Value Stream Mapping PDF

124 W.
Polk Street, Suite 101

Chicago, Illinois 60605-2770
Tel 312-294-9900 Fax 312-294-9911
www.proferoinc.com
Value Stream Mapping

See the Flow
©Copyright Manos/Alukal 2002

Value Stream Guide
Lean Guide
Tony Manos is a Catalyst with expertise in Lean and
quality. Trained and certified by the Department of
Commerce, National Institute of Standards and
Technology (NIST) in Lean principles and as a trainer in
Lean courses. International speaker on Quality and Lean
Enterprise topics.
Tony Manos
Catalyst
Profero, Inc.
124 W. Polk Street, Suite 101
Chicago, IL 60605-1770
USA
Office: 312.294.9900
Cell: 312.718.0078
Fax: 312.294.9911
Email: anthony.manos@proferoinc.com
Website: www.proferoinc.com
Agenda
Basics of Value Stream Mapping

Product Family
Current State Map
Lean Basics
Future State Map
Plan

Section 1
Project Initiation
Product Family
Current State Map Case Study

Benefits of VSM
• Helps you visualize more than the single
process level
• Links the material and information flows
• Provides a common language
• Provides a blueprint for implementation
• More useful than quantitative tools
• Ties together lean concepts and
techniques
Purpose of this Training
Introduce value stream mapping

as a tool for Lean improvements
Develop your ability to “see the
flow” and more importantly
where there is no flow

4 Steps for VSM
1. Determine the Product Family

2. Draw your Current State Map
3. Create the Future State Map
4. Develop your plan to get there

VSM vs. “Other” Mapping
VSM is
– Simple to learn, easy to understand
– A tool that everyone can use
– Helps you “see”
– Has a Value Stream Manager
VSM is not
– A process flow diagram
– Shop floor layout
– Based on old or unreliable information
VSM Team
Typically a cross-functional team of

managers or supervisors
Team size 7-10 people
Have experienced VSM person lead
the session
Have to walk the flow
Commit to the time requirement
Building Blocks of Lean
Continuous Improvement & Kaizen Blitz
TPM JIT Cellular & Flow Pull System & Kanban
Poka-yoke Self Inspection Autonomation
POUS Batch Size Reduction Quick Changeover V

S
Layout Standard Work Visual 5S M
Change Management Teams

Scope of Value Streams
Entire Value Stream
Supplier
Customer
Supplier
Supplier
Customer Customer
Multiple Facilities HQ
Division
Plant Plant
One Facility
Good place to start Process Process Process

Scope Example

Focus on One Product Family
Determine product families by:

• Look for similar processing steps and
equipment
• By process, not product

Product Family
Process Steps & Equipment
Drill Weld Stamp Paint Manual Fixture Test
Assbly Assbly
Right Handle
X X X X
Left Handle
X X X X
Products
Body
X X X X
Base
X X
Insert
X X X
Switch
X X

Product Family
Process Steps & Equipment
Drill Weld Stamp Paint Manual Fixture Test
Assbly Assbly
Right Handle
X X X X
Left Handle
X X X X
Products
Body
X X X X
Base
X X
Insert
X X X
Switch
X X

Product Family Guidelines
Common process steps

80% similar steps
– 4 out of 5, 8 out of 10
Takt time >> 25 seconds
– unless high volume producer
Not too many products
– drives takt time down
Current State Map
Understanding how the floor currently operates
– Material and Information flows
– Draw using symbols
– Start with the “door to door” flow
– Have to walk the flow and get actuals
No standard times
Draw by hand, with pencil and eraser
– Foundation for the future state

Current State Icons
Process Box
Customers Go See
Painting
Suppliers
Mon., Shipment- Operator

Wed., Fri.
Truck Data
Box
I Inventory C/T=1 sec Cycle Time
C/O= 1 hr Changeover
Push System Rel.= 98% Reliability
FPY = 95%
Quality
More Current State Icons
Hardcopy
Train Electronic
Cell
Boat
Person
Plane
Fun Current State Icons
?
?
?
Fax
o
&@#$%!

Class Exercise
Case Study
Goodenuff, Inc.
Produces toy fire engines
Traditional Manufacturer
Having problems lately with on-time

delivery and customer satisfaction

Current State Map Setup
Tips
•Use 11” x 17” paper, landscape
•Use pencil and eraser
•Draw by hand
•Don’t waste time putting it on a computer just to make it look
nice (non-value added time)
•Practice, practice, practice
Steps
•Customer
•Supplier
•Process
•Information flow
•Calculate process time and lead-time
Current State Map Setup
Supplier Customer
information Information Flow Area information
Process Flow Area
Process Time and Lead-time Area

Title Block
Current State Map
Start with
Customer
Information
first

Current State Map
Dewey,
Cheatem &
Howe

Current State Map
Dewey,
Cheatem &
Howe

Current State Map
Dewey,
Cheatem &
Howe
Daily

Current State Map
Dewey,
Cheatem &
Howe
Daily

Current State Map
Dewey,
Cheatem &
5,300 pcs/mo. Howe
Daily

Current State Map
Dewey,
Cheatem &
5,300 pcs/mo. Howe
265 pcs/day
Daily

Current State Map
Dewey,
Add Cheatem &
Howe
Supplier 5,300 pcs/mo.
265 pcs/day
Information
Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Process
Flow

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping Spot Weld

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping Spot Weld Deburr

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
Stamping Spot Weld Deburr Assemble

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec
C/O= 4 hrs

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec
C/O= 4 hrs
Rel.= 98%

Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec
C/O= 4 hrs
Rel.= 98%
FPY = 95%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec C/T=
C/O= 4 hrs C/O=
Rel.= 98% Rel.=
FPY = 95% FPY =
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1
C/T=1 sec C/T=39 sec
C/O= 4 hrs C/O= 11 min
Rel.= 98% Rel.= 99%
FPY = 95% FPY = 90%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1 =1
C/O= 4 hrs C/O= 11 min
Rel.= 98% Rel.= 99%
FPY = 95% FPY = 90%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1 =1 =1
C/T=1 sec C/T=39 sec C/T=17 sec
C/O= 4 hrs C/O= 11 min C/O= 0 min
Rel.= 98% Rel.= 99% Rel.= 80%
FPY = 95% FPY = 90% FPY = 100%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
=1 =1 =1 =2
C/T=1 sec C/T=39 sec C/T=17 sec C/T=48 sec
C/O= 4 hrs C/O= 11 min C/O= 0 min C/O= 5 min
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared Inventory
I I I
Information
1,400 1,225
=1 5,425 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 =1 =1 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Dewey,
Phlye- Cheatem &
Biknight Information
5,300 pcs/mo. Howe
Flow 265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Dewey,
Phlye- Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Dewey,
Phlye- MRP
Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
Biknight L/T= 2 days Howe
5,300 pcs/mo.
265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
5,300 pcs/mo.
P/T = 20 min 265 pcs/day
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Prod Ctrl Order Entry
Monthly Dewey,
Phlye- MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly
Weekly Schedule Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
5,300 pcs/mo.
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
Weekly 5,300 pcs/mo.
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
30/60/90 Prod Ctrl Order Entry
Forecast Monthly Dewey,
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Process ©Copyright
time and Lead-time
Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
1 sec
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
1 sec 39 sec 17 sec 48 sec
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days ©Copyright Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
C/T=1 sec 5,425 C/T=39 sec C/T=17 sec C/T=48 sec
C/O= 4 hrs 265 C/O= 11 min C/O= 0 min C/O= 5 min
Rel.= 98%
= 20.47 Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days ©Copyright Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
C/T=1 sec 5,425 C/T=39 sec C/T=17 sec C/T=48 sec
C/O= 4 hrs 265 C/O= 11 min C/O= 0 min C/O= 5 min
Rel.= 98%
= 20.47 Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days 20.5 days ©Copyright Manos/Alukal 2002
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
10 days 20.5 days 5 days
©Copyright Manos/Alukal 2002 4.5 days
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
©Copyright Manos/Alukal 2002 4.5 days
1 sec 39 sec 17 sec 48 sec 105 sec
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
©Copyright Manos/Alukal 2002 4.5 days 40 days
Current State Map
Process
30/60/90 Prod Ctrl time andEntry
Order Lead-time
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Cheatem &
Biknight
Weekly Information Flow L/T= 2 days
P/T = 20 min
Weekly
5,300 pcs/mo.
265 pcs/day
Howe
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Cheatem &
Biknight
Weekly Information Flow L/T= 2 days
P/T = 20 min
Weekly
5,300 pcs/mo.
265 pcs/day
Howe
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
C/O= 4 hrs Process
C/O= 11 min Flow C/O= 0 min C/O= 5 min
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Section 2 Lean Basics
• Introduction
• History of Lean
• 8 Wastes of Lean
• Lean Building Blocks

History of Lean in Manufacturing
• Henry Ford
• The longer a product is in manufacture and the more
it is moved about, the higher its ultimate cost. - 1926
• Taiichi Ohno of Toyota
• Father of the Toyota Production System (TPS).
Identified the original 7 Deadly Wastes and made JIT
and Autonomation Pillars of TPS.
• Lean in the United States
• Came back over from Japan in 1980s as JIT and
Quality Circles. It failed for most companies because
they did not apply it properly. Revitalized in the
1990s and called “Lean”.
Mass Production TPS
Lean (US)
Benefits of Lean Manufacturing
Helps in – Real Results
0 50 100
• Cost reduction
• Cycle time reduction Lead Time
Reduction
• “Waste” minimization
Productivity
• Elimination of non- Increase
value-added activities
WIP
• Resulting in a more Reduction
“lean,” competitive, Quality
agile, and market- Improvement
responsive company Space
Utilization
Why the Emphasis on Lean Now?
• Global economy
• Pressure from customers for price reduction
• Fast-paced technological changes (e.g. Internet
auctions)
• Continued focus on quality, cost, delivery
• Higher and higher expectations of customers
• Quality standards, such as QS-9000 (or TS 16949),
the new ISO 9000:2000
• Holding on to “Core Competencies” and
outsourcing the rest
• Market-driven pricing: Customers expect better
performance at lower prices year after year
Definition of Lean
Lean has many definitions
“A systematic approach to identifying and
eliminating waste (non-value-added
activities) through continuous improvement
by flowing the product at the pull of the
customer in pursuit of perfection”
- Definition by the MEP Lean Network
Give the customer what they want, when they

want it and don’t waste anything.
Definition of Value Added
Waste is any activity that does not add value to
the final product for the customer.
• Value-added is an activity that transforms or
shapes raw material or information to meet
customer requirements.
• Non-value added is an activity that takes time,
resources or space, but does not add to the
value of the product or service itself.
• Non-value-adding, but necessary – does not
add value to the product or service but is
required (e.g., accounting, governmental
regulations, etc.).©Copyright Manos/Alukal 2002
Lean = Eliminating Wastes
Non-Value Added
Value Added • Overproduction
• Excess Motion
• Excess Inventory
• Transportation
• Waiting
• Underutilized People
• Defects
• Non-Value Added
Processing
Typically 95% of all lead time is non-value added

Core Concepts of Lean
• Creativity before Capital

• A solution that is not-so-perfect implemented
today, is better than a perfect solution that is
late. “Just do it.”
• Inventory is not an asset, but a waste/cost.
• Typically, 95% of lead-time is not value added.
• Lean implementation using the Plan-Do-Check-
Act methodology
• Continuous Improvement environment: both
incremental and breakthrough.
• Lean is a never-ending philosophy.
8 Wastes of Lean
“OMIT What U DO”

• Overproduction
• Motion
• Inventory
• Transportation
• Waiting
• Underutilized People
• Defects
• Over-processing
Overproduction
Makingmore-earlier-faster than
the next process needs it.
– Just in case logic
– Unbalanced workload
– Unleveled scheduling

Motion
Any movement of people or machines
that does not add any value to the
product or service
– Poor layout
– Inefficient Workplace Organization
– Lack of Standardization, inconsistent
work methods
– People, Material and Machine
Ineffectiveness
Inventory
Any supply in excess of one-piece flow
– Unreliable suppliers
– Reward system

Transportation
Movingpeople, materials and
information around the
organization
– Poor layout
– Inefficient “flow”
– Carrying large inventories

Waiting
Waitingfor… man, machine,
materials, information etc.
– Unplanned downtime

Underutilized People
Not utilizing people’s experience,
skills, knowledge, creativity.
– Not utilizing Teams
– Organization structure
– Poor hiring practices
– Little investment in training

Defects
Rechecking or re-inspecting work
– Not using Jidoka or Poka-yoke
– Lack of Standardization, inconsistent
work methods
– Ineffective communication
– Little investment in training

Over-processing
Effort that adds no value to the product
or service from the customer’s (internal
or external) standpoint
– Inconsistent work methods
– Ineffective communication
– Redundant approvals
– Excessive information, extra copies

Building Blocks of Lean
Continuous Improvement & Kaizen Blitz
TPM JIT Cellular & Flow Pull System & Kanban
Poka-yoke Self Inspection Autonomation
POUS Batch Size Reduction Quick Changeover V

S
Layout Standard Work Visual 5S M
Change Management Teams

Change Management
• Lean is not a quick fix
• Lean is not for everyone
• Incremental and Breakthrough improvements
• Prepare and motivate people
• Employee involvement
• Identify “Champions”
• Reward and recognition
• What if we don’t get better and our competition
does?
Lean Teams
• Cooperative instead of competitive
• Cross-trained
• Cross-functional
• Improvement teams are examples of
“creativity” before capital
• Input and involvement valued by
management
• Pooling of team skills, talents and knowledge
• Mutual support for each other
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5S Workplace
Organization and
Standardization
A place for everything and
everything in its place

5 Words that begin with “S”
Japanese Translation Conversion *Other

Seiri Organization Sort Sorting
Simplifying
Seiton Neatness Set in order
access
Seison Cleaning Shine Sweeping
Seiketsu Standardization Standardize Standardize
Self-
Shitsuke Discipline Sustain
discipline
* There are several other conversions

Sort
“When in doubt, move it out”
• Move unneeded items out of the area
• Use the Red Tag Technique
• Use a Temporary Red Tag Holding
Area Name____ Date___
• Criteria for unneeded items Item _____________

• “30-day Rule” Reason _________
• Keep only what you need in the area

Set in Order
“A place for everything and
everything in its place.”
• Make it easy for anyone to find
• “30-second Rule”
• Make it obvious if an item is out of place
• Decide where to keep items, how many items
to keep, how and when to replenish items
• Make it visual

Shine
“Clean and Inspect”
• Get items to a like-new condition
“10 Second Rule”
• Must plan Shine – assignments &
supplies
• Perform as a Team
• Prevent dirt, grime, or contamination
• Repair as needed
Standardize
“Create the rules and follow them”
• Determine how the first 3S
conditions are met
• Use “One-Point Lessons”
• Maintain and monitor the
conditions
• Use visual techniques
Sustain
“Make 5S a habit”
• 5S is not something additional, it is
part of everyone’s daily job
• Supports discipline
• Train
• Communicate
• Support from Management
• Reward and recognition
5S in the Office
After
Before

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Visual
Signs, lines, labels and color coding

Why Visual?
• What you need to know
• Cockpit view
• Information sharing
• How do you know where to park
when you drive your car to work?
Does your boss have to tell you
where to park?
Visual Examples
Andon Lights
Display Panels
Range
Markings
On Gauges
Shadow Boards
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Standard Work
Reduce task variability

Standard Work
• Best Sequence of Operations
• Man, machine, materials,
changeovers, etc.
• Identifies value added versus non-value
added activities
• Reduce or eliminate NVA activities
• Convert internal time to external time
• Use for continuous improvement
Benefits of Standard Work
• Consistent performance of tasks = better
quality
• Track performance = actual versus
standard for continuous improvement
• Easy to Train = reduced learning cycle
time
Old Learning Curve New Learning Curve
Productivity
Productivity

Time Time
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Layout
Streamlined Layout

Streamline Layout
• Flow by product family – the output of one
process is the input for the next
• Created with input from employees
• Flexible, easy to change
• Short distances, small batches
• Visual, good communication
• Concentrate on reducing waste and non-value
added activities like Motion & Transportation
A B C

Spaghetti Diagram Example
Tracked 4 People
for 30 Minutes

Traditional versus Lean Factory
Traditional Factory
Lean Factory
Machining
Assembly Assembly Machining Support
Support
Traditional Lean
Factory Capacity 125,000 120,000
Factory Size (Sq ft) 500,000
170,000
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Value Stream Mapping

“See the Flow”

Four Steps for VSM
1. Determine the product family

2. Create current state map
3. Create future state map
4. Develop plan

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Point-of-Use-Storage
Keep it where you use it

Point-Of-Use Storage
• Raw material and WIP are stored at
workstation where used, which
reduces the inventory that can be
carried
• Works best if vendor relationship
permits frequent, on-time, small
shipments (JIT)
• Simplifies physical inventory tracking,
storage, and handling
POUS Workplace Zones
• Items used most often
(i.e., daily) should be
kept within reach
• Items used less often
(i.e., weekly) should be
kept close-by
• Items used rarely (i.e., Daily
monthly) should be kept Weekly
in the vicinity
Monthly

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Batch Size Reduction

Make one, move one

Batch Size Reduction Example
1 minute per page, 10 pages, 3-steps
Step 1 2 3
+ + Total 30 min
Fastest 21 min
10 min 10 min 10 min
Batch Size = 10

Batch Size Reduction Example
1 minute per page, 10 pages, 3-steps
Step 1 2 3
+ + Total 30 min
Fastest 21 min
10 min 10 min 10 min
Batch Size = 10
+ + Total 12 min
Fastest 3 min
1 min 1 min 1 min
Batch Size = 1 ©Copyright Manos/Alukal 2002
Information on Batch Size
Reduction
• The best batch size is one piece flow, or
make one and move one!
• If one piece flow is not appropriate, reduce
the batch sizes to the smallest size possible
• In some cases, “one-piece” might be one tray
or pallet or container of parts
• Affected by quick changeover and workplace
layout
• Responsive to demand, makes the
organization more flexible
Batch Versus Flow
“Make-one, Move-one”
Complete Order First Piece Defect Detection

Improvements
35
30
30 60% 86% 91%
25 21
20
15 11 12
10
5 3
1
0
Batch Flow
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Quick Changeover
Changeovers in less than ten
minutes

Quick Changeover (QCO)
• Definition of changeover time: the

time from the last good piece off
the previous run to the next good
production piece from this run
• SMED or Single Minute Exchange of
Dies means quick changeover
within a single digit in minutes
(under 10 minutes)
Example of QCO Impact
2 hour C/O
9
8
7
6
5
4
3 A B C D E
2
1
0
Monday Tuesday Wednesday Thursday Friday
1 hour C/O
9
8
7
6 B D A C E
5
4
3
2
1
A C E B D
0

Example of QCO Impact
1/2 hour C/O
9 E
8 C
E B
7 B
6 D
5 B
D A
4
A
3
2 C
A C E
1 E
0
Impact Before QCO 1 Hour C/O ½ Hour C/O

Production 30 hours 30 hours 34.5 hours
C/O time 10 hour 10 hours 5.5 hours
No. of C/O 5 10 11
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Autonomation
Self Inspection
Poka-yoke
You cannot pass a bad part on to
the next operation

Explanation
• Autonomation (Jidoka) – Requires

operator intervention if an error
occurs
• Self Inspection – Operator is
responsible for the quality of their
work
• Poka yoke – “Error-proofing”,
prevents an error from occurring
Cannot Pass Bad Parts On
The combination of jidoka, poka yoke

and self inspection will ensure that
no defect will occur, or if a problem
does happen, the process
immediately shuts down and calls
for human intervention to fix it.

Autonomation
• A technique to ensure that only good

parts are produced and passed on; this
defect detection system manually
(“human automation”) or automatically
stops production if a problem occurs
• Will have a device to detect errors or
abnormalities
• Will have a device to automatically shut
down machine if a defect occurs
Autonomation Example
•Sensors determine if an element is correctly
in place
•The machine automatically stops if an
element is missing
•This ensures that all parts (100%) have an
element inserted
Sensors ©Copyright Manos/Alukal 2002

Self Inspection
• The operator is responsible to ensure
a defective part is not passed to the
next operation
• Training, tools, standards must be
provided to the operator
• Use SPC or other mechanisms of
feedback
• Design quality into the system versus
detection
Poka-yoke
• Error proof (mistake proof) takes away the
possibility of human error
• The term Poka-yoke was made popular by
Shigeo Shingo
• Fail-safe devices
• Low cost, highly reliable mechanisms
• Detects abnormal situations before they
occur, or
• Once they occur, will stop the equipment
from further production. The machine
stoppage makes the problem visible.
Poka-yoke Example
• The plastic tray is
designed to have a
Locator Pins
notched corner
• When material is
placed into the
machine, the pins
prevent it from
being inserted
incorrectly Notched corner
• This ensures 100%
correct orientation
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Total Productive
Maintenance
Have the equipment available
when you need it

Evolution of TPM
Breakdown Preventive Predictive TPM

Maintenance Maintenance Maintenance
Older times Now

What is TPM?
• A Lean maintenance strategy for maximizing
equipment reliability and uptime
• Share responsibility for equipment reliability
• Eliminate equipment related waste:
• Unplanned downtime
• Planned downtime
• Changeovers
• Minor stoppage
• Speed reduction
• Poorer quality product
• Idled equipment ©Copyright Manos/Alukal 2002
OEE Calculation
• OEE = Availability x Performance x Quality
Breakdowns Idled time Defects

Examples Setup Not at rated speed Rework
Tool changes Minor stoppages Start-ups
Uptime Standard Number of Number of

= Scheduled x Cycle Time x Pieces Produced x Good Pieces
Production Uptime Total Number
Time Produced
OEE Example
OEE Example for 4 linked machines

Overall
OEE OEE OEE OEE OEE
78% 33% 45% 63% 7%
.78 x .33 x .45 x .63 = .073

World Class OEE Measures
• Discrete Part Manufacturing = 85%
• Continuous Processing = 92%
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Cellular and Flow

Production
No WIP, No Waiting

Cellular/Flow
Definition: Linking and arrangement

of manual and machine process
steps into the most efficient
combination to maximize value-
added content while minimizing
waste.

Cellular/Flow
• Value is added any time we physically change
our product towards what the customer is
buying.
• If we are not adding value, we are adding cost
or waste.
• Flow Manufacturing drives the systematic
elimination of waste.
• Will help in collapsing the lead time closer and
closer to actual value-adding processing time.
• Cellular/Flow production results in “no WIP, no
Waiting”. ©Copyright Manos/Alukal 2002
Demand Change Example
Time Available = 27,000 sec
Demand = 300 units
Takt Time = 90 sec
Process 1 Process 2 Process 3 Process 4 Process 5
In C/T = 45s C/T = 45s C/T = 15s C/T = 15s C/T = 30s
C/T = 30s
Process 6
Out
C/T = 30s C/T = 30s ©Copyright
C/T = 60s 2002 C/T = 30s
Manos/Alukal C/T = 30s
Demand Change Example
Time Available = 27,000 sec
Demand = 450 units
Takt Time = 60 sec
In C/T = 45s C/T = 45s C/T = 15s C/T = 15s C/T = 30s
C/T = 30s
Process 6
Out
C/T = 30s C/T = 30s ©Copyright
C/T = 60s 2002 C/T = 30s
Manos/Alukal C/T = 30s
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Pull System
Replenish at the Demand of the
Customer

Push Vs. Pull
Push Pull
• Based on • Based on Actual
Schedules from Customer Usage
Forecasts • Only produce
• Make product when product is
whether or not consumed
the next
operation needs it
Push Pull
Kanban
• Kanban = Sign, signal

• Order point – when to replenish the
supermarket
• Order quantity – the amount to
replenish the supermarket

Order Point – Order Quantity
Order Quantity
=2
Process B Process A
In this example,
Process A can produce Order Point
faster than what =4
Process B needs. ©Copyright Manos/Alukal 2002
6 Kanban Rules
• You cannot send bad product to the

next operation
• Only withdraw what is needed
• Only produce what is used
• Smooth the workload
• Standardize
• Keep improving
Supermarkets
• When a supermarket
shelf is full, you can’t
fill it any more
I need
• When a supermarket some
shelf is at the order “B’s”
point, you fill it A
Make it
• It is a “controlled” Visual
inventory C
• Calculate the correct D
size and audit as
needed ©Copyright Manos/Alukal 2002
JIT
• JIT= “Just in time”
• JIT is not just for your Suppliers, you
must perfect JIT within your own
operations
• JIT is the opposite of Overproduction
• Delivery just before the next
operation needs it
• Don’t make it earlier, faster, or
before it is needed
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Continuous
Improvement
Continuous Improvement (C. I. or
“Kaizen”, in Japanese), is an essential
and never ending process

Sources for Continuous Improvement
• Employee suggestions
• Corrective & Preventive actions
• Non-conformities, defects
• Customer complaints, returns
• Benchmarks
• The Lean “wastes”
• Variations from the standard
• Assessments, audits & competitive analyses
• Research & Development activities
Continuous Improvement &
Continuous Learning
• Management should have training given to
employees in Lean and quality tools, problem
solving and root cause analysis, the process
model, concepts of Theory of Constraints,
basic statistical techniques, graphical tools,
etc.
• Understanding of Plan-Do-Check-Act and
Standardize-Do-Check-Act (SDCA) will be
beneficial
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Kaizen Blitz
Breakthrough Strategies for
Lasting Results

Kaizen Blitz
KAI + ZEN
Change For the better
KAIZEN
Continuous Improvement
BLITZ
“Flash” or “Lightning”
“Kaizen Blitz” is Service Marked by AME (Association for Manufacturing Excellence)
What is Kaizen Blitz?
• Kaizen Blitz is a combination of the Japanese
word Kaizen for “continuous improvement”
and the German word Blitz for “lightning”
• It is a focused, typically week long project
where a cross-functional team reviews a
process, identifies and eliminates waste,
thereby achieving dramatic & tangible BREAK-
THROUGH (rather than incremental)
improvement results
• Also called, Rapid Kaizen, Kaizen Event, etc.
What is Kaizen Blitz?
• It is treated more as a “Project” and

not as a Process”
• For Kaizen Blitzes to succeed, Top
Management commitment is critical
• Kaizen Blitzes are aligned with
company’s strategy
• “Creativity before Capital” is the
motto
Kaizen Blitz Improvements
• Reduce space • Make optimal
• Reduce use of people’s
Inventory knowledge, skills
• Reduce overall and experience
cost • Maintain or
• Reduce motion improve quality
or transportation • Implement fast
waste strategies
• Cut lead-time ©Copyright Manos/Alukal 2002
Section 3 Future State
Future State Concepts

Case Study Future State

Current State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
FUTURE STATE QUESTIONS
1. What is the Takt Time?
2. Will we build to shipping or to a supermarket?
3. Where can we use continuous flow?
4. Where do we have to use supermarket pull
system?
5. At what single point in the production chain do
we trigger production?
6. How do we level the production mix at the
pacemaker process?
7. What increment of work will we release and
take away at the pacemaker process? (Leveling
the volume)
8. What process improvements will be necessary?
(e.g. uptime, changeover, training)
1. What is the Takt Time?
Takt means drumbeat

Ability to meet customers’ demand
Formula
Time Available
Takt Time =
Demand

Takt Time Calculation
Time available
Shift (8 hours) = 480 mins
Breaks (2 x10) - 20 mins
Lunch - 30 mins
Meetings - 5 mins
C/O - 5 mins
Total Time = 420 mins = 25,200 sec
Demand = 265 parts
Takt Time = 95 sec/part
Problem with Goodenuff
Cycle time from our Current State Map

= 105 sec
Takt time is 95 sec
They cannot produce to demand!
– Late shipments
– Dissatisfied customers
– “Bumping” in the schedule

2. Build to Shipping or
Build to Supermarket?
Ask the question “Can we build it
within the time the customer
requires?”
Customer Order Receive Complete

Order Raw Materials Raw Materials Order

Build to Shipping
We can take the customer order

Receive the raw materials
Produce the product
Ship the product
All in less than the delivery date
required by the customer

Build to Supermarket
We cannot take the customer order

Receive the raw materials
Produce the product
Ship the product
All in less than the delivery date
required by the customer

Supermarkets
“Supermarkets” are controlled

inventory
Think of the supermarket shelf
– When it is low, it is filled up
– When it is full, no more is produced
– Bread man story

3. Where can we Flow?
Where can we combine work?

Where can we eliminate inventory?
Can we make a Cell?
Is the equipment dedicated or shared?
Where can we eliminate waste?

4. Where do we use a
Supermarket Pull System?
Are there “monuments” that can’t be
moved?
Are there long process times or
changeover times?
Are materials sent to outside processing?
Is there shared equipment?
Kanban system
5. At what single point in
the production chain do we
trigger production?
In the Current State we had multiple
schedules, weekly schedules,
departmental schedules, etc.
In the Future State we only want one
schedule to drive production
Where will the schedule start?

6. How do level production
mix at the Pacemaker
process?
Pacemaker = the process where the
single schedule drives production
Leveling or “Heijunka”
Heijunka box or Level Loading symbol
OXOX
EPEI = Every Part, Every Interval

Linearity & Leveling for
Volume
Production Customer Demand

Leveling for Mix - Poor
Weekly Mon Tue Wed Thur Fri
Demand A A C C D
A =6 A B C C D
B =4 A B C C D
C =8 A B C D D
D =7 A B C D D
• What do you tell Customer “D” if they want parts on Monday?

• Are these jobs repetitive and boring?
• What happens if Customer “A” calls Monday afternoon and
cancels the order?
Leveling for Mix - Better
Weekly Mon Tue Wed Thur Fri
Demand A A A A A
A =6 B B B B A
B =4 C C C C C
C =8 C D C C D
D =7 D D D D D
Requires Quick Changeover

• More flexible
• Better quality
• Less inventory ©Copyright Manos/Alukal 2002
7. What increment of work will we release
and take away at the Pacemaker process?
Pitch
– Management intervention time frame
Know the pitch time increment
Know when a problem occurs
Respond quickly
Element Timeframe
– Pack-out quantity Takt Seconds
Paced withdrawal Pitch Minutes
Material Handler Shift Hours
time frame or “milk run” Customer Days
8. What process improvements
need to be made?
Look at the Future State Map and
determine where improvements have
to be made from the Current State to
get there
These become the projects to work on
They can be performed in Kaizen Blitz
mode or as a longer project based on
need
C/0 = 4 hours
What to look for
Any changeovers greater than 10 minutes

Inventory
Flow or Cells
Reducing or eliminating waste or non-value
added processes
Long cycle time
Low quality of First Pass Yield (FPY)
Low reliability of equipment
Case Study Future State
Let’s look at Goodenuff and answer

the eight questions
Don’t forget the time frame – 6
months, 12 months, 18 months or ?
New symbols for Future State Maps

Future State Icons
Withdrawal
Supermarket
Kanban arriving
in groups
Production
Kanban Kanban
Withdrawal Path
Kanban
Batch Kaizen
C/O = 8 hrs
Kanban ©Copyright Manos/Alukal 2002
Event
Future State Map
2 days
20 min
Q1. What is the Takt Time?MRP
Phlye-
Forecast
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
A. 95 seconds Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
A. 95 seconds Daily – o
l m
e ld t
rob bui e
Stamping Spot Weld Deburr p t Assemble
im
s t no T
r
Fi can I akt c. to
Shared
I I I e e T s e ed
1,400 W t1,225h 9 5 n e he
2 Weeks =1 5,425 =1 =1 i ll e =2
t e
e w ov i m
C/T=1 sec C/T=39 sec C/T=17 sec W p r T sec
C/T=48
im cle
C/O= 4 hrs C/O= 11 min C/O= 0 min y
CC/O= 5 min
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q2. Build to Shipping or Build
Phlye-
Forecast
MRP MRP
to a Supermarket?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP MRP
to a Supermarket?
Monthly Dewey,
Weekly Cheatem &
Weekly
A. Our customer’s require delivery
Daily in less time
ofStamping
our ordering raw
Spot Weld materials and making
Deburr Assemble
I
the product.
Shared
I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Build
C/T=1 to
sec a Supermarket
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP MRP
to a Supermarket?
Monthly Dewey,
Weekly Cheatem &
Weekly
A. Our customer’s require delivery
Daily in less time
ofStamping
our ordering raw
Spot Weld materials and making
Deburr Assemble
I
the product.
Shared
I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Build
C/T=1 to
sec a Supermarket
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q.3 Where can we flow?
Phlye-
Forecast
MRP MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q.3 Where can we flow?
Phlye-
Forecast
MRP MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Dedicated equipment
Daily

Shared
I I I I
2 Weeks =1 5,425 =1 1,400 =1 1,225 =2
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Create a Cell
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Eliminates inventory and multiple schedules
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q4. Where do we use a Supermarket
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Raw materialsWeekly P/T = 20 min 265 pcs/day

Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Shared Weekly
resources P/T = 20 min 265 pcs/day

Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
I I =4
2 Weeks =1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
Pull System?
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q5. Where do we trigger production?
Phlye-
Forecast
MRP
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q5. Where do we trigger production?
Phlye-
Forecast
MRP
MRP
Monthly Dewey,
Weekly Cheatem &
Weekly
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q6. How do we Level the production
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye-
Forecast
MRP
MRP
mix?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q7. What increment of work
Phlye-
Forecast
MRP
MRP
will we release?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q7. What increment of work
Phlye-
Forecast
MRP
MRP
will we release?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
A. Based on our customer’s requirements and
SW/Deburr/Assemble
Stamping
the pack-out
Shared
quantity
• 12 boxes per case =4
• Pitch=1= 12 boxes per case x 95 sec per unit

= 19 minutes C/T=17 sec C/T=48 sec
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Q8. What process improvements
Phlye-
Forecast
MRP
MRP
are necessary?
Monthly Dewey,
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Weekly OXOX Daily

Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
C/T =
Rel.= 98% Rel.= 99% Rel.= 80% Rel.= 100%
104 sec
FPY = 95% FPY = 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Phlye- MRP MRP
Weekly Cheatem &
Scheduling 265 pcs/day
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
hrs C/O= 11 min C/O= 0 min C/O= 5 min
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
30 day Prod Ctrl Order Entry
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Let’s
Phlye-
recalculate the Cycle Time
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Let’s
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Let’s
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
As an estimate, how much
Scheduling
inventory do
Weekly we want to keep Daily
OXOX in OXOX
Daily
the Supermarkets?
SW/Deburr/Assemble
Stamping
Shared
=4
=1
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Let’s
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
As an estimate, how muchScheduling
inventory do
Weekly we want to keep Daily
OXOX in OXOX
Daily
the Supermarkets?
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
3 days C/T=1 sec C/T=39 sec 2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
Future State Map
2 days
20 min
Let’s
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
3 days 2 days ©Copyright Manos/Alukal 2002 2 days
Future State Map
2 days
20 min
Let’s
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
3 days 2 days ©Copyright Manos/Alukal 2002 2 days
1 sec 90 sec
Future State Map
2 days
20 min
Let’s
Phlye-
Forecast
MRP MRP
and Lead Time
Monthly Dewey,
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
3 days 2 days ©Copyright Manos/Alukal 2002 2 days 7 days
1 sec 90 sec 91 sec
Future State Map
2 days
20 min
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Let’s look at support area improvements
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Lean is not just for the
shop floor
How can we apply this to other areas?
Requires creativity
Must be open minded
Continuous improvement philosophy
Nothing is sacred, abandon the “That’s

the way we’ve always done it” attitude

10 Future State Questions
1. What are our customers’ needs (internal and
external)?
Who are our customers?
What do they want?
How much variation in demand rate?
When do they want it?
What quality do they expect?
Can we establish a pace or rhythm?
2. What steps add value and which ones are waste?
Is this really needed or can it be improved or
eliminated? ©Copyright Manos/Alukal 2002
3. What is the frequency and method of performance
checks?
How often do we track performance to stay on
track?
How do we make the measurements visual?
4. How can work flow with fewer interruptions?
Are smaller batches possible?
5. How will work be controlled between
interruptions?
How do we prioritize the work?
How do we minimize waiting?
6. How do we balance the workload?
Can we have more than one person perform the
task?
How can we level the volume or mix of work?
7. How do we prioritize the work?
What system allows us to work on the most
important items first (versus urgent)?

8. What is the impact of activities, volume of
workload and improvements?
If we improve one area how do we ensure it
doesn’t adversely affect other areas?
9. What other supporting processes are required?
Which other departments are needed to help
implement a Future State?
10.What process improvements are necessary?
What projects can be performed in Kaizen Blitz
mode?

Future State Map
2 days
20 min
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
2 days
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
2 days
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Measurable Improvement
Lead-time 40 days 7 days
Cycle time 105 sec 91 sec
Inventory 10,700 pcs 1,855 pcs
Kaizen events
– Stamping changeover time
– Deburring reliability
– Spot weld quality
Other benefits
– Operators in cell cross-trained
– More flexibility
– Reduced lead-time and defects = happier customers
What to look for
Any changeovers greater than 10 minutes

Inventory
Flow or Cells
Reducing or eliminating waste or non-value
added processes
Long cycle time
Low quality of First Pass Yield (FPY)
Low reliability of equipment
Section 4 The Plan
Most critical part of Value Stream

Mapping
The ultimate benefit of VSM

Achieving the Future State
1. Break the Future State Map into a

series of “loops”
2. Create a “Value Stream Plan”
3. Conduct a “Value Stream Review”

Value Stream Loops
• Start with Pacemaker Loop
• where the schedule triggers
production
• Break it into manageable sizes
• Too many loops may cause
confusion

Value Stream Loops
Q. How do you eat an elephant?
A. One bite at a time.

Number of Loops
Make it manageable
Not too may
Not too few
Look for logical breaks
Thumb rule
– Probably somewhere between 3-7 loops
Remember – the point is to make it
easier for implementation
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Start with the Pacemaker Loop
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
20 min Loop 1
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
Loop 2 20 min Loop 1
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
Future State Map
1 hour
Loop 2 20 min Loop 1
L/T = 2 days
Phlye- MRP MRP
Daily Cheatem &
P/T = 20 min
Weekly OXOX Daily
Daily OXOX
SW/Deburr/Assemble
Stamping
Shared
=4
=1
2 days
Loop 3 C/T=17 sec C/T=48 sec
Stamping
C/O=
C/O =44 hrs
Deburr C/T =
Rel.= 98% Rel.= 99% Rel.=
Rel. 80%
= 80% Rel.= 100%
104 sec
SW FPY
FPY = 95% FPY = 90%
= 90% FPY = 100% FPY = 98%
1 sec 90 sec 91 sec
The Plan
“People don’t plan to fail, they fail to

plan.”

Creating the Future State
Plan
Use good Change Management
principles
Use good project management
principles
The VSM Team should create the draft

Project Management
Define and plan the Plan for resources such
project activities as
Track the progress – Costs
Manage schedules, – Quality
resources, costs, scope – Risks
and risk – Communication
Report the project – Human resources
status
– Scope
Perform a final review,
closeout and lessons – Time
learned – Procurement
Types of Actions
Project
– Subproject
Tasks
Kaizen Blitz mode

Plan Obstacles
Beware!
People may not want to commit
themselves or their resources
Remember not to optimize one area while
sub-optimizing another area
Overall efficiency is the goal, not
individual efficiencies
Don’t overload the front end of the
project
Future State Plan and
Business Objectives
Tie your plan into your organization's
strategy, objectives or goals
This will help to ensure support
Will make senior management aware
of the improvements that are possible
and the positive impact for the
company
Build buy-in
Planning Matrix
Use a Planning Matrix, Gantt Chart or

something similar to document the
planning effort
Show the steps, time table and
responsibility

Value Stream Planning
Matrix
DATE SIGNATURES
FACILITY PLT ENG MAINT
MGR MONTHLY SCHEDULE MGR
VS MGR
PRODUCT VS VS GOAL PERSON RELATED REVIEW
(MEASUREABLE) IN IND./ SCHED
FAMILY LOOP OBJECTIVE DEPTS
BUSINESS CHARGE
OBJECTIVE
IMPROVE 1 CONTINUO ZERO WIP

PROFITA- US FLOW
BILITY IN FROM WELD
STEERING ASSMBLY
BRACKETS
2 STAMPING 1 DAY
PULL INVENTORY
STAMPING BATCH SIZE
C/O
3 PULL FOR DAILY

COILS DELIVERY
WITH 1.5 DAYS OF
DAILY COILS AT
DELIVERY PRESS ©Copyright Manos/Alukal 2002
The Plan
Product VS VS Objective GOAL Time Frame Leader Other

Family/Busine Loop (Measurable) Depts.
ss Objective
Improve 1 Continuous Zero Wip

profitability flow from
in Fire Truck welding to
line assembly

Prioritize the Plan
While developing the draft plan:

– Determine the possible projects in the agreed
to time-frame (6 months, 1 year, 18 months)
– Prioritize the projects
Baseon impact or customer
Concurrent projects and critical path projects
Remember, this is what’s best for the

Value Stream not a manager or
department ©Copyright Manos/Alukal 2002
Value Stream Plan
Review
The Value Stream Manager
evaluates progress on each
implementation item
Use Arrow Analysis or other visual
means

Communicate progress
The Value Stream Manager walks the

floor to gather progress information
Communicate the progress to the
Work teams, Champions and Design
teams
Post results on the communication
board

Communication is Key
As part of good Change Management, we
must communicate consistently and
constantly
“Fear of the unknown” produces anxiety
about the change
Use the Current State Map, Future State
Map, Plan and Review to communicate
Communicate, communicate, communicate!
Communication Example
Communication Board
– VSM Manager Value Stream Board
– VSM Team Current Future Team
– VSM Current State
– VSM Future State Plan Review Notes
– Value Stream Plan
– Value Stream Review
Hold brief meetings at the VSM Board
Role of the Review
The Value Stream Manager is to

remove roadblocks from
implementation
The Value Stream Manager can re-
allocate resources to keep the plan on
track

Additional Information
About VSM
Beyond the basics

Additional Information
The Value Stream Manager

Examples of information flow in
support areas
Communication
Value Stream Life Cycles

The Value Stream
Manager
Appoint a Value Stream Manager
VS Manager is responsible for
achieving the Future State
Has the ability to remove all obstacles
to implementation
Not the traditional departmental
manager
Has the vision to lead the Lean efforts
Value Stream Manager’s
Role
The Value Stream Manager is high
enough in the organization to ensure
that the Future State is implemented
They can cross the traditional
functional boundaries to make things
happen
Top Management has to support the
Value Stream Manager by providing
resources and “walking the talk”
Information Flow
Support areas or functions may look at
information differently than the shop floor
Substitute Processing Time (P/T) for Cycle
Time (C/T)
– Ask the question “If you had no interruptions, how
long would it take you to finish this task?”
Use Lead Time (L/T) for the amount of NVA
time, waiting or batching of tasks
– Ask “How long before this paperwork moves to the
next process step?”
Other Data Box Information
Number of Shifts Quality, Scrap, Yield

Number of People Overall Equipment
per Shift Effectiveness - OEE
Energy used (lean- Takt time
green) electricity, Every Part, Every
air, fluids – oil, Interval – EPEI
hydraulic Date
Quantity, Pieces, Schedules
Boxes, Pack-out,
Pallets ©Copyright Manos/Alukal 2002
VSM Life Cycles
Current State 1 Future State 1
Future State 1 = Next Current
State
Next Current State Future State 2
Continuous
Current State Future State Improvement

Multiple Value Stream Maps
Once you get one Product Family up

and running look to the next VSM
Start the next VSM when you feel you
have the resources and the first VSM
is on its way
You will run multiple Value Stream
Maps at the same time

Benefits of VSM
• Helps you visualize more than the single
process level
• Links the material and information flows
• Provides a common language
• Provides a blueprint for implementation
• More useful than quantitative tools
• Ties together lean concepts and
techniques
Conclusions
• Practice VSM every chance you get

• You must have a plan!
• Focus on achieving the Future State
The eraser is
your best friend!
Questions?
• Wrap-up
• Evaluations
Thank you

Contact Information
Tony Manos
Catalyst Do not hesitate to
contact me if you have
Profero, Inc.
any comments or
124 W. Polk Street, Suite 101 questions.
Chicago, IL 60605-1770
I wish you great success!
USA
Office: 312.294.9900
Cell: 312.718.0078
Fax: 312.294.9911
Email: anthony.manos@proferoinc.com
Website: www.proferoinc.com

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124 W.

Polk Street, Suite 101

Value Stream Mapping

©Copyright Manos/Alukal 2002

 Basics of Value Stream Mapping

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

 Introduce value stream mapping

©Copyright Manos/Alukal 2002

1. Determine the Product Family

©Copyright Manos/Alukal 2002

 Typically a cross-functional team of

Continuous Improvement & Kaizen Blitz

TPM JIT Cellular & Flow Pull System & Kanban

Poka-yoke Self Inspection Autonomation

POUS Batch Size Reduction Quick Changeover V

Change Management Teams

©Copyright Manos/Alukal 2002

Good place to start Process Process Process

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

Determine product families by:

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

 Common process steps

 Draw by hand, with pencil and eraser

– Foundation for the future state

©Copyright Manos/Alukal 2002

Mon., Shipment- Operator

©Copyright Manos/Alukal 2002

 Produces toy fire engines

 Having problems lately with on-time

©Copyright Manos/Alukal 2002

Process Flow Area

Process Time and Lead-time Area

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

©Copyright Manos/Alukal 2002

Stamping Spot Weld

©Copyright Manos/Alukal 2002

Stamping Spot Weld Deburr

©Copyright Manos/Alukal 2002

Stamping Spot Weld Deburr Assemble

©Copyright Manos/Alukal 2002

Basics of Value Stream Mapping

Introduce value stream mapping

Typically a cross-functional team of

Common process steps

Draw by hand, with pencil and eraser

Produces toy fire engines

Having problems lately with on-time