Value Stream Analysis Example Target Performance 110

(Note that for the circular reference calculations to work properly, the Iteration setting under Tools > Options > Calculation must be enabled.)

Pred Cycle Sigma Process

ID Description ID Time EST EFT LST LFT Slack CP CP% Level Efficiency Severity
A Initiate Order 2 0 2 0 2 0.000 1 0.64 2.87 1.8% 2
B Qualify Customer A 2 2 4 3 5 1.000 0 0.40 3.13 0.0% 1
C Preliminary Design A 3 2 5 2 5 0.000 1 0.60 2.73 5.0% 1
D Consultation & Pricing B,C 5 5 10 5 10 0.000 1 1.00 2.18 7.7% 2
E Customer Contract D 5 10 15 10 15 0.000 1 1.00 2.18 1.0% 3
F Detailed Design E 10 15 25 15 25 0.000 1 1.00 2.70 12.5% 2
G Engine Procurement F 10 25 35 30 40 5.000 0 0.26 2.58 1.5% 1
H Frame Procurement F 10 25 35 25 35 0.000 1 0.74 2.71 1.5% 2
I Tube Bend/Drill H 2 35 37 38 40 3.000 0 0.05 2.66 2.0% 1
J Flat Stock Cut/Drill H 3 35 38 35 38 0.000 1 0.69 2.47 2.0% 2
K Welding J 2 38 40 38 40 0.000 1 0.69 2.91 0.9% 2
L Frame Assembly I,K 2 40 42 40 42 0.000 1 0.74 3.35 1.0% 1
M Stamping G 2 35 37 40 42 5.000 0 0.26 3.35 0.9% 1
N Engine Assembly L,M 4 42 46 42 46 0.000 1 1.00 2.65 0.9% 3
O Inspection & Shipping N 3 46 49 46 49 0.000 1 1.00 2.66 1.2% 2
P Customer Invoicing E,O 3 49 52 49 52 0.000 1 1.00 2.71 2.3% 2
Q Collections P 20 52 72 52 72 0.000 1 1.00 2.89 2.4% 2
Process Lead Time 72 2.69 3.1%

B
Qualify Customer
A D E P Q
Initiate Order Consultation & Pricing Customer Contract Customer Invoicing Collections
C
Preliminary Design O
Inspection & Shipping LEGEND
EST (Early Start Time)
G M N EFT (Early Finish Time)
Engine Procurement Stamping Engine Assembly LST (Late Start Time)
F LFT (Late Finish Time)
Detailed Design I L Slack (or Float)
H Tube Bend/Drill Frame Assembly CP (Critical Path)
Frame Procurement CP%
J K Sigma Level
Flat Stock Cut/Drill Welding Process Efficiency
Severity

COLOR KEY
RED
YELLOW
GREEN
 Cycle Time Variation Cycle CumCycle Value Add Variation VA CumVA Quality Variation Defect
Cost Description Min Expected Max Time Time Min Expected Max VA% Time Time Min Expected Max Percent
$200 Initiate Order 1 2 5 2 1,353 1.0% 2.0% 2.5% 2.0% 0 25 0.0% 10.0% 15.0% 10.0%
$200 Qualify Customer 1 2 5 2 1,357 0.0% 0.0% 0.0% 0.0% 0 0 0.0% 5.0% 7.5% 5.0%
$325 Preliminary Design 1 3 5 3 1,508 2.5% 5.0% 7.5% 5.0% 0 76 7.5% 10.0% 15.0% 10.0%
$350 Consultation & Pricing 2 5 10 5 2,823 5.0% 8.0% 10.0% 8.0% 0 216 15.0% 25.0% 30.0% 25.0%
$475 Customer Contract 1 5 10 5 2,622 0.5% 1.0% 1.5% 1.0% 0 26 15.0% 20.0% 50.0% 20.0%
$850 Detailed Design 3 10 15 10 4,654 7.5% 10.0% 20.0% 10.0% 1 584 5.0% 12.0% 15.0% 12.0%
$450 Engine Procurement 5 10 20 10 5,854 1.0% 1.5% 2.0% 1.5% 0 89 5.0% 10.0% 20.0% 2.0%
$450 Frame Procurement 5 10 15 10 4,992 1.0% 1.5% 2.0% 1.5% 0 75 5.0% 10.0% 15.0% 2.0%
$170 Tube Bend/Drill 1 2 5 2 1,319 1.5% 2.0% 2.5% 2.0% 0 26 5.0% 10.0% 25.0% 10.0%
$205 Flat Stock Cut/Drill 2 3 5 3 1,663 1.5% 2.0% 2.5% 2.0% 0 34 5.0% 15.0% 25.0% 15.0%
$170 Welding 1 2 3 2 920 0.5% 1.0% 1.2% 1.0% 0 8 6.0% 8.0% 10.0% 8.0%
$170 Frame Assembly 1 2 3 2 1,009 0.5% 1.0% 1.5% 1.0% 0 10 2.0% 4.0% 6.0% 4.0%
$170 Stamping 1 2 4 2 1,168 0.5% 1.0% 1.2% 1.0% 0 11 2.5% 5.0% 7.5% 5.0%
$240 Engine Assembly 2 4 8 4 2,317 0.5% 1.0% 1.2% 1.0% 0 21 10.0% 12.0% 14.0% 12.0%
$205 Inspection & Shipping 1 3 5 3 1,475 1.0% 1.2% 1.5% 1.2% 0 18 5.0% 15.0% 25.0% 15.0%
$175 Customer Invoicing 1 3 5 3 1,508 0.0% 2.0% 5.0% 2.0% 0 35 5.0% 10.0% 20.0% 10.0%
$600 Collections 10 20 60 20 15,194 0.0% 2.0% 5.0% 2.0% 0 368 4.0% 8.0% 12.0% 8.0%
$5,405 Total Cycle Time 51,736 Value Added Time 1,622 Total Defects

Earliest time at which this activity may start.

Earliest time at which this activity may finish.
Latest time this activity can start without delaying the process.
Latest time this activity can finish without delaying the process.
Amount of time this activity can be delayed without delaying the process.
Critical path indicator (1=On Critical Path, 0=Off Critical Path)
Probability of activity being on the Critical Path
Six Sigma quality level of activity or process.
Ratio of valuing-adding time to total cycle time
Computed severity metric based on quality, process efficiency and CP%.

PROBLEM : Process activity in need of immediate improvement (Severity = 3)

WARNING : Process activity needs improvement but not immediately (Severity = 2)
ACCEPTABLE : OK for now. (Severity = 1 or is blank)
 Cum Fixed Cost Fixed Variable Cost Variable
Defect? Defects Min Expected Max Cost Min Expected Max Cost
0 43 $75 $100 $150 $100 25.00 50.00 100.00 50.00
0 26 $75 $100 $150 $100 40.00 50.00 60.00 50.00
0 55 $75 $100 $150 $100 25.00 75.00 100.00 75.00
0 125 $75 $100 $150 $100 40.00 50.00 55.00 50.00
0 125 $75 $100 $150 $100 50.00 75.00 80.00 75.00
0 58 $75 $100 $150 $100 50.00 75.00 125.00 75.00
0 70 $75 $100 $150 $100 25.00 35.00 45.00 35.00
0 57 $75 $100 $200 $100 25.00 35.00 40.00 35.00
0 62 $75 $100 $150 $100 25.00 35.00 40.00 35.00
0 83 $75 $100 $150 $100 25.00 35.00 45.00 35.00
0 40 $75 $100 $150 $100 25.00 35.00 40.00 35.00
0 16 $75 $100 $150 $100 25.00 35.00 40.00 35.00
0 16 $75 $100 $200 $100 25.00 35.00 45.00 35.00
0 63 $75 $100 $150 $100 25.00 35.00 45.00 35.00
0 62 $75 $100 $150 $100 25.00 35.00 40.00 35.00
0 57 $75 $100 $150 $100 20.00 25.00 30.00 25.00
0 41 $75 $100 $150 $100 20.00 25.00 35.00 25.00
Defects 999
 Critical Path
CP% Value
ACCEPTABLE 0% -1 <60% adjusts severity DOWN by one point
WARNING 60% 0 Between 60% and 80% is NEUTRAL
PROBLEMATIC 80% 1 >80% adjusts severity UP by one point

Sigma Capability
Sigma Value
PROBLEMATIC 0.0 3 <2.2 SIGMA results in 3 severity points
WARNING 2.2 2 Between 2.2 SIGMA and 3 SIGMA results in 2 severity points
ACCEPTABLE 3.0 1 >3 SIGMA results in one severity point

Process Efficiency
P/E Value
PROBLEMATIC 0% 3
WARNING 1% 2
ACCEPTABLE 5% 1

Severity Mapping
Value Severity
ACCEPTABLE 0 Green
ACCEPTABLE 1 1 Green
ACCEPTABLE 2 1 Green
ACCEPTABLE 3 1 Green
WARNING 4 2 Yellow
WARNING 5 2 Yellow
PROBLEMATIC 6 3 Red
PROBLEMATIC 7 3 Red
 Iteration Number
501

CP Offset
11

in 2 severity points