Value Stream Mapping Tune-Up

Transcription

1 Value Stream Mapping Tune-Up Kevin J. Duggan, Founder Institute for Operational Excellence

2 Renowned lean & OpEx expert Author of four books Kevin has guided many major corporations worldwide, including General Dynamics, FMC Technologies, Chromalloy, Aetna, Space, Caterpillar, Pratt & Whitney, Singapore Airlines, Sikorsky, IDE Corporation and Parker Hannifin Featured on CNN and the Fox Business Network Frequent keynote speaker, master of ceremonies, and panelist at international conferences Kevin J. Duggan, Founder

3 The Institute for OpEx leads three events offering complete OpEx training from design through implementation Training is lead by our most experienced instructors All sessions are open to the public and held throughout the US and Europe High Impact Learning

4 Learn to create flow that achieves OpEx in operations with highly-engineered products, uncertain demand, and shared resources This 3-day event includes an 8-hour session on creating flow through shared resources (this webinar provides a onehour overview) Visit our website for locations and dates! Advanced OpEx Training for Manufacturing

5 We will send you the recording Send questions anytime to instituteopex.org Before We Begin Please complete the exit survey 2018 Institute for Operational Excellence. All Rights Reserved.

6 As the leading center teaching and implementing OpEx principles, we know the importance of communicating the why behind continuous improvement efforts. That s why all our webinars kick-off with a short introduction to Operational Excellence! Intro to Operational Excellence

7 Fixed Sequence (Mixed Model) The Roots of Lean

8 Terminology The Jump to Operational Excellence Value Stream Mapping vs. Value Stream Design

9 Value Stream Design

10 Operational Excellence Level of improvement Impact of Value Stream Design Time in Years

11 What is Operational Excellence? When each and every employee can see the flow of value to the customer, and fix that flow before SM it breaks down. ~ Kevin J. Duggan Kevin J. Duggan

12 What Value Stream Design Does The Jump to Operational Excellence Gets everyone to the SAME destination

13 1. Design a lean flow using lean guidelines 2. Implement a lean flow 3. Make the lean flow visual 4. Create standard work for the lean flow 5. Make abnormal flow visual Eight Steps to Achieve Operational Excellence 6. Create standard work for the abnormal flow 7. Teach employees to maintain and improve the flow to the customer 8. Free management to work on offense

14 Michigan Steel Co 500 ft coils Tues & Thurs. Waste I Coils 5 Days Stamping 1 C/T = 1 secs C/O = 1 hour Uptime = 85% 2 Shifts 27,600 sec.avail. Waste I 4600L 2400R 6 Week Forecast Weekly Fax Waste S.Weld #1 1 C/T = 39 secs C/O = 10 mins Uptime = 100% 2 Shifts 27,600 sec.avail. I 1100L 600R C/T = 46 secs C/O = 10 mins Uptime = 80% 2 Shifts Production Control MRP Weekly Schedule S.Weld #2 1 27,600 sec.avail. How Did This Happen? C/T = 62 secs C/O = 0 Uptime = 100% 2 Shifts Daily Order Assembly #1 27,600 sec.avail. 90/60/30 day Forecasts Daily Ship Schedule Assembly #2 C/T = 40 secs C/O = 0 Uptime = 100% 2 Shifts 27,600 sec.avail. 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 1 sec 39 secs 46 secs 62 secs 40 secs Learning to See Mike Rother John Shook Lean Enterprise Institute 1998 I 1600L 850R Waste Waste 1 Waste I 1200L 640R Waste 1 I 2700L 1440R Steel Street Assembly 18,400 pcs/mo - 12,000 L - 6,400 R Tray = 20 pieces 2 Shifts Waste 1x Daily. Shipping Staging Production Lead Time = 23.6 days Processing Time = 188 s

15 Continuous Improvement How Did This Happen?

16 What is Good Value Stream Design? 1. Based on guidelines, not opinions. 2. Not directed by management or steering committee. 3. Not done in a kaizen event. 4. Objective isn't to eliminate waste.

17 What is the Objective of Good Value Stream Design? Normal Abnormal

18 Learning to See Product family matrix Current state Guidelines Future state Implementation plan What is the Process of Value Stream Design?

19 Products Sensor Activated Arm Laser Activated Arm Manual Activated Arm Radon Detector S2 Servo Motor S4 Servo Motor Injection Mold Product Family Matrix Process Steps and Equipment Mech. Assembly Electrical Assembly Final Assembly Stamp Welding Configure & Test

20 Product Family Matrix Injection Molding P/N Name S2 Servo Motor Sensor-Activated Arm A Photoelectric Detector Ionization Detector Laser-Activated Arm Manual Servo Motor Manual Servo Motor II Manually-Activated Arm A Fiber Optic Visual Sensor S3 Servo Motor Radon Detecter Bar Code Divertor Piston A Bar Code Diverter Arm A Sensor-Activated Piston A Laser Diverter S4 Servo Motor Carbon Monoxide Detector Auto Servo Motor Laser-Activated Piston Manually-Activated Piston A Motion Detector Stamp Deburr Hand Deburr Paint Welding Mechanical Assy Electrical Assy Final Assy Configure & Test Ship

21 Michigan Steel Co 500 ft coils Tues & Thurs. I Coils 5 Days Stamping 1 C/T = 1 secs C/O = 1 hour Uptime = 85% 2 Shifts 27,600 sec.avail. I 4600L 2400R 6 Week Forecast Weekly Fax S.Weld #1 1 C/T = 39 secs C/O = 10 mins Uptime = 100% 2 Shifts 27,600 sec.avail. I 1100L 600R C/T = 46 secs C/O = 10 mins Uptime = 80% 2 Shifts Production Control MRP Weekly Schedule S.Weld #2 1 27,600 sec.avail. C/T = 62 secs C/O = 0 Uptime = 100% 2 Shifts Daily Order Assembly #1 27,600 sec.avail. 90/60/30 day Forecasts Daily Ship Schedule Current State Assembly #2 C/T = 40 secs C/O = 0 Uptime = 100% 2 Shifts 27,600 sec.avail. 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 1 sec 39 secs 46 secs 62 secs 40 secs Learning to See Mike Rother John Shook Lean Enterprise Institute 1998 I 1600L 850R L 640R 1 I 2700L 1440R Steel Street Assembly 18,400 pcs/mo - 12,000 L - 6,400 R Tray = 20 pieces 2 Shifts 1x Daily. Shipping Staging Production Lead Time = 23.6 days Processing Time = 188 s I

22 Michigan Steel Co 500 ft coils Tues & Thurs. Waste I Coils 5 Days Stamping 1 C/T = 1 secs C/O = 1 hour Uptime = 85% 2 Shifts 27,600 sec.avail. Waste I 4600L 2400R 6 Week Forecast Weekly Fax Waste S.Weld #1 1 C/T = 39 secs C/O = 10 mins Uptime = 100% 2 Shifts 27,600 sec.avail. I 1100L 600R C/T = 46 secs C/O = 10 mins Uptime = 80% 2 Shifts Production Control MRP Weekly Schedule S.Weld #2 1 27,600 sec.avail. C/T = 62 secs C/O = 0 Uptime = 100% 2 Shifts Daily Order Assembly #1 27,600 sec.avail. Identifying Waste 90/60/30 day Forecasts Daily Ship Schedule Assembly #2 C/T = 40 secs C/O = 0 Uptime = 100% 2 Shifts 27,600 sec.avail. 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 1 sec 39 secs 46 secs 62 secs 40 secs Learning to See Mike Rother John Shook Lean Enterprise Institute 1998 I 1600L 850R Waste Waste 1 Waste I 1200L 640R Waste 1 I 2700L 1440R Steel Street Assembly 18,400 pcs/mo - 12,000 L - 6,400 R Tray = 20 pieces 2 Shifts Waste 1x Daily. Shipping Staging Production Lead Time = 23.6 days Processing Time = 188 s

23 1. Takt 2. Finished Goods Strategy 3. Continuous Flow 4. FIFO 5. Pull 6. Schedule Only One Point 7. Interval 8. Pitch Guidelines

24 Customer demand rate Synchronizes the pace of production to the pace of sales Takt Time = = Available Time Sold Units 6600 minutes/wk 15 pieces/wk Takt Time = 440 min

25 To Shipping Customer Finished Goods Strategy To Supermarket Customer assembly shipping assembly shipping supermarket

26 Continuous Flow Processing Cycle time = 1 minute per piece A B Make One Move One Customer wants 10 pieces, how long will it take? C Customer wants 1 piece, how long will it take?

27 FIFO -Sets the sequence of production -Controls the amount of inventory Process A FIFO First In First Out FIFO Process B

28 Purpose: supplying process production kanban new product Supermarket Pull System supermarket withdraw kanban withdrawn product customer process Control production between flows without scheduling

29 1. Takt 2. Finished Goods Strategy 3. Continuous Flow 4. FIFO 5. Pull 6. Schedule Only One Point 7. Interval 8. Pitch Guidelines The Big Three

30 Scheduling Only One Point supermarket pull flow 1 2 FIFO 3 FIFO 4 flow customer customer

31 EPEI Every Part Every Interval Pacemaker Schedule Every product every week Better: every product every day Even better: every product every ship window

32 Product A B C D Establishing an Interval Plastic Arm Steel Arm Aluminum Arm Titanium Arm Weekly Demand Production capability per day

33 Product A B C D Description Plastic Arm Steel Arm Establishing an Interval Mon 400 Tues 400 Wed Thurs Fri 400 Aluminum Arm 300 Titanium Arm 100 Total: Interval = 1 week

34 Product A B C D Description Plastic Arm Steel Arm Aluminum Arm Establishing an Interval Mon Tues Wed Thurs Fri Titanium Arm Total: Interval = 1 day

35 Pitch How much work do we schedule & take away at the pacemaker? This amount is our management timeframe how often we find out and can react to problems. 1 week 1 day 1 shift 1 hour 1 Pitch 1 takt

36 1. Takt 2. Finished goods strategy 3. Continuous flow 4. FIFO 5. Pull 6. Schedule only one point 7. Interval 8. Pitch Guidelines Review

37 Production 6 Week Control Forecast Supplier Weekly OO Daily Form Assembly Test Ship FIFO Weekly Orders FIFO Customer 2 days 1 day 1 day 1 day 5 days 2 sec 20 min 10 min 15 min 45 min Future State

38 SUPPLIER 0 WAREHOUSE SEM ASSY, PROCUREENT WORKSHOP PLANNERS 4 1 PICKING PICKING TEMPERATURE TEST # # # Batch= 8 SEMs # hr/sem 4,2 hr/sem 0 90% 90% 1 x 6.8 x 5 Hydraulic to Mechanical Assembly to Test HARDWARE TEST 2.1 hr/sem 8 hr/sem PICKING 0 90% 90% 1 x 6.8 x 5 VIBRATION TEST 1 hr/sem 1 hr/sem HYDRAULIC ASSEMBLY 0 90% 90% 1 x 6.8 x 5 PRESSURE TEST & FLUSHING MECHANICAL ASSY, WIRING & PHASE A INSP. OC ASSY,TEST, FLUSHING & PAINT SCREENING & IN-HOUSE TEST EL. CAN ASSY, PHASE B INSP & OC CLOSING MAIN PLANNERS Future State Annual demand 235 Daily demand 1.07 working days per year 220 working hours per day 6.6 Takt time (hours) ? hr 9.2 hr 0 90% 100% 1 x 6.8 x 5 Eff. C/T = 9 hr/sem 72 hr/sem 2 hr 80% 90% 3 x 8 x 7 13 hr 13 hr 0 100% 100% 1 x 6.8 x 5 OC Assembly Wiring 4.6 hr 32.2 hr 0 90% 100% 1 x 6.8 x hr 16.4hr 0 90% 100% 1 x 6.8 x 5 34 hr 34 hr 0 90% 100% 1 x 6.8 x hr 9.2 hr 0 90% 100% 1 x 6.8 x 5 OCC to Filling Outer Can Test 3.5 hr 3.5 hr 0 90% 100% 1 x 6.8 x 5 SILICONE FILLING SCM L/T: 40.0 days SEM L/T: 47.4 days OC L/T: 23.7 days SCM P/T: 21.3 days 3.2 hr 3.2 hr 0 min 90% 100% 1 x 6.8 x 5 PROJECT MANAGER S HYPERB. TEST & SILICONE CHECK 14 hr 14 hr 0 90% 100% 2 x 6.8 x 5 Test FINAL ACCEPTANCE TEST 14 hr 14 hr 0 90% 100% 1 x 6.8 x 5 SALE REGION QUALITY CONTROL Final Assembly to Inspection FINAL ASSEMBLY & PHASE C INSP. 4.6 hr 9.2 hr 9 min % % 1 x 6.8 x 5 FINAL INSP., MRB & PACKING 4.6 hr 9.2 hr 9 min 90% 100% 1 x 6.8 x 5 CUSTOMER SHIPPING SEM P/T: 22.1 days OC P/T: 10.5 days

39 Implementation Plan

40 Creating Mixed Model Value Streams 10 guidelines for creating a mixed model pacemaker 6 guidelines for creating flow through shared resources Mixed Model Value Streams

41 Designing Flow at the Pacemaker Production 6 Week Control Forecast Supplier Weekly OO Pacemaker Weekly Orders Customer Daily Form Assembly Test Ship FIFO FIFO 2 days 1 day 1 day 1 day 5 days 2 sec 20 min 10 min 15 min 45 min Ten MM Guidelines

42 Six Guidelines Designing for Shared Flow Resource through Flow Shared Resources Supplier Weekly 6 Week Forecast Shared Resource Production Control OO Weekly Orders Shared Resource Customer Daily Form Assembly Test Ship FIFO FIFO 2 days 1 day 1 day 1 day 5 days 2 sec 20 min 10 min 15 min 45 min Six S/R Guidelines

43 Michigan Steel Co 500 ft coils Tues & Thurs. Waste I Coils 5 Days Stamping 1 C/T = 1 secs C/O = 1 hour Uptime = 85% 2 Shifts 27,600 sec.avail. While You re Eliminating Waste. Waste I 4600L 2400R 6 Week Forecast Weekly Fax Waste S.Weld #1 1 C/T = 39 secs C/O = 10 mins Uptime = 100% 2 Shifts 27,600 sec.avail. I 1100L 600R C/T = 46 secs C/O = 10 mins Uptime = 80% 2 Shifts Production Control MRP Weekly Schedule S.Weld #2 1 27,600 sec.avail. C/T = 62 secs C/O = 0 Uptime = 100% 2 Shifts Daily Order Assembly #1 27,600 sec.avail. 90/60/30 day Forecasts Daily Ship Schedule Assembly #2 C/T = 40 secs C/O = 0 Uptime = 100% 2 Shifts 27,600 sec.avail. 5 days 7.6 days 1.8 days 2.7 days 2 days 4.5 days 1 sec 39 secs 46 secs 62 secs 40 secs Learning to See Mike Rother John Shook Lean Enterprise Institute 1998 I 1600L 850R Waste Waste 1 Waste I 1200L 640R Waste 1 I 2700L 1440R Steel Street Assembly 18,400 pcs/mo - 12,000 L - 6,400 R Tray = 20 pieces 2 Shifts Waste 1x Daily. Shipping Staging Production Lead Time = 23.6 days Processing Time = 188 s

44 Continuous Improvement Eliminating Waste

45 OpEx Companies Gain Market Share Part supplier Solution provider

46 Real Business Results from OpEx

47 To contact our team of expert trainers, simply your questions and comments to Questions?

48 Thank you for spending an hour of your day with us! For more resources on achieving OpEx, including articles, white papers, and more visit our website at It Doesn t Have to End Here