Professional Documents
Culture Documents
Management
MSE507
Lean Manufacturing
Workshop Goals
Topics
Topic
Slide No.
Overview
The Process (Steps 1-3)
The Process (Step 4 Case Study)
The Process (Step 5)
The Process (Step 6)
The Process (Step 6 Case Study)
The Process (Steps 7-9)
The Process (Step 10)
Conclusions
5
12
35
38
Engineering
Management
Overview
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
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
Overview
Objective
Correct specification of value
Elimination of wasteful steps
Flow where you can
Pull where you cant
Management toward perfection
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)
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
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
When?
Now
Before any major improvement activity
Constantly updated to the new Future State
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
Engineering
Management
The Process
Getting Started
Create a Matrix
P ro d u c t s
FEDCBA
A Product
Family
Create a Matrix
Complicated
Machine
Machine A
Machine B
Machine C
Machine D
Machine E
Machine F
Machine G
Machine H
Machine I
Machine J
Machine K
Machine L
Part
Weighting
2
4
8
16
32
64
128
256
512
1024
2048
4096
Part Total
Part 1
Part 2
Part 3
Part 4
Part 5
Part 6
Part 8
1
1
1
1
1
1
1
1
1
1
290
Part 7
1
1
80
132
258
1
1
88
132
288
132
Create a Matrix
Complicated
Machine
Machine A
Machine B
Machine C
Machine D
Machine E
Machine F
Machine G
Machine H
Machine I
Machine J
Machine K
Machine L
blank
Part Part 2
Part 5
Part 3
Part 6
Part 8
Part 4
Part 7
Part 1
Weighting
32
64
128
256
512
1024
2048
4096
2
1
1
4
1
1
1
8
1
16
1
1
32
1
1
64
1
1
128
1
1
1
256
1
1
1
512
1024
2048
4096
blank
80
88
132
132
132
258
288
290
Machine
Total
blank
5120
896
64
96
6144
96
896
7168
0
0
0
0
blank
Create a Matrix
Complicated
Part
Machine Weighting
Machine C
8
Machine D
16
Machine F
64
Machine B
4
Machine G
128
Machine A
2
Machine E
32
Machine H
256
blank
blank
Part 2
Part 5
32
64
Part 3
128
Part 6
256
Part 8
512
Part 4
1024
Part 7
2048
1
1
1
1
1
1
1
1
1
1
1
1
80
88
132
132
132
1
258
1
1
288
Machine
Total
4096 blank
64
96
96
896
896
1
5120
1
6144
1
7168
290 blank
Part 1
Process Level
Single Plant
(Door-to-door)
Multiple Plants
Across Companies
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)
Draw the rough draft as you walk the floor in step 3 collecting
data.
Example
Information Flow
Example
INVENTORY ICONS
WITH PUSH ARROWS
Material Flow
Quiz 1
Quiz 2
Engineering standards
The average measurement for a fiscal year
The measurement on an ideal day
What you observe as you draw the map
Mapping Tips
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
Mapping Tips
Best to map production lines between
Tuesday and Thursday
Use someone from the line or process to walk you through it
first, post-it note process, come back and get
Real 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!!)
Mapping Tips
ACME Stamping
Case Study
Assembly
XYZ
Corporation
Process
Box
Supplier/
Customer
C/T=45 sec.
C/O=30 min.
3 Shifts.
2% Scrap
300 pieces
1 day
Data Box
Inventory
Mon
+ Wed
Shipment
Supermarket
FIFO
Push
Physical
Pull
Finished Goods
to Customer
First-In-First-Out
Manual
Information Flow
Withdrawal
Kanban
Electronic
Information Flow
Production
Kanban
Weekly
Schedule
OXOX
Schedule
Load
Leveling Box
Signal
Kanban
Sequenced-Pull
Ball
Kanban
Post
General Icons
Uptime
Changeover
Operator
Kaizen
Lightning Burst
Buffer or
Safety Stock
Go See
Production
Schedule
BLUE - Process
YELLOW - Inventory (tear in half)
PINK - Master schedule / Production control
GREEN - Supplier & Customer
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Coils
5 days
Stamping
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 1
4600 L
2400 R
S. Weld # 2
1100L
600 R
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
Assy # 1
1600 L
850 R
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
Assy # 2
1200 L
640R
CT=62sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
2700 L
1440 R
CT=40sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
Michigan
Steel Co.
State St.
Assembly
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
Tues &
Thurs.
2 Shifts
Stamping
4600 L
Coils
2400 R
5 days CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 1
S. Weld # 2
1100L
600 R
Assy # 1
1600 L
850 R
1X
Daily
Assy # 2
2700 L
1440 R
1200 L
640R
CT=39sec
.Co=10 min.
CT=46sec
.Co=10 min.
CT=62sec
.Co=0
CT=40sec
.Co=0
Uptime=100%
2 shifts
27,600 sec.avail
Uptime=80%
2 shifts
27,600 sec.avail
Uptime=100%
2 shifts
27,600 sec.avail
Uptime=100%
2 shifts
27,600 sec.avail
Shipping
Fourth - show
Information Flows
& Push Arrows
y
ekl
e
W ax
F
Michigan
Steel Co.
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
Daily
Order
State St.
Assembly
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 1
4600 L
2400 R
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 2
I
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
1100R
600 R
Assy # 1
I
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
Assy # 2
I
1600 L
850 R CT=62sec
.Co=0
Shipping
I
2700 L
1200 L
1440 R
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
Inventory Quantity
Daily Customer Requirement
y
ekl
e
W ax
F
Michigan
Steel Co.
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
State St.
Assembly
Daily
Order
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
Stamping
S. Weld # 2
Assy # 1
4600 L
2400 R
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
5
days
S. Weld # 1
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
1 7.6 days
sec
1100R
600 R
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
1.8 days
39 sec
Shipping
1600 L
850 R CT=62sec
.Co=0
1200 L
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
2.7 days
46 sec
Assy # 2
2 days
62 sec
40 sec
2700 L
1440 R
(PLT)
4.5 days=23.6 days
(PT)
=188 sec
y
ekl
W e ax
F
Michigan
Steel Co.
90/60/30 day
Forecasts
Production
Control
6 WEEK
Forecast
MRP
State St.
Assembly
Daily
Order
18,400 pcs/mo
-12,000 L
-6,400 R
Tray=20 pcs.
2 Shifts
Tues &
Thurs.
1X
Daily
I
Coils
5 days
5
days
Stamping
S. Weld # 1
4600 L
2400 R
CT=1sec.
Co=1 hr.
Uptime=85%
27,600 sec. avail
EPE=2 weeks
S. Weld # 2
Assy # 1
CT=39sec
.Co=10 min.
Uptime=100%
2 shifts
27,600 sec.avail
1 7.6 days
sec
1100R
600 R
CT=46sec
.Co=10 min.
Uptime=80%
2 shifts
27,600 sec.avail
1.8 days
39 sec
Shipping
1600 L
850 R CT=62sec
.Co=0
1200 L
640R CT=40sec
.Co=0
Uptime=100%
Uptime=100%
2 shifts
2 shifts
27,600 sec.avail
27,600 sec.avail
2.7 days
46 sec
Assy # 2
2 days
62 sec
40 sec
2700 L
1440 R
(PLT)
4.5 days=23.6 days
(PT)
=188 sec
3 VA processes
Traditional mass
production
thinking about
economies of
scale
Batches pushed
through
=> waste
Look at VA time
compared to
time in plant
Eliminate Waste
1.
2.
3.
4.
5.
6.
7.
Overproduction
Waiting
Transportation
Unnecessary Processing
Inventory
Unnecessary Motion
Correction
Wasting
Eliminate Waste
1.
2.
Waiting
3.
Transportation
Moving parts and products does not add value - it just adds cost
Eliminate Waste
4.
Unnecessary Processing
5.
Booking work into a store and then having to book it back out
again to use.
Inventory
Eliminate Waste
6.
Unnecessary Motion
7.
Correction
Takt Time
What is Flow?
Long set-ups
Large distances
Downtime problems
Long lead-times
Kanban
Two-bin
Buffer stock
Standard work
Curtain operation
Supermarket
Withdrawal KANBAN
Supplying
Process
Customer
Process
PRODUCT
1) CUSTOMER
Supermarket
schedule
Quiz 3
Quiz 4
Homework Assignment
Questions:
1. Describe the ways a business could use Value-stream
mapping. What will be the benefits?
2. 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?
Questions? Comments?