Value Stream Mapping (VSM)

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Its a perfect little presentation on the precise steps followed under value stream mapping(VSM) done to apply and implement LEAN system in an organization in the most effective and efficient manner

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  • -give an example of dell server to server communication.-
  • Build:Assemble to orderMake to orderEngineer to orderSustain: after sales services
  • Internal and External CustomersEvery organisation has internal and external customers and The Hanley is no exception.External customers: who are they?- The needs of these people may be:- To receive good quality customer service.- To receive useful and professional advice.- To be kept up-to-date on their accounts/mortgages.Internal customers: who are they?- People who work for The organization.To members of staff, their colleagues, sometimes in different departments, are also their customers.The needs of these people may be:- To have a good environment to work in.- To have the correct resources to work with.- To be trained to correct standard to be able to do their job
  • To withdraw from a previous processLoad level- intermediate steps at a constant rate so that further also constantPhysical pull- from supermarkets the materials have to be pulled physically into kittings.
  • Source: International Journal of Innovative Technology and Exploring Engineering (IJITEE) ISSN: 2278-3075, Volume-1, Issue-2, July 2012
  • -3 shifts a day of total 22 hrs. (1320 mins)
  • -Daily schedule was not needed-inventory was held only for 7 days rather than 15 days.-SAP communication directly with planning department, made easy the task of keeping track of the process and the time taken by then in the complete process.-the time for inventory being held between intermediary quality check and welding has been reduced to 1 day from 3 days-Inventory has been under control (RM and finished goods both) by communication with SAP-we are improving the cycle time of welding process by introducing a new welding machine and by improving layout of weld shop.
  • Value Stream Mapping (VSM)

    1. 1. Disclaimer: The credit of the content also goes to different authors and sources from which data has been procured
    2. 2. Value • "Value" is what the customer is buying • A capability provided to a customer  of the highest quality,  at the right time,  at an appropriate price, as defined by the customer.
    3. 3. • Planning tool to optimize results by eliminating waste • Removes wasted steps and improves productivity • Non value adding activities: Scrapping, Sorting, Storing, Counting, Moving, Documentation etc. • Value adding activities :Machining, Processing, Painting, Assembling Value Stream Mapping
    4. 4. Why ? Provide optimum value to the customer through a complete value creation process with minimum waste in:  Design (concept of customer needs)  Build (order to delivery)  Sustain (in-use through life cycle to service)
    5. 5. • Flowchart • Depicts and improves the flow and processing of inventory • Usage of symbols (the language of lean). • Usually includes People, Tools and technologies, Physical facilities, Communication channels How ?
    6. 6. What flows?  “ITEMS” flow in a value stream  In manufacturing, materials are the items  In service, external customer needs are the items
    7. 7. Symbols used in VSM
    8. 8.  Generally VSM has four major steps as given by Rother and Shook (1996): • Lean production means continuous improvement, we must keep on changing future state into current state
    9. 9. Lean Production uses Takt Time as the time in which we get a finished product or assembly. If you have a Takt Time of two minutes that means every two minutes a complete product or assembly is produced off the line. Takt Time Takt Time = Available time/ customer demand
    10. 10. Welding process: Takt Time = Available time/ customer demand = 27 *1320 *60/50000 = 42.7 sec. Complete cycle time of welding (CT+LT): Number of working days - 27 Net working time per day - 1320 min. Demand for month - 50000 Welding Cycle time - 43 sec Lead time - 8 sec Welding Production per day - 1320*60 / (43+8) =1550 parts per day (should be 1854) Example of one of the improvements It is found that cycle time of complete welding process exceeds the takt time so there is need to improve the process capability of welding process to meet the demand of customer within the time. We are improving the cycle time of welding process by introducing a new welding machine and by improving layout of weld shop. Cycle time before improvement = 43sec. Cycle time after improvement = 22 sec. % improvement in production = (2600 – 1550)/1550 There is near about 67% improvement by improvement in value adding activities.
    11. 11. Some wastes of LEAN eliminated by VSM:  Overproduction  Defects  Motion  Waiting  Long Transportation Routes  Underutilized people  Extra Processing  Inventory
    12. 12.  It helps to visualize the station cycle times, inventory at each stage, manpower and information flow across the supply chain.  Enables a company to ‘see’ the entire process in both its current and desired future state  Bridges the gap between the current state and the future state.  Gives a better value to the customer Conclusion
    13. 13. Danke!!

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