Material and Information FlowGuide Facilitators > A3

(Source “Learning to See” Shook and Rother)

Created by Todd McCann

Contents:>A3 Guide summaries from “Learning to See”

A Quote from Taiichi Ohno

“ Where there is NO Standardthere can be NO KAIZEN”

We Serve the GEMBA We Teach Leaders to “Learn to See” and “Serve the Gemba”

Theme: Facilitators Guide to Material and Information Flow (Value Stream Mapping) Subject: Material and Information FlowDate Created: Jan 2005Created by: T. McCann

VALUE STREAM - All required steps to produce and deliver a product or service

Value Stream – One Point Lesson

Value Stream Mapping is a technique that allows individuals to:

Visualize End to End system FLOW of inventory and information to create a product or deliver a service

Quantify VALUE added and NON VALUE added activities

Identify stagnant and slow moving INVENTORY

Identify process restraints/constraints slowing or prohibiting continuous FLOW

Determine areas of focus and aim requiring improvement to create continuous FLOW

Establish measurable Future State target conditions for improvements to FLOW and VALUE

Use as “The Blue Print” to for all improvements of the Value Stream

• Deliver exactly what the customer wants

• One at a Time

• On Demand

• Free of Defects

• Respond Immediately to Problems

• Increase Value to the customer

focus on elimination of waste

CURRENT State Condition IDEAL State Condition

Created by: Todd McCann

Coal Diamond

Definition of Lean Thinking: A continuous and systematic approach to the

identification and elimination of WASTE in the pursuit of perfection

5 Principles and 7 Wastes of LEAN Thinking – One Point Lesson

5 Principles of Lean:

VALUE - What the customer is willing

to pay for

VALUE STREAM - All the required

steps to produce and deliver a product

or service

FLOW - A product moving through the

value stream with no stoppages, scrap

or rework

PULL - producing and delivering only

when the downstream customer

signals a need

PERFECTION - completely eliminating

waste so that all activities create

value

Seven Original Wastes:

D efects / Corrections

T ransportation

O ver-processing

M otion

I nventory

O ver-production

W aiting

The Eighth Waste is:

Not using People’s Intellect

Unnecessary

Unnecessary

Unnecessary

Unnecessary

Unnecessary

Unnecessary

DEFINITION: What the Customer is willing to pay for….VA Value Added

VALUE – One Point Lesson

Contrasted with: What the Customer is NOT willing to pay for NVA Non Value Added

FACTS:

All processes contain WASTE. NVA activities

Not All processes contain VALUE. VA activities

Therefore: In any process there will be waste

Value-added vs. Non-Value Added example : Perform Maintenance Task

Value-Added stepsCustomers are willing to pay for it

It physically changes the product

It’s done right the first time - Quality

Value Added Percent

Non-Value Added Percent

22%

78%

Waste

DIRECTLY

IMPACTS

START

WO in Hand

Pre-Job Brief

Completed

WALK

to Tool

Room -

obtain

tools

WAIT

at Tool

Room -

obtain

tools

WALK

to Work

Location

ADD

VALUE

USE

TOOL’s

WALK

to Tool

Room –

return

Tools

WAIT

at Tool

Room –

return

tools

END

Work

240 min

4 hrs

0 hrs 8.3%

21 min21.6%

52 min

18.2%

43 min

22%

52 min

18.2%

43 min

11.8%

29 min

Non-Value added StepsNot essential to produce

product/service

Does not add value to product/service

Safety Cost Quality Delivery

VA / NVA – Analysis Summary

FLOW – One Point Lesson

“PROCESS FLOW” – “HIDDEN WASTE”

“PROCESS FLOW” “HIDDEN WASTE”

“PROCESS FLOW”

PRODUCT QUALITY > OVERALL LEAD TIME > UNEVEN / TURBULANT FLOW

WORK STOPPAGE/UNVEVEN > DEFECTS CAUSE REDUCED FLOW

NO

Flo

w

“99% DEFECT FREE” > Improved FLOW > “HIDDEN WASTE” remains

“99% DEFECT FREE” – “99% WASTE REMOVED”

RE

DU

CE

D

Flo

w

WA

ST

E F

RE

E

Flo

w

Eliminate

DEFECTS

DEFECT

Eliminate

PROCESS

WASTES

CountermeasureCONDITION PROCESS VIEWS

INNOVATE

PROCESS

FLOW - A product moving through the value stream with no stoppages, scrap or rework

PRODUCT QUALITY > OVERALL LEAD TIME > UNEVEN / TURBULANT FLOW

PRODUCT QUALITY > OVERALL LEAD TIME > SMOOTH and LEVEL FLOW

Materials

Brown Paper

Flip Chart

Masking Tape(The Kind that Will NOTTake Paint of Walls)

Markers

CURRENT STATE > DOCUMENT ONLY > NO “FIXING THINKING” YET!

!Respectfully Share and Openly Discuss Code of Conduct for Session!

1. Identify Product Family > “Give Product Family a Name” (MUST DO Create Product/Process MATRIX if you do not have one)

2. Identify, Determine and Record the specific product(s) created by process | NAME them All

3. Determine and Record Customers requirements ,Cost, Quantity, Delivery, Quality, add other specifications from customer

4. Determine the “Level” at which VSM will be created | Process Level > Single Plant Level > Multi-plant Level > Enterprise Level |

5. Perform 3GEN > Walk down process in Reverse > Record What is Directly Observed (A3) > Sequence of Operation > C/T’s >

C/O time > LOOK for 3M > Record What you observe

6. Return from Gemba and Gather additional data from high quality/reliable sources > If no data exists > establish metric to satisfy building VSM

7. Team Determines and Agrees to HARD boundaries STARTING and TERMINAL activities for VSM

8. Review STANDARD ICONS that will be used during VSM creation

9. Create Material Flow first, start at TERMINAL activity and work backward to STARTING activity

10.Create and Populate Data Boxes with data that is most relevant to the process , product family, and products produced

11.Determine (Avg daily) inventory levels between each activity and time interval inventory is in a NO FLOW stagnant condition

12.Determine if PUSH or PULL is present between activities, start at TERMINAL activity and work backward to STARTING activity

13.Determine Top 3 Primary Customers of Product , create Data block to include > (Product(s) Demand / Time) + (# of Pieces of product) + (Shifts) + (Other Relevant Demand data decided by Team)

14.Determine Top 3 Primary Supplier(s) of raw materials and Top3 Materials, Create data block with material requirements for production process

15.Create Information flows for process end to end, Ensure to address both Electronic and Manual information conveyance

16.Create (VA/NVA) Timeline > record values for VA Processing Time > NVA / NO FLOW times SPECIAL NOTE IF LT through Process is LONGER than VA time use this timeline format >

15. Tally and Sum Lead Times (days) and Processing Time (VA) and place at end of timeline(Calculate the % VA time as a function of Sum of Lead Time) + (Add FTQ ) >

16. LEARNING by SHARING > REFLECT on what team has created and learned from exercise, share experiences

17. Using CURRENT STATE VSM Identify areas where WASTE is present (ID using KAIZEN BURST) > Determine and Decide what measureable improvements can be after waste has been removed (TARGET CONDITIONS) > CREATE FUTURE STATE from teams suggestions > PDCA and Transform Current State to Future State

Process L/T

VA

(A wall)

Production LeadTime =

ProcessingTime =

VSM Structure

Prod Control

Production Flow

Information

Material

CustomerSupplier

Activity

Cycle time (00:00)

Changeover time(00:00)

Uptime > %

First Time Quality > %

Shifts > #

Batch Size > #

Describe

Activity #

Working Time > Seconds

SWIP > #

Activity

Cycle time (00:00)

Changeover time(00:00)

Uptime > %

First Time Quality > %

Shifts > #

Batch Size > #

Describe

Activity #

Working Time > Seconds

SWIP > #

Activity

Cycle time (00:00)

Changeover time(00:00)

Uptime > %

First Time Quality > %

Shifts > #

Batch Size > #

Describe

Activity #

Working Time > Seconds

SWIP > #

IQTY

IQTY

IQTY

Production LeadTime =

ProcessingTime =

D-Sched

Process > Activity

Cycle Time > (00:00)

Changeover time > (00:00)

Uptime > % / OEE > %

First Time Quality > %

Shifts > #

Batch Size > #

#

Working Time > Seconds

SWIP > #

Product MIX > #

Complete & Accurate > #%

Difficulty > 1 easy <> 5 Hard

Queue Time > (00:00)

Team Assignments

Facilitator Scribe Lean Thinkers

Theme: Facilitators Guide to Material and Information Flow (Value Stream Mapping) Subject: Material and Information FlowDate Created: Jan 2005Created by: T. McCann

CURRENT STATE REVIEW and REFLECT1. Where in Current State is the condition of OVERPRODUCTION present

• NOTE WHERE on CURRENT STATE Map2. Is the process a MAKE to ORDER or MAKE to STOCK production system? MTO/ MTS3. Are we producing products based on TAKT TIME? Y/N

• Create TAKT Time for Value Stream based on Customer Demand4. Determine PACEMAKER <> PACESETTER…. FIND IT

• Is HIGH variability in Customer Demand present? Unpredictable?• (Initially It will be the Process containing the C/T closest to TAKT TIME)• Are we scheduling all process steps? Y/N

5. Is the condition of CONTINUOUS FLOW (One Piece Flow) present in Current state? Y/N6. Is the condition of PULL present in Current State? Y/N7. Is LEVEL FLOW present in Current State? Y/N8. Is there a PRODUCT MIX present in Current State with variable C/T’s? Y/N

FUTURE STATE > Creation approach START AT CUSTOMER and WORK IN REVERSECREATE PULL AND CONTINUOUS FLOW.........TO TAKT TIME!

1. We have established TAKT TIME ___________seconds

2. Will we MTS using (FG) Supermarket > Customer Pulls we replenish or produce using MTO?• Answer to question will determine HOW Future State Info and Material Flow is

designed

3. Determine which process we will call PACEMAKER and will Schedule based on Customer Demand• NOTE all processes downstream from PACEMAKER must be CONTINUOUS FLOW

4. Create additional FLOW by Evaluating process steps for Redistribution of Work Elements > Use TAKT TIME HISTOGRAM

• Decompose work elements and realistically redistribute work elements so all processes are below TAKT TIME

• IDEA > ALT is to create work cells Production or Assembly

5. Transform AREAS of PUSH to pull > Using KANBAN + Super Market System

6. Ensure when Batch production is required, evaluate HOW KANBAN will be applied with the target of NOT over producing.

7. At End > Compare and Contrast CURRENT STATE LEADTIME and PROCESS TIME vs FUTURE STATE

CREATE Continuous-Flow

Line

balancing to

Takt time

Kanbans Load leveling Pacemaker scheduling

to pitch

Standard work Setup reduction Mistake

proofing

Total

productive

maintenance

TAKT Time CALCNet Available Working TimeCustomer Demand (Daily Rate)UOM = Seconds

TAKT TIME – One Point Lesson

TAKT TIME – The pace of production required to meet customer demand

The calculation for TAKT Time is:

Net Available Time to Work

Customer Demand

2 Shifts x 7.5hrs x 60 minutes

145 pieces

54,000 seconds

145 pieces

TAKT = 372 Seconds

0

1

2

3

4

5

6

7

8

9

10

Cut Weld Drill Assembly Paint

Cyc

le T

ime

Work Sequence

TAKT Time vs Cycle Time: Before Kaizen

TAKT TIME

0

1

2

3

4

5

6

7

Cut & Weld Weld & Drill Drill & Assemble Assembly & Paint

Cycle

Tim

e

Work Sequence

TAKT Time vs Cycle Time: After Kaizen

TAKT TIME

Product/Process Family Matrix Template

Subject: Material and Information FlowDate Created: Jan 2005Created by: T. McCann

Pro

cess

1

Pro

cess

2

Pro

cess

3

Pro

cess

4

Pro

cess

5

Pro

cess

6

Pro

cess

7

Pro

cess

8

Pro

cess

9

Pro

cess

10

Product/Process

FamiliesA X X X X X X X X 1

B X X X X X 1

C X X X X X X X X X 2

D X X X X X X X X X 2

E X X X X X 3

F X X X X X 3

G X X X X X X 3

H X X X X 4

I X X X 4

PR

OD

UC

TS

STATEMENTS OF RESISTANCE:

“50 Reasons Why It Will Not Work”

1. We tried that before.

2. Our systems are different.

3. It will cost too much.

4. That’s beyond our responsibility.

5. That’s not my job.

6. We’re too busy to do that.

7. It’s too radical of a change.

8. There’s not enough help.

9. We’ve never done that before…

10. We don’t have the authority.

11. There’s not enough time.

12. Let’s get back to reality.

13. That’s not our problem.

14. Why change? It works OK now.

15. You’re right, but...

16. I don’t like that idea.

17. Your years ahead of the times.

18. It’s not in the budget.

19. We’re not ready for that.

20. Sounds OK, but it’s just impractical.

21. We need to give it more thought.

22. Management won’t go for that...

23. There’s nothing in it for me…

24. Nobody cares about that.

25. We’ve always done it this way...

26. It might not work.

27. Not that again!

28. Where did you dig that one up?

29. We did all right without it...

30. It’s never been tried before.

31. Let’s shelve it for the time being...

32. I don’t see the connection.

33. What you are really saying is...

34. Let’s not be the first...

35. Maybe in you area, but not in mine.

36. Supervisors will never go for it.

37. It can’t be done.

38. It’s too much trouble.

39. It’s impossible.

40. We’re not here to think.

41. We can’t do that.

42. Let me think about it and I’ll get back to you.

43. Hold on you don’t understand…..

44. Legislation says we can’t do that.

45. That’s just ludicrous…

46. That can’t be discussed right now.

47. That’s too serious of a subject.

48. No one is interested.

49. You do not know all of the situation.

50. It’s too late to start.

VSM Icons (Source: “Learning to See” M. Rother / J. Shook)

MATERIAL ICONS REPRESENTS NOTES:

Manufacturing Process/Activity

One Process box equals and area of FLOW. Also used for departments such as production Control

Outside Sources

Used to show customers, suppliers, and outside manufacturing processes

Data Box

Used to Record informationdescribing measureable conditions in a manufacturing process, department, customer, etc

Inventory

Count (pcs) and Time OH should be note

Truck Shipment

Note Frequency of shipments

Movement of Production Material by PUSH

Material that is produced and moved forward BEFORE the next process needs it; usually based on schedule

Movement of Finished Good to the Customer

Supermarket

A Controlled inventory of parts and is used to schedule production at an upstream process

WithdrawalPULL

Pull of Materials, usually from a Supermarket

Transfer of Controlled Quantities for Material Between Process in a First IN First Out Sequence

Indicates a device to Limit quantity and ensure FIFO flow of material between processesMaximum Quantity Should be Noted

INFORMATION ICONS REPRESENTS NOTES:

Manual InformationFlow

Examples: Production ScheduleShipping Schedule

ElectronicInformation Flow

Examples: Electronic Data Interchange, (ERP comms)

Information Describes type of informationflow

Production KANBAN

The “One-Per- Container” kanban. Card or device that tells a process how many of what can be produced and gives permission to do so

WithdrawalKANBAN

Card or device that instructs the material handler to get and transfer parts from one location to another (i.e. from a supermarket to the consuming process

Signal KANBAN

The “one-per-batch” KANBAN. Signals when a reorder point is reached and another batch needs to be produced. Used where supplying process must produce in batches because changeovers are required

KANBAN arriving in batches

Sequenced Pull-Ball

Gives Instruction to immediately produce a predetermined type & quantity, typically ONE unit. A Pull system for a subassembly process “without” using a supermarket

INFORMATION ICONS REPRESENTS NOTES:

KANBAN Post

A place where KANBAN are collected and held for conveyance

Level Loading

Tool to intercept Batches of KANBAN and level the volume and Mix of them over a period of time

GO SEEProductionScheduling

Adjusting schedules based on checking inventory levels

GENERAL ICONS REPRESENTS NOTES:

KAIZEN Burst Highlights improvement needs at specific processes that are critical to achieving the value stream vision. Can be used to plan KAIZEN activities for incremental improvement

Safety or Buffer Stock

Buffer or Safety Stock requirements MUST be noted

Operator An Overhead View of a person

Work Cell

Subject: Material and Information FlowDate Created: Jan 2005Created by: T. McCann