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Using Value Stream Mapping as   a Strategic Planning and     Implementation Tool               Frank Garcia      Director,...
Why Use VSM?Identify areas for lean improvementsTrain team members in use of leanconceptsIntegrated lean implementation pl...
What We’ll CoverWhat is VSM?Basic Lean ConceptsDeveloping Value Stream Maps: Current& Future StateImplementing VSMsUsing V...
Lean ManufacturingFundamental Principle of Lean Manufacturing   Any activity or action which does   not add value to the p...
Definition of Value -AddedValue is added any time the product is physicallychanged towards what the customer is intendingt...
Waste or Opportunities for            ImprovementAdds no valueAdds only cost andtimeSymptom rather thancausePoints to prob...
The EIGHT WastesInventory (more than one piece flow)Overproduction (more or sooner than needed)Correction (inspection and ...
FLOW & PULLMake the value-creating steps flowProduce only what is neededIf a process is not completed correctly the firstt...
Value StreamThe value stream is the set of all thespecific actions required to bring aspecific product (good or service) t...
Value Stream Map              An Assessment ToolThe value stream map follows the order path frombeginning to end and shows...
Value Stream Map Concept             Orders   Production            OrdersSuppliers                                       ...
Using the Value Stream Mapping Tool product family  current state   Understanding how the shop floor    drawing       curr...
Who Develops the VSM?Team Approach?  Better understanding of process  & opportunities  Provides training in Lean  Concepts...
Who Develops the VSM?Engineer Collects Data and DraftsVSM?  Takes less time  Can be done with Management  Team  Can train ...
Who Develops the VSM?Depends on the company culture andpreferenceHow much time can be devoted?Team Approach is most effect...
What Tools to Use to Make the VSM?             Use Excel or Visio?Hand draw?                      Use AUTOCAD?
What Tools to Use to Make the VSM?                                       Use Excel or Visio                               ...
product family         Current State Map                        Understanding how the shopcurrent state drawing   floor cu...
product family         Current State Map                                                          Corner Punch            ...
Value Stream Map (Current State)                                                                                          ...
Future State Map                        Designing a Lean FlowProduct family                    You always need a future st...
Future State Questions  What is the takt time?  Will we build to shipping or to a supermarket?  Where can we use continuou...
TAKT TimeSynchronizes pace of assembly   to match pace of sales.Rate for assembling a product      based on sales rate.   ...
Lean Manufacturing       Concepts & TechniquesFlow: Setup Reduction, CellularManufacturing, Batch Size Reduction,Visual Wo...
XYZ COMPANY FUTUREBrooks        Test Eq.      Compu             Winston       App.             Parker-                    ...
Complex VSM                                                                                    S T A N D A RD U N IT S – F...
STANDARD UNITS                                  FUTURE STATE VALUE STREAM MAP                                             ...
VSM ExamplesCurrent State to Future State
Value Stream Map (Current State)                                                                                         O...
Value Stream Map (Future State)                                                                                          O...
Value Stream Map (Current State) for Console & Accessories Assembly                   Order Twice                     Per ...
The VSM Opportunity             10,000 lbs         As Required;             minimum            black vinyl             ord...
Value Stream Map (Future State) for Console & Accessories Assembly            Monthly or            Bi-Monthly            ...
The VSM Improvement                                                    Daily         Production                           ...
How Do We Implement the Future State              VSM? Don’t Wait! Use future state VSM to highlight changes Break up the ...
VSM Showing Improvement Opportunities                                                                                     ...
Value Stream Map (Current State)                                                                         Stamping Orders W...
Value Stream Map (Future State)                                                                     Stamping Orders With N...
VSM IMPLEMENTAION                                       FUTURE STATE IMPLEMENTATION PLAN & SCHEDULE                       ...
The VSM Cycle Assessment        Recommended      Set Up   (VSM)             Solutions      Layout                         ...
Other VSM ApplicationsOffice ImprovementsLong Range Planning
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
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Using Value Stream Mapping As a Strategic Planning & Implementation Tool

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Using Value Stream Mapping As a Strategic Planning & Implementation Tool

  1. 1. Using Value Stream Mapping as a Strategic Planning and Implementation Tool Frank Garcia Director, Engineering Services ADVENT DESIGN CORPORATION
  2. 2. Why Use VSM?Identify areas for lean improvementsTrain team members in use of leanconceptsIntegrated lean implementation planLong term planning
  3. 3. What We’ll CoverWhat is VSM?Basic Lean ConceptsDeveloping Value Stream Maps: Current& Future StateImplementing VSMsUsing VSMs
  4. 4. Lean ManufacturingFundamental Principle of Lean Manufacturing Any activity or action which does not add value to the product is a form of waste and must be eliminated or minimized.
  5. 5. Definition of Value -AddedValue is added any time the product is physicallychanged towards what the customer is intendingto purchase.Value is also added when a service is providedfor which the customer is willing to pay (i.e.design, engineering, etc.).If we are not adding value, we are adding cost orwaste. 90% of lead time is non-value added!
  6. 6. Waste or Opportunities for ImprovementAdds no valueAdds only cost andtimeSymptom rather thancausePoints to problems invalue stream andprocessNeed to addresscauses
  7. 7. The EIGHT WastesInventory (more than one piece flow)Overproduction (more or sooner than needed)Correction (inspection and rework)Material MovementWaitingMotionNon-Value Added ProcessingUnderutilized People
  8. 8. FLOW & PULLMake the value-creating steps flowProduce only what is neededIf a process is not completed correctly the firsttime, it does not move down the line foradditional workEliminate re-work
  9. 9. Value StreamThe value stream is the set of all thespecific actions required to bring aspecific product (good or service) throughthe critical management tasks of anybusiness: Information Management Transformation
  10. 10. Value Stream Map An Assessment ToolThe value stream map follows the order path frombeginning to end and shows a visualrepresentation of every process in the order andinformation flowsShows how the shop floor or office currentlyoperatesDevelops the foundation for the future state
  11. 11. Value Stream Map Concept Orders Production OrdersSuppliers Customers Control Schedules I Process I Equipment Raw Cycle Finished Materials Times Goods Change Over Reliability Error Rate Lead Time File: VSM-A1
  12. 12. Using the Value Stream Mapping Tool product family current state Understanding how the shop floor drawing currently operates. The foundation for the future state. future state Designing a lean flow drawing plan and implementation
  13. 13. Who Develops the VSM?Team Approach? Better understanding of process & opportunities Provides training in Lean Concepts Feel ownership of VSMs Exchange of ideas More open discussion Takes more time
  14. 14. Who Develops the VSM?Engineer Collects Data and DraftsVSM? Takes less time Can be done with Management Team Can train on lean concepts & get buy in Less ownership by team and operators Less exchange of ideas within the company
  15. 15. Who Develops the VSM?Depends on the company culture andpreferenceHow much time can be devoted?Team Approach is most effective!
  16. 16. What Tools to Use to Make the VSM? Use Excel or Visio?Hand draw? Use AUTOCAD?
  17. 17. What Tools to Use to Make the VSM? Use Excel or Visio • Requires program knowledge • Easy to change • Can use templates • Easy to share &Hand drawn e-mail• Quick • Easy to present• Easy for teams• Difficult to change & copy• Harder to present Use AUTOCAD? FORGET IT!
  18. 18. product family Current State Map Understanding how the shopcurrent state drawing floor currently operates. Material and information flows Future state Draw using icons drawing Start with the “door to door” flow Walk the flow and get real data * no standard times * draw by hand plan and Basis for the Future Sate implementation
  19. 19. product family Current State Map Corner Punch Recommended Datacurrent state drawing 1 Operator Cycle Time C/T = 2 min. Future state Changeover time C/O = up to 30 min. drawing Number of People Rel. = 99% Scrap = 2% Available Working Time Acceptance or Reject Rate Equipment reliability or downtime plan and implementation
  20. 20. Value Stream Map (Current State) Blanket Annual Purchase Order with Daily Releases Production Control Randomly Placed (normally working Various Distributors Sheet Galvanized Sheet Galvanized Sheet Galvanized Sheet Galvanized Orders (normally 24 to 48 hours ahead (~ 24 for Smith Corp. &Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) single unit orders) of ~ 6 for Jones Systems promised shipment) Average volume of 1000 systems per month in peak season. Customers are mainly distributors. There are a few dealers. Daily Daily Up to an average Daily Production Production of 130,000 lbs Shipping Daily Reports Reports daily in peak Schedule Shipments season In Straight Panel Dept. Shear Notch Specialty Punch Corner Punch Bend Stake & Label Add Z Brace Radius & Band Rack Shipping 1 Accurshear 1 Manual 4 Semi-Auto 3 Semi-Auto 1 Manual 1 Automated 1 Automated 1 Manual Table, Automated Notcher (S-23) Punches Punches Brake (R-7) Machine (R-8) Machine (ACR) 1 Jig-less Shear (P-3) & 1 Automated (S-1, S-2, & S-3) & 1 Automated Machine (R12), I Notcher (R-3) Brake (R-13) & 1 Jig Machine (R1)2 to 5 days 1 Material 1 Operator 1/2 Operator 0 Operators 1 Operator 1/2 Operator 1/2 Operator 1/2 Operator 2 Operators 2 Operatorsdepending Handleron pre-cut size C/T = 4 min. C/T = 2 min. C/T = 2 min. C/T = 2 min. C/T = 5 min. C/T = 2 min. C/T = 7 min. C/T = 8 min. C/T = N/A C/O = N/A C/O = 4 min C/O = N/A C/O = up to C/O = 30 to C/O = N/A C/O = N/A (average) C/O = N/A Rel. = 99% Rel. = 95% Rel. = 99% 30 min. 60 sec. Rel. = 99% Rel. = 98% to C/O = 2 to 30 Rel. = 100% Rel. = 99% Rel. = 90% 99% min. Rel. = 80% to 100% 2 to 5 Working Days, Lead Time 2 to 5 days 32 minutes, 4 min. 2 min. 2 min. 2 min. 5 min. 2 min. 7 min. 8 min. Value-Added Time
  21. 21. Future State Map Designing a Lean FlowProduct family You always need a future state! Complete 75% & Keep UpdatingCurrent state drawing Consider Material & Information flows Foundation for your Work Plan - like a Future state “blueprint” drawing Begin by evaluating Current State 1st iteration assumes existing steps & equipment plan and Can move equipment, combine operations,implementation reduce scrap, etc.
  22. 22. Future State Questions What is the takt time? Will we build to shipping or to a supermarket? Where can we use continuous flow? (Single Piece vs Batch) Where do we have to use supermarket pull system? At what single point in the production chain do we trigger production? How do we level the production mix at the pacemaker process?SUPPORTING IMPROVEMENTS What process improvements will be necessary? (e.g. uptime, changeover, training)
  23. 23. TAKT TimeSynchronizes pace of assembly to match pace of sales.Rate for assembling a product based on sales rate. TAKT = Effective Working Time per Shift Customer Requirement per Shift
  24. 24. Lean Manufacturing Concepts & TechniquesFlow: Setup Reduction, CellularManufacturing, Batch Size Reduction,Visual Workplace, LayoutPull: Kanban Systems, Supply ChainManagement, Point of UsePerfection: Quality Systems, Training
  25. 25. XYZ COMPANY FUTUREBrooks Test Eq. Compu Winston App. Parker- WEEKLY Sales Wire (Sheet Energy Hannif. FORECAST ForecastMFC Regulator PCB Metal) (Manif.) (cell) PRODUCTION Monthly CONTROLS forecast 5 top 2 wk. 2 wk. 2 wk. 2 wk. 2 wk. 2 wk. DAILY Orders CONSUMP. MRP SALES customers Avg. = 15/mo. Max = 25/mo. Daily as DAILY Dem. = 1/day needed ORDERS Orders = 5/mo. 1 unit/ day 14 Elemts. Daily as needed WETLINE 11 CELLS WIRE WIND ANNEAL SEAL FIFO FIFO RHODIUM CELLS ROD 7 elements PLATINUM CELLS GLASS per batch Subassemblies TUBE 1 model 1 ELEMENT CELL CELL CELL 1 model 2 CT = 3min. CT = 8min. CT = 7min. PREP. FIFO ASSY. FIFO SENSIT. FIFO DRYDWN 1 model 3 C/O = 5min. C/O = 1 h. 1 model 4 1 card per model Cell body UNIT ACCLIM. UNIT FINAL SHIP, INST. TEST ASSY, PACK CT = 8.5 h. CT = 40min. CT = 21h. CT = 2-7 days INSP. , Subassemblies 1 model 1 FIFO FIFO 1 model 2 CT = 0.75- CT = MFC MECH ELEC. LEAK CT = 15min. CT = 2-14 days CT = 32h. 1.25 h. 40min. SUBASSY. ASSY + TEST 1 model 3 FIFO FIFO 1 model 4 Reg. CALIB. 2-14 days 11 days PCB Rack 8 hr./day Module 20 day/month CT = 4 h. CT = 2 h. CT = 30min. Process time: 12-29d. Lead time: 67-84d. 0.5 mo 1 mo. 11 days 2-14 days 3 min. 8 min. 7 min. 8.5 h. 40 min. 21 h. 2-7 days 15 min. 2-14 days 32 h. 0.75-1.25 h. 40 min.
  26. 26. Complex VSM S T A N D A RD U N IT S – FU T U R E S TA T E SUPPLIER PURCHASING FORECASTS SHIPPING Unit PRODUCTION CONTROLS Avg. = 20/mo As As Schedule Order Customers Service Demand = 1 needed needed MACOLA SYSTEM Coordinator Estimate unit/ day Order Unit Work Service Order Order Paperwork 14 Elements REPAIR WIRE Sensitize Bag Wind Anneal Element (5u) Estimating Customer ROD 7 elements/ FIFO Prep. FIFO Seal PO batch GLASS TUBE CT = 5 min. CT = 3 min. CT = 8 min. CT = 217h. C/O = 5 min. C/O = 1 h. CT = 8.5 h. CO = 15 min. ACC = 40% Service CT = 7 min. Units 20% FIFO FIFO Initial Pressure Remove FIFO FIFO FIFO FIFO Test Leak Cell Calibration Clean Dry Install Release I Workbench Flush Down Cell Test 5u CT = 15m CT = 15m-1d CT = 15 min. CT = 15 min. CT = 10-31m. CT = 30m CT = 24-48 hr. 0.25 mo. CO = 15 min. CO = 10-15m. RA = !00% Repair Parts FIFO FIFO FIFO FIFO FIFO FIFO FIFO FIFO Dry down Assembly Leak Unit Final Gas Cap Tech QC Pack And Repair Drydow Test & Inspection Check & Test Paperwork Clean Ship n 1u CT = 15m (A) CT = 1.5h – 1d CT = 4h CT = 20m CT=5 min CT = 10min. CT = CT = 15m CT = 1-3 d CO = 10 m C/O = 10m 30min. CT = 10n-1h (R) C/O = 10m 8 hours/day 20 days/month Process Time: 3.1 – 7.9 daysNOTE: Process and lead time based only on service unit path as shown in bold. Lead Time: 8.1 – 12.9 days
  27. 27. STANDARD UNITS FUTURE STATE VALUE STREAM MAP Standard Cells Supermarket Element Sensitize Prep 2 - 4 days Mechanical Assemlby, Electrical Install FIFO I Assembly, Calibrate, Purge Cell 14 days 4 to 8 hrs Pack, Ship Inspect Unit Final Test Drydown 2 -4 daysCustomers ? Unit/Day Process Time: 3 to 5 days Lead Time: 15 to 17 days
  28. 28. VSM ExamplesCurrent State to Future State
  29. 29. Value Stream Map (Current State) Orders Every 2 Weeks Production Control New Jersey Randomly Placed Andrea Aromatics Alanx Order as Needed Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case range mainly) 30 Cans of Oil 59,000 Stones 50,000+ Stones Every 2 Weeks Every 2 Weeks Every 2 Months (via stringer) Bi- Weekly Daily Shipping Productio Orders n Daily Schedule Shipments Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I I up to 0 0125 Cans of Oil 1 Operator 4290 250 1 Operator 1/2 Operator 1/2 Operator 90,504 1 Operator Stones20,640 Round Stones stones Stones in WIP49,000 Shaped Stones C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% 27.4 Days Lead Time 11.6 Days 0.7 Days 15.1 days 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
  30. 30. Value Stream Map (Future State) Orders Every Week New Jersey Randomly Placed Andrea Aromatics Alanx Monthly Order Production Control Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case Bi-Weekly range mainly) 12 to 16 Cans 30,000 Stones 25,000 Stones Production of Oil Once a Once a Week Once a Month Schedule Week (via stringer) (large orders) Daily Shipping Orders Daily Shipments 4 Cases Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I up to 0 075 Cans of Oil 1 Operator 4290 250 1 Operator 1/2 Operator 1/2 Operator 30,000 1 Operator Stones40,000 Round Stones stones Stones in WIP in a supermarket25,000 Shaped Stones C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. type arrangement C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% with stocking levels by shape and scent Increase 10.8 Days 0.7 Days Reliability 5.0 days 16.5 Days Lead Time 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
  31. 31. Value Stream Map (Current State) for Console & Accessories Assembly Order Twice Per Year (Blanket Orders) Daily Orders Randomly Placed Hardware, Labels, Equipment Orders (various sizes, Extrusion Sheetmetal Parts & Instruction Order as Needed Production Control Various typical is 2 to 3 units (Warner) (Havis-Shields) Manuals from Customers Various Vendors 98% external customers; 2% internal use. External customers are: 40% distributors, 40% end users; 20% outfitters 10,000 lbs As Required; minimum black vinyl As Required order via aluminum direct; anodizer rest via painters. Daily Daily Production Orders ReportsReduce order quantity andinventory amount by buyingstandard sizes and cutting to Assemble Kit & Pack Shippingfit at Company. Consoles & Daily Shipments Accessories ($375K monthly average) I I I Reduce inventory amount by $450K worth, 1 week, 6 Operators 2 Operators 0 1 Operator changing how extrusion is about 25 days up to (mainly extrusion) 1000 pieces bought and used. C/T = 5-10 min. C/T = 10-20 min C/O = 0 min C/O = 0 min. Rel. = 100% Rel. = 100% 25 days 5 days 0 30 Working Days, Lead Time 5 to10 min. 10 to 20 min. 15 to 30 minutes, Value-Added Time
  32. 32. The VSM Opportunity 10,000 lbs As Required; minimum black vinyl order via aluminum direct; As Required anodizer rest via painters. Daily Production ReportsReduce order quantity andinventory amount by buyingstandard sizes and cutting to Assemble Consoles &fit at Company. Accessories I I $450K worth, 1 week, 6 Operators up to Reduce inventory amount by about 25 days 1000 pieces (mainly extrusion) changing how extrusion is bought and used. C/T = 5-10 min. C/O = 0 min Rel. = 100% 25 days 5 days 5 to10 min.
  33. 33. Value Stream Map (Future State) for Console & Accessories Assembly Monthly or Bi-Monthly Orders Daily Orders Equipment Randomly Placed Production Control Orders (various sizes,Extrusion Hardware, Labels, Order as Needed Various typical is 2 to 3 units)(Warner) Sheetmetal Parts & Instruction Customers (Havis-Shields) Manuals from Various Vendors 98% external customers; 2% internal use. External customers are: 40% distributors, 40% end users; 20% outfitters 10,000 lbs minimum As Required As Required order via Daily anodizer Production Production Daily Reports Run Orders Request Production Run Request Extrusion Assemble Kit & Pack Shipping Cutting Consoles & Daily Shipments Accessories ($375K monthly average) Manufacturing I I Cells I $250K worth, 0 High volume 2 Operators 6 Operators 2 Operators 0 1 Operator about 15 days consoles & (mainly extrusion) accessories in a supermarket type arrangement C/T = 15 min. C/T = 5-10 min. with stocking C/T = 10-20 min C/O = 0 min C/O = 0 min levels C/O = 0 min. Rel. = 100% Rel. = 100% Rel. = 100% 15 days 0 2 days 0 17 Working Days, Lead Time 15 min. 5 to 10 min. 10 to 20 min. 30 to 45 minutes, Value-Added Time
  34. 34. The VSM Improvement Daily Production Daily Production Run Orders Reports Request Production Run Request Assemble Extrusion Kit & Pack Consoles & Cutting Accessories I I Manufacturing 2 Operators 2 Operators Cells $250K worth, 0 6 Operators about 15 days High volume(mainly extrusion) consoles & accessories in a C/T = 5-10 min. supermarket type C/T = 15 min. C/T = 10-20 min C/O = 0 min arrangement C/O = 0 min C/O = 0 min. Rel. = 100% with stocking Rel. = 100% Rel. = 100% levels 15 days 0 2 days 15 min. 5 to 10 min. 10 to 20 min.
  35. 35. How Do We Implement the Future State VSM? Don’t Wait! Use future state VSM to highlight changes Break up the future state into loops Develop a VSM implementation plan Tie plan to business objectives Assign projects to team members toimplement
  36. 36. VSM Showing Improvement Opportunities Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment (Potential Future State Changes in Red) Projected requirements Phosphor Bronze Omega Precision Beryllium Copper Randomly Placed Brass (30%) Order as Needed Production Control Various (30%) Orders (Various Sizes) (40%) 10 Week LT Vista Software System Customers 6 Mos. LT 4 Weeks LT 6 Weeks Reroll In Stock- 1 Week Review Work Schedule with Formal Production Average of Suppliers 1 mm pcs per day Control in Various Sizes Orders (2 to 13) Single Point Every Week Every Week Every Week of Control Weekly Production Weekly Shipping Schedule Pressroom List Manager Daily Shipments Average order = 208,000 pcs 252,000 strokes Pre-Control for Roll Changes Combine? •Lot Control Improvement Stamping •Handling Reduction Degreasing Packing Shipping Drying 10 to 24 coils 11 Stamping 3 times /week Manual Presses I 6 Operators I 1 unit I 1 Operator I Shipper 2 Baskets - Strip 50 to 70 20 to 40 Bins 1 Basket - Pieces 2 Hours 1 Day Racks to Run: 200-600pcs/min C/T = 2 Hr Strips 12 Weeks 100 to 125 C/T = .003 min/pc. Max 1000/Basket C/T =10 hr Auto Coils Visual Status Min 200/Basket C/O = None Bagging C/O = 4.5 hrs. = 30 Min Pcs. Rel. = 80% Standard Time of Presses 25,000 Pcs/Basket for Setup Setup Available: 590 min/shift Layout is C/O = None Adjustment Time Rel. = 90% a Problem Rel. = 95% 16.75 Days Lead Time 10 Days Sankyo 2 Days Reduce 1 Day to 12 Weeks + coil lead time Coil Feeds Cycle Time per average order 1.5day(avg) 2.25 Days 3.75 Days Value Added Time
  37. 37. Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment (Potential Future State Changes in Red) Projected requirements SUPPLIER Phosphor LOOP Production Control Randomly Placed Beryllium Brass Bronze Order as Needed Vista Software System Orders (Various Sizes) Various Copper (40%) (30%) Customers (30%) 4 Weeks LT 10 Week LT 6 Mos. LT 6 Weeks Reroll In Stock- 1 Week Review Work Formal Schedule with Suppliers Production PRODUCTION Average of 1 mm pcs per day Control CONTROL in Various Sizes LOOP Orders (2 to 13) Single Point Every Week Every Week Every Week of Control Weekly Production Weekly Shipping Schedule Pressroom List Manager Daily Shipments Average order = 208,000 pcs 252,000 strokes Pre-Control for Roll Changes PRESS Combine? LOOP •Lot Control Improvement Stamping •Handling Reduction Degreasin Packing Shipping g Drying 11 Stamping 10 to 24 coils Manual Presses 3 times/week I 6 Operators I 1 I 1 Operator I Shipper unit 2 Baskets - Strip 50 to 70 20 to 40 1 Basket - Pieces 2 1 Day Racks Bins Hours to Run: 200-600pcs/min C/T = 2 Hr Strips 12 Weeks 100 to 125 C/T = .003 min/pc. Max C/T =10 hr Auto DEGREASE/PACK Coils C/O = 4.5 hrs. Visual Status 1000/Basket Min 200/Basket C/O = None Rel. = 80% Bagging LOOP of Presses Standard Time for Setup = 30 Min Pcs. (PACEMAKER) Setup Available: 590 min/shift 25,000 Layout is Adjustment Time Rel. = 90% Pcs/Basket a Problem C/O = None Rel. =Reduce 95% 16.75 Days Lead Time 10 Days Sankyo 2 Days 1 Day to 12 Weeks Cycle Time + coil lead time Coil Feeds 1.5day(avg per average order 2.25 Days 3.75 Days Value )File: Omega VSM Current Loop) May 24 Added Time
  38. 38. Value Stream Map (Future State) Stamping Orders With No Plating or Heat Treatment Projected requirements Production Control Phosphor Randomly Placed Beryllium Using Vista Software Module Brass Bronze Order as Needed Orders (Various Sizes) Various Copper (40%) (30%) Customers (30%) 4 Weeks LT 10 Week LT 6 Mos. LT 6 Weeks Reroll In Stock- 1 Week SUPPLIER LOOP PRODUCTION Average of Daily Order 1 mm pcs per day CONTROL in Various Sizes Orders (2 to 13) LOOP Every Week Every Week Every Week Daily Shipments Coil Batch Shipping Bin Coils Degreasing Packing Shipper Stamping PRESS LOOP New Ultrasonic Cleaners DEGREASE/PACK LOOP Finished Goods (PACEMAKER) 1 Day 1 Day 1 Day 5 Days Lead Time 1day and Coil Lead Time 1 DayFile: Omega VSM Future Loop) May 24
  39. 39. VSM IMPLEMENTAION FUTURE STATE IMPLEMENTATION PLAN & SCHEDULE SEQUENCE COMPLETION LOOP OBJECTIVES PROJECTS (PRIORITY) DATE (Mon./Yr) Supplier Loop * Develop pull system with suppliers 1. Review Weekly/Monthly Requirements With Suppliers 1 Sep-01 * Increase number of deliveries per week 2. Revise current blanket orders 1 Sep-01 * Reduce raw material inventory to match 3. Send daily consumption data to suppliers 2 Nov-01 4. Setup point of use raw material areas 1 Oct-01 Production Control Loop * Implement daily shipping schedule 1. Single point to schedule( shipping). See pacemaker loop. 1 Oct-01 * Work to schedule manufacturing based on shipping requirements 2. Daily production schedule by Operations Manager 1 Oct-01 3. Implement kanban loops as shown on future state VSM 2 Nov-01 4. Use MRP for materials forecasting 1 Oct-01 Element * Reduce lead time 1. Eliminate WIP between winding & annealing 1 Sep-01 Loop * Develop continuous flow 2. Implement supermarket for element prep and kanbans 1 Oct-01 * Develop pull system with element prep supermarket 3. Crosstrain element assembly operations 2 Dec-01 Module Assembly Loop * Reduce cycle time 1. Analyze process variance in environmental test 1 Oct-01 * Reduce variation in cycle time in testing 2. Analyze process variance in module drydown 1 Oct-01 * Reduce variation in cycle time in drydown 3. Implement supermarket and kanbans for cell installation 1 Oct-01 * Establish pull system with supermarket from cell installation 4. Crosstrain module assembly operations 2 Dec-01 * Reduce use of carriers 5. Analyze need for carriers vs. subassembly units 1 Sep-01 6. Analyze material handling reductions and layout improvements for element prep operations 3 Jan-02 7. Set up leak tested subassembly units in supermarket for final assembly 1 Oct-01 Pacemaker Loop * Reduce cycle time 1. Improve assembly methods in final mechancial assembly 2 Dec-01 * Establish pull system with supermarket from 2. Review design for manufacturing assembly improvements for (Unit Assembly/Shipping Loop) shipping tubing assembly 3 Feb-02 3. Consolidate inspection with final mechanical assembly or shipping/packing 2 Nov-01 4. Set up raw material suppermarket for final assembly 1 Oct-01 5. Crosstrain unit assembly operations 2 Dec-01NOTES:1. Conduct kanban and point of use training for plant personnel in 2001.2. Priotities as follows: #1(Complete in 2 months), #2(Complete in 4 months), #3(Complete in 6 months)3. Consider use of teams for implementation after training.
  40. 40. The VSM Cycle Assessment Recommended Set Up (VSM) Solutions Layout CellsContinuous VisualImprovement Automation Implementation Information DO IT! Plan Systems
  41. 41. Other VSM ApplicationsOffice ImprovementsLong Range Planning

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