How do processes know what to make? Assy. Plant 90/60/30 Day Lcustomer [=== Supplier ee |—[baiyoraer FS [ Daily order ] Daily Ship 9 © ‘Schedule AL caite [OD S5DaysL1 van wat YA [reseae] ZN Dee AN Ie | ie eo 4 ‘850RH wt wo | wo |e +] [ee [oo fe a : Dreme| as [we] [ustinw | 100 [%] [Ustine | ao |] [urine] 100 |x| [Untime | 200 |x Pomel aco] «| [ee] are] «| prema =| [renee 7 5The Current State . Define the Customer’s demand Map the basic production processes Define the data to be collected Collect and map the data Define the supplier’s data Map the information flow Calculate the status of the current stateValue added vs Non value added time (time Line) Customer Demand 12,000 LHimonth 6,400 RH/month 12,000/20 € 600 LH per da 6400/20 = 4,600/600 Uptime 2400/320 Working time 5 DaysCalculating Value Flow Time (Lead Time) * Shows the real figure, leads to improvement decisions * Leannesss level or Value rate : Shows the value of the inventory in terms of TIME and MONEY + Shorter the lead time => higher the agility of the system + Short lead time means — Fast cash flow — Conformance to customer demands — Efficiency of raw material usage — Effective working environment — Facing problems * LEAD TIME = Customer Demand (Unit/time) / Inventory values (unit) (in Triangles)Calculating Value Flow Time (Lead Time) EXAMPLE: + Inraw material stock: 900 units + Between 1. and 2. processes 1000 units; + Between 2. and 3. processes 1500 units; + Between 3. and 4. processes 2800 units; + Indelivery/shipping 3000 units of inventory Daily Customer Demand = 1000 unit/day Intermediary Inventories: + 900 units /1000 unit/day = 0,9 DAYS + 1000 units / 1000 unit/day = 1 DAY * 1500 units / 1000 unit/day = 1,5 DAYS + 2800 units / 1000 unit/day = 2,8 DAYS + 3000 units / 1000 unit/day = 3 DAYS + TOTAL= 9, 2 DAYS LEAD TIME INVENTORIESPrinciple (Little's Law) * the fundamental long-term relationship between Work-In-Process, throughput and flow time of a production system in steady state * Inventory =Throughput x Flow Time * Relates 3 critical performance measures of any production system; — Work in progress — Throughput — Flow time Ex:milling machine that cuts 100 parts per hour with a queue of 800 parts in front of it = 800 parts / 100 parts /hour =8 hours of WIPPrinciple (Little's Law) * Aconversion of units. Inventory is measured in pieces, flow time in hours, and throughput in pieces per hour. Hence, if we divide inventory by throughput we get flow time. * Useful when diagnosing a plant. If we see what physically looks like a large amount of inventory in the system, we cannot tell whether this is a signal of trouble until we know how much time is represented by the inventory. * Ex: 2000 pieces of WIP in a system that produces 10 per day, this is probably a disastrous system, while 2000 pieces in a system that produces 1000 per hour is probably extremely lean.Current State value stream mapping forecast Assy. Plant (customer) 6 week forecast Weekly forecast ZI Bunmsrey Raw Mtl. Supplier Schedule ayo] Cel] Ce T| Assembly Chu CyVSM Material Symbols | Safety Stock Icon: represents an inventory “hedge” (or safety stock) | against problems such as downtime, to protect the system against sudden fluctuations in customer orders or system failures. | External Shipment Icon: shipments from suppliers or to customers using external transportVSM Information Symbols Production Control Icon: This box represents a central production scheduling or control department, person or operation. Manual Info Icon : A straight, thin arrow shows general tlow of information from memos. reports, or conversation. Frequency and other notes may be relevant. Electronic Info Icon : This wiggle arrow represents electronic flow such as electronic data interchange (EDI), the Internet, Intranets, da LANs (local area network), WANS (wide area network). You may indicate the frequency of information’data interchange, the type of modia used ex. fax, phone, etc. and the type of data exchanged, Production Kanban Icon : This icon triggers production of a pre- | defined number of parts. It signals a supplying process to provide parts to a downstream process. Withdrawal Kanban Icon : This icon represents a card or device that instructs a material handler to transfer parts from a supermarket to the receiving process. The material handler (or operator) goes to the supermarket and withdraws the necessary items,VSM Information Symbols Signal Kanban leon "used whenever the on-hand inventory levels in the supermarket betwen two processes drops 10 a trigger oF [eam point. I's also reterred as “one-per-batch” kanban. Kanban Post Icon - location where kanban signals reside for pickup. Often used with two-card systems to exchange withdrawal ‘and production Kanban, Sequenced Pull icon represants& pul aystem thal gies inatrwcion | to subassembly processes to produce a predatermined type and | avanttyot product, typically one unit without using » supermarket {oad Lawling icon tool to batch Kanbane inorder to vel the Production volume and mi over a period of time. HAP ERP icon scheduling using MRPERP or othor centralized systems, | Verbal information leon: represents verbal or personal flow.VSM General Symbols Kaizen Burst Icon: used to highlight improvement neods and plan kaizon workshops at specific processes that are critical to achieving the Future State Map of the value stream. Operator Icon : represents an operator. It shows the number of operators required to process the VSM family at a particular workstation. Other Icon : other useful or potentially useful information. Timeline Icon : shows value added times (Cycle Times) and non- value added (wait) times. Use this to calculate Lead Time and Total Cycle Time.The future state 000 600 mH Fo untoSignificant Improvements * Lead time reduced by 81% * Processing time reduced by 10%Sample Value Stream MapPresent State Value Stream MapFuture State Value Stream MapIdeal State Value Stream MapStrategies for Process Improvement #1: #2: #3: #4: #5: #6: Produce to your Takt Time. Develop continuous flow where possible to reduce inventory. Eliminate isolated islands of production. Use supermarkets to control production where continuous flow does not extend upstream (often outside the plant). Try to send customer schedule to only one production process (pacemaker). Load-level production at pacemaker. Release/withdraw small, consistent increments of work to pacemaker (pitch). Value Stream Mapping