW, NOT BEING WORKED

515AB103 LEITHEISER 97% 12 2/26/02 2/26/02

4/2/02 4/18/02 4/18/02

03/08/02 04/26/02

complete. Still need BSPO action & submepp authorization (no

556AB102 GUTIERREZ 80% 59 2/25/02 2/25/023/19/02 4/18/02 Y

03/11/02NEED PROJECT REVIEW

556AD106 GUTIERREZ 80% 15 2/22/02 2/22/02

4/1/02 4/18/02 Y

03/11/02

review on 4/18 ECD 4/22/ Returned to 260.3 for edit ECD 4/26

561AA103 GUTIERREZ 80% 29 2/22/02 2/22/02

3/26/02 Y

03/12/02

tech review ECD WAS 4/15, delayed man power ECD 4/26

585AF105 FERREIRA 0% 03/12/02

Hold up BSPO Vancleef clarrification required

595AA101 FERREIRA 60% 48 3/12/02 3/12/02Y

03/14/02FINNEY Tech Review ECD 4/29

528A0101 OHMAN 99% 80 2/22/02 2/22/02

3/29/02 3/29/02 N/A N/A

03/15/02

Wheeler. ECD 3/31 Tech review Ohman making changes ECD

726 FSUMCU PHASES SCOPING MTG TECH REVIEW PROJECT REVIEW

6Goal ChartWEEKLY WEEKLY CUMULATIVE CUMULATIVE

WEEK GOAL ACTUAL GOAL ACTUAL

3/3/02 10 11 68 79

3/10/02 12 2 80 81

3/17/02 6 15 86 96

3/24/02 28 8 114 104

3/31/02 6 1 120 105

4/7/02 7 2 127 107

4/14/02 10 7 137 114

4/21/02 2 7 139 121

4/28/02 4 4 143 125

5/5/02 10 0 153

5/12/02 6 0 159

5/19/02 12 0 171

Workspace (Before)

7After Picture

Team Operating Procedures

Continuing Effort: Job Summary Ownership Contracting Help Standard Files / Systems Cost and Schedule Management

8Workshop ResultsAverage Job

Summary Current State Future StatePotentialImprovement

Value Added Time (Days) 15 15 0%Non-Value Added Required 20 8 60%Total Cost = 35 MD 23 MD 34%Wait Time (NVA) 62 3 95%Total Lead Time = 97 26 73%

Travel Distance (Feet) 30,744 2,464 to 13,944 55 to 92%

Process Steps 70 23 67%

Hand-Offs 58 10 80%

Primary Actions:Co-located, Cross-functional TeamSingle Job Summary OwnerSelf directed work and reviews (reduced management of work)Standard processes and records

Results - Month 4

COST DURATION

Potential Improvement 34% 73%

Improvement Goal 20% 50%

ACTUAL 16% 66%

Current JS Average 9.4 MD 33 Days(11.2 MD Budget)

vsm

Documents

functions functions

right time

value stream perspectiveget

lean consultantoptiprise

functions measures

traditional cost savings

isolated results

s label