value stream mapping - oshkosh corporation - wcm...stamping weld weld assemble assemble current...

59
Supply Chain Academy 1 Value Stream Mapping

Upload: others

Post on 25-Jan-2021

7 views

Category:

Documents


0 download

TRANSCRIPT

  • Supply Chain Academy 1

    Value Stream Mapping

  • Supply Chain Academy2

    WCM Supplier Academy – Speaker Introduction

    Mai Krenzke – Senior Principal Engineer Business TransformationOshkosh Corporation

  • Supply Chain Academy

    Continuous Improvement Tools

    – Waste Identification

    – Value Stream Mapping

    – 5S

    – Standardized Work

    – Visual Workplace

    – Continuous & Cellular Flow

    – Takt Time

    Customer Supporting Systems/Tools

    3

  • Supply Chain Academy

    • A visual tool used to understand and communicate the steps to change material and/or information for the purpose of creating a product or service that customers are willing to pay for including:

    – The flow of value adding activities that serves the customer needs

    – The supply-chain from raw materials to consumption

    What is Value Stream Mapping

    4

  • Supply Chain Academy

    • It helps you to visualize more than just the single-process level. You can see the flow.

    • It helps you see more than waste. Mapping helps you to see the sources of waste in your value stream.

    • It provides a common language for talking about a process.

    • It makes decisions about the flow apparent, so you may discuss them.

    • It ties together lean concepts and techniques which helps avoid random application.

    • It shows the linkage between information and material flow.

    • It becomes a blueprint for implementation.

    Why Value Stream Map?

    5

  • Supply Chain Academy

    RawMaterial

    PROCESS

    VALUE STREAM

    FinishedProduct

    PROCESSPROCESS

    Stamping WeldingAssembly

    Cell

    Raw Material to Finished Product

    Research Engineering Production

    VALUE STREAM

    Concept New Product

    Concept to Launch

    Product

    Costing

    Ordering Accounting Payables

    VALUE STREAM

    Product Sale

    Order to Cash

    Three Types of Value Streams

    6

  • Supply Chain Academy

    Some Lessons Learned

    Management must lead the design and introduction of lean value streams

    Techniques System Philosophy

    • Random use of the toolsis not enough.

    • The tools must comprise a system to give customerswhat they want, when they want it, with minimum waste.

    • Focus on flow to create asystem.

    Lean

    Process

    Systems

    Small

    Lots

    Pull

    Systems

    Level

    Scheduling

    Standard

    Operations

    Lead Time

    Reduction

    Error

    Proofing

    P M

    Containerization

    Quick

    Set-up

    Flow

    Layout

    Transportation

    Reduction of

    Variation

    ProcessCapability

    Employee

    Involvement

    W P O

    Value Streams and Mapping

    7

  • Supply Chain Academy

    ManufacturingOffice

    Value Stream Mapping Examples

    8

  • Supply Chain Academy

    • Lays the groundwork for creating a strategic plan

    – Shows us the landscape and helps us see the path we must take to get from point “A” to point “B”

    • Creates a graphic representation of how a business process works

    – Shows how material and/or information is linked from one process step to the next

    • Helps identify improvement opportunities

    – Helps us see the waste and potential root causes

    – Eliminates the non-value added steps

    – Reduces wasted resources

    Benefits of Value Stream Mapping

    9

  • Supply Chain Academy

    • Administrative activities are often a major percentage of the total throughput time

    • Many functions support several services with no clear boundaries and are not well documented

    • Harder to identify customer, product and customer value

    • Waste is much harder to see - more entrenched and hidden

    Going Beyond the Plant Level?

    10

  • Supply Chain Academy

    Identify

    Value Stream

    Current State

    Drawing

    Action Plan

    Future-State

    Drawing

    Design a lean flow

    Identify and resolve gaps

    Specific process / product family

    Value Stream Mapping as a Living Process

    11

    Step

    1

    2 – 3 - 4

    5 – 6 - 7

    8 – 9 – 10

    Understand how the work site currently operates

    Identify improvement opportunities

    Data Collection

    Implement the plan

    Plan how to get there

    Measure the results

  • Supply Chain Academy

    • Define value stream (product/process family)– Choose the right value stream – Identify value stream from the customer end– Value stream should pass through similar processes

    (administrative/manufacturing)

    • Group similar products/processes to determine value streams

    Product Process 1 Process 2 Process 3 Process 4 Process 5 Process 6

    A x x x x

    B x x x

    C x x x x

    D x x x x

    E x x

    F x x x

    Product/ Process Step 1 Step 6Step 5Step 4Step 3Step 2

    Product/Process/Service Identification

    12

    Identify

    Value Stream

  • Supply Chain Academy

    Current State

    Drawing

    Action Plan

    Future-State

    Drawing

    Value Stream Mapping as a Living Process

    13

    Step

    1

    2 – 3 - 4

    5 – 6 - 7

    8 – 9 – 10

    Identify

    Value Stream Specific process / product family

    Understand how the work site currently operates

    Identify improvement opportunities

    Data Collection

  • Supply Chain Academy

    All objectives must be scoped in relation to the company’s strategic plan

    – Pinpoint goals

    • Use value stream mapping as a tool

    Determine Objectives

    14

    Current State

    Drawing

  • Supply Chain Academy

    Think in terms of halves and doubles…if it is something bad—cut it in half; something good double it…

    Improvement initiatives:

    • Safety (e.g., identify at least X safety issues)

    • Quality (e.g., reduce rework from X% to Y%)

    • Productivity (e.g., increase productivity from X% to Y%)

    • Reduce lead time from X weeks to Y weeks

    • Customer development—improve response time from X to Y

    Example Objectives

    15

  • Supply Chain Academy

    Product Family

    Process Data Box

    Data Collection

    16

    Current State

    Drawing

  • Supply Chain Academy

    • Cycle time

    • Wait time

    • First receipt quality

    • Data sources

    • Systems used

    • Equipment

    • Process owner/operator

    • Information/data needed or produced

    Data Collection for Office VSM

    17

    Current State

    Drawing

  • Supply Chain Academy

    • You must understand the current state before you can determine what the future state must look like

    • Focus on the most accurate and useful information

    • Gather “actual” information—do not rely on “standard” data

    • Map only the process, do not be distracted by the exceptions

    – Collect the issues and concerns for addressing later

    • Do not hurry, do it right the first time

    • Draw the first time using Post–Its

    • Expect to make numerous changes

    Draw the Current State Value Stream Map

    18

  • Supply Chain Academy

    I

    CI Starburst (identifies improvement needs)

    Typical Icons for Current State Value Stream Map

    19

    Flow Arrow - indicates Product Flows from one process to another

    Push Arrow - indicates Product is pushed into next process

    Pull Arrow - indicates Process or Customer pulls Product from previous process or Vendor

    Information Flow - indicates flow of information regarding Part #, Quantity, and Delivery Schedule

    Inventory

    Truck Shipment

    Process Data Box

    External Sources(Suppliers, Customers, etc.)

    Electronic Information FlowSupermarket - small Inventory of Product from which the next Process or Customer may Pull

  • Supply Chain Academy

    Takt is:

    • A German word that means “drum beat” or rhythm

    Cycle time is:

    • Length of time required to complete one step or operation in the process

    Remember: Operating time does not include TPM activities, breaks, lunches (unrelieved breaks & lunches), 5S, meeting time, or any time the machine or cell is not operating.

    Takt Time and Cycle Time

    20

    Current State

    Drawing

  • Supply Chain Academy

    Assembly Line:

    • Customer requirements

    100 vehicles/week or 20 vehicles/day

    • Operating Time = 8 hrs/shift

    (less 5S, breaks, lunch, etc.) = 7.25 hrs.

    Accounts Payable:

    • Requirements

    220 invoices/week or 44 invoices/day

    • Operating Time = 8 hrs/shift

    (less 5S, breaks, lunch, etc.) = 7.25 hrs.

    Takt Time Calculation Examples

    Class Exercise

    Takt Time = ( ) X ( )vehicles

    = minutes/vehicle

    Takt Time = ( )X ( )invoices

    = minutes/invoice

    21

    7.25 hrs. 60 mins/hr.20

    21.75

    44

    7.25 hrs. 60 mins/hr.

    9.89

  • Supply Chain Academy

    TAKT = 15 MIN

    1

    910

    18

    9

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    20

    Stamping Weld Weld Assemble Assemble

    Current Cycle Times

    Step 1 Step 3 Step 4 Step 5Step 2

    • Where is the bottleneck?

    • Opportunities for improvement?

    • Sum of the cycle times/Takt = ~ People

    • 47/15 minutes = 3.1 People

    Takt Time Application Example

    22

  • Supply Chain Academy

    • Where can continuous flow be introduced?

    • Conduct a Continuous Improvement Event (CIE) to improve the process

    with a target of 13 minutes/person

    • Move the free resource to value-added tasks

    13 9 130

    2

    4

    6

    8

    10

    12

    14

    16

    18

    20

    Weld Weld / Assemble Assemble

    After CIE Cycle Times

    4

    TAKT = 15 MIN

    Step 1 Step 3Step 2

    Future State Target

    23

  • Supply Chain Academy

    Identify all potential areas for improvement

    • Activities that can be eliminated• Activities that do not add value• High scrap/rework rate

    Current State VSM – Example

    24

    • Long setup/changeover• Excessive hand-offs• Excess inventory• Long wait times

  • Supply Chain Academy

    Scrap

    Manufacturing Process

    Kaizen Lightning

    Burst

    OutsideSource/

    Customer

    Data Box

    Inventory

    I

    o o oTruck

    Shipment

    FinishedGoods to Customer

    Push Arrow

    Supermarket

    Buffer orSafety Stock

    Manual Information Flow

    ElectronicInformation Flow

    Production Kanban

    Withdrawal Kanban

    Signal Kanban

    Kanban Post

    Required Tools

    Value Stream Mapping Exercise

    25

  • Supply Chain Academy

    Materials Supplier

    Customer

    Chassis Body Trim Inspect

    Associates Staff

    Cycle Time Sec

    Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Sec

    Sec Sec

    Sec

    Sec

    SecSecSec

    Transport Time

    Sec

    MRP

    Production

    Control

    Current Condition Value Stream Map

    Queue Sec Queue Sec Queue Sec Queue Sec Queue Sec

    Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Cycle

    Tim

    e (

    se

    c)

    Station5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    55

    60

    65

    Chassis Body Trim Inspect

    TAKT

    NVA

    VA

    NVA +VA = Production Lead Time = Sec

    26

  • Supply Chain Academy

    • Always collect current state information while walking

    along the pathway of material and information flows

    yourself.

    • Begin with a quick overview to identify main processes; then go

    back and gather data.

    • Begin at the customer and work backwards.

    • Do not rely on information and timing you do not

    personally obtain.

    • Don’t map the whole value stream yourself.

    • Always draw by hand, in pencil

    Value Stream Mapping Tips

    27

  • Supply Chain Academy 28

    Process Metrics (CI Specialist Data)

    Ave

    rage

    of

    all

    Ob

    serv

    atio

    ns

    Metrics

    # Safety Incidents 1

    # Defects 4

    Final Ending Inventory for Chassis (from chassis sheet) $450

    Final Ending Inventory for Body (from body sheet) $3,850

    Final Ending Inventory for Trim (from trim sheet) $1,200

    # Unsold (WIP) at Inspect/Ship 2

    Unsold (WIP) Inventory Cost $2,400

    # Units sold at Inspect/Ship 16

    Sold Inventory Cost $19,200

    # Scrap at Inspect/Ship (found at inspect/ship) 4

    Scrap Inventory Cost $4,800

    # Scrap (Re-inspects) (found by customer) 0

    Scrap (Re-inspects) Inventory Cost $0

    Total Inventory Costs $31,900

    # Defective Quads Sold to Customer 0

    Re-inspection Fees (# Defective Quads Sold * $1000) $0

    # Customer Orders Missed 9

    $ Loss for Missed Orders (# Missed Orders * $600) $5,400

    Total Costs $37,300

    # Units Delivered & Accepted 16

    Revenue (# Good Quads Sold * Revenue) $28,800

    Total Profit/Loss (Revenue - Costs) ($8,500)

    On Time Delivery 64%

    Business KPIs

  • Supply Chain Academy

    Current State Mapping Icons

    29

    Outside Source

    Customer

    Step 1: Start closest to the customer and then document every process step upstream (Note cycle time, changeover time, batch size, scrap, etc.)

    Materials Supplier

    Customer

    Chassis

    Staff

    Sec

    Sec

    Sec

    Sec

    Body

    Staff

    Sec

    Sec

    Sec

    Sec

    Trim

    Staff

    Sec

    Sec

    Sec

    Sec

    Inspect

    Staff

    Sec

    Sec

    Sec

    Sec

    ManufacturingProcess

    Data Box

  • Supply Chain Academy

    Current State Mapping Icons

    30

    Outside Source

    CustomerMaterials Supplier

    Customer

    Staff

    22 Sec

    9.6 Sec

    5 Sec

    10 Sec

    Staff

    37 Sec

    9.6 Sec

    10 Sec

    7 Sec

    Staff

    24 Sec

    Sec

    0 Sec

    9 Sec

    1 1 1 1Associates Associates Associates Associates Staff

    Cycle Time Cycle Time Cycle Time Cycle Time Sec

    0Changeover

    Loss Per ItemChangeover

    Loss Per ItemChangeover

    Loss Per ItemChangeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemDowntime

    Loss Per ItemDowntime

    Loss Per ItemDowntime

    Loss Per ItemSec

    2Transport

    TimeTransport

    TimeTransport

    TimeTransport

    TimeSec

    4.8

    8 Changes X 15 seconds per Change / 25 planned units = 4.8 Seconds at Trim

    15

    Average of 3 measurements by the CI Specialist

    • Based on the die roll, you had a 33% chance of downtime at Chassis and Body only. • So, your Mean Time Between Failures was 3 cycles, statistically.• At Body, the duration, or Mean Time To Repair, was 30 seconds. (Sand timer)• 30 seconds / 3 cycles = 10 seconds on average

    OtherOther Other

    Chassis Body Trim Inspect

    Step 1: Start closest to the customer and then document every process step upstream (Note cycle time, changeover time, batch size, scrap, etc.)

  • Supply Chain Academy

    Material MovementVia Push

    Truck Shipment

    Inventory

    Outside Source

    Current State Mapping Icons

    31

    Step 2: Track WIP/Inventory upstream and check actual quantities that are on the shop floor

    Step 3: Identify push & pull material flow

    CustomerMaterials Supplier

    Customer

    Chassis Body Trim Inspect

    1Associates Staff

    22Cycle Time Sec

    10Changeover

    Loss Per ItemSec

    5Downtime

    Loss Per ItemSec

    10Transport

    TimeSec

    45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec

    1Associates Staff

    37Cycle Time Sec

    10Changeover

    Loss Per ItemSec

    10Downtime

    Loss Per ItemSec

    7Transport

    TimeSec

    1Associates Staff

    24Cycle Time Sec

    5Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    9Transport

    TimeSec

    1Associates Staff

    15Cycle Time Sec

    0Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    2Transport

    TimeSec

    • 45 second TAKT time (the customer required a unit every 45 seconds)• Each unit of WIP represents 45 seconds of demand.• 2 units in WIP = 90 seconds worth of sales at Inspect.

  • Supply Chain Academy

    Current State Mapping Icons

    32

    Outside Source

    Customer

    Step 4: Map Information Flow: How does everyone know what to do?

    Materials Supplier

    Customer

    Chassis Body Trim Inspect

    1Associates Staff

    22Cycle Time Sec

    9.6Changeover

    Loss Per ItemSec

    5Downtime

    Loss Per ItemSec

    10Transport

    TimeSec

    MRP

    Production

    Control

    45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec

    1Associates Staff

    37Cycle Time Sec

    9.6Changeover

    Loss Per ItemSec

    10Downtime

    Loss Per ItemSec

    7Transport

    TimeSec

    1Associates Staff

    24Cycle Time Sec

    4.8Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    9Transport

    TimeSec

    1Associates Staff

    15Cycle Time Sec

    0Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    2Transport

    TimeSec

  • Supply Chain Academy

    Current State Mapping Icons

    33

    Step 5: Calculate Cycle vs. Lead time and create the TAKT time chart

    Product Idle Time = 765 Sec

    Total Station Time = 165 Sec

    Product Lead Time = 930 Sec = 15.4 Min

    Materials Supplier

    Customer

    Chassis Body Trim Inspect

    1Associates Staff

    22Cycle Time Sec

    46.6 Sec

    9.6Changeover

    Loss Per ItemSec

    5Downtime

    Loss Per ItemSec

    540 Sec

    63.6 Sec 37.8 Sec

    90 Sec

    17 Sec

    0 Sec90 Sec45 Sec

    10Transport

    TimeSec

    MRP

    ProductionControl

    45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec

    1Associates Staff

    37Cycle Time Sec

    9.6Changeover

    Loss Per ItemSec

    10Downtime

    Loss Per ItemSec

    7Transport

    TimeSec

    1Associates Staff

    24Cycle Time Sec

    4.8Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    9Transport

    TimeSec

    1Associates Staff

    15Cycle Time Sec

    0Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    2Transport

    TimeSec

    Cycle

    Tim

    e (

    sec)

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    55

    60

    65

    Chassis Body Trim Inspect

    TAKT

  • Supply Chain Academy 34

    Product Idle Time = 765 Sec

    Total Station Time = 165 Sec

    Product Lead Time = 930 Sec = 15.4 Min

    Materials Supplier

    Customer

    Chassis Body Trim Inspect

    1Associates Staff

    22Cycle Time Sec

    46.6 Sec

    9.6Changeover

    Loss Per ItemSec

    5Downtime

    Loss Per ItemSec

    540 Sec

    63.6 Sec 37.8 Sec

    90 Sec

    17 Sec

    0 Sec90 Sec45 Sec

    10Transport

    TimeSec

    MRP

    ProductionControl

    45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec

    1Associates Staff

    37Cycle Time Sec

    9.6Changeover

    Loss Per ItemSec

    10Downtime

    Loss Per ItemSec

    7Transport

    TimeSec

    1Associates Staff

    24Cycle Time Sec

    4.8Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    9Transport

    TimeSec

    1Associates Staff

    15Cycle Time Sec

    0Changeover

    Loss Per ItemSec

    0Downtime

    Loss Per ItemSec

    2Transport

    TimeSec

    Cycle

    Tim

    e (

    sec)

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    55

    60

    65

    Chassis Body Trim Inspect

    TAKT

    Where is our bottleneck?

  • Supply Chain Academy

    Current State

    Drawing

    Action Plan

    Future-State

    Drawing

    Design a lean flow

    Identify and resolve gaps

    Specific process / product family

    Value Stream Mapping as a Living Process

    35

    Step

    1

    2 – 3 - 4

    5 – 6 - 7

    8 – 9 – 10

    Understand how the work site currently operates

    Identify improvement opportunities

    Data Collection

    Implement the plan

    Plan how to get there

    Measure the results

    Identify

    Value Stream

  • Supply Chain Academy

    Map the Current State

    Analyze the Current State

    and

    Design the Future State

    Create an Implementation Plan and execute it !

    Admitting

    I

    I

    In

    Hallway

    LEGEND:

    Electronic

    Physical Flow

    Feedback

    Blood Draw X Ray Doctor Review Billing

    Send to Waiting A

    Log Time In

    Record Value

    Draw Blood

    Record Value

    Take X Ray

    Review X Ray

    Review Blood

    Log Time Out

    Record Values

    Retest if Needed

    Clinic

    Supplies

    Syringes

    X Ray

    Film

    Regional Supply

    Manager

    Clinic Manager

    Clinic

    Performance

    Supply

    Requirements

    I

    In

    Hallway

    I

    In

    Hallway

    Low Machine

    Reliability

    RetestsRandomArrivals

    Delivery

    Weekly

    VP Performance

    Clinic

    Performance

    Re Tests

    Waiting Rm B

    Capacity 4 Patients

    Fill Room Next

    Waiting RmA

    Capacity 4 Patients

    Fill Room First

    Stop if “A” is Full

    I

    People

    Waiting

    Direct from A only if B empty

    X Ray Blood Draw

    Record Value

    Take X Ray

    Record Value

    Draw Blood

    Dual PathOverflow to B I

    In

    Hallway

    (avg. wait in “A”)(Transfer A to B)

    (avg. wait in “B”)(process time) (process time)

    (avg. wait)(process time)

    (avg. wait)(review time)

    (avg. wait)(process time)

    TPCT: 423 MinutesUnknown due to extreme

    variability of data

    C/T 10 Minutes

    C/T 12 Minutes

    C/T 12 Minutes C/T 13 Minutes

    C/T 13 Minutes

    NO

    FIFO !

    Lost

    Patients

    C/T 5 Minutes

    C/T 18 Minutes

    10 Min 5 Min 12 Min 13 Min120 Min 40 Min 60 Min 50 Min 90 Min

    5 Min 18 Min

    7+ Hours

    FTQ 50% FTQ 50%

    FTQ 50% FTQ 50%

    Clinic

    Supplies

    Syringes

    X Ray

    Film

    Regional Supply

    Manager

    Clinic Manager

    Clinic

    Performance

    Supply

    Forecast

    Frequent

    Delivery

    VP Performance

    Clinic

    Performance

    Admitting Blood Draw X Ray Doctor Review

    Billing

    Stage for Blood

    Log Time In

    Record Value

    Draw Blood

    Record Value

    Take X Ray

    Review X Ray

    Review Blood

    Compile data from

    patient records

    Log Time OutPull patients to

    Level Schedule

    FIFO

    Retake if Error Retake if Error

    Verify Results Verify Results

    Off-line

    Operation

    FIFO FIFO

    Provide arrival windows for

    patients to minimize waiting

    (process time) (process time) (process time) (review time)

    (minimal wait) (minimal wait) (minimal wait)

    TPCT: 18 MinutesConsiderably reduced

    through improved flow

    LEGEND:

    Electronic

    Physical Flow

    Feedback

    2 Min2.5 Min 2.5 Min 2 Min

    3 Min 3 Min3 Min

    C/T 2 Minutes

    C/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes

    96% Improvement in TPCT

    Action Item Responsible

    Improve X Ray Equipment Reliability Sherry Wilson (Med-Tech)

    Improve Blood Draw Process Vlad

    Technician Training - Verify Test Results Dr. Choi

    Implement Use of Patient Record as Data Log Joe Packer (Billing)

    Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly)

    Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL)

    Develop Level Schedule for Patient Arrival Ed Case (Admitting)

    - - - 2001 - - - - - - 2002 - - -

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

    Value Stream Mapping

    36

  • Supply Chain Academy

    Scrap

    Manufacturing Process

    Kaizen Lightning

    Burst

    OutsideSource/

    Customer

    Data Box

    Inventory

    I

    o o oTruck

    Shipment

    FinishedGoods to Customer

    Push Arrow

    Supermarket

    Buffer orSafety Stock

    Manual Information Flow

    ElectronicInformation Flow

    Production Kanban

    Withdrawal Kanban

    Signal Kanban

    Kanban Post

    Required Tools

    Value Stream Mapping Exercise

    37

  • Supply Chain Academy38

  • Supply Chain Academy

    Round 1 Changeover Round 2 Changeover

    15 seconds30 seconds

    7.5 seconds15 seconds

    Choose one station, based on your Current State VSM, to:

    Cut Changeover by 50%

    Which Station will benefit the most?39

    Chassis

    1Associates Staff

    Cycle Time Sec

    9.6Changeover

    Loss Per ItemSec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Chassis

    1Associates Staff

    Cycle Time Sec

    4.8Changeover

    Loss Per ItemSec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Body

    1Associates Staff

    Cycle Time Sec

    9.6Changeover

    Loss Per ItemSec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Body

    1Associates Staff

    Cycle Time Sec

    4.8Changeover

    Loss Per ItemSec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Trim

    1Associates Staff

    Cycle Time Sec

    4.8Changeover

    Loss Per ItemSec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Trim

    1Associates Staff

    Cycle Time Sec

    2.4Changeover

    Loss Per ItemSec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

  • Supply Chain Academy

    Body Assembly Round 1 Body Assembly Round 2

    Chassis Assembly Round 2

    Trim Assembly Round 2

    Our Process Engineers have used CI Specialists’ data to:

    Rebalance the Line

    Is there a Line Balance issue?

    40

    Chassis

    1Associates Staff

    22Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Chassis

    1Associates Staff

    26Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Body

    1Associates Staff

    37Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Body

    1Associates Staff

    29Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Trim

    1Associates Staff

    24Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

    Trim

    1Associates Staff

    28Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    Transport Time

    Sec

  • Supply Chain Academy

    Chassis Assembly

    Body Assembly Trim Assembly Inspect & Ship

    Our Facilities Engineer has helped us to implement:

    Cellular Manufacturing

    Sketch your new layout on the back of your Future State Map

    41

    Chassis

    1Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    10Transport

    TimeSec

    Chassis

    1Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    2Transport

    TimeSec

    Body

    1Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    7Transport

    TimeSec

    Body

    1Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    2Transport

    TimeSec

    Trim

    1Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    9Transport

    TimeSec

    Trim

    1Associates Staff

    Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    2Transport

    TimeSec

  • Supply Chain Academy

    Is there value in implementing a process where:

    Inspector Rebuilds Defects

    What are the benefits of this change?

    Are there any potential negative affects of this change?

    42

    Inspect

    1Associates Staff

    ?Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    ?Transport

    TimeSec

    Inspect

    1Associates Staff

    15Cycle Time Sec

    Changeover Loss Per Item

    Sec

    Downtime Loss Per Item

    Sec

    2Transport

    TimeSec

  • Supply Chain Academy

    • Production should be scheduled at the pacemaker process

    – Information flow must support this process

    RawMaterial

    PROCESS

    FinishedProduct

    PROCESSPROCESS

    Stamping WeldingAssembly

    Cell

    Production Control

    DailySchedule

    Key Questions to ask: How to schedule production

    43

    In our build-to-order process, where is the schedule really determined?

  • Supply Chain Academy

    Let’s try minimize our WIP by implementing a:

    Production Pull System

    44

  • Supply Chain Academy

    Inspect

    and

    ShipTrim Body Chassis

    Sport

    Utility

    Sport

    Utility

    Sport

    Utility

    Lean Quad Pull System

    Each assembly station will begin with one complete sport assembly and one complete utility assembly

    45

  • Supply Chain Academy

    Inspect and Ship

    1. Inspect and Ship receives a Sport order from the customer

    2. Inspect and Ship pulls the finished Sport model from Trim to fulfill the order

    3. Inspect and Ship delivers the finished Sport model to the Inspect and Ship area

    Inspect

    and

    Ship

    Trim Body Chassis

    Sport

    Utility

    Sport

    Utility

    Sport

    Utility

    1, 2

    3

    46

  • Supply Chain Academy

    Trim Assembly

    1. The empty sport inventory box triggers Trim to pull one Sport WIP from the Body Assembly

    2. Trim delivers the body WIP to the assembly area and applies trim

    3. Trim fills their empty Sport inventory box

    Trim

    Assembly

    Body

    Assembly

    Chassis

    Assembly

    Sport

    Inventory

    Utility

    Inventory

    Sport

    Inventory

    Utility

    Inventory

    Sport

    Inventory

    Utility

    Inventory

    1

    2

    Inspect

    and

    Ship

    3

    47

  • Supply Chain Academy

    Body Assembly

    1. The empty Sport inventory box triggers Body to pull one Sport WIP from the Chassis Assembly

    2. Body delivers the Chassis WIP to the assembly area and applies the body

    3. Body fills their empty Sport inventory box

    Trim

    Assembly

    Body

    Assembly

    Chassis

    Assembly

    Sport

    Inventory

    Utility

    Inventory

    Sport

    Inventory

    Utility

    Inventory

    Sport

    Inventory

    Utility

    Inventory

    2

    Inspect

    and

    Ship

    1

    3

    48

  • Supply Chain Academy

    Chassis Assembly

    1. The empty Sport inventory box triggers Chassis to build one new Sport chassis

    2. Chassis builds a new Sport chassis

    3. Chassis replenishes their Sport inventory box

    Trim

    Assembly

    Body

    Assembly

    Chassis

    Assembly

    Sport

    Inventory

    Utility

    Inventory

    Sport

    Utility

    Sport

    UtilityInspect

    and

    Ship

    1-3

    49

  • Supply Chain Academy

    Current State Work in Process

    50

    Future State Work in Process

  • Supply Chain Academy

    Inbound Storage Observations:

    – Tier 2 supplier consistently delivered material three days early and the facility looks like a warehouse with an assembly operation running through it

    – Excess inventory

    – On-hand obsolete parts means that we sort through inventory to find the right parts

    Line Side Delivery Observations:

    – Unknown usage quantities and usage seams to vary, even though both models seam to use the same components

    – Sometimes there are too many parts lineside (wheels and tire carriers)

    – Sometimes the assembler runs out of parts

    Voice of the Material Handler

    51

  • Supply Chain Academy

    We will implement right-sized material kits:

    Raw Material Pull System52

  • Supply Chain Academy 53

    Single Point Scheduling

    Change Over Reduction

    Pull System

    Line Balance

    Inspector Repairs

    Defects?

    KEEP YOUR CURRENT AND FUTURE STATE VALUE STREAM MAPS. YOU WILL NEED THEM.

    Material Strategy

  • Supply Chain Academy

    Action Plan Components

    • % Status: Update this column to indicate the % complete status of the

    project, round to the nearest 25%

    • 30 Day Focus

    – 3rd tab in Action Plan Template

    – Deep dive into details required for the next 30 day success

    54

  • Supply Chain Academy

    • Implement the plan

    – Work as a team on action items

    – Meet on a regular basis for

    accountability

    • Measure

    – Review expected results

    • Repeat the value stream mapping

    process

    – Monitor new process to achieve

    sustainability

    Measure the Results of the Plan

    55

  • Supply Chain Academy

    Current State

    Drawing

    Action Plan

    Future-State

    Drawing

    Design a lean flow

    Identify and resolve gaps

    Specific process / product family

    Value Stream Mapping as a Living Process

    56

    Step

    1

    2 – 3 - 4

    5 – 6 - 7

    8 – 9 – 10

    Understand how the work site currently operates

    Identify improvement opportunities

    Data Collection

    Implement the plan

    Plan how to get there

    Measure the results

    Identify

    Value Stream

  • Supply Chain Academy

    • VSM is a valuable tool to help see opportunities

    – Helps us to see waste and root causes

    – Helps us to see customer / supplier connections and related flow

    of information and materials

    – Can be used to help define your strategies

    – Can be useful for any process to help better define issues

    • VSM is useful for factory floors, service industries and

    offices

    • VSM is only effective if the results are implemented and

    sustained!

    • Review the value stream map to ensure it’s up-to-date

    Value Stream Mapping Summary

    57

  • Supply Chain Academy

    Authors: Mike Rother and

    John Shock

    Reference Material

    58

  • Supply Chain Academy

    Questions?

    59