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124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.

com

Value Stream Mapping


See the Flow

Copyright Manos/Alukal 2002

Value Stream Guide


Lean Guide Tony Manos is a Catalyst with expertise in Lean and quality. Trained and certified by the Department of Commerce, National Institute of Standards and Technology (NIST) in Lean principles and as a trainer in Lean courses. International speaker on Quality and Lean Enterprise topics.
Tony Manos Catalyst Profero, Inc. 124 W. Polk Street, Suite 101 Chicago, IL 60605-1770 USA Office: 312.294.9900 Cell: 312.718.0078 Fax: 312.294.9911 Email: anthony.manos@proferoinc.com Website: www.proferoinc.com
Copyright Manos/Alukal 2002

Agenda
Basics of Value Stream Mapping Product Family Current State Map Lean Basics Future State Map Plan
Copyright Manos/Alukal 2002

Section 1
Project Initiation Product Family Current State Map Case Study

Copyright Manos/Alukal 2002

Benefits of VSM

Helps you visualize more than the single process level Links the material and information flows Provides a common language Provides a blueprint for implementation More useful than quantitative tools Ties together lean concepts and techniques
Copyright Manos/Alukal 2002

Purpose of this Training


Introduce value stream mapping as a tool for Lean improvements Develop your ability to see the flow and more importantly where there is no flow

Copyright Manos/Alukal 2002

4 Steps for VSM


1. 2. 3. 4.

Determine the Product Family Draw your Current State Map Create the Future State Map Develop your plan to get there

Copyright Manos/Alukal 2002

VSM vs. Other Mapping


VSM is
Simple to learn, easy to understand A tool that everyone can use Helps you see Has a Value Stream Manager A process flow diagram Shop floor layout Based on old or unreliable information
Copyright Manos/Alukal 2002

VSM is not

VSM Team
Typically a cross-functional team of managers or supervisors Team size 7-10 people Have experienced VSM person lead the session Have to walk the flow Commit to the time requirement
Copyright Manos/Alukal 2002

Building Blocks of Lean


Continuous Improvement & Kaizen Blitz TPM JIT Cellular & Flow Pull System & Kanban Self Inspection Autonomation V S M

Poka-yoke

POUS Batch Size Reduction Quick Changeover Layout Standard Work Visual 5S Teams

Change Management
Copyright Manos/Alukal 2002

Scope of Value Streams


Entire Value Stream
Supplier Supplier Supplier Customer Customer Customer

Multiple Facilities Plant One Facility Good place to start Process Process Division Plant

HQ

Process

Copyright Manos/Alukal 2002

Scope Example

Copyright Manos/Alukal 2002

Focus on One Product Family


Determine product families by: Look for similar processing steps and equipment By process, not product

Copyright Manos/Alukal 2002

Product Family
Process Steps & Equipment
Drill Right Handle Left Handle Body Base Insert Switch Weld Stamp Paint Manual Assbly Fixture Assbly
Test

X X X X X

X X X

X X

X X X X X X

Products Products

X X
Copyright Manos/Alukal 2002

Product Family
Process Steps & Equipment
Drill Right Handle Left Handle Body Base Insert Switch Weld Stamp Paint Manual Assbly Fixture Assbly
Test

X X X X X

X X X

X X

X X X X X X

Products Products

X X
Copyright Manos/Alukal 2002

Product Family Guidelines


Common process steps 80% similar steps
4 out of 5, 8 out of 10

Takt time >> 25 seconds


unless high volume producer

Not too many products


drives takt time down
Copyright Manos/Alukal 2002

Current State Map


Understanding how the floor currently operates
Material and Information flows Draw using symbols Start with the door to door flow Have to walk the flow and get actuals No standard times Draw by hand, with pencil and eraser Foundation for the future state

Copyright Manos/Alukal 2002

Current State Icons


Customers Suppliers
Mon., Wed., Fri.

Process Box
Painting

Go See

ShipmentTruck Inventory Push System

Operator Data Box


C/T=1 sec Cycle Time C/O= 1 hr Changeover Rel.= 98% Reliability FPY = 95%

Copyright Manos/Alukal 2002

Quality

More Current State Icons


Hardcopy Electronic Cell Boat Person Plane
Copyright Manos/Alukal 2002

Train

Fun Current State Icons


? ? ?
Fax
o

&@#$%!

Copyright Manos/Alukal 2002

Class Exercise
Case Study Goodenuff, Inc. Produces toy fire engines Traditional Manufacturer Having problems lately with on-time delivery and customer satisfaction
Copyright Manos/Alukal 2002

Current State Map Setup


Tips Use 11 x 17 paper, landscape Use pencil and eraser Draw by hand Dont waste time putting it on a computer just to make it look nice (non-value added time) Practice, practice, practice Steps Customer Supplier Process Information flow Calculate process time and lead-time
Copyright Manos/Alukal 2002

Current State Map Setup


Supplier information Information Flow Area Customer information

Process Flow Area

Process Time and Lead-time Area


Copyright Manos/Alukal 2002

Title Block

Current State Map


Start with Customer Information first

Copyright Manos/Alukal 2002

Current State Map


Dewey, Cheatem & Howe

Copyright Manos/Alukal 2002

Current State Map


Dewey, Cheatem & Howe

Copyright Manos/Alukal 2002

Current State Map


Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


5,300 pcs/mo.

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


Add Supplier Information
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Process Flow

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Deburr

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Deburr

Assemble

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Deburr

Assemble

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Deburr

Assemble

C/T=1 sec

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Deburr

Assemble

C/T=1 sec C/O= 4 hrs

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Deburr

Assemble

C/T=1 sec C/O= 4 hrs Rel.= 98%


Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping

Spot Weld

Deburr

Assemble

C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%


Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%


Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%


Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%


Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%


Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% C/T= C/O= Rel.= FPY =
Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%
Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%


Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping
Shared

Spot Weld I 5,425 =1

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Inventory I Information 1,400

Deburr I =1 1,225

Assemble

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I

Deburr

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100%

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly

Information Flow

5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Order Entry PhlyeBiknight Weekly Dewey, Cheatem & Howe Daily Stamping I 2 Weeks
Shared 5,300 pcs/mo. 265 pcs/day

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Order Entry PhlyeBiknight Weekly MRP
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Order Entry PhlyeBiknight Weekly MRP Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Order Entry PhlyeBiknight Weekly MRP Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Order Entry PhlyeBiknight Weekly MRP Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Order Entry PhlyeBiknight Weekly MRP L/T= 2 days Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Order Entry PhlyeBiknight Weekly MRP L/T= 2 days P/T = 20 min Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Prod Ctrl PhlyeBiknight Weekly Order Entry MRP L/T= 2 days P/T = 20 min Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Prod Ctrl PhlyeBiknight Weekly MRP Order Entry MRP L/T= 2 days P/T = 20 min Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Prod Ctrl PhlyeBiknight Weekly MRP Order Entry MRP L/T= 2 days P/T = 20 min Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Prod Ctrl PhlyeBiknight Weekly MRP Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Monthly Weekly


5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Prod Ctrl PhlyeBiknight Weekly MRP Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Monthly Weekly


5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% I 1,400

Deburr I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 1,225

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

Copyright Manos/Alukal 2002

Current State Map


Prod Ctrl PhlyeBiknight Weekly MRP Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Copyright Manos/Alukal 2002

Current State Map


Prod Ctrl PhlyeBiknight Weekly MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Process Copyright Manos/Alukal 2002 time and Lead-time

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90%

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 1 sec

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 1 sec

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425

Assemble

=1 C/T=1 sec

FPY = 95% 10 days 1 sec

5,425 C/T=39 sec C/O= 4 hrs 265 C/O= 11 min Rel.= 98% = 20.47 Rel.= 99%
FPY = 90% 39 sec

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425

Assemble

=1 C/T=1 sec

FPY = 95% 10 days 1 sec

5,425 C/T=39 sec C/O= 4 hrs 265 C/O= 11 min Rel.= 98% = 20.47 Rel.= 99%
FPY = 90% 39 sec 20.5 days

Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 105 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly

Process 30/60/90 Prod Ctrl Forecast MRP


Weekly Weekly Schedule

time andEntry Order Lead-time


MRP L/T= 2 days P/T = 20 min Daily Deburr I I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Stamping I 2 Weeks
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

1,400

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


PhlyeBiknight Weekly 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400

Assemble I

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

Current State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400

Assemble I

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

Current State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP Monthly Weekly Dewey, Cheatem & Howe Daily Assemble I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

PhlyeBiknight Weekly

Information Flow
L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400

5,300 pcs/mo. 265 pcs/day

Spot Weld I 5,425 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP Monthly Weekly Dewey, Cheatem & Howe Daily Assemble I =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

PhlyeBiknight Weekly

Information Flow
L/T= 2 days P/T = 20 min Daily Deburr I =1 1,400

5,300 pcs/mo. 265 pcs/day

Spot Weld I 5,425 C/T=39 sec Rel.= 99% FPY = 90% 39 sec

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Process Flow C/O= 11 min


20.5 days

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Current State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400

Assemble I

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

Section 2 Lean Basics


Introduction History of Lean 8 Wastes of Lean Lean Building Blocks

Copyright Manos/Alukal 2002

History of Lean in Manufacturing


Henry Ford The longer a product is in manufacture and the more it is moved about, the higher its ultimate cost. - 1926 Taiichi Ohno of Toyota Father of the Toyota Production System (TPS). Identified the original 7 Deadly Wastes and made JIT and Autonomation Pillars of TPS. Lean in the United States Came back over from Japan in 1980s as JIT and Quality Circles. It failed for most companies because they did not apply it properly. Revitalized in the 1990s and called Lean. Mass Production
Copyright Manos/Alukal 2002

TPS

Lean (US)

Benefits of Lean Manufacturing


Real Results Helps in 0 50 Cost reduction Lead Time Cycle time reduction Reduction Waste minimization Productivity Elimination of nonIncrease value-added activities WIP Reduction Resulting in a more lean, competitive, Quality Improvement agile, and marketresponsive company Space
Utilization
Copyright Manos/Alukal 2002

100

Why the Emphasis on Lean Now?


Global economy Pressure from customers for price reduction Fast-paced technological changes (e.g. Internet auctions) Continued focus on quality, cost, delivery Higher and higher expectations of customers Quality standards, such as QS-9000 (or TS 16949), the new ISO 9000:2000 Holding on to Core Competencies and outsourcing the rest Market-driven pricing: Customers expect better performance at lower prices year after year
Copyright Manos/Alukal 2002

Definition of Lean
Lean has many definitions A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection
- Definition by the MEP Lean Network

Give the customer what they want, when they want it and dont waste anything.
Copyright Manos/Alukal 2002

Definition of Value Added


Waste is any activity that does not add value to the final product for the customer. Value-added is an activity that transforms or shapes raw material or information to meet customer requirements. Non-value added is an activity that takes time, resources or space, but does not add to the value of the product or service itself. Non-value-adding, but necessary does not add value to the product or service but is required (e.g., accounting, governmental regulations, etc.).
Copyright Manos/Alukal 2002

Lean = Eliminating Wastes


Value Added Non-Value Added Overproduction Excess Motion Excess Inventory Transportation Waiting Underutilized People Defects Non-Value Added Processing

Typically 95% of all lead time is non-value added


Copyright Manos/Alukal 2002

Core Concepts of Lean


Creativity before Capital A solution that is not-so-perfect implemented today, is better than a perfect solution that is late. Just do it. Inventory is not an asset, but a waste/cost. Typically, 95% of lead-time is not value added. Lean implementation using the Plan-Do-CheckAct methodology Continuous Improvement environment: both incremental and breakthrough. Lean is a never-ending philosophy.
Copyright Manos/Alukal 2002

8 Wastes of Lean
OMIT What U DO
Overproduction Motion Inventory Transportation Waiting Underutilized People Defects Over-processing
Copyright Manos/Alukal 2002

Overproduction
Making more-earlier-faster than the next process needs it.
Just in case logic Unbalanced workload Unleveled scheduling

Copyright Manos/Alukal 2002

Motion
Any movement of people or machines that does not add any value to the product or service Poor layout Inefficient Workplace Organization Lack of Standardization, inconsistent work methods People, Material and Machine Ineffectiveness
Copyright Manos/Alukal 2002

Inventory
Any supply in excess of one-piece flow Just in case logic Unbalanced workload Unleveled scheduling Unreliable suppliers Reward system

Copyright Manos/Alukal 2002

Transportation
Moving people, materials and information around the organization
Poor layout Inefficient flow Carrying large inventories

Copyright Manos/Alukal 2002

Waiting
Waiting for man, machine, materials, information etc.
Just in case logic Unbalanced workload Unleveled scheduling Unplanned downtime

Copyright Manos/Alukal 2002

Underutilized People
Not utilizing peoples experience, skills, knowledge, creativity.
Not utilizing Teams Organization structure Poor hiring practices Little investment in training

Copyright Manos/Alukal 2002

Defects
Rechecking or re-inspecting work
Not using Jidoka or Poka-yoke Lack of Standardization, inconsistent work methods Ineffective communication Little investment in training

Copyright Manos/Alukal 2002

Over-processing
Effort that adds no value to the product or service from the customers (internal or external) standpoint Just in case logic Inconsistent work methods Ineffective communication Redundant approvals Excessive information, extra copies
Copyright Manos/Alukal 2002

Building Blocks of Lean


Continuous Improvement & Kaizen Blitz TPM JIT Cellular & Flow Pull System & Kanban Self Inspection Autonomation V S M

Poka-yoke

POUS Batch Size Reduction Quick Changeover Layout Standard Work Visual 5S Teams

Change Management
Copyright Manos/Alukal 2002

Change Management
Lean is not a quick fix Lean is not for everyone Incremental and Breakthrough improvements Prepare and motivate people Employee involvement Identify Champions Reward and recognition What if we dont get better and our competition does?
Copyright Manos/Alukal 2002

Lean Teams
Cooperative instead of competitive Cross-trained Cross-functional Improvement teams are examples of creativity before capital Input and involvement valued by management Pooling of team skills, talents and knowledge Mutual support for each other
Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

5S Workplace Organization and Standardization


A place for everything and everything in its place

Copyright Manos/Alukal 2002

5 Words that begin with S


Japanese Seiri Seiton Seison Seiketsu Shitsuke Translation Organization Neatness Cleaning Standardization Discipline Conversion Sort Set in order Shine Standardize Sustain *Other Sorting Simplifying access Sweeping Standardize Selfdiscipline

* There are several other conversions


Copyright Manos/Alukal 2002

Sort
When in doubt, move it out
Move unneeded items out of the area Use the Red Tag Technique Use a Temporary Red Tag Holding Name____ Date___ Area Criteria for unneeded items Item _____________ Reason _________ 30-day Rule Keep only what you need in the area
Copyright Manos/Alukal 2002

Set in Order
A place for everything and everything in its place.
Make it easy for anyone to find 30-second Rule Make it obvious if an item is out of place Decide where to keep items, how many items to keep, how and when to replenish items Make it visual

Copyright Manos/Alukal 2002

Shine
Clean and Inspect
Get items to a like-new condition 10 Second Rule Must plan Shine assignments & supplies Perform as a Team Prevent dirt, grime, or contamination Repair as needed
Copyright Manos/Alukal 2002

Standardize
Create the rules and follow them
Determine how the first 3S conditions are met Use One-Point Lessons Maintain and monitor the conditions Use visual techniques
Copyright Manos/Alukal 2002

Sustain
Make 5S a habit
5S is not something additional, it is part of everyones daily job Supports discipline Train Communicate Support from Management Reward and recognition
Copyright Manos/Alukal 2002

5S in the Office
After

Before

Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Visual
Signs, lines, labels and color coding

Copyright Manos/Alukal 2002

Why Visual?
What you need to know Cockpit view Information sharing How do you know where to park when you drive your car to work? Does your boss have to tell you where to park?
Copyright Manos/Alukal 2002

Visual Examples

Andon Lights Display Panels Range Markings On Gauges


Copyright Manos/Alukal 2002

Shadow Boards

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Standard Work
Reduce task variability

Copyright Manos/Alukal 2002

Standard Work
Best Sequence of Operations Man, machine, materials, changeovers, etc. Identifies value added versus non-value added activities Reduce or eliminate NVA activities Convert internal time to external time Use for continuous improvement
Copyright Manos/Alukal 2002

Benefits of Standard Work


Consistent performance of tasks = better quality Track performance = actual versus standard for continuous improvement Easy to Train = reduced learning cycle time
Old Learning Curve Productivity New Learning Curve Productivity Time

Time

Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Layout
Streamlined Layout

Copyright Manos/Alukal 2002

Streamline Layout
Flow by product family the output of one process is the input for the next Created with input from employees Flexible, easy to change Short distances, small batches Visual, good communication Concentrate on reducing waste and non-value added activities like Motion & Transportation
A B C

Copyright Manos/Alukal 2002

Spaghetti Diagram Example


Tracked 4 People for 30 Minutes

Copyright Manos/Alukal 2002

Traditional versus Lean Factory


Traditional Factory Lean Factory Machining

Assembly Support

Assembly Machining

Support

Traditional Factory Capacity 125,000 Copyright Manos/Alukal Factory Size (Sq ft) 2002 500,000

Lean 120,000 170,000

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Value Stream Mapping


See the Flow

Copyright Manos/Alukal 2002

Four Steps for VSM


1. 2. 3. 4. Determine the product family Create current state map Create future state map Develop plan

Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Point-of-Use-Storage
Keep it where you use it

Copyright Manos/Alukal 2002

Point-Of-Use Storage
Raw material and WIP are stored at workstation where used, which reduces the inventory that can be carried Works best if vendor relationship permits frequent, on-time, small shipments (JIT) Simplifies physical inventory tracking, storage, and handling
Copyright Manos/Alukal 2002

POUS Workplace Zones


Items used most often (i.e., daily) should be kept within reach Items used less often (i.e., weekly) should be kept close-by Items used rarely (i.e., monthly) should be kept in the vicinity
Copyright Manos/Alukal 2002

Daily Weekly Monthly

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Batch Size Reduction


Make one, move one

Copyright Manos/Alukal 2002

Batch Size Reduction Example


1 minute per page, 10 pages, 3-steps Step 1 + 10 min
Batch Size = 10

2 + 10 min

Total 30 min Fastest 21 min 10 min

Copyright Manos/Alukal 2002

Batch Size Reduction Example


1 minute per page, 10 pages, 3-steps Step 1 + 10 min
Batch Size = 10

2 + 10 min + + 1 min

3 Total 30 min Fastest 21 min 10 min Total 12 min Fastest 3 min

1 min
Batch Size = 1

1 min

Copyright Manos/Alukal 2002

Information on Batch Size Reduction


The best batch size is one piece flow, or make one and move one! If one piece flow is not appropriate, reduce the batch sizes to the smallest size possible In some cases, one-piece might be one tray or pallet or container of parts Affected by quick changeover and workplace layout Responsive to demand, makes the organization more flexible
Copyright Manos/Alukal 2002

Batch Versus Flow Make-one, Move-one


Complete Order 35 30 25 20 15 10 5 0 Batch
Copyright Manos/Alukal 2002

First Piece

Defect Detection

Improvements
30 21 11 12 3 Flow

60%

86%

91%

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Quick Changeover
Changeovers in less than ten minutes

Copyright Manos/Alukal 2002

Quick Changeover (QCO)


Definition of changeover time: the time from the last good piece off the previous run to the next good production piece from this run SMED or Single Minute Exchange of Dies means quick changeover within a single digit in minutes (under 10 minutes)
Copyright Manos/Alukal 2002

Example of QCO Impact


2 hour C/O
9 8 7 6 5 4 3 2 1 0

A
Monday

B
Tuesday

C
Wednesday

D
Thursday

E
Friday

1 hour C/O
9 8 7 6 5 4 3 2 1 0

B A
Monday

D C
Tuesday

A E
Wednesday

C B
Thursday

E D
Friday

Copyright Manos/Alukal 2002

Example of QCO Impact


1/2 hour C/O
9 8 7 6 5 4 3 2 1 0
C E E B D D A A C C E E A B

Monday

Tuesday

Wednesday

Thursday

Friday

Impact Production C/O time No. of C/O

Before QCO 30 hours 10 hour 5

1 Hour C/O Hour C/O 30 hours 34.5 hours 10 hours 5.5 hours 10 11

Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Autonomation Self Inspection Poka-yoke


You cannot pass a bad part on to the next operation

Copyright Manos/Alukal 2002

Explanation
Autonomation (Jidoka) Requires operator intervention if an error occurs Self Inspection Operator is responsible for the quality of their work Poka yoke Error-proofing, prevents an error from occurring
Copyright Manos/Alukal 2002

Cannot Pass Bad Parts On


The combination of jidoka, poka yoke and self inspection will ensure that no defect will occur, or if a problem does happen, the process immediately shuts down and calls for human intervention to fix it.
Copyright Manos/Alukal 2002

Autonomation
A technique to ensure that only good parts are produced and passed on; this defect detection system manually (human automation) or automatically stops production if a problem occurs Will have a device to detect errors or abnormalities Will have a device to automatically shut down machine if a defect occurs
Copyright Manos/Alukal 2002

Autonomation Example
Sensors determine if an element is correctly in place The machine automatically stops if an element is missing This ensures that all parts (100%) have an element inserted

Sensors

Copyright Manos/Alukal 2002

Self Inspection
The operator is responsible to ensure a defective part is not passed to the next operation Training, tools, standards must be provided to the operator Use SPC or other mechanisms of feedback Design quality into the system versus detection
Copyright Manos/Alukal 2002

Poka-yoke
Error proof (mistake proof) takes away the possibility of human error The term Poka-yoke was made popular by Shigeo Shingo Fail-safe devices Low cost, highly reliable mechanisms Detects abnormal situations before they occur, or Once they occur, will stop the equipment from further production. The machine stoppage makes the problem visible.
Copyright Manos/Alukal 2002

Poka-yoke Example
The plastic tray is designed to have a notched corner When material is placed into the machine, the pins prevent it from being inserted incorrectly This ensures 100% correct orientation
Locator Pins

Notched corner

Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Total Productive Maintenance


Have the equipment available when you need it

Copyright Manos/Alukal 2002

Evolution of TPM

Breakdown Preventive Predictive Maintenance Maintenance Maintenance

TPM

Older times

Now

Copyright Manos/Alukal 2002

What is TPM?
A Lean maintenance strategy for maximizing equipment reliability and uptime Share responsibility for equipment reliability Eliminate equipment related waste: Unplanned downtime Planned downtime Changeovers Minor stoppage Speed reduction Poorer quality product Idled equipment
Copyright Manos/Alukal 2002

OEE Calculation
OEE = Availability x Performance x Quality
Breakdowns Setup Tool changes Idled time Not at rated speed Minor stoppages Defects Rework Start-ups

Examples

Number of Uptime Standard Number of Scheduled x Cycle Time x Pieces Produced x Good Pieces Total Number Production Uptime Produced Time
Copyright Manos/Alukal 2002

OEE Example
OEE Example for 4 linked machines
OEE 78% OEE 33% OEE 45% OEE 63% Overall OEE 7%

.78

.33

.45

.63

= .073

World Class OEE Measures Discrete Part Manufacturing = 85% Continuous Processing = 92%
Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Cellular and Flow Production


No WIP, No Waiting

Copyright Manos/Alukal 2002

Cellular/Flow
Definition: Linking and arrangement of manual and machine process steps into the most efficient combination to maximize valueadded content while minimizing waste.
Copyright Manos/Alukal 2002

Cellular/Flow
Value is added any time we physically change our product towards what the customer is buying. If we are not adding value, we are adding cost or waste. Flow Manufacturing drives the systematic elimination of waste. Will help in collapsing the lead time closer and closer to actual value-adding processing time. Cellular/Flow production results in no WIP, no Waiting.
Copyright Manos/Alukal 2002

Demand Change Example


Time Available = 27,000 sec Demand = 300 units Takt Time = 90 sec
Process 1 Process 2 C/T = 45s Process 3 C/T = 15s Process 4 C/T = 15s Process 5 C/T = 30s

In

C/T = 45s

C/T = 30s

Process 6

Out

Process 11 C/T = 30s

Process 10

Process 9

Process 8

Process 7 C/T = 30s

C/T = 30s Copyright Manos/Alukal 2002 C/T = 30s C/T = 60s

Demand Change Example


Time Available = 27,000 sec Demand = 450 units Takt Time = 60 sec
Process 1 Process 2 C/T = 45s Process 3 C/T = 15s Process 4 C/T = 15s Process 5 C/T = 30s

In

C/T = 45s

C/T = 30s

Process 6

Out

Process 11 C/T = 30s

Process 10

Process 9

Process 8

Process 7 C/T = 30s

C/T = 30s Copyright Manos/Alukal 2002 C/T = 30s C/T = 60s

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Pull System
Replenish at the Demand of the Customer

Copyright Manos/Alukal 2002

Push Vs. Pull


Push Based on Schedules from Forecasts Make product whether or not the next operation needs it
Push

Pull Based on Actual Customer Usage Only produce when product is consumed

Pull
Copyright Manos/Alukal 2002

Kanban
Kanban = Sign, signal Order point when to replenish the supermarket Order quantity the amount to replenish the supermarket

Copyright Manos/Alukal 2002

Order Point Order Quantity

Order Quantity =2
Process B Process A

In this example, Process A can produce faster than what Process B needs.

Order Point =4
Copyright Manos/Alukal 2002

6 Kanban Rules
You cannot send bad product to the next operation Only withdraw what is needed Only produce what is used Smooth the workload Standardize Keep improving
Copyright Manos/Alukal 2002

Supermarkets
When a supermarket shelf is full, you cant fill it any more When a supermarket shelf is at the order point, you fill it It is a controlled inventory Calculate the correct size and audit as needed

I need some Bs Make it Visual


A

C D

Copyright Manos/Alukal 2002

JIT
JIT= Just in time JIT is not just for your Suppliers, you must perfect JIT within your own operations JIT is the opposite of Overproduction Delivery just before the next operation needs it Dont make it earlier, faster, or before it is needed
Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Continuous Improvement
Continuous Improvement (C. I. or Kaizen, in Japanese), is an essential and never ending process

Copyright Manos/Alukal 2002

Sources for Continuous Improvement


Employee suggestions Corrective & Preventive actions Non-conformities, defects Customer complaints, returns Benchmarks The Lean wastes Variations from the standard Assessments, audits & competitive analyses Research & Development activities
Copyright Manos/Alukal 2002

Continuous Improvement & Continuous Learning


Management should have training given to employees in Lean and quality tools, problem solving and root cause analysis, the process model, concepts of Theory of Constraints, basic statistical techniques, graphical tools, etc. Understanding of Plan-Do-Check-Act and Standardize-Do-Check-Act (SDCA) will be beneficial
Copyright Manos/Alukal 2002

124 W. Polk Street, Suite 101 Chicago, Illinois 60605-2770 Tel 312-294-9900 Fax 312-294-9911 www.proferoinc.com

Kaizen Blitz
Breakthrough Strategies for Lasting Results

Copyright Manos/Alukal 2002

Kaizen Blitz KAI


Change

+ ZEN
For the better

KAIZEN
Continuous Improvement

BLITZ
Flash or Lightning
Kaizen Blitz is Service Marked by AME (Association for Manufacturing Excellence)
Copyright Manos/Alukal 2002

What is Kaizen Blitz?

Kaizen Blitz is a combination of the Japanese word Kaizen for continuous improvement and the German word Blitz for lightning It is a focused, typically week long project where a cross-functional team reviews a process, identifies and eliminates waste, thereby achieving dramatic & tangible BREAKTHROUGH (rather than incremental) improvement results Also called, Rapid Kaizen, Kaizen Event, etc.
Copyright Manos/Alukal 2002

What is Kaizen Blitz?


It is treated more as a Project and not as a Process For Kaizen Blitzes to succeed, Top Management commitment is critical Kaizen Blitzes are aligned with companys strategy Creativity before Capital is the motto
Copyright Manos/Alukal 2002

Kaizen Blitz Improvements


Make optimal Reduce space use of peoples Reduce knowledge, skills Inventory and experience Reduce overall Maintain or cost improve quality Reduce motion or transportation Implement fast strategies waste Cut lead-time
Copyright Manos/Alukal 2002

Section 3 Future State


Future State Concepts Case Study Future State

Copyright Manos/Alukal 2002

Current State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400

Assemble I

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

FUTURE STATE QUESTIONS


1. 2. 3. 4. 5. 6. 7.

8.

What is the Takt Time? Will we build to shipping or to a supermarket? Where can we use continuous flow? Where do we have to use supermarket pull system? At what single point in the production chain do we trigger production? How do we level the production mix at the pacemaker process? What increment of work will we release and take away at the pacemaker process? (Leveling the volume) What process improvements will be necessary? (e.g. uptime, changeover, training)
Copyright Manos/Alukal 2002

1. What is the Takt Time?


Takt means drumbeat Ability to meet customers demand Formula Time Available Takt Time = Demand

Copyright Manos/Alukal 2002

Takt Time Calculation


Time available Shift (8 hours) Breaks (2 x10) Lunch Meetings C/O Total Time Demand = = = 480 mins 20 mins 30 mins 5 mins 5 mins 420 mins = 25,200 sec 265 parts Takt Time = 95 sec/part
Copyright Manos/Alukal 2002

Problem with Goodenuff


Cycle time from our Current State Map = 105 sec Takt time is 95 sec They cannot produce to demand!
Late shipments Dissatisfied customers Bumping in the schedule
Copyright Manos/Alukal 2002

2. Build to Shipping or Build to Supermarket?


Ask the question Can we build it within the time the customer requires?
Customer Order Order Raw Materials Receive Raw Materials Complete Order

Copyright Manos/Alukal 2002

Build to Shipping
We can take the customer order Receive the raw materials Produce the product Ship the product All in less than the delivery date required by the customer
Copyright Manos/Alukal 2002

Build to Supermarket
We cannot take the customer order Receive the raw materials Produce the product Ship the product All in less than the delivery date required by the customer
Copyright Manos/Alukal 2002

Supermarkets
Supermarkets are controlled inventory Think of the supermarket shelf
When it is low, it is filled up When it is full, no more is produced Bread man story

Copyright Manos/Alukal 2002

3. Where can we Flow?


Where can we combine work? Where can we eliminate inventory? Can we make a Cell? Is the equipment dedicated or shared? Where can we eliminate waste?

Copyright Manos/Alukal 2002

4. Where do we use a Supermarket Pull System?


Are there monuments that cant be moved? Are there long process times or changeover times? Are materials sent to outside processing? Is there shared equipment? Kanban system
Copyright Manos/Alukal 2002

5. At what single point in the production chain do we trigger production?


In the Current State we had multiple schedules, weekly schedules, departmental schedules, etc. In the Future State we only want one schedule to drive production Where will the schedule start?

Copyright Manos/Alukal 2002

6. How do level production mix at the Pacemaker process?


Pacemaker = the process where the single schedule drives production Leveling or Heijunka Heijunka box or Level Loading symbol
OXOX

EPEI = Every Part, Every Interval


Copyright Manos/Alukal 2002

Linearity & Leveling for Volume


Production Customer Demand

Copyright Manos/Alukal 2002

Leveling for Mix - Poor


Weekly Demand
A B C D

Mon
A A A A A

Tue
A B B B B

Wed
C C C C C

Thur
C C C D D

Fri
D D D D D

=6 =4 =8 =7

What do you tell Customer D if they want parts on Monday? Are these jobs repetitive and boring? What happens if Customer A calls Monday afternoon and cancels the order?
Copyright Manos/Alukal 2002

Leveling for Mix - Better


Weekly Demand
A B C D

Mon
A B C C D

Tue
A B C D D

Wed
A B C C D

Thur
A B C C D

Fri
A A C D D

=6 =4 =8 =7

Requires Quick Changeover More flexible Better quality Less inventory

Copyright Manos/Alukal 2002

7. What increment of work will we release and take away at the Pacemaker process?

Pitch
Management intervention time frame
Know the pitch time increment Know when a problem occurs Respond quickly Element Paced withdrawal Material Handler time frame or milk run

Pack-out quantity

Timeframe Takt Seconds Pitch Minutes Shift Hours Customer Days

Copyright Manos/Alukal 2002

8. What process improvements need to be made?


Look at the Future State Map and determine where improvements have to be made from the Current State to get there These become the projects to work on They can be performed in Kaizen Blitz mode or as a longer project based on need
C/0 = 4 hours
Copyright Manos/Alukal 2002

What to look for


Any changeovers greater than 10 minutes Inventory Flow or Cells Reducing or eliminating waste or non-value added processes Long cycle time Low quality of First Pass Yield (FPY) Low reliability of equipment
Copyright Manos/Alukal 2002

Case Study Future State


Lets look at Goodenuff and answer the eight questions Dont forget the time frame 6 months, 12 months, 18 months or ? New symbols for Future State Maps

Copyright Manos/Alukal 2002

Future State Icons


Withdrawal Supermarket Kanban arriving in groups Kanban Path
C/O = 8 hrs
Copyright Manos/Alukal 2002

Production Kanban Withdrawal Kanban Batch Kanban

Kaizen Event

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Q1. What is the Takt Time? MRP PhlyeBiknight Weekly

20 min Order Entry Monthly Weekly


5,300 pcs/mo. 265 pcs/day

L/T= 2 days P/T = 20 min Daily Deburr I =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

Dewey, Cheatem & Howe Daily

Spot Weld I 5,425

Assemble I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 4.5 days 48 sec 40 days 105 sec

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

20.5 days

39 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days

Q1. What is the Takt Time? MRP PhlyeBiknight Weekly

20 min Order Entry Monthly Weekly


5,300 pcs/mo. 265 pcs/day

L/T= 2 days P/T = 20 min Daily Deburr

Dewey, Cheatem & Howe Daily

A. 95 seconds
Stamping I
Shared

Assemble I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

2 Weeks

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400

Q1. What is the Takt Time? MRP PhlyeBiknight Weekly

20 min Order Entry Monthly Weekly


5,300 pcs/mo. 265 pcs/day

L/T= 2 days P/T = 20 min Daily

Dewey, Cheatem & Howe Daily

A. 95 seconds
Stamping I
Shared

2 Weeks

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

Rel.= 80% FPY = 100% 17 sec

m to e bl uild o e Deburr pr t b Assemble im t o irs ann kt T . o F c Ia T s ec ed t e e W t1,225 5 ne he h 9 =1 t ill ve =2 e e w pC/T=48m ro Ti sec C/T=17 sec W im C/O= 5 min cle C/O= 0 min Cy
Rel.= 100% FPY = 98% 48 sec 4.5 days 40 days 105 sec

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Monthly Q2. Build to Shipping or Build to a Supermarket? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Daily Deburr I =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec 1,400 =1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days I 1,225 =2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

Spot Weld I 5,425

Assemble

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Monthly Q2. Build to Shipping or Build to a Supermarket? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

Daily A. Our customers require delivery in less time ofStamping our ordering raw materials and making Spot Weld Deburr Assemble Shared the product. I I I I

2 Weeks

Build to a Supermarket C/T=1 sec C/T=39 sec


C/O= 4 hrs Rel.= 98% FPY = 95% C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

=1

5,425

=1

1,400

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Monthly Q2. Build to Shipping or Build to a Supermarket? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

Daily A. Our customers require delivery in less time ofStamping our ordering raw materials and making Spot Weld Deburr Assemble Shared the product. I I I I

2 Weeks

Build to a Supermarket C/T=1 sec C/T=39 sec


C/O= 4 hrs Rel.= 98% FPY = 95% C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

=1

5,425

=1

1,400

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

Future State Map


2 days

Q.3 Where can we flow? PhlyeBiknight Weekly Weekly Schedule Stamping I 2 Weeks
Shared

30/60/90 Prod Ctrl Forecast MRP

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Weekly

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400

Assemble I

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

Future State Map


2 days

Q.3 Where can we flow? PhlyeBiknight Weekly Weekly Schedule Weekly

30/60/90 Prod Ctrl Forecast MRP

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Deburr Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

Dedicated equipment
Stamping I
Shared

Spot Weld I 5,425 =1 C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec I 1,400

Assemble I

2 Weeks

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

=1 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec

1,225

=2 C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

4.5 days

48 sec

40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

Create a Cell
SW/Deburr/Assemble

I C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec

=4 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble I C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec =4 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

Eliminates inventory and multiple schedules


Stamping I
Shared

2 Weeks

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

SW/Deburr/Assemble I C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec =4 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Monthly Q4. Where do we use a Supermarket Pull System? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble I C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec =4 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q4. Where do we use a Supermarket Pull System? Dewey, MRP PhlyeBiknight 20 min Order Entry L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble I C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec =4 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec Weekly
5,300 pcs/mo. 265 pcs/day

Weekly

Raw materials Weekly


Schedule Stamping I
Shared

Cheatem & Howe Daily

2 Weeks

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q4. Where do we use a Supermarket Pull System? Dewey, MRP PhlyeBiknight 20 min Order Entry L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble I C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec =4 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec Weekly
5,300 pcs/mo. 265 pcs/day

Weekly

Shared Weekly resources


Schedule Stamping

Cheatem & Howe Daily

I 2 Weeks

Shared

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping I 2 Weeks
Shared

Monthly Q4. Where do we use a Supermarket Pull System? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble I C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec =4 C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95%

10 days

1 sec

5 days Copyright Manos/Alukal 2002

40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping
Shared

Monthly Q4. Where do we use a Supermarket Pull System? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

5 days Copyright Manos/Alukal 2002

40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping
Shared

Monthly Q4. Where do we use a Supermarket Pull System? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

5 days Copyright Manos/Alukal 2002

40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping
Shared

Q5. Where do we trigger production? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec Weekly

20 min Order Entry

Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 4.5 days 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Weekly Schedule Stamping
Shared

Q5. Where do we trigger production? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec Weekly

20 min Order Entry

Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 4.5 days 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly 20 min Order Entry MRP L/T= 2 days P/T = 20 min Weekly Daily Stamping
Shared

PhlyeBiknight

Monthly Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

SW/Deburr/Assemble =4

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q6. How do we Level the production mix? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly Daily Stamping
Shared

20 min Order Entry

Weekly

5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

SW/Deburr/Assemble =4

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q6. How do we Level the production mix? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly Daily Stamping
Shared

20 min Order Entry

Weekly

5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

SW/Deburr/Assemble =4

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q6. How do we Level the production mix? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly Daily Stamping
Shared

20 min Order Entry

Weekly

5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

SW/Deburr/Assemble =4

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q6. How do we Level the production mix? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly Daily Stamping
Shared

20 min Order Entry

Weekly

5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

OXOX

SW/Deburr/Assemble =4

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q6. How do we Level the production mix? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly 20 min Order Entry Weekly
5,300 pcs/mo. 265 pcs/day

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

Daily SW/Deburr/Assemble =4

OXOX

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q7. What increment of work will we release? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

Daily SW/Deburr/Assemble =4

OXOX

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q7. What increment of work will we release? MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Dewey, Cheatem & Howe Daily

OXOX

A. Based on our customers requirements and SW/Deburr/Assemble Stamping the pack-out quantity Shared =4 12 boxes per case Pitch=1 12 boxes per case x 95 sec per unit = C/T=1 sec C/T=39 sec C/T=17 sec C/T=48 sec = 19 minutes
C/O= 4 hrs Rel.= 98% FPY = 95% 1 sec C/O= 11 min Rel.= 99% FPY = 90% 39 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 10 days 20.5 days 5 days Copyright Manos/Alukal 2002 4.5 days

Daily

OXOX

C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Monthly Q8. What process improvements are necessary? Dewey, MRP PhlyeBiknight L/T= 2 days P/T = 20 min Weekly Weekly
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

OXOX
Stamping
Shared

Daily SW/Deburr/Assemble =4

OXOX

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec 4.5 days C/T=48 sec C/O= 5 min Rel.= 100% FPY = 98% 48 sec 40 days 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly 20 min Order Entry MRP L/T= 2 days P/T = 20 min Weekly Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

Daily SW/Deburr/Assemble =4

OXOX

=1 C/T=1 sec C/O= 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% FPY = 90% 20.5 days 39 sec C/T=17 sec C/O= 0 min Rel.= 80% FPY = 100% 17 sec C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 40 days 4.5 days 48 sec 105 sec

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30/60/90 Prod Ctrl Forecast MRP Weekly Scheduling 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% 39 sec C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 17 sec C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 40 days 4.5 days 48 sec 105 sec Monthly Weekly
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

20.5 days

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Scheduling 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% 39 sec C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 17 sec C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 40 days 4.5 days 48 sec 105 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

20.5 days

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Monthly Lets recalculate the Cycle Time and Lead Time Dewey, MRP PhlyeBiknight Scheduling L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 10 days 1 sec C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% 39 sec C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 17 sec C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 40 days 4.5 days 48 sec 105 sec Daily
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

OXOX
Stamping
Shared

OXOX

20.5 days

5 days Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Monthly Lets recalculate the Cycle Time and Lead Time Dewey, MRP PhlyeBiknight Scheduling L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% Daily
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

OXOX
Stamping
Shared

OXOX

Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Monthly Lets recalculate the Cycle Time and Lead Time Dewey, MRP Phlye20 min Order Entry

As an estimate, how much 20 min P/T = Weekly OXOX inventory do we want to keep Daily in the Supermarkets?
Scheduling Stamping
Shared

Biknight

L/T= 2 days

Daily

5,300 pcs/mo. 265 pcs/day

Cheatem & Howe Daily

OXOX

SW/Deburr/Assemble =4

=1 C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98%

Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Monthly Lets recalculate the Cycle Time and Lead Time Dewey, MRP Phlye20 min Order Entry

As an estimate, how much 20 min P/T = Weekly OXOX inventory do we want to keep Daily in the Supermarkets?
Scheduling Stamping
Shared

Biknight

L/T= 2 days

Daily

5,300 pcs/mo. 265 pcs/day

Cheatem & Howe Daily

OXOX

SW/Deburr/Assemble =4

=1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95%

2 days

C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90%

C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100%

2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98%

Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Monthly Lets recalculate the Cycle Time and Lead Time Dewey, MRP PhlyeBiknight Scheduling L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days Daily
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Monthly Lets recalculate the Cycle Time and Lead Time Dewey, MRP PhlyeBiknight Scheduling L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days Daily
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Monthly Lets recalculate the Cycle Time and Lead Time Dewey, MRP PhlyeBiknight Scheduling L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Daily
5,300 pcs/mo. 265 pcs/day

20 min Order Entry

Cheatem & Howe Daily

Weekly

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Scheduling 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

OXOX
Stamping

OXOX

Lets look at support area improvements Shared

3 days

2 days

Copyright Manos/Alukal 2002

Lean is not just for the shop floor


How can we apply this to other areas? Requires creativity Must be open minded Continuous improvement philosophy Nothing is sacred, abandon the Thats the way weve always done it attitude
Copyright Manos/Alukal 2002

10 Future State Questions


1. What are our customers needs (internal and external)? Who are our customers? What do they want? How much variation in demand rate? When do they want it? What quality do they expect? Can we establish a pace or rhythm? 2. What steps add value and which ones are waste? Is this really needed or can it be improved or eliminated?
Copyright Manos/Alukal 2002

10 Future State Questions


3. What is the frequency and method of performance checks? How often do we track performance to stay on track? How do we make the measurements visual? 4. How can work flow with fewer interruptions? Are smaller batches possible? 5. How will work be controlled between interruptions? How do we prioritize the work? How do we minimize waiting?
Copyright Manos/Alukal 2002

10 Future State Questions


6. How do we balance the workload? Can we have more than one person perform the task? How can we level the volume or mix of work? 7. How do we prioritize the work? What system allows us to work on the most important items first (versus urgent)?

Copyright Manos/Alukal 2002

10 Future State Questions


8. What is the impact of activities, volume of workload and improvements? If we improve one area how do we ensure it doesnt adversely affect other areas? 9. What other supporting processes are required? Which other departments are needed to help implement a Future State? 10.What process improvements are necessary? What projects can be performed in Kaizen Blitz mode?
Copyright Manos/Alukal 2002

Future State Map


2 days 30 day Prod Ctrl Forecast MRP Weekly Scheduling 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

PhlyeBiknight Weekly

Dewey, Cheatem & Howe Daily

OXOX
Stamping

OXOX

Lets look at support area improvements Shared

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 2 days 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping

OXOX

Lets look at support area improvements Shared

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 2 days 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping

OXOX

Lets look at support area improvements Shared

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 1 hour 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 1 hour 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Measurable Improvement
Lead-time 40 days Cycle time 105 sec Inventory 10,700 pcs Kaizen events
Stamping changeover time Deburring reliability Spot weld quality Operators in cell cross-trained More flexibility Reduced lead-time and defects = happier customers
Copyright Manos/Alukal 2002

7 days 91 sec 1,855 pcs

Other benefits

What to look for


Any changeovers greater than 10 minutes Inventory Flow or Cells Reducing or eliminating waste or non-value added processes Long cycle time Low quality of First Pass Yield (FPY) Low reliability of equipment
Copyright Manos/Alukal 2002

Section 4 The Plan


Most critical part of Value Stream Mapping The ultimate benefit of VSM

Copyright Manos/Alukal 2002

Achieving the Future State


1. Break the Future State Map into a series of loops 2. Create a Value Stream Plan 3. Conduct a Value Stream Review

Copyright Manos/Alukal 2002

Value Stream Loops


Start with Pacemaker Loop
where the schedule triggers production

Break it into manageable sizes Too many loops may cause confusion

Copyright Manos/Alukal 2002

Value Stream Loops


Q. How do you eat an elephant? A. One bite at a time.

Copyright Manos/Alukal 2002

Number of Loops
Make it manageable Not too may Not too few Look for logical breaks Thumb rule
Probably somewhere between 3-7 loops

Remember the point is to make it easier for implementation


Copyright Manos/Alukal 2002

Future State Map


PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 1 hour 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 1 hour 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping

OXOX

Start with the Pacemaker Loop Shared

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 1 hour 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec

Loop 1
Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


Loop 2
PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 1 hour 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec

Loop 1
Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

Future State Map


Loop 2
PhlyeBiknight Weekly L/T = 2 days 30 day Prod Ctrl Forecast MRP Weekly 1 hour 20 min Order Entry MRP L/T= 2 days P/T = 20 min Daily SW/Deburr/Assemble =4 =1 3 days C/T=1 sec Stamping C/O= 4 hrs C/O = 4 hrs Rel.= 98% FPY = 95% 1 sec 2 days C/T=39 sec Loop 3 C/O= 11 min Rel.= 99% SW FPY FPY90% = = 90% C/T=17 sec C/O= 0 min Deburr Rel.= 80% Rel. = 80% FPY = 100% 90 sec 2 days C/T=48 sec C/O= 5 min C/T = Rel.= 100% 104 sec FPY = 98% 2 days 7 days 91 sec

Loop 1
Monthly Daily
5,300 pcs/mo. 265 pcs/day

Scheduling

Dewey, Cheatem & Howe Daily

OXOX
Stamping
Shared

OXOX

3 days

2 days

Copyright Manos/Alukal 2002

The Plan
People dont plan to fail, they fail to plan.

Copyright Manos/Alukal 2002

Creating the Future State Plan


Use good Change Management principles Use good project management principles The VSM Team should create the draft

Copyright Manos/Alukal 2002

Project Management
Define and plan the project activities Track the progress Manage schedules, resources, costs, scope and risk Report the project status Perform a final review, closeout and lessons learned Plan for resources such as Costs Quality Risks Communication Human resources Scope Time Procurement

Copyright Manos/Alukal 2002

Types of Actions
Project
Subproject
Tasks

Kaizen Blitz mode

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Plan Obstacles
Beware! People may not want to commit themselves or their resources Remember not to optimize one area while sub-optimizing another area Overall efficiency is the goal, not individual efficiencies Dont overload the front end of the project
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Future State Plan and Business Objectives


Tie your plan into your organization's strategy, objectives or goals This will help to ensure support Will make senior management aware of the improvements that are possible and the positive impact for the company Build buy-in
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Planning Matrix
Use a Planning Matrix, Gantt Chart or something similar to document the planning effort Show the steps, time table and responsibility

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Value Stream Planning Matrix


DATE FACILITY MGR VS MGR
PRODUCT FAMILY BUSINESS OBJECTIVE VS LOOP VS OBJECTIVE GOAL
(MEASUREABLE) PERSON IN CHARGE
RELATED IND./ DEPTS REVIEW SCHED

SIGNATURES

MONTHLY SCHEDULE

PLT MGR

ENG

MAINT

IMPROVE PROFITABILITY IN STEERING BRACKETS

CONTINUO US FLOW FROM WELD ASSMBLY STAMPING PULL STAMPING C/O PULL FOR COILS WITH DAILY DELIVERY

ZERO WIP

1 DAY INVENTORY BATCH SIZE

DAILY DELIVERY 1.5 DAYS OF COILS AT PRESS Copyright Manos/Alukal 2002

The Plan

Product Family/Busine ss Objective Improve profitability in Fire Truck line

VS Loop

VS Objective

GOAL (Measurable)

Time Frame

Leader

Other Depts.

Continuous flow from welding to assembly

Zero Wip

Copyright Manos/Alukal 2002

Prioritize the Plan


While developing the draft plan:
Determine the possible projects in the agreed to time-frame (6 months, 1 year, 18 months) Prioritize the projects
Base on impact or customer Concurrent projects and critical path projects

Remember, this is whats best for the Value Stream not a manager or department
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Value Stream Plan Review


The Value Stream Manager evaluates progress on each implementation item Use Arrow Analysis or other visual means

Copyright Manos/Alukal 2002

Communicate progress
The Value Stream Manager walks the floor to gather progress information Communicate the progress to the Work teams, Champions and Design teams Post results on the communication board
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Communication is Key
As part of good Change Management, we must communicate consistently and constantly Fear of the unknown produces anxiety about the change Use the Current State Map, Future State Map, Plan and Review to communicate Communicate, communicate, communicate!
Copyright Manos/Alukal 2002

Communication Example
Communication Board
VSM Manager VSM Team VSM Current State VSM Future State Value Stream Plan Value Stream Review
Value Stream Board Current Plan Future Team

Review Notes

Hold brief meetings at the VSM Board


Copyright Manos/Alukal 2002

Role of the Review


The Value Stream Manager is to remove roadblocks from implementation The Value Stream Manager can reallocate resources to keep the plan on track

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Additional Information About VSM


Beyond the basics

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Additional Information
The Value Stream Manager Examples of information flow in support areas Communication Value Stream Life Cycles

Copyright Manos/Alukal 2002

The Value Stream Manager


Appoint a Value Stream Manager VS Manager is responsible for achieving the Future State Has the ability to remove all obstacles to implementation Not the traditional departmental manager Has the vision to lead the Lean efforts
Copyright Manos/Alukal 2002

Value Stream Managers Role


The Value Stream Manager is high enough in the organization to ensure that the Future State is implemented They can cross the traditional functional boundaries to make things happen Top Management has to support the Value Stream Manager by providing resources and walking the talk
Copyright Manos/Alukal 2002

Information Flow
Support areas or functions may look at information differently than the shop floor Substitute Processing Time (P/T) for Cycle Time (C/T)
Ask the question If you had no interruptions, how long would it take you to finish this task?

Use Lead Time (L/T) for the amount of NVA time, waiting or batching of tasks
Ask How long before this paperwork moves to the next process step?
Copyright Manos/Alukal 2002

Other Data Box Information


Number of Shifts Number of People per Shift Energy used (leangreen) electricity, air, fluids oil, hydraulic Quantity, Pieces, Boxes, Pack-out, Pallets Quality, Scrap, Yield Overall Equipment Effectiveness - OEE Takt time Every Part, Every Interval EPEI Date Schedules

Copyright Manos/Alukal 2002

VSM Life Cycles


Current State 1 Future State 1 State Next Current State = Future State 1 Next Current Future State 2

Continuous Current State Future State Improvement


Copyright Manos/Alukal 2002

Multiple Value Stream Maps


Once you get one Product Family up and running look to the next VSM Start the next VSM when you feel you have the resources and the first VSM is on its way You will run multiple Value Stream Maps at the same time
Copyright Manos/Alukal 2002

Benefits of VSM

Helps you visualize more than the single process level Links the material and information flows Provides a common language Provides a blueprint for implementation More useful than quantitative tools Ties together lean concepts and techniques
Copyright Manos/Alukal 2002

Conclusions

Practice VSM every chance you get You must have a plan! Focus on achieving the Future State

The eraser is your best friend!


Copyright Manos/Alukal 2002

Questions?
Wrap-up Evaluations

Thank you
Copyright Manos/Alukal 2002

Contact Information
Tony Manos Catalyst Do not hesitate to contact me if you have Profero, Inc. any comments or 124 W. Polk Street, Suite 101 questions. Chicago, IL 60605-1770 I wish you great success! USA Office: 312.294.9900 Cell: 312.718.0078 Fax: 312.294.9911 Email: anthony.manos@proferoinc.com Website: www.proferoinc.com 2002 Copyright Manos/Alukal