NE Indiana Lean Network Peak Enterprise Solutions Value Stream - PowerPoint PPT Presentation

NE Indiana Lean Network Peak Enterprise Solutions Value Stream Mapping

2 5/10/2018 B RAD S TAATS S E N I O R C O N S U L T A N T I N D U S T R Y C O N S U L T I N G ▪ Manufacturing, Process and Discreet ▪ ERP Project Management ▪ ▪ Supply Chain Management Mittal Steel: Superintendent of ▪ Materials Management Production Planning & Scheduling & ▪ Lean Manufacturing Project Leader ▪ Leadership Development ▪ Modbar: General Manager ▪ Fox Products: President E D U C A T I O N & C E R T I F I C A T I O N S ▪ Peak Enterprise Solutions: Principal BS, Administrative Management: University of Arkansas ▪ Owner MBA, Operations Management: DePaul University ▪ I N F O R M A T I O N T E C H N O L O G Y ▪ CPIM Certified: APICS ▪ ERP Selection/Implementation ▪ Advisory Board: NE Indiana Lean Network ▪ Business and Process Systems Integration As a broad-based manufacturing and operations professional, Brad has over 30 years experience contributing to performance improvements. 2

Value Stream Mapping ▪ Agenda ▪ The role VSM serves in Lean Thinking ▪ Business issues associated with implementation ▪ Description of VSM concepts ▪ Create a value stream map ▪ Symbols ▪ Current state ▪ Future state 3

Defining Value Stream Mapping What Is A Value Stream All of the actions required to conduct a process from beginning to end with the end being defined as “delivery to the customer”. ▪ Value added ▪ Non-value added ▪ Material flow ▪ Information flow 4

Defining Value Stream Mapping What Is Value Stream Mapping ▪ Looking at the big picture, not just individual processes, and improving the whole ▪ Maps the flow of products through the organization – not departmental flow ▪ Cross functional 5

Defining Value Stream Mapping Why Map the Value Stream ▪ Visualize the whole flow ▪ See the sources of waste ▪ Provide a common picture ▪ Make decisions about the flow apparent ▪ Coordinates lean concepts and techniques ▪ Show links between processing and information ▪ More qualitative than quantitative 6

Creating A Value Stream Map Using The Mapping Tool ▪ Identify product family ▪ Draw current-state ▪ Develop future-state ▪ Identify kaizen events ▪ Create work plans for implementation 7

Creating A Value Stream Map Selecting A Product Family ▪ Focus is on customer needs ▪ Simplifies the mapping process ▪ Walk the process 8

Creating A Value Stream Map Value Stream Mapping – Tips ▪ Begin with a quick walk from beginning to end of the entire value stream ▪ Begin at the end and work to the beginning ▪ Collect information first hand, following the actual material flow ▪ Collect actual times, do not rely on standards ▪ Map the whole stream yourself ▪ Keep it basic and keep it simple 9

Creating A Value Stream Map Defining The Current State ▪ Begin with the customer requirements ▪ Analyze the current production situation ▪ Include material and information flows ▪ Identify multiple flows in the stream ▪ Use a common unit of time ▪ Don’t map every part or every step ▪ Get the data accurate 10

Creating A Value Stream Map Draw the Current State Map ▪ Material flow is drawn left to right ▪ Information flow is drawn right to left ▪ Group continuous flow steps into one process ▪ Use standard symbols / icons ▪ Keep it simple 11

Creating A Value Stream Map Collect Process Data ▪ Cycle time ▪ Changeover time ▪ Uptime w ork time / cycle time ▪ EPE (production batch size) x uptime % ▪ Number of operators = available capacity ▪ Number of product variations ▪ Pack size ▪ Available time ▪ Scrap rate 12

Creating A Value Stream Map Typical Icons to Use Link to Acme Icon Set 13

Creating A Value Stream Map How to Create a Lean Value Stream ▪ Produce to your Takt Time ▪ Available work time / Customer Demand ▪ Develop continuous flow whenever possible ▪ Use supermarkets for upstream processes ▪ Try to schedule only one process ▪ Eliminate over production 14

Creating A Value Stream Map How to Create a Lean Value Stream ▪ Level the production mix ▪ Level the production rate ▪ Create pull systems to be used ▪ Enable quick changeovers ▪ Try to achieve “every part every day” 15

Creating A Value Stream Map Drawing The Future-state Map ▪ Identify what increment of work will be used ▪ Define the pacemaker process ▪ Cycle pacemaker process as close to Takt time as possible ▪ What process improvements need to be made ▪ Work with what you have 16

Achieving Future State Value Stream Plan ▪ What to do by when ▪ Step by step ▪ Measurable goals ▪ Clear checkpoints / real deadlines 17

Achieving Future State Value Stream Improvement Is Management’s Job ▪ Constant efforts to achieve goals ▪ Firm belief that lean principles can succeed ▪ Really learn and live value stream improvement ▪ Set the example ▪ Focus all resources on the operations ▪ Change organization focus ▪ New performance measures 18

Value Stream Mapping ▪ Draw it in Pictures ▪ Talk the Talk and Walk the Walk ▪ Identify the Value Stream ▪ Eliminate the Waste ▪ Keep it Simple 19

Value Stream Mapping – an Exercise Acme Stamping From Learning to See 20

Floor Layout Link to Acme Floor Layout 21

Data Sheet Link to Acme Data Sheet 22

Acme Stamping Current State Map 30/60/90 6 week day forecast forecast Michigan Steel Co. State Street Assembly Production Control Daily Order Daily Fax MRP Whole coils 18400 pieces/month 12000 L 6400 R Tray = 20 pcs Weekly Schedule 2 shifts per day Daily Ship Schedule Tues + Thurs 1x day Shipping Stamping Welding 1 Welding 2 Assembly 1 Assembly 2 (staging) 1 1 1 1 1 5 days 4600 L 1100 L 1600 L 1200 L 2700 L CT = 1 sec 2400 R CT = 39 sec 600 R CT = 46 sec 850 R CT = 62 sec 640 R CT = 40 sec 1440 R CO = 60 CO = 10 min CO = 10 min CO = 0 CO = 0 UP = 85% UP = 100% UP = 80% UP = 100% UP = 100% 2 shifts 2 shifts 2 shifts 2 shifts 2 shifts Avail = 460 min Avail = 460 min Avail = 460 min Avail = 460 min Avail = 460 min 27600 secs 27600 secs 27600 secs 27600 secs 27600 secs 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days Production Lead Time = 23.6 days 1 sec 39 secs 46 secs 62 sec 40 secs Process time = 188 secs

Future State Questions ▪ What is the Takt Time? ▪ Available work time / Customer Demand 28,800 – 1,200 = 27,500 secs per shift 460 units per shift Takt Time = 50 seconds ▪ What supermarkets can be used? ▪ How to make continuous flow? ▪ What is the pacemaker operation ▪ How to level the product mix? ▪ What process improvements area required? 24 24

Acme Stamping Future State Map 30/60/90 6 week day forecast forecast Michigan Steel Co. Production Control State Street Assembly Daily Daily Order MRP Order Whole coils 18400 pieces/month 12000 L 6400 R Tray = 20 pcs Daily 2 shifts per day Orders 1 coil 1 coil Daily 1x day 20 pcs 1 bin 20 pcs Shipping Stamping Welding / (staging) Assembly 1.5 days 1.5 days 2 days Takt Time – secs CT = 1 sec CT = 55 sec x 3 CO = 60 CO = 0 min UP = 85% UP = 100% 2 shifts 2 shifts Avail = 460 min Avail = 460 min 27600 secs 27600 secs 1.5 days 2 days Production Lead Time = 5 days 1.5 days 1 sec 165 secs Process time = 166 secs

And You……………? Examples of what you have seen? 26 26

Thank You!!