1. Six Sigma Quality Engineering
Week 10
Lean Enterprise
Continuous Improvements (Kaizen)

2. What is a Kaizen Blitz?
A Kaizen Blitz is a cross functional multi-level team of 5 to 10 members working intensely for 10 to 14 hours a day, to rapidly develop, test and refine solutions to problems and leave a new solution in place in just a few days. They don’t plan, they don’t propose, they do.
A Kaizen Blitz, used in conjunction with the Toyota Production System (TPS) and current Lean Manufacturing principles, can serve as a catalyst for the initial implementation of a plant wide Lean Manufacturing initiative.
This focus on immediate change is what sets Kaizen activity apart from other improvement tools.

3. Cycle of an Event 3 2 4 1 5 12 6 11 7 10 8 9 Schedule the Event
Recognize the Need for Change
Select System / Process to Optimize 3 2 4
Our Way of Life 1 5
Develop the Objectives
Formalize the Change 12
Process Owner: Review & Explains Objectives 6
Process Owner:
Accepts Change 11 7
Learning the Tools
5S, Process Flow
TAKT / Cycle Time 10 8 9
Make the Change
Capture the Details
Data Gathering
Detail Analysis
Set Goals,
Make a Plan

4. Define the problem Anywhere Work is being done…
Where do we start first?
Define the problem
Anywhere Work is being done…
Waste is being generated
THE CUSTOMER DOES NOT PAY FOR WASTE
Module 0013

5. How Material Spends Time In The Factory
Better
Large
opportunity
80's
90's
Value
Added 4%
Non-
Non-
Value
Added
Value
Value
16%
Added
Added
96%
84%
We can make
this better
but it is not
our focus

6. How Paper Spends Time In An Office Process
We will also focus
on front end
throughput
opportunities
VA 18%
NVA 82%
ref: Otis - NAD, 1991
Module 0013

7. Direct Labor As a Percent of Total Cost.
This is not a
labor reduction
program
6 %
Direct Labor As a Percent of Total Cost.
Module 0013

8. The New Equation Old View Cost + Profit = Sales Price Value
Supplier Cost Increases
Old View
Sales
Price
Sales
Price
Mfg.
Cost
Cost + Profit = Sales Price
Value
Profit
Supplier Cost Increases
New Reality
Sales
Price
Either way
Mfg. Costs have
to decrease to
maintain or
increase profits
Mfg.
Cost
Profit = Sales Price - Cost

9. Process Layout And Flow Mass Production System
Lay it out
Raw Material
Receiving
Inspection
Store
WIP
WIP
WIP
Form
Clean
Trim
WIP
OP1
WIP
WIP
OP2
WIP
WIP
OP3
WIP
Punch
Clean
Heat Treat
WIP
OP4
WIP
WIP
OP5
WIP
WIP
OP6
WIP
Inspection
Store
WIP
Module 0013

10. Separating The Value Added From Non-Value Added
Receive + Inspect + Move + Store + Count + Move
Anneal + Move + Wheelabrate + Inspect + Move
Mill to Face + Inspect + Move + Wash + Move + Store + Move
Turn Stem I.D. & O.D. + Inspect + Move + Wash + Move + Store + Move
Grind Top Face + Inspect + Move + Wash + Move + Store + Move
Drill C’Bore, Through Hole & Venthole + Inspect + Move + Deburr Venthole + Move
Mill Clearance + Inspect + Move + Wash + Degrease + Move
Carburize + Move
Anneal + Move + Degrease + Inspect + Move + Wash
Hone Stem I.D. + Inspect + Move + Wash + Move + Store + Move
Mill Nut Surface + Inspect + Move + Wash + Move
Measure it
Module 0013

11. Separating The Value Added From Non-Value Added
1. Why?
REDRILL & TAP + Move + Wash + Degrease + Move
INSTALL SCREWS + Move
HARDEN + Move + Degrease + Move
REMOVE SCREWS + Move
TEMPER + Move + Wheelabrate + Inspect + Move
HONE STEM I.D. + Inspect + Move + Wash + Move
FINISH GRIND TOP FACE + Inspect + Move + Wash + Move
Inspect "A" Dimensions + Move
Inspect "B" Dimensions + Move + Select Fatigue Test Samples + Store + Move
Audit + Move (If quality Audit is Acceptable) (Rejected - Rework) + Store
Receive in Finish Stock Room + Count + Store + Issue + Move
BAG + Inspect (If Acceptable) + Move
SHIPPING
2. Why?
3. Why?
4.Why?
5.Why?
SUMMARY: 17 VALUE ADDED ELEMENTS / 93 NON-VALUE ADDED ELEMENTS
LEAD TIME: 345 HOURS/23 HOURS DAY = 15 DAYS
Module 0013

12. Crosshead Cell Value Added Summary
Small change
The Lean focus
Module 0013

13. Process Flow Summary
Sitting in a rack or in queue
Is lead-time important?…which should you attack first?
Typical
U.S. Average
Process Time
was 4%
Adding value

14. Process Layout Flow And Mass Production Process
This could also be office structure process islands
HEAT
TREAT
CLEANING
RAW
MATERIALS TO
FINISHED
STORES
TRIMMING
INSPECTION
RAW
MATERIAL
STORES
CUTTING
PUNCHING
FORMING
Module 0013

15. Anywhere work is being done, waste is being generated.
The General Concept
Anywhere work is being done, waste is being generated.
Critical Ingredients Of Lean Are:
1. Specify VALUE From your customer’s perspective, not yours. What does the customer want? What are they willing to pay for?
2. Identify the VALUE STREAM and Eliminate Waste The entire value delivery process from inquiry to receipt of cash.
3. Make value FLOW - Ideally One-Piece-At-A-Time
4. Let the customer PULL value through the process. Not suppliers or machine technology
5. Pursue PERFECTION
Module 0013

16. Lean Thinking-Defined
Total Elimination of….
Human activity that absorbs resources but creates no value.
Mistakes that require rework.
Production of items no one wants so inventory piles up.
Processing steps which aren’t actually needed.
Movement of employees/goods without any purpose.
Downstream people/processes waiting for upstream activity.
Goods/services which do not meet the needs of the customer
….Waste
Module 0013

17. Eliminate Waste Out Of Total Activities
Module 0013

18. The Fundamental Concept
Lean Manufacturing
The Fundamental Concept
Make What is needed
When it is needed
In the Amount Needed
Module 0013

19. New Competitive Realities
As Time is Compressed, Quality, Productivity and Cost are Improved
You need more than cost reductions to steal customers away from your competition. You cannot cost reduce yourself to prosperity, you need to grow.
Module 0013

20. Lean Manufacturing Lean Non-Lean 7 Types of Waste Applies to all
Is a Methodology for the Systematic Elimination of Waste
Non-Lean
Rework
7 Types of Waste
Overproduction
Waiting
Transportation
Unnecessary Processing
Inventory
Unnecessary Motion
Correction
+ A Person
Stores
Applies to all
business processes!
Module 0013

21. Waste of Overproduction
THE PRIMARY WASTE
To produce more parts than necessary or at a rate faster than required.
(Both contribute to excess inventory and waste time that could be spent making required product.)
Module 0013

22. Waste Of Correction
To correct or repair a defect in materials or parts adds unnecessary costs. (rework)
Module 0013

23. Waste Of Processing
To process unnecessary work which does not advance or improve the quality of the product.
(performing multiple transactions to receive material, transacting parts into inventory... then take them out to load machines.)
Module 0013

24. Waste Of Inventory
Inventory is a drain on an organization’s overhead. The greater the inventory, the higher the overhead costs become.
(With excess inventory, we cover-up unacceptable change over times, excessive downtime, and operator inefficiency)
Module 0013

25. (excessive walking distance between operations)
Waste Of Motion
Any movement of people or machinery which does not contribute added value to the product.
(excessive walking distance between operations)
Module 0013

26. Idle time between operations or events.
Waste Of Waiting
Idle time between operations or events.
(operator waiting for machine to finish cycling or machine waiting for operator to load new parts)
Module 0013

27. Why Focus On Human Instead Of Equipment?
Equipment is a sunk cost; it depreciates over time, wears out or becomes obsolete.
The Operator is an ongoing resource that should appreciate over time. They gain skill and knowledge.
Your competition can easily match you machine for machine
Your competitive edge is in how you deploy your value adding people
Module 0013

28. How does lean specifically attack the problem?
Module 0013

29. Tools Of The Lean Enterprise
*Visual Controls
*Process Mapping
*Supplier Certification
*Multi-skills training
*Kanban
*Cell layout(U shape)
*Autonomation
*POU inventory
*Takt time
*Right sizing
*Curtain
*5 Why’s
*Time observations
*Right Sizing
*1 part pull
*Single minute exchange of die (SMED)
*Line stop
*% loading
*Mistake proofing
*Normal/Abnormal
*Quality at source
*Standard Work
*Signal lights
*Value adding analysis
*TPM
Module 0013

30. 5-S Workplace Organization Steps
1.SORT Clearly distinguish what is needed and what is not
Remove what does not support the least waste way
2.STRAIGHTEN Organize the way things are kept, making it easier
for anyone to find & return items to their proper
location in the sequence used
3. SHINE Keep things clean-floor, machines, desks, files
equipment-neat & tidy
4. STANDARDIZE Maintain & improve the first 3S’s
5. SUSTAIN Achieve the discipline / habit of properly
maintaining the correct procedures

31. Lean Manufacturing
Involves the precise definition of Normal in such a way that the Abnormal is exposed in Real-Time and can be eliminated.
The result is a Continuous Improvement Environment
Module 0013

32. Waste Based on Observation: Normal vs. Abnormal Identify The Waste
Value-Added Non Value-Added
Eliminate
Waste
Kaizen Eliminate
Module 0013

33. Don’t Forget
It is the not the person doing the work that is ugly. It is the Waste that is ugly.
We are not stripping people of their dignity.
We are attacking Waste
Waste
Monster
Module 0013

34. One Piece Flow Model PART TRIMMING CLEANING PUNCHING FORMING
Fixture
CLEANING
Fixture
PUNCHING
Fixture
FORMING
Fixture
HEAT TREAT
Fixture
CUTTING
Fixture
FINISHED
STORES
Fixture
RAW
MATERIALS
Fixture
Module 0013
PART

35. Physical Layout Supports one piece flow
Supports Standard Work In Process
Supports Standard Work
Supports visual control
Each kaizen reduces the cell size Kaizen after Kaizen after Kaizen
Module 0013

36. Visual Controls
The use of signals, lights, measurements, diagrams, charts & signs to :
Clearly define the normal or desired condition
Expose the abnormal undesired condition - real time

37. Material Replenishment System
How they work
This same shelf with additional Visual Controls becomes more meaningful
Standard Work may be :
Green - normal
Yellow - reorder point passed
Red - replenishment past due, contact supplier immediately
Blue - abnormal, investigate - consumption changed, supplier overshipped
Cards
Module 0013

38. Material Replenishment System
1. Ensures
the right thing
( Instrument, supply, etc … )
in the right quantity
at the right time
to the right location
in the right orientation
2. Simple signs used to trigger material replenishment according to usage at Takt time cadence
Need : valve - 636/11
Quantity : 2
Required : 10am
Where : Cell
Module 0013

39. It tells us how to make one
Standard Work
There can be no improvement … no Kaizen … without the basis of Standard Work
Standard Work details the motion of the operator
& the process sequence in producing a part
It is the statement of the least waste way of production through the best combination of people & equipment, the least amount of Work In Process possible, showing where to check for quality & where there are safety issues
It provides a routine for consistency of an operation & a basis for improvement
Not
machine
It tells us how to make one
to our TAKT time
Module 0013

40. Single Minute Exchange Of Die
S.M.E.D.
A process for dramatically, logically & methodically reducing set up or changeover time
To enable the significant reduction of lot sizes & the approach towards single piece flow
Supports mixed model, daily production
The goal is to change a set up in one TAKT time
Large machine centers set ups must be done during machine cycle time
Level loaded demand (1A,1B,1A,1B)
Module 0013
In other words… PROFESSIONALISM

41. Takt Time TAKT Time = = T.A. Time Available S.U. Sold Units
From the German word for “meter”
The time which reflects the rate at which customers buy one unit
We can work
with this
T.A Time Available
S.U Sold Units
TAKT Time = =
It is what it is
Not much you
can do about
this
Module 0013

42. 5 Why’s Root Cause 1. Why did the system fail? A: The motor burned out
2. Why did the motor burn out?
A: The shaft seized
3. Why did the shaft seize?
A: There was no lubrication
4. Why was there no lubrication?
A: The line filter was clogged
5. Why was the line filter clogged?
A: It was the wrong sized mesh!
Root Cause
Module 0013

43. periods,breaks, second shift, weekends, holidays etc.)
TPM
The lack of TPM results in Breakdowns
Breakdowns are a result of undetected or ignored equipment deterioration
75% of all equipment deterioration can be detected by a trained operator
The remaining 25% can be detected by trained maintenance technicians performing preventative & predictive maintenance …
… therefore all breakdowns can be prevented
Do a careful analysis of when the machine does not need to be run( lunch
periods,breaks, second shift, weekends, holidays etc.)
75% of all machine downtime is due to dirt and lack of proper lubrication.
Module 0013

44. Process Mapping A visual representation of a process that can include:
process steps
sequence
duration
distance
A process map can be constructed at a “high level - broad process steps
…or at a lower level - with process detail
You have to do more than just ask someone how long an operation takes. Generally, they will not include walking and waiting, and will give highly inaccurate set up times.

45. One Part Pull The opposite of batch production
Processing product one at a time at the unit level at which the product is sold
Lean Manufacturing delivers its greatest improvements, maximizes its problem exposure, and enables constant top quality when one part pull is relentlessly applied
Exposes the problems (Makes it ugly). It is hard to hide problems in the system with no buffer stock
Repairs are made on 1 part rather than the entire batch
Module 0013

46. Work to achieve defect prevention
Mistake Proofing
Mistake proofing goal - Zero defects
Mistake Proofing is a method that uses simple, low cost devices to check each part at each operation to prevent mistakes from occurring
1. Built into product design
2. Built into process
3. Automatic check system
Work to achieve defect prevention
not defect detection
Module 0013

47. Right Sizing Must first improve the operation, then improve the
Only the right amount of resources …
equipment
space
work surface
material
… to support one piece flow
Must first improve the operation, then improve the
equipment. You do not want to size the equipment to
accommodate a wasteful cell
Module 0013

48. Right Sizing
Buy only the minimum amount of equipment, preferably built in house
Do not always think that expensive, high performance machines are always the best, but consider a consistency of the whole production
First “improve operation” and afterwards carry out “improvement of equipment”, otherwise it might cause the mechanization of waste.
Module 0013

49. Multi-Skilled Workers
The leanest process may require workers to provide effort in a variety of tasks
Rigid job classifications & definitions are in direct conflict with teamwork & reduce flexibility to meet customer needs
Multi skilled workers are capable of maximizing teamwork & performance
Especially important to 1 part flow in an
assembly operation
Module 0013

50. Curtain Operation A Curtain Operation :
Is often out of the cell/build flow area
Does not lend itself to one piece flow
Could be a “batch type” operation such as heat treat or cure
Is often a monument
A Curtain Operation done effectively enables one piece flow
Module 0013

51. h Curtain Operation Inbound Outbound The rabbit chase Curtain
Module 0013

52. Supplier Certification
A tool designed to make suppliers take the full responsibility for the quality of their product, such that incoming inspection by the purchasing firm may be eliminated
Suppliers with proven track records of excellent performance are certified & expected to guarantee defect - free products
Requires a good deal of homework done
on your specifications and drawings
to make sure you are not the problem.
Module 0013

53. Design For Manufacturing And Assembly
A conscious process of making design decisions only after fully evaluating the manufacturing processes, tools, quality control measures & equipment impacts
Module 0013

54. Quality Function Deployment
A technique where product performance features and the characteristics which deliver them are determined by the Voice of the Customer & paid heed to by the producer ( by listening & acting )
The quality responsibility is then deployed throughout the organization by tying compliance activities directly to the fulfillment of these customer requirements
Module 0013

55. Standard Work
Standard work is a tool that defines the interaction of the operator and machine in producing a part.
It details the motion of the operator and the sequence of the machine. It provides a routine for consistency of an operation and a basis of improvement.
Module 0013

56. Time Observation One of the critical tools for documenting reality
One time observation form per operator
Two observers for each operator.
One operates time piece
One records the information
Focus on the operator, not part flow or machine cycle time
Module 0013

57. Standard Work Sheet 5 40” 7 3 2 1 4 6 L210 M110 Raw Material L310
Scope of
From
Date prepared
Operations To
or revised:
Quality
Safety
Standard Work-
# of Pieces of Std.
TAKT
Cycle
Operator
Check
Precaution
in-Process
Work-in-Process
Time
Number
Master Cylinder
Pick up raw material
Finished product 5
40”
Finished Product
Raw Material
L210
T420
L310
M110
Inspect 7
3-5-97 3 2 1 4 6
Module 0013

58. STANDARD WORK COMBINATION SHEET
OPERATION NAME
OPERATION TIME (IN SECONDS)
STANDARD WORK COMBINATION SHEET
MODEL NUMBER AND NAME
WORK SEQUENCE
DATE PREPARED
DEPT.
QUOTA PER SHIFT
TAKT TIME
OPERATOR NUMBER
Manual
Automatic
Walking
wwwwww 12
1/22/98
690
Spec. Steel
Fin. Grind O.D.
123
40”
STEP
TIME
NUMBER
Man.
Auto.
Walk 5 10 15 20 25 30 35 TT 45 50
p.u. & blow off part 3 -- -- 1 40 2
unload, load, cycle start 5 23 -- 3
gage 2 dia. - go/no go 3 -- 2 4
load drill hopper 3 15 2
TOTALS
WAITING 22 14 38 4

59. Standard Work Sheet
In the case where the cycle time does not come up to the Takt Time...
Ideally, the Cycle Time should equal the Takt Time TT TT
then not enough work has been assigned
CT =TT
Module 0013

60. Tools To Document Reality
Time Observation Sheet
Standard Work Sheets
Standard Work Combination Sheet
Percent Loading Chart
Process Capacity
5S Worksheet
Module 0013

61. Lean Manufacturing
Involves the precise definition of Normal in such a way that the Abnormal is exposed in Real Time and can be eliminated.
The result is a Continuous Improvement Environment
Module 0013

62. waste Make It Ugly Observation Time Studies Process Mapping Flow
Takt Time
Analysis
Visual
Controls
waste
Module 0013

63. Total Elimination of Waste
The Goal
Total Elimination of Waste
Module 0013

64. Typical Lean Activities Initiated At A Kaizen Event
Cell layout
The 5’s
Right sizing
Signal lights
POU
Time observations
Kanbans
Value adding analysis
Takt time
Visual controls
1 part pull systems
Curtain
Process mapping
Standard work
Module 0013

65. Two Steps Forward, One Step Back
Implementation errors will occur, these should be rewarded if done for the right reason
Anchor Dragging is unacceptable
Steady State in our industry, or any other, will lead to failure
“It’s not OK to do nothing to improve our operation on the grounds that the risk of failure, (step backward) is
too high”
Two steps forward, one step back is OK No steps forward is not
Bad news is
good news
Management
must monitor

66. To Lean Implementation One piece flow

67. Step One Choose Your Project Well High Probability For Success
Good Visibility
Short In Duration
Requires Several “Lean Tools”
Is Measurable

68. Step Two Choose Your Team Well Open Minded And Enthusiastic
Select People Who Work With The Product
Operators
Maintenance People
Supervisors
ME/IE
Planners

69. Step Three Train! Train! Train! Overview Of Six Sigma
Continuous Improvement
Single Piece Build (Use The “Stockless Production” Video Made By Hewlett Packard
Use Your Black Belts

70. Step Four Calculate Takt Time This Is The Customers Drum Beat
Takt Time = Units Purchased Per Day Divided Into Actual Time Available In A Shift
Example: 27,000 Seconds / 20 Units = 1350 Seconds Per Unit Or (1) Unit Every 22.5 Minutes

71. The time (pace) required to produce a
Takt Time
The time (pace) required to produce a
product based on customer demand.
Time Available
Customer Demand
Often expressed as:
TAKT TIME =
Example: Elevator Manufacturer
-Customer Demand: 50 Hydraulic Elevators / Week
-Daily Demand: 10 Hydraulic Elevators
-Time Available: 435 Minutes / Day (480 min less cleanup, breaks)
435 / 10 = 43.5 Minutes per elevator = TAKT TIME
This pace must be maintained in order to satisfy customer demand!

72. The time for an operator
Cycle Time
The time for an operator
to do a prescribed task
and return to his/her
original stance.

73. The amount of time it takes to convert raw materials into
Lead Time
The amount of time it takes
to convert raw materials into
finished goods (External Customer)
or to move goods from one part
of the process to another
(Internal Customer)

74. Lead Time Cycle Time Cycle Time vs. Lead Time Task 1 Task 2 Task 34
Task 5
MOVE
WAIT
SET-UP
RUN
Cycle Time

75. Can a process have a 1 hour TAKT Time and a 6 month Lead Time?
Takt Time vs. Lead Time
>TAKT Time is a rate of demand
>Lead Time is how long the whole process takes
>They are NOT related!
Lead Time
1 Unit / Minute
TAKT Time
PROCESS
WIP
Can a process have a 1 hour TAKT Time and a 6 month Lead Time?

76. Step Five Study The Project Team Meetings To Discuss The Project
Set Objectives
25% Improvement In Through Put
50% Reduction In Floor Space
65% Reduction In Inventory
Meeting The Takt Time
Establish The Metrics

77. Batch vs. One-Piece Flow
(Process oriented layout with Lot Size = 5)
Processing Time = 1 Minute / Unit
Process Flow A B C D 5 10 15 20
TIME ELAPSED (MINUTES)
Manufacturing Lead Time
NOTE: Typically, the distances between process is long in a process oriented layout, making difficult to transfer units one-by-one.

78. Batch vs. One-Piece Flow
(Process oriented layout with Lot Size = 1)
Processing Time = 1 Minute / Unit
Process Flow A B C D 1 2 3 4
TIME ELAPSED (MINUTES)
Add the Balance of Units (4 x 1’/Unit) 8
Manufacturing Lead Time

79. Boeing 737 Lean Cell

80. One 737 airplane every 9 days
Boeing 737 Lean Cell
One 737 airplane every 9 days

81. Value Stream Analysis

82. What you can Expect
“Value Stream Analysis Kaizen Training” contains what you need to know to get the job done, not everything you need to know to be an expert.
Part 1
Lean concepts and terminology
Part 2
The process by which we create future states

83. First were did Lean come from?
F. Taylor championed time and motion studies for Henry Ford. Employees were trained to do simple and narrow tasks (and, many businesses still do today).
While E. Whitney was perfecting the concept of standard parts for interchangeability during service
Henry Ford combined these two systems to define predictable manufacturing for his era. These were times of mass markets, huge production runs, infrequent changes.
Toyota learned from this and expanded upon it with the kanban system noticed during a visit to a U.S. grocery store to help them produce cars JIT because of the great cost of raw materials in Japan Then the U.S. took notice during the oil shock and the world took notice soon afterwards

84. Lean Thinking Value in the Eyes of the Customer The Value Stream Flow
Pull of the Customer
Perfection

85. Value Added
Value is added any time we physically change our product towards what the customer is buying
If we are not adding value, we are adding cost or waste
Lean Manufacturing drives the systematic elimination of waste
Value-Added Time : Minutes
Time in Plant : Weeks
ORDER
CASH
KEY QUESTION – Are my customers willing to pay for this ????

86. Value Added vs. Non-Value Added
Typically 95% of Total Lead Time is Non-Value Added!!!
Value added 5%
Non-value added
LEAN = ELIMINATING THE 7 WASTES
Overproduction
Waiting
Transportation
Non-value added processing
Excess inventory
Excess motion
Defects

87. 7 ELIMINATE Wastes OVERPRODUCTION WAITING TRANSPORTATION DEFECTS
PROCESSING
DEFECTS
INVENTORY
MOTION

88. 7 Basic Types of Waste (Toyota)
Overproduction – producing more than what is demanded by the customer
Inventory – Storing more than the absolute minimum needed
Transportation – the unnecessary movement of materials
Waiting – waiting for the next process step
Excess processing – due to poor tool or product design
Wasted motion – unnecessary reaching, walking, looking for parts, tools, prints, etc
Defects – scrap and rework

89. What is Flow ? TRADITIONAL CONTINUOUS FLOW
Producing and moving one item at a time (or a small and consistent batch of items) through a sequence of process steps as continuously as possible, with each step making just what is requested by the next step.
We usually analyze part of a total value stream. The part that we have most control over. But we must draw the entire picture the whole flow helps us account for all of the major cost and time elements. It show how material and information flows interact and sometimes conflict. And most importantly, keeps us focused on our primary objective, to satisfy the end customer.
Once we have the big picture of the whole value stream, we can focus on value as defined in the eyes of the customer,
Items flow through a value stream:
In the manufacturing industry…
In the service industry…..
In the admin. Such as in HR…we have internal customers, all of you are HR customers..
The point is there are many immediate customers that are part of a value stream, we create value through adding value to each item as it goes through the value stream.
TRADITIONAL
CONTINUOUS FLOW
Lean Lexicon Version 1 p9

90. Continuous Flow – More Efficient & Faster
Traditional Batch Layout
Continuous Flow Layout

91. Supermarket Pull System
“Production” KANBAN
“Withdrawal” KANBAN
product
product
Mike Rother Learning to See
SUPERMARKET
CUSTOMER PROCESS goes to supermarket and withdraws what it needs when it needs it.
SUPPLYING PROCESS produces to replenish what was withdrawn.
PURPOSE: Controls production at supplying process without trying to schedule. Controls production between flows.

92. Takt Time
Takt time paces production to the pace of customer requirements.
Total daily operating time
Takt Time =
Total daily customer requirement
Operating time = 1 shift x 8 hours – (2) 20-min. breaks = 440 mins/day
Customer 880 units/month
= = 44 units/day
Requirement 20 days/month
Facilitator Notes:
Takt time is the primary measurement tool in standardized work. Takt time is the German work for musical meter or rhythm.
440 mins/day
Takt time = = 10 mins/unit
44 units/day

93. What is a Value Stream ? Starts with raw materials
A Value Stream is all the actions, value creating and non-value creating, required to bring a product from order to delivery
Starts with raw materials
Finalizes at the end-customer
Involves several businesses
A value stream is all the activities that create value. All of the actions for a whole product family.
A value stream starts with raw materials and ends with end customer. It is a visual management picture of the complete process.
Most value streams involve several businesses. It includes suppliers and processes outside of this facility. The complete process. You need to think outside our walls.

94. Value Stream Mapping
Helps you to see the sources of waste in the value stream
Shows the flow of information and material
Forms the blueprint for lean implementation (Imagine trying to build a house without a blueprint).
Helps you to see more than just the single process level
Provides a common language for talking about manufacturing processes
Makes decisions about the flow apparent, so they can be discussed
Ties together lean concepts and techniques, which helps to avoid “cherry picking” Improvement projects
Mike Rother Learning to See

95. What is Value Stream Analysis?
Value stream maps describe a value stream
Value stream analysis is a planning process
Uses value stream maps to communicate
Information Flow
Material Flow
Three value stream maps are created
Current state
Ideal state
Future state (3 months from now)
Action plans are developed for the future state map
*they are visual descriptions of a value stream. They are powerful because they give us a way of communication about what the current value stream is and what it will become in the future.
*Value stream analysis is a planning process that uses value stream maps. It has clear boundaries and is usually focused on a part of the value stream. Value stream maps are used to communicate either info. Or material flow.
*In a value stream analysis three value stream maps are created:
Current state: what is the value stream today. Ideal state: Making the Current State better, map depicting the opportunities for improvement employing lean methodologies. Future State: mos. What do we want the value steam to be.
From the future state we choose action plans for the next 3-6 months. We chose this action with ideal state in mind or what good looks like. *

96. The Value Stream Analysis Process
Phase 1-Pre-event work
Phase 2-The Main Event
Phase 3-Accountability Process

97. Value Stream Analysis Process Phase 1 Pre-event Planning

98. Pre-Event Work Three weeks prior to the event Determine team members
Define the objective of the team
Select the area and topic
Logistics (conf. Rm., times, facilitator supplies, etc.)
Invite team members to the event
Clarify roles and responsibilities
Event leader-value stream manager from the area (owns resources and results)
Event facilitator-CI Leaders who manage the improvement process and share in ownership of results
Subject matter experts
Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels)
Read questions?
We summarize this definition of what the customer sees as value and attach it to our value stream map.

99. Pre-Event Work Two weeks prior to the event
Part/quantity analysis (select representative part number)
Gather and review data (Yield, job closures, CONC, etc.)
Determine future demand
Review prior event data
Review any customer issues
Review any requirements for capital equipment
One week prior to the event
Verify customer demand
Review above data
Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels)
Read questions?
We summarize this definition of what the customer sees as value and attach it to our value stream map.

100. Value Stream Analysis Process Phase 2 The Main Event

101. The Main Event Training Gemba Walk Value Stream Map-Current State
Develop Ideal State Map
Develop Future State Map (3 months out)
Develop Future State Plan
Management Report Out
Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels)
Read questions?
We summarize this definition of what the customer sees as value and attach it to our value stream map.

102. VSM Event Steps 1 &2 Training and Gemba Walk
The concepts of Lean need to be applied to classroom training as well as our other processes
This is a learn by doing process
We will minimize classroom learning
Gemba Walk
Gemba means, “shop floor” or “where the process is”
We need to go there so we know what we are mapping

103. VSM Event Step 3 Current State Map
Value Stream Map-Current State
Map the physical flow (manufacturing loop, customer loop, supplier loop)
Map the information flow
Complete the lead time data bar
Visually identify waste
Identify value added/non-value added (red, yellow, green dots)
Visually identify the most significant opportunities with kaizen bursts.
Summarize all information and metrics (date, P/N, times, inventory, OTD, quality, etc.)
Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels)
Read questions?
We summarize this definition of what the customer sees as value and attach it to our value stream map.

104. Elements of Value Stream Maps
Monthly Orders
30 Days
880
Op 1
1 Day
S/U = 1 hr CT = 1.6 min
S/U = 0.08 hr CT = 0.9 min
S/U = 0.08 hr CT = 1.2 min
Total = 57 Days Total = 1 Hr Min.
Takt Time = 440 min/ = 10 min/unit
Bi-Monthly
MRP
S/U = 0
CT = 60 min
S/U = 1.95 hr
CT = 40.3 min
Supplier
Customer 45 1 2 5
1.6
0.9 60
1.2
40.3
Op 2
2 Days
Op 3
Op 4
Op 5
5 Days
Op 6
45 Days
Information
Supplier Loop
Customer Loop
Manufacturing Loop
Does your map look like this?
Discuss.
Note the bursts. Long cycle times and inventory amounts are highlighted. Cycle time can be reduced by using 6 Sigma to increase the number of quality parts out of a process. Also used to understand the process and the effects of speeding up the cycle time. High inventory often used to mask quality problems or a result of build up due to bottlenecks.
Lead Time Data Bar

105. Manufacturing Loop Questions
What are the changeover times?
What are the quantity of machines per process?
Count all work in process (WIP)
Look for evidence of quality problems
Look for processing waste
Is there great distances between processes?
Is the product flexible or made to order?
Is there obvious batch processing?
Notes:

106. Customer Loop Questions
Who and where are your customers?
What are the product lines or families?
Future marketing plans? Review growth
potential.
What is the total yearly order requirement? Quantity by product family or product type
What is the high, low and mean ordering pattern? Monthly or quarterly high & low for several periods
How often do we deliver to our customer?
What takt time do we supply to?
G.M.
AT&T
Here’s the questions we need to know about our customer’s current state.
Break into teams. For a 3 legged process, you may have 4 teams, 1 for each leg of the process and 1 for the supplier/customer loop.

107. Production Control Questions
Where in the production chain do we trigger production?
How much work do we release at one time?
How long does it take to go from customer order to production order?
How do we physically schedule production?
How do we react to customer emergencies?
Notes:

108. Supplier Loop Questions
#1 question, how do you tell suppliers what to ship, make, etc.?
When and how often do they get purchase orders from Customers?
When and how do we change the purchase order?
When and how often do suppliers ship product and how? Is it level? (Truck, train, etc.)
Do we have standard pack quantities?
Are suppliers aware of our inventory quantities?
Are we sure of suppliers inventory? How?
Do we have a supplier training program?
Notes:

109. Information Flow Questions
How are the manufacturing and procurement orders distributed?
Who gets them
How frequently
What is the process of generating them
How are the shop order schedules generated and revised? Are there “shortage meetings”? What parts of the manufacturing loop are scheduled by MRP? Make sure to document the informal (hot lists) as well as formal (MRP) information channels.

110. Current State Lead Time Data Bar
Total
Cycle Time
(CT)
DOH Inventory
8 Days
4 Days
12 Days
4 Hrs
(1 Hr.)
4 Hrs
VA Time (yes/no)
CT Total

111. Mapping Icons COMPUTER WIP NotesThese are all the icons:
point out some of the key ones…
- the customer box
- the push arrows
- the computer tombstone indicating info is waiting to be processed
- the information box

112. Visually Identify Waste
As a team, review each process step for elements that are value added and non value added
Each step can have any combination of value added, type 1 waste and/or type 2 waste
Identify value added with a green dot
Identify type 1 waste (waste but unavoidable in the current state) with a yellow dot
Identify type 2 waste (pure waste, eliminate immediately) with a red dot
As type 2 waste is identified, generate the actions to remove it (this will be the beginning of the future state implementation plan)
Prioritize the waste opportunities and identify the biggest opportunities on the CS map with kaizen bursts

113. VSM Event Step 4 Ideal State Map
Avoid shared resources
Assume that anything is possible
Our customers are happy
Our profits are up
High job satisfaction
Capital is available if needed
Create an ideal state map
Map the physical flow
Map the information flow
Complete the lead time data bar

114. VSM Event Step 5 Future State Map (3 months out)
What of the ideal state map can be implemented in 3 months?
Identify short term goals
LEAD TIME
INVENTORY
PRODUCTIVITY
QUALITY
CAPACITY
Work from your current state map
Now it’s time to get practical. The future state map describes what you really think you’re going to accomplish in the next 6-12 months.
Again don’t let this step take too long to create—some parts of the plan aren’t easy to see yet. Focus on the places that are easy to see and plan about. You learn by doing. Don’t try to develop fancy plans.
As you develop the future map, focus on the low hanging fruit. Where is obvious impact to inventory?

115. VSM Event Step 6 Future State Plan
This plan answers the question, “what actions need to be completed in the next 90 days to achieve the future state?
Think back to the “visually identify waste” step
Plan addresses all “red dots” and Kaizen bursts

116. VSM Event Step 7 Management Report Out
This report out is how the team publicly commits to management
What the goal of the event was
What was learned
What was accomplished during the event
What the outcome is. How much better will we be?
Description of the future state
Commitment of the action plan

117. Value Stream Analysis Process Phase 3 Accountability Process

118. The Accountability Process
The momentum for improvement is never higher then at the end of the event when everyone can really see the waste. As a result the accountability process must start immediately following the event (next day).
Display the current state map, future state map and future state plan in the the affected area.
Commit to a stand up meeting in front of the maps and plan (daily at first, and then less frequent as applicable)
Focus on Due date control. Not meeting dates is letting the team down
Value is what the customer is buying from the value stream. For example, a total value stream may provide a storage cabinet to an end-customer. The Value that the end-customer is buying “is an orderly, organized area” which they create by buying the cabinet, some bins and some labels)
Read questions?
We summarize this definition of what the customer sees as value and attach it to our value stream map.

119. Questions? Comments?