Value Stream Mapping

Demand Chain Solutions Value Stream Mapping Gaurav Narula

By : Gaurav Narula

Lean Implementation Why do Value Stream Mapping?

Implementation without a plan will lead to disaster Customer Weekly Order 6-wk forecast

Steel Supplier

Rolling 6-wk For

PC & L

Xst pcs/ month eca

Std Pack Qty # Shifts

Level Box

A Value Stream Map is a simple picture that helps you focus on flow and eliminate the waste

DA1 DA2 DA3

Daily

Stamping

Assembly

Welding

6 x / Day

Finished Goods

Layout 3 Shifts TAKT Time CT = C/O Time = DT = Scrap = WIP =

3 Shifts TAKT Time CT = C/O Time = DT = Scrap / Rework= Small Lot WIP =

.Time? days Inv ? days .Time ? days Proc

? days

? days

# Material Handlers Max Size 2 Shifts 0 Overtime

3 Shifts TAKT Time CT = C/O Time = DT = Scrap / Rework = # Operators WIP =

? days

? days TPc /t = ?

MAP THE FLOWS !

Eyes for Waste . . .                            . . . Eyes for Flow By : Gaurav Narula 3

Objectives Explain Value Stream Mapping Complete a Current State Value Stream Map Complete a Future State Value Stream Map with proposed Implementation Plan By : Gaurav Narula

Agenda Introduction to Value Stream Mapping Current State Map Data Collection Activity: Map Current State  Review Current State Map  Design Future State  Future State Map  Consider Key Questions  Summary  Activity: Design Future State By : Gaurav Narula

Session 1

Session 2

Agenda - Session 1  Introduction to Value Stream Mapping  Current State Map  Data Collection  Activity: Map Current State By : Gaurav Narula

Introduction to Value Stream Mapping Definition of Value Stream A Value Stream includes all elements (both value added and non-value added) that occur to a given product from its inception through delivery to the customer.

Requirements

Design

Assembly Plants By : Gaurav Narula 2

Raw Materials

Distribution

Parts Manufacturing

Customer

Introduction to Value Stream Mapping Definition of Value Stream

Typically we examine the value stream from raw materials to finished goods within a plant. VALUE STREAM PROCESS Stamping

Raw Material

PROCESS Welding

PROCESS Assembly Cell

Finished Product

It is also possible to map business processes using Value Stream Mapping. By : Gaurav Narula 1

Introduction to Value Stream Mapping Definition of Value Stream Mapping Value Stream Mapping (VSM) is a hands-on process to create a graphical representation of the process, material and information flows within a value stream. Customer Weekly Order 6-wk forecast

Steel Supplier

Rollin g 6-wk For

ecastX pcs/

month Std Pack Qty # Shifts

PC & L Level Box DA1 DA2 DA3

Daily

Stamping

6 x / Day

Assembly

Welding

Finished Goods

Layout

3 Shifts

3 Shifts

3 Shifts

# Material Handlers

TAKT Time

TAKT Time

TAKT Time

Max Size

CT =

CT =

CT =

2 Shifts

C/O Time =

C/O Time =

C/O Time =

0 Overtime

DT =

DT =

DT =

Scrap =

Scrap / Rework=

Scrap / Rework =

WIP =

Small Lot

# Operators

WIP =

WIP =

Inv.Time ? days Proc .Time ? days

? days

? days

? days

? days

? days

TPc/t = ?

Future State Material, Information and Process Flows with total Product Cycle Time By : Gaurav Narula

Introduction to Value Stream Mapping Objectives of Value Stream Mapping  Provide

the means to see the material, process and information flows.  Support the prioritization of continuous improvement activities at the value stream  Provide the basis for facility layout

AND... Eliminate Waste By : Gaurav Narula 1

Introduction to Value Stream Mapping The Process 6 Week kly

Steel Supplier

Wee

Ro llin

g For

ecast

MRP

er Ord

6 Week Rollin g

MSS

Forecast

Weekl y Orde

Customer

r

Xpcs/month Std. Pack Qty. # shifts

PC & L Weekly Build Schedule

Map the Current State

Daily Ship Schedule

Tues. & Fri. # times/day

I

Stamping

Steel Pin # pcs # days or shifts

I

Welding

Layout

Assembly

I

I

Finished Goods

Layout

TAKT =

TAKT =

TAKT =

# Shifts =

2 Shifts

# Operators

Cycle Time =

Overtime =

Changeover Time=4 hr

Cycle Time =

WIP =

Downtime

Scrap/Rework

DT, Scrap= 10% Rework

2 Presses

Downtime = 20%

Changeover Time =

WIP =

WIP =

Cycle Time =

Customer Weekly Order

WIP = Uptime

Change Over

Inventory Time ? days Processing Time

Scrap

Rollin g 6-wk Forec

ast X pcs / month Std Pack Qty # Shifts

PC & L Level Box

? days ? days

6-wk forecast

Steel Supplier

? days ? days

? days

? days TPc/t = ?

DA1 DA2

Daily

DA3

Stamping

6 x / Day

Assembly

Welding

Finished Goods

Layout

3 Shifts

Analyze the Current State and Design the Future State

3 Shifts

# Material Handlers

TAKT Time

TAKT Time

TAKT Time

Max Size

CT =

3 Shifts CT =

CT =

2 Shifts 0 Overtime

C/O Time =

C/O Time =

C/O Time =

DT =

DT =

DT =

Scrap =

Scrap / Rework=

Scrap / Rework =

WIP =

Small Lot

# Operators WIP =

WIP =

Inv.Time Proc.Time

? days

? days ? days

? days ? days

? days ? days

TPc/t = ?

Activity Establish TAKT & Flow in Tank Ass'y Stamping Changeover Reduction

Create an implementation plan and execute it ! By : Gaurav Narula 4

Reduce Stamping Buffer Move Ass'y to Plant 10 Establish TAKT & Flow in Sender Ass'y Pull To Sender Ass'y Training

1999

2000

1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH

Agenda - Session 1  Introduction to Value Stream Mapping  Current State Map  Data Collection  Activity: Map Current State By : Gaurav Narula

Current State Map The Steps

Step 1: Select a Product Family Step 2: Form a Team Step 3: Understand Customer Demand Step 4: Map the Process Flow Step 5: Map the Material Flow Step 6: Map the Information Flow Step 7: Calculate Total Product Cycle Time Step 8: Detail Off-Line Activities By : Gaurav Narula

Current State Map Step 1: Select a Value Stream (Product Family) ◆ Define

value stream (product family)

–

Identify value stream from the customer end

–

Product should pass through similar processes and common equipment

–

Door-to-door in scope (within plant walls)

◆ List

part numbers

By : Gaurav Narula

Current State Step 2: Form a Team ◆ Select

a cross-functional team

◆ Select

team members who are familiar with the product

◆ Ensure

Manufacturing Cross Functional Team

that team members are trained in the use of VSM

◆ Designate By : Gaurav Narula 4

Industrial Engineering

Sensei

Maintenance

Product Engineering

PC & L

Leadership

a champion (typically a line manager) THIS IS CRITICAL

Current State Map Step 3: Understand Customer Demand

◆ Plan

for Every Part

◆ Production

Control (monthly/weekly forecasts)

◆ Production

Customer

Demand/month: Part A = Part B = Part C = # of shifts =

history (day-to-day, month-to-month

variation) ◆ Sales

(product changes, new business, etc.)

By : Gaurav Narula 1

Current State Map

Customer

Demand/month: Part A = Part B = Part C = # of shifts =

Stamping

Takt = C.T. = D.T. = FTQ = C/O Time = 4 hrs. Lot Size = # of Shifts WIP =

Changeover

By : Gaurav Narula

Welding

Takt = C.T. = D.T. = 20% FTQ = C/O Time = Lot Size = # of Shifts WIP =

Downtime

Assembly

Takt = C.T. =

Shipping

Inventory Part A =

D.T. = FTQ = 90% C/O Time = Lot Size = # of Shifts WIP =

FTQ

Part B = Part C = # of shifts =

Current State Map Step 5: Map the Material Flow Customer Supplier Demand/month: Part A = Part B = Part C = # of shifts =

2 x/ week

2 x/ day

Stamping

I

Welding

I

1,200 pcs

I

Takt = C.T. = D.T. = FTQ = C/O Time = 4 hrs. Lot Size = # of Shifts WIP =

Changeover By : Gaurav Narula

I 500 pcs

800 pcs

1,500 pcs Takt = C.T. = D.T. = 20%

Takt = C.T. = D.T. =

FTQ = C/O Time = Lot Size =

FTQ = 90% C/O Time = Lot Size =

# of Shifts WIP =

# of Shifts WIP =

Downtime

Shipping

Assembly

FTQ

Inventory Part A = Part B = Part C = # of shifts =

Current State Map Step 6: Map the Information Flow PC & L 6 week rolling forecast Weekly Order

6 week rolling forecast

Customer

Weekly Order Daily Ship Schedule

Supplier

Demand/month: Part A = 705 pcs. Weekly Build Schedule

Part B = 600 pcs. Part C = 1650 pcs. # of shifts =

2 x/ week

2 x/ day

Welding

Stamping

I

1,200 pcs

I

Takt = C.T. = D.T. = FTQ = C/O Time = 4 hrs. Lot Size = # of Shifts WIP = 25 pcs.

Changeover By : Gaurav Narula

1,500 pcs

Assembly

I

Takt = C.T. = D.T. = 20% FTQ = C/O Time = Lot Size = # of Shifts WIP = 60 pcs.

Downtime

800 pcs

Shipping

I

Takt = C.T. = D.T. = FTQ = 90% C/O Time = Lot Size = # of Shifts WIP = 550 pcs.

FTQ

500 pcs

Inventory Part A = 750 pcs Part B = 600 pcs Part C = 1650 pcs # of shifts =

Step 7: Calculate Total Product Cycle Time PC & L 6 week rolling forecast Weekly Order

6 week rolling forecast

Customer

Weekly Order Daily Ship Schedule

Supplier

Demand/month: Part A = 705 pcs. Part B = 600 pcs. Part C = 1650 pcs. # of shifts =

Weekly Build Schedule

2 x/ week

2 x/ day

Stamping

I

1,200 pcs

Welding

I Takt = C.T. = D.T. =

1,500 pcs

FTQ = C/O Time = 4 hrs. Lot Size = # of Shifts WIP = 25 pcs.

Changeover

By : Gaurav Narula .4 days .008 days

Assembly

I

I

800 pcs Takt = C.T. = D.T. = 20%

Takt =

FTQ = C/O Time = Lot Size =

C.T. = D.T. = FTQ = 90% C/O Time = Lot Size =

# of Shifts WIP = 60 pcs.

# of Shifts WIP = 550 pcs.

Downtime

FTQ

.02 days

500 pcs

Inventory Part A = 750 pcs Part B = 600 pcs Part C = 1650 pcs # of shifts =

.17 days

.27 days

.5 days

Shipping

.18 days

TPc/t = 2.5 days 1.0 days

Current State Map Step 8: Detail Off-Line Activities  Show

on the map using general icons

 Detail

on another sheet using either reference VSM and/or process flow-charting Press Room

Fork Truck

Die Bench

Die Room Receiving

I

Schedule Board (Forecast)

By : Gaurav Narula

Die Room Shipping

I

Dies

Dies

12 shifts

2 shifts

(Remove from Schedule Board)

Current State Map Additional Mapping Icons Supermarket

Signal Kanban Withdrawal Kanban Production Kanban By : Gaurav Narula

Kanban Path

Kanban arriving in batches

Kanban Post

MAX 50 PCS

FIFO

First-In First-Out Flow

Physical Pull Leveling

Process Kaizen

Data Collection  It

is not necessary that attribute data be precise.  It is necessary that the information at least be directionally correct.

By : Gaurav Narula 1

 Knowing that uptime is 82.7% vs. 82% is normally not necessary.  An assumption of 80%, however, when reality is 65% can be detrimental in that it may substantially misdirect the future state development and the prioritization of improvement activities.

Agenda - Session 1  Introduction to Value Stream Mapping  Current State Map  Data Collection  Activity: Map Current State By : Gaurav Narula

Data Collection Attribute Data to Collect Shipping/Receiving schedules  Pack sizes at each process  Demand rates by process (Takt Time)



Work-in-process inventory



Overtime per week



Process cycle times



Number of product variations at each step

Scrap



Batch (lot) sizes

Rework



Changeover times



Changeover frequencies









Working hours and breaks Inventory Points (location & size)



How Operations are scheduled



By : Gaurav Narula



Downtime

Data Collection Data Box

Tailor the data box for your plant’s needs.

By : Gaurav Narula

t a D

x o B a

The data box should be open ended to allow for additional attributes.

Introduction to Value Stream Mapping Tools

Scrap Manufacturing Process

Outside Source/ Customer

Kaizen Lightning Burst

Buffer or Safety Stock

Manual Information Flow Data Box Electronic Information Flow

I Inventory

Production Kanban

oTruck oo Shipment Withdrawal Kanban Finished Goods to Customer

By : Gaurav Narula

Push Arrow

Signal Kanban

Supermarket

Kanban Post

Data Collection What is Takt Time?

Takt Time is the rate at which production should run to meet customer demand The idea is to synchronize the pace of production to the pace of sales. Your Operating Time per Shift Customer  Requirement per Shift 27,000 sec 460pieces = 59sec

59 sec. 59 sec. 59 sec.

By : Gaurav Narula 1

Data Collection How to Calculate Takt Time? 1. Determine Total Customer Requirements for the affected process. 2. Determine the Scheduled Runtime (S.R.) for the affected process: Scheduled Runtime = (Effective Minutes) - (Planned Downtime) Effective Minutes = (minutes per shift) - (approved breaks) Planned Downtime is the amount of time an operation is down for scheduled reasons.

3. Calculate Takt Time: Scheduled Runtime

Takt Time = Total Customer Requirements By : Gaurav Narula 3

Data Collection Identify Opportunities for Improvement

? By : Gaurav Narula

Agenda - Session 1  Introduction to Value Stream Mapping  Current State Map  Data Collection  Activity: Map Current State

By : Gaurav Narula

Activity: Map the Current State Complete By

Task

Approximate Total Time:

•

Complete draft of current state value stream map.

•

Review draft and identify open issues.

•

Resolve open issues. Complete current state value stream map.

• Session 2

Review current state value stream map.

By : Gaurav Narula

Session 2 Agenda     

Review current state Over view of developing future state Develop future state Develop action plans to get to future state Assign owners, timing, and frequency of review for action items  Report to leadership Support Learning By : Gaurav Narula

Agenda - Session 2  Review Current State Map  Design Future State - Purpose  Future State Map  Consider Key Questions  Summary  Activity: Design Future State By : Gaurav Narula

Agenda - Session 2 Review Current State Map • Design Future State - Purpose • Future State Map • Consider Key Questions • Summary • Activity: Design Future State By : Gaurav Narula

Design Future State - Purpose Purpose



Define how the plant will operate in the future



Serve as the blueprint for implementation

Without it, the Current State Map is nothing more than wallpaper ! By : Gaurav Narula 1

Future State Map The Steps

Step 1: Validate Customer Demand Step 2: Draw the Future State Process Flow Step 3: Map the Future State Material Flow Step 4: Map the Future State Information Flow Step 5: Calculate Total Product Cycle Time Step 6: Detail Off-Line Activities

Step 7: Outline a Plan By : Gaurav Narula 2

Future State Map Original Condition I

Inj: 2 Molding

MSS

Change Over

MSS

I

Sender Ass’y

I

Step7: Outline a Plan Future Condition

I

2 Fuel Pump Ass’y

2

No Flow

2 Inj: Molding

I

Sender Ass’y

2

Level ABABA. . .

10 Stamping

Staging by Truck

Labels

Attendance Tank 4 Ass’y

I

Ass’y Plants

10

Change Over

Tank 4 Ass’y

Stamping

No Flow

12

7

Uptime

Cycle-Time Driven. Batches.

Perform to TAKT & Pitch.

Ass’y Plants

card by card (Pitch = 14 Units)

Zone Maintenance & Fast Response

Produce to Order Load Leveling and Pull

METRICS Item Total product cycle time

Current

Activity Target Establish TAKT & Flow in Tank Ass'y Stamping Changeover Reduction

Parts / Person Hour

Reduce Stamping Buffer

Delivery Performance

Move Ass'y to Plant 10

Inventory (days) Overtime Uptime

By : Gaurav Narula

Establish TAKT & Flow in Sender Ass'y Pull To Sender Ass'y Training

1999

2000

1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH

Future State Map The Steps

“Do It” Implement - Implement - Implement Action - Action - Action - Action - Action

“Check It - Follow up” By : Gaurav Narula

Future State Map The Steps

A simple way to approach the Future State Map is to begin by modifying the Current State Map. By : Gaurav Narula

Agenda - Session 2  Review Current State Map  Design Future State - Purpose  Future State Map  Consider Key Questions  Summary  Activity: Design Future State By : Gaurav Narula

Consider Key Questions What is Takt Time? Will you build to a finished goods supermarket or directly to shipping? Where can you use continuous flow processing? Where will you need to use supermarket pull systems to control production of upstream processes? At what single point in the production chain will you schedule production? (Typically, this will be the final process.) How will you level the production mix at the pacemaker process? What increment of work will you consistently release and take away at the pacemaker process? What process improvements will be necessary at the value stream to flow as your future state design specifies?

By : Gaurav Narula

Consider Key Questions The Wall of Protection:

Will you build to a finished goods supermarket or directly to shipping?

Our Manufacturing Plant

The Customer

Finished Goods Supermarket



Protects your customer from significant process variation.



Protects your manufacturing operation from significant demand variation. By : Gaurav Narula

4

Every effort should be made to minimize these variations. These variations are driven by one of the seven forms of waste and should be eliminated. Eliminate Waste

Consider Key Questions Where can you use continuous flow processing? (Batch Process vs. Continuous Flow)

Batch Process Process “A”

I

Process “B”

I

Process “C”

Continuous Flow (One-Piece Flow) Process “A”

Process Process “B” “C” Elapsed Time: 01 Minute

By : Gaurav Narula 3

Elapsed Time: 60 Minutes

Consider Key Questions Batch Process Process “A”

Where can you use continuous flow processing? (Batch Process vs. Continuous Flow)

I

Process “B”

I

Process “C” Elapsed Time: 60 Minutes

Continuous Flow (One-Piece Flow) Process “A” By : Gaurav Narula

Process “B”

Process “C” Elapsed Time: 01 Minute

Consider Key Questions Where can you use continuous flow processing?

This question is asking where you will require supermarkets or where you will have coupled processes. Evaluate the following factors when considering this question:  Cycle Time Compatibility  Equipment Uptime/Downtime (remember that coupling can multiply the effects of downtime)  Equipment Investment  Flexibility By : Gaurav Narula 2

Consider Key Questions Where will you need to use supermarket pull systems to control production of upstream processes?

 Typically, a pull system is needed wherever continuous flow stops.  The only exception would be to use a simple FIFO system.  FIFO may work in situations where only inventory quantity needs to be controlled (not sequencing, batch sizing, etc.).  Visual quantity control is needed - without physically counting parts and scheduling machine operation.

FIFO

By : Gaurav Narula 2

Consider Key Questions At what single point in the production chain will you schedule production?

PC&L

oxox Molding



Usually, you will schedule production at the final process.



Exceptions to this might be where your final process is supplied through FIFO.

Assembly FIFO

By : Gaurav Narula 1

Pacemaker Process

Consider Key Questions How will you level the production mix at the pacemaker process?  

Consideration must be given to level both the mix and overall quantity of product scheduled for production. Leveling of the production schedule is a fundamental requirement for the efficient management of operations Without Leveling

Workload

Workload

Time By : Gaurav Narula 2

With Leveling

Time

Consider Key Questions How will you level the production mix at the pacemaker process? (Continued) Leveling of the overall production quantity must be supported by the leveling of the product mix. Traditional Scheduling

Level Scheduling

Daily Production Mon 4370 Part D Tue 4370 Part D

Part D

Daily Production Part A Part B Part C

Wed 4370 Part D Thu 4370 Part C

Part D

Fri

Part A 218 Part D Part A Part B Part C

3277 B 1092 A

Part B 655 Part C 874 Part D Part A Part B Part C

Part D

Part D 2622 Part D Part A Part B Part C

Part C

Mon.

Tue.

Wed.

By : Gaurav Narula 2

Part D Part A Part B Part C Part D

Part A & B

Thu .

Fri.

Mon.

Tue.

Wed.

Thu.

Fri.

Consider Key Questions How will you level the production mix at the pacemaker process? (Continued)

 Leveling

of the product mix must be supported by small lot production.

 Small

lot production must be supported by quick set-up.

By : Gaurav Narula

Consider Key Questions How will you level the production mix at the pacemaker process? (Continued)

An effective way of communicating the level schedule to manufacturing operations can be through the use of a load leveling box. By : Gaurav Narula

Consider Key Questions

What increment of work will you consistently release and take away at the pacemaker process?

Macro-Leveling Mon Build Order

Part A Part B Part C Part D Part E

By : Gaurav Narula

Tues

Wed Thurs

Fri

Sat

Sun

Consider Key Questions What increment of work will you consistently release and take away at the pacemaker process? (Continued)

Micro-Leveling Build Order Sequenced and Timed

8:40

8:50

9:00

9:10

9:20

Card (Part A) Card (Part B)

Card (Part C)

One column per pitch (Equals 10 minutes)

Card (Part B)

Card (Part B)

Std Pack = 10 pcs Takt Time = 1 min.

8:30

Card (Part C)

Part C

Card (Part B)

Part B

By : Gaurav Narula

8:20

Card (Part A)

Part A

8:10

Card (Part A)

One row per part number

8:00

Kanban (pull card)

Agenda - Session 2  Review Current State Map  Design Future State - Purpose  Future State Map  Consider Key Questions  Summary  Activity: Design Future State By : Gaurav Narula

Consider Key Questions

What process improvement are necessary for the value stream to flow as your future state design specifies?

This step is key to any successful value stream improvement activities.  Data

is analyzed to determine waste (inhibitors to flow).

 Plans

are developed to reduce or eliminate waste.

By : Gaurav Narula 4

This is the step where we can most impact the bottom line.

Summary Objectives Review

 Explain Value Stream Mapping  Complete a Current State Value Stream Map  Complete a Future State Value Stream Map with proposed Implementation Plan

By : Gaurav Narula

Agenda - Session 2  Review Current State Map  Design Future State - Purpose  Future State Map  Consider Key Questions  Summary  Activity: Design Future State By : Gaurav Narula

Activity: Design Future State Task

Approximate Total Time:

Using the current state map for your selected value stream, design your future state. Outline a plan. Review future state design and plan.

By : Gaurav Narula