VALUE STREAM MAPPING Analysis of Material Transport.

VALUE STREAM MAPPING

Analysis of Material Transport

Outline

Introduction to Value Stream Mapping

Current State Map

Data Collection

Activity: Map Current State

Design Raw Materials

Assembly Plants Distribution Customer

Parts Manufacturing

Definition of Value Stream

A Value Stream includes all elements (both value added and non-value added) that occur to a given product from its inception through delivery to the customer.

Requirements

VALUE STREAM

PROCESS

AssemblyCell

PROCESSWelding

PROCESSStamping

FinishedProduct

RawMaterial

Value Stream Segment

Typically we examine the value stream from raw materials to finished goods within a plant.

It is also possible to map business processes using Value Stream Mapping.

Value Stream Mapping (VSM) is a hands-on process to create a graphical representation of the process, material and information flows within a value stream.

Finished GoodsAssembly

Layout

Welding

Rolling 6-wk ForecastWeekly Order

6 x / Day

PC & L6-wk forecast

Daily

Level Box

DA1 DA2 DA3

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap =

Stamping

0 Overtime

2 Shifts

Max Size

# Material Handlers

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework =

C/O Time =

CT =

TAKT Time

3 Shifts

DT =

Scrap / Rework=

Small Lot # Operators

Customer

X pcs / monthStd Pack Qty

# Shifts

WIP =

WIP = WIP =

Steel Supplier

Inv.TimeProc.Time TPc/t = ?? days ? days ? days ? days

? days ? days ? days

Future State Material, Information and Process Flowswith total Product Cycle Time

Value Stream Mapping

Provide the means to see the material, process and information flows.

Support the prioritization of continuous improvement activities at the value stream

Provide the basis for facility layout

Eliminate Waste

Objectives of Value Stream Mapping

AND...

Producing defective parts Passing on defective parts Not communicating

improvements Overproduction Inventories Motion High nonvalue ratio Transportation Waiting Counting Inspection after the fact

Facility layout Excessive setup times Incapable process Maintenance Work method Training (or lack of) Supervisory ability

(coaching) Production

planning/scheduling Lack of workplace

organization Supplier quality/reliability Lack of concern

Waste Opportunities

Approaches

Percent of Lead Time5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

VA

NVA

NVA

NVA

VA

VA

Define all activities required to design, order, and provide a specific product, from concept launch, to order to delivery, from raw materials into the hands of the

customer.

This includes:• Information flow• Material flow• Inventory (WIP) • Non value-added activities• Transportation flow

Mapping Value Streams

Value Stream Mapping

A visual tool for identifying all activities of the planning, and manufacturing process to identify waste

Provides a tool to visualize what is otherwise usually invisible

The leaders of each product family need to have a primary role in developing the maps for their own area

Develop a current state map before improvements are made so that the efforts and benefits can be quantified

On the shop floor, not from your office—you need the real information, not opinion or old data

What?

Why?

Who?

When?

Where?

Value Stream Map Symbols

Spot weld

ABCplating

C/T = 30 sec

C/O = 10 min

3 shifts

2% scrap rate

Process

Finishedgoods

Vendor Data box

3,000 units

= 1 day

Inventory

Push Supermarket Physical pull

Monand

Wed

Shipment

Approach to Value Stream Mapping

Step #1 Identify customer

requirements

Define method of delivery

Define typical quantity requirements

It is OK that more than one customer is served by this value stream, but make sure that the primary processes used are similar

Use a pencil rather than computer

6 units/week

Recyclable tray

XYZ Corporation

18 units/day

9 lefts9 rights


Step #2 Perform an upstream walk through

each process step, observing and documenting as much of the following as possible:

Cycle time (operator & machine cycle time)

Changeover times Average inventory queue Average production batch size Number of operators at each

process Package or container size Available time (don’t count

breaks) Scrap rate Machine up time (availability) Number of product variations

6 units/week

Recyclable tray

XYZ Corporation

18 units/day

9 lefts9 rights

Process Description

Crew size:

Output: per:

Waste %

Time available

C/T

C/O

Up time:

I The triangle symbol identifies inventory; this can be expressed in pieces or in time (how many hours, days, or weeks of inventory).

The arrow connects to the next process. A straight arrow can stand for a push, a curved arrow can symbolize a physical pull from a kanban location.

Step #3Record as much data as is pertinent in the process description box


Step #4• Dream about perfection• Think outside the box • Develop alternatives to the current state map—Muda

free• Focus on velocity• Test each idea if it supports:

One-piece flow Pull


Step #4• Dream about perfection• Think outside the box • Develop alternatives to the current state map—Muda

free• Focus on velocity• Test each idea against TOP— in other words, does it

support: One-piece flow Pull

• Develop a “future state” map that visually describes the goal

• Break down the future state map into manageable steps

• Develop a Gantt chart (time-phased project plan)• Identify the kaizen events that will need to take place


Fast Track Process ImprovementWhat process?

Customer +requirements

Map currentprocess

Identifyhot-spots

Root-causeanalysis

Improvements toa) fix root causes b) meet C requirements

Metrics (1-3 months)

Communicate plan

Implement,measure,fine-tune

Weekly shipments:700,000 lineal50,000 pieces

1,034 sec 280 sec

IMolder #4

Crew size: 4Run speed 300 ft/minOutput:1,285 pieces/hr

Waste = 1/2%

Sec available27,000

C/T= 2.8 sec

C/O= 5 - 45 min

% Crew:days= 100% swing = 0 %

% Reliability = 98%

Weekly hr = 38.9

IPrime

Crew size: 3Run speed: 3,15 l ft/min

Output: 1,350 pieces/hr

Waste = 3%

Sec available 27,000

C/T= 1.3 sec

C/O= 1 min - 1 hr

% Crew:days =100% swing =

% Reliability =73%

Weekly hr = 18.5

130 sec

Staging

5,350 finished pieces/day

ILam #1

Crew size: 4Run speed 58 ft/minOutput: 500 pieces/hr

Waste = 1/2%


C/T= 7.2 sec

C/O= 5 - 25 min

% Crew:days= 100% swing = 0%

% Reliability = 98%

Weekly hr = 5

5 %

90 %

IResaw (4 saws)

Crew size: 1 1/3Run speed 184 ft/min.Output:1,584 pieces/hr

Waste =


C/T= 2.3 sec

C/O= 7 - 30 min

% Crew Days =100%Swing =0%

% Reliability = 95%

Weekly hr = 31.6

5 %

10%

230 sec

90%

268 pieces

4,500 pieces

9000pcs

9,000pieces

.5 hr 48 hr48 hr48 hr

6-day lead time as shown

Current State Map (Simplified)

Process Time

Shear 10 blanks = 15 minPunch 10 blanks = 30 minDeburr 100 parts = 10 minForm 100 parts = 40 minHrdwr 100 parts = 15 minPack 100 parts = 10 minTotal = 120 min

Lead time

1.0 day1.0 day0.5 day1.0 day1.5 day0.5 day5.5 day (7,920

min)

120 is 1.5% of total lead time or a ratio of 1:66

Value-added Ratios VA:NVA

Production leadtime = 3.7 hr

Value-added time 1,233 sec

Weekly shipments:700,000 lineal50,000 pieces

1,034 sec

VA Ratio =1:12

Staging

5,350 finished pieces/day

ILam #1

Crew size: 4Run speed 58 ft/minOutput: 500 pieces/hr

Waste = 1/2%


C/T= 7.2 sec

C/O= 5 -25 min% Crew:days= 100% swing = 0%

% Reliability = 98%

Weekly hr = 5

5%

IPrimed lineal cellCrew size: 6

Run speed 300 ft/minOutput: 1,285 pieces/hr

Waste = 1.2%


C/T= 2.8 sec

C/O= 10 - 20 mins% Crew days =100%

% Reliability = 95 %

Weekly hr = 38.9

199 sec

268 pieces4,500pieces

.5 hr .2 hr3 hr

Ÿ Free up $50,625 inventoryŸ 96% improvement in lead timeŸ Instant quality feedback

1-day lead time as shown

95%

Future State Map

Before

5 forklift

movements

28,118 pieces in

WIP

144 hr lead time

273 labor hr/week

9,000 ft2 required

After

3 forklift

movements

10,118 pieces in

WIP

3.7 hr lead time

235 labor hr/week

2,760 ft2 required

Improvement

40% reduction

64% reduction

97% reduction

14% reduction

70% reduction

Improvement Data

Value Stream Mapping: Summary

Develop a current state map first

Clearly document the future state map so everyone can visualize it

Perform the improvements in manageable steps

Be good at finishing—use policy deployment

Don’t wait for the entire process to complete, celebrate the journey

Dr. Kenneth AndrewsGarry Conner

References

VALUE STREAM MAPPING Analysis of Material Transport.

Documents

Transcript of VALUE STREAM MAPPING Analysis of Material Transport.