Lean Manufacturing

Dr. Ravi Reosekar

BITS Pilani Associate Professor
Department of Mechanical Engineering
Pilani|Dubai|Goa|Hyderabad

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 BITS Pilani
Pilani|Dubai|Goa|Hyderabad

Lecture 7 -Value Stream Mapping,

Machine Cells
 What is Value?

A capability provided to a customer,

of the highest quality,
at the right time,
at an appropriate price,
as defined by the customer

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 What is Value?

"Value" is what the customer is buying

Always think first about the customer
–Who is the customer?
–What are they buying?
Describe value using the customers' words

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 What is a Value Stream ?

A value stream is an end-to-end business

process which delivers a product or service
to a customer.
• It includes both value-added and non
value-added actions.
• Planning tool to optimize results and
eliminating waste

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 What is Material Flow ?
The way in which material moves in the plant
• Should be smooth, without interruption
• It should take into account how material enters
the system, moves through it and exits the
system
• Depends on the layout, material handling, type
of manufacturing

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 Why is Material Flow Important ?

 Shorter throughput times

 Easier to predict customer promise dates
 Problems surface faster
 Better quality
 Ease of supervision
 Ease of scheduling
 Ease of taking corrective action, when problems arise

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 Value Stream

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 Value Stream
A Value Stream includes all elements (both value added
and non-value added) that occur to a given product
from its inception through delivery to the customer.

Requirements Design Raw Materials Parts Manufacturing

Assembly Plants Distribution Customer

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Value Stream Mapping
Value Stream Mapping (VSM) is a hands-on process to
create a graphical representation of the process,
material and information flows within a value stream.

Customer
Weekly Order Rolling 6-wk For X pcs / month
ecast
Std Pack Qty
Steel Supplier 6-wk forecast
PC & L # Shifts
Level Box
DA1
Daily DA2
DA3
6 x / Day

Stamping Welding Assembly Finished Goods

Layout

3 Shifts 3 Shifts 3 Shifts # Material Handlers

TAKT Time TAKT Time TAKT Time Max Size
CT = CT = CT = 2 Shifts
C/O Time = C/O Time = C/O Time = 0 Overtime
DT = DT = DT =
Scrap = Scrap / Rework= Scrap / Rework =
WIP = Small Lot # Operators
WIP = WIP =

Inv .Time ? days ? days ? days ? days TPc /t = ?

Proc .Time ? days ? days ? days

Material, Information and Process Flows

with total Product Cycle Time
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Objectives of Value Stream Mapping
 Provide the means to see the material, process and
information flows.
 An invaluable tool that helps us grasp our current
condition and identify improvement opportunities
 Support the prioritization of continuous improvement
activities at the value stream
 Provide the basis for facility layout
 Finally, it is helpful to eliminate waste
 VSM is a language comprising the symbols

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Value stream mapping (VSM) process symbols

Symbol Title Symbol Title

Supplier or Customer Dedicated Process

Shared Process Data Box

Work Cell
Value stream mapping (VSM) material symbols

Symbol Title Symbol Title

Inventory
Shipments

Material Pull Push Arrow

Supermarket Safety Stock

FIFO Lane External Shipment

(Receiving or Shipping)
Value stream mapping (VSM) information
symbols
Symbol Title Symbol Title

Verbal Information MRP/ERP

Sequenced Pull Production Control

Electronic Go See Scheduling

Information
Manual Information Load Leveling

Signal Kanban Kanban Post

Production Kanban Withdrawal Kanban

Value stream mapping (VSM) general
symbols

Symbol Title Symbol Title

Kaizen Burst Human Operator

Other Information Timeline

Steps in VSM

Identification of Product Family

Current State map
Data collection and analysis
Future State map
Implementation

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 Current State Map
The Steps

Step 1: Select a Product Family

Step 2: Form a Team
Step 3: Understand Customer Demand
Step 4: Map the Process Flow
Step 5: Map the Material Flow
Step 6: Map the Information Flow
Step 7: Calculate Total Product Cycle Time
Step 8: Detail Off-Line Activities

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 Current State Map
Step 1: Select a Value Stream (Product Family)

 Define value stream (product family)

– Identify value stream from the customer end
– Product should pass through similar processes and common
equipment

It is important to define the value stream from the perspective of the

customer.
The customer can be an outside customer, another plant or another
department within the plant.
Typically we look at a value stream within a plant.

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 Current State
Step 2: Form a Team

 Select a cross-functional team

 Select team members Sensei
Industrial
Engineering

who are familiar with

the product
Product
Manufacturing Engineering
Cross Functional
Team

 Ensure that team Maintenance

PC & L
members are trained in the
use of VSM Leadership

 Designate a champion (typically a line manager)

THIS IS CRITICAL
 Select a cross functional team:
 Stress the importance of team members that cross
different functions - diversity is important
 Plant leadership support is crucial
 Select Team members
 You need people with knowledge of the product
 Team members should be trained in VSM
 Designate a champion
 You have to identify an owner for this value stream
 This owner must be in a position to affect change

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 Current State Map
Step 3: Understand Customer Demand

It helps to start with the customer demand.

The items listed on this slide are places where you can get
customer data. Customer

Demand/month:

 Plan for Every Part Part A =

Part B =
Part C =
# of shifts =

 ProductionControl
(monthly/weekly forecasts)
 Production history (day-to-day, month-to-month
variation)
 Sales (product changes, new business, etc.)
 Current State Map
Step 4: Map the Process Flow

Lay in the process steps from left to right along the lower
half of the page.
Customer

Demand/month:
Part A =
Part B =
Part C =
# of shifts =
Stamping Welding Assembly Shipping

Takt = Takt = Takt = Inventory

C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =

Changeover
Downtime FTQ
 Current State Map
Step 5: Map the Material Flow

Customer

Supplier
Demand/month:
Part A =
Part B =
Part C =
# of shifts =

2 x/ 2 x/
week day

Shipping
Stamping Welding Assembly

I I I
1,200 pcs 1,500 pcs 800 pcs
Takt = Takt = Takt = I
500 pcs
Inventory
C.T. = C.T. = C.T. = Part A =
D.T. = D.T. = 20% D.T. = Part B =
FTQ = FTQ = FTQ = 90% Part C =
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = WIP = WIP =

Changeover Downtime FTQ

Supplier
Current State Map Customer

Step 6: Map the Information

Part A =Flow
Demand/month:
705 pcs.

Part B = 600 pcs.

PC & L Part C = 1650 pcs.
# of shifts =
6 week rolling forecast
Weekly Order
6 week rolling forecast Weekly Order

Daily Ship Schedule

2 x/
week 2 x/
Weekly Build Schedule day

Stamping Welding Assembly Shipping

I
1,200 pcs
I
1,500 pcs
I
800 pcs
I
500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

Changeover Downtime FTQ

Supplier
Demand/month:
Part A = 705 pcs.
Weekly Build Schedule
Part B = 600 pcs.
Part C = 1650 pcs.
# of shifts =

Step 7: Calculate Total Product Cycle Time

2 x/ 2 x/
week day

Stamping Welding Assembly Shipping

I
1,200 pcs
I1,500 pcs I
800 pcs I500 pcs
Takt = Takt = Takt = Inventory
C.T. = C.T. = C.T. = Part A = 750 pcs
D.T. = D.T. = 20% D.T. = Part B = 600 pcs
FTQ = FTQ = FTQ = 90% Part C = 1650 pcs
C/O Time = 4 hrs. C/O Time = C/O Time = # of shifts =
Lot Size = Lot Size = Lot Size =
# of Shifts # of Shifts # of Shifts
WIP = 25 pcs. WIP = 60 pcs. WIP = 550 pcs.

Changeover Downtime FTQ

.4 days .5 days .27 days .17 days

TPc/t = 2.5 days
.008 days .02 days .18 days 1.0 days
 Current State Map
Step 8: Detail Off-Line Activities

 Show on the map using general icons

 Detail
on another sheet using either reference
VSM and/or process flow-charting

Press Room

Fork Truck

Die Bench
Die Room Die Room
Receiving Shipping
(Remove from
Schedule
I I Board)
Dies Dies
12 shifts 2 shifts

Schedule Board
(Forecast)

This is an optional step.

Data Collection
 Data Collection
Attribute Data to Collect

 Shipping/Receiving  Work-in-process
schedules inventory
 Pack sizes at each  Overtime per week
process

 Demand rates by process  Process cycle times

(Takt Time)
 Number of product variations at
 Working hours and breaks each step

 Scrap  Batch (lot) sizes

 Inventory Points (location
& size)  Changeover times
 Rework
 How Operations are  Changeover
scheduled  Downtime
frequencies
 Data Collection
Data Box

Tailor the
data box for
your plant’s
ox
needs.
a B
at The data box
D should be
open ended
to allow for
additional
attributes.
 Data Collection
What is Takt Time?

Takt Time is the rate at which production

should run to meet customer demand
The idea is to synchronize the pace of
production to the pace of sales.
Your Operating
Time per Shift
CustomerRequirementper Shift

27,000 sec = 59 sec 59 sec.

460pieces
59 sec.

59 sec.
 Data Collection
How to Calculate Takt Time?

1. Determine Total Customer Requirements for the

affected process.
2. Determine the Scheduled Runtime (S.R.) for the
affected process:
Scheduled Runtime = (Effective Minutes) - (Planned Downtime)
Effective Minutes = (minutes per shift) - (approved breaks)
Planned Downtime is the amount of time an operation is down
for scheduled reasons.

3. Calculate Takt Time:

Scheduled Runtime
Takt Time =
Total Customer Requirements
 Data Collection
Identify Opportunities for Improvement

?
 Design Future State - Purpose
Purpose

 Define how the

plant/process will
operate in the future

 Serve as the blueprint

for implementation

Without it, the Current State Map is

nothing more than wallpaper !
 Future State Map
The Steps

Step 1: Validate Customer Demand

Step 2: Draw the Future State Process Flow
Step 3: Map the Future State Material Flow
Step 4: Map the Future State Information Flow
Step 5: Calculate Total Product Cycle Time
Step 6:
Detail Off-Line Activities
Step 7: Outline a Plan
 Future State Map
Step7: Outline a Plan
Original Condition Future Condition
Inj: 2 MSS MSS
I Molding

Change I
Over

2
Sender
Ass’y
2 I 2 Level
I Fuel Pump No Flow 2
Ass’y I Inj: Sender ABABA. . .
Molding Ass’y
Attendance Labels Staging
by Truck

10 Tank 4 Ass’y
Stamping I Ass’y Plants 10
Tank 4 Ass’y
Stamping Ass’y card Plants
No Flow
by
Change
Over 12 card
Uptime
7
(Pitch = 14 Units)

Cycle-Time Driven. Batches. Perform to TAKT & Pitch. Zone Maintenance & Fast Response

Produce to Order

Load Leveling and Pull

METRICS Activity
1999 2000
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Item Current Target
Establish TAKT & Flow in Tank Ass'y
Total product cycle time
Stamping Changeover Reduction
Parts / Person Hour Reduce Stamping Buffer
Delivery Performance Move Ass'y to Plant 10
Establish TAKT & Flow in Sender Ass'y
Inventory (days)
Pull To Sender Ass'y
Overtime
Uptime Training
Case Study
Case study- VSM
Draw value stream map for St. Clair Pallet, a commercial
pallet manufacturer and suggest improvements.
 Information about various processes, material
required , information flow and useful information is
given.
 Using the information given, current state map is
drawn as given in the next slide.

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current-state map for St. Clair Pallet, a commercial pallet manufacturer
 Observations
 Currently, the production manager schedules production
manually at each process based on perceived daily priorities.
 There are frequent changes to the schedule (shown by the
dotted lines). Lead times ranged from twelve to fifteen days,
and 10 percent of orders are late.
 Workers are paid a piecework rate and work as fast as they
can. Cycle times at assembly are unstable and range from 80
to 120 seconds.
 Inventories are high in the wood yard and between each
process. Changeover time at the multi-saw is thirty minutes
and at the notching machine is 20 minutes.
 kaizen opportunities
 Implement a pull system using assembly as the pacemaker. Pull
items from a finished goods store containing a day's worth of
inventory. The store will accommodate emergency orders,
which often disrupt the operation. Our takt time will be 68
seconds.
 Combine the multi-saw and notching machine in a cell with
two operators.
 Implement a store between assembly and sawing & notching
and another in the wood yard. Use kanbans to replenish items
withdrawn from each store.
 Assign daily scheduling to the production supervisor, which
will free up the manager's time for kaizen.
 kaizen opportunities
Many kaizen activities will be required to support the desired future state, including:

 Stabilize the assembly process. Rebalance the work

so that two instead of four operators can do it.
Reduce assembly changeover times to less than five
minutes.
 Rebalance the saw and notching machine work so
two operators can do it in a cycle time of thirty-five
seconds. Reduce changeover times to less than five
minutes for each machine.
 Apply visual management and 5S at each of the
stores.
Future State Map
Benefits
 Lead time reduced to three days.
 Wood yard inventory reduced to ten days (from sixty
days).
 Work-in-process inventory reduced to two days (from
eight days).
 Finished goods inventory reduced to one day (from
five days).
 Productivity improved by 43 percent (manpower
reduced from seven to four with no loss of output).
Operators released thereby will be reassigned.

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 Value Stream Thinking
 Value stream thinking entails seeing the combination of
processes required to bring the product or service to the
customer—rather than process-specific departments.
 In its absence, departments might optimize measures in
their zone without always considering the impact on
other areas, or on the business as a whole. Such "point
optimization" is often seen where kaizens aren't
coordinated for a larger purpose.
 We have to deepen our understanding of lean
production and stabilize our processes as a value
stream
44 BITS Pilani, Hyderabad Campus
Machine Cells

 A group of machines used to complete a sequence of

operations on a family of parts
 By restricting the movement of each part to a small
area, material handling and control is easier,
inventories are low and therefore lead times short.
This gives the machine cells the efficiency of product
layouts

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Machine Cells
 Unlike product layouts, group layouts/machine cells
have the ability to accommodate a family of parts
 Due to this, when product mix and volumes change,
the machine cell is able to absorb the fluctuation. This
makes the group layout/machine cell flexible like the
process layouts
 Machine cells are easy to supervise and schedule
 WIP and lead times tend to be low

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Machine Cells
 Machines are arranged typically in a U-shaped layout
 Each operator is assigned multiple machines, not of the
same type
 Input and output stations tend to be near each other
 Components are delivered to the first station and
moved with the product

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Machine Cells

 Generally the machining capacity is more than required.

 As production volume changes, adjustment is made to the
staffing of the machine cell. This makes the machine cells
flexible in terms of product mix and volumes
 By making a group of workers responsible for the
complete production of a part, there is a greater sense of
satisfaction for the workers
 Due to better communication within the cell, if there is a
quality problem, it is detected quickly and adjustments
made to prevent further defectives from being produced

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Machine Cells

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Machine Cells

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Machine Cell Design
 Takt time determines the pace at which the cell
should complete one piece

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Takt Time
 The first step is to calculate the takt time for
the cell
 This is done by dividing the total working
time in a day/shift by the sum of the
daily/weekly requirements for all the parts
assigned to the cell

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Cell Capacity
 The next step is to determine whether there is
adequate equipment capacity in the cell
 the total equipment times required for each
equipment type is calculated and compared with the
time available

Total process time

 No. of machines = -------------------------
Available time x Uptime

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 Capacity Calculations

Total requirements = 97000 secs per day

Total time available = 460*60 = 27600
Total number of machines required = 97000/27600*0.95 = 3.7 = 4 machines

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Thank you
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