Lean Manufacturing

Chapter 2The Value Stream

"Whenever there is a product for a customer, there is a value stream. The Challenge lies in seeing it”

PHILIP (PHIL) M. CONDITChairman and Chief Executive office

The Boeing Company

"There is only one boss: the customer. And he can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else."

Samuel M. WaltonWal-Mart Stores, Inc.Chairman & Chief Executive Officer

Why Map A Value Stream?

Lean Manufacturing is:the relentless elimination of waste

Waste is using resource……without adding value

Waste is all around us, but it can be very hard to see Value Stream Maps (VSM) help us see waste

Value Streams

A Value Stream is the entire set of activities running from raw material to finished product for a specific product or product family

In a typical enterprise, value streams can intersect with other value streams, branch apart or Y together

Value Stream Maps

Value Stream Maps are powerful visual tools to help see waste and understand the flow of material and information• Especially powerful for illustrating the wastes of Overproduction,

Idle Material & Transportation Value Stream Maps show all actions required to deliver a

product…Value Added…as well as Non-Value Added

Other Benefits Of VSM

Provides a big picture perspective that helps focus on improving the whole process, not just optimizing bits and pieces

Shows the linkage between the information flow and material flow

Helps to see across the functional boundaries over which a product’s value stream flows

Other Uses For VSM

To help understand how your business actually works(you don’t understand the current process if you can’t draw it)

A tool for establishing a vision and implementation plan for a new business or product line

A visual tool and common language for talking to others about your manufacturing process

Mapping Process

Product Family

Current State Drawing

Work Plan & Implementation

Future State Drawing

Understand how the valuecurrently flows

Design a LEAN flow

Plan how to get thereand execute the plan

Define the Value Stream

A Reminder

The point of value stream mapping is not the maps, but to understand the flow of information

and material and see waste

...and then use that understanding and insight to improve your process

IMPLEMENT FUTURE STATE!

Value Stream Mapping

Current State Maps(CSM)

The Current State Map

A pictorial view, drawn with pencil and paper while observing the process on the factory floor, that shows how material and information currently flow

Creates a baseline for future improvements to be measured against

Clarifies understanding of how the current production system actually operates

Example

Material Flow

Information Flow

INVENTORY ICONSWITH PUSH ARROWS

Customer

Start with the Customer

Production Control

MRP

Daily Order

90/60/30 day forecasts

6 week forecast

1x DailyTues. &

Thurs.

500 ft coils

Coils

5 days

I I I I I IStamping

4600 L

2400 R

S. Weld #1

C/O=1 hour

11 1 1

S. Weld #2 Ass’y #1 Ass’y #2

1

Shipping

Staging1100 L

600R

1600 L

850R1200 L

640R

2700 L

1440R

C/T=1 sec

Uptime =85%27,600

sec. avail.

C/T=39 sec

Uptime = 100%27,600

sec. avail.

C/O=10 mC/T=46 sec

Uptime = 80%27,600

sec. avail.

C/O=10 m

C/T=62 sec

Uptime = 100%27,600

sec. avail.

C/O = 0

C/T=40 sec

Uptime = 100%27,600

sec. avail.

C/O = 0

18400 pieces/month

-12000- L

- 6400- R

Tray = 20 pieces

2 shiftsDaily Ship Schedule

Step 7

Weekly ScheduleWeekly Schedule

Weekly Fax

5 days

1 sec

7.6 days

1.8 days

2.7 days

2 days

4.5 days

40 sec62 sec46 sec39 secPLT = 23.6 days

PT = 188 sec.

Acme Steering Bracket Line

3-15-2002 State Street Assembly

Michigan Steel Company

MRP