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Using Value Stream Mapping as
   a Strategic Planning and
     Implementation Tool
               Frank Garcia
      Director, Engineering Services

     ADVENT DESIGN CORPORATION
Why Use VSM?



Identify areas for lean improvements

Train team members in use of lean
concepts

Integrated lean implementation plan

Long term planning
What We’ll Cover
What is VSM?

Basic Lean Concepts

Developing Value Stream Maps: Current
& Future State

Implementing VSMs

Using VSMs
Lean Manufacturing
Fundamental Principle of Lean Manufacturing



   Any activity or action which does
   not add value to the product is a
     form of waste and must be
       eliminated or minimized.
Definition of Value -Added
Value is added any time the product is physically
changed towards what the customer is intending
to purchase.

Value is also added when a service is provided
for which the customer is willing to pay (i.e.
design, engineering, etc.).

If we are not adding value, we are adding cost or
waste.

         90% of lead time is non-value added!
Waste or Opportunities for
            Improvement
Adds no value
Adds only cost and
time
Symptom rather than
cause
Points to problems in
value stream and
process
Need to address
causes
The EIGHT Wastes

Inventory (more than one piece flow)
Overproduction (more or sooner than needed)
Correction (inspection and rework)
Material Movement
Waiting
Motion
Non-Value Added Processing
Underutilized People
FLOW & PULL

Make the value-creating steps flow
Produce only what is needed
If a process is not completed correctly the first
time, it does not move down the line for
additional work
Eliminate re-work
Value Stream

The value stream is the set of all the
specific actions required to bring a
specific product (good or service) through
the critical management tasks of any
business:
         Information Management
         Transformation
Value Stream Map
              An Assessment Tool


The value stream map follows the order path from
beginning to end and shows a visual
representation of every process in the order and
information flows

Shows how the shop floor or office currently
operates

Develops the foundation for the future state
Value Stream Map Concept


             Orders   Production            Orders
Suppliers                                            Customers
                       Control


                                Schedules



    I
                      Process                             I
                                Equipment
  Raw
                       Cycle                           Finished
 Materials
                       Times                            Goods
                       Change
                       Over
                       Reliability
                       Error Rate

                         Lead
                         Time


                                                              File: VSM-A1
Using the Value Stream Mapping Tool
 product family


  current state   Understanding how the shop floor
    drawing       currently operates. The foundation
                  for the future state.


  future state    Designing a lean flow
    drawing



   plan and
 implementation
Who Develops the VSM?
Team Approach?
  Better understanding of process
  & opportunities
  Provides training in Lean
  Concepts
  Feel ownership of VSMs
  Exchange of ideas
  More open discussion
  Takes more time
Who Develops the VSM?
Engineer Collects Data and Drafts
VSM?
  Takes less time
  Can be done with Management
  Team
  Can train on lean concepts & get buy in
  Less ownership by team and operators
  Less exchange of ideas within the company
Who Develops the VSM?
Depends on the company culture and
preference
How much time can be devoted?
Team Approach is most effective!
What Tools to Use to Make the VSM?




             Use Excel or Visio?



Hand draw?


                      Use AUTOCAD?
What Tools to Use to Make the VSM?
                                       Use Excel or Visio
                                       • Requires program
                                             knowledge
                                       • Easy to change
                                       • Can use templates
                                       • Easy to share &
Hand drawn                                   e-mail
• Quick                                • Easy to present
• Easy for teams
• Difficult to change & copy
• Harder to present            Use AUTOCAD?

                               FORGET IT!
product family         Current State Map
                        Understanding how the shop
current state drawing   floor currently operates.

                        Material and information flows
    Future state        Draw using icons
      drawing           Start with the “door to door” flow
                        Walk the flow and get real data
                        * no standard times
                        * draw by hand
     plan and
                        Basis for the Future Sate
   implementation
product family         Current State Map
                                                          Corner Punch


                         Recommended Data
current state drawing
                                                            1 Operator


                          Cycle Time
                                                     C/T = 2 min.

    Future state          Changeover time            C/O = up to
                                                            30 min.

      drawing             Number of People           Rel. = 99%
                                                     Scrap = 2%

                          Available Working Time
                          Acceptance or Reject Rate
                          Equipment reliability or downtime
     plan and
   implementation
Value Stream Map (Current State)
                                                                                                   Blanket Annual Purchase
                                                                                                   Order with Daily Releases




                                                                                                                                      Production Control
                                                                                                                                                                           Randomly Placed
                                                                                                                                      (normally working                                                       Various Distributors
  Sheet Galvanized              Sheet Galvanized            Sheet Galvanized           Sheet Galvanized                                                                    Orders (normally
                                                                                                                                     24 to 48 hours ahead                                                    (~ 24 for Smith Corp. &
Steel (4’ by 8’ or cut)        Steel (4’ by 8’ or cut)     Steel (4’ by 8’ or cut)    Steel (4’ by 8’ or cut)                                                              single unit orders)
                                                                                                                                              of                                                             ~ 6 for Jones Systems
                                                                                                                                     promised shipment)


                                                                                                                                                                                                             Average volume of 1000
                                                                                                                                                                                                             systems per month in peak
                                                                                                                                                                                                             season.
                                                                                                                                                                                                             Customers are mainly
                                                                                                                                                                                                             distributors. There are a
                                                                                                                                                                                                             few dealers.




                                                                                                           Daily                                       Daily
    Up to an average                                                                                                                                                                        Daily
                                                                                                         Production                                  Production
     of 130,000 lbs                                                                                                                                                                        Shipping                          Daily
                                                                                                          Reports                                     Reports
      daily in peak                                                                                                                                                                        Schedule                        Shipments
         season




                                                              In Straight
                                                              Panel Dept.

                       Shear                   Notch            Specialty Punch        Corner Punch                  Bend          Stake & Label        Add Z Brace           Radius & Band              Rack              Shipping
                 1 Accurshear              1 Manual              4 Semi-Auto           3 Semi-Auto                 1 Manual         1 Automated        1 Automated          1 Manual Table,
                  Automated              Notcher (S-23)            Punches               Punches                 Brake (R-7)       Machine (R-8)      Machine (ACR)            1 Jig-less
                  Shear (P-3)            & 1 Automated                               (S-1, S-2, & S-3)          & 1 Automated                                               Machine (R12),
      I                                  Notcher (R-3)                                                           Brake (R-13)                                               & 1 Jig Machine
                                                                                                                                                                                  (R1)
2 to 5 days                                                                                                                                                                                           1 Material
                   1 Operator               1/2 Operator           0 Operators           1 Operator               1/2 Operator      1/2 Operator            1/2 Operator       2 Operators                                 2 Operators
depending                                                                                                                                                                                              Handler
on pre-cut
    size
                 C/T = 4 min.             C/T = 2 min.           C/T = 2 min.          C/T = 2 min.               C/T = 5 min.     C/T = 2 min.         C/T = 7 min.           C/T = 8 min.           C/T = N/A
                 C/O = N/A                C/O = 4 min            C/O = N/A             C/O = up to                C/O = 30 to      C/O = N/A            C/O = N/A                    (average)        C/O = N/A
                 Rel. = 99%               Rel. = 95%             Rel. = 99%                   30 min.                    60 sec.   Rel. = 99%           Rel. = 98% to          C/O = 2 to 30          Rel. = 100%
                                                                                       Rel. = 99%                 Rel. = 90%                                   99%                     min.
                                                                                                                                                                               Rel. = 80%
                                                                                                                                                                                      to 100%
                                                                                                                                                                                                                       2 to 5 Working Days,
                                                                                                                                                                                                                           Lead Time
 2 to 5 days

                                                                                                                                                                                                                       32 minutes,
                      4 min.                  2 min.                 2 min.               2 min.                     5 min.           2 min.                 7 min.               8 min.
                                                                                                                                                                                                                          Value-Added Time
Future State Map
                        Designing a Lean Flow
Product family
                    You always need a future state!

                    Complete 75% & Keep Updating
Current state
  drawing           Consider Material & Information flows

                    Foundation for your Work Plan - like a
 Future state           “blueprint”
   drawing
                    Begin by evaluating Current State

                    1st iteration assumes existing steps & equipment
  plan and          Can move equipment, combine operations,
implementation      reduce scrap, etc.
Future State Questions
  What is the takt time?
  Will we build to shipping or to a supermarket?
  Where can we use continuous flow? (Single Piece vs Batch)
  Where do we have to use supermarket pull system?
  At what single point in the production chain do we trigger
  production?
  How do we level the production mix at the pacemaker
  process?

SUPPORTING IMPROVEMENTS
  What process improvements will be necessary?
  (e.g. uptime, changeover, training)
TAKT Time



Synchronizes pace of assembly
   to match pace of sales.

Rate for assembling a product
      based on sales rate.




          TAKT = Effective Working Time per Shift
                 Customer Requirement per Shift
Lean Manufacturing
       Concepts & Techniques

Flow: Setup Reduction, Cellular
Manufacturing, Batch Size Reduction,
Visual Workplace, Layout

Pull: Kanban Systems, Supply Chain
Management, Point of Use

Perfection: Quality Systems, Training
XYZ COMPANY FUTURE
Brooks        Test Eq.      Compu             Winston       App.             Parker-                    WEEKLY
              Sales         Wire              (Sheet        Energy           Hannif.                    FORECAST                                                                                          Forecast
MFC           Regulator     PCB               Metal)        (Manif.)         (cell)                                               PRODUCTION                                               Monthly
                                                                                                                                  CONTROLS                                                 forecast
                                                                                                                                                                                                                             5 top
         2 wk.      2 wk.      2 wk.     2 wk. 2 wk.        2 wk.                                       DAILY                                                                                             Orders
                                                                                                        CONSUMP.                  MRP                                                      SALES                             customers


                                                                                                                                                                                                                             Avg. = 15/mo.
                                                                                                                                                                                                                             Max = 25/mo.
                                         Daily as                                                                                                               DAILY                                                        Dem. = 1/day
                                         needed                                                                                                                 ORDERS                                                       Orders = 5/mo.
                                                                                                                                                                                                                             1 unit/ day


                                                                             14 Elemts.                                                                                                                                          Daily as
                                                                                                                                                                                                                                 needed
                                                                                                                                                   WETLINE 11 CELLS
      WIRE            WIND                     ANNEAL                    SEAL
                                       FIFO                    FIFO                                                                                RHODIUM CELLS
      ROD             7
                      elements                                                                                                                     PLATINUM CELLS
      GLASS           per batch                                                                                                                                                                                      Subassemblies
      TUBE
                                                                                                                                                                                                                        1 model 1
                                                                                               ELEMENT      CELL       CELL                            CELL                                                             1 model 2
                   CT = 3min.                  CT = 8min.              CT = 7min.              PREP.   FIFO
                                                                                                            ASSY.
                                                                                                                  FIFO
                                                                                                                       SENSIT.                   FIFO DRYDWN                                                            1 model 3
                   C/O = 5min.                 C/O = 1 h.
                                                                                                                                                                                                                        1 model 4               1 card per
                                                                                                                                                                                                                                                model
                                                                         Cell body
                                                                                                                                                                                   UNIT               ACCLIM.            UNIT                   FINAL         SHIP,
                                                                                                                                                                                   INST.                                 TEST                   ASSY,         PACK
                                                                                               CT = 8.5 h.          CT = 40min.      CT = 21h.       CT = 2-7 days
                                                                                                                                                                                                                                                INSP.         ,

                                                                                                                                                     Subassemblies
                                                                                                                                                         1 model 1                           FIFO                 FIFO
                                                                                                                                                         1 model 2                                                                            CT = 0.75-      CT =
                                                               MFC                   MECH                    ELEC.               LEAK                                          CT = 15min.       CT = 2-14 days        CT = 32h.              1.25 h.         40min.
                                                                                     SUBASSY.                ASSY +              TEST
                                                                                                                                                         1 model 3
                                                                                                        FIFO                FIFO                         1 model 4
                                                                Reg.                                         CALIB.                                                                                                           2-14 days
                                                                                                                                                          11 days
                                                                PCB                                                                                                                                                                   Rack
                                                                                                                                                                                                                                                  8 hr./day
                                                                                                                                                                                                                                   Module         20 day/month
                                                        CT = 4 h.                    CT = 2 h.               CT = 30min.
                                                                                                                                                                                                                                                  Process time:
                                                                                                                                                                                                                                                               12-29d.
                                                                                                                                                                                                                                                  Lead time: 67-84d.

         0.5 mo                                                                        1 mo.                                                                         11 days                                                  2-14 days
                          3 min.          8 min.                    7 min.                     8.5 h.             40 min.          21 h.         2-7 days                      15 min.           2-14 days           32 h.                  0.75-1.25 h.     40 min.
Complex VSM
                                                                                    S T A N D A RD U N IT S – FU T U R E S TA T E

                               SUPPLIER                      PURCHASING
                                                             FORECASTS
                                                                                                                                                                                      SHIPPING             Unit
                                                                                                                           PRODUCTION
                                                                                                                           CONTROLS                                                                                                         Avg. = 20/mo                 As
                        As                                                                               Schedule                                                                                           Order            Customers
                                                                                                                                                                                      Service                                               Demand = 1                   needed
                        needed                                                                                             MACOLA SYSTEM
                                                                                                                                                                                      Coordinator          Estimate                         unit/ day
                                                                                                                                                            Order       Unit
                                                                                                         Work
                                                                                                                                                                  Service        Order
                                                                                                         Order
                                                                                                                                                                                                              Paperwork


                                                                                                           14 Elements                                                                                                        REPAIR
                         WIRE                                                                                                                               Sensitize                        Bag
                                                    Wind                        Anneal                                             Element                  (5u)                                                              Estimating             Customer
                         ROD                        7 elements/       FIFO                                                         Prep.
                                                                                                 FIFO          Seal                                                                                                                                  PO
                                                    batch
                         GLASS
                         TUBE                                                                                                                                                                CT = 5 min.
                                                    CT = 3 min.                 CT = 8 min.                                                                 CT = 217h.
                                                    C/O = 5 min.                C/O = 1 h.                                         CT = 8.5 h.              CO = 15 min.
                                                                                                                                                            ACC = 40%
              Service                                                                                      CT = 7 min.
              Units                                                20%

                        FIFO                       FIFO
                                 Initial                   Pressure                  Remove             FIFO                      FIFO                     FIFO
                                                                                                                                                                                                    FIFO
                                 Test                      Leak                      Cell                         Calibration                 Clean                     Dry                                                  Install                 Release
                 I                                                                                                Workbench                   Flush                     Down                                                 Cell
                                                           Test
                 5u                                                                                                                                                                                                       CT = 15m
                                 CT = 15m-1d               CT = 15 min.              CT = 15 min.                 CT = 10-31m.                CT = 30m               CT = 24-48 hr.
            0.25 mo.                                       CO = 15 min.                                           CO = 10-15m.
                                                           RA = !00%


               Repair
               Parts
                                                   FIFO                      FIFO                 FIFO                     FIFO                  FIFO                FIFO                      FIFO                   FIFO
                                                                                                                                  Dry down
                                   Assembly                  Leak                   Unit                       Final
                                                                                                                                  Gas
                                                                                                                                                         Cap                    Tech                       QC                      Pack
                                   And Repair                                       Drydow                     Test                                      &                      Inspection                 Check                   &
                                                             Test                                                                 Paperwork              Clean                                                                     Ship
                                                                                    n                          1u


                                 CT = 15m (A)                                                                  CT = 1.5h – 1d        CT = 4h            CT = 20m                CT=5 min              CT = 10min.                  CT =
                                                           CT = 15m                 CT = 1-3 d                 CO = 10 m             C/O = 10m                                                                                     30min.
                                 CT = 10n-1h (R)                                    C/O = 10m

                                                                                                                                                                                                                                               8 hours/day
                                                                                                                                                                                                                                               20 days/month
                                                                                                                                                                                                                                               Process Time: 3.1 – 7.9 days
NOTE: Process and lead time based only on service unit path as shown in bold.                                                                                                                                                                  Lead Time: 8.1 – 12.9 days
STANDARD UNITS
                                  FUTURE STATE VALUE STREAM MAP



                                                           Standard Cells Supermarket



      Element
                                  Sensitize
        Prep

                    2 - 4 days




                       Mechanical Assemlby, Electrical                       Install
                                                            FIFO
       I                Assembly, Calibrate, Purge                            Cell



    14 days                                   4 to 8 hrs




                             Pack, Ship                      Inspect             Unit Final Test                 Drydown


                                                                                       2 -4 days
Customers
              ? Unit/Day

                                                                                                   Process Time: 3 to 5 days
                                                                                                   Lead Time: 15 to 17 days
VSM Examples

Current State to Future State
Value Stream Map (Current State)

                                                                                         Orders Every 2 Weeks




                                                                                                                    Production Control
                             New Jersey                                                                                                           Randomly Placed
    Andrea Aromatics                                        Alanx                         Order as Needed                                                                         Various
                              Porcelain                                                                                                          Orders (Various Sizes)
     (Scented Oils)                                    (Shaped Stones)                                                                                                           Customers
                           (Round Stones)



                                                                                                                                                                              Average of 6,000
                                                                                                                                                                              Stones per Day
                                                                                                                                                                              in Various Size
                                                                                                                                                                              Orders (8 to 20 case
                                                                                                                                                                              & 200 to 400 case
                                                                                                                                                                              range mainly)
       30 Cans of Oil        59,000 Stones                 50,000+ Stones
       Every 2 Weeks         Every 2 Weeks                 Every 2 Months
                                                             (via stringer)
                                                                                           Bi-
                                                                                           Weekly                                                Daily Shipping
                                                                                           Productio                                                 Orders
                                                                                           n                                                                                         Daily
                                                                                           Schedule                                                                                Shipments




                                                                Existing Work Cell

                             Soak & Dry                          Packaging                       Labeling              Cartoning             Case Packing                     Shipping


                                                                                                  APAI
                             Multiple                             Ameripack                                             Manual                  Manual
                                                                                                Automatic
                            Batch Tanks                         Flow Packager
                       I                           I                                 I           Stapler        I                        I                         I
                                                                                 up to                          0                        0
125 Cans of Oil              1 Operator          4290
                                                                                  250
                                                                                                1 Operator            1/2 Operator            1/2 Operator        90,504   1 Operator
                                                 Stones
20,640 Round Stones                                                              stones                                                                           Stones
                                                                                 in WIP
49,000 Shaped Stones
                           C/T = 25 - 65 min.                    C/T = 1 sec.                   C/T = 3 sec.          C/T = 2 sec.            C/T = 1 sec.
                           C/O = 10 min.                         C/O = 5 min.                   C/O = 2 min.          C/O = N/A               C/O = N/A
                           Rel. = 100%                           Rel. = 85%                     Rel. = 80%            Rel. = 100%             Rel. = 100%


                                                                                                                                                                              27.4 Days Lead Time
               11.6 Days                        0.7 Days                                                                                                          15.1 days
                                                                                                                                                                              65 minutes, 7 seconds
                              65 min.                                                                  7 seconds
                                                                                                                                                                                 Value-Added Time
Value Stream Map (Future State)

                                                                                          Orders Every Week




                             New Jersey                                                                                                                       Randomly Placed
    Andrea Aromatics                                        Alanx                            Monthly Order                Production Control                                                  Various
                              Porcelain                                                                                                                      Orders (Various Sizes)
     (Scented Oils)                                    (Shaped Stones)                                                                                                                       Customers
                           (Round Stones)



                                                                                                                                                                                          Average of 6,000
                                                                                                                                                                                          Stones per Day
                                                                                                                                                                                          in Various Size
                                                                                                                                                                                          Orders (8 to 20 case
                                                                                                                                                                                          & 200 to 400 case
                                                                                             Bi-Weekly                                                                                    range mainly)
       12 to 16 Cans         30,000 Stones                 25,000 Stones                     Production
       of Oil Once a         Once a Week                   Once a Month                      Schedule
       Week                                                (via stringer)                    (large
                                                                                             orders)
                                                                                                                                                             Daily Shipping
                                                                                                                                                                 Orders
                                                                                                                                                                                                 Daily
                                                                                                                                                                                               Shipments



                                                                                                                                               4 Cases

                                                                Existing Work Cell

                             Soak & Dry                          Packaging                          Labeling                 Cartoning                   Case Packing                     Shipping


                                                                                                     APAI
                             Multiple                             Ameripack                                                   Manual                        Manual
                                                                                                   Automatic
                            Batch Tanks                         Flow Packager
                       I                           I                                  I             Stapler           I                          I
                                                                                 up to                                0                          0
75 Cans of Oil               1 Operator          4290
                                                                                  250
                                                                                                   1 Operator               1/2 Operator                  1/2 Operator        30,000     1 Operator
                                                 Stones
40,000 Round Stones                                                              stones                                                                                       Stones
                                                                                 in WIP                                                                                       in a supermarket
25,000 Shaped Stones
                           C/T = 25 - 65 min.                    C/T = 1 sec.                      C/T = 3 sec.             C/T = 2 sec.                  C/T = 1 sec.        type arrangement
                           C/O = 10 min.                         C/O = 5 min.                      C/O = 2 min.             C/O = N/A                     C/O = N/A
                           Rel. = 100%                           Rel. = 85%                        Rel. = 80%               Rel. = 100%                   Rel. = 100%         with stocking levels
                                                                                                                                                                              by shape and scent

                                                                                     Increase
               10.8 Days                        0.7 Days
                                                                                     Reliability
                                                                                                                                                                              5.0 days       16.5 Days Lead Time
                                                                                                                                                                                             65 minutes, 7 seconds
                              65 min.                                                                     7 seconds                                                                             Value-Added Time
Value Stream Map (Current State) for Console & Accessories Assembly
                   Order Twice
                     Per Year
                 (Blanket Orders)
                                                                                                   Daily Orders




                                                                                                                                                                Randomly Placed
                                                               Hardware, Labels,                                                      Equipment
                                                                                                                                                              Orders (various sizes,
          Extrusion             Sheetmetal Parts                 & Instruction                       Order as Needed              Production Control                                           Various
                                                                                                                                                              typical is 2 to 3 units
          (Warner)              (Havis-Shields)                 Manuals from                                                                                                                  Customers
                                                               Various Vendors


                                                                                                                                                                                        98% external customers;
                                                                                                                                                                                        2% internal use.
                                                                                                                                                                                        External customers are:
                                                                                                                                                                                        40% distributors,
                                                                                                                                                                                        40% end users;
                                                                                                                                                                                        20% outfitters
           10,000 lbs               As Required;
           minimum                  black vinyl
                                                                      As Required
           order via                aluminum direct;
           anodizer                 rest via painters.                                                 Daily
                                                                                                                                             Daily
                                                                                                     Production
                                                                                                                                             Orders
                                                                                                      Reports




Reduce order quantity and
inventory amount by buying
standard sizes and cutting to                                                   Assemble                           Kit & Pack                 Shipping
fit at Company.                                                                Consoles &
                                                                                                                                                                                            Daily Shipments
                                                                               Accessories
                                                                                                                                                                                            ($375K monthly
                                                                                                                                                                                                average)
                                                                  I                                  I                            I
 Reduce inventory amount by                                $450K worth,                           1 week,
                                                                               6 Operators                         2 Operators    0          1 Operator
 changing how extrusion is                                 about 25 days                           up to
                                                         (mainly extrusion)                     1000 pieces
 bought and used.
                                                                              C/T = 5-10 min.                 C/T = 10-20 min
                                                                              C/O = 0 min                     C/O = 0 min.
                                                                              Rel. = 100%                     Rel. = 100%



                                                            25 days                               5 days                              0                   30 Working Days, Lead Time
                                                                                5 to10 min.                       10 to 20 min.
                                                                                                                                                          15 to 30 minutes, Value-Added Time
The VSM Opportunity


             10,000 lbs         As Required;
             minimum            black vinyl
             order via          aluminum direct;                   As Required
             anodizer           rest via painters.
                                                                                                                 Daily
                                                                                                               Production
                                                                                                                Reports




Reduce order quantity and
inventory amount by buying
standard sizes and cutting to                                                           Assemble
                                                                                       Consoles &
fit at Company.                                                                        Accessories


                                                               I                                          I
                                                       $450K worth,                                    1 week,
                                                                                   6 Operators          up to
             Reduce inventory amount by                about 25 days
                                                                                                     1000 pieces
                                                     (mainly extrusion)
             changing how extrusion is
             bought and used.                                                    C/T = 5-10 min.
                                                                                 C/O = 0 min
                                                                                 Rel. = 100%




                                                         25 days                                      5 days


                                                                                     5 to10 min.
Value Stream Map (Future State) for Console & Accessories Assembly
            Monthly or
            Bi-Monthly
              Orders
                                                                                  Daily Orders




                                                                                                                         Equipment                       Randomly Placed
                                                                                                                     Production Control                Orders (various sizes,
Extrusion                                          Hardware, Labels,         Order as Needed                                                                                             Various
                                                                                                                                                       typical is 2 to 3 units)
(Warner)                 Sheetmetal Parts            & Instruction                                                                                                                      Customers
                         (Havis-Shields)            Manuals from
                                                   Various Vendors

                                                                                                                                                                                  98% external customers;
                                                                                                                                                                                  2% internal use.
                                                                                                                                                                                  External customers are:
                                                                                                                                                                                  40% distributors,
                                                                                                                                                                                  40% end users;
                                                                                                                                                                                  20% outfitters
 10,000 lbs
 minimum
                             As Required                    As Required
 order via
                                                                                Daily
 anodizer
                                                                              Production         Production                     Daily
                                                                               Reports           Run                            Orders
                                                                                                 Request




                                                                           Production
                                                                           Run
                                                                           Request
                                              Extrusion                      Assemble                          Kit & Pack                  Shipping
                                               Cutting                      Consoles &
                                                                                                                                                                                      Daily Shipments
                                                                            Accessories
                                                                                                                                                                                      ($375K monthly
                                                                                                                                                                                          average)
                                                                          Manufacturing
                               I                                     I       Cells
                                                                                                                                 I
                       $250K worth,                                  0                    High volume
                                              2 Operators                  6 Operators                       2 Operators         0        1 Operator
                       about 15 days                                                      consoles &
                     (mainly extrusion)                                                   accessories in a
                                                                                          supermarket type
                                                                                          arrangement
                                            C/T = 15 min.                 C/T = 5-10 min. with stocking C/T = 10-20 min
                                            C/O = 0 min                   C/O = 0 min     levels           C/O = 0 min.
                                            Rel. = 100%                   Rel. = 100%                      Rel. = 100%



                           15 days                                   0                         2 days                                0                       17 Working Days, Lead Time
                                              15 min.                        5 to 10 min.                     10 to 20 min.
                                                                                                                                                             30 to 45 minutes, Value-Added Time
The VSM Improvement
                                                    Daily         Production
                                                                                               Daily
                                                  Production      Run
                                                                                               Orders
                                                   Reports        Request




                                             Production
                                             Run
                                             Request
                                                Assemble
                       Extrusion                                               Kit & Pack
                                               Consoles &
                        Cutting
                                               Accessories

        I                            I       Manufacturing                     2 Operators
                      2 Operators                Cells
  $250K worth,
                                     0         6 Operators
  about 15 days                                                High volume
(mainly extrusion)                                             consoles &
                                                               accessories in a
                                         C/T = 5-10 min.       supermarket type
                     C/T = 15 min.                                                    C/T = 10-20 min
                                         C/O = 0 min           arrangement
                     C/O = 0 min                                                      C/O = 0 min.
                                         Rel. = 100%           with stocking
                     Rel. = 100%                                                      Rel. = 100%
                                                               levels

    15 days                          0                           2 days

                       15 min.                  5 to 10 min.                   10 to 20 min.
How Do We Implement the Future State
              VSM?
 Don’t Wait!
 Use future state VSM to highlight changes
 Break up the future state into loops
 Develop a VSM implementation plan
 Tie plan to business objectives
 Assign projects to team members to
implement
VSM Showing Improvement Opportunities
                                                                                       Value Stream Map (Current State)
                                                                            Stamping Orders With No Plating or Heat Treatment
                                                                                 (Potential Future State Changes in Red)
                                                                                                        Projected requirements




                                                                      Phosphor Bronze                                                               Omega Precision
                                     Beryllium Copper                                                                                                                                 Randomly Placed
           Brass                                                           (30%)                          Order as Needed                          Production Control                                                       Various
                                           (30%)                                                                                                                                     Orders (Various Sizes)
           (40%)                                                        10 Week LT                                                                 Vista Software System                                                   Customers
                                        6 Mos. LT
        4 Weeks LT                                                    6 Weeks Reroll
                                     In Stock- 1 Week
                                                                                                  Review Work
                                                                                                  Schedule with                                         Formal
                                                                                                                                                      Production                                                       Average of
                                                                                                    Suppliers                                                                                                          1 mm pcs per day
                                                                                                                                                       Control
                                                                                                                                                                                                                       in Various Sizes
                                                                                                                                                                                                                       Orders (2 to 13)


                                                                                                                                                       Single Point
          Every Week                  Every Week                       Every Week                                                                      of Control

                                                                                                           Weekly Production                                                         Weekly Shipping
                                                                                                           Schedule Pressroom                                                             List
                                                                                                                Manager                                                                                                       Daily
                                                                                                                                                                                                                            Shipments
                                                                                                        Average order = 208,000 pcs
                                                                                                                         252,000 strokes
                                                                Pre-Control for
                                                                Roll Changes
                                                                                                                                        Combine?
                                                                                                                                 •Lot Control Improvement
                                                    Stamping                                                                        •Handling Reduction
                                                                                                        Degreasing                                                         Packing
                                                                                                                                                                                                                           Shipping
                                                                                                        Drying
       10 to 24 coils                             11 Stamping
       3 times /week                                                                                                                                                       Manual
                                                    Presses
                            I                     6 Operators                         I                     1 unit                             I                        1 Operator                       I                 Shipper
                                                                                                       2 Baskets - Strip
                         50 to 70                                                 20 to 40 Bins        1 Basket - Pieces                   2 Hours                                                    1 Day
                          Racks                                                                                                                                                                         to
                                          Run: 200-600pcs/min                                     C/T = 2 Hr Strips                                                                                 12 Weeks
                        100 to 125        C/T = .003 min/pc.                                             Max 1000/Basket                                              C/T =10 hr        Auto
                          Coils                                           Visual Status                  Min 200/Basket                                               C/O = None       Bagging
                                          C/O = 4.5 hrs.                                               = 30 Min Pcs.                                                  Rel. = 80%
  Standard Time                                                            of Presses
                                                                                                         25,000 Pcs/Basket
    for Setup               Setup         Available: 590 min/shift                                                                      Layout is
                                                                                                  C/O = None
   Adjustment               Time          Rel. = 90%                                                                                    a Problem
                                                                                                  Rel. = 95%
                                                                                                                                                                                                                         16.75 Days Lead Time
                        10 Days       Sankyo                                         2 Days              Reduce                                                                                    1 Day to 12 Weeks
                                                                                                                                                                                                                         + coil lead time
                                     Coil Feeds                                                        Cycle Time                                                                                                        per average order
                                                  1.5day(avg)
                                                                                                                                           2.25 Days                                                                     3.75 Days Value
                                                                                                                                                                                                                         Added Time
Value Stream Map (Current State)
                                                                         Stamping Orders With No Plating or Heat Treatment
                                                                              (Potential Future State Changes in Red)
                                                                                                     Projected requirements


                                                                                              SUPPLIER
                                                                          Phosphor              LOOP                                       Production Control               Randomly Placed
                                        Beryllium
             Brass                                                        Bronze                       Order as Needed                     Vista Software System
                                                                                                                                                                           Orders (Various Sizes)                Various
                                       Copper
             (40%)                                                         (30%)                                                                                                                                Customers
                                            (30%)
          4 Weeks LT                                                    10 Week LT
                                          6 Mos. LT
                                                                      6 Weeks Reroll
                                         In Stock- 1
                                            Week                                               Review Work
                                                                                                                                               Formal
                                                                                               Schedule with
                                                                                                 Suppliers                                   Production   PRODUCTION                                         Average of
                                                                                                                                                                                                             1 mm pcs per day
                                                                                                                                              Control      CONTROL                                           in Various Sizes
                                                                                                                                                             LOOP                                            Orders (2 to 13)


                                                                                                                                               Single Point
            Every Week                   Every Week                    Every Week                                                              of Control

                                                                                                       Weekly Production                                                    Weekly Shipping
                                                                                                       Schedule Pressroom                                                        List
                                                                                                            Manager                                                                                                Daily
                                                                                                                                                                                                                 Shipments
                                                                                                     Average order = 208,000 pcs
                                                                                                                     252,000 strokes
                                                                 Pre-Control for
                                                                 Roll Changes
       PRESS                                                                                                                    Combine?
       LOOP                                                                                                              •Lot Control Improvement
                                                      Stamping                                                             •Handling Reduction
                                                                                                     Degreasin                                                 Packing
                                                                                                                                                                                                                Shipping
                                                                                                     g
                                                                                                     Drying
                                                    11 Stamping
         10 to 24 coils                                                                                                                                        Manual
                                                      Presses
         3 times/week
                              I                     6 Operators
                                                                                     I                  1                              I                      1 Operator
                                                                                                                                                                                              I                 Shipper
                                                                                                       unit
                                                                                                    2 Baskets - Strip
                           50 to 70                                                20 to 40         1 Basket - Pieces              2                                                        1 Day
                            Racks                                                   Bins                                           Hours                                                      to
                                            Run: 200-600pcs/min                                 C/T = 2 Hr Strips                                                                         12 Weeks
                          100 to 125        C/T = .003 min/pc.                                        Max                                                   C/T =10 hr          Auto
                                                                                                                                                                                                    DEGREASE/PACK
                            Coils
                                            C/O = 4.5 hrs.
                                                                         Visual Status          1000/Basket
                                                                                                      Min 200/Basket
                                                                                                                                                            C/O = None
                                                                                                                                                            Rel. = 80%
                                                                                                                                                                               Bagging                   LOOP
                                                                          of Presses
    Standard Time
       for Setup
                                                                                                    = 30 Min Pcs.                                                                                    (PACEMAKER)
                             Setup          Available: 590 min/shift                                  25,000                    Layout is
     Adjustment              Time           Rel. = 90%                                          Pcs/Basket                      a Problem
                                                                                                C/O = None
                                                                                                Rel. =Reduce
                                                                                                      95%                                                                                                      16.75 Days Lead Time
                          10 Days       Sankyo                                      2 Days                                                                                               1 Day to 12 Weeks
                                                                                                    Cycle Time
                                                                                                                                                                                                               + coil lead time
                                       Coil Feeds
                                                    1.5day(avg                                                                                                                                                 per average order
                                                                                                                                   2.25 Days                                                                   3.75 Days Value
                                                    )
File: Omega VSM Current Loop) May 24                                                                                                                                                                           Added Time
Value Stream Map (Future State)
                                                                     Stamping Orders With No Plating or Heat Treatment

                                                                                                 Projected requirements




                                                                                                                                  Production Control
                                                                      Phosphor                                                                                       Randomly Placed
                                       Beryllium                                                                              Using Vista Software Module
               Brass                                                  Bronze                      Order as Needed                                                   Orders (Various Sizes)       Various
                                      Copper
               (40%)                                                   (30%)                                                                                                                    Customers
                                           (30%)
            4 Weeks LT                                              10 Week LT
                                         6 Mos. LT
                                                                  6 Weeks Reroll
                                        In Stock- 1
                                           Week                                          SUPPLIER
                                                                                           LOOP                                                                     PRODUCTION               Average of
                                                                                                                                            Daily Order                                      1 mm pcs per day
                                                                                                                                                                     CONTROL                 in Various Sizes
                                                                                                                                                                                             Orders (2 to 13)
                                                                                                                                                                       LOOP

             Every Week                 Every Week                  Every Week




                                                                                                                                                                                                   Daily
                                                                                                                                                                                                 Shipments
                                                       Coil




                                                                         Batch                                                                                                                  Shipping
                                                                                           Bin


                         Coils                                                                       Degreasing     Packing                                                                      Shipper
                                                              Stamping
         PRESS
         LOOP                                                                                    New Ultrasonic
                                                                                                   Cleaners                                                         DEGREASE/PACK
                                                                                                                                                                         LOOP
                                                                                                                                                   Finished Goods    (PACEMAKER)


                         1 Day                                                   1 Day                                                                      1 Day
                                                                                                                                                                                              5 Days Lead Time
                                                1day                                                                                                                                         and Coil Lead Time
                                                                                                              1 Day
File: Omega VSM Future Loop) May 24
VSM IMPLEMENTAION
                                       FUTURE STATE IMPLEMENTATION PLAN & SCHEDULE
                                                                                                                                                       SEQUENCE COMPLETION
             LOOP                                  OBJECTIVES                                               PROJECTS                                   (PRIORITY) DATE (Mon./Yr)
          Supplier Loop             * Develop pull system with suppliers            1. Review Weekly/Monthly Requirements With Suppliers                   1           Sep-01
                                    * Increase number of deliveries per week        2. Revise current blanket orders                                       1           Sep-01
                                    * Reduce raw material inventory to match        3. Send daily consumption data to suppliers                            2           Nov-01
                                                                                    4. Setup point of use raw material areas                               1           Oct-01

    Production Control Loop         * Implement daily shipping schedule             1. Single point to schedule( shipping). See pacemaker loop.            1           Oct-01
                                    * Work to schedule manufacturing based on
                                    shipping requirements                           2. Daily production schedule by Operations Manager                     1           Oct-01
                                                                                    3. Implement kanban loops as shown on future state VSM                 2           Nov-01
                                                                                    4. Use MRP for materials forecasting                                   1           Oct-01
             Element                * Reduce lead time                              1. Eliminate WIP between winding & annealing                           1           Sep-01
              Loop                  * Develop continuous flow                       2. Implement supermarket for element prep and kanbans                  1           Oct-01
                                    * Develop pull system with element prep
                                    supermarket                                     3. Crosstrain element assembly operations                              2           Dec-01




     Module Assembly Loop           * Reduce cycle time                             1. Analyze process variance in environmental test                      1           Oct-01
                                    * Reduce variation in cycle time in testing     2. Analyze process variance in module drydown                          1           Oct-01
                                    * Reduce variation in cycle time in drydown     3. Implement supermarket and kanbans for cell installation             1           Oct-01
                                    * Establish pull system with supermarket from
                                    cell installation                               4. Crosstrain module assembly operations                               2           Dec-01
                                    * Reduce use of carriers                        5. Analyze need for carriers vs. subassembly units                     1           Sep-01
                                                                                    6. Analyze material handling reductions and layout
                                                                                    improvements for element prep operations                               3           Jan-02
                                                                                    7. Set up leak tested subassembly units in supermarket for final
                                                                                    assembly                                                               1           Oct-01
         Pacemaker Loop             * Reduce cycle time                             1. Improve assembly methods in final mechancial assembly               2           Dec-01
                                    * Establish pull system with supermarket from   2. Review design for manufacturing assembly improvements for
 (Unit Assembly/Shipping Loop)      shipping                                        tubing assembly                                                        3           Feb-02
                                                                                    3. Consolidate inspection with final mechanical assembly or
                                                                                    shipping/packing                                                       2           Nov-01
                                                                                    4. Set up raw material suppermarket for final assembly                 1           Oct-01
                                                                                    5. Crosstrain unit assembly operations                                 2           Dec-01




NOTES:
1. Conduct kanban and point of use training for plant personnel in 2001.
2. Priotities as follows: #1(Complete in 2 months), #2(Complete in 4 months), #3(Complete in 6 months)
3. Consider use of teams for implementation after training.
The VSM Cycle



 Assessment        Recommended      Set Up
   (VSM)             Solutions      Layout
                                    Cells
Continuous                          Visual

Improvement
                                    Automation

                   Implementation   Information
   DO IT!
                        Plan          Systems
Other VSM Applications


Office Improvements

Long Range Planning
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool
Using Value Stream Mapping As a Strategic Planning & Implementation Tool

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Using Value Stream Mapping As a Strategic Planning & Implementation Tool

  • 1. Using Value Stream Mapping as a Strategic Planning and Implementation Tool Frank Garcia Director, Engineering Services ADVENT DESIGN CORPORATION
  • 2. Why Use VSM? Identify areas for lean improvements Train team members in use of lean concepts Integrated lean implementation plan Long term planning
  • 3. What We’ll Cover What is VSM? Basic Lean Concepts Developing Value Stream Maps: Current & Future State Implementing VSMs Using VSMs
  • 4. Lean Manufacturing Fundamental Principle of Lean Manufacturing Any activity or action which does not add value to the product is a form of waste and must be eliminated or minimized.
  • 5. Definition of Value -Added Value is added any time the product is physically changed towards what the customer is intending to purchase. Value is also added when a service is provided for which the customer is willing to pay (i.e. design, engineering, etc.). If we are not adding value, we are adding cost or waste. 90% of lead time is non-value added!
  • 6. Waste or Opportunities for Improvement Adds no value Adds only cost and time Symptom rather than cause Points to problems in value stream and process Need to address causes
  • 7. The EIGHT Wastes Inventory (more than one piece flow) Overproduction (more or sooner than needed) Correction (inspection and rework) Material Movement Waiting Motion Non-Value Added Processing Underutilized People
  • 8. FLOW & PULL Make the value-creating steps flow Produce only what is needed If a process is not completed correctly the first time, it does not move down the line for additional work Eliminate re-work
  • 9. Value Stream The value stream is the set of all the specific actions required to bring a specific product (good or service) through the critical management tasks of any business: Information Management Transformation
  • 10. Value Stream Map An Assessment Tool The value stream map follows the order path from beginning to end and shows a visual representation of every process in the order and information flows Shows how the shop floor or office currently operates Develops the foundation for the future state
  • 11. Value Stream Map Concept Orders Production Orders Suppliers Customers Control Schedules I Process I Equipment Raw Cycle Finished Materials Times Goods Change Over Reliability Error Rate Lead Time File: VSM-A1
  • 12. Using the Value Stream Mapping Tool product family current state Understanding how the shop floor drawing currently operates. The foundation for the future state. future state Designing a lean flow drawing plan and implementation
  • 13. Who Develops the VSM? Team Approach? Better understanding of process & opportunities Provides training in Lean Concepts Feel ownership of VSMs Exchange of ideas More open discussion Takes more time
  • 14. Who Develops the VSM? Engineer Collects Data and Drafts VSM? Takes less time Can be done with Management Team Can train on lean concepts & get buy in Less ownership by team and operators Less exchange of ideas within the company
  • 15. Who Develops the VSM? Depends on the company culture and preference How much time can be devoted? Team Approach is most effective!
  • 16. What Tools to Use to Make the VSM? Use Excel or Visio? Hand draw? Use AUTOCAD?
  • 17. What Tools to Use to Make the VSM? Use Excel or Visio • Requires program knowledge • Easy to change • Can use templates • Easy to share & Hand drawn e-mail • Quick • Easy to present • Easy for teams • Difficult to change & copy • Harder to present Use AUTOCAD? FORGET IT!
  • 18. product family Current State Map Understanding how the shop current state drawing floor currently operates. Material and information flows Future state Draw using icons drawing Start with the “door to door” flow Walk the flow and get real data * no standard times * draw by hand plan and Basis for the Future Sate implementation
  • 19. product family Current State Map Corner Punch Recommended Data current state drawing 1 Operator Cycle Time C/T = 2 min. Future state Changeover time C/O = up to 30 min. drawing Number of People Rel. = 99% Scrap = 2% Available Working Time Acceptance or Reject Rate Equipment reliability or downtime plan and implementation
  • 20. Value Stream Map (Current State) Blanket Annual Purchase Order with Daily Releases Production Control Randomly Placed (normally working Various Distributors Sheet Galvanized Sheet Galvanized Sheet Galvanized Sheet Galvanized Orders (normally 24 to 48 hours ahead (~ 24 for Smith Corp. & Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) Steel (4’ by 8’ or cut) single unit orders) of ~ 6 for Jones Systems promised shipment) Average volume of 1000 systems per month in peak season. Customers are mainly distributors. There are a few dealers. Daily Daily Up to an average Daily Production Production of 130,000 lbs Shipping Daily Reports Reports daily in peak Schedule Shipments season In Straight Panel Dept. Shear Notch Specialty Punch Corner Punch Bend Stake & Label Add Z Brace Radius & Band Rack Shipping 1 Accurshear 1 Manual 4 Semi-Auto 3 Semi-Auto 1 Manual 1 Automated 1 Automated 1 Manual Table, Automated Notcher (S-23) Punches Punches Brake (R-7) Machine (R-8) Machine (ACR) 1 Jig-less Shear (P-3) & 1 Automated (S-1, S-2, & S-3) & 1 Automated Machine (R12), I Notcher (R-3) Brake (R-13) & 1 Jig Machine (R1) 2 to 5 days 1 Material 1 Operator 1/2 Operator 0 Operators 1 Operator 1/2 Operator 1/2 Operator 1/2 Operator 2 Operators 2 Operators depending Handler on pre-cut size C/T = 4 min. C/T = 2 min. C/T = 2 min. C/T = 2 min. C/T = 5 min. C/T = 2 min. C/T = 7 min. C/T = 8 min. C/T = N/A C/O = N/A C/O = 4 min C/O = N/A C/O = up to C/O = 30 to C/O = N/A C/O = N/A (average) C/O = N/A Rel. = 99% Rel. = 95% Rel. = 99% 30 min. 60 sec. Rel. = 99% Rel. = 98% to C/O = 2 to 30 Rel. = 100% Rel. = 99% Rel. = 90% 99% min. Rel. = 80% to 100% 2 to 5 Working Days, Lead Time 2 to 5 days 32 minutes, 4 min. 2 min. 2 min. 2 min. 5 min. 2 min. 7 min. 8 min. Value-Added Time
  • 21. Future State Map Designing a Lean Flow Product family You always need a future state! Complete 75% & Keep Updating Current state drawing Consider Material & Information flows Foundation for your Work Plan - like a Future state “blueprint” drawing Begin by evaluating Current State 1st iteration assumes existing steps & equipment plan and Can move equipment, combine operations, implementation reduce scrap, etc.
  • 22. Future State Questions What is the takt time? Will we build to shipping or to a supermarket? Where can we use continuous flow? (Single Piece vs Batch) Where do we have to use supermarket pull system? At what single point in the production chain do we trigger production? How do we level the production mix at the pacemaker process? SUPPORTING IMPROVEMENTS What process improvements will be necessary? (e.g. uptime, changeover, training)
  • 23. TAKT Time Synchronizes pace of assembly to match pace of sales. Rate for assembling a product based on sales rate. TAKT = Effective Working Time per Shift Customer Requirement per Shift
  • 24. Lean Manufacturing Concepts & Techniques Flow: Setup Reduction, Cellular Manufacturing, Batch Size Reduction, Visual Workplace, Layout Pull: Kanban Systems, Supply Chain Management, Point of Use Perfection: Quality Systems, Training
  • 25. XYZ COMPANY FUTURE Brooks Test Eq. Compu Winston App. Parker- WEEKLY Sales Wire (Sheet Energy Hannif. FORECAST Forecast MFC Regulator PCB Metal) (Manif.) (cell) PRODUCTION Monthly CONTROLS forecast 5 top 2 wk. 2 wk. 2 wk. 2 wk. 2 wk. 2 wk. DAILY Orders CONSUMP. MRP SALES customers Avg. = 15/mo. Max = 25/mo. Daily as DAILY Dem. = 1/day needed ORDERS Orders = 5/mo. 1 unit/ day 14 Elemts. Daily as needed WETLINE 11 CELLS WIRE WIND ANNEAL SEAL FIFO FIFO RHODIUM CELLS ROD 7 elements PLATINUM CELLS GLASS per batch Subassemblies TUBE 1 model 1 ELEMENT CELL CELL CELL 1 model 2 CT = 3min. CT = 8min. CT = 7min. PREP. FIFO ASSY. FIFO SENSIT. FIFO DRYDWN 1 model 3 C/O = 5min. C/O = 1 h. 1 model 4 1 card per model Cell body UNIT ACCLIM. UNIT FINAL SHIP, INST. TEST ASSY, PACK CT = 8.5 h. CT = 40min. CT = 21h. CT = 2-7 days INSP. , Subassemblies 1 model 1 FIFO FIFO 1 model 2 CT = 0.75- CT = MFC MECH ELEC. LEAK CT = 15min. CT = 2-14 days CT = 32h. 1.25 h. 40min. SUBASSY. ASSY + TEST 1 model 3 FIFO FIFO 1 model 4 Reg. CALIB. 2-14 days 11 days PCB Rack 8 hr./day Module 20 day/month CT = 4 h. CT = 2 h. CT = 30min. Process time: 12-29d. Lead time: 67-84d. 0.5 mo 1 mo. 11 days 2-14 days 3 min. 8 min. 7 min. 8.5 h. 40 min. 21 h. 2-7 days 15 min. 2-14 days 32 h. 0.75-1.25 h. 40 min.
  • 26. Complex VSM S T A N D A RD U N IT S – FU T U R E S TA T E SUPPLIER PURCHASING FORECASTS SHIPPING Unit PRODUCTION CONTROLS Avg. = 20/mo As As Schedule Order Customers Service Demand = 1 needed needed MACOLA SYSTEM Coordinator Estimate unit/ day Order Unit Work Service Order Order Paperwork 14 Elements REPAIR WIRE Sensitize Bag Wind Anneal Element (5u) Estimating Customer ROD 7 elements/ FIFO Prep. FIFO Seal PO batch GLASS TUBE CT = 5 min. CT = 3 min. CT = 8 min. CT = 217h. C/O = 5 min. C/O = 1 h. CT = 8.5 h. CO = 15 min. ACC = 40% Service CT = 7 min. Units 20% FIFO FIFO Initial Pressure Remove FIFO FIFO FIFO FIFO Test Leak Cell Calibration Clean Dry Install Release I Workbench Flush Down Cell Test 5u CT = 15m CT = 15m-1d CT = 15 min. CT = 15 min. CT = 10-31m. CT = 30m CT = 24-48 hr. 0.25 mo. CO = 15 min. CO = 10-15m. RA = !00% Repair Parts FIFO FIFO FIFO FIFO FIFO FIFO FIFO FIFO Dry down Assembly Leak Unit Final Gas Cap Tech QC Pack And Repair Drydow Test & Inspection Check & Test Paperwork Clean Ship n 1u CT = 15m (A) CT = 1.5h – 1d CT = 4h CT = 20m CT=5 min CT = 10min. CT = CT = 15m CT = 1-3 d CO = 10 m C/O = 10m 30min. CT = 10n-1h (R) C/O = 10m 8 hours/day 20 days/month Process Time: 3.1 – 7.9 days NOTE: Process and lead time based only on service unit path as shown in bold. Lead Time: 8.1 – 12.9 days
  • 27. STANDARD UNITS FUTURE STATE VALUE STREAM MAP Standard Cells Supermarket Element Sensitize Prep 2 - 4 days Mechanical Assemlby, Electrical Install FIFO I Assembly, Calibrate, Purge Cell 14 days 4 to 8 hrs Pack, Ship Inspect Unit Final Test Drydown 2 -4 days Customers ? Unit/Day Process Time: 3 to 5 days Lead Time: 15 to 17 days
  • 28. VSM Examples Current State to Future State
  • 29. Value Stream Map (Current State) Orders Every 2 Weeks Production Control New Jersey Randomly Placed Andrea Aromatics Alanx Order as Needed Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case range mainly) 30 Cans of Oil 59,000 Stones 50,000+ Stones Every 2 Weeks Every 2 Weeks Every 2 Months (via stringer) Bi- Weekly Daily Shipping Productio Orders n Daily Schedule Shipments Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I I up to 0 0 125 Cans of Oil 1 Operator 4290 250 1 Operator 1/2 Operator 1/2 Operator 90,504 1 Operator Stones 20,640 Round Stones stones Stones in WIP 49,000 Shaped Stones C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% 27.4 Days Lead Time 11.6 Days 0.7 Days 15.1 days 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
  • 30. Value Stream Map (Future State) Orders Every Week New Jersey Randomly Placed Andrea Aromatics Alanx Monthly Order Production Control Various Porcelain Orders (Various Sizes) (Scented Oils) (Shaped Stones) Customers (Round Stones) Average of 6,000 Stones per Day in Various Size Orders (8 to 20 case & 200 to 400 case Bi-Weekly range mainly) 12 to 16 Cans 30,000 Stones 25,000 Stones Production of Oil Once a Once a Week Once a Month Schedule Week (via stringer) (large orders) Daily Shipping Orders Daily Shipments 4 Cases Existing Work Cell Soak & Dry Packaging Labeling Cartoning Case Packing Shipping APAI Multiple Ameripack Manual Manual Automatic Batch Tanks Flow Packager I I I Stapler I I up to 0 0 75 Cans of Oil 1 Operator 4290 250 1 Operator 1/2 Operator 1/2 Operator 30,000 1 Operator Stones 40,000 Round Stones stones Stones in WIP in a supermarket 25,000 Shaped Stones C/T = 25 - 65 min. C/T = 1 sec. C/T = 3 sec. C/T = 2 sec. C/T = 1 sec. type arrangement C/O = 10 min. C/O = 5 min. C/O = 2 min. C/O = N/A C/O = N/A Rel. = 100% Rel. = 85% Rel. = 80% Rel. = 100% Rel. = 100% with stocking levels by shape and scent Increase 10.8 Days 0.7 Days Reliability 5.0 days 16.5 Days Lead Time 65 minutes, 7 seconds 65 min. 7 seconds Value-Added Time
  • 31. Value Stream Map (Current State) for Console & Accessories Assembly Order Twice Per Year (Blanket Orders) Daily Orders Randomly Placed Hardware, Labels, Equipment Orders (various sizes, Extrusion Sheetmetal Parts & Instruction Order as Needed Production Control Various typical is 2 to 3 units (Warner) (Havis-Shields) Manuals from Customers Various Vendors 98% external customers; 2% internal use. External customers are: 40% distributors, 40% end users; 20% outfitters 10,000 lbs As Required; minimum black vinyl As Required order via aluminum direct; anodizer rest via painters. Daily Daily Production Orders Reports Reduce order quantity and inventory amount by buying standard sizes and cutting to Assemble Kit & Pack Shipping fit at Company. Consoles & Daily Shipments Accessories ($375K monthly average) I I I Reduce inventory amount by $450K worth, 1 week, 6 Operators 2 Operators 0 1 Operator changing how extrusion is about 25 days up to (mainly extrusion) 1000 pieces bought and used. C/T = 5-10 min. C/T = 10-20 min C/O = 0 min C/O = 0 min. Rel. = 100% Rel. = 100% 25 days 5 days 0 30 Working Days, Lead Time 5 to10 min. 10 to 20 min. 15 to 30 minutes, Value-Added Time
  • 32. The VSM Opportunity 10,000 lbs As Required; minimum black vinyl order via aluminum direct; As Required anodizer rest via painters. Daily Production Reports Reduce order quantity and inventory amount by buying standard sizes and cutting to Assemble Consoles & fit at Company. Accessories I I $450K worth, 1 week, 6 Operators up to Reduce inventory amount by about 25 days 1000 pieces (mainly extrusion) changing how extrusion is bought and used. C/T = 5-10 min. C/O = 0 min Rel. = 100% 25 days 5 days 5 to10 min.
  • 33. Value Stream Map (Future State) for Console & Accessories Assembly Monthly or Bi-Monthly Orders Daily Orders Equipment Randomly Placed Production Control Orders (various sizes, Extrusion Hardware, Labels, Order as Needed Various typical is 2 to 3 units) (Warner) Sheetmetal Parts & Instruction Customers (Havis-Shields) Manuals from Various Vendors 98% external customers; 2% internal use. External customers are: 40% distributors, 40% end users; 20% outfitters 10,000 lbs minimum As Required As Required order via Daily anodizer Production Production Daily Reports Run Orders Request Production Run Request Extrusion Assemble Kit & Pack Shipping Cutting Consoles & Daily Shipments Accessories ($375K monthly average) Manufacturing I I Cells I $250K worth, 0 High volume 2 Operators 6 Operators 2 Operators 0 1 Operator about 15 days consoles & (mainly extrusion) accessories in a supermarket type arrangement C/T = 15 min. C/T = 5-10 min. with stocking C/T = 10-20 min C/O = 0 min C/O = 0 min levels C/O = 0 min. Rel. = 100% Rel. = 100% Rel. = 100% 15 days 0 2 days 0 17 Working Days, Lead Time 15 min. 5 to 10 min. 10 to 20 min. 30 to 45 minutes, Value-Added Time
  • 34. The VSM Improvement Daily Production Daily Production Run Orders Reports Request Production Run Request Assemble Extrusion Kit & Pack Consoles & Cutting Accessories I I Manufacturing 2 Operators 2 Operators Cells $250K worth, 0 6 Operators about 15 days High volume (mainly extrusion) consoles & accessories in a C/T = 5-10 min. supermarket type C/T = 15 min. C/T = 10-20 min C/O = 0 min arrangement C/O = 0 min C/O = 0 min. Rel. = 100% with stocking Rel. = 100% Rel. = 100% levels 15 days 0 2 days 15 min. 5 to 10 min. 10 to 20 min.
  • 35. How Do We Implement the Future State VSM? Don’t Wait! Use future state VSM to highlight changes Break up the future state into loops Develop a VSM implementation plan Tie plan to business objectives Assign projects to team members to implement
  • 36. VSM Showing Improvement Opportunities Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment (Potential Future State Changes in Red) Projected requirements Phosphor Bronze Omega Precision Beryllium Copper Randomly Placed Brass (30%) Order as Needed Production Control Various (30%) Orders (Various Sizes) (40%) 10 Week LT Vista Software System Customers 6 Mos. LT 4 Weeks LT 6 Weeks Reroll In Stock- 1 Week Review Work Schedule with Formal Production Average of Suppliers 1 mm pcs per day Control in Various Sizes Orders (2 to 13) Single Point Every Week Every Week Every Week of Control Weekly Production Weekly Shipping Schedule Pressroom List Manager Daily Shipments Average order = 208,000 pcs 252,000 strokes Pre-Control for Roll Changes Combine? •Lot Control Improvement Stamping •Handling Reduction Degreasing Packing Shipping Drying 10 to 24 coils 11 Stamping 3 times /week Manual Presses I 6 Operators I 1 unit I 1 Operator I Shipper 2 Baskets - Strip 50 to 70 20 to 40 Bins 1 Basket - Pieces 2 Hours 1 Day Racks to Run: 200-600pcs/min C/T = 2 Hr Strips 12 Weeks 100 to 125 C/T = .003 min/pc. Max 1000/Basket C/T =10 hr Auto Coils Visual Status Min 200/Basket C/O = None Bagging C/O = 4.5 hrs. = 30 Min Pcs. Rel. = 80% Standard Time of Presses 25,000 Pcs/Basket for Setup Setup Available: 590 min/shift Layout is C/O = None Adjustment Time Rel. = 90% a Problem Rel. = 95% 16.75 Days Lead Time 10 Days Sankyo 2 Days Reduce 1 Day to 12 Weeks + coil lead time Coil Feeds Cycle Time per average order 1.5day(avg) 2.25 Days 3.75 Days Value Added Time
  • 37. Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment (Potential Future State Changes in Red) Projected requirements SUPPLIER Phosphor LOOP Production Control Randomly Placed Beryllium Brass Bronze Order as Needed Vista Software System Orders (Various Sizes) Various Copper (40%) (30%) Customers (30%) 4 Weeks LT 10 Week LT 6 Mos. LT 6 Weeks Reroll In Stock- 1 Week Review Work Formal Schedule with Suppliers Production PRODUCTION Average of 1 mm pcs per day Control CONTROL in Various Sizes LOOP Orders (2 to 13) Single Point Every Week Every Week Every Week of Control Weekly Production Weekly Shipping Schedule Pressroom List Manager Daily Shipments Average order = 208,000 pcs 252,000 strokes Pre-Control for Roll Changes PRESS Combine? LOOP •Lot Control Improvement Stamping •Handling Reduction Degreasin Packing Shipping g Drying 11 Stamping 10 to 24 coils Manual Presses 3 times/week I 6 Operators I 1 I 1 Operator I Shipper unit 2 Baskets - Strip 50 to 70 20 to 40 1 Basket - Pieces 2 1 Day Racks Bins Hours to Run: 200-600pcs/min C/T = 2 Hr Strips 12 Weeks 100 to 125 C/T = .003 min/pc. Max C/T =10 hr Auto DEGREASE/PACK Coils C/O = 4.5 hrs. Visual Status 1000/Basket Min 200/Basket C/O = None Rel. = 80% Bagging LOOP of Presses Standard Time for Setup = 30 Min Pcs. (PACEMAKER) Setup Available: 590 min/shift 25,000 Layout is Adjustment Time Rel. = 90% Pcs/Basket a Problem C/O = None Rel. =Reduce 95% 16.75 Days Lead Time 10 Days Sankyo 2 Days 1 Day to 12 Weeks Cycle Time + coil lead time Coil Feeds 1.5day(avg per average order 2.25 Days 3.75 Days Value ) File: Omega VSM Current Loop) May 24 Added Time
  • 38. Value Stream Map (Future State) Stamping Orders With No Plating or Heat Treatment Projected requirements Production Control Phosphor Randomly Placed Beryllium Using Vista Software Module Brass Bronze Order as Needed Orders (Various Sizes) Various Copper (40%) (30%) Customers (30%) 4 Weeks LT 10 Week LT 6 Mos. LT 6 Weeks Reroll In Stock- 1 Week SUPPLIER LOOP PRODUCTION Average of Daily Order 1 mm pcs per day CONTROL in Various Sizes Orders (2 to 13) LOOP Every Week Every Week Every Week Daily Shipments Coil Batch Shipping Bin Coils Degreasing Packing Shipper Stamping PRESS LOOP New Ultrasonic Cleaners DEGREASE/PACK LOOP Finished Goods (PACEMAKER) 1 Day 1 Day 1 Day 5 Days Lead Time 1day and Coil Lead Time 1 Day File: Omega VSM Future Loop) May 24
  • 39. VSM IMPLEMENTAION FUTURE STATE IMPLEMENTATION PLAN & SCHEDULE SEQUENCE COMPLETION LOOP OBJECTIVES PROJECTS (PRIORITY) DATE (Mon./Yr) Supplier Loop * Develop pull system with suppliers 1. Review Weekly/Monthly Requirements With Suppliers 1 Sep-01 * Increase number of deliveries per week 2. Revise current blanket orders 1 Sep-01 * Reduce raw material inventory to match 3. Send daily consumption data to suppliers 2 Nov-01 4. Setup point of use raw material areas 1 Oct-01 Production Control Loop * Implement daily shipping schedule 1. Single point to schedule( shipping). See pacemaker loop. 1 Oct-01 * Work to schedule manufacturing based on shipping requirements 2. Daily production schedule by Operations Manager 1 Oct-01 3. Implement kanban loops as shown on future state VSM 2 Nov-01 4. Use MRP for materials forecasting 1 Oct-01 Element * Reduce lead time 1. Eliminate WIP between winding & annealing 1 Sep-01 Loop * Develop continuous flow 2. Implement supermarket for element prep and kanbans 1 Oct-01 * Develop pull system with element prep supermarket 3. Crosstrain element assembly operations 2 Dec-01 Module Assembly Loop * Reduce cycle time 1. Analyze process variance in environmental test 1 Oct-01 * Reduce variation in cycle time in testing 2. Analyze process variance in module drydown 1 Oct-01 * Reduce variation in cycle time in drydown 3. Implement supermarket and kanbans for cell installation 1 Oct-01 * Establish pull system with supermarket from cell installation 4. Crosstrain module assembly operations 2 Dec-01 * Reduce use of carriers 5. Analyze need for carriers vs. subassembly units 1 Sep-01 6. Analyze material handling reductions and layout improvements for element prep operations 3 Jan-02 7. Set up leak tested subassembly units in supermarket for final assembly 1 Oct-01 Pacemaker Loop * Reduce cycle time 1. Improve assembly methods in final mechancial assembly 2 Dec-01 * Establish pull system with supermarket from 2. Review design for manufacturing assembly improvements for (Unit Assembly/Shipping Loop) shipping tubing assembly 3 Feb-02 3. Consolidate inspection with final mechanical assembly or shipping/packing 2 Nov-01 4. Set up raw material suppermarket for final assembly 1 Oct-01 5. Crosstrain unit assembly operations 2 Dec-01 NOTES: 1. Conduct kanban and point of use training for plant personnel in 2001. 2. Priotities as follows: #1(Complete in 2 months), #2(Complete in 4 months), #3(Complete in 6 months) 3. Consider use of teams for implementation after training.
  • 40. The VSM Cycle Assessment Recommended Set Up (VSM) Solutions Layout Cells Continuous Visual Improvement Automation Implementation Information DO IT! Plan Systems
  • 41. Other VSM Applications Office Improvements Long Range Planning