LEAN

MANUFACTURING
Module-2 Continuation
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POM04
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Value Stream Mapping
Steps
Select one value stream - a product family
Walk the physical flow of material no data collection
Walk the flow again, collecting data
Draw the Current State Map
Identify opportunities to eliminate waste and create flow
Draw the Future State Map
Generate a Value Stream Plan
Start making the improvements
Conduct Value Stream Reviews
Repeat the cycle
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Value Stream Mapping
Value Stream Plan
The future state Map tells you where you want to go. Now you
need to create one more sheet: a yearly value stream plan which
shows
Exactly what you plan to do and when, step-by-step.

Measurable goals.

Clear check points with real deadlines and named
reviewers(s).
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Value Stream Mapping
Value Stream Plan
The first question that usually arises in planning implementation
is In what order should we implement? Or Where do we start
Solution: You answer these questions by considering the loops in
your future value stream.
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Value Stream Mapping

One effective strategy is to begin implementation in your
downstream pacemaker loop and transition upstream as
necessary.

The pacemaker loop , being closest to the final customer acts
as the internal customer and controls demand in the
upstream loops.As the flow in the pacemaker process
becomes lean and consistent it will reveal upstream problems
that need attention.
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Key Concepts of Lean
The cost reduction principle

The seven deadly wastes

Two pillars of TPS

The 5S system

Visual work place

Three stages of lean application
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Key Concepts of Lean
The cost reduction
principle

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Traditional thinking dictates that you set your sale price by calculating
your cost and adding on a margin of profit
Cost+ profit = price
Traditional thinking
Profi
t
Cost
Pric
e
Pric
e
Key Concepts of Lean
The cost reduction
principle

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The market is so competitive that there is always some one ready to
take your place. The customer can often set the price and you dont
have the luxury of adding a margin of profit.
price-cost = profit
Lean thinking
Under these circumstances, the only way to remain profitable is to
eliminate waste from your value stream, thereby reducing costs . This is
cost reduction principle
Pric
e
Pric
e
Profit
Cost
Key Concepts of Lean
The Seven Deadly
Wastes

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Overproduction

Waiting

Transporting

Processing

Inventory

Movement(Motion)

Defects
Key Concepts of Lean
TWO PILLARS

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Just in Time(JIT) production

Jidokha (autonomation)

Key Concepts of Lean
Visual Work Place

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A visual workplace or visual factory begins with one simple
premise: One picture is worth a thousand words.

For that reason, the essence of the visual factory is just-in-
time information.

On the shop floor, the goal of a visual factory is to give people
control over the work place.


Key Concepts of Lean
The 5s System A key Prerequisite for
Lean

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The 5 s system is designed for organization and standardization of any
work place, including offices . It is a prerequisite to the implementation
of any other improvement method
Key Concepts of Lean
The 5S System consists of five activities

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Sort(Seiri) Keeping only what you need and remove unnecessary
items

Set in Order(Seiton) arranging necessary items for easy and efficient
access and keep them that way

Shine(Seisou)-clean everything , keeping it clean and using cleaning as
a way to ensure that your area and equipment is maintained as it should
be.

Standardize(Seiketsu) creating guidelines for keeping the area
organized , orderly ,clean and making the standards visual and obvious.

Sustain(Shisukhe)-educating and communicating to ensure that
everyone follows the 5S standards.
Three Stages of lean application
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Stages
Customer demand Stage

Flow stage

Leveling Stage
Three Stages of lean application
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Understand Customer Ordering Patterns
Sales forecasts

Previous three months actual production

Current production forecasts

Long-term agreements

Interviews with customers
There are many sources for this information including:
Three Stages of lean application
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Demand Stages
Takt time

Pitch

Takt image

Buffer and Safety inventories

Finished-goods supermarket
The various tools and concepts for determining and meeting
demand schedule include
Three Stages of lean application
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Demand Stages
Takt is a German word for a musical beat or rhythm.

Takt time keeps the beat for customer demand

Takt time is the rate at which a company must produce to satisfy
customer demand

Producing to takt means synchronizing the pace of production with
the pace of sales.

Takt time
Three Stages of lean application
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Demand Stages
Takt time = Available production time
Total daily quantity required
Note: Calculate takt time in seconds for high-volume value streams.
Three Stages of lean application
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Demand Stages
Pitch
Pitch = takt time pack-out quantity
Pitch is the amount of time -based on takt required for an upstream
operation to release a predetermined pack-out quantity of work in
process(WIP).
Note: high-volume , low-product mix lines ,pitch will normally be
between 12 and 30 minutes depending on customer requirements
and any internal constraints.
Three Stages of lean application
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Demand Stages
Takt Image: Visualize one-Piece Flow
Takt image is the vision of an ideal state in which you have eliminated
waste and improved the performance of the value stream to the point
that you have achieved one-piece flow based on Takt time
Three Stages of lean application
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Buffer Inventory/Stock
Buffers Stock is used when customer demand suddenly
increases and your production is not capable of meeting a
lower(faster) takt time.
Safety Inventory/Stock
Safety Stock protects us from internal problems(labor power issues,
quality problems, equipment reliability ,power outages)
As the customer demand becomes more stable and you improve the
reliability of your operations and processes, you should periodically review
inventories and minimize or eliminate them if possible
Three Stages of lean application
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Finished-Goods Supermarket
A system used in the shipping part of the value stream to store a
set level of finished goods and replenish them as they are pulled
to fulfill customer orders. Such a system is used when it is not
possible to establish pure, continuous flow.