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Learning to See Parts I, II, III A Value Stream Mapping Workshop Mike Rother

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Title: Learning to See Parts I, II, III A Value Stream Mapping Workshop Mike Rother


1
MSE507Lean Manufacturing
  • Learning to See Parts I, II, IIIA Value Stream
    Mapping Workshop Mike Rother John Shook
  • Lean Enterprise Institute

2
Value Stream MappingWorkshop Goals
  • To understand the complete value stream
  • To introduce Value Stream Mapping (VSM)
  • To draw a current state map
  • Learn the mapping concepts and icons
  • To be able to design an improved value stream
  • Develop the ability to see the flow of a value
    stream
  • To draw a future state map
  • Learn the mapping concepts and icons

3
Value Stream MappingTopics
  • Topic Slide No.
  • Overview 5
  • The Process (Steps 1-3) 12
  • The Process (Step 4 Case Study) 35
  • The Process (Step 5) 38
  • The Process (Step 6)
  • The Process (Step 6 Case Study)
  • The Process (Steps 7-9)
  • The Process (Step 10)
  • Conclusions

4
Value Stream Mapping
  • Overview

5
Overview
  • Why? Learn to See
  • See the big picture, not just individual
    processes
  • See how the process currently operates
  • See linkages between information and material
    flow
  • See the waste and the source of waste
  • Establish a common language for improvement
  • Foundation for designing lean flow and the future
    state

6
Overview
  • What do you typically see?
  • 80 90 of total steps are waste from standpoint
    of end customer
  • 99.9 of throughput time is wasted time
  • Demand becomes more and more erratic as it moves
    upstream, imposing major inventory, capacity, and
    management costs at every level
  • Quality becomes worse and worse as we move
    upstream, imposing major costs downstream
  • Most managers and many production associates
    expend the majority of their efforts on
    hand-offs, work-arounds, and logistical complexity

7
Overview
  • Objective
  • Correct specification of value
  • Elimination of wasteful steps
  • Flow where you can
  • Pull where you cant
  • Management toward perfection

8
Overview
  • Pursue Perfection
  • Every step in each process is
  • Capable right every time (6 Sigma)
  • Available always able to run (TPM)
  • Adequate with capacity to avoid bottlenecks
    (right-sized tools lean system design)

9
Overview
  • What is it?
  • A visual representation of all the steps needed
    for
  • Concept to launch (design)
  • Order to delivery (build)
  • Delivery to recycle (sustain)
  • All steps
  • Value Added (VA)
  • Non-value added (NVA)
  • Two flows
  • Orders traveling upstream from the customer
  • Products traveling downstream to the customer

10
Overview
  • Who does it?
  • Value Stream Manager
  • Ideally, one person with lead responsibility for
    the entire value stream reporting to the top
    person at the site
  • Representatives of every relevant function
    operations, purchasing, sales, finance,
    engineering, etc. (ideally)
  • And you
  • When?
  • Now
  • Before any major improvement activity
  • Constantly updated to the new Future State

11
Overview
  • Where?
  • In the work area itself
  • How?
  • Directly observe flow of information and physical
    goods
  • Summarize these flows visually with icons
  • Use pencil and paper
  • And most important
  • Envision future state
  • No wasted steps
  • Smooth flow
  • Level pull

12
Value Stream Mapping
  • The Process

13
Getting Started
  • Select one value stream - a product family
  • Walk the physical flow of material no data
    collection
  • Walk the flow again, collecting data
  • Draw the Current State Map
  • Identify opportunities to eliminate waste and
    create flow
  • Draw the Future State Map
  • Generate a Value Stream Plan
  • Start making the improvements
  • Conduct Value Stream Reviews
  • Repeat the cycle

14
Value Stream Step 1Select a Value Stream
  • Select one value stream shared definition of
    value
  • by customer or customer category
  • by product or product family
  • by plant
  • by service - production, spares, repair
  • A family is a group of items that pass through
    similar processing steps and over common
    equipment.
  • Focus on the downstream processes not upstream
    steps. Upstream processes may serve many product
    families in a batch mode.

15
Value Stream Step 1 Create a Matrix
  • Create a matrix if your mix is complicated

16
Create a MatrixComplicated
Weight part by machine used.
0103-02 Family Matrix.xls
17
Create a MatrixComplicated
Sort by weighted part Weight machine by part
used.
18
Create a MatrixComplicated
Sort by weighted machine.
19
Value Stream Step 1Levels of a Value Stream
  • You can value stream map at different levels
  • Across companies is too complicated to start with

Process Level

Single Plant (Door-to-door)
  • Start mapping door-to-door within your own
    facility
  • This is under your control
  • It is easier to make improvements immediately
  • Expand outward to broaden the value stream later

Multiple Plants
Across Companies
20
Value Stream Step 2Walk the Flow
  • Let the workers know what you are doing.
  • Walk the flow first (no data collection). Walk it
    yourself.
  • Begin at shipping and work upstream. This begins
    with the processes that are linked closer to the
    customer. If it is too confusing, start at the
    beginning and go downstream.
  • See how the material moves.
  • See the piles of material and WIP.
  • See how people work.
  • Identify the major process steps

21
Value Stream Step 3 Walk the Flow Again
  • Walk the flow again, this time collecting data.
  • Begin at shipping and work upstream.
  • Obtain the data yourself, do not rely on computer
    printouts.
  • Use pencil and paper.
  • Ask questions and listen.
  • Collect data relevant to the definition of value.

22
Value Stream Step 3 Walk the Flow Again-Typical
Data Collected
  • Customer Need
  • Demand number of units per day the customer
    wants
  • Available work time Scheduled work time minus
    breaks, meetings and clean up time
  • Inventory
  • WIP Number of units waiting to be worked on or
    waiting to be moved.
  • Finished Goods Number of units in stores or
    waiting to be shipped.

23
Value Stream Step 3 Walk the Flow Again-Typical
Data Collected
  • Each Process Step
  • Cycle time CT The time between one part
    coming off the process and the next part coming
    off.
  • Yield First Time Yield or scrap
  • Number of people Required to operate the
    process.
  • Uptime The percentage of time the equipment is
    available to run, when it is needed to be run
  • Batch Size typical lot size or minimum
  • Change Over Time Co The time from the last
    good piece of one batch to the first good piece
    of the next batch
  • EPE Every part every __. How often do you
    changeover to produce this part?

24
Value Stream Step 3 Walk the Flow
Again-Calculated Data
  • Takt Time TT How often does the customer need
    another unit.
  • (Available work time per day)/(demand per day)
  • Inventory measured in days.
  • (Number of units)/(demand per day)
  • Overall Flow
  • Process Lead Time The time for a unit to make
    it all the way through the process
  • (Sum of Inventory Days) (Sum of Cycle Times)
  • Processing Time The time spent actually
    performing work on the unit
  • (Sum of Cycle Times)

25
Value Stream Step 3 Draw the Current State Map
  • Drawing the future state map begins with the
    current production situation.
  • Symbols and icons assure a consistent language.
  • Draw the rough draft as you walk the floor in
    step 3 collecting data.
  • Use pencil and paper, not a computer.
  • Map the whole value stream, not just a segment.

26
Example
27
Example
28
Quiz 1Circle the best answer
  • 1. Value Stream Mapping looks at
  • A. The people, materials, and information flow
    in a value stream
  • B. The material and information flow in a value
    stream
  • C. The detailed operation steps within a cell
  • D. The steps that people take in designing and
    producing a product
  • 2. A product family is used to
  • A. Create a listing of all your products and the
    steps that are taken to produce them
  • B. Decide which customers are most important to
    your customers
  • C. Identify and group products into families
    based upon whether they pass through similar
    steps in your downstream processes
  • D. Divide the mapping teams up into groups with
    individual mapping assignments

29
Quiz 2Circle the best answer
  • 3. The best way to draw a value stream map is
  • A. In pencil on the work floor, mapping the
    whole value stream
  • B. In your office with a good drawing software
    package
  • C. In pencil, by dividing the value stream into
    segments, and assigning each segment to a
    different mapping team
  • D. In pencil, on the floor using standard times
    from engineering
  • 4. Data boxes should contain data based on
  • A. Engineering standards
  • B. The average measurement for a fiscal year
  • C. The measurement on an ideal day
  • D. What you observe as you draw the map

30
Mapping Tips
  • Use Colored Post-it notes paper for
    Mapping(Easier to move Post-it notes than
    redraw)
  • Use roll of butcher paper so you can use a wall
    and see the whole VSM
  • Use string or ribbon to show material
    information flows
  • Decide whether to count all parts or sample

31
Mapping Tips
  • Best to map production lines betweenTuesday and
    Thursday
  • Use someone from the line or process to walk you
    through it first, post-it note process, come back
    and getReal Data and Times
  • If you plan on using the times to balance your
    process then do not take shortcuts - you will be
    way off(Embarrass yourself!!)
  • See with your hands. No Armchair Lean!

32
Mapping Tips
  • Calculate production lead time for inventory
    triangles by dividing quantity of inventory by
    the customer daily requirement
  • This is a really neat trick! It turns a count of
    inventory into the number of production days that
    inventory represents
  • Add a title and date the map

33
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34
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35
ACME Stamping Case Study
36
Material Flow Icons
C/T45 sec.
I
C/O30 min.
300 pieces
3 Shifts.
1 day
2 Scrap
Data Box
Inventory
Supermarket
FIFO
Finished Goods
Physical
First-In-First-Out
Shipment
Push
to Customer
Pull
37
Information Flow Icons
38
General Icons
39
Value Stream Map - Acme Exercise(Use the Handout
Data Sheet)
  • Use a pencil and small Post-it notes on 11 x 17
    paper.
  • Use the following colors
  • BLUE - Process
  • YELLOW - Inventory (tear in half)
  • PINK - Master schedule / Production control
  • GREEN - Supplier Customer
  • Fill in a Post-it notes for each process/data and
    symbol
  • Remember Always start with the Customer
  • Build the map, leave enough room between process
    boxes to show inventory and enough space on the
    bottom to draw the time line

40
Value Stream Step 4 Current State Map - 1st View
First - Show the Customer
State St. Assembly
18,400 pcs/mo -12,000 L -6,400
R

Tray20 pcs.
2 Shifts
41
Value Stream Step 4 Current State Map - 2nd View
Second - add the major Processes, Data Boxes, and
Inventory Triangles
State St. Assembly
18,400 pcs/mo -12,000 L -6,400
R

Tray20 pcs.
2 Shifts
I
S. Weld 1
Stamping
I
I
I
Shipping
I
I
S. Weld 2
Assy 2
Assy 1
4600 L
Coils
1100L
1200 L
1600 L
2700 L

2400 R
850 R
640R
600 R
1440 R
5 days
CT1sec.
CT39sec.
CT40sec.
CT46sec.
CT62sec.
Co0
Co1 hr.
Co10 min.
Co0
Co10 min.

Uptime85

Uptime100

Uptime100

Uptime80

Uptime100
27,600 sec. avail
2 shifts
2 shifts
2 shifts
2 shifts
27,600 sec.avail
EPE2 weeks
27,600 sec.avail
27,600 sec.avail
27,600 sec.avail
The data obtained is put in the data box directly
beneath the process box.
42
Value Stream Step 4 Current State Map - 3rd View
Third - Show the Material Flow
The supplier of raw material is identified with a
factory icon. In this case they deliver 500 ft
coils
State St. Assembly
Michigan Steel Co.
18,400 pcs/mo -12,000 L -6,400
R

500 Ft. Coils
Tray20 pcs.
Tues Thurs.
2 Shifts
A truck icon and broad arrow indicate movement of
finished goods to the customer and raw material
to the site.
1X Daily
I
I
S. Weld 1
Stamping
I
I
I
Shipping
S. Weld 2
Assy 2
Assy 1
I
1100L
1600 L

4600 L
2700 L
1200 L
Coils
600 R
850 R
2400 R
1440 R
640R
5 days
CT1sec.
CT39sec.
CT40sec.
CT46sec.
CT62sec.
Co0
Co1 hr.
Co10 min.
Co0
Co10 min.

Uptime85

Uptime100

Uptime100

Uptime80

Uptime100
2 shifts
27,600 sec. avail
2 shifts
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
EPE2 weeks
27,600 sec.avail
27,600 sec.avail
43
Value Stream Step 4 Current State Map
  • Information flow is drawn from right to left in
    the top half of the map space.
  • solid line arrows (paper transfer)
  • arrow with a lightening bolt (electronic
    transfer)
  • Material movements that are pushed are
    represented by a striped arrow
  • PUSH
  • A process that produces regardless of the needs
    of the downstream customer
  • A guess as to what is needed (forecasts)
  • Processes are allowed to set batch sizes and
    produce at a pace that makes sense from its
    perspective not the customers.

44
Value Stream Step 4 Current State Map 4th View
Fourth - show Information Flows Push Arrows
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
State St. Assembly
MRP
Daily Order
Weekly Fax
Michigan Steel Co.
18,400 pcs/mo -12,000 L -6,400
R

500 ft. Coils
WEEKLY SCHEDULE
Tray20 pcs.
2 Shifts
Tues Thurs.
1X Daily
I
Coils
S. Weld 1
Stamping
Shipping
S. Weld 2
Assy 2
Assy 1
I
5 days
I

4600 L
I
I
I
1100R
2400 R
1600 L
2700 L
600 R
1200 L
850 R
1440 R
CT1sec.
CT39sec.
CT40sec.
CT46sec.
CT62sec.
640R
Co0
Co1 hr.
Co10 min.
Co0
Co10 min.

Uptime85

Uptime100

Uptime100

Uptime80

Uptime100
27,600 sec. avail
2 shifts
2 shifts
2 shifts
2 shifts
27,600 sec.avail
EPE2 weeks
27,600 sec.avail
27,600 sec.avail
27,600 sec.avail
45
Value Stream Step 4 Current State Map
  • The timeline summarizes the current condition of
    the value stream
  • Production Lead-Time is the time it takes for a
    part to make its way through the shop floor
    beginning with the raw material
  • Inventory Lead-time( shown with the inventory
    triangles)is calculated as follows
  • Inventory quantity divided by the daily customer
    requirements. Then add all process inventory
    lead-times.
  • Inventory Quantity
  • Daily Customer Requirement

46
Value Stream Step 4 Current State Map 5th View
Fifth (Final) - Show Timeline
90/60/30 day Forecasts
Production Control
6 WEEK Forecast
State St. Assembly
MRP
Daily Order
Weekly Fax
Michigan Steel Co.
18,400 pcs/mo -12,000 L -6,400
R

500 ft. Coils
WEEKLY SCHEDULE
Tray20 pcs.
2 Shifts
Tues Thurs.
1X Daily
I
Coils
S. Weld 1
Stamping
Shipping
S. Weld 2
Assy 2
Assy 1
I
5 days
I

4600 L
I
I
I
1100R
2400 R
1600 L
2700 L
600 R
1200 L
850 R
1440 R
CT1sec.
CT39sec.
CT40sec.
CT46sec.
CT62sec.
640R
Co0
Co1 hr.
Co10 min.
Co0
Co10 min.

Uptime85

Uptime100

Uptime100

Uptime80

Uptime100
27,600 sec. avail
2 shifts
2 shifts
2 shifts
2 shifts
27,600 sec.avail
EPE2 weeks
27,600 sec.avail
27,600 sec.avail
27,600 sec.avail
(PLT)
7.6 days
1.8 days
2.7 days
2 days
4.5 days23.6 days
5 days
1 sec
(PT)
39 sec
46 sec
62 sec
40 sec
188 sec
47
Value Stream Step 4 Current State Map Complete
View
Fifth (Final) - Show Timeline
48
Whats wrong with Acmes Value Stream?
  • 3 VA processes
  • Traditional mass production thinking about
    economies of scale
  • Batches pushed through gt waste
  • Look at VA time compared to time in plant

49
What Makes a Value Stream Lean?
  • Primarily the elimination of the number one
    waste
  • OVERPRODUCTION!!!
  • Since this material is not yet needed it must be
    handled, counted, stored.
  • Defects remain hidden in inventory queues
  • Overproduction results in shortages, because
    processes are busy making the wrong things.

50
Value Stream Step 5 Eliminate Waste
  • Overproduction
  • Waiting
  • Transportation
  • Unnecessary Processing
  • Inventory
  • Unnecessary Motion
  • Correction
  • Wasting A Persons time or talent

51
Value Stream Step 5 Eliminate Waste
  • Overproduction - The primary waste
  • Making parts faster than is required
  • Excess Inventory
  • Time wasted, that could be used to make product
    that is required
  • Waiting
  • An operator waiting for a long machine cycle to
    end
  • Transportation
  • Moving parts and products does not add value - it
    just adds cost

52
Value Stream Step 5 Eliminate Waste
  • Unnecessary Processing
  • Booking work into a store and then having to book
    it back out again to use.
  • Inventory
  • There is a cost to the Company for carry
    inventory
  • There is always the risk it can become obsolete
  • It covers up other inefficiencies e.g. Long
    set-up times

53
Value Stream Step 5 Eliminate Waste
  • Unnecessary Motion
  • Any motion of a person that does not add value
  • Operators / Setters looking for tooling
  • Correction
  • Reworking defective materials
  • Things to remember about waste
  • It is a symptom rather than a root cause of the
    problem
  • It points to problems within the system, at both
    process and value stream levels
  • We need to find and address the causes of the
    waste

54
Value Stream Step 5 And Create Flow
  • We are concerned with system efficiency rather
    than the efficiency of an individual process

The question is, how fast should we produce?
55
Value Stream Step 5 Takt Time
  • We should match the rate of production to the
    rate of sales
  • Takt is the German word that means beat or
    pace Takt Time Effective working time per
    day Customer requirement per day
    27,000 sec 59 sec 460 pieces
  • What is the effective working time per day?
  • What do we do about machine down time?
  • Why is cycling faster than takt expensive?

56
Value Stream Step 5 What is Flow?
57
Value Stream Step 5 Where Do We Use Flow?
  • Use continuous flow wherever possible
  • Where cant we use continuous flow?
  • Long set-ups
  • Large distances
  • Downtime problems
  • Long lead-times

58
Value Stream Step 5 Alternatives to Continuous
Flow
  • Kanban
  • A signal that provides an instruction to regulate
    the sequence and timing of production
  • Two-bin
  • Bins used to regulate production
  • Buffer stock
  • Standard work
  • Curtain operation
  • Supermarket
  • Controlled quantity of inventory
  • Visual controls
  • Owned by the supplier

59
Value Stream Step 5 Supermarket Pull System
A SUPERMARKET PULL SYSTEM
PURPOSE Controls production at supplying process
without trying to schedule. Controls production
between flows
60
Value Stream Step 5 Supermarket Pull System
  • A pull system between processes
  • gives accurate build instructions to the upstream
    process
  • without trying to predict downstream demand
  • instead of forecasting the upstream process.
  • The pull by the downstream process determines
  • what the upstream produces
  • when
  • and in what quantity.
  • Should be located near the supplying process
  • Are only used when continuous flow will not work.
  • There is a cost - inventory and material handling

61
Value Stream Step 5 Schedule Only One Point
  • If pull systems schedule upstream process we can
    try to schedule only one point in the value
    stream - Pacemaker
  • No supermarkets downstream of the schedule
    point(except finished goods)

62
Quiz 3Circle the best answer
  • 5. Takt time is
  • A. The customer demand rate
  • B. The rate at which the Sales departments plan
    to sell products to customers based upon
    promotions
  • C. The fastest rate at which your individual
    operations can produce the products
  • D. The average amount of product brought by your
    customers in a week
  • 6. A supermarket is used where
  • A. Processes are close together but have
    different cycle times
  • B. A customer requires specialised products from
    a finished goods warehouse
  • C. Continuous flow is not possible due to
    distance, unreliability, or where processes serve
    multiple product families
  • D. Pull can be implemented throughout the
    door-to-door value stream

63
Quiz 4Circle the best answer
  • 7. A pacemaker process
  • A. Ensures that all processes downstream are
    controlled by supermarket pull systems
  • B. Receives its products from supermarkets
    controlled by MRP systems
  • C. Is always a bottleneck, requiring constant
    supervision and staff adjustment
  • D. Responds to the external customer, and is
    usually the point at which production is
    scheduled in the door-to-door value stream

64
Homework Assignment
  • Questions
  • Describe the ways a business could use
    Value-stream mapping. What will be the benefits?
  • You are visiting a production plant that has
    achieved excellence and is a model site to bench
    mark in the industry.
  • List what you are likely to see when visiting a
    lean plant?
  • How will their current Value Stream might look
    like?
  • Read Leaning to See Parts IV and V
  • Pages 57-101

65
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