quality in the triangle 2007. welcome! “value stream mapping” presenter : pauline campbell may...
TRANSCRIPT
QUALITY IN THE
TRIANGLE 2007
Welcome!
“Value Stream Mapping”
Presenter: Pauline Campbell
May 22, 2007
Logistics
• Starting/Ending Time
• Presentation
• Questions/Answers
Objectives
To use “Value Stream Mapping” to identify waste and areas of improvement in any process and apply Lean/World Class Manufacturing tools to eliminate the waste and improve the process.
• Jobs
• Profits
• Customer Satisfaction
• Teamwork - KEY
The Global Economy Business Model
• What are Value Streams?
• Origins of VSM
• Identifying the Value Streams
• Value Stream Mapping
• The Current State
• The Future State
• Implementing Change
• Roadblocks
Contents
What Are Value Streams?
A Value Stream is the set of all actions (both value added and non value added) required to bring a specific product or service from raw material through to the customer.
Types of Value Streams“Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it.”
• 3 enterprise value streams:
– Raw Materials to Customer – Manufacturing
– Concept to Launch – Engineering
– Order to Cash - Administrative Functions
Origins of VSM
Henry Ford is credited with introducing process mapping as early as the 1920’s to graphically display all of the things happening in a series of operations.
The Japanese, and Toyota in particular, are credited with refining and perfecting Value Stream Mapping, which they also refer to as “material and information flow maps.”
Identifying the Value Stream
• The starting point is to learn to distinguish value creation from waste in your whole value stream
• By putting on waste glasses!
• By choosing a product family
• By assembling the team and taking a walk together up the value stream
• And drawing a map of what you find!
Identifying the Value Stream
process level
single plant(door to door)
multiple plants
across companies
Start Here
Value Stream Improvement vs. Process Improvement
Value Stream Improvement vs. Process Improvement
RawMaterial
Finished Product
Stamping
Process
Welding
Process
AssemblyCell
ProcessCustomer
Value Stream
What is Value Stream Mapping?
• A method of creating a “one page picture” of all processes from the time a customer places an order until the customer has received the product
• A visual representation of the flow of material and information across all of the processes - both value adding and non-value adding
Understanding how things currently operate. Our Baseline!
Product/Service “Family”
plan and implementation
Designing a lean flow. Our Vision!
current state drawing
future state drawing
The goal of mapping!
Using the Value Stream Mapping Tool
Value Stream Mapping Icons
Process
Customer or Supplier
Plant
OEE
Data Box
I
Inventory
Pull Push
KaizenBlitz
Look-See
ManualInformation
ElectronicInformation
Supermarket
KB
Kanban
FG To Customer
Shipment
Four Steps to Value Stream Mapping
1) Pick the product or product family to map (improve).
2) Create the “Current State” VSM.
3) Create the “Future State” VSM.
4) Develop an action plan to make the FS VSM the CS VSM.
Step #1 Pick the Product or Product
Family
• Criteria for selection:
– Competitive pressures are high OR– Customer satisfaction is low OR– Product represents the largest share of the sales
volume
Step #2Creating the “Current State”
VSM
• Form a team and select a team leader
• Educate the team in VSM
• Decide the scope of the Value Stream Map. Brainstorm an initial map.– Agree upon the symbols, icons, and data to use– Go see the process
Step #2Creating the “Current State”
VSM
• Determine Missing Information the VSM Requires
• Make Assignments to Gather and/or Create As Much Information About Waste As Possible.
• Build The Current State VSM– Use Problem Solving Tools As Needed
– Make NO Assumptions
What Data Does the Team Need?• C/T - Cycle Time
• C/O - Change Over Time
• Uptime (% machine is available)
• Top Three Reasons for Unplanned Downtime
• Production Batch or Transfer Batch Size
• Number of People: by type, classification, at each operation
• Number of Product Variations at each operation
• Pack Size/Standard pack Quantity
• Operating or Working Time Available (minus breaks, etc.)
• Scrap Rate
• Rework Percentage
• First Time Capability (FTC)
• Top Three Defect Causes
• Average Days Supply in Inventory between operations
• Queue Time between operations
• Source of Schedule - Information for each operation
• Distance between operations
• Time for material to travel between operations
• Over time worked by operation (average weekly or monthly)
• PM’s planned versus completed by operation
8 General Types of Business Waste
“Eliminating manufacturing waste is not the problem, identifying it is.”
Taiichi Ohno,
Developer of the Toyota Production System (TPS)
Winding#480500
3 coil Transf
SecSecFeet
C/T 20880C/O in C/T
Dist 60
Stack #480500
Material Transfer
FeetCoilsSec
704
64800
Stacking Lams
SecSecFeetSec.
21600 VAC/O 0Dist 12
Rework 750
Green Test#480500
Test Units
SecSecSecSec
2100 VAC/O 0
Dist 180Rework 1200
Weld#480500
Weld Unit
Sec.Sec.FeetSec
1500 VA300 NVA
Dist 0Rework 300
Material Trans
FeetSec
453600
Material Trans
FeetSec
1030
Varnish, Dip, Bake#480500
Dip
SecSec.Feet
C/T 37500C/O 0
Dist 146
Material Trans
FeetSec
203600
Final Assembly#480500
Final
Sec.Sec.
1800 VA1320 NVA
Material Trans
FeetSec
6017640
Final Test #480500
Name
Sec.Sec.
420 VA30 NVA
Material Trans
Feet18Material Trans
Feet10
Professional Electric – OEMCurrent State Value Stream Map
Cross Ref. Part Numbers w/ Spreadsheet
Name
Sec450
Name
Sec60-600
Verify Order in Oracle
Manual vs System Look up
Name
Sec.15
Order In System
Enter New Order
Add A line to release
Name
Sec40
Name
Sec40 - 300
Notify Shipping to run Pick Release
Name
Sec10
Cust. OrderFax Arrives @ Switchboard
Feet51
Hand Carry to CSR
Sec30
Hand Carry to CSR
Sec30
Name
Sec60-900
Yes
No
Stamp the P.O. and Sign
Name
Sec10
File the PO in Tub
Name
Sec10
Powerware to add Acme Part Number to their Faxed Order
MRP Run in Oracle
Sunday Night
Monday AM- Go into Oracle
Separate out Parts by Buyer
Name
Min.30
Look at Lead times on materials, # 17
production classes – 3 People – 30 Min per
Class
Name
Sec30600
Name
Sec900-1200
if Material Needed – Purchase Requistion Done in Oracle – 6
Supplier
No Action Taken
Yes
No
Tues, All P.O.’s print in Data – Brought to June E. around 8:00
Goes down to another Department to Get P.O. that is Printed ??? WHy
Review by Marie at 8:00 Give to Linda to
Separate, Linda Gives to Buyers
Can Marie Separate and Distribute – Cut
out third Person TIME ???
Name
Feet255
Name
Sec1800
TIME?Time for Linda to
give to buyer, Who does this
when Linda is out ?
Separate P.O. (Carbons) Stamp, Fax, Average 7 to
Copy (170 Min to Fax All )
Name
Feet150
Hold to rec’d confirmation Fax , copy or email . Check in system by P.O. number
Name
Sec300
Goes to another area to make copies
If you need to make a change, Revised P.O.
prints the next day
Name
Sec1440
Notify Supplier, Change put into
file
Yes
NoName
UnitValue
Error in Pricing – Go to Cabinate, Change 3 screens in Oracle
(50 Sec. line)Correct, then print &
FAX after making copy
Name
Sec50
Expedite – if no material, Look in system for other suppliers, Call to Verify they have
Name
Sec45 OutsideSource
Decision
No
Create manual
P.O.
Name
Sect120 – 180
Rejected Material – Bring inspection Report to June
June Review if we can Use ?? With Engineering
YesName
Sec1800
No
Fax Copy of Inspection Report to Supplier – Request
RMA
When RMA Rec’d Issue Debit Memo
Completed, AP forms completed and given
to APName
UnitValueName
UnitValue
Package sent to shipping for return, Purchasing copy
returned to close loop
What is returned to Purchasing to close
loop? Time?
Name
UnitValue
Name
UnitValueProcurement / MRP36 + 5 Steps = 41 Total
NVA 64895 SecVA 9300 Sec.
3361 Feet
Phil Uses Powerwares POX report. Down loads
from their Internet site on Monday
MPS report - Rec’d on Monday or Tuesday
Via email
Compares the two to of our history of sales
Name
Sec3600
Name
UnitValue
Name
UnitValue
Goes into Barney Smith to see forecast, Make adjustments if
Necessary
Name
Sec3600
If he make adjustments,
Safety Stock – Calculate Back Oct.
05 – No update since
Name
Sec900
Receiving14 Steps
NVA 92980 SecVA 3420 Sec.
2334 Feet
Materials come in, Someone get bill of Lading from driver,
Checks it off
Unloads Truck, Puts parts in staging area
for inspection,
If Coil – Goes directly to Dept 753
Time ?? Distance??
Check Material per Print, Use incoming Inspection criterion form Q3 guidlines
Name
Sec900
Name
Sec900
Name
UnitValue
Does Material Match print?
Material Movement Requisition is completed (3 Part form) Pink and
white goes with Material, Green copy goes to Clerk’s office after material is
on location
Rejected Completes form 9250-Z Copy of report goes to John, Larry and Pauline
No
Yes
Name
UnitValue
End of day the green copies are taken to
clerks office, Filed by Part number
Name
Sec.1200
When all inspections completed by Connie – Keyed into oracle by
Packing slip
Name
Sec1800
Issuing Material to Floor
10 Steps
Group Leaders / Supervisors, Bring KanBan
cards or Pans Four Department - #753, #771,
#768, #769
Put Cards on Board, Take cards to
Computer or location box, Check Stock
10 Min to pull Material, Take to floor with Kanban
Cards AttachedSheet Completed on what was
pulled & what department it went to “Sub Inventory
Transfer” sheet completed, key into Oracle
Out of material : Shortage sheet completed, Sent to purchasing, This sheet is completed throughout the
day and taken the next morning to Purchasing
Name
UnitValue
Depart Feet753 60761 6660768 177
Name
Sec600
Name
Feet360
Accounts Receivable15 Steps
NVA 242555 Sec.VA 18390 Sec.
5670 Feet
AM – Shipping copy of Bill of Lading & copy of S/S from
Previous Day Shipping
Name
UnitValue
Name
Feet30
Pull out powerware invoices and hand delivery to Debbie
Name
Sec.Value
Name
Feet30
Hold (24 Hrs)Until line detail payment received
by Powerware . Received email of a line
detail Item #, P.O. # , Qty and cost
Name
Sec.86400
Debbie has to take line detail & Reformat Pulls up email, Excel
Spreadsheet attached, Gives to
Karen
Karen Writes Inv. # on Excel Spread sheet to match to the waybill #,
Files again by line number detail #Hold
off for payment
Match bill label to Invoice by Pack
number, Check to see that invoice is the
same as packing slip
Name
Sec.600
Name
Sec600
Name
UnitValue
Name
Days12
When weekly bank deposit is received go to file & pull out line
detail # to total of line detail verified to Debbie’s paperwork then apply payment (15 Min.) in oracle. Check Number keyed &
amount
Name
Sec1800
Enter Inv. # being paid, Home in system. Batch closed reports Ran
applications register, Adj. & discount report. Verifies file by Bank. Stay till month end if no Discrep. ,put in hanging folder after month end (15 Min.) Run
Debt & Credit report
Name
Sec900
Research Ch Debit # to see if it matches RMA, I cannot find go to RMA CLERK , If
pending set up credit memo, If pending set up debt.
Memo (15 Min.)
Name
Steps30
Karen to match line detail to invoice
shipping file, (15 Min), Debbie emails powerware to advise decrep. Copy of email attached to paperwork
Name
UnitValue
Research Ch Debit # to see if it matches RMA, I cannot find go to RMA CLERK , If pending set up credit memo, If pending set
up debt. Memo (15 Min.)
Received payment detailed report, All put
back into file until payment is recieved
Name
Week1
Name
UnitValue
Contact Kathy – Powerware – She has
to contact other people They have to
correct in their system before payment is
made to us.
Name
Sec.120
Accounts Payable13 Steps
NVA 260945 Sec.VA 18390 Sec.
1170 Feet
Invoice received through the mail, Dated and
entered into Oracle and reviewed for Accouacy (3
Min / P.O.)
Name
Sec.1440
Filed into open file and holds until
Payment
Name
Sec.5
Name
Sec.30
@ times week , run invoice do report (10
Min.) then review report (10 Min),
Name
Sec.1200
Travis reviews signs (10 Min)
Name
Steps120
Name
Sec.600
Checks are run,Judy pulls off printer and runs through Signature machine
( 15 Min.) Checks over 30 K hand carries to Travis for Sign, After check are run, Final check report is run to
match against check to Travis
Name
Sec900
Name
Sec120
Judy sep. checks duplicate is attached
to invoice and the original is mailed 20 Min. Hand carried to Mail room (30 Sec.)
38 Steps
Name
UnitValue
Decrepancy – Put on a log (1 Hour), If receiving issue it is faxed to John Larry,or
Purchasing Issue it goes to Marie in Purchasing (50 Steps , 45 Sec. ) 5 Min to
process fax.Name
Days2
Original invoice is pulled (10 Min)
Feedback is req. then it take 15 Min. to
attach correction and file
Decrepancy
No
Yes
Name
UnitValue
Name
UnitValue
Order Entry Process47 Steps
NVA 10735 SecVA 0 Sec.814 Feet
Send eMail w order detaill
Name
UnitValue
Stamp the P.O. and
Sign
Name
Sec10
File the P.O. in the Tub
Name
Sec10
CSR Receives sales order Acknol. ( 15
Sec.)
Name
Feet51
Pull P.O. from Tube & match with SOA
Name
Sec.25
File in Close file – (51 Feet)
P.O. CompletedYes
No Name
Sec60
File in TubName
Sec10
Order shortage
report
Name
Sec1800
Separate out By Mat’l class to
Buyers(20 Min.)
Name
Sec.1200
Buyers Reviews
Name
Sec.7200
She folds ,mails to Customer (30
Min).
Name
Sec.1800
RMA Process
Download Daily Sales order report –
DOS batch File
Name
Sec.120-180
Scheduling15-36 Steps
NVA 32520 Sec.VA 0 Sec.100 Feet
Print Daily Order Sheet (15 Feet
Dist)
Enter order into sales order Prog.
Sheet/Dailrun
Name
Sec60
Name
Sec1800
Schedule in Spreadsheet from
Netting Report
Name
Sec3600 - 5400
Import Dailrun & Schedule into
Access
Name
Sec.300
Run Shortage report in Access
and Print - Obtain Report
Name
Feet15
Name
Sec120
Run Manning Numbers
Shortages
Pass Shortage to Purchasing for investigation
Populate shortage hot list on P: Drive (5-30
Min)
Name
feet10-50
Name
Sec300-1800
Purchasing Investigation & Reports back
Name
Sec3600-7200
Keep on Schedule
No
Yes
Yes
Make Note in Speadsheet when
parts done
Purchasing Verify Price, If supplier is correct then give to Receiving (30 Min.)
Ask receiving to back out of system , June will correct (5 Min.)
Receiving – John Larry check packing slip to invoice in Computer if
correct then he Judy in A/P to get a proof of del. ( 10 -15 Min.)
Name
Sec60
Enter Minutes into staffing report
Name
Unit900-1200
Name
UnitValue
June Tells receiving to entry back into system
(15 Min.) , Joh is another 5 Min.)
If supplier is wrong June calls them and asks for a credit and rebill – (2-3 Days), Attched to invoice copy and walks it down to Judy in A/P
If it is incorrect because of him then it
will take 10-15 Min. but they correct in
Computer
Name
UnitValue
Name
UnitValue
Name
UnitValue
Name
UnitValue
Name
UnitValue
Purchasing will advise A/P of correction and walk from Purchasing
to A/P
Name
UnitValue
Review Manning 3-5
Min.
NoYes
Name
UnitValue
Print Manning report
Name
Sec120
Print Daily , Cals Run, Lam, & Make Parts
Name
Sec300
Cut Jobs 30-40 Min.
Update jobs due from Previous Day 10-15
Min.
Name
Sec.600-900
Name
Sec1800 - 2400
Work order Routing Distribution
Link Files to eliminate entry into Prog. Sheet/Dailrun
Schedule to match forecast capacity
Move to Stock 5 Steps
NVA 2680 Sec. VA 0 Sec280 Feet
Pick up unit from the line& put into location
(2-3 Min) 220 Ft
Take top copy of move ticket (5 Sec.)
Name
Sec5
Name
Sec120 - 180
Give move ticket to shipping Clerk , 60
feet
Name
Sec60
Clerk enters units in oracle
Name
Sec120-3600
Run Log of Yesterday’s moves and compare to to
move tickets (25 Min. + 3 min. to run
Name
Sec1680
Review ticket for larger Qty ??? Need
to hand writeBar Code ea.
Product to Eliminate
Validate during Entry
Shipping30 Steps1
310 FtNVA 130,360 Sec
VA 2490 Sec.
Run Ship set in Oracle (30 Sec.) every 30-40 Miin
Wait for Printing
3-30 Min.
Name
Sec1800-2400 Name
Sec180 - 1800
Get Weight from Chart, Mark out Ship set – 1 Min
Name
Sec60
Receive call from CSR, Run Ship Set again
Name
Sec10
Calc & print weights on Ship
Set
Manually compare end day ship set to other powerware (2-
3 Min.)
Name
Sec120-180
Have Oracle run ship sets periodically
without prompting
Close Extra ship sets in oracle (2-
3 Min.)
Name
Sec120-180
Re-pick powerware S.S. & Print
Name
Sec180-300
Validate Wts. To sheet (1
Min) – Add Wts. & Pcs (2 Min.)
Hand write sheet w/ Units & counts for
availability verification (10 Min.)
Weight Ok ?
Call CSR to see what can be removed
(3 Min.)
No
No
Yes
Close items out of Ship
sets (30 Sec.)
Name
Sec600
Exchange Verification
sheet w/ driver, lift (2 Min.)
Name
Sec120
Stop Doing Handwrittten
verification sheets
Lift driver visually verify units available in
Location (2-5 Min)
Name
Sec180-300
Take Confirmation to office (2
Min.)
Tye of Bill of lading w / DOS based program
(3-5 Min.)
Name
Sec180
Name
Sec180-300
Confirm ship set in Oracle
(4-5 Min)
Make copy of ship set
(2 Min.)
Name
Sec240-300
Name
Sec180
Jimmy Takes Ship sets to
A/R
Name
Sec300
Name
Sec.57600
Give driver copy of BOL & Ship
set
Name
Sec15
Run Oracle report, Check SS
(1 time /day)1 Min. time
Help Truck Driver Back into Dock(5 Min.)
Check Ship set VS report and set in numerical order
( 1 Hr)
Name
Sec60
Name
Sec3600
Load Truck (5-60 Min.) 110 Feet
Product loaded is verified by another fork driver (5 Min)
Name
Sec300
Name
Sec300-3600
Name
Sec300
Cheker has Driver sign
BOL, Initial (3-4 Min)
Name
Sec180-240
Walk up front and file Ship Set (1 Day – 600 Ft
Name
Sec3600 Name
Sec300
Name
Sec3600
Driver Leaves paperwork in office door
Drop
3 Hole punch and file BOL in Binder
3-4 Min.
Name
SecValue
Name
Sec180-240
Name
Sec600
Walk to Printer, Pull off, 50 Feet , 5 sec+ 5 Sec each way C/T 24
Sec
Name
Sec24
Burst and Edge acknowledgement
(15 Min. – 3 x day) 5 feet
Name
UnitValue
Fold , copy SOA (5-10
Min) 3 X day 30 feet
Name
UnitValue
Pass to Switch Board (20 Sec.) 85 ‘
Stuff SOA(10-30 Min.)
Carry to Mail room ( 90 Sec. 145
Feet)
Name
UnitValue
Name
UnitValue
Switchboards Sep & Dist (10 Min.) 51 Feet
Walk to Printer & remove invoices (10 Sec) 30 Ft
Weekly Set up of automatic invoices & Ack. (4 Min. – 2 each
Name
SecValue
Name
Sec600
De- Collate (10 Min.) , 5 Feet
Name
Sec600
Take invoices to Machine & Burst (10 Min. 5 Feet)
Name
Sec600
Move inivoices to Sabrina
White (65') (10 Sec)
Name
Sec10
Distribute Invoices , Pink to Vicki (85') 20
Sec
Name
Sec600
Remove Debits (c/t 3
Min)
Separate Invoices by CSR C/T 3
Min.Name
Sec20
White to CSR to Pull Powerware (3 Min.)
Dist – 55 Feet
Name
Sec600
Name
UnitValue
Pink To customer service for filing w
P.O. SOA (3 Min. 51 Feet
Scheduling
Winding#104238
Sub Assembly Six Bus Bars
#104238
Name
Sec1440
Name
SecSecSecFeet
5400 VA240 NVAC/O 2700
Dist 60
Material Trans
FeetSec
10300
Stack #104238
WIP
UnitValue
WIP
UnitQue
FeetSec
160 604,860
WIP
UnitValue
Material Trans
FeetSec
60300
Material Transfer
FeetCoils
1004
Stack cokes and reactors
SecSec
5400 VA300 NVA
Green Test#104238
Test Units
Sec.Sec.
180 VA360 NVA
Weld#104238
Weld Unit
Sec.Sec.
180 VA144 NVA
Material Trans
FeetSec
203600
Material Trans
FeetSec
303600
Varnish, Dip, Bake#104238
Dip
SecSec.FT
C/T 20760C/O 0110
Material Trans
FeetSec
403600
Final Assembly#104238
Final
Sec.Sec.
360 VA0
Material Trans
FeetSec
5049068
Final Test #104238
Name
Sec.Sec.
60 VAC/O 0
Material Trans
FeetSec
40300
Pack#104238
Material Trans
Feet10
Material Trans
FeetSec.
17064800
Sub Assembly Six Bus Bars
#480500
Name
SecSec
C/T1440C/O 0
Material Trans
FeetSec
10300
WIP
UnitValue
WIP
Unit
Que
Feet190
WIP
UnitValue
Material Trans
FeetSec
80900
Lam Cutting#480500-3
Name
Sec5400 VA
WIP
UnitValue
Material Trans
FeetSec
43078120
WIP
UnitValue
Cut “t” Rod Included
FeetSec
4501800
Oracle Back Flush
After Stack
SecC/T 130
Lam Cutting#480500-3
Name
SecSecLbs
C/T 3600C/O 1800
225
WIP
UnitValue
Material Trans
FeetSec
17082800
WIP
UnitValueMaterial Trans
FeetSec
1060
Point of use Inventory
UnitValue
Name
UnitValue
Material Trans
Feet150
Stack Choke
Make Steel
Sec.C/T 2340
Material Trans
FeetSec.
50 300
WIP
UnitValue
WIP
UnitValue
WIP
UnitValue
Material Trans
Feet42 Pack & Pre-Pack
Name
Sec1800 VA
Oracle Wind Back Flush
Name
SecC/T 30
Operations60 Steps
NVA 782346 Sec.VA 132820 Sec.
3012 Feet
Eliminate DFT Scheduling
Point of use Inv.
Eliminate WIP
Move Process Closer
Point of use Inv.Eliminate WIP
Move Process Closer
Mount Base
Name
Sec.SecSec.
900 VA300 NVA
Rework 300
Move File Cabinets Closer
Stop Sending Daily Order Summary E-
mails
Perform some level of Price Verification
Change Fax # to Diane’s
Electronic Data Exchange
Name
Sec600
Name
Sec600
Name
Sec600
Name
Sec900
Don’t Consolidate
ship sets
Hold Powerware ship sets to end of
day to run
Electrical BOL signoff
Get another dock and move
dumpster
Get a better copier
Get 3-part forms for ship
setsEliminate the verification of units available
Automate BOL completion
Link Files to eliminate entry in
manning table
Why not deliver direct to work area
Eliminate manual keypunch?
Why 2 reports?
Why not electronic
Why Manual?
Electronic or other PO format?
Why print in data?
Can’t program do this on it’s own?
Reports pre-sorted by material class?
Why print and copy? Why not fax?
Confirmation really needed? E-mail?
Why manual process
Why walk?
Eliminate re-format?
Why manual
delivery?
Why walk?
Why walk Distance?
Why walk?
Why walk?
Why any hard copies?
Why paper copy? E-mail.
Move brazing closer, build to
order
Eliminate from daily coil
Eliminate winding
backflush
Improve lead cooling method,
fix O2 gen.
Reduce c/t, add helper
Move parts closer, build to
order
Move parts closer & arrange
Eliminate work order
Add Steel and size to lam sheet
UV Cure Varnish
Replenish with kanban,
eliminate form
Move pack closer
Add Steel and size to lam sheet
Replenish with kanban,
eliminate form
Point of use Inv.
Eliminate WIP
Move parts closer & arrange
Improve lead cooling method,
fix O2 gen.
Move parts closer, build to
order
Point of use Inv.Eliminate WIP
Move lam cutter closer to
stack
Move lam cutter closer to
stack
Change pallet to fit decoiler
Change pallet to fit decoiler
Eliminate cut sheet, build to
order
Purchase and install band saw
to cut t-rods
Move final test closer
Point of use Inv.
Move final assembly closer
to varnish
Shorten distance to varnish room
Fix bowed purchased
plates
Eliminate green test
Find a method to test once
Move stack closer to
green test
Purchase glue
dispenser
Develop consistent core
tube ID
Stack on multiple shifts
Fix misaligned holes on top
bracket
Move Process Closer
Move weld closer to varnish
Eliminate post-it note for every transformer
Move chokes closer
Set up jumper kanban in WIP
Eliminate kanban on
104238Move C/R
pack closer to TFMR pack
Point of use
Move final test closer
Point of use Inv.
Move final assembly closer
to varnish
Stack on multiple shifts
Move parts closer
Move mat’l closer to cutter
Move final assy closer
Eliminate lead
substitution
Fix kanban qty. on leads
Move final line closer to oven
Move one oven closer
to dip
Material Trans
Sec3600Sec3600
Name
Sec.Sec.
Ft
60 VAC/O 0
10
Queue
Sec81000
Name
SecValue
Order Entry Scheduling Purchasing Receiving Accounts PayableProduction
Accounts ReceivableShipping
10735
170
32530
9300
55595
3420
92980
5670
97580130550
2490132820
242555
18390
649526
Winding#480500
3 coil Transf
SecSecFeet
C/T 20880C/O in C/T
Dist 60
Stack #480500
Material Transfer
FeetCoilsSec
704
64800
Stacking Lams
SecSecFeetSec.
21600 VAC/O 0Dist 12
Rework 750
Green Test#480500
Test Units
SecSecSecSec
2100 VAC/O 0
Dist 180Rework 1200
Weld#480500
Weld Unit
Sec.Sec.FeetSec
1500 VA300 NVA
Dist 0Rework 300
Material Trans
FeetSec
453600
Material Trans
FeetSec
1030
Varnish, Dip, Bake#480500
Dip
SecSec.Feet
C/T 37500C/O 0
Dist 146
Material Trans
FeetSec
203600
Final Assembly#480500
Final
Sec.Sec.
1800 VA1320 NVA
Material Trans
FeetSec
6017640
Final Test #480500
Name
Sec.Sec.
420 VA30 NVA
Material Trans
Feet18Material Trans
Feet10
Final Assembly#104238
Final
Sec.Sec.
360 VA0
Final Test #104238
Name
Sec.Sec.
60 VAC/O 0
Material Trans
FeetSec
40300
Pack#104238
Material Trans
Feet10
Material Trans
FeetSec.
17064800
Sub Assembly Six Bus Bars
#480500
Name
SecSec
C/T1440C/O 0
Material Trans
FeetSec
10300
WIP
UnitValue
WIP
Unit
Que
Feet190
WIP
UnitValue
Material Trans
FeetSec
80900
Lam Cutting#480500-3
Name
Sec5400 VA
WIP
UnitValue
Material Trans
FeetSec
43078120
WIP
UnitValue
Cut “t” Rod Included
FeetSec
4501800
Oracle Back Flush
After Stack
SecC/T 130
WIP
UnitValue
WIP
UnitValue
WIP
UnitValue
Material Trans
Feet42 Pack & Pre-Pack
Name
Sec1800 VA
Oracle Wind Back Flush
Name
SecC/T 30
Move Process Closer
Move Process Closer
Mount Base
Name
Sec.SecSec.
900 VA300 NVA
Rework 300
Move brazing closer, build to
order
Eliminate winding
backflush
Reduce c/t, add helper
Move pack closer
Add Steel and size to lam sheet
Replenish with kanban,
eliminate form
Point of use Inv.
Eliminate WIP
Move parts closer & arrange
Improve lead cooling method,
fix O2 gen.
Move parts closer, build to
order
Point of use Inv.Eliminate WIP
Move lam cutter closer to
stack
Change pallet to fit decoiler
Purchase and install band saw
to cut t-rods
Move final test closer
Point of use Inv.
Move final assembly closer
to varnish
Shorten distance to varnish room
Fix bowed purchased
plates
Eliminate green test
Move stack closer to
green test
Stack on multiple shifts
Fix misaligned holes on top
bracket
Eliminate post-it note for every transformer
Move chokes closer
Set up jumper kanban in WIP
Eliminate kanban on
104238Move C/R
pack closer to TFMR pack
Point of use
Move final test closer
Point of use Inv.
Stack on multiple
shifts
Move final assy closer
Eliminate lead
substitution
Fix kanban qty. on leads
Move final line closer to oven
Move one oven closer
to dip
Material Trans
Sec3600Sec3600
Name
Sec.Sec.
Ft
60 VAC/O 0
10
Professional Electric - OEM Current State Value Stream Map
The Current State
• Typical Results– 80 – 90% of total steps are waste from standpoint of end
customer.– 99.9% of throughput time is wasted time.– Demand becomes more and more erratic as it moves
upstream, imposing major inventory, capacity, and management costs at every level.
– Quality becomes worse and worse as we move upstream, imposing major costs downstream.
– Most managers and many production associates expend the majority of their efforts on hand-offs, work-arounds, and logistical complexity.
What Is Value Added Criteria?
1. The Customer is willing to Pay for it.
2. Physically changes the Part or the Process.
3. MUST be done RIGHT the first time.
Cost/Benefit Analysis The intent here is to prioritize the improvement opportunities.
HIGH
BENEFIT
CO
ST
LOW HIGH
LOW
Step #3Create the Future State VSM
• Focus on “low cost” or “no cost” improvements• Identify all potential improvements with “lighting
bolts”• Verify management support and gather ideas from
the Team• Develop goals for each targeted area of
improvement• Draw the future state map
Step #3Create the Future State VSM
• Activities aligned with our business strategy
• Efforts focused on NET improvements for the company
• Metrics supportive of fundamental change
• Simple, constant communication of our plans and achievements as an enterprise
Match?
NoYes
Professional Electric – OEMFuture State Value Stream Map
Order Entry Process6 Steps (1 OE & 5 Invoices)NVA 1355 Sec (0.37 Hrs)
VA 0 Sec.88 Feet
Procurement + Forecast / MRP10 + 4 Steps = 14 Total
NVA 40440 SecVA 6300 Sec
0 Feet
Order arrives via EDI and
automatically creates new
order in Oracle
Suppliers confirm pricing within 24 hours
of shipment
Buyers match pricing to PO
Run one MRP report (includes order shortage &
separate by material class
Generate electronic PO’s,
reviewed by buyers on network
Buyers review leadtime to determine
material needs
E-mail PO’s to suppliers
Sec600 Sec0 Sec1800 Sec1200 Sec30,600 Sec1800
Buyer amends PO, e-mails
supplier
Done
Sec1440
Powerware Truck
Shipping8 Steps 710 Ft
NVA 3810 SecVA 2490 Sec.
Run Ship Set that prints with
weights
Hand Carry front and file Ship Sets – 600 ft
Sec300
Confirm Ship Set
Sec240 to 300
Sign off Bill of Lading with
trucker electronically
Sec180 to 300
Load Truck
Sec300 to 3600
Give Bill of Lading to Truck
Driver
Sec60
Type up Bill of Lading
Sec240 to 300
Separate ship sets
Sec60 Name
Sec600
Name
Sec240
Customers
Move to Stock 2 Steps
220 FeetNVA 170 Sec.
VA 0 Sec
Bar Code Unit into Inventory
Sec20
Move 220 ft to Stock
sec120 to 150
De-collate Invoices – 5 ft
sec600Sec10
Separate out powerware
invoicesBurst Invoices
sec120Sec600
Hand Cary to Machine
ft5
Walk to printer and remove daily print of
invoicesHand Cary to
A/R
Feet78
Oracle System/ MRP
Rejected material
No
Yes
Receiving8 Steps
NVA 3480 SecVA 2700 Sec.
939 Feet
Purchasing electronically
asks supplier for RMA
Purchasing review material with engineering
for TMD
Form Q250Z completed & forwarded electronically to
receiving, quality and purchasing
Material delivered direct
to work cell
Inspection per print – material
passes bar code scan into oracle
Material comes in – Bill of
Lading scan by bar code
639 Ft
Sec900Sec800
100 Ft
Sec1800 Sec1600
200 Ft
Sec1800Sec180
Done
Discrepancy?
No
Yes
Accounts Payable 9 Steps
NVA 1805 Sec.VA 4140 Sec.
0 Feet
Sec1440 Sec900Sec900Sec900Sec1800Sec5
Invoice received electronically –
entered into Oracle & viewed
for accuracy
IfF incorrect, receiving will correct
in system. Electronically advise
AP
Receiving check packing slip to
invoice – if correct, request POD
Checks electronically
processed & sent
Invoice due report run twice
per week. Reviewed then
approved by Controller
File into open electronic file and hold until
payment
Done
Controller and A/R in same location
Sec180
Cut Job at Manufacturng, print in shop
Pull Kanban from unit at
shipping when shipped
Scheduling3 Steps
250 FeetNVA 390 Sec.
VA 0 Sec.
Carry kanban 250' to line
Sec90 Sec120
Suppliers
Suppliers
Change safety stock if
adjustments made
Make adjustments in Focus Forecast
if necessary
MPS Report received Mon or Tues via e-mail
Download Powerware POX
report on Monday
Sec900 Sec3600 Sec0 Sec3600
Operations44 Steps
NVA 72278 Sec.VA 132820 Sec.
390 Feet
EX-480500-3SManufacturing Cell
EX-104238-3SManufacturing Cell
Debits and Discrepancies
?
No
Yes
Done
Accounts Receivable10 Steps
NVA 3960 Sec.VA 2700 Sec.
60 Feet
Sec0 Sec180Sec900Sec900Sec1800Sec1200Sec600Sec180
Ship set & Bill of Lading e-mailed
to A/R
File payment detail report –
until payment is received
If no RMA, set up debit memo. Match line detail to inv. E-mail Powerware
of discrepancy
Search debit # then RMA
Receive bank deposit, verify of
line detail and apply payment
A/R keys in Waybill# into Oracle & matches
to Powerware line detail report
Matches Bill of lading & invoice by pack #. Hold until line detail report received from Powerware – report
in format, eliminate re-format
Dianne pulls out Powerware inv, deliver to A/R
170
1185
Order Entry
390
Move to Stock 2 Steps
220 FeetNVA 170 Sec.
VA 0 Sec
Bar Code Unit into Inventory
Sec20
Move 220 ft to Stock
sec120 to 150
Sec180
Cut Job at Manufacturng, print in shop
Pull Kanban from unit at
shipping when shipped
Scheduling3 Steps
250 FeetNVA 390 Sec.
VA 0 Sec.
Carry kanban 250' to line
Sec90 Sec120
Operations44 Steps
NVA 72278 Sec.VA 132820 Sec.
390 Feet
EX-480500-3SManufacturing Cell
EX-104238-3SManufacturing Cell
Professional Electric - OEM
MRO Purchasing Process VSM Deliverables – Metrics
• Current State:– # of Steps: 30
– # of Forms: 13
– Non-Value Add: 2,931.952 – Good
– Distance: 2,542 sq.
– ft.
– People (IDL): 8
– Floor Space: 1,560
sq. ft.
– Handoff’s: 15• Areas: 9
• Future State:– # of Steps: 24
– # of Forms: 7
– Non-Value Add: 2,607,112 - Good
– Distance: 1,212 sq.
– ft.
– People (IDL): 4
– Floor Space: 1,560 sq. ft.
– Handoff’s: 6• Areas: 4
% Improvement:
20 %
46 %
11 %
52 %
50 %
60 %
Step #4Develop the Action Plan
• Teams created to work on various improvements may or may not include members of the VSM Team
• Emphasize having the right members on the Team to complete various projects
• Initially, use great care to ensure teams are supported with a skilled facilitator and the resources to meet the goals.
Step #4Develop the Action Plan
Often Overlooked Tasks:• Conduct regularly scheduled meetings for all
participants• Provide a structure for the Team to work on
problem solving and to complete tasks• Verify progress on goals and support for the
process continuously• Information on progress needs to be collected and
periodically reviewed with top management
Implementing ChangeDon’t Wait!
You need a plan!
• Tie it to your business objectives.
• Make a VS Plan: What to do by when by whom.
• Establish an appropriate review frequency.
• Conduct VS Reviews walking the flow.
Implementing ChangeTypical Results
• Throughput time falls from 44 days to 6 (87%)
• Wasted steps fall from 65 to 27 (60%)
• Transport distance falls from 5300 miles to 1100 miles
• Inventories shrink by 90% percent
• Defects are reduced to the same rate at the start of the process as at the end
• Throughput time shrinks to within customer wait time, meaning all production is to confirmed order
Implementing Change
• The map is just a picture of ideas!
• The fundamental change is in how we choose to manage the value stream as an integrated system of decisions and tasks.
Roadblocks
• 75 years of bad habits
• Financial focus with limited cost understanding
• A lack of system thinking and incentives
• Metrics supporting a 75 year old model
• Limited customer focus
• Absence of effective operating strategies
Roadblocks
• Margin squeezing rather than true cost reduction.
• Persistent shortfalls in quality and delivery reliability.
• Low-ball bidding and the engineering change game.
• Collapse of “partnership” and “trust” in economic downturns (2001!), replaced by “survival of the fittest”.
QUESTIONS?
THINK LEAN!