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Value
Stream
Mapping
Introductions
Jan Vlasak
Agenda
Current State Map Future State Map
Agenda
Day 1: Topic/Activity Opening Introduction Goals of Workshop Review of Lean Principles Break Introduction to Value Stream Current State Map Exercise 1 Customer Loop Lunch Report-outs Exercise 2 Internal Loop Report-outs Break Exercise 3 Supplier Loop Current State Report-outs Opportunities In Future State Example Future State Map Adjourn Time 8:00 AM 8:15 AM 8:30 AM 8:35 AM 9:00 AM 9:20 AM 10:05 AM 11:00 AM 12:00 AM 12:45 PM 1:00 PM 2:25 PM 2:40 PM 2:55 PM 3:45 PM 4:05 PM 5:00 PM 5:45 PM
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Agenda
Day 2: Topic/Activity Introduction Day 2 Exercise 4 Customer Loop Time 8:00 AM 8:15 AM
Break Report-outs
Exercise 5 Internal Loop Report-outs Lunch Exercise 6 Supplier Loop Obstacles Value Stream Plan Exercise 7 - VSP Final Report-outs
9:30 AM 9:45 AM
10:00 AM 11:45 AM 12:00 AM 12:45 PM 1:30 PM 2:00 PM 2:15 PM 3:00 PM
3:45 PM 4:00 PM
4:15 PM
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Company Strategy
Cost Reductions
Customer Price Labor Inflation
Increase Earnings
JIT Production
Six Sigma Quality Empowered Teams Visual Management Pursuit of Perfection
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Our Needs
Tools to Support Linkages Between Processes Emphasis on Processes and Systems Horizontal Organization Based on Teamwork Leadership and Followership
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Performance
Operational Performance Determines Financial Results Lean Enterprise Is the Key to Successful Operational Performance
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The AM of Tomorrow
Complete Understanding of Lean Principles Commitment and Discipline to Live by these Principles Sense of Urgency to Exceed the Targets and Deadlines Commitment to Strive for Perfection
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Potential Benefits
Inventory Reduction Quality Improvement Productivity Improvement
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Goals of the Workshop L earn to See E stablish a Plan A ct on Opportunities D rive Change E nable Teams R educe Lead Time
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Think Lean
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Waste
Waste is Only the Symptom of a Deeper Problem Focus on the Source Rather than the Symptom
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Overproduction
Parts Parts Parts Parts Parts Parts Parts
Parts
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Takt Time
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Pull System
Production KANBAN Withdrawal KANBAN
Supplying Process
Product Product
Customer Process
Supermarket
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Process A
Process B
Process C
Process D
FLOW
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Leveling
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A Brief Introduction to
Value
Mapping
Stream
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Results
Factor Improvement PPM ... 91.3 % Scrap . 57.6 % Training hrs./Employee ...182.2 % Suggestions/employee ... 347.5 % Labor cost % of sales . 36.4 % WIP hours . 91.6 % Changeover time . 72.5 % Lead time .. 87.0 %
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Operator 1 Operator 2
Exit
F/A
Spin
Spin
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Opportunities = 70%
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Why???
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F L O W
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Establishing Flow
Information
Production Flow
Material
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Elimination of Waste
A Broadened Perspective
Identify and Target the Source of Waste in the Entire Value Stream, rather than Just the Work Unit
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Adding Value
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Visionary Tool
Planning
Communication
Implementation
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Sub-Assembly
Supplier
Stamping
Down Time
Takt Time
Customer
Assembly
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A Lean Stream!!!
Sub-Assembly
C/O Time
Cycle Time
Down Time
Stamping
Final Assembly
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The Value Stream Plan will Play a Fundamental Role in the Optimization of your Value Stream
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Managements Role
See Overall Flow Develop the Vision
Lead Implementation
Support EI Teams
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Managements Commitment
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Whenever there is a product for a customer there is a value stream The challenge lies in seeing it
AM
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At this Time Please Read through the Example Data Set for General Exhaust We will Begin Drawing the Example Current State Map in Just a Few Minutes
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Customer General Auto Customer Information 20,000 pieces per month Container size = 300 pieces Customer operates on two shifts Two deliveries to customer per week
General Auto
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General Exhaust Production Control Department Electronically receives General Autos 13 week forecast and enters into MRP Electronically issues 13 week forecast to General Components Receives daily firm order fax from General Auto Secures components through daily fax to General Components Generates daily departmental schedule based on MRP
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Production Process: Sub-Assembly 1 Work Time: 20 Days per months 2 shifts in all production departments 8 hours per shift 2 ten minute breaks per shift and unpaid lunch Sub-Assembly 2 Final Assembly
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Final Assembly 3 operators Takt Time = 55.2 seconds Cycle Time = 55 seconds Total Work Content = 146 seconds Changeover Time = N/A Uptime = 85% Observed Inventory
Sub-Assembly 2 3 operators Takt Time = 55.2 seconds Cycle Time = 55 seconds Total Work Content = 130 seconds Changeover Time = N/A Uptime = 90% Observed Inventory
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Sub-Assembly 1 1 Operator Takt Time = 27.6 seconds Cycle Time = 24 seconds Total Work Content = 24 seconds Changeover Time = 30 minutes Uptime = 97% Observed Inventory
2 days raw material .25 days work in progress 1 day finished goods
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6. In detail, describe how customer orders are placed (Kanban, MRP, forecasts, firm orders, etc.)
8. How much finished goods inventory did you find (count it!)?
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10. How is buffer and safety stock distinguished from finished goods inventory?
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Customer Loop
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Report Outs
Customer Loop
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Internal Loop
Tie the Customer Loop to Internal Processes Establish the Relationship between Internal Processes
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1. Define the processes involved in the production of the part from a plant level (birds eye) perspective. Ex. Stamping Work Unit Sub-Assembly Final Assembly
2. For each of the plant level processes find the Takt Time, # of Operators, Work Unit Cycle Time, Total Work Content, Changeover Time, Uptime %, Number of Shifts, Available Operating Time (in seconds).
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3. For each of the plant level processes count and calculate the finished goods, work in progress, and raw materials inventory.
4. How do the production work units know when and what to produce? (Be very specific about this process)
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Internal Loop
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Report Outs
Internal Loop
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Supplier Loop
Tie Internal Loop to Supplier Understand Flow of Information and Material
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Worksheet Exercise 3: Supplier Loop 1. Supplier Info? Supplier Part # # of Shifts Delivery Frequency Amount of Supplier Inventory Quantity per Container
Additional Comments:
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2. Describe in detail how we decide we need more material and how we inform our supplier of our needs (MRP, Kanban, Forecasts, Firm Orders).
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Supplier Loop
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Report-Outs
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Opportunities in Containerization
Small Container Quantity
Increases Flexibility Reduces Customer Fluctuation
Overall Benefit
Reduces Inventory Dollars
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Takt Time
Takt Time =
=
=
60 seconds
(55.2 * 300 pieces) 60 seconds 276 minutes 60 minutes (4 hrs 36 m)
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60 seconds
(55.2 * 25 pieces) = 23 min 60 seconds
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Container Size
Delivery Frequency
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1300 1250 1200 1150 1100 1050 1000 950 900 850 800 0 1 2 3 4 5 6 7 8 9
Produce Order
10 11 12 13
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Produce Order
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Overall Benefit
Reduction in Inventory
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460 min
460 min
T
60 min 400 min 460 min
W
Truck 2 = 1,840 = 110,400 Takt = 44.16
460 min
460 min
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Opportunities in Kanban
Pull System
Links Production to Customer Demand
Overall Benefit
Improves Material Control Prevents Overproduction Reduces Inventory
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Pull System
Production KANBAN Withdrawal KANBAN
Supplying Process
Product
Customer Process
Product
Supermarket
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Process A
Process B
Process C
Process D
FLOW
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Opportunities in Leveling
Leveling Post
Reduces Customer Demand Fluctuation Reduces Delivery Pitch Fluctuation Pulls Product Based on Takt Time
Overall Benefits
Eliminates Scheduling Levels Customer Demand
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Forecast
Week
Average
5000
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Customer Fluctuation
5400 5200 5000 4800 4600 0 1 2 week 3 4 5
Part A Average
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Leveling Post
Average 1000
Container Size 25
# Containers 40
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Buffer
Part A
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Overall Benefits
Identifies Labor Opportunities Lowers Inventory Eliminates Scheduling
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6 0 6
6 1 2
6 1 8
6 2 4
6 3 0
6 3 6
6 4 2
6 4 8
6 5 4
7 0 0
7 0 6
7 1 2
7 1 8
7 2 4
7 3 0
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Overall Benefits
More Capable Processes
Employee Involvement
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Key Measurable
Target Trend Line
Improvement Activities
Data Analysis
Pareto
Improvement Tracking
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Overall Benefits
Adding Value/ Removing Waste Improving Flexibility
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Work Balance
Current State
Sub-Assembly 2
60 50 40 30 20 10 0 1 2 3 Manual Walk
Final Assembly
60 50 40 30 20 10 0 1 2 3 Manual wait Walk
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Work Balance
Future State
Final Assembly
60 50 40 30 20 10 0 1 2 3 4 5
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Walk Manual
Overall Benefits
Flexibility in Production Prevents Overproduction
Reduces Inventory
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Pull System
Assumptions: Production Schedules Will Always Change Production Will Never Go According to Schedule It Is Human Nature to Overproduce
Production Kanban
Withdrawal Kanban
Preceding Process
Store
Following Process
New Product
Needed Product
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Overall Benefits
Flexibility in Production Reduction in Inventory
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18.0
16.0
14.0
12.0
MINUTES
10.0
8.0
6.0
4.0
2.0
DAY
1996 YTD MO
LAST
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11
12
13
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15
16
17
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22
23
24
25
C/O #1 C/O #2 C/O #3 C/O #4 C/O #5 C/O #6 C/O #7 C/O #8 AVG. 16.3 14.7 13.2 18.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 GOAL
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Type of Activity
PLANT EXERCISE
VIDEO TAPE ANALYSIS
No. Description 1 2 3 4 5 Can be made ext. immediately Obvious waste - remove immediately Transfer to ext. after improvements Adjustment activity Remaining activity for Continuous Improvement
Activity Described
Proposed Solution
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3 3 Supply Table 6 5
Game Board 4
5
2
Supplier Development
Identify Key Suppliers
Overall Benefit
Inventory Reduction Cost Reduction
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It is Time To Draw
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Value
Stream
Mapping
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Step 2
Opportunities with Containerization
Effect of Container Time Fluctuation due to Container Quantity Future State Proposal for Container Quantity
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Exercise 4: Continued
Step 3
Opportunities with Customer Pull Timing
Identify Delivery Pitch Calculate Inventory Held Due to Pitch Future State Delivery Frequency/Timing
Step 4
Opportunities with Leveling
Calculate Leveling Post Develop Point of Pull Future State Leveling System
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Exercise 4: Continued
Step 5
Opportunities in Takt Time Production
Determine Kanban Delivery Frequency to Cell Future State Takt Time Post
Step 6
Map the Future State Customer Loop
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1. Formula:
Takt Time =
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Report-Outs
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Step 1
Are BOS Charts Being Used? Identify the Main Causes of Downtime
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Exercise 5: Continued
Step 2
Identify Manual and Walk Time Identify any Bottlenecks
Do Opportunities Exist to Combine Work Units in the Value Stream Based on Labor Requirements?
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Exercise 5: Continued
Step 3
Map the Future State Internal Loop
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Worksheet 1 Uptime %
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1. Identify manual and walk time: 2. Identify any bottlenecks: 3. Calculate the labor requirements: 4. Does this labor requirement reflect what you witnessed on the line?
5. Do opportunities exist to combine work units in the value stream based on labor requirements?
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Report-Outs
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Step 2
Opportunities with Delivery Frequency
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Exercise 6: Continued
Step 3
Opportunities with Containerization
Do Component Container Sizes Match Finished Goods Container Size?
Step 4
Map the Future State Supplier Loop
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Worksheet 1 Kanban
3. Are move cards used to deliver raw materials to the work unit?
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Report-Outs
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Remember:
Start with the Customer Include Material and Information Flows Data Boxes!!!
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Report-Outs
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Implementation
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Do
Support the Implementation
Check
Analyze the Results
Act
Standardize the Process
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How Do We Implement?
Internal Loop
Supplier Loop
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...How Do We Implement...
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Customer Loop
Goal
Decrease Container Quantity Increase Delivery Frequency Finish Goods Pull System Inventory
Measurable
300 Pieces to 25 Pieces 2 per Week to 1 per Day 1.75 Days of F/G
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Internal Loop
Goal
Increase Uptime % Establish Continuous Flow Reduce Changeover Time Internal Pull System
Measurable
Best in Class - 97% (0) Inventory Between Work Units (30) to (15) Minutes Production/Move Cards
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Supplier Loop
Goal
Implement Kanban
Measurable
Supplier Cards
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Date: Champion:
Product Family:
Plant-Level Objective
Owner
1 Customer
2 Internal
3 Supplier
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Plant-Level Objective
Owner
Gold Team
Inc. Uptime % 2 Internal Cont. Flow (S/A 2 to F/A) Reduce C/O Time Int. Pull Sys. Kanban
Blue Team
3 Supplier
4/Day
Red Team
300 to 25
Step 1
Develop Value Stream Plan
Step 2
Discuss Roadblocks to Implementation How Do We Eliminate Roadblocks
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Date: Champion:
Product Family:
Plant-Level Objective
Owner
1 Customer
2 Internal
3 Supplier
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Report-Outs
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Prepare the organization to see opportunities for improvement and turn those opportunities into reality
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Move Upstream
Identify the internal suppliers Final step is supplied parts
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Things to Remember
Benchmark the Current Condition
Dedicate the Resources Monitor the Progress
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Be Impatient!
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