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    Seven Steps To Creating A Value Stream Mapping JAN2014

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    bpkumar1
    Value stream thinking rmakes you to drive the elimination of process waste by strategically understanding where within the value stream you should apply process improvement activities in order to positively impact quality, delivery and cost as a whole

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    Seven Steps To Creating A Value Stream Mapping JAN2014

    Uploaded by

    bpkumar1
    75 views21 pages
    Value stream thinking rmakes you to drive the elimination of process waste by strategically understanding where within the value stream you should apply process improvement activities in order to positively impact quality, delivery and cost as a whole

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    Seven Steps to Creating a Value Stream Mapping JAN2014

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    Value stream thinking rmakes you to drive the elimination of process waste by strategically understanding where within the value stream you should apply process improvement activities in order to positively impact quality, delivery and cost as a whole

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views21 pages

    Seven Steps To Creating A Value Stream Mapping JAN2014

    Uploaded by

    bpkumar1
    Value stream thinking rmakes you to drive the elimination of process waste by strategically understanding where within the value stream you should apply process improvement activities in order to positively impact quality, delivery and cost as a whole

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 21

    Seven Steps to Creating a Value Stream Map (VSM) Process Steps & Case Study

    Revision: New Date: Jan. 2014

    Content:
    Purpose Process Steps Case Study

    Purpose:

    This presentation identifies the steps needed to create a Value Stream Map VSM. An example is provided using a case study that allows the user to witness the development of a VSM.

    Process Step Approach


    1. 2. Identify Customer Requirements Draw Process Steps

    3. 4. 5. 6. 7.

    Enter Process Data Enter Inventory Count Draw Material Flow : Supplier to Manufacturer, Manufacturer to Customer Draw Information Flow and internal material flow Calculate Lead Time, processing time & max value add %

    Seven Steps to Creating a VSM


    Step 1 : Identify Customer Requirements
    Customer Demand Number of Shifts Pack Size

    Step 2 : Draw Process Steps


    For ease, combine parallel process steps

    Step 3 : Enter Process Data


    Cycle Time Changeover Time Uptime Amount of Operators

    Seven Steps to Creating a VSM


    Step 4 : Enter Inventory Count
    Enter inventory count between each process step Don't forget inventory at the beginning before 1st process step

    Step 5 : Draw Material Flow


    From supplier To customer

    Step 6 : Draw information & internal material flow


    From Aircraft Assembly Plant to supplier From production planning to process steps

    Seven Steps to Creating a VSM


    Step 7 : Calculate lead time, processing time & maximum value add %
    Processing Time
    Sum of all cycle times

    Lead Time
    Processing time + sum of all inventory times Inventory time = inventory quantity/daily customer demand For example, if the customer requires 20 items per day and there are 40 items in inventory. There is 2 days inventory time (waiting time) Convert inventory time from days to minutes (include breaks, but not uptime or changeover time) Maximum Value Add % Max. Value add % = (processing time/lead time) x 100

    Seven Steps to Creating a VSM


    Case Study: Joe Bloggs Stamping Company
    Introduction
    The Joe Bloggs Stamping Company produces several components for Aircraft Part Assembly Plants This case concerns one product family ; a Titanium Bracket Sub-Assembly in two types A1 and A2 These components are sent to Assembly Plant

    Customer Requirements
    320 pieces per month 200 per month Type A1 120 per month Type A2 Customer Plant operates 2 shifts Palletised returnable tray packaging with 1 bracket per tray and up to 10 trays per pallet. The Customer orders in multiples of trays Ships once daily to the Assembly Plant by road

    Seven Steps to Creating a VSM


    Case Study: Joe Bloggs Stamping Company
    Work Time
    20 days in a month 2 shift operation in all production departments 8 hours every shift, with overtime if necessary Two 10 minute planned breaks during each shift Manual processes stop during breaks Unpaid lunch, all processes continue

    Production Processes
    Joe Bloggs process for this product family involves stamping a metal part followed by welding and subsequent assembly. The components are then stored and driven to the Assy Plant on a daily basis. Switching between Type A1 and A2 brackets requires a 1 hour changeover in stamping and a 10 minute fixture change in the welding processes. Coils (500m) are supplied by Coils R Us Deliveries are made to Joe Bloggs on Tuesdays and Thursdays by truck.

    Seven Steps to Creating a VSM


    Case Study: Joe Bloggs Stamping Company Joe Bloggs Production Control Department
    Receives Assy Plants 90/60/30 day forecasts and enter them into MRP via Electronic Data Interchange (EDI) Issues Joe Bloggs 6 week forecast to Coils R Us via EDI Secures coil steel by weekly faxed order release to Coils R Us Receives daily firm order from Assy Plant via EDI Generates MRP (manufacturing resource planning) based weekly departmental requirements based on customer order, Work in Process (WIP) inventory levels, Finished Goods (F/G) inventory levels, anticipated scrap and downtime. Issues requirements to Coils R Us for 500m coils Issues weekly build schedules to Stamping, Welding and Assembly processes Issues daily shipping schedule to Shipping Department

    Seven Steps to Creating a VSM


    Case Study: Joe Bloggs Stamping Company
    All production processes occur in the following order, each piece goes through all process

    1.

    Stamping
    (The press makes parts for many products) 1 Operator to run press Automated 10 ton press with coil (automated material feed) Cycle Time : 1 minute (60 pieces an hour) Changeover Time : 1 Hour (good piece to good piece) Machine Reliability : 85% Observed Inventory
    4000m of coils before stamping (enough to make 80 brackets) 150 pieces of Type A1 finished stampings 24 pieces of Type A2 finished stampings

    Seven Steps to Creating a VSM


    Case Study: Joe Bloggs Stamping Company
    2. Spotweld Workstation 1
    (dedicated to this product family) Manual process with 1 operator Cycle Time : 39 minutes Changeover Time : 10 minutes (fixture change) Reliability : 100% Observed Inventory
    36 pieces of Type A1 & 6 pieces of Type A2 after process

    3.

    Spotweld Workstation 2
    (dedicated to this product family) Manual process with 1 operator Cycle Time : 46 minutes Changeover Time : 10 minutes (fixture change) Reliability : 80% Observed Inventory
    6 pieces of Type A1 before Spotweld 2 16 pieces of Type A1 & 18 pieces of Type A2 after Spotweld

    Seven Steps to Creating a VSM


    Case Study: Joe Bloggs Stamping Company
    4. Assembly Workstation 1
    (dedicated to this product family) Manual process with 1 operator Cycle Time : 62 minutes Changeover Time : none Reliability : 100% Observed Inventory after process step
    42 pieces of Type A1 & 6 pieces of Type A2

    5.

    Assembly Workstation 2
    (dedicated to this product family) Manual process with 1 operator Cycle Time : 40 minutes Changeover Time : none Reliability : 100% Observed finished goods inventory in warehouse
    27 pieces of Type A1 & 14 pieces of Type A2

    6.

    Shipping Department
    Remove parts from finished goods warehouse and prepares them for shipment to the customer

    Seven Steps to Creating a VSM

    Material Flow Icons


    C/T = 45 sec C/O = 30 min 3 Shifts 2% Scrap

    Data Box

    I 300 pieces 1 day

    Inventory

    XYZ Corporation Assembly

    Outside Sources

    FIFO

    First-In-First-Out Sequence Flow

    Manufacturing Process PUSH Arrow

    Finished Goods to Customer

    Withdrawal

    Mon.

    + Wed.

    Truck Shipment

    Supermarket

    Seven Steps to Creating a VSM

    Information Flow Icons


    Weekly Schedule

    Schedule Electronic Information Flow Manual Information Flow Production Kanban

    OXOX

    Load Levelling Kanban Post Signal Kanban

    Go See Scheduling

    Withdrawl Kanban
    Kanban Arriving in Batches

    Sequenced-Pull Ball

    Seven Steps to Creating a VSM

    General Icons
    Improvement Lightening Burst

    Buffer or Safety Stock

    Operator

    Seven Steps to Creating a VSM

    Case Study: Steps 1-4


    Aircraft Assembly Plant 320 Pieces/Month 200 A1 120 A2 2 Shifts Pack Size 1

    I 80

    Stamping

    I 150 A1 24A2

    Spot Weld 1

    I 42A1 6A2

    Spot Weld 2

    I 16A1 18A2

    Assembly 1

    I 42A1 6A2

    Assembly 2

    I 27A1 14A2

    Shipping

    10T

    C/T = 1 Min C/O = 1 Hour Uptime = 85% 1x

    C/T = 39 Min C/O = 10 Min Uptime = 100% 1x

    C/T = 46 Min C/O = 10 Min Uptime = 80% 1x

    C/T = 62 Min C/O = 0 Uptime = 100% 1x

    C/T = 40 Mins C/O = 0 Uptime = 100% 1x

    Identify Customer Requirements, Draw Process Steps, Enter Process Data and Enter Inventory Count

    Seven Steps to Creating a VSM

    Case Study: Step 5


    Coils R Us Aircraft Assembly Plant 320 Pieces/Month 200 A1 120 A2 2 Shifts Pack Size 1 500M Coils Tues & Thurs

    1 x Daily

    I 80

    Stamping

    I 150 A1 24A2

    Spot Weld 1

    I 42A1 6A2

    Spot Weld 2

    I 16A1 18A2

    Assembly 1

    I 42A1 6A2

    Assembly 2

    I 27A1 14A2

    Shipping

    10T

    C/T = 1 Min C/O = 1 Hour Uptime = 85% 1x

    C/T = 39 Min C/O = 10 Min Uptime = 100% 1x

    C/T = 46 Min C/O = 10 Min Uptime = 80% 1x

    C/T = 62 Min C/O = 0 Uptime = 100% 1x

    C/T = 40 Mins C/O = 0 Uptime = 100% 1x

    Draw Material Flow : Supplier to Manufacturer and Manufacturer to Customer

    Seven Steps to Creating a VSM

    Case Study: Step 6


    Coils R Us 6 Week Forecast Weekly Fax 500M Coils Production Planning MRP 30/60/90 Day F/C Daily Expedite Aircraft Assembly Plant 320 Pieces/Month 200 A1 120 A2 Weekly Plan 2 Shifts Pack Size 1

    Tues & Thurs

    Daily Shipping Plan

    1 x Daily

    I 80

    Stamping

    I 150 A1 24A2

    Spot Weld 1

    I 42A1 6A2

    Spot Weld 2

    I 16A1 18A2

    Assembly 1

    I 42A1 6A2

    Assembly 2

    I 27A1 14A2

    Shipping

    10T

    C/T = 1 Min C/O = 1 Hour Uptime = 85% 1x

    C/T = 39 Min C/O = 10 Min Uptime = 100% 1x

    C/T = 46 Min C/O = 10 Min Uptime = 80% 1x

    C/T = 62 Min C/O = 0 Uptime = 100% 1x

    C/T = 40 Mins C/O = 0 Uptime = 100% 1x

    Draw Information Flow and Internal Material Flow

    Seven Steps to Creating a VSM

    Case Study: Step 7


    Coils R Us 6 Week Forecast Weekly Fax 500M Coils Production Planning MRP 30/60/90 Day F/C Daily Expedite Aircraft Assembly Plant 320 Pieces/Month 200 A1 120 A2 Weekly Plan 2 Shifts Pack Size 1

    Tues & Thurs

    Daily Shipping Plan

    1 x Daily

    I 80

    Stamping

    I 150 A1 24A2

    Spot Weld 1

    I 42A1 6A2

    Spot Weld 2

    I 16A1 18A2

    Assembly 1

    I 42A1 6A2

    Assembly 2

    I 27A1 14A2

    Shipping

    10T

    C/T = 1 Min C/O = 1 Hour Uptime = 85% 1x 4600 Mins 1 Min 10,028 Mins

    C/T = 39 Min C/O = 10 Min Uptime = 100% 1x 2760 Mins 39 Mins

    C/T = 46 Min C/O = 10 Min Uptime = 80% 1x 1932 Mins 46 Mins

    C/T = 62 Min C/O = 0 Uptime = 100% 1x 2760 Mins 62 Mins

    C/T = 40 Mins C/O = 0 Uptime = 100% 1x 2392 Mins 40 Mins Production Lead Time = 26.8 Days Processing Time = 188 Mins

    Calculate Lead Time and Processing Time

    Seven Steps to Creating a VSM

    Case Study: Step 7 Max Value Add %


    1 Working Day
    8 Hours x 2 Shifts 8 x 60 x 2 = 960 Minutes 960 Minutes Breaks 960 40 = 920 Minutes

    Convert Lead Time to Minutes


    Lead Time = 26.8 Days 26.8 x 920 = 24,660 Minutes

    Calculate Max. VA %
    Max VA% = (processing time / lead time) x 100 = (188 / 24660) x 100 = 0.76%

    Therefore the Max VA% indicates that the item has only been worked on for 0.76% of the time it has been within the value stream (touch time) The 0.76% is not all value add time because some of the cycle time within the process steps could be waste This is why it is called Maximum Value Add %, because even with a perfect process (with no waste) the Max VA % could only ever be 0.76%

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