Value Stream Mapping

1. Value Stream Mapping

2. 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

3. 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”

4. 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

5. Information Information Materials Production Control Inputs – Processes - Outputs A VALUE STREAM

6. CREATE THE CURRENT STATE Value 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. Material Flow ASSY TEST PACK SHIP VSM Direction

7. 2.5 days 1.5 days 62 days 1.5 days 1.5 days 1 day 1 hr 1 hr 8 hrs 18 hrs CURRENT STATE VSM Total cycle time = 403 Days Processing time = 30 Days

10. 4.2 min reduction in door-to-balloon time

12. AEROSPACE OFFICE VSM

13. VALUE STREAM MAP SYMBOLS

15. 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

16. PUSH ARROW Represents a process connection in which the UPSTREAM process does not care if the DOWNSTREAM process is ready for its output.

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

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

19. Customers Suppliers Speed - Accuracy ANALYZE THE CURRENT STATE Use Tools of Kaizen To Reduce Variation & Create FLOW…….. 5s / Visual Workplace Pull Kanban TPM Inputs – Processes - Outputs FLOW Quick Change Over Standard Work Poke-Yoke Leading Change Team Skills Hoshin Planning

20. FUNCTIONAL COST-BASED ORGANIZATION WORK I WORK I WORK I TIME = WEEKS THE VALUE STREAM

21. Overproduction Motion Waiting Waste of resources beyond what is needed to meet customer needs Rework Transportation Inventory Overprocessing 7 TYPES OF NON-VALUE-ADDING ACTIVITIES

22. SEVEN COMMON WASTES Transportation Inventory Motion Waiting Over Processing Over Production Defects Alternate Terminology 8 Wastes - Adding “People’s Talents” as the eighth waste

23. If you cannot find the waste, look for activities that actually add value to the product; everything else is waste HOW CAN WASTE BE DETECTED? Process Flow or Value Stream Map

24. ELIMINATION OF WASTE: WHAT CAN YOU DO? Over-production • Reduce changeover times • Eliminate anticipatory production (producing in advance of customer demand) 1 • Balance workload of equipment/people (e.g., by debottlenecking equipment) • Fill waiting time with other activities • Optimize interfaces with internal/external suppliers 2 Waiting • Load once Transpor-tation 3 Over-processing • Provide standards • Review current process design (e.g., value analysis) 4 • Define necessary inventory levels • Improve process reliability 5 Inventory • Ensure proper sequence of work • Install mistake-proofing steps (quality control) 6 Rework • Arrange tooling/equipment • Design ergonomic workplace 7 Motion

25. TAKT TIME • Rhythm or Beat • Time and Volume Relationship • H (S) / D • Sets maximum capacity of line • By Process!

26. ROUGH CUT RESOURCE PLANNING Formula: STw / TAKT • STw = Ʃ(ST x D) ƩD • First pass resources only! • Calculate by process • Uses for Simulation Modeling

27. 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)

28. Waste Incidental activity Elements of work Value-added activity OUR OBJECTIVE IS TO REDUCE WASTE …. ….and increase the percentage of value added, in order to reduce cost

29. FLOW PROCESSING ? ? ? WORK I I I WORK WORK TIME = DAYS THE VALUE STREAM

30. IMPROVING WORK NON VALUE ADDED ERRORS STREAM- LINE TIME = HOURS THE VALUE STREAM

31. 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

32. LEAN TOOLS 6S Set-Up Reduction Value Stream Improvement Process (VSM) Kanban- Pull Systems Office Kaizens Flow Manufacturing The one common element: these tools help us eliminate waste from our processes.

33. 1 day .5 days .5 days .5 days 10 days 2 days 3 days 3 days FUTURE STATE VSM Total cycle time = 21 Days Processing time = 18 Days

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

39. 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

40. 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

41. LET’S JUMP IN ?

42. Questions Paul Kobishop pkobishop@yahoo.com