VPMEP VSM Gaining Traction - Value Stream Mapping – Value...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Value Stream Mapping – Value Gaining Traction, Getting Gaining Results Results Paul Bolesta, Project Manager VPMEP - Richmond 804-323-2226 x231 Agenda 1 – Obstacle to Traction Obstacle WASTE WASTE 2 – Benefits of Value Stream Mapping 3 – What is Value Stream Mapping? Mapping? 4 – A Road Map for Improvement 2 3 What is WASTE? Any Activity that DOES NOT increase the Market Form or Function of the Product or Service based on the Critical Customer Requirements. These are things the customer is NOT willing to pay for. 4 Definition of Value Added Value Added Any activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.) Non-Value Added Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced, or integrated.) 5 Lean = Eliminating the Wastes Value Added Non-Value Added •Defects •Overproduction •Waiting •Not Utilizing Employees •Transportation •Inventory •Motion •Excess Processing Typically 95% of all lead time is non-value added 6 Where is the Waste? efects •Defects – incomplete or incorrect information verproduction •Overproduction – releasing work before next process can work on them, unbalanced work loads loads response, incomplete information, approvals response, aiting •Waiting – unbalanced work loads, slow system ot •Not Utilizing Employees – old guard thinking, politics, high turnover, low investment in training politics, •Transportation – poor layout, poor flow nventory •Inventory – large batches, complexity to complete task task •Motion – poor organization, no standard work xcess •Excess Processing – excess communication, lack All of communication, unnecessary approvals, processes have waste. customer requirements are not clearly understood customer 7 Without Change There Can Be No Improvement “The definition of insanity is doing the same thing over and over and expecting different results.” Albert Einstein 8 The Lean Process Current state Identify waste Measure & Adjust Continuous Incremental Improvement Future state Implement 9 Benefit of Value Stream Mapping •Understanding the Process •Information and Material Flow •Data Driven Decision Process 94% if Failures are due to Poor Systems 6% are caused by Worker Mistakes Deming 10 Look for Value Streams “Whenever there is a product or service for a customer, there is a value stream. The challenge lies in seeing it.” Examples: Raw Materials to Customer - Manufacturing Concept to Launch - Engineering Order to Cash – Services including Support Processes 11 Value Stream Mapping is a Key Value Process Diagnostic Tool Process Kaizen Continuous Improvement Pull/Kanban Quality at Source Standardized Work 5S System POUS Cellular/Flow TPM Quick Changeover Teams Value Stream Mapping 12 Batch Reduction Visual Layout Value Stream Mapping Steps Product / Service family • Select product / service family • Draw Current State map. Draw Understanding how the process currently operates. • Identify opportunities for Identify elimination of waste and areas of improvement to meet customer’s needs. customer’s • Draw the Future State map. Draw Design a lean flow using lean techniques. techniques. • Develop action plan and Develop implement it. implement Current state drawing Future state drawing Plan and Implementation 13 Incoming Orders Weekly Fax Receive Order IN Order Entry Process Current State - Sept. 2007 Semi-Weekly Ship Schedule MRP MRP Production Schedule Information Check Credit IN Review & Enter Order Reconcile Order IN IN Confirm Order IN Finalize Order IN Fax P/T = ½ min Batch = 4 hours FIN P/T = 1 min % Accept = 90% Batch = 4 hours MRP P/T = 10 min % C&A = 60% Batch = 1.6 hours MRP P/T = 1 min %C&A = 75% Batch = 1.6 hours Phone P/T =7 min %C&A = 85% Batch = 2 hours MRP P/T = 5 min Batch = 1day Material .5 days ½ min 1 min .5 days 10 min .2 days 1 min .2 days 7 min .25 days 5 min 1 day Total Lead Time = 2.65 days Total Processing Time= 24.5 min First Pass Yield = 34.4% 14 Future State Questions 1. What does the customer really need? 2. How often will we check our performance How to customer needs? to 3. Which steps create value and which are Which waste? waste? 4. How can we flow work with fewer How interruptions? interruptions? 5. How do we control work between How interruptions? How will work be prioritized? interruptions? 6. Is there an opportunity to balance the Is work load and/or different activities? 15 7. What process improvements will be 7. What Incoming Orders Weekly Fax Receive Order IN What does the customer really need? Order Entry Process Current State - Sept. 2007 Semi-Weekly Ship Schedule MRP MRP Production Schedule All orders will be processed within one hour Review & Checkof receipt (6 Enter Order processed each hour). Credit Reconcile Order Confirm Order orders IN IN IN IN Finalize Order IN Fax FIN MRP MRP Phone MRP P/T = ½ min Batch = 4 hours How often will we check our P/T = 1 min P/T = performance min customer needs? min 1 min P/T = 10 to P/T =7 %C&A = 75% % Accept = 90% % C&A = 60% %C&A = 85% Batch = 4 hours Batch = 1.6 hours Batch = 1.6 hours Batch = 2 hours P/T = 5 min Batch = 1day .5 days ½ min 1 min .5 days Each hour. 10 min 1 min .2 days .2 days 7 min .25 days 5 min 1 day Takt Time = 460 minutes 46 Orders = 10 minutes/order Total Lead Time = 2.65 days Total Processing Time= 24.5 min First Pass Yield = 34.4% 16 Incoming Orders Phone Or WEB Weekly Fax Order Entry Process Current State - Sept. 2007 Semi-Weekly Ship Schedule MRP MRP Production Schedule Receive Order Fax Stop wCheck Credit alking to the FAX IN that’s FIN waste!!! P/T = 1 min % Accept = 90% Batch = 4 hours Rework Review & Enter Order IN IN Reconcile Order Confirm Order IN IN Over Processing Finalize Order Waste MRP Waste MRP IN MRP Phone P/T = ½ min Batch = 4 hours Which = 10 min createmin steps value?P/T =7 min P/T = 1 P/T Which are waste? .2 days 10 min 1 min .2 days 7 min % C&A = 60% Batch = 1.6 hours %C&A = 75% Batch = 1.6 hours %C&A = 85% Batch = 2 hours P/T = 5 min Batch = 1day .5 days ½ min 1 min .5 days .25 days 5 min 1 day Takt Time = 460 minutes 46 Orders = 10 minutes/order Total Lead Time = 2.65 days Total Processing Time= 24.5 min First Pass Yield = 34.4% 17 Incoming Orders On-Line Order Entry Weekly Fax Receive Order IN Order Entry Process Current State - Sept. 2007 Semi-Weekly Ship Schedule MRP MRP Production Schedule How can we flow work with fewer interruptions? Check Credit IN Review & Enter Order IN Reconcile Order IN Confirm Order IN Finalize Order IN Fax FIN MRP MRP Phone MRP Finance Cross Train P/T = ½ min Batch = 4 hours P/T = 1 min % Accept = 90% Batch = 4 hours Link Finance / MRP .5 days 1 min P/T = 10 min % C&A = 60% Batch = 1.6 hours P/T = 1 min %C&A = 75% Batch = 1.6 hours P/T =7 min %C&A = 85% Batch = 2 hours Auto Confirm P/T = 5 min Batch = 1day .5 days ½ min .2 days 10 min 1 min .2 days 7 min .25 days 5 min 1 day Takt Time = 460 minutes 46 Orders NEW = 10 minutes/order METRICS! Total Lead Time = 1.25 days Total Processing Time= 11.5 min First Pass Yield = 90% 18 Incoming Orders Phone / Web Receive / Credit Check / Reconcile Confirm Order Entry Process Future State - Sept. 2007 Semi-Weekly Ship Schedules MRP Schedule MRP Production Production via FG Kanban Schedule Implement Kanban Kanban will: Schedule Production to real time demand. Optimize (level) and Control Inventory. Link Production to Customer Demand. MRP/FIN P/T < 10 min % accept = 90% Batch = 1 How can we control work between interruptions? 19 Incoming Orders Phone / Web Receive / Credit Check / Reconcile Confirm Order Entry Process Future State - Sept. 2007 Semi-Weekly Ship Schedules MRP Schedule Production via FG Kanban MRP/FIN P/T < 10 min % accept = 90% Batch = 1 I.T. Link to Order Entry Direct Schedule Shipping Shipping Training If FG Kanban is implemented what improvements can be made to Shipping? 20 Incoming Orders Phone / Web Receive / Credit Check / Reconcile Confirm Order Entry Process Future State - Sept. 2007 MRP Schedule Production via FG Kanban Shipping MRP/FIN P/T < 10 min % accept = 90% Batch = 1 Total Lead Time < 10 Minutes Future State Metrics! Total Processing Time < 10 Minutes First Pass Yield > 90% 21 Implementation Road Map • Clarify Business Drivers and Key Customer Metrics • Assess and Map Current Capabilities (Baseline) • Identify Opportunities for Improvement including the Identify elimination of WASTE elimination • Create a Vision for the Future Based on Voice of the Create Customer and Voice of the Business Customer • Analyze Gaps and Create Action Plan to Succeed • Determine Priorities and Resources Necessary • Track Impact through Metrics • Celebrate Wins - With Customers - With Employees - With Suppliers - Structured Process Improvement - Use Robust Set of Tools (i.e. Lean Six Sigma) 22 Summary: ALL processes have WASTE that cost you MONEY. Improvement requires change. To change a process you have to understand the process. Process Excellence will not be achieved Process without involving people at all levels of the It is Not about Starting. It organization. organization. It is about Getting Things Done! It 23 Questions? 24 Parting Thought Learning is not compulsory Learning … survival. survival. neither is 25 ...
View Full Document

This note was uploaded on 03/03/2011 for the course MARKETING 101 taught by Professor Singh during the Spring '11 term at Management Development Institute.

Ask a homework question - tutors are online