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Six Sigma Quality Engineering

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Title: Six Sigma Quality Engineering


1
Six Sigma Quality Engineering
  • Week 10
  • Lean Enterprise
  • Continuous Improvements (Kaizen)

2
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.
3
Cycle of an Event
Schedule the Event
Recognize the Needfor Change
Select System / Process to Optimize
3
2
4
Our Way of Life
1
5
Develop the Objectives
Formalize the Change
12
Process Owner Review Explains Objectives
6
11
Process Owner Accepts Change
7
  • Learning the Tools
  • 5S, Process Flow
  • TAKT / Cycle Time

10
8
9
Make the Change
  • Capture the Details
  • Data Gathering
  • Detail Analysis

Set Goals, Make a Plan
4
Where do we start first?
Define the problem
Anywhere Work is being done
Waste is being generated

THE CUSTOMER DOES NOT PAY FOR WASTE
Module 0013
5
How Material SpendsTime In The Factory
Large opportunity
Better
90's
80's
Value
Added
4
Value
Non-
Non-
Added
Value
Value
16
Added
Added
84
96
We can make this better but it is not our focus
6
How Paper Spends TimeIn An Office Process
We will also focus on front end
throughput opportunities
VA 18
NVA 82
ref Otis - NAD, 1991
Module 0013
7
Total Cost
This is not a labor reduction program
6
Direct Labor As a Percent of Total Cost.
Module 0013
8
The New Equation
Supplier Cost Increases
Profit
Old View
Sales Price
Sales Price
Mfg. Cost
Cost Profit Sales Price
Value
Supplier Cost Increases
Profit
New Reality
Sales Price
Either way Mfg. Costs have to decrease
to maintain or increase profits
Mfg. Cost
Profit Sales Price - Cost
9
Process Layout And FlowMass Production System
Lay it out
Raw Material
Receiving
Inspection
Store
WIP
WIP
WIP
Trim
Clean
Form
OP1
WIP
WIP
WIP
WIP
WIP
WIP
OP2
OP3
Heat Treat
Clean
Punch
OP4
WIP
WIP
WIP
WIP
WIP
WIP
OP5
OP6
Inspection
Store
WIP
Module 0013
10
Separating The Value AddedFrom Non-Value Added
Receive Inspect Move Store Count
Move Anneal Move Wheelabrate Inspect
Move Mill to Face Inspect Move Wash Move
Store Move Turn Stem I.D. O.D. Inspect
Move Wash Move Store Move Grind Top 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
Measure it
Module 0013
11
Separating The Value AddedFrom Non-Value Added
1. Why?
REDRILL TAP Move Wash Degrease
Move INSTALL SCREWS Move HARDEN Move
Degrease Move REMOVE SCREWS Move TEMPER
Move Wheelabrate Inspect Move HONE STEM
I.D. Inspect Move Wash Move 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 SHIPPING
2. Why?
3. Why?
4.Why?
5.Why?
SUMMARY 17 VALUE ADDED ELEMENTS / 93 NON-VALUE
ADDED ELEMENTS LEAD TIME 345 HOURS/23 HOURS DAY
15 DAYS
Module 0013
12
Crosshead CellValue Added Summary
Small change
Module 0013
The Lean focus
13
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
14
Process Layout Flow AndMass Production Process
This could also be office structure process
islands
CLEANING
HEAT TREAT
RAW MATERIALS
TO FINISHED STORES
TRIMMING
INSPECTION
RAW MATERIAL STORES
CUTTING
PUNCHING
FORMING
Module 0013
15
The General Concept
Anywhere work is being done, waste is being
generated.
Critical Ingredients Of Lean Are
  • 1. Specify VALUEFrom your customers
    perspective, not yours. What does the customer
    want? What are they willing to pay for?
  • 2. Identify the VALUE STREAM and Eliminate
    WasteThe 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
16
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
17
Eliminate Waste Out Of Total Activities
Module 0013
18
Lean Manufacturing
The Fundamental Concept
Make What is needed
When it is needed
In the Amount Needed
Module 0013
19
New Competitive Realities
As Time is Compressed, Quality, Productivity and
Cost are Improved
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
20
Lean Manufacturing
Lean
  • Is a Methodology for the Systematic Elimination
    of Waste

Non-Lean
Rework
  • 7 Types of Waste
  • Overproduction
  • Waiting
  • Transportation
  • Unnecessary Processing
  • Inventory
  • Unnecessary Motion
  • Correction
  • A Person

Stores
Applies to all business processes!
Module 0013
21
Waste of Overproduction
THE PRIMARY WASTE
To produce more parts than necessary or at a rate
faster than required. (Both contribute to
excess inventory and waste time that could be
spent making required product.)
Module 0013
22
Waste Of Correction
To correct or repair a defect in materials or
parts adds unnecessary costs. (rework)
Module 0013
23
Waste Of Processing
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.)
Module 0013
24
Waste Of Inventory
Inventory is a drain on an organizations
overhead. The greater the inventory, the higher
the overhead costs become. (With excess
inventory, we cover-up unacceptable change over
times, excessive downtime, and operator
inefficiency)
Module 0013
25
Waste Of Motion
Any movement of people or machinery which does
not contribute added value to the product.
(excessive walking distance between operations)
Module 0013
26
Waste Of Waiting
Idle time between operations or events.
(operator waiting for machine to finish cycling
or machine waiting for operator to load new
parts)
Module 0013
27
Why Focus On HumanInstead Of Equipment?
  • Equipment is a sunk cost it depreciates over
    time, wears out or becomes obsolete.
  • The Operator is an ongoing resource that should
    appreciate over time. They gain skill and
    knowledge.

Your competition can easily match you machine for
machine
Your competitive edge is in how you deploy your
value adding people
Module 0013
28
How does lean specifically attack the problem?
Module 0013
29
Tools Of The Lean Enterprise
5s
Visual Controls
Process Mapping
Supplier Certification
Multi-skills training
Kanban
Cell layout(U shape)
Autonomation
POU inventory
Takt time
Right sizing
Curtain
5 Whys
Time observations
Right Sizing
1 part pull
Single minute exchange of die (SMED)
Line stop
loading
Mistake proofing
Normal/Abnormal
Quality at source
Standard Work
Signal lights
Value adding analysis
TPM
Module 0013
30
5-S WorkplaceOrganization 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
31
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
32
Identify The Waste
Based on Observation
Normal vs. Abnormal
Value-Added Non Value-Added
Eliminate
Kaizen Eliminate
Module 0013
33
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

Waste Monster
Module 0013
34
One Piece Flow Model
CLEANING Fixture
TRIMMING Fixture
PUNCHING Fixture
FORMING Fixture
CUTTING Fixture
HEAT TREAT Fixture
RAW MATERIALS Fixture
FINISHED STORES Fixture
Module 0013
PART
35
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
36
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

37
Material Replenishment System
  • How they work
  • This same shelf with additional Visual Controls
    becomes more meaningful
  • Standard Work may be
  • Green - normal
  • Yellow - reorder point passed
  • Red - replenishment past due, contact supplier
    immediately
  • Blue - abnormal, investigate - consumption
    changed, supplier overshipped

Module 0013
38
Material Replenishment System
  • 1. Ensures
  • the right thing
  • ( Instrument, supply, etc )
  • in the right quantity
  • at the right time
  • to the right location
  • in the right orientation
  • 2. Simple signs used to trigger material
    replenishment according to usage at Takt time
    cadence

Module 0013
39
Standard Work
  • There can be no improvement no Kaizen without
    the basis of Standard Work
  • 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

Not machine
It tells us how to make one to our TAKT time
Module 0013
40
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
Large machine centers set ups must be done during
machine cycle time
Level loaded demand (1A,1B,1A,1B)
Module 0013
In other words PROFESSIONALISM
41
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
It is what it is
Not much you can do about this
Module 0013
42
5 Whys
  • 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!

Root Cause
Module 0013
43
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
44
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.
45
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
Repairs are made on 1 part rather than the entire
batch
Module 0013
46
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
47
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
48
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
49
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
50
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
51
Curtain Operation
Curtain Operation
h
Inbound
Outbound
The rabbit chase
Module 0013
52
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
53
Design For ManufacturingAnd Assembly
  • A conscious process of making design decisions
    only after fully evaluating the manufacturing
    processes, tools, quality control measures
    equipment impacts

Module 0013
54
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
55
Standard Work
  • 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.

Module 0013
56
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
57
Standard Work Sheet
Module 0013
58
12
690
1/22/98
Spec. Steel
123
Fin. Grind O.D.
40
STEP
TIME
NUMBER
Man.
Auto.
Walk
TT
5
10
15
20
25
30
35
45
50
p.u. blow off part
3
--
--
40
1
unload, load, cycle start
2
5
23
--
gage 2 dia. - go/no go
3
3
--
2
load drill hopper
4
3
15
2
38
14
4
59
Standard Work Sheet
In the case where the cycle time does not come up
to the Takt Time...
Ideally, the Cycle Time should equal the Takt Time
TT
TT
then not enough work has been assigned
CT TT
Module 0013
60
Tools To Document Reality
  • Time Observation Sheet
  • Standard Work Sheets
  • Standard Work Combination Sheet
  • Percent Loading Chart
  • Process Capacity
  • 5S Worksheet

Module 0013
61
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
62
Make It Ugly
Time Observation Studies
Process Flow Mapping
Takt Time Analysis
Visual Controls
waste
Module 0013
63
The Goal
Total Elimination of Waste
Module 0013
64
Typical Lean Activities InitiatedAt A Kaizen
Event
  • Cell layout
  • The 5s
  • Right sizing
  • Signal lights
  • POU
  • Time observations
  • Kanbans
  • Value adding analysis
  • Takt time
  • Visual controls
  • 1 part pull systems
  • Curtain
  • Process mapping
  • Standard work

Module 0013
65
Two Steps Forward, One Step Back
  • 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) is
  • too high

Two steps forward, one step back is OKNo steps
forward is not
Bad news is good news
Management must monitor
66
  • To Lean Implementation
  • One piece flow

67
Step One
  • Choose Your Project Well
  • High Probability For Success
  • Good Visibility
  • Short In Duration
  • Requires Several Lean Tools
  • Is Measurable

68
Step Two
  • Choose Your Team Well
  • Open Minded And Enthusiastic
  • Select People Who Work With The Product
  • Operators
  • Maintenance People
  • Supervisors
  • ME/IE
  • Planners

69
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

70
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

71
Takt Time
The time (pace) required to produce a product
based on customer demand.
Time Available Customer Demand
Often expressed as
TAKT TIME
Example Elevator Manufacturer
-Customer Demand 50 Hydraulic Elevators /
Week -Daily Demand 10 Hydraulic Elevators -Time
Available 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!
72
Cycle Time
The time for an operator to do a prescribed
task and return to his/her original stance.
73
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)
74
Cycle Time vs. Lead Time
Lead Time
Task 1
Task 2
Task 3
Task 4
Task 5
MOVE
WAIT
SET-UP
RUN
Cycle Time
75
Takt Time vs. Lead Time
gtTAKT Time is a rate of demand gtLead Time is how
long the whole process takes gtThey are NOT
related!
Lead Time
1 Unit / Minute TAKT Time
PROCESS
WIP
Can a process have a 1 hour TAKT Time and a 6
month Lead Time?
76
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

77
Batch vs. One-Piece Flow
(Process oriented layout with Lot Size
5) Processing Time 1 Minute / Unit
Process Flow
A
B
C
D
0
5
10
15
20
TIME ELAPSED (MINUTES)
Manufacturing Lead Time
NOTE Typically, the distances between process
is long in a process oriented layout, making
difficult to transfer units one-by-one.
78
Batch vs. One-Piece Flow
(Process oriented layout with Lot Size
1) Processing Time 1 Minute / Unit
Process Flow
A
B
C
D
0
1
2
3
4
TIME ELAPSED (MINUTES)
Add the Balance of Units (4 x 1/Unit)
8
Manufacturing Lead Time
79
Boeing 737 Lean Cell
80
Boeing 737 Lean Cell
One 737 airplane every 9 days
81
Value Stream Analysis
82
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

83
(No Transcript)
84
Lean Thinking
  • Value in the Eyes of the Customer
  • The Value Stream
  • Flow
  • Pull of the Customer
  • Perfection

85
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

Value-Added Time Minutes Time in Plant
Weeks
ORDER
CASH
KEY QUESTION Are my customers willing to pay
for this ????
86
Value Added vs. Non-Value Added
LEAN ELIMINATING THE 7 WASTES
  • Overproduction
  • Waiting
  • Transportation
  • Non-value added processing
  • Excess inventory
  • Excess motion
  • Defects

87
ELIMINATE
88
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

89
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.

CONTINUOUS FLOW
TRADITIONAL
Lean Lexicon Version 1 p9
90
Continuous Flow More Efficient Faster
Traditional Batch Layout
Continuous Flow Layout
91
Supermarket Pull System
Production KANBAN
Withdrawal KANBAN
product
product
Mike RotherLearning to See
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.
92
Takt Time
  • Takt time paces production to the pace of
    customer requirements.

Total daily operating time Takt Time Total
daily customer requirement
Operating time 1 shift x 8 hours (2) 20-min.
breaks 440 mins/day
Customer 880 units/month 44
units/day Requirement 20 days/month
440 mins/day Takt time 10 mins/unit 44
units/day
93
What is a Value Stream ?
  • A Value Stream is all the actions, value creating
    and non-value creating, required to bring a
    product from order to delivery
  • Starts with raw materials
  • Finalizes at the end-customer
  • Involves several businesses

94
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 RotherLearning to See
95
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

96
The Value Stream Analysis Process
  • Phase 1-Pre-event work
  • Phase 2-The Main Event
  • Phase 3-Accountability Process

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Value Stream Analysis ProcessPhase 1Pre-event
Planning
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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

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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

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Value Stream Analysis ProcessPhase 2The Main
Event
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The Main Event
  • 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

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VSM Event Steps 1 2Training and Gemba Walk
  • Training
  • The concepts of Lean need to be applied to
    classroom training as well as our other
    processes
  • 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

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VSM Event Step 3Current State Map
  • Value Stream Map-Current State
  • Map the physical flow (manufacturing loop,
    customer loop, supplier loop)
  • Map the information flow
  • Complete the lead time data bar
  • Visually identify waste
  • 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.)

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Elements of Value Stream Maps
Information
Supplier Loop
Customer Loop
Manufacturing Loop
Lead Time Data Bar
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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?

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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?

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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?

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Supplier Loop Questions
  • 1 question, how do you tell supplierswhat to
    ship, make, etc.?
  • When and how often do they get purchaseorders
    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?

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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.

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Current State Lead Time Data Bar
Lead Time Total
Cycle Time (CT)
DOH Inventory
8 Days
4 Days
12 Days
4 Hrs
(1 Hr.)
4 Hrs
VA Time (yes/no)
CT Total
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Mapping Icons
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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

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VSM Event Step 4Ideal 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

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VSM Event Step 5Future 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

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VSM Event Step 6Future 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

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VSM Event Step 7Management 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

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Value Stream Analysis ProcessPhase
3Accountability Process
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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

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