Value Stream Mapping (vsm) is a key tool for lean implementation, makes process and problems visible Forms the basis of an improvement plan and a common language. To be considered "value add", a process step must have YES to all these questions.
Value Stream Mapping (vsm) is a key tool for lean implementation, makes process and problems visible Forms the basis of an improvement plan and a common language. To be considered "value add", a process step must have YES to all these questions.
Value Stream Mapping (vsm) is a key tool for lean implementation, makes process and problems visible Forms the basis of an improvement plan and a common language. To be considered "value add", a process step must have YES to all these questions.
Anand Subramaniam 2 Be aware.. Lean system implementation requires a high degree of discipline, and sometimes it can stress the workforce.
There is high level of co-operation & trust required between operators and supervisors.
Reward systems and labor classifications must often be revamped when a lean system is implemented.
Existing layouts may need to be changed.
Daily production schedules in high-volume, make-to-stock environments must be stable for extended periods.
If the inventory advantages of a lean system are to be realized, small lot sizes must be used.
If frequent, small shipments of purchased items cannot be arranged with suppliers, large inventory savings for these items cannot be realised. 3 Highlights 1. Overview - Value Stream Mapping (VSM)
2. Pre-VSM
3. VSM Review Current State
4. VSM Review Future State & Implementation Road Map
5. Excellence Road Map 4 Highlights - 1 Lean Process Value Stream Mapping (VSM) Value & Non Value Add Principles SIPOC Definition 5 What is a Lean Process ? Define value from the customers perspective Map the value stream Create flow; eliminate the root causes of waste Create pull where flow is difficult to achieve Seek perfection via continuous improvement 6 VSM Why, What, Where? Key tool for Lean implementation, makes process & problems visible
Forms the basis of an improvement plan and a common language
Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC)
Is a qualitative tool for identifying and eliminating waste (or muda)
Aligns organisations processes, creates a sense of teamwork / ownership
Involves drawing - current state, future state, & an implementation plan
Spans the entire value chain, from raw materials receipts to finished goods delivery
A paper and pencil tool to help you visualise and understand the linkage between material and information flow
Focuses on maximising the overall flow 7 Value Add & Non Value Add Value Add (VA) Any activity the customer values (and is willing to pay for) Who are your customers? What do they really want?
To be considered value add, a process step must have YES to all these questions Does the customer care? Does it change the thing? Is it done right the first time? Is it required by law or regulation?
Non Value Add (NVA) Any activity that consumes time and / or resources & does not add value to the service or product for the customer. These activities should be eliminated, simplified, reduced, or integrated. Necessary Legal / regulatory requirements Unnecessary - Waiting, Unnecessary processing, Errors/defects, Motion (people), Transportation (product), Underutilised people, Inventory 8 VSM - Principles Diagnostic Tool Reveals hidden symptoms of larger problems
Strategic Planning Activity Helps prioritise opportunities for improvement Results in an implementation plan
Macro-Level - Visual Representation Information flow People and material flow Each process block represents a handoff or a break in the timeline
Contains Relevant Metrics Lead time throughput / turnaround / flow time Cycle time touch / process time 9 SIPOC - Process Map S I O C P Suppliers Inputs Process Outputs Customers 10 Definition Cycle Time (C/T) time to complete a single unit of production
First Time Through (FTT) - % of jobs that are complete and accurate the first time that they are processed.
Demand average number of units per shift
Batch Size (BS) size of typical batch that is processed as a unit
Takt time rate of demand
Throughput time sum of delays and process time
Process Ratio = Total process time / Throughput time
Value Added Ratio = Total VAT / Throughput time 11 Highlights - 2 Current Process Challenges Conceptual Overview VSM Charter VSM Boundary Product Family Matrix Data Collection Future State Questions & Blueprint
12 Current Process Challenges Lots of waiting Lots of travel Lack of communication Lack of skills / not trained Too many handoffs Too many approvals Too many workarounds Duplication of work
Dead zones - places where work gets held up or lost
Lost time - people looking for work and / or re-work loops to correct errors Broken interfaces - ineffective or non-existent interfaces
Different prioritisation rules in different departments
High Lead Time (slow throughput/turnaround)
High WIP (waste in process bottlenecks / backlogs)
Low CT/LT ratio (lots of waiting) 13 Conceptual Overview - Where to start? VSM Charter & Scope Process Boundaries / Scope Roles & Responsibilities SIPOC
Product Family Start with a single product family
Current & Future State Collect data on process & system Be specific how many finished part numbers in family? how much is demanded? how often? Verify & repeat the Process
Develop Implementation Plan Product family Current state drawing Future state drawing Work plan & implementation Charter / Scope 14 VSM Charter Vision Mission Improvement Objectives Strategic Plan Critical Success Factors Drivers Process Description Management Information System
Start / End Date High Level Scope Benefits Realisation Process Champion Team Leaders Team Members Facilitators Risk & Tolerance Drivers Roles & Responsibilities 15 VSM - Boundary Current State Define the boundaries Define the value Identify the tasks and flows of material and information between them Identify resources for each task and flow Create the current state map
Future State (Design) Visualise the Ideal State and design the future state map Identify value added and waste from Current State Reconfigure the process to eliminate waste / Add Value
Implementation Plan Develop Action plans and track 16 Define Boundary Before launching on VSM, define the Start and End points Prepare As-Is physical map How / where (inputs to outputs) Prepare As-Is geographical map - area(s) where process is performed Add process control information flow to as-is physical map
A logical starting point - where Inputs cannot be returned to the preceding step.
Capture the process as it is actually performed and include workarounds, rework, informal activities, feedback loops etc
In lean, we commonly define work-in-process is anything you cant ship to the customer or return to the supplier
Add As-Is process metrics - counts, rates The number of parts required by customers The number of machines and operators available to work on parts The rates that process steps work on parts 17 Eg. Boundary - Start & End Points Inputs Market Research Data - Competition Firms Strategy Define Go- to Market Drivers Review Objectives, Goals & Strategies Identify Risks, Assumption & Constraints Conduct What If Scenarios START Evaluate Scenarios Approve Go-to Market Plan Outputs Marketing Plan KPI Team END 18 Material & Information Flow Use the Scope document to map the product or service flow
Map the whole value stream by conducting a walk through of the actual process and collect information Start with the final step and walk backwards (customer perspective) Outline major process blocks Chunk of activities that occur before a handoff
Stay focused on the norm Use the 70% rule to avoid getting bogged down with exceptions
Interview workers to obtain data Cycle time (CT) Lead time (LT)
Bring your stopwatch and do not rely on information that you do not personally see
Draw by hand and use a pencil 19 Resource Identification VSM are strategic in nature The resulting implementation plan is the tactical component
Nominate a VSM Head, who has Top Management support Power to influence changes
Team composition Team / Process Leaders Team Members who have process knowledge Facilitators / Management Consultants 20 Product Family Matrix Routing - Process / Operations #
P R O D U C T S 1 2 3 4 5 6 7 8 ES X X X X X X S X X X X X X M X X X X X X L X X X X X EL X X X X X XX X X X X X X U X X X X X 21 Data Collection Pack sizes at each process Working hours and breaks Inventory Points (location & size) How Operations are scheduled Overtime per week Process cycle times Scrap Rework Downtime Demand rates by process (Takt Time) Number of product variations at each step Shipping/Receiving schedules Activity Department performing IT systems used Current backlog/WIP Demand rate Work Time Number of people / operators Prioritisation rules % Quality (first pass Yield) Batch size Run frequency Equipment availability C/T - Cycle (touch) time (observed & effective) C/O - Changeover time & frequency 22 Future State Questions What should be the Takt time (available time / customer demand)? What does the customer really need? How often will we check our performance to customer needs? How can we improve the flow, with fewer interruptions? How do we control work between interruptions? How will work be prioritised? Is there an opportunity to balance the work load and/or different activities? Where can continuous flow be put in place? Where should pull systems be implemented? Where, when and how will scheduling be done? How do we perform load leveling and what will be the product mix? What should the management time frame be? What process improvements are necessary, to achieve the future state? What will the future state metrics be? Quality Errors Delivery Lead time Customer service How well do you provide services (internal and external) Cost Reducing errors, rework, handoffs, waiting and lead time 23 Design Future State Blueprint Define how the plant will operate in the future (blueprint)
Consider whether (remove waste / non value add activities) everything done currently at each stage is really necessary the impact if superfluous tasks was to be removed the process can be rearranged in a more efficient sequence a different flow layout or transport routing can be introduced
Validate Customer Demand
Draw the Future State Process Flow
Map the Future State Material & Information Flow
Calculate Total Product Cycle Time
Detail Off-Line Activities
Outline an Implementation Plan 24 Highlights - 3 Current State (As~Is) Step 1 - Define Customers Demand Step 2 - Map Basic Production Processes Step 3 - Define Data To Be Collected Step 4 - Collect & Map Data Step 5 - Map Information Flow Step 6 - Calculate Current State Step 7 - Compute Takt time Step 8 - Line Balancing
25 Define Customers Demand Demand = 3,200 pieces / week Type L = 1,000 piece week Type S = 2,200 piece week
Plant Operates 1 shift / day
Packaging = 60 pieces / Tray
Customer Shipment = 1 / day (Truck)
Supplier Shipment = 1 / week (Truck) 26 Map Basic Production Process Ensure Mapping begins with customers demand Conduct a walk through and obtain high level process information Start from the shipping (Staging Process) and work up-stream to the receiving dock The team involved should map the entire process stream from start to end 27 2007 Pearson Education Map Process (Contd.) Mapping Icons 28 Define Data To Be Collected Cycle Time (C/T) Changeover Time (C/O) Uptime Number of Operations Break Time Work Time (minus breaks) 29 Define Data (Contd.) - Work Time Calculation Day = 1 shift 1 Shift / day = 8 hours = 28,800 seconds / shift ( 8 x 60 x 60 x 1 shift)
Working Time / Operating Time Shift Time Break = 25,200 working seconds / shift (28,800 3,600) 30 Collect & Map Data (Customer & Supplier) 31 Map Information Flow 32 Calculate Current State 1 week = 5 working days
Demand = 3,200 pieces / week or 640 pieces / day Press Process Type L + S = 2,250 pieces (1,000 + 1,250) Duration = 3.5 days (2,250/640) 33 Result - Current State A Representative Current State Map for a Family of Retainers at a Bearings Manufacturing Company 2007 Pearson Education 34 Compute Takt Time 1 week = 5 working days
Demand = 3,200 pieces / week Type L = 1,000 piece week (200/day) Type S = 2,200 piece week (440/day)
Total Pieces / Day / Shift = 640 Operating Time / Working Time = 25,200
Takt Time = Operating Time / Shift Customer Requirment / Shift
Takt Time = 25,200 = 39 seconds 640 35 Total - Processing / Work Time 60 Seconds 36 Line Balancing 3 22 35 0 5 10 15 20 25 30 35 S e c o n d s Press Pierce & Form Finish Grind Process Work or Process Time = 60 Sec Takt Time = 39 Sec
Work / Takt time = # of Operators Required = 60/39 = 1.54 37 Line Balancing (Contd.) You require 1.54 operators Having 2 is costly and having 1 can lead to burnout We could reduce Takt time from 39 sec to say 35 sec or less, by combining some tasks and avoiding burnout
40 Future State (To~Be) Objectives Eliminate / reduce unnecessary NVA steps Optimise VA steps
Build Consideration (from current state) Eliminate/merge steps Create parallel paths Implement pull, if continuous flow isnt possible Reduce or eliminate batches Create standard work Create an organised, visual workplace Eliminate unnecessary approvals Identify NVA tasks from customers point of view Level production mix 41 Implementation Road Map Clarify Business Drivers and Key Customer Metrics
Assess and Map Current Capabilities (Baseline)
Identify Opportunities for improvement including the elimination of waste
Create a Vision for the Future Based on Voice of the Customer and Voice of the Business
Analyse Gaps and Create Action Plan to Succeed Use Robust Set of Tools (i.e. Lean Six Sigma)
Determine Priorities and Resources Necessary Structured Process Improvement
Track Impact through Metrics
Celebrate Wins - With Customers : Employees : Suppliers 42 Improvement Results Metric Current State Future State % Improvement Lead time Cycle time CT/LT ratio # steps Morale 43 Highlights - 5 Excellence Road Map 44 Excellence Road Map Approach / Develop Plan Deployment / Execute Plan Results 1 Assess & understand Set direction Develop key plans 2 3 Communicate & integrate plans 4 Develop cross - functional strategy teams 5 Develop / Integrate detailed implementation plans 6 Execute implementation plans 7 Quarterly , integrated operations leadership review 8 Strategic Planning Process 1 Define the process Establish metrics Determine performance 2 3 Analyse process stability 4 Set goals 5 Analyse & plan improvements 6 Implement improvement 7 Process Based Management Update Future State Set initiative priorities Initiative # 1 Initiative # 2 Initiative # 3 Initiative # 4 3 L e a d e r s h i p Perform Enterprise Strategic Planning Joint Strategic Planning Shared Enterprise Vision, Strategies, and Goals Shared Scorecard/Metrics Linked to Goals Provide Communications Manage Risk Consistent Messages throughout Enterprise Joint Communication Plan Integrated Customer Feedback available across Enterprise Single Field Issue Reporting Comprehensive Risk Management Program Extensive and Continuous Risk Identification Effective Risk Mitigation Joint Leadership Model with Enterprise Thinking Process Management Mindset including Benchmarking Joint Issue Resolution / Objective Problem-Solving Organization aligns with Future State Value Stream Lead & Execute Program L i f e C y c l e Propose Work Manage Supply Chain Define Requirements Jointly Define and Validate Lifecycle Capability Requirements Joint Block Implementation Planning Alpha Contracting Matured Integrated Planning for Development, Production, and Sustainment (IMP/IMS) Early Involvement of key Suppliers through Partnerships Develop Product Maximize Model-Based Definition across Enterprise Collaborative Development with key Stakeholders Integrated Product and Process Definition (IPPD) Encompasses Lifecycle Integrated Design Solutions provide Best Value Capability Improved Supplier Quality through Enterprise Supplier Partnerships Integrated Parts Procurement of Production, Retrofit and Spares Supply Chain Alignment / Leveraging (Boeing Commercial and DoD Military) Common Lean Processes for all Supply Chain to include GFE Assemble Product Lean Manufacturing Assessment / Best Practices Deployed Process Surveillance Conducted Concurrently with Assembly Factory to Fight Assembly In-Position Point-of-Use Delivery of Parts, Supplies and Tools Maintain Product Predictive Logistics Planning TSSR Performance and ALC Partnership E n a b l i n g Manage Technology Roadmap Network Enabled Operations Technology Insertion Collaboration (Gov / Industry) Promote Employee Collaboration Empowered Enterprise Work Teams Align to Strategic Direction People Understand how they fit into Enterprise Big Picture Working on Program is Meaningful and Fun: Can Do Culture Seamless Collaboration within Enterprise Manage Knowledge Shared Databases Across Enterprise (Includes Suppliers) Virtual / Physical Enterprise Co-location Automated Information Systems Aligned with Changing Business needs Processes to Capture Enterprise Knowledge Including Lessons Learned Enterprise Web-based training Manage Systems / Quality Enterprise is focused on Lean Principles Enterprise Systems Engineering / Management Architecture Joint Enterprise Process Model Manage Contracts & Finance Business Models support Lean Transformation Exceed Obligation and Expenditure Goals Dollars per Flying Hour Contract C-17 Enterprise Future State Value Stream Enable Seamless Transition between Development, Production and Sustainment Reduce Total Ownership Cost 45 Good Luck http://www.linkedin.com/in/anandsubramaniam