Professional Documents
Culture Documents
Seeing The Whole
Seeing The Whole
Seeing
the,:;tl.rtdi:civaluestream
mapping
by
DanJones
JimWomack
':'e.'.c'c bvJohnShook
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theWhole
Seeing
Mapping the Extended Value Stream
Version 1.1
Februâry 2OO3
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B
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Wirhgrarirude !o DanJones's
colleagues
arlhe LeanEnreryrise
Reseafch
Cenref,CardiffUniversir!, ô
in pârticulnNick Rich,DaveBrunt,DâvêS;monsandMâtrhiâsHolweg,whohelpedpioncerexændcd
valuestream mapprng, ô
grâri$de,asâlways,
Andwith special !o JohnShook.
\ c 6 i o r l . l , F e b t u â r2
y003
rsB\ 0-96678.{3-5-9
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FOREWORD
\\-hen rhe first irenrin rhe Lean Tool Kit, leafling to See'w^s latrnchcdin Juneof 1998,
$'e et I-El begancohearfrom mânagersin mâny industriesthat "this is the tool we hâve
bccn lookingfor." Readersquickly rcalizedthat the greatpowerof l-eafiing to Seelics in
focusingattcntionon the valuestreamfor individualprod ct familieswithin plants Rarher
than corrcentracing on isolatedprocesses âlongthe valuc streamor âggre€(ated âctivltles
servingmanyvaluestreams,reâdersco ld suddenlyscehow rc optimizelhe flow ofcâch
productfrom receivingto shipping.'l'hisinsight wasbreathtakingfor manymanâgcrs
caughtup in narrowtechniquesor lookingaconly onc acriviryit x complexsystem
I \.
Why is an extendedmrp hrrderto drarv? It's no! becausethe fundamental conccptrs
diflercnt. At crcn lcrcl of mapping,rve are simply observingand writing down ever,vsrep
in informrrion processing ?nd physicaltransformation for individualproduccfamilies.We
observeûe flol ofcrrstoIrrefdcsircsmovingup thc vâluc strcâm,in the form ofordersor
schcdulcs..rndrhcn obscrvcthc progressofproductsmovingdownstreâmin responsero
this inf(rnârion. from raw materialscofinisheditems.
JohnShook
SeniorAdvisor,Lean EnterpriseInstitute
Ann Arbor,N{I, USA
\ Iârch2002
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I CONTENTS
I Foreword by John Shook
l
t Introduction: Changing Your Focal Plane
ll
Part lll: What Makes an Extended Value Stream Lean?
I
I
Part V: Future State 2
I
I
Pârt Vll: Achieving Future States
ta
I Conclusion
t
About the Authors
ll
t{
Yct rve bcliovo rhat thc sxvingsin ciùrclLndetlorr and rhc irnprovcmcnrsin qu.rliq,
rrtovcry stcp will oncouragctornls to l{ocl)going oncc tlrcy lc.rm how to joinrly
|{ opci,rjzcthc shrfcd strctm.
{
l,)vcnnrtlly,widr sonrccreârivorhinl(ingîbour pfoccssal(l infbrrrariol tcchnologicr,,
r- wc bclicvc thrt mosr vllluo strcârrscân bc co|nprcssod xnd snroorhcdro r poirl
whcro I lrrgc fiacrionol thc oliginelstcpsand pr.rcriclll_v ell ol thc rh(rughpur rinrc
'ai 'l'his
ârc clilninllrocl. $,ill bc a n uc rcvollltionânclthc vâlùc srroarnrcrn gorring
thcrc first vill havc an ovcrwhclmingcompcritivcedvîntegc.N,lor.c iùrponrnt in
most câscs,thc tcnm gct.ing strr'!cdfirst xnd nral<ingrbc quicl<cstpr.ogrcss
irlong
{
tlre pxth will htve a continuing compcririve âdvânrage.
al 'l'hc
l<cy is ro summon your coutLgc! form yolrf closs-clcprr'tnronttrld cfoss,oon.\pllnv
tcirm,ând changcvourfocnlpl.nc t() focuson rhc frodùcr. l bcn lcarn to scc rhc
rlholc Ând ... gcr going to tâkc ou! lhe wâsco!\!b rvill bc urging yolr on and wâiting
ro hearrboutyourproblcmsand succcsscs,
t
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What is Extended Value Stream Mapping?
- bothvaiue,crcaring
An extendcdlaluc srrc!Dris simpl\all ofthc actions and
'lvâsteîul requircdro bring a producrfrom rarvmatcrialsinro rhe ermsof the
customcr.Thc relevan!actionsto bc napped consisrofovo flows:(â)ordersrraveiing
upstreâmf(nr rhc clrsromer(or from the sâlcsdcparcment
when forecastssubstitute
fof conilrmedordcrs)âncl(b) producrs
comingdownrhc vâluestrcamfromrarvmareriâls
to crrstoncr.lbgecher
theseconstitutc
a closedcircuitof rlcmandandresponse.
Zenith Dèlta
P l a t f o mA - . - . - . - , * . *
_______-__/ \,
a
3
z Product Families from Summa's Perspective
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As you selectyour startpoint and movc bâckopstre.lm,ir is b€stfbr your first mrp to l-ôllow
chepachof a singlefamity and x singlecomponert in the produc|.This is becausetbe first
obie.tiueof et tefided.mappingis to achieue4 breakthroughin sharedcotts.iousness ol
aaste and.to identib systetuati.opportunitiesfot elimindtinSthe uasle. It is highly likôly
thar ûe wastesident;ficrlby followingone comPonentbackuPstreâmwill occurin roughly
cqul meâsure;n evcrycomponentgoinginto the finishcdproduct.The altcrnâtiveâpproach
-l goinginto the productis time consuming
of mâppingthe vâluestreamof cverycomponent
- and costlyand we hÀvefound thât it overwhclmsmanagerswith t()omuch daca
STARTED
PAFTl: GETTING
ManaseabreFierdor view
l:T-l,Tl"'"?
rnc rdexi,nirpwould"rrulv
sho$, ,1.h",
r'e whole.
nro u\esor (onsumes ir, i, ,oi .ru;,f,rhe end customef
rhe proLlucr, "uu,fa
fhc t"o world then follorv
up rhc valucsrrcamco."t"""* the prodLrctali thc u,ay
:ï:11..^
productl partsbâcl(upstreaD]
'" ,ii
.;
ï1*.,.";;;;;;;;;i:j:ii;:l:ii:j::l,JiJïjï:ii:;:,
is ovenvhc rrling to secro" fir rvrtlly,,sr
vrsronrnaybc fruirloss.w. uar.i"" 111nsn1
nou;".'lirA' that a lot
one or cwolàciriciesan. o; can bc lcarncclbv k,oking
- ,,;.;;;;;:::Ppers
"'-"'"''" whcrcvcryou start 'fltis is
scopcofcxtenclecl nrapp;n* "on1 rircmininrurr
t**" I
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@/î\rùË
trt*=s
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f --hn l
F-æ:a Ln
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Even ar dris minimum scopc,note thât the scâleof mâpschângesdramâricallyber\\een
Leaffiing to See(facllitylevel mâps)and S?eingthe Vhole.The facility boxesrhat are the
primaryunitsofanalysisin this breakthroughguidearethe samesizeasthe indiv;dualprocess
boxes("stamping","welding","assembly")in Leatning to See.y^scexpânses of peoplcând
equipmentwithin facilitieshâvebeenshrunkinto cinyboxesso we cxn seethe big picture!
,rt
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i;;;i; rgill Ë
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lar''4l;_.l.'ê rli;": :E4'
Choosing a Leader and a Value Stream Team
\\Je hopc Lhatvou ârc experienced with facilityJevel mapping as dcscribe'.1inLearntng
to S?eand hâve lppointed value slrcam mânâgcrsfor âll of dle value streams\\,ithin
,volrrlàcilides. \Ve âre convinccd thal this is critical to gain the full benefir of rrapping
ât the fâcility level. What's morc, thc knowledge of lacilitvJ evel valuc strcarr managcrs
rvill be invaluablc îrx <luickly drâiving accurale mâps of rbe cxrcndcd vxlLrestreâm.
Llowever, by their namfc, cxtcndcd mâps crosslàcilities and firms. Supposc mânagcrsârc
in placcfor rhc scgrrcntsof the streamwichiî exch fâcility Who hrs thc responsibiliry
tor direcdy rnanagingrhe rotal srrcam acrossfirms, to ccllrtect the maps ând lcâd tho
'I
irnprovcnrcntprnccss? hc rcrlity in mos! câsesrviil be "no onc". So lhcrc is â noed for
n ncw typc of mxnxgcr r4ro wc will call thc "Ploclucr Lirrc NlunrLgcl' (PLl\'l).
'I'hc
finns wc hrvc cncountcrcdusingrlrcsctochniqucshûvc l)f(xluct
mosr succcssfirl
Linc iVlanagcrswho think âbolrt produci marlieting and enginccring âs wcll âs production
and purchâsing.Wich âll tbe elementsof mârkccing, dcsign,production,ând sùpplychâin
Lrndcrhis or hcr oversight,$is individualis in â Lrriclucpositionto judgc thc porl'onr,rncc
of thc many funoions n)uchingùe prodùct.Indr:ed,as wc \vill soc in a momcnr,I
continuing âssessmentollunctional pcrfo|rnancc âlong *,ith precise prescriptions fof
improvcmentis one oi thc most importàtt benefitsol prodnctlinc mânâgcmcnt.
iI
=
Pcrhapsrhc bcsrkno$'nexampleofwhât we are telhingabourin the
=
manulàcmringworld todayis the Chief Eûgineerlor a car placform
= et Tovota(a job positionalsocaUedthe shasa).This individùâlis
\r idel)' known by everyonein thc companyand takcsresponsibility
lbr the successof cheproductin rermsof return on invcstmentand
markecshare.Yetthe ChiefEngineer,Iikc our proposedPLM, actually
hasro direct âuthoricyovermarketinpl(which is done by a large
markecingdepârtment),overenginccring(which is done by the
vâriouspartsofthe lârgeengineeringdepâr|ment, overprodncrion
(which is done by the operâtion$deparcment), aûd over suppliers
(who âremanâgcdby chepurchasingdopartmenqand ùo production
controlârd lo€(isricsdepârtmerr.)Insteadrhe Chief Engineer,working
with â tiny groupof assistânrs, is the one personwho can"see chc
lvhole"ând thinl<âboutthe neccssâ.ycontriburionsfrom every
fùrctiorâl acciviryând everyupstreâmfirm |o creâreâûclclclivor
a succcsshrl productasjIdged by the end customcr,
The value strcam tearr needs ro incluLlc reprcscntarivcsofâll the firms anclfacilitics
th:rrsharcowncrshipind rnânlrgomcnr of the srrcam.ldcaliy,it rvouldrlso incluctc
lhc rclcvantdcl)ârtrlcnrs\rirhin otch fifrrl - salos,opcretions,prtxlucri()ltcontrol
dnd logisrics,pufchâsing,mtnufâcruringcnginccring,inlbrmationrnânit!(cmcnr, and
pfoduct cngioocring.lloi.evcl this can maho rhc rctrr too hrgc to rvrlli
rhc v.rlLrc
strcânltogcthct rvhich is ofton I crit;cllllcnming cxp{jricnco. I.hLrsw{j gcnorrlly
Lccollrmcnci â sntallrc{m widr N ntiniInrrm0f onc rcPrcsorrrarivr: conrl)rny,
'l l)cr
hc coar'n
can qucry thc firnorionssLrpportiogrhc vrhc strclrn ds ùcccss:tfy
t<)fill
in missinginlormation.
I
âr onc sitc dll of the rcriviticsrcquircd
to pfoocodfionr râw rrltroriîlsto lirishcd
goods,in dle proocsscliminating practic.rllv
â11rrânsporrlinl$ ând needslor inlofnrârion
JN/
{
Gâmma Stampers
1.4 ProdudLi.e
It s"* r"-s*
r nn't"*n",
1 f
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E
stiffenerand wipingedge
E
E
E
Windshield Wiper Assembly and Fabrication Steps E
A. Rolledsteel stampedinto blade spine E
B. Four bracketsattachedto blade spine
C" Wiping edge attachedto blade spine and bracketsassembly E
D. Bladeassemblyattachedto arm Ê
E. Assembledwiper attachedto automobile
I
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Befor.:\À,estartmapping,leCslook ar ar explodedview ofthis producrsbo\r'ingrhc pa.rs
goinginto rhe wiper and its fi-point on drc end product.Note rhat we will onl] map rhc
c;rclcdareain this initial map.This is to keep the mâp simpleand ro concenrràre iniriâllt
on raisinecvcNone'sconsciousness ofthe extendedvaluestrcân.
5_-
--
arm components
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Our windshieldwipercomesin two spccifrcations hightrim andstandard
(HT and ST) - and in t\vo sizes- smalland large(S and L) - to fit
two differcntvchicles(A and B). The right-handand left-handwipers
areidenticalon the vehiclesin rhis examplc.Thc rrim levelsdiffer only
in the pa;n!- a mactc-blackfinish lor the standârdtrim veh;clesând â
glossy-black finish for the high trim models.Thc dcs;gnsfor the two
modelsdiffer only in the sizeolthc parts,not in their numberor basic
design.This mcarrschatthe wipersare interchangeable from â fital
âssemblystandpointbecausethey ùse the sâmcfit poin$ and require
rhe sameinstâllâtiontime. The wipcrsclearlyform a producrlamily
becauseali ol cheactionsoccurringupstream- componentâssembl);
painting,and stamping- âre in the sùmeprocesssequenccin thc
samefirms and use chesameprocessing cquipnrcntwith a few tool
and fixture changes.
TransportLink 1
2. Directship (truck),Tonawanda,
NY (500miles) th
Second'Tier Supplier:
GammaSlamping.Tonawanda, New York
3 . U n l o a dc o i l s 10m
4. Beceive& createticket 'l0m
5. Storecoils 14d
6. Conveycoilto StâmpingPress1 10m
7 Mounton coil rollerand feedpress 5m
L Stampinitial(flat)shape 1s
L AccumLrlate stâmpedpartsduringrun
10.Conveypartsbin to storâge 10m
11.Storepans 48h
12.Conveypârtsin bin to StampingPress#2 10m
13.Loadpartsin magazine, âutoteedto press 10m
14.Stampfinal (curved)shape 10s '10s
15.Accumulate partsduringrun 4h
16.Conveypartsto storagearea 10m
17 Store parts 48h
18.Conveypârtsto paintshop 10m
19.Rackpartson movingconveyor, clean, 130m 52m
dip,paint& bake
20.Removeparts,inspect,sort & accumulate in bin 2h
21.Conveypartsto storage 10m
22.Storepartspriorto shipment 48h
23.I oad pansfor lwiceweeklvdirecLship 'l0m
TransportLink 2
24.Directship(tfuck)toHarlingen,TX
(1500miles) 96h
First-Tier SupplierWarehouse:
BetâWipers,Harlingen,TX
2 5 .U n l o a d 10m
26.Formâllyreceive T0m
27 Store parts 48h
28.Betrieve and loêdtruckfor daiy directship 10m
Totâl Steps Value Total Value
Creating Tirne Create
Steps lme
TransportLink 3
29. Directship (truck)to Reynosa,l\,'lexico 6h
(100mileswith queueât bordercheckpoint)
FirstTierSupplierAssemblyPlant:
BetaWipers,Reynosa,Mexico
30. Formallyreceiveand moveto storâgearea 10m
31.Storein receiving storagearea 4Bh
32. Conveyfrom storageareato first assemblystep 10m
33.Storeat first assemblystep th
34.Insertfastenerclipand securewith p,n 10s 10s
35.Accumulate partsin first assemblystep 4h
36.Conveypartsto secondâssemblystep 10m
37 Storeat secondassemblystep 8h
38.Claspwiperbladeassembly to sub assemblies 10s 10s
39.Accumulate parts in secondassemblystep 4n
40. Conveypârtsto third assemblystep 10m
41.Storeat thirdassemblystep th
42. Insertwlpingedgein bladeassembly 10s 10s
43,Accumulate partsfrom thirdâssemblystep 4h
44.Conveypaflsto inspection, test& packsLep 10m
45. Store pârts ât inspection& test th
46. Conductinspection, test & packin protectivesleeve 20s
47 Accumulatepartsat pack 4h
48.Conveypartsto shippingdock 10m
49.Storeawaitingshipment 12h
50.Loadtruckfor dailydirectship 10m
TransportLink 4
51.Shipby truckto Harlingen,TX 6h
(100mileswith queueat bordercheckpoint)
Firsl-TierSupplierCross-Dock:
BetaWipers,Harlingen,TX
52.Unloadtruck 10m
53. Cross-Dock 10m
54.Storeawaitingtulltruck 12h
55.Reloadtruckfor dailyship 10m
TrânsportLink 5
route(truck)El Paso,TX
56.Shipvia multi-pick-up 96h
(600miles)
Totâl Steps Total
Creâting Ti rne Create
Steps lme
CarCompanyCross-Dock:
Alpha Motors,El Paso,TX
57 Unloadtruck 10m
10m
59.Storeawaitingfulltruck 12h
60.Beloadtruckfor dailydirectship 10m
TransportLink 6
61.DirectshiptoWestOrange,NJ by truck 96h
(2000miles)
TransportLink 7
73.Shipto Cleveland
Distribution
Centerby trâin 12h
(500miles)
sicâl Actions
Value
Total Creating
Steps 73 o
l r6o7w----1,
ta 640 A
426 91
| 214Hr )
I azob I
| 21291 |
l lo?tL)
.AA' 'U:
C U Ê P E \ TS T A T EV A P 19
To get lrom raw materiâlsro the Alpha DistribntionCenter,rhe productflows throùgh
sovcnâssembly, fabricaaion,warchousing,and cross-dook faciliries.'Iheseare:
. Alpha Motors' StâteStreetAssemblyPlânt in WestOrange,Ncw Jersey
. AlphaNlotors'Cross-Dock, for manycornponenB from manysnppliers, in El Paso,Tcxts
. BetaWipers'Cross-l)ock,fbr partssentlrom sevcralplantsto manycustomers,
in Harlingen,Tèxas
. Betawipers' ComponentAssemblyPlânrin Reynosa,Nlexico E
. BetâWipers'Pârrs\Varchousein Harlingen,Tèxas
. GammaStamping'sStâmpitrgând PaintingPlxnt in Tonâwanda,Ncw York
. \{ichigân Steel'sServiccCcnter in DearbornHe;ghts,Michigan E
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| - l
Haîltn,en,lX
t RMss6h-_l R M5 6 h ,
wtPltoh.
| lehtr""--]
Tj- EDa'--
De".t-1
a =2oooppn
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Current State Map Showing All Facilities
- and Datâ Boxes
-
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z
"EPE = 1 Day" mcaning "every parcevery dây"), ând rhe dcfccr level (in partsper million)
âs rcported lrv tbc custorncr ar the next downsrreâm facility (or by thc customer,sirrsPecror
rt ùc point oishipmenr jn rhe caseofrhe Alpha MotorsAsscmblyPlârt.)
\\:e havc noc drawn facilicyJevelmaps for the Alpha and Beta cross-docksâncl for rhe Berr
pârts wàrehousc.This is partly to keep thc size ofthis gujde mânâgcableanclalso bccausese
n ill cndeavor ro climinâre thcse fâciliries âltogerher âs 1[,cmove through progressivctir!Lrrc
sr.tcs.If vour vâluc screams
will rl-quirelergedistributionwafchonsesin ânl inrsin:rDtc
-
lirlure stâtc for exâmple1o.serviccparrs or cross-docks, vou shoulclalsorlr.rs m:p,
oithcsefàciliricsasaguideroimprovingthcirperformancc.Exâcrh$h;chf.rciliriù\mcnr
in iicilir\ mxpsând in what deail will âl.ivarsbe â mârlerofjudgmcnr. \o bc p.cp.tr(d!.
.latu\r\oLrrrpproâches \r)Ltrcxpeflencexcclrmujares and \oLrencounr.rdii'icr!nr riruriFn_
23
The Ouality Screen
i\s \r c l(x)k ar lhe dâra in thc laciliry boxes, rve norc â rrend \yorrhy of furdrer examtr.ratron.
At Alpha N{otoN Assenbly Lhc dcfccr mre lor wipcrs insrâiled or thc vch;clc - deîects
discoreredbv x rcpresenrative
fronrAlphâ\ llistribution Division in e final inspccrrorr
lusr
prior to shipment is 5 per million. (SinccAlpha is assernbling
2.50,000 r,ehiclespcr ycar
$,irh two wifers per vchiclc, th;s mlrâns that two to $ree wl)ers pcr.vcâr âfe fejecrcLlxr
fin.rl ir,spcction, usually lor screrchcsin the finish.) Ycr when we looli ar dcfccrs enrergrng
from Bcta Wipers Asscmbly (asjudged by AIphâ), we nore thxr thcfc âre 400 clciècrsfcl
million rnrl rvhcnwc look at delcctscmcrgingfrom (ianma Sranrping(.rsjudgcd br lletr)
wc rlotc thât thcrc ârc 2000defectivepartspcr nillion. finallv, whcn rvc look ât dcfccts
ârfivi|rgxr (iamma from tr4ichiganSrccl rhe 1lgùrcsoarsto 10,000pcr nillion.
O.uality Screen
ppm
2000
't500
1000
500
In this example,we wiil use rhe ailplaneicon with a dotted line lor shipmentsexpcdircd
'l
by air ând a rruch icon with rhc samescyleof doctedline for choseexpeditedby cruck. he
numbersin thc regùlarshippingicon (a cnrckof I trâin) sbowthe frequencyof sh;pments
(c.g.,"1 x da1"': one shipmentper day)while the numberin the expeditingicon shows
the nùmberof cosdyexpedjcedshipmentsin thc pâstycâf (c.g.,"2 x year" = rwiceI yea4.
With thesedatain hand,wc arc roadyto conrpletetbe physicalflow porrionof rhe map by
drarvingin the normalproductllows betweeûfacilitics,usingbroada.rows.Notc that tbese
xrc stripcd,"push" arrcwsbecâuseptoductsâremovingaheâdat the commancl ofa ccntrirlizcLl
inlormacionsystemand lot ncccssarilyin accordwith chcimrnediateneedsof drr:nexr
downscream facility.Undcr ear:hof thc transporrlink$ wc rccordtho discânceiù nliles,rhe
$hippingbârchsize,ând d)e percentâgeof defeclivcdclivcriosas roportodby tho customcr.
DEFECTS
2000 % DEFECTIVE
DELIVERIES
1500 10
1000
500
I 2r L- r-l- =
U'"kl.l
'U----d
loây I l'" l-
av4 3- =
| 32iiî" I na--=.r-> rrrrr'-+ l";f"#;l: l-r----) _
Reyhos,Md(o'.......
1
RM536h, RM56 h. "...=
/.'v.'L4
I centt I
^ |s6otn; )
// 64A A
// ti::{
(=fl " .!,!u,
1\Oay 147Hr
| J
I - r "L F-L //
lj'Y l.l lto" ltl -/4221,./'t //,...... .,.....
=
rEd rrrrr-r>
+ l
rrrrr-'-r> l^x::,y:tr:V
ffii-
|
=1uhilân
ll TIME
|
El?a5o.ÎX
westoenqe.NJ eg!,tt"t":_l I
=I Dêfèctlvè 1% | |
N \_.....""'-
=77 I RM5Oh. | -l
2 i\sa. | 2OOO\. I
f--60o;-1 5htp6âNci
t ,lip r,*h I |
|
I
= 6 p â 1 t ê r sI
I,"l:pon = ts.s au,,
lD"t""Natu't\
=g';7;
4.Oà. 4.Oà. o.5â. "!Ai^,
o.5à. | 1 | O.5à. I | 2.6 à. (12o5.) | 1
11(2)
Mapping the Information Flow
Thc rcamhasnow completedmappingthe physicâlflow ofthe productbut the vâllrestream
map is only half done.This is for the simplc reasonthat if no customersignalsa demând
fbr producrsfrom upstream,then nothing\À.ill{low Or at leastnothing shouldflow! We
Lhefeforeneed ro go backto cheupperright cornerofour map and drawthe flow of ordcr
and productioninformationgoingbackfiom the customer.
. Alphâ MotorsHeâdquârters
ProductionControl
. Alpha MotorsAssemblyPlant ProduccionControl
. Alpha MotorsAssemblyPlant MaterialsConcrol
. BetaWipersHeadquertersProductionControl
. BetâWipersAssemblyPlant ProductionControl
. GammaStampingHeadquarters ProductionControl
. GammaStampingPlâncProdùctionCottrol
. N,lichigan
SteelServiceProductionControl
f,
Fr
I
In almosrall manufacruring
sendù seriesof forecâsts,
companies, chesâlesard prodùctioncontroldepa(mentsâctualh
and productionfcleâsosbâckupsffeam.For exâmple.
schedules,
Fe
L
in the car indusrrya chree-monthforecâst!â one-monthrolling schedùle,e weekly tixed
schedule,ând â dâily shippingreleasemight be typical.For our purposes,!he important
L informâdonis the rveeklyfixed scheduleand the daily shippingreleasebccâuscthcsc
rcmally triggerproducrionin fac;liriesând shipmentsbctwecnlacilicics.'l'heseare the
informarionflorrs wc rv;ll câpturcon this map.
: Productionat GammaStamping
15. Transmitweekly ordersfrom Bete IIQ coGammaI-IQ
16. Qucuoar GammaIIQ Production Control 14dxvs
'liansmir
= 17. $cckly produccion reqùiremenrs to GâmmaPlârr
18. Queuear Ganrnra PlanrProduction Conrrol 6 dars
19. Rclcescof n cckl-vproduction scheclule
= 20. Betâ\lareriâlsrransnritstwice-weekly requirements!o GammaPlant
(lonrrol
21. Ganm.rPl.rntI'jrtxlLrction issucsrnicc-weeld)'shippingrclcrsc
* A l t r a n s m i s s i o n sa r e e l e c ù o n i ca n d e s s e n t i ayl i n s l a n l â n e o u s .
Deliverylrom MichigânSteel
22. liansmit weekll' orderslrom GammaHQ to MichiganSteel
23. Queueat NlichiganSteel 14dâys*
24. GammaMaterialsControltransmitstwice-weeklyrequiremenrs
to MichigânStcel
25. MichiganSteelissùest$'ice-weeklyshippingrelease
E
F
At thc sâmctime irlormarionis being releasednr drc l'loo.in eâchplant ir is alsobcrn,:
sent upstream.iiom plânt levcl rnâtcriâlsconrroldcparLmcnrs, in rhe lbrm of dâilv
shippjrg relexscs.Thcse ere the preciscamounrsof exch pârr number dre upsrrcam
.o ship ro irs dowrstreâmcusromeron rhc ncxr pickup. -f'hescdailv
plânt ;s aLrdrorizeLl
releâscâmoun!sare bâscdon known order lexd timcs Ând lhe stocksthorrghtro be on
hand at thc downsrreamplant.
f,Nl
OH
--_l_
--E-
I
V
:
flNl
.'7 t J_
Z-9æ-
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r;h BE
t4
= ,Tft
l.r+
ùh t'j,'^ -i.iL
,.rrr.-f l"i:::Tiï Iæ
L-:-.J
RM536 h,
1 1 RM56 h.
"".......
l v4\
II
14
I t'l
t4 t-
t t ,
t ","
: l/ *E T-
v t-i|",..- I
t wk ..-L.zL4
I Atptâ |
lPlstributirnI
I cent r I
<1 ctevetand.aH
I i /,/
//'l-
960 | Day
,// 640 A
I // 426sr
\_\ ( , ,iJou"
ir----------æ---.---r Drily I
--\
'-1 + | 2.tt9l
. .1rory | 1o7Hj I
1 1 "L rÉLr-
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rrrrr-f> rrrrr-r>
14 TIME
l Hartiheen,rx
f. | 6oon. I
I ahtPôar.h I
U. | =6,panere
I Ita!5po.r
I Detaartw=5 1 = B jdaÉ
t.
32b1e
- 4.o à. 4.Oà. o.5à.
7, o.sa. I r I o.sa. I r I z.oa.ç2o".1
| t
l. 11(2)
t
t
t'
I
I
Demand Amplification
For the pastyear,Alpha MotorsSalesOrder Bank hassenrvery stablewcekly
orderscallingfor 960vehiclesper day,five working daysper wceh to Alpha's
Headquarters ProduccionControl.And HQ ProductionCoûtrolhasreleasedlevel
weekly bucketsoforders to Alphâ'sAssemblyPlanrProductionConcrolatd to
Beta Headquârters ProdùctionControl.
lfhe accualbuild still vaies from the schedule- due to pulling vehiclcsout of
sequenceto coffectdefecrsor becauseofproblemsin rhc paint boothor due !o â
lack ofparts. However,by adjuscingthe scheduleand workingoverlrm€ar d1ecnd
of eachshift as necessâry, the output ofAlpha MotorsÂssemblyvâriesby only
about5/, from the 960urits plannedfor eâchday and all vehiclesbuilt areshipped
on the dailv crainto thc Aloha DistributionCenccr.
2800
2600
30r/.
2400
20y.
2200
107r
2000
1920
1400 -1010
1600 .20%
1400 -30%
1200
'1000
10 15 30
- ALPHAPBODUCTION - ALPHAORDERSTOBETA
I
I
f
t
t
rhe mix ol modcls(A vcrsusB) variesby only about5% daily as doesthe
Similarl-v,
rl 'liim
mix of lvipers(Standârd with flar paint versusHigh Tiim with glossypâirt.)
t On average, Model A accountsfor two thirds ofproduction and Model B one third
rvhileStandardTiim wipetsaccountfor two thirdsof demandand High Tiim che
al
rctuainder.:fhus prolluctionârd shipmentsârc fâirly stâblcat thc customcr(righc)
- end of our map.
-t
al
Dernarrd Arnplification inclu.ling Beta Ultipers
rl
2800
2600
30%
2400
207o
4
2200
10%
2000
,,},u
1920
1800
1600 Y -20%
1200
1000
10 15
2800
2600
307,
2400
2200
2000
1920
/A-
1800
1ô00
vl -20%
1400
1000
t0 15
10
5
-fhe
Gûmmr,xnd i\lichiganSteel,carfyexlm inventories!o protcctthr: customer' cost
of dcmandamplification
implicarions arethereforcâpparent in thc amountof exlra
in !he vàlucstream.
invenrorics
t
Demând A]nplificâtion
-
|!l
: fiËl<-
F-Jl
ra
-
1
rætffi-t i rl
lMichiaanSteell -a--- :
I ee;iêe co. |
14daYo riÊl rl
t"-l
tl
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: \ \
i' T-;L'\ \.
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!-lt
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-V
lonawahàa,N\- '6^
.., Hâtttt,eilx .,.
RM536h. -1
tr
tr
tr
F
3a
t
Final Current State Map Showing Demand Amplification
:
-\ fi Nl
E i .:-:-
-----Lj:lJ- r--.*G---f r=
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21391
oz tt I
F"-l- r-r--L.-\
f1! U4
rrrrr-+ rnT--r)
TIME
r-otâl = 44,6 da\s
Î"\ffn = rtzawu
^vatue = 32'1eeô.
L@rng 547 din.
4.Oà. 4.O â. o.5à.
o.5à. | 1 | O.5à. | | 2.6 à. (12o5.) | 1
4
-
The Limits of Our Map
^s the tcam finishcs recording these product and informarion florvs, it seems scnsioreto
concludethc Cùrrent Scâtemap âr this scopeof mapping.'lhc rnap cloesnor go all rhe wav
dorvnstreamto rhe customer trking delivery of a caLat rhe dcalcr.shipantl it does nor go al
the wây upsrrcâm ro thc steel mill, much less to ore in rhe groulld. N,lâppingthese âddirional
stepswould doubtlessprovideadditionalinsights,but to do so woultl reqLrirclargearnounrs
of time and cxpense ro examinc organizâci(mswhosc behâvior the reâm hâs lirde prospect of
chxnging right now Yct cven within this scopc, rhe rnâp covers a consjdcrxblc portior of â
Icngthy ând compicx 1'aluesrrcâmând uncoverssomc very provocâtivc pcfformancc ieaturcs.
Wc canoxprcss
rhcsofindingsin tor.rrsoi lord cirlcsrnd invontor.y
tLrr.ns:
LEADTTME (in days)
Grmma + llota + Alph.r= In-ltrnr*
Curent State 20.6 ,+.6 2.8 31.0
'lirnspon =
+ lirtal
13.3 44.3days
INVËNTORYTURNS
{annually)**
t1 19
*lncludesthreedaysspentin wârehouses andcross-docks.
x*Notethatfacilities
with simple,frequenractivities
(e.g.,assembtyoperations)wilt hâvehigher
turnsthanfacilities
with manybatchoperations, and individuat
fâcitities
wiI havehigherturns
thanthe entirevaluestream.
Wirh rcgard to quality aûd dclivcry reliabilitv. we noro that cncl-oi thc-valuc srreânrincjicâr(n.s
of both ncasures ârc vcry good (5 ppm âncl I7r rlefccrivc shipmonts ro rhc cusromcDbur rhis
is âchieved chrough â soriesof scrocus$,irb signilicanr costs and dela1,s.
With regârd to information eboùr cusromer demand! wc nore thxt orcler infbrmârion is âcrcd
upon up to 17 rimcs and stor.ccl
lor up to 5ll clâ),sin queues.Whar is rnorc,six ilclividualsin
rcccivingand shippir,g.lirecrlyinrcNene in mcdiatingorder florvsrvirhinan cxpensivc,
technicâllysophisticaredinformarion managemenrsvsremthâr on its iàcc is rorâjlvxuromârcd.
Evcn with this intervenrion- end in somecâsesprobablybecauscof it dcmand
rmplifioârion,vith compensâring inven|ofi(-sto pforecrcusromers,increases
srcaclrtv
to
r lcrv high lcvel âs onc looksback up ùc vâlue strcâm.
-
E 44.7
Total LeadTime
ll days
VâluePercentageo{Time
a!
( v a l u ec r e a l i n tgi m e o.oa%
t to lotaltime)
Ë ValuePercentageof Steps
(vêluecreatingsteps 11%
to totâlsteps)
È
È InventoryTurns 5
Ë
OualityScreen
tE (detectsâtthe downstreamend 400
ovêrdefectsat the upslreamend)
*
DeliveryScreen
È
(7odefectiveshipmenlsat the a
downsùeamover% defedive
shipmentsat upsveamend)
Ë
DemândAmplificationIndex
t (% châfge in demandal downstreâm 7
ênd over% chânsein demand€t
upstr€ameno,
t
t ProductTravelDistance
(miles)
5300
t
E
E Finalll', we must notc a suddenly obvious point âboùt the performancc of the many
â deparrmcnrs and firms rouching rho physical product on its 44-day jolrrney and ordcr
inlormation on irs 58 dav journcy: IJowever effective thc var'iorrsfuncrions - opcr,Lti,,n',
d'
production control, logisrics,menufacturing enginecring, quality, and purchasing- rnay be
in âchieving rheir o\['n olicctives, they are nor at âll cffective in supporting this prodrtct on
its paù to rhc cusromerWhar'smorc. bôcâusethe processes involvcd alrecommonto âll
productspâssingdrroughthcsc depàrtmentsand firms, it is highlv unlikel-r'$at thcl_rre
doing a berrcrjob of supporlingorhcf productIàmilies.The funcrionaldiagnosticaspcct
of our extendedmâppingprocess which rve bclicvc is icsmosr importantcontribution
to firms in rhc long run functionsàll ùe $'r-v
rhereforcrcvcâlssôverelymal_perfonning
up and down the vâlue stream.
PABT I THECUNRENTSTATEIV4AP 4 1
=
tr
=
42
Principles of a Lean Extended Value Stream
t ifty vearsegoTiriichi Ohno at Toyotaenumeraced seventypesof wastein valuestrernrs.
\bu nrayhavethemrremolizedby norvbur rbevbearrepeating because the lypesof\rrstc
arc thc slme 3t the process,thc làcilir),,rnd the extendcllvalucstrcamlcvcls of anal,vsrs:
-
Waiting- [JsLullyl)roduccionîssocidteswlLitingfor mtchinoscocyclc.
Unnecessary motionin the workplace- ^ssocidrcsnrovingout of thcir worlispâcc
f,
ro find mâtcriâls,
tools,workinsrructions,
âod holp.
È
Wbcnmappingat rhc lacilitylcvclàndât thc process lcvclwithinTùcilirics, wc rrc rlw.lys
fl concernccleboùt overproductionduc to poorinfornràrionllows r/irrlfi 1àciliticsrnd thc
f, dcsircof nranagcrs to rnoveprochrcts
âhcaclto rncctperforrnance mctricsfor cquipmcnt
rutilizttion.(Ohnoâhvâyss csscdrhât ovcrprocluction is thc worst\r,rstc.)Wc arc rlso
tl lool<ing proccssing,
carcflllyfor unncccssary dcfct:ts,
rvaiting,end motion.
È
When rve more our anâlysisof productend inlormarionflons ro rhe exteûclccl, mrcro
.{ lcvcl,ovcrproductionis srillrtcr;tic.rl
concornbul nowclucro crraticinfomarionflorvs
bcrwccnlirms ând làcilitics.Ancl\r,cârc now spcciallvintcrcsrcclin ùc nvo iinal lornrsof
lvâste:unnecessaryinventories(clueto erraticinfbrmâtion1lowsâswcll îs incâpâl)lcxnd
.* batch-orientedùpsùeâmprocesses) àûd unnecessarytransportation(crusecltrr loc.rti,,n
decisionsrhatseekto optimizeperformance ât individùâlpointsalongthe !,âluesre.nl
raûcr thantho rvholcvahrcstfeam). Rcducingcheseûree formsofrvaste- /argclr'ûr'
.d bettel mdtlagihgin[omlatioh flaas and logistzs - rvill bc ccntralconccrnsfur our
exrended'nrapping ol'liture stirtes.
-4
What shouida leanextendedvaluesrreamlook likel
flowcvcr, cvcry facility âlongon !hc suoâmnocdsto be iwrLc of thc cnd ràtc of
consu,npcion to calcularc fâcility-spccific
tâkcrimc.Production ar cvcryupstrcâm
stagcshouldtur on àvcrageàt thc sâmcrâtc,âsadiustcdfor rlrc âvailablcamounl
of prodùcrion time ât cechstcpânddrc noodto makcmultiplccop;csof somc
productsto incorporâtcin produccs downstroam.Any timc wc scc â chronicpàttcrn
of imbalanccdproductionratcsin diffcrent facilitieswe know wc dont havcâ
leân vâlùestreâm.
- 'lVhat
we canlearnfrom comparingproductionratesupstreamwith actuâlconsumption
-
downsrream is how faithfully the productioûcontrolsysremis serding true customer
dcmand(rvhichwe call "signal")upstreamversusdistorteddemand(whichwe call
I "noise").If rhereis significântnoise,prodlrcing"demândamplificacion" unrelâtcdco
ù
cruecustomerdesires(aswe seein our CùrrentScatemap),stepsneed cobe raker
ro eliminatethcsegyracions in futurc stâtc..
-
A secondleatureoI a truly lean extendedvaluestreâmwill be veiy liftle inventory.
t 'fhis
inventorywill consisrof rhc minimum arnountof (1) rawmacerjals, (2) tvork-in-
I process, and (3) finishedgoodsrequiredto supportthc nocdsofthc ncxr downstrcam
customergiven (a) the variabilityof downstreamdemand,(b) the capabilityof
!l
Lrpsue?rm processes, and (c) the inventoryrequiredbetweenprocessing scepsdue co
-l bacchsizesand shippingquântitics.Toyotacallsthc minimurnârnountsolinvertor)
neededto sr.rpporc checustomersin a valuestreamat àny given time the standard
Il| 'fhe
inventorp srândârdis câlculnrcdfor oâchcâtcgoryof invenrorydepending
ù upon its funccionin rhe vâluestroâm.'l-oyotâ continuallysccl$ ro rcducerhis
âmountby dccrcâsing bâtchsizcs,increâsing shipmentfiequencies, leveling
t dernand,and improvingcapabilicy.
tt
t||
Lovv Inventories \rvith High Demand Variability and
tI = Chaos
Lo\ r Process Capability
I We sometimes encounterleanimplementers who seekto reduceinventories
alonga valuestreâmwithoutbotheringto calculate the standardinventory
I neededfor the currentlevelsof vâriabilityand capability.
An immediate
"loweringof the waterlevel"may indeed"exposethe rocks"and put
ct
pressureon everyoneto go fasterto reducevâriability and improve
Ira capability.
However, a morelikelyconsequence is chaosand outraged
customers whenthe newly"lean"valuestreamfâilsto deliverthe right
l{ amountswith the rightqualityat the righttime.
EI
1 PARTll:ïHE EXTENDEO
VALUESTREAIVI
The Many Forms and Uses of Inventory: Greating a Strategy
We'vede{inedthe threetraditionalcategories of inventoryand compâredthesewith
severaladditionalcategoriesin commonuse (âs shownin the nextpage).Notethatthese
categoriesoverlâp."Finishedgoods"can be "safetystocksl"bufferstockslor "shipping
stocks'lWhattmore,the sâmeitem- a palleto{ windshieldwipersin Betat finished
goodsarea,for example- can be includedin severalcategories - a "safetystock"ând
a "bufferstock"in the caseoTour wiper- dependingon the practiceof the firm and the
The keypointwith regardto definitions
facility. is for the membersof the valuestream
teamto agreeon a consistent useof this sometimes confusingterminology
The key point with regardto the inventoriesthemselvesis for the team to makea strategic
planfor everypan in a futurestâte,describing the reâsons for keepingspecific amountsof
materialsand goodsin specificplacesas standardinventory. As they do this,manyvalue
streamteamsdecideto actuallyincrease the amountof inventoryin a downstream finished
goodsareanearthe scheduling point,bothas a bufferstockand as a sâJetystockThis
guardsagainstdemandamplification trâvelingupstreamandfâcilitates the reductionot
work-in-process anclraw materiâls to a very low levelin upstreamfacilitiesBy increasing
inventoryat one point- seeminglya stepbackward- it may be possibleto reduce
inventoriesat everyotherpointalongthe valuestreamandfor the vâluestreamas a whole
E:E
rfrll
l.,"irbll
EEE
#Él
lr-ie ll.,'ir-l|æçl
t-
I
a
3
a
t
TRADITIONAL CATEGORIES
ta
Definedby their positionin the valuestream
t
Raw Materials
ta Goodsenteringa facilitythat havenot yet beenprocessed.
I lrvork-ln.Proce6s
Itemsbetlveenprocessingstepswithin a facility.
l|
I Finished Goods
Itemsa facilityhascompletedthatawaitshipment,
I
I
ADDITIONAL CATEGOFIES
I oy Inetr purposeIn Ine vatueslream
LreTtneo
I Sâfêty Stocks
Goodsheldat any point {in RawMaterials,
WIB or Finished
I Goods)to preventdownstreamcustomersfrom beingstarved
by upstreamprocesscapabilityissues.
I
I Buffer Stocks
Goodsheld.usuallyat the downstreamend of a facilityor
I process,to protectthe downstreamcustomerfrom starvationin
the eventof an abruptincreasein point demandby a customer
I - a demandspikethat exceedspoinl productioncâpacity.
Shipping Stocks
Goodsin shippinglanesat the downstream end of a facilitythat
are beingbuilt up for the nextshipment.(Theseare generally
propoÉionalto shippingbatchsizesand frequencies).
a
P A Ê TI I : T H EE X T E N D EVD
A L U ES T Ê E A M
A third fealure of an extendedleanvalue streamis as lew trunsportlinks
âs possiblebetweensteps in the productionprocess.
As we haveûotcd earlier,no customerattachesvaiueto rnovingcheproduct
âround.Indeed,customcrswill ofcenbe willing to pay more for a producrif ir
caû be suppliedin the exaccspecificacion they rvantvcry quickly.Thus we
ncod to askaboùtcvcry ùansporrlink: Is rhis roaliynecessarylSubsticur;ng
modes,notablyâir for truck, is ccrtainlyan alternacivcway to reduce
throughput time,but cypically at an unaccepcablecosrprcmium.In general
we want to eliminârctransportratherd1ânspeedit up,
E
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rE
tr
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rE
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Future State I
t5 Once the tcâm completesthc Currenl Statelnâpând evcryoneâgreesùâr
it is accurace, the kcy questionbecomes,"What shouldbe donc in what
5
sequcnceto crcatea bctler ftlture stale?"In our cxperlencc,the eâslest
EI placeto snrt is to crcatefuiure stateswithin thc wallsofcach of the fàcilirics
gl rhe productvisitscl'I rouccto dre cuslomer.l]y drawingand thon achicving
â lururc sate of the tyPc describcdi\ LearnirS ,o S?3wirhin cachmx.jor
5 t'rcility it rvill bc possibloto achicveâ subsknrialimprovemcttin tho
performanccof the enrirevaluostreamâûd to do dlis w;tlrin à shorltime
'fhis
crearosconfidonoein lhc proccssând givc tcâmsâ sensethât mlrch
g
morcis possiblc.
rcsulto1lheseâccions
The cumùlâtive at thc plantlevclis shorvnin thc
summârvboxcsoû thc Future Stxte 1 mâp.
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f-- *;;---f a ,ooo^ tnffinr= osaas
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1 | "è"no | = 6 P â r ê rI.
lDêrè'rt"e=3%l = tccûye
1 W4 1 ê
c"yo^"='#)ffi
4.O à. 4.O à. o.5à.
o.5à. o.5à. 1 1.3à. (12o5.) 1
4 7 (2)
@ \
'@
io]iilr/e iir,::Li!!ii! ,.;Ji i{l
Future State 'l Chânges
ill:r.g. rLr1,r rl;-':rl.i[{:!]:
,\t Ahhx NIot{)r'si\sscmbl_.-it rvNspossil)lctrl clirlinxrc r liiriin{
li! rt r,t:,,n r i(:!: !rr,-liJ:l
opcfâtion.rn.ldelirer px|ts dirccrlyfronr rcccjvineto lifesjrlc. \t thc
i1,rili,,7l\'/,J r7- r("I
\rDc.iIrrc, r sinrplcprrll svstomwus irtlodrrccri1)crwccnlinrl .r\scnrbl!
-ilE t!i.rii Stili t'r \rv.Llliii,r
rnrl tt ipct sLrLrasscnrbl!
n) rut rhc .rnrountol irvcntor! il irLlf $.lrilc
,irrf/ inirlt ,/ Ii'r'r', t,11
snroothingrhc norr
irirrË,V Lrrir,'itrdJl ilil"l,1t t{o
i]!r!t! [!1, Gù{!lil!I-:.'ti ^r llcm Wit)crsihc icunr rxrli athrntucc ol rlrc u;rprouchLlcscribcrln
ii i,r!,,i\',r,rtl;rlriii tlEl-iiirlltutll Ctu'tltit1!(:otitnluats /rlorr.,rorclocutcJ lilnrcrlr srrrll rrlolc rusls irrto
\!r/[ill.]ilir'rr1tt'-fliU o n c c c l l \ \ ' h i l cr o ( l u c i n r- h c , r L , , , i l )oc l, l , r o r l u c r i o n , r s s o c i r, cr rccrsl c t l
\l^ri.!:tl:j('.1::rO*i 'iliO l i o r r rf i v c t o r l r r c c l.r r l r Ls l r r r r1ci r r c ,r l r cr c l r r c r c u r c (l lc i c l c r lp r L l Il r r p s
slrrt.t 11iiir'tiin-_rùl:ll["r; l i o r r t l r c s r r l c r r r r u r l iicnt r h c s l r i t ) t ) i r g , r ctr. )r l r cx s s l r l ) l \ f c l l x r i l l r t ) n l
t i ,lji Lr,iIJ i [tit41dù r l r cr s s c r r r l ) tl :\ c l lt o t l r cs L r ; r c r r r r u rilni cr tc c c i \i r r q r. o r c r l r rcr i r i c r r t o r i c s
irrrLldl Ll[Ëû()ilfl[ii{,
ItId iriill fa.tll|j tjt ' (,
o (,rilelii (i 0i, rtj l r i r r l l l r l. t ( j r r r r r f rS
u t l | | ù p i n rr.l r c l ) l r c hn l û L r c( ) l r l r cr ( l r t r i q l n ( l
'ili,ûdrlllLl ; r , L i r r t io
r r;gr c t t L t i o r vr sr sr c c c p t c ( l i ) rr l r c n i o r i r ( : nIri.r L r h cr r| ] l L r r ri n r ir 0
ùLldL
i n t r o t l r r ri:rcr r t i n r r o r rl lsn l r y c c l l L r l : L r i zti hn cqs c , ) t ) c r r r i o nr h s .c t c u r l
44.3 23.9
TotalLeadTime àays
day6
tt
O!ality Screen
al thedownstream
{defects ênd 400 200
:
overdefects
ât theupsùeam end)
I Delivery screen
(7"defective atthe
shipm€nls o a
:a downsùeêm over% deleclive
shipmentsat upstream
end)
! Demând Amplification Index
(%chânge
ln demandatdownstreêm 7 7
t in demandat
endover70chânge
upstreamefdJ
a
ProductTravel Distance
I (miles) 5300 5300
)l
{ At thc lcvel of the stamping plànt, rbe componeût âssembly plant, ànd the final rssemblv
plant these changesarc often tnrly imprcssive. In the most srriking instancc - rhe Betir
1 Wiperscomponcnt$sembly plant in Revnosa- !he nLrmberof slepsat hâsbeen cu! b!
-l 60% and rhc rhroughputtimc hâs been slashedby 75% However,in rcrms o1lhc cnrir,,
value streem,as expcricnced b1' the cuscomeret the end, chc chânge in pcrformancc is ntorc
modest:a 2-5%r'cductionin rhc nlrmberof stepsând 46% redLrction in toralthroLrghnultimc,
'l
wbich is still much longcr rhrn the end cusrtnneris lvilling to $âit hus dtc wholc \âlrre
stream is srill producing to a forecast rrther than !o confirmccl orcler.\\'hat s more, ùe
performanceimprovementsonl-vassumerhesemagnitudes$'hen e|en facilitr touching
the product âchievesits flcurc state.
PAÊTV: FUTURESTATE1
This realizationprovidesa usefulinsightto thc valuesrreamceamaboutthe limits
of isolaccd,individualaction:Ilyou wânt to achievea breâkthrough- x "gânc
chânger" that âltcrsyour positionin you| industryor producesprofirslar âbove
industrvaverages, vou'll need to opdmizethe entifc vâlLrcstrcammthcr ftan
stoppingâftcr improvingrhe flo1valongsmallcoursesof the srreamwithin your
own laciliry xs rnânynxnxgcrsând firms clotoda_v.
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Future State 2
^s rhc value st.eâm team âchicvcs l-uturc State l wirhin cach facility ancl begins t
scrse !ha! collcctive managcmentof chc value screamis possible,it's time to tâkc the
-Ihis
next leâp. is to draw and quickly achieve â Future Srate 2, intro(lucing a smootlr
ând lcveled pull âlotg with frcqùeût sbipmcnts betwecn câch of ûe fâcilities
lârgcrthrn minimumprodûction
In pncricc,shippingqutntitieswill bo oonsidcrtlbly
- cvcll in e vorylctn valucsrrcâmlior cx{mPIc,thc minimumshiPPing
qlurntities,
qùÂnrityof wiporsm rhc finaltsscrrblyplantin thisc?rsc is onc Dâllctwich20 tr1t)
olwipcr ârrrswirh eàchtraycontaining1(;wipcrànrs,for.r tot.rlo1320rviporslt is
simplyroocxpcnsivcto shipirrdir'iclLral mtrchlcssindividutlrvipcrs
rr.rys,
PAFTV:FUTUFESTATE2
\\t rvill rvrnt to scnd rhese orders to thc Betâ assemblyccll ;n dre sequcncc:
1 / 2 t 3| 4 t 1 / 2 / 3 t 4 t 1 t 2 t 3 t 4 t 1 t 2 / 3 / 4 t 1 t 2 t 3 t 4
1 t 1 t 1 / 1 t 1 t 2 t 2 t 2 / 2 t 2 / 3/ 3 t 3 t 3 t 3 t 4 / 4 t 4 / 4 t 4
Heijunkadevtce i -.r-.r
' l l c a " d l
i
-1
| ?rintet I
'---1-r-
i
v _-l
Clean,Taiit&tale
-t A99EN'BLYCELL
--1
I
GammaStam?inq 6eta Wipere
N o t e t h a t t h e r o w s i n t h e h e i j u n k ab o x a r e f o r t h e f o u r t y p e s o f p a r i s i n t h i s p r o d u c t
f a m i l y w h i e t h a c o l u m n s( a c r o s st h e t o p ) a r e f o r t h e p i t c h{ r a t e )o f w i t h d r a w a lo f t h e
c a r d sf o r c o n v e y â n c et o t h e u p s t r e a mp a i n t p r o c e s s .
ifhc key poinr ro noto about cach of thcsc arrâtgencntsis ahâtthere is no ncod m scn(l
clay-ro-clayplocluction insûuctions dowû from N,lRPsin thc plalt officc or ar corrlpxnv
hcrdqLrârters. Nor is thcre a need for cusromersto scnd daily rolcascsgcncntcd by thcir
schedùlingcomputers.Rîther rhân foquiringclâborârccrloulttionsin r centrâlizec
s1'stemon what shoulclbc procluccdin eâohplânt .nd ât eâch mechinc git cn
processing
cxpcctcdopcratingconditionsrnd pre-estâblished leâd times - thr: new s_vs!cm
sinrpl\.
|cflcxivcll rcrrdcrs from dle next upstream point rvhar has just bccn consunccl br thc
next dowûstreâmpoin!,
20
<______
RM16
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a.oà.(3131
s.) 1.2à.(5os.)
E
20 13) I (3)
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3
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Wiper Value Stream Future State 2
Shouring Level Pull Betrrveen Facilities
ffi;;l
IoÀ*Ê"ùl
+
--r
fo,rvl
/-L.-1--l
| ^tphâ |
I Dldinbutloi I
r { \ I c6it!' I
Clêveland,
OH
A-
ll
lftwl
|
-
32ob I
//
Woxl--'%
TIME
tnffinr= o.sawa
l--1aoo;-
t ohF6;h_-l
= Y.cdây.
nÀe
I o"t".at";=1x,1,
value 32b1sèê.
Cwring = 54,7 frin
4.5à, o.5à,
1 1.3à. (12O6.\ 1
7 (2)
ouâtrryândD.nv€rys.'4n
The Need for Controlled Experaments
"But," you will say,"how canyou do this for informationflow for only â single
valuestreamco-mingledwith manyotherslThe samecomputersendingsignâls
to controlthis streamis alsoschedulingotherstreams.Surelythe wholesyscem
must be chângedin orderto chângeanl'thingandthis,r€alistically, is a mâssive
and cosdyundertaking."
The hey point is for the valuestreamleam to tahe this opportunityto try the
experimentand judge the results.We confidentlypredicrthat the performance
of lhe valuestreamasmappedin FucureState2 will arguefor convertingmore
ând moreprodùctfamiliesto simple pull systcmsso thacthe overlycomplex
productioncontrolsystemscommonlyin placetodayare graduallyconverled I
to ân âctivirywhere rhey âreactlrâllyuseful.This is capaciryplanningon a
lotal svstembasis. E
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/a
TLUN SlLul
'l
his hasan âdditionâlrnd substrntiîl bcnolir.'l hc iùtlodrrctionof nrilli
rùns rnd morc lrcqucot dclivcriosmxlics ir possiblctu clim;nârcdro st()p
ât thc RcteWipcrs lvrrcbolrscin lllL|lingcnan(l rhc loùg cxcLrrsion
m drc
'l
Alpha l\4o<xscrossdock in IJI P.rso. his srvoscight stopsand six dnysof
throughpurdmc ând rLùousand rrilcs of rr:rûsporL(Plus.i1 rhc parrsfor
othcr \'âluc streâl]]susing thcsù ftcilirios arc rrcâtcd similârl)', the 1àcilitics
thcnrsolvcsc:rnbc clirr,inetedwith najor cosrsâvings.)
<-
20 (3) b (3)
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Vviper Value Stream Future State 2
Sho\rving Frequent Transport Loops
E \
A-
4À
/ / @ A l
ll ) 32oo I
r-'l
TIME
Iriff! = s oa"".
J
l--1ao;;:-f
| ^tpe.'t-l
= e.3dây6
=1%1 rth;e
|D"i""tk
=
o.5à. "!!#^"V).;,i
1 1.5à. (12O6.)
7 (2)
Future Stâte 2 Sfrmlr|ary
Current Future Future
State State 1 State 2
ValuePercenlageof Sleps
(vâiuecreatingsteps 11% 15% 21%
to total slepsl
InventoryTurns 5 Y 14
OuâlityScreen
{defectsat the downstreamend 400 200 50
overdetecisal the upstreamend)
DeliveryScreen
(o/.dêfectiveshipmentsat the a a 3
downstreamovêr7odefective
shipmenlsât upstreamend) z
Index
DemândAmpli{ication
(% changein demand€t dowrstreêm 7 7 5
end ovêr% changein denand ât
upslreamenoJ
J
;
-
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=
scqrrcncoof ûclivitics
^ scconclprinciplc is rhât drc oloscrùis comPrcsscd
is to thc crscomcf- Alpha NlotorsÂsscnrblyin otrr cxrmplc - thc bcttcr'
Thc ol)jcctivcof lcân thinliirrg,aftcl all, is to rcclucocostsânclimPmvc
quality while gcrtingcustomcrscxactlywhxt lhoy w.rnt \rllcn thoy wânl il
Remote m,rnufâctlrring âlwâys works egainsr dris gorl becausc ic increases
rcsponsctine oncc tho customers'dcsircs.tre known. Thc unâvoidablo
consc(lucncefor rcnrorcly locâtcd manufircturcrswho arc clctealnincclro
irnrnediately scrvc dreir cuscorrcrsis ro creatc invcnrories of fin;shed ùnits
produocciro (usuâllt inacclrrâte)forecasls.In the current global security
onvironment,whcrc shipmentsacfossborderserc suliccl to disrLlPtions,
rhis is ev(-n morc the casc.
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P A F T V : T I ED Ê A LS T A T E
È
Demând Amplification
35
30
20
15
10
5
E
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E
H lg:J
I o,a* |
H Oea.bon , Ml
Con+"rol oH
Clevelanà,
Control (l
,/ /r
% //
.it t------
tE- \ t shrpç;_l
I o"t*i,*1%-l
I CELL I i CELL I
f------------1^ r---loe'a Al?haMotorg I
I o,nna f( 4l I
wt9{6
leranptrq l- | |
'a TIME
PARK
9UPPLIER
a ÎP^t = z.oa^uu
'! -l
!]-a__l I RMt
\tll?12 | wIP2 |
I 1 6 2 l t F a $ l
t
EPe-|Aa\ | F P E = | D J VI
I oelê.!o= | DeIeea.= |
I oep. 2?pn I = zzo,*,.
!l o.5à. "!!)f."
"i;;" 547 nin
! à.(3161
1.1 e.) | t I o.oa.Po s.1 1 t
5 20 (6) 7 (2)
!|
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l.leal State Surnrnary
TotalLeadTime
44.3 23.9 E.A 2.4
days aays aayg days
ValuePercentageof Time o.oa% o.16% o.6%
(valuecreatingtime 1.5%
to totâltime)
ValuePercentageof Steps
{valuecreâtingsteps 11% 15% 21% 27%
to totalsteps)
InventoryTurns I 14 79
Ë
Ouâlily Scaeen
(d6fectsat the downstreamend 400 200 50 2.5
overdefectsal the upstreamend)
DeliveryScreen
(% defectiveshipmenlsâ1th€
a o 'l
downstreamovero/odef6ctive
3
shipmentsat Lrpslrêêm€nd)
DemandAmplilicationIndex
( %c h a n g e
i n d ê m a n da t d o w n s ù e a m
e n do v e r% c h a n g e j n d e m a n da t 7 7 5 1
ùpslrearnend)
ProductTrâvelDistance
(miles) 5300 5300 4300 525
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Dramatic Changes
Throughputrime from raw macerials to cusromerhasnow bccn rcduccdby 9,1%to 2.8davs, E
and prâcticâllyall of the transportlinks, invcntories,and handofls- chckcy driversof E
connectivitycosts- havebeen eliminated,from the final assemblerbâcli rhroughrhe
wipcr makerto the stamperand raw materialssupplier ln addicion,ir is hardto telt whcfc E
one compânyleavesoff and the next picks up the valuestreâmbccauseactiviriesformerh 3
conductedby Alphâ,Beta,and Gammaat locâcions thousandsof milesapartarc nos being
conducredin continuousflo$'in one roomlocatedacrossthe roadfrom the customcr. 3
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l /inners Need to Compensate Losers
I
r ,\s lumre state and ideâl stêle maps are clrawn up, it rvill quickly bccomc
apparcncthat posirivc change is most likely if the team can lind a rvay fbr
r winnersto compensâteloscls. l his is bccâuscit will commonlvbe !he
câse chât a downstreâm participant can gct bcctcr valuc at lowcr cost ifan
I upsrream pârcicipantleâi,esoùt wâsteclsteps, irnplcmcnts lcvclcd pull
e systcms with irs supplicrs, incroduccsmore câpâbleprocesstechûologies,
ll
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Yll
,/"\9 (
J\
d
fl
lfiru,r c : . : i l 1p o . . i L r lrco c o r n r r . rrror :r : rIl' r ^ ( l r ( r , , ^ rl ) c l ; , r c qf(ï/
/
\j/ --
! . , n r l : r l l { r r l rl.r r r . . r , r r c i r r r t , r , r r r r c r r r . . i o r n t \ r . . r l iI,n' ri Ë l , r l ' c
nn cirsicf;ssuc.
Ilowcvcr,tr'rditionlll)urchrsing.urcl
accorrnting
sysrcnrs
virlucsocanrpîfticipxntsrnd in xny clrsc
rrc oltcn incompat;blcl>ccwocn
ârc Doorlysùitcd lor càlculâtingprocluctcosrsflr crrchprrxluctf.rmil1i
'l'hoso
systcmstvpic:rllyr'crlrrir'c
cnor'nrous
arnountsof Llrr.rtt) rllocrrrc
4
ovcrhcâdsl)y pr{xluctund ûcy usLrally
fril t()ciloLrlxtcoostsiû il wâv
= thar âll farricipânrswill acccptas valid.
1
dcterminingdrc incrcncnt.l cost (in somc commoncrffoncy rnid rncl rhc
incrcmcncalboncfir (in the semccurrencyùnit) of crch proposcdcbrngc in
4 lbe vâlùe sLreâmin fucurcand iclcelsraccs.
This is surprisinglycesyi| nrrny
I
câsesând càn chargc the lbcùsof thc vâluc srfcâmrcanrltmnrrcdrcssing
(rr dcfcnding)thc mistakesând inequitiesol dre pâstnr ,:liscovcring
1 win-win-ivin alcernâtivôs1or dle futurc,
"1 'I
he problemof cfoss-firmcompcnsarionrvill nor bc such ân issùeif the
4 product being mâppe(l is nerv ancl the collrsc of thc valuo srrcarnis nor
consrrâinedby existing facility iocatiors or even existing supplicls.
1
However, ir \r,ill still bc impolrant to calculare connectivir_vcosts1br !,arious
conllguradonsof the vâluestreân to scc vrhichonc rvill acmallvproducc
rhc bcst combinationof lorvcost and rapid customerrcsponsc.
Timing the Leap to the ldeal State
Lower-speedpresseswill be cheaperand more capableif usedon ncw parr
designs,and a changein the raw matedalproviderwill be tequircdaswcll.
(Notc rhârNew JerseySteelis to be sùbsritutedfor MichigânSteel in rhe
Ideal Stace,to rccluceshippingdistancefor sceelcoils from 500 milesand
eight hoursto 25 milesand one hour.)Therefore,rhe besrrime to leîp ro thc
IdealStatcwill be with lhe next productgencration,nhen new process
eqùipûent will be necdediù any case.
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Achieving Future States
\ilue streammapsât the mâcro-levelarevery usefuifor raising
consciousncss aboutwasteand the lack of customerresponsiveness in
today'stypicalcurrentstate,a situationoften invisiblc covnluc sùcam
partnerslookingonly at thcif owt opcrâtions.However,ifconsciousness
is raiscdbut no luturescateis achieveddrewholernapping cxcrcisc just
createsmofe corpoaate wallpapcr- pLrrcmuda,
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tl
A valùestreâmplân shows:
. exâctlywhat your teamplans[o âccomplish,step by step
3 . measurâblegoâlsfor teâm members
:| . clearcheckpointswith real deadlinesand responsibleindividuals
. the lormula for sharingcostsand benefitsamongpârticipâtingfirms
I
3 This planningprocesswill be fâmiliarto you ifyou hâvehâd experiencewirh
policy deploymentor ifyou havealreadydevelopedlaciliry-levelvâluesrream
I
plânsof the type showîinPafiy of Learftittgto See(andPaftyl of Creating
I ContinuousFlow).However,ir will be a bir morecomplicatedbecausethis plân
buildson the "YearlyValueStreamPlan" for eachfacility being developcdât
il
the sametime, Âsillusv^ted i^ Learnihg to See,
T
The wiper valuestreamteam developeda simplevaluc streamplan,asshown
I or the nexl page,
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I PARTVI ACH EVING FUIR: S-A--S '''
January2OO2
Miahiïah9teel
t
"valuestîeam leaàtitke = 2,Odayâ
comPress@n oy lnvenloryLu?na= 79
colocalinî all B
st'e?eaàiacent Quâlitysarcen= 2.5
ao cu9tottel Deliverysareen= 1
Demanà
amplifraâlion
E
E
E
O Stan ^ Completion E
F
Ê
SIGNATU RES
SCH EDU LE
Ope.ation
?urchasing
?c&L
ManufacNurir,g
Smllh EnlineerinO o
rF Quality
o
6aker ^
î,rmfiaciliry)
Joheg A
ft
iiSl
ii5
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T O On target À Behindtarget PRODUCT FAMILY: WipeÉlor AlphaMoâelsA+g
I
t P A Ê T V l lA C S I E V | N G
F U I U R ES - T A I E S 79
CONCLUSION
At rhc cnd of rh;sbr;efbreakrhrough guidefor achieving lutureând idealsrares \\'emusr
sharea secrer:You'll nevcr actuallyâchieveyour idcal statelIt rurnsout that chereis alrva_rs
morewas!eto removeard ùât valuelbr the customercânalwaysbc further cnhanced.
5 As flrms ând depârrmencs leârnto sec togcthcrit shouldâlsobe possiblero mâkeyour mâps
ovor more inclusive,eventuâllyreâchingâll the wây ftom rhc cuscomcr's Lrscof chcproducr
-
throughthe lifc cyclebackupstrcamto inohoatematterbeloreany processing. And wc llelievc
-l ir will be âttractiveto mâp wider ând wider rângeof goodsnnd scrv;cesincludingoffice
processcs, âsmâny readershavealreadystarcedto do with the mjcro-m ps it Learninqto
See.(For example,we at LEI hâveâlreâdyheardfrom rcadcrsaboutmappinggold mining,
fish srick mânufacturc,poscalsortingoperations,insuranceclâimsprocessjng, the writing of
technicalmanùâlsfor complexâerospâce products,and visi!sto rhe docror.)Becâusethere is
alwaysa valueslreamwherever there is â product(lvhethcrit\ a good,a scwice,or some
I combination), r,e areconfiden!lhat consciousness willcontinueto spreâdabourûc porcnrial
of valùestreâtrmâpping.
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About the Authors
t
DanJones
l)an is co-authorof Tre MachineTbat Changedthe World andLean Thinking.
t
He is a SeniorAdvisorto the Leân EnterpriseInstiturc (LEI), ând Chairmanand t
Founderof LEI's affiliateorgânization,cheLean EnterpriseAcademyin rhe UK
(www.lean.uk.org). He haslong had an interestin mappingencirevaluestreamsand
I
rook ûe leadin developingthe exâmplespresentedin Châpter2 of Lean Thinhing !
These beganwith the humble cânof colârhât requires319 daysto pâssthroughsix
differen!compâniesand nine facilitiesacrossthe world, firms ând fâcilitiesrhat
B
colleccivelyconductonly throe hoursof vâlue-creâtingactiviticsbeforedre colâ E
linally reâchesthe customcr
E
Jim Womack tr
Jim is co-authorof TDeMachiûe Thdt Chdngedthe Wo d ar'd Lean Thixhixg and tr
Presidentand Founderof the Leân BncerpriseInsticute.He finds it hard nor co
rhink aboùcextendedvaluestreamsincludingchoscinvolvingheâlthcâre, mobility, E
food,communicacion, constuction,defcnse,and logistics, |l
It
E
E
E
B
E
n
E
E
E
E
E
E
E
il
z
- APPENDIX A - Extended Value Stream Mapping lcons
The iconsand symbolsfor curren!and future sratemappingfall incothree câlegores:
fl
MâteriâlFlow.InformarionFlow,and GenerâlIcons.
-
Material lcons Represents Notes
15
fl ManuTacturing
Process Oneprocessbox equâlsan âreâ
of flow.AII processes
shouldbe
lâbeled.Also usedfor departments,
suchas Production Control.
| - > l
uross-t_rocK
| ----<'-
+ l |
|
ln I
N\_ PlaneShipment NoteTrequency
of shipments.
L,'-
: q=f= TrainShipment Notefrequencyof shipments.
:
TruckShipment Notefrequencyof shipments.
1Oây
Mâterial lcons Represents Notes
IMilk Run
1 Expedited
Transport
Withdrawâl usuallyfrom
PulloTmaterials,
a supermarket,
E
Transferof controlled a deviceto limitquantity
Indicates
quantities of materiâl ând ensureFIFOflow of material E
-FIFO* betweenprocessesin betweenprocesses.N4aximum
a "First-ln-First-Out" quântityshouldbe noted. E
sequence,
E
t
lnformation lcons Represents Notes E
E
IVIanual
lnJormation
flow Forexample:productionschedule
or shippingschedule. E
E
<-=-s- Electronic
lnformationflow Forexampleviâ electronic
Inrercnange.
data
E
lnformation an information
Describes flow. E
É
e4
F
I
I
I lnformation lcons Represents Notes
:r
t-;\ Production Kanban The"one-peFcontainer" kanban.
t r-- I ."
t -
l--- (dottedIineindicates Cardor devicethattellsa process
:r T kanbanpath) how manyof whatcan be produced
and givespermissionto do so,
:r
I
,--%---
I
WithdrawalKanban Cardor devicethat instructsthe
materialhandlerto get and trânsfer
lr t parts(i.e.Jroma supermarket
consumingprocess),
to the
ir
il
t-
I
-V SignôlKanban The"one-per-bâtch"kanban.
Signalswhen a reorderpointis
!r t reachedand anotherbatchneedsto
be produced.Usedwheresupplying
processmustproducein batches
I becausechangeovers are required,
I
KanbânPost Placewherekanbanarecollected
:r and heldfor conveyance,
:r
T +1 \ )J-- KanbanArriving
in Batches
:r
ir f,^...* ,^v i
lu^\JAl LoadLeveling Toolto interceptbatchesof kanban
ir ând levelthe volumeand mix of
them overa periodof time.
I r-_-l
iI
t l ControlCenter
ir
ir
/
-,8.- - \
Phone
I
-.
il Orders
f I ;.tl
il
il Genêral lcons Bepresents Notes
Alpha
Crosè-Dock
El ?aso,TX
1200A
440 a
$- Daily 7r oà uaT'ioh 5 equence
l;i"h
20
T\-
t7,
Rcceiving Kilting
ruft\$ --rfp Sub.aeeenbly ----li
2560 A 160A
E
1200É bog
E
E
E
E
E
20m. 40 h. 20m. 2h.
E
E
t
E
É
E
AlphaHQ
?roàuclion
Control Alpha5ale5
Oràer gank
Dearbofi,Ml
AlphaOiot.
----
Center
AlphaTlant
TroAuc on 960 WipetêlDây
Contrcl 640 A
220 6
FACILITY9UMMARY
il Rt\.1
50 h,
tr wt?2h.
FA14h.
E 2 'hiftg
FinalAeeembly
320 A
tr Cll = 60 seô.
160I
Carg
5 CIO=O,
2 5hift6
ù
t ""i:ff''n=t o'..
I
1(1)
il
I
I
I
I APPENDIX B
Appendix B: Beta l/Vipers Asse]nbly Plant, Reynosa, Mexico
Current State - February 2002
lonawanàa,NY
Harlinqen,
TX
| ,ï^-p4"",r"1
zootaox
| I
l,oooJPattetI
--E-
I
| 12?atte@ |
I l" l--
l " Yl l
T\T-u
v
Receiving
-êwÀ+ Aseeffbly 1
ïêP
Aesernbly
2
rr-rlT.w,
/ > \
e
e-------> ?lant Harlinqen.TX
ù- ?rcàuaaion 1920 WiperclDay
Conbrcl 12AOA
---"
640 b
\Neekly?îoàuation Saheàule
2Palle|,sb
e TACILIry9UMMARY
RM56 h.
I wt?41h.
FA12h.
I 25hi1io
ryâ\ùQ . 1 z '-7âP
Assembly3 lnsbect &lesl
F 5 Days
E?E= l Day
=
çQ2r 432 A 640 A
224 b 320 0
-
a ClO= 5 nin.
Uprime = 95%
CIO= 5 'r'in.
Upriî,e= 1OO% = 109.4 hre.
25hifte
E?É= l Day
4.2h.(1os.)
3 (1)
4
r.a
APPÉNOIX B
Appendix B: Gamma Stamping Assembly Plant, Tonavvanda, NY
Current State - Éeltruary 2OO2
DearbornHeiqhte,Ml
2xWeek
Receiving
'-AEÔ
Stam?inq1
,-fN+ Sramping2
w
336 coils 25,600 A
12,bOOb
pârte
CIT=1Oç.
CIO= th. ClO= th.
Uptime= 8O% E
E
10m. 14d. 20 E
4.4h.(1e.) 4 . 6 h . ( 1 Os . ) E
3 (1) 2(1) F
E
E
E
GamfiaHa
?roàuaLion bet'a Wipers
Conlrcl HQ
Proàualion
Contrcl
OH
Clevelanà,
beta Wipe.e
Warchouoe
gTAMPEPPARTg
2OOlb^
2xWeekly
Tonâwânàâ,
NY ShipScheàule
FACILIry9UMMARY
Weekly?roduct ion 5 cheàule R[,1556h.
ra40h.
3 ghlfi'
5 Oây,
Clean,?a1,nt.
&bake Shippin6
"l-'4.)
25,600 A 25,600 A
12,800 ù 12,bOO E
PArOs pârt6
CIl = 52 tt1iti.
CIO= 30 min. Proàucrion-_ 20.6
Leaàlime àdyo
Uotime= B5%
H ?roaes.inq_ 3,131
{
40h. 4Bh. 10m.
4.5 h.(3120s.)
- 3 (1)
APPENDIX B
!
6eta -
Wiperc
!
Alpha
Crosa-Dock
El ?aeo,IX
F
_ - t
l!
F
(.,,,/.2-----i i - - - - - - - - - - -L _ J " - - ' - - - - - - - -
i Y
tr
I
Wiper
5ub-Aèsembly
tr
F
F
E
F
F
E
s
E
È
Alpha
Alpha 9ale.
HQ Oràer
ftoàuction tank
Conlrol
Dearbofi,Ml
Alpha
Dist, Center
AlphaTlant
?roàuallon
-..."7 Conlrcl
960/àây
640 A
? ^
- L 620I
//
// FACILITY
9UMIVARY
r=t= RM15h.
wtP2h.
1x Day
FG14h.
i--z 25hl1r.
5 Daye
itr.l FinalAssembly 5hi?pin0
EPE= l Day
-
il &Test
: .""">
'l>
ProaeÊeikO 1ZO
line
2h.
ou 5.
2(1)
APPËNDIX C
È
E
Appendix C: Beta Wipers Assembly Plant, Reynosa, Mexico E
Future State - rMay 2OO2 E
E
E
E
lonawanàâ,NY
Tx
Harlingen, ,.--È
n3----"-
2OO/tox
1,600l?alleï
12Pallets
rNr',--""
1T
-'\,1:.2 F
"-----------------Èr
/ Arthe Cell
-,\ T F
I assrva-'CELL
I- A9SEM9LY
- li ll
ll l rl o E ----{É
!!a
Stanpeà
Pârlg !t
C I O= 5 m i n .
Uolitne = 1OO% !a
2 ehifto
la
Ê
1 6h .
O.1h.(3Os.)
!i
C.earing= 3
Aeta HQ
fuoàuction
ConTrol Alpha
Motorg
Harlingen,lX
Oeûoit, Ml
----|
32O Wlpercl?aller
2 ?allelsb
RM16 h.
ShippinO
FG12h.
?toàu.tion _ c^.1À"
- = cu 5ec,
Tifrè
APPENDIX C
Appendix C: Gamma Stamping Assembly Plant
Tonawanda, NY Future State - May 2OO2
&1
I Miahiaangteel |
---{wJ-
\ âÉ*-rr
OH
Clevelanà,
I F
leervtéecenter
Dearbofi Heights, Ml
Steel Coils
I
t-T
Gaftma?laîr
Proàuêlion
Cohtrol F
F
Tonawanàa,
NY
N ,,' I
\N/'
,-----------t
,.-f
i abthe i,"
i ?rcee .,i -"-
i--------v
r--7
i { Slampinql
V
Stampinï2
E
E
Cll =1sec, Clf = 10 aec,
CIO=3 rr'in. C I O= 3 m i n .
E
Uptine= 95% = 95%
Upaiftie E
Shifxs=2 5hiftç = 2
E
E?E= 4xehift E?E = 4x çhilt
E
2.5à.
2h.(1s.) 2 h . ( 1 Os . )
I
2(1) 2(1) T
I
a
a
I
I
t
I
betaWipers
H8
?roàucl.ion
Conlrol
r
tet â Wipers
I
I=_-___-1
t--7-1-1
Dairy v@>^ _V2à
l_.q.D)-_1oxaT
'""4i - -
"2'22
I
r
I
I
li
---Jt
91 M?EO?4R15
2OOIB^
| 2x l/
f t
.'i'I
% I w*r,f-l FACILIry9UMMARY
7r-
R[44A h.
I I------' D"i-'-'
"3 ' i i
i
i V
l wt?62h.
FG 12 h,
3 i - ' t Clean,
?aint&bake
i +-1
I ti _l J Shippinq
69hifte
5Dây5
3_. pl..l. J
= - l J
t r l-tI
: l ClO=5 min.
. l - J
13Om.(3120s.)
3(1)
|!
APPENDIX C
F
-ç
F
tâo^.
!
We'veffied ro mâke this worl<bookeasyro use,with detailedinstructions,
simple illusrrations,and clcarcxamples.However,we know from ycarsof ts
expcriencerhatapplyingevenchesimplestconocptirr a complexorganization
is difficuh, So we needyour help.After you haverried implementingthc
techniquesdcscribedin this workbook,pleâsemail,fax,or cmailcon,mentsto:
E
E
E
E
E
E
E
E
E
E
E
E
E
È
MATERIAL FLOW ICONS
-FIFO*
Truck Plâne Train First-ln-First-Out Supermarket Inventory
Shipment Shipment Shipment Sequence Flow
t GENERAL ICON
PUSH Finished
Goods It4ilkRun Expedited
to CLrstomer Transport
+t )J_)--/
INFORMATION FLOW ICONS
KanbanArriving
;n Batches
#
IManual E ectronic Schedule
InformationFlow Load Leveling S i g n ê lK a n b a n
nformationFlow
,--%
t -
,--D---
I
I l r.'J I
t witna,u*ur
Kanban
T Production
Kar]ban ControlCenter KanbanPost Orders
Wiper Value Stream ldeal State
aI
,/ /r
% Daily //
ÉD
rtr"I
la.:rn;lcl
AlphaMotore
TIME
PARK
SUPPLIER
tn{.ffil = z.+a'ys
I RM12 I RM4 |
I wrPl2 I wtP2 |
l----19-2 ) FO14 |
O.te.t3=
Z PPfr
o.5à.
20 (6) 7 (21
Demând AmDlification
Eâsr0tan4e,NJ
o.+à.
Vviper Value Strearn Current State
I"e#\
. . . . . . . . . . . . . . . . : -
.-___]T1 !--_l IMvri_.::_.;
?Vnouth M1 14aal.
w"tttl
t---r--T-
I A I
,1 L 4
i flN l l_l-
o " v l
I 6 d.re
v r---;;;:-l
/-L.-1-4
ëiEft c^rct
I I
t ^ I s6a1;;---1
// 640 A
// r,::i
3206
FfJ |
I-\ | 213e1 |
r-î---L
ll,Dov
al
TIIVE
'nl,fl' = a.oa^y.
=
:il
4
4.Oà. +.oà. o.5à.
o.sd. I r I o.5à. | 1 | 2.oà.ltzo
e.)l I
4 4 11(2)
";-.
Demand Amplificâtion
@ .
r;;t
iiË t
<_
I
7/â\ t - J -
I T " r " / - .-8 - r '7O\ -.r
-r- Dâ lv
wæryI Lr---:--r
\ 1,4|4+lr
| 't
17":h = \
ræt l-J
lff ; ; i " t Lr 1r t 1 " . !
-_l
| >A-\-
| 32ni,î, | ôerawipeÉ |
|
^$enbty
I
ronâwânlâ,NY.3
l * -
lë:vàg.l
l c"n-
|
"v;;;;i' n;:"
--
--rri-T-
l l A
I ' \
1.4 a
/ t,<-t
I a a"-aq.
T r--;;-l
_.----8- td"l'
r r*T
i--_t
l
| \>t L_:__:l TlrvlE
_a
.......;...............,1>.-..........'
H r r t i i a a nt.X E th e ô . , ,
*2.
1 6ao n | l--/999-!' )
I fîF6,."h-l \ea' I ehPoatah
= a e n t a " l l = 6 ? a t t è ù l
- )h
D"1", i"=."a | | uerc.\!è = t""on"n
24o*
I
Ë- .-
----t-
-l
''
/..L..4 æl
-
lMtcltdâAgtêêll :.
14dâr6
| 5ê;reco | fN.
ueièa, '.
lRernoea,
- =]-
'
- ::t"
o,3à, o.25à.
5.1à. (313ts.) 1.2à.(3o ..)
20 (3)
Vviper Value Stream Future State 2
+
\
--r
I D,lv I
}/v-L4
Arpha
I I
I oi.rtiblr an I
I c-È. I
oH
Clevelanà,
A- s.oDà'
4l
/l - n:
ll
F=
6xaf, %
æ TIME
-ç!,5
@r*.r"-;;*l
4.5 à. o.5à.
't.3à.(t2o 5
)
712)
ô \
Dêmand Amolification
r i
tF
s-
i v
I *F-" I
o.3à. 4.Oà.
20 (3)
gruE
I S B N : 0 - 9 6 6 7 854I3
90000
lillili[ili
ililIi