Value Stream Mapping GEOP 4316

Outline Current state to the future state map Introduction to VSM Current state map Current state to the future state map Future state map Common of Future State Maps Implementation

Intro: What is / why VSM? A lean manufacturing technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer. At Toyota, where the technique originated, it is known as "material and information flow mapping. Supports the development of an understanding of an organization’s processes at their broadest levels; instead of a focus on the improvement of the individual work units (helps determine where to focus). http://en.wikipedia.org/wiki/Value_stream_mapping

Intro: More on what is VSM? Value Stream is all the actions (both value added and non-value added) currently required to bring a product through the main flows Value Stream Mapping means walking and drawing the processing steps (material & information) for one product family from door-to-door in your plant Value Stream Perspective means: Working on the “big picture”, not just individual processes Improving the whole, not just optimizing the parts Primary type: Raw Materials to Customer - Manufacturing

Intro: Elements of VSM Directly observing flows of information and physical goods for a product family as they now occur. Summarizing these flows visually. Follow a product or service from end to start, and draw a visual representation of every process in the material & information flow. Envisioning future states that leave out wasted steps while introducing smooth flow and leveled pull.

Intro: Elements of VSM Takt time Simple concept (but in practice …) Takt time = work time available / customer demand. 420 minutes / 300 tables = 1.4 minutes / tablet. Thus every process should be able to produce to the takt time.

Current State Map The current state map describes the actual flow of materials and information. It will include Processes (production capacity, process time, yield) Inventory/ wait points (average wait time, average inventory in units, method used to replenish it) Movements Information flows (how production schedules are communicated to production areas, frequency of the information flows)

Current State Map Key recommendations Let’s look at the cycles Walk the floor, observe and collect data. Draw by hand Start at the customer and go backwards on the flow Key things to look for: Information Flow from the Customer Forecasts Firm order Instructions to produce (internal) Requests from materials from suppliers Movement of material Inventory Let’s look at the cycles

Current State Map Customer cycle How is the interaction between the customer and the system (how are customer orders placed?) Frequency, modes of transportation, FG inventory levels, service levels and other metrics. Is there safety stock? how is the amount determined? is it distinguishable from regular stocks?

Current State Map Internal cycle Define plant level processes Data box information (what will appear in the VSM) Takt Time, # of Operators, C/O Time, Work Unit Cycle Time, Total Work Content, Uptime %, # of Shifts, Available Operating Time What Initiates Production? How do the production work units know when and what to produce?

Current State Map Supplier cycle Similar in principle to the customer cycle, but here the organization has the “control” How is the interaction between the suppliers and the system (how are RM orders placed?) Frequency, modes of transportation, RM inventory levels, service levels and other metrics. De we keep RM safety stock? how is the amount determined? is it distinguishable from regular stocks?

Current State Map - Examples fsm Step by step how it was made: http://www.strategosinc.com/present_vsm.htm

Current State Map - Examples http://www.technicalchange.com/value-stream-mapping.html

Current State Map - Examples http://www.gembapantarei.com/2008/07/

Current State Map - Examples

Current State Map - Examples

Current State Map - Examples http://www.value-stream-mapping.co.uk/

Current state  Future state map Get process to make only what the next process needs when it needs it Link all processes-from the final customer back to raw material Produce to your Takt time Develop continuous flow wherever possible Producing one piece at a time Start with pull/FIFO to eliminate variability in the lead time Use supermarkets to control production where continuous flow does not extend upstream Some processes are far away and shipping one piece at a time is not realistic

Current state  Future state map Try to send the customer schedule to only one production process Schedule one point in your door-to-door value stream, this point is called pacemaker process How you control production at this process sets the pace for all the upstream processes. Distribute the production of different products evenly over time at the pacemaker process Leveling the product mix means distributing the production of different products evenly over a time period. More leveling, more able to respond to customer requirements

Future State Map Step by step how it was made: http://www.strategosinc.com/present_vsm.htm

Related CSM

Future State Map http://www.technicalchange.com/value-stream-mapping.html

Related CSM

Future State Map http://www.gembapantarei.com/2008/07/

Related CSM

Common of Future State Maps Using pull. More on how Kanbans work later. “Production” KANBAN “Withdrawal” KANBAN Supplying Process Customer Process Product Product Supermarket

Common of Future State Maps Load leveling Goal of leveling the load is planning to work at a consistent pace in production making a mix of parts so that the equipment and people are working at the same pace without stopping or being stressed. Because of this production is not rushed for deliveries giving production folks enough time to implement standard work and avoid errors. http://sybeq.blogspot.com/2010/12/how-to-level-load-in-production.html

Other improvements identified in Future State maps Supplier development Identify key suppliers Reduce container size Increase delivery frequency Kanbans