1. Manufacturing

2. Process planning in manufacturing flow
Value Stream
Supply | Inventory
Demand | Forecast
Budget
Schedule
Resources
Constraints
Supply Base
Lead Time
Critical Path
Performance to Plan
Capital & expenses
Overhead
Stakeholder Management
Float Planning
Flow Network
Requirements
Economic Order Quantity

3. Value Stream Critical Path Economic Order Quantity Lead Time
The how, what, when, who & where required to meet customer requirements
The shortest duration (schedule) of the Value Stream
The Amount of Something to order to Minimize Costs
The amount of Notice a Supplier needs to Provide you with their Product

4. Typical Network Value Stream for 3 Tier Build Sequence
Fabrication
Components
Final Assembly 55 99 55 75 70 70 45 45 1 43 51 51 43
Components
43: Component
45: Component
70: Sub-component
51: Sub-component
55: Component
Components
70: Fabrication
75: Sub-Fabrication
99:Sub-Fabrication
Final Assembly
55: Assembly A
45: Assembly B
43: Assembly C
Typical Network Value Stream for 3 Tier Build Sequence

5. Pancake Model Questions:
Approximately how long does it take to make a pancake?
What is the most expensive part of the process?
Who burdens the most cost?
The most risk?

6. Flour Recipe: 1 part 99 + .001 part 75 = 35 lbs of Flour
Fabrication
Components
70: Flour
99: Grain
75: Bleaching Agent 99 75 70
90 Day LT
Grain (99)
90 Day Lead Time
$10 per bushel (32 lbs)
Bleaching Agent (75)
30 Day Lead Time
$2800 per Metric Ton
Flour
$3.99 for 5 lb. Bag
Flour Recipe: 1 part part 75 = 35 lbs of Flour

7. Fabrication Components 1 Day LT Flour $3.99 for 5 lbs Inventory70 70 45 51
1 Day LT
Flour
$3.99 for 5 lbs
Inventory
2.5 lbs of FLour
30 lbs Grain
1,998 lbs of Bleaching Agent
Inventory Carrying Cost: $2804
Pancake Batter
70: Flour
51: Pancake Flavor
Inventory
40 oz. of Pancake Batter
2.5 lbs of 70
.5 lbs of 51
Inventory Carrying Cost: $2.00

8. Components Final Assembly 20 Minutes Pancake Batter 1: Pancakes55 45 45 1 43
20 Minutes
Pancake Batter
1: Pancakes
45: Pancake Batter
55: Eggs
43: Milk
Inventory:
1 40 oz Box of Pancake Batter
12 Eggs
½ G of Milk
Inventory Carrying Cost: $12.89

9. Shortest Duration to 1st Batch of Pancakes
Fabrication
Components
Final Assembly 55 99 75 70 70 45 45 1 43 51
90 Day LT
1 Day LT
20 Minutes
91 Days & 20 Minutes
Shortest Duration to 1st Batch of Pancakes

10. Critical Path to 1st Batch of Pancakes
Fabrication
Components
Final Assembly 55 99 75 70 70 45 45 1 43 51
90 Day LT
1 Day LT
20 Minutes
Components
70: Flour
99: Grain
90 Days
75: Bleaching Agent
30 Days
Components
45: Pancake Batter
70: Flour
51: Pancake Flavor
55: Eggs
43: Milk
1: Pancake
45: Pancake Batter
55: Eggs
43: Milk
Critical Path to 1st Batch of Pancakes

11. Economic Order Quantity to 1st Batch of Pancakes
Fabrication
Components
Final Assembly 55 99 75 70 70 45 45 1 43 51
90 Day LT
1 Day LT
20 Minutes
500 T: Flour
600 T: Grain
1 T: Bleaching Agent
QTY 5000: 40 oz. Boxes of Pancake Batter
20 T: Flour
4 T: Pancake Flavor
QTY 1: 40 oz. Box of Pancakes
12 Eggs
½ G of Milk
Inventory Carrying Cost: $415,300
Inventory Carrying Cost: $54,300
Inventory Carrying Cost: $12.89
Economic Order Quantity to 1st Batch of Pancakes

12. Value Stream Critical Path Economic Order Quantity Lead Time
Fabrication
Components
Final Assembly 55 99 55 75 70 70 49 45 1 42 51 43
Components
43: Battery
49: Circuit Board
70: CPU
51: Software
55: Aluminum Billet
Components
70: CPU
75: Ionization
99: Silicon Wafers
Cell Phone
55: Chassis
42: Provisioned Circuit Board
45: Touch Screen
Value Stream Critical Path Economic Order Quantity Lead Time
Industry Application of Value Stream Mapping

13. Pancake Model Questions:
Approximately how long does it take to make a pancake?
What is the most expensive part of the process?
Who burdens the most cost?
The most risk?

14. Questions