Work Study & Value Analysis
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Work Study & Value Analysis

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  • 1. Overproduction Waste from overproduction is one of the greatest wastes commonly found in manufacturing operations. It is created by producing more products than are required by the market. When the market is strong, this waste may not be very noticeable. However, when demand slackens, the overproduction creates a very serious problem with unsold inventory and all the by-products associated with it 2. Transportation The transportation and double or triple handling of raw and finished goods are commonly observed wastes in many factories. Often the culprit of this type of waste is a poorly conceived layout of the factory floor and storage facilities, which can mean long distance transportation and over-handling of materials. This situation is aggravated by such factors as temporary storage, or frequent changes of storage locations. In order to eliminate transportation waste, improvements must be made in the areas of layout, process coordination, methods of transportation, housekeeping and general organization or the operation 3. Motion Waste of motion can be defined as whatever time is spent NOT adding value to the product or process: Movement ≠ Work This type of waste is most often revealed in the actions of the factory workers. It is clearly evident in searching for tools, pick and place of tools and parts kept out of immediate reach of the work station, and especially by the walking done by one operator responsible for several machines. All of these can be eliminated by carefully planned layout and fixture selection.  4. Inventory Inventory waste is closely connected with waste from overproduction. That is, the overproduction creates excess inventory which requires a list of extras including handling, space, interest charges, people, and paperwork. Because of the often substantial cost associated with extra inventory, rigorous measures should be taken to reduce inventory levels 5. Waiting Unlike waste from overproduction, waste from waiting is usually readily identifiable. Idle workers who have completed the required amount of work, or employees who spend much time watching machines but are powerless to prevent problems are two examples of the waste of waiting and are easy to spot. By completing only the amount of work required, the capacity - both speed and volume - of each work station can be monitored. This will result in using only the machinery and personnel required for the minimum amount of time to meet production demands, thereby reducing waiting time. 6. Over Processing The processing method may be another source of waste. In observing this type of waste, one often finds that maintenance and manufacturability are keys to eliminating it. If fixtures and machinery are well-maintained, they may require less labor on the part of the operator to produce a quality product. Regular preventative maintenance may also reduce defective pieces produced. When the principles of design for manufacture (DFM) are employed and manufacturability is taken into consideration in product design, processing waste can be reduced or eliminated before production even begins. 7. Defects Waste from product defects is not simply those items rejected by quality control before shipment, but actually causes other types of waste throughout the entire manufacturing process. · Waiting time is increased in subsequent processes, increasing costs and lead times  · Rework may be required to make the part usable, increasing labor costs  · Additional labor may be required for disassembly and reassembly  · Additional materials may be needed for replacement parts  · Sorting the defective from acceptable parts requires additional labor  · Scrapping the defective pieces wastes both the materials and the work already added  All of the above are serious, but pale in comparison to the results when customers discover defects. Not only are extra warranty and delivery costs incurred, but customer dissatisfaction may result in loss of future business and market share. To eliminate product defect waste, a system must be developed to identify the defects (or the conditions that cause the defects) so that anyone present may take corrective action. Without this preventive system in place, other time-saving efforts are futile.  There is no advantage in using a highly automated machine to make defective parts faster.
  • This is continuing the prev example. Again the view is at a high level as perceived by customer. At this level itself there could be wastes that can clearly be identified and eliminated. In the next iteration one could look at each of the value add blocks and identify waste. This would be the continuous improvement cycle.

Work Study & Value Analysis Work Study & Value Analysis Presentation Transcript

  • Quality ManagementWork Study and Value Analysis
  • Work Study (Time and Motion Study)• Why should work be studied?
  • Method Study• Selection of Jobs• Recording of facts• Critical Examination• Development and selection• Installation• Maintenance
  • Which Jobs to be examined and selected Inventory Defects up High Holding maintenance ces resour Complex High cost Specification sHigh stressLowproductivity
  • Thoughts “Anyone who has never made a mistake has never tried anything new.” --Albert Einstein (1879-1955) Discovery consists in seeing what everyone else has seenand thinking what no one else has thought.”--Albert Szent-Gyorgi, 1937 Nobel Prize in Physiology and Medicine
  • Create process flow to surface problems  Deliverable as seen by Customer, which is usable Define Value  Defined in terms of ‘whole’ product/Service  Critical starting point  Specific to Project/Customer  Current state map Draw Value stream mapping  Downstream to upstream  Wait times, cycle time and lead times captured  Both’ value flow’ and ‘information flow’ to be captured  Overproduction, transportation Identify Value added (VA) &  Motion, Inventory Non-Value added (NVA)  Waiting, Over-processing steps  Defects, Unused employee intellect  Wasteful steps eliminated  De-bottleneck e.g., boundaries of jobs, functions, firms  Specific work practices, tools questioned Remove wastes, bottlenecks Optimizing value added steps Process Cycle Efficiency = Value Added Time /Total Time 7 CONFIDENTIAL© Copyri
  • Customer Value Proposition • Has to be from a perspective of “how the customer would view it” • Customer should be able to “touch and feel” the value generated • Has to be independent of current processes • Does not have to be feasible or achievable at the outset
  • Value Examples– Value in case of Toyota is every car delivered– Value in case of Bank is every Customer serviced– Value in case of Logistics group is each Customer supplied material made available to the project teams– Value in case of recruitment group is each human resource made available to the project teams– Value for a software maintenance project is every bug fixed– Value for an application development project is the functionality delivered.
  • What is the Value Stream?SUPPLIERS YOUR PLANT OR BUSINESS CUSTOMER TO END USER TOTAL VALUE STREAMSee the Whole Process from Start to Finish
  • Go See Yourself
  • An example Value Stream
  • Guidelines for Mapping Start at the customer and work backwards Walk the actual flows Don’t Map the Organization but the flow through it Don’t be too detailed this is an overview Use pencil not power point…quick and crude
  • How to Create a Value Stream Map ?• Identify a representative customer…gather data about typical order quantities, delivery frequencies, product or service variations…..this will help calculate the takt time• Map the value stream….start with customer requirements• Add production flow, material flow, information flow and other icons to the value stream map• Create a lead time chart at the bottom of your value stream map showing the VA and NVA lead times• Review the map with all who work in the value stream to ensure you have not missed any activity
  • Sample Nomenclatures/IconsICON / SYMBOL REPRESENTS • Data capturing as part of Value stream mapping PROCESS STEP Value creating • Cycle time (C/T) step – Time taken by the engineer to go through all of their work elements to complete the process step before repeating the same Outside sources: Customers, • Value-Added Time (VCT) Outside suppliers, other Sources – Time of those work elements that actually departments transform the product in a way that the Estimated size = customer is willing to pay for 100 LOC Data related • Total time or Lead time (TT) to the process – The time it takes one piece to move all the way through the processes or a value stream, from start to finish. Inventory I • Changeover time (C/O) – Time taken for changing over from one set-up 2 BUGS/DAY to another set-up Value flow • Process cycle efficiency (PCE): Process Manual information Entitlement flow – Percentage of Total value added time to Electronic information Total time flow D Delay
  • Sample Nomenclatures/Icons – Material Flow Push Movement of material Pull Movement of material Automated Movement of material I Inventory 300 pieces 1 day FIFO FIFO( First In, First Out)
  • Sample Nomenclatures/Icons – Information Flow Manual Information Flow Electronic Information Flow Weekly Schedule Information Type 20 Production Kanban Signal Kanban
  • Sample Nomenclatures/Icons – Manufacturing Error Proofing D Q C Quick Change Over Constraining Operation Visual Management -V= 3 shifts 5% scrap Cycle time Data Box capacity
  • Some useful Tips !• Do not work from Memory…observe in ACTION• No judgments and decisions…record exactly what you see• Use Post it Notes as they can easily be rearranged• During data collection, identify if information is communicated in real time or in batches. If it is in batches, show the batch size and frequency
  • The example
  • Eight categories of waste Waste categories Possible SourcesOverproduction Ineffective planning, work allocation and schedulingTransportation Lack of reliable processesMotion Ineffective planning, work allocation and scheduling Inconsistent work methods Lack of workplace organizationInventory Ineffective planning, sequencing & schedulingWaiting Long setup time (for analysis and testing) Lack of workplace organizationOver-processing Ineffective planningDefects Lack of trainingUnused employee Ineffective staffing processesintellect Ineffective induction processes Wipro Confidential 21
  • LEAN - MAPPED TO WASTE ELIMINATION WASTE TYPE WBPO MAPPING SOURCES SOLUTIONThe Waste of Defects – Any Errors in Calls Skill Level , Hiring Quality Standardization , Automation,work that contains errors made/ processing Training, Adequacy in Mistake Proofing. Knowledgeleading to Rework & Scrap done Defined Processes Management , Aids to define what is goodThe Waste of Inventory – Calls not closed in Ineffective Scheduling , Standardize Work LocationsMore Information than what the first attempt, Planning ,Sequencing. and the amount of Datais needed for the process, Transactions in /Information to be Stored. Storing Un needed DataPartially done job personal Queues /Files , Extra Supplies Produce only what the partially completed downstream Customer needsThe Waste of Over Giving more Just in case thinking Create Visual Controls , CreateProduction – Producing too information that ,Expanding the Work Scope, Work Place Standards.much information or needed in Work allocation , In effectiveProducing earlier than calls/Filling in Planning.needed, Too much Details. information not used in forms
  • LEAN - MAPPED TO WASTE ELIMINATION WASTE TYPE WBPO MAPPING SOURCES SOLUTIONThe Waste of Motion / Searching of Call flow Lack of Proper Work Place 5S for Work Place OrganizationTransportation–Transportation diagrams ,other Organization , Lack of and Easy access of Information,Searching for Information information for access/ Optimization of Floor Layout , Centralized Storagethat is regularly used. Need to move from Temporary storage and FilingMoving information and seat to get access tomaterials from place to forms for data entryplace etc Absenteism,Queuing of Work/ Work Load Balancing, WorkThe Waste of Waiting – Waiting for answer from Place Organization, In creasedWaiting for people, agent , Being in the call Information Availability Factor of CustomerResponse ,Data queue for getting Lack of Work Place Agents, Reduction of AHT,,Information information (hold) Organization ,TAT or Cycle Improved Utilization time is highThe Waste of Over Wasteful steps in call Ineffective Planning, Value Added Reviews , ValueProcessing – Providing flow which do not add Sequencing, Over added Process Steps Sign Offsmore than what the value. Checking .Customer wants.
  • Critical Examination
  • How to identify value/waste? Who else could perform the same Who? function?Activity 1 What? When else could When? (Function) the function be achieved? Why? What other Are there other Any other reasons functions does the ways to achieve why the function is activity achieve? the same function? required? How? Who? Activity 2 What? (Function) When? Why?
  • 5 Whys• An RCA technique – simple yet powerful Example - Logistics Project in WT• Ask why five times CSM imports Cycle time is high Problem Statement : More number of issues reported in Acceptance test Level of Problem Corresponding level of Material landing to Deployment countermeasure cycle time is high Grasp the situation Shipment landing to 1 More number of FD and DD Fix the bugs and regress filing documents with WHY? bugs uncovered in AT thoroughly. Customs cycle time 2 Inadequate reviews in upper Quality team to ensure phase (FD, DD & CD) sufficient reviews before Physical doc WHY? intermediate deliveries. movement between Frieght 3 More time spent for coding Quality team to ensure review forwarder, and less time for reviews quality and coverage of all Wipro, Customs WHY? and testing. modules. Agent and Cause Customs taking Investigation time 4 430 KLOC added with the PM should ensure that effort Functions WHY? same schedule planned for and schedules are re-visited are not co- initial 250 KLOC. when there is an increase in located KLOC. Deputed person from Wipro to CHA 5 Initial estimations have gone Re-estimate before the start office to reduce document flow WHY? wrong. Re-planning of of the project and validate the effort and schedule not initial estimates and plan Self bonding approval from STPI done. accordingly. Shift implementation Wipro Confidential 26
  • Generating Ideas• Best practices and recommendations – standard solutions that have been known to work for standard problems (Lean, Theory of Constraints)• Brainstorming – Generate new ideas because many times best practices don’t work• Modeling/ Simulation – Get insights that cannot be reached through mere manual inspection
  • Developing and Selecting Ideas• Feasibility (technical and economic) – Review – Prototype• Risk• Value (Impact) – Performance – Quality – Cost
  • Installation and Maintenance• Roadmap and Plan• Management buy-in – Horizon of change – Value of change• Worker buy-in – Demonstrations – Incremental changes from existing process• Maintenance – Monitoring – Audit – Continuous Improvement
  • Future State Value Stream
  • Process cycle efficiency – traditional bank example STATEMENTS CLEARING DD Get Wait in Wait in Deposit Wait in account Get a DD queue status queue cheque queue Value Add 2 mins 3 mins 5 mins TIME 15 mins 12 mins 15 minsNon Value Add Process cycle efficiency : Value added/ Total time = 10/52 = 19%
  • Process cycle efficiency- Lean Bank TELLER TELLER TELLER Wait in Get account status queue Deposit cheque Get DD Value Add 2+3+5 =10 mins 12 mins TimeNon Value Add Process cycle efficiency : Value added/ Total time = 10/22 = 45%
  • Example: HP-Sagara Value stream mapping for HP-Sagara (Current state map): I Bug assigned by OC assigns the PM/PL assigns Customer to OC bug to PM/PL Reproduction of the bug to PE s Reproduction of Analysis Analylsis bugReproduction of Analysis bug bug Build by Code AdditionalMake release Smoke test Bug fixing and Build review testing by Bug fixing andto Customer by tester UT Bug fixing and engineer for P1 one tester UT UT defects I I Bottlenecks identified I Inventory
  • Value stream mapping – HP-Sagara 5S for lab set-up: ready made configurations & reduced set- Standardization: up time work flow for Bug assigned by OC assigns the analysis PM/PL assigns Customer to OC bug to PM/PL Reproduction of the bug to PE s Reproduction of Analysis Analylsis bugReproduction of Analysis bug bug Work allocation model to achieve resource levelling Visual board : Track and control the progress Weekly Tested bug Code reviewMake release Smoke test Bug fixing and build by check-in and clearance Bug fixing andto Customer by build UT Bug fixing build for build for UT UT engineer engineer In-station quality: Code review just after fixing bugs. UT scenarios discussed during this session to avoid reworkAdditional testing done by a single tester against 10 engineers fixing bugs has been removed.Additional testing is done by individual project engineers themselves Productivity Improvement from 1.3 bugs/person/week to 2.0 bugs/person/week
  • New Process Map Processing staff to Download the bank download bank book report from SAP  statement dump online thru bank net portal  X Waiting time X :- 3 Hrs Down to Manually reconcile 5 Min. each item:- 2 Hrs Down to 15 Min. Reconciled items are Reconcile bank book &  auto cleared in SAP & the open entries  bank statement by using various Ms-excel X E-mail sent to all concerned:- 30 Min. uploaded to the toolkit formulae’s & macro’s Down to 5 Min Features of online auto X Manual Transaction Down to feeding :- 30 Min. 3 Min. Online monitoring & control checks like duplicate entries, auto e-mail trigger  follow-up thru visual controls displays, early  X X with escalation matrix used Follow-up mails:- 30 Min. warning systems used Waiting time Waiting Time:- 5 Hrs :- 3 Hrs Down to 5 Min Eliminated Access right given to all concerned person to view all the   X X Rework in case of Supervisor BRS located at the central server defective:- 1 Hr. Eliminated Review :- 30 Min. Eliminated Wipro Confidential 35
  • Value stream, NVA identification Activity CT VT 59% Process Cycle Efficiency Incident assigned  0 0 Total Time (TT) = CT + Inventory time Problem study  1.64 1.64 = 33 hours Replicate problem Efficiency = VT/TT = 19.4/33 = 59%  5.8 3 Problem analysis Review analysis  4.1 3.6  2 2 Challenges Rework analysis  Detailed data about incidents not Magic update of analysis  0.62 0.62 available in incident status sheet Wait for code lock release  1.75 1 or other metrics sheet  Data was collected by Code  1.5 0 impersonating as incident and Test  1.5 1.5 interviewing people who worked Review code on sample incidents  4.1 4.1 Rework code  0 0 Check-in code Benefits Wait for label  0 0  Uncovered hidden bottlenecks Create tinfo  0.5 0.5  Insight into what really happens  7.5 0 in the field Magic update  Flow of valuable information to TOTAL  0.5 0.5 make better decisions  1.5 1  More blocks in value stream provide more opportunities to  33 19.4 drill down and eliminate waste Wipro Confidential 36
  • Information Spaghetti (Pre Lean) 7. Mail fo contrac r Cust / tr t cr eation r 23 ing fo il ask 2. Ma OW 5. Mail asking for S Estimates / Resource Loading 1. Mail Confirming w-up 8. Follo SOW 8. Follow-up signed for signed SOW Project Win f or VL 3. Draft SOW 4. Draft SOW22. Send STD For Review Documents 10. Mail for DM Project Audit ability DAM / 6. SOW Review 9. Mail confirming Project Win SQA Comments 12. SOW for 23. Feedback on Approval Auditability, eCUbe, ,iPAT 11. Customer 14. R 18 e Creation L oa d s ou r c e .Fo ing Sh PP llo eet 17 w- ba .. S 18 for bas up P se OW .F W lin 15. Org 15. Org 20 ecti ecti 13. Approval to Ob Ob Central oll e . P 0. v e v e Structure Structure j j ow P Start Project 2 M PM s Create - up Create OPS eli s for 21. Ask for STD ne Documents FINANCE 16. PM Assigned 19. PM Assistance for PP Baseline Problem Areas / Waste
  • (Post Lean) This Step will be eliminated soon 23-12+7=18 Mail asking for formal Handover 1. Mail Confirming Project Win Formal Project Handover using VL templateCentral DocRepository 10. Mail for DM Project Audit ability DAM / SQA 6. SOW Review Comments 11. Customer Creation ding 12. SOW for L oa ou rce t Approval Stru 15. O Re s S h e e c tu r g Pr re C oj Kit rea 18 ec te Central tH .F 13. Approval to Object oll O 20. PM PP for Start Project ow OPS ba - up se ives lin FINANCE e 16.PM Assigned 19. Assistance for PM PP Baseline Formal Project Kick Off
  • HP - Information Flow Spaghetti Diagram PM/PL Test Engineer Build Engineer o nf e tI r c en Project ou m Engineers es uire R q Onsite Re - Wipro Coordinator Other Bu dun Re g HP Projects o Inf Al dan In Wipro lo t In on ca ati tio fo c n: llo CPE Defects gA NP Bugs ATM Manager: Defect tracking Bu Test Manager fo Singapore InHP - Vancouver tool n tio ca ifi ar Cl CPE Defects Manager CPE Defects - Boise Manager - HP CPE Defects CPE Defects Manager – Manager – HP, San Diego Vancouver Wipro Confidential 39
  • HP – Improved Information Flow Build PM/PL Engineer o nf e tI r c en Project ou m Engineers es uire R q Onsite Re - Wipro Coordinator Other HP Projects o Inf In Wipro on ati t en c qu llo CPE Defects fre gA NP Bugs ATM Manager: ss Defect tracking Bu Test Manager Singapore -leHP - Vancouver tool fo In n io at c ifi ar Cl CPE Defects Manager CPE Defects - Boise Manager - HP CPE Defects CPE Defects Manager – Manager – HP, San Diego VancouverRouting bugs thru’ defect tracking tool; mandatory info captured for bugs; visual monitoring Wipro Confidential 40
  • BANK RECONCILIATION PROCESS Bank Reconciliation Non-standardized Manual transactions time consuming High volume of transactions Average time per reconciliation – 120 minutes Variation amongst individuals – 30 -180 minutes Average Time per reconciliation = 30 minutes Variation amongst individuals = 20-45 minutes 72% time crashed! CONFIDENTIAL© Copyright 2005 Wipro Ltd Wipro Confidential 41
  • • How to increase the overall value flowing to customer?• Where in the process is maximum value getting created, where is it minimum?• How to multiple processes work together to generate more value than the sum of individual processes?• Is value flowing at a rate that the customer is comfortable with?
  • What is the difference between Productivity and Quality?