Value Stream Integration Webinar Series

Transcription

1 Value Stream Integration Webinar Series Session 2: How to Set Up Value Streams Presenter: Anthony Manos toolingu.com/virtualinstructor

2 Value Stream Integration Webinar Series Move beyond the tools of Lean to creating a fully integrated Value Streams. This webinar series is setup to walk you through the key elements of setting up, maintaining and improving an effective and efficient value stream that focuses on added value for your customers, eliminating waste and building a cadre of problem solvers for continuous improvement.

3 The Series Session 1: Value Stream Integration Fundamentals: Tools and Techniques. This fundamental session is geared towards those starting their Lean journey or is in the first few years of deployment. Session 2: Value Stream Management: How to Set Up Value Streams. This intermediate session helps organizations move past the tools of Lean into Value Stream Management; for organizations that are looking to move their efforts to the next level. Session 3: The Role of Management in Value Stream Integration. This advanced session is for those organizations that have Lean embedded into their operations and want to make sure that is lives as part of their continuous improvement culture.

4 Session 2 How to Set Up Value Streams Value Stream Management: How to Set Up Value Streams Session 2 Value Stream definition and background Value Stream Mapping including Process Families, Current State, Future State and the Plan Focus on Process and Systems How Value Stream Management builds on Lean Tools Fundamentals of a Pull System and Just-in-Time (JIT) Planning and Deployment for Value Stream Integration

5 Session 2 Learning Objectives This intermediate session will start a deep-dive on specific concepts of Value Stream Integration from Value Stream Mapping to Daily Kaizen. This is a nuts and bolts session that will walk you through the components of Value Streams to see how everyone in your organization has some role in the development of a Value Stream. Value Stream Integration is not just for management; we want to get others involved in delivering value to your customer.

6 Session 2 Learning Objectives Understand the purpose of Value Stream Management See how Value Stream Maps help to focus on improvement and Value for the Customer Understand the importance of process and systems How Value Stream Integration builds on Lean Tools including Pull Systems See how to create a Value Stream Integration Plan

7 Agenda Introduction to Value Stream Mapping Value Stream Mapping Four Step Process Tasks, Process, Systems Building on Lean Techniques Pull Systems and JIT Planning and Deployment Wrap-up

8 Polling Question Q. Have you created Value Stream Maps before? 1. Yes 2. No

9 Introduction to VSM

10 Lean Journey & VSM One of the ways to start your Lean journey is to create a Value Stream Map Using VSM will help discover and determine the best path for your Lean efforts This will help you focus on what is important Using VSM everyday will give you continuous improvement

11 What is VSM? A Value Stream Map is a pictorial representation of the information and process flow It is simple and easy to learn It creates our roadmap for Lean improvements It is more powerful than flowcharts because it includes so much more information in a concise way

12 What is VSM? Using the VSM symbols or icons are kind of like playing Pictionary. If people can understand your simple symbols, then you were able to effectively communicate your point It helps reduce the fear of change and of the unknown by allowing an organization show the way things will be in the future

13 Before VSM Too micro focused or Too macro focused = not focused

14 With VSM Focused on a Process Family

15 Origins of VSM Material and Information Flow Diagrams were originally developed by Taiichi Ohno and the Operations Management Consulting Division of Toyota to help suppliers learn TPS Visual communication tool Able to identify & eliminate waste Taiichi Ohno Profero, Inc. 2010

16 The Phrase VSM Mike Rother and John Shook (1999) adapted Toyota s techniques and refined this technique into what we now call Value Stream Mapping Learning to See Version 1.3 by Mike Rother, John Shook, Jim Womack, Dan Jones

17 Field to Fork The concept of Field to fork shows an example of an entire value stream

18 Levels of Value Stream Maps Extended Value Stream Map include suppliers, customers, other facilities, corporate, etc. Facility Value Stream Map focus on a single Process Family first Process or Inter-departmental Value Stream Map focus on specific aspects of the Facility Value Stream

19 VSM 4-step Process

20 Process Family Example 1. Quoting 2. Order Entry 3. Credit Review 4. Purchasing 5. Order Review 6. Tool Prep 7. Scheduling 8. Receiving 9. Perforating 10. Leveling 11. Shearing 12. Cut to Length 13. Slitting 14. Radius Rolling 15. Punching 16. Embosing 17. Press Brake 18. Stamping 19. Outside Service 20. Packaging 21. Shipping Process Family Name QTY all part nos ,000 lb/mo X X X X X X X X X X X 1 Coil to Coil 500,000 lb/mo ORM005 80,000 lb/mo X X X X X X X X X X X 1 Coil to Coil 020 Al GLD 5,000 pcs/mo X X X X X X X X X X X X X 2 Ornamental 6,000 pcs/mo 020 Al Stuco 1,000 pcs/mo X X X X X X X X X X X X X 2 Ornamental pcs/mo X X X X X X X X X X X X X X X 3 Fab Flat 7,500 pcs/mo Ballast 300,000 lb/mo X X X X X X 4 Ballast 300,000 lb/mo Nordham 100 pcs/yr X X X X X X X 5 Pass Through 1,000 pcs/mo pcs/mo X X X X X X X X X X X X X X X 6 Fab Form 2,500 pcs/mo VT pcs/mo X X X X X X X X X X X X X X X 6 Fab Form EAW 435? 150 pcs/mo X X X X X X X X X X X X X X X X 6 Fab Form YNG Filter 25 pcs/mo X X X X X X X X X X X X X X X 6 Fab Form Gehl pcs/mo X X X X X X X X X X X X X X X 6 Fab Form pcs/mo X X X X X X X X X X X X 7 Coil to Sheet to Size 50,000 pcs/mo pcs/mo X X X X X X X X X X X X X 7 Coil to Sheet to Size 020 Al MF 8,000 pcs/mo X X X X X X X X X X X X 8 Coil to Blank 80,000 pcs/mo Nailor 500 pcs/mo X X X X X X X X X X X X X 8 Coil to Blank ,000 pcs/mo X X X X X X X X X X X X X Stock Plate 250,000 lb/mo X X X X X X X X X X X X 9 Stock Plate

21 Focus on One Process Family Determine process families by: Look for similar processing steps, departments and equipment, By process, not product Quantities or volumes may help in the decision of which SKUs to include Many organizations fall into the trap that they think customers or products are process families You eventually will have Value Stream Maps for each process family

22 Walk the Flow You have to have the team walk the flow to gather the data and information for the Current State Map and to look for the 8 Wastes of Lean It does no good to sit around in a conference room trying to come up with the data You will learn more by going to gemba (Japanese for the place ) than you will by just sitting there Have a team member draw a spaghetti diagram of your travels and document the distance walked

23 Information Gathering Don t rely on engineering standard times, get real numbers Data is close enough to get started, as long as it gets us in the ballpark, fill in the gaps A.S.A.P Interview techniques Explain the exercise Be ready for the It depends answer

24 What Type of Information to Collect Office/Support Processing time (P/T) or Task Time (T/T) Batch time (B/T) Accurate & Complete (A&C) Priority (PRI) External contacts (ExC) Late Information (LInfo) Quantity (QTY) Difficulty (Diff) Lead-time, Queue-time Manufacturing Cycle time (C/T) Machine time (M/T) Changeover (C/O) Number of Changeovers (#C/O) Reliability (Rel) First Pass Yield (FYP), Scrap, Yield Quantity (QTY) Inventory

25 What Type of Information to Collect Information Hardcopy Electronic EDI, fax, , phone Software Transportation Trucks, planes, trains, Express Service Distance traveled (DIST) Expediting costs (Expd) On-time delivery (OTD)

26 More Data Collection Customer/Suppliers Names material/service types Quantity (QTY) Service level (Serv) Miscellaneous Number of operators (trained or per shift) Push or Pull/Kanban, Supermarkets

27 Interviews It is important to have good interviewing skills Everyone on the team should have the opportunity to perform interviews Stick together rather than splitting into smaller groups so that you can all hear the same answers If you are the manager of the area, be quiet and listen - do not interrupt the interviewee, answer for them or lead the answer

28 Conducting Interviews There are 5 things to remember when conducting the interview: 1. There are no wrong answers 2. Put the interviewee at ease 3. Explain to them what you are doing 4. Do not read directly off the data collection sheet 5. Listen for the answers

29 Office/Manufacturing/ Customer/Supplier Office/Support Data Box Manufacturing/Shop Supplier/Outside Processing Office Process Box Process Box Department Work Center/Machine Numbers or Name Main Customers or Suppliers Software P/T = Processing time C/T = Cycle Time L/T = Lead Time Customers/ Suppliers Diff = Difficulty (1-5) A&C = Accurate & Complete M/T = Machine Time C/O = Changeover P/T = Processing Time Dist = Distance Warehouse Prior = Prioritize FPY = First Pass Yield Qty = Quantity Rel. = Reliability Rel. = Reliability FPY = First Pass Yield Qty = Quantity per Qty = Quantity per OTD = On-time delivery = No. of people/(trained) Takt = Takt Time Serv = Service level Cross Dock = No. of people/shift Expd = Expediting costs Q = Queue/waiting = Inventory I I = Inventory

30 People/Information/ Deliveries-Shipments People Information Flow Person Hardcopy Electronic W.O. Work Order Telephone Walking with Paperwork Hurrying with Paperwork/ Expediting Hot! Reports/ Other Paperwork Hotlists Expediting Fax Fax EDI Go See Deliveries/Shipments Meeting, Talking or Discussion Number of times per day/week Truck Milk Run Expediting Material Flow Movement UPS, DHL, FedEx Overnight/ Express Services Plane Push Train Person with Cart Tank Car Box Car

31 Kanban-Supermarkets/ Miscellaneous/Title Block Kanban/Supermarkets 10 Production (Make) Kanban with Quantity Withdrawal (Move) Kanban Supplier (Batching) Kanban Withdrawal Kanban Post/ Station Kanbans arriving in groups Supermarket Max = - FIFO - Kanban Route Example OXOX FIFO Lane Heijunka (Level Loading) Kanban Route Title Block Miscellaneous Loop Kaizen Burst/ Improvement Value Stream Map Current State Map Company Process Family: Cycle or Process Time Inventory or Queue Time VA = NVA = Value Added Time Non-Value Added Time Value Stream Manager Date Drawn: XX/XX/XX Date Last Updated: XX/XX/XX

32 How to Draw the Map Manufacturing Example A key concept of drawing the map is that no two maps will look the same Even if you drew the same map on different days, it may look different Remember, the map is about communicating and creating an awareness so that we can achieve a better Future State Don t get too lost in the details

33 Preparation 11 x 17 paper, landscape Pencil and big eraser 1. Customer 2. Supplier 3. Material 4. Information 5. Time calculations

34 Process Time & Lead-time Supplier Information Flow Customer Material Flow Profero, Inc Process Time & Lead-time

35 Case Study - Goodenuff, Inc. Goodenuff is a traditional manufacturer They have been in business for over 40 years Make and sell different types of airplanes Lately they have been having problems with: customer complaints quality cost on-time delivery Read the case study and prepare to draw their Current State Map

36 3 days 90 min 1 day 60 min 1 day 30 min 1 day Kostalott Paper Weekly Monthly Weekly Q 1 day Scheduling MRP P/T=1 hr Diff=1/4 Rel.=99% A&C=50% = 1 Each order Q 1 day MRP Sales P/T=30 min Diff=1/3 Rel.=99% A&C=75% = 1 30/60/90 Q 1 day Daily ~24,000/mo ~1,200/day National Airlines W.O. Change 1x per shift Punch Fold 1 Fold 2 Fold 3 QC Test I I I I 10 days C/T=15sec C/O=20min Rel.=90% FPY=90% = 2 C/T=10sec C/O=5min Rel.=100% FPY=99% = 1 C/T=25 sec C/O=5min Rel.=99% FPY=90% = 1 C/T=25 sec C/O=5min Rel.=100% FPY=95% = 2 C/T=20 sec C/O=2min Rel.=95% FPY=80% = 1 I 10 days 3 days 1 day 2 days 4 days Profero, Inc sec 10 sec 25 sec 25 sec 20 sec 20 days 95 sec

37 Future State vs. Ideal State It is not uncommon to see companies try to be overly aggressive in the amount of work they can complete on their first map they try to reach an Ideal state It all depends on resources: time, people, budgets Ideal states are usually longer term outlooks, like 3-6 years Focus on that you can get down in 6-12 months

38 Building Blocks of Lean Lean Enterprise TPM Cellular & Flow Pull System & Kanban Error-proofing Batch Size Reduction Quick Changeover V S M Standard Work Problem Solving Teams Kaizen Layout Visual POUS 5S Planning Leadership

39 Examples of Future State Questions 1. What is the Takt time? 2. Are there bottlenecks or constraints? 3. Where can inventory be reduced or supermarkets used? 4. Where can you improve flow? 5. What other improvements are required? There are other sources for questions

40 Before & After Current Future Lead-time 23 days 7.3 days Processing time 91 min 35 sec 30 min 45 sec Inventory 21,000 6,300 Changeover 20 min 5 min Reliability 90% 100% First Pass Yield and Accurate & Complete 75% 99% Difficulty 1/3 1/1 Scheduling Weekly Daily

41 Loops Once you have your map marked up, divide it into loops Loops are an easy way to break up the projects into smaller pieces Q. How do you eat an elephant? A. One bite at a time. Typically there are 3-7 loops Not magical, just look for natural breaks

42 1 day 30 min 30 min 1 day Kostalott Paper MRP Sales Q Daily National Airlines Daily P/T=30 min Diff=1/3 Rel.=99% A&C=75% = 1 1 day ~24,000/mo ~1,200/day Loop 1 OXOX Cell Loop 3 Punch & Fold Cell Max FIFO- QC Test 5 days Loop 2 C/T=15sec C/O=20min Rel.=90% FPY=90% = 2 C/T=10sec C/O=5min Rel.=100% FPY=99% = 1 C/T=25 sec C/O=5min Rel.=99% FPY=90% = 1 C/T=25 sec C/O=5min Rel.=100% FPY=95% = 2 C/T=20 sec C/O=2min Rel.=95% FPY=80% = 1 5 days Profero, Inc sec 2 hours 20 sec 5.3 days 40 sec

43 Pull Systems and Just-in-Time

44 Pull System The downstream operation signals to the upstream operation what is needed, how many, when and where it is needed. Nothing is produced by the upstream operation unless the downstream customer requests it. Downstream I need some more stuff. No problem. Upstream

45 Pull Systems Pull system moves items when the next step is ready for them Push moves items whether or not the next step is ready Do we have the right resources at the right place at the right time? Heijunka looks for ways to smooth out the work flow Kanban is a trigger to do something or go get something Right items at the right place, at the right time, in the right quantities

46 Kanban Kanban translation means a sign or signboard Kanban is a signal or an information system Three main types: Make or production Move or withdrawal Supplier or batching

47 When to Use Supermarkets Use Supermarkets when the lead time for materials exceeds the customer s requirements for on-time delivery When large batches are still required (heat treat, outsourcing, long changeovers, etc.) When shared equipment is used

48 Order-point and Order-quantity Order point when to replenish the supermarket Order quantity the amount to replenish the supermarket Not the same as Min-Max (or PAR levels) OQ =2 OP =2

49 Supermarket & FIFO Lanes Supermarket = Customer gets what they want and the store replenishes it Checkout = FIFO Lane, Checker cannot grab things at end of belt, it goes in order

50 Selecting Items Steady runners, <10% variation in demand Small, simple to start 80/20 rule Raw Material, Standard Stock (WIP), Finished Goods MTS: when you cannot receive materials in, complete order and ship within customer s timeframe MTO: when you can receive materials in, complete order and ship within customer s timeframe

51 Different Ways to Calculate 1. Guess 2. Use what you have already 3. Calculations Finished Goods Variation with mean absolute deviation or confidence interval Purchased parts or Raw Materials FIFO Lane Don t worry we won t go into details and do math now

52 Complexity Kanban Signals Many Parts Electronic Trigger Board Kanban Cards 2-Bin Few Parts Empty Space Close-by Distance Far Away

53 Kanban Example Customer Order A B A A B A A B A A B C C C C D D D D

54 Heijunka Smooth out the workload levelization Level the product mix and quantity over time Leveling reduces the need for batching, enables efficient production & meeting customer s needs, allows less inventory & capital, etc. Heijunka box can be used for scheduling to level product mix and volume OXOX

55 Level for Mix The same total number are completed One line vs. several Easy to change and adapt Able to smooth-out increases or decreases in demand B A A C B A A D B A A E B A A C B

56 Leveling for Volume Example Average demand from customer is 800 1,200 per week Produce 1,000 per week with 200 held in Supermarket 1,000 per week = 200 per day, nice and level

57 Planning and Deployment

58 Muda If you don t do anything with the maps and more importantly with the Plan, then all you did was create more muda (waste) The process of creating Value Stream Maps can be very eye opening, but the power in this tool is following through with the Plan Use the Plan!

59 Draft Plan Gather the information from the Future State Map and put it into the plan Assign: Project Leaders Support people or functions Goals Metrics Additional information is needed before the final Plan can be presented

60 Key Elements of the Plan Project or task name Dates: start, end, milestones Leader and team members Impact or measurable goals Status or progress Priority Resources needed: people, time, budgets, etc.

61 Wrap-up Evaluations & Feedback

62 Evaluations Please take the time to complete the evaluation

63 Next Session Session 3: The Role of Management in Value Stream Integration. This advanced session is for those organizations that have Lean embedded into their operations and want to make sure that is lives as part of their continuous improvement culture.

64 Questions? If you would like to learn more, please contact: Tooling U-SME

65 Thank You Good luck on your lean journey!