Value Stream Analysis
- 1. Value Stream Analysis Kaizen Training
- 2. What you can Expect “Value Stream Analysis Kaizen Training” contains what you need to know to get the job done, not everything you need to know to be an expert. Part 1 Lean concepts and terminology Part 2 The process by which we create future states
- 4. • Value in the Eyes of the Customer • The Value Stream • Flow • Pull of the Customer • Perfection Lean Thinking
- 5. Value is added any time we physically change our product towards what the customer is buying If we are not adding value, we are adding cost or waste Lean Manufacturing drives the systematic elimination of waste Value-Added Time : Minutes Time in Plant : Weeks ORDER CASH KEY QUESTION – Are my customers willing to pay for this ???? Value Added
- 6. Overproduction Waiting Transportation Non-value added processing Excess inventory Excess motion Defects Typically 95% of Total Lead Time is Non- Value Added!!! Value added 5% Non-value added LEAN = ELIMINATING THE 7 WASTES Value Added vs. Non-Value Added
- 8. 7 Basic Types of Waste (Toyota) Overproduction – producing more than what is demanded by the customer Inventory – Storing more than the absolute minimum needed Transportation – the unnecessary movement of materials Waiting – waiting for the next process step Excess processing – due to poor tool or product design Wasted motion – unnecessary reaching, walking, looking for parts, tools, prints, etc Defects – scrap and rework
- 9. Producing and moving one item at a time (or a small and consistent batch of items) through a sequence of process steps as continuously as possible, with each step making just what is requested by the next step. What is Flow ? Lean Lexicon Version 1 p9 CONTINUOUS FLOWTRADITIONAL
- 10. Continuous Flow – More Efficient & Faster Traditional Batch Layout Continuous Flow Layout
- 11. “Production” KANBAN “Withdrawal” KANBAN SUPERMARKET productproduct CUSTOMER PROCESS goes to supermarket and withdraws what it needs when it needs it. SUPPLYING PROCESS produces to replenish what was withdrawn. PURPOSE: Controls production at supplying process without trying to schedule. Controls production between flows. Mike Rother Learning to See Supermarket Pull System
- 12. Takt Time Takt time paces production to the pace of customer requirements. Total daily operating time Takt Time = Total daily customer requirement Operating time = 1 shift x 8 hours – (2) 20-min. breaks = 440 mins/day Customer 880 units/month = = 44 units/day Requirement 20 days/month 440 mins/day Takt time = = 10 mins/unit 44 units/day
- 13. A Value Stream is all the actions, value creating and non-value creating, required to bring a product from order to delivery Starts with raw materials Finalizes at the end-customer Involves several businesses What is a Value Stream ?
- 14. Value Stream Mapping Helps you to see the sources of waste in the value stream Shows the flow of information and material Forms the blueprint for lean implementation (Imagine trying to build a house without a blueprint). Helps you to see more than just the single process level Provides a common language for talking about manufacturing processes Makes decisions about the flow apparent, so they can be discussed Ties together lean concepts and techniques, which helps to avoid “cherry picking” Improvement projects Mike Rother Learning to See
- 15. Value stream maps describe a value stream Value stream analysis is a planning process Uses value stream maps to communicate • Information Flow • Material Flow Three value stream maps are created Current state Ideal state Future state (3 months from now) Action plans are developed for the future state map What is Value Stream Analysis?
- 16. The Value Stream Analysis Process Phase 1-Pre-event work Phase 2-The Main Event Phase 3-Accountability Process
- 17. Value Stream Analysis Process Phase 1 Pre-event Planning
- 18. Pre-Event Work Three weeks prior to the event Determine team members Define the objective of the team Select the area and topic Logistics (conf. Rm., times, facilitator supplies, etc.) Invite team members to the event Clarify roles and responsibilities • Event leader-value stream manager from the area (owns resources and results) • Event facilitator-CI Leaders who manage the improvement process and share in ownership of results • Subject matter experts
- 19. Pre-Event Work Two weeks prior to the event Part/quantity analysis (select representative part number) Gather and review data (Yield, job closures, CONC, etc.) Determine future demand Review prior event data Review any customer issues Review any requirements for capital equipment One week prior to the event Verify customer demand Review above data
- 20. Value Stream Analysis Process Phase 2 The Main Event
- 21. The Main Event 1. Training 2. Gemba Walk 3. Value Stream Map-Current State 4. Develop Ideal State Map 5. Develop Future State Map (3 months out) 6. Develop Future State Plan 7. Management Report Out
- 22. VSM Event Steps 1 &2 Training and Gemba Walk 1. Training The concepts of Lean need to be applied to classroom training as well as our other processes • This is a learn by doing process • We will minimize classroom learning 1. Gemba Walk Gemba means, “shop floor” or “where the process is” We need to go there so we know what we are mapping
- 23. 3. Value Stream Map-Current State 1. Map the physical flow (manufacturing loop, customer loop, supplier loop) 2. Map the information flow 3. Complete the lead time data bar 4. Visually identify waste 1. Identify value added/non-value added (red, yellow, green dots) 2. Visually identify the most significant opportunities with kaizen bursts. 5. Summarize all information and metrics (date, P/N, times, inventory, OTD, quality, etc.) VSM Event Step 3 Current State Map
- 24. Information Lead Time Data Bar Manufacturing LoopSupplier Loop Customer Loop Monthly Orders30 Days 880 Op 1 1 Day S/U = 1 hr CT = 1.6 min S/U = 0.08 hr CT = 0.9 min S/U = 0.08 hr CT = 0.9 min S/U = 0.08 hr CT = 1.2 min Total = 57 Days Total = 1 Hr. 44.9 Min. Takt Time = 440 min/44 = 10 min/unit Bi-Monthly MRP S/U = 0 CT = 60 min S/U = 1.95 hr CT = 40.3 min Supplier Customer 45 1 1 12 2 5 1.6 0.9 0.9 60 1.2 40.3 Op 2 2 Days Op 3 2 Days Op 4 1 Day Op 5 5 Days Op 6 1 Day45 Days Elements of Value Stream Maps
- 25. Manufacturing Loop Questions What are the changeover times? What are the quantity of machines per process? Count all work in process (WIP) Look for evidence of quality problems Look for processing waste Is there great distances between processes? Is the product flexible or made to order? Is there obvious batch processing?
- 26. Who and where are your customers? What are the product lines or families? Future marketing plans? Review growth potential. What is the total yearly order requirement? Quantity by product family or product type What is the high, low and mean ordering pattern? Monthly or quarterly high & low for several periods How often do we deliver to our customer? What takt time do we supply to? G.M. AT&T Customer Loop Questions
- 27. Where in the production chain do we trigger production? How much work do we release at one time? How long does it take to go from customer order to production order? How do we physically schedule production? How do we react to customer emergencies? Production Control Questions
- 28. Supplier Loop Questions #1 question, how do you tell suppliers what to ship, make, etc.? When and how often do they get purchase orders from Customers? When and how do we change the purchase order? When and how often do suppliers ship product and how? Is it level? (Truck, train, etc.) Do we have standard pack quantities? Are suppliers aware of our inventory quantities? Are we sure of suppliers inventory? How? Do we have a supplier training program?
- 29. Information Flow Questions How are the manufacturing and procurement orders distributed? Who gets them How frequently What is the process of generating them How are the shop order schedules generated and revised? Are there “shortage meetings”? What parts of the manufacturing loop are scheduled by MRP? Make sure to document the informal (hot lists) as well as formal (MRP) information channels.
- 30. Current State Lead Time Data Bar Cycle Time (CT) DOH Inventory 8 Days 4 Hrs 4 Days Lead Time Total 12 Days 4 Hrs CT Total (1 Hr.) VA Time (yes/no)
- 32. As a team, review each process step for elements that are value added and non value added Each step can have any combination of value added, type 1 waste and/or type 2 waste Identify value added with a green dot Identify type 1 waste (waste but unavoidable in the current state) with a yellow dot Identify type 2 waste (pure waste, eliminate immediately) with a red dot As type 2 waste is identified, generate the actions to remove it (this will be the beginning of the future state implementation plan) Prioritize the waste opportunities and identify the biggest opportunities on the CS map with kaizen bursts Visually Identify Waste
- 33. Avoid shared resources Assume that anything is possible Our customers are happy Our profits are up High job satisfaction Capital is available if needed Create an ideal state map Map the physical flow Map the information flow Complete the lead time data bar VSM Event Step 4 Ideal State Map
- 34. What of the ideal state map can be implemented in 3 months? Identify short term goals LEAD TIME INVENTORY PRODUCTIVITY QUALITY CAPACITY Work from your current state map VSM Event Step 5 Future State Map (3 months out)
- 35. This plan answers the question, “what actions need to be completed in the next 90 days to achieve the future state? Think back to the “visually identify waste” step Plan addresses all “red dots” and Kaizen bursts VSM Event Step 6 Future State Plan OPEN EST COMP ACT COMP 1 Test The electrical station is located away from the test area. Re-locate electrical station closer to test area. Short Term TEAM 1/5/2005 1/10/2005 1/7/2005 THE ELECTRICAL TEST STATION HAS BEEN RELOCATED NEAR THE TEST AREA 2 Assy Only three technicians are certified solderers. Train and certify more technicians to perform soldering Short Term Joe 1/5/2005 4/30/2005 3/18/2005 4 MORE TECHNICIANS HAVE BEEN TRAINED 3 Plan'g Details are being issued in the middle of the process Review kitting process Long Term John 1/5/2005 3/15/2005 Most of the detail parts are part of POU inventory. The leftovers will be looked at case by case. Activ- ity GOAL/ OPPORTUNITY ACTION PRIORITY LEADER DATE STATUS/REMARKS
- 36. This report out is how the team publicly commits to management What the goal of the event was What was learned What was accomplished during the event What the outcome is. How much better will we be? Description of the future state Commitment of the action plan VSM Event Step 7 Management Report Out
- 37. Value Stream Analysis Process Phase 3 Accountability Process
- 38. The Accountability Process The momentum for improvement is never higher then at the end of the event when everyone can really see the waste. As a result the accountability process must start immediately following the event (next day). Display the current state map, future state map and future state plan in the the affected area. Commit to a stand up meeting in front of the maps and plan (daily at first, and then less frequent as applicable) Focus on Due date control. Not meeting dates is letting the team down
Editor's Notes
- #4: First were did Lean come from? F. Taylor championed time and motion studies for Henry Ford. Employees were trained to do simple and narrow tasks (and, many businesses still do today). While E. Whitney was perfecting the concept of standard parts for interchangeability during service Henry Ford combined these two systems to define predictable manufacturing for his era. These were times of mass markets, huge production runs, infrequent changes. Toyota learned from this and expanded upon it with the kanban system noticed during a visit to a U.S. grocery store to help them produce cars JIT because of the great cost of raw materials in Japan Then the U.S. took notice during the oil shock and the world took notice soon afterwards
- #10: We usually analyze part of a total value stream. The part that we have most control over. But we must draw the entire picture the whole flow helps us account for all of the major cost and time elements. It show how material and information flows interact and sometimes conflict. And most importantly, keeps us focused on our primary objective, to satisfy the end customer. Once we have the big picture of the whole value stream, we can focus on value as defined in the eyes of the customer, Items flow through a value stream: In the manufacturing industry… In the service industry….. In the admin. Such as in HR…we have internal customers, all of you are HR customers.. The point is there are many immediate customers that are part of a value stream, we create value through adding value to each item as it goes through the value stream.
- #13: Facilitator Notes: Takt time is the primary measurement tool in standardized work. Takt time is the German work for musical meter or rhythm.
- #14: A value stream is all the activities that create value. All of the actions for a whole product family. A value stream starts with raw materials and ends with end customer. It is a visual management picture of the complete process. Most value streams involve several businesses. It includes suppliers and processes outside of this facility. The complete process. You need to think outside our walls.
- #16: *they are visual descriptions of a value stream. They are powerful because they give us a way of communication about what the current value stream is and what it will become in the future. *Value stream analysis is a planning process that uses value stream maps. It has clear boundaries and is usually focused on a part of the value stream. Value stream maps are used to communicate either info. Or material flow. *In a value stream analysis three value stream maps are created: Current state: what is the value stream today. Ideal state: Making the Current State better, map depicting the opportunities for improvement employing lean methodologies. Future State: 6-12 mos. What do we want the value steam to be. From the future state we choose action plans for the next 3-6 months. We chose this action with ideal state in mind or what good looks like. *
- #19: Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels) Read questions? We summarize this definition of what the customer sees as value and attach it to our value stream map.
- #20: Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels) Read questions? We summarize this definition of what the customer sees as value and attach it to our value stream map.
- #22: Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels) Read questions? We summarize this definition of what the customer sees as value and attach it to our value stream map.
- #24: Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels) Read questions? We summarize this definition of what the customer sees as value and attach it to our value stream map.
- #25: Does your map look like this? Discuss. Note the bursts. Long cycle times and inventory amounts are highlighted. Cycle time can be reduced by using 6 Sigma to increase the number of quality parts out of a process. Also used to understand the process and the effects of speeding up the cycle time. High inventory often used to mask quality problems or a result of build up due to bottlenecks.
- #26: Notes:
- #27: Here’s the questions we need to know about our customer’s current state. Break into teams. For a 3 legged process, you may have 4 teams, 1 for each leg of the process and 1 for the supplier/customer loop.
- #28: Notes:
- #29: Notes:
- #32: NotesThese are all the icons: point out some of the key ones… -the customer box -the push arrows -the computer tombstone indicating info is waiting to be processed -the information box
- #35: Now it’s time to get practical. The future state map describes what you really think you’re going to accomplish in the next 6-12 months. Again don’t let this step take too long to create—some parts of the plan aren’t easy to see yet. Focus on the places that are easy to see and plan about. You learn by doing. Don’t try to develop fancy plans. As you develop the future map, focus on the low hanging fruit. Where is obvious impact to inventory?
- #39: Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels) Read questions? We summarize this definition of what the customer sees as value and attach it to our value stream map.