Professional Documents
Culture Documents
Agenda
1 Obstacle to Traction WASTE 2 Benefits of Value Stream Mapping 3 What is Value Stream Mapping? 4 A Road Map for Improvement
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What is WASTE?
Any Activity that DOES NOT increase the Market Form or Function of the Product or Service based on the Critical Customer Requirements.
Non-Value Added
Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.)
Processing
Not Utilizing Employees old guard thinking, Transportation poor layout, poor flow Inventory large batches, complexity to
complete task
Motion poor organization, no standard work Excess Processing excess communication, All processes have waste. lack of communication, unnecessary
approvals, customer requirements are not 7 clearly understood
The definition of insanity is doing the same thing over and over and expecting different results. Albert Einstein
Future state
Implement
Benefit of Value Stream Mapping Understanding the Process Information and Material Flow Data Driven Decision Process
94% if Failures are due to Poor Systems 6% are caused by Worker Mistakes
Deming
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Look for Value Streams Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.
Examples: Raw Materials to Customer - Manufacturing Concept to Launch - Engineering
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Ka ize n
Incoming Orders
Weekly Fax
Receive Order
IN
MRP
Information
Check Credit
IN
Reconcile Order
IN IN
Confirm Order
IN
Finalize Order
IN
Fax
P/T = min Batch = 4 hours
FIN
P/T = 1 min % Accept = 90% Batch = 4 hours
MRP
P/T = 10 min % C&A = 60% Batch = 1.6 hours
MRP
P/T = 1 min %C&A = 75% Batch = 1.6 hours
Phone
P/T =7 min %C&A = 85% Batch = 2 hours
MRP
P/T = 5 min Batch = 1day
Material
.5 days min 1 min .5 days 10 min .2 days 1 min .2 days 7 min .25 days 5 min 1 day
Total Lead Time = 2.65 days Total Processing Time= 24.5 min First Pass Yield = 34.4%
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Incoming Orders
Weekly Fax
Receive Order
IN
MRP
All orders will be processed within one hour Review & Checkof receipt (6 Enter Order processed each hour). Credit Reconcile Order Confirm Order orders
IN IN IN IN
Finalize Order
IN
Fax
FIN
MRP
MRP
Phone
MRP
How often will we check our P/T = 1 min P/T = 1 min P/T = 10 to P/T =7 min performance=min customer needs? = 85% %C&A = 75% % Accept = 90% % C&A 60% %C&A
Batch = 4 hours Batch = 1.6 hours Batch = 1.6 hours Batch = 2 hours
.5 days
Each hour.
10 min 1 min
.2 days
.2 days 7 min
1 day
Takt Time =
= 10 minutes/order
Total Lead Time = 2.65 days Total Processing Time= 24.5 min First Pass Yield = 34.4%
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Incoming Orders
Phone Or WEB
Weekly Fax
MRP
Receive Order
Fax
Rework
Review & Enter Order
IN IN
Reconcile Order
Confirm Order
IN IN
Over Processing
Finalize Order
Waste
MRP
Waste
MRP
IN
MRP
Phone
Which =steps create min value?P/T =7 min P/T = 1 P/T 10 min Which are waste?
.2 days 10 min 1 min .2 days 7 min
% C&A = 60% Batch = 1.6 hours %C&A = 75% Batch = 1.6 hours %C&A = 85% Batch = 2 hours
.5 days
1 day
Takt Time =
= 10 minutes/order
Total Lead Time = 2.65 days Total Processing Time= 24.5 min First Pass Yield = 34.4%
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MRP
Reconcile Order
IN
Confirm Order
IN
Finalize Order
IN
Fax
FIN
MRP
MRP
Phone
MRP
Auto Confirm
.5 days min
.2 days 7 min
1 day
Takt Time =
Total Lead Time = 1.25 days Total Processing Time= 11.5 min First Pass Yield = 90%
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MRP
Implement Kanban Kanban will: Schedule Production to real time demand. Optimize (level) and Control Inventory. Link Production to Customer Demand.
MRP
Shipping Training
Shipping
Total Processing Time < 10 Minutes First Pass Yield > 90%
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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 Analyze Gaps and Create Action Plan to Succeed Determine Priorities and Resources Necessary Track Impact through Metrics Celebrate Wins
- With Customers - With Employees - With Suppliers - Structured Process Improvement - Use Robust Set of Tools (i.e. Lean Six Sigma)
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Summary:
ALL processes have WASTE that cost you MONEY. Improvement requires change. To change a process you have to understand the process. Process Excellence will not be achieved is Not about Starting. people It without involving at all levels of the organization. It is about Getting Things Done!
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Questions?
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Parting Thought
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