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Lean Manufacturing

Lean Manufacturing. Chapter 2 The Value Stream. "Whenever there is a product for a customer, there is a value stream. The Challenge lies in seeing it”. PHILIP (PHIL) M. CONDIT Chairman and Chief Executive office The Boeing Company.

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Lean Manufacturing

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  1. Lean Manufacturing Chapter 2The Value Stream "Whenever there is a product for a customer, there is a value stream. The Challenge lies in seeing it” PHILIP (PHIL) M. CONDIT Chairman and Chief Executive office The Boeing Company

  2. "There is only one boss: the customer. And he can fire everybody in the company, from the chairman on down, simply by spending his money somewhere else." Samuel M. Walton Wal-Mart Stores, Inc.Chairman & Chief Executive Officer

  3. Why Map A Value Stream? • Lean Manufacturing is: the relentless elimination of waste • Waste is using resource… …without adding value • Waste is all around us, but it can be very hard to see • Value Stream Maps (VSM) help us see waste

  4. Value Streams • A Value Stream is the entire set of activities running from raw material to finished product for a specific product or product family • In a typical enterprise, value streams can intersect with other value streams, branch apart or Y together

  5. Value Stream Maps • Value Stream Maps are powerful visual tools to help see waste and understand the flow of material and information • Especially powerful for illustrating the wastes of Overproduction, Idle Material & Transportation • Value Stream Maps show all actions required to deliver a product…Value Added…as well as Non-Value Added

  6. Other Benefits Of VSM • Provides a big picture perspective that helps focus on improving the whole process, not just optimizing bits and pieces • Shows the linkage between the information flow and material flow • Helps to see across the functional boundaries over which a product’s value stream flows

  7. Other Uses For VSM • To help understand how your business actually works(you don’t understand the current process if you can’t draw it) • A tool for establishing a vision and implementation plan for a new business or product line • A visual tool and common language for talking to others about your manufacturing process

  8. Mapping Process Product Family Define the Value Stream Current State Drawing Understand how the value currently flows Future State Drawing Design a LEAN flow Plan how to get there and execute the plan Work Plan & Implementation

  9. A Reminder The point of value stream mapping is not the maps, but to understand the flow of information and material and see waste ...and then use that understanding and insight to improve your process IMPLEMENT FUTURE STATE!

  10. Value Stream Mapping Current State Maps (CSM)

  11. The Current State Map • A pictorial view, drawn with pencil and paper while observing the process on the factory floor, that shows how material and information currently flow • Creates a baseline for future improvements to be measured against • Clarifies understanding of how the current production system actually operates

  12. Information Flow Start with the Customer INVENTORY ICONS WITH PUSH ARROWS Material Flow Example Customer

  13. C/T=1 sec C/T=39 sec C/O=10 m Uptime =85% Uptime = 100% 27,600 sec. avail. 27,600 sec. avail. Step 7 Acme Steering Bracket Line 3-15-2002 90/60/30 day forecasts State Street Assembly Production Control 6 week forecast Michigan Steel Company Daily Order 18400 pieces/month -12000- L - 6400- R Weekly Fax MRP 500 ft coils MRP Tray = 20 pieces Daily Ship Schedule Weekly Schedule Weekly Schedule 2 shifts Tues. & Thurs. 1x Daily Shipping Ass’y #1 Ass’y #2 Stamping S. Weld #1 S. Weld #2 I I I I I I Staging 1 1 1 1 1 2700 L 1440R 1600 L 850R Coils 5 days 4600 L 2400 R 1100 L 600R 1200 L 640R C/T=46 sec C/T=62 sec C/T=40 sec C/O=1 hour C/O=10 m C/O = 0 C/O = 0 Uptime = 80% Uptime = 100% Uptime = 100% 27,600 sec. avail. 27,600 sec. avail. 27,600 sec. avail. 7.6 days 1.8 days 2.7 days 2 days 4.5 days 5 days PLT = 23.6 days 1 sec 39 sec 46 sec 62 sec 40 sec PT = 188 sec.

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