VSM is Used in Helping to Identify & eliminate the 8 Types of Waste. It helps us to design an future state process.

1. Presented By- Krishna Heda Value Stream Mapping

2. VSM is Used in Helping to Identify the 8 Types of Waste Over Production Inventory Transportation Waiting Motion Over Processing Correction Not Utilizing Human Resources

3. To be successful, a Total System Strategy must be employed. The Total System Strategy is facilitated by committed leadership, knowledge, an effective planning process and a bias towards action. Total System Strategy Flow Flow Operational Availability Workplace Organization Material Movement Employee Environment & Involvement Quality Flow Manufacturing (MSD) Waste Elimination Leadership Planning Knowledge Action Flow Flow

5. Objectives Why Map the Value Stream?

8. Current State

9. Process

10. Introduction to Value Stream Mapping A Value Stream includes all elements (both value and non-value added) that occur to a given product from its inception as a raw material through delivery to the customer. Definition of Value Stream

11. Value Added & Non-Value Added

12. Waste

14. Definition of VSM What is Lean? “More with Less” or “Less with Less” Less Downtime of Equipment Less Inventory Less waste of Materials Less waste of Supplies Less “Non Value Added” Less Scrap Less Rework Less Absenteeism Less Injuries Less Lead-time Less Errors in Production

15. Indications of Opportunities EMPLOYEE SYMPTOMS * Frustration * Low Morale * Absenteeism * Negativism * “It’s Not My Job” EXTERNAL INDICATORS * Warranty Costs * Negative Publicity * Pricing Inflexibility * Market Share Drop

16. Value Stream Mapping

19. Identify Opportunities for Improvement ? Data Collection

21. Map Current State The Steps Select a Product Family Form a Team Understand Customer Demand Map the Process Flow Map the Material Flow Map the Information Flow Calculate Total Product Cycle Time Detail Off-Line Activities Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: Step 8:

22. Tools Introduction to Value Stream Mapping Scrap Manufacturing Process Kaizen Lightning Burst Outside Source/ Customer Data Box Inventory I o o o Truck Shipment Finished Goods to Customer Push Arrow Supermarket Buffer or Safety Stock Manual Information Flow Electronic Information Flow Production Kanban Withdrawal Kanban Signal Kanban Kanban Post

26. Customer Map Current State Step 4: Map the Process Flow Demand/month: Part A = Part B = Part C = # of shifts = Inventory Part A = Part B = Part C = # of shifts = Shipping Assembly Welding Stamping Takt = C.T. = D.T. = FTQ = 90% C/O Time = Lot Size = # of Shifts WIP = Takt = C.T. = D.T. = 20% FTQ = C/O Time = Lot Size = # of Shifts WIP = Takt = C.T. = D.T. = FTQ = C/O Time = 4 hrs. Lot Size = # of Shifts WIP = Changeover Downtime FTQ

27. Map Current State Step 6: Map the Information Flow Customer Demand/month: Part A = 705 pcs. Part B = 600 pcs. Part C = 1650 pcs. # of shifts = Inventory Part A = 750 pcs Part B = 600 pcs Part C = 1650 pcs # of shifts = Shipping Assembly Welding Stamping Takt = C.T. = D.T. = FTQ = 90% C/O Time = Lot Size = # of Shifts WIP = 550 pcs. Takt = C.T. = D.T. = 20% FTQ = C/O Time = Lot Size = # of Shifts WIP = 60 pcs. Takt = C.T. = D.T. = FTQ = C/O Time = 4 hrs. Lot Size = # of Shifts WIP = 25 pcs. Changeover Downtime FTQ I I I I 2 x/ day 2 x/ week Supplier 1,200 pcs 1,500 pcs 800 pcs 500 pcs PC & L Weekly Build Schedule Daily Ship Schedule 6 week rolling forecast 6 week rolling forecast Weekly Order Weekly Order

28. Map Current State Step 7: Calculate Total Product Cycle Time Customer Demand/month: Part A = 705 pcs. Part B = 600 pcs. Part C = 1650 pcs. # of shifts = Inventory Part A = 750 pcs Part B = 600 pcs Part C = 1650 pcs # of shifts = Shipping Assembly Welding Stamping Takt = C.T. = D.T. = FTQ = 90% C/O Time = Lot Size = # of Shifts WIP = 550 pcs. Takt = C.T. = D.T. = 20% FTQ = C/O Time = Lot Size = # of Shifts WIP = 60 pcs. Takt = C.T. = D.T. = FTQ = C/O Time = 4 hrs. Lot Size = # of Shifts WIP = 25 pcs. Changeover Downtime FTQ I I I I 2 x/ day 2 x/ week Supplier 1,200 pcs 1,500 pcs 800 pcs 500 pcs PC & L Weekly Build Schedule Daily Ship Schedule 6 week rolling forecast 6 week rolling forecast Weekly Order Weekly Order .27 days .17 days .4 days .5 days 1.0 days .18 days .02 days .008 days TPc/t = 2.5 days

29. Current State

36. Process/Product Layout

37. How to Think

38. Efficiency

40. Guidelines to Future State

41. Achieving The Future State

42. Pacemaker Loop

43. Identify the Pacemaker

44. Where will you need to use supermarket pull systems to control production of upstream processes? What is Takt Time? Will you build to a finished goods supermarket or directly to shipping? Where can you use continuous flow processing? At what single point in the production chain will you schedule production? (Typically, this will be the final process.) How will you level the production mix at the pacemaker process? What increment of work will you consistently release and take away at the pacemaker process? What process improvements will be necessary at the value stream to flow as your future state design specifies? Consider Key Questions

45. Develop A Plan

46. Future State

47. Map Future State Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: The Steps Validate Customer Demand Draw the Future State Process Flow Map the Future State Material Flow Map the Future State Information Flow Calculate Total Product Cycle Time Detail Off-Line Activities Outline a Plan A simple way to approach the Future State Map is to begin by modifying the Current State Map.

48. Map Future State Customer demand should be validated to ensure accuracy and that consideration has been given for future business. Step 1: Validate Customer Demand X pcs / month Std Pack Qty # Shifts Customer

49. Map Future State Finished Goods Assembly Layout Welding Stamping X pcs / month Std Pack Qty # Shifts C/O Time = CT = TAKT Time 3 Shifts DT = Scrap = 0 Overtime 2 Shifts Max Size # Material Handlers C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework = C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework= Small Lot # Operators WIP = WIP = WIP = Customer Step 2: Draw the Future State Process Flow List the items needed for lean process flow

50. Map Future State Finished Goods Assembly Layout Welding 6 x / Day Daily Stamping X pcs / month Std Pack Qty # Shifts C/O Time = CT = TAKT Time 3 Shifts DT = Scrap = 0 Overtime 2 Shifts Max Size # Material Handlers C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework = C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework= Small Lot # Operators WIP = WIP = WIP = Customer Steel Supplier Step 3: Draw the Future State Material Flow

51. Map Future State Rolling 6 wk Forecast Finished Goods Assembly Layout Welding 6 x / Day PC & L 6-wk forecast Daily Level Box DA1 DA2 DA3 Stamping X pcs / month Std Pack Qty # Shifts Weekly Order C/O Time = CT = TAKT Time 3 Shifts DT = Scrap = 0 Overtime 2 Shifts Max Size # Material Handlers C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework = C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework= Small Lot # Operators WIP = WIP = WIP = Customer Step 4: Draw the Future State Informational Flow Steel Supplier

52. Step 5: Calculate Total Product Cycle Time (TP c/t) Map Future State Rolling 6 wk Forecast Finished Goods Assembly Layout Welding 6 x / Day PC & L 6-wk forecast Daily Level Box DA1 DA2 DA3 Stamping X pcs / month Std Pack Qty # Shifts Weekly Order C/O Time = CT = TAKT Time 3 Shifts DT = Scrap = 0 Overtime 2 Shifts Max Size # Material Handlers C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework = C/O Time = CT = TAKT Time 3 Shifts DT = Scrap/Rework= Small Lot # Operators WIP = WIP = WIP = Inv .Time Proc .Time TPc /t = ? ? days ? days ? days ? days ? days ? days ? days Customer Steel Supplier

54. Original Condition Step7: Outline a Plan Map Future State Future Condition Inj: Molding 2 Sender Ass’y 2 MSS Ass’y Plants 7 Stamping 10 Tank Ass’y 4 Perform to TAKT & Pitch. Produce to Order Load Leveling and Pull Zone Maintenance & Fast Response Labels Level ABABA. . . Staging by Truck card by card (Pitch = 14 Units) 1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH Establish TAKT & Flow in Tank Ass'y Stamping Changeover Reduction Reduce Stamping Buffer Move Ass'y to Plant 10 Establish TAKT & Flow in Sender Ass'y Pull To Sender Ass'y Training 1999 2000 Activity Inj: Molding 2 Sender Ass’y 2 MSS Tank Ass’y Stamping Fuel Pump Ass’y I I I I I I Ass’y Plants 2 12 10 4 Cycle-Time Driven. Batches. Change Over Change Over No Flow Attendance No Flow Uptime Item Current Target Total product cycle time Parts / Person Hour Delivery Performance Inventory (days) Overtime Uptime METRICS

55. Linkage to Improvement Workplace Organization 5S Deploy Visual Controls Layout Waste free - Eliminate waste thru Continuous Improvement Deploy and maintain appropriate Kanbans Uninterrupted flow Error Free Processing Insignificant Changeover

58. Eliminate Waste Consider Key Questions Flow Manufacturing 1 Piece Flow, Employee Involvement Empowered, Continuous Imp. Workplace Organization Std. Work, 5S, EH&S Quality RRCA, Process Certification Roadmap Operational SMED, TPM, MP Material Movement FIFO, Pull System

60. Summary Getting Started Be Wise… Observe…it is necessary to physically observe the value stream. This provides the greatest opportunity to identify and eliminate waste. Be Persistent... Value stream mapping is an iterative process. Todays future state is tomorrows current state. This is what continuous improvement is all about.

61. Is the Time NOW

62. Achieving the Future State