using value stream mapping as a strategic planning & implementation tool

Using Value Stream Mapping asa Strategic Planning and

Implementation Tool

Using Value Stream Mapping asa Strategic Planning and

Implementation Tool

Frank GarciaFrank GarciaDirector, Engineering ServicesDirector, Engineering Services

ADVENT DESIGN CORPORATIONADVENT DESIGN CORPORATION

Why Use VSM?Why Use VSM?

Identify areas for lean improvementsIdentify areas for lean improvements

Train team members in use of lean Train team members in use of lean conceptsconcepts

Integrated lean implementation plan Integrated lean implementation plan

Long term planning Long term planning

What We’ll CoverWhat We’ll Cover

What is VSM?What is VSM?

Basic Lean Concepts Basic Lean Concepts

Developing Value Stream Maps: Current Developing Value Stream Maps: Current& Future State& Future State

Implementing Implementing VSMsVSMs

Using Using VSMsVSMs

Lean ManufacturingLean Manufacturing

Any activity or action which doesAny activity or action which doesnot add value to the product is anot add value to the product is a

form of waste and must beform of waste and must beeliminated or minimizedeliminated or minimized..

Fundamental Principle of Lean Manufacturing

Definition of Value -AddedDefinition of Value -AddedValue is added any time the product is physicallyValue is added any time the product is physicallychanged towards what the customer is intendingchanged towards what the customer is intendingto purchase.to purchase.

Value is also added when a service is providedValue is also added when a service is providedfor which the customer is willing to pay (i.e.for which the customer is willing to pay (i.e.design, engineering, etc.).design, engineering, etc.).

If we are not adding value, we are adding cost orIf we are not adding value, we are adding cost orwaste.waste.

90% of lead time is non-value added!

Waste or Opportunities forImprovement

Waste or Opportunities forWaste or Opportunities forImprovementImprovement

Adds no valueAdds no valueAdds only cost andAdds only cost andtimetimeSymptom rather thanSymptom rather thancausecausePoints to problems inPoints to problems invalue stream andvalue stream andprocessprocessNeed to addressNeed to addresscausescauses

The EIGHT WastesThe EIGHT Wastes

Inventory (more than one piece flow)Inventory (more than one piece flow)Overproduction (more or Overproduction (more or soonersooner than needed) than needed)Correction (inspection and rework)Correction (inspection and rework)Material MovementMaterial MovementWaitingWaitingMotionMotionNon-Value Added ProcessingNon-Value Added ProcessingUnderutilized PeopleUnderutilized People

FLOW & PULLFLOW & PULL

Make the value-creating steps flowMake the value-creating steps flowProduce only what is neededProduce only what is neededIf a process is not completed correctly the firstIf a process is not completed correctly the firsttime, it does not move down the line fortime, it does not move down the line foradditional workadditional workEliminate re-workEliminate re-work

Value StreamValue Stream

The value stream is the set of all theThe value stream is the set of all thespecific actions required to bring aspecific actions required to bring aspecific product (good or service) throughspecific product (good or service) throughthe critical management tasks of anythe critical management tasks of anybusiness:business:

Information Management Information Management Transformation Transformation

The value stream map follows the order path fromThe value stream map follows the order path frombeginning to end and shows a visualbeginning to end and shows a visualrepresentation of every process in the order andrepresentation of every process in the order andinformation flowsinformation flows

Shows how the shop floor or office currentlyShows how the shop floor or office currentlyoperatesoperates

Develops the foundation for the future stateDevelops the foundation for the future state

Value Stream Map An Assessment Tool

Value Stream Map An Assessment ToolAn Assessment Tool

CustomersSuppliers

File: VSM-A1

ProductionControl

IProcess

RawMaterials

FinishedGoods

Equipment

CycleTimesChangeOverReliabilityError Rate

LeadTime

Value Stream Map Concept

I

OrdersOrders

Schedules

Using the Value Stream Mapping ToolUsing the Value Stream Mapping Tool

product family

current state drawing

future state drawing

plan and implementation

Understanding how the shop floorcurrently operates. The foundationfor the future state.

Designing a lean flow

Who Develops the VSM?Who Develops the VSM?

Team Approach?Team Approach? Better understanding of process Better understanding of process & opportunities & opportunities Provides training in Lean Provides training in Lean Concepts Concepts Feel ownership of Feel ownership of VSMsVSMs Exchange of ideasExchange of ideas More open discussion More open discussion Takes more time Takes more time

Who Develops the VSM?Who Develops the VSM?Engineer Collects Data and DraftsEngineer Collects Data and DraftsVSM?VSM?

Takes less time Takes less time Can be done with Management Can be done with Management TeamTeam Can train on lean concepts & get buy in Can train on lean concepts & get buy in Less ownership by team and operators Less ownership by team and operators Less exchange of ideas within the company Less exchange of ideas within the company

Who Develops the VSM?Who Develops the VSM?Depends on the company culture andDepends on the company culture andpreferencepreferenceHow much time can be devoted?How much time can be devoted?Team Approach is most effective!Team Approach is most effective!

What Tools to Use to Make the VSM?What Tools to Use to Make the VSM?

Hand draw?Hand draw?

Use Excel or Visio?Use Excel or Visio?

Use Use AUTOCADAUTOCAD??

What Tools to Use to Make the VSM?What Tools to Use to Make the VSM?

Hand drawnHand drawn• Quick• Easy for teams• Difficult to change & copy• Harder to present

Use Excel or VisioUse Excel or Visio• Requires program

knowledge• Easy to change• Can use templates• Easy to share &

e-mail• Easy to present

Use Use AUTOCADAUTOCAD??

FORGET IT!FORGET IT!

Current State MapCurrent State Mapproduct family


Future state drawing


Understanding how the shop Understanding how the shop floor currently operates.floor currently operates.

Material and information flows Draw using icons Start with the “door to door” flow Walk the flow and get real data

* no standard times * draw by hand

Basis for the Future Sate

Current State MapCurrent State Mapproduct family




Recommended DataRecommended Data

Cycle Time Changeover time Number of People Available Working Time Acceptance or Reject Rate Equipment reliability or downtime

Corner Punch

C/T = 2 min.C/O = up to 30 min.Rel. = 99%Scrap = 2%

1 Operator

Shear Notch Corner Punch Stake & LabelBend Shipping

I

C/T = 4 min. C/O = N/ARel. = 99%

C/T = 2 min. C/O = 4 min Rel. = 95%

C/T = 2 min.C/O = up to 30 min.Rel. = 99%

C/T = 2 min.C/O = N/A Rel. = 99%

C/T = 5 min. C/O = 30 to 60 sec. Rel. = 90%

1 Operator 1/2 Operator 1 Operator 2 Operators1/2 Operator

Various Distributors(~ 24 for Smith Corp. &~ 6 for Jones Systems

Sheet GalvanizedSteel (4’ by 8’ or cut)

Up to an averageof 130,000 lbsdaily in peak

season

Production Control(normally working

24 to 48 hours aheadof

promised shipment)

Randomly PlacedOrders (normallysingle unit orders)

Blanket Annual PurchaseOrder with Daily Releases

2 to 5 days

4 min.

2 to 5 Working Days, Lead Time

32 minutes, Value-Added Time

Value Stream Map (Current State)

DailyShipments

1/2 Operator

Add Z Brace

C/T = 7 min. C/O = N/A Rel. = 98% to 99%

1/2 Operator

2 min. 2 min. 5 min. 2 min. 7 min.

DailyProduction

Reports

Daily Shipping Schedule

Rack

1 MaterialHandler

DailyProduction

Reports

Average volume of 1000systems per month in peakseason.Customers are mainlydistributors. There are afew dealers.

C/T = N/A C/O = N/A Rel. = 100%

Radius & Band

C/T = 8 min. (average) C/O = 2 to 30 min. Rel. = 80% to 100%

2 Operators

8 min.

Sheet Galvanized Steel (4’ by 8’ or cut)



2 to 5 daysdependingon pre-cut

size

1 AccurshearAutomatedShear (P-3)

1 ManualNotcher (S-23)& 1 AutomatedNotcher (R-3)

3 Semi-Auto Punches

(S-1, S-2, & S-3)

1 ManualBrake (R-7)

& 1 AutomatedBrake (R-13)

1 AutomatedMachine (R-8)

1 AutomatedMachine (ACR)

1 Manual Table,1 Jig-less

Machine (R12),& 1 Jig Machine

(R1)

Specialty Punch

C/T = 2 min.C/O = N/ARel. = 99%

0 Operators

2 min.

4 Semi-Auto Punches

In StraightPanel Dept.

Future State MapFuture State Map

Product family

Current statedrawing



Designing a Lean FlowDesigning a Lean Flow

You always need a future state!

Complete 75% & Keep Updating

Consider Material & Information flows

Foundation for your Work Plan - like a “blueprint”

Begin by evaluating Current State

1st iteration assumes existing steps & equipment Can move equipment, combine operations, reduce scrap, etc.

Future State QuestionsFuture State QuestionsWhat is the What is the takt takt time?time?Will we build to shipping or to a supermarket?Will we build to shipping or to a supermarket?Where can we use continuous flow? Where can we use continuous flow? (Single Piece (Single Piece vs vs Batch)Batch)Where do we have to use supermarket pull system?Where do we have to use supermarket pull system?At what single point in the production chain do we triggerAt what single point in the production chain do we triggerproduction?production?How do we level the production mix at the pacemakerHow do we level the production mix at the pacemakerprocess?process?

SUPPORTING IMPROVEMENTSSUPPORTING IMPROVEMENTSWhat process improvements will be necessary?What process improvements will be necessary?

(e.g. uptime, changeover, training) (e.g. uptime, changeover, training)

TAKT TimeTAKT Time

Synchronizes pace of assemblyto match pace of sales.

Rate for assembling a product based on sales rate.

TAKT = Effective Working Time per Shift Customer Requirement per Shift

Lean ManufacturingConcepts & Techniques

Lean ManufacturingConcepts & Techniques

Flow:Flow: Setup Reduction, Cellular Setup Reduction, CellularManufacturing, Batch Size Reduction,Manufacturing, Batch Size Reduction,Visual Workplace, LayoutVisual Workplace, Layout

Pull:Pull: Kanban Kanban Systems, Supply Chain Systems, Supply ChainManagement, Point of UseManagement, Point of Use

Perfection:Perfection: Quality Systems, Training Quality Systems, Training

40 min.0.75-1.25 h.

2-14 days

32 h.2-14 days

11 days

15 min.2-7 days21 h.40 min.

1 mo.

8.5 h.7 min.8 min.3 min.

0.5 mo

FIFO FIFO

FIFO FIFO

FIFOFIFO

FIFO

FIFOFIFO

1 card permodel

Forecast

2-14 days

WEEKLYFORECAST

DAILYCONSUMP.

Monthlyforecast

SALES

DAILYORDERS

2 wk. 2 wk. 2 wk. 2 wk. 2 wk.2 wk.

Test Eq.SalesRegulator

CompuWirePCB

Brooks

MFC

Winston(SheetMetal)

App.Energy(Manif.)

Parker-Hannif.(cell)

Daily asneeded

Avg. = 15/mo.Max = 25/mo.Dem. = 1/dayOrders = 5/mo.1 unit/ day

5 topcustomers

Daily asneeded

WIRE

ROD

GLASSTUBE

WIND

7elementsper batch

ANNEAL SEALWETLINE 11 CELLS

RHODIUM CELLS

PLATINUM CELLS

CELLASSY.

CELLSENSIT.

CELLDRYDWN

11 days

Subassemblies 1 model 1 1 model 2 1 model 3 1 model 4

ELEMENTPREP.

MECHSUBASSY.

MFC

Reg.

PCB

ELEC.ASSY +CALIB.

LEAKTEST

PRODUCTIONCONTROLS

MRP

UNITINST.

FINALASSY,INSP.

SHIP,PACK,

Subassemblies 1 model 1 1 model 2 1 model 3 1 model 4

Rack

Module

UNITTEST

CT = 3min.C/O = 5min.

CT = 8min.C/O = 1 h.

CT = 7min.

CT = 8.5 h. CT = 40min. CT = 21h. CT = 2-7 days

CT = 4 h. CT = 2 h. CT = 30min.

CT = 15min. CT = 2-14 days CT = 32h.CT = 0.75-1.25 h.

CT =40min.

Cell body

14 Elemts.

Orders

ACCLIM.

��

��

��

��

��

��

��

��

��

��

��

XXYYZZ CCOOMMPPAANNYY FFUUTTUURREE

8 hr./day20 day/monthProcess time:

12-29d.Lead time: 67-84d.

UnitPURCHASINGFORECASTS SHIPPING

ServiceCoordinator

Service

SUPPLIER

Asneeded

Avg. = 20/moDemand = 1unit/ day

Customers Asneeded

Wind7 elements/batch

CleanFlush

DryDown

CalibrationWorkbench

FinalTest1u

Dry downGasPaperwork

PRODUCTIONCONTROLS

MACOLA SYSTEM

InstallCell

Cap&Clean

CT = 3 min.C/O = 5 min.

CT = 10-31m.CO = 10-15m.

CT = 10min.

CT = 30m CT = 24-48 hr.

CT = 1.5h – 1dCO = 10 m

CT = 20m CT =30min.

Order

SSTTAANNDDAARRDD UUNNIITTSS –– FFUUTTUURREE SSTTAATTEE

CT=5 min

Anneal

CT = 8 min.C/O = 1 h.

CT = 7 min.

SealElementPrep.

CT = 8.5 h.

Sensitize(5u)

CT = 217h.CO = 15 min.ACC = 40%

Estimate

InitialTest

PressureLeakTest

RemoveCell

CT = 15m-1d0.25 mo.

CT = 15 min.CO = 15 min.RA = !00%

Bag

CT = 5 min.

CT = 15m

AssemblyAnd Repair

LeakTest

UnitDrydown

5u

CT = 15m (A)CT = 10n-1h (R)

CT = 15m CT = 1-3 dC/O = 10m

CT = 4hC/O = 10m

20%

TechInspection

QCCheck

Pack&Ship

Release

CustomerPO

REPAIR

Estimating

WorkOrder

Schedule

Order

UnitOrder

Paperwork

CT = 15 min.

I

��

WIRE

ROD

GLASSTUBE

��

��

14 Elements

RepairParts

��

FIFOFIFOFIFO FIFO FIFO

FIFO

FIFOFIFOFIFOFIFOFIFO FIFO FIFO FIFO

FIFOFIFO

8 hours/day20 days/monthProcess Time: 3.1 – 7.9 daysLead Time: 8.1 – 12.9 daysNOTE: Process and lead time based only on service unit path as shown in bold.

ServiceUnits

Complex VSMComplex VSMComplex VSM

ElementPrep Sensitize

Mechanical Assemlby, ElectricalAssembly, Calibrate, Purge

InstallCell

Drydown

4 to 8 hrs

2 - 4 days

Unit Final TestInspectPack, Ship

Customers? Unit/Day

2 -4 days

STANDARD UNITSFUTURE STATE VALUE STREAM MAP

FIFO

Standard Cells Supermarket

I

14 days

Process Time: 3 to 5 daysLead Time: 15 to 17 days

VSM ExamplesVSM Examples

Current State to Future StateCurrent State to Future State

Soak & Dry Packaging Labeling Case PackingCartoning Shipping

I I I I I I

C/T = 25 - 65 min.C/O = 10 min.Rel. = 100%

C/T = 1 sec.C/O = 5 min.Rel. = 85%

C/T = 3 sec.C/O = 2 min.Rel. = 80%

C/T = 1 sec.C/O = N/ARel. = 100%

C/T = 2 sec.C/O = N/ARel. = 100%

up to 250stonesin WIP

0 01 Operator 1/2 Operator1 Operator 1 Operator1/2 Operator125 Cans of Oil20,640 Round Stones49,000 Shaped Stones

4290Stones

90,504Stones

VariousCustomers

Andrea Aromatics (Scented Oils)

New Jersey Porcelain(Round Stones)

Alanx(Shaped Stones)

30 Cans of OilEvery 2 Weeks

59,000 StonesEvery 2 Weeks

50,000+ StonesEvery 2 Months (via stringer)

Average of 6,000Stones per Dayin Various SizeOrders (8 to 20 case& 200 to 400 caserange mainly)

Production Control Randomly PlacedOrders (Various Sizes)

Orders Every 2 Weeks

Order as Needed

Bi-WeeklyProductionSchedule

Daily Shipping Orders

11.6 Days

65 min.

0.7 Days

7 seconds15.1 days

27.4 Days Lead Time

65 minutes, 7 seconds Value-Added Time


DailyShipments

Existing Work Cell

AmeripackFlow Packager

APAIAutomatic Stapler

Manual Manual Multiple Batch Tanks

Soak & Dry Packaging Labeling Case PackingCartoning Shipping

I I I I I

C/T = 25 - 65 min.C/O = 10 min.Rel. = 100%

C/T = 1 sec.C/O = 5 min.Rel. = 85%

C/T = 3 sec.C/O = 2 min.Rel. = 80%

C/T = 1 sec.C/O = N/ARel. = 100%

C/T = 2 sec.C/O = N/ARel. = 100%

up to 250stonesin WIP

0 01 Operator 1/2 Operator1 Operator 1 Operator1/2 Operator75 Cans of Oil40,000 Round Stones25,000 Shaped Stones

4290Stones

30,000Stonesin a supermarkettype arrangementwith stocking levelsby shape and scent

VariousCustomers

Andrea Aromatics (Scented Oils)

New Jersey Porcelain(Round Stones)

Alanx(Shaped Stones)

12 to 16 Cans of Oil Once aWeek

30,000 StonesOnce a Week

25,000 StonesOnce a Month (via stringer)

Average of 6,000Stones per Dayin Various SizeOrders (8 to 20 case& 200 to 400 caserange mainly)

Production Control Randomly PlacedOrders (Various Sizes)

Orders Every Week

Monthly Order

Bi-WeeklyProductionSchedule(largeorders)

Daily Shipping Orders

10.8 Days

65 min.

0.7 Days

7 seconds

5.0 days 16.5 Days Lead Time65 minutes, 7 seconds Value-Added Time

Value Stream Map (Future State)

DailyShipments

Existing Work Cell

AmeripackFlow Packager

APAIAutomatic Stapler

Manual Manual Multiple Batch Tanks

4 Cases

IncreaseReliability

Kit & Pack Shipping

I

C/T = 10-20 min C/O = 0 min.Rel. = 100%

2 Operators 1 Operator

VariousCustomers

Hardware, Labels, & InstructionManuals from

Various Vendors

EquipmentProduction Control

Randomly PlacedOrders (various sizes,typical is 2 to 3 units

Order as Needed

30 Working Days, Lead Time

15 to 30 minutes, Value-Added Time

Value Stream Map (Current State) for Console & Accessories Assembly

Daily Shipments($375K monthly

average)

10 to 20 min.

Sheetmetal Parts(Havis-Shields)

Extrusion(Warner)

Daily Orders

Order TwicePer Year

(Blanket Orders)

0

0

DailyOrders

98% external customers;2% internal use.External customers are:40% distributors,40% end users;20% outfitters

AssembleConsoles &Accessories

I I

C/T = 5-10 min. C/O = 0 minRel. = 100%

6 Operators

As Required

25 days

5 to10 min.

As Required;black vinylaluminum direct; rest via painters.

10,000 lbsminimumorder viaanodizer Daily

ProductionReports

1 week, up to

1000 pieces

$450K worth,about 25 days

(mainly extrusion)

5 days

Reduce order quantity andinventory amount by buyingstandard sizes and cutting tofit at Company.

Reduce inventory amount bychanging how extrusion isbought and used.

The VSM Opportunity


I I

C/T = 5-10 min. C/O = 0 minRel. = 100%

6 Operators

As Required

25 days

5 to10 min.

As Required;black vinylaluminum direct; rest via painters.

10,000 lbsminimumorder viaanodizer Daily

ProductionReports

1 week, up to

1000 pieces


(mainly extrusion)

5 days

Reduce order quantity andinventory amount by buyingstandard sizes and cutting tofit at Company.

Reduce inventory amount bychanging how extrusion isbought and used.


Kit & Pack Shipping

I I

C/T = 5-10 min. C/O = 0 minRel. = 100%

C/T = 10-20 min C/O = 0 min.Rel. = 100%

6 Operators 2 Operators 1 Operator

VariousCustomers

Hardware, Labels, & InstructionManuals from

Various Vendors

As Required

EquipmentProduction Control

Randomly PlacedOrders (various sizes,typical is 2 to 3 units)

Order as Needed

0

5 to 10 min.

17 Working Days, Lead Time

30 to 45 minutes, Value-Added Time

Value Stream Map (Future State) for Console & Accessories Assembly

Daily Shipments($375K monthly

average)

10 to 20 min.

Sheetmetal Parts(Havis-Shields)

Extrusion(Warner)

10,000 lbsminimumorder viaanodizer

Daily Orders

Monthly orBi-Monthly

Orders

DailyProduction

Reports

0 0

2 days 0

DailyOrders

98% external customers;2% internal use.External customers are:40% distributors,40% end users;20% outfitters

I $250K worth,about 15 days

(mainly extrusion)

High volumeconsoles &accessories in asupermarket typearrangementwith stockinglevels

ProductionRunRequest

ExtrusionCutting

2 Operators

As Required

15 days

15 min.

C/T = 15 min. C/O = 0 minRel. = 100%


ManufacturingCells

The VSM Improvement


Kit & Pack

I

C/T = 5-10 min. C/O = 0 minRel. = 100%

C/T = 10-20 min C/O = 0 min.Rel. = 100%

6 Operators

2 Operators

0

5 to 10 min. 10 to 20 min.

DailyProduction

Reports

0

2 days

DailyOrders

I


(mainly extrusion)High volumeconsoles &accessories in asupermarket typearrangementwith stockinglevels


ExtrusionCutting

2 Operators

15 days

15 min.

C/T = 15 min. C/O = 0 minRel. = 100%


ManufacturingCells

How Do We Implement the Future StateVSM?

How Do We Implement the Future StateHow Do We Implement the Future StateVSM?VSM?

Don’t Wait! Don’t Wait! Use future state VSM to highlight changes Use future state VSM to highlight changes Break up the future state into loops Break up the future state into loops Develop a VSM implementation plan Develop a VSM implementation plan Tie plan to business objectives Tie plan to business objectives Assign projects to team members to Assign projects to team members toimplementimplement

VSM Showing Improvement OpportunitiesVSM Showing Improvement Opportunities

Stamping DegreasingDrying

Packing Shipping

I I I I

Run: 200-600pcs/minC/T = .003 min/pc.

C/O = 4.5 hrs.

Available: 590 min/shiftRel. = 90%

C/T =10 hrC/O = NoneRel. = 80%

2 Hours

1 Operator Shipper

50 to 70Racks

100 to 125Coils

20 to 40 Bins 1 Dayto

12 Weeks

VariousCustomers

Brass (40%)

4 Weeks LT

Beryllium Copper (30%)

6 Mos. LTIn Stock- 1 Week

Phosphor Bronze(30%)

10 Week LT6 Weeks Reroll

Every Week Every Week Every Week

Average of 1 mm pcs per dayin Various SizesOrders (2 to 13)

Omega PrecisionProduction ControlVista Software System

Randomly PlacedOrders (Various Sizes)

Projected requirements

Order as Needed

Weekly ProductionSchedule Pressroom

Manager

Weekly ShippingList

10 Days

1.5day(avg)

2 Days

2.25 Days

1 Day to 12 Weeks 16.75 Days Lead Time+ coil lead time per average order3.75 Days ValueAdded Time

Value Stream Map (Current State) Stamping Orders With No Plating or Heat Treatment

(Potential Future State Changes in Red)

DailyShipments

1 unit

Manual 11 Stamping Presses

6 Operators

10 to 24 coils3 times /week

Average order = 208,000 pcs252,000 strokes

Standard Timefor Setup

AdjustmentSetupTime

Visual Statusof Presses

SankyoCoil Feeds

ReduceCycle Time

Layout isa Problem

AutoBagging

FormalProduction

Control

Single Pointof Control

2 Baskets - Strip1 Basket - Pieces

C/T = 2 Hr Strips Max 1000/Basket Min 200/Basket = 30 Min Pcs. 25,000 Pcs/BasketC/O = NoneRel. = 95%

Combine?•Lot Control Improvement

•Handling Reduction

Review WorkSchedule with

Suppliers

Pre-Control forRoll Changes

Stamping DegreasingDrying

Packing Shipping

I I I I

Run: 200-600pcs/minC/T = .003 min/pc.

C/O = 4.5 hrs.

Available: 590 min/shiftRel. = 90%

C/T =10 hrC/O = NoneRel. = 80%

2Hours

1 Operator Shipper

50 to 70Racks

100 to 125Coils

20 to 40Bins

1 Dayto

12 Weeks

VariousCustomers

Brass (40%)

4 Weeks LT

BerylliumCopper

(30%)6 Mos. LTIn Stock- 1

Week

PhosphorBronze(30%)




Production ControlVista Software System

Randomly PlacedOrders (Various Sizes)


Order as Needed

Weekly ProductionSchedule Pressroom

Manager

Weekly ShippingList

10 Days

1.5day(avg)

2 Days

2.25 Days

1 Day to 12 Weeks 16.75 Days Lead Time+ coil lead time per average order3.75 Days ValueAdded Time

Value Stream Map (Current State)Stamping Orders With No Plating or Heat Treatment

(Potential Future State Changes in Red)

DailyShipments

1unit

Manual 11 Stamping Presses

6 Operators

10 to 24 coils3 times/week

Average order = 208,000 pcs252,000 strokes

File: Omega VSM Current Loop) May 24

Standard Timefor Setup

AdjustmentSetupTime

Visual Statusof Presses

SankyoCoil Feeds

ReduceCycle Time

Layout isa Problem

AutoBagging

FormalProduction

Control

Single Pointof Control

2 Baskets - Strip1 Basket - Pieces

C/T = 2 Hr Strips Max1000/Basket Min 200/Basket = 30 Min Pcs. 25,000Pcs/BasketC/O = NoneRel. = 95%

Combine?•Lot Control Improvement

•Handling Reduction

Review WorkSchedule with

Suppliers

Pre-Control forRoll Changes

SUPPLIERLOOP

PRODUCTIONCONTROL

LOOP

DEGREASE/PACKLOOP

(PACEMAKER)

PRESSLOOP

Stamping

Shipping

Shipper

VariousCustomers

Brass (40%)

4 Weeks LT

BerylliumCopper

(30%)6 Mos. LTIn Stock- 1

Week

PhosphorBronze(30%)




Production ControlUsing Vista Software Module Randomly Placed

Orders (Various Sizes)


Order as Needed

1 Day

1day

1 Day

1 Day

1 Day

Value Stream Map (Future State)Stamping Orders With No Plating or Heat Treatment

DailyShipments

File: Omega VSM Future Loop) May 24

5 Days Lead Timeand Coil Lead Time

Degreasing Packing

New UltrasonicCleaners

Daily Order

BinBatch

Coi

l

Coils

Finished Goods

SUPPLIERLOOP PRODUCTION

CONTROLLOOP

PRESSLOOP

DEGREASE/PACKLOOP

(PACEMAKER)

VSM IMPLEMENTAIONVSM IMPLEMENTAION

LOOP OBJECTIVES PROJECTSSEQUENCE (PRIORITY)

COMPLETION DATE (Mon./Yr)

Supplier Loop * Develop pull system with suppliers 1. Review Weekly/Monthly Requirements With Suppliers 1 Sep-01* Increase number of deliveries per week 2. Revise current blanket orders 1 Sep-01* Reduce raw material inventory to match 3. Send daily consumption data to suppliers 2 Nov-01

4. Setup point of use raw material areas 1 Oct-01

Production Control Loop * Implement daily shipping schedule 1. Single point to schedule( shipping). See pacemaker loop. 1 Oct-01* Work to schedule manufacturing based on shipping requirements 2. Daily production schedule by Operations Manager 1 Oct-01

3. Implement kanban loops as shown on future state VSM 2 Nov-014. Use MRP for materials forecasting 1 Oct-01

Element * Reduce lead time 1. Eliminate WIP between winding & annealing 1 Sep-01Loop * Develop continuous flow 2. Implement supermarket for element prep and kanbans 1 Oct-01

* Develop pull system with element prep supermarket 3. Crosstrain element assembly operations 2 Dec-01

Module Assembly Loop * Reduce cycle time 1. Analyze process variance in environmental test 1 Oct-01* Reduce variation in cycle time in testing 2. Analyze process variance in module drydown 1 Oct-01* Reduce variation in cycle time in drydown 3. Implement supermarket and kanbans for cell installation 1 Oct-01* Establish pull system with supermarket from cell installation 4. Crosstrain module assembly operations 2 Dec-01* Reduce use of carriers 5. Analyze need for carriers vs. subassembly units 1 Sep-01

Pacemaker Loop * Reduce cycle time 1. Improve assembly methods in final mechancial assembly 2 Dec-01

(Unit Assembly/Shipping Loop)* Establish pull system with supermarket from shipping

2. Review design for manufacturing assembly improvements for tubing assembly 3 Feb-02

4. Set up raw material suppermarket for final assembly 1 Oct-015. Crosstrain unit assembly operations 2 Dec-01

NOTES:1. Conduct kanban and point of use training for plant personnel in 2001.2. Priotities as follows: #1(Complete in 2 months), #2(Complete in 4 months), #3(Complete in 6 months)3. Consider use of teams for implementation after training.

FUTURE STATE IMPLEMENTATION PLAN & SCHEDULE

7. Set up leak tested subassembly units in supermarket for final assembly

6. Analyze material handling reductions and layout improvements for element prep operations

3. Consolidate inspection with final mechanical assembly or shipping/packing

Jan-02

Oct-01

Nov-01

3

1

2

The VSM CycleThe VSM Cycle

Assessment(VSM)

ImplementationPlan

RecommendedSolutions

DO IT!

ContinuousImprovement

Set UpLayoutCellsVisual

Automation

Information Systems

Other VSM ApplicationsOther VSM Applications

Office ImprovementsOffice Improvements

Long Range PlanningLong Range Planning

Build Elements

Assemble &Test unit

FinalAssembly

Shipping

I

C/T = 20 min.

C/T = 5 to 10 days. C/T = 6 to 9 days. C/T = 5 min.C/O = 0 min.Rel. = 100%

1 Operators 1 Operator1 Operator 1 Operator

VariousCustomers

Hardware & Partsfrom

Various Vendors

As Required

Order Entry,Production &

InventoryControl Equipment &

orders

Order as Needed

1 mo.

20 min.

Based on Tracer:3 to 3.5 months, Lead Time

9 to 12 days, Process Time

Value Stream Map (Current State) for Equipment Orders

DailyShipments

1 Operators

5 to 10 days. 6 to 9 days. .75 to 1.25 hr

Assemble &Test Cells

Production &InventoryReports

DailyOrders

Shipping Schedule

Enclosures

1 mo.

2 to 4 months

5 to 10 days 6 to 9 days

Element Material

Annual Forecasts &Monthly Releases

As RequiredAs Required

Quote Requests

Quotes

Quote Status

Invoices

40 min

SubassemblySupermarket

Cell & MechanicalSubassembly Supermarket

Element Supermarket

Aging

I

500 plusRestaurants inManhattan, Queens, and Brooklyn

CONAGRA(White Flour)

Various Suppliersfor specialty flours,seeds, eggs, butter,

and other items

Truck Delivery Every 3 to 5

Days

Weekly Deliveries

Various size orders delivered on 23 routes (early AM), 2 routes (mid-AM), and 10 routes (PM)

Production Control Daily Orders Placedby 4PM (Random Sizes)

DailyProduction

Schedule

Packing SupervisorPrepares and Collates Bags

& Loading Checklist

4Days


Shipments3 Times per Day

Two Flour Silos(70,000 lbs

each)

C/T = 4+ Days C/O = N/A Rel. = 100%

Mix Prep

Six Mixing Stations

C/T = 15-60 min. C/O = 1 min Rel. = 99%

Chunk &Ferment

C/T = 1.5 to 4 hours C/O = 0 Rel. = 100%

Scale & Rest

C/T = 15-30 min.C/O = 0Rel. = 100%

Divide, Round/Mold, & Rest

C/T = 15-30 min.C/O = 0Rel. = 95%

Panning

C/T = 15 min. C/O = 0Rel. = 100%

Proofing

Five Proofers

C/T = 1.75 to 7 hours C/O = 0Rel. = 90%

Oven Prep

C/T = 15 min. C/O = 0Rel. = 100%

Baking

Eleven Ovens

C/T = 0.25 to 1.75 hours C/O = 20 min.Rel. = 99%

Cooling

C/T = 15 min. to 3 hrsC/O = 0Rel. = 100%

Counting, Packing, & Bagging

C/T = 1 to 3 hours C/O = 5 minRel. = 90%

Load &Deliver

C/T = 20 min. C/O = 5 min.Rel. = 100%

I7 to 10 Days7 to 10

Days

OneChunkingStations

ThreeScalingStations

Manual Manual Two Slicers

23 Trucks 5 loaded at a time

Two DividersFour RoundersTwo Baguette

Machines

1.75 to 7 Hrs 0.25 to 1.75 Hrs

Manual

0 Operators 0 Operators 0 Operators3 Operators 1 Operator3 Operators 4.5 Operators 4.5 Operators 6 Operators4 Operators 23 Operators 12 Operators

Weekly orBimonthly Orders

Multi-Month Contractwith Deliveries Arranged

Approximately Every2 to 3 Weeks

Invoices and Route Sheetsto Packing Supervisor(not directly tied to

Production Schedule)

I 1 to 9 Hours

I1 to 8 Hours

15 to 60 min. 1.5 to 4 hrs 15 to 30 min. 15 to 30 min. 15 min. 15 min. 0.25 to 3 Hours 1 to 3 hours 20 min.

1 to 8 hrs 1 to 9 hrs

Feedback onShortages

The VSM Opportunity

Packing SupervisorPrepares and Collates Bags

& Loading Checklist


Oven Prep

C/T = 15 min. C/O = 0Rel. = 100%





Load &Deliver

C/T = 20 min. C/O = 5 min.Rel. = 100%

Manual Two Slicers


Cooling

Manual

0 Operators

Baking

Eleven Ovens

6 Operators4 Operators 23 Operators 12 Operators

Invoices and Route Sheets to Packing Supervisor(not directly tied to

Production Schedule)

I

1 to 9 Hours

I

1 to 8 Hours

0.25 to 1.75 Hrs 15 min.

0.25 to 3 Hours 1 to 3 hours 20 min.


Feedback onShortages

Aging

I

500 plusRestaurants inManhattan, Queens, and Brooklyn

CONAGRA(White Flour)

Various Suppliersfor specialty flours,seeds, eggs, butter,

and other items

Truck Delivery Every 3 to 5

Days

Weekly Deliveries

Various size orders delivered on 23 routes (early AM), 2 routes (mid-AM), and 10 routes (PM)

BakeryProduction Control Daily orders placed

by 4pm

DailyProduction Schedule

4Days

Value Stream Map (Proposed Future State)


Four Flour Silos(70,000 lbs

each)

C/T = 4+ Days C/O = N/A Rel. = 100%

Mix Prep

Six Mixing Stations

C/T = 15-60 min. C/O = 1 min Rel. = 99%

Chunk &Ferment

C/T = 1.5 to 4 hours C/O = 0 Rel. = 100%

Scale & Rest

C/T = 15-30 min.C/O = 0Rel. = 100%

Divide, Round/Mold, & Rest

C/T = 15-30 min.C/O = 0Rel. = 95%

Panning

C/T = 15 min. C/O = 0Rel. = 100%

Proofing

Five Proofers

C/T = 1.75 to 7 hours C/O = 0Rel. = 90%

Oven Prep

C/T = 15 min. C/O = 0Rel. = 100%

Baking

Eleven Ovens

Roll TunnelOven


Cooling




Load &Deliver

C/T = 20 min. C/O = 5 min.Rel. = 100%

I7 to 10 Days7 to 10

Days

OneChunkingStations

ThreeScalingStations



2 DividersFour RoundersTwo Baguette

Machines

1.75 to 7 Hrs 0.25 to 1.75 Hrs

CartsSpiralCooler

0 Operators 0 Operators 0 Operators3 Operators 1 Operator3 Operators 4.5 Operators 4.5 Operators 6 Operators4 Operators 23 Operators 12 Operators

Weekly orBimonthly Orders

Multi-Month Contractwith Deliveries Arranged

Approximately Every2 to 3 Weeks

I 1 to 9 Hours

I1 to 8 Hours

15 to 60 min. 1.5 to 4 hrs 15 to 30 min. 15 to 30 min. 15 min. 15 min. 0.25 to 3 Hours 1 hour 20 min.


Daily ShippingSchedule

with Invoices, RouteSheets

and Pre-Printed Bags

Integrated System using Windows-based Software

Increase Area Available forStaging and Loading

in Building 3 & Truck Parking Area

Increase OvenReliability Add a Roll

Counter

Go to Product Family ProductionWhen Building 2 Becomes Available

DesignatedStaging

The VSM Improvement DailyProduction Schedule


Panning

C/T = 15 min. C/O = 0Rel. = 100%

Proofing

Five Proofers

C/T = 1.75 to 7 hours C/O = 0Rel. = 90%

Oven Prep

C/T = 15 min. C/O = 0Rel. = 100%

Baking

Eleven Ovens

Roll TunnelOven


Cooling



C/T = 1 hr C/O = 5 minRel. = 90%

Load &Deliver

C/T = 20 min. C/O = 5 min.Rel. = 100%



1.75 to 7 Hrs 0.25 to 1.75 Hrs

CartsSpiralCooler

0 Operators 0 Operators 4.5 Operators 6 Operators4 Operators 23 Operators 12 Operators

I

1 hr

I

1 hr

15 min. 15 min. 0.25 to 3 Hours 1 hour 20 min.

1 hr 1 hr

Daily ShippingSchedule

with Invoices, RouteSheets

and Pre-Printed Bags

Integrated System using Windows-based Software

Increase Area Available forStaging and Loading

in Building 3 & Truck Parking Area

Increase OvenReliability

Add a RollCounter

Go to Product Family ProductionWhen Building 2 Becomes Available

DesignatedStaging

VSM & Facility PlanningVSM & Facility PlanningNewtown Current State

Value Stream Map(Items in Red are Future State Changes)

OPP & PESupplier Bensalem Plant

Sys Pro System

ProductionControl Newtown Sales

3 CS rep.

3 Operators

Composition

1 Operator

Proof

Dupont Cyrel2 Operators

Plate Making

2 Stations

6 Operators

Plate Mount

4 Presses

16 Pressmen16 Helpers

Press

I

I I

I

PVCSupplier

Various SuppliersCorrugated Cores,Plate Mtls., Film

Ink Customer

3 Timesper Day

1 Timeevery

6 weeks

1 Timeper

Week

3 Timesper

Week

IBlanch RoadWarehouse

15,033 sq. ft.2 to 3 Weeks

NewtownStaging/Receiving

2 days

Orders

DailyOrders

Daily Schedule

IFlam. Locker

2 Days

I

Ink

Rolls4 Machines

8 Operators

PE SleeveConv./Pack

Daily OrdersFinished Goods

Daily Daily

C/T = 6 hr.

1 Shift48 hr

C/T = 4.5 hrsRel = ? 3 Shifts

C/T = 1.5 hrs

3 Shifts

C/T = 3.5hrRel = ?

C/O = 1.3 hr3 Shifts

C/T = 4.4 hrRel = ?C/O = ?1 Shift

23 Pallets

2 Trailers

2 Days

1 Day

IBlanch Rd.Warehouse

5 days

I

3 Weeks 3.5 hrs

Total Lead Time =29.5 to 31.5 Days

Average Order:6 color/80,000 ft.

1 Machine

3 Operators

PVC Tuber

1 Machine

3 Operators

PVC Rewind

I

1 Machine

3 Operators

StanfordSplicer

I1 Machine

3 Operators

Slitting

OPPWrap Around

I

Ink Trailer1 Week

C/T = 1.8 hrRel = ?

C/O = ? hr3 Shifts

C/T = 1.3 hrsRel = ?

C/O = 1.5 hrs3 Shifts

C/T = 2.4 hrsRel = ?

C/O = ? hr3 Shifts

Rev. 3

CONVERTING

1 hr 4.5 hrs 1.5 hrs

Plates

1 Operator

Image Setting/Neg

CT = 5 min

CustomerApproval

CT = 1 hr.1 Shift 8 hrs. 8 hrs

8 hrs

6 hrs 2 Days 8 hrs 2 Days 1.8 hrs 8 hrs 1.3 hrs 8 hrs

4.4 hrs

2.4 hrs1 Day 5 Days

Value Stream MappingValue Stream MappingHelps you visualize all production flowHelps you visualize all production flow

Links the material and information flowsLinks the material and information flows

Identifies short & long term opportunitiesIdentifies short & long term opportunities

Provides a blueprint for improvementProvides a blueprint for improvementimplementationimplementation

Ties together lean concepts and techniquesTies together lean concepts and techniques

Great communications toolGreat communications tool

Advent Design Corporation

925 Canal StreetBristol PA, 19007

(P) 215 781 0500(F) 215 781 0508

Bill Chesterson

Tom Lawton

Frank Garciawww.adventdesign.com

CEO Automation & Product Design215 781 0500 Ext: [email protected]

PresidentContract Manufacturing215 781 0500 Ext: [email protected]

DirectorPlanning & Productivity215 781 0500 Ext: [email protected]

using value stream mapping as a strategic planning & implementation tool

Documents