Activity Of The Product

1. Activity Of The Product

2. Activity of the product focuses the “Product or Thing” from “start” to “finish”. “Start” may mean raw materials, arrival at the dock, release of a job to the factory floor, receipt of a request for a proposal or engineering change. “Finish” may mean delivery to the customer, shipment from our dock, or completion of the work by the process. Understand what the product is doing along the way. View the process from the perspective of the “Product or Thing” going through the process. Determine the actual work required to complete processing. Determine how long it takes to do the work. Look for opportunities to improve. Activity Of The Product

3. Activity of the Product or “Thing” What are the Four Things the PRODUCT can be doing? Transport Total Thru-put Time T.I.P.S. Inspect Process Storage Which Element Adds Value? 50 - 80% of the Gain

4. From The Perspective Of The “Thing” There are 4 activities the ‘product’ in any process: our tendency world-class 1. Storage < 18% 2. Transportation < 2% 3. Inspection 0 4. Processing > 80% 70-80% 10% 5-10% 1-5% Note: percentages are of process lead-time. • This is an uncommon thought process; education and work • experience typically have us focus on how ‘busy’ people and • equipment are. • Lean thinking has us initially focus on how busy (with value • added activity) the ‘product’ is.

5. Value Added Activity An activity that Changes the size, shape, fit , form, or function of material or information (for the 1st time) to meet customer requirements. Value Added Required Waste Pure Waste Idle! • Value Added: • Customer Values it • Changes the THING • CORRECT THE FIRST TIME! Non-Value Added Activity All other activities that take time or resources or does not satisfy customer requirements Defining Value

6. Activity Of The Product Product Process Flow Analysis

7. DAY 0 DAY 76 Value Added Steps Stores Non Value Added Steps Wait or Queue Steps (“White Space”) Elapsed Time = 76 Days Total Activity = 4.5 Days How do I get rid of the white space? Non-Value Added 2.5 Days Value Added 2 Days Time Value Chart

8. Time Value Chart “AS IS” ACME product # 12345 Elapsed Time = 187 Days Value Added = 1.83 Days Non-Value Added Activity = 6.54 Days Non-Value Added Wait = 179 Days Time Value Chart “TO BE” Elapsed Time = 20 Days Value Added = 1.83 Days Non-Value Added Activity = 5.17 Days Non-Value Added Wait = 13 Days Rework Loop Rework Rate 2 % Value Added Anodize Inspect Stores Elapsed Time Currently Required Waste Time Value Chart Time Value Analysis reveals the opportunity! • A typical analysis at our facilities indicates that value is being added to the product around 1% of the time “Most of the Lead Time is “White Space” or Product Waiting Time!

9. Wash 4081680-901 4081755-902 100 100 100 100 100 100 1000 1000 1000 4081900 4081910 End Item 4081602 EPA 4081620-90X Spaghetti Chart and Inventory Map The ‘Spaghetti’ Diagram is a very visual tool that can help others see waste and improvement opportunity.

10. Next step: Perform a Kaizen event Goal is to identify and eliminate waste! • Translates to "change for the good". • Think "continuous incremental improvement" of a current standard. • Is a rapidly applied learn/ do approach for Improving. • Determine the improvement need/opportunity, then go and do. • Uses a focused workshop format with internal dedicated resources. • Requires planning and commitment. • Does not have to be a grand 'event'. • Involves the people working in the process.

11. Activity Of The Product