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VSM (Value Stream Map) Lean manufacturing methofology

This document provides an overview of value stream mapping (VSM) concepts and techniques. It defines VSM as a tool used to visualize and improve business processes. The document outlines key elements of a VSM, including current and future state maps. It also provides an example of mapping the current state of a tax preparation process to identify opportunities for improvement. The example highlights collecting data on process times, wait times, quality, and other metrics to evaluate the current value stream.

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Welcome Value Stream Mapping
Session Goals • Provide an overview of Value Stream Mapping • Demonstrate Value Stream Mapping as a tool to support Lean implementation. • Provide an overview of Lean Principles.
Introduction Name Current Position VSM Experience (if any)
What are the concepts of Lean? • The elements for Operating a Lean Facility • Principles and Elements are Interdependent • Develops lean thinking leaders to deliver lean business results Continuous Continuous Improvement Improvement Standardization Standardization Built-In- Built-In- Quality Quality Short Short Lead Time Lead Time People People Involvement Involvement
✦ Definition: Standardization is a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization. ✦ Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve. Standardization World Class Continuous Improvement Change ✦ Standardization Elements ➨ Management by Takt Time ➨ Workplace Organization ➨ Standardized Work ➨ Visual Management Standardization
✦ Built-In Quality Elements ➨ Product Quality Standards ➨ Manufacturing Process Validation ➨ In-Process Control & Verification ➨ Quality Feedback/Feedforward ➨ Quality System Management ✦ Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence. ✦ Purpose: To ensure that defects are not passed to the customer. Do not Do not Accept Build Ship a Defect! a Defect! Solve problems through teamwork! Solve problems through teamwork! Satis fyyo u rCu s to m e r... Satis fyyo u rCu s to m e r... The Built-In-Quality Motto Built In Quality
✦ Definition: The movement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer. ✦ Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty. ✦ Short Lead Time Elements ➨ Small Lot Packaging ➨ Fixed Period Ordering System ➨ Controlled External Transportation ➨ Simple Process Flow ➨ Scheduled Shipping/Receiving ➨ Temporary Material Storage ➨ Internal Pull/Delivery ➨ Level Vehicle Order Schedules ➨ Supply Chain Management long lead-time short lead-time   Short Lead Time
✦ Definition: A process based on standardization, whereby results are achieved, through a series of small improvements. ✦ Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste. ✦ Continuous Improvement Elements ➨ Andon Concept ➨ Business Plan Deployment ➨ Total Maintenance System ➨ Lean Design of Facilities, Equipment, Tooling and Layout ➨ Continuous Improvement Process ➨ Early Mfg. Design Integration (DFM/ DFA) ➨ Problem Solving ✦The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented. Continuous Improvement The Continuous Improvement Cycle Standardization Improvement Standardization Standardization Standardization Improvement Improvement
How Do We Expand VSM Throughout the Enterprise? • All the Principles and Elements apply, however, there is one big difference • In the factory, the process itself is very visible making it easy to see, study and improve • The processes in HR, Engineering, Purchasing, etc... are not as visible • What we need is a tool that will help make the process more visible
Value Stream Mapping • A tool originally used by the Toyota Production System experts to study processes • Developed and refined by John Shook and Mike Rother in Learning to See • Used in manufacturing, engineering and administrative offices by lean experts to improve business processes
What is a Value Stream? A value stream involves all the steps, both value added and non value added, required to complete a product or service from beginning to end
How Does Value Stream Mapping Fit With the Lean Journey • VSM is a tool used to support the implementation of lean strategies.
What Makes Value Stream Mapping Unique? • Visualizes the Process Flow from a systems perspective • Focuses on the customer and the customer’s requirements • Includes information flow and product movement • Summarizes the timeline as it relates to delivery to the customer • Documents performance characteristics of both the Value Stream and the individual process steps
Process 1 Process 2 Process Time Wait Time FTQ Process Time Wait Time FTQ Value Stream Map Elements Customer XYZ Org Supplier Orders Customer Orders Internal Scheduling Delivery Freq. Material Movement via PUSH Delivery Freq. I I I Supplier Inventory Lead Time
Value Stream Maps Enable a System View • Starts with a Focus on the Customer • Links process steps and information flow • Reveals problems with flow • Documents performance of the process – Customer Expectations – Process metrics – Visibility of progress and quality • Reveals waste • Establishes a common language • Provides a blueprint for improvement • Gets People involved in creating the future
VSM Analysis – Data Attributes • Lead time = – Processing time + Wait Time / Delays • Typical batch size • First-Time Quality – Reliability (e.g. system or equipment uptime) • Rework / revisions – % Complete and Accurate Inputs (% C&A) – Design Changes – Errors • Number of people involved – % utilization of people
VSM Case Study
Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Scoping the Scoping the Value Stream Value Stream Designing a lean flow through the enterprise. Future state drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Current state drawing
Jack’s Taxes Jack is a CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If Jack can improve the process for self-employed clients, he could take on more work during that time of year. Generally, the sequence of events begins for each client sometime late January with Jack’s assistant, John, sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. Jack sorts the receipts and documents, finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions. Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms. For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return. Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.
Data Set Tax Season: 8 weeks 40 self-employed clients Send Reminder: John P/T = 10 min FTQ = 100% Sort receipts & documents: Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet: Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions: Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50% Print and Collate IRS tax forms: John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 – 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms: Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client: John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%
Target from Future State Map From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 12 hours (720 Min.) Process Time Actual (post implementation) Current Estimate Metric SPQRC Measurable Metrics & Performance
Typical Steps for Current State Mapping • Document customer information & need • Identify main processes (in order) • Select data attributes (Q,R,C - minimum) • Perform value stream walk and fill in data boxes (how the process really works) • Establish how each process knows what to process next (how work is prioritized) and document information flow • Calculate process time, wait time, lead time, first time quality, and any other metrics necessary to evaluate your Value Stream
Icons Movement by Push Electronic Information Flow Weekly Schedule Worker In Box (Queue) IN MRP Wait-Time Conversation Information Flow Data Box P/T W/T FTQ Supermarket XOXO Leveling, Mix and/or Volume Withdrawal (Pull) F I F O First-In First-Out Flow Changeover Kaizen Lightning Burst Iterations Movement of “physical” property Reminder post-card Customer Process Box Technology Used MRP
Draw the Current State
Jack’s Taxes - Current State Customer Suppliers Start with Customer Then Suppliers 40 clients Client
Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Process Steps? Jack’s Taxes - Current State 40 clients Client
John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 3 days IN 3 days IN 1 day IN 3 weeks Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 IN Receipts & Docum ents Reminder post-card IN M i s s i n g d o c u m e n t s Cla rify de du ctio ns N otify of m issing docum ents Jack’s Taxes - Current State 50% 1 week P/T W/T FTQ Process Data, Information Flow, and Process Flow
IN IN IN IN IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Docum ents Reminder post-card M i s s i n g d o c u m e n t s Cla rify de du ctio ns N otify of m issing docum ents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: W/T P/T FTQ 7 wks, 2 days, 140 min Total Leadtime and FTQ ----- Total of P/T = 140 minutes Total of W/T = 7wks, 2days Jack’s Taxes - Current State X X X X X ---- ---- ---- ---- Total Lead Time = 7 wks, 2 days, and 140 min. Product of FTQ = 4.7%
Target from Future State Map 4.7% 7 Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SPQRC Measurable Metrics & Performance
Jack’s Taxes - Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN C la r if y d e d u c ti o n s
Waste The elements of production that add no value to the product: waste only adds cost & time Points to Remember About Waste: • It is important to consider waste in the context of the value that the process provides to the customer • Waste is really a symptom of problems in the system. It shows where the problems are • We need to find and address the causes of waste to improve the performance of the system
Waste in a Value Stream • Muri – Waste of unreasonableness or overburden to a person or a machine • Mura – Waste of inconsistency; Waste of unevenness • Muda – The seven forms of waste (COMMWIP)
FORMS FORMS OF OF WASTE WASTE I C O M W P M CURRENT THINKING WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT REQUIRED THINKING CONTINUOUS IMPROVEMENT Correction Over Production Motion Material Movement Waiting Inventory Processing WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE Shift Mindset WASTE WASTE Sending back forms for incomplete or inaccurate data Producing reports that are not used, producing reports before they are needed Searching for misplaced items Filing documents that will never be used again Keeping multiple copies of reports Processing excessive written communication to determine issues requiring attention (mental processing) Unreasonable -ness Unevenness Employee assigned two jobs due to understaffing End of month deadline causing overtime; all projects scheduled in 1Q with none in 2nd Delays in getting needed information, approvals, or decisions
Waste Exercise Participants identify waste on current state maps.
IN IN IN IN IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Docum ents Reminder post-card M i s s i n g d o c u m e n t s Cla rify de du ctio ns N otify of m issing docum ents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: W/T P/T FTQ 7 wks, 2 days, 140 min ----- Jack’s Taxes - Current State MM W W I I I I I P P P C C C C O
Lean Principle: Built-In-Quality Lean Principle: Built-In-Quality Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
Right Product Right Time! Understanding Customer Requirements Right Price!!
Built-In-Quality • Product Quality Standards • In-Process Control & Verification • Quality Feedback/Feed Forward
Product Quality Standards • Focus On The Customer – J.D. Power • Quality Standards must be easily understood by the Team members • Quality Standards must be Clear and Unambiguous
In Process Control & Verification Quality Feedback / Feed Forward Ability to signal for help when Sensing Abnormalities – Quality Must Be Assured In The Process – Error Proofing – In-Process Verification – Feedback / Feed Forward
Lean Principle: Lean Principle: Continuous Improvement Continuous Improvement Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
Andon ENABLERS BENEFITS 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4 Motion Correction Waiting
Andon • Implement corrective action • Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity ENABLERS BENEFITS 5 Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4
Andon •Team System •Team Leader Ratio •Clear Standards •Problem Solving Process •Employee Training •Standardized Work •Mutual Trust/Respect •Process Capability • Implement corrective action • Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity ENABLERS BENEFITS Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4 4
Lean Principle: Short Lead Time Lean Principle: Short Lead Time Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
Lean Principle: Short Lead Time (Just-in-Time Elements) • Simple Process Flow (Single Part Flow, Quick Set Up) • Small Lot Packaging • Level Order Schedules • Pull Systems
Flow All process steps occur in tight sequence (continuous flow), with little or no waiting?
Pull Each process step occurs only at the command of the downstream step in response to the pull of the internal customer.
TRY TO SCHEDULE ONLY 1 POINT FLOW WHERE YOU CAN, PULL WHERE YOU CAN’T Schedule Supermarket Schedule
CONTINUOUS FLOW PROCESSING Batch & Push Processing Continuous Flow “make one, move one” 3 Minutes for first piece 12 Minutes for total order 21 minutes for first piece
One Piece Flow - Order entry - Before File Batch Enter Batch Stack and Hold Acknowledge Orders Calculate Batch Total Batch Orders Open Mail
One Piece Flow - Order Entry – After File Order Enter One Order Acknowledge One Order Open One Envelope
Leveling - Heijunka • Uneven customer demand creates a challenge • Variation & fluctuation in volume (spiky customer demand) can lead to waste • In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation
Production Schedule Monday…….400 A Tuesday……100 A, 300 B Wednesday..200 B, 200 C Thursday…. .400 C Friday……….200 C, 200 A No Good Daily: 140 A, 100 B, 160 C Better: Every Part Every Day 50 B, 70 A, 80 C 50 B, 70 A, 80 C Monday Even Better: Every Part Every Ship Window Leveling
Why have small lots and leveling? • Small Lot Strategy – Shortens Cycle Time (The amount of time it takes to complete the task) – Reduces Excess Inventory – Improves Responsiveness • Production Leveling – Minimizes Stocks of Finished Products – Reduces Fluctuations in Flow – Balances Workload
Lean Principle: Lean Principle: People Involvement People Involvement Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
Multifunctional Workers • Minimal (or no) Job Description Silos • Rotate Jobs • Perform Several Tasks • Balance the Workload • Standard Work
Lean Principle: Standardization Lean Principle: Standardization Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
If there is no standard, there is no improvement Standardized Work • The best combination of people, equipment and material to meet customer demand. • An agreed upon set of work procedures to establish the best sequence for each process. • Start at a baseline and continuously improve
Materials Production Standardized Work Standardized work is used when there is a definable, repeatable process. Office Everyone can perform standardized work
Standardized work yields: • Shorter lead time • Reduced work-in-process • Reduced wait time • More flexibility, less waste • Ability to identify and fix problems • Reduced handling • Better response to customer demand • Balanced workload
TAKT TIME – Component of Standardized Work Synchronizes Pace of Production to Match Pace of Demand Rate for producing a product, and its components, based on rate of delivery. Available Time Takt Time = Customer Requirement / Demand
Lean Principle: Lean Principle: Continuous Improvement Continuous Improvement Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
Continuous Improvement • Everything Can Be Improved. Problems Are Opportunities. “No Problem” is a Problem. • Worker’s Ideas Are a Source of Improvement – Continuous Improvement (Kaizen) Teams – Problem Solving – Job Rotation – Total Productive Maint. – Suggestion Program • Steps to Improvement – Improve, Standardize, Stabilize and Repeat. The Continuous Improvement Cycle Standardization Improvement Standardization Standardization Standardization Improvement Improvement
Continuous Improvement • Standardized Work contributes to continuous improvement by: – Documenting the current best practice that provides a base from which to improve – Creating the stability necessary to make changes – Providing the tools to make waste highly visible
Lean Principle: Standardization Lean Principle: Standardization Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
• Workplace Organization - 5S Process • Standardized Work • Visual Management Grasp the Situation Workplace Management
Grasp Current Situation Continuous Improvement to Eliminate Waste Repeat Add Value- added Work; Standardize Workplace Management
Where you have problem points in the flow… Process Step 1 Process Step 2 Process Step 3 Process Step 4 Set up checks for Quality, Timing, Output Make Progress and Problems Visible Visual Management
E-Toyota Application of Heijunka Box
Takt Time Bar Chart 0 5 10 15 20 25 30 Stamping Body Paint Trim Shipping Departments (Sec)
Future State Questions Relating to Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
Future State Mapping
Using the Value Stream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Scoping the Value Stream Value Stream
Future State Questions Relating to Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
• Customer requirements? • Work flow smoothly? • Trigger & sequence work? • Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents C la r if y d e d u c ti o n s Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day IN COMBINE PROCESSES Stand. Work John A c c o r d i o n F i l e XOXO FIFO Customer Incentive
• Customer requirements? • Work flow smoothly? • Trigger & sequence work? • Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents C la r if y d e d u c ti o n s Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day IN COMBINE PROCESSES Stand. Work John A c c o r d i o n F i l e XOXO FIFO Customer Incentive
• Customer requirements? • Work flow smoothly? • Trigger & sequence work? • Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents C la r if y d e d u c ti o n s Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day IN COMBINE PROCESSES Stand. Work John A c c o r d i o n F i l e XOXO FIFO Data entry Worksheet training Individual 1040, 1040EZ training Reduce process time to 75 min Standardize Work Customer Incentive
IN 40 clients Mail forms form s to client Com plete Accordion File Checklist & Accordion File Jack’s Taxes Future State Check & sign forms IN Send Reminder Data entry + print forms FS Client FIFO max 1 day max 1 day XOXO 1 per day Over 8 weeks Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day Customer Requirements: •Tax Forms completed accurately •Finished before filling time •Lowest possible cost W/T P/T FTQ 100 min 2 days 98 % 2 days, 100 min 10 min 75 min 15 min 10 min 1 day 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ John 10 min 100% John 75 min 98% Jack 15 min 1 day 100% John 10 min 1 day 100% 98 % 100 % 100 % 100 %
98% 2 Days, 100 Min. 100 Min. Target from Future State Map 4.7% 7 Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SPQRC Measurable Metrics & Performance
Summary of Results – Potential Impact • Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time. • FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity. • Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster. • Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients. • Reduced personal overtime – Jack does not stay late signing returns anymore. • This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically, …
Implementation Planning
Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Scoping the Value Stream Value Stream Using the Value Stream Mapping Tool
Current Current State State The Methods / Action Steps The Methods / Action Steps are how you will get there are how you will get there Future State Changes The specific changes The specific changes (Kaizen Bursts) needed to (Kaizen Bursts) needed to move from CS to FS are move from CS to FS are your Objectives your Objectives
Business Plan Deployment (BPD) is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change
R e g u l a r a n d C o n s i s t e n t R e v i e w s Concrete GOALS Specific OBJECTIVES Clear & Measurable TARGETS A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies C o o r d i n a t i o n Common Measurements BPD Elements
Business Plan Deployment Is a PDCA Cycle 2 Tasks Plant Master Plan A c ti o n Annual Business Plan 1 2 3 4 Plan Do (Communicate & Implement) Check Act (Standardized & Countermeasures) Scorecard Plan Do Check Act Problem Description Direct Cause Cause Cause Cause Why? Why? Why? Why? Why? Root Cause
Plan Do Check Act TEACH! Leadership’s Role
Wrap-Up
Wrap-up • What did you learn today? • Did the program meet your expectations? • How can we improve this learning event?

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VSM (Value Stream Map) Lean manufacturing methofology

  • 1.
  • 2.
    Session Goals • Providean overview of Value Stream Mapping • Demonstrate Value Stream Mapping as a tool to support Lean implementation. • Provide an overview of Lean Principles.
  • 3.
  • 4.
    What are theconcepts of Lean? • The elements for Operating a Lean Facility • Principles and Elements are Interdependent • Develops lean thinking leaders to deliver lean business results Continuous Continuous Improvement Improvement Standardization Standardization Built-In- Built-In- Quality Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 5.
    ✦ Definition: Standardizationis a dynamic process by which we set standards of terminology, principles, methods, and processes within our organization. ✦ Purpose: The purpose of standardization is to stabilize, so as to achieve a base from which to grow and improve. Standardization World Class Continuous Improvement Change ✦ Standardization Elements ➨ Management by Takt Time ➨ Workplace Organization ➨ Standardized Work ➨ Visual Management Standardization
  • 6.
    ✦ Built-In QualityElements ➨ Product Quality Standards ➨ Manufacturing Process Validation ➨ In-Process Control & Verification ➨ Quality Feedback/Feedforward ➨ Quality System Management ✦ Definition: The methods by which quality is built into the process, in a way that defects are prevented, detected, and countermeasures are implemented to prevent recurrence. ✦ Purpose: To ensure that defects are not passed to the customer. Do not Do not Accept Build Ship a Defect! a Defect! Solve problems through teamwork! Solve problems through teamwork! Satis fyyo u rCu s to m e r... Satis fyyo u rCu s to m e r... The Built-In-Quality Motto Built In Quality
  • 7.
    ✦ Definition: Themovement of product or material in the right quantity, at the right time, to the right location, with the right equipment, at the lowest possible cost for both the supplier and the customer. ✦ Purpose: To achieve customer enthusiasm by delivering the customer his/her product more quickly, while maintaining good quality. Ultimately, our Company benefits through cost reduction and increased customer loyalty. ✦ Short Lead Time Elements ➨ Small Lot Packaging ➨ Fixed Period Ordering System ➨ Controlled External Transportation ➨ Simple Process Flow ➨ Scheduled Shipping/Receiving ➨ Temporary Material Storage ➨ Internal Pull/Delivery ➨ Level Vehicle Order Schedules ➨ Supply Chain Management long lead-time short lead-time   Short Lead Time
  • 8.
    ✦ Definition: Aprocess based on standardization, whereby results are achieved, through a series of small improvements. ✦ Purpose: To always advance ahead towards an ever more challenging target and make progress in Safety, People Involvement, Quality, Responsiveness, and Cost through the elimination of waste. ✦ Continuous Improvement Elements ➨ Andon Concept ➨ Business Plan Deployment ➨ Total Maintenance System ➨ Lean Design of Facilities, Equipment, Tooling and Layout ➨ Continuous Improvement Process ➨ Early Mfg. Design Integration (DFM/ DFA) ➨ Problem Solving ✦The diagram above shows how each time an improvement is implemented, it creates temporary instability. There will be a short period of instability until new standards are set, and applied. Only once the situation is truly stable can new improvements be implemented. Continuous Improvement The Continuous Improvement Cycle Standardization Improvement Standardization Standardization Standardization Improvement Improvement
  • 9.
    How Do WeExpand VSM Throughout the Enterprise? • All the Principles and Elements apply, however, there is one big difference • In the factory, the process itself is very visible making it easy to see, study and improve • The processes in HR, Engineering, Purchasing, etc... are not as visible • What we need is a tool that will help make the process more visible
  • 10.
    Value Stream Mapping •A tool originally used by the Toyota Production System experts to study processes • Developed and refined by John Shook and Mike Rother in Learning to See • Used in manufacturing, engineering and administrative offices by lean experts to improve business processes
  • 11.
    What is aValue Stream? A value stream involves all the steps, both value added and non value added, required to complete a product or service from beginning to end
  • 12.
    How Does ValueStream Mapping Fit With the Lean Journey • VSM is a tool used to support the implementation of lean strategies.
  • 13.
    What Makes ValueStream Mapping Unique? • Visualizes the Process Flow from a systems perspective • Focuses on the customer and the customer’s requirements • Includes information flow and product movement • Summarizes the timeline as it relates to delivery to the customer • Documents performance characteristics of both the Value Stream and the individual process steps
  • 14.
    Process 1 Process2 Process Time Wait Time FTQ Process Time Wait Time FTQ Value Stream Map Elements Customer XYZ Org Supplier Orders Customer Orders Internal Scheduling Delivery Freq. Material Movement via PUSH Delivery Freq. I I I Supplier Inventory Lead Time
  • 15.
    Value Stream Maps Enablea System View • Starts with a Focus on the Customer • Links process steps and information flow • Reveals problems with flow • Documents performance of the process – Customer Expectations – Process metrics – Visibility of progress and quality • Reveals waste • Establishes a common language • Provides a blueprint for improvement • Gets People involved in creating the future
  • 16.
    VSM Analysis –Data Attributes • Lead time = – Processing time + Wait Time / Delays • Typical batch size • First-Time Quality – Reliability (e.g. system or equipment uptime) • Rework / revisions – % Complete and Accurate Inputs (% C&A) – Design Changes – Errors • Number of people involved – % utilization of people
  • 17.
  • 18.
    Using the ValueStream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Scoping the Scoping the Value Stream Value Stream Designing a lean flow through the enterprise. Future state drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Current state drawing
  • 19.
    Jack’s Taxes Jack isa CPA and maintains a practice in personal, self-employed and small business income tax preparation. Jack would like to take on more corporate clients because of the higher margins. However, during the tax season, self-employed returns require long hours because of the frequent waits, delays and errors. If Jack can improve the process for self-employed clients, he could take on more work during that time of year. Generally, the sequence of events begins for each client sometime late January with Jack’s assistant, John, sending a reminder to submit their records as soon as possible. Then, sometime before the first of April, the client must bring in all necessary forms and receipts. Regular clients drop off or send their box of receipts and tax forms from various income sources. Jack sorts the receipts and documents, finding that most of the time, there is something missing. His next step is to prepare worksheets for the client in the Tax Software (TS) system. Once Jack starts filling out the worksheets, he frequently needs to confirm deductions such as what expenses qualify as business-related and details regarding retirement or insurance deductions. Once Jack has completed the worksheet, his assistant John actually prints and collates the IRS forms. For self-employed clients, John waits until Thursday when he prints all returns that have accumulated during the week from the TS system. Of course, Jack must review and sign each return. Finally, John completes the process by packaging and mailing the IRS forms with the necessary attachments to each client.
  • 20.
    Data Set Tax Season:8 weeks 40 self-employed clients Send Reminder: John P/T = 10 min FTQ = 100% Sort receipts & documents: Jack P/T = 30 min W/T = 1 week in inbox before sorting FTQ = 10% Prepare Worksheet: Jack Technology used: Tax Software (TS) P/T = 60 min W/T = 3 weeks in the inbox waiting to prepare worksheet W/T = 1 week due to interruptions FTQ = 95% Confirm deductions: Jack P/T = 10 min W/T = 1 week due to phone tag FTQ = 50% Print and Collate IRS tax forms: John Technology used: Tax Software (TS) P/T = 15 min W/T = 1 – 5 days in inbox before form prep (3 day average) FTQ = 98% Review and sign forms: Jack P/T = 15 min W/T = 3 days in inbox before signing FTQ = 100% Mail forms to client: John P/T = 10 min W/T = 1 day accumulation before collation and mailing FTQ = 100%
  • 21.
    Target from Future State Map FromCurrent State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 12 hours (720 Min.) Process Time Actual (post implementation) Current Estimate Metric SPQRC Measurable Metrics & Performance
  • 22.
    Typical Steps forCurrent State Mapping • Document customer information & need • Identify main processes (in order) • Select data attributes (Q,R,C - minimum) • Perform value stream walk and fill in data boxes (how the process really works) • Establish how each process knows what to process next (how work is prioritized) and document information flow • Calculate process time, wait time, lead time, first time quality, and any other metrics necessary to evaluate your Value Stream
  • 23.
    Icons Movement by Push ElectronicInformation Flow Weekly Schedule Worker In Box (Queue) IN MRP Wait-Time Conversation Information Flow Data Box P/T W/T FTQ Supermarket XOXO Leveling, Mix and/or Volume Withdrawal (Pull) F I F O First-In First-Out Flow Changeover Kaizen Lightning Burst Iterations Movement of “physical” property Reminder post-card Customer Process Box Technology Used MRP
  • 24.
  • 25.
    Jack’s Taxes -Current State Customer Suppliers Start with Customer Then Suppliers 40 clients Client
  • 26.
    Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review& sign forms Send reminder Prepare worksheet TS Process Steps? Jack’s Taxes - Current State 40 clients Client
  • 27.
    John 10 min --- 100% Jack 60 min 1week 95% Jack 10 min John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 3 days IN 3 days IN 1 day IN 3 weeks Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 IN Receipts & Docum ents Reminder post-card IN M i s s i n g d o c u m e n t s Cla rify de du ctio ns N otify of m issing docum ents Jack’s Taxes - Current State 50% 1 week P/T W/T FTQ Process Data, Information Flow, and Process Flow
  • 28.
    IN IN ININ IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Docum ents Reminder post-card M i s s i n g d o c u m e n t s Cla rify de du ctio ns N otify of m issing docum ents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: W/T P/T FTQ 7 wks, 2 days, 140 min Total Leadtime and FTQ ----- Total of P/T = 140 minutes Total of W/T = 7wks, 2days Jack’s Taxes - Current State X X X X X ---- ---- ---- ---- Total Lead Time = 7 wks, 2 days, and 140 min. Product of FTQ = 4.7%
  • 29.
    Target from Future State Map 4.7% 7Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SPQRC Measurable Metrics & Performance
  • 30.
    Jack’s Taxes -Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ IN C la r if y d e d u c ti o n s
  • 31.
    Waste The elements ofproduction that add no value to the product: waste only adds cost & time Points to Remember About Waste: • It is important to consider waste in the context of the value that the process provides to the customer • Waste is really a symptom of problems in the system. It shows where the problems are • We need to find and address the causes of waste to improve the performance of the system
  • 32.
    Waste in aValue Stream • Muri – Waste of unreasonableness or overburden to a person or a machine • Mura – Waste of inconsistency; Waste of unevenness • Muda – The seven forms of waste (COMMWIP)
  • 33.
    FORMS FORMS OF OF WASTE WASTE I C O M W P M CURRENT THINKING WASTE NOT DEFINED REACTTO LARGE EXAMPLES REACTIVE IMPROVEMENT REQUIRED THINKING CONTINUOUS IMPROVEMENT Correction Over Production Motion Material Movement Waiting Inventory Processing WASTE IS "TANGIBLE" IDENTIFY MANY SMALL OPPORTUNITIES LEADS TO LARGE OVERALL CHANGE Shift Mindset WASTE WASTE Sending back forms for incomplete or inaccurate data Producing reports that are not used, producing reports before they are needed Searching for misplaced items Filing documents that will never be used again Keeping multiple copies of reports Processing excessive written communication to determine issues requiring attention (mental processing) Unreasonable -ness Unevenness Employee assigned two jobs due to understaffing End of month deadline causing overtime; all projects scheduled in 1Q with none in 2nd Delays in getting needed information, approvals, or decisions
  • 34.
    Waste Exercise Participants identifywaste on current state maps.
  • 35.
    IN IN ININ IN Client 40 clients Sort receipts & documents Confirm deductions Mail forms Print & Collate forms TS Review & sign forms Send reminder Prepare worksheet TS Tax forms to client by 4/10 Receipts & Docum ents Reminder post-card M i s s i n g d o c u m e n t s Cla rify de du ctio ns N otify of m issing docum ents John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% 1 week 3 weeks 3 days 3 days 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: W/T P/T FTQ 7 wks, 2 days, 140 min ----- Jack’s Taxes - Current State MM W W I I I I I P P P C C C C O
  • 36.
    Lean Principle: Built-In-Quality LeanPrinciple: Built-In-Quality Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 37.
  • 38.
    Built-In-Quality • Product QualityStandards • In-Process Control & Verification • Quality Feedback/Feed Forward
  • 39.
    Product Quality Standards •Focus On The Customer – J.D. Power • Quality Standards must be easily understood by the Team members • Quality Standards must be Clear and Unambiguous
  • 40.
    In Process Control& Verification Quality Feedback / Feed Forward Ability to signal for help when Sensing Abnormalities – Quality Must Be Assured In The Process – Error Proofing – In-Process Verification – Feedback / Feed Forward
  • 41.
    Lean Principle: Lean Principle: ContinuousImprovement Continuous Improvement Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 42.
    Andon ENABLERS BENEFITS 1 2 34 5 6 PROCESS NO. 3 3 O.D. Reference 4 Motion Correction Waiting
  • 43.
    Andon • Implement corrective action •Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity ENABLERS BENEFITS 5 Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4
  • 44.
    Andon •Team System •Team LeaderRatio •Clear Standards •Problem Solving Process •Employee Training •Standardized Work •Mutual Trust/Respect •Process Capability • Implement corrective action • Quality in station • Inspection and Feedback • Open Communication • Teamwork • Improved Productivity ENABLERS BENEFITS Motion Correction Waiting 1 2 3 4 5 6 PROCESS NO. 3 3 O.D. Reference 4 4
  • 45.
    Lean Principle: ShortLead Time Lean Principle: Short Lead Time Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 46.
    Lean Principle: ShortLead Time (Just-in-Time Elements) • Simple Process Flow (Single Part Flow, Quick Set Up) • Small Lot Packaging • Level Order Schedules • Pull Systems
  • 47.
    Flow All process steps occurin tight sequence (continuous flow), with little or no waiting?
  • 48.
    Pull Each process step occursonly at the command of the downstream step in response to the pull of the internal customer.
  • 49.
    TRY TO SCHEDULEONLY 1 POINT FLOW WHERE YOU CAN, PULL WHERE YOU CAN’T Schedule Supermarket Schedule
  • 50.
    CONTINUOUS FLOW PROCESSING Batch& Push Processing Continuous Flow “make one, move one” 3 Minutes for first piece 12 Minutes for total order 21 minutes for first piece
  • 51.
    One Piece Flow- Order entry - Before File Batch Enter Batch Stack and Hold Acknowledge Orders Calculate Batch Total Batch Orders Open Mail
  • 52.
    One Piece Flow- Order Entry – After File Order Enter One Order Acknowledge One Order Open One Envelope
  • 53.
    Leveling - Heijunka •Uneven customer demand creates a challenge • Variation & fluctuation in volume (spiky customer demand) can lead to waste • In a multi-product environment, demand leveling (heijunka) absorbs fluctuation & variation
  • 54.
    Production Schedule Monday…….400 A Tuesday……100A, 300 B Wednesday..200 B, 200 C Thursday…. .400 C Friday……….200 C, 200 A No Good Daily: 140 A, 100 B, 160 C Better: Every Part Every Day 50 B, 70 A, 80 C 50 B, 70 A, 80 C Monday Even Better: Every Part Every Ship Window Leveling
  • 55.
    Why have smalllots and leveling? • Small Lot Strategy – Shortens Cycle Time (The amount of time it takes to complete the task) – Reduces Excess Inventory – Improves Responsiveness • Production Leveling – Minimizes Stocks of Finished Products – Reduces Fluctuations in Flow – Balances Workload
  • 56.
    Lean Principle: Lean Principle: PeopleInvolvement People Involvement Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 57.
    Multifunctional Workers • Minimal(or no) Job Description Silos • Rotate Jobs • Perform Several Tasks • Balance the Workload • Standard Work
  • 58.
    Lean Principle: Standardization LeanPrinciple: Standardization Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 59.
    If there isno standard, there is no improvement Standardized Work • The best combination of people, equipment and material to meet customer demand. • An agreed upon set of work procedures to establish the best sequence for each process. • Start at a baseline and continuously improve
  • 60.
    Materials Production Standardized Work Standardized workis used when there is a definable, repeatable process. Office Everyone can perform standardized work
  • 61.
    Standardized work yields: •Shorter lead time • Reduced work-in-process • Reduced wait time • More flexibility, less waste • Ability to identify and fix problems • Reduced handling • Better response to customer demand • Balanced workload
  • 62.
    TAKT TIME –Component of Standardized Work Synchronizes Pace of Production to Match Pace of Demand Rate for producing a product, and its components, based on rate of delivery. Available Time Takt Time = Customer Requirement / Demand
  • 63.
    Lean Principle: Lean Principle: ContinuousImprovement Continuous Improvement Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 64.
    Continuous Improvement • EverythingCan Be Improved. Problems Are Opportunities. “No Problem” is a Problem. • Worker’s Ideas Are a Source of Improvement – Continuous Improvement (Kaizen) Teams – Problem Solving – Job Rotation – Total Productive Maint. – Suggestion Program • Steps to Improvement – Improve, Standardize, Stabilize and Repeat. The Continuous Improvement Cycle Standardization Improvement Standardization Standardization Standardization Improvement Improvement
  • 65.
    Continuous Improvement • StandardizedWork contributes to continuous improvement by: – Documenting the current best practice that provides a base from which to improve – Creating the stability necessary to make changes – Providing the tools to make waste highly visible
  • 66.
    Lean Principle: Standardization LeanPrinciple: Standardization Continuous Continuous Improvement Improvement Standardization Standardization Built-In-Quality Built-In-Quality Short Short Lead Time Lead Time People People Involvement Involvement
  • 67.
    • Workplace Organization -5S Process • Standardized Work • Visual Management Grasp the Situation Workplace Management
  • 68.
    Grasp Current Situation Continuous Improvement to Eliminate Waste Repeat AddValue- added Work; Standardize Workplace Management
  • 69.
    Where you haveproblem points in the flow… Process Step 1 Process Step 2 Process Step 3 Process Step 4 Set up checks for Quality, Timing, Output Make Progress and Problems Visible Visual Management
  • 70.
  • 71.
    Takt Time BarChart 0 5 10 15 20 25 30 Stamping Body Paint Trim Shipping Departments (Sec)
  • 72.
    Future State Questions Relatingto Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
  • 73.
  • 74.
    Using the ValueStream Mapping Tool Understanding how things currently operate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Scoping the Value Stream Value Stream
  • 75.
    Future State Questions Relatingto Improving Delivery and Flow • What are the customer requirements? • Where and how will you trigger and sequence work? • How will you make work flow smoothly? • How will you establish rhythm to pace the work and surface problems? • How will you make the progress and delays of the work visible? • What process improvements are necessary to achieve your Value Stream vision?
  • 76.
    • Customer requirements? •Work flow smoothly? • Trigger & sequence work? • Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents C la r if y d e d u c ti o n s Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day IN COMBINE PROCESSES Stand. Work John A c c o r d i o n F i l e XOXO FIFO Customer Incentive
  • 77.
    • Customer requirements? •Work flow smoothly? • Trigger & sequence work? • Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents C la r if y d e d u c ti o n s Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day IN COMBINE PROCESSES Stand. Work John A c c o r d i o n F i l e XOXO FIFO Customer Incentive
  • 78.
    • Customer requirements? •Work flow smoothly? • Trigger & sequence work? • Rhythm (leveling)? • Progress & delays visible? • Process improvements? Jack’s Taxes - Current State IN 40 clients Sort receipts & documents Confirm deductions Mail forms IN Tax forms to client by 4/10 Receipts & Documents IN Notify of m issing docum ents C la r if y d e d u c ti o n s Reminder post-card Print & Collate forms TS Review & sign forms IN Send reminder Prepare worksheet TS Client John 10 min --- 100% Jack 60 min 1 week 95% Jack 10 min 1 week 50% John 15 min --- 98% Jack 15 min --- 100% John 10 min --- 100% Jack 30 min --- 10% M issing docum ents 1 week 3 weeks 3 days 3 days 1 day W/T P/T 10 min 1 week 30 min 3 weeks 60 min 10 min 3 days 15 min 15 min 10 min 3 days 1 day 1 week FTQ 100 % 98 % 100 % 50 % 100 % 95 % 10 % 1 week 140 min 7 wks, 2 days 4.7 % Total Lead Time: 7 wks, 2 days, 140 min P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day IN COMBINE PROCESSES Stand. Work John A c c o r d i o n F i l e XOXO FIFO Data entry Worksheet training Individual 1040, 1040EZ training Reduce process time to 75 min Standardize Work Customer Incentive
  • 79.
    IN 40 clients Mail forms form sto client Com plete Accordion File Checklist & Accordion File Jack’s Taxes Future State Check & sign forms IN Send Reminder Data entry + print forms FS Client FIFO max 1 day max 1 day XOXO 1 per day Over 8 weeks Takt Time = Available time / Customer Requirements = 40 days / 40 Clients = 1 per day Customer Requirements: •Tax Forms completed accurately •Finished before filling time •Lowest possible cost W/T P/T FTQ 100 min 2 days 98 % 2 days, 100 min 10 min 75 min 15 min 10 min 1 day 1 day P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ P/T W/T FTQ John 10 min 100% John 75 min 98% Jack 15 min 1 day 100% John 10 min 1 day 100% 98 % 100 % 100 % 100 %
  • 80.
    98% 2 Days, 100 Min. 100Min. Target from Future State Map 4.7% 7 Weeks, 2 Days, 140 Min 140 Min. From Current State Map Other(s) 100% First Time Quality 6 – 8 weeks Lead Time 720 Min. Process Time Actual (post implementation) Current Estimate Metric SPQRC Measurable Metrics & Performance
  • 81.
    Summary of Results– Potential Impact • Reduced PT 40 mins (29%) – Jack could add 11 additional self employed clients without adding work hours! Increased revenue, no more time. • FTQ increased 20 fold (4.7% to 98%). Improved area of greatest opportunity. • Turn around time is now well within customer expectations (from 7 weeks and 2 days down to 2 days). Able to respond to customer needs faster. • Moved 70 mins of Jack’s “high priced time” over to John. Jack can now concentrate on more complicated returns or on obtaining more higher revenue generating corporate clients. • Reduced personal overtime – Jack does not stay late signing returns anymore. • This new Future State now becomes the next Current State (continuous improvement). Next Jack could investigate further leveling the work he receives in, filing electronically, …
  • 82.
  • 83.
    Understanding how things currentlyoperate. This is the foundation for the future state. Designing a lean flow through the application of Lean principles Current State drawing Future State drawing Determine the Value Stream to be improved The goal of mapping! Planning and Implementation Scoping the Scoping the Value Stream Value Stream Using the Value Stream Mapping Tool
  • 84.
    Current Current State State The Methods /Action Steps The Methods / Action Steps are how you will get there are how you will get there Future State Changes The specific changes The specific changes (Kaizen Bursts) needed to (Kaizen Bursts) needed to move from CS to FS are move from CS to FS are your Objectives your Objectives
  • 85.
    Business Plan Deployment (BPD)is the Standard Process that enables the total organization to set targets, integrate plans, and remain focused to achieve company-wide goals and manage change
  • 86.
    R e g u l a r a n d C o n s i s t e n t R e v i e w s Concrete GOALS Specific OBJECTIVES Clear &Measurable TARGETS A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies C o o r d i n a t i o n Common Measurements BPD Elements
  • 87.
    Business Plan Deployment Isa PDCA Cycle 2 Tasks Plant Master Plan A c ti o n Annual Business Plan 1 2 3 4 Plan Do (Communicate & Implement) Check Act (Standardized & Countermeasures) Scorecard Plan Do Check Act Problem Description Direct Cause Cause Cause Cause Why? Why? Why? Why? Why? Root Cause
  • 88.
  • 89.
  • 90.
    Wrap-up • What didyou learn today? • Did the program meet your expectations? • How can we improve this learning event?