Support Systems Value Stream Mapping

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Support Systems Value Stream Mapping
Beau Keyte, Branson, Inc. Drew Locher, Change
Management Associates
Vermont Manufacturing Extension Center Lean
Enterprise Institute
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Seeing the Enterprise - A Value Stream Mapping
Workshop
Course Content

• Introduction to Value Stream Mapping
• Importance, relationship to other lean tools
• Techniques to develop a current state Value
  Stream Map
• Real-life example
• Identification of wastes and root causes
• Lean tools concepts, application to a value
  stream
• Development of a future state map
• Implementation strategies, tools, and techniques

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Value-Stream Improvement vs. Process Improvement
Value Stream Customer!

VALUE STREAM
PROCESS
PROCESS
PROCESS
PROCESS
Customer Service
Sales
Engineering
Purchasing



Initial Customer Contact
Production

Scheduled
Order Entry Process
Value Stream ALL steps, both value-added and
non value-added, required to complete a product
and/or a service from beginning to end.
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Value Stream Mapping

• Follow a product or service from beginning to
  end, and draw a visual representation of every
  process in the material information flow.
• Identify waste.
• Look for opportunities to apply lean tools and
  concepts to eliminate waste.
• Draw (using icons) a future state map of how
  value should flow.
• Develop prioritized project plan to implement
  changes.

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Value Stream Mapping

• How does VSM fit into a lean implementation?
• Value Stream Mapping is a planning tool. It is
  used to help identify waste and develop a
  structured plan to make effective changes.

Awareness
VSM
Implement
Sustain
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VSM Example Cross Functional (Door to Door)
Total L/T2.75 d
1.25 days
.5 days
1 day
12 min
12 min
5 min
Total P/T29 min
Enter Order
Finalize
Schedule
Order
FIN
MRP
MRP
1 order
x2
2 orders
MRP
P.O.
P/T12 min L/T4 hrs
P/T5 min
P/T12 min L/T10 hrs
Customers
Supplier
Job Packet
Shipping Schedule
46 orders per day
L/T4-6wks
Ship
Slit
Finish
I
I
X 3
X 4
X 5
P/T2 hrs CA95
P/T8 hrs Rew 5
P/T2 hrs Rew 5
Overall L/T38.25 days Overall P/T12.5 hrs First
Pass Yield86
Total L/T35.5d
2 days
8.5 days
Total P/T12 hr
2 hrs
8 hrs
2 hrs
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Seeing the Enterprise - A Value Stream Mapping
Workshop
Course Content

• Introduction to Value Stream Mapping
• Importance, relationship to other lean tools
• Techniques to develop a current state Value
  Stream Map
• Real-life example
• Identification of wastes and root causes
• Lean tools concepts, application to a value
  stream
• Development of a future state map
• Implementation strategies, tools, and techniques

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Using the Value Stream Mapping Tool
Product/Service Family
Determine the practical limits of your mapping
activity.
Understanding how things currently operate. The
foundation for the future state.
current state drawing
Designing a lean flow.
future state drawing
plan and implementation
The goal of mapping!
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Levels of a Value Stream
single site (door to door cross functional)
Start Here
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Identify Product/Service Families
Process Steps
Determine product or service families based on
similar processing steps
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Value Stream Objectives

• Why have we chosen to map this process?
• Should be clearly important to business and / or
  customer

Service
On time
Cost
Labor, process time, materials
Quality
Yield, defects
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Data Box Contents

• We are looking for data thats related to the
  seven wastes
• Were not looking for machine utilization,
  efficiency, or performance against production
  goals
• Were not looking for information to reward or
  penalize individuals
• Information should help highlight waste / support
  actions
• Should support a companys objectives for cost,
  service, and quality
• Be flexible
• Revise as necessary as the process tasks are
  defined
• Select ones you may already be using

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Process Data Box Information

• Typically, collect shop floor information on
• Cycle Time C/T
• Changeover Time C/O
• Reliability REL
• Yield / Scrap Yield
• Number of operators
• Number of shifts Shifts
• Batch Size Batch
• Also look for variation or unusual range in data
  values.

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Support Process Data Attributes

• Process time
• Available time
• Set-up time
• Lead time/turnaround time
• Typical batch size or frequency
• Complete and Accurate information ( CA)
• Rework/revisions (e.g. design changes)
• Number of people involved
• Downtime (e.g. information systems)
• Inventory queues of information (e.g.
  electronic, paper)
• Demand
• Information Technology used

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IT Etch Wet Strip Process
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IT Etch Wet Strip Process
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IT Etch Wet Strip Process
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IT Etch Wet Strip Process
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IT Etch Wet Strip Process
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IT Etch Wet Strip Process
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VSM Insights

• What do you see?
• What problems are pointed out?
• Where are some lean opportunities?
• Where should we begin our focus in light of our
  business objectives?
• What should we be trying to achieve in our future
  state?
• Who should participate in our next value stream
  map?

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Seeing the Enterprise - A Value Stream Mapping
Workshop
Course Content

• Introduction to Value Stream Mapping
• Importance, relationship to other lean tools
• Techniques to develop a current state Value
  Stream Map
• Real-life example
• Identification of wastes and root causes
• Lean tools concepts, application to a value
  stream
• Development of a future state map
• Implementation strategies, tools, and techniques

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Lean Eliminating Waste

• Non-Value-Added
• Defects
• Overproduction
• Waiting
• Not Utilizing Employees K,S,A
• Transportation
• Inventory
• Motion
• Excess Processing

Value-Added
Typically 95 of all lead time is non-value-added.
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Waste

• The elements of production that add no value to
  the product
• Waste only adds cost and time
• Things to Remember about Waste
• Waste is really a symptom rather than a root
  cause of the problem
• Waste points to problems within the system (at
  both process and value-stream levels)
• We need to find and address causes of waste

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Overproduction

• Making more than is required by the next
  process
• Making earlier than is required by the next
  process
• Making faster than is required by the next
  process

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Variation

• Variation is often a root cause of waste.
• Variation in product mix or volume can create
  temporary bottlenecks and expedite culture
• Variation in process or materials can create
  quality problems
• Variation can mask other problems
• Variation can also be an important red flag to
  indicate opportunities for improvement.

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Support Systems Waste

• People Wastes
• Goal Alignment Waste is the energy expended by
  people working at cross-purposes and the effort
  required to correct the problem and produce a
  satisfactory outcome.
• Assignment Waste defines the effort used to
  complete unnecessary and inappropriate tasks.
• Waiting Waste describes the resources lost as
  people wait for information, a meeting, a
  signature, a returned phone call, a copier or
  computer that is broken. People cannot add value
  to the product while they are waiting.

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Support System Wastes

• Process Wastes
• Control Waste is energy used for supervision or
  monitoring that does not produce sustainable,
  long term improvements in overall performance. A
  large portion of traditional supervision and
  management interaction with employees is control
  waste.
• Variability Waste includes all the resources
  expended to compensate for and/or correct
  outcomes that deviate from expected or typical
  outcomes create variability waste.
• Strategic Waste is the value lost as a result of
  employing processes that satisfy short-term goals
  and/or internal customer needs but do not provide
  value to customer and shareholders.

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Process wastes (contd)

• Reliability Waste is effort required for
  correction of unpredictable process outcomes due
  to initially unknown causes.
• Scheduling Waste describes the resources wasted
  by compensating for poorly scheduled activities.
• Work-Around Waste occur when resources are used
  to create and maintain informal process that
  replace official processes or conflict with
  other informal processes, as well as the
  resources used to correct errors caused by using
  several such systems.
• Checking Waste is the effort used for inspection
  (and rework).
• Error Waste refers to the resources required to
  duplicate work that is rendered useless by an
  error.

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Support Systems Waste

• Information Waste
• Translation Waste is the effort required to
  change data, formats, and reports between process
  steps or owners.
• Missing Information Waste refers to the resources
  required to repair the consequences of or
  compensate for the absence of information.
• Hand-Off Waste is the effort required to transfer
  information (or materials) within an organization
  (department or group) that are not fully
  integrated into the process.
• Irrelevancy Waste is the effort employed to deal
  with unnecessary information, or the effort
  required to fix problems that it causes.

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Performance Metrics

• How do you influence behavior?
• Metrics and compensation mechanisms need to be
  examined
• Production goals
• Sales targets
• Productivity
• What might you need to change?

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Seeing the Enterprise - A Value Stream Mapping
Workshop
Course Content

• Introduction to Value Stream Mapping
• Importance, relationship to other lean tools
• Techniques to develop a current state Value
  Stream Map
• Real-life example
• Identification of wastes and root causes
• Lean tools concepts, application to a value
  stream
• Development of a future state map
• Implementation strategies, tools, and techniques

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Individual Efficiency vs. System Efficiency

• How fast should we produce?

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Future State Questions

• What does the customer really need? What is the
  rate and variation in customer demand?
• Which steps create value and which are waste?
• How can we flow work with fewer interruptions?
• Is there an opportunity to balance the work load
  and/or different activities?
• What process improvements will be necessary?
• Are there business relationships that might need
  to change?
• What should we measure?

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Takt Time Demand Rate

• Synchronizes pace of processing to match pace of
  customer need. Need can be expressed in
  different ways.
• Rate for completing work based on customer need.

Effective Working Time per Shift Customer
Requirement per Shift
Takt Time
460 minutes 46 orders
10 minutes/order

• What will be the desired cycle time or service
  level for each activity?
• What resources will be needed to meet demand?

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Batch Reduction or Elimination
Process B 10 minutes
Process C 10 minutes
Process A 10 minutes
Overall Lead Time 30 minutes Queue Time
Small Batch Processing
3 min.
Source Learning to See
12 min.
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Supermarket Pull System
1) Customer process goes to supermarket and
withdraws what it needs when it needs it. 2)
Supplying process produces to replenish what was
withdrawn.
SUPERMARKET
Purpose

• A way to control production between flows
• Controls production at supplying process without
• trying to schedule

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EPE Interval and Batch Reduction
(Assembly)
No Good
Assembly Schedule Monday .......... 400
A Tuesday ........ 100 A, 300 B Wednesday 200
B, 200 C Thursday ...... 400 C Friday
............ 200 C, 200 A
Better Every Part Every Day
Monday 140 A, 100 B, 160 C
Important Near-zero changeover time and
frequent changeovers at the Pacemaker Process!
Even BetterEvery Part Every Ship Window
Monday
50B 70A 80C 50B 70A 80C
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Lean Thinking for Support Processes

• Apply Appropriate Tools and Techniques
• Standardized Work
• Quality at the Source
• Workplace Organization
• Visual Controls Management
• People Involvement
• Batch Reduction or Elimination
• One piece flow

• Setup / Changeover Reduction
• Point of use stocking
• SPC / Six Sigma
• Pull Systems
• Cellular/Team Concepts
• Equipment Reliability
• Reduction in variability

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Lean Thinking for Support Processes

• Standardized Work
• Operations safely carried out with all tasks
  organized in the best known sequence, and
  followed by all employees.
• Orders
• Drawings
• Repair/requal processes
• All paperwork and non-creative work
• Minimize variation in the process and process
  result!

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Lean Thinking for Support Processes

• Quality at the Source
• People must be certain that the
  product/information they are passing to the next
  work area is of acceptable quality.
• People must be given the means to perform
  inspection at the source, before they pass it
  along.
• Samples or established standards are visible
  tools that can be used for such purposes.

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Lean Thinking for Support Processes

• Workplace Organization
• A safe, clean, neat, arrangement of the workplace
  which provides a specific location for
  everything, and eliminates anything not required.
• Point-of-Use Storage for supplies, equipment
  (copiers, faxes, printers)
• A place for everything everything
  in its place!

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Lean Thinking for Support Processes

• Workplace Organization - the 5 Ss
• Sort - what is not needed, sort through, then
  sort out When in doubt, throw it out!
• Set-in-Order - what must be kept make it visible
  and self-explanatory so everyone knows what goes
  where
• Shine - everything that remains. Clean equipment
  and work space
• Standardize - Set standards for the first 3 Ss
• Sustain- requires discipline, stick to the rules
  and make them a habit

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Lean Thinking for Support Processes

• Visual Controls and Management
• Simple signals that provide an immediate
  understanding of a situation or condition. They
  are efficient, self regulating, and worker
  managed.
• Examples
• Schedule or status boards
• Color coded files, transactions
• Good signage to direct people to areas, etc.

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Lean Thinking for Support Processes

• People Involvement
• Teams
• With rotation of highly specified jobs
• Cross trained and multi-skilled employees
• Who can work many operations within an area and
  even operations in different areas
• Expanded responsibilities and authority

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Lean Thinking for Support Processes

• Pull Vs. Push Systems
• Push System
• Resources are provided to the consumer based on
  forecasts, schedules or when we get to it.
• Pull System
• A method of controlling the flow of resources
  (people, information) based on pre-established
  rules, and the actual status of the system at any
  time.

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Lean Thinking for Support Processes

• Pull System is a flexible and simple method of
  controlling/balancing the flow of resources.
• Eliminate waste of handling, storage, expediting,
  obsolescence, rework, facilities, equipment,
  excess paperwork.
• Pull System consists of
• Processing based on actual consumption
• Low and well planned work in process (paperwork)
• Management by sight, improved communication

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Lean Thinking for Support Processes

• Cellular/Teaming Concepts
• The physical linking of people and supporting
  technology into the most efficient combination to
  maximize value-added content while minimizing
  waste.

Order Entry
Technical Support
Scheduling
Invoicing
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Lean Thinking for Support Processes

• Reliability of office tools and equipment must
  be assured
• Possible issues
• Limited software licenses ( of users)
• Excessive system downtime
• Slow system response time
• Office Equipment downtime
• Complex and inefficient screens or transactions

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Seeing the Enterprise - A Value Stream Mapping
Workshop
Course Content

• Introduction to Value Stream Mapping
• Importance, relationship to other lean tools
• Techniques to develop a current state Value
  Stream Map
• Real-life example
• Identification of wastes and root causes
• Lean tools concepts, application to a value
  stream
• Development of a future state map
• Implementation strategies, tools, and techniques

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System Level Questions

• What is really needed by the customer?
• Are existing controls and administrative
  guidelines appropriate?
• Does the mix (e.g. order type) impact the
  ability of the system to flow, or impact the
  responsiveness of particular steps in any way?
• Example Rush vs. Standard Orders
• Does the volume (e.g. demand variation) impact
  the system in any way?
• Example Month-end phenomena driven by metrics?

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Finding Process Level Waste

• Challenge every step ask the following
• Why are the current steps performed?
• What can be done differently or not at all?
• Is the order of steps creating waste? Where
  should decisions be made?
• What assumptions underlie the current process?
• What knowledge and skills are truly required to
  perform the step(s)?
• Are there counterproductive metrics in place?

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Lean Thinking for Support Processes

• System impact of controls and administrative
  guidelines
• What are the rules and assumptions that underlie
  the structure and performance of the current
  process?
• Are the current rules and assumptions still
  valid?
• Are the current controls still appropriate?
• What is the cost of the current rules and
  controls? What are the benefits real or
  perceived?
• Are there better ways to provide the desired
  control?

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Business Relationships

• May need to address adversarial or competitive
  past history
• Vision is Value Stream Partners win-win
• Company A may need to invest in capital where
  primary benefit is company B

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IT Etch Wet Strip Process
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Seeing the Enterprise - A Value Stream Mapping
Workshop
Course Content

• Introduction to Value Stream Mapping
• Importance, relationship to other lean tools
• Techniques to develop a current state Value
  Stream Map
• Real-life example
• Identification of wastes and root causes
• Lean tools concepts, application to a value
  stream
• Development of a future state map
• Implementation strategies, tools, and techniques

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Value Stream Managers
Each Value Stream needs a Value Stream Manager
Customer
Dont start without one!
Kaizen

• For product and/or service ownership beyond
  functions
• Assign responsibility for the future state
  mapping and implementing lean value streams to
  line managers with the capability to make change
  happen across functional and departmental
  boundaries.
• Value Stream Managers should make their progress
  reports to the top manager on site.

The Value Stream Manager
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Make VSM Successful

• Address change management issues
• Organizational support
• Culture buy-in, momentum, energy
• Metrics
• Communication
• Lean Accounting
• Lean Strategy
• Marketing / Customer Service
• Strategic relationships
• Lean beyond the shop floor

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Benchmark Metrics

• How do you know youre making progress?
• Gather appropriate metrics before you start
  mapping the current state
• Establish a baseline, so you can measure progress
  and success.
• Metrics Starter Set for Front Office
• Throughput Quote to order
• Lead time Order to schedule
• WIP, inv. turns PO to material on hand
• On time delivery TCO
• Sales/employee

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What Process Improvements are Necessary?

• Identify all process improvements that will be
  necessary to implement the future state

System Uptime
Paperwork Redesign
Change Authority Levels
New Technology
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Tactical Focus

• There is far more benefit in doing a small thing
  than in talking about a big thing
• Identify specific changes that will produce
  visible results
• Build credibility
• Create foundation for longer term projects
• To make it happen, you need a plan!
• Tie it to your business objectives.
• Break your Future State into loops.
• Make a VS Plan What to do by when.
• Establish an appropriate review frequency.
• Conduct VS Reviews walking the flow.

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Prioritizing Support Process Kaizens

• Eliminate NVA steps first that dont require new
  IT efforts
• Simplify steps that require minimal IT effort
  (e.g. minimize transactions entering and within
  the Value Stream)
• Implement flow (e.g. change office layouts)
• Implement IT solutions (e.g. e-business)
• Identify loops, as appropriate

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Identify Parts Test new Wet Strip
Process Fully Implement

• Standard spare parts are always available for Wet
  Strips

Improve IT Etch Wet Strip Process

Form Team/develop process Pilot Implement
Process Review/final revisions

• Improve Leak Tester Availability

Source Training to See
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Measuring the Impact