QUALITY IN THE TRIANGLE 2007. Welcome! “Value Stream Mapping” Presenter : Pauline Campbell May...

QUALITY IN THE

TRIANGLE 2007

Welcome!

“Value Stream Mapping”

Presenter: Pauline Campbell

May 22, 2007

Logistics

• Starting/Ending Time

• Presentation

• Questions/Answers

Objectives

To use “Value Stream Mapping” to identify waste and areas of improvement in any process and apply Lean/World Class Manufacturing tools to eliminate the waste and improve the process.

• Jobs

• Profits

• Customer Satisfaction

• Teamwork - KEY

The Global Economy Business Model

• What are Value Streams?

• Origins of VSM

• Identifying the Value Streams

• Value Stream Mapping

• The Current State

• The Future State

• Implementing Change

• Roadblocks

Contents

What Are Value Streams?

A Value Stream is the set of all actions (both value added and non value added) required to bring a specific product or service from raw material through to the customer.

Types of Value Streams“Whenever there is a product (or service) for a customer, there is a value stream. The challenge lies in seeing it.”

• 3 enterprise value streams:

– Raw Materials to Customer – Manufacturing

– Concept to Launch – Engineering

– Order to Cash - Administrative Functions

Origins of VSM

Henry Ford is credited with introducing process mapping as early as the 1920’s to graphically display all of the things happening in a series of operations.

The Japanese, and Toyota in particular, are credited with refining and perfecting Value Stream Mapping, which they also refer to as “material and information flow maps.”

Identifying the Value Stream

• The starting point is to learn to distinguish value creation from waste in your whole value stream

• By putting on waste glasses!

• By choosing a product family

• By assembling the team and taking a walk together up the value stream

• And drawing a map of what you find!

Identifying the Value Stream

process level

single plant(door to door)

multiple plants

across companies

Start Here

Value Stream Improvement vs. Process Improvement

Value Stream Improvement vs. Process Improvement

RawMaterial

Finished Product

Stamping

Process

Welding

Process

AssemblyCell

ProcessCustomer

Value Stream

What is Value Stream Mapping?

• A method of creating a “one page picture” of all processes from the time a customer places an order until the customer has received the product

• A visual representation of the flow of material and information across all of the processes - both value adding and non-value adding

Understanding how things currently operate. Our Baseline!

Product/Service “Family”

plan and implementation

Designing a lean flow. Our Vision!

current state drawing

future state drawing

The goal of mapping!

Using the Value Stream Mapping Tool

Value Stream Mapping Icons

Process

Customer or Supplier

Plant

OEE

Data Box

I

Inventory

Pull Push

KaizenBlitz

Look-See

ManualInformation

ElectronicInformation

Supermarket

KB

Kanban

FG To Customer

Shipment

Four Steps to Value Stream Mapping

1) Pick the product or product family to map (improve).

2) Create the “Current State” VSM.

3) Create the “Future State” VSM.

4) Develop an action plan to make the FS VSM the CS VSM.

Step #1 Pick the Product or Product

Family

• Criteria for selection:

– Competitive pressures are high OR– Customer satisfaction is low OR– Product represents the largest share of the sales

volume

Step #2Creating the “Current State”

VSM

• Form a team and select a team leader

• Educate the team in VSM

• Decide the scope of the Value Stream Map. Brainstorm an initial map.– Agree upon the symbols, icons, and data to use– Go see the process

Step #2Creating the “Current State”

VSM

• Determine Missing Information the VSM Requires

• Make Assignments to Gather and/or Create As Much Information About Waste As Possible.

• Build The Current State VSM– Use Problem Solving Tools As Needed

– Make NO Assumptions

What Data Does the Team Need?• C/T - Cycle Time

• C/O - Change Over Time

• Uptime (% machine is available)

• Top Three Reasons for Unplanned Downtime

• Production Batch or Transfer Batch Size

• Number of People: by type, classification, at each operation

• Number of Product Variations at each operation

• Pack Size/Standard pack Quantity

• Operating or Working Time Available (minus breaks, etc.)

• Scrap Rate

• Rework Percentage

• First Time Capability (FTC)

• Top Three Defect Causes

• Average Days Supply in Inventory between operations

• Queue Time between operations

• Source of Schedule - Information for each operation

• Distance between operations

• Time for material to travel between operations

• Over time worked by operation (average weekly or monthly)

• PM’s planned versus completed by operation

8 General Types of Business Waste

“Eliminating manufacturing waste is not the problem, identifying it is.”

Taiichi Ohno,

Developer of the Toyota Production System (TPS)

Winding#480500

3 coil Transf

SecSecFeet

C/T 20880C/O in C/T

Dist 60

Stack #480500

Material Transfer

FeetCoilsSec

704

64800

Stacking Lams

SecSecFeetSec.

21600 VAC/O 0Dist 12

Rework 750

Green Test#480500

Test Units

SecSecSecSec

2100 VAC/O 0

Dist 180Rework 1200

Weld#480500

Weld Unit

Sec.Sec.FeetSec

1500 VA300 NVA

Dist 0Rework 300

Material Trans

FeetSec

453600

Material Trans

FeetSec

1030

Varnish, Dip, Bake#480500

Dip

SecSec.Feet

C/T 37500C/O 0

Dist 146

Material Trans

FeetSec

203600

Final Assembly#480500

Final

Sec.Sec.

1800 VA1320 NVA

Material Trans

FeetSec

6017640

Final Test #480500

Name

Sec.Sec.

420 VA30 NVA

Material Trans

Feet18Material Trans

Feet10

Professional Electric – OEMCurrent State Value Stream Map

Cross Ref. Part Numbers w/ Spreadsheet

Name

Sec450

Name

Sec60-600

Verify Order in Oracle

Manual vs System Look up

Name

Sec.15

Order In System

Enter New Order

Add A line to release

Name

Sec40

Name

Sec40 - 300

Notify Shipping to run Pick Release

Name

Sec10

Cust. OrderFax Arrives @ Switchboard

Feet51

Hand Carry to CSR

Sec30

Hand Carry to CSR

Sec30

Name

Sec60-900

Yes

No

Stamp the P.O. and Sign

Name

Sec10

File the PO in Tub

Name

Sec10

Powerware to add Acme Part Number to their Faxed Order

MRP Run in Oracle

Sunday Night

Monday AM- Go into Oracle

Separate out Parts by Buyer

Name

Min.30

Look at Lead times on materials, # 17

production classes – 3 People – 30 Min per

Class

Name

Sec30600

Name

Sec900-1200

if Material Needed – Purchase Requistion Done in Oracle – 6

Supplier

No Action Taken

Yes

No

Tues, All P.O.’s print in Data – Brought to June E. around 8:00

Goes down to another Department to Get P.O. that is Printed ??? WHy

Review by Marie at 8:00 Give to Linda to

Separate, Linda Gives to Buyers

Can Marie Separate and Distribute – Cut

out third Person TIME ???

Name

Feet255

Name

Sec1800

TIME?Time for Linda to

give to buyer, Who does this

when Linda is out ?

Separate P.O. (Carbons) Stamp, Fax, Average 7 to

Copy (170 Min to Fax All )

Name

Feet150

Hold to rec’d confirmation Fax , copy or email . Check in system by P.O. number

Name

Sec300

Goes to another area to make copies

If you need to make a change, Revised P.O.

prints the next day

Name

Sec1440

Notify Supplier, Change put into

file

Yes

NoName

UnitValue

Error in Pricing – Go to Cabinate, Change 3 screens in Oracle

(50 Sec. line)Correct, then print &

FAX after making copy

Name

Sec50

Expedite – if no material, Look in system for other suppliers, Call to Verify they have

Name

Sec45 OutsideSource

Decision

No

Create manual

P.O.

Name

Sect120 – 180

Rejected Material – Bring inspection Report to June

June Review if we can Use ?? With Engineering

YesName

Sec1800

No

Fax Copy of Inspection Report to Supplier – Request

RMA

When RMA Rec’d Issue Debit Memo

Completed, AP forms completed and given

to APName

UnitValueName

UnitValue

Package sent to shipping for return, Purchasing copy

returned to close loop

What is returned to Purchasing to close

loop? Time?

Name

UnitValue

Name

UnitValueProcurement / MRP36 + 5 Steps = 41 Total

NVA 64895 SecVA 9300 Sec.

3361 Feet

Phil Uses Powerwares POX report. Down loads

from their Internet site on Monday

MPS report - Rec’d on Monday or Tuesday

Via email

Compares the two to of our history of sales

Name

Sec3600

Name

UnitValue

Name

UnitValue

Goes into Barney Smith to see forecast, Make adjustments if

Necessary

Name

Sec3600

If he make adjustments,

Safety Stock – Calculate Back Oct.

05 – No update since

Name

Sec900

Receiving14 Steps


2334 Feet

Materials come in, Someone get bill of Lading from driver,

Checks it off

Unloads Truck, Puts parts in staging area

for inspection,

If Coil – Goes directly to Dept 753

Time ?? Distance??

Check Material per Print, Use incoming Inspection criterion form Q3 guidlines

Name

Sec900

Name

Sec900

Name

UnitValue

Does Material Match print?

Material Movement Requisition is completed (3 Part form) Pink and

white goes with Material, Green copy goes to Clerk’s office after material is

on location

Rejected Completes form 9250-Z Copy of report goes to John, Larry and Pauline

No

Yes

Name

UnitValue

End of day the green copies are taken to

clerks office, Filed by Part number

Name

Sec.1200

When all inspections completed by Connie – Keyed into oracle by

Packing slip

Name

Sec1800

Issuing Material to Floor

10 Steps

Group Leaders / Supervisors, Bring KanBan

cards or Pans Four Department - #753, #771,

#768, #769

Put Cards on Board, Take cards to

Computer or location box, Check Stock

10 Min to pull Material, Take to floor with Kanban

Cards AttachedSheet Completed on what was

pulled & what department it went to “Sub Inventory

Transfer” sheet completed, key into Oracle

Out of material : Shortage sheet completed, Sent to purchasing, This sheet is completed throughout the

day and taken the next morning to Purchasing

Name

UnitValue

Depart Feet753 60761 6660768 177

Name

Sec600

Name

Feet360

Accounts Receivable15 Steps

NVA 242555 Sec.VA 18390 Sec.

5670 Feet

AM – Shipping copy of Bill of Lading & copy of S/S from

Previous Day Shipping

Name

UnitValue

Name

Feet30

Pull out powerware invoices and hand delivery to Debbie

Name

Sec.Value

Name

Feet30

Hold (24 Hrs)Until line detail payment received

by Powerware . Received email of a line

detail Item #, P.O. # , Qty and cost

Name

Sec.86400

Debbie has to take line detail & Reformat Pulls up email, Excel

Spreadsheet attached, Gives to

Karen

Karen Writes Inv. # on Excel Spread sheet to match to the waybill #,

Files again by line number detail #Hold

off for payment

Match bill label to Invoice by Pack

number, Check to see that invoice is the

same as packing slip

Name

Sec.600

Name

Sec600

Name

UnitValue

Name

Days12

When weekly bank deposit is received go to file & pull out line

detail # to total of line detail verified to Debbie’s paperwork then apply payment (15 Min.) in oracle. Check Number keyed &

amount

Name

Sec1800

Enter Inv. # being paid, Home in system. Batch closed reports Ran

applications register, Adj. & discount report. Verifies file by Bank. Stay till month end if no Discrep. ,put in hanging folder after month end (15 Min.) Run

Debt & Credit report

Name

Sec900

Research Ch Debit # to see if it matches RMA, I cannot find go to RMA CLERK , If

pending set up credit memo, If pending set up debt.

Memo (15 Min.)

Name

Steps30

Karen to match line detail to invoice

shipping file, (15 Min), Debbie emails powerware to advise decrep. Copy of email attached to paperwork

Name

UnitValue

Research Ch Debit # to see if it matches RMA, I cannot find go to RMA CLERK , If pending set up credit memo, If pending set

up debt. Memo (15 Min.)

Received payment detailed report, All put

back into file until payment is recieved

Name

Week1

Name

UnitValue

Contact Kathy – Powerware – She has

to contact other people They have to

correct in their system before payment is

made to us.

Name

Sec.120

Accounts Payable13 Steps

NVA 260945 Sec.VA 18390 Sec.

1170 Feet

Invoice received through the mail, Dated and

entered into Oracle and reviewed for Accouacy (3

Min / P.O.)

Name

Sec.1440

Filed into open file and holds until

Payment

Name

Sec.5

Name

Sec.30

@ times week , run invoice do report (10

Min.) then review report (10 Min),

Name

Sec.1200

Travis reviews signs (10 Min)

Name

Steps120

Name

Sec.600

Checks are run,Judy pulls off printer and runs through Signature machine

( 15 Min.) Checks over 30 K hand carries to Travis for Sign, After check are run, Final check report is run to

match against check to Travis

Name

Sec900

Name

Sec120

Judy sep. checks duplicate is attached

to invoice and the original is mailed 20 Min. Hand carried to Mail room (30 Sec.)

38 Steps

Name

UnitValue

Decrepancy – Put on a log (1 Hour), If receiving issue it is faxed to John Larry,or

Purchasing Issue it goes to Marie in Purchasing (50 Steps , 45 Sec. ) 5 Min to

process fax.Name

Days2

Original invoice is pulled (10 Min)

Feedback is req. then it take 15 Min. to

attach correction and file

Decrepancy

No

Yes

Name

UnitValue

Name

UnitValue

Order Entry Process47 Steps

NVA 10735 SecVA 0 Sec.814 Feet

Send eMail w order detaill

Name

UnitValue

Stamp the P.O. and

Sign

Name

Sec10

File the P.O. in the Tub

Name

Sec10

CSR Receives sales order Acknol. ( 15

Sec.)

Name

Feet51

Pull P.O. from Tube & match with SOA

Name

Sec.25

File in Close file – (51 Feet)

P.O. CompletedYes

No Name

Sec60

File in TubName

Sec10

Order shortage

report

Name

Sec1800

Separate out By Mat’l class to

Buyers(20 Min.)

Name

Sec.1200

Buyers Reviews

Name

Sec.7200

She folds ,mails to Customer (30

Min).

Name

Sec.1800

RMA Process

Download Daily Sales order report –

DOS batch File

Name

Sec.120-180

Scheduling15-36 Steps

NVA 32520 Sec.VA 0 Sec.100 Feet

Print Daily Order Sheet (15 Feet

Dist)

Enter order into sales order Prog.

Sheet/Dailrun

Name

Sec60

Name

Sec1800

Schedule in Spreadsheet from

Netting Report

Name

Sec3600 - 5400

Import Dailrun & Schedule into

Access

Name

Sec.300

Run Shortage report in Access

and Print - Obtain Report

Name

Feet15

Name

Sec120

Run Manning Numbers

Shortages

Pass Shortage to Purchasing for investigation

Populate shortage hot list on P: Drive (5-30

Min)

Name

feet10-50

Name

Sec300-1800

Purchasing Investigation & Reports back

Name

Sec3600-7200

Keep on Schedule

No

Yes

Yes

Make Note in Speadsheet when

parts done

Purchasing Verify Price, If supplier is correct then give to Receiving (30 Min.)

Ask receiving to back out of system , June will correct (5 Min.)

Receiving – John Larry check packing slip to invoice in Computer if

correct then he Judy in A/P to get a proof of del. ( 10 -15 Min.)

Name

Sec60

Enter Minutes into staffing report

Name

Unit900-1200

Name

UnitValue

June Tells receiving to entry back into system

(15 Min.) , Joh is another 5 Min.)

If supplier is wrong June calls them and asks for a credit and rebill – (2-3 Days), Attched to invoice copy and walks it down to Judy in A/P

If it is incorrect because of him then it

will take 10-15 Min. but they correct in

Computer

Name

UnitValue

Name

UnitValue

Name

UnitValue

Name

UnitValue

Name

UnitValue

Purchasing will advise A/P of correction and walk from Purchasing

to A/P

Name

UnitValue

Review Manning 3-5

Min.

NoYes

Name

UnitValue

Print Manning report

Name

Sec120

Print Daily , Cals Run, Lam, & Make Parts

Name

Sec300

Cut Jobs 30-40 Min.

Update jobs due from Previous Day 10-15

Min.

Name

Sec.600-900

Name

Sec1800 - 2400

Work order Routing Distribution

Link Files to eliminate entry into Prog. Sheet/Dailrun

Schedule to match forecast capacity

Move to Stock 5 Steps

NVA 2680 Sec. VA 0 Sec280 Feet

Pick up unit from the line& put into location

(2-3 Min) 220 Ft

Take top copy of move ticket (5 Sec.)

Name

Sec5

Name

Sec120 - 180

Give move ticket to shipping Clerk , 60

feet

Name

Sec60

Clerk enters units in oracle

Name

Sec120-3600

Run Log of Yesterday’s moves and compare to to

move tickets (25 Min. + 3 min. to run

Name

Sec1680

Review ticket for larger Qty ??? Need

to hand writeBar Code ea.

Product to Eliminate

Validate during Entry

Shipping30 Steps1

310 FtNVA 130,360 Sec

VA 2490 Sec.

Run Ship set in Oracle (30 Sec.) every 30-40 Miin

Wait for Printing

3-30 Min.

Name

Sec1800-2400 Name

Sec180 - 1800

Get Weight from Chart, Mark out Ship set – 1 Min

Name

Sec60

Receive call from CSR, Run Ship Set again

Name

Sec10

Calc & print weights on Ship

Set

Manually compare end day ship set to other powerware (2-

3 Min.)

Name

Sec120-180

Have Oracle run ship sets periodically

without prompting

Close Extra ship sets in oracle (2-

3 Min.)

Name

Sec120-180

Re-pick powerware S.S. & Print

Name

Sec180-300

Validate Wts. To sheet (1

Min) – Add Wts. & Pcs (2 Min.)

Hand write sheet w/ Units & counts for

availability verification (10 Min.)

Weight Ok ?

Call CSR to see what can be removed

(3 Min.)

No

No

Yes

Close items out of Ship

sets (30 Sec.)

Name

Sec600

Exchange Verification

sheet w/ driver, lift (2 Min.)

Name

Sec120

Stop Doing Handwrittten

verification sheets

Lift driver visually verify units available in

Location (2-5 Min)

Name

Sec180-300

Take Confirmation to office (2

Min.)

Tye of Bill of lading w / DOS based program

(3-5 Min.)

Name

Sec180

Name

Sec180-300

Confirm ship set in Oracle

(4-5 Min)

Make copy of ship set

(2 Min.)

Name

Sec240-300

Name

Sec180

Jimmy Takes Ship sets to

A/R

Name

Sec300

Name

Sec.57600

Give driver copy of BOL & Ship

set

Name

Sec15

Run Oracle report, Check SS

(1 time /day)1 Min. time

Help Truck Driver Back into Dock(5 Min.)

Check Ship set VS report and set in numerical order

( 1 Hr)

Name

Sec60

Name

Sec3600

Load Truck (5-60 Min.) 110 Feet

Product loaded is verified by another fork driver (5 Min)

Name

Sec300

Name

Sec300-3600

Name

Sec300

Cheker has Driver sign

BOL, Initial (3-4 Min)

Name

Sec180-240

Walk up front and file Ship Set (1 Day – 600 Ft

Name

Sec3600 Name

Sec300

Name

Sec3600

Driver Leaves paperwork in office door

Drop

3 Hole punch and file BOL in Binder

3-4 Min.

Name

SecValue

Name

Sec180-240

Name

Sec600

Walk to Printer, Pull off, 50 Feet , 5 sec+ 5 Sec each way C/T 24

Sec

Name

Sec24

Burst and Edge acknowledgement

(15 Min. – 3 x day) 5 feet

Name

UnitValue

Fold , copy SOA (5-10

Min) 3 X day 30 feet

Name

UnitValue

Pass to Switch Board (20 Sec.) 85 ‘

Stuff SOA(10-30 Min.)

Carry to Mail room ( 90 Sec. 145

Feet)

Name

UnitValue

Name

UnitValue

Switchboards Sep & Dist (10 Min.) 51 Feet

Walk to Printer & remove invoices (10 Sec) 30 Ft

Weekly Set up of automatic invoices & Ack. (4 Min. – 2 each

Name

SecValue

Name

Sec600

De- Collate (10 Min.) , 5 Feet

Name

Sec600

Take invoices to Machine & Burst (10 Min. 5 Feet)

Name

Sec600

Move inivoices to Sabrina

White (65') (10 Sec)

Name

Sec10

Distribute Invoices , Pink to Vicki (85') 20

Sec

Name

Sec600

Remove Debits (c/t 3

Min)

Separate Invoices by CSR C/T 3

Min.Name

Sec20

White to CSR to Pull Powerware (3 Min.)

Dist – 55 Feet

Name

Sec600

Name

UnitValue

Pink To customer service for filing w

P.O. SOA (3 Min. 51 Feet

Scheduling

Winding#104238

Sub Assembly Six Bus Bars

#104238

Name

Sec1440

Name

SecSecSecFeet

5400 VA240 NVAC/O 2700

Dist 60

Material Trans

FeetSec

10300

Stack #104238

WIP

UnitValue

WIP

UnitQue

FeetSec

160 604,860

WIP

UnitValue

Material Trans

FeetSec

60300

Material Transfer

FeetCoils

1004

Stack cokes and reactors

SecSec

5400 VA300 NVA

Green Test#104238

Test Units

Sec.Sec.

180 VA360 NVA

Weld#104238

Weld Unit

Sec.Sec.

180 VA144 NVA

Material Trans

FeetSec

203600

Material Trans

FeetSec

303600


Dip

SecSec.FT

C/T 20760C/O 0110

Material Trans

FeetSec

403600


Final

Sec.Sec.

360 VA0

Material Trans

FeetSec

5049068

Final Test #104238

Name

Sec.Sec.

60 VAC/O 0

Material Trans

FeetSec

40300

Pack#104238

Material Trans

Feet10

Material Trans

FeetSec.

17064800


#480500

Name

SecSec

C/T1440C/O 0

Material Trans

FeetSec

10300

WIP

UnitValue

WIP

Unit

Que

Feet190

WIP

UnitValue

Material Trans

FeetSec

80900

Lam Cutting#480500-3

Name

Sec5400 VA

WIP

UnitValue

Material Trans

FeetSec

43078120

WIP

UnitValue

Cut “t” Rod Included

FeetSec

4501800

Oracle Back Flush

After Stack

SecC/T 130


Name

SecSecLbs

C/T 3600C/O 1800

225

WIP

UnitValue

Material Trans

FeetSec

17082800

WIP

UnitValueMaterial Trans

FeetSec

1060

Point of use Inventory

UnitValue

Name

UnitValue

Material Trans

Feet150

Stack Choke

Make Steel

Sec.C/T 2340

Material Trans

FeetSec.

50 300

WIP

UnitValue

WIP

UnitValue

WIP

UnitValue

Material Trans

Feet42 Pack & Pre-Pack

Name

Sec1800 VA

Oracle Wind Back Flush

Name

SecC/T 30

Operations60 Steps

NVA 782346 Sec.VA 132820 Sec.

3012 Feet

Eliminate DFT Scheduling

Point of use Inv.

Eliminate WIP

Move Process Closer

Point of use Inv.Eliminate WIP

Move Process Closer

Mount Base

Name

Sec.SecSec.

900 VA300 NVA

Rework 300

Move File Cabinets Closer

Stop Sending Daily Order Summary E-

mails

Perform some level of Price Verification

Change Fax # to Diane’s

Electronic Data Exchange

Name

Sec600

Name

Sec600

Name

Sec600

Name

Sec900

Don’t Consolidate

ship sets

Hold Powerware ship sets to end of

day to run

Electrical BOL signoff

Get another dock and move

dumpster

Get a better copier

Get 3-part forms for ship

setsEliminate the verification of units available

Automate BOL completion

Link Files to eliminate entry in

manning table

Why not deliver direct to work area

Eliminate manual keypunch?

Why 2 reports?

Why not electronic

Why Manual?

Electronic or other PO format?

Why print in data?

Can’t program do this on it’s own?

Reports pre-sorted by material class?

Why print and copy? Why not fax?

Confirmation really needed? E-mail?

Why manual process

Why walk?

Eliminate re-format?

Why manual

delivery?

Why walk?

Why walk Distance?

Why walk?

Why walk?

Why any hard copies?

Why paper copy? E-mail.

Move brazing closer, build to

order

Eliminate from daily coil

Eliminate winding

backflush

Improve lead cooling method,

fix O2 gen.

Reduce c/t, add helper

Move parts closer, build to

order

Move parts closer & arrange

Eliminate work order

Add Steel and size to lam sheet

UV Cure Varnish

Replenish with kanban,

eliminate form

Move pack closer



eliminate form

Point of use Inv.

Eliminate WIP



fix O2 gen.


order


Move lam cutter closer to

stack


stack

Change pallet to fit decoiler


Eliminate cut sheet, build to

order

Purchase and install band saw

to cut t-rods

Move final test closer

Point of use Inv.

Move final assembly closer

to varnish

Shorten distance to varnish room

Fix bowed purchased

plates

Eliminate green test

Find a method to test once

Move stack closer to

green test

Purchase glue

dispenser

Develop consistent core

tube ID

Stack on multiple shifts

Fix misaligned holes on top

bracket

Move Process Closer

Move weld closer to varnish

Eliminate post-it note for every transformer

Move chokes closer

Set up jumper kanban in WIP

Eliminate kanban on

104238Move C/R

pack closer to TFMR pack

Point of use


Point of use Inv.


to varnish


Move parts closer

Move mat’l closer to cutter

Move final assy closer

Eliminate lead

substitution

Fix kanban qty. on leads

Move final line closer to oven

Move one oven closer

to dip

Material Trans

Sec3600Sec3600

Name

Sec.Sec.

Ft

60 VAC/O 0

10

Queue

Sec81000

Name

SecValue

Order Entry Scheduling Purchasing Receiving Accounts PayableProduction

Accounts ReceivableShipping

10735

170

32530

9300

55595

3420

92980

5670

97580130550

2490132820

242555

18390

649526

Winding#480500

3 coil Transf

SecSecFeet

C/T 20880C/O in C/T

Dist 60

Stack #480500

Material Transfer

FeetCoilsSec

704

64800

Stacking Lams

SecSecFeetSec.

21600 VAC/O 0Dist 12

Rework 750

Green Test#480500

Test Units

SecSecSecSec

2100 VAC/O 0

Dist 180Rework 1200

Weld#480500

Weld Unit

Sec.Sec.FeetSec

1500 VA300 NVA

Dist 0Rework 300

Material Trans

FeetSec

453600

Material Trans

FeetSec

1030


Dip

SecSec.Feet

C/T 37500C/O 0

Dist 146

Material Trans

FeetSec

203600


Final

Sec.Sec.

1800 VA1320 NVA

Material Trans

FeetSec

6017640

Final Test #480500

Name

Sec.Sec.

420 VA30 NVA

Material Trans

Feet18Material Trans

Feet10


Final

Sec.Sec.

360 VA0

Final Test #104238

Name

Sec.Sec.

60 VAC/O 0

Material Trans

FeetSec

40300

Pack#104238

Material Trans

Feet10

Material Trans

FeetSec.

17064800


#480500

Name

SecSec

C/T1440C/O 0

Material Trans

FeetSec

10300

WIP

UnitValue

WIP

Unit

Que

Feet190

WIP

UnitValue

Material Trans

FeetSec

80900


Name

Sec5400 VA

WIP

UnitValue

Material Trans

FeetSec

43078120

WIP

UnitValue

Cut “t” Rod Included

FeetSec

4501800

Oracle Back Flush

After Stack

SecC/T 130

WIP

UnitValue

WIP

UnitValue

WIP

UnitValue

Material Trans

Feet42 Pack & Pre-Pack

Name

Sec1800 VA

Oracle Wind Back Flush

Name

SecC/T 30

Move Process Closer

Move Process Closer

Mount Base

Name

Sec.SecSec.

900 VA300 NVA

Rework 300

Move brazing closer, build to

order

Eliminate winding

backflush

Reduce c/t, add helper

Move pack closer



eliminate form

Point of use Inv.

Eliminate WIP



fix O2 gen.


order



stack


Purchase and install band saw

to cut t-rods


Point of use Inv.


to varnish

Shorten distance to varnish room

Fix bowed purchased

plates

Eliminate green test

Move stack closer to

green test


Fix misaligned holes on top

bracket

Eliminate post-it note for every transformer

Move chokes closer

Set up jumper kanban in WIP

Eliminate kanban on

104238Move C/R

pack closer to TFMR pack

Point of use


Point of use Inv.

Stack on multiple

shifts

Move final assy closer

Eliminate lead

substitution

Fix kanban qty. on leads

Move final line closer to oven

Move one oven closer

to dip

Material Trans

Sec3600Sec3600

Name

Sec.Sec.

Ft

60 VAC/O 0

10

Professional Electric - OEM Current State Value Stream Map

The Current State

• Typical Results– 80 – 90% of total steps are waste from standpoint of end

customer.– 99.9% of throughput time is wasted time.– Demand becomes more and more erratic as it moves

upstream, imposing major inventory, capacity, and management costs at every level.

– Quality becomes worse and worse as we move upstream, imposing major costs downstream.

– Most managers and many production associates expend the majority of their efforts on hand-offs, work-arounds, and logistical complexity.

What Is Value Added Criteria?

1. The Customer is willing to Pay for it.

2. Physically changes the Part or the Process.

3. MUST be done RIGHT the first time.

Cost/Benefit Analysis The intent here is to prioritize the improvement opportunities.

HIGH

BENEFIT

CO

ST

LOW HIGH

LOW

Step #3Create the Future State VSM

• Focus on “low cost” or “no cost” improvements• Identify all potential improvements with “lighting

bolts”• Verify management support and gather ideas from

the Team• Develop goals for each targeted area of

improvement• Draw the future state map

Step #3Create the Future State VSM

• Activities aligned with our business strategy

• Efforts focused on NET improvements for the company

• Metrics supportive of fundamental change

• Simple, constant communication of our plans and achievements as an enterprise

Match?

NoYes

Professional Electric – OEMFuture State Value Stream Map

Order Entry Process6 Steps (1 OE & 5 Invoices)NVA 1355 Sec (0.37 Hrs)

VA 0 Sec.88 Feet

Procurement + Forecast / MRP10 + 4 Steps = 14 Total

NVA 40440 SecVA 6300 Sec

0 Feet

Order arrives via EDI and

automatically creates new

order in Oracle

Suppliers confirm pricing within 24 hours

of shipment

Buyers match pricing to PO

Run one MRP report (includes order shortage &

separate by material class

Generate electronic PO’s,

reviewed by buyers on network

Buyers review leadtime to determine

material needs

E-mail PO’s to suppliers

Sec600 Sec0 Sec1800 Sec1200 Sec30,600 Sec1800

Buyer amends PO, e-mails

supplier

Done

Sec1440

Powerware Truck

Shipping8 Steps 710 Ft


Run Ship Set that prints with

weights

Hand Carry front and file Ship Sets – 600 ft

Sec300

Confirm Ship Set

Sec240 to 300

Sign off Bill of Lading with

trucker electronically

Sec180 to 300

Load Truck

Sec300 to 3600

Give Bill of Lading to Truck

Driver

Sec60

Type up Bill of Lading

Sec240 to 300

Separate ship sets

Sec60 Name

Sec600

Name

Sec240

Customers


220 FeetNVA 170 Sec.

VA 0 Sec

Bar Code Unit into Inventory

Sec20

Move 220 ft to Stock

sec120 to 150

De-collate Invoices – 5 ft

sec600Sec10

Separate out powerware

invoicesBurst Invoices

sec120Sec600

Hand Cary to Machine

ft5

Walk to printer and remove daily print of

invoicesHand Cary to

A/R

Feet78

Oracle System/ MRP

Rejected material

No

Yes

Receiving8 Steps


939 Feet

Purchasing electronically

asks supplier for RMA

Purchasing review material with engineering

for TMD

Form Q250Z completed & forwarded electronically to

receiving, quality and purchasing

Material delivered direct

to work cell

Inspection per print – material

passes bar code scan into oracle

Material comes in – Bill of

Lading scan by bar code

639 Ft

Sec900Sec800

100 Ft

Sec1800 Sec1600

200 Ft

Sec1800Sec180

Done

Discrepancy?

No

Yes

Accounts Payable 9 Steps

NVA 1805 Sec.VA 4140 Sec.

0 Feet

Sec1440 Sec900Sec900Sec900Sec1800Sec5

Invoice received electronically –

entered into Oracle & viewed

for accuracy

IfF incorrect, receiving will correct

in system. Electronically advise

AP

Receiving check packing slip to

invoice – if correct, request POD

Checks electronically

processed & sent

Invoice due report run twice

per week. Reviewed then

approved by Controller

File into open electronic file and hold until

payment

Done

Controller and A/R in same location

Sec180

Cut Job at Manufacturng, print in shop

Pull Kanban from unit at

shipping when shipped

Scheduling3 Steps


VA 0 Sec.

Carry kanban 250' to line

Sec90 Sec120

Suppliers

Suppliers

Change safety stock if

adjustments made

Make adjustments in Focus Forecast

if necessary

MPS Report received Mon or Tues via e-mail

Download Powerware POX

report on Monday

Sec900 Sec3600 Sec0 Sec3600

Operations44 Steps

NVA 72278 Sec.VA 132820 Sec.

390 Feet

EX-480500-3SManufacturing Cell


Debits and Discrepancies

?

No

Yes

Done

Accounts Receivable10 Steps

NVA 3960 Sec.VA 2700 Sec.

60 Feet

Sec0 Sec180Sec900Sec900Sec1800Sec1200Sec600Sec180

Ship set & Bill of Lading e-mailed

to A/R

File payment detail report –

until payment is received

If no RMA, set up debit memo. Match line detail to inv. E-mail Powerware

of discrepancy

Search debit # then RMA

Receive bank deposit, verify of

line detail and apply payment

A/R keys in Waybill# into Oracle & matches

to Powerware line detail report

Matches Bill of lading & invoice by pack #. Hold until line detail report received from Powerware – report

in format, eliminate re-format

Dianne pulls out Powerware inv, deliver to A/R

170

1185

Order Entry

390



VA 0 Sec

Bar Code Unit into Inventory

Sec20

Move 220 ft to Stock

sec120 to 150

Sec180

Cut Job at Manufacturng, print in shop

Pull Kanban from unit at

shipping when shipped

Scheduling3 Steps


VA 0 Sec.

Carry kanban 250' to line

Sec90 Sec120

Operations44 Steps

NVA 72278 Sec.VA 132820 Sec.

390 Feet



Professional Electric - OEM

MRO Purchasing Process VSM Deliverables – Metrics

• Current State:– # of Steps: 30

– # of Forms: 13

– Non-Value Add: 2,931.952 – Good

– Distance: 2,542 sq.

– ft.

– People (IDL): 8

– Floor Space: 1,560

sq. ft.

– Handoff’s: 15• Areas: 9

• Future State:– # of Steps: 24

– # of Forms: 7

– Non-Value Add: 2,607,112 - Good

– Distance: 1,212 sq.

– ft.

– People (IDL): 4

– Floor Space: 1,560 sq. ft.

– Handoff’s: 6• Areas: 4

% Improvement:

20 %

46 %

11 %

52 %

50 %

60 %

Step #4Develop the Action Plan

• Teams created to work on various improvements may or may not include members of the VSM Team

• Emphasize having the right members on the Team to complete various projects

• Initially, use great care to ensure teams are supported with a skilled facilitator and the resources to meet the goals.

Step #4Develop the Action Plan

Often Overlooked Tasks:• Conduct regularly scheduled meetings for all

participants• Provide a structure for the Team to work on

problem solving and to complete tasks• Verify progress on goals and support for the

process continuously• Information on progress needs to be collected and

periodically reviewed with top management

Implementing ChangeDon’t Wait!

You need a plan!

• Tie it to your business objectives.

• Make a VS Plan: What to do by when by whom.

• Establish an appropriate review frequency.

• Conduct VS Reviews walking the flow.

Implementing ChangeTypical Results

• Throughput time falls from 44 days to 6 (87%)

• Wasted steps fall from 65 to 27 (60%)

• Transport distance falls from 5300 miles to 1100 miles

• Inventories shrink by 90% percent

• Defects are reduced to the same rate at the start of the process as at the end

• Throughput time shrinks to within customer wait time, meaning all production is to confirmed order

Implementing Change

• The map is just a picture of ideas!

• The fundamental change is in how we choose to manage the value stream as an integrated system of decisions and tasks.

Roadblocks

• 75 years of bad habits

• Financial focus with limited cost understanding

• A lack of system thinking and incentives

• Metrics supporting a 75 year old model

• Limited customer focus

• Absence of effective operating strategies

Roadblocks

• Margin squeezing rather than true cost reduction.

• Persistent shortfalls in quality and delivery reliability.

• Low-ball bidding and the engineering change game.

• Collapse of “partnership” and “trust” in economic downturns (2001!), replaced by “survival of the fittest”.

QUESTIONS?

THINK LEAN!

QUALITY IN THE TRIANGLE 2007. Welcome! “Value Stream Mapping” Presenter : Pauline Campbell May...

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