Recorded webinar: http://slidesha.re/1gGFkFM
Subscribe: http://ksmartin.com/subscribe
Purchase the book: http://bit.ly/VSMbk
In Part 3 of this 4-part webinar series to celebrate the launch of Karen Martin & Mike Osterling's new book, VALUE STREAM MAPPING, you'll learn how to avoid a common failing in value stream mapping: taking no action to actually transform operations.
Specifically, you will learn:
• How the transformation plan should be managed and by whom.
• How to apply PDSA to assure that you’re making the best improvements.
• How to engage the entire workforce in making change.
• How to measure your progress.
11. Current State Value Stream Map
<Client>
CURRENT STATE Value Stream Map
(Product>
<Map assumptions>
Demand Rate = XXXX/ Year
February 03, 2014
Customer
SalesForce
2
1
Prepare
Proposal
450 items
3
4
Hand Over to
Proj Mgmt
Send PO or
LOI
7 items
150 items
Excel
9 items
Plan &
Schedule
Project
5
7 items
Review
Specs; scope
project.
Prepare initial
cust. docs
7
Customer
Sales
2 approvals
Project Mgmt
41 items
LT = 2 weeks
PT = 12 hrs .
%C&A = 2%
LT = 0 week s
PT = 16 hrs.
%C&A = 35%
10A
11A
12
13A
14
15A
17
LT = 6 week s
PT = 92 hrs.
%C&A = 0%
16
19 items
Customer
Release Long
LT Items to
Production
Release
Complete
Final Design
Issue Reqs
for Short
Lead Parts
21 items
3 items
Build for Test
Product
6 items
3 items
Test &
Disassemble
Product
4 items
Build for
Shipment
PRODUCT
20 items
Package &
Ship
Product &
Systems
50 items
Customer
3 items
Approve Final
Documents
Eng
Eng
Purchasing
Planning
Production
Production
Production
LT = 105 day s
PT = 360 hrs .
%C&A = 75%
LT = 2 weeks
% C&A = 5%
Invoice
Customer
(final)
Finalize
Customer
Documents
Review &
Approve Docs
Start
designing
project
LT = 1 y ears
%C&A = 5%
8A
6
Eng, Quality,
Planning
Sales
(~ 200 pp)
LT = 2 week s
PT = 2.5 day s
%C&A = 75%
MS Project
LT = 85 day s
PT = 144 mins .
%C&A = 25%
LT = 2 week s
PT = 3 hrs .
%C&A = 5%
LT = 4 week s
PT = 48 hrs .
%C&A = 95%
LT = 5 day s
PT = 14 hrs .
%C&A = 90%
LT = 3 days
PT = 18 hrs .
%C&A = 95%
Engineering
Quality
Logistics
Finance
LT = 6 months
120 items
6B
8B
0 items
Begin Create
Customer
Docs
Create
Demand;
Issue Reqs for
Long Lead
Items
X3
PM
Planning
Doc Control
ME
Engineering
Quality
9
10B
11B
LT = 4 week s
PT = 72 hrs.
%C&A = 99%
LT = 2 months
%C&A = 50%
13B
15B
3 items
Procure Long
Lead Items
3 items
Invoice
Customer
Test & Build
from Test
Systems
18 items
LT = 1 months
PT = 3 hrs .
%C&A = 95%
Build for
Shipment
SYSTEMS
Invoice
Customer
(Shipment)
3 items
Purchasing
Finance
LT = 2 week s
PT = 3 hrs .
%C&A = 5%
LT = 2 months
PT = 4 hrs .
%C&A = 5%
Production
Systems
Production
Finance
Logistics
PM
LT = 6 day s
PT = 44 hrs .
%C&A = 95%
LT = 1 days
PT = 8 hrs .
%C&A = 95%
LT = 30 day s
PT = 6 hrs .
%C&A = 95%
22 items
LT = 7 months
PT = 124 hrs.
%C&A = 0%
LT = 5 day s
PT = 8 hours
%C&A = 80%
6C
25 items
10C
Invoice
Customer
Supplier
Send Parts
Finance
LT = 7 months
LT = 4 weeks
PT = 2.5 hrs .
%C&A = 95%
10.0 days
0.5 weeks
10.0 days
50.4 weeks
0.3 weeks
30.0 days
0.4 weeks
147.0 days
105.0 days
85.0 days
10.0 days
42.0 days
20.0 days
5.0 days
3.0 days
20.0 days
2.3 weeks
3.1 weeks
9.0 weeks
0.1 weeks
0.1 weeks
0.1 weeks
1.2 weeks
0.3 weeks
0.5 weeks
1.8 weeks
21.0 days
8.4 weeks
25.2 weeks
Total LT = 930.0 days
0.1 weeks
Total PT = 103.7 weeks
Activity Ratio = 55.8%
Rolled %C&A = 0%
12. Future State Value Stream Map
3.Create v isual
timeline to educate
customers
7. Error proof P.O. info
(correct s pecs , s hip to, etc .);
notify c us tomer re mis sing info
and drop dead date
5. Soc ializ e new c riteria for
engineering, quality &
purc hasing involv ement
4. Define technic al info
Ebara needs from
customer and when
1. Create procedure/train GS s ervic e
engineers to properly feedbac k
suggestions to engineering
Customer
6. Rev is e s tandard Ts & Cs to
inc orporate time limit for c us tomer
approv al for final pay ment
2.Create bulletin re:
s tandardized headplate
des ign to eliminate flange
orientation.
1
13. Revis e proposal
template to limit time
to 4 revisions
9. Add initial
projec t releas e in
SF
16. Create trigger to
release (BOMs) for
purchas e.
10. Enforce customer
-reques ted CO
procedure
8. Create c riteria for
LOI ac ceptanc e
4A
Review PO
6A
Approve cust.
doc package
Customer
8
7A
Procure
items
PM
Stage order
(100% comp.)
Prod. Control
Hydrotest
Send
materials
Customer
Sales
25. Trans ition data
reduction to test engineer
5A
Plan &
Schedule
Project
26. Update data book
process to submit after test
reports received.
15. Create commodity
management team &
s upplier SLAs
18. Eliminate
Requisitions
3
Send PO or
LOI
LT = 10 day s
PT = 64 hours
%C&A = 95%
19. Analyz e/implement
c hange management
sy stem.
20. Create approved
s upplier program
2
Prepare
Proposals
Sales
Engineering
Quality
Purchasing
14. Standardiz e
WBS/QPR from
s uppliers
27. Pre-arrange
s hipping bas ed on
production sc hedule
9A
Build for
Test
(Product)
10
Test &
Disassemble
Product
Total PT = 16h
28. Create the means to
have a daily level-loaded
production sc hedule
(Includes Quality
Inspection)
11A
Build for
Shipment
(Product)
12
Package;
ready to ship
(including
docs)
13A
Invoice
Customer
(shipment)
Total PT=36h
Total PT=72h
Total PT=48h
Supplier
Purchasing
Warehouse
Production
Production
Logistics
Finance
LT = 3.1 day s
PT = 24 hrs.
%C&A = 99%
LT = 8 days
PT = 6 hrs.
%C&A = 95%
Production
LT = 1 y ears
%C&A = 75%
LT = 2 week s
LT = 8 hours
PT = 4 hrs.
%C&A = 95%
PT = 16 hrs .
%C&A = 90%
LT = 8 hours
PT = 6 hrs .
%C&A = 99%
21. Create
c onfigurator
(standard part)
12. Move to one
release (pump &
s ys tems )
Value
Stream
STOPS if
no PO
LT = 4 hours
PT = 2 hrs .
%C&A = 99%
LT = 1.1 day s
PT = 8 hrs .
%C&A = 95%
LT = 5 days
PT = 16 hrs.
%C&A = 95%
LT = 3 days
PT = 18 hrs.
%C&A = 95%
16. Create pull s ignal
for inv oicing.
4B
11. Create one-piec e
engineering flow
LT = 5 months
PT = 0 hrs .
Complete &
release
initial
customer
docs
5B
6B
Create
balance of
customer
docs
Invoice
Customer
X 1.5
Total PT=186h
7B
Invoice
customer
(major
materials)
9B
23. Automate
s hop order
release.
24. Eliminate witnes sed
tes ting of elec tric al feedthroughs onsite
Build for
Test
(Systems)
11B
Build for
Shipment
(Systems)
13B
12B
Approve
final
documents
Invoice
Customer
(docs)
Customer
22. Create
engineering tools
Eng (32 hrs)
Quality (4 hrs)
ENG
Quality
Finance
Production
Production
LT = 5 day s
PT = 22 hours
%C&A = 95%
LT = 1 days
PT = 8 hrs .
%C&A = 95%
Finance
Finance
LT = 30 day s
LT = 5 day s
PT = 36 hrs .
%C&A = 85%
LT = 2 day s
PT = 2.5 hrs.
%C&A = 95%
LT = 3 months
PT = 124 hrs.
%C&A = 80%
LT = 2 days
PT = 3 hours
%C&A = 95%
LT = 2 days
PT = 3 hrs .
%C&A = 95%
11C
5C
Build
Crates
Complete &
Release ENG
package BOM
Total PT=48h
Total PT=268h
Logistics
LT = 3 days
PT = 24 hours
%C&A = 99%
LT = 7 weeks
PT = 206 hrs .
%C&A = 85%
8 hrs.
5 days
35 days
8 hrs.
4 hrs.
36 hrs.
206 hrs.
6 hrs.
105 days
4 hrs.
1 days
5 days
3 days
3 days
Timeline LT = 160 days
2 hrs.
8 hrs.
16 hrs.
18 hrs.
24 hrs.
Timeline PT = 320 hrs.
Activity Ratio = 25.0%
Rolled %C&A = 21%
Total PT = XX
17. Value Stream Transformation Plan
Value Stream
Executive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Date Created
Kaizen
Burst #
4
5
6
7
8
9
10
11
12
13
14
15
16
Content removed for sanitization purposes
3
Jim McMahon
2/10 + bi-weekly Thu 10 am
Sally Brooks
Karen Martin
1/5/2014
Exec.
Method *
Owner
Create procedure/train GS service engineers to
properly feedback suggestions to engineering.
Improvement Objective / Hypothesis
1
2
Scheduled Review Dates
Product Y
PROJ
Create bulletin re: standardized headplate
design to eliminate flange orientation.
PROJ
Steve
Create visual "milestone" timeline to
educate customers.
KE
Bruce
Define technical info needed from
customer and when.
KE
Bruce
Socialize new criteria for engineering,
quality, & purchasing involvement.
PROJ
Jessie
Revise standard Ts & Cs to incorporate time limit
for customer approval for final payment.
PROJ
Sally
Error proof P.O. info (correct specs, ship to,
etc.); notify customer re missing info and
drop dead date.
KE
Jessie
PROJ
Mike
JDI
Jessie
Resocialize existing customer-requested
CO procedure.
PROJ
Steve
One piece engineering flow
PROJ
Steve
Move to one release (pump & systems)
PROJ
Bob
JDI
Jessie
Standardize WPS/PQR from suppliers.
PROJ
Marcia
Create commodity management team &
supplier SLAs.
PROJ
Tom
KE
Marcia
PROJ
Sally
Create criteria for LOI acceptance.
Add initial project release in SF.
Revise proposal template to limit time to 4
revisions.
Create trigger to release (BOMs) for
purchase.
Create pull signal for invoicing.
17
Planned Timeline for Execution
Steve
Proposed Countermeasure
J
F
M
A
M
J
J
A
S
O
N
D
Status
Agreement
Executive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Signature:
Signature:
Signature:
Date:
Date:
Date:
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project)
17
23. Value Stream Transformation Plan
Value Stream Product Y
Scheduled Review Dates
Executive Sponsor Jim McMahon
2/10 + bi-weekly Thu 10 am
Value Stream Champion Sally Brooks
Value Stream Mapping Facilitator Karen Martin
Date Created 1/5/2014
Kaizen
Burst #
Improvement Objective / Hypothesis
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Content removed for sanitization purposes
1
17
Planned Timeline for Execution
Exec.
Method *
Owner
Create procedure/train GS service engineers to
properly feedback suggestions to engineering.
PROJ
Steve
0%
Create bulletin re: standardized headplate
design to eliminate flange orientation.
PROJ
Steve
100%
Create visual "milestone" timeline to
educate customers.
KE
Bruce
50%
Define technical info needed from
customer and when.
KE
Bruce
50%
Socialize new criteria for engineering,
quality, & purchasing involvement.
PROJ
Jessie
100%
Revise standard Ts & Cs to incorporate time limit
for customer approval for final payment.
PROJ
Sally
100%
Error proof P.O. info (correct specs, ship to,
etc.); notify customer re missing info and
drop dead date.
KE
Jessie
0%
PROJ
Mike
100%
JDI
Jessie
50%
Resocialize existing customer-requested
CO procedure.
PROJ
Steve
80%
One piece engineering flow
PROJ
Steve
10%
Move to one release (pump & systems)
PROJ
Bob
0%
JDI
Jessie
100%
Standardize WPS/PQR from suppliers.
PROJ
Marcia
25%
Create commodity management team &
supplier SLAs.
PROJ
Tom
30%
KE
Marcia
50%
PROJ
Sally
50%
Proposed Countermeasure
Create criteria for LOI acceptance.
Add initial project release in SF.
Revise proposal template to limit time to 4
revisions.
Create trigger to release (BOMs) for
purchase.
Create pull signal for invoicing.
J
F
M
A
M
J
J
A
S
O
N
D
Agreement
Executive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Signature:
Signature:
Signature:
Date:
Date:
Date:
* Execution Method = JDI (Just-do-it), KE (Kaizen Event), or Proj (Project)
Status