LEAN

MANUFACTURING
Module-2 Continuation
1
POM04
Selecting Value Streams/Product families for
Improvement
2
There are two reliable methods you can employ to help you
decide which value stream(s)/product family for improvement .
Product -quantity(PQ) Analysis
Product-routing (PR) analysis
PQ Analysis
PQ Analysis Steps


3
1) Obtain three to six months worth of data on production
output

2) Enter your products by quantity (from greatest to least) on
a PQ analysis

3) Create a Pareto chart using the data from the PQ analysis
sheet

4) Analyze the product mix
PQ Analysis
PQ Analysis List


4
#
Item
(part #) Quantity
Cumulative
Quantity % Cumulative %
1 W 29,000 29,000 41 41
2 R 26,500 55,500 38 79
3 Y 3000 58,500 4 83
4 I 3000 61,500 4 87
5 P 2000 63,500 3 90
6 A 2000 65,500 3 93
7 D 1500 67,000 2 95
8 G 1500 68,500 2 97
9 J 1000 69,500 1 98
10 L 1000 70,500 1 100
PQ-Analysis List
Performed by: D.Arroyo & D.Herrera Date:11/16
PQ Analysis
PARETO CHART


5
High-volume, low-variety production :
20 % 0f product types account for about 80 percent of total quantity
Here we have a high-volume ,low-variety product mix on which we should focus
value stream efforts.ie the targeted value stream would be the process or
processes that make products W and R
PR Analysis
PR Analysis Steps

6
1) Start by showing the process sequence-the sequence of
operations


2) Next group together the products that have similar process
routes



3) Analyze the mix of process routes
PR Analysis
Sequence of operations by volume

7
Volume Product
20000 W rc c m d od g i
12000 R rc c d od i
10000 Y c m d i
3600 I rc c m d od g i
3300 P c d g i
3100 A rc c m od i
2600 D rc c m d od i
2300 G rc c m d od i
2100 J c m d
1000 L rc c m d od i
Sequenced by Volume
rc = rough cut . c = cut . d = drill . od = outside diameter . g= gauge . i =
inspect
PR Analysis
8
Products with same process route(ie value stream) Total volume required
W & I 23,600
Y & J 12,100
D,G& L 5,900
Among three value streams considered D,G and L which represent
lowest-volume product mix. So we must focus on improving value
stream dedicated to producing D,G & L .
PR Analysis
9
Products with same process route(ie value stream) Total volume required
W & I 23,600
Y & J 12,100
D,G& L 5,900
Among three value streams considered D,G and L which represent
lowest-volume product mix. So we must focus on improving value
stream dedicated to producing D,G & L .