Value Stream Mapping by Operational Excellence Consulting

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Value Stream Mapping is a Lean technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer. Understanding the complete value chain of a product or service is a fundamental part of a Lean enterprise and the first step in beginning a Lean implementation program.

Value Stream Mapping allows organizations to understand where their resources are tied up in attempting to deliver a product or service to their customers. After identifying and analyzing where the waste are, you can then develop and implement future state maps to improve on their key performance indicators.

OBJECTIVES

Create a value stream map for both the current and future states
Develop a data collection plan for the value stream map
Conduct end-to-end assessment of value-added versus non-value-added activities
Scope opportunities by framing project problem statements based on identified waste
Prioritize projects based on strategic objectives
Develop action plan to achieve the future state

CONTENTS
​​
Overview of Lean Thinking
Introduction to Value Stream Mapping
Identify a Value Stream
Create a Current State Value Stream Map
Analyze Value & Waste
Assess Opportunities
Create a Future State Value Stream Map
Develop an Implementation Plan

To download this complete presentation, please go to: http://www.oeconsulting.com.sg


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Value Stream Mapping by Operational Excellence Consulting

  1. 1. © Operational Excellence Consulting. All rights reserved. Value Stream Mapping
  2. 2. © Operational Excellence Consulting. All rights reserved. 2 Objectives Upon completion of this workshop, you will be able to: • Create a value stream map for both the current and future states • Develop a data collection plan for the value stream map • Conduct end-to-end assessment of value-added versus non-value- added activities • Scope opportunities by framing project problem statements based on identified waste • Prioritize projects based on strategic objectives • Develop action plan to achieve the future state Copyrights of all the pictures used in this presentation are held by their respective owners. NOTE: This is a PARTIAL PREVIEW. To download the complete template, please visit: http://www.oeconsulting.com.sg
  3. 3. © Operational Excellence Consulting. All rights reserved. 3 Outline 1. Overview of Lean Thinking 2. Introduction to Value Stream Mapping 3. Phase 1: Define Product Family 4. Phase 2: Document Current State 5. Phase 3: Design Future State 6. Phase 4: Create Implementation Plan 7. Summary
  4. 4. © Operational Excellence Consulting. All rights reserved. “We must always keep in mind that the greatest waste is the waste we don’t see.” — Shigeo Shingo, a Japanese industrial engineer and expert on the Toyota Production System
  5. 5. © Operational Excellence Consulting. All rights reserved. 5 Lean Principles 1. Specify value from the customer’s perspective 2. Identify the value stream for each product/service family 3. Make the product/service flow 4. Deliver when the customer pulls from your operations (just in time delivery) 5. Manage towards perfection Source: Lean Thinking by James P. Womack and Daniel T. Jones Specify Value Identify Value Stream FlowPull Perfection Principles
  6. 6. © Operational Excellence Consulting. All rights reserved. 6 • Value Stream - All of the activities, required to fulfill a customer request from order to delivery. Value Stream Defined Process 1 Process 3Process 3 Value Stream Customer Request Customer Receipt
  7. 7. © Operational Excellence Consulting. All rights reserved. 7 Why Value Stream Mapping? • To set strategy before diving into tactics • Visualize the process at multiple levels • Enables us to see the flow and sources of waste • Provides a common language for analyzing processes • Provides a blueprint for creating flow and implementing Lean concepts and techniques throughout the entire value stream
  8. 8. © Operational Excellence Consulting. All rights reserved. 8 • Creates an end-to-end view of the system • Demonstrates interaction between material/work and information flow • Provides a common visual language for understanding a complex system Supplier/ Customer Management Control Customer Work & Information Flow Information flow Value stream mapping provides an overview of the end-to-end business process
  9. 9. © Operational Excellence Consulting. All rights reserved. 9 Value Stream Mapping Process Create Implementation Plan Design Future State Document Current State Define Product Family  Define and scope problem  Pick product family  Determine VSM objective and benefits  Create VSM charter  Map current state value stream  Quantify current state value stream performance  Analyze and identify improvement opportunities  Develop future state value stream map  Prioritize improvement projects  Develop implementation plan  Seek management approval  Implement the plan and monitor progress 1 2 3 4
  10. 10. © Operational Excellence Consulting. All rights reserved. 10 Value Stream Mapping Symbols Symbol Name Description Process Represents a process or operation through which the material flows. Usually, detailed process steps are not shown unless there are significant inventory build up or batch transfers. External Sources Represents the supplier or the customer. The supplier is the start point and it is usually placed on the upper left of the map. The customer is the end point and it is usually placed on the upper right. Shipment Represents the transportation of materials from an external source or finished goods to the customers.
  11. 11. © Operational Excellence Consulting. All rights reserved. 11 Value Stream Mapping Symbols Symbol Name Description Operator or Employee Represents operator(s). The number of available operators is shown below the symbol. Push Arrow Represents the movement of materials from one process to another. It is used when the previous process ‘pushes’ materials to the next process regardless of whether it is needed by the next process. Material Receipts & Shipments Represents movement of finished goods to the customer. It can also be used to represent movement of raw materials from the supplier to the factory.
  12. 12. © Operational Excellence Consulting. All rights reserved. 12 Scoping: Define a Product FamilyProducts A 321 B 4 Processes Product family C D E 5 6 7 8 9 10 Machining Drilling Assy* Pack*Weld. F X X X X X X X X X X X X X X XX X X X X X X X X X * The two work stations at assembly and packaging respectively are similar. Therefore they are considered as one work station in this analysis. Product family: • The characteristics of a product family are that the products go through the same – or nearly the same – processes (same flow) and that the products have similar process times. Group Product Families by similar downstream processes, steps or equipment
  13. 13. © Operational Excellence Consulting. All rights reserved. 13 Practice Tips • Allocate sufficient time for the VSM event. A mapping takes 1-3 days depending on the size and the complexity of the value stream. • Get all interested parties to participate in the mapping with their knowledge and inputs. This also commits all parties to the change and makes for a smoother implementation.
  14. 14. © Operational Excellence Consulting. All rights reserved. 14 Step 1 – Label Map • Label your map in upper right corner  Value stream name  Current or future state  Customer demand (volume of work per time period)  Takt time (if relevant)  Date  Facilitator’s name (and/or team) Step 1: Label Map
  15. 15. © Operational Excellence Consulting. All rights reserved. 15 Takt Time • The heart of “One-Piece Flow” is takt time • Takt = German name for rhythm or meter  Takt Time = Demand Rate  Rate of which customer is buying Step 1: Label Map Takt can be expressed in seconds, minutes, hours or days
  16. 16. © Operational Excellence Consulting. All rights reserved. 16 Step 5 – Add Data (Manufacturing) • Add key metrics for all process blocks  Cycle Time (CT)  Lead Time (LT)  FPY  Uptime • Add work-in-process (WIP) at every step Step 5: Add Data • Cycle Time • Uptime • FPY (Defect Rate) • Changeover Time • # Operators • # Shifts • Distance Travelled • Other Relevant Data Process Name
  17. 17. © Operational Excellence Consulting. All rights reserved. 17 Current State Value Stream Map Manufacturing Process Demand all families = 100 pcs/day. Demand family A = 35 pcs/day. 2 shifts. Takt time = 532 sec. Customers Machining Ct = 420s Co = 20m Up = 70% ☺ = 1 Shifts = 3 Drilling Ct = 145s Co = 15m Up = 50% ☺ = 1 Shifts = 2 Welding Ct = 185s Co = 8m Up = 70% ☺ = 1 Shifts = 2 Assembly Ct = 360s Co = 7m Up = 80% ☺ = 1 Shifts = 2 Packaging Ct = 40s Co = 3m Up = 15% ☺ = 1 Shifts = 2 Suppliers MRP Weekly plan Forecasts = 30 days Daily orders Continuous forecasts Daily orders 58 days 6 days 9 days 5 days 2 days 42 days 420 sec 145 sec 185 sec 360 sec 40 sec Component A = 35 pcs per/day. Orders are placed on demand. Lead time from order is placed= 2 days. 2030 pcs 210 pcs 315 pcs 175 pcs 70 pcs 1470 pcs = 122 days =1150 sec. Step 5: Add Data ILLUSTRATIVE
  18. 18. © Operational Excellence Consulting. All rights reserved. 18 D D D E AAA AA B B A A A A AA F FGG OFFICE C 2 1 3 5 7 9 11 4 6 810 12 13 14 15 16 17 18 19 20 21 2223 24 25 26 27 28 29 30 31 32 36 33 34 3537 38 39 40 41 42 43 44 45 46 47 49 51 48 50 X Transport using truck or man Inventory or buffer stocks Value adding processX X Machining (10) Drilling (20) Welding (28) Assembly (34) Packaging(44) Current State Layout Step 5: Add Data ILLUSTRATIVE
  19. 19. © Operational Excellence Consulting. All rights reserved. 19 • From this figure it is visible why the flow is bad in the current production. The bad flow also causes inventory between all processes. • The takt time is 532 sec. based on 2 shifts. It is also clear that 2 shifts is not enough on the machining process. 100 200 300 400 500 600 Machining 420sec. Drilling 145sec. Assembly 360sec. P. 40 30% 50% 20% 85% 30% Welding 185sec. Bottleneck Sec. Takt time (2 shifts) = 532 sec. = Lost time Takt time (3 shifts) = 799 sec. • Calculation of takt time:  The daily demand from the packaging process is 100 pcs.  The packaging process runs 2 shifts.  Takt time = (2 x 7.4 x 3600)* / 100 pcs. = 532 sec. • For every 532 seconds there must be a new product ready for shipping. Current State – Leveling of Cycle Times * 2 shifts x 7.4 hours per shift x 3600 seconds per hour Step 5: Add Data ILLUSTRATIVE
  20. 20. © Operational Excellence Consulting. All rights reserved. 20 The value related attribute of an activity can only be assessed in the context of the process, never in isolation – Consider other activities upstream and downstream Value Added activities are those absolutely necessary to deliver the customer’s requirements – These are colored green on the flowcharts – They are later re-designed into the new process Non Value Added activities are those that are not necessary to deliver the customer’s requirements and can be eliminated in the re-design – These are colored red on the flowcharts Sustaining activities are those that are not necessary to deliver the customer’s requirements but are either: – absolutely necessary to sustain the business or: – cannot be eliminated due to known severe constraints (often external) – These are colored blue on the flowcharts – They are later re-designed into the new process Sustaining activities are targeted for gradual elimination during the Continuous Improvement process NVAVA SNVA VA NVA Sustaining Activities The analysis and redesign requires a clear understanding of: Value Added, Non Value Added & Sustaining Activities Step 7: Identify VA & NVA Steps
  21. 21. © Operational Excellence Consulting. All rights reserved. 21 Lean Approach to Process Excellence Lean approach to process excellence takes a holistic view of the value streams to eradicate waste, variability and inflexibility with the involvement of management and staff. Focus on the Non-Value Added Resources through… • Total Quality Control • Total Waste Elimination • Total Staff Involvement • Enforced Problem Solving • Process Focus (Value Stream) • Information Technology as an Enabler Step 7: Identify VA & NVA Steps
  22. 22. © Operational Excellence Consulting. All rights reserved. 22 S.M.A.R.T. Goals • Is it clear and unambiguous?Specific • Can it be measured? • How will I know when it is accomplished?Measurable • Is it challenging? • Can it be accomplished?Achievable • Can you make it come true? • Are you willing and able to work?Realistic • Is there a target completion date?Timely Step 8: Define Goals & Gaps
  23. 23. © Operational Excellence Consulting. All rights reserved. 23 Future State Design Considerations • Eliminate steps / handoffs • Combine steps • Create parallel paths • Alter task sequencing and/or timing • Improve quality (error-proof) • Eliminate unnecessary approvals / authorizations • Stop performing non-value- adding (NVA) tasks • Standard work • Reduce / eliminate batches • Implement pull • Create an organized, visual workplace • Reduce setup and changeover • Eliminate motion and transportation • Co-locate functions based on flow; create cells (teams of cross-functional staff) • Balance work to meet Takt time requirements
  24. 24. © Operational Excellence Consulting. All rights reserved. 24 Future State Value Stream Map Manufacturing Process Demand all families = 100 pcs/day. Demand family A = 35 pcs/day. 1 shift. Takt time = 266 sec. Customers Machining Ct = 420s Co = 5m Up = 85% ☺ = 1 Shifts = 2 U-Cell Ct = 250s Co = 1-3m Up = 65-80% ☺ = 4 Shifts = 1 Suppliers MRP Daily plan Forecasts = 30 days Daily orders Continuous forecasts Daily ordersComponent A = 35 pcs per/day. Orders are placed on demand. Lead time from order is placed= 2 days. Goal 700 pcs Goal 140 pcs Goal 70 pcs Kanban U-cell Orders 20 days 4 days 2 days Sum = 730 sec = 26 days =1150 sec. 420 sec Kanban Changeover time Increase OEE Physical layout Flow between work stations etc. Daily planning Changeover times Increase OEE Task distribution ILLUSTRATIVE
  25. 25. © Operational Excellence Consulting. All rights reserved. 25 Value Stream Mapping: Summary Draw Customer Box Draw Customer Requirements Draw Management Control Box Draw Supplier Box Draw Transport to Production Draw Production/ Service Flow Draw Communication Arrows Draw Push/ Pull Systems Finalize Measurements Analyze Value Stream Map Identify Kaizen Opportunities Develop Future State Map
  26. 26. © Operational Excellence Consulting. All rights reserved. 26 Copyrights of all the pictures used in this presentation are held by their respective owners.
  27. 27. © Operational Excellence Consulting. All rights reserved. 27 Other Presentations You May Like… Check out our presentations catalog at http://www.oeconsulting.com.sg/#!training-presentations/c1les
  28. 28. © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
  29. 29. © Operational Excellence Consulting. All rights reserved. 29 About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. • One of our unique strengths is going beyond a tools-focused approach to seamlessly integrate people, processes, technology and continuous improvement initiatives to suit the specific needs and situations of our clients. • We provide corporate learning programs and management advisory services to assist our clients to achieve breakthrough in business performance and effectiveness. Our aim is to support our clients in designing, managing and executing lasting beneficial change.
  30. 30. © Operational Excellence Consulting. All rights reserved. To download this presentation, please visit us at: www.oeconsulting.com.sg END OF PARTIAL PREVIEW

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