Training-Presentation

1. Central Electronic Plants – Continental Business System
Value Stream Mapping & Value Stream Design
Workshop

2. Central Electronic Plants – Continental Business System
Value Stream Mapping and Value Stream Design
Workshop Agenda
© Continental AG
2
Time Day 1 Day 2
08.30 – 09.00 Registration Reflections on Day 1
09.00 – 09.30
Welcome Remarks
Administrative Details
Expectations of the participants
Workshop 2: Additional
Mapping
09.30 – 10.00 Group Discussion: Review of Lean
10.00 – 10.30
Discussion: „Value Stream Mapping“
an Approach
Discussion: “Value Stream
Design”
10.30 – 11.00 Morning Break
11.00 – 11.30 Workshop 1: Preparation of current
state map
Workshop: Development of
solutions
11.30 – 12.00
12.00 – 13.00 Lunch Break
13.00 – 13.30
Workshop 2: Mapping the Current
State thru Gemba Walk
Workshop: Development of
solutions
13.30 – 14.00
14.00 – 14.30
Workshop: Drawing of Future
State Map
14.30 – 15.00
15.00 – 15.30
15.30 – 16.00 Afternoon Break
16.00 – 16.30
Discussion / Feedback Session Discussion / Feedback Session
16.30 – 17.00
17:00 – 17:30
Note:
It may be necessary to have
a refresher training to better
understand CBS. If so, use
the CBS Bronze Level
Training.

3. Central Electronic Plants – Continental Business System
VSM / VSD: “Why”
Training will highlight the
benefits of using the Tools
associated with CBS. The Value
Stream Design Method mainly
support the CBS Principles of
Flow, Pull and Simplicity
33

4. Central Electronic Plants – Continental Business System
What is Lean?
‘Lean’ refers to the Toyota Production System (TPS) pioneered by
Taiichi Ohno
It is an "Approach to manage:
Customer relations
The supply chain
Product Development
Production Operations
Womack and Jones
Ohno says that ‘The basis of TPS is the absolute elimination of
waste’
4

5. Central Electronic Plants – Continental Business System
What is Lean Continued.....
Actions to Move the Organization closer to the ideal state
which is:
Provide customers with what they need
In the right quantity
When needed
Without waste
5

6. Central Electronic Plants – Continental Business System
Definition of Value
The definition of "Value" should be viewed from the perspective
of the customer:
Will the customer pay for the activity being performed in
the process
The action should be done correctly the first time
The action must modify the product or service at some
level
Eradicating waste and maximizing value is central to the "Lean"
approach.
"Waste" is the opposite of value, it is anything for which the
customer will not pay
6

7. Central Electronic Plants – Continental Business System
Definition of Value
Where do we find waste?
We find waste in the processes we use
How do we find the waste?
We analyze the processes in detail
What type of processes do we have?
Visible processes, manufacturing, document processing
Transactional processes, difficult to see what is happening
7

8. Central Electronic Plants – Continental Business System
Definition of Value
The definition of “Transactional Processes" as used here is:
Processes where work is performed but the actions, interactions
and details of the steps are not easily identified
Why is it important to see the detail?
In order to identify and eliminate the waste we must be able to
see every detail of the process
8

9. Central Electronic Plants – Continental Business System
7 Wastes | Process Waste
Ohno identified 7 types of waste
7 Wastes
Defects
Overproduction
Inventory
Extra processing
Motion
Waiting
Transportation
Taiichi Ohno
9

10. Central Electronic Plants – Continental Business System
Waste
How do you find waste?
Step 1:
Ensure you have a good 5S system in place
Sort
Set in order
Shine
Standardize
Sustain
Step 2:
Learn to look for waste in everything you do
Work on a Project
10

11. Central Electronic Plants – Continental Business System
Waste
What do you do when you find waste?
Correct if you can
Use the CIM system
Work with your Project team to implement corrective actions
Inform your Team Leader/Supervisor
Discuss at team meetings
11

12. Central Electronic Plants – Continental Business System
Reference & Reading
Flow in the Office by Carlos Venegras
Learning to See by Mike Rother and John Shook
Creating Continuous Flow by Mike Rother and Rick Harris
Creating Level Pull by Art Smalley
12

13. Central Electronic Plants – Continental Business System
Value Stream Mapping & Value Stream Design
Workshop

14. Central Electronic Plants – Continental Business System
A Value Stream is the actions (both value-added and nonvalue-added)
currently required to bring a product through the main flows essential to
every product:
The production flow from raw material into the arms of the customer.
Value Stream Mapping (VSM) shows the current value stream of a
product from the receipt of raw materials until the shipment of finished
goods to the plant’s customer.
Value Stream Design (VSD) drafts a future state and the necessary
process improvements before these are implemented. VSD can also be
used in the planning phase of new production plants as well as in
designing a new production process.
What is a Value Stream?
© Continental AG
14

15. Central Electronic Plants – Continental Business System
Helps to visualize more than just the single process level in production to see the flow
Helps to see the waste as well as the sources of waste in the value stream
Provides a common language for talking about manufacturing processes
Makes decisions about the flow apparent
Ties together lean concepts and techniques, which helps avoid “cherry picking”
Show the linkage between the information flow and the materials flow
Forms the basis of an implementation plan
Why do a Value Stream Map?
© Continental AG
15
Wherever there is a product for a customer, there is also a value stream. The challenge is to recognize and see it. (Mike Rother)
Supplier
Pre -
Assembly
Test/
Control
Assembly
Customer
Steering
10 Days
Value Stream Mapping
Mat. -flow
Mat. -Flow
Information flow
Information flow
Information flow
Supplier
Pre-
Assembly
Test/
Control
Assembly
Customer
Steering
1 Day
FIFO
Information flow
Mat. -flow
Mat. -flow
Information flow
Information flow
Value Stream Design

16. Central Electronic Plants – Continental Business System
Implementation Phase
Mapping Phase Design Phase
Process Framework: Execution of VSM/VSD
Employees within the Value Adding Process
(All Functions, Responsibility, Qualification)
Required Customer Information:
BOM structure, Product Split, Ordering Behavior
Selection of a
Product
Family
Nomination
of a Value
Stream
Leader
16 © Continental AG
CBS Principles,
Methods, Tools
Value
Stream
Mapping
Current
Material and
Information
flow in the
Production
Value
Stream
Design
Material and
Information flow
is focused on
Value Stream
Principles
Implementation
(Value Stream
Plan)
Roadmap
Review

17. Central Electronic Plants – Continental Business System
Value Stream Mapping Symbols
© Continental AG
17

18. Central Electronic Plants – Continental Business System
Value Stream Mapping Symbols
© Continental AG
18

19. Central Electronic Plants – Continental Business System
The 10,000 Meters View
What do you see at 10,000 Meters?
The general topography, not the detail
How the area is generally laid out
A high level map of the process
Focuses on the big picture
Limit the map to 4 – 7 steps; less than 4 steps shows very little information
© Continental AG
19
RAW Warehouse Production 1 Production 2 FG Warehouse

20. Central Electronic Plants – Continental Business System
The 100 Meters View
© Continental AG
20
Solder Paste
Printing
SMD
Placement
Reflow
Soldering
Automated
Inspection
Verification
Depaneling
Manual
Insertion
Wave
Soldering
Visual
Inspection
Flash
Programming
Function
Testing
Case
Mounting
Final
Testing
Packing
What do you see at 100 Meters?
The more detailed view, but not so much that the detail becomes overwhelming
Helps to understand how the product moves from one process to another
Mapping...
The process as it is currently, warts and all; not how we would like them to be (i.e.,
sanitized version)
Becomes much easier if the team goes and walks the process, trying to find out how
things actually operate.
RAW Warehouse Production 1 Production 2 FG Warehouse

21. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
21
1. Mapping Phase 2. Design Phase
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
 Value-stream mapping means walking and drawing the processing
steps (material and information) for one product family from door to
door in the plant as it is today
3. Implementation
Phase
Selection
of
Product
Family
V
Review
VI

22. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
22
Process Steps
Customers care ONLY about their specific products!
It is necessary to focus on one product family.
Drawing all product flows on one map is too complicated.
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI

23. Central Electronic Plants – Continental Business System
Definition point of view Definition of product family
... starts with level 1 or 2 and goes down systematically
1. Level: SCM-network
2.Level: location
3. Level: segment
4. Level: machine cells
5. Level: machine
Starting point
products
product 1
product 2
product 3
product 4
product 5
...
...
process
1
process
2
process
3
...
...
process steps
Product-
family
Value Stream
Definition of product family
23 © Continental AG

24. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
24
Process Steps
Focus: Material and information flow for a product (all processes and how
each is scheduled).
Target: Individual processing areas should operate in a way that is optimum
from the perspective of the value stream.
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI

25. Central Electronic Plants – Continental Business System
Selection of Value Stream Leader
Role Expectations:
Leads the creation of the current state and future state value stream maps
and the implementation plan for getting from the present to the future.
Able to make change happen across functional and departmental
boundaries.
Monitors all aspects and reports progress of implementation
Qualification:
Hands-on person
Credible
A good facilitator
Knowledgeable in at least some areas of the process
© Continental AG
25

26. Central Electronic Plants – Continental Business System
VALUE STREAM MAPPING
11 Steps to Create a Future State Map
© Continental AG
26
Mapping the
Current State &
Future State
1
Identify the Customer
Requirement (Takt Time)
2
Identify the Processes /
Gather Process
Parameters and WIP
3
Draw the Material Flow
4
Draw the Information
Flow
5
Create the Timeline
Prepare to
create the
Future State
6
Check all Cycle Times to
Customer Takt
7
Check where to
implement Continuous
Flow
8
Check application of
Supermarket
9
Reduce Scheduling to
One Process Only
(Pacemaker)
10
Identify Other Areas for
Further Improvements
11
Creating the
Future State
Map

27. Central Electronic Plants – Continental Business System
Begin with a quick walk along the entire door-to-door value stream to get a
sense of the flow and sequence of processes.
Always collect current-state information while walking along the actual pathways
of material and information flows.
Begin at the shipping end and work upstream.
Bring your stopwatch and do not rely on standard times or information that you
do not personally obtain.
Map the whole value stream.
Begin your rough sketch by hand and in pencil right on the shop floor as you
conduct your current-state analysis and clean it up later.
A few mapping tips
© Continental AG
27

28. Central Electronic Plants – Continental Business System
Five steps of drawing the Current Map
Value Stream Mapping
© Continental AG
28
Analyze the current state
in five steps:
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Identify
Customer
Requirement
(Takt Time)
III.1 III.2 III.3 III.4 III.5
Identify the
Processes &
Gather Process
Parameters and
WIP
Draw the
Material Flow
Draw the
Information Flow
Create the
Timeline

29. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
29
Variants within the product family: Which component are we looking for?
Customer takt, customer frequency and requirement fluctuation
Process steps and the related activities up to the completion
Stand alone and related processes
Identify
Customer
Requirement
(Takt Time)
III.1 III.2 III.3 III.4 III.5
Identify the
Processes &
Gather Process
Parameters and
WIP
Draw the
Material Flow
Draw the
Information Flow
Create the
Timeline

30. Central Electronic Plants – Continental Business System
Value Stream Mapping
Drawing the customer requirements
© Continental AG
30
Customer
18 Variants
Weekly demand
6.000
Customer tact time
24s
Takt time =
available working time per day
customer demand rate per day
5 Shifts per week x 8h x 3.600
6.000 pieces per week
= = 24 sec
The customer orders this product each 24s at 5 shifts per week.
Takt time = 24 sec

31. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
31
Process steps and the related activities up to the completion
Stand alone and related processes
Important process parameters
Relevant stocks: Quantity of WIP in the system
Identify
Customer
Requirement
(Takt Time)
III.1 III.2 III.3 III.4 III.5
Identify the
Processes &
Gather Process
Parameters and
WIP
Draw the
Material Flow
Draw the
Information Flow
Create the
Timeline
All data have to be collected locally
Using data from the system like SAP is not allowed!

32. Central Electronic Plants – Continental Business System
Value Stream Mapping
Drawing the process steps
© Continental AG
32
Customer
18 variants
Weekly
requirement
6.000
Customer tact
24s
SMD Side B
1
SMD-Line
SMD Side A
1
Pre-
assembly.
2
Testing
1
Assembly
7
Testing
2
Shipping
CT: Cycle time PT: Process time ST: Setup time, number of operators

33. Central Electronic Plants – Continental Business System
CT Cycle Time Time interval between the parts or products which are finished
successively because of the process.
VA Value added Time Value added time in the process (Processing Time)
NVA Non Value added
Time
Non value added time in the process
ST Setup Time Change over time - last part of further batch to first part of
released new batch
WT Waiting Time Average time between material stock entry and consumption
TT Throughput Time Material-throughput time from the beginning of a value stream
(with several processes) to the ending: so it is the sum of CT and
WT
Definition of different times
© Continental AG
33

34. Central Electronic Plants – Continental Business System
Production scheduling
Production
Procurement and
Customer Logistics
Cycle time = Value add + non
vale add
Process time = Value add time
Lead time ( throughput time) =
Cycle Time + Waiting Time
Changeover time
Lot size / variants
Number of variants (all
product families)
Employees per shift
Parts per tray / carrier
Scrap rate / Rework
First Pass Yield (FPY)
Overall Equipment
Effectiveness (OEE)
Inventory in production
...
Recording the current status
34 © Continental AG
Material:
Special parts
Multi usage parts
...
Data:
Frequency of deliveries
Location of the supplier
Replenishment lead time
Stock value (Warehouse,
production consignment
Stock)
Utilization shares
...
Finished Goods:
Boxes per Truck
Frequency of deliveries
Parts per box
'Back-flush' of finished goods
...
Scheduling
production planning
planning of the production
quantity
capacity planning
...
Control
productions start
scheduling
order control
...

35. Central Electronic Plants – Continental Business System
Collecting the process parameters and WIP
© Continental AG
35
Name of the station under analysis Amount of identical stations
dedicated to the same process
Amount of shifts planned on the
station per week Amount of hours planned on the
station during one shift
Number of employees working on
the station during one shift Total time (value added and non
value added) the machinery or the
person needs to complete its cycle
Value added time measured during
one cycle of the machinery or the
person Time necessary to switch from
production of one product reference
to a new one, including the potential
defectives parts associated (Time
from last good product A to first
good product B produced in serial
mode).
Ratio of time (in %) during which
one station is able to produce good
part compare to the total open time
requested/planned
Average of the time necessary to
repair a station including support
function travel, diagnosis, repair, and
test time (First good part produced in
serial mode). The time before
support arrival should be included
but is not easy to measure.
Number of parts which are packed
in one e.g. container, pallet,
magazine in front of the process
Number of parts which are
processed at the same time
Average number of parts which are
produced between 2 changeovers
Number of products that have to be
produced on the station
Percentage (or ppm) of parts which
are scraped with the current station
identified as root cause
Percentage (or ppm) of good parts
out of the total number of parts. For
AOI, count the false calls even if
they are not considered in the
official FPY calculation

36. Central Electronic Plants – Continental Business System
Workshop 2: Tasks for ‘Go to Gemba’
Collecting the process parameters and WIP
Collection of all necessary data to map the current state of the value stream
Assign roles to members for completing Data box, counting WIP, measuring time
Get an overview of the door-to door value stream
Collect all necessary information for the door-to-door map:
all process steps and inventories from the customer upstream to the supplier
get an overview of external and internal information flows
collect amount of all inventories and buffers
understand all replenishment activities (information and material flow)
Look for improvements as you gather the information
...
Data collection on the defined product family line(s)
collect data on the data sheet for all production/logistic steps
collect information from employees working at the line
...
Go back to Gemba if during mapping you detect missing information

37. Central Electronic Plants – Continental Business System
Value Stream Mapping
Incorporating the process parameters and WIP
© Continental AG
37
Customer
18 variants
Weekly
requirement
6.000
Customer tact
24s
SMD Side B
2-shift
CT=8.5mins
PT=37s
ST=15min
Reliability
=85%
2 We. 630
63
1
SMD-Line
SMD Side A
350
35
1
Pre-
assembly.
70
70
2
Testing
420
42
1
Assembly
280
28
7
Testing
5200
2
Shipping
CT: Cycle time PT: Process time (value add time) ST: Setup time
2-shifts
CT= 8mins
PT =13s
ST =15min
Reliability
=80%
2-shifts
CT= 8mins
PT= 40s
ST=20min
Reliability
= 80%
2-shifts
CT= 6.5mins
PT=42s
ST=15min
Reliability
= 95%
1-shift
CT=5mins
PT=23s
ST=10min
Reliability
=98%
1-shift
CT=4.2mins
PT=32s
ST=3min
Reliability
=95%

38. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
38
From RAW Warehouse to Production
Material flow in the Production: (PUSH/PULL)?
Identify
Customer
Requirement
(Takt Time)
III.1 III.2 III.3 III.4 III.5
Identify the
Processes &
Gather Process
Parameters and
WIP
Draw the
Material Flow
Draw the
Information Flow
Create the
Timeline

39. Central Electronic Plants – Continental Business System
Value Stream Mapping
Current State with material flow
© Continental AG
39
Supplier
weekly
daily
Elektronic:
Special
treatment
CT: Cycle time PT: Process time (value add time) ST: Setup time
SMD Side B
2-Shifts
CT=8.5mins
PT= 37s
ST=15min
Reliability=85
%
2 We. 630
1
SMD Side A
350
1
Pre-
assembly
70
2
Testing
420
1
Assembly
280
7
Testing
5200
2
Shipping
2-Shifts
CT = 8mins
PT= 41s
ST=15min
Reliability=80%
2-Shifts
CT= 8mins
PT= 40s
ST=20min
Reliability=80
%
2-Shifts
CT=6.5mins
PT= 42s
ST=15min
Reliability=95
%
1-Shift
CT= 5mins
PT= 23s
ST=10min
Reliability=98
%
1-Shift
CT= 4.2mins
PT= 30s
ST=3min
Reliability=95
%
Customer
18 variant
Weekly
requirement
6.000
Customer tact
24 s

40. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
40
Identify
Customer
Requirement
(Takt Time)
III.1 III.2 III.3 III.4 III.5
Identify the
Processes &
Gather Process
Parameters and
WIP
Draw the
Material Flow
Draw the
Information Flow
Create the
Timeline
External communication or information flow
Central production planning
Consumption control
Internal information flow
Organization of job control and scheduling

41. Central Electronic Plants – Continental Business System
Value Stream Mapping
Drawing the information flow
© Continental AG
41
Supplier
weekly
daily
Elektronic:
Special
treatment
CT: Cycle time PT: Process time (value add time) ST: Setup time
SMD Side B
2-Shifts
CT= 8.5mins
PT= 37s
ST=15min
Reliability=85
%
2 We. 630
1
SMD Side A
350
1
Pre-
assembly
70
2
Testing
420
1
Assembly
280
7
Testing
5200
2
Shipping
2-Shifts
CT = 8mins
PT41s
ST=15min
Reliability=80%
2-Shifts
CT= 8mns
PT= 40s
ST=20min
Reliability=80
%
2-Shifts
CT= 6.5mins
PT= 42s
ST=15min
Reliability=95
%
1-Shift
CT= 5mins
PT= 23s
ST=10min
Reliability=98
%
1-Shift
CT= 4.2mins
PT= 30s
ST=3min
Reliability=95
%
Customer
18 variant
Weekly
requirement
6.000
Customer tact
24 s
30/60/90
forecast
Daily
order
30-daily plan
order weekly
Daily delivery
schedule
weekly plan
Elect. monthly. Production
planning
PPS

42. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
42
Cycle time
Waiting time of the parts in buffer or stocks
Complete process time
Complete Throughput time
Identify
Customer
Requirement
(Takt Time)
III.1 III.2 III.3 III.4 III.5
Identify the
Processes &
Gather Process
Parameters and
WIP
Draw the
Material Flow
Draw the
Information Flow
Create the
Timeline

43. Central Electronic Plants – Continental Business System
Value Stream Mapping
Creating the timeline
© Continental AG
43
Supplier
weekly
daily
Elektronic:
Special
treatment
CT: Cycle time PT: Process time (value add time) ST: Setup time; TT: Throughput time; WT: Wait Time
SMD Side B
2- Shifts
CT= 8.5mins
PT= 37s
ST=15min
Reliability=85
%
2 We. 630
1
SMD Side A
350
1
Pre-
assembly
70
2
Testing
420
1
Assembly
280
7
Testing
5200
2
Shipping
2-Shifts
CT = 8mins
PT= 41s
ST=15min
Reliability=80%
2-Shifts
CT= 8mins
PT= 40s
ST=20min
Reliability=80
%
2-Shifts
CT= 6.5mins
PT= 42s
ST=15min
Reliability=95
%
1-Shift
CT= 5mins
PT= 23s
ST=10min
Reliability=98
%
1-Shift
CT= 4.2mins
PT= 30s
ST=3min
Reliability=95
%
Customer
18 variant
Weekly
requirement
6.000
Customer tact
24 s
30/60/90
forecast
Daily
order
30-daily plan
order weekly
Daily delivery
schedule
weekly plan
Preview monthly Production
planning
PPS
WT + NVA WT + NVA WT + NVA WT + NVA WT + NVA TT= WT + NVA
PT(VA) PT(VA) PT(VA) PT(VA) PT(VA) PT(VA) Total PT(VA)
WT WT

44. Central Electronic Plants – Continental Business System
Percentage of Value Add
© Continental AG
44
It is a rate of value adding and not value adding processes within the
material flow. Based on the Percentage, the Future State Map can be
valuated.
Sum of Process Time (VA)
Throughput Time
% Value Add =

45. Central Electronic Plants – Continental Business System
Determination of Wait Time
© Continental AG
45
2 days
6,5 min 9 min
Testing
440
1
Assembly
7
2-Shifts
CT=6.5mins
PT=42s
ST=15min
Reliability=95%
1-Shifts
CT=9mins
PT=31s
ST=10min
Reliability=98%
Inventory 420 pcs.
440 pcs
220 pcs
= 2 days
Example where daily requirement is 220 pcs.:
Quantity WIP pieces
Wait Time = = days of inventory
Daily requirement

46. Central Electronic Plants – Continental Business System
Value Stream Design
© Continental AG
46
1. Mapping Phase 2. Design Phase
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
3. Implementation
Phase
Selection
of
Product
Family
V
Review
VI

47. Central Electronic Plants – Continental Business System
Five steps of drawing the Future State Map
Value Stream Design
© Continental AG
47
Preparing to create the
Future State:
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Check ALL
Cycle Times
According to
Customer Takt
IV.1 IV.2 IV.3 IV.4 IV.5
Check where to
implement
Continuous
Flow
Check
application of
FIFO Lanes &
Supermarket
Reduce
Scheduling to
One Process
ONLY
(Pacemaker)
Identify Other
Areas for
Improvement

48. Central Electronic Plants – Continental Business System
Key Questions:
1. What is the customer takt time?
2. Where can you use continuous flow?
3. Will you produce into a finished goods supermarket, or make to order?
4. Where do we need a supermarket pull?
5. Which process should be the pacemaker in the chain?
6. How should the product mix be leveled to the pacemaker?
7. Which process improvements are necessary?
8. Consider other improvement tools – SMED etc
Value Stream Design
© Continental AG
48

49. Central Electronic Plants – Continental Business System
Analysis of the current material and information flow identifying waste along the value
stream and potential areas of improvement
Approach:
Identify unnecessary planning steps
Identify unnecessary inventory and buffers
Identify replenishment methods (push, Kanban, pull)
Review Cycle Time, Process Time, OEE per workstation
Identify bottle neck processes and pacemaker
Review customer requirements (Customer Takt)
....
Target:
Knowledge of Customer Takt, Throughput time, Cycle time, Process time
Identification and common understanding of obvious problems
Brainstorming on possible improvements for value stream design
Workshop: Analysis of Current State Map
49 © Continental AG

50. Central Electronic Plants – Continental Business System
Value Stream Design
© Continental AG
50
Should optimize the value stream
Ensure that the Cycle Time is equal to or better than Customer Takt
Is the source of action for the action plan
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI

51. Central Electronic Plants – Continental Business System
Five steps of drawing the Future State Map
Value Stream Design
© Continental AG
51
Preparing to create the
Future State:
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Check ALL
Cycle Times to
ensure
Customer Takt
is achieved
IV.1 IV.2 IV.3 IV.4 IV.5
Check where to
implement
Continuous
Flow
Check
application of
FIFO Lanes &
Supermarket
Reduce
Scheduling to
One Process
ONLY
(Pacemaker)
Identify Other
Areas for
Improvement

52. Central Electronic Plants – Continental Business System
Produce to customer takt time.
Takt time is how often you should produce one part or product, based on the rate of
sales, to meet customer requirements.
Used to synchronize the pace of production with the pace of sales, particularly at the
pacemaker process
Reference number that gives you a sense for the rate at which a process should be
producing
Helps you see how you are doing and what you need to improve
Guidelines for a Lean Value Stream:
Takt Time
© Continental AG
52
Takt time =
available working time per day
customer requirement rate per day

53. Central Electronic Plants – Continental Business System
Five steps of drawing the Future State Map
Value Stream Design
© Continental AG
53
Preparing to create the
Future State:
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Check ALL
Cycle Times
According to
Customer Takt
IV.1 IV.2 IV.3 IV.4 IV.5
Check where to
implement
Continuous
Flow
Check
application of
FIFO Lanes &
Supermarket
Reduce
Scheduling to
One Process
ONLY
(Pacemaker)
Identify Other
Areas for
Improvement
Production Planning

54. Central Electronic Plants – Continental Business System
2. Develop continuous flow wherever possible.
Continuous flow is the most efficient way to produce. It refers to producing one piece
at a time, with each item passed immediately from one process step to the next
without stagnation in between.
The mapping icon to indicate continuous flow is simply the process box. So if you
introduce more continuous flow in your future state, then two or more current state
process boxes would combine into one box on the future state map.
Guidelines for a Lean Value Stream:
Continuous Flow
© Continental AG
54
Make one – Move one!

55. Central Electronic Plants – Continental Business System
Results Interaction in Value Stream Design:
Line Organization and One Piece Flow
© Continental AG
55
After
U-cell-assembly
flexible line
no buffer: One Piece flow
1-4 employees
1
2
3
5
4
6
Arbeitsplatz Material /Werkzeugträger
AP 2 AP 3 AP 5
AP 5
AP 1
15 Schichten
ZZ: 60s
keine
Stapel-
verarbeitung
15 Schichten
ZZ: 60s
keine
Stapel-
verarbeitung
15 Schichten
ZZ: 70s
keine
Stapel-
verarbeitung
15 Schichten
ZZ: 65s
keine
Stapel-
verarbeitung
15 Schichten
ZZ: 70s
keine
Stapel-
verarbeitung
15 Schichten
ZZ: 70s
keine
Stapel-
verarbeitung
AP 4 AP 6
Produktionsplanung
Before
Line assembly
combination of line
Buffer between workstations
6 workstations
Beispiel
AP 2
1
AP 3
1 1
AP 5
AP 5
1 1
AP 1
150
1
15 Schichten
ZZ: 60s
Stapel-
verarbeitung
30 Stück
15 Schichten
ZZ: 45s
Stapel-
verarbeitung
30 Stück
15 Schichten
ZZ: 65s
Stapel-
verarbeitung
30 Stück
15 Schichten
ZZ: 65s
Stapel-
verarbeitung
30 Stück
15 Schichten
ZZ: 45s
Stapel-
verarbeitung
30 Stück
15 Schichten
ZZ: 70 s
Stapel-
verarbeitung
30 Stück
AP 4 AP 6
40 90 10 70
Produktionsplanung
Transportweg:
100m
Transportweg:
50m
Transportweg:
250m
Transportweg:
150m
Transportweg:
25m
Workstation Material Flow
Production Planning
Production Planning

56. Central Electronic Plants – Continental Business System
Value Stream Design
Implementation of Continuous Flow
© Continental AG
56
FIFO
30/60/90
forecast
Daily
order
30-daily plan
order weekly
Daily delivery
schedule
Elect. monthly.
Supplier
weekly
daily
Electronic:
Special
treatment
SMD Side B
2-shifts
CT= 8.5mins
PT= 37s
ST=15min
Reliability
=85%
1,5
SMD-Line
SMD Side A
1,5
Pre-
assembly.
2
Testing
1
Assembly
3
Testing
5200
3200
1
Shipping
2-shifts
CT=8mins
PT =41s
ST =15min
Reliability
=80%
2-shifts
CT=8mins
PT=40s
ST=20min
Reliability
= 80%
2-shifts
CT=6.5mins
PT=42s
ST=15min
Reliability
= 95%
2-shifts
2.4mins
PT=48s
ST=0min
Reliability
=100%
2-shifts
CT=4.2mins
PT=42s
ST=3min
Reliability
=95%
Customer
18 variants
Weekly
requirement
12.000
Customer tact
50s
FIFO FIFO FIFO
PPS
FIFO
Daily Plan
Production
planning
WT + NVA WT + NVA WT + NVA WT + NVA WT + NVA
PT(VA) PT(VA) PT(VA) PT(VA) PT(VA) PT(VA)
WT TT= WT + NVA
Total PT(VA)
CT: Cycle time PT: Process time (value add time) ST: Setup time; TT: Throughput time; WT: Wait Time

57. Central Electronic Plants – Continental Business System
Five steps of drawing the Future State Map
Value Stream Design
© Continental AG
57
Preparing to create the
Future State:
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Check ALL
Cycle Times
According to
Customer Takt
IV.1 IV.2 IV.3 IV.4 IV.5
Check where to
implement
Continuous
Flow
Check
application of
FIFO Lanes &
Supermarket
Reduce
Scheduling to
One Process
ONLY
(Pacemaker)
Identify Other
Areas for
Improvement

58. Central Electronic Plants – Continental Business System
To reduce and control inventories, consider creating a FIFO Lane
FIFO (First In First Out)
Consider a FIFO lane when:
There is a large difference in cycle time and the supplying machine can produce another
product
FIFO Lane must be sufficient to cover:
Changeover
Other delays
Value stream design – FIFO Lanes
© Continental AG
58
Testing.
3-shifts
CT=6.5mins
PT=42s
ST=15min
Reliability
= 95%
Pre-
assembly.
3-shifts
CT=8mins
PT=15s
ST=20min
Reliability
= 80%
FIFO
Possible Impacts
Downtime TPM (MTTR)
Setup time
Machine reliability (OEE)
Reworking (FPY)
Capacity for other streams /
references
Lot size working time / bin
working time (max. Qty)
Information flow
Transport time

59. Central Electronic Plants – Continental Business System
Use Supermarket /Pull Systems to control production where continuous flow is not
possible.
Some processes are designed to serve multiple product families.
Processes are operated with different shift models.
Some processes are far away and shipping one piece at a time is not realistic
Some processes have too much lead time or are too unreliable to couple directly to
other processes in a continuous flow
Value stream design – Supermarket
© Continental AG
59
1. Customer Process goes to
supermarket and withdraws what it
needs when it needs it.
2. Supplying Process produces to
replenish what was withdrawn.
delivery
process
A
customer
process
B
product product
delivery
process
A
delivery
process
A
customer
process
B
customer
process
B
product
product product
product
supermarket
production KANBAN KANBAN for taking
Source: Rother / Shook: „Learn to see“
Supplying
Process
A
Customer
Process
B
SUPERMARKET
Product Product
Production KANBAN Withdrawal KANBAN

60. Central Electronic Plants – Continental Business System
Value Stream Design
Further Optimization – Supplier management
© Continental AG
60
Daily plan
Production
planning
PPS
30/60/90
forecast
Daily
order
30-daily plan
order weekly
Daily delivery
schedule
Elect. monthly.
Supplier
weekly
Special
treatment
Electronic:
Customer
18 variants
Weekly
requirement
12.000
Customer tact
50s
SMD Side B
Materials availability problems
=> installation supplier Kanban
supermarket/kanban
FIFO
2-shifts
CT= 8.5mins
PT= 37s
ST=15min
Reliability
=85%
1,5
SMD-Line
SMD Side A
1,5
Pre-
assembly.
2
Testing
1
Assembly
3
Testing
1
2-shifts
CT=8mins
PT =41s
ST =15min
Reliability
=80%
2-shifts
CT=8mins
PT=40s
ST=20min
Reliability
= 80%
2-shifts
CT=6.5mins
PT=42s
ST=15min
Reliability
= 95%
2-shifts
2.4mins
PT=48s
ST=0min
Reliability
=100%
2-shifts
CT=4.2mins
PT=42s
ST=3min
Reliability
=95%
FIFO FIFO FIFO
CT: Cycle time PT: Process time (value add time) ST: Setup time; TT: Throughput time; WT: Wait Time
FIFO
Shipping
WT + NVA WT + NVA WT + NVA WT + NVA WT + NVA
PT(VA) PT(VA) PT(VA) PT(VA) PT(VA) PT(VA)
WT
Total PT(VA)
TT= WT + NVA

61. Central Electronic Plants – Continental Business System
Five steps of drawing the Future State Map
Value Stream Design
© Continental AG
61
Preparing to create the
Future State:
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Check ALL
Cycle Times
According to
Customer Takt
IV.1 IV.2 IV.3 IV.4 IV.5
Check where to
implement
Continuous
Flow
Check
application of
Supermarket
Reduce
Scheduling to
One Process
ONLY
(Pacemaker)
Identify Other
Areas for
Improvement

62. Central Electronic Plants – Continental Business System
4. Try to send the customer schedule to only one production process
By using supermarket pull systems, typically only one point – the Pacemaker Process
– In your door-to-door value stream needs to be scheduled
How you control production at this process sets the pace for all upstream processes
Note that material transfers from the Pacemaker Process downstream to finished
goods need to occur as a flow!
Guidelines for a Lean Value Stream:
Pacemaker Process
© Continental AG
62
delivery
process
A
customer
process
B
product product
delivery
process
A
delivery
process
A
customer
process
B
customer
process
B
product
product product
product
supermarket
production KANBAN KANBAN for taking
Source: Rother / Shook: „Learn to see“
Process
1
Process
2 Customer
FLOW
delivery
process
A
customer
process
B
product product
delivery
process
A
delivery
process
A
customer
process
B
customer
process
B
product
product product
product
supermarket
production KANBAN KANBAN for taking
Source: Rother / Shook: „Learn to see“
Process
1
Process
2
Process
3
FIFO Customer

63. Central Electronic Plants – Continental Business System
Five steps of drawing the Future State Map
Value Stream Design
© Continental AG
63
Preparing to create the
Future State:
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Check ALL
Cycle Times
According to
Customer Takt
IV.1 IV.2 IV.3 IV.4 IV.5
Check where to
implement
Continuous
Flow
Check
application of
Supermarket
Reduce
Scheduling to
One Process
ONLY
(Pacemaker)
Identify Other
Areas for
Improvement

64. Central Electronic Plants – Continental Business System
Daily plan
max
70
max
70
max
140
525 max
5
Production
planning
PPS
30/60/90
forecast
Daily
order
30-daily plan
order weekly
Daily delivery
schedule
Elect. monthly.
Supplier
weekly
daily
Electronic
Customer
18 variants
Weekly
requirement
12.000
Customer tact
50s
Shipping
Testing
1
3-shifts
CT=4.2mins
PT=60s
ST=3min
Reliability
=95%
Assembly
3
3-shifts
CT=2.4mins
PT=48s
ST=0min
Reliability
=100%
FIFO
FIFO
SMD Side B
3-shifts8.5mins
PT=37s
ST=15min
Reliability
=85%
1,5
SMD-Line
SMD Side A
1,5
Pre-
assembly.
2
Testing
1
3-shifts
CT=8mins
PT =41s
ST =15min
Reliability
=80%
3-shifts
CT=8mins
PT=40s
ST=20min
Reliability
= 80%
3-shifts
CT=6.5mins
PT=42s
ST=15min
Reliability
= 95%
FIFO FIFO FIFO
Small reliability
=> totally Productive maintenance
Long Cycle times & Changeover times
=> SMED - Single Minutes Exchange of Die
Other Areas for Improvement
© Continental AG
64
WT + NVA WT + NVA WT + NVA WT + NVA WT + NVA
PT(VA) PT(VA) PT(VA) PT(VA) PT(VA) PT(VA)
WT TT= WT + NVA
Total= PT(VA)
CT: Cycle time PT: Process time (value add time) ST: Setup time; TT: Throughput time; WT: Wait Time

65. Central Electronic Plants – Continental Business System
Development of the future Value Stream Map (VSD)
Improvement of the current material and information flow eliminating the identified waste
along the value stream
Approach:
Adjust all process steps to the customer requirements (Customer takt)
Balance Cycle Time, Process Time, OEE per workstation
Eliminate push by using flow or pull principles
Eliminate unnecessary planning steps
Define the method for handling raw materials and finished products
....
Target:
Calculation of the new Throughput time, Cycle time, Process time
Common understanding of obvious problems
Elimination of waste and implementation of all possible improvements using CBS methods
and tools
Workshop: Design Phase
65 © Continental AG

66. Central Electronic Plants – Continental Business System
Value Stream Mapping
© Continental AG
66
1. Mapping Phase 2. Design Phase
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Completing a Current State Map and a Future State Map is of no value
(waste) without an Action Plan to implement and a Review Plan to
ensure the Action Plan is being implemented
3. Implementation
Phase
Selection
of
Product
Family
V
Review
VI

67. Central Electronic Plants – Continental Business System
Five steps of drawing the Future State Map
Value Stream Implementation
© Continental AG
67
Selection
of
Value
Stream
Leader
Mapping
of
current
state
Design of
future state
Action
Plan
I II III IV
Selection
of
Product
Family
V
Review
VI
Future State Map
Steps to reach the future state
Responsible Persons
Schedule

68. Central Electronic Plants – Continental Business System
„How do you eat an elephant?“
The Future State Value Stream cannot be implemented overnight and in one go.
Consider the loops in the Future State Value Stream in planning implementation.
Plan the actions, identify milestones, define due dates and assign responsibilities
Actions can be categorized as follows:
Completion within 30 days
Completion within 90 days
Completion longer than 90 days
Documentation is a must!
Use the Project Charter
Use the A3/A4 Report
https://workspace1.conti.de/content/00009902/default.aspx
This link will take you to the Project Platform for the latest version of the Charter and A3 forms
Action Plan
© Continental AG
68

69. Central Electronic Plants – Continental Business System
Project Charter - One Pager
69 / CBS by CEP / Project review training © Continental Automotive GmbH

70. Central Electronic Plants – Continental Business System
Action List Milestone Due Date Responsible
Phase 1 (Completion within 30 days)
Phase 2 (Completion within 90 days)
Phase 3 (Completion longer than 90 days)
Action Plan (Sample Template)
© Continental AG
70

71. Central Electronic Plants – Continental Business System
Example Roadmap
© Continental AG
71
Nov. Dez. Jan. Feb. März Apr. Mai
Activities plant xyz Workshop
Dimension/
Supermarket/ Kanban
Kick off
VSM Workshop
Collecting data and
installation of Kanban in
the housing area
Layout planning,
Kanban cards
Final release of concept
Training of employees
Kanban Board & cards
Start of implementation
Continuous
Improvement
Final presentation pilot
implementation
Roll out planning
Kick Off Roll out
Roll out

72. Central Electronic Plants – Continental Business System
https://workspace1.conti.de/content/00009902/default.aspx
....
…
…
…
…
…
…
…
…
…
…
2 – Project description /Background
3 – Problem statement / Current situation
4 – Goal statement / Objective
5 – Root cause analysis
6 – Future state, counter measures, savings/benefits
7 – Confirmation of effect
8 – Follow up actions, read across
…
….
…

73. Central Electronic Plants – Continental Business System
Value stream design helps to see the material and information flow in order to
understand and holistically optimize the complete process
Summary
© Continental AG
73
1. Produce according to customer takt
2. Establish continuous flow everywhere is possible
3. Use supermarket - pull where continuous flow is not possible
4. Try to make production planning only at one process within the value stream
5. Release production orders at the pacemaker process
6. “Flow where you can, Pull where you must”
Guideline for a lean value stream: