value stream mapping. accelerating supply chain performance paul kobishop 30 years of experience...

Value Value Stream Stream

MappingMapping

Accelerating Supply Chain Performance

PAUL KOBISHOP

30 years of experience improving processes

Managed multi-plant manufacturing organizations in aerospace and medical device industries

15 years experience educating clients in effective Lean Enterprise methodologies

Experience as production floor operator to directorships of manufacturing division operations

Manage $15mm NPD projects Lean projects with direct

improvements in operating costs on average of 15% ($1.5m)

MBA in Operations Management, and Mechanical Engineering


INTRODUCTION

• “Visually documenting the actions required to bring a product through the main flows essential to every product.”

• Includes design, flow of information and flow of work and materials

• Look at the big picture, not just individual processes• “Learning To See”


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


A VALUE STREAMA VALUE STREAM

CustomerInputs – Processes - OutputsSupplier

Production ControlInformationInformation

Materials


CREATE THE CURRENT STATEValue stream mapping begins with a door to door product flow analysis.

Physically walk through the pathways of material and information. Follow up with a detailed information gathering walk-through.

• Begin at the end• Record fresh data. Bring a watch.• Document the entire flow as you walk through. Don’t try to remember

later.

SHIPPACKTESTASSY

Material Flow

VSM Direction


CURRENT STATE VSM

1.5 days 2.5 days 62 days 1.5 days 1.5 days 1 day

1 hr 1 hr 8 hrs 18 hrs

Total cycle time = 403 Days

Processing time = 30 Days


AEROSPACE OFFICE VSM


VALUE STREAM MAP SYMBOLS


WHAT INFORMATION IS NEEDED?

• Cycle Time– Actual (C/TA)– Theoretical (C/TT)

• Changeover Time– Planned (C/OP) – Actual (C/OA)

• Batch Size• Downtime• Yield• Shifts• # of Operators

DATA BOX


Represents a process connection in which the UPSTREAM process does not care if the

DOWNSTREAM process is ready for its output.

PUSH ARROW


Represents the movement of a unit of value in between processes.

TRANSPORT


Represents the time during which there is no work being applied to the unit. A typical symptom of delay is “waiting

for…”

DELAY


Use Tools of Kaizen To Reduce Variation & Create FLOW……..

Hoshin Planning

FLOW

KanbanTPM

Standard Work Poke-Yoke Quick Change Over

Pull5s / Visual Workplace

Team SkillsLeading Change

Inputs – Processes - OutputsSuppliers Customers

Speed - Accuracy

ANALYZE THE CURRENT STATE


FUNCTIONAL COST-BASED ORGANIZATION

WORKI WORK I WORK I

THE VALUE STREAM

TIME = WEEKS


7 TYPES OF NON-VALUE-ADDING ACTIVITIES7 TYPES OF NON-VALUE-ADDING ACTIVITIES

Waste of resources

beyond what is needed to meet

customer needs

Overproduction

Transportation

Waiting

InventoryOverprocessing

Motion

Rework


SEVEN COMMON WASTESSEVEN COMMON WASTES

Transportation

Inventory

Motion

Waiting

Over Processing

Over Production

Defects

Alternate Terminology8 Wastes - Adding “People’s

Talents” as the eighth waste

HOW CAN WASTE BE DETECTED?Process Flow or Value Stream Map

If you cannot find the waste, look for activities that actually add value to the product; everything else is waste


ELIMINATION OF WASTE: WHAT CAN YOU DO?Over-production

1• Reduce changeover times• Eliminate anticipatory production (producing in advance of customer demand)

Waiting2• Balance workload of equipment/people (e.g., by debottlenecking equipment)• Fill waiting time with other activities• Optimize interfaces with internal/external suppliers

Transpor-tation

3• Load once

Over-processing

4• Provide standards• Review current process design (e.g., value analysis)

Inventory5• Define necessary inventory levels• Improve process reliability

Rework6• Ensure proper sequence of work• Install mistake-proofing steps (quality control)

Motion7• Arrange tooling/equipment• Design ergonomic workplace


TAKT TIME

• Rhythm or Beat

• Time and Volume Relationship

• H (S) / D

• Sets maximum capacity of line

• By Process!


ROUGH CUT RESOURCE PLANNING

Formula: STw / TAKT

– STw = Ʃ(ST x D)ƩD

– First pass resources only!

– Calculate by process

– Uses for Simulation Modeling


KANBAN SIZING FORMULA

Formula: (D x Q x R) / P

– D = Rough Cut Volumes for end item

– Q = Quantity Per at component level

– R = Replenishment Time Allowed

– P = Package Quantity (Default = 1)

– Mixed Model = Σ(D x Q)


OUR OBJECTIVE IS TO REDUCE WASTE ….

Waste

Value-added activity

Incidental activity

Elements of work

….and increase the percentage of value added, in order to reduce cost


FLOW PROCESSING

WORK I WORK I WORK I

THE VALUE STREAM

TIME = DAYS

? ? ?


IMPROVING WORK

THE VALUE STREAM

TIME = HOURS

ERRORSNON VALUE ADDEDSTREAM-

LINE


• We identified the delays• We identified the waste• We identified the sources of waste• What do we do about them?• Focus on WHAT needs improvement

and HOW it can be improved• Once an idea is selected, display on

VSM


Kanban- Pull

Systems

Office Kaizens

Flow Manufacturing

Value StreamImprovement

Process (VSM)

The one common element: these tools help us eliminate waste from our processes.

Set-Up Reduction6S

LEAN TOOLS


FUTURE STATE VSM

Total cycle time = 21 Days

Processing time = 18 Days

1 day .5 days .5 days .5 days

10 days 2 days3 days3 days


Represents an idea for improvement that can be implemented using the Kaizen methodology.

KAIZEN BURST


• Each Kaizen burst documented in the Current State VSM must be associated with a tool(s)

• Make initial estimations of resource needs

• Make initial estimations of benefits• Kaizen Event vs.. Quick & Easy Kaizen


• Prepare a project plan for every event in a simple tabular form

• Describe WHAT the opportunity is• Identify HOW it is going to be addressed,

including the specific set of tools that apply

• Specify WHO is going to be Project Leader

• Indicate WHEN you expect this event to take place


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LET’S JUMP IN


QuestionsQuestions

Paul [email protected]

value stream mapping. accelerating supply chain performance paul kobishop 30 years of experience...

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