VALUE STREAM MAP

Music Analogy
Operating a factory may be compared to playing music in an orchestra.
Rhythm Cycle Time Tone Quality operation of each process Harmony Line balance Music Score Standard Work

Standard work is a tool to achieve maximum performance with minimum waste.

Value Stream
Because Value stream map gives a visual representation of material and information flow for a product flow ,it is an indispensable tool for managing process improvements. The VSM will help in understanding Wastes which inhibit the flow Information flow Material Flow Using VSM anyone should be able to discern information on actual material and information flow

Value Stream Steps

1. 2. 3. 4. 5. Commit to lean Choose the value stream Learn about lean Map the current state Identify the lean metrics

Major steps in Value Stream

DEMAND
TAKT time
Pitch Buffer Inventory Safety Inventory Finished goods super market etc

FLOW
Continuous flow
Work cells Line balancing QCO KANBAN FIFO lanes Supermarkets etc

LEVELING
Paced withdrawal
Heijunka box Runner etc

Current State Map Date : 1 Team 1 Pitch 4 Work place Std. work Champion: 3 Prod. 2 AAAAAAAA Takt Time Cont. Flow

5
Lead Time
Base Proposed

Total Cy. time

Base Proposed Base

WIP
Proposed

On time delivery
Base Proposed

Ex.PPM rate
Base Proposed Base

Uptime
Proposed

!. Commitment to lean 2 . Choose the value stream 3. Learn about lean 4. Map the current state

Future State Map

AAAAAAAA
6 6 Takt time = Pitch =

Kaizen Proposal ist 1St 2nd

8 3rd 4th

5.Identify lean metrics, 6- Map the future state map, 7 Create Kaizen plans 8-Implement Kaizen plans

DEMAND STAGE

Selecting Value Stream

There are 2 reliable methods for deciding the value stream Product Quantity - Based on volume Product routing - Based on process routes

Selecting Value Stream

Product Volume
# 1 2 3 4 5 Item W R Y I P Qty 29000 26000 3000 3000 2000 Cumulative Cumulative Qty % 29000 41% 55,500 79% 58,500 83% 61,500 87% 63,500 90%

Product Routing

Volume Product 20000 W 12000 R 10000 Y 3600 I 3300 P

rc

od

Metrics

Lean Metrics
Inventory turns Days of Inventory on hand Defective parts per million [DPPM] or six sigma Total value stream WIP Total Cycle time Uptime On time delivery First time through capability Health and Safety hazard [ OSHA]

Lean Metrics
Inventory turnover rate is a metric that measures how fast your company sells the products you make- that is, how efficient your marketing efforts are. It is given by the ratio of cost of goods sold to year end inventory
Most companies struggle with low, single-digit ITO rates. The goal of most lean organizations is to achieve at least a double-digit ITO rate. A few exceptional companies are able to achieve triple-digit ITO rates across all their product lines.

Lean Metrics
Cycle Time is the time elapses from the beginning of an operation until its completion

Total cycle time is the total of the cycle times for each individual operation in value stream. This is also called the value added time [VAT]
Lead time is a metric that measures as to how long it takes for material to flow through the process once an order is released to the production floor One other way to express total lead time [ LT] is the ratio of things in process [ TIP] to the average completion rate .Average completion rate can be found out from the no of jobs delivered to customer per day. One of the goals is to reduce TIP so that the work can be delivered fast

Lean Metrics
As an example in a particular department the no of quotes that were processed per day is 20 .Customer wanted quotes to be given within 3 days. With allowances, it was decided to provide quotes within 2.4 days as target. The maximum no of Things in process [TIP]of quotes is

------------------

Lean Metrics
Example

Machining

De-burring

Crimping

Testing

30 Min

10 Min

05 Min

90 Min 7days

5days

3days

Lead time -----------

Total Cycle time -----------

Lean Metrics
Uptime is a metric that measures as to how well an operation of a process uses its available time . It is given by the ratio of Actual operating time to the available production time In order to calculate actual operating time , every loss that diminishes the available time has to be taken into account . The common types of losses are -Change Over time -Idle time due to late delivery from an upstream process -Quality problems -Material Irregularities -Breakdowns

Lean Metrics
Example

Machining

De-burring

Crimping

Testing

Avl time= 400 Min C/O time =30 min Av breakdown time=40 min

Avl time= 400 Min C/O time =10 min Av breakdown time=0 min

Avl time= 400 Min C/O time =05 min Av breakdown time=5 min

Avl time= 400 Min C/O time =40 min Av breakdown time=0 min

Uptime= -------

Uptime= -------

Uptime= -------

Uptime= -------

Cumulative uptime ------------

Lean Metrics
No of days of WIP on hand between each operation is determined by ratio of actual quantity of parts to the total number of parts demanded by the customer daily
Customer

30000 Parts. month

Daily

I Machining
1500

I De-burring
2500

testing

I Shipping
250

Lead time based on WIP is --------------- days

Lean Metrics
Overall equipment effectiveness (OEE) is a metric that measures the availability, performance efficiency, and quality rate of your equipment. It is especial1y important to calculate OEE for your constraint operation. Equipment availability (EA) is given by the ratio of Operating time to the Net available time Performance Efficiency ( PE)time is the ratio of Standard cycle time to the operating time Quality Rate (QR) is the ratio no of good parts to the total no of parts produced OEE= EA x PE x QR

Lean Metrics
Availability Availability is the proportion of time equipment is actually available to do work out of when it should be available Suppose in an 8 hour shift, 45 minutes average is the planned downtime for preventive maintenance . Suppose also that non planned downtime includes 85 minutes for set up and 55 minutes for possible breakdowns and repairs , then Planned running time = 8(60)=435 Minutes Actual running time = 435-(85+55)=295 minutes Availability= Actual running time 295 ------------------------ = ----- = 0.678 Planned running time 435

Lean Metrics
Efficiency Efficiency is the measure of how well a machine performs when it is running For example if the design cycle time is 35 sec per unit and the actual cycle time is 40 sec per unit The speed rate is = 35/40=0.875 A machine may be running but not necessarily producing output for instance due to warming up or it is jammed etc. The measure of the operating time is computed as Operating rate=( Actual amount produced)( Actual cycle time) --------------------------------------------------------(Actual running time) For example for 470 units , the actual running time is 295 minutes and the actual cycle time is 35 sec/ Unit The operating rate is = (470 X 35)/(295 X 60)= 0.929 Now the measure of machine efficiency is a combination of the above rates and computed using E= Speed rate x Operating rate = 0.875 X 0.929= 0.8128

Lean Metrics
Quality The third aspect of equipment effectiveness is rate of quality the proportion of output from the equipment that is non defective and in conformance with requirements Actual units produced Defective units produced Q= -----------------------------------------------------------Actual units produced
For example if 4 units produced are defective then Q= 466/470=0.991

Overall Equipment Effectiveness [ OEE] is given by OEE= A x E x Q = 0.678 X 0.716 x 0.991 = 0.481

Lean Metrics
Example

Machining

De-burring

Crimping

Testing

Uptime=0.95 Std time= 30 sec Actual = 40 sec Yield = 95%

Uptime=0.84
Std time = 50 sec Actual =65 sec Yield= 80%

Uptime
Std time

= 0.99
= 15 sec

Uptime=0.89 Std time = 30 minutes Actual time = 65 minutes Yield = 80%

Actual time= 30 sec Yield =75%

OEE of Machining = ---------------OEE of De- burring = ---------------OEE of Crimping = ----------------

OEE of testing = ----------------

Lean Metrics
On-time delivery (OTD) is a metric that measures the percentage of units you produce that meet your customer's deadline. For this metric, a unit is defined as a line item on a sales order or delivery ticket.
total number of sale order items received on time by the customers OTD total sale order items received by the customers

OTD provides a holistic measurement of whether you have met your customer's expectations for having the right product, at the right place, at the right time.

Lean Metrics
TAKT time is the rate at which a company may produce a product to satisfy customer demand TAKT time = Available production time/ Total daily Qty required = Time/ Volume Ex:Available production time/Day = 25,200 sec Parts required per day = 420 TAKT time = 60 sec
TAKT time is the vision of an ideal state in which you have eliminated waste and improved the performance of the value stream to the point that you have achieved one piece flow

Another concept is operational TAKT time . This is a time which is faster than TAKT time to accommodate chronic system failure such as equipment failure, customer demand changes etc

Lean Metrics
Pitch is amount of time required to complete a pre determined pack out quantity Pitch= TAKT time x pack out quantity Buffer inventory is the finished goods to meet the customer demand when customer ordering pattern changes or production cant match the faster TAKT time . Safety Inventory is the finished goods available to customer demand due to internal constraints such as breakdowns etc

Finished Goods Supermarket

Finished goods super market is a storage place to store a set level of finished goods and replenish them as they are pulled to fulfill customer orders .

Finished goods super market items are not replaced until they are removed . They are removed when customer orders them. This system is used when it is not possible to establish pure and continuous flow

Typical Office Metrics

1. Time: Process time,lead time, and value-added time.

2. Changeover time.
3. Typical batch sizes or practices. 4. Demand rate.

5. Percent complete and accurate.

6. Reliability. 7. Number of people.

8. Inventory.
9. Information technology used. 10. Available time.

FLOW STAGE

Flow
Continuous flow is simply Move one and make one or Move one small lot and make one small lot .This is Just in time philosophy of ensuring that upstream operation never makes more than required by a downstream process.

Continuous flow processing means - Only when needed - Just when it is needed - In exact amount needed

In process Supermarket
Where Obstacles to continuous flow exist,supermarket of work inprocess may be necessary . As the flow improves the requirement for supermarkets reduces. Supermarkets are suited when there is a commonality among the parts

Continuous Flow
Move and Make One

Supplier

Process A

Process B

Process C

Customer

Batch Processing
Process A (1 min.)

CONTINUOUS FLOW

Push

Process B (1 min.)

Push

Process C (1 min.)

Lead time = First part out =

Continuous Flow Processing

Process A (1 min.)

Process B (1 min.)

Process C (1 min.)

Lead time = First part out =

Advantages of continuous Flow

- Shorter lead time - Drastic reduction of work process Inventory - Ability to identify problems and fix them earlier - Makes traditional production scheduling obsolete
However the cumulative effect would be affected for a continuous flow if the operations have some problems related to Lead time, Down time and Changeover time . So it may be necessary to have safety inventory

Work cells
The Principles of work cells are Arrange Processes sequentially Set the cell up for continuous counterclockwise flow [ Promotes the use of Right hand for activities] Position machine close together , while taking safety into consideration for material and hand movement within a small area Place the last operation close to the first Create U , C or L shaped work cells

Line balancing
Typically some operations take more time than others leaving operators with nothing to do while they wait for the part.Line balancing is a process through which you evenly distribute the work elements within a value stream to meet TAKT time. It balances the work load of the personnel. If TAKT time changes we may have to rebalance the line.
A
CT = 50 s

B
10 s

C
47 s TAKT time = 60 s

D
30 s

E
65 s

Total CT = 202 s,

Operators required = Total CT / TAKT Time = 202/60 = 3.36

Work cells
To ensure continuous flow for progressing Piece by Piece or in small batches the processes are grouped in way for achieving minimum transport waste To achieve this, a work cell is formed where the equipments and personnel are arranged in a process sequence and includes all operations to complete a product or a major production process

Line balancing
Operator Balance Chart

Total CT = 202 s
70 60 50 40 30 20 10 0

Total CT = 180 s
65

Takt time
50 47

Takt time
70 60 50

60

60

60

CT

10

CT
E

30

40 30 20 10 0

(1)

(1)

(1)

(1)

(1)

AB

(1)

CD

(1)

Operator

Operator

Current

Proposed Use standardized work

KANBANS

KANBANS
2. A Withdrawal KANBAN- Is a printed card which indicates the no of parts to be removed from a supermarket and to be supplied downstream 3. A Signal KANBAN Is a printed card indicating the number of parts to be produced to replenish what has been pulled from the supermarket This KANBAN is used whenever the inventory level in the supermarket between the two processes drops to a trigger or minimum point. When the signal KANBAN arrives at a supplying process , it signals the change over and authorizes to produce a predetermined quantity .

KANBAN Sequence Board

KANBANS R14 R19 R20 S5 S6 S9 S 10 S 54 Green

Yellow

Red

Often Jobs ( Cards ) are processed in the sequence they arrive at producer stage . When cards of different items arrive at once . In order to give priority , the cards which read the red region are given priority

KANBAN Rules
1.Downstream operations or cells withdraw items from upstream operations or cells

2. Upstream operations or cells produce and convey only if KANBAN card is present
3. Upstream operations send only 100% defect products downstream 4. KANBAN cards move with material to provide visual control 5. Continue to try to reduce KANBAN cards in circulation to force improvements

KANBAN steps
At Each process both withdrawal and production KANBAN post boxes are placed

An operator from downstream process brings a withdrawal KANBAN from withdrawal post box placed near the process to the Super market

The operator will pull the parts from the supermarket

The Production KANBAN is detached from the pallet of materials and in its place withdrawal KANBAN is attached

The operator will place production KANBAN in the KANBAN post box placed near the upstream process

When the work begins at the down stream process , withdrawal KANBAN is placed in the withdrawal KANBAN post box

KANBAN Exercise
Customer Customer

5 W 20 P 20

4 W 20 Cell 2

3
P 20

2 W 20

Cell 1

SHIPPING

Kanban Exercise
1 Customer orders ------------ Units by ------------------------- transaction 20 units are withdrawn from the ----------------------- by the customer After shipper withdraws 20 units from the supermarket, He/She takes -----------------Kanban and drops at post box of -----------Cell 2 operator takes -------------- KANBAN from the Cell 2 Post Box and --------------20 units from the ---------------- of --------------Cell 2 operator in turn takes out -------------- KANBAN from the pallet and replaces with ---------------- KANBAN before taking it to cell 2 Cell 2 operator places the -------------- KANBAN in the post Box of -------------

2
3

Based on the above,Cell 1 operator takes ------------KANBAN from the cell 1 Post Box to collect 20 units from the supermarket of ----------------

FIFO lanes
Customized Part making Assembly II

FIFO lane Icon

FIFO lane has the following characteristics Holds a designated number of parts between the processes and sequentially loaded Is created in such a way that it is difficult to draw anything other than the oldest inventory first Uses signal to notify the upstream process to stop producing when the lane is full preventing over production

FIFO Exercise
Yes

No

When upstream process is having chronic failure ,FIFO method is useful since multiple value stream meet
Yes No

When upstream process is having good QCO methods ,FIFO lane method is useful
Yes No

FIFO method is useful for maintaining TAKT time

Yes

No

Using FIFO lane method the space required will be more

Leveling Stage

Heijunka
Heijunka is a tool for scheduling production quantity and product mix based on customers long-term demand. Thus factory will produce at the rate of customer demand, making what the customer wants when the customer wants it. It is most counterintuitive principle of TPS. It involves process of stabilizing the system and creating evenness a true balanced lean flow of work. It is important to eliminate Mura first, which is fundamental to eliminating Muri and Muda

Benefits of Leveling the Schedule

Flexibility to make what the customer wants, when they want it. Reduce the risk of unsold goods. Balanced use of labor and machines. Smoothed demand on upstream processes and the plants suppliers.

Traditional Batch & Push Production

Square Line Dispatch Line

Customer Order: Circle Line 100 Squares 100 Circles 100 Triangles

Triangle Line

Level Smooth Production

Square Line Dispatch Line

Customer Order: Circle Line 100 Squares 100 Circles 100 Triangles

Triangle Line

Production Temp & Takt Time

Lean Factory sets pace of production to the rate of customer demand. Takt time is used to set the production tempo.
Takt Time = Available Work Time/Customer Demand

Takt time is the German musical term meaning time, musical measure, or bar.

Takt time An example

Customer Demand
840 Squares 420 Circles 1260 Triangles

Available Time
2 Shifts 7 Hours/Shift 3600 Seconds/Hour = 50400 Seconds/Day

Takt Times
Squares: 50400/840 = 60 Seconds/Square Circles: 50400/420 = 120 Seconds/Circle Triangles: 50400/1260 = 40 Seconds/Triangle Overall: 50400/2520 = 20 Seconds/Part
Leveled mixed-product production takt time =120 seconds

Leveling
Customers do not order in a stable, predictable way. Yet the foundations of Lean is a stable, leveled schedule. The leveled schedule for the first flow loop is created by production control even when the customer in not level. Heijunka is not true customer demand. Heijunka, is a self-imposed leveling for internal benefit of the value system.

Leveled Schedule
Heijunka schedule is achieved with a steady pitch multiple times in the day.
Pitch is the time increment between when orders are delivered and picked up, and the quantity to produce during the pitch.

This is a mechanism that supports the leveling process. The pacesetter has a clear understanding about the schedule adherence ahead or behind. In addition to pitch, three aspects of leveled production are:
Production volume Product mix Product sequence

Load leveling
Heijunka uses paced withdrawal based on pitch to handle variations in customer demand

Consider five products A to E

Product Daily Requirement Batch Qty No of batches A 300 25 12 B 200 25 8 C 200 25 8 D 50 25 2 E 50 25 2

Instead of producing each product serially they are produced in the ratio 12: 8: 8: 2: 2 . Reduced to smallest terms 3:2:2:0.5:0.5 . In other words for every 3 containers of A, 2 Containers of B, 2 containers of C. 0.5 containers of D and E are produced to level the production . This is illustrated in the next slide

Heijunka Box
Product 1 2 3 4 5 6 7 8 9 10 11 12 13 14

A B C D E

1 1 1 1 1 1 1

1 1 1 1 1 1

1 to 14 refers to Pitch where Pitch is given by =Batch Qty x Takt time

Takt time = Available time/ Total Daily requirement = 52,800/800=66 sec Pitch = 25 x 66 sec= 27.50 minutes This means every 27.50 minutes, 25 units to be released as per the above product mix

Heijunka Box is a physical device used to manage leveled production by volume and variety over a specified period of time. In the box having slots as shown above KANBAN cards are posted

Value Stream Mapping

 Define Process boundaries

Cycle Time Reduction

Select appropriate metrics, such as time,cost, resources etc.

Observe and describe process steps and flow

Use process analysis work sheet and process flow diagram.

Collect process-related data

Record time taken be each activity over several cycles.

Analyze collected data

Use graphical tools, such as Pareto to summarize the data.

Identify improvement areas

Prioritize the improvement opportunities.

Develop improvements
Eliminate, Minimize or Combine steps.

Implement and monitor improvements

Test the ideas through pilot runs and involve people.

 5S
Visual Factory

Lean Tools

Seiri, Seiton, Seison, Seiketsu & Shitsuke. Andon boards and performance charts.

Kanban
Kanban is a system of using cards as visual signals for triggering or controlling the flow of materials or parts during the production process.

Poka-Yoka
General Inspection, 100% Inspection, Error-Proofing Devises, and Immediate Feedback.

Standard Work Single-Minute Exchange of Dies (SMED)