Value Stream Map Training
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Welcome Value Stream Mapping
Session Goals • Provide an overview of Value Stream Mapping • Demonstrate Value Stream Mapping as a tool to support Lean implementation. • Provide an overview of Lean Principles.
Introduction Name Current Position VSM Experience (if any)
What are the concepts of Lean? •
The elements for Operating a Lean Facility
•
Principles and Elements are Interdependent
•
Develops lean thinking leaders to deliver lean business results
Continuous Improvement
Short Lead Time
People Involvement Standardization
Built-InQuality
Standardization ✦ Definition: Standardization is a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization. ✦ Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve.
✦
Standardization Elements
➨ ➨ ➨ ➨
Management by Takt Time Workplace Organization Standardized Work Visual Management
Change
s u o inu ent t n Co ovem r Imp
Standardization
World Class
Built In Quality ✦ Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence. ✦ Purpose: To ensure that defects are not passed to the customer.
✦
Built-In Quality Elements
➨ ➨ ➨ ➨ ➨
Product Quality Standards Manufacturing Process Validation In-Process Control & Verification Quality Feedback/Feedforward Quality System Management
The Built-In-Quality Motto
Satisfy your Customer. . . Do not
Accept Build Ship
a Defect!
Solve problems through teamwork!
Short Lead Time ✦ Definition: The movement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer. ✦ Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty.
short lead-time long lead-time
✦ Short Lead Time Elements ➨ ➨ ➨ ➨ ➨
Small Lot Packaging Fixed Period Ordering System Controlled External Transportation Simple Process Flow Scheduled Shipping/Receiving
➨ ➨ ➨ ➨
Temporary Material Storage Internal Pull/Delivery Level Vehicle Order Schedules Supply Chain Management
Continuous Improvement ✦ Definition: A process based on standardization, whereby results are achieved, through a series of small improvements. ✦ Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste. ✦ Continuous Improvement Elements Andon Concept Business Plan Deployment Total Maintenance System Lean Design of Facilities, Equipment, Tooling and Layout ➨ Continuous Improvement Process ➨ Early Mfg. Design Integration (DFM/DFA) ➨ Problem Solving ➨ ➨ ➨ ➨
The Continuous Improvement Cycle Improvement Standardization Improvement Standardization Improvement Standardization Standardization
✦The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented.
How Do We Expand VSM Throughout the Enterprise? • All the Principles and Elements apply, however, there is one big difference • In the factory, the process itself is very visible making it easy to see, study and improve • The processes in HR, Engineering, Purchasing, etc... are not as visible • What we need is a tool that will help make the process more visible
Value Stream Mapping • A tool originally used by the Toyota Production System experts to study processes • Developed and refined by John Shook and Mike Rother in Learning to See • Used in manufacturing, engineering and administrative offices by lean experts to improve business processes
What is a Value Stream? A value stream involves all the steps, both value added and non value added, required to complete a product or service from beginning to end
How Does Value Stream Mapping Fit With the Lean Journey • VSM is a tool used to support the implementation of lean strategies.
What Makes Value Stream Mapping Unique? • Visualizes the Process Flow from a systems perspective • Focuses on the customer and the customer’s requirements • Includes information flow and product movement • Summarizes the timeline as it relates to delivery to the customer • Documents performance characteristics of both the Value Stream and the individual process steps
Value Stream Map Elements XYZ Org Supplier Orders
Customer Orders
Internal Scheduling
Supplier Customer Delivery Freq. Delivery Freq.
I
Process 1
Process 2
I
I Inventory
Process Time
Process Time
Wait Time
Wait Time
FTQ
Material Movement via PUSH
FTQ
Lead Time
Value Stream Maps Enable a System View • • • •
Starts with a Focus on the Customer Links process steps and information flow Reveals problems with flow Documents performance of the process – Customer Expectations – Process metrics – Visibility of progress and quality
• • • •
Reveals waste Establishes a common language Provides a blueprint for improvement Gets People involved in creating the future
VSM Analysis – Data Attributes • Lead time = – Processing time + Wait Time / Delays
• Typical batch size • First-Time Quality – Reliability (e.g. system or equipment uptime)
• Rework / revisions – % Complete and Accurate Inputs (% C&A) – Design Changes – Errors
• Number of people involved – % utilization of people
VSM Case Study
Using the Value Stream Mapping Tool Scoping the Value Stream
Current state drawing
Future state drawing
Planning and Implementation
Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the enterprise.
The goal of mapping!
Jack’s Taxes
Jack is a CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If Jack can improve the process for self-employed clients, he could take on more work during that time of year. Generally, the sequence of events begins for each client sometime late January with Jack’s assistant, John, sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. Jack sorts the receipts and documents, finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions. Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms. For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return. Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.
Tax Season: 8 weeks 40 self-employed clients
Data Set
Send Reminder: John P/T = 10 min FTQ = 100% Sort receipts & documents: Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet: Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions: Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50%
Print and Collate IRS tax forms: John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 – 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms: Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client: John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%
Measurable Metrics & Performance Metric SPQRC
Current Estimate
Process Time
12 hours (720 Min.)
Lead Time
6 – 8 weeks
First Time Quality Other(s)
100%
From Current State Map
Target from Future State Map
Actual (post implementation)
Typical Steps for Current State Mapping • Document customer information & need • Identify main processes (in order) • Select data attributes (Q,R,C - minimum) • Perform value stream walk and fill in data boxes (how the process really works) • Establish how each process knows what to process next (how work is prioritized) and document information flow • Calculate process time, wait time, lead time, first time quality, and any other metrics necessary to evaluate your Value Stream
Icons Process Box
MRP MRP Technology Used
Customer
IN In Box (Queue)
Wait-Time
Electronic Information Flow
P/T W/T FTQ
Conversation Information Flow Reminder post-card
Worker Weekly Schedule
Data Box
Withdrawal (Pull)
Movement of “physical” property
Supermarket
Iterations
Movement by Push
Changeover
Kaizen Lightning Burst
XOXO
Leveling, Mix and/or Volume
FIF O
First-In First-Out Flow
Draw the Current State
Jack’s Taxes - Current State Client Suppliers
40 clients
Start with Then Customer Suppliers
Customer
Jack’s Taxes - Current State Client 40 clients
Send reminder
Sort receipts & documents
Process Steps?
Prepare worksheet TS
Confirm deductions
Print & Collate TS forms
Review & sign forms
Mail forms
Jack’s Taxes - Current State Client 40 clients
Ta x
N Send reminder
IN
Sort receipts & documents
1 week P/T W/T FTQ
John 10 min --100%
P/T W/T FTQ
Jack 30 min --10%
is
ify
ot
si
m of
IN 3 weeks
ng
en
cu
s&
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do
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m
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Do
um
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/10
Review & sign forms
3 days
Jack P/T 10 min W/T 1 week FTQ 50%
cli en
IN
3 days
Jack
o
tb
Process Data, Information Flow, Prepare Confirm Print & worksheet deductions Collate and ProcessINFlow TS TS forms
P/T 60 min W/T 1 week FTQ 95%
st
Clarify deductions
c Re
t eip
um
do
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en
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ing
in
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ts
M is s
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for
ts
rd
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P/T W/T FTQ
John 15 min --98%
IN
Mail forms
1 day P/T W/T FTQ
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
Jack’s Taxes - Current State Client 40 clients
Ta x
N Send reminder
Sort receipts & documents
IN 1 week
P/T W/T FTQ
P/T W/T FTQ
John 10 min --100%
10 min ----100 %
P/T W/T FTQ
1 week
Jack 30 min --10%
30 min ---10 %
is
ify
ot
si
m of
ng
en
cu
s&
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do
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m
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Do
um
Confirm deductions
TS
3 weeks
Jack P/T 60 min W/T 1 week FTQ 95%
X
cli en
tb
IN
3 days
3 weeks
o
Total Leadtime and FTQ
Prepare worksheet
IN
st
Clarify deductions
c Re
t eip
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ing
in
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M is s
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95 %
X
/10
Review & sign forms
3 days
IN
Mail forms
1 day
John Jack John Total of P/T P/T 15 min P/T 15 min P/T 10 min W/T W/T W/T ------=Total 140 minutes of W/T FTQ FTQ FTQ 98% 100% Total Lead Time 100% =Product 7wks, 2days of FTQ = 7 wks, 2 days, and 140 min 10 15 15 10 min min min 1 week 3 days 3 1 day min 7 wks, 2 days ---- = 4.7% ------140 min. days X X X 50 % 98 % 100 100 4.7 %
P/T W/T FTQ
60 min 1 week
Print & Collate IN TS forms
y4
Jack 10 min 1 week 50%
%
% 7 wks, 2 Total Lead Time: days, 140 min
Measurable Metrics & Performance Metric SPQRC
Current Estimate
From Current State Map
Process Time
720 Min.
140 Min.
6 – 8 weeks
7 Weeks, 2 Days, 140 Min
100%
4.7%
Lead Time First Time Quality Other(s)
Target from Future State Map
Actual (post implementation)
Jack’s Taxes - Current State Client 40 clients
Re
& pts tif
No Send reminder
IN
P/T W/T FTQ
P/T W/T FTQ
John 10 min --100%
10 min 100 %
Do
f yo
Sort receipts & documents 3 weeks
P/T W/T FTQ
Jack 30 min --10%
30 1 week min 10 %
m
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Prepare worksheet
IN
1 week
me
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Ta
x fo
Clarify deductio ns
mi
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po
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Confirm deductions
Print & Collate TS forms
IN
TS
3 days
Jack
P/T 60 min W/T 1 week FTQ 95%
60 min 3 weeks 1 week 95 %
P/T W/T FTQ
Jack 10 min 1 week 50%
10 min 1 week 50 %
s to
clie
nt b
y4
/10
Review & sign forms
IN
John 15 min --98%
15 min 98 %
Mail forms
IN
3 days
P/T W/T FTQ
3 days
rm
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % 7 wks, 2 Total Lead Time: days, 140 min
7 wks, 2 days
Waste The elements of production that add no value to the product: waste only adds cost & time Points to Remember About Waste: • It is important to consider waste in the context of the value that the process provides to the customer • Waste is really a symptom of problems in the system. It shows where the problems are • We need to find and address the causes of waste to improve the performance of the system
Waste in a Value Stream • Muri – Waste of unreasonableness or overburden to a person or a machine • Mura – Waste of inconsistency; Waste of unevenness • Muda – The seven forms of waste (COMMWIP)
Shift Mindset
Unevenness
Producing reports that are CURRENT Processing REQUIRED excessive written Sending back forms for Keeping multiple not used, producing reports Delays THINKING communication THINKING togetting determine incomplete orin inaccurate data copies of reports before they areattention needed needed issues requiring information, (mental processing) End of month deadline Processing Correction approvals, or causing overtime; all decisions projects scheduled P Cndin 1QOver Inventory with none in 2 Production
WASTE
I W
FORMS OF WASTE
O M
Motion Waiting Searching for misplaced M items Employee assigned Material two Movement jobs due to understaffing
Filing documents that will never be used again WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT
Unreasonable -ness
WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE CONTINUOUS IMPROVEMENT
Waste Exercise
Participants identify waste on current state maps.
Jack’s Taxes - Current State Client 40 clients
O
Ta x
MM Send reminder
P
P/T W/T FTQ
10 min ----100 %
is
fm
o W ify t o
Sort receipts & documents
I
P
1 week P/T W/T FTQ
1 week
Jack 30 min --10%
30 min 10 %
I
IN
Prepare worksheet
Confirm deductions
P
Jack P/T 60 min W/T 1 week FTQ 95%
3 weeks
st
P/T W/T FTQ
10 min 1 week
95 %
50 %
cli en
Print & Collate IN TS forms
I
I
IN
3 days
Jack 10 min 1 week 50%
60 min 1 week
o
tb
W C
TS
3 weeks
C
en
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C ng si
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N
IN
John P/T 10 min W/T --FTQ 100%
Do
m cu
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Clarify deductions
C
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ind
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Review & sign forms
I
IN
3 days P/T W/T FTQ
3 days
John 15 min --98%
15 min 98 %
1 day P/T W/T FTQ
3 days
Mail forms
Jack 15 min --100%
15 min 100 %
P/T W/T FTQ
1 day
10 min
John 10 min --100% 140 min 7 wks, 2 days
100 4.7 % % 7 wks, 2 Total Lead Time: days, 140
Lean Principle: Built-In-Quality People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Understanding Customer Requirements Right Product
Right Time! Right Price!!
Built-In-Quality • Product Quality Standards • In-Process Control & Verification • Quality Feedback/Feed Forward
Product Quality Standards • Focus On The Customer – J.D. Power
• Quality Standards must be easily understood by the Team members • Quality Standards must be Clear and Unambiguous
In Process Control & Verification Quality Feedback / Feed Forward Ability to signal for help when Sensing Abnormalities – Quality Must Be Assured In The Process – Error Proofing – In-Process Verification – Feedback / Feed Forward
Lean Principle: Continuous Improvement People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Andon ENABLERS
PROCESS NO.
1
2
3
4
5
6
3
Motion Correction Waiting
O.D. Reference 4
BENEFITS
Andon ENABLERS
PROCESS NO.
1
2
O.D. Reference 4
3
54
5
6
3
Motion Correction Waiting
BENEFITS • Implement corrective action • Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity
Andon ENABLERS •Team System •Team Leader Ratio •Clear Standards •Problem Solving Process •Employee Training •Standardized Work •Mutual Trust/Respect •Process Capability
1
2
O.D. Reference 4
4 3
PROCESS NO.
4
5 6
3
Motion Correction Waiting
BENEFITS • Implement corrective action • Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity
Lean Principle: Short Lead Time People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Lean Principle: Short Lead Time (Just-in-Time Elements) • Simple Process Flow (Single Part Flow, Quick Set Up) • Small Lot Packaging • Level Order Schedules • Pull Systems
Flow All process steps occur in tight sequence (continuous flow), with little or no waiting?
Pull Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.
O SCHEDULE ONLY 1 POINT WHERE YOU CAN, PULL WHERE YOU CAN’T Schedule
Schedule
Supermarket
CONTINUOUS FLOW PROCESSING Batch & Push Processing
21 minutes for first piece
Continuous Flow one”
“make one, move
3 Minutes for first piece for total 12 Minutes order
One Piece Flow - Order entry - Before
Open Mail
Acknowledge
Batch Orders
Calculate Batch Total
Stack and Hold
Orders
File Batch
Enter Batch
One Piece Flow -
Open One Envelope
File Order
Order Entry – After Enter One Order
Acknowledge One Order
Leveling - Heijunka • Uneven customer demand creates a challenge • Variation & fluctuation in volume (spiky customer demand) can lead to waste • In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation
No Good Production Schedule
Leveling
Monday…….400 A Tuesday……100 A, 300 B Wednesday..200 B, 200 C Thursday…. .400 C Friday……….200 C, 200 A
Better: Every Part Every Day
Daily: 140 A, 100 B, 160 C
Even Better: Every Part Every Ship Window Monday 50 B, 70 A, 80 C
50 B, 70 A, 80 C
Why have small lots and leveling? • Small Lot Strategy – Shortens Cycle Time (The amount of time it takes to complete the task) – Reduces Excess Inventory – Improves Responsiveness
• Production Leveling – Minimizes Stocks of Finished Products – Reduces Fluctuations in Flow – Balances Workload
Lean Principle: People Involvement People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Multifunctional Workers • Minimal (or no) Job Description Silos • Rotate Jobs • Perform Several Tasks • Balance the Workload • Standard Work
Lean Principle: Standardization People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Standardized Work • The best combination of people, equipment and material to meet customer demand. • An agreed upon set of work procedures to establish the best sequence for each process. • Start at a baseline and continuously improve
If there is no standard, there is no improvement
Standardized Work Standardized work is used when there is a definable, repeatable process. Production
Materials
Office
Everyone can perform standardized work
Standardized work yields: • • • • •
Shorter lead time Reduced work-in-process Reduced wait time More flexibility, less waste Ability to identify and fix problems • Reduced handling • Better response to customer demand • Balanced workload
TAKT TIME – Component of Standardized Work Synchronizes Pace of Production to Match Pace of Demand Rate for producing a product, and its components, based on rate of delivery. Available Time Takt Time = Customer Requirement / Demand
Lean Principle: Continuous Improvement People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Continuous Improvement •
Everything Can Be Improved. Problems Are Opportunities. “No Problem” is a Problem. • Worker’s Ideas Are a Source of Improvement – Continuous Improvement (Kaizen) Teams – Problem Solving – Job Rotation – Total Productive Maint. – Suggestion Program • Steps to Improvement – Improve, Standardize, Stabilize and Repeat.
The Continuous Improvement Cycle Improvement Standardization Improvement Standardization Improvement Standardization Standardization
Continuous Improvement • Standardized Work contributes to continuous improvement by: – Documenting the current best practice that provides a base from which to improve – Creating the stability necessary to make changes – Providing the tools to make waste highly visible
Lean Principle: Standardization People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Workplace Management
Grasp the Situation • Workplace Organization - 5S Process • Standardized Work • Visual Management
Workplace Management Repeat
Grasp Current Situation
Add Valueadded Work; Standardize
Continuous Improvement to Eliminate Waste
Visual Management Where you have problem points in the flow…
Process Step 1
Process Step 2
Process Step 3
Set up checks for Quality, Timing, Output Make Progress and Problems Visible
Process Step 4
E-Toyota Application of Heijunka Box
Takt Time Bar Chart 30
25
20
(Sec) 15
10
5
0 Stamping
Body
Paint Departments
Trim
Shipping
Future State Questions Relating to Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
Future State Mapping
Using the Value Stream Mapping Tool Scoping the Value Stream
Current State drawing
Future State drawing
Planning and Implementation
Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state.
Designing a lean flow through the application of Lean principles The goal of mapping!
Future State Questions Relating to Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
• Customer requirements? • Work flow smoothly? • Trigger & sequence work?
Jack’s Taxes - Current State
r me o t e s Cu entiv Inc o Fi rdio le n
= 40 days / 40 Clients = 1 per day 40 clients po
W/T FTQ
10 min 100 %
& pts
Do
f yo
3 weeks
30 1 week min 10 %
is
is M
g
n si
Ta
s nt
e
m cu
ts
en
do
x fo
Confirm deductions
Print & Collate TS forms
IN
COMBINE PROCESSES 3 days
Jack John P/T 60 min P/T W/T 1 week W/T FTQ 95% FTQ
60 min 3 weeks 1 week 95 %
rm
s to
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Stand. Work
TS
IN Jack P/T 30 min W/T --FTQ 10%
m
g sin
c do
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Prepare worksheet
receipts & documents
1 week
me
cu
tif No Sort XOXO
IN
P/T
nts
st-
ei
c Re
John P/T 10 min W/T --FTQ 100%
d car
Clarify deductio ns
Re
r nde
• Progress & delays visible? • Process improvements?
Takt Time = Available time / Customer Requirements
Client
Ac c
mi
Send reminder
• Rhythm (leveling)?
Jack 10 min 1 week 50%
10 min 1 week 50 %
Review & sign forms
IN
John 15 min --98%
15 min 98 %
Mail forms
IN
3 days
P/T W/T FTQ
3 days
FIFO
/10
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % Total Lead Time: 7 wks, 2 days, 140 min
7 wks, 2 days
Jack’s Taxes - Current State
r me o t e s Cu entiv Inc o Fi rdio le n
40 clients po
P/T W/T FTQ
10 min 100 %
nts
st-
& pts
Do
f yo
3 weeks
10 %
is
is M
g
n si
Ta
s nt
e
m cu
ts
en
do
• Process improvements?
x fo
Confirm deductions
Print & Collate TS forms
IN
COMBINE PROCESSES 3 days
Jack John P/T 60 min P/T W/T 1 week W/T FTQ 95% FTQ
60 min 3 weeks 1 week 95 %
rm
s to
clie
nt b
y4
Stand. Work
TS
IN
30 1 week min
m
g sin
c do
um
Prepare worksheet
receipts & documents
Jack P/T 30 min W/T --FTQ 10%
me
cu
tif No Sort XOXO
1 week
John P/T 10 min W/T --FTQ 100%
d car
ei
c Re
IN
• Progress & delays visible?
= 40 days / 40 Clients = 1 per day
Clarify deductio ns
Re
r nde
Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)?
Takt Time = Available time / Customer Requirements
Client
Ac c
mi
Send reminder
• • • •
Jack 10 min 1 week 50%
10 min 1 week 50 %
Review & sign forms
IN
John 15 min --98%
15 min 98 %
Mail forms
IN
3 days
P/T W/T FTQ
3 days
FIFO
/10
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % Total Lead Time: 7 wks, 2 days, 140 min
7 wks, 2 days
Jack’s Taxes - Current State
r me o t e s Cu entiv Inc o Fi rdio le n
40 clients po
P/T W/T FTQ
10 min 100 %
nts
st-
& pts
Do
f yo
3 weeks
10 %
is
is M
g
n si
e
m cu
do
Ta
s nt en
ts
x fo
Confirm deductions
IN
Print & Collate TS forms
COMBINE PROCESSES 3 days
1040, 1040EZ 95 % training
s to
clie
nt b
y4
min 1 week 50 %
3 days
FIFO
/10
Review & sign forms
IN
min 98 %
Mail forms
IN
3 days
Jack John Jack John P/T 60 min P/T 10 min P/T 15 min W/T 1 week W/T 1 week W/T --FTQ 95% FTQ 50% FTQ 98% Reduce process time to 75 min Standardize Work 15 60 10
min 3 Individual weeks 1 week
rm
Stand. Work
TS
IN
30 1 week min
m
g sin
c do
um
Prepare worksheet
receipts & documents
Jack P/T 30 min Data entry W/T --Worksheet FTQ 10% training
me
cu
tif No Sort XOXO
1 week
John P/T 10 min W/T --FTQ 100%
d car
ei
c Re
IN
• Process improvements?
= 40 days / 40 Clients = 1 per day
Clarify deductio ns
Re
r nde
Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible?
Takt Time = Available time / Customer Requirements
Client
Ac c
mi
Send reminder
• • • • •
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % Total Lead Time: 7 wks, 2 days, 140 min
7 wks, 2 days
Customer Requirements:
Jack’s Taxes Future State
•Tax Forms completed accurately •Finished before filling time •Lowest possible cost
Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day
Client ile F n
40 clients
o rdi
co
t&
Ac
e Ch
lis ck
te
m
Co
Send Reminder
ple
XOXO IN
c Ac
d or
ion
ile
P/T W/T FTQ
10 min
rm
1 per day Over 8 weeks
F
max 1 day Data entry + print FS forms
John P/T 10 min W/T FTQ 100%
fo
FIFO
Check & sign forms
John
cli en
t
Mail forms IN
Jack P/T 15 min W/T 1 day FTQ 100%
P/T 75 min W/T FTQ 98%
P/T W/T FTQ
15 min
75 min 98 %
o
max 1 day
1 day 100 %
st
10 min
100 min 2 days
1 day 100 %
John 10 min 1 day 100%
100 %
98 % 2 days, 100 min
Measurable Metrics & Performance Metric SPQRC
Current Estimate
From Current State Map
Target from Future State Map
Process Time
720 Min.
140 Min.
100 Min.
6 – 8 weeks
7 Weeks, 2 Days, 140 Min
100%
4.7%
Lead Time First Time Quality Other(s)
2 Days, 100 Min. 98%
Actual (post implementation)
Summary of Results – Potential Impact •
Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time.
•
FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity.
•
Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster.
•
Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients.
•
Reduced personal overtime – Jack does not stay late signing returns anymore.
•
This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically, …
Implementation Planning
Using the Value Stream Mapping Tool Scoping the Value Stream
Current State drawing
Future State drawing
Planning and Implementation
Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles The goal of mapping!
Current State
Changes
Future State
The specific changes (Kaizen Bursts) needed to move from CS to FS are your Objectives The Methods / Action Steps are how you will get there
Business Plan Deployment (BPD) is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change
st en t
OBJECTIVES
Clear & Measurable
TARGETS
Re g
ul
ar
an
d
n
Co n
si
GOALS
io at
Specific
Concrete
n di or Co
Re vi e
w
s
BPD Elements
A METHOD
to reach the targets / GAP CLOSURE PLAN and Strategies
Common Measurements
Business Plan Deployment Is a PDCA Cycle 4
Act (Standardized & Countermeasures) Problem Description
1
Plan Plant Master Plan
Tasks
Direct Cause Why? Cause Why? Why? Cause Why? Cause Why? Root Cause
3
Check
Act
Plan 2
Check
Do
Do (Communicate & Implement)
A c ti o n
2
Scorecard
Annual Business Plan
Leadership’s Role Plan
Act
TEACH!
Check
Do
Wrap-Up
Wrap-up • What did you learn today? • Did the program meet your expectations? • How can we improve this learning event?
Session Goals • Provide an overview of Value Stream Mapping • Demonstrate Value Stream Mapping as a tool to support Lean implementation. • Provide an overview of Lean Principles.
Introduction Name Current Position VSM Experience (if any)
What are the concepts of Lean? •
The elements for Operating a Lean Facility
•
Principles and Elements are Interdependent
•
Develops lean thinking leaders to deliver lean business results
Continuous Improvement
Short Lead Time
People Involvement Standardization
Built-InQuality
Standardization ✦ Definition: Standardization is a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization. ✦ Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve.
✦
Standardization Elements
➨ ➨ ➨ ➨
Management by Takt Time Workplace Organization Standardized Work Visual Management
Change
s u o inu ent t n Co ovem r Imp
Standardization
World Class
Built In Quality ✦ Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence. ✦ Purpose: To ensure that defects are not passed to the customer.
✦
Built-In Quality Elements
➨ ➨ ➨ ➨ ➨
Product Quality Standards Manufacturing Process Validation In-Process Control & Verification Quality Feedback/Feedforward Quality System Management
The Built-In-Quality Motto
Satisfy your Customer. . . Do not
Accept Build Ship
a Defect!
Solve problems through teamwork!
Short Lead Time ✦ Definition: The movement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer. ✦ Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty.
short lead-time long lead-time
✦ Short Lead Time Elements ➨ ➨ ➨ ➨ ➨
Small Lot Packaging Fixed Period Ordering System Controlled External Transportation Simple Process Flow Scheduled Shipping/Receiving
➨ ➨ ➨ ➨
Temporary Material Storage Internal Pull/Delivery Level Vehicle Order Schedules Supply Chain Management
Continuous Improvement ✦ Definition: A process based on standardization, whereby results are achieved, through a series of small improvements. ✦ Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste. ✦ Continuous Improvement Elements Andon Concept Business Plan Deployment Total Maintenance System Lean Design of Facilities, Equipment, Tooling and Layout ➨ Continuous Improvement Process ➨ Early Mfg. Design Integration (DFM/DFA) ➨ Problem Solving ➨ ➨ ➨ ➨
The Continuous Improvement Cycle Improvement Standardization Improvement Standardization Improvement Standardization Standardization
✦The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented.
How Do We Expand VSM Throughout the Enterprise? • All the Principles and Elements apply, however, there is one big difference • In the factory, the process itself is very visible making it easy to see, study and improve • The processes in HR, Engineering, Purchasing, etc... are not as visible • What we need is a tool that will help make the process more visible
Value Stream Mapping • A tool originally used by the Toyota Production System experts to study processes • Developed and refined by John Shook and Mike Rother in Learning to See • Used in manufacturing, engineering and administrative offices by lean experts to improve business processes
What is a Value Stream? A value stream involves all the steps, both value added and non value added, required to complete a product or service from beginning to end
How Does Value Stream Mapping Fit With the Lean Journey • VSM is a tool used to support the implementation of lean strategies.
What Makes Value Stream Mapping Unique? • Visualizes the Process Flow from a systems perspective • Focuses on the customer and the customer’s requirements • Includes information flow and product movement • Summarizes the timeline as it relates to delivery to the customer • Documents performance characteristics of both the Value Stream and the individual process steps
Value Stream Map Elements XYZ Org Supplier Orders
Customer Orders
Internal Scheduling
Supplier Customer Delivery Freq. Delivery Freq.
I
Process 1
Process 2
I
I Inventory
Process Time
Process Time
Wait Time
Wait Time
FTQ
Material Movement via PUSH
FTQ
Lead Time
Value Stream Maps Enable a System View • • • •
Starts with a Focus on the Customer Links process steps and information flow Reveals problems with flow Documents performance of the process – Customer Expectations – Process metrics – Visibility of progress and quality
• • • •
Reveals waste Establishes a common language Provides a blueprint for improvement Gets People involved in creating the future
VSM Analysis – Data Attributes • Lead time = – Processing time + Wait Time / Delays
• Typical batch size • First-Time Quality – Reliability (e.g. system or equipment uptime)
• Rework / revisions – % Complete and Accurate Inputs (% C&A) – Design Changes – Errors
• Number of people involved – % utilization of people
VSM Case Study
Using the Value Stream Mapping Tool Scoping the Value Stream
Current state drawing
Future state drawing
Planning and Implementation
Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the enterprise.
The goal of mapping!
Jack’s Taxes
Jack is a CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If Jack can improve the process for self-employed clients, he could take on more work during that time of year. Generally, the sequence of events begins for each client sometime late January with Jack’s assistant, John, sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. Jack sorts the receipts and documents, finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions. Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms. For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return. Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.
Tax Season: 8 weeks 40 self-employed clients
Data Set
Send Reminder: John P/T = 10 min FTQ = 100% Sort receipts & documents: Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet: Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions: Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50%
Print and Collate IRS tax forms: John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 – 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms: Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client: John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%
Measurable Metrics & Performance Metric SPQRC
Current Estimate
Process Time
12 hours (720 Min.)
Lead Time
6 – 8 weeks
First Time Quality Other(s)
100%
From Current State Map
Target from Future State Map
Actual (post implementation)
Typical Steps for Current State Mapping • Document customer information & need • Identify main processes (in order) • Select data attributes (Q,R,C - minimum) • Perform value stream walk and fill in data boxes (how the process really works) • Establish how each process knows what to process next (how work is prioritized) and document information flow • Calculate process time, wait time, lead time, first time quality, and any other metrics necessary to evaluate your Value Stream
Icons Process Box
MRP MRP Technology Used
Customer
IN In Box (Queue)
Wait-Time
Electronic Information Flow
P/T W/T FTQ
Conversation Information Flow Reminder post-card
Worker Weekly Schedule
Data Box
Withdrawal (Pull)
Movement of “physical” property
Supermarket
Iterations
Movement by Push
Changeover
Kaizen Lightning Burst
XOXO
Leveling, Mix and/or Volume
FIF O
First-In First-Out Flow
Draw the Current State
Jack’s Taxes - Current State Client Suppliers
40 clients
Start with Then Customer Suppliers
Customer
Jack’s Taxes - Current State Client 40 clients
Send reminder
Sort receipts & documents
Process Steps?
Prepare worksheet TS
Confirm deductions
Print & Collate TS forms
Review & sign forms
Mail forms
Jack’s Taxes - Current State Client 40 clients
Ta x
N Send reminder
IN
Sort receipts & documents
1 week P/T W/T FTQ
John 10 min --100%
P/T W/T FTQ
Jack 30 min --10%
is
ify
ot
si
m of
IN 3 weeks
ng
en
cu
s&
c
do
e
m
c
Do
um
m
y4
/10
Review & sign forms
3 days
Jack P/T 10 min W/T 1 week FTQ 50%
cli en
IN
3 days
Jack
o
tb
Process Data, Information Flow, Prepare Confirm Print & worksheet deductions Collate and ProcessINFlow TS TS forms
P/T 60 min W/T 1 week FTQ 95%
st
Clarify deductions
c Re
t eip
um
do
de
en
s nt
ing
in
rp
ts
M is s
m Re
os
for
ts
rd
a t-c
P/T W/T FTQ
John 15 min --98%
IN
Mail forms
1 day P/T W/T FTQ
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
Jack’s Taxes - Current State Client 40 clients
Ta x
N Send reminder
Sort receipts & documents
IN 1 week
P/T W/T FTQ
P/T W/T FTQ
John 10 min --100%
10 min ----100 %
P/T W/T FTQ
1 week
Jack 30 min --10%
30 min ---10 %
is
ify
ot
si
m of
ng
en
cu
s&
c
do
e
m
c
Do
um
Confirm deductions
TS
3 weeks
Jack P/T 60 min W/T 1 week FTQ 95%
X
cli en
tb
IN
3 days
3 weeks
o
Total Leadtime and FTQ
Prepare worksheet
IN
st
Clarify deductions
c Re
t eip
um
m
do
de
en
s nt
ing
in
rp
ts
M is s
m Re
os
for
ts
rd
a t-c
95 %
X
/10
Review & sign forms
3 days
IN
Mail forms
1 day
John Jack John Total of P/T P/T 15 min P/T 15 min P/T 10 min W/T W/T W/T ------=Total 140 minutes of W/T FTQ FTQ FTQ 98% 100% Total Lead Time 100% =Product 7wks, 2days of FTQ = 7 wks, 2 days, and 140 min 10 15 15 10 min min min 1 week 3 days 3 1 day min 7 wks, 2 days ---- = 4.7% ------140 min. days X X X 50 % 98 % 100 100 4.7 %
P/T W/T FTQ
60 min 1 week
Print & Collate IN TS forms
y4
Jack 10 min 1 week 50%
%
% 7 wks, 2 Total Lead Time: days, 140 min
Measurable Metrics & Performance Metric SPQRC
Current Estimate
From Current State Map
Process Time
720 Min.
140 Min.
6 – 8 weeks
7 Weeks, 2 Days, 140 Min
100%
4.7%
Lead Time First Time Quality Other(s)
Target from Future State Map
Actual (post implementation)
Jack’s Taxes - Current State Client 40 clients
Re
& pts tif
No Send reminder
IN
P/T W/T FTQ
P/T W/T FTQ
John 10 min --100%
10 min 100 %
Do
f yo
Sort receipts & documents 3 weeks
P/T W/T FTQ
Jack 30 min --10%
30 1 week min 10 %
m
g sin
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m cu
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Prepare worksheet
IN
1 week
me
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st-
Ta
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Clarify deductio ns
mi
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po
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Confirm deductions
Print & Collate TS forms
IN
TS
3 days
Jack
P/T 60 min W/T 1 week FTQ 95%
60 min 3 weeks 1 week 95 %
P/T W/T FTQ
Jack 10 min 1 week 50%
10 min 1 week 50 %
s to
clie
nt b
y4
/10
Review & sign forms
IN
John 15 min --98%
15 min 98 %
Mail forms
IN
3 days
P/T W/T FTQ
3 days
rm
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % 7 wks, 2 Total Lead Time: days, 140 min
7 wks, 2 days
Waste The elements of production that add no value to the product: waste only adds cost & time Points to Remember About Waste: • It is important to consider waste in the context of the value that the process provides to the customer • Waste is really a symptom of problems in the system. It shows where the problems are • We need to find and address the causes of waste to improve the performance of the system
Waste in a Value Stream • Muri – Waste of unreasonableness or overburden to a person or a machine • Mura – Waste of inconsistency; Waste of unevenness • Muda – The seven forms of waste (COMMWIP)
Shift Mindset
Unevenness
Producing reports that are CURRENT Processing REQUIRED excessive written Sending back forms for Keeping multiple not used, producing reports Delays THINKING communication THINKING togetting determine incomplete orin inaccurate data copies of reports before they areattention needed needed issues requiring information, (mental processing) End of month deadline Processing Correction approvals, or causing overtime; all decisions projects scheduled P Cndin 1QOver Inventory with none in 2 Production
WASTE
I W
FORMS OF WASTE
O M
Motion Waiting Searching for misplaced M items Employee assigned Material two Movement jobs due to understaffing
Filing documents that will never be used again WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT
Unreasonable -ness
WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE CONTINUOUS IMPROVEMENT
Waste Exercise
Participants identify waste on current state maps.
Jack’s Taxes - Current State Client 40 clients
O
Ta x
MM Send reminder
P
P/T W/T FTQ
10 min ----100 %
is
fm
o W ify t o
Sort receipts & documents
I
P
1 week P/T W/T FTQ
1 week
Jack 30 min --10%
30 min 10 %
I
IN
Prepare worksheet
Confirm deductions
P
Jack P/T 60 min W/T 1 week FTQ 95%
3 weeks
st
P/T W/T FTQ
10 min 1 week
95 %
50 %
cli en
Print & Collate IN TS forms
I
I
IN
3 days
Jack 10 min 1 week 50%
60 min 1 week
o
tb
W C
TS
3 weeks
C
en
cu
m
C ng si
do
N
IN
John P/T 10 min W/T --FTQ 100%
Do
m cu
m
Clarify deductions
C
c Re
t eip
s&
m cu
e
do
m Re
ind
e
s nt
ing
p er
s nt
M iss
os
for
ts
rd
a t-c
y4
/10
Review & sign forms
I
IN
3 days P/T W/T FTQ
3 days
John 15 min --98%
15 min 98 %
1 day P/T W/T FTQ
3 days
Mail forms
Jack 15 min --100%
15 min 100 %
P/T W/T FTQ
1 day
10 min
John 10 min --100% 140 min 7 wks, 2 days
100 4.7 % % 7 wks, 2 Total Lead Time: days, 140
Lean Principle: Built-In-Quality People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Understanding Customer Requirements Right Product
Right Time! Right Price!!
Built-In-Quality • Product Quality Standards • In-Process Control & Verification • Quality Feedback/Feed Forward
Product Quality Standards • Focus On The Customer – J.D. Power
• Quality Standards must be easily understood by the Team members • Quality Standards must be Clear and Unambiguous
In Process Control & Verification Quality Feedback / Feed Forward Ability to signal for help when Sensing Abnormalities – Quality Must Be Assured In The Process – Error Proofing – In-Process Verification – Feedback / Feed Forward
Lean Principle: Continuous Improvement People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Andon ENABLERS
PROCESS NO.
1
2
3
4
5
6
3
Motion Correction Waiting
O.D. Reference 4
BENEFITS
Andon ENABLERS
PROCESS NO.
1
2
O.D. Reference 4
3
54
5
6
3
Motion Correction Waiting
BENEFITS • Implement corrective action • Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity
Andon ENABLERS •Team System •Team Leader Ratio •Clear Standards •Problem Solving Process •Employee Training •Standardized Work •Mutual Trust/Respect •Process Capability
1
2
O.D. Reference 4
4 3
PROCESS NO.
4
5 6
3
Motion Correction Waiting
BENEFITS • Implement corrective action • Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity
Lean Principle: Short Lead Time People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Lean Principle: Short Lead Time (Just-in-Time Elements) • Simple Process Flow (Single Part Flow, Quick Set Up) • Small Lot Packaging • Level Order Schedules • Pull Systems
Flow All process steps occur in tight sequence (continuous flow), with little or no waiting?
Pull Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.
O SCHEDULE ONLY 1 POINT WHERE YOU CAN, PULL WHERE YOU CAN’T Schedule
Schedule
Supermarket
CONTINUOUS FLOW PROCESSING Batch & Push Processing
21 minutes for first piece
Continuous Flow one”
“make one, move
3 Minutes for first piece for total 12 Minutes order
One Piece Flow - Order entry - Before
Open Mail
Acknowledge
Batch Orders
Calculate Batch Total
Stack and Hold
Orders
File Batch
Enter Batch
One Piece Flow -
Open One Envelope
File Order
Order Entry – After Enter One Order
Acknowledge One Order
Leveling - Heijunka • Uneven customer demand creates a challenge • Variation & fluctuation in volume (spiky customer demand) can lead to waste • In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation
No Good Production Schedule
Leveling
Monday…….400 A Tuesday……100 A, 300 B Wednesday..200 B, 200 C Thursday…. .400 C Friday……….200 C, 200 A
Better: Every Part Every Day
Daily: 140 A, 100 B, 160 C
Even Better: Every Part Every Ship Window Monday 50 B, 70 A, 80 C
50 B, 70 A, 80 C
Why have small lots and leveling? • Small Lot Strategy – Shortens Cycle Time (The amount of time it takes to complete the task) – Reduces Excess Inventory – Improves Responsiveness
• Production Leveling – Minimizes Stocks of Finished Products – Reduces Fluctuations in Flow – Balances Workload
Lean Principle: People Involvement People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Multifunctional Workers • Minimal (or no) Job Description Silos • Rotate Jobs • Perform Several Tasks • Balance the Workload • Standard Work
Lean Principle: Standardization People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Standardized Work • The best combination of people, equipment and material to meet customer demand. • An agreed upon set of work procedures to establish the best sequence for each process. • Start at a baseline and continuously improve
If there is no standard, there is no improvement
Standardized Work Standardized work is used when there is a definable, repeatable process. Production
Materials
Office
Everyone can perform standardized work
Standardized work yields: • • • • •
Shorter lead time Reduced work-in-process Reduced wait time More flexibility, less waste Ability to identify and fix problems • Reduced handling • Better response to customer demand • Balanced workload
TAKT TIME – Component of Standardized Work Synchronizes Pace of Production to Match Pace of Demand Rate for producing a product, and its components, based on rate of delivery. Available Time Takt Time = Customer Requirement / Demand
Lean Principle: Continuous Improvement People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Continuous Improvement •
Everything Can Be Improved. Problems Are Opportunities. “No Problem” is a Problem. • Worker’s Ideas Are a Source of Improvement – Continuous Improvement (Kaizen) Teams – Problem Solving – Job Rotation – Total Productive Maint. – Suggestion Program • Steps to Improvement – Improve, Standardize, Stabilize and Repeat.
The Continuous Improvement Cycle Improvement Standardization Improvement Standardization Improvement Standardization Standardization
Continuous Improvement • Standardized Work contributes to continuous improvement by: – Documenting the current best practice that provides a base from which to improve – Creating the stability necessary to make changes – Providing the tools to make waste highly visible
Lean Principle: Standardization People Involvement Continuous Improvement
Short Lead Time
Standardization
Built-In-Quality
Workplace Management
Grasp the Situation • Workplace Organization - 5S Process • Standardized Work • Visual Management
Workplace Management Repeat
Grasp Current Situation
Add Valueadded Work; Standardize
Continuous Improvement to Eliminate Waste
Visual Management Where you have problem points in the flow…
Process Step 1
Process Step 2
Process Step 3
Set up checks for Quality, Timing, Output Make Progress and Problems Visible
Process Step 4
E-Toyota Application of Heijunka Box
Takt Time Bar Chart 30
25
20
(Sec) 15
10
5
0 Stamping
Body
Paint Departments
Trim
Shipping
Future State Questions Relating to Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
Future State Mapping
Using the Value Stream Mapping Tool Scoping the Value Stream
Current State drawing
Future State drawing
Planning and Implementation
Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state.
Designing a lean flow through the application of Lean principles The goal of mapping!
Future State Questions Relating to Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
• Customer requirements? • Work flow smoothly? • Trigger & sequence work?
Jack’s Taxes - Current State
r me o t e s Cu entiv Inc o Fi rdio le n
= 40 days / 40 Clients = 1 per day 40 clients po
W/T FTQ
10 min 100 %
& pts
Do
f yo
3 weeks
30 1 week min 10 %
is
is M
g
n si
Ta
s nt
e
m cu
ts
en
do
x fo
Confirm deductions
Print & Collate TS forms
IN
COMBINE PROCESSES 3 days
Jack John P/T 60 min P/T W/T 1 week W/T FTQ 95% FTQ
60 min 3 weeks 1 week 95 %
rm
s to
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nt b
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Stand. Work
TS
IN Jack P/T 30 min W/T --FTQ 10%
m
g sin
c do
um
Prepare worksheet
receipts & documents
1 week
me
cu
tif No Sort XOXO
IN
P/T
nts
st-
ei
c Re
John P/T 10 min W/T --FTQ 100%
d car
Clarify deductio ns
Re
r nde
• Progress & delays visible? • Process improvements?
Takt Time = Available time / Customer Requirements
Client
Ac c
mi
Send reminder
• Rhythm (leveling)?
Jack 10 min 1 week 50%
10 min 1 week 50 %
Review & sign forms
IN
John 15 min --98%
15 min 98 %
Mail forms
IN
3 days
P/T W/T FTQ
3 days
FIFO
/10
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % Total Lead Time: 7 wks, 2 days, 140 min
7 wks, 2 days
Jack’s Taxes - Current State
r me o t e s Cu entiv Inc o Fi rdio le n
40 clients po
P/T W/T FTQ
10 min 100 %
nts
st-
& pts
Do
f yo
3 weeks
10 %
is
is M
g
n si
Ta
s nt
e
m cu
ts
en
do
• Process improvements?
x fo
Confirm deductions
Print & Collate TS forms
IN
COMBINE PROCESSES 3 days
Jack John P/T 60 min P/T W/T 1 week W/T FTQ 95% FTQ
60 min 3 weeks 1 week 95 %
rm
s to
clie
nt b
y4
Stand. Work
TS
IN
30 1 week min
m
g sin
c do
um
Prepare worksheet
receipts & documents
Jack P/T 30 min W/T --FTQ 10%
me
cu
tif No Sort XOXO
1 week
John P/T 10 min W/T --FTQ 100%
d car
ei
c Re
IN
• Progress & delays visible?
= 40 days / 40 Clients = 1 per day
Clarify deductio ns
Re
r nde
Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)?
Takt Time = Available time / Customer Requirements
Client
Ac c
mi
Send reminder
• • • •
Jack 10 min 1 week 50%
10 min 1 week 50 %
Review & sign forms
IN
John 15 min --98%
15 min 98 %
Mail forms
IN
3 days
P/T W/T FTQ
3 days
FIFO
/10
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % Total Lead Time: 7 wks, 2 days, 140 min
7 wks, 2 days
Jack’s Taxes - Current State
r me o t e s Cu entiv Inc o Fi rdio le n
40 clients po
P/T W/T FTQ
10 min 100 %
nts
st-
& pts
Do
f yo
3 weeks
10 %
is
is M
g
n si
e
m cu
do
Ta
s nt en
ts
x fo
Confirm deductions
IN
Print & Collate TS forms
COMBINE PROCESSES 3 days
1040, 1040EZ 95 % training
s to
clie
nt b
y4
min 1 week 50 %
3 days
FIFO
/10
Review & sign forms
IN
min 98 %
Mail forms
IN
3 days
Jack John Jack John P/T 60 min P/T 10 min P/T 15 min W/T 1 week W/T 1 week W/T --FTQ 95% FTQ 50% FTQ 98% Reduce process time to 75 min Standardize Work 15 60 10
min 3 Individual weeks 1 week
rm
Stand. Work
TS
IN
30 1 week min
m
g sin
c do
um
Prepare worksheet
receipts & documents
Jack P/T 30 min Data entry W/T --Worksheet FTQ 10% training
me
cu
tif No Sort XOXO
1 week
John P/T 10 min W/T --FTQ 100%
d car
ei
c Re
IN
• Process improvements?
= 40 days / 40 Clients = 1 per day
Clarify deductio ns
Re
r nde
Customer requirements? Work flow smoothly? Trigger & sequence work? Rhythm (leveling)? Progress & delays visible?
Takt Time = Available time / Customer Requirements
Client
Ac c
mi
Send reminder
• • • • •
P/T W/T FTQ
3 days
1 day
Jack 15 min --100%
P/T W/T FTQ
John 10 min --100%
140 min
15 min
10 1 day min
100 %
100 4.7 % % Total Lead Time: 7 wks, 2 days, 140 min
7 wks, 2 days
Customer Requirements:
Jack’s Taxes Future State
•Tax Forms completed accurately •Finished before filling time •Lowest possible cost
Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day
Client ile F n
40 clients
o rdi
co
t&
Ac
e Ch
lis ck
te
m
Co
Send Reminder
ple
XOXO IN
c Ac
d or
ion
ile
P/T W/T FTQ
10 min
rm
1 per day Over 8 weeks
F
max 1 day Data entry + print FS forms
John P/T 10 min W/T FTQ 100%
fo
FIFO
Check & sign forms
John
cli en
t
Mail forms IN
Jack P/T 15 min W/T 1 day FTQ 100%
P/T 75 min W/T FTQ 98%
P/T W/T FTQ
15 min
75 min 98 %
o
max 1 day
1 day 100 %
st
10 min
100 min 2 days
1 day 100 %
John 10 min 1 day 100%
100 %
98 % 2 days, 100 min
Measurable Metrics & Performance Metric SPQRC
Current Estimate
From Current State Map
Target from Future State Map
Process Time
720 Min.
140 Min.
100 Min.
6 – 8 weeks
7 Weeks, 2 Days, 140 Min
100%
4.7%
Lead Time First Time Quality Other(s)
2 Days, 100 Min. 98%
Actual (post implementation)
Summary of Results – Potential Impact •
Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time.
•
FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity.
•
Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster.
•
Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients.
•
Reduced personal overtime – Jack does not stay late signing returns anymore.
•
This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically, …
Implementation Planning
Using the Value Stream Mapping Tool Scoping the Value Stream
Current State drawing
Future State drawing
Planning and Implementation
Determine the Value Stream to be improved Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles The goal of mapping!
Current State
Changes
Future State
The specific changes (Kaizen Bursts) needed to move from CS to FS are your Objectives The Methods / Action Steps are how you will get there
Business Plan Deployment (BPD) is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change
st en t
OBJECTIVES
Clear & Measurable
TARGETS
Re g
ul
ar
an
d
n
Co n
si
GOALS
io at
Specific
Concrete
n di or Co
Re vi e
w
s
BPD Elements
A METHOD
to reach the targets / GAP CLOSURE PLAN and Strategies
Common Measurements
Business Plan Deployment Is a PDCA Cycle 4
Act (Standardized & Countermeasures) Problem Description
1
Plan Plant Master Plan
Tasks
Direct Cause Why? Cause Why? Why? Cause Why? Cause Why? Root Cause
3
Check
Act
Plan 2
Check
Do
Do (Communicate & Implement)
A c ti o n
2
Scorecard
Annual Business Plan
Leadership’s Role Plan
Act
TEACH!
Check
Do
Wrap-Up
Wrap-up • What did you learn today? • Did the program meet your expectations? • How can we improve this learning event?
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