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Value Stream

Mapping
Case Study
TOTAL VALUE STREAM

SUPPLIERS PLANT OR COMPANY CUSTOMER TO END USER


Agenda
⚫ Understanding “Value Stream Mapping”
⚫ Material and Information Flow
⚫ Drawing the Current State Map
⚫ Using the Mapping Tool
⚫ Identifying the MUDA
⚫ Guidelines for eliminating MUDA
⚫ Drawing Future State Map

2
Value Stream
A Value Stream is all the actions (both value added
and non-value added) that occur to a product
beginning with its inception(at design) through to
shipment to the customer.

Requirements Design Raw Materials Parts Manufacturing

Assembly Plants Distribution Customer


3
Components of Flow Kaizen
• Specify Value from the end customer’s
Value perspective.

Value Stream • Identify the Value Stream

• Make the Product/Service Flow through


Flow the Value Stream.

• So that customer can Pull from the


Pull producer.

Perfection • Constantly pursue Perfection.

4
Value
Specify Value from the end customer’s perspective

Define Understand
Define Value
Customer unmet needs
Ask how
Quality, your current
clearly
schedule/ processes
understand
Cycle Time,
who the dissatisfy
target cost
customer is. your
etc.
customers

5
Value Stream

Understand and Map the Current


Steps
Process Flow
• Sequence of Major Steps

Material Flow
• Movement of things (material/document etc…) on which Value to
be added

Information Flow
• Information about quantity to be produced/ delivered
• Work Scheduling

6
Flow
Understand the Flow and Blockage

Flow should not be interrupted at any point from the


beginning to delivery of product/ service

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Flow
Line-up all the steps that truly create value
so they occur in rapid sequence;
▪ Challenge every step: Why is this necessary?.
▪ Eliminate / Minimize NVA activities.
▪ Process, in direct proportion to demand (need).
▪ Make every process:
⚫ Capable (No Defect)
⚫ Available (No down time)
⚫ Adequate, with capacity (to meet demand- Takt time)
⚫ Efficient (No NVAs)

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Pull: Remove Blockage

Customer should Pull value through the Value Stream

Through Lead Time Reduction & correct value


specification,
⚫ Let customers get
⚫ exactly what they want &

⚫ exactly when they want.

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Understanding Value Streams
The set of all specific actions required to bring a
specific product through the three critical management
tasks of any business.

1. Problem Solving (e.g. Product and process Design &


Development)
2. Information Management (e.g. order processing and
other non production activities.)
3. Physical Transformation (e.g. converting raw
material to finished goods)

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Understanding Value Streams
Concept to Launch
VALUE STREAM Office Value Stream
Research Engineering Production

Concept New Product


Raw Material to Finished Product
VALUE STREAM Production
Value Stream
PROCESS PROCESS PROCESS

Gamma Welding Assembly


Cell

Raw Finished
Material Products
Order to Cash
VALUE STREAM

Office Value Stream Ordering Accounting Payables

Product Costing Product Sale

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Understanding Value Streams

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Understanding Value Streams
❑ A Value Stream perspective implies a big picture and
not just individual processes and involves improving
the entire working of the organization
❑ This requires to follow the Value Stream across many
firms and even more facility
❑ This is very complex and to avoid this, we follow Door-
-To-Door Production Flow in the manufacturing plant
consisting of raw material to finish stage activities

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Door-To-Door Production Flow

Typically we examine the value stream from raw


materials to finished goods within a plant.

TOTAL VALUE STREAM

SUPPLIERS PLANT OR COMPANY CUSTOMER TO END USER

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Door-To-Door Production Flow

Typically we examine the value stream from raw


materials to finished goods within a plant.

VALUE STREAM
PROCESS
PROCESS PROCESS
Stamping Welding
Assembly
Cell

Raw Finished
Material Product

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Why do Value Stream Mapping?
It provides the means to see the material and information
flows together.
It helps you see more than waste. Mapping helps you
see the sources of waste in your value stream.
It provides a common language for talking about
manufacturing system.
It forms the basis of an implementation plan.
Support the prioritization of continuous improvement
(Kaizen) activities at both the value stream and plant
levels.

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Material and Information Flow

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Types of Flow in Manufacturing

3 types of flow are identified in manufacturing


- the flows of Material & Information
⚫ Material Flow is the movement of material
through the factory.
⚫ Information Flow tells each process what to
make or do next.
⚫ Operations Flow is flow of equipment and
people in time and space

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Value Stream Mapping
Value Stream Mapping (VSM) is a pencil and paper tool that
helps you to see and understand the flow of material and
information as a product makes its way through the value
stream. Customer

Xpcs/ month
Std Pack Qty
Steel Supplier PC & L # Shifts
Level Box

DA1
Daily DA2
DA3
6 x / Day

Gamma Welding Assembly Finished Goods

Layout

3 Shifts 3 Shifts 3 Shifts # Material Handlers


TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts
C/O Time = C/O Time = C/O Time = 0 Overtime
DT = DT = DT =
Scrap = Scrap / Rework= Scrap / Rework =
WIP = Small Lot # Operators
WIP = WIP =

Inv.Time ? days ? days ? days ? days


? days ? days TPc/t = ?
Proc.Time ? days

Future State Material, Information and Process Flows


with total Product Cycle Time
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Value Stream Mapping

Information

PROCESS FLOW

Material

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Lean Journey

Lesser Waste
New
PERFECTION Waste

Less Waste
identified!
New
Waste
Identified

Future State

Action
Plan
Waste

Current State

 Action
Original State Plan

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The Process
Map

nt
e me
Customer

Analyz
MRP MSS
X pcs/month

Map the Current State


Std. Pack Qty.
Steel PC & L

l
Supplier # shifts

Imp
Weekly Build Schedule
Daily Ship
Schedule

e
Tues. & Fri.

# times/day

I Gamma Welding Assembly Finished Goods


Steel
I I I
Pin
# pcs
Layout Layout
# days
or shifts

TAKT = TAKT = TAKT = # Shifts =

2 Shifts # Operators Cycle Time = Overtime =


Improve
Changeover Time=4 hr Cycle Time = WIP =

Downtime Scrap/Rework DT, Scrap = 10%


Rework

2 Presses Downtime = 20% Changeover Time = Customer


Cycle Time = WIP = WIP = X pcs / month
WIP = Std Pack Qty
Uptime Scrap
Steel Supplier PC & L # Shifts
Change
Over
Level Box
Inventory Time ? days ? days ? days ? days TPc/t = ? DA1
Processing Time ? days ? days ? days Daily DA2
DA3
6 x / Day

Gamma Welding Assembly Finished Goods

Layout

3 Shifts 3 Shifts 3 Shifts # Material Handlers


TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts
C/O Time = C/O Time = C/O Time = 0 Overtime

Analyze the Current State DT =


Scrap =
WIP =
DT =
Scrap / Rework=
Small Lot
DT =
Scrap / Rework =
# Operators
WIP = WIP =

and Inv.Time
Proc.Time
? days
? days
? days
? days
? days
? days
? days
TPc/t = ?

Design the Future State Activity


1999 2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Establish TAKT & Flow in Tank Ass'y
Gamma Changeover Reduction
Reduce Gamma Buffer
Create an implementation plan and Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y

execute it ! Pull To Sender Ass'y

Training

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Map the Current State

Map
nt

Analyz
e me
l
Imp

Improve

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A few Mapping Tips

⚫ Always collect current-state


information while walking along the
actual pathways of material and
information flows yourself.
⚫ Begin with a quick walk along the
entire door-to-door value stream.
⚫ Begin at the shipping end and work
upstream.
⚫ Bring your stopwatch and do not rely
on standard times or information that
you do not personally obtain.
⚫ Map the whole value stream yourself.
⚫ Always draw by hand in pencil.

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Mapping Method

Follow a product’s production path from customer to


supplier.
Carefully draw a visual representation of every
process in the material and information flow –
Current State Map.
Then ask a set of key questions and draw a Future
State Map of how value should flow.

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Using the Mapping Tool
Initial Value Stream Mapping Steps
Product Family

Current-State
Drawing

Future-State
Drawing

work plan and


implementation

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VSM Common Icons
(Shall be discussed in subsequent slides)

Process C/T=45 sec.


XYZ C/O=30 min. I
Corporation 3 Shifts. 300 pieces
2% Scrap 1 day
Supplier/ Process
Customer Box Data Box Inventory Supermarket

Mon
+ Wed
FIFO

Shipment Push Physical Finished Goods First-In-First-Out


Pull to Customer

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Current State Map

Step 1: Select a Product Family


Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Step 5: Map the Material Flow
Step 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time

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Step 1: Select a Product Family
What is a Product Family?
⚫ Family: a group of products/ services that use
the same or similar processing steps and
equipment within the selected process
⚫ Product Family Matrix: the tool for analyzing
product flow and identifying product families
Product Families are the most efficient way of
organizing your Value Stream Maps

Inputs Outputs

Our Site

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Creating a Product Family Matrix
◼ List process steps on top Steps

◼List products on left


X X X X X
X X X
X X X
X X X X X
X X X
X X X X

Tests X X X
X X X
X X X

◼Identify steps required for X X X X

each product by placing an X X X X


X X X
in the box X X X

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Product Family Matrix with Post-Its

Process C

Process D
Process B

Process E
Process A

Process F
Product 1 X X X X

Product 2 X X X X

Product 3 X X X X X

Product 4 X X X

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Current State Map

The
Way it
is Today

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Step 2: Form a Team

Select a cross-functional team

Select team members who are familiar with the


product

Ensure that team members are trained in the use


of VSM

Designate a Value Stream Manager


THIS IS CRITICAL

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Who is responsible for the Value Stream?

PROCESS 1 PROCESS 2 PROCESS 3 Customer

The Value Stream Manager!

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Data Collection
Data To Collect
Shipping/Receiving Work-in-process
schedules inventory
Pack sizes at each Overtime per week
process
Demand rates by Process cycle times
process (Takt Time)
Number of product
Working hours and breaks variations at each step
Scrap Batch (lot) sizes
Inventory Points
(location & size) Rework Changeover times
How Operations are Changeover
Downtime
scheduled frequencies
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Step 3: Understand Customer Demand

Mapping starts with the customer requirements.


Represent the customer’s assembly plant with a factory
icon, placed in the upper right-hand portion of the map.
Underneath this icon, draw a data box recording the
requirements of the customer.

39
VSM Icon : Factory Icon

ACME Stamping

Suppliers
Customers
Factory Icon Ext. Job Shops

40
VSM Icon: Data Box
Data Box

C/T = 45 sec Used to record information concerning


A manufacturing process, department,
customer, etc.
C/O = 30 min

3 Shifts

Scrap = 2% Open at Bottom


For Additional
Uptime = 98% Data

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Step 3: Understand Customer Demand
State Street
Assembly

18400pcs/mo
- 12,000 “A”
- 6,400 “B”

State Street Tray=20 pcs


2 shifts
Assembly

Customer

State Street Assembly operates two shifts using 18400


steering brackets per month (12000 LH and 6000 RH

First View of Current State Map

42
Step 4: Map the Process Flow

Name of the Manufacturing


Process

Process

No. of Operators
2

Symbol for Operator

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Step 4: Map the Process Flow

Assy. Cell
“U-Cell” with
Three Operators

One process box equals an area of flow. All processes should be


Labeled.

44
Step 4: Map the Process Flow

PC&L
Department runs
MRP Software
For Material Planning

MRP

Also used for departments such as Production Control, sales & marketing etc.

45
Step 4: Map the Process Flow

⚫ Draw the basic production processes by using a


process box.
⚫ The process boxes must be arranged in the sequence
of their occurrence.
⚫ Draw the data box for each production process
recording the cycle time, changeover time, reliability,
available work time, etc. for each individual process.
⚫ Use one process box icon to indicate one area of
material flow

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Step 4: Map the Process Flow

⚫ Draw material flow from left to right on the bottom half


of the Map in the order of processing steps
⚫ Draw data box under each process box and record the
following:
⚫ Cycle Time (C/T)
⚫ Changeover Time (C/O)
⚫ Number of People required to operate the process
⚫ Available working time
⚫ Machine Up Time
⚫ Amount of Inventory at each location
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Step 4: Map the Process Flow
State Street
Assembly

PROCESS 1
18400pcs/mo
- 12,000 “A”
- 6,400 “B”

Tray=20 pcs
1 2 shifts

Manufacturing Process

PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING

Staging
1 1 1 1
1

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Step 4: Map the Process Flow
State Street
Assembly

C/T = 1 sec
C/O = 1 hr 18400pcs/mo
- 12,000 “A”
- 6,400 “B”
Uptime=80% Tray=20 pcs

3 Shifts 2 shifts

Scrap

Data Box for


the Process
PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING

Staging
1 1 1 1
1

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.2% Scrap – 3%
EPE=2 weeks 2 shifts 2 shifts 2 shifts 2 shifts

49
Step 5: Map the Material Flow

⚫ Material Flow is drawn from left to right on the


bottom half of the map in the order of
processing steps, not according to the
physical layout of the plant.

50
Inventory

Count and time should be


Noted.

330 pieces
1 Day

51
Truck Shipment

Note frequency of shipments.

Mon + Wed

52
Material that is produced and moved
Movement of production forward before the next process needs
Material by PUSH it; usually based on a schedule.

53
Movement of finished
Goods to the customer

54
Step 5: Map the Material Flow State Street
Assembly

18400pcs/mo
I - 12,000 “A”
- 6,400 “B”

4200 A
Tray=20 pcs
2 shifts

2300 B
Inventory Triangle showing the
amount of inventory

PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING


I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.2% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

55
Step 5: Map the Material Flow State Street
Assembly

18400pcs/mo
- 12,000 “A”
- 6,400 “B”

PUSH Tray=20 pcs


2 shifts

Arrow

I
Sheets
5 days

PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING


I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.2% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

56
Craig Steels
Company
Step 5: Map the Material Flow State Street
Assembly

18400pcs/mo
- 12,000 “A”
- 6,400 “B”

Tray=20 pcs
Craig Steels 2 shifts

Company

Outside Source - Supplier


I
Sheets
5 days

PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING


I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.2% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

57
Craig Steels
Company
Step 5: Map the Material Flow
State Street
Assembly

50 sheet stack

18400pcs/mo
- 12,000 “A”
- 6,400 “B”
50 sheet stack
Mon + Tray=20 pcs
Wed 2 shifts

Data Box for Supplier


indicating pack size
1 X daily

I
Sheets
5 days

PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING


I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.2% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

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Step 6: Map the Information Flow

⚫ The information flow is drawn from right to left in


the top half of the map.

59
Production Control

Craig Steels
Company MRP State Street
Assembly

50 sheet stack

18400pcs/mo
- 12,000 “A”
- 6,400 “B”
Prod Ctrl Tray=20 pcs
Mon +
Wed 2 shifts

MRP

1 X daily

I
Step 6: Map the Information Flow
sheets
5 days
PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING
I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.2% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

60
Production Control 30 day
Forecast
Craig Steels Weekly State Street
Company Fax MRP Daily Assembly
Order

50 sheet stack
30 day 18400pcs/mo
Forecast - 12,000 “A”
- 6,400 “B”

Tray=20 pcs
Mon + Daily 2 shifts
Wed
Order

Weekly
Fax
1 X daily

I
Step 6: Map the Information Flow
sheets
5 days
PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING
I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.2% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

61
Production Control 30 day
Forecast
Craig Steels Weekly State Street
Company Fax MRP Daily Assembly
Order

50 sheet stack
18400pcs/mo
- 12,000 “A”
- 6,400 “B”
Twice a week scheduling
Tray=20 pcs
Mon + 2 shifts
Wed

Daily ship
schedule
1 X daily

I
Step 6: Map the Information Flow
sheets
5 days
PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING
I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95 Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.5% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

62
Step 7: Calculate Total Product Cycle Time

⚫ Draw a timeline under the process boxes and


inventory triangles to compile the production lead
time.
⚫ Production lead time is the time it takes one part to
make its way through the shop floor, beginning with
arrival as raw material through to shipment to the
customer.
⚫ Next, add up only the value-adding (processing)
times for each process.
⚫ Compare the value added to total lead time.

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Cycle Time and Value Added Time
Cycle Time (C/T)
Cycle Time (C/T)
Time it takes an operator to go
through all of their work
elements before repeating
them.

VA Time
Value Added Time (VA)
Time of those work elements that
actually transform the product in a
way that the customer is willing to
pay for.
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Total Product Lead Time
Lead Time
Lead Time (L/T) The
time it takes one piece to move all the
way through a process or a value
stream, from start to finish.

or

Usually : VA < C/T < L/T

65
Production Control 30 day
Forecast
Craig Steels
Weekly State Street
Company Fax MRP Daily Assembly
Order

50 sheet stack
18400pcs/mo
- 12,000 “A”
- 6,400 “B”
Twice a Week Scheduling
Tray=20 pcs
Mon + 2 shifts
Wed

Daily ship
schedule
1 X daily

I
sheets
5 days
PROCESS 1 PROCESS 2 PROCESS 3 PROCESS 4 PROCESS 5 SHIPPING
I I I I I Staging
4200 A 1 1050 A 1 1400 A 1 1000 A 1 2400 A
1
2300 B 550 B 850 B 625 B 1100 B

C/T = 1 sec C/T =24 sec C/T =31 sec C/T =52 sec C/T=25 sec
C/O = 1 hr C/O =15 min C/O =10 min C/O = 0 C/O = 0
Uptime=80% Uptime=100 Uptime=85% Uptime=95% Uptime=100
Scrap – 1% Scrap – 2.5% Scrap – 4% Scrap – 3.5% Scrap – 3%
2 shifts 2 shifts 2 shifts 2 shifts

Production Lead
5 days Time = 26 days
8.8 days 2.2 days 3 days 2.2 day 4.8 days
1 second 24 seconds 31 seconds 52 seconds 25 seconds
Processing Time
66sec
= 133
Step 7: Calculate Total Product Cycle Time

⚫ As seen, the total production lead time is 21 days.

⚫ The actual processing time is only 133 seconds.

67
Eliminating MUDA

68
Eliminating MUDA & Guidelines for
Improvement
⚫ Reducing Overproduction
⚫ This is the fundamental problem of mass production and
each process operate as an isolated island
⚫ Producing and pushing products forward against schedule
received from PPC
⚫ Defects remain hidden in the access inventory until the
down stream process finally uses the parts and discovers
the problem
⚫ A result of overproduction is that while the value added time
for producing one part is very short, the total time that the
product spends going through the plant is very long (Long
Lead Time)

69
Overproduction

Input Output

I
Inventory

To Make
Input = Output
Stop Overproduction
By Linking Input to Output

70
Overproduction

71
Eliminating MUDA & Guidelines for
Improvement
⚫ Produce to your Takt Time
⚫ Takt Time is how often you should produce one part or
product to meet customer requirements (based on sale)
⚫ Synchronize your pace of production with takt time specially
at pacemaker process.
⚫ This requires
⚫ Elimination of causes of downtime
⚫ Provide past response to problem
⚫ Eliminate changeover in down stream processes

72
Eliminating MUDA & Guidelines for
Improvement
⚫ Develop Continuous Flow wherever possible
⚫ Continuous flow refers to producing one piece at a time with
each item passed immediately from one process step to
next without any inventory buildup. This is the most efficient
way to produce. When introducing continuous flow in the
Future State Map combine two or more boxes into one

73
Eliminating MUDA & Guidelines for
Improvement
Develop Continuous Flow

74
Eliminating MUDA & Guidelines for
Improvement
⚫ Use Supermarket to Control Production
⚫ Wherever required

75
Additional Mapping Icons

Kanban Kanban
Supermarket
Path Post

Signal Kanban
Kanban arriving First-In
in batches First-Out
Flow
Withdrawal
Physical
Kanban
Pull

Production Process
Leveling Kaizen
Kanban

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Eliminating MUDA & Guidelines for
Improvement
⚫ Send the Customer Schedule to only one Production
Process
⚫ By using Supermarket Pull System, the production schedule
will have to be provided only at one point in door-to-door
operation because controlling production at one point sets
the pace for all the upstream processes.
⚫ This point is pacemaker process.
⚫ Materials transferred from the pacemaker process down
stream to finish goods needs to occur as flow (no
supermarket or pulls down stream of pacemaker process)

77
Future State Map
Map

nt

Analyz
e me
l
Imp

e
Improve

78
Design Future State

Purpose
Define how the plant will operate in the future
Serve as the blueprint for implementation

Without it, the Current State Map


is nothing more than wallpaper !

79
Future State Map

A simple way to
approach the Future
State Map is to begin by
modifying the Current
State Map.

80
Key Questions for the Future State

1. What is your Takt Time?


2. Will you build to a finished goods supermarket from which the
customer pulls, or directly to shipping?
3. Where can you use continuous flow processing?
4. Where will you need to use supermarket pull systems in order to
control production of upstream processes?
5. At what single point in the production chain (pacemaker process)
will you schedule the production?
6. How will you level the production mix at the pacemaker process?
7. How will you level the production volume at the pacemaker
process?
8. What process improvements will be necessary?

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The Future State Questions

1. What does the customer really need?

Tak t Time = E ffect i v e w o rk i n g t i me


C u s t o mer R eq u i remen t
Example:

In a single shift the organization can receive 46 orders.


Order entry personnel work an 8-hour shift, with 30 min for lunch and two 10
min breaks. Therefore, effective working time per shift is 460 min

Tak t Time = 4 6 0 mi n s p er s h i ft
4 6 o rd ers p er s h i ft = 1 0 mins
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Drawing The Future State Map

Q1:What is Takt Time for the chosen product family?


Available Working Time:
= (8 X 60 X 60 ) sec – (2 X 10 X 60) sec
= 27,600 seconds per shift.
Takt Time = Available Working Time
Customer Demand
= (27,600)sec/504 units per shift
= 55 seconds

83
Drawing The Future State Map

2. Identify Bottleneck Process

The bottleneck process is the operation with the longest cycle time.

In the example, this is machining at 44 seconds.

The bottleneck is important because it:

•Determines total system output.

•Becomes the primary scheduling point

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ABC Gamma current cycle times

Takt Time
55 sec.
44s
Machining 40s. 30s.
10s.
5s.
Honning

Package
Inspect
Deburr

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3. Identify Lot Sizing / Setup Opportunities

⚫ Present lot size = 1000 pieces = 2 day's


production.
⚫ This requires at least 3-6 days finished goods

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3. Identify Lot Sizing / Setup Opportunities

⚫ Option 1: Simply Cut lot size.


⚫ Results faster response but additional setup time in
machining would use available time. Machining could not
meet the average customer requirements.
⚫ Option 2: Setup reduction to 20-30 minutes
⚫ a batch size of 500, or even 250 is feasible.
⚫ The mapping team established this as a goal, noted
by a Kaizen Burst.

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4. Identify Potential Workcells

• Machining and honing operations are closely balanced.

• cycle times for clean/deburr, inspection and packaging are quite short
in comparison.

• It appears that three operators can run the cell. This is not a precise
calculation. It only considers present cycle times and ignores setup.

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5. Establish Scheduling Methods

• Kanban and direct links now schedule all operations


short term.

• Both the workcell and the supplier, however,


need forecasts to plan staffing and possible
changes in inventory levels.

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6. Calculate Lead and Cycle Time

The final step in the Future State Map is to


complete the timeline at bottom, and
Calculate
Lead Time, Cycle Time and Work Time.

90
Drawing The Future State Map

91
Drawing The Future State Map

FVSM

CVSM

92

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