1 vsm001 value stream mapping value stream mapping day 1 value stream mapping

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Value Stream Mapping


Day 1

Value

Stream

Mapping

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Jan Vlasak

Introductions

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Agenda

• Current State Map

• Future State Map

• Value Stream Plan

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AgendaDay 1:Topic/Activity TimeOpening 8:00 AMIntroduction 8:15 AMGoals of Workshop 8:30 AMReview of Lean Principles 8:35 AMBreak 9:00 AMIntroduction to Value Stream 9:20 AMCurrent State Map 10:05 AMExercise 1 – Customer Loop 11:00 AMLunch 12:00 AMReport-outs 12:45 PMExercise 2 – Internal Loop 1:00 PMReport-outs 2:25 PMBreak 2:40 PMExercise 3 – Supplier Loop 2:55 PMCurrent State Report-outs 3:45 PMOpportunities In Future State 4:05 PMExample Future State Map 5:00 PMAdjourn 5:45 PM

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AgendaDay 2:

Topic/Activity Time

Introduction Day 2 8:00 AM

Exercise 4 – Customer Loop 8:15 AM

Break 9:30 AM

Report-outs 9:45 AM

Exercise 5 – Internal Loop 10:00 AM

Report-outs 11:45 AM

Lunch 12:00 AM

Exercise 6 – Supplier Loop 12:45 PM

Obstacles 1:30 PM

Value Stream Plan 2:00 PM

Exercise 7 - VSP 2:15 PM

Final Report-outs 3:00 PM

Break 3:45 PM

The Value Stream Team 4:00 PM

Closing Comments 4:15 PM

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Company Strategy

• Growth

• Competitive Position

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Cost Reductions

• Customer Price

• Labor Inflation

• Increase Earnings

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Keys to Lean Production

• Work Place Organization

• JIT Production

• Six Sigma Quality

• Empowered Teams

• Visual Management

• Pursuit of Perfection

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Key Factors for Lean Success

• Strategic Vision

• Strong Line Management Leadership

• Expert Training and Support

• Aggressive Performance Targets and Tracking

• Impatience

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“Becoming the Best”

• The Answer;• Develop a Deep Understanding of Our Processes at

their Broadest Levels and Not Just Continue to Improve Individual Work Units

• Working Together to Add Value to our Company

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Our Needs

• Tools to Support Linkages Between Processes

• Emphasis on Processes and Systems

• Horizontal Organization Based on Teamwork

• Leadership and Followership

• Commitment and Involvement

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Performance

• Operational Performance Determines Financial Results

• Lean Enterprise Is the Key to Successful Operational Performance

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The AM of Tomorrow

• Complete Understanding of Lean Principles

• Commitment and Discipline to Live by these Principles

• Sense of Urgency to Exceed the Targets and Deadlines

• Commitment to Strive for Perfection

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Potential Benefits

• Inventory Reduction

• Quality Improvement

• Productivity Improvement

• 12% Reduction in Overall Cost

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Why are we Here?

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Goals of the Workshop

• L

• E

• A

• D

• E

• R

earn to See

stablish a Plan

ct on Opportunities

rive Change

nable Teams

educe Lead Time

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Think Lean

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Waste

• Waste is Only the Symptom of a Deeper Problem

• Focus on the Source Rather than the Symptom

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OverproductionOverproduction

• Definition:

• Producing More than Needed

• Producing Faster than Needed

Parts

Parts

Parts

Parts Parts

Parts

Parts

Parts

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Takt TimeTakt Time

Available Work Time

Customer Demand

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One Piece Flow

Make One, Move One!!!

ProcessA

Process B

ProcessC

ProcessD

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Pull System

Supplying Process

Customer Process

Supermarket

ProductProduct

“Withdrawal” KANBAN“Production” KANBAN

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Selecting the Point of Pull

ProcessA

ProcessB

ProcessC

ProcessD

FLOW

POP

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Why Small Lots?

• Drive C/O Time Reduction

• Flexibility

• Reduce Inventory

• Reduce Lead Time

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Leveling

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A Brief Introduction to

ValueStream

Mapping

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The Improvement Process• Employee Involvement

• Training and Development

• Model Work Unit

• 20 Keys Assessment

• Traditional

• Learning

• Leading

• World Class

• Best in Class

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Factor ImprovementPPM .…………………………….. 91.3 %Scrap ……………………………. 57.6 %Training hrs./Employee ………...182.2 %Suggestions/employee ……..…. 347.5 %Labor cost % of sales ……….… 36.4 %WIP hours ………………………. 91.6 %Changeover time …………….… 72.5 %Lead time ……………………….. 87.0 %

ResultsImprovement on all work units since introduction of

the AM Performance System

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Operator 1

Operator 2

EntranceR Cut Draw Draw

F/A Spin SpinExit

Production Space = 30%

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Opportunities = 70%

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Why???

•Opportunities in Work Units

Vs.

•Opportunities between Work Units

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FLOW

StampingC/T = 4 Sec.

Sub-AssemblyC/T = 60 Sec.

Final AssemblyC/T = 60 Sec.

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The Next Chapter in AM’s Success Story


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What is a Value Stream?

All the Actions Involved in Making a Part

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Establishing Flow

Production Flow

Information

Material

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Elimination of Waste

A Broadened Perspective

• Identify and Target the Source of Waste in the Entire Value Stream, rather than Just the Work Unit

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Adding Value

• Establishing the Vision

• Reducing the Lead Time

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• Big Picture Approach

• Links Material/ Information Flow

• Team Growth

Benefits of Value Stream MappingBenefits of Value Stream Mapping

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Visionary Tool

• Planning

• Communication

• Implementation

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The Current State Map

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Customer

Stamping

Sub-Assembly

Assembly

Finished GoodsInventory

C/O Time

Down TimeTakt Time

Supplier

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The Future State Map

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Down Time

Cycle TimeC/O Time

Stamping

Sub-Assembly

Final Assembly

A Lean Stream!!!

Finished GoodsInventory

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Annual Value Stream Plan

• This Plan Visually Displays:• Step-by-Step Implementation Plan

• Measurable Goals

• Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers

• The Value Stream Plan will Play a Fundamental Role in the Optimization of your Value Stream

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Management’s Role

• See Overall Flow

• Develop the Vision

• Lead Implementation

• Support EI Teams

• Make Sure Everyone Understands!

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Management’s Commitment

• Eliminate Overproduction

• Support Lean Principles

• Willingness to Take Risks

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“Whenever there is a product for a customer there is a value stream

The challenge lies in seeing it”

AM

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The Current State Map

Practice Makes Perfect

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It’s Time to Practice

• At this Time Please Read through the Example Data Set for General Exhaust

• We will Begin Drawing the Example Current State Map in Just a Few Minutes

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Data Set for General Exhaust

• Customer

• General Auto

• Customer Information

• 20,000 pieces per month

• Container size = 300 pieces

• Customer operates on two shifts

• Two deliveries to customer per week

• General Auto

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Data Set for General Exhaust(continued)

• General Exhaust Production Control Department

• Electronically receives General Auto’s 13 week forecast and enters into MRP

• Electronically issues 13 week forecast to General Components

• Receives daily firm order fax from General Auto

• Secures components through daily fax to General Components

• Generates daily departmental schedule based on MRP

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• Production Process:

• Sub-Assembly 1 Sub-Assembly 2 Final Assembly

• Work Time:

• 20 Days per months

• 2 shifts in all production departments

• 8 hours per shift

• 2 ten minute breaks per shift and unpaid lunch

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(continued)

• Final Assembly• 3 operators• Takt Time = 55.2 seconds• Cycle Time = 55 seconds• Total Work Content = 146 seconds• Changeover Time = N/A• Uptime = 85%• Observed Inventory

• .75 Days work in progress

• 3.5 Days finished goods• Shipped to truck from final assembly finished goods

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• Sub-Assembly 2

• 3 operators

• Takt Time = 55.2 seconds

• Cycle Time = 55 seconds

• Total Work Content = 130 seconds

• Changeover Time = N/A

• Uptime = 90%

• Observed Inventory

• .5 Days work in progress

• 1 Day finished goods

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(continued)

• Sub-Assembly 1

• 1 Operator

• Takt Time = 27.6 seconds

• Cycle Time = 24 seconds

• Total Work Content = 24 seconds

• Changeover Time = 30 minutes

• Uptime = 97%

• Observed Inventory

• 2 days raw material

• .25 days work in progress

• 1 day finished goods

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• Supplier

• General Components

• Supplier Information

• Stampings

• Delivery to General Exhaust

• (1) time per day• Container size = 300 pcs

• Two shift operation

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Always Start With the Customer!!!

Work Upstream from There

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What to Look For...

• Information Flow from the Customer

• Forecasts

• Firm Order

• Instruction to Produce

• Movement of Material

• Inventory

• Future Opportunities!

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Exercise 1: Customer Loop

• Walk through the Entire Process (Upstream)

• Sketch Value Streams for the Customer Loop

• Gather Data for the Customer Loop Worksheet

• Capture Information Flow

• Return to Room

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Worksheet


1. Who are the customers and where are they located?

2. How many pieces does the customer require per month?

3. What is our delivery frequency?

4. What is the container size (pieces per container)?

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WorksheetExercise 1: Customer Loop

5. How many shifts does the customer run?

6. In detail, describe how customer orders are placed (Kanban, MRP, forecasts, firm orders, etc.)

7. Where is the point of pull?

8. How much finished goods inventory did you find (count it!)?

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WorksheetExercise 1: Customer Loop

9. Does any safety or buffer stock exist?

10. How is buffer and safety stock distinguished from finished goods inventory?

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11. Map the Material and Information Flow Customer Loop

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Report Outs

Customer Loop

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What We’ve Accomplished

• Understanding Customer Requirements

• Established Current State of Information and Material Flow

• Have Started to Think About Future Opportunities

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Internal Loop

• Tie the Customer Loop to Internal Processes

• Establish the Relationship between Internal Processes

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What to Look For...

• Define Plant Level Processes

• Data Box Information• Takt Time, # of Operators, C/O Time, Work Unit Cycle

Time, Total Work Content, Uptime %, # of Shifts, Available Operating Time

• Capture All Inventory

• What Initiates Production?


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Exercise 2: Internal Loop

• If Needed, Walk through the Entire Process (Upstream)

• Sketch Value Streams for the Internal Loop

• Gather Data for the Internal Loop Worksheet


• Return to room

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WorksheetExercise 2: Internal Loop

1. Define the processes involved in the production of the part from a plant level (bird’s eye) perspective. Ex. Stamping Work Unit Sub-Assembly Final Assembly

2. For each of the plant level processes find the Takt Time, # of Operators, Work Unit Cycle Time, Total Work Content, Changeover Time, Uptime %, Number of Shifts, Available Operating Time (in seconds).

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WorksheetExercise 2: Internal Loop

3. For each of the plant level processes count and calculate the finished goods, work in progress, and raw materials inventory.

4. How do the production work units know when and what to produce? (Be very specific about this process)

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5. Map the Material and Information Flow Internal Loop

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Report Outs

Internal Loop

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What We’ve Accomplished

• Understand Relationship between Internal Processes

• Current State of Information and Material Flow

• Identified Future Improvement Opportunities

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Supplier Loop

• Tie Internal Loop to Supplier

• Understand Flow of Information and Material

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What to Look For...

• Capture All Inventory

• Establish Current Information and Material Flow

• From Storage to the Work Unit

• From Supplier to Storage

• Understand Raw Material and Component Requirements


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Exercise 3: Supplier Loop

• If Needed, Walk through the Entire Process (Upstream)

• Sketch Value Streams for the Supplier Loop

• Gather Data for the Supplier Loop Worksheet


• Return to Room

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Worksheet


1. Supplier Info?

Supplier Part # # ofShifts

DeliveryFrequency

Amount ofSupplier Inventory

Quantity perContainer

Additional Comments:

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Worksheet


2. Describe in detail how we decide we need more material and how we inform our supplier of our needs (MRP, Kanban, Forecasts, Firm Orders).

3. How do we decide how much raw material inventory we need?

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4. Map the Material and Information Flow Supplier Loop

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Report-Outs

Current State Map

(Putting It All Together)

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Practice Makes Perfect

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It’s Time to Practice

• Please Review the Example Current State Map

• We will Begin Drawing the Future State Map Shortly

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Opportunities in Containerization

• Small Container Quantity• Increases Flexibility

• Reduces Customer Fluctuation

• Overall Benefit• Reduces Inventory Dollars

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Takt Time

Available Operating TimePieces

Takt Time =

28,800” - 1,200”500 pcs

=

55.2” per piece=

Sets Pace of Production to Match Customer Demand

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Effects of Container Size

• Current State Example

(takt time * container size) = min per container

60 seconds

(55.2” * 300 pieces) 276 minutes (4 hrs 36 m)

60 seconds 60 minutes

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Effects of Container Size

• Future State Example

(takt time * container size) = min per container

60 seconds

(55.2” * 25 pieces) = 23 min

60 seconds

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Con

tain

er S

ize

Delivery Frequency

Small Containers = Improved Flexibility

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Fluctuation Caused by Container Size

800850900950

1000105011001150120012501300

0 1 2 3 4 5 6 7 8 9 10 11 12 13

ProduceOrder

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Fluctuation Caused by Container Size

800

850

900

950

1000

1050

1100

1150

1200

1250

1300

0 1 2 3 4 5 6 7 8 9 10 11 12 13

Produce

Order

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Opportunities in Delivery Pitch

• Even Delivery Pitch• Drives Constant Takt Time

• Reduces Fluctuation

• Overall Benefit• Reduction in Inventory

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Pick-Up (2,500 pcs/truck) 7:00 am Wednesday 7:00 am Friday

Truck 1 = 2,760’

= 165,600”

Takt = 66.24”

Truck 2 = 1,840’

= 110,400”

Takt = 44.16”

460 min 460 min

460 min460 min

400 min60min

460 min

460 min

460 min

460 min

60min 400 min

M

T

W

Th

F

Time between shifts

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Opportunities in Kanban

• Pull System• Links Production to Customer Demand

• Aids in Visual Control

• Identifies Opportunities for Improvement

• Overall Benefit• Improves Material Control

• Prevents Overproduction

• Reduces Inventory

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Pull System

Supplying Process

Customer Process

Supermarket

ProductProduct

“Withdrawal” KANBAN“Production” KANBAN

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Selecting the Point of Pull

ProcessA

ProcessB

ProcessC

ProcessD

FLOW

POP

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Opportunities in Leveling

• Leveling Post• Reduces Customer Demand Fluctuation

• Reduces Delivery Pitch Fluctuation

• Pulls Product Based on Takt Time

• Overall Benefits• Eliminates Scheduling

• Levels Customer Demand

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Week 1 2 3 4 Average

Part A 5300 4700 5200 4800 5000Average 5000 5000 5000 5000

Difference 300 -300 200 -200

Forecast

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Customer Fluctuation

4600

4800

5000

5200

5400

0 1 2 3 4 5

week

Part A

Average

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Buffer

Part A

Average Avail. Sec Takt Time Container Size # Containers1000 55,200 55.2 25 40

Leveling Post

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Opportunities in Takt Time Production

• Takt Time Post• Produce to Takt Time

• Enables Visual Management

• Prevent Overproduction

• Overall Benefits• Identifies Labor Opportunities

• Lowers Inventory

• Eliminates Scheduling

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Takt Time Post

1st Shift606

612

618

624

630

636

642

648

654

730

724

706

700

718

712

600

Part A

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Opportunities in the Work Units

• Uptime • TPM

• BOS Charting

• Team Problem Solving

• Overall Benefits• More Capable Processes

• Employee Involvement

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Track Downtime and Improvement Activities on BOS Chart

Key Measurable– Target– Trend Line

ImprovementActivities

Data Analysis– Pareto

ImprovementTracking

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Opportunities in and between Work Units

• Continuous Improvement Tools• Standardized Work

• Work Balance

• Bottleneck Improvements

• Overall Benefits• Adding Value/ Removing Waste

• Improving Flexibility

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Work BalanceCurrent State

0

10

20

30

40

50

60

1 2 3

Walk

Manual

0

10

20

30

40

50

60

1 2 3

wait

Walk

Manual

Sub-Assembly 2 Final Assembly

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Work BalanceFuture State

0102030405060

1 2 3 4 5

Walk

Manual

Final Assembly

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• Pull System• Withdraw Only What you Need

• Replenish What is Taken

• Overall Benefits• Flexibility in Production

• Prevents Overproduction

• Reduces Inventory

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Pull System

Assumptions:

• Production Schedules Will Always Change

• Production Will Never Go According to Schedule

• It Is Human Nature to Overproduce

PrecedingProcess

StoreFollowing

Process

ProductionKanban

WithdrawalKanban

New Product Needed Product

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• Changeover• Decrease Changeover Time

• Increase # of Changeovers

• Drive Small Lot Production

• Overall Benefits• Flexibility in Production

• Reduction in Inventory

• Better Inventory Turns

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1996 YTD LAST MO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

C/O #1C/O #2

C/O #3

C/O #4

C/O #5

C/O #6

C/O #7C/O #8

AVG. 16.3 14.7 13.2

GOAL 18.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0

CHANGEOVER Work Unit__________ SHIFT_____

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

199

6

YT

D

LA

ST

MO 1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

DAY

MIN

UT

ES

AVG. GOAL

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Type of Activity

PLANT EXERCISE No. Description

VIDEO TAPE ANALYSIS 1 Can be made ext. immediately

2 Obvious waste - remove immediately3 Transfer to ext. after improvements4 Adjustment activity5 Remaining activity for Continuous Improvement

Elapsed Check Type of ResultingStart Time End Time Time for Activity Proposed Solution Elapsedof Activity of Activity Activity Described Activity TimeH / M / S H / M / S Seconds 1 2 3 4 5

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GameBoard

ToolStorage

PaperStorage

DieStorage

Supply Table

1

1

2

2

3

3

4

4

5

5

6

6

Dance Chart Example

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Opportunities in the Supplier Loop

• Supplier Development• Identify Key Suppliers

• Reduce Container Size

• Increase Delivery Frequency

• Kanban!!!

• Overall Benefit• Inventory Reduction

• Cost Reduction

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It is Time To Draw

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Day 2

Value

Stream

Mapping

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• Step 1• Review Takt Time Calculation

• Step 2• Opportunities with Containerization

• Effect of Container Time

• Fluctuation due to Container Quantity

• Future State Proposal for Container Quantity

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Exercise 4: Continued

• Step 3• Opportunities with Customer Pull Timing

• Identify Delivery Pitch

• Calculate Inventory Held Due to Pitch

• Future State Delivery Frequency/Timing

• Step 4• Opportunities with Leveling

• Calculate Leveling Post

• Develop Point of Pull

• Future State Leveling System

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• Step 5• Opportunities in Takt Time Production

• Determine Kanban Delivery Frequency to Cell

• Future State Takt Time Post

• Step 6• Map the Future State Customer Loop

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1. Formula:

Pieces

Available Operating TimeTakt Time

2. Takt Time Results:

Worksheet 1Takt Time Calculation

Worksheet 1Takt Time Calculation

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Worksheet 2Opportunities with Containerization

1. Effect of container time:

2. Fluctuation due to container quantity (Graph):

3. Future state proposal for container quantity

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Worksheet 3Opportunities with Customer Pull Timing

1. Identify delivery pitch:

2. Calculate inventory held due to pitch:

3. Future state delivery frequency and timing:

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Worksheet 4Opportunities with Leveling

1. Calculate leveling post:

2. Develop point of pull:

3. Future state leveling system:

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Worksheet 5Opportunities in Takt Time Production

1. Determine kanban delivery frequency to the work unit:

2. Future state takt time post:

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Worksheet 6

Map the Future State Customer Loop

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Report-Outs

Future State Map

Customer Loop

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Exercise 5: Internal Loop

• Step 1

• Are BOS Charts Being Used?

• Identify the Main Causes of Downtime

• What Steps Can We Take to Achieve Best-in-Class Levels of Uptime (97%)?

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• Step 2

• Identify Manual and Walk Time

• Identify any Bottlenecks

• Calculate Labor Requirements

• Does this Labor Requirement Reflect what You Witnessed on the Line?

• Do Opportunities Exist to Combine Work Units in the Value Stream Based on Labor Requirements?

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• Step 3

• Map the Future State Internal Loop

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Worksheet 1Uptime %

1. Are BOS charts being used?

2. Identify the main causes of downtime:

3. What steps can we take to achieve Best-in-Class levels of uptime (97%)?

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Worksheet 2Standardized Work

1. Identify manual and walk time:

2. Identify any bottlenecks:

3. Calculate the labor requirements:

4. Does this labor requirement reflect what you witnessed on the line?

5. Do opportunities exist to combine work units in the value stream based on labor requirements?

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Worksheet 3

Map the Future State Internal Loop

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Report-Outs

Future State Map

Internal Loop

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• Step 1

• Opportunities with Kanban

• Are Parts Ordered Based on Usage?

• Are Supplier Kanbans Being Used to Order Parts?

• Are Move Cards Used to Deliver Raw Materials to the Work Units?

• Step 2

• Opportunities with Delivery Frequency

• Can Inventory be Reduced with an Increase in Delivery Frequency?

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• Step 3

• Opportunities with Containerization

• Do Component Container Sizes Match Finished Goods Container Size?

• Step 4

• Map the Future State Supplier Loop

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Worksheet 1Kanban

1. Are parts ordered based on usage?

2. Are Supplier Kanbans being used to order parts?

3. Are move cards used to deliver raw materials to the work unit?

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Worksheet 2Delivery Frequency and Containerization

1. Can inventory be reduced with an increase in delivery frequency?

2. Do component container sizes match finished goods container sizes.

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Worksheet 3

Map the Future State Supplier Loop

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Report-Outs

Future State Map

Supplier Loop

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Understanding the Future StateDrawing the Map

• Put Pencil to Paper!!!

• Remember:

• Start with the Customer

• Include Material and Information Flows

• Data Boxes!!!

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Report-Outs

Future State Map

(Putting Opportunities Together)

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Implementation

Making the Future State a Reality

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Continuous Improvement Cycle

• Plan• Developing the Improvement Plan

• Do• Support the Implementation

• Check• Analyze the Results

• Act• Standardize the Process

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How Do We Implement?

• Break Implementation Into Steps

• Customer Loop

• Internal Loop

• Supplier Loop

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...How Do We Implement...

• Develop Implementation Packet



• Supporting Documentation (Standard Work Studies, etc.)

• Value Stream Plan

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Value Stream Plan

• The Plan Visually Displays:

• Step-by-step Implementation plan

• Measurable Goals

• Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers

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Key Points for Planning

• Produce to Takt Time

• Eliminate Overproduction

• Pull Product Based on Customer Demand

• Kanban

• Point of Pull

• Leveling

• Establish Continuous Flow

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Outline the Plan

• For Each Value Stream Loop

• Establish the Objectives

• Determine the Measurable Goal

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Plant Level Objective

Goal Measurable

Reduce lead-time 9 Days to 4 Days

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Customer Loop

Goal MeasurableDecrease Container Quantity 300 Pieces to 25 Pieces

Increase Delivery Frequency 2 per Week to 1 per Day

Finish Goods Pull System 1.75 Days of F/G Inventory

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Internal Loop

Goal MeasurableIncrease Uptime % Best in Class - 97%

Establish Continuous Flow (0) Inventory Between Work Units

Reduce Changeover Time (30) to (15) Minutes

Internal Pull System Production/Move Cards

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Supplier Loop

Goal MeasurableImplement Kanban Supplier Cards

Increase Delivery Frequency 4 times per Day

Decrease Container Quantity 300 Pieces to 25 Pieces

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Date: Yearly Value Stream PlanChampion:

Plant-LevelObjective

Value StreamLoop

Loop

Value StreamObjective

Goal(Measurable)

Specific Scheduling Deadlines(on Monthly Basis)

Owner Reviewer andReview Dates

1Customer

2Internal

3Supplier

Product Family:

1 2 3 4 5 6 7 8 9 10 11 12

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Date: 10/29/99

Yearly Value Stream PlanChampion: Bill Green


Value StreamLoop

Loop


Goal(Measurable)



1Customer

2Internal

3Supplier

Product Family:Sub-Muffler

1 2 3 4 5 6 7 8 9 10 11 12

Dec Cont. Qty.

Inc. Del. Freq.

FG Pull System

ReduceFinished Goods

Inventory

300 to 25

2 /wk to 1/D

1.75 DaysFinishedGoods

GoldTeam

Joan Smith2/28/004/15/005/29/00

Inc. Uptime %

Cont. Flow (S/A2 to F/A)

Reduce C/OTime

Int. Pull Sys.

BIC 97%

0 Inv. Betweenwork units

15 minutes

Prod. MoveCards

Kanban

Inc. Del. Freq.

Dec. Cont. Qty.

Supp. Cards

4/Day

300 to 25

BlueTeam

RedTeam

John Doe5/30/007/30/008/30/00

Jim Smith9/30/0010/15/0012/30/00

153

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Exercise 7: Value Stream Plan

• Step 1• Develop Value Stream Plan

• Step 2• Discuss Roadblocks to Implementation

• How Do We Eliminate Roadblocks

154

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Date: Yearly Value Stream PlanChampion:


Value StreamLoop

Loop


Goal(Measurable)



1Customer

2Internal

3Supplier

Product Family:

1 2 3 4 5 6 7 8 9 10 11 12

155

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Report-Outs

The Value Stream Plan(Putting Ideas Into Action)

156

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The Value Stream Team

Prepare the organization to see opportunities for improvement and turn

those opportunities into reality

157

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Identify the Value Streams

• End of the Chain• Completion of the final product

• Next move is to the Customer

• Move Upstream

• Identify the internal suppliers

• Final step is supplied parts

158

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Choose the Model

• Practice Makes Perfect!

• Begin with the less complicated

• Move to the more difficult

159

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Establishing the Team

• Selecting the Team

• Who are the people in the value stream

• What type of resources are required

• Function of the Team

• Analyze Value Stream Together

• Hold Frequent Meetings to Monitor Progress

• Eliminate Obstacles Together

160

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Transfer the Knowledge

• Start the Process



• Develop the Plan

• Check Understanding

• Clear Up Confusion

• Get Commitment

161

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Things to Remember

• Benchmark the Current Condition

• Dedicate the Resources

• Monitor the Progress

• Evaluate the Results

• Celebrate Success

• Continue the Pursuit of Perfection!!!

162

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BeImpatient!

1 vsm001 value stream mapping value stream mapping day 1 value stream mapping

Documents

value stream mapping

pm slide

pm value stream plan

value stream team

pm exercise

pm break

pm reportouts

earnings slide