CSUN

Engineering
Management

Six Sigma Quality

Engineering

Week 10
Lean Enterprise
Continuous Improvements (Kaizen)

What is a Kaizen Blitz?

A Kaizen Blitz is a cross functional multi-level team of 5 to 10
members working intensely for 10 to 14 hours a day, to rapidly
develop, test and refine solutions to problems and leave a new
solution in place in just a few days. They dont plan, they dont
propose, they do.

A Kaizen Blitz, used in conjunction with the Toyota

Production System (TPS) and current Lean
Manufacturing principles, can serve as a catalyst for
the initial implementation of a plant wide Lean
Manufacturing initiative.
This focus on immediate change is what sets Kaizen activity
apart from other improvement tools.

Cycle of an Event
Schedule the
Event
Recognize the Need
Select System /
for Change
2 3 4 Process to Optimize
Our Way of Life

Formalize the
Change

12

Process Owner:
Accepts Change

11
10

Make the Change

6
9

Develop the Objectives

Process Owner: Review
& Explains Objectives
Learning the Tools
5S, Process Flow
TAKT / Cycle Time

Capture the Details

Set Goals, Data Gathering
Make a Detail Analysis
Plan

Where do we start first?

Define the problem

Anywhere Work is being done

THE CUSTOMER DOES NOT PAY FOR WASTE

Module 0013

Waste is being generated

How Material Spends

Time In The Factory

Better
90's

80's

Large
opportunity

Value
Added
4%
NonValue
Added
96%

NonValue
Added
84%

Value
Added
16%

We can make
this better
but it is not
our focus

How Paper Spends Time

In An Office Process

VA 18%

We will also focus

on front end
throughput
opportunities

ref: Otis - NAD, 1991

Module 0013

NVA 82%

Total Cost
This is not a
labor reduction
program

Direct Labor As a Percent of Total Cost.

Module 0013

6%

The New Equation

Profit

Old View

Sales
Price

Mfg.
Cost

Sales
Price

Supplier Cost
Increases

Cost + Profit = Sales Price

Value
Profit

New Reality

Sales
Price

Mfg.
Cost

Profit = Sales Price - Cost

Supplier Cost
Increases
Either way
Mfg. Costs have
to decrease to
maintain or
increase profits

Process Layout And Flow

Mass Production System

Lay it out
Receiving

WIP

WIP
Form

WIP

OP1 WIP

WIP

WIP

WIP

OP2 WIP

Trim
WIP

Clean

OP4 WIP
Inspection

Store

Clean

Punch
WIP

Inspectio
n

WIP

OP5 WIP

OP3 WIP
Heat Treat

WIP

OP6 WIP

Store
Module 0013

Raw Material

Separating The Value Added

From Non-Value Added
Receive Inspect Move Store Count Move
Anneal Move Wheelabrate Inspect Move
Mill to Face Inspect Move Wash Move Store Move

Drill CBore, Through Hole & Venthole Inspect Move Deburr Venthole Move
Mill Clearance Inspect Move Wash Degrease Move
Carburize Move
Anneal Move Degrease Inspect Move Wash
Hone Stem I.D. Inspect Move Wash Move Store Move
Mill Nut Surface Inspect Move Wash Move

Module 0013

Grind Top Face Inspect Move Wash Move Store Move

Measure it

Turn Stem I.D. & O.D. Inspect Move Wash Move Store Move

Separating The Value Added

From Non-Value Added
REDRILL & TAP Move Wash Degrease Move
INSTALL SCREWS Move
HARDEN Move Degrease Move

1. Why?

2. Why?

REMOVE SCREWS Move

TEMPER Move Wheelabrate Inspect Move
HONE STEM I.D. Inspect Move Wash Move

3. Why?

FINISH GRIND TOP FACE Inspect Move Wash Move

Inspect "A" Dimensions Move
Inspect "B" Dimensions Move Select Fatigue Test Samples Store Move
Audit Move (If quality Audit is Acceptable) (Rejected - Rework) Store
Receive in Finish Stock Room Count Store Issue Move

BAG Inspect (If Acceptable) Move

4.Why?

5.Why?

SUMMARY:
SUMMARY:17
17VALUE
VALUEADDED
ADDEDELEMENTS
ELEMENTS/ / 93
93NON-VALUE
NON-VALUEADDED
ADDEDELEMENTS
ELEMENTS
LEAD
LEADTIME:
TIME:345
345HOURS/23
HOURS/23HOURS
HOURSDAY
DAY==15
15DAYS
DAYS

Module 0013

SHIPPING

Crosshead Cell
Value Added Summary

PRE -JIT

17

EVENT
1

15

EVENT
2
EVENT
3

NONVALUE
ADDED
93

SQUARE LEAD
FEET % TIME

STAFFING

--

15 Days

19

26

30%

4.5 Days

15

12

21

65%

3.1 Days

13

10

11

75%

1.6 Days

Small change

The Lean focus

Module 0013

VALUE
ADDED

Process Flow Summary

Sitting in a rack
or in queue

Is lead-time important?which should you attack first?

Typical
U.S. Average
Process Time
was 4%

Adding value

Process Layout Flow And

Mass Production Process
This could also be office structure process islands
HEAT
TREAT

RAW
MATERIAL
STORES

CLEANING

TRIMMING

PUNCHING

FORMING

TO
FINISHED
STORES

INSPECTION

CUTTING

Module 0013

RAW
MATERIALS

The General Concept

Anywhere work is being done, waste is being generated.
1. Specify VALUE
From your customers perspective, not yours. What does the
customer want? What are they willing to pay for?
2. Identify the VALUE STREAM and Eliminate Waste
The entire value delivery process from inquiry to receipt of
cash.
3. Make value FLOW - Ideally One-Piece-At-A-Time
4. Let the customer PULL value through the process.
Not suppliers or machine technology
5. Pursue PERFECTION

Module 0013

Critical Ingredients Of Lean Are:

Lean Thinking-Defined
Total Elimination of.

Human activity that absorbs resources but creates no value.

Mistakes that require rework.
Production of items no one wants so inventory piles up.
Processing steps which arent actually needed.
Movement of employees/goods without any purpose.
Downstream people/processes waiting for upstream activity.
Goods/services which do not meet the needs of the customer

.Waste

Module 0013

Module 0013

Eliminate Waste Out Of Total Activities

Lean Manufacturing

The Fundamental Concept

Make What is needed
When it is needed

Module 0013

In the Amount Needed

New Competitive Realities

You need more than cost reductions to steal

customers away from your competition. You cannot
cost reduce yourself to prosperity, you need to grow.

Module 0013

As
As Time
Time is
is Compressed,
Compressed,
Quality,
Quality, Productivity
Productivity and
and Cost
Cost
are
are Improved
Improved

Lean Manufacturing
Is a Methodology for the Systematic
Elimination of Waste

Lean

Non-Lean
Rework

7 Types of Waste

Stores

Applies to all
business processes!

Overproduction
Waiting
Transportation
Unnecessary
Processing
Inventory
Unnecessary Motion
Correction
+ A Person

Module 0013

Waste of Overproduction
THE PRIMARY WASTE
To produce more parts than necessary or at a rate
faster than required.

Module 0013

(Both contribute to excess inventory and waste time

that could be spent making required product.)

Waste Of Correction

Module 0013

To correct or repair a defect in materials or

parts adds unnecessary costs. (rework)

Waste Of Processing

Module 0013

To process unnecessary work which does not advance

or improve the quality of the product.
(performing multiple transactions to receive material,
transacting parts into inventory... then take them out to
load machines.)

Waste Of Inventory

Inventory is a drain on an organizations overhead.

The greater the inventory, the higher the overhead
costs become.

Module 0013

(With excess inventory, we cover-up unacceptable

change over times, excessive downtime, and
operator inefficiency)

Waste Of Motion

Any movement of people or machinery which does

not contribute added value to the product.

Module 0013

(excessive walking distance between operations)

Waste Of Waiting

Idle time between operations or events.

Module 0013

(operator waiting for machine to finish cycling or

machine waiting for operator to load new parts)

Why Focus On Human

Instead Of Equipment?

Equipment is a sunk cost; it depreciates

over time, wears out or becomes
obsolete.
Your competition can easily match
you machine for machine

The Operator is an ongoing resource that

should appreciate over time. They gain
skill and knowledge.

Module 0013

Your competitive edge is in how you

deploy your value adding people

Module 0013

How does lean specifically

attack the problem?

Tools Of The Lean Enterprise

*5s
*Supplier Certification
*Cell layout(U shape)
*Takt time

*Visual Controls

*Process Mapping

*5 Whys
*Right Sizing
*Single minute
exchange of die
(SMED)
*Quality at source
*Signal lights

*Curtain

*POU inventory
*Right sizing

*1 part pull

*Time
observations

*Line stop

*% loading

*Autonomation

*Mistake proofing *Normal/Abnormal

*Standard Work
*Value adding
*TPM
analysis

Module 0013

*Multi-skills training *Kanban

5-S Workplace
Organization Steps

1.SORT

Clearly distinguish what is needed and what is not

Remove what does not support the least waste way

2.STRAIGHTEN

Organize the way things are kept, making it easier

for anyone to find & return items to their proper
location in the sequence used

3. SHINE

Keep things clean-floor, machines, desks, files

equipment-neat & tidy

4. STANDARDIZE Maintain & improve the first 3Ss

5. SUSTAIN

Achieve the discipline / habit of properly

maintaining the correct procedures

Lean Manufacturing
Involves the precise definition of Normal in such a way that the
Abnormal is exposed in Real-Time and can be eliminated.
The result is a Continuous Improvement Environment

Module 0013

Identify The Waste

Based on
Observation:
Normal
vs.

Kaizen

Non Value-Added
Eliminate
Eliminate

Waste

Module 0013

Value-Added

Abnormal

Dont Forget
It is the not the person doing the work that is ugly. It is the
Waste that is ugly.
We are not stripping people of their dignity.
We are attacking Waste

Module 0013

Waste
Monster

One Piece Flow Model

TRIMMING

CLEANING

Fixture

Fixture

PUNCHING

FORMING

Fixture

Fixture

CUTTING

Fixture

Fixture

FINISHED
STORES

RAW
MATERIALS

Fixture

Fixture

PART

Module 0013

HEAT TREAT

Physical Layout
Supports one piece flow
Supports Standard Work In Process
Supports Standard Work
Supports visual control

Each kaizen reduces the cell

size Kaizen after Kaizen after
Kaizen

Module 0013

Visual Controls

The

use of signals, lights, measurements, diagrams,

charts & signs to :
Clearly define the normal or desired condition
Expose the abnormal undesired condition - real time

Material Replenishment System

How they work

This same shelf with additional Visual Controls becomes more
meaningful

Standard Work may be :

Cards

Green - normal
Yellow - reorder point passed
Red - replenishment past due, contact supplier immediately
Blue - abnormal, investigate - consumption changed, supplier
overshipped

Module 0013

Material Replenishment System

1. Ensures
the right thing
( Instrument, supply, etc )

Need :
Quantity :
Required :
Where :

valve - 636/11
2
10am
700 Cell

in the right quantity

at the right time
to the right location
in the right orientation

Module 0013

2. Simple signs used to trigger material replenishment according

to usage at Takt time cadence

Standard Work
There can be no improvement no Kaizen without the
basis of Standard Work
Not
machine

Standard Work details the motion of the operator

& the process sequence in producing a part

It is the statement of the least waste way of production

through the best combination of people & equipment, the
least amount of Work In Process possible, showing where
to check for quality & where there are safety issues

It provides a routine for consistency of an operation & a

basis for improvement
It tells us how to make one
to our TAKT time

Module 0013

Single Minute Exchange Of Die

S.M.E.D.
A process for dramatically, logically & methodically reducing set
up or changeover time
To enable the significant reduction of lot sizes & the approach
towards single piece flow
Supports mixed model, daily production

The goal is to change a set up in one TAKT time

Level loaded demand (1A,1B,1A,1B)

In other words PROFESSIONALISM

Module 0013

Large machine centers set ups must be done during machine cycle time

Takt Time
From the German word for meter
The time which reflects the rate at which customers buy one unit
We can work
with this

TAKT Time =
It is what it is

T.A.
S.U.

Time Available
Sold Units
Not much you
can do about
this

Module 0013

5 Whys

Root Cause
Module 0013

1. Why did the system fail?

A: The motor burned out
2. Why did the motor burn out?
A: The shaft seized
3. Why did the shaft seize?
A: There was no lubrication
4. Why was there no lubrication?
A: The line filter was clogged
5. Why was the line filter clogged?
A: It was the wrong sized mesh!

TPM
The lack of TPM results in Breakdowns
Breakdowns are a result of undetected or ignored equipment
deterioration
75% of all equipment deterioration can be detected by a trained
operator
The remaining 25% can be detected by trained maintenance
technicians performing preventative & predictive maintenance
therefore all breakdowns can be prevented

Do a careful analysis of when the machine does not need to be run( lunch
periods,breaks, second shift, weekends, holidays etc.)
75% of all machine downtime is due to dirt and lack of proper lubrication.

Module 0013

Process Mapping

A visual representation of a process that can include:

process steps
sequence
duration
distance

A process map can be constructed at a high level - broad

process steps
or at a lower level - with process detail

You have to do more than just ask someone how long an

operation takes. Generally, they will not include walking and
waiting, and will give highly inaccurate set up times.

One Part Pull

The opposite of batch production
Processing product one at a time at the unit level at which the
product is sold
Lean Manufacturing delivers its greatest improvements,
maximizes its problem exposure, and enables constant top
quality when one part pull is relentlessly applied

Exposes the problems (Makes it ugly). It is hard to

hide problems in the system with no buffer stock

Module 0013

Repairs are made on 1 part

rather than the entire batch

Mistake Proofing
Mistake proofing goal - Zero defects
Mistake Proofing is a method that uses simple, low cost devices to
check each part at each operation to prevent mistakes from
occurring
1. Built into product design
2. Built into process
3. Automatic check system

Work to achieve defect prevention

not defect detection

Module 0013

Right Sizing
Only the right amount of resources

equipment
space
work surface
material

to support one piece flow

Must first improve the operation, then improve the

equipment. You do not want to size the equipment to
accommodate a wasteful cell

Module 0013

Right Sizing
Buy only the minimum amount of equipment, preferably built in
house
Do not always think that expensive, high performance machines
are always the best, but consider a consistency of the whole
production
First improve operation and afterwards carry out improvement
of equipment, otherwise it might cause the mechanization of
waste.

Module 0013

Multi-Skilled Workers
The leanest process may require workers to provide effort in a
variety of tasks
Rigid job classifications & definitions are in direct conflict with
teamwork & reduce flexibility to meet customer needs
Multi skilled workers are capable of maximizing teamwork &
performance

Especially important to 1 part flow in an

assembly operation

Module 0013

Curtain Operation
A Curtain Operation :

Is often out of the cell/build flow area

Does not lend itself to one piece flow
Could be a batch type operation such as heat treat or cure
Is often a monument

A Curtain Operation done effectively enables one piece flow

Module 0013

Curtain Operation
Curtain
Operation

Outbound
The rabbit chase
Module 0013

Inbound

Supplier Certification
A tool designed to make suppliers take the full responsibility for
the quality of their product, such that incoming inspection by the
purchasing firm may be eliminated
Suppliers with proven track records of excellent performance
are certified & expected to guarantee defect - free products

Requires a good deal of homework done

on your specifications and drawings
to make sure you are not the problem.

Module 0013

Design For Manufacturing

And Assembly
A conscious process of making design decisions only after
fully evaluating the manufacturing processes, tools, quality
control measures & equipment impacts

Module 0013

Quality Function Deployment

A technique where product performance features and the
characteristics which deliver them are determined by the Voice
of the Customer & paid heed to by the producer ( by listening &
acting )
The quality responsibility is then deployed throughout the
organization by tying compliance activities directly to the
fulfillment of these customer requirements

Module 0013

Standard Work

Module 0013

Standard work is a tool that defines the interaction of the

operator and machine in producing a part.
It details the motion of the operator and the sequence of
the machine. It provides a routine for consistency of an
operation and a basis of improvement.

Time Observation
One of the critical tools for documenting reality
One time observation form per operator
Two observers for each operator.

One operates time piece

One records the information

Focus on the operator, not part flow or machine cycle time

Module 0013

Standard Work Sheet

Master Cylinder
12345-678909
Scope of
From Pick up raw material
Operations
To Finished product

L210

M110

6
7

Inspect

T420

Quality
Check

Safety
Precaution

Standard Workin-Process

# of Pieces of Std.
Work-in-Process

Raw Material

Finished Product

TAKT
Time

40

Cycle
Time

40

Operator
Number

Module 0013

3
L310

Date prepared
or revised: 3-5-97

OPERATOR
NUMBER
MODEL NUMBER
AND NAME
WORK
SEQUENCE

STEP
NUMBER

STANDARD WORK
COMBINATION SHEET

Spec. Steel
Fin. Grind O.D.

OPERATION NAME

TIME
Man.

Auto.

Walk

p.u. & blow off part

--

--

unload, load, cycle start

23

--

gage 2 dia. - go/no go

--

load drill hopper

15

14

38

TOTALS

DATE
PREPARED

1/22/98

QUOTA PER
SHIFT

690

DEPT.

123

TAKT TIME

40

OPERATION TIME (IN SECONDS)

5

WAITING 22

10

15

20

25

30

TT 45

35
40

50

12

Manual
Automatic
Walking

wwwwww

Standard Work Sheet

Ideally, the Cycle Time

should equal the Takt Time
TT

then not enough work has

been assigned

TT

CT =TT
Module 0013

In the case where the cycle

time does not come up to the
Takt Time...

Tools To Document Reality

Time Observation Sheet

Standard Work Sheets
Standard Work Combination Sheet
Percent Loading Chart
Process Capacity
5S Worksheet

Module 0013

Lean Manufacturing
Involves the precise definition of Normal in such a way that the
Abnormal is exposed in Real Time and can be eliminated.
The result is a Continuous Improvement Environment

Module 0013

waste

Visual
Controls

Module 0013

Takt Time
Analysis

s
es
oc w
Pr
Flo ing
pp
Ma

Ob T
se ime
St rv
ud ati
ie o n
s

Make It Ugly

The Goal

Module 0013

Total Elimination of
Waste

 The 5s

Right sizing

Cell layout

POU

Time observations

Signal lights

Kanbans

Value adding analysis

Takt time

Visual controls

1 part pull systems Curtain

Process
Standard work
mapping

Module 0013

Typical Lean Activities Initiated

At A Kaizen Event

Two Steps Forward,

One Step Back

Two steps forward, one

step back is OK
No steps forward is not

Bad news is
good news

Implementation errors will

occur, these should be
rewarded if done for the right
reason
Anchor Dragging is
unacceptable
Steady State in our industry,
or any other, will lead to
failure
Its not OK to do nothing to
improve our operation on the
grounds that the risk of
failure, (step backward)Management
is
must monitor
too high

To Lean Implementation
One piece flow

Step One

Choose Your Project Well

High Probability For Success

Good Visibility
Short In Duration
Requires Several Lean Tools
Is Measurable

Step Two

Choose Your Team Well

Open Minded And Enthusiastic
Select People Who Work With The Product

Operators
Maintenance People
Supervisors
ME/IE
Planners

Step Three

Train! Train! Train!

Overview Of Six Sigma
Continuous Improvement
Single Piece Build (Use The Stockless Production Video Made
By Hewlett Packard
Use Your Black Belts

Step Four

Calculate Takt Time

This Is The Customers Drum Beat
Takt Time = Units Purchased Per Day Divided Into Actual Time
Available In A Shift
Example: 27,000 Seconds / 20 Units = 1350 Seconds Per Unit Or
(1) Unit Every 22.5 Minutes

Takt Time

The time (pace) required to produce a

product based on customer demand.
Often expressed as: TAKT TIME = Time Available
Customer Demand
Example: Elevator Manufacturer
-Customer Demand:
-Daily Demand:
-Time Available:

50 Hydraulic Elevators / Week

10 Hydraulic Elevators
435 Minutes / Day (480 min less cleanup, breaks)

435 / 10 = 43.5 Minutes per elevator = TAKT TIME

This pace must be maintained in order to satisfy customer demand!

Cycle Time

The time for an operator

to do a prescribed task
and return to his/her
original stance.

Lead Time

The amount of time it takes

to convert raw materials into
finished goods (External Customer)
or to move goods from one part
of the process to another
(Internal Customer)

Cycle Time vs. Lead Time

Lead Time
Task
1

MOVE

Task
2

WAIT

Task
3

Task
4

Task
5

SET-UP

RUN

Cycle Time

Takt Time vs. Lead Time

>TAKT Time is a rate of demand
>Lead Time is how long the whole process takes
>They are NOT related!

Lead Time
1 Unit / Minute
TAKT Time

WIP

PROCESS

Can a process have a 1 hour TAKT Time and a 6 month Lead Time?

Step Five

Study The Project

Team Meetings To Discuss The Project
Set Objectives

25% Improvement In Through Put

50% Reduction In Floor Space
65% Reduction In Inventory
Meeting The Takt Time
Establish The Metrics

Batch vs. One-Piece Flow

(Process oriented layout with Lot Size = 5)
Processing Time = 1 Minute / Unit
Process Flow

10

15

TIME ELAPSED (MINUTES)

20

Manufacturing Lead Time

NOTE: Typically, the distances between process is long in a
process oriented layout, making difficult to transfer units
one-by-one.

Batch vs. One-Piece Flow

(Process oriented layout with Lot Size = 1)
Processing Time = 1 Minute / Unit
Process Flow

TIME ELAPSED (MINUTES)

Manufacturing Lead Time

4
Add the
Balance of
Units (4 x
1/Unit)

Boeing 737 Lean Cell

Boeing 737 Lean Cell

One 737 airplane

every 9 days

Value Stream Analysis

What you can Expect

Value Stream Analysis Kaizen Training contains what you
need to know to get the job done, not everything you need to
know to be an expert.
Part 1

Lean concepts and terminology

Part 2
The process by which we create future states

Lean Thinking
Value in the Eyes of the Customer
The Value Stream
Flow
Pull of the Customer
Perfection

Value Added

Value is added any time we physically change our

product towards what the customer is buying

If we are not adding value, we are adding cost or waste

Lean Manufacturing drives the systematic elimination of

waste

ORDER

Value-Added Time : Minutes

Time in Plant :
Weeks

CASH

KEY QUESTION Are my customers willing to pay for this ????

Value Added vs. Non-Value Added

Value added
5%

LEAN = ELIMINATING THE 7 WASTES

Overproduction

Non-value added

Waiting
Transportation
Non-value added
processing
Excess inventory
Excess motion
Defects

Typically 95% of Total Lead Time is Non-Value Added!!!

WAITING

OVERPRODUCTION

W astes
PROCESSING

MOTION

TRANSPORTATION

DEFECTS

INVENTORY

7 Basic Types of Waste (Toyota)

Overproduction producing more than what is demanded by the

customer
Inventory Storing more than the absolute minimum needed
Transportation the unnecessary movement of materials
Waiting waiting for the next process step
Excess processing due to poor tool or product design
Wasted motion unnecessary reaching, walking, looking for parts,
tools, prints, etc
Defects scrap and rework

What is Flow ?

Producing and moving one item at a time (or a small and

consistent batch of items) through a sequence of process steps
as continuously as possible, with each step making just what is
requested by the next step.

TRADITIONAL

Lean Lexicon Version 1 p9

CONTINUOUS FLOW

Continuous Flow More Efficient & Faster

Traditional Batch Layout

Continuous Flow Layout

Supermarket Pull System

Production KANBAN

Withdrawal KANBAN

product

product

SUPERMARKET

CUSTOMER PROCESS goes to supermarket and withdraws what it

needs when it needs it.
SUPPLYING PROCESS produces to replenish what was withdrawn.
PURPOSE: Controls production at supplying process without trying to
schedule. Controls production between flows.

Mike Rother
Learning to See

Takt Time
Takt time paces production to the pace of customer
requirements.
Total daily operating time
Total daily customer requirement

Takt Time =
Operating time =

Customer
Requirement
Takt time

1 shift x 8 hours (2) 20-min. breaks =

mins/day
=

880 units/month
20 days/month
440 mins/day
44 units/day

440

= 44 units/day

= 10 mins/unit

What is a Value Stream ?

A Value Stream is all the actions, value creating and nonvalue creating, required to bring a product from order to
delivery

Starts with raw materials

Finalizes at the end-customer
Involves several businesses

Value Stream Mapping

Helps you to see the sources of waste in the value stream

Shows the flow of information and material
Forms the blueprint for lean implementation (Imagine trying to
build a house without a blueprint).
Helps you to see more than just the single process level
Provides a common language for talking about manufacturing
processes
Makes decisions about the flow apparent, so they can be
discussed
Ties together lean concepts and techniques, which helps to avoid
cherry picking Improvement projects
Mike Rother
Learning to See

What is Value Stream Analysis?

Value stream maps describe a value stream
Value stream analysis is a planning process

Uses value stream maps to communicate

Information Flow
Material Flow

Three value stream maps are created

Current state
Ideal state
Future state (3 months from now)

Action plans are developed for the future state map

The Value Stream Analysis Process

Phase 1-Pre-event work

Phase 2-The Main Event

Phase 3-Accountability Process

Value Stream Analysis Process

Phase 1
Pre-event Planning

Pre-Event Work

Three weeks prior to the event

Determine team members

Define the objective of the team
Select the area and topic
Logistics (conf. Rm., times, facilitator supplies, etc.)
Invite team members to the event
Clarify roles and responsibilities
Event leader-value stream manager from the area (owns
resources and results)
Event facilitator-CI Leaders who manage the improvement
process and share in ownership of results
Subject matter experts

Pre-Event Work

Two weeks prior to the event

Part/quantity analysis (select representative part number)

Gather and review data (Yield, job closures, CONC, etc.)
Determine future demand
Review prior event data
Review any customer issues
Review any requirements for capital equipment

One week prior to the event

Verify customer demand
Review above data

Value Stream Analysis Process

Phase 2
The Main Event

The Main Event

1.
2.
3.
4.
5.
6.
7.

Training
Gemba Walk
Value Stream Map-Current State
Develop Ideal State Map
Develop Future State Map (3 months out)
Develop Future State Plan
Management Report Out

VSM Event Steps 1 &2

Training and Gemba Walk
1.

Training

The concepts of Lean need to be applied to classroom training

as well as our other processes

2.

This is a learn by doing process

We will minimize classroom learning

Gemba Walk

Gemba means, shop floor or where the process is

We need to go there so we know what we are mapping

VSM Event Step 3

Current State Map
3.

Value Stream Map-Current State

1.
2.
3.
4.

Map the physical flow (manufacturing loop, customer loop,

supplier loop)
Map the information flow
Complete the lead time data bar
Visually identify waste
1.
2.

5.

Identify value added/non-value added (red, yellow, green

dots)
Visually identify the most significant opportunities with kaizen
bursts.

Summarize all information and metrics (date, P/N, times,

inventory, OTD, quality, etc.)

Elements of Value Stream Maps

30 Days

SupplierSupplier

Monthly Orders

MRP

880

Customer LoopCustomer

Loop

Takt Time = 440 min/44

= 10 min/unit

Information
Bi-Monthly

Manufacturing Loop
45 Days

Op 1

1 Day

1
1.6

2 Days

S/U = 0.08 hr
CT = 0.9 min

S/U = 1 hr
CT = 1.6 min

45

Op 2

Op 3

S/U = 0.08 hr
CT = 0.9 min

2
0.9

2 Days

Op 4
S/U = 0

Op 5

1
60

Lead Time Data Bar

5 Days

S/U = 0.08 hr
CT = 1.2 min

CT = 60 min

2
0.9

1 Day

Op 6

S/U = 1.95 hr
CT = 40.3 min

5
1.2

1 Day

1
40.3

Total = 57 Days
Total = 1 Hr. 44.9 Min.

Manufacturing Loop Questions

What are the changeover times?

What are the quantity of machines per process?
Count all work in process (WIP)
Look for evidence of quality problems
Look for processing waste
Is there great distances between processes?
Is the product flexible or made to order?
Is there obvious batch processing?

Customer Loop Questions

Who and where are your customers?

What are the product lines or families?

Future marketing plans? Review growth

potential.

What is the total yearly order requirement? Quantity by product family or

product type

What is the high, low and mean ordering pattern? Monthly or quarterly
high & low for several periods

How often do we deliver to our customer?

What takt time do we supply to?

G.M.
AT&T

Production Control Questions

Where in the production chain

do we trigger production?

How much work do we release

at one time?

How long does it take to go from

customer order to production order?

How do we physically schedule production?

How do we react to customer emergencies?

Supplier Loop Questions

#1 question, how do you tell suppliers

what to ship, make, etc.?

When and how often do they get purchase

orders from Customers?

When and how do we change the purchase order?

When and how often do suppliers ship product and how?

Is it level? (Truck, train, etc.)

Do we have standard pack quantities?

Are suppliers aware of our inventory quantities?

Are we sure of suppliers inventory? How?

Do we have a supplier training program?

Information Flow Questions

How are the manufacturing and procurement orders

distributed?

Who gets them

How frequently
What is the process of generating them

How are the shop order schedules generated and

revised? Are there shortage meetings? What parts of
the manufacturing loop are scheduled by MRP? Make
sure to document the informal (hot lists) as well as formal
(MRP) information channels.

Current State Lead Time Data Bar

Cycle Time
(CT)

Lead
Time
Total

DOH Inventory
8 Days

4 Days
4 Hrs

12 Days

(1 Hr.)

4 Hrs

VA Time (yes/no)

CT Total

Mapping Icons

COMPUTER WIP

Visually Identify Waste

As a team, review each process step for elements that
are value added and non value added
Each step can have any combination of value added,
type 1 waste and/or type 2 waste

Identify value added with a green dot

Identify type 1 waste (waste but unavoidable in the current
state) with a yellow dot
Identify type 2 waste (pure waste, eliminate immediately)
with a red dot

As type 2 waste is identified, generate the actions to

remove it (this will be the beginning of the future state
implementation plan)
Prioritize the waste opportunities and identify the biggest
opportunities on the CS map with kaizen bursts

VSM Event Step 4

Ideal State Map
Avoid shared resources
Assume that anything is possible

Our customers are happy

Our profits are up
High job satisfaction
Capital is available if needed

Create an ideal state map

Map the physical flow

Map the information flow
Complete the lead time data bar

VSM Event Step 5

Future State Map (3 months out)
What of the ideal state map can be implemented in 3
months?
Identify short term goals

LEAD TIME
INVENTORY
PRODUCTIVITY
QUALITY
CAPACITY

Work from your current state map

VSM Event Step 6

Future State Plan

This plan answers the question, what actions need to be completed

in the next 90 days to achieve the future state?
Think back to the visually identify waste step
Plan addresses all red dots and Kaizen bursts

ActivGOAL/
ActivGOAL/
ity
OPPORTUNITY
ity
OPPORTUNITY

ACTION
ACTION

PRIORITY
PRIORITY

LEADER
LEADER

The electrical
The electrical
station is located
station is located
1 Test
1 Test away from the
away from the
test area.
test area.

Re-locate
Re-locate
electrical station
electrical station Short Term
Short Term
closer to test
closer to test
area.
area.

TEAM
TEAM

Only three
Only three
technicians are
technicians are
2 Assy
2 Assy certified
certified
solderers.
solderers.

Train and certify

Train and certify
more technicians
more technicians Short Term
Short Term
to perform
to perform
soldering
soldering

Joe
Joe

Details are being

Details are being
issued in the
3 Plan'g issued in the
3 Plan'g middle of the
middle of the
process
process

Review kitting
Review kitting
process
process

Long Term
Long Term

John
John

OPEN
OPEN

DATE
DATE
EST
EST
COMP
COMP

1/5/2005 1/10/2005
1/5/2005 1/10/2005

ACT
ACT
COMP
COMP

STATUS/REMARKS
STATUS/REMARKS

THE ELECTRICAL TEST

THE ELECTRICAL TEST
STATION HAS BEEN
1/7/2005 STATION HAS BEEN
1/7/2005RELOCATED NEAR THE
RELOCATED NEAR THE
TEST AREA
TEST AREA

4 MORE TECHNICIANS
1/5/2005 4/30/2005 3/18/2005 4 MORE TECHNICIANS
1/5/2005 4/30/2005 3/18/2005HAVE BEEN TRAINED
HAVE BEEN TRAINED

1/5/2005 3/15/2005
1/5/2005 3/15/2005

Most of the detail parts

Most of the detail parts
are part of POU inventory.
are part of POU inventory.
The leftovers will be
The leftovers will be
looked at case by case.
looked at case by case.

VSM Event Step 7

Management Report Out

This report out is how the team publicly commits to

management

What the goal of the event was

What was learned
What was accomplished during the event
What the outcome is. How much better will we be?
Description of the future state
Commitment of the action plan

Value Stream Analysis Process

Phase 3
Accountability Process

The Accountability Process

The momentum for improvement is never higher then at

the end of the event when everyone can really see the
waste. As a result the accountability process must start
immediately following the event (next day).
Display the current state map, future state map and
future state plan in the the affected area.
Commit to a stand up meeting in front of the maps and
plan (daily at first, and then less frequent as applicable)

Focus on Due date control. Not meeting dates is letting

the team down

Questions? Comments?