waste identification - oshkosh corporation

Supply Chain Academy

Waste Identification

1


Waste Identification Agenda

• Value add and waste

• Waste walk

• Visual management

• Mistake proofing

• 5S

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3

Value Add & Waste


Value Add•Customer is willing to

pay for it•Changes the product or information in some way

•Is done correctly the first time (done once)

Optimize

Business Non-Value Add•Non-value added

activities that are needed to ensure the value

added steps have been properly completed.

Minimize

Non-Value Add•Activities that the customer would be unwilling to pay for.

Eliminate

Value Add (VA) vs. Non-Value Add (NVA)

4

Supply Chain Academy5


Non Value Adding NVA

114 Hours - 95%

VA

6 Hours - 5%

Typical ratio of value-adding activity

Decrease lead time radically by focusing first on reducing non value-adding activity!

If focus is only on reducing value-adding activitiesNon Value Adding NVA

VA

NVA VA

Lead Time4 Days320 1 5

114 Hours - 97.5%

Continuous Improvement Focus

6


Waste: Inappropriate Pricing Excessive Costs Data entry errors Design flaws Processing an order

before it is necessary Waiting for approvals Restrictions of authority

to make routine decisions

Movement of paperwork Unread emails Walking/driving between

offices Generating unused

reports Unnecessary approvals

Value Add: Designing Products Order processing Ordering materials Invoicing

Value And Waste - Office

NVAValue Add: Any task that physically

changes the form, fit or functionof the product or service

The task is done right the first time

Task meets customer requirements

VA

7


Waste: Material handling Walking to get parts Waiting for a part Waiting for a fork-lift Looking for parts Shortages Waiting for the line to

move Waiting for the

overhead crane Picking up tools Hunting for tools Rework Inspection Paint overspray Repackaging Air/Wastewater

emissions

NVAValue Add: Any task that physically

changes the form, fit or function of the product or service

The task is done right the first time

Task meets customer requirements

Value Add: Welding Painting Assembling

9

Value And Waste - Manufacturing

VA


Waste

• Anything that is non-value added (NVA)• Uses resources but creates no value

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11

Waste & Waste Walk

Supply Chain Academy 12


Defects

Cargo door latch not painted on inside of stow box Corrosion – Poor finish

13


Overproduction

14


Waiting – People

15


Waiting - Product

Paperwork waiting in inboxes to be processed

16


Non-Utilized Human Resources

17


Transportation

18


Inventory

19


Motion

20


Customer Requirement

What we think is Customer Requirement

Extra Processing

21


A hands-on activity performed by an individual or group

Physically tracks the specific tasks being completed along the path of a predefined set of process steps

To understand the flow of information, products, materials, and people in completing a customer order..at the source!

To identify waste and immediately resolve the situation

Waste Walk - Definition

22


Waste Walk –Audit Sheet

23


Waste Walk-Let’s practice!

24


Making Toast – Current State

25


Identify at least three examples where you observed one or more of the eight wastes.

Share the opportunities with the group and suggestions for improvement

Waste Walk-Reflection

26


Making Toast – Future State

28


Reference

29



30

Visual Management


What is Visual Management?

It’s a set of techniques aimed to:

• Make waste visible so we can eliminate it and prevent it from recurring in the future

• Make normal and abnormal conditions visible so standards can easily be followed by all employees

• Improve our efficiency by effectively communicating

Visual Management

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Reference

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33

Mistake Proofing


• Why mistake proofing is important

– Customers expect defect free products

– 100% inspection may not provide 100% defect-free products

– Eliminates potential for waste• Scrap• Re-work• Delays / Downtime

34

Mistake Proofing


Reactive Approach

• Mistakes will occur so…– Implement detection /

inspection– Rework errors

• Time focused– No time to implement

mistake proofing but…– There is time to fix mistakes

Proactive Approach• Mistakes can be eliminated

– Focus on process• Understand where errors can

occur• Ask “why”, then “how”

– Implement mistake proofing – Improve

• Show examples• Show it works• Train employees to identify

opportunities and develop and implement mistake proofing

35

Mistake Proofing: Cultures

What is the culture in your facility?


• A simple idea that reduces or eliminates the possibility for defects.

• Prevents people from making mistakes.

• Ensures proper conditions exist before executing process steps

• Performs detection functions, eliminating defects as early as possible

• Can be considered an extension of design/process FMEA

• Involve process operators to obtain ideas

Mistake Proofing: Basic concepts

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37

5S


What is 5S?

• Workplace organization tool

• Helps us create visually appealing, orderly and functional workplace.

• Goal is to enable employees within the work area to identify abnormal conditions that may impact their work.

• Important for both office and manufacturing!

A place for everything and everything in its place!

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http://www.floor-mark.com/images/ex_FloorRed.png


Let take a closer look at the 5S’s

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What does it all mean? 5S, 6S, 5S+1

• Many acronyms/names — one main theme – Visual and orderly workplace– Identifies abnormal conditions that will impact quality, productivity, flow,

safety, etc.

• The S’s: – 5 key steps of the process: Sort, Set-in-Order, Shine, Standardize, and

Sustain– 6S or 5S+1 includes safety

• We will learn the process as we go

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Why do we need 5S?

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Discussion Point

• SORT• SET IN ORDER• SHINE• STANDARDIZE• SUSTAIN

Which S is the most difficult?

43


Why Implement 5S?

Higher productivity

Reduce changeover

Eliminate waste

Reduce machine breakdown

Increased quality

Meet deadlines

Safer places to work

Enhance pride

45

http://www.floor-mark.com/images/ex_FloorBlack.png

http://www.floor-mark.com/images/ex_FloorBlue.png

http://www.floor-mark.com/images/ex_FloorGreen.png

http://www.floor-mark.com/images/ex_FloorRed.png

http://www.floor-mark.com/images/ex_FloorWhite.png

http://www.floor-mark.com/images/ex_AisleYellow.png


Sort:

How many Allen wrenches do we need?

46


Importance of Sort:Separate the needed from the unneeded

• Separate the needed from the unneeded• Problems and annoyances in workflow are reduced• Optimized storage and operating space• Improved communication between employees• Enhanced productivity

47


Implementing Sort – Red Tagging Strategy:Separate the needed from the unneeded

Tag items that have uncertain usefulness in this area

• Is it needed?

No – put in a Red Tag area for disposition

Infrequently – store away from the work area

• If needed – is it needed in this quantity?

Store excess elsewhere

• If needed – does it need to be located here?

Create a Red Tag holding area

• Items stored here for an agreed upon time

• Disposed of if not used within that time

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• Tag items

• Record information on log

• Move item to Red Tag area (2–4 weeks max)

• Communicate Red Tag area to other departments

• Dispose of remaining items after 4 weeks

Contact Red Tag owner to return item to service

Everything needs a disposition

− Go to another department

− Reclaimed because we really do need it

− Sell, donate

− Recycle or proper disposal

Sort:Separate the needed from the unneeded

49


Tagging event should be carried out in a 1 day period

• Evaluation process (two weeks)

Keep item where it is

Move item to new location

Store item away from work area

Hold item in local holding area for further evaluation

Immediate disposition of:

• Defective or excess quantities of small parts and inventories

• Outdated or broken tools, jigs, dies, inspection gear

• Worn-out items

• Outdated: posters, signs, notices, office supplies, computer equipment, forms

Implementing Sort:Separate the needed from the unneeded

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Set in Order:An organized workplace

53


Arrange items so that they are easy to find and use

• Eliminating:

• Motion

• Searching

• Excess human energy

• Excess inventory

• Defective products

• Unsafe conditions


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• Visual control

• Tells you how to do task at a glance

• Identifies location of equipment

• Identifies location of raw and finished materials

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Locate items by frequency of use

• Place frequently used items where needed

• Store infrequently used items away from place of use

• Store items together if used together

Tooling and office equipment (eliminate variety of tools, dies, jigs, and forms)

• Store tools according to function or product

• Function — works best in job shop type of work

• Product — works best for repetitive production

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Improving parts layout

• Worktable was too wide

• Parts stand was too far away

• Parts were laid out horizontally (hard to reach)

• Worktable was made smaller (1/3 width)

• Parts were put within closer reach

• Parts were laid out on a slant (easier to reach)

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5S Mapping

• Make a floor plan of work area

• Show location of equipment, parts, jigs, racks, etc.

• Track the flow of information and movement

• Are there shared printers, copiers, fax machines

• Draw arrow on plan in the order that the operation occurs (number them)

• Analyze map for congested areas, motion waste…

• Create a map with optimal space that uses the least motion waste

• U-shaped cells tend to be more efficient

• In process inventory should be positioned for best flow

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Identifying locations

• Sign board strategy

• Location indicators

• Names of equipment, inventory, department, etc.

• Painting strategy

• Cart locations

• Raw material & office supplies storage

• Outline strategy

• Shadow boards

• Aisles

• Color-coding strategy

• Identifying tools, parts, etc. by color to indicate purpose

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Shine:Enhance workplace pride

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Keeping the work environment clean

• Daily routines – everyone has responsibilities

Problems avoided by shine

• Defects are less obvious in dark and dirty areas

• Spilled liquids may cause slips and trips

• Machines do not receive sufficient maintenance

• Cut shavings can get into production processes and create defects

63


Determine methods

• “Pit Stop” – methods to clean an area in 15 minutes or less

• Creativity of methods – create new ways to maintain the shine using different tools or cleaning products

Provide the right cleaning tools and supplies

• Point of use

• Convenient to allow pit stop approach (<15 min)

Make it a habit

• Schedule to divide up tasks by shift/day of week

• Checklist to provide accountability

• Shift change hand-offs


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Standardize:Synchronizing the operation

• Clear roles and responsibilities, consistently applied

• Training to ensure all know how to apply 5S techniques

• 5S must not become static

• Daily time to carry out 5S sessions

• Standardize: Aisle marking/signs Cleanliness standards Color schemes Cleaning schedules

Develop “Our Way”

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# of Problems Rating Level Audited area: Date

5 or more

3 - 4 Auditing team:

2

1

none

Ca te g o ry Ite m Co mme nts LEVEL

Sort Only needed equipment, tools, furniture, etc. are present

Only needed items are on walls, bulletin boards, etc.

No items are in aisle ways, stairways, corners, etc.

Unneeded supplies, parts, or materials are present

Safe from hazards (water, oil, chemical, machines)TOTAL

Set in Order Correct places for items are obvious

Items are in their correct places

Aisle ways, workplaces, equipment locations are indicated

Items are put away immediately after use

Height and quantity limits are obviousTOTAL

Shine Floors, walls, stairs, and surfaces are free of dirt, oil, and grease

Equipment is kept clean and free of dirt, oil, and grease

Cleaning materials are easily accessible

Lines, labels, signs, etc. are clean and not broken

Other cleaning problems (of any kind) are not presentTOTAL

Standardize Necessary information is visible

All standards are known and visible

Checklists exist for all cleaning and maintenance jobs

All quantities and limits are easily recognizable

How many items can't be located within 30 seconds?TOTAL

Sustain All employees have had 5S training?

Daily 5S is performed every day and shift?

Personal belongings are easily stored?

Job aids are available and up to date?

Monthly 5S Audits are being performed?TOTAL

TOTAL AUDIT SCORE OF 125

5S Audit Sheet - Production

Level 1

Level 2

Level 3

Level 4

Level 5

(Cleaning and looking for ways to

keep clean and organized)

(Maintain and monitor the first

three categories)

(Stick to the rules)

(Distinguish between what is

needed and what is not)

(A place for everything and everything in its

place)

Sustain:Discipline over time

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DefinitionTo maintain discipline, we need to practice and repeat until it becomes a way oflife - Culture

How• Verify through objective evidence that every asset and work center are in

compliance with the best practices of 5S and workplace organization (at any hour of any day)

• Ensure gaps and improvement ideas are listened to and acted on• Ensure “ideal behaviors” are followed

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• Shift/daily/weekly/monthly audit Identify exceptions, discrepancies, and recommendations

• Defined structure for pass/fail

• Visual management

• Standardized work

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5S: Getting Started Tips5S needs identification

• Pull together a group that represents the 5S target area

• 5S kit — labels, tape, paint, and cleaning supplies

• Determine possible needed resources

• Electricians

• Plumbers

• Mechanical specialists

• Preorder any supplies that you may need

• New equipment

• Organizational items

• Reserve training area, if needed

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5S Summary

5S is the foundation to continuous improvement• Identifies abnormal conditions!

Real business benefits happen with a 5S strategy• 5S should not be a single-event mentality• A way of life!

Benefits are both in the office and on the shop floor• Review your computer desktop and files

5S events can be a way to get started on a lean journey• Impressive results the first time• Everyone enjoys a clean, well-organized workplace• Engages employees• Improved 5S leads to safer work environments

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Key Training Takeaways

Visual management is a technique to make waste visible so we can eliminate it and prevent it from recurring in the future

5S is a workplace organization tool that helps us create a visually appealing, orderly and functional workplace

Value added activities are:•Customer is willing to pay for it•Changes the product or information in some way•Is done correctly the first time (done once)

Waste is:•Anything that is non-value added (NVA)•Uses resources but creates no value

DOWNTIME is an easy way to remember the eight types of wastes

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Reference Material

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Value Stream Mapping


Continuous Improvement Tools

– Waste Identification

– Value Stream Mapping

– 5S

– Standardized Work

– Visual Workplace

– Continuous & Cellular Flow

– Takt Time

Customer Supporting Systems/Tools

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• A visual tool used to understand and communicate the steps to change material and/or information for the purpose of creating a product or service that customers are willing to pay for including:

– The flow of value adding activities that serves the customer needs

– The supply-chain from raw materials to consumption

What is Value Stream Mapping

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• It helps you to visualize more than just the single-process level. You can see the flow.

• It helps you see more than waste. Mapping helps you to see the sources of waste in your value stream.

• It provides a common language for talking about a process.

• It makes decisions about the flow apparent, so you may discuss them.

• It ties together lean concepts and techniques which helps avoid random application.

• It shows the linkage between information and material flow.

• It becomes a blueprint for implementation.

Why Value Stream Map?

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RawMaterial

PROCESS

VALUE STREAM

FinishedProduct

PROCESSPROCESSStamping Welding Assembly

Cell

Raw Material to Finished Product

Research Engineering Production

VALUE STREAM

Concept New Product

Concept to Launch

Product Costing

Ordering Accounting Payables

VALUE STREAM

Product Sale

Order to Cash

Three Types of Value Streams

79


Some Lessons Learned

Management must lead the design and introduction of lean value streams

Techniques System Philosophy

• Random use of the toolsis not enough.

• The tools must comprise a system to give customerswhat they want, when they want it, with minimum waste.

• Focus on flow to create asystem.

LeanProcessSystems

SmallLots

PullSystems

LevelScheduling

Standard Operations

Lead TimeReduction

ErrorProofing

P M

Containerization

QuickSet-up

FlowLayout

Transportation

Reduction of

Variation

ProcessCapability

Employee Involvement

W P O

Value Streams and Mapping

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ManufacturingOffice

Value Stream Mapping Examples

81


• Lays the groundwork for creating a strategic plan – Shows us the landscape and helps us see the

path we must take to get from point “A” to point “B”

• Creates a graphic representation of how a business process works

– Shows how material and/or information is linked from one process step to the next

• Helps identify improvement opportunities– Helps us see the waste and potential root

causes– Eliminates the non-value added steps– Reduces wasted resources

Benefits of Value Stream Mapping

82


• Administrative activities are often a major percentage of the total throughput time• Many functions support several services with no clear boundaries and are not well

documented • Harder to identify customer, product and customer value• Waste is much harder to see - more entrenched and hidden

Going Beyond the Plant Level?

83


Identify Value Stream

Current StateDrawing

Action Plan

Future-StateDrawing

Design a lean flow

Identify and resolve gaps

Specific process / product family

Value Stream Mapping as a Living Process

84

Step

1

2 – 3 - 4

5 – 6 - 7

8 – 9 – 10

Understand how the work site currently operatesIdentify improvement opportunitiesData Collection

Implement the planPlan how to get there

Measure the results


• Define value stream (product/process family)– Choose the right value stream – Identify value stream from the customer end– Value stream should pass through similar processes

(administrative/manufacturing)

• Group similar products/processes to determine value streams

Product Process 1 Process 2 Process 3 Process 4 Process 5 Process 6

A x x x xB x x xC x x x xD x x x xE x xF x x x

Product/ Process Step 1 Step 6Step 5Step 4Step 3Step 2

Product/Process/Service Identification

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Action Plan

Future-StateDrawing


86

Step

1

2 – 3 - 4

5 – 6 - 7

8 – 9 – 10

Identify Value Stream Specific process / product family



All objectives must be scoped in relation to the company’s strategic plan

– Pinpoint goals• Use value stream mapping as a tool

Determine Objectives

87



Think in terms of halves and doubles…if it is something bad—cut it in half; something good double it…

Improvement initiatives:• Safety (e.g., identify at least X safety issues)

• Quality (e.g., reduce rework from X% to Y%)

• Productivity (e.g., increase productivity from X% to Y%)

• Reduce lead time from X weeks to Y weeks

• Customer development—improve response time from X to Y

Example Objectives

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Product FamilyProcess Data Box

Data Collection

89



• Cycle time

• Wait time• First receipt quality

• Data sources

• Systems used• Equipment

• Process owner/operator

• Information/data needed or produced

Data Collection for Office VSM

90



• You must understand the current state before you can determine what the future state must look like

• Focus on the most accurate and useful information

• Gather “actual” information—do not rely on “standard” data

• Map only the process, do not be distracted by the exceptions– Collect the issues and concerns for addressing later

• Do not hurry, do it right the first time

• Draw the first time using Post–Its

• Expect to make numerous changes

Draw the Current State Value Stream Map

91


I

CI Starburst (identifies improvement needs)

Typical Icons for Current State Value Stream Map

92

Flow Arrow - indicates Product Flows from one process to another

Push Arrow - indicates Product is pushed into next process

Pull Arrow - indicates Process or Customer pulls Product from previous process or VendorInformation Flow - indicates flow of information regarding Part #, Quantity, and Delivery Schedule

Inventory

Truck ShipmentProcess Data Box

External Sources(Suppliers, Customers, etc.)

Electronic Information FlowSupermarket - small Inventory of Product from which the next Process or Customer may Pull


Takt is:• A German word that

means “drum beat” or rhythm

Cycle time is:• Length of time required to

complete one step or operation in the process

Remember: Operating time does not include TPM activities, breaks, lunches (unrelieved breaks & lunches), 5S, meeting time, or any time the machine or cell is not operating.

Takt Time and Cycle Time

93



Assembly Line:

• Customer requirements

100 vehicles/week or 20 vehicles/day

• Operating Time = 8 hrs/shift

(less 5S, breaks, lunch, etc.) = 7.25 hrs.

Accounts Payable:

• Requirements

220 invoices/week or 44 invoices/day

• Operating Time = 8 hrs/shift

(less 5S, breaks, lunch, etc.) = 7.25 hrs.

Takt Time Calculation Examples

Class Exercise

Takt Time = ( ) X ( )vehicles

= minutes/vehicle

Takt Time = ( )X ( )invoices

= minutes/invoice

94

7.25 hrs. 60 mins/hr.20

21.75

447.25 hrs. 60 mins/hr.

9.89


TAKT = 15 MIN

1

910

18

9

0

2

4

6

8

10

12

14

16

18

20

Stamping Weld Weld Assemble Assemble

Current Cycle Times

Step 1 Step 3 Step 4 Step 5Step 2

• Where is the bottleneck?• Opportunities for improvement?• Sum of the cycle times/Takt = ~ People• 47/15 minutes = 3.1 People

Takt Time Application Example

95


• Where can continuous flow be introduced?• Conduct a Continuous Improvement Event (CIE) to improve the process

with a target of 13 minutes/person• Move the free resource to value-added tasks

13 9 130

2

4

6

8

10

12

14

16

18

20

Weld Weld / Assemble Assemble

After CIE Cycle Times

4

TAKT = 15 MIN

Step 1 Step 3Step 2

Future State Target

96


Identify all potential areas for improvement

• Activities that can be eliminated• Activities that do not add value• High scrap/rework rate

Current State VSM – Example

97

• Long setup/changeover• Excessive hand-offs• Excess inventory• Long wait times


Scrap

Manufacturing Process

Kaizen Lightning

Burst

OutsideSource/

Customer

Data Box

Inventory

I

o o oTruck

Shipment

FinishedGoods to Customer

Push Arrow

Supermarket

Buffer orSafety Stock

Manual Information Flow

ElectronicInformation Flow

Production Kanban

Withdrawal Kanban

Signal Kanban

Kanban Post

Required ToolsValue Stream Mapping Exercise

98


Materials Supplier

Customer

Chassis Body Trim Inspect

Associates Staff

Cycle Time Sec

Sec

Changeover Loss Per Item Sec

Downtime Loss Per Item Sec

Sec

Sec Sec

Sec

Sec

SecSecSec

Transport Time Sec

MRP

ProductionControl

Current Condition Value Stream Map

Queue Sec Queue Sec Queue Sec Queue Sec Queue SecAssociates Staff

Cycle Time SecChangeover

Loss Per Item SecDowntime

Loss Per Item SecTransport

Time Sec

Associates Staff




Time Sec

Associates Staff




Time Sec

Cyc

le T

ime

(sec

)

Station5

101520253035404550556065


TAKT

NVA

VA

NVA +VA = Production Lead Time = Sec

99


• Always collect current state information while walkingalong the pathway of material and information flowsyourself.

• Begin with a quick overview to identify main processes; then go back and gather data.

• Begin at the customer and work backwards.

• Do not rely on information and timing you do notpersonally obtain.

• Don’t map the whole value stream yourself.

• Always draw by hand, in pencil

Value Stream Mapping Tips

100


Process Metrics (CI Specialist Data)

Aver

age

of a

ll O

bser

vatio

ns

Metrics

# Safety Incidents 1# Defects 4

Final Ending Inventory for Chassis (from chassis sheet) $450 Final Ending Inventory for Body (from body sheet) $3,850 Final Ending Inventory for Trim (from trim sheet) $1,200 # Unsold (WIP) at Inspect/Ship 2Unsold (WIP) Inventory Cost $2,400

# Units sold at Inspect/Ship 16Sold Inventory Cost $19,200

# Scrap at Inspect/Ship (found at inspect/ship) 4Scrap Inventory Cost $4,800

# Scrap (Re-inspects) (found by customer) 0Scrap (Re-inspects) Inventory Cost $0

Total Inventory Costs $31,900 # Defective Quads Sold to Customer 0

Re-inspection Fees (# Defective Quads Sold * $1000) $0# Customer Orders Missed 9$ Loss for Missed Orders (# Missed Orders * $600) $5,400

Total Costs $37,300

# Units Delivered & Accepted 16Revenue (# Good Quads Sold * Revenue) $28,800

Total Profit/Loss (Revenue - Costs) ($8,500)On Time Delivery 64%

Business KPIs


Current State Mapping Icons

102

Outside Source

Customer

Step 1: Start closest to the customer and then document every process step upstream (Note cycle time, changeover time, batch size, scrap, etc.)

Materials Supplier

Customer

Chassis

Staff

Sec

Sec

Sec

Sec

Body

Staff

Sec

Sec

Sec

Sec

Trim

Staff

Sec

Sec

Sec

Sec

Inspect

Staff

Sec

Sec

Sec

Sec

ManufacturingProcess

Data Box



103

Outside Source

CustomerMaterials Supplier

Customer

Staff

22 Sec

9.6 Sec

5 Sec

10 Sec

Staff

37 Sec

9.6 Sec

10 Sec

7 Sec

Staff

24 Sec

Sec

0 Sec

9 Sec

1 1 1 1Associates Associates Associates Associates Staff

Cycle Time Cycle Time Cycle Time Cycle Time Sec

0Changeover Loss Per Item

Changeover Loss Per Item

Changeover Loss Per Item

Changeover Loss Per Item Sec

0Downtime Loss Per Item

Downtime Loss Per Item

Downtime Loss Per Item

Downtime Loss Per Item Sec

2Transport Time

Transport Time

Transport Time

Transport Time Sec

4.8

8 Changes X 15 seconds per Change / 25 planned units = 4.8 Seconds at Trim

15

Average of 3 measurements by the CI Specialist

• Based on the die roll, you had a 33% chance of downtime at Chassis and Body only. • So, your Mean Time Between Failures was 3 cycles, statistically.• At Body, the duration, or Mean Time To Repair, was 30 seconds. (Sand timer)• 30 seconds / 3 cycles = 10 seconds on average

OtherOther Other


Step 1: Start closest to the customer and then document every process step upstream (Note cycle time, changeover time, batch size, scrap, etc.)


Material MovementVia Push

Truck Shipment

Inventory

Outside Source


104

Step 2: Track WIP/Inventory upstream and check actual quantities that are on the shop floor

Step 3: Identify push & pull material flow

CustomerMaterials Supplier

Customer


1Associates Staff

22Cycle Time Sec

10Changeover Loss Per Item Sec

5Downtime Loss Per Item Sec

10Transport Time Sec

45Queue Sec 540Queue Sec 90Queue Sec 90Queue Sec 0Queue Sec

1Associates Staff

37Cycle Time Sec



7Transport Time Sec

1Associates Staff

24Cycle Time Sec



9Transport Time Sec

1Associates Staff

15Cycle Time Sec



2Transport Time Sec

• 45 second TAKT time (the customer required a unit every 45 seconds)• Each unit of WIP represents 45 seconds of demand.• 2 units in WIP = 90 seconds worth of sales at Inspect.



105

Outside Source

Customer

Step 4: Map Information Flow: How does everyone know what to do?

Materials Supplier

Customer


1Associates Staff

22Cycle Time Sec

9.6Changeover Loss Per Item Sec



MRP

ProductionControl


1Associates Staff

37Cycle Time Sec



7Transport Time Sec

1Associates Staff

24Cycle Time Sec



9Transport Time Sec

1Associates Staff

15Cycle Time Sec



2Transport Time Sec



106

Step 5: Calculate Cycle vs. Lead time and create the TAKT time chart

Product Idle Time = 765 Sec

Total Station Time = 165 Sec

Product Lead Time = 930 Sec = 15.4 Min

Materials Supplier

Customer


1Associates Staff

22Cycle Time Sec

46.6 Sec



540 Sec63.6 Sec 37.8 Sec

90 Sec17 Sec

0 Sec90 Sec45 Sec


MRP

ProductionControl


1Associates Staff

37Cycle Time Sec



7Transport Time Sec

1Associates Staff

24Cycle Time Sec



9Transport Time Sec

1Associates Staff

15Cycle Time Sec



2Transport Time Sec

Cyc

le T

ime

(sec

)

5101520253035404550556065


TAKT


Product Idle Time = 765 Sec

Total Station Time = 165 Sec

Product Lead Time = 930 Sec = 15.4 Min

Materials Supplier

Customer


1Associates Staff

22Cycle Time Sec

46.6 Sec



540 Sec63.6 Sec 37.8 Sec

90 Sec17 Sec

0 Sec90 Sec45 Sec


MRP

ProductionControl


1Associates Staff

37Cycle Time Sec



7Transport Time Sec

1Associates Staff

24Cycle Time Sec



9Transport Time Sec

1Associates Staff

15Cycle Time Sec



2Transport Time Sec

Cyc

le T

ime

(sec

)

5101520253035404550556065


TAKT

Where is our bottleneck?



Action Plan

Future-StateDrawing

Design a lean flowIdentify and resolve gaps



108

Step

1

2 – 3 - 4

5 – 6 - 7

8 – 9 – 10



Measure the results



Map the Current State

Analyze the Current State and

Design the Future State

Create an Implementation Plan and execute it !

Admitting

I

IIn

Hallway

LEGEND: Electronic Physical Flow Feedback

Blood Draw X Ray Doctor Review Billing

Send to Waiting ALog Time In

Record ValueDraw Blood

Record ValueTake X Ray

Review X RayReview Blood

Log Time OutRecord Values

Retest if Needed

Clinic Supplies

Syringes

X RayFilm

Regional SupplyManager

Clinic Manager

ClinicPerformance

SupplyRequirements

IIn

Hallway

IIn

Hallway

Low MachineReliability

RetestsRandomArrivals

DeliveryWeekly

VP Performance

ClinicPerformance

Re Tests

Waiting Rm B

Capacity 4 PatientsFill Room Next

Waiting RmA

Capacity 4 PatientsFill Room First

Stop if “A” is Full

I

PeopleWaiting

Direct from A only if B empty

X Ray Blood Draw

Record ValueTake X Ray

Record ValueDraw Blood

Dual PathOverflow to B I

InHallway

(avg. wait in “A”)(Transfer A to B)

(avg. wait in “B”)(process time) (process time)

(avg. wait)(process time)

(avg. wait)(review time)

(avg. wait)(process time)

TPCT: 423 MinutesUnknown due to extremevariability of data

C/T 10 Minutes

C/T 12 Minutes

C/T 12 Minutes C/T 13 Minutes

C/T 13 Minutes

NOFIFO !

Lost Patients

C/T 5 MinutesC/T 18 Minutes

10 Min 5 Min 12 Min 13 Min120 Min 40 Min 60 Min 50 Min 90 Min

5 Min 18 Min

7+ Hours

FTQ 50% FTQ 50%

FTQ 50% FTQ 50%

Clinic Supplies

Syringes

X RayFilm

Regional SupplyManager

Clinic Manager

ClinicPerformance

SupplyForecast

FrequentDelivery

VP Performance

ClinicPerformance

Admitting Blood Draw X Ray Doctor Review

Billing

Stage for BloodLog Time In

Record Value

Draw Blood

Record Value

Take X RayReview X RayReview Blood

Compile data frompatient records

Log Time OutPull patients toLevel Schedule

FIFO

Retake if Error Retake if ErrorVerify Results Verify Results

Off-lineOperation

FIFO FIFO

Provide arrival windows forpatients to minimize waiting

(process time) (process time) (process time) (review time)(minimal wait) (minimal wait) (minimal wait)

TPCT: 18 MinutesConsiderably reducedthrough improved flow

LEGEND: Electronic Physical Flow Feedback

2 Min2.5 Min 2.5 Min 2 Min

3 Min 3 Min3 Min

C/T 2 MinutesC/T 2.5 MinutesC/T 2.5 MinutesC/T 3 Minutes

96% Improvement in TPCT

Action Item ResponsibleImprove X Ray Equipment Reliability Sherry Wilson (Med-Tech)

Improve Blood Draw Process Vlad

Technician Training - Verify Test Results Dr. Choi

Implement Use of Patient Record as Data Log Joe Packer (Billing)

Modify Waiting Areas for New Patient Flow Jeremy Monroe (Orderly)

Develop Daily Material Pull with Suppliers Amy Dawes (Regional PCL)

Develop Level Schedule for Patient Arrival Ed Case (Admitting)

- - - 2001 - - - - - - 2002 - - -Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Value Stream Mapping

109


Scrap

Manufacturing Process

Kaizen Lightning

Burst

OutsideSource/

Customer

Data Box

Inventory

I

o o oTruck

Shipment

FinishedGoods to Customer

Push Arrow

Supermarket

Buffer orSafety Stock

Manual Information Flow

ElectronicInformation Flow

Production Kanban

Withdrawal Kanban

Signal Kanban

Kanban Post

Required Tools

Value Stream Mapping Exercise

110


• Production should be scheduled at the pacemaker process– Information flow must support this process

RawMaterial

PROCESS

FinishedProduct

PROCESSPROCESSStamping Welding Assembly

Cell

Production ControlDaily

Schedule

Key Questions to ask: How to schedule production

111

In our build-to-order process, where is the schedule really determined?


Inbound Storage Observations:– Tier 2 supplier consistently delivered material three days early and the facility looks

like a warehouse with an assembly operation running through it– Excess inventory– On-hand obsolete parts means that we sort through inventory to find the right parts

Line Side Delivery Observations:– Unknown usage quantities and usage seams to vary, even though both models seam

to use the same components– Sometimes there are too many parts lineside (wheels and tire carriers)– Sometimes the assembler runs out of parts

Voice of the Material Handler

112


Single Point Scheduling

Change Over Reduction

Pull System

Line Balance

Inspector Repairs

Defects?

KEEP YOUR CURRENT AND FUTURE STATE VALUE STREAM MAPS. YOU WILL NEED THEM.

Material Strategy


Action Plan Components

• % Status: Update this column to indicate the % complete status of the

project, round to the nearest 25%

• 30 Day Focus– 3rd tab in Action Plan Template– Deep dive into details required for the next 30 day success

114


• Implement the plan– Work as a team on action items– Meet on a regular basis for

accountability

• Measure– Review expected results

• Repeat the value stream mapping process

– Monitor new process to achieve sustainability

Measure the Results of the Plan

115



Action Plan

Future-StateDrawing

Design a lean flow

Identify and resolve gaps



116

Step

1

2 – 3 - 4

5 – 6 - 7

8 – 9 – 10



Measure the results



• VSM is a valuable tool to help see opportunities– Helps us to see waste and root causes– Helps us to see customer / supplier connections and related flow

of information and materials– Can be used to help define your strategies– Can be useful for any process to help better define issues

• VSM is useful for factory floors, service industries and offices

• VSM is only effective if the results are implemented and sustained!

• Review the value stream map to ensure it’s up-to-date

Value Stream Mapping Summary

117


Authors: Mike Rother and

John Shock

Reference Material

118


Questions?

119

waste identification - oshkosh corporation

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