Principles Of Lean And Value Stream Mapping Overview

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Orientation Tool for Management and SME\'s when kicking off a VSM Session

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  • VALUE - What the customer is willing to pay for VALUE STREAM - All the required steps to produce and deliver a product or service FLOW - A product moving through the value stream with no stoppages, scrap or rework PULL - producing and delivering only when the downstream customer signals a need EXCELLENCE - completely eliminating waste so that all activities create value
  • There are three types condition which will produce waste: Type 1 is Non-Value Added Activity Any Activity that is waste ful and doesn't add value or is unproductive A process may be Non-Value Activity but is required to satisfy a business need or regulation. Type II is Inconsistency Condition of unevenness,– Absence of Balance – Variability or Unpredictable Type III is Unreasonableness Condition of overburden, unreasonableness or absurdity Inflexibility
  • Principles Of Lean And Value Stream Mapping Overview

    1. 1. Principles of Lean and Value Stream Mapping Overview Presented By: Jeff Heaton
    2. 2. Principles of Lean <ul><li>VALUE = To the Customer </li></ul><ul><li>VALUE STREAM = Required steps to deliver the product/service </li></ul><ul><li>Flow = How the product/service flows through the process </li></ul><ul><li>Pull = Producing & delivering a product/service only when requested by the Customer </li></ul><ul><li>Excellence = The eliminating of waste </li></ul>
    3. 3. 3 Conditions Which Produce Waste Within A Process Type I = NON-VALUE ADDED ACTIVITY Type II = INCONSISTENCY Type III = UNREASONABLENESS These Conditions will produce Waste – Independently or in a combination
    4. 4. Original Wastes <ul><li>D efects </li></ul><ul><li>O ver-processing </li></ul><ul><li>W aiting </li></ul><ul><li>N eedless procssing </li></ul><ul><li>T ransportation </li></ul><ul><li>I nventory </li></ul><ul><li>M otion </li></ul><ul><li>E mployee Intelect </li></ul>Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary Unnecessary
    5. 5. What is a Value Stream <ul><ul><li>• A visual tool to help see and understand the flow of material and information. </li></ul></ul><ul><ul><li>• Map of all actions currently required to deliver a Product or Service . </li></ul></ul><ul><ul><li>• Big picture perspective that focuses on </li></ul></ul><ul><ul><li>improving the whole , not optimizing pieces of the process. </li></ul></ul>
    6. 6. Improvement Targets <ul><li>Identify Key Performance Indicators (KPI) and record for the current state performance </li></ul><ul><li>These metrics will be used to quantify and demonstrate improvement in the Value Stream </li></ul><ul><ul><li>Current State vs. Future State </li></ul></ul>
    7. 7. Examples of Improvement Targets <ul><li>Reducing process time. </li></ul><ul><li>Reducing inventory. </li></ul><ul><li>Cost / Resource reduction. </li></ul><ul><li>Increasing available capacity. </li></ul><ul><li>Decreasing space. </li></ul><ul><li>Reducing time spent waiting on process. </li></ul><ul><li>Reducing defects, rework, or repair . </li></ul>
    8. 8. Implementation Planning <ul><li>Achieving future state is the goal of value stream mapping. </li></ul><ul><li>Keys to success... </li></ul><ul><ul><ul><li>Tasks identified and scheduled. </li></ul></ul></ul><ul><ul><ul><li>Tasks assigned to individuals or teams. </li></ul></ul></ul><ul><ul><ul><li>Required support obtained. </li></ul></ul></ul><ul><ul><ul><li>Regular reviews to adhere to plan. </li></ul></ul></ul><ul><ul><ul><li>Knowledge and support from management sponsor and leadership team. </li></ul></ul></ul>
    9. 9. Example VSM Improvement - Before
    10. 10. Example VSM Improvement - After
    11. 11. Palo Verde Is Developing a Lean Culture of Continuous Improvement <ul><li>One Which: </li></ul><ul><ul><li>Produces outputs with fewer defects </li></ul></ul><ul><ul><li>Performs processes in less time and with less effort </li></ul></ul><ul><ul><li>Requires less investment to achieve a given level of production/service capacity </li></ul></ul><ul><ul><li>Uses fewer suppliers </li></ul></ul><ul><ul><li>Needs less inventory at every step </li></ul></ul><ul><ul><li>Reduces worker injuries </li></ul></ul>
    12. 12. Questions?

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