creating a value stream plan
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Lean Enterprise Academy www.leanuk.org
David Brunt 5th June 2007
Lean Enterprise Academy Supply Chain Forum
Creating a Value Stream Plan
Lean Enterprise Academy www.leanuk.org
Objectives of Mapping Extended Value Streams
Seeing the Whole Extended Value Stream
Raise consciousness in every firm & function touching the value stream of the enormous waste of time, effort & movement
Typical current state 9 out of 10 steps & 99% of elapsed time are wasted
Raise consciousness in every firm & function of the effect of its actions on every other firm & function touching the value streamLearn how a value stream team with representatives from every firm can envision a series of Future States & an Ideal State for their shared value streamLearn how the team can progressively implement:
A Future State 1 in which smooth, levelled pull & flow are introduced within every facility touching the value streamA Future State 2 in which smooth, levelled pull & frequent replenishment loops are introduced between every facility touching the value stream (eliminating warehousing & cross docking in theprocess)An Ideal State (providing a North Star for collectively steeringtowards the perfect value stream with zero waste) by compressingthe value stream & introducing right-sized technologies
Learn how value stream teams can share costs & gains to create win-win-win outcomes for every value stream participant
Lean Enterprise Academy www.leanuk.org
Your Check List
Is top management willing to lead lean?Is there a common language across the whole organisation for seeing processes and for root cause problem solving? Is there a common way to manage lean projects – and to sustain the results? Is someone responsible for reconfiguring each product value stream through the facility and beyond?Is there an active policy deployment process based on value stream plans to prioritise and resource them?
Lean Enterprise Academy www.leanuk.org
Current State Summary
Quality & Delivery
Demand Amplification
Consumption Map
Geography etc.
Purpose Select Product FamilySupply Chain Network & VS Selection
Alpha MotorsPlatform A
ApexWheels
Beta wipers
EpsilonFuel Pumps
CosmicBrakes
EclipseEngine
Computers
Gamma Stampers
AmpersandMagnets
UtopiaCastings
MichiganSteel
OdysseyFasteners
Smith HeatTreatment
Current State by FacilityPRODN.
CONTROL
Weekly
Schedule
Prod’nPlan
Forecast
Daily Call In
Forecast
Weekly Call
In
Weekly
Suppliers Customer
Mon.+ Wed.
PRESS ASSEMBLY SHIP
I I
C/T = 30 sec.
C/O = 30 min.
3 shifts
2% Scrap
C/T = 90 sec.
C/O = 5 min.
2 shifts
3% Scrap
600 pieces2 Day
300 pieces1 Day
30 sec2 days
90 sec1 day
Total lead time 3 daysVA time 2 mins
LH Steering Bracket
RH Steering Bracket
InstrumentPanel Brace
SeatRail
BumperBrackets
X X XX
X X XX
XXX X
XX
XXX
Prod
ucts
BLUES95%50%
Cumulative % Product RangeCumulative % of Sales
Last 1%
Supply Chain Current State
Lean Enterprise Academy www.leanuk.org
Summary
Supply Chain Ideal StateFuture State by Facility
Quality & Delivery
Demand Amplification
Consumption Map
Geography etc.
Purpose Select Product Family
Supply Chain Network & VS Selection
Alpha MotorsPlatform A
ApexWheels
Beta wipers
EpsilonFuel Pumps
CosmicBrakesEclipseEngine
Computers
Gamma Stampers
AmpersandMagnetsUtopia
Castings
MichiganSteel
OdysseyFasteners
Smith HeatTreatment
Current State by Facility
PRODN. CONTROL We
ekly
Schedule
Prod’nPlan
ForecastDaily
Call In
ForecastWeekly
Call InWeekly
Suppliers Customer
Mon.+ Wed.
PRESS ASSEMBLY SHIPI IC/T = 30 sec.
C/O = 30 min.
3 shifts
2% Scrap
C/T = 90 sec.
C/O = 5 min.
2 shifts
3% Scrap
600 pieces2 Day
300 pieces1 Day
30 sec2 days
90 sec 1 dayTotal lead time 3 daysVA time 2 mins
LH Steering BracketRH Steering BracketInstrument
Panel BraceSeatRailBumper
Brackets
X X XXX X XX
XXX XXXXXXPr
oduc
ts
BLUES95%50%
Cumulative % Product Range
Cumulative % of Sales
Last 1%
Supply Chain Current State
Supply Chain Future State Action Plan
Lean Enterprise Academy www.leanuk.org
What is a Plan?
“The documented results of the planning process”Consists of: who, why, what, where, when, how?
Goals, objectivesDeliverables, tasks, actionsTimingResponsibilities (& roles)MeasuresReview process
Lean Enterprise Academy www.leanuk.org
What is Planning?
“Planning is a process considering”Goals, objectivesFactorsOptionsBarriersDeliverables, tasks, actionsTimingResponsibilities (& roles)Measures
Lean Enterprise Academy www.leanuk.org
What is a Lean Project Plan?
All the aboveA Gantt chart with bookends (goals, deliverables, schedule,review process, responsibilities)
Follows the PDCA processIs a contract - a commitment to actually accomplish something by a specific time
Ref: John Shook: Leadership for Value Stream Management
Lean Enterprise Academy www.leanuk.org
A Format for Planning & proposing - A3
A3 because it’s done on A3 paperOriginally used in Quality circlesPower lies in the process & thinking behind itAn A3 lays out an entire plan (large or small) on one piece of paperIt should be visual & conciseIt should tell a story - upper left to lower right that everyone can understand
Acme Stamping Steering Bracket Value Stream ImprovementBackground
Acme supplies stamped steel steering brackets (LH & RH) to State Street Assembly. The product goes through 5 manufacturing processes & shipping.
The customer uses 18,400 pcs/month & requires daily shipments in pallets of 10 trays of 20 brackets. A pallet is either all RH or LH.
Current SituationLead time for steering bracket from coil steel to shipment = 23.6
days.Of 23.6 days, only 188 seconds are spent making a bracket.Large inventories of material between each process.Long changeover times, downtime in welding.
State StreetAssembly
Michigan Steel Co.
1x daily
I
ProductionControl
DailyOrder
WeeklyFax
6 WeekForecas
t
90/60/30 Day Forecas
t
Weekly Schedule
DailyShipping Schedule
RecommendationsCreate continuous flow through weld & assemblyEstablish TAKT time . Base the pace of work through weld & assembly
on customer demand.Set new weld - assembly cell as pacemaker for entire value stream.Establish EPE_ build schedule for stamping based on actual use of
pacemaker cell & pull steel coils from supplier based on actual usage by stamping.
Improve uptime in weld.Establish material handling routes for frequent withdrawal & delivery.Establish new production instruction system with Levelling Box.
AnalysisEach process operates as isolated islands, disconnected from the
customer.Push system, material builds up between each process.Each process builds according to its own operating constraints
(changeover, downtime etc.)Plans based on 90 & 30 day forecasts from customer. Weekly
schedule for each department. System is frequently overridden to make delivery.Goals
Improve profitability of steering bracket value stream.Reduce lead time - 23.6 days to 4.5 days.Reduce inventories:
Stamping 7.6 days to 1 day.Welding 6.5 days to 0 days.Shipping 4.5 days to 2 days.
ProductionControl
DailyOrde
r
DailyOrder
6 WeekForecas
t
90/60/30 Day
Forecast State StreetAssembly
Michigan Steel Co.
Daily Order
20OXOX
Current State MapFuture State Map
Deliverables Responsible ReviewCCF at pacemakerKaizen each CT to >TTWeld uptime to 100%CO reduction to < TT
Pull at pacemakerFG = 2 daysKBMatl handlingLevelling Box
Pull from StampingWIP = 1 dayCO < 10 min
Pull from supplierInfo flowDaily deliveryRM = 1.5 days
Action Plan
Follow UpReviews & involvement of related departments TBD.Other functions: Production Control Material Handling, Purchasing,
Maintenance, Human Resources, Finance.
Acme Stamping Steering Bracket Value Stream ImprovementBackground
Acme supplies stamped steel steering brackets (LH & RH) to State Street Assembly. The product goes through 5 manufacturing processes & shipping.
The customer uses 18,400 pcs/month & requires daily shipments in pallets of 10 trays of 20 brackets. A pallet is either all RH or LH.
Current SituationLead time for steering bracket from coil steel to shipment = 23.6
days.Of 23.6 days, only 188 seconds are spent making a bracket.Large inventories of material between each process.Long changeover times, downtime in welding.
State StreetAssembly
Michigan Steel Co.
1x daily
I
ProductionControl
DailyOrder
WeeklyFax
6 WeekForecas
t
90/60/30 Day Forecas
t
Weekly Schedule
DailyShipping Schedule
AnalysisEach process operates as isolated islands, disconnected from the
customer.Push system, material builds up between each process.Each process builds according to its own operating constraints
(changeover, downtime etc.)Plans based on 90 & 30 day forecasts from customer. Weekly
schedule for each department. System is frequently overridden to make delivery.Goals
Improve profitability of steering bracket value stream.Reduce lead time - 23.6 days to 4.5 days.Reduce inventories:
Stamping 7.6 days to 1 day.Welding 6.5 days to 0 days.Shipping 4.5 days to 2 days.
RecommendationsCreate continuous flow through weld & assemblyEstablish TAKT time . Base the pace of work through weld & assembly
on customer demand.Set new weld - assembly cell as pacemaker for entire value stream.Establish EPE_ build schedule for stamping based on actual use of
pacemaker cell & pull steel coils from supplier based on actual usage by stamping.
Improve uptime in weld.Establish material handling routes for frequent withdrawal & delivery.Establish new production instruction system with Levelling Box.
Follow UpReviews & involvement of related departments TBD.Other functions: Production Control Material Handling, Purchasing,
Maintenance, Human Resources, Finance.
ProductionControl
DailyOrde
r
DailyOrder
6 WeekForecas
t
90/60/30 Day
Forecast State StreetAssembly
Michigan Steel Co.
Daily Order
20OXOX
Current State MapFuture State Map
Deliverables Responsible ReviewCCF at pacemakerKaizen each CT to >TTWeld uptime to 100%CO reduction to < TT
Pull at pacemakerFG = 2 daysKBMatl handlingLevelling Box
Pull from StampingWIP = 1 dayCO < 10 min
Pull from supplierInfo flowDaily deliveryRM = 1.5 days
Action Plan
Background/current situation
Historical/organisational/ business context
Goal/objectiveThe issue to be
addressed
Analysis/detailed Current StateThe specifics of the issues
FishbonesCauses5 Whys
Requirements, constraints & alternatives
Acme Stamping Steering Bracket Value Stream ImprovementBackground
Acme supplies stamped steel steering brackets (LH & RH) to State Street Assembly. The product goes through 5 manufacturing processes & shipping.
The customer uses 18,400 pcs/month & requires daily shipments in pallets of 10 trays of 20 brackets. A pallet is either all RH or LH.
Current SituationLead time for steering bracket from coil steel to shipment = 23.6
days.Of 23.6 days, only 188 seconds are spent making a bracket.Large inventories of material between each process.Long changeover times, downtime in welding.
State StreetAssembly
Michigan Steel Co.
1x daily
I
ProductionControl
DailyOrder
WeeklyFax
6 WeekForecas
t
90/60/30 Day Forecas
t
Weekly Schedule
DailyShipping Schedule
AnalysisEach process operates as isolated islands, disconnected from the
customer.Push system, material builds up between each process.Each process builds according to its own operating constraints
(changeover, downtime etc.)Plans based on 90 & 30 day forecasts from customer. Weekly
schedule for each department. System is frequently overridden to make delivery.Goals
Improve profitability of steering bracket value stream.Reduce lead time - 23.6 days to 4.5 days.Reduce inventories:
Stamping 7.6 days to 1 day.Welding 6.5 days to 0 days.Shipping 4.5 days to 2 days.
RecommendationsCreate continuous flow through weld & assemblyEstablish TAKT time . Base the pace of work through weld & assembly
on customer demand.Set new weld - assembly cell as pacemaker for entire value stream.Establish EPE_ build schedule for stamping based on actual use of
pacemaker cell & pull steel coils from supplier based on actual usage by stamping.
Improve uptime in weld.Establish material handling routes for frequent withdrawal & delivery.Establish new production instruction system with Levelling Box.
Follow UpReviews & involvement of related departments TBD.Other functions: Production Control Material Handling, Purchasing,
Maintenance, Human Resources, Finance.
ProductionControl
DailyOrde
r
DailyOrder
6 WeekForecas
t
90/60/30 Day
Forecast State StreetAssembly
Michigan Steel Co.
Daily Order
20OXOX
Current State MapFuture State Map
Deliverables Responsible ReviewCCF at pacemakerKaizen each CT to >TTWeld uptime to 100%CO reduction to < TT
Pull at pacemakerFG = 2 daysKBMatl handlingLevelling Box
Pull from StampingWIP = 1 dayCO < 10 min
Pull from supplierInfo flowDaily deliveryRM = 1.5 days
Action Plan
RecommendationsWhat will we do to enact
the Future State
Measures/ReviewHow we will know
if the actions make the planned
difference
Plan/ScheduleWhat to do,
actions, deliverables
Lean Enterprise Academy www.leanuk.org
Manage your plan like a Value Stream
Focus on the timing and deliverables of the plan
Manage the exceptionsAsk “why” things went wrong in order to address root cause
Make sure someone is responsibleWatch that you perform reviews (even when things go wrong)
Project TimingProject Timing Sheet:Project: ofAfter-Sales 1 1
Proposed Start
Actual StartProposed CompletionActual Completion
ReviewProject Owner:
On Target
No Deliverable Metric Resp. Target Date. Reviews
1920 27 5 121369 16 23 3022326 2 9 1619125
Value Stream Map4/2/03DBMap Drawn- Develop C & F State14/2/03DBAction Plan- Identify Loops & Action Plan2
TechnicianHBTakt 3
techs- Develop flow to Takt & 30min cycles3
ST1 car wip- Develop pull system for Techs4STProductivity- Eliminate searching for tools5
23/2/03STProductivity- Eliminate waiting for W/S Control65/5/03JSKProductivity- Eliminate waiting for authority7
Booking & Direct Dialogue23/2/03DBLead Time- Develop pro-active booking process823/2/03DBOn-time Del- Develop a planning board99/3/03JSKOn time del- Develop process to highlight a/w10
Parts5/6/03GHProductivity- Develop pull for parts115/6/03GHProductivity- Pre-pick parts for each job12
Valet10/7/03JWC/T= 20m- Valet to standard cycle time13
Handover/Post-Handover10/7/03HBSpaces- Handover parking for finished cars1410/7/03HBSlots- Allocate handover times1510/7/03HBDebtors- Minimise debtors list16
5/2 5/3
Jan Feb Mar Apr May
3/4 7/5
Dave Johnson
Behind Target
Trouble
Lean Enterprise Academy www.leanuk.org
Ideal State:Value Stream KPI’s
Current State
Future State 1
Future State 2
Ideal State
Total Lead Time Value
% of time VA Steps
%Inventory
TurnsQuality ScreenDelivery Screen
Demand Amp’Index
Product travel distance
2.8days
15.8days
23.9days
44days
0.08%
12 %
5
400
1.5%
8
0.6%
7
0.16%
15%
9
200
27%
8
7
21%
14
50
3
5300
79
2.5
5300
5
4300
1
1
525
Lean Enterprise Academy www.leanuk.org
Make your Actions VisibleGlass Wall Mangement
A document board in a highly visible area
Current & Future State maps
Action Plan with timelines
Basic few metricsVaries from project to project
QDCP often useful as a framework
Other documentsLayouts, communications etc.
Lean Enterprise Academy www.leanuk.org
Using The Scientific Method: Plan, Do, Check, Act (PDCA)
Plan
Do
Act
Check
PlanCommunicate, scope, discuss, set targets & agree the plan
DoCollect & analyse data, carry out the work
Check Are we performing to plan?If not, why not?
Act (Standardise)Standardise to sustain the gains
Lean Enterprise Academy www.leanuk.org
Your Check List
Is top management willing to lead lean?Is there a common language across the whole organisation for seeing processes and for root cause problem solving? Is there a common way to manage lean projects – and to sustain the results? Is someone responsible for reconfiguring each product value stream through the facility and beyond?Is there an active policy deployment process based on value stream plans to prioritise and resource them?
Lean Enterprise Academy www.leanuk.org
David Brunt 5th June 2007
Lean Enterprise Academy Supply Chain Forum
Creating a Value Stream Plan
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