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									Value Stream Mapping


      Quick Start
    Defining A Value Stream

      • A series of steps that must be performed in the
        proper sequence to create value for a customer
      • The complete value stream includes information
        flow and product or material flow
      • The value stream includes all steps; value-added
        and non value-added




     If there is a product, service or process for a customer,
                       there is a value stream.
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    Why Value Stream Map?

    • Helps you visualize more than just the process level
    • Allows you to see the sources of waste
    • Define key leverage points for improvements
    • Displays linkage between information and material flow
      - Admin processes may show linkage between information flow and the
       actions that result from the information flow




     VSM creates a common understanding of reality and
               the improvement possibilities.


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    Value Stream Levels


                             Process Level


                              Facility Level
                               (Cell or Department)




                       Extended Value Stream
             Multiple Facilities: (Includes Suppliers & Customers)




         Choose the level appropriate for your scope.

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    The VSM Process Overview
    Current State

    Identify key process steps for delivering product/service to customer
            Utilize information from “go see” (Gemba) or interviews
            Include key metrics with each step
            Include lead time and cycle time data
            Identify Undesirable Observations (UDO’s)
            Determine data gaps that need to be collected

    Identify flow of information from end customer to beginning of process
            Include systems that provide information
            Record the frequency and type of information
            If information is your “product” you can identify origin of information
    Determine if the Value Stream steps are VA or NVA
    Analyze wastes and determine improvements
    Develop action plan to make improvements


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    7 Steps to Utilizing a Value Stream Map

    1. Identify scope of the Value Stream Map
    2. Identify VSM team lead and participants
    3. Organize and conduct a tour of area to “go see”
    4. Map the high level process and gather key data
    5. Identify the value stream (product/process
       alignment and the critical path)
    6. Create the Current State Value Stream Map
      • Material Flow
      • Information Flow
      • VA/ NVA classification
    7. Identify the Waste
      • Identify areas of opportunities for improvement
      • Develop an Action Plan to make the improvements

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    Step 3: “Go See” the Product/Service
     If the process is visible:
     • Process map at high level
     • Walk the process and record individual process steps, UDOs*, cycle
       time, distance, # of people, quality, etc.
     • Ask operators questions
     • Note metrics, materials, machines, WIP**, finished goods


     If the process is not visible:
     •   Create detailed process map
     •   Include UDOs, cycle time, distance, # of people, quality, etc.
     •   Provide process map to all operators
     •   Interview employees involved in process
     •   Analyze portions of process which are visible
     •   Utilize VOC surveys to collect key data points
     •   Validate findings with operators

     *UDO (Undesirable Observation) – any observation about the process that is not ideal
     **WIP (Work In Process inventory) – inventory that is contained in the process
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    Step 4: Map the High-Level Process

                           Example: Generating an estimate for a customer


                2 days between processes                     30 minute cycle time       6 people involved



    Gather           Analyze   Develop         Input data            Collect        Prepare     Approval
     Info             Info     work-up           into file          Sub-quotes      Estimate     Meeting


                                                                            WIP
                                    On-Line Tool
    Input Boundary                                                                        Output Boundary




       • Having 4 to 10 process steps is common
       • Review the scope if you have more or less
       • Consolidate detailed process steps into higher level value stream steps
       • Determine key data to collect, WIP, Distance, Time, # of people, quality, etc.
       • Capture any variation within the process


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      Step 4: Identify Key Data Elements

                                    Example: Generating an estimate for a customer


                      Gather        Analyze        Develop           Input data          Collect     Prepare         Approval
                       Info          Info          Takeoff             into file        Sub-quotes   Estimate         Meeting


    Cycle Time:       4 hrs                            24 hrs           2 hrs                             2 hrs

    Wait Time:                                48 hrs                              24 hrs         8 hrs            8 hrs

    # of People:       1                2              1                   1                2                              6

    Transport:                 Manual                                             Phone          E-mail           E-Mail

    WIP:               2                2              4                                    3                              3

    Who:                            Ops          Sales/Ops            Sales/Ops                          Sales            Sales

    Missing data to
    be collected
    prior to VSM           • If data not available, use averages based on operators assessment
                           • Check old records, files, reports, etc.
                           • Additional data collection by surveys/interviews
                           • Finalize data during the “Identify Materials Flow” step

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     Step 5: Identify the Value Stream



     • Determine critical path and area for improvement




     “Whenever there is a product for a customer, there is a
       value stream. The challenge lies in seeing it.”
                        Learning to See by Rother and Shook




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          Value Stream Map – Operational example
                                                                                DOWNTIME 15%


                              MELT        INSP              Hold                  Cast
 REC            STAGE         903M        CHEM             Furnace                903




WIP 870
                             P/T 6N                        P/T 8H               P/T 3 HR
               WIP 696
                                                         WIP 8 COILS              15K
QTIME          QTIME
                             LOT 75K                        120K                  WIP
 72H


                 8              6                               8                   3

                                               DOWNTIME 15.5%


   INSP                                 BREAKDOWN
  PROFILE            STORE      STAGE       911

                                                                     LEAD        2231.1

   7%                WIP        WIP
                                         LOT 1 COIL                  VA          210.1
                     746K       108K
  1.
   SCRAP
          Map major process steps
                     QTIME      8HR
                                         TIME .1
                                         WIP 15K
                     8 1OK      Q/T                                 X SHIPPED PER DAY
  2.      I.D. Value (green/ yellow) / Non-value (red)
                                8
                                                                    850K
  3.      Capture all times, quantities                             1.870 WIP BEING WORKED
                                                                    4.276 WIP BEING STORED
  4.      Prioritize areas to improve
     Step 6: Create the Current State VSM



     • Map the Material Flow

     • Map the Information Flow

     • Classify VA and NVA activities




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     VSM Symbols

                                       First in
                        FIFO           First out control
          Information
                        max 10                                     People
                                                                   required
                                  Things pulled
                                  by next process
                                                                    Inventory
          Electronic                       Things pushed
          Information                      to next process
                                                             I      Pieces



                                            Transport                Waiting


                                            Pull system               Input-
                                            Paper trigger    In       Basket


                                           Pull system
                                           Returnable                Output-
                                                             Out     Basket
                                           container




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     Step 6: Map the Materials Flow

                                                                                       No                             Too many
                                                     No
                                                                                     Process                           people
                                                  standard
                                                    work

                    Gather           Analyze        Develop          Input data       Collect          Prepare         Approval
                     Info             Info          Takeoff            into file     Sub-quotes        Estimate         Meeting


     Cycle Time:    4 hrs             8 hrs             24 hrs            2 hrs            4 hrs            2 hrs            2 hrs

     Wait Time:              8 hrs             48 hrs            8 hrs            24 hrs           8 hrs            8 hrs

     # of People:    1                 2                1                  1                   2            2                6

     Transport:              Manual           Manual             E-mail           Phone            E-mail           E-Mail

     WIP:            2                 2                4                  1                   3            2                3

     Who:           Sales            Ops          Sales/Ops          Sales/Ops        Sales/Ops            Sales            Sales



                         • Come to agreement on process steps as a team
     UDO                 • Include all key data for each process step

         Push            • Include UDOs
                         • Material flows from left to right
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     Step 6: Map the Information Flow


                                     Sales Funnel
       Sales                           Database                              Customer
       Leader
                                                    1-5 days
                                                                            75 Estimates
                                                                            per month



                                        Sales
      Estimator
                                 Representative


                          2-5 days

        • Information should flow right to left, always starting with customer
        • Cycle times can be averages or ranges
        • The more detail you include, the more waste you will see
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     Step 6: Identify VA & NVA

                                                                   Sales Funnel Database
                Sales Leader                                                                                                           Customer



                                                                                       1-5 days
                                                                                                                                     75 Estimates
                                                                                                                                     per month

                                                                   Sales Representative
                  Estimator
                                            2-5 days                                                No                                Too many
                                                          No
                                                                                                  Process                              people
                                                       standard
                                                         work

                    Gather            Analyze            Develop          Input data               Collect              Prepare         Approval
                     Info              Info              Takeoff            into file             Sub-quotes            Estimate         Meeting

                     4 hrs            8 hrs                24 hrs               2 hrs                 4 hrs               2 hrs              2 hrs

                             8 hrs               48 hrs               8 hrs                 24 hrs              8 hrs              8 hrs
 # of People:         1                 2                  1                      1                         2              2                  6
 Transport:                  Manual            Manual                E-mail                Phone                E-mail             E-Mail
 WIP:                 2                 2                  4                      1                         3              2                  3
 Who:               Sales             Ops              Sales/Ops              Sales/Ops            Sales/Ops             Sales              Sales
 VA/NVA             VA                NVA                  VA                     NVA                 NVA                 NVA                NVA


                                                                                      • Customer cares
                                                                                      • Changes form, fit or function

                                                                                      • Correct

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     Step 7: Use the VSM to Identify Waste



      • Identify areas of opportunities for improvement

      • Develop an action plan to make the improvements




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     Step 7: Use the VSM to Identify Waste

                                                                 Sales Funnel Database
                                                                                                                                     Customer
                Sales Leader
                                                                                            1-5 days
                                                                                                                                   75
                                                                                                                                   Estimates
                                                                     Sales                                                         per month
                    Estimator                                    Representative
                                              2-5 days  No                                     No                                         Too
                                                     standard                                Process                                      many
                                                       work                                                                              people
                      Gather            Analyze           Develop       Input data             Collect                Prepare        Approval
                       Info              Info             work-up         into file           Sub-quotes              Estimate        Meeting

                       4 hrs            8 hrs              24 hrs              2 hrs                 4 hrs              2 hrs               2 hrs

                               8 hrs             48 hrs              8 hrs               24 hrs               8 hrs              8 hrs
     # of People:       1                 2                1                     1                     2                 2                   6
     Transport:                Manual           Manual              E-mail                Phone               E-mail             E-Mail
     WIP:               2                 2              4                       1                      3                2                   3
     Who:             Sales             Ops          Sales/Ops               Sales/Ops            Sales/Ops            Sales               Sales
     VA/NVA           VA                NVA              VA                      NVA                 NVA                NVA                 NVA


      • Cycle times too long                                                                                     Time Value Map
                                                                                                                                                    43 days
      • Too much “queue time” between steps
      • No process standardization
      • Transportation issues
      • Too many people involved in Approval
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     Step 7: Identify Areas of Improvements

       • Improvements should be made based on waste
         analysis identified during VSM activity.
       • Example: Opportunities identified in the
         Generating an Estimate for a Customer VSM :
          - Create standard work for operators to follow
          - Develop “templates” to use when “Developing Quotes”
          - Remove NVA steps when possible
          - Streamline information flow from Customer to Estimator
          - Mitigate interruptions to “flow” estimate (reduce queue
           time)
         - Improve policies with Sales to obtain timely quotes
         - Reduce the number of people required for the “Approval
           Meeting”




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     Step 7: Create An Action Plan

       • Action plans are critical to successfully implementing
         VSM improvements

       • Determine improvement projects, schedules and
         owners
          - Immediate improvements (2 - 5 days): Kaizen Events
          - Medium term improvements (3-6 months): Lean/ GB projects
          - Long term improvements (6+ months): Lean Expert/ BB
          projects




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     Step 7: Create An Action Plan

      • Identify the high impact improvements and long
        term and short term actions

                high



                          Sweet Spot                 High Hard
           Impact


                           Just Do It                Don’t Do


                    low                                          high

                                         Effort




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Value Stream Mapping


      Quick Start

								
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