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Lean Enterprise Academy www.leanuk.org
David Brunt 5th June 2007
Lean Enterprise Academy
Supply Chain Forum
Creating a Val...
Lean Enterprise Academy www.leanuk.org
Objectives of Mapping Extended
Value Streams
Seeing the Whole Extended Value Stream...
Lean Enterprise Academy www.leanuk.org
Your Check List
Is top management willing to lead lean?
Is there a common language ...
Lean Enterprise Academy www.leanuk.org
Current State Summary
Quality & Delivery
Demand Amplification
Consumption Map
Geogr...
Lean Enterprise Academy www.leanuk.org
Summary
Supply Chain Ideal State
Future State by Facility
Quality & Delivery
Demand...
Lean Enterprise Academy www.leanuk.org
What is a Plan?
“The documented results of the planning
process”
Consists of: who, ...
Lean Enterprise Academy www.leanuk.org
What is Planning?
“Planning is a process considering”
Goals, objectives
Factors
Opt...
Lean Enterprise Academy www.leanuk.org
What is a Lean Project
Plan?
All the above
A Gantt chart with bookends (goals,
deli...
Lean Enterprise Academy www.leanuk.org
A Format for Planning &
proposing - A3
A3 because it’s done on A3 paper
Originally ...
Acme Stamping Steering Bracket Value Stream Improvement
Background
Acme supplies stamped steel steering brackets (LH & RH)...
Acme Stamping Steering Bracket Value Stream Improvement
Background
Acme supplies stamped steel steering brackets (LH & RH)...
Acme Stamping Steering Bracket Value Stream Improvement
Background
Acme supplies stamped steel steering brackets (LH & RH)...
Lean Enterprise Academy www.leanuk.org
Manage your plan like a
Value Stream
Focus on the timing and deliverables of
the pl...
Project TimingProject Timing Sheet:Project: ofAfter-Sales 1 1
Proposed Start
Actual Start
Proposed Completion
Actual Compl...
Lean Enterprise Academy www.leanuk.org
Ideal State:
Value Stream KPI’s
Current
State
Future
State 1
Future
State 2
Ideal
S...
Lean Enterprise Academy www.leanuk.org
Make your Actions Visible
Glass Wall Mangement
A document board in a highly visible...
Lean Enterprise Academy www.leanuk.org
Using The Scientific Method:
Plan, Do, Check, Act (PDCA)
Plan
Do
Act
Check
Plan
Com...
Lean Enterprise Academy www.leanuk.org
Your Check List
Is top management willing to lead lean?
Is there a common language ...
Lean Enterprise Academy www.leanuk.org
David Brunt 5th June 2007
Lean Enterprise Academy
Supply Chain Forum
Creating a Val...
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Creating a Value Stream Plan

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By David Brunt of Lean Enterprise Academy shown at the Lean Supply Chain Forum on 5th June 2007 ran by Lean Enterprise Academy

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Transcript of "Creating a Value Stream Plan "

  1. 1. Lean Enterprise Academy www.leanuk.org David Brunt 5th June 2007 Lean Enterprise Academy Supply Chain Forum Creating a Value Stream Plan
  2. 2. Lean Enterprise Academy www.leanuk.org Objectives of Mapping Extended Value Streams Seeing the Whole Extended Value Stream Raise consciousness in every firm & function touching the value stream of the enormous waste of time, effort & movement Typical current state 9 out of 10 steps & 99% of elapsed time are wasted Raise consciousness in every firm & function of the effect of its actions on every other firm & function touching the value stream Learn how a value stream team with representatives from every firm can envision a series of Future States & an Ideal State for their shared value stream Learn how the team can progressively implement: A Future State 1 in which smooth, levelled pull & flow are introduced within every facility touching the value stream A Future State 2 in which smooth, levelled pull & frequent replenishment loops are introduced between every facility touching the value stream (eliminating warehousing & cross docking in the process) An Ideal State (providing a North Star for collectively steering towards the perfect value stream with zero waste) by compressing the value stream & introducing right-sized technologies Learn how value stream teams can share costs & gains to create win-win-win outcomes for every value stream participant
  3. 3. Lean Enterprise Academy www.leanuk.org Your Check List Is top management willing to lead lean? Is there a common language across the whole organisation for seeing processes and for root cause problem solving? Is there a common way to manage lean projects – and to sustain the results? Is someone responsible for reconfiguring each product value stream through the facility and beyond? Is there an active policy deployment process based on value stream plans to prioritise and resource them?
  4. 4. Lean Enterprise Academy www.leanuk.org Current State Summary Quality & Delivery Demand Amplification Consumption Map Geography etc. Purpose Select Product FamilySupply Chain Network & VS Selection Alpha Motors Platform A Apex Wheels Beta wipers Epsilon Fuel Pumps Cosmic Brakes Eclipse Engine Computers Gamma Stampers Ampersand Magnets Utopia Castings Michigan Steel Odyssey Fasteners Smith Heat Treatment Current State by Facility PRODN. CONTROL Weekl y Sched ule Prod’n Plan Foreca st Daily Call In Foreca st Weekl y Call In Weekly Suppliers Customer Mon. + Wed. PRESS ASSEMBLY SHIP I I C/T = 30 sec. C/O = 30 min. 3 shifts 2% Scrap C/T = 90 sec. C/O = 5 min. 2 shifts 3% Scrap 600 pieces 2 Day 300 pieces 1 Day 30 sec 2 days 90 sec 1 day Total lead time 3 days VA time 2 mins LH Steering Bracket RH Steering Bracket Instrument Panel Brace Seat Rail Bumper Brackets X X XX X X XX XXX X XX XXX Products BLUES 95% 50% Cumulative % Product RangeCumulative % of Sales Last 1% Supply Chain Current State
  5. 5. Lean Enterprise Academy www.leanuk.org Summary Supply Chain Ideal State Future State by Facility Quality & Delivery Demand Amplification Consumption Map Geography etc. Purpose Select Product Family Supply Chain Network & VS Selection Alpha Motors Platform A Apex Wheels Beta wipers Epsilon Fuel Pumps Cosmic Brakes Eclipse Engine Computers Gamma Stampers Ampersand Magnets Utopia Castings Michigan Steel Odyssey Fasteners Smith Heat Treatment Current State by Facility PRODN. CONTROL We ekl y Sc he dul e Pro d’n Pla n For eca st Dai ly Call In For eca st We ekl y Call InWeekly Suppliers Customer Mon. + Wed. PRESS ASSEMBLY SHIP I I C/T = 30 sec. C/O = 30 min. 3 shifts 2% Scrap C/T = 90 sec. C/O = 5 min. 2 shifts 3% Scrap 600 pieces 2 Day 300 pieces 1 Day 30 sec 2 days 90 sec 1 day Total lead time 3 days VA time 2 mins LH Steering BracketRH Steering BracketInstrument Panel BraceSeat RailBumper Brackets X X XX X X XX XXX X XX XXX Products BLUES 95% 50% Cumulative % Product Range Cumulative % of Sales Last 1% Supply Chain Current State Supply Chain Future State Action Plan
  6. 6. Lean Enterprise Academy www.leanuk.org What is a Plan? “The documented results of the planning process” Consists of: who, why, what, where, when, how? Goals, objectives Deliverables, tasks, actions Timing Responsibilities (& roles) Measures Review process
  7. 7. Lean Enterprise Academy www.leanuk.org What is Planning? “Planning is a process considering” Goals, objectives Factors Options Barriers Deliverables, tasks, actions Timing Responsibilities (& roles) Measures
  8. 8. Lean Enterprise Academy www.leanuk.org What is a Lean Project Plan? All the above A Gantt chart with bookends (goals, deliverables, schedule,review process, responsibilities) Follows the PDCA process Is a contract - a commitment to actually accomplish something by a specific time Ref: John Shook: Leadership for Value Stream Management
  9. 9. Lean Enterprise Academy www.leanuk.org A Format for Planning & proposing - A3 A3 because it’s done on A3 paper Originally used in Quality circles Power lies in the process & thinking behind it An A3 lays out an entire plan (large or small) on one piece of paper It should be visual & concise It should tell a story - upper left to lower right that everyone can understand
  10. 10. Acme Stamping Steering Bracket Value Stream Improvement Background Acme supplies stamped steel steering brackets (LH & RH) to State Street Assembly. The product goes through 5 manufacturing processes & shipping. The customer uses 18,400 pcs/month & requires daily shipments in pallets of 10 trays of 20 brackets. A pallet is either all RH or LH. Current Situation Lead time for steering bracket from coil steel to shipment = 23.6 days. Of 23.6 days, only 188 seconds are spent making a bracket. Large inventories of material between each process. Long changeover times, downtime in welding. State Street Assembly Michigan Steel Co. 1x daily I Production Control Daily Ord er Weekly Fax 6 Week Forecas t 90/60/3 0 Day Forecas t Weekly Schedule Daily Ship ping Sche dule Recommendations Create continuous flow through weld & assembly Establish TAKT time . Base the pace of work through weld & assembly on customer demand. Set new weld - assembly cell as pacemaker for entire value stream. Establish EPE_ build schedule for stamping based on actual use of pacemaker cell & pull steel coils from supplier based on actual usage by stamping. Improve uptime in weld. Establish material handling routes for frequent withdrawal & delivery. Establish new production instruction system with Levelling Box. Analysis Each process operates as isolated islands, disconnected from the customer. Push system, material builds up between each process. Each process builds according to its own operating constraints (changeover, downtime etc.) Plans based on 90 & 30 day forecasts from customer. Weekly schedule for each department. System is frequently overridden to make delivery. Goals Improve profitability of steering bracket value stream. Reduce lead time - 23.6 days to 4.5 days. Reduce inventories: Stamping 7.6 days to 1 day. Welding 6.5 days to 0 days. Shipping 4.5 days to 2 days. Production Control Daily Orde r Daily Order 6 Week Forecas t 90/60/3 0 Day Forecast State Street Assembly Michigan Steel Co. Daily Order 20 OXO X Current State Map Future State Map Deliverables Responsible Review CCF at pacemaker Kaizen each CT to >TT Weld uptime to 100% CO reduction to < TT Pull at pacemaker FG = 2 days KB Matl handling Levelling Box Pull from Stamping WIP = 1 day CO < 10 min Pull from supplier Info flow Daily delivery RM = 1.5 days Action Plan Follow Up Reviews & involvement of related departments TBD. Other functions: Production Control Material Handling, Purchasing, Maintenance, Human Resources, Finance.
  11. 11. Acme Stamping Steering Bracket Value Stream Improvement Background Acme supplies stamped steel steering brackets (LH & RH) to State Street Assembly. The product goes through 5 manufacturing processes & shipping. The customer uses 18,400 pcs/month & requires daily shipments in pallets of 10 trays of 20 brackets. A pallet is either all RH or LH. Current Situation Lead time for steering bracket from coil steel to shipment = 23.6 days. Of 23.6 days, only 188 seconds are spent making a bracket. Large inventories of material between each process. Long changeover times, downtime in welding. State Street Assembly Michigan Steel Co. 1x daily I Production Control Daily Ord er Weekly Fax 6 Week Forecas t 90/60/3 0 Day Forecas t Weekly Schedule Daily Ship ping Sche dule Analysis Each process operates as isolated islands, disconnected from the customer. Push system, material builds up between each process. Each process builds according to its own operating constraints (changeover, downtime etc.) Plans based on 90 & 30 day forecasts from customer. Weekly schedule for each department. System is frequently overridden to make delivery. Goals Improve profitability of steering bracket value stream. Reduce lead time - 23.6 days to 4.5 days. Reduce inventories: Stamping 7.6 days to 1 day. Welding 6.5 days to 0 days. Shipping 4.5 days to 2 days. Recommendations Create continuous flow through weld & assembly Establish TAKT time . Base the pace of work through weld & assembly on customer demand. Set new weld - assembly cell as pacemaker for entire value stream. Establish EPE_ build schedule for stamping based on actual use of pacemaker cell & pull steel coils from supplier based on actual usage by stamping. Improve uptime in weld. Establish material handling routes for frequent withdrawal & delivery. Establish new production instruction system with Levelling Box. Follow Up Reviews & involvement of related departments TBD. Other functions: Production Control Material Handling, Purchasing, Maintenance, Human Resources, Finance. Production Control Daily Orde r Daily Order 6 Week Forecas t 90/60/3 0 Day Forecast State Street Assembly Michigan Steel Co. Daily Order 20 OXO X Current State Map Future State Map Deliverables Responsible Review CCF at pacemaker Kaizen each CT to >TT Weld uptime to 100% CO reduction to < TT Pull at pacemaker FG = 2 days KB Matl handling Levelling Box Pull from Stamping WIP = 1 day CO < 10 min Pull from supplier Info flow Daily delivery RM = 1.5 days Action Plan Background/current situation Historical/organisatio nal/ business context Goal/objective The issue to be addressed Analysis/detailed Current State The specifics of the issues Fishbones Causes 5 Whys Requirements, constraints & alternatives
  12. 12. Acme Stamping Steering Bracket Value Stream Improvement Background Acme supplies stamped steel steering brackets (LH & RH) to State Street Assembly. The product goes through 5 manufacturing processes & shipping. The customer uses 18,400 pcs/month & requires daily shipments in pallets of 10 trays of 20 brackets. A pallet is either all RH or LH. Current Situation Lead time for steering bracket from coil steel to shipment = 23.6 days. Of 23.6 days, only 188 seconds are spent making a bracket. Large inventories of material between each process. Long changeover times, downtime in welding. State Street Assembly Michigan Steel Co. 1x daily I Production Control Daily Ord er Weekly Fax 6 Week Forecas t 90/60/3 0 Day Forecas t Weekly Schedule Daily Ship ping Sche dule Analysis Each process operates as isolated islands, disconnected from the customer. Push system, material builds up between each process. Each process builds according to its own operating constraints (changeover, downtime etc.) Plans based on 90 & 30 day forecasts from customer. Weekly schedule for each department. System is frequently overridden to make delivery. Goals Improve profitability of steering bracket value stream. Reduce lead time - 23.6 days to 4.5 days. Reduce inventories: Stamping 7.6 days to 1 day. Welding 6.5 days to 0 days. Shipping 4.5 days to 2 days. Recommendations Create continuous flow through weld & assembly Establish TAKT time . Base the pace of work through weld & assembly on customer demand. Set new weld - assembly cell as pacemaker for entire value stream. Establish EPE_ build schedule for stamping based on actual use of pacemaker cell & pull steel coils from supplier based on actual usage by stamping. Improve uptime in weld. Establish material handling routes for frequent withdrawal & delivery. Establish new production instruction system with Levelling Box. Follow Up Reviews & involvement of related departments TBD. Other functions: Production Control Material Handling, Purchasing, Maintenance, Human Resources, Finance. Production Control Daily Orde r Daily Order 6 Week Forecas t 90/60/3 0 Day Forecast State Street Assembly Michigan Steel Co. Daily Order 20 OXO X Current State Map Future State Map Deliverables Responsible Review CCF at pacemaker Kaizen each CT to >TT Weld uptime to 100% CO reduction to < TT Pull at pacemaker FG = 2 days KB Matl handling Levelling Box Pull from Stamping WIP = 1 day CO < 10 min Pull from supplier Info flow Daily delivery RM = 1.5 days Action Plan Recommendations What will we do to enact the Future State Measures/Review How we will know if the actions make the planned difference Plan/Schedule What to do, actions, deliverables
  13. 13. Lean Enterprise Academy www.leanuk.org Manage your plan like a Value Stream Focus on the timing and deliverables of the plan Manage the exceptions Ask “why” things went wrong in order to address root cause Make sure someone is responsible Watch that you perform reviews (even when things go wrong)
  14. 14. Project TimingProject Timing Sheet:Project: ofAfter-Sales 1 1 Proposed Start Actual Start Proposed Completion Actual Completion Review Project Owner: On Target No Deliverable Metric Resp. Target Date. Reviews 1920 27 5 121369 16 23 3022326 2 9 1619125 Value Stream Map 4/2/03DBMap Drawn- Develop C & F State1 4/2/03DBAction Plan- Identify Loops & Action Plan2 Technician HB Takt 3 techs - Develop flow to Takt & 30min cycles3 ST1 car wip- Develop pull system for Techs4 STProductivity- Eliminate searching for tools5 23/2/03STProductivity- Eliminate waiting for W/S Control6 5/5/03JSKProductivity- Eliminate waiting for authority7 Booking & Direct Dialogue 23/2/03DBLead Time- Develop pro-active booking process8 23/2/03DBOn-time Del- Develop a planning board9 9/3/03JSKOn time del- Develop process to highlight a/w10 Parts 5/6/03GHProductivity- Develop pull for parts11 5/6/03GHProductivity- Pre-pick parts for each job12 Valet 10/7/03JWC/T= 20m- Valet to standard cycle time13 Handover/Post-Handover 10/7/03HBSpaces- Handover parking for finished cars14 10/7/03HBSlots- Allocate handover times15 10/7/03HBDebtors- Minimise debtors list16 5/2 5/3 Jan Feb Mar Apr May 3/4 7/5 Dave Johnson Behind Target Trouble
  15. 15. Lean Enterprise Academy www.leanuk.org Ideal State: Value Stream KPI’s Current State Future State 1 Future State 2 Ideal State Total Lead Time Value % of time VA Steps % Inventory Turns Quality Screen Delivery Screen Demand Amp’ Index Product travel distance 2.8 days 15.8 days 23.9 days 44 days 0.08% 12 % 5 400 1.5% 8 0.6% 7 0.16% 15% 9 200 27% 8 7 21% 14 50 3 5300 79 2.5 5300 5 4300 1 1 525
  16. 16. Lean Enterprise Academy www.leanuk.org Make your Actions Visible Glass Wall Mangement A document board in a highly visible area Current & Future State maps Action Plan with timelines Basic few metrics Varies from project to project QDCP often useful as a framework Other documents Layouts, communications etc.
  17. 17. Lean Enterprise Academy www.leanuk.org Using The Scientific Method: Plan, Do, Check, Act (PDCA) Plan Do Act Check Plan Communicate, scope, discuss, set targets & agree the plan Do Collect & analyse data, carry out the work Check Are we performing to plan? If not, why not? Act (Standardise) Standardise to sustain the gains
  18. 18. Lean Enterprise Academy www.leanuk.org Your Check List Is top management willing to lead lean? Is there a common language across the whole organisation for seeing processes and for root cause problem solving? Is there a common way to manage lean projects – and to sustain the results? Is someone responsible for reconfiguring each product value stream through the facility and beyond? Is there an active policy deployment process based on value stream plans to prioritise and resource them?
  19. 19. Lean Enterprise Academy www.leanuk.org David Brunt 5th June 2007 Lean Enterprise Academy Supply Chain Forum Creating a Value Stream Plan
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