Total Quality Management – TQMB19-5

Session 03 → Value Stream Mapping (Steps) +

Six Sigma Process (Concept)
Steps for Current State

◼ Start backwards – Document customer information

◼ Document supplier information

◼ Identify Product/Service Family – How?

◼ Identify the main processes
◼ How many process boxes?
◼ Fill in data boxes, draw inventory triangles, and count
inventory
◼ Add a shipping box – Why?

◼ Draw customer/supplier delivery schedules and methods

◼ Establish production control and schedules
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Steps of Current State – Continued

◼ Establish information flow – Both internal and external

◼ How does each process know what to make next?

◼ Identify material flow – Push/Pull/Kanban

◼ Draw production lead time associated with process boxes

◼ These are part of value added timeline
◼ Also called Processing Time
◼ Process Batch versus Transfer Batch

◼ Calculate lead time associated with inventory triangles

◼ These are part of non-value added timeline
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Information for Process Data Box

◼ Cycle Time (C/T)

◼ Change Over time (C/O)
◼ Production batch sizes
◼ Number of product variations
◼ Number of operators
◼ Working time minus breaks (N0 shift)
◼ Process Reliability (Uptime)
◼ Scrap/Rework/Defect rate
◼ No of orders/references (N0 ref)
◼ First Time Through (FTT)
◼ Overall Equipment Effectiveness (OEE)
◼ Every Product Every (EPE)
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VSM Current State – Necessary Inputs

1. Customer symbol and demand information

2. Supplier symbol and supply information
3. Process boxes
4. Inventory triangles with maximum quantities
5. Process data boxes
6. Material flow
◼ Includes transportation relating supplier and customer
7. Information flow
◼ Includes information to supplier and from customer
◼ Frequency of information flow
8. Timeline including value added processing times plus
non-value added inventory days
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Value Stream Mapping symbols –
Material

Process Box External Resources Data Box

Inventory Transportation Push

To client
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Value Stream Mapping symbols –
General

Supermarket Safety Stock Staff Member

Improvement
Disruptions Pull Arrow
Opportunities
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Value Stream Mapping symbols –
Information

Manual Information Electronic Information Work Allocation Work Cell

Withdrawal Kanban Production Kanban Kanban Post Kanban Signal

Sequenced Pull Go see

Load Leveling Database Batching
Ball Scheduling

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Key Future State Questions

◼ Identify
◼ Demand
◼ Takt Time
◼ Competitive Lead Time
◼ Calculate Inventory Days
◼ RM/WIP/FG
◼ Maximum Inventory
◼ Calculate
◼ Current Lead Time
◼ Touch Time or Processing Time
◼ Bottleneck Cycle Time
◼ Is BCT > Takt time?
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Key Future State Questions –
Continued
◼ Who is setting the pace of production?
◼ What is Pitch Time?
◼ Is there Inverse Pitch Time?

◼ Material flow
◼ Where can we use one-piece / continuous flow?
◼ Continuous flow will replace some process boxes in
Future state map
◼ Do we need Cellular Manufacturing?
◼ Where can we use FIFO lanes?
◼ Where do we have to use supermarket (replenishment)
pull systems?
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Key Future State Questions –
Supermarket vs. Inventory
◼ Two major issues relate to problems getting parts to
customer
◼ Customer demand variation
◼ Variation in order frequency and quantity
◼ Manufacturing process variation
◼ Problems within your own process (scrap,
downtime, etc.)
◼ The key is to protect your customer
◼ A finished goods buffer can do that
◼ Supermarket Pull System
◼ Withdrawal/Production Kanban
◼ Where do we need Batch production?
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Key Future State Questions –
Supermarket/ Inventory – Continued
◼ Evaluate following factors
◼ Cycle Time Compatibility
◼ Equipment Uptime/Downtime (remember that
coupling can multiply the effects of downtime)
◼ Equipment Investment
◼ Flexibility
◼ A pull system is needed wherever continuous flow stops
◼ Exception → Use FIFO system
◼ FIFO may work in situations where only inventory quantity
needs to be controlled
◼ Visual quantity control is needed
◼ Without physically counting parts and scheduling
machine operation Dipankar Bose - XLRI
Key Future State Questions –
Continued
◼ Information flow
◼ At what single point in the production chain do we
trigger production?
◼ How much work do we release & take away?
◼ How do we level the production mix?

◼ Supporting improvements
◼ What increment of work will you consistently release
and take away at the pacemaker process?
◼ What process improvements are necessary (e.g.,
uptime, changeover, cycle-time reduction)?

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Future State – Pacemaker

◼ Pacemaker
◼ Try to send the Customer Schedule to only one
Production Process
◼ No supermarket downstream to pacemaker

◼ Why would we want the customer schedule to

◼ Only go to only one point in the production process

◼ How can we flow information so that

◼ One process will make only
◼ What the next process needs
◼ When it needs it
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Pacemaker and Leveling

◼ Leveling
◼ Small Lot Production
◼ Distribute the Production mix of products evenly over
time at the Pacemaker Process
◼ Release and take away only small, consistent increments of
work at the Pacemaker Process
◼ Load Leveling Box – Heijunka
◼ How Pace Withdrawal works?

◼ Develop the ability to Make Every Part Every (EPE) time in

the processes upstream of the pacemaker process
◼ Time → Day > Shift > Pitch > Takt
◼ SMED Dipankar Bose - XLRI
VSM – Disadvantages

◼ Fails to handle multiple products that

◼ Do not have identical maps
◼ Fails to relate
◼ Transportation and Queuing delays/ Changes in
transfer batch sizes due to poor plant layout
◼ Lacks any worthwhile economic measure for “value”
◼ Which makes it similar to the Flow Process Charting
technique used by IE’s
◼ Tends to bias a factory designer to consider only
◼ Continuous flow/ Assembly line layouts/ Kanban-
based Pull scheduling
◼ Suitable mainly for HIGH volume and LOW variety
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VSM – Disadvantages – Continued

◼ Fails to consider the allocations and utilization of an

important resource
◼ Factory floorspace – for WIP storage/ Production
support/ Material handling aisles
◼ Fails to show the impact on WIP, order throughput and
operating expenses of in-efficient material flows in the
facility
◼ Fails to handle complex BOM’s that translate into
◼ Branched and multi-level Operation Process Charts and
Flow Diagrams for the products
◼ Fails to factor queuing delays, multi-order sequencing
rules, capacity constraints, etc. into a map
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VSM – Article 1 – Discussion
Questions
◼ Identify customer types and their demand frequencies
◼ How many scheduling groups are there?
◼ How the data for data boxes were collected?
◼ Why there are two inventory triangles in front of some
processes?
◼ Why there is no RM inventory triangle?
◼ How do you calculate daily average demand?
◼ How do you calculate the timeline?
◼ What are the problems coming from Current State Map?
◼ How much is Takt time?
◼ What are the logics behind choosing various
supermarkets?
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VSM – Article 1 – Discussion
Questions – Continued
◼ What should you do when any supermarket is full?
◼ Why we cannot use continuous flow at cold end?
◼ What is current bottleneck?
◼ Why TM is pacemaker process?
◼ How leveling at pacemaker is done?
◼ How do you calculate Pitch?
◼ How do you prepare Heijunka box?
◼ How Kanban cards move?
◼ How to decide total WIP and average system WIP?

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Article 2 – Discussion Questions
(From General Discussion)
◼ Selection of product family
◼ How to create product mix segmentation using PQ$
analysis?
◼ What is machine-part matrix?
◼ How to calculate Jaccard similarity matrix?
◼ How to use dendrogram to create product cluster?
◼ When Cellular Manufacturing System is beneficial?
◼ What is “external sharing”? Why this is considered
constraint?
◼ How to rearrange machine-part matrix?
◼ What is TBOM?
◼ How to construct main stream future state mapping?
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Article 2 – Discussion Questions –
Continued (From Case Facts)
◼ How to identify critical value stream? What is the meaning
of empty box and dotted box?
◼ How to determine Cycle time and Changeover time?
◼ In the maps how to calculate the VA times?
◼ What were the reasons for inefficiencies in current state?
◼ How to calculate total number of set-ups? Why 6 set-ups
were considered?

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 Assignment 1.2 – Create CSM, Suggest
Improvements and FSM (Handwritten)
A manufacturing company produces three types of products. The company
receives its orders from various customers, twice every week. When the
manufacturer orders raw material, the supplier sends the material to the
manufacturer within 1 day. After receiving the raw material, sample
inspection is done internally, and the material is sent to the raw material
inventory. On an average, 5 days raw material inventory is kept. Then, the
raw material goes through 3 processes A, B and C (in series) which take 15
min, 15 min and 50 min, respectively. After process C, three parallel
machines (D, E and F) are used to produce three final products with cycle
times 70 min, 50 min and 20 min, respectively. 10 days inventory is kept for
each work-in process as well as at warehouse for each final product. After
inspection at warehouse, final product is sent to customer, twice per week.
Any inspection takes negligible time. The system is integrated through ERP
system which links all the inventories and sends production schedule daily at
process D. Lot size is for each final product is 1000 units.
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Six Sigma Quality

◼ The process
◼ Assumption → Normally distributed
◼ Centered between the specification limits
◼ With small variation so that each limit is six standard
deviations from the mean

◼ Needs to be clear and documented

◼ Unit being judged
◼ What constitutes a “defect”
◼ How we calculate “opportunities” for defects

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Natural Process vs. Six Sigma Process

For Natural process (red graph) → USL and LSL ± 3

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Natural Process vs. Six Sigma Process

–6 +6

For Six sigma process (Green graph) → USL and LSL becomes ± 6

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Natural Process vs. Six Sigma Process
1.5 Shift

–6 +6

For Six sigma process (Green graph) → USL and LSL becomes ± 6
With 1.5 shift → 3.4 Defects Per Million Opportunities (DPMO)
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