Application of Value Stream Mapping (VSM) For Lean and Cycle Time Reduction in Complex Production Environments: A Case Study

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Production Planning & Control

The Management of Operations

ISSN: 0953-7287 (Print) 1366-5871 (Online) Journal homepage: http://www.tandfonline.com/loi/tppc20

Application of value stream mapping (VSM)


for lean and cycle time reduction in complex
production environments: a case study

Dinesh Seth, Nitin Seth & Pratik Dhariwal

To cite this article: Dinesh Seth, Nitin Seth & Pratik Dhariwal (2017): Application of value stream
mapping (VSM) for lean and cycle time reduction in complex production environments: a case
study, Production Planning & Control, DOI: 10.1080/09537287.2017.1300352

To link to this article: http://dx.doi.org/10.1080/09537287.2017.1300352

Published online: 21 Mar 2017.

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Download by: [The UC San Diego Library] Date: 22 March 2017, At: 04:11
Production Planning & Control, 2017
http://dx.doi.org/10.1080/09537287.2017.1300352

Application of value stream mapping (VSM) for lean and cycle time reduction in
complex production environments: a case study
Dinesh Setha , Nitin Sethb and Pratik Dhariwalc
a
Department of Mechanical and Industrial Engineering, College of Engineering, Qatar University, Doha, Qatar; bIndian Institute of Foreign Trade,
New Delhi, India; cUnited Technologies Corporation (UTC), New Delhi, India

ABSTRACT ARTICLE HISTORY


The application of VSM is a proven approach for lean-based improvements. Typically, this becomes Received 24 August 2015
challenging, when applied for complex production environments. The purpose of this research is to Accepted 23 January 2017
demonstrate, how with some approximations and simplifications in VSM application, lean can be
KEYWORDS
successfully achieved in these environments. The research follows case study method and systematically Value stream mapping;
guides about the segregation and treatment of non-value-adding(NVA) and value-adding (VA) activities lean; cycle time; engineer to
of heavy-duty industrial power transformer making process. The focal company operates in engineer to order; high-mix low-volume;
order (ETO) and high-mix low-volume (HMLV) environments. With a research team using gemba walks application
and systematic questioning technique, relevant data were collected for mapping. Taguchi method was
also applied for one of the critical steps, which was influencing cycle time and energy requirements.
The generalisable findings endorse the strengths of approach for lean by addressing wastes and cycle
time reduction. The study establishes that VSM application-based lean messages remain same for both
simple and complex environments. It also exposes that non-compliance of ‘VSM assumptions’ and ‘micro-
concepts’ are the root causes for application complexities. The study also offers useful insights and practical
guidelines to facilitate lean in ETO, construction and HMLV production environments.

1. Introduction and Shook offered a systematic methodology for VSM, but, did
not cover application challenges in complex production environ-
1.1. Background and motivation
ments like engineer to order (ETO), high-mix low-volume (HMLV)
The use of process mapping-based improvements for better vis- and construction. They did not clarify about the ‘assumptions’ of
ualisation has long been known in many sectors. It was initiated VSM and its linkages with the environment complexities and left
by Gilbreth and Taylor, while developing various charting, timing some aspects of VSM methodology ‘open’ for interpretations.
and recording concepts (Groover 2007), in the beginning of sci- Similarly, neither they guided about changes/modifications to
entific management era. But, its usage to reduce various wastes, accommodate specific application needs, nor they enlightened
by exposing value adding (VA) and non-value-adding(NVA) about the lean messages from VSM for complex environments.
components of a process and in facilitating ‘lean’ is relatively For simple manufacturing environments like make-to-stock,
new. Researchers are extending it further, in green (Faulkner and VSM applications are straightforward and relatively less complex
Badurdeen 2014) and health care areas (Henrique et al. 2016). (Braglia, Carmignani, and Zammori 2006). The real challenge is
In the form of value stream mapping (VSM), it came to light encountered with VSM applications for complex environments,
when a new array of tools, graphic symbols and concepts were where it necessitates modifications/approximations to leverage
added to process mapping with a specific plan to improve visual- lean benefits. To overcome challenges, researchers are working
isation, highlighting wastes and value segregation. This facilitated in different directions like using simulation (Parthanadee and
lean achievement through a series of steps by exposing wastes. Buddhakulsomsiri 2014), waste identification diagram (Dinis-
Today, VSM is acknowledged as an important; enterprise improve- Carvalho et al. 2015) and even approximations (Chitturi, Glew,
ment methodology capturing both inter- and intra-company level and Paulls 2007). Not many studies are available guiding VSM
details in visualising the entire process, apprehending material application to facilitate lean in complex environments (Braglia,
and information flows with the timeline (Seth and Gupta 2005). Frosolini, and Zammori 2009; Matt 2014).
VSM was introduced through Learning to See by (Rother and Due to increasing product variety with growing complications,
Shook 1999, 2003), first appeared in 1999 and later in 2003. Since customisation, needs to embrace technology advancements;
then, a lot of work has been reported, please refer (Singh, Garg, industries are shifting towards HMLV and ETO production envi-
and Sharma 2011; Dal Forno et al. 2014) for recent reviews. Rother ronments. Managing complexities in an efficient manner can

CONTACT Dinesh Seth dseth@qu.edu.qa


© 2017 Informa UK Limited, trading as Taylor & Francis Group
2  D. SETH ET AL.

create strategic differentiation for a company. The current offer- for a heavy-duty electrical transformer making process for
make-market paradigm demands customised products that only achieving lean?
could be carried out by means of complex manufacturing systems • How to demonstrate the key application message of local
like ETO and HMLV. Thereby, the trend towards these types of and global improvements through VSM by attempting
manufacturing systems is clear. The challenge, as well as a neces- appropriate process settings using Taguchi method for
sity is how to achieve an efficient and competitive production reducing rework and wastes influencing cycle time?
environment in these environments. It is a fact that the majority
of ‘production flows improvement approaches’ or ‘philosophies’
are aimed at mass production systems, as reflected in a number of 1.3. Organisation of the paper
published research works. So, there is an urgent need for research
This paper is organised as follows.
studies like ours, discussing VSM application for lean and wastes
Section 2 describes literature review and is organised into three
reduction within the scope of ETO and HMLV systems.
subsections. Section 3 discusses company, product and problem.
The utilisation of the graphical resources of VSM could be a
Section 4 explains research methodology and is organised in four
good basis to identify VA and NVA activities in ETO and HMLV
subsections. Section 5 discusses ‘as-is’ state, and its analysis indicat-
environments in reducing wastes. It is true that improvements
ing improvement needs. Section 6 describes bottleneck area and
can also be achieved without applying detailed VSM considering
Taguchi treatment for appropriate process adjustments influenc-
environment complexities. Sometimes, it is better to be practical
ing energy and rework wastes. Section 7 discusses improvement
at the cost of approximation, rather than coping with too detailed
measures and ‘to-be’ status. Section 8 describes conclusion and
and complicated analysis for future improvements.
comparative picture to visualise the overall improvements. Section
It is observed that due to treatment complications, researchers
9 discusses implications and Section 10 offers practical guidelines.
and practitioners are not in a position to gain lean advantages
Section 11 covers limitations and future scope of the study.
through VSM. Although, a few studies (Serrano, Ochoa, and Castro
2008; Matt 2014) in ETO environments have considered complex-
ities, but it is observed that VSM needs to be applied to each 2. Literature review
product in consideration separately. A closer review demands
Researchers have proposed a number of approaches for lean-
detailed investigations for the issues:whether VSM can easily be
based improvements in value chain, considering environment
applied in complex environments to facilitate lean? If yes, then
complexities, these include paired-cell overlapping loop of
whether such an application should really follow all the concepts
cards with authorization (POLCA),quick response manufactur-
and requirements of VSM or not? Whether one can go ahead by
ing (QRM),constant work in process (CONWIP),kanban system,
segregating value-adding(VA) and non-value-adding (NVA) activ-
customer order decoupling point (CODP),VSM, mixed pull sys-
ities, at the cost of approximations and can still leverage lean
tem (high, medium and low runners), modularisation, standard
benefits in terms of wastes and cycle time reduction?
work, postponement (Seth and Panigrahi 2015), product variety
This research attempts to answer these issues. This study por-
funnel, process matrix with family analysis approaches, theory
trays the case of an Indian industrial transformer making company
of constraints and work content graphs. For an overview, please
ABC (name changed to protect identity) where management is
refer (Araya 2012; Prakash and Chin 2014). The study focuses on
worried regarding manufacturing cycle time and productivity
VSM accordingly, literature is organised into three sections. First
challenges. Due to intense competition, ABC is under pressure
section links lean with VSM. Second discusses VSM application
to reduce cycle time, along with rework and wastes reduction.
experience in ETO, HMLV and select studies from construction
ABC recognises the strengths of VSM for lean, but considering
environment. The third section discusses summary, application
the environment challenges, company management is scepti-
messages and gap areas.
cal regarding its application and needs investigation. This study
demonstrates how VSM can be effectively applied to facilitate
lean, for the making process of the heavy-duty electrical trans- 2.1. Lean and VSM
former, which has the challenges of both HMLV and ETO. An
Womack, Jones, and Roos (1990) introduced ‘lean production’
industrial transformer is made as highly customised engineering
through their book The Machine That Changed the World. Lean
product and is subjected to intermediate testing and adjustment
production (sometimes called as ‘lean manufacturing’ or just
needs. Relatively, very few empirical studies with application
‘lean’) refers to a manufacturing paradigm, based on the funda-
insights have been reported to get lean through VSM in complex
mental goal of differentiating VA and NVA for continuously min-
environments. The study addresses this gap area and presents a
imising wastes to maximise flow and productivity. This concept
distinctive VSM application in these environments with general-
was originated by Ohno and Shingo at Toyota (Shingo 1989).
ised lean messages.
Japanese industrial captains had understood that they could
not afford the massive investments needed to build set-ups sim-
1.2. Research questions ilar to those in the U.S.A.. They chose an unconventional path,
and started challenging some of the basic business, engineering
This study analyses VSM application for a representative prod-
and manufacturing assumptions. Then began the long process
uct 500 MVA765/400/33 kV power transformer making process
of refining processes to minimise wastes in all aspects of oper-
in ABC. The research questions raised for the study are-
ations to boost quality and productivity (Bicheno 2004; Seth
• How to demonstrate wastes and cycle time reduction in and Tripathi 2006; Schonberger 2008; Jasti and Kodali 2015) and
complex (ETO and HMLV) environments by applying VSM soon these originalities became ‘accepted business wisdom’.
PRODUCTION PLANNING & CONTROL  3

Researchers (Shah and Ward 2007; Bhasin 2015) treat lean, (2)  VSM helps in documenting the relationships between
both as philosophy and as production management system. They ‘processes and controls’, for example, relationships
argue that lean thinking centres around core concepts of wastes between manufacturing processes and controls like
reduction by differentiating between VA and NVA, focus on flow, production scheduling, inventory release and pro-
customer-driven value visibility with simplicity, built-in quality duction rate. It captures product flow and links it with
and continuous improvement. Jettisoning wastes caused by NVA, information flow, such as; when and what triggers
along with entire value stream, instead of at isolated worksta- the movement of materials. Thus, it intelligently links
tions, creates processes that need less efforts and costs. With lean, product planning and demand forecast to produc-
companies can easily respond to high variety, quality, cost, with tion scheduling and shop flow control. It also exposes
lesser cycle time. inefficiencies, NVAs and guides about improvement
In this backdrop (Rother and Shook 1999), introduced VSM (Braglia, Carmignani, and Zammori 2006).
for lean and (Tapping, Luyster, and Shuker 2002) streamlined it. (3)  Third uniqueness lies with its flexibility and adaptabil-
They suggest first step as the selection of a product family, as a ity for different applications areas. VSM can be applied
target for improvement and in making of current or ‘As-is’ state to any business activity, be it manufacturing, construc-
map for the selected product value stream. This ‘As-is’ or current tion or services, and be expanded upstream or down-
state should be developed, on the basis of data collected directly stream. It can cover entire process at manufacturing,
from the shop-floor using the set of standard icons. supply chain or even at business level. It also covers
For future or ‘To-be’ state of VSM, they seek the answers to interfacial areas highlighting the overlaps between
eight questions, which are;What is the takt time? Will finished departments/functions (Seth, Seth, and Goel 2008).
goods be built to replenish a supermarket or will they be built and (4)  It offers a simple, easy to understand, unified worka-
shipped directly to customers? Where can continuous flow pro- ble language for discussing assembly/manufacturing/
cessing be utilised? Is there a need for a supermarket pull system transformation processes and links it with wastes, rate
within value stream? What single point in the chain will be used of production, tracking, bottlenecks, rework, cycle
to control and schedule production? How will the production be time and sources of wastes. Thus, it helps to envisage
levelled at pacemaker process? What increment of work will be more than wastes maintaining simplicity and visibility
consistently released from the pacemaker process(pitch)? What (Singh, Garg, and Sharma 2011).
process improvements will be needed? (5)  It logically ties together various industrial engineering
Here, it is important to mention that these eight questions tools for process flow analysis with lean concepts, and
are also known as ‘micro-concepts’ of VSM. It is considered as a avoids cherry-picking. In this manner, it forms a blue
prerequisite to seeking the answers to these questions or ‘micro- print for lean implementation and can be extended
concepts’ for the preparation and comparisons of VSM states. further.
When these ‘micro-concepts’ were first proposed, as guiding set (6)  It leverages both qualitative and quantitative analyses-
to facilitate VSM applications, nobody visualised the difficulties based tools to ensure that the decisions to be taken,
associated in context to complex production environments. are based on objective and scientific data analysis.
Researchers like (McDonald, Van Aken, and Rentes 2002; Thus, it helps in redefinition and redesign for strategic
Braglia, Carmignani, and Zammori 2006; Chitturi, Glew, and Paulls improvements (Serrano, Ochoa, and Castro 2008).
2007) by acknowledging environment complexities clarify that
After linking lean with VSM, authors would like to discuss three
with the answers to these eight questions, the next step requires
classification schemes of mapping tools and options.
the identification and analysis of various wastes encountered
The first classification scheme was given by Hines and
along the value stream. Then one proceeds for To-be or future
Rich (1997). They presented a set of seven mapping tools and
state map to represent an improved process with lesser or no
linked to seven wastes scheme of Toyota production system.
wastes using standard VSM icons. Dinis-Carvalho et al. (2015) clar-
The mapping tools are process activity mapping, supply chain
ify about five principles for VSM (identification of value, value
response matrix, production variety funnel, quality filter map-
stream, flow, pull and perfection). These principles lead towards
ping, demand amplification mapping, decision point analysis
wastes reduction and continuous improvements (Hines, Holweg,
and physical structure (a) volume (b) value. Hines and Rich
and Rich 2004).
(1997) clarified that the first stage of improvement process for
Six features make VSM important and unique for lean.
using these mapping tools is to specify the value stream to be
(1)  It helps in understanding local (workstation-level) and investigated so that proper requirement of the tools could be
global (entire cycle) process improvement scenario and understood and ensured. Then only practitioners should pro-
logical linkages between two levels, covering wastes, ceed with interviewing and data collection considering indus-
bottlenecks and its impact on cycle time, pull and flow. try structure and wastes to be removed. They also clarified that
Thus it offers ‘reflection of systemic vision maintaining more than one mapping tool should be used when number of
local details of process’ by diagrammatically linking wastes are more. Unfortunately, this scheme does not consider
material-flow, information-flow and timeline (Seth environment complexities.
and Gupta 2005). This enhanced visual representation The second classification scheme was given by (Agyapong-
facilitates identification of VAs and NVAs, and triggers Kodua 2009; Agyapong-Kodua et al. 2012). It covers four broad
improvement by highlighting wastes. categories of mapping and modelling options.
4  D. SETH ET AL.

Agyapong-Kodua and his team argue that in the last three complications for VSM applications; result in unique solutions
decades a variety of process diagramming, mapping, work-flow, and prevent practitioners to take advantages of lean.
process flow modelling, system dynamics and simulation mod-
elling-based options have been developed. Some options are 2.2.1. Complex production environments and VSM
really powerful and can take care of improvements, optimisa- assumptions
tion, designing, specific language-based programming needs, Please refer (Olhager 2003; Gosling and Naim 2009; Araya 2012;
scenario generations, comparisons and even evaluation of pro- Matt 2014), who share their views about ETO and HMLV environ-
duction systems. These options are available in several families ments and associated challenges, for lean.
and versions and can be classified in many different ways with ETO environments are characterised by product complex-
and without some overlaps. Four broad categories as suggested ities and customer involvement in design, high levels of pro-
by these researchers are, cess and product variations, multi levelled bill of materials
with deep product structures, variations in machine times
• Process mapping (PM) 14 tools-These are overall lead time
and routings, parallel and independent working for parts/
map, order-map, process activity map, customer map,
sub-assemblies and low volumes. Each order involves a lot of
product variety funnel, push–pull map, quality filter map,
customer interactions, clarifications, approvals and is mostly
demand amplification map, physical structure map, capac-
treated as a project, involves intermediate testing, design and
ity map, cost time profile, logistics pipe line map, value add-
development challenges depending upon customer require-
ing time profile, value stream map.
ments. Design, delivery speed, variety and flexibility are typical
• Enterprise modelling (EM) 7 tools- Purdue enterprise ref-
order winners and customer order decoupling point is typically
erence architecture (PERA), architecture for integrated
located at the start of production. For details refer, (Birkie and
information systems (ARIS), computer integrated manu-
Trucco 2016).
facturing open system architecture (CIMOSA), the open
HMLV environments are characterised by large variations in
group architecture framework (TOGAF), integrated enter-
lot size, variations in production processes and even the products
prise modelling (IEM), integrated definition modelling suite
being made or assembled including variations in applications.
(IDEFx), business process modelling notation (BPMN).
Depending upon the nature of product requirements, limited
• System dynamics (SD) 6 modelling tools-Casual-loops,
design development, customer interaction and intermediate
Petri-Net, fuzzy-logic, neural network, stock and flow,
testing may/may not be there. Here, uneasiness is felt due to vari-
Bayesian-networks.
ability and uncertainty of inputs which often results in the unpre-
• Simulation modelling (SM) 7 tools-Lean modeller, Simul8,
dictable and sub-optimal behaviour of the manufacturing system
ithink/Stella, lean enterprise, Arena, Witness and Quest.
as it struggles to achieve desired results (Jina, Bhattacharya, and
Similarly, third classification scheme covering four broad cate- Walton 1997; Araya 2012). In HMLV, parallel and independent
gories of mapping and modelling was suggested by (Serrano, working for parts/sub-assemblies may be observed along with
Ochoa, and Castro 2008). The four broad categories are flow a bill of materials, machining/assembly-related challenges. The
diagram charts, structured systems, architectural systems and major variations creating disturbance may be due to product mix,
modelling and simulation software. machine times, routing or may be due to combinations.
As argued by (Serrano, Ochoa, and Castro 2008), to handle
(1)  Variations due to product mix: It happens in multi-product
HMLV and ETO challenges, one can select from flow diagram/
and multi-model facilities and is evidenced by significant
charts family (example process activity mapping), structured
differences in product mix, number, type, bill of materials
system (examples IDEF0, structured analysis and design tech-
and design changes. Thus, a large number of possible fin-
nique (SADT) and structure system analysis and design method
ished products cause a non-repetitive process.
(SSADM), architectural systems like {Graphes a` resultats et activ-
(2)  Variations due to machine times influencing cycle
ite’ s interrelie’ s (GRAI),CIMOSA,PERA}, modelling and simulation
times: It happens as each of the different products can
software(discrete event simulation and dynamic systems).
have completely different capacity requirements at a
For comparisons between different mapping and modelling
specific machine influencing predictability of the pro-
options, please refer (Serrano, Ochoa, and Castro 2008; Dessens
cesses, schedules and overall cycle time.
and López 2012; Daaboul et al. 2014). Several researchers (Braglia,
(3)  Variations in routing influencing the use of machines
Carmignani, and Zammori 2006; Serrano, Ochoa, and Castro 2008;
and production lines: It happens due to the fact that
Matt 2014) reviewed different options, for improvement, evalua-
the products to be made can have different process
tion and redesign of production systems in ETO and HMLV envi-
routings or the order of machines to be visited or both,
ronments. They conclude these options do not cover the same
which makes the production lines application very dif-
framework as VSM, neither in terms of objectives nor in improve-
ficult influencing flow.
ments in manufacturing systems redesign.
After a brief about ETO and HMLV, it will be appropriate to high-
light unwritten assumptions of VSM, in context to these envi-
2.2. VSM application experience in complex environments
ronments, so that the practical difficulties with applications
Before sharing application experience, it will be appropriate to could be understood. As mentioned earlier, (Rother and Shook
clarify about complex production environments and ‘unwrit- 1999) neither clarified the use of micro-concepts nor about the
ten assumptions’ of VSM. It is observed that these assump- assumptions considering environment complexities, which cre-
tions are not met realistically in complex environments, create ated unique, complicated and diverse VSM applications. Authors
PRODUCTION PLANNING & CONTROL  5

are attempting to document unwritten VSM assumptions. These • All the data details needed for mapping are easily available.
are: It is easy to measure and keep track of time flow, material
flow and resources required.
• There is not much change in the design/specifications of
• Management does not believe in hiding inefficiencies,
the product, production volumes are reasonably high and
wastes and is willing to review functional and cross-func-
product variants can be easily separated into families(man-
tional performance indicators. Contractual and permanent
ufacturing system with low variety and high volume).
employees are trained and motivated towards work and
Similarly, bill of materials of the product is simple.
improvement activities.
• Relatively steady market demand requiring stable produc-
• There is no difference between engineering processes (e.g.
tion and uninterrupted supply ensuring no shortages, risks,
product development) and manufacturing processes.
maintaining quality and delivery commitments from sup-
• Process steps are sequential (serial) in nature. Rother and
pliers, ensuring pull from the customer or user department
Shook are silent for those situations where design complex-
to facilitate production rhythm as per demand. (The term
ities, reworking/reusing/recycling, intermediate fitments,
takt time is used for reflecting rhythm).
approvals and testing needs dominate. They are also silent
• No problems related to parts, components quality, process
about those situations where the process steps can be car-
settings and interactions influencing quality, intermediate
ried out independently in parallel or multi modes, resulting
testing/tests during assembly, reworks, adjustments and
in multiple value streams. They are also quiet about machine
corrections-related requirements. Similarly, there are no
capacity constraints including dependence/independence,
transportation and queuing delays between two transfers.
settings/adjustments/reworking needs and its overall impact
• No problems related with tools, jigs, fixtures, clamps and
on cycle time, energy consumption, VA and NVA components.
disposals like chips, lubrication, cutting fluids and fur-
nace oils. Maintenance is well defined and pre-planned. It is observed that for manufacturing environments like make-
Machines are always available. to-stock, make-to-order and even assemble to order, VSM appli-
• The meaning of ‘value’ is understood at all the levels and can cations are straight forward and relatively less complex as the
be flexibly interpreted as throughput, cycle time, profit, pro- majority of the assumptions can be realistically met if not ideally
ject completion time, customisation, inventory savings, turn- (Braglia, Carmignani, and Zammori 2006).
overs, reduction in energy, resources consumption and costs. The real challenge is observed in HMLV, ETO and construction
• No major mismatch or variance within cycle times at work environments, where, these assumptions do not fit, create appli-
station level. Cycle times for each process step are of same cation difficulties and necessitate modifications/adjustments in
order per product, product family levels and machine ded- the VSM approach. Although a few studies are available, but it
ication rate is constant for the product family. is observed that due to treatment complexities, lack of clarity
• No or minimal change in routings required. Routings are about the above-mentioned assumptions and micro-concepts,
simple and mostly linear. the applications of VSM in HMLV and ETO situations are not pick-
• Pull system takes care of wastes, ensures flow, guarantees ing up the way it should be, in comparison to its usage and popu-
value and considers resources and capacity utilisation. For larity for other environments. Almost, similar difficulties are faced
top management, issues like utilisation and space alloca- by construction sector which is treated as a project or a special
tions; for material handling aisles, production supports and case of ETO.
even work in process storage are insignificant.
• There are no capacity limitations in production system. The 2.2.2. Application experience of VSM
use of shared resource/machine for multiple operations/ Majority of researchers (Braglia, Carmignani, and Zammori 2006;
process steps is not influenced by capacity constraints. Serrano, Ochoa, and Castro 2008; Braglia, Frosolini, and Zammori
• Plant layout facilitates changes in transfer batch size and 2009; Singh, Garg, and Sharma 2011; Araya 2012; Bertolini et al.
sequencing of the batches and does not impose constraints 2013; Dal Forno et al. 2014; Matt 2014) appreciated the lean
due to container sizes, crane and forklift movements influ- benefits through VSM and acknowledged complexities in these
encing interoperations material handlings, delays and production environments. One finds that VSM application expe-
movement frequencies between different sections (layout rience is very diverse. It ranges from the use of simulation, devel-
facilitates in establishing continuous flow). opment of variability indices, handling multiple value streams,
• Application of Kanban and/or CONWIP facilitates estima- simplifications, averaging and practical approximations, to com-
tion of expected work in process(WIP) and flow time using plete mapping of the processes recognising lean. This diverse
formulas based on Little’s law. Only one process called as experience endorses the utility of VSM for lean, but also indicates
the pacemaker process can direct the production of differ- that there are no generalised findings. Practitioners are con-
ent parts and can set the pace of entire value stream. fused regarding how to handle environment challenges using
• All types of situations can be expressed as process/pro- VSM, as every study has its own unique propositions. Authors
cesses, represented and analysed by graphical process are documenting important application attempts by reviewing
management, using pencil and A3-size paper. Thus, it select studies, so that messages could become explicit.
assumes that a static diagram if drawn intelligently, can Khaswala and Irani (2001) proposed value network mapping
convey lot of meaningful information. One does not need (VNM) instead of VSM to deal with bill of materials and routing
dynamic scenario-based comparisons/evaluations usually complexities. Their approach integrates industrial engineering
achieved through simulation. (IE) charts like multi-product process chart, from-to chart, VSM
6  D. SETH ET AL.

Table 1. Select compilation of studies in ETO and HMLV applications.

SN Author/s, year Application area Main tool/technique used to facilitate VSM application/adoption
1 Khaswala and Irani (2001) HMLV, fabrication job shop facility Use value network mapping (VNM) created by mixing PFAST, IE charting tools and
VSM
2 McDonald, Van Aken, and Rentes Three parallel lines, assembly Use discrete event simulation for future state mapping and in handling complexity
(2002) processes
3 Duggan (2012), 1st ed. appeared Book, covering examples for mixed Use four options-level the schedule and keep labour constant, level the schedule
in 2002. VSM in HMLV area and build ahead, level the schedule with a supermarket and build to ship with
FIFO, and balance to takt time and add labour when the product exceeds takt
time
4 Fontanini and Picchi (2004) HMLV and ETO, aluminum windows Use value stream macro mapping (VSMM) and explore opportunities of applying
for project lean concepts targeting overall flow improvement and not just isolated tool
application
5 Pavnaskar, Gershenson, and ETO, equipment installation process Use differences and similarities between engineering and manufacturing processes
Jambekar (2003), Pavnaskar and with the analogies suggested. Focus on wastes and its sources considering the
Gershenson (2004) big picture
6 da CL Alves, Tommelein, and HMLV and ETO Fabrication job shop Use VSM with job shop adaptations such as multi-skilled workforce, forecasting/
Ballard (2005) for ducts used in projects demand adjustments and averaging, flow and capacity allocations based on
changes
7 Braglia, Carmignani, and Zammori HMLV Refrigerator making plant Use improved value stream mapping (IVSM) created by mixing tools from manufac-
(2006) turing engineering and VSM
8 Chitturi, Glew, and Paulls (2007) HMLV fabrication Job shop unit Collect data from last to first to accommodate complexities. Create product family,
find common/similar and use average demand to calculate uptimes as demand
varies
9 Serrano, Ochoa, and Castro (2008) HMLV and ETO, VSM with other Understand and utilise VSM strength. Depending on requirements select members
options for manufacturing system from 4 families-’flow diagram charts’, ‘structured systems’, ‘architectural systems’,
redesign for 6 companies ‘modelling and simulation software’ to take care of dynamism, changes required,
re-engineering and scenario generation needs for redesign without missing the
focus of VSM
10 Braglia, Carmignani, and Zammori HMLV for Helmet manufacturing Use Variability analysis in VSM with the help of statistics and fuzzy theory in two
(2006) unit categories stochastic- VSM and fuzzy-VSM
11 Agyapong-Kodua et al. (2012) HMLV and ETO, UK company POP for Use VSM with computer integrated manufacturing open system architecture
shop equipment (CIMOSA); enterprise modelling (EM), cost engineering principles and different
simulation options for comparing static and dynamic multi-product streams
12 Deif (2012) HMLV for slug bracket industrial Use variability source mapping (VSM-II), with the help of variability index (new
stamping and assembly process metric to capture overall variability) and mapping, VSM-II recommends variability
reduction plan
13 Bertolini et al. (2013) HMLV, SyVSM for Electro Injectors Use SyVSM i.e. mixing standard VSM with Synchro MRP for hybrid push/pull
Manufacturing systems
14 Matt (2014) ETO green field plant-design process Follow six guidelines considering two aspects:synchronisation points in front of
for an Italian steel fabrication unit merge;activities in the value stream and splitting of customer orders into suitable
production orders with equal time increments
15 Schmidtke, Heiser, and Hinrichsen Complex process of purification Use enhanced value stream mapping by integrating VSM with discrete event
(2014) catalysts production simulation for future state mapping, feasibility studies, trade-off analysis and in
handling complexity
16 Thomassen, Alfnes, and Gran ETO and HMLV production system Use of eleven steps focussing on customer order decoupling point (CODP) covering
(2015) both current and future states
17 Alvandi et al. (2016) Multi-products manufacturing unit Use economic and environmental value stream mapping (E2VSM) integrating
producing brake-shoes/pads strengths of simulation, with enterprise resource planning, manufacturing exe-
cution system along with supervisory control and data acquisition to deal with
dynamic materials, energy and information flows
18 Koskela (1992, 2000) Comparison of production theories Focus on the lean message of TFV(transformation, flow, and value)for construction
with construction environment similar to ETO. Strictly speaking, Koskela did not advocate VSM
approach but retained lean essence for improvement
19 Arbulu et al. (2003) Reengineering construction Focus on the lean message of improvement and not the micro-concepts like takt
supply chain of power plant pipe time, supermarket, pace. VSM can handle interfaces between processes, disci-
supports plines or organisations and can be used for design, procurement and fabrication
phases of supply chain
20 Al-Sudairi (2007) Construction Use value mapping rather than VSM, understand the lean message of improvement

and a software PFAST (production flow Analysis and simplification critical path using temporised bill of materials. Then, initiate
toolkit). Their approach claims to streamline multiple flows by improvements by considering possible sharing with other sec-
creating cells and efficient material handling methods. ondary paths by treating it as a constraint. Once, this critical
Braglia, Carmignani, and Zammori (2006) proposed improved path (main value stream) is optimised, naturally, a new path may
value stream mapping (IVSM) for non-linear value streams, by become critical. So, the analysis can continue iteratively until an
integrating tools from manufacturing engineering areas. The optimum is reached or the desired reduction in work in process
basic approach is to conduct a primary analysis, to find a longer level is achieved.
PRODUCTION PLANNING & CONTROL  7

An attempt is made (Table 1) to tabulate select studies in ETO (3)  Message B:There is no clarity whether one should fol-
and HMLV environments, considering their significant outcomes low multiple value streams or only one value stream
and application area. with logical approximations can also be meaningful. It
is observed that majority of researchers allow simple
logical approximations. They argue the key message
2.3. Summary of research observations, application of VSM application revolves around lean achievement
messages, and gap areas through VA, NVA segregation and waste reduction.
They also permit to use one value stream, rather than
Lean has become an ‘accepted business wisdom’ and a challeng-
handling multiple streams. This practice is commonly
ing reality. Today, it is being discussed as a philosophy, a frame-
observed when they attempt VSM at business, supply
work and an integrated manufacturing management approach
chain and in construction environment. They argue,
which covers much more than just minimising resources-con-
in complex environments, it is extremely difficult to
sumption, energy, wastes, cycle time and emissions. It empha-
visualise flow, value and wastes. In these environments
sises on the rationalising use of resources, to help making
for example, in ETO and construction, very broad lean
products more efficient to build/make and market for the end
message (Koskela 1992, 2000) like ‘TFV’ (transforma-
user. Lean is an umbrella concept and covers a number of man-
tion flow and value) is considered meaningful and
agement principles, thoughts, tools, techniques and supportive
respected. Researchers have indicated the need for
approaches. Accordingly, it can be understood and practised
more studies to verify.
in many different manners. VSM is still one of the most popular
(4)  Message C:Some experts accept the environment
ways of facilitating lean.
complexities and discuss non-linearity, independent
Typically, lean through VSM, becomes challenging when
workings which cause multi and parallel modes in
one deals with complex production environments. Researchers
value streams. For this, experts advocate statistical and
acknowledge the strengths of VSM and attempt lean using it,
fuzzy indices along with simulation, system dynamics
but face a lot of difficulties due to lack of clarity about five prin-
and programming. Sometimes, it makes the treatment
ciples linking lean and VSM (identification of value, value stream,
complex (Braglia, Frosolini, and Zammori 2009) and
flow, pull and perfection). These generic principles are promoted,
practitioners unfriendly, who want to leverage lean
without any clear guidance about environment complexities and
through VSM but do not want to get into the mathe-
application difficulties. Other challenges they encounter arise due
matical complexities.
to lack of clarity about ‘VSM-assumptions’ and ‘micro-concepts’
(5)  Message D: ETO and HMLV industry have some differ-
which in turn complicates the VSM applications.
ential characteristics that make VSM-based improve-
Following research messages, observations and gap areas
ments difficult. Consequently, VSM implementation
are noted. The first message is common in almost all the studies
poses challenges and results in unique solutions/find-
whereas remaining messages indicate broad directions of appli-
ings. As for each product; material movements, design
cations experience.
complexities, bill of materials are different and accord-
(1)  
Common message:Almost all the researchers who ingly, processes, sequences and station timings vary
have contributed VSM applications in complex envi- significantly, which makes generalisation of findings
ronments conclude that the micro-concepts:takt time, extremely difficult. Volumes are very low to go for sys-
supermarket to facilitate pull, continuous flow and tematic efforts for applying VSM to highlight cost-sav-
releasing as per pacemaker simply do not work. There ing and demonstrative application messages guiding
is no clarity whether all the micro-concepts should be about lean benefits.
answered or one can be selective. Seeking the answers
Recent reviews (Singh, Garg, and Sharma 2011; Dal Forno
for ‘micro-concepts’ and accommodating unwritten
et al. 2014), indicate that there is a dearth of VSM applications
assumptions invite mathematical/statistical/program-
addressing wastes due to process settings, resulting in excessive
ming complexities. Therefore, to facilitate VSM appli-
rework and high cycle time. If these settings-related wastes are
cations, one often requires adjustments, averaging
also addressed with a time-tested VSM approach then one can
and approximation in terms data collection, linearity
leverage both ‘local and global improvements’. Visualising com-
in flow and timings. Researchers acknowledge the dif-
plexities of ETO and HMLV process, there seems a strong need
ficulty of getting data details, vital for mapping and
for a simple and easy to apply, VSM-based study for achieving
encourage more studies.
lean and cycle time reduction. This study addresses these gap
(2)  Message A:For complex environments, use of simu-
areas.
lation is gaining popularity. Due to the similarity in
application messages only three studies are included.
Simulation is used for scenario generation, ‘to-be’
3. Company, problem and representative product
state verification, and for evaluation. Recent trend is
to integrate simulation with manufacturing execution ABC is in the business of making, heavy-duty industrial transform-
system and enterprise resource planning packages. ers with an annual turnover of 10,000million INR (1$ = 65INR).
Researchers caution about the simulation software The company currently has 900 employees and operates three
complexities, compatibility, programming needs, costs, shifts. ABC is facing tough competition due to high manufactur-
subject expertise and time spent on improvement. ing cycle time. Customer orders mostly consist of one, two and
8  D. SETH ET AL.

very rarely even three similar/dissimilar units and are treated as between theory and the evidence (Yin 2003). One can cover con-
a project. Products/variants may or may not involve common textual conditions relevant to the study. It is particularly suited
materials, casings and standard parts, due to commonalities for the ‘how’ type questions posed by research, and permits
between variants. Every order is unique, requires an individual the operational links between different understandings to be
bill of materials and production routings to complete the final explored (Yin 2003). It also allows combining different qualita-
assembly. Typically, the industry operates with low product vol- tive and quantitative data collection methods such as archives,
ume, possibilities of design changes as per customer’s require- company records, observations, interviews, discussions, ques-
ments, similarity/dissimilarities between variants, project nature tionnaires and workshops.
of product, stage-based testing complexities due to engineer- In context to the case study, operational data are more likely to
ing standards and additional fitments to cover testing/commis- be measurable and usable as they are grounded in ‘real life’ con-
sioning challenges. text (Eisenhardt 1989). This feature makes it valuable in develop-
ABC manufactures all type of power transformers depending ing, testing and even refining an operational understanding of the
on requirements, ranging from an LV (10 kV) transformer to an HV concepts. According to (Yin 2003); it is not necessary that every
(1000 kV) transformer. The company follows both standard design case study should lead to theory development rather it can be
option and custom design options to accommodate the custom- used for extending and testing a theory, which is the need of this
ers’ request. For this, they have an in-house team to design and study. According to (Ellram 1996), this treatment is most appro-
facilities to make the transformer as per the customer needs. For priate for the application-based exploratory research as it leads
the transformers, many combinations and variants are possible. It to the expansion of understandings without providing statistical
depends upon options to include variations in windings, typically generalisations and still offers the strength of empirical validity.
these variants may be 2 windings High voltage (HV), Low voltage Case study offers some challenges, like; it is time-consuming
(LV), 3 windings (HV/LV1/LV2), in terms of connections Wye/Delta and demands utmost care in drawing generalisable conclusions
type, typical LV: 10, 20, 25, 40, 50 kV, typical HV: 33, 69, 115, 138, (Voss, Tsikriktsis, and Frohlich 2002). Some researchers argue
161, 230, 345, 500, 600, 750, 1000 kV, phase single and three, that for a case study minimum three situations, cases should be
with and without attachments. Thus, for all practical purposes, covered. However, (Eisenhardt 1989; Yin 2003) clarify that if the
the working of ABC can be treated as high-mix and low-volume nature of the research demands ‘how’ and ‘why’ type questions
(HMLV) industry operating on engineer to order (ETO) products. then even one situation can be presented as a case study for
It may be noted that the process parameters for a specific trans- drawing meaningful and generalisable messages. For the present
former variant are different as compared to other. research, case study methodology as suggested by (Eisenhardt
To withstand competition, factors like product quality and 1989) was followed.
manufacturing cycle time become extremely significant. It
becomes urgent when the company is facing problems due
4.2. Research-based implementation framework
to reworks contributing high costs and excessive cycle time.
Management is vigilant about these problems and is interested As shown in Figure 1, the framework starts with the recognition
in process improvement-based investigation approach for trans- of the problem statement for the study. It is followed by system-
former making cycle. Executives are convinced about wastes and atic literature review to understand research messages, scholars’
cycle time reduction through lean but are sceptical about VSM experience and gap areas. It is followed by research questions
application in this environment. Management and research team raised for the study. Based on the nature of investigation, case
are aware of the fact that, it is difficult to capture the full range study method is used to facilitate data collection and other
of variability in a single VSM. Because many parts/components necessary details. The next step represents the preparation of
have different and parallel process routings with high interac- ‘As is’ or existing status value stream map to understand, the
tions, which makes it extremely challenging to capture the pro- entire process, flow, wastes, difficulties and sources of rework.
cess steps in a consistent sequence and the time between steps As shown in Figure 1, based on ‘As-is’ VSM after understanding
becomes unpredictable resulting into different value streams. In the impact of the process setting wastes on cycle time, Taguchi
this situation, a workable and practical solution can be to identify method is applied in vapour process drying (VPD) area to opti-
a representative product and perform one value stream-based mise settings. Next step represents preparation of ‘To-be’ VSM
analysis, to understand bottleneck, problematic areas and vari- state, after incorporating improvement measures. Finally con-
ous wastes to decide its treatments. To identify a representative clusions and findings are drawn and limitations are reported.
product (one variant), authors reviewed previous years records,
discussed with executives and based on the available data, for the
present case, a recently required product 500 MVA, 765/400/33 kV 4.3. Research team, gemba walks, time details and
power transformer (insulation weight 14,000 kg) is chosen as a systematic questioning technique for data collection
representative product for VSM application.
Realising the complex nature of the study, it was necessary to
form a research team for data collection, facts finding, conduct-
4. Research methodology ing trials, technical and managerial discussions. Accordingly, a
research team was formed comprising of authors, one produc-
4.1. Justification for case study method
tion manager, two production engineers, one senior design
There were many reasons for selecting case study method for engineer, head materials handling, testing in-charge, materials
this research. Case study method allows a phenomenon to be manager, planning engineer and one industrial engineer to col-
studied in relation to its real life context, facilitates rich dialogue lect necessary details and carry out a study over a period of ten
PRODUCTION PLANNING & CONTROL  9

and half months. Each of the experts identified for this job was about workings as per the needs of the study. Guidelines by
having a relevant experience of +15 years and working for ABC (Serrano, Ochoa, and Castro 2008) were taken into considera-
for more than 10 years. The team was given free hand to include tions, while deciding the roles and responsibilities.
any other participants, who possessed relevant knowledge The team started a series of discussions regarding product
variants, testing needs, types of problems which directly and indi-
rectly affect cycle time and add wastes. Team members collected
last few years’ production data and ‘annual build plan’, which con-
sisted of committed and anticipated orders, spillover (backlog
order and partial work) from the previous year. Hard copy-based
information in operations manuals and standard operating pro-
cedures were also referred. Similarly, the bill of materials-related
details were also collected. Like any industrial ETO product, the
bill of materials for industrial transformer typically consists of
more than 9000 items, the number may increase further depend-
ing upon the attachments needed by the customer. Process
review was also conducted to investigate the existing shop floor
scenario and method of making. Along with line observations,
gemba-walks for process reviews, systematic questioning tech-
niques (Seth and Rastogi 2009) were also conducted to gain full
understanding of the facts regarding current shop-floor practices,
various wastes and improvement possibilities.
Gemba-walk approach (Tyagi et al. 2015) upholds the view that
in order to fully understand a problem, one must visit the actual
workplace and observe the impact of what is happening, which
influences multifarious workflow and value stream. Along with
gemba walks, the team also made use of systematic question-
ing techniques of 5whys (asking why five times for root cause)
and 5W2H (Why, what, where, when, who, how, how many/how
much). The questioning technique facilitates critical examination
where each activity is subjected to a systematic and progressive
series of questions to identify the sources of wastes and facilitates
improvements. Table 2, presents stagewise questions used for the
data collection and identifying improvements.
It was decided to use three different resources for data
collection. Planning department was contacted to collect data
about the types of products and subassemblies to be assembled,
expected demand and testing requirements. Industrial
engineering and production departments were contacted to
collect the time and resources required for different components
or sub-assemblies. For verification, team members also used
production department records such as goods receipt notes
Figure 1. Framework for study.
and dispatch notes, work orders, job sheets, crane operators

Table 2. Systematic questioning technique.

Challenge Alternatives/options Generation and com- Final selection for


situation with a view parison of alternatives, development and
to understand Facts finding Reasons Possibilities Selection implications adoption/adaption
Purpose What is being done? Why is it done? What else can be What should be What are merits & demerits What can be selected
(for which) done? done of each alternative? for development?
Means How it is done? Why it is done in that How else can it How should it be What are merits & demerits What can be selected
way? be done? done? of each alternative? for development?
Sequence When it is done? Why then only? When else can it When should it What are merits & demerits What can be selected
be done? be done? of each alternative? for development?
Place Where it is done? Why there/at that Where else can it Where should it What are merits & demerits What can be selected
place? be done? be done? of each alternative? for development?
Person Who does it?(by Why that person? Who else can Who should What are merits & demerits What can be selected
whom) do it? do it? of each alternative? for development?
Frequency/Quantity How many times/ Why that many How else can it How many times What are merits & demerits What can be selected
how much it is times/so much? be done? should it be of each alternative? for development?
done? done?
Nature of questions Primary questions Secondary questions Final questions
10  D. SETH ET AL.

job cards, selective stopwatch study, area registers, available Tank and oil area (Area6): In this area, the top cover of trans-
log books and interviews with supervisors and engineers. In this former’s tank is attached and drying is carried out along with
manner, due to ETO nature, for time-related details, both indirect vacuum creation. It is followed by, oil-filling, bushing and covering
methods for time estimations, and selective direct observations- of transformer.
based approach like time study was adopted, which resulted in Testing-area (Area7): Here, high- and low-voltage tests are con-
‘approximations in terms of time’. ducted on assembled transformer.
Painting and dispatching-area (Area8): In this area, painting
and remote tap control compartment (RTCC) fitment is done.
4.4. Brief description of areas and processes Subsequently transformer is disassembled for dispatching.

Figure 2 represents layout of ABC, subdivided into eight areas


with important flows. 5. Current or ‘As-is’ state VSM and its analysis with
Area overview and basic details are as under. data details
Winding-area or coiling area (Area1): Transformer assembly For the preparation of ‘As-is’ state and subsequent analysis, it
starts from winding area, which has separate machines, for high was necessary to understand the shop floor situation and to get
and low voltage windings. It is followed by, pressing to attain relevant data. Getting information was not straight forward, and
desired dimensions. To remove entrapped moisture from the requiring multiple sources. Team members conducted gemba
windings, hot air drying is carried out using ovens. After pressing walks to diagnose problems from shop floor perspectives.
and drying, windings are sent for phase assembly. Various available records were also observed along with dis-
Core-area (Area2): Core making is an independent process cussions. This was also necessary to verify processes, shop-floor
involving stamping and insulation. The core is made in paral- loading, management’s understanding about the capacity to
lel with windings using wooden stands and is followed by limb produce, transfers and movements, wastes, area-specific times,
manufacturing. Cold-rolled grain-oriented steel is used for core testing time and preparation activities, difficulties in different
making, and its insulation is also carried out simultaneously. It is areas such as attaching of fitments for testing requirements.
followed by top frame removal. Based on earlier records, team members were aware of details
Core coil assembly or CCA-area (Area3): As the name indicates, in terms of optimistic, most likely and pessimistic times for various
coils and core are assembled in this area. Assembly requires fit- subassemblies and components, tests, handling requirements.
ments attachment to facilitate intermediate tests. After carrying Therefore, it was not difficult to get representative time details
out tests, some of the fitments are removed and some continue after due verifications from production executives. Looking to the
further with assembly. nature of production environment, heavy weights of components
Vapour phase drying or VPD-area (Area4): Here, moisture is and the need for progressive assembly, shifting from one area to
removed from the assembly by systematic and phasewise heating other, it was necessary to group the data into broad categories.
in vacuum. For this, complete assembly is kept in kerosene as Grouping was also necessary to understand what was VA
drying medium, maintaining low-pressure conditions to extract and NVA, what was necessary and what not, so that ‘realistic
water vapours (moisture). VPD is the most critical and energy- and feasible improvements’ could be targeted by getting
intensive step in transformer making, often requires rework; details about VAs and NVAs. This grouping was done at two
adjustments and thus influences cycle time. levels. First team members began with three broad categories
Pre-tank-area (Area5): Transformer’s tank is made in this area. as ‘make ready activities’, ‘do activities’ and ‘put away activities’
After making, installation of on-load tap changer (OLTC) is done, to segregate productive and non-productive activities. Here, ‘do
which is a connection point selection mechanism for selecting a activities’ were treated as VAs whereas ‘make ready activities’ and
number of turns in the winding. It is followed by phase tightening. ‘put away’ were grouped as NVAs. This was done to facilitate

Figure 2. Layout representing various areas.


PRODUCTION PLANNING & CONTROL  11

Figure 3. ‘As is’ or current state VSM.

questioning, as non-productive activities should be questioned charging of machines and other time-related wastes. Based on
first. It was realised that the above broad level VAs and NVAs the proven guidelines of (Voss, Tsikriktsis, and Frohlich 2002; Yin
cannot be easily analysed. Based on questioning response 2003), the validity of the data was assured by cross checking the
and inputs about the resources, the activity-related data were details with section supervisors, engineers and managers.
subsequently subdivided into broad categories such as:Collect, After collecting and verifying the information, the team began
Check, Attach, Do, Detach, Load and Unload, Shift or Transfer and to prepare ‘As-is’ state of value stream for the selected product. For
Test for timing purposes to facilitate mapping. This second level the preparation of ‘As is’ state, standard VSM procedure with usual
grouping helped the team members to delve deep into activities symbols was followed. Figure 3 represents value stream map for
and the clarifications regarding VAs and NVAs. The details about the chosen transformer (windings weight 14,000 kg) capturing
second-level break-up of activities with time are given in the area details and linking the flow.
Appendix 1. The usefulness of VSM was obvious in exposing wastes and
Sufficient precautions were taken to separate various times reflecting the picture along with value-adding(VA) and non-value-
for example, setup time with assembly time and inspection time adding(NVA) components of making cycle as shown in Figure 3.
required at different stages of making. Similarly, care was taken Areawise details about VA and NVA activities are presented in
to document transportation time/shift and shop floor distractions the Appendix 1. Table 3 presents the areawise summary of VA
such as problematic machines, lunch and tea breaks, cleaning and and NVA timings.
12  D. SETH ET AL.

Table 3. Areawise summary of VA and NVA in days (based on ‘As is’ state). Other weaknesses also came in light like, hot press operations
VA (timings % VA of total NVA (timings % NVA of total taking more time for dimensional adjustments than cold press,
Area no in days) area time in days) area time delays due to placement of temperature sensors and relays with
1 7.308 63.45 4.209 36.55 door closing in drying, slower core making due to manual stack-
2 9.08 62.92 5.35 37.08 ing and then ensuring alignment of a large number of cold-rolled
3 7.4 56.47 5.705 43.53
4 5.915 79.81 1.496 20.19 grain-oriented sheets. The other identified wastes were transpor-
5 1.24 35.05 2.298 64.95 tation, incorrect processing in VPD causing rework issues and
6 5.985 53.34 5.235 46.66 waiting times.
7 0.05 4.07 1.18 95.93
8 0.93 35.23 1.71 64.77 It was clear that in all the areas improvement was possible. The
issue was where to focus first. Research team discussed problems,
Note: For details of VA and NVA activities in each area, please refer to Appendix 1.
its criticality and focussed on VPD area. The reasons were:VPD was
an energy-intensive area, so savings would directly affect opera-
5.1. Analysis of weaknesses in the existing working tions cost. The quality and reliability of an industrial transformer
causing delays, rework and wastes depend on the quality of insulation and its moisture contents,
VSM Application was an eye-opening experience. People were which affects market reputation. VPD was creating a lot of rework,
busy in their areas and in handling area-specific problems correction and adjustment waste causing delays and influencing
and coordination hassles. They were missing the big picture. cycle time. All these reasons were indicating to take up VPD as the
Weaknesses became explicit after VSM analysis of the pres- bottleneck area, for detailed investigation for appropriate process
ent state. These weaknesses range from general to complex in settings to explore a possible reduction in rework and adjustment
nature, demanding detailed investigations. Some weaknesses wastes influencing time, cost and energy savings.
were obvious and were known to the research team during
Gemba walks even before the preparation of ‘As is’ VSM state like 6. VPD process details
oily shop-floor due to oil spillage, winding-wire pieces, knuckle
pins, nuts and bolts on ground, use of improper ropes for sling- In VPD, moisture is progressively removed from the assembly
ing causing attachment/detachment delays, crane unavailabil- by systematically heating in vacuum. For this, complete assem-
ity for handling causing delays. bly is kept in a drying medium like kerosene, maintaining very
Whereas, some engineering and managerial weaknesses low-pressure conditions. This process is completed in four
were difficult to diagnose, for example, lack of coordination to phases. First, assembled unit is brought to the desired vacuum
bring materials/components/parts for assembly from stores and level, which starts from 1000 mbar and goes up to 7 mbar. Wall
vendors, making single parts independently triggering delays heating pump is started maintaining 9–13 mbar to facilitate the
for assembly, lack of knowledge about process setting param- process. In second phase, assembly is heated by using thermic
eters in VPD causing rework, corrections and adjustments. VPD fluid vapours to 125 °C. The heating depends upon the weight
was energy-intensive area and because of wrong settings, engi- of insulation and initial moisture contents and may require rep-
neers used to struggle to reach to target quality values. This etitions. Third phase is necessary for further reducing the water
was resulting in a lot of energy wastes due to multiple heating vapour contents. The pressure reduction and heating remains
cycles and causing reworks and adjustment-related wastes. active till pressure drops below 25 mbar. During last phase, all
These wastes were unnoticed before the complete picture was vacuum pumps are switched on at full capacity and are contin-
available. ued till vacuum reaches to 0.2 mbar.

Figure 4. Cause and effect diagram for quality problem, rework and high cycle time.
PRODUCTION PLANNING & CONTROL  13

Table 4. Factors with levels.

Factor Factor details Unit Range Level 1 Level 2 Level 3


A Wall temp. difference (Rough-Vacuum) °C 45–65 45 55 65
B Wall heating pump starting pressure mbar 8–12 8 10 12
C Vapour temp. difference (Heating) °C 60–70 60 65 70
D Wall temp. difference (Heating) °C 40–60 40 50 60
E Job temp. difference (Heating) °C 60–70 60 65 70
F End pressure mbar 19–23 19 21 23

Table 5. VPD completion time in hours. It is observed from the Table 6 that A has the greatest impact,
Exp. No. Trial 1 Trial 2 Trial 3 Average followed by B and F whereas C,D and E have insignificant influ-
1 95.134 94.964 95.013 95.037 ence on the completion time. From the analysis (selecting the
2 98.482 98.281 98.271 98.344 highest value), the levels of process parameters/factors were
3 102.934 102.905 102.915 102.918 decided as A (wall temperature difference) at 65 °C, B (wall heating
4 104.289 103.987 103.954 104.076
5 105.349 105.179 105.587 105.371 pump starting pressure) at 8 mbar, C (vapour temperature differ-
6 106.451 106.295 106.05 106.265 ence-heating) at 60 °C, D (wall temperature difference) at 40 °C,
7 111.398 110.805 110.941 111.048 E (windings temperature. difference) at 65 °C and F (pressure at
8 112.709 112.518 112.639 112.622
9 110.486 110.83 110.182 110.500 the end) at 19 mbar and combination chosen as A3B1C1D1E2F1.
10 94.374 93.918 93.847 94.046 The results were very encouraging after process optimisation.
11 95.714 95.853 95.851 95.806 VPD process time came down from 7.411 to 6.180 days (refer to
12 93.592 93.481 93.759 93.610
13 98.16 98.715 98.643 98.506 the Appendix 1 and Table 8 for details). This optimisation in VPD,
14 97.187 96.841 97.017 97.015 not only reduced rework problems, which was less visible but
15 96.815 96.518 96.879 96.737 also proved beneficiary in terms of energy saving. Earlier, heating
16 102.961 103.087 102.794 102.947
17 103.79 103.417 103.825 103.677 cycles in VPD were being repeated to adjust and achieve desired
18 101.478 101.169 101.326 101.324 moisture contents and this hidden energy-intensive waste was
19 92.275 92.118 92.369 92.254 going unnoticed. Impact on the improvement was compared for
20 88.123 88.419 88.369 88.303
21 90.363 90.261 90.169 90.264 the representative product as shown in Table 7.
22 93.169 93.387 93.487 93.347
23 90.636 90.875 90.084 90.531
24 91.156 91.865 91.954 91.658 7. Measures taken for improvements and future or
25 100.743 100.487 100.263 100.497 ‘To be’ VSM
26 96.264 96.859 96.835 96.652
27 97.578 97.138 97.84 97.518 Once the big picture through VSM was available, indicating
improvement possibilities; the team started working towards
the reduction of NVA and optimising VA. Some of the shop
6.1. Root cause analysis and Taguchi method for VPD floor-related difficulties were noticed during process reviews
process improvement and Gemba walks, however, measures were taken once the over-
Research team brainstormed and tried to establish reasons for all big picture was available. A series of initiatives were taken
the poor quality, reworks, adjustments causing excessive pro- ranging from shop floor cleanliness, material handling, appro-
cess time through root cause analysis. Figure 4, indicates major priate process settings and materials policy-related changes.
causes for investigation. Some key improvement measures carried out in ABC are:
Six key contributing factors were identified, influencing quality • To reduce oil spillage, more emphasis was laid on preven-
and rework problem. It was decided to use, Minitab® for design of tion rather than emphasising reactive measures. Leakages
Experiments (DOE)-based Taguchi method considering six factors, from the storage tanks, overflow, spill and a mishap during
three levels, 1 as lowest and 3 as highest, as listed in Table 4. filling were handled by a combination of installing poka-
Utilising the recommendations of researchers (Phadke 1995; yoke (mistake proofing) at the filling station, along with
Roy 2001), it was decided to carry out 27 experiments based on Kaizen and 5S initiatives.
L27 orthogonal array arrangement and neglecting the interaction • More emphasis was laid on periodic inspection and
effects between factors. These experiments were repeated 3 times employee training along with the development of check-
to understand the impact of factors on VPD completion time for lists for regular follow-ups. In the case of accidents, catch
the representative product, as shown in Table 5. basins were also made, close to the oil filling facilities and
The performance of VPD oven and optimal drying condition storage tanks; to regulate the flow of oil along with the use
are analysed by Taguchi’s signal to noise (S/N) ratio expressed in of oil absorbents and scrubber-based floor cleaners.
decibels considering lower the better requirements. This analysis • Magnetic pickers were put in use for loose wire cuts, broken
is carried out to obtain right process settings. The main effect nails, screws, nuts and bolts which were earlier very com-
and signal to noise ratio analyses are shown in Figures 5 and 6, mon on the floor. Now it was mandatory to use these pick-
respectively. ers two times in a shift. This change not only took care of
The S/N response table (refer to Table 6) represents mean S/N shop-floor cleanliness but helped in preventing accidents.
ratio expressed in decibels (db).
14  D. SETH ET AL.

Figure 5. Mean effect plot for completion time.

Figure 6. S/N ratio plot for completion time.

Table 6. S/N response table for completion time. Table 7. Impact on the improvement.

Mean S/N ratio (db) Criteria Before After % improvement


Main factor Level 1 Level 2 Level 3 Max–Min Rank Energy 10,150 kWh 8464 kWh Savings
consumption achieved = 16.61
A −40.422 −39.839 −39.405 1.017 1 per unit
B −39.501 −39.825 −40.335 0.834 2 Total time per unit 7.411 days 6.18 days
C −39.791 −39.931 −39.939 0.148 4 Total energy cost per 812,060 INR 677,170 INR
D −39.834 −39.926 −39.901 0.092 5 unit(INR, 1$ = 65
E −39.905 −39.864 −39.892 0.041 6 INR)
F −39.758 −39.896 −40.007 0.249 3

two dedicated crews were formed among the workers based


• ABC was using one tower crane and one mobile crane for
on their expertise, skills and fitness to assist crane operator.
handling and transportation. It was noticed that handling
The additional members were, slinger responsible for attach-
and transportation through the mobile crane, was taking
ing/detaching and selecting lifting gears depending upon
more time. Similarly, handling time through tower crane was
load with operator consultation. The second member of the
also on the higher side. Looking to the shifting requirements
crew was signaller for relying on signals from slinger to crane
from one area to other, of heavy components and assembly,
operator. Crew members were trained to ensure better and
it was not possible to reduce it to zero, although NVA and
stable movements. Similarly, for tower and mobile cranes,
wasteful act. Due thoughts were given to simplify and reduce
safe load indicator was installed.
it. Two changes were introduced. For handling of objects,
PRODUCTION PLANNING & CONTROL  15

• For pipes handling and lifting instead of rope slings; mesh- case study, these changes/modifications were actually made that
type fibre slings were introduced. For both types of shack- is why authors chose to prepare ‘To-be’ as verification/validation
les (D and anchor bow) locking pins were modified. Round and to demonstrate the improvements by comparing two states.
pins with locks were introduced instead of screw pins. Comparative areawise summary of NVA and VA timings, before
• To reduce delays and waiting, new coordination mecha- and after VSM implementation, are presented in Table 8.
nism between planning and production was initiated to Based on Figure 7, Tables 7 and 8 and details furnished in the
schedule orders in such a way that all the required items for Appendix 1, it is quite clear that, for the representative product,
assembly and production were gathered in stores or made the simplified VSM approach results reduction in NVA and VA tim-
available to the production staff, before starting of any pro- ings in all the areas influencing total cycle time.
ject, which reduced the waiting time considerably. For this,
vendor management was also revamped. One such exam-
8. Conclusion and comparison for pre- and post-VSM
ple, now the tank was ordered prior to VPD completion so
application
that assembly after VPD could be shifted to the tank imme-
diately avoiding delays. In line with the research questions raised, the study demon-
• Similarly, to address time delays in hot press areas, detailed strated wastes and cycle time reduction, leveraging both local
time study was carried out. It was realised that dimensional and global improvements through VSM for the transformer
accuracy from the hot press was more critical. It was taking making. For this study, a variant 500 MVA, 765/400/33 kV power
more time in comparison to cold pressing, after consulting transformer was chosen as a representative product to demon-
with management, it was decided to duplicate hot press. strate VSM application for lean. One can expect similar results for
Similarly, placement of temperature sensors and relays other variants. Some of the suggestions made by the study are
before drying was initiated and the necessary operating general and applicable for all products while for some (like VPD
procedure was modified. process optimisation) are case specific.
• A vacuum-based robotic arm was deployed for the han- In this VSM application study; lean, wastes and cycle time
dling of cold-rolled straight-grained cut steel sheets along reduction were successfully achieved by reducing NVA activities,
with flexible guides. This modification reduced manual wastes and compromising on major challenges of complex envi-
fatigue, alignment difficulties and time. ronments. Authors used approximations, logically followed only
• As mentioned earlier, the moisture content requirements one value stream and did not get into ‘micro-concepts’ of VSM
in transformer were very critical. To remove moisture at like takt time, flow, pull, supermarket, pacemaker and avoided
very low-pressure VPD was used. As the correct process the complexities of solution approaches as promoted by other
settings were not being used, VPD operators were using scholars.
this energy-intensive process multiple times to get right The study reports overall cycle time reduction of 17.3%. For
moisture values which were resulting into excessive han- this, Authors would like to share the comparative picture through
dling, rework and adjustment-related wastes and multiple Table 9 (refer to Appendix 1, Tables 7 and 8, Figures 3 and 7 for
heat cycles. To optimise heating time and to reduce rework details).
and adjustment wastes due to stringent requirements, it From Table 9, it is clear that adapted VSM application with
was necessary to use VPD at appropriate process settings. approximations and compromises, to accommodate environment
For this, Taguchi method-based design of experiment was complexities; results into a reduction of 17.3% in cycle time and
applied for right settings, which helped in reducing energy 29.78% in non-value-adding(NVA) activities. Value adding (VA)
and cycle time. activities are also reduced by 8.48% without any major change
in technology and process-related changes.
After incorporating improvements, future state VSM was pre-
Another significant improvement was reduction in energy
pared as shown in Figure 7.
consumption in VPD from 10,150 to 8464 kWh. Since the focus
Here, it is important to discuss about two options for the
of this research was restricted to reduce the cycle time, attention
preparation of future or ‘To-be’ VSM state. Once the necessary
was not given on energy savings in other areas, however, this is a
data details are collected, ‘As-is’ or present VSM state is prepared
potential field for future studies. Due to time constraints, energy
to highlight NVAs, wastes and to trigger improvements. After ‘As-
savings in other areas could not be taken up further and is una-
is’ preparation, lean researcher can think of improvements and
vailable to report for the entire making cycle.
can explore different methods to address NVAs and wastes. Two
options are commonly observed. First, if one is using simulation/
system-dynamics/mathematical modelling to visualise the impact 9. Contributions and lean application messages
of changes made (without actually incorporating changes) then a
The study reports following contributions and VSM-based lean
‘To-be’ state is first prepared and then the ‘guided’ improvements
application messages.
are made in accordance with ‘To-be’ state. Second option is once
NVAs and wastes are exposed then after preparing ‘As-is’ state, (1)  This research establishes that in complex environments,
depending upon the wisdom of improvement team members, even with broad lean messages like ‘TFV’(transformation
feasibility of improvements, urgency and other constraints (like flow and value) and logically following one stream,
time, money spent) necessary changes can be implemented. To workable approximations and simplifications in terms
understand and to compare the impact of these changes/imple- of data collection and mapping needs; VSM proves to
mentations made, ‘To-be’ State can also be prepared. As in this be a versatile efficient process improvement approach
16  D. SETH ET AL.

Figure 7. ‘To be’ or future VSM.

Table 8. Areawise summary of VA and NVA in days (based on ‘As is’ & ‘To be’ states).

VA (timings in VA (timings in days)::after NVA (timings in days):


Area no days) improvements % of total area time NVA (timings in days) after improvements % of total area time
1 7.308 6.758 63.78 4.209 3.837 36.22
2 9.08 8.47 66.38 5.35 4.29 33.62
3 7.4 7.2 71.01 5.705 2.94 28.99
4 5.915 4.95 80.10 1.496 1.23 19.90
5 1.24 1.24 51.11 2.298 1.186 48.89
6 5.985 5.26 57.93 5.235 3.82 42.07
7 0.05 0.05 4.95 1.18 0.96 95.05
8 0.93 0.93 42.18 1.71 1.275 57.82
Note: For details of VA and NVA activities in each area, please refer to appendix.
PRODUCTION PLANNING & CONTROL  17

facilitating wastes and NVAs reduction and can be (5)  Another useful memorandum from the study is con-
meaningfully applied for lean. It establishes that using firmation of the fact that broad lean messages, remain
approximations and simplifications one can deal with same for both simple and complex production envi-
the ‘micro-concepts’ related challenges which otherwise ronments and are independent of environment
create complications for VSM applications. This study complexities.
like (Braglia, Carmignani, and Zammori 2006; Yang 2013; (6)  The study establishes the strength of process oriented
Matt 2014; Tyagi et al. 2015) also establishes, that lean approach over result oriented approach. In complex
through VSM depends on targeting VA and NVA, for environments like construction and ETO, result ori-
wastes and cycle time reduction. ented approach is commonly adopted for handling
(2)  This study exposes that VSM application intricacy projects/engineered products. Typical project based
in complex production environments arises due to working focusses on end results and hides many
non-compliance of ‘assumptions’ which inturn com- wastes whereas, lean based process oriented approach
plicates the handling of ‘micro- concepts’ and makes like VSM exposes NVAs, wastes and supports TFV.
the lean challenging. Non-compliance of assump- (7)  Last contribution is in the form of guidance or lesson
tions not only complicates ‘micro-concepts’ handling, learnt from study regarding time details which are
but also confuses researchers regarding five guiding vital for VSM. In complex environments, independ-
principles (value, value-stream, flow, pull and perfec- ent, intermittent and parallel workings on different
tion) connecting VSM and lean. Wrong interpretation portions of product/project are very common, which
of these principles in context to complex production makes time measurement difficult and challenging.
environments, creates confusion and fuels challenges. These workings are performed by a group of work-
To address this confusion and to facilitate lean through ers, with varying skills, requiring intermediate testing,
VSM, authors are suggesting useful guidelines as approvals and supervision. It is observed that in many
shown in Table 11. cases, it is extremely difficult and many time impossi-
(3)  The study guides about rework problem and exces- ble to get exact time data. Because of long cycled and
sive energy consumption due to wrong process set- intermittent nature of project it is expected that, there
tings. This problem is rarely discussed in the light of should be some guidance about time measurement.
VSM. The study handles wastes and energy reduction Unfortunately, till date, no such guidance is availa-
through Taguchi method and links its impact using ble for time-related details. For this, authors, encour-
VSM, which is relatively less reported. The findings can age lean-seekers (Researchers and practitioners) to
be used, where the cycle time and energy consump- use a combination of direct observation and indirect
tion increases due to excessive process adjustments. observation time measurement approaches. It simply
(4)  The study reports generalised VSM application expe- means, time can be measured, estimated, synthesised,
rience for both simple and complex production approximated and even generated which can be sub-
environments, so that messages become explicit for sequently verified by mechanisms like field profes-
researchers and practitioners. Refer to Table 10. sionals, supervisors and operators, log book records,
finger scanner records and time punching machine
Table 9. Comparative timings for ‘As is’ and ‘To be’ VSM application. database Thus, using combination of indirect/direct
approaches may lead to approximations in terms of
Measures(in days) Pre-application Post-application Change in % time measurement, but it will facilitate mapping and
VA time 29.36 26.87 8.48 in turn support improvements. Lean seeker’s objective
NVA time 20.68 14.52 29.78
Cycle time 50.04 41.39 17.3 should be, the approximate time is realistic, represent-
ative and verifiable.
Table 10. VSM application experience and messages.

Criteria VSM in simple production environments VSM in complex production environments


Lean principles as suggested Lean principles by (McManus 2005; Seth and Gupta 2005) Lean principles by this study and (Koskela 2000; McManus 2005;
by (Rother and Shook 2003) Braglia, Carmignani, and Zammori 2006)
(a) value (a) Visible at each stage of conversion, goal is defined. (A) Difficult to see, emergent goals
(b) value-stream (b) Parts and material (B) Information, knowledge and experience
(c) flow (c) Iterations are waste (C) Efficient planned iteration monitoring critical flow
(d) pull (d) Driven by takt time (D) Driven by needs of company
(e) perfection (e) Repeatable process,consistency without errors. (E) Enables enterprise improvement

Micro-concepts applicable (a) Takt time Majority of micro-concepts are not applicable along with
(b) Supermarket, its position for pull non-compliance of assumptions. This causes treatment com-
(c) Pace and pacemaker plexities & needs approximations, averaging and compromises.
(d) Continuous flow & one route The guiding principles may fuel confusion
(e) Levelled production and similar station timings

Broad lean messages (a) Simplicity and visibility (A) Simplicity and visibility
(b) Enterprise improvement maintaining global picture with local (B) Enterprise improvement maintaining global picture with local
details details
(c) Clear segregation of VA and NVA for wastes reduction (C) Clear segregation of VA and NVA for wastes reduction
(d) Information-flow, product- flow and timeline (D) Information-flow, product flow, and timeline
(e) TFV(transformation, flow, and value) (E) TFV(transformation, flow, and value)
18  D. SETH ET AL.

Table 11. Broad guidelines to facilitate lean.


Value (1) ‘Customer-driven value’ often misleads researchers and confuses practitioners
(a) Value, as perceived by customer’s eyes, may not be the true value and should not be considered as a rigid rule
(b) Value in complex production environments depends on reducing wastes, cycle time, resources consumption, costs, energy
(c) True value lies in improving quality, flexibility, variety, designs, customisation, delivery commitments without compromising on requirements,
product functions, features and specifications
(d) In near future the meaning of ‘true value’ may further change and may be linked with innovations/constraints due to recycle, reuse, recover, rede-
sign, remanufacture along with existing ‘reduce’ requirements for wastes, resources, energy, emissions and costs

Value stream (1) VSM linking flows of materials, information and timeline are considered difficult & complex due to non-compliance of assumptions and lack of simple
handling of micro- concepts
(a) Be clear whether simple approximated message is better or accurate but complex academician-friendly solution
(b) Follow one most logical value stream with reasonable approximations

Flow (1) Recognising and stabilising workflow is challenging due to parallel, independent workings along with other hassles
(2) Constraints like design changes, reworks, adjustments, time mismatches, customer interventions, material handling, intermittent testing, and approvals
etc. influence workflow. One piece unified flow is extremely difficult
(a) Try to stabilise flow by wastes minimisation, work restructuring and better planning
(b) Differentiate between bottleneck, pace of the process and decoupling point bearing in mind production typology
(c) Differentiate between three different requirements of levelling, balancing and synchronising
(d) Try unified flow by modifying work division patterns of teams, attempt concepts like heijunka systems, load capacity analysis along with other
supportive Japanese concepts like single minute exchange of dies, kaizen, 5S, use of containers etc.

Pull (1) Fairly difficult to attempt just in time production by ensuring pull for the supplies of components, parts, materials and even services
(a) Attempt analysing the simplification possibilities in planning, controlling triggers and scheduling mechanisms along with stabilising workflow
(b) Encourage simplified communications/controls for pulling components, materials and services as and when necessary
(c) Encourage use of visual controls and status boards
(d) Differentiate between no inventory, buffer and moderate inventory

Perfection (1) Design, processes, assembly requirements and their interactions are not understood
(2) Machine/crane/forklift availability and layout often create problems
(3) Less emphasis is given to continuous improvement, systematic procedures, settings and employees learning
(a) Understand design at different levels, incorporate different design perspectives and make changes to accommodate variety, complexity and
customisation
(b) Smoothen material handling between workstations and minimise transfer batch-related difficulties by improving the layout and containers
(c) Understand product and process designs and their interactions to get right settings
(d) Attempt making human resources trained, flexible, with learning and improving attitude focussing on prevention rather than detection
(e) Expand the envelope of improvement through SCARE with parallel processing. Here, S=Simplify, C=Combine, A=Add or Automate, R=Rearrange,
E=Eliminate. With ‘SCARE’, overall improvement envelope increases and facilitates VSM. This process improvement mechanism is developed by
principal author as ‘Dinesh Seth’s SCARE principle’(for details please refer, Seth and Rastogi 2009)

10. Generalised guidelines to facilitate lean in all the major benefits rather than using a relatively accurate but
complex production environments complicated academicians’ friendly approach.
Based on industry and academic experience, authors are
proposing broad guidelines and attempting to link lean
11. Limitations and future scope
principles with the difficulties/confusions experienced by
researchers and practitioners as shown in Table 11. This table This study has some limitations as it deals with a compa-
links (1) VSM principles as shown in left column (2) difficulties ny-specific case. A company may differ from another in terms
experienced at application stage as italic statements (3) of operations, variety, vendor dependence and other environ-
practical guidelines to smoothen VSM application. It is ment-based constraints. Another limitation may be due to selec-
expected that authors’ endeavour will facilitate lean and will tion of representative variant with one logical route of making
be useful for both communities. and compromising in terms of data gathering, micro-concepts
After sharing guidelines, authors would like to clarify that they and other complexities. The study focussed only on making
do not intend to lower the importance of ‘micro-concepts’ of VSM. aspect within the plant, and design iterations, component
Also, they do not wish to undermine the research work of earlier selections, bill of materials, routing, machine dedication rates
researchers and reported studies. They wish to put forward the and risks are not considered(McManus 2005; Tyagi et al. 2015).
practical difficulties experienced by researchers and practitioners No programming or simulation modelling was used for scenario
and wish to guide them meaningfully to facilitate lean through generation requirements to keep the application message sim-
VSM in complex environments. They believe that people are fed up ple and generic as possible, as we actually implemented these
with variants, mathematical intricacies and packaging of VSM with improvement measures.
a lot of prefixes and suffixes (as indicated by literature). Majority of It leaves scope for transportation, inventory wastes (Seth and
these variants offer unique solutions, invite complexities and con- Pandey 2009), set-ups, and information technology-based coordi-
fuse user regarding lean requirements. With some approximations, nation (Mohanty, Seth, and Mukadam 2007) wastes. The process
authors chose to remain simple, logical and straightforward. Many optimisation can also be attempted for other areas like the hot
times practitioners prefer slightly approximated approach retaining press and drying.
PRODUCTION PLANNING & CONTROL  19

An attempt can be made to implement at least one of the Nitin Seth is currently serving as an associate professor
micro-concepts say ‘takt time’ to achieve paced production of at Indian Institute of Foreign Trade New Delhi, India. He
has about 20 years of experience over Industry,
transformers in one piece flow (OPF) manner. In addition to this,
Teaching, Consulting and International Development
some possibilities exist to apply pull systems for supplies and Sector. He has handled Consulting, in the area of
analysing the simplification of planning and scheduling mecha- Supply Chain Management, Operations Management,
nisms. It is partially attempted and it appears as one of the limita- and Productivity & TQM and has considerable
tions. Similarly, for other industrial applications, VSM and Taguchi experience in leading SCM team for Business success.
He has over 40 publications in International and
method combination can also be selectively used to support lean
National Journals of repute. His current focus areas are: Sustainable
sigma framework-based improvements (Vinodh, Kumar, and Business and Supply Chain Optimizations, Training and Facilitation,
Vimal 2014; Lande, Shrivastava, and Seth 2016). In this manner, Service supply chains, Green manufacturing and services and workshop
VSM and Six Sigma can support each other. and Productivity Improvement.
Similarly, green and cleaner production considerations Pratik Dhariwal is currently associated with UTC
(Rehman, Seth, and Shrivastava 2016) with various risks, design Climate, Controls and Security, India as Quality and
challenges and vendor developments can also be brought Operational Excellence Manager. Prior to this role, he
was working as an Operations Leadership associate for
under the umbrella of VSM applications. More studies with these
an accelerated rotational program at the parent com-
challenges will add value of VSM and will help in extending the pany United Technologies Corporation and executed
body of knowledge. Authors believe that this study will open projects in the field of manufacturing, supply chain and
up new research fronts and will also motivate practitioners to Quality. He is a Gold Medalist graduate in Electrical
leverage lean-based improvements in complex production Engineering from S.G.S.I.T.S., Indore, India, and holds
post graduate diploma in Industrial Engineering (PGDIE) with specialisa-
environments.
tion in Operations and Supply Chain Management from National Institute
of Industrial Engineering (NITIE), Mumbai, India. His areas of interest
include operations and supply chain management in manufacturing and
Acknowledgement
service sectors.
The authors wish to express their sincerest thanks to the learned reviewers
and editor, for their support, constructive feedback, guidance and acknowl-
edge their valuable suggestions which helped in improving the quality of
submission and enriching application messages. The authors also wish to
ORCID
thank ABC management for providing necessary resources, committed sup- Dinesh Seth http://orcid.org/0000-0003-2207-0248
port and in ensuring availability of employees for discussions, clarifications
and suggestions.
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Appendix 1. Area processes breakup in hours and NVA, VA and Cycle time in days
Area1-winding/coiling area, works parallel to areas 2 and 5.

Sr. No. Area1 Process break-up (in hours) Men NVA VA Cycle time
1. HV winding Collect-9, Attach-3, Do- 94, Check-10, Detach-3, Unload-8, Shift-4 8* 1.54 {(9 + 3 + 10 + 3 + 8 + 4)/24} 3.9 (94/24) 5.44 (1.54+3.9)
LV winding
2. Cold pressing Lift-2, Attach-5, Do-11, Check-3, Detach-1, Unload-4, Shift-5 0.833 0.458 1.29
3. Heating Lift-4, Do-41, Check-1, Unload-3, Shift-3 4 0.46 1.7 2.16
4. Hot pressing Lift-2, Attach-5, Do- 18, Check-5, Detach-1, Unload-6, Shift-4 8* 0.96 0.75 1.71
5. Separate phase Attach-2, Do-12, Check-2, Detach-1, Unload-3, Shift-2 0.416 0.5 0.916
assembly

Area2-core making works parallel to areas1 and 5.

Sr. No. Area2 Process break-up Men NVA VA Cycle time


1. Core setup Collect-8, Attach-9, Lift-5 10* 0.91 0 0.91
2. Making of limb Set-14,Do-90,Check-13, Detach-6, Unload-12, Shift-7 2.16 3.75 5.91
3. Core insulation Lift-6, Set-8, Do-106, Check- 9, Unload-4, Shift-1 1.16 4.42 5.58
4. Top frame removal for coil assembly Lift-2, Attach-3, Do-22, Detach-6, Shift-16 2 1.12 0.91 2.03

Area3-Core-coil assembly operates after work completion in Areas1 and 2.

Sr. No. Area3 Process break-up Men NVA VA Cycle time


1. Core and coil assembly Collect-28, Set-33, Do-170, Check-25, Detach-4, Unload-12 12** 4.25 7.08 11.33
2. Connections Set-14, Do-4 0.58 0.16 0.74
3. Initial testing Set-6, Test-4, Detach-3, Shift-2 2 0.875 0.16 1.035
**Signifies workers from Areas1 and 2 can be employed in Area3.

Area 4: VPD for moisture removal.

Sr. No. Area4 Process break-up Men NVA VA Cycle time


1. Autoclave loading Load-6, Attach-3, Check-1, Detach-2, Unload-1 3 0.54 0 0.54
2. Connections and autoclave closure Collect-1, Attach-5, Do-1, Check-3, Close-1 8* 0.416 0.04 0.456
3. Heating phase (6 cycles) Do-42 (6 × 7) 8* 0 1.75 1.75
4. Pressure reduction phase (6 cycle) Do-24 (6 × 4) 0 1 1
5. Fine vacuum phase Do-75 0 3.125 3.125
6. Acceptance test Set-4, Do-1, Detach-1, Shift-8 2 0.54 0 0.54

Area5: Pre-tanking and pressing.

Sr. No. Area5 Process break-up Men NVA VA Cycle time


1. Tank preparation Collect-7, Set-6, Attach-3, Do-14, Check-5, Detach-3 8 1 0.58 1.58
2. OLTC installation Collect-4, Attach-3, Do- 4, Check-7, Shift-6 0.84 0.16 1
3. Phase tightening Set-4, Attach-2, Do-12, Check-3, Detach-2 0.458 0.5 0.958

Area 6: Tanking and oil filling.

Sr. No. Area6 Process break-up Men NVA VA Cycle time


1. Tanking and top cover Set-8, Attach-5, Do-15, Check-4, Detach-3, Shift-7 6 1.125 0.625 1.75
2. Vacuum and oil filling Set-14, Do-38, Check-3, Detach-7 8* 1 1.58 2.58
3. Servicing and Final Tanking Set-4, Attach-3, Do-7, Check-2, Detach-2, Shift-8 0.79 0.29 1.08
4. Vacuum and oil filling Set-14, Do-38, Check-3, Detach-7 1 1.58 2.58
5. Installation of bushing Set-4, Attach-2, Do-3, Check-1 0.29 0.125 0.415
6. Vacuum and oil filling Set-10, Do-16, Check-2, Detach-5 0.7 0.66 1.36
7. Hot oil circulation Set-3, Do-27, Check-2, Detach-1, Shift-2 8* 0.33 1.125 1.58
22  D. SETH ET AL.

Area7: Transformer testing.

Sr. No. Area7 Process break-up Men NVA VA Cycle time


1. Oil test Set-3, Test-0.16 10* 0.125 0 0.125
2. Ratio and polarity test Set-2, Test-0.25 0.08 0 0.08
3. No load current and short circuit test Set-3, Test-0.16 0.125 0 0.125
4. Insulation, winding resistance and Delta test Set-4, Test-0.33 0.16 0 0.16
5. Voltage test Set-5, Test-0 0.2 0 0.2
6. Measurement and voltage withstand test Set-4, Test-1.25 0.16 0.05 0.21
7. Lightening and switching impulse test Set-3, Test-0 10* 0.125 0 0.125
8. Temperature rise test Set-3, Test-0.16 0.125 0 0.125
9. OLTC test Set-2, Test-1.16 0.08 0 0.08

Area 8: painting and packaging area.

Sr. No. Area8 Process break-up Men NVA VA Cycle time


1. Dismantle Set-9, Attach-2, Do-10 8* 0.46 0.42 0.88
2. Painting Collect-3, Set-8, Do-5, Check-4, Shift-6 5 0.875 0.21 1.085
3. Loading Set-4, Attach-3, Do-7, Check-2 8* 0.375 0.3 0.675

*Signifies that manpower can be shared between areas.

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