10/21/2013

Maximized
Value Stream Mapping
Theory and practical application
case study

Christopher Martin

Christopher Martin
• Production planning supervisor at Case IH
– Process improvement specialist with over 2
decades of exposure:
• production operations planning, materials
management and control, process improvement,
database/systems design and development
– Project activity in support of fabrication, welding,
painting and assembly on several production lines.
• President – Central Nebraska APICS Chapter

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Elements to Cover
• Value stream mapping – definition/theory
• Current state map
• Action plan to future state
• Future state map
• Case Study – VSM at the Case IH Grand Island
facility
• Workshop – Video Console VSM

What is Value Stream Mapping

VSM: process of mapping the primary material
and information flows in converting raw
material to finished product or creating a service
of value that a customer is willing to pay for.

Levels that can be mapped:

Process : Plant : Multiple plants: Cross company

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Benefits of VSM
• Visualize entire process
• Common language
• Demonstrates links between operations
• Flow decisions easy to identify
• Waste identified
• Continuous improvement tool - iterations

VSM Primary Maps

• Current state map
– How we are today including key measurement and
communication flows

• Future state map

– Where we plan to be a year or two from now
based on proposed process improvement activity

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Steps to a Current State Map

• Walk the process – start upstream
• Establish customer requirements
• Determine major product families
• Pick a primary flow and major product
• Walk again, measure key elements, count
inventory
• Draw current state map

Establish Customer Requirements

• Define takt time – pieces per day, week,
month, year – rate customer requires product
– 21 units per day in 8 hours, 100% utilization
• Factor 0.5 hr lunch, 2 - 15 min breaks
• Avaliable time => 7 hours => 420 mins
– 420/ 21 => 20 min takt time

• Goal is to produce 1 unit every 20 mins

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Determine Major Product and Flow

• Delineate major processes
– Simplify but cover major steps in the flow
Order Receiving
Ingredients
3
2

Take Order Prepare Bill Payment Process

2 1 2

Mix Ingredients Bake Pizza Cut/ Box Pizza Sort for Delivery Put in Warmer

2 1 2 3 2

Get Ingredients Measure Prepare Boxes

2 2 2

Mix Ingredients Bake Pizza Cut/ Box Pizza Sort for Delivery

2 1 2 3

Measure Process Data

• Typical data to measure – varies with product
– Cycle Time : Changeover time : Uptime : Lead time
– EPE – 'leveled' production time : Scrap rate
– # of Operators : Pack size : Available time

• Use smallest time measurement feasible for

product – seconds, minutes, hours, days

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Determine system triggers/ Info flow

• Examples of symbols used:
Electronic Information Pull Push

Withdraw Kanban Production Kanban

Kanban Post Supermarket

Customer/ Supplier
Process Data Table
Shipping Truck

Primary elements to consider

• VA - value added activity
– impacts the fit, form or function of a product or
service that a customer is willing to pay for – eg
install gas cap on tank
• NVA - non value added activity
– elements in the conversion process that adds no
value to the product or service – eg move gas cap
to point of installation

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Draw Current State Map – eg: Pizza

Production Control

Take orders, prepare bils, order raw

Suppliers materials, issue instruction to make pizza Customers

Cash/ CC Receipt
Daily
Once Per Week Bills

Tickets

Daily
Mix Ingredients Bake Pizza Box Pizza Sort for Delivery

2 1 2 3 I
I

Cycle Time: 5 mins Cycle Time: 25 mins Cycle Time: 2 mins Cycle Time: 3 mins

# of Employees: 2 # of Employees: 1 # of Employees: 2 # of Employees: 3

Shifts: 3. Shifts: 3 Shifts: 3 Shifts: 3

7 Days 0 Days 0 Days 0 Days 0.25 Days 7.25 Days

5 mins 25 mins 2 mins 3 mins 35 mins

Review map for process inefficiencies

• Waste – 7 primary symptoms of problems
- Over-production : Waiting : Transportation
- Inventory : Motion : Over-processing : Defects
- NVA vs VA time
- Over or under takt
- Push systems
- Line balance

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Ask Primary Questions

• What is causing the waste?
• Where can we use continuous flow or pull?
• Where is best to trigger production?
• What is the bottleneck?
• How do we improve the bottleneck?
• How do we level production?

Determine Plan of Action

• Implement kanban
• Add kitting areas with kit carts
• Use standard packaging from suppliers
• Balance lines and reallocate resources
• Rearrange work stations for efficiency
• Mix model production where feasible

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List opportunity to improve – eg Pizza

• Implement electronic signals
• Increase frequency of delivery
• Reduce raw material inventory value
• Improve efficiency of boxing operations
• Increase speed of delivery

Draw Future State Map – eg Pizza

Production Control

Take orders, prepare bils, order raw

materials, issue instruction to make pizza

Suppliers Customers

Cash/ CC Receipt

Bills
Hourly
Order
Twice Per Week
Screen

Mix Ingredients Bake Pizza

2 1 Improve
Delivery
Daily
Cut/ Box Pizza Sort for Delivery
Ingredients
Cycle Time: 5 mins Cycle Time: 25 mins
1 3 I
# of Employees: 2 # of Employees: 1
supermarket 3 Days Shifts: 3. Shifts: 3
kanban
Cycle Time: 0.25 mins Cycle Time: 3 mins

# of Employees: 1 # of Employees: 3

Shifts: 3 Shifts: 3
Pre-make
boxes

Make Box

3 Days Boxes

3 Days 0 Days 0 Days 0 Days 0 Days 0.10 Days 3.10 Days

(1 mins - internal) 5 mins 25 mins 0.25 mins 3 mins 33.25 mins

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Develop Project Plan/ Kaizen Journal

• Add key responsible persons
• Add timelines with milestone measurements
• Develop teams – include primary operators

Case Study: Case IH – Grand Island

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Case Study – Case IH – Grand Island

• Case IH is a global leader in agricultural
equipment. With headquarters in the United
States, Case IH has a network of more than
4,900 dealers and distributors that operates in
over 160 countries.
– Corporate Website

The Challenge: Grand Island Plant

• 2 major product lines and 7 minor products
• Over 200,000 pieces installed daily
• Manufacturing in 4 buildings
• Warehousing 2 miles away
• Varying production shifts
• Suppliers from all over the globe

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The Challenge – complex layout/ pace

Main Spine for Assembly

Feeder Lines
Fabrication Supermarkets
Sub-Areas etc

Weld

Main Paint – 1 of 3
systems

The Challenge – Product & Process

• Major value product – Axial Flow Combine
– 3 major models, 20 model variations, thousands
of option combinations
• Major process flow
– Welding and assembly in multiple buildings using
multiple paint systems. Several lines support
major product with complex movement of parts.

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The Decision
• Product
– Pick high volume model
• AFX High Capacity

• Process
– Pick major component that travels major
processes – fab, weld, paint, assemble, ship
• Grain Tank

The Decision: Components

Component Growth

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The Decision: Path

Main Spine for Assembly

Feeder Lines
Fabrication Supermarkets
Sub-Areas etc

Weld
Main Paint – 1 of 3
systems

Measurements
• Primary measurements taken
– Cycle time : Area lead time : Utilization
– Takt time – different paces due to mixed model vs
dedicated lines
– Inventory : EPE : Changeover time
– Number of shifts/associates

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Current State Map – 2009

Central Planning
6 week Frozen
Weekly requirements
Order sequence
1 yr forecast

Suppliers Customers

MRP

Weekly
Daily
MRP/ leanFlo
leanFlo Build Card/
Line set Sheet

Buffer – 0 to 2 units

Laser Cut Form Weld Paint GT Assembly UMF Line Main/ Trim

2.5 Days 0.5 days 6 days 0.3 days 1 day 3 Days 13.3 days

0.80 hrs 0.03 hrs 0.95 hrs 4.84 hrs 5.06 hrs 3.17 6.01 hrs 20.86 hrs

2009 observation highlights

• High inventory especially pre-assembly areas
• Delays across lines despite Andon system
• Imbalance/overtime /high cycle times
• Excessive transportation
• Complicated electronic signals difficult to
match with physical movement

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Challenges to Future State beyond 09

• Reduce inventory while doubling output
• Balance lines to reduce resource waste/takt
• Improve material delivery flow/reliability
• Link major lines for continuous flow
• Optimize fabrication operations
• Use world class manufacturing (WCM) as
primary driver

Future State Map 2013 - increased vol

Central Planning
6 week Frozen
Weekly requirements
Order sequence
1 yr forecast

Suppliers Customers

Kanban pulls
from WH
MRP

Weekly
Daily
MRP/ leanFlo
leanFlo Build Card/
Line set Sheet

Dynamic SMED on Mixed

Nesting Brakes model GT
Buffer – 0 to 2 units

Laser Cut Form Weld Paint GT Assembly UMF Line Main/ Trim

FIFO

Kanban Sequenced
flow pull from
SM

Reduce
WIP from
Steel Reduced
supplier Implement Fleet
FIFO Reduced
Takt across
2.0 Days 0.5 days 2.5 days 0.1 days 0.5 day assembly 0.3 Days 5.9 days

0.80 hrs 0.03 hrs 0.45 hrs 4.84 hrs 1.87 hrs 1.33 hrs 4.8 hrs 14.12 hrs

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Overall results
• Almost doubled output with same shift plan
• Reduced lead time/inventory by 7.4 days
• Reduced cycle time by 40%
• Reduced assembly takt by 50%
• Millions saved due to improvement activity
• Changed overall culture of the plant

Challenges to the next Future State

• Continue expansion to all major components
• Reduce inventory between weld and fab
• Optimize paint and fabrication operations
• Continue line balancing and reduce cycle time
• Remove buffers, expand continuous flow
• Consistently include all associates in changes

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Workshop
• VSM of a small video game console
– Study current system and improve it
– Increased demand to 100 units per day

Situation at a glance
• Weekly electronic requirements feed
• MRP system to control daily orders
• Plant ships daily to the customer with delays
• Suppliers ship daily to the plant
• High overtime including weekends
• Struggle to properly balance workforce

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Plant Specification – 4 work cells

– Motherboard – C/T - 10 mins, Inv 50 completed,
100 pre-staged boards, 2 associates, 8 hour shift
– Console – C/T - 25 mins, Inv 25 completed, 3
associates, 8 hour shift
– Controller – C/T - 15 mins for controller and 5
mins to install to the body, Inv 25 completed, 2
associates, 8 hour shift
– Test – C/T - 5 mins testing and 5 mins to package,
Inv 75 completed packages, 2 associates, 8 hour
shift

Action Items
• Complete a current state map based on your
plant observations
• Review this map and develop a proposed set
of actions to improve the production system
• Complete a future state map based on your
recommendations

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Current State Map – Video Console

Production Control
Weekly
Customers
Suppliers
100/ Day

Daily
Daily

Daily Requirements

Motherboard Console Controller Test

2 3 2 2 I
I 50 pcs 25 pcs 25 pcs
75 pcs
100 pcs
Cycle Time: 10 mins Cycle Time: 25 mins Cycle Time: cont 15 mins Cycle Time: test – 5 mins

# of Employees: 2 # of Employees: 3 install: 5 mins pack – 5 mins

Shift: 8 hours Shift: 8 hours Total: 20 mins Total – 10 mins

# of Employees: 2 # of Employees: 2

Shift: 8 hours Shift: 8 hours

1 Days 0.5 Days 0.25 Days 0.25 Days 0.75 Days 2.75 Days

10 mins 25 mins 20 mins 10 mins 65 mins

Actions to improve to Future State

• Reduce cycle times towards 4.8 min takt
• Reduce inventory
• Improve pace operation – console assembly
• Improve transportation to customer
• Balance lines to streamline and achieve pull
• Streamline raw material delivery

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Future State Map: Video Console

Production Control
Weekly
Takt Time
8*60100 = 4.8 mins Customers
Suppliers
100/ Day

Vary Change
frequency Daily Requirements trucking Co
to pace

Milk Run
Milk run

Cycle Time Continuous

Share reduction Flow
employees

Motherboard Console Controller Test

2 3 2 FIFO 3 I
50 pcs
Min - 10 pcs Min - 10 pcs 25 pcs
Max – 25 pcs Max – 25 pcs
Add kanban Cycle Time: 10 mins Cycle Time: 20 mins Cycle Time: cont 15 mins Cycle Time: test – 5 mins
triggered
# of Employees: 2 # of Employees: 3 # of Employees: 2 pack – 5 mins
replenishment
Shift: 8 hours Shift: 8 hours Shift: 8 hours install – 5 mins

2 stations # of Employees: 3

Shift: 8 hours

0.5 Days 0.25 Days 0.25 Days 0.25 Days 1.25 Days

10 mins 20 mins 15 mins 15 mins 55 mins

Restrict
Supermarket

Thank You
Christopher Martin
Christopher.martin@cnh.com
(308) 379-8980 or (308) 850-6443

LinkedIn :
http://www.linkedin.com/profile/view?id=121894825

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Survey

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