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VSM001 Value Stream Mapping

Value Stream Mapping


Day 1

Value
Stream

Mapping

VSM001 Value Stream Mapping

Introductions

Jan Vlasak

VSM001 Value Stream Mapping

Agenda
Current State Map Future State Map

Value Stream Plan

VSM001 Value Stream Mapping

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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VSM001 Value Stream Mapping

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

Break The Value Stream Team


Closing Comments

3:45 PM 4:00 PM
4:15 PM
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VSM001 Value Stream Mapping

Company Strategy

Growth Competitive Position

VSM001 Value Stream Mapping

Cost Reductions
Customer Price Labor Inflation

Increase Earnings

VSM001 Value Stream Mapping

Keys to Lean Production


Work Place Organization

JIT Production
Six Sigma Quality Empowered Teams Visual Management Pursuit of Perfection

VSM001 Value Stream Mapping

Key Factors for Lean Success


Strategic Vision

Strong Line Management Leadership


Expert Training and Support Aggressive Performance Targets and Tracking Impatience

VSM001 Value Stream Mapping

Becoming the Best


The Answer;
Develop a Deep Understanding of Our Processes at their Broadest Levels and Not Just Continue to Improve Individual Work Units Working Together to Add Value to our Company

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VSM001 Value Stream Mapping

Our Needs
Tools to Support Linkages Between Processes Emphasis on Processes and Systems Horizontal Organization Based on Teamwork Leadership and Followership

Commitment and Involvement

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VSM001 Value Stream Mapping

Performance
Operational Performance Determines Financial Results Lean Enterprise Is the Key to Successful Operational Performance

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VSM001 Value Stream Mapping

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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VSM001 Value Stream Mapping

Potential Benefits
Inventory Reduction Quality Improvement Productivity Improvement

12% Reduction in Overall Cost

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VSM001 Value Stream Mapping

Why are we Here?

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VSM001 Value Stream Mapping

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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VSM001 Value Stream Mapping

Think Lean

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VSM001 Value Stream Mapping

Waste
Waste is Only the Symptom of a Deeper Problem Focus on the Source Rather than the Symptom

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VSM001 Value Stream Mapping

Overproduction
Parts Parts Parts Parts Parts Parts Parts

Parts

Definition: Producing More than Needed Producing Faster than Needed

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VSM001 Value Stream Mapping

Takt Time

Available Work Time Customer Demand

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VSM001 Value Stream Mapping

One Piece Flow


Make One, Move One!!!

Process Process Process Process A B C D

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VSM001 Value Stream Mapping

Pull System
Production KANBAN Withdrawal KANBAN

Supplying Process
Product Product

Customer Process

Supermarket

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VSM001 Value Stream Mapping

Selecting the Point of Pull


P O P

Process A

Process B

Process C

Process D

FLOW
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VSM001 Value Stream Mapping

Why Small Lots?


Drive C/O Time Reduction Flexibility Reduce Inventory

Reduce Lead Time

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VSM001 Value Stream Mapping

Leveling

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VSM001 Value Stream Mapping

A Brief Introduction to

Value

Mapping

Stream

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VSM001 Value Stream Mapping

The Improvement Process


Employee Involvement
Training and Development Model Work Unit 20 Keys Assessment
Traditional Learning Leading World Class Best in Class

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Results

VSM001 Value Stream Mapping

Improvement on all work units since introduction of the AM Performance System

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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VSM001 Value Stream Mapping

Production Space = 30%


Entrance R Cut Draw Draw

Operator 1 Operator 2

Exit

F/A

Spin

Spin

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VSM001 Value Stream Mapping

Opportunities = 70%

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VSM001 Value Stream Mapping

Why???

Opportunities in Work Units Vs. Opportunities between Work Units

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VSM001 Value Stream Mapping

F L O W

Stamping C/T = 4 Sec.

Sub-Assembly C/T = 60 Sec.

Final Assembly C/T = 60 Sec.


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VSM001 Value Stream Mapping

The Next Chapter in AMs Success Story

Value Stream Mapping

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VSM001 Value Stream Mapping

What is a Value Stream?


All the Actions Involved in Making a Part

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VSM001 Value Stream Mapping

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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VSM001 Value Stream Mapping

Adding Value

Establishing the Vision Reducing the Lead Time

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VSM001 Value Stream Mapping

Benefits of Value Stream Mapping

Big Picture Approach


Links Material/ Information Flow Team Growth

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Visionary Tool
Planning

Communication
Implementation

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VSM001 Value Stream Mapping

The Current State Map

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Sub-Assembly

VSM001 Value Stream Mapping

Supplier

Finished Goods Inventory


C/O Time

Stamping

Down Time

Takt Time

Customer

Assembly
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VSM001 Value Stream Mapping

The Future State Map

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A Lean Stream!!!
Sub-Assembly
C/O Time
Cycle Time

Finished Goods Inventory

Down Time

Stamping

Final Assembly

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Annual Value Stream Plan


This Plan Visually Displays:
Step-by-Step Implementation Plan Measurable Goals Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers

The Value Stream Plan will Play a Fundamental Role in the Optimization of your Value Stream

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VSM001 Value Stream Mapping

Managements Role
See Overall Flow Develop the Vision

Lead Implementation
Support EI Teams

Make Sure Everyone Understands!

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VSM001 Value Stream Mapping

Managements Commitment

Eliminate Overproduction Support Lean Principles Willingness to Take Risks

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VSM001 Value Stream Mapping

Whenever there is a product for a customer there is a value stream The challenge lies in seeing it

AM

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VSM001 Value Stream Mapping

The Current State Map

Practice Makes Perfect

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VSM001 Value Stream Mapping

Its Time to Practice

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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VSM001 Value Stream Mapping

Data Set for General Exhaust

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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VSM001 Value Stream Mapping

Data Set for General Exhaust (continued)

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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VSM001 Value Stream Mapping

Data Set for General Exhaust (continued)

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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Data Set for General Exhaust (continued)

VSM001 Value Stream Mapping

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

.75 Days work in progress


3.5 Days finished goods Shipped to truck from final assembly finished goods
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VSM001 Value Stream Mapping

Data Set for General Exhaust (continued)

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

.5 Days work in progress 1 Day finished goods

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VSM001 Value Stream Mapping

Data Set for General Exhaust (continued)

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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VSM001 Value Stream Mapping

Data Set for General Exhaust (continued)

Supplier General Components Supplier Information Stampings Delivery to General Exhaust

(1) time per day


Container size = 300 pcs Two shift operation

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VSM001 Value Stream Mapping

Always Start With the Customer!!!


Work Upstream from There

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What to Look For...


Information Flow from the Customer
Forecasts Firm Order

Instruction to Produce Movement of Material Inventory Future Opportunities!

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VSM001 Value Stream Mapping

Exercise 1: Customer Loop


Walk through the Entire Process (Upstream) Sketch Value Streams for the Customer Loop Gather Data for the Customer Loop Worksheet Capture Information Flow Return to Room

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VSM001 Value Stream Mapping

Worksheet Exercise 1: Customer Loop

1. Who are the customers and where are they located?

2. How many pieces does the customer require per month?

3. What is our delivery frequency?

4. What is the container size (pieces per container)?

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VSM001 Value Stream Mapping

Worksheet Exercise 1: Customer Loop

5. How many shifts does the customer run?

6. In detail, describe how customer orders are placed (Kanban, MRP, forecasts, firm orders, etc.)

7. Where is the point of pull?

8. How much finished goods inventory did you find (count it!)?

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VSM001 Value Stream Mapping

Worksheet Exercise 1: Customer Loop

9. Does any safety or buffer stock exist?

10. How is buffer and safety stock distinguished from finished goods inventory?

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11. Map the Material and Information Flow

Customer Loop

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Report Outs

Customer Loop

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What Weve Accomplished


Understanding Customer Requirements Established Current State of Information and Material Flow Have Started to Think About Future Opportunities

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Internal Loop
Tie the Customer Loop to Internal Processes Establish the Relationship between Internal Processes

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What to Look For...


Define Plant Level Processes

Data Box Information


Takt Time, # of Operators, C/O Time, Work Unit Cycle Time, Total Work Content, Uptime %, # of Shifts, Available Operating Time

Capture All Inventory What Initiates Production? Future Opportunities!

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VSM001 Value Stream Mapping

Exercise 2: Internal Loop


If Needed, Walk through the Entire Process (Upstream)

Sketch Value Streams for the Internal Loop


Gather Data for the Internal Loop Worksheet Capture Information Flow Return to room

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VSM001 Value Stream Mapping

Worksheet Exercise 2: Internal Loop

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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Worksheet Exercise 2: Internal Loop

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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5. Map the Material and Information Flow

Internal Loop

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Report Outs

Internal Loop

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What Weve Accomplished


Understand Relationship between Internal Processes

Current State of Information and Material Flow


Identified Future Improvement Opportunities

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Supplier Loop
Tie Internal Loop to Supplier Understand Flow of Information and Material

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What to Look For...


Capture All Inventory Establish Current Information and Material Flow
From Storage to the Work Unit
From Supplier to Storage

Understand Raw Material and Component Requirements Future Opportunities!

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VSM001 Value Stream Mapping

Exercise 3: Supplier Loop


If Needed, Walk through the Entire Process (Upstream)
Sketch Value Streams for the Supplier Loop

Gather Data for the Supplier Loop Worksheet


Capture Information Flow Return to Room

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VSM001 Value Stream Mapping

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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VSM001 Value Stream Mapping

Worksheet Exercise 3: Supplier Loop

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).

3. How do we decide how much raw material inventory we need?

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4. Map the Material and Information Flow

Supplier Loop

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Report-Outs

Current State Map (Putting It All Together)

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The Future State Map

Practice Makes Perfect

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Its Time to Practice


Please Review the Example Current State Map We will Begin Drawing the Future State Map Shortly

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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 =

Available Operating Time Pieces

=
=

28,800 - 1,200 500 pcs


55.2 per piece

Sets Pace of Production to Match Customer Demand


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Effects of Container Size


Current State Example
(takt time * container size) = min per container

60 seconds
(55.2 * 300 pieces) 60 seconds 276 minutes 60 minutes (4 hrs 36 m)

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VSM001 Value Stream Mapping

Effects of Container Size


Future State Example
(takt time * container size) = min per container

60 seconds
(55.2 * 25 pieces) = 23 min 60 seconds

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Small Containers = Improved Flexibility

Container Size

Delivery Frequency

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Fluctuation Caused by Container Size

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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Fluctuation Caused by Container Size


1300 1250 1200 1150 1100 1050 1000 950 900 850 800 0 1 2 3 4 5 6 7 8 9 10 11 12 13

Produce Order

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Opportunities in Delivery Pitch

Even Delivery Pitch


Drives Constant Takt Time
Reduces Fluctuation

Overall Benefit
Reduction in Inventory

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Time between shifts


Pick-Up (2,500 pcs/truck) 7:00 am Wednesday 7:00 am Friday Truck 1 = 2,760 = 165,600 Takt = 66.24

460 min M 460 min

460 min

460 min

T
60 min 400 min 460 min

W
Truck 2 = 1,840 = 110,400 Takt = 44.16

460 min Th 60 min F 400 min

460 min

460 min
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VSM001 Value Stream Mapping

Opportunities in Kanban
Pull System
Links Production to Customer Demand

Aids in Visual Control


Identifies Opportunities for Improvement

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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VSM001 Value Stream Mapping

Selecting the Point of Pull


P O P

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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VSM001 Value Stream Mapping

Forecast

1 Part A 5300 Average 5000 Difference 300

Week

2 4700 5000 -300

3 5200 5000 200

4 4800 5000 -200

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

Avail. Sec 55,200

Takt Time 55.2

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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Opportunities in Takt Time Production


Takt Time Post
Produce to Takt Time

Enables Visual Management


Prevent Overproduction

Overall Benefits
Identifies Labor Opportunities Lowers Inventory Eliminates Scheduling

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Takt Time Post


6 1st Shift 0 0
Part A

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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Opportunities in the Work Units


Uptime
TPM BOS Charting

Team Problem Solving

Overall Benefits
More Capable Processes
Employee Involvement

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Track Downtime and Improvement Activities on BOS Chart

Key Measurable
Target Trend Line

Improvement Activities

Data Analysis
Pareto

Improvement Tracking

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Opportunities in and between Work Units


Continuous Improvement Tools
Standardized Work
Work Balance Bottleneck Improvements

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

VSM001 Value Stream Mapping

Opportunities in and between Work Units


Pull System
Withdraw Only What you Need Replenish What is Taken

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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Opportunities in and between Work Units


Changeover
Decrease Changeover Time Increase # of Changeovers Drive Small Lot Production

Overall Benefits
Flexibility in Production Reduction in Inventory

Better Inventory Turns

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CHANGEOVER Work Unit__________ SHIFT_____
AVG. GOAL

18.0

16.0

14.0

12.0

MINUTES

10.0

8.0

6.0

4.0

2.0

LAST MO 1996 YTD 10 12 15 16 17 18 19 24 11 13 14 20 21 22 23 25 2 8 1 3 4 5 6 7 9

DAY

1996 YTD MO

LAST

10

11

12

13

14

15

16

17

18

19

20

21

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

VSM001 Value Stream Mapping

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

Start Time of Activity H/M/S

End Time of Activity H/M/S

Activity Described

Elapsed Time for Activity Seconds

Check Type of Activity 1 2 3 4 5

Proposed Solution

Resulting Elapsed Time

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3 3 Supply Table 6 5

VSM001 Value Stream Mapping

Game Board 4

5
2

1 Tool Storage Die Storage Paper Storage


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Dance Chart Example

VSM001 Value Stream Mapping

Opportunities in the Supplier Loop

Supplier Development
Identify Key Suppliers

Reduce Container Size


Increase Delivery Frequency Kanban!!!

Overall Benefit
Inventory Reduction Cost Reduction

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The Future State Map

It is Time To Draw

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Value Stream Mapping


Day 2

Value
Stream

Mapping

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Exercise 4: Customer Loop


Step 1
Review Takt Time Calculation

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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Worksheet 1 Takt Time Calculation

1. Formula:

Takt Time =

Available Operating Time Pieces

2. Takt Time Results:

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Worksheet 2 Opportunities with Containerization

1. Effect of container time:

2. Fluctuation due to container quantity (Graph):

3. Future state proposal for container quantity

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Worksheet 3 Opportunities with Customer Pull Timing

1. Identify delivery pitch:

2. Calculate inventory held due to pitch:

3. Future state delivery frequency and timing:

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Worksheet 4 Opportunities with Leveling

1. Calculate leveling post:

2. Develop point of pull:

3. Future state leveling system:

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Worksheet 5 Opportunities in Takt Time Production

1. Determine kanban delivery frequency to the work unit:

2. Future state takt time post:

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Worksheet 6 Map the Future State Customer Loop

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Report-Outs

Future State Map Customer Loop

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Exercise 5: Internal Loop

Step 1
Are BOS Charts Being Used? Identify the Main Causes of Downtime

What Steps Can We Take to Achieve Best-in-Class Levels of Uptime (97%)?

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Exercise 5: Continued
Step 2
Identify Manual and Walk Time Identify any Bottlenecks

Calculate Labor Requirements


Does this Labor Requirement Reflect what You Witnessed on the Line?

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 %

1. Are BOS charts being used?

2. Identify the main causes of downtime:

3. What steps can we take to achieve Best-in-Class levels of uptime (97%)?

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Worksheet 2 Standardized Work

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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Worksheet 3 Map the Future State Internal Loop

VSM001 Value Stream Mapping

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Report-Outs

Future State Map Internal Loop

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Exercise 6: Supplier Loop


Step 1
Opportunities with Kanban Are Parts Ordered Based on Usage? Are Supplier Kanbans Being Used to Order Parts? Are Move Cards Used to Deliver Raw Materials to the Work Units?

Step 2
Opportunities with Delivery Frequency

Can Inventory be Reduced with an Increase in 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

1. Are parts ordered based on usage?

2. Are Supplier Kanbans being used to order parts?

3. Are move cards used to deliver raw materials to the work unit?

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Worksheet 2 Delivery Frequency and Containerization

1. Can inventory be reduced with an increase in delivery frequency?

2. Do component container sizes match finished goods container sizes.

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Worksheet 3 Map the Future State Supplier Loop

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Report-Outs

Future State Map Supplier Loop

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Understanding the Future State Drawing the Map

Put Pencil to Paper!!!

Remember:
Start with the Customer Include Material and Information Flows Data Boxes!!!

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Report-Outs

Future State Map (Putting Opportunities Together)

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Implementation

Making the Future State a Reality

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Continuous Improvement Cycle


Plan
Developing the Improvement Plan

Do
Support the Implementation

Check
Analyze the Results

Act
Standardize the Process

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How Do We Implement?

Break Implementation Into Steps


Customer Loop

Internal Loop
Supplier Loop

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...How Do We Implement...

Develop Implementation Packet


Current State Map

Future State Map


Supporting Documentation (Standard Work Studies, etc.) Value Stream Plan

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Value Stream Plan

The Plan Visually Displays:


Step-by-step Implementation plan
Measurable Goals Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers

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Key Points for Planning


Produce to Takt Time
Eliminate Overproduction

Pull Product Based on Customer Demand


Kanban Point of Pull Leveling

Establish Continuous Flow

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Outline the Plan


For Each Value Stream Loop
Establish the Objectives Determine the Measurable Goal

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Plant Level Objective

Goal Reduce lead-time

Measurable 9 Days to 4 Days

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VSM001 Value Stream Mapping

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

Increase Delivery Frequency


Decrease Container Quantity

4 times per Day


300 Pieces to 25 Pieces

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Date: Champion:

Yearly Value Stream Plan


Value Stream Loop Loop Value Stream Objective Goal (Measurable) Specific Scheduling Deadlines (on Monthly Basis) 1 2 3 4 5 6 7 8 9 10 11 12

VSM001 Value Stream Mapping

Product Family:

Plant-Level Objective

Owner

Reviewer and Review Dates

1 Customer

2 Internal

3 Supplier

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Date: 10/29/99 Champion: Bill Green

Yearly Value Stream Plan


Value Stream Loop Loop Dec Cont. Qty. 300 to 25 2 /wk to 1/D 1.75 Days Finished Goods BIC 97% 0 Inv. Between work units 15 minutes Prod. Move Cards Supp. Cards Value Stream Objective Goal (Measurable) Specific Scheduling Deadlines (on Monthly Basis) 1 2 3 4 5 6 7 8 9 10 11 12

VSM001 Value Stream Mapping Product Family:


Sub-Muffler

Plant-Level Objective

Owner

Reviewer and Review Dates

Reduce Finished Goods Inventory

1 Customer Inc. Del. Freq. FG Pull System

Gold Team

Joan Smith 2/28/00 4/15/00 5/29/00

Inc. Uptime % 2 Internal Cont. Flow (S/A 2 to F/A) Reduce C/O Time Int. Pull Sys. Kanban

Blue Team

John Doe 5/30/00 7/30/00 8/30/00

3 Supplier

Inc. Del. Freq.

4/Day

Red Team

Jim Smith 9/30/00 10/15/00 12/30/00 152

Dec. Cont. Qty.

300 to 25

VSM001 Value Stream Mapping

Exercise 7: Value Stream Plan

Step 1
Develop Value Stream Plan

Step 2
Discuss Roadblocks to Implementation How Do We Eliminate Roadblocks

153

Date: Champion:

Yearly Value Stream Plan


Value Stream Loop Loop Value Stream Objective Goal (Measurable) Specific Scheduling Deadlines (on Monthly Basis) 1 2 3 4 5 6 7 8 9 10 11 12

VSM001 Value Stream Mapping

Product Family:

Plant-Level Objective

Owner

Reviewer and Review Dates

1 Customer

2 Internal

3 Supplier

154

VSM001 Value Stream Mapping

Report-Outs

The Value Stream Plan


(Putting Ideas Into Action)

155

VSM001 Value Stream Mapping

The Value Stream Team

Prepare the organization to see opportunities for improvement and turn those opportunities into reality

156

VSM001 Value Stream Mapping

Identify the Value Streams


End of the Chain
Completion of the final product Next move is to the Customer

Move Upstream
Identify the internal suppliers Final step is supplied parts

157

VSM001 Value Stream Mapping

Choose the Model

Practice Makes Perfect!

Begin with the less complicated


Move to the more difficult

158

VSM001 Value Stream Mapping

Establishing the Team


Selecting the Team
Who are the people in the value stream
What type of resources are required

Function of the Team


Analyze Value Stream Together Hold Frequent Meetings to Monitor Progress Eliminate Obstacles Together

159

VSM001 Value Stream Mapping

Transfer the Knowledge


Check Understanding
Clear Up Confusion Get Commitment

Start the Process


Current State Map

Future State Map


Develop the Plan

160

VSM001 Value Stream Mapping

Things to Remember
Benchmark the Current Condition
Dedicate the Resources Monitor the Progress

Evaluate the Results


Celebrate Success Continue the Pursuit of Perfection!!!

161

VSM001 Value Stream Mapping

Be Impatient!

162

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