value stream mapping a part of hydro automotive production system bedrifter i nettverk ntnu,...

Value stream mapping Value stream mapping a part ofa part of

Hydro Automotive Production Hydro Automotive Production SystemSystem

Value stream mapping Value stream mapping a part ofa part of

Hydro Automotive Production Hydro Automotive Production SystemSystem

Bedrifter i nettverkNTNU, 2003-05-27

Camilla NilssonHead of Lean Manufacturing Hydro Aluminium Automotive

Bedrifter i nettverkNTNU, 2003-05-27

Camilla NilssonHead of Lean Manufacturing Hydro Aluminium Automotive

Norsk Hydro ASANorsk Hydro ASA

The second largestproducer of oil andgas on the NorwegianContinental Shelf

The largest Europeanaluminium companyand among the topthree worldwide

The world’s leading supplier of plant nutrients

Oil and Oil and EnergyEnergy

AluminiumAluminium AgriAgri

Norsk Hydro ASANorsk Hydro ASA

Operating revenues NOK 153 billion (2001)

Operating income NOK 21 billion (2001)

Investments NOK 16 billion (2001)

50 000 employees in more than 60 countries

15,000 in Norway

35,000 outside Norway

Hydro Aluminium AutomotiveHydro Aluminium Automotive

Executive Vice PresidentJohn O. Ottestad

Executive Vice President Tore Torvund

Norsk Hydro President and CEOEivind Reiten

Executive Vice PresidentAlexandra Bech

AluminiumExecutive Vice President Jon-Harald Nilsen

AgriExecutive Vice President Thorleif Enger

Operation and Production Norway

Exploration and Developm. Norway

Exploration and Developm. International

Energy

Oil Marketing

Technology and Projects

Metal Products

Rolled Products

Primary Metal

North America

Agri operations

Extrusion

Automotive

KFK

Petrochemicals

Pronova

Business Partner

Oil and Energy Aluminium Agri Petrochemicals

Hydro Aluminium Automotive productsHydro Aluminium Automotive products

Hydro Aluminium Automotive customersHydro Aluminium Automotive customers

Hydro Aluminium Automotive plantsHydro Aluminium Automotive plants

Structures Tønder, Denmark Louviers, France Wackersdorf, Germany Raufoss, Norway Skultuna, Sweden Worcester, UK Holland, Michigan (US)

Precision Tubing Seneffe, Belgium Løgumkloster, Denmark Tønder, Denmark Workington, UK Rockledge, Florida (US) Adrian, Michigan (US) Puckett, Mississippi (US) Itu, Brazil Wuxi, ChinaCastings

Linz, Austria Dillingen, Germany Györ, Hungary Charlottenberg, Sweden Leeds, UK Ramos Arizpe, Mexico

Hydro Automotive Production SystemHydro Automotive Production System

Step by step transformation towards “lean manufacturing”

Set of tools and techniques

Principles and ways of working

Roadmap, guidelines and a self assessment system

Based on the lean manufacturing principles as defined by Toyota Production System

Hydro Automotive Production System

Manufacturing

Excellence

Hydro Automotive Production SystemHydro Automotive Production System

Just in time productionReduced costsIncreased profit

Current stateNeed for changeMotivationAlignmentVision

Continuous flowFlexibility

Team organisationWaste reductionSafe & healthy workplaceVisual factory

Process stabilityIncreased capacityContinuous improvementsCompany wide quality

-Team organisation-Coaching and Leadership -HSE-5S and workplace organisation-Value stream mapping-Standardised work

-TPM-SMED -Mistake proofing-Continuous improvements

-Production Scheduling-Supplier development

-Just-in-time Production

P

DC

A

HAPS Road MapSelf Assessment


- H2C- HAPS Roadmap Self Assessment- Benchmarking

Value stream mapping as a part of HAPSValue stream mapping as a part of HAPS

Current stateNeed for changeMotivationAlignmentVision

Continuous flowFlexibility

Team organisationWaste reductionSafe & healthy workplaceVisual factory

Process stabilityIncreased capacityContinuous improvementsCompany wide quality

-Team organisation-Coaching and Leadership -HSE-5S and workplace organisation-Value stream mapping-Standardised work

-TPM-SMED -Mistake proofing-Continuous improvements

-Production Scheduling-Supplier development

P

DC

A



- H2C- HAPS Roadmap Self Assessment- Benchmarking

-Just-in-time Production

Value stream mapping; Value stream mapping; example of a current state mapexample of a current state map

5 days ½ day 1 day

Extrusion Cutting Forming Aging ShippingWelding

Supplier Customer

ProductionControl

(Manual KanBan)Orders/Weekly

requirements

Daily

Ship schedule 1xDaily

Orders/

Requirements

Daily inventory control/updating of Pull system

Manufacturing plan/ Pull signals

T T T T

49 sec 8 hours

15 min30 days 9 days

7 sec 2 sec 16 sec 8,27 h

1124 h

This current state picture gives the information that the throughput time for a Lesabre bumper is 1124 hours but the value creation time is only 8,24 hours. This implies that 0,73 % of the throughput time is spent on value adding activities and

99,26% of the time is non-value-adding!

VSM step-by-stepVSM step-by-step

Identify the product or product family you are going to analyze

Set up a small team to do the analysis. Between them, they should have knowledge of all the steps involved from supplier inputs to outputs to the external customer

Go out and watch what is actually happening in the process

Start at the finished product (end) of the process and work backwards to the raw material (beginning) of the process. Document all the information on the sheet "Value stream analysis - measurements for registration“.


Once you have mapped all the processes, transfer the information from the information sheets to a “Current State Map”


The next step is to gather the team (and possibly a few additional people) in order to develop a "future state map”

Products flow/are produced according to the customer takt time

The layout is optimal (support the flow)

Work in progress is under control

Changeovers are quick

Machines and equipment are available (Up-time)

Production occurs only when demanded by the customer (not for storage)


Discuss and determine the improvements that will be necessary to achieve the future state. For example:

Reduce changeover time, increase uptime

Daily deliveries in from suppliers

Combine operations

Introduce Kanban signs

Reduce stock

Reduce motion and transport time

Improve information to operators

Establish an action plan and schedule meetings to review progress of the action plan

Example of time schedule for the whole Example of time schedule for the whole processprocess

Macro Value Stream MappingMacro Value Stream Mapping

Macro value stream mapping

Value stream mapping

Flow!

Flow!

Macro Value Stream Mapping Macro Value Stream Mapping Roll Over Protection System E46 (BMW)Roll Over Protection System E46 (BMW)


HARA Hølen HAWA

Grammer

BMW

Nammo

Th. Magnete

Nedschoef

Scherdel

TR M Bjørklo

Norsk Presstoff

28 different products assembled

together!


Zahnleiste (Profile 1825)

Klinke (Profile 1986)

Halter Klinke (Profile 1823)

Halter Kopfstütze (Profile 1953)


HARA Hølen HAWA BMW

Team MVSM E46

2 members from HARA

2 members from Hølen

1 member from HAWA

1 team leader

1 sponsor


T T T T T T T T T T T T

T T T T

HAWA

Current state macro level

HØLEN HARA


Extrusion 261 sec (HARA)

Stretching 60 sec (HARA)

Heat treatment 82800 sec (HARA)

Cutting 23 sec (Hølen)

Machining 33 sec (Hølen)

Deburring 1800 sec (Hølen)

Assembly 174 sec (HAWA)

Functional test 20 sec (HAWA)

23,6 h


104 days!


Delivery Performance E46 2002

23 %

83 %

100 %

0 %

20 %

40 %

60 %

80 %

100 %

HARA to Hølen Hølen to HAWA HAWA to BMW

On time delivery


“The next step is to gather the group (and possibly additional people) in order to develop a "future state" map”

Remarkable!

- Inventory level in Hølen (68 days)

- Delivery frequency HARA-Hølen (E.g. 8 weeks)

- Batch sizes from HARA to Hølen (E.g. 19 760 pcs = 2 months)

- Delivery performance HARA-Hølen (23 %)

- Cross-docking in HARA (?)

- Lack of supplier - customer relationship between HARA - Hølen

- Safety stock in Hølen, safety stock in HAWA


Current state Future state I

Total lead time 104 days 40 days

Value adding time 1 day 1 day

Number of steps 59 steps 59 steps

Value adding steps 10 steps 10 steps

Inventory turns 2,3 5,5

Product Travel Distance 2226 km over 4 transport links 2226 km

“The next step is to gather the group (and possibly additional people) in order to develop a "future state" map”


Change call-off frequency and batch sizes between the plants

Establish customer - supplier relationship betweenHARA and Hölen

Establish max- and min- levels for inventory in Hölen

Balance flow throughout the whole value chain (Kanban, consignment inventory etc.)


Current state Future state I

Total lead time 104 days 40 days

Value adding time 1 day 1 day

Number of steps 59 steps 59 steps

Value adding steps 10 steps 10 steps

Inventory turns 2,3 5,5

Product Travel Distance 2226 km over 4 transport links 2226 km

Reduction of lead-time; 64 days

Reduction of capital costs; 60 %







The next step is to gather the group (and possibly additional people) in order to develop a "future state" map

Discuss and determine the improvements that will be necessary to achieve the future state.


““Lead time check” sep 30Lead time check” sep 30thth 2002 2002

Several approaches with the same toolSeveral approaches with the same tool

Value stream mapping

Macro value stream mapping

VSM on future flows

VSM for future flowsVSM for future flows






The next step is to gather the group (and possibly additional people) in order to develop a "future state" map

Discuss and determine the improvements that will be necessary to achieve the future state.


VSM for future flowsVSM for future flows

”It’s not specatucular concepts that distinguish world class companies,

it’s the uncompromising way of applying already known tools

and methods”

!!

value stream mapping a part of hydro automotive production system bedrifter i nettverk ntnu,...

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