How to maximise the overall flow?

1. VSM – Current & Future How to maximise the overall flow? Anand Subramaniam

2. 2 “If you are going through hell, keep going.” - Sir Winston Churchill

3. 3 Highlights VSM – Overview VSM – Current State VSM – Future State Measures & Targets

4. VSM Overview

5. VSM – Why, What, When, Who etc 5 Focuses on maximising the overall flow Spans the entire value chain, from raw materials receipts to finished goods delivery Forms the basis of an improvement plan and a common language Key tool for Lean implementation makes process & problems visible. Is a qualitative tool for identifying and eliminating waste (or muda) VSM Involves drawing - current state, future state & an implementation plan Paper and pencil tool to help you visualise and understand the linkage between material and information flow Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC) Aligns organisations processes, creates a sense of teamwork / ownership

9. Does it change form / function?

10. Is it done right the first time?

12. Definitions Process Name: A brief name for the process for which the VSM is being conducted / process being proposed for improvement. Include key steps and activities Customer(s): Identifies the customer(s) of this process, both internal and external to the process itself. Include VOC/ VOB / VOA Supplier: The internal and/or external persons/entities that provide information, documents, supplies, people, etc. for the process. Boundaries of this Process: Defines specifically where this process begins and ends for the purposes of this intervention. This includes nailing the scope using the SIPOC process. Problem Statement: The reason(s) you want to change this process. Use of 5w & 2H – to change, improve, merge, create or do nothing.

13. Definitions (Contd.) Value Added: Any activity that adds to the form or function of the work or any activity that the customer** is willing to “pay” for. Non-Value-Added: Any activity that consumes resources but creates no value for the customer. Any activity that is not necessary and considered as a waste (use 8w). C-T Cycle Time or Lead Time: The amount of time it takes to complete one step / item from the end of the previous step to the end of the current step. Includes changeover time, wait time,) C-O Change Over Time: The amount of time it takes to change over from the end of the previous step to the beginning of this step. V-A% Value Added %: An estimate of the percentage of Value-Added Time within the Cycle Time for the step. This is what the customer would be willing to pay for – change in form or function)

14. Definitions (Contd.) R-N-V-A% Required Non Value Added %:An estimate of Non-Value-Added Time that is required by law, rule, regulation, or other mandate.) U-T Up Time %: The percentage of time a person / machine is available F-P-Y First Pass Yield %: The percentage of time that quality standards are met the FIRST time Parking Lot: Issus and concerns might come up that may not be directly related to process flow. Issues not related to process flow should be "parked" and addressed in another manner - outside of the process mapping exercise.

15. VSM – Current State

16. Current - Process Challenges Duplication of effort Too many hand-offs / approvals / workarounds Lack of skills / training Lots of travel High WIP Waste in process – bottlenecks / backlogs Challenges Different prioritisation rules Lots of waiting / lead times Lost time - people looking for work and / or re-work loops to correct errors Lack of communication Too many Dead zones - places where work gets held up or lost Slow throughput/ turnaround

18. Process Boundaries / Scope

19. SIPOC

20. Spaghetti

21. Product Family

22. Start with a single product family

23. Current & Future State

24. Collect data on process & system

25. Be specific

26. How many finished part numbers in family?

27. How much is demanded?

28. How often?

29. Verify & repeat the Process

30. Develop Implementation PlanProduct Family Current state drawing Future state drawing Work plan & implementation

31. VSM Charter Vision Mission Improvement Objectives Strategic Plan Critical Success Factors Constraints Process Description Manual / Auto System Metrics / Measures Process - Start / End High Level Scope Benefits Realisation Process Champion Stakeholders Assumptions Risk & Tolerance Drivers Roles & Responsibilities 14

32. VSM - Boundary Current State Define the boundaries Define the value Identify the tasks and flows of material and information between them Identify resources for each task and flow Create the current state map Future State (Design) Visualise the “Ideal State” and design the future state map Identify value added and waste from Current State Reconfigure the process to eliminate waste & to add “value” Implementation Plan Develop Action plans and track 15

33. Defining Boundary - Specifics Before launching on VSM, define the Start and End points Prepare As-Is physical map – How / where (inputs to outputs) Prepare As-Is geographical map - area(s) where process is performed Add process control information flow to as-is physical map A logical starting point - where Inputs cannot be returnedto the preceding step. Capture the process as it is actually performed and include workarounds, rework, informal activities, feedback loops etc In lean, we commonly define “work-in-process” is anything you can’t ship to the customer or return to the supplier Add As-Is process metrics - counts, rates The number of parts required by customers The number of machines and operators available to work on parts The rates that process steps work on parts (Takt at varied times)

34. Material & Information Flow Use the “SIPOC” document to map the product flow Map the whole value stream by conducting a “walk through” of the actual process and collect information Start with the final step and walk backwards (customer perspective) Outline major process blocks Chunk of activities that occur before a handoff Don’t get bogged down to many details, use assumptions / parking lots Bring your stopwatch and do not rely on information that you do not personally see Numbers or percentages – use the best data available to you. An estimate, while not 100% accurate, is still closer to being accurate than nothing Draw by hand and use a pencil

35. Takt Time 18 Enables “continuous flow” and minimum inventory

36. 19 Takt Time - Example Takt time is flow at the speed of customer demand. Need to complete a unit every 66 sec to satisfy average customer demand

37. Product Family Matrix

38. Data Collection – Process Analysis 21

39. Value Stream Map

40. VSM – Future State

41. Future VSM – Improve / Eliminate 24 Takt Time Just in Time Waste Elimination Continuous Flow Set-up Reduction Pull Production Look for.. Standard Work Line Balancing 6S / Workplace Organisation Total Productive Maintenance Level Production Mistake Proofing

42. VSM – Future State Questions 25 Where, when and how will scheduling be done? How often will we check our performance to customer needs? What does the customer really need? What should be the Takt time? How do we perform load leveling and what will be the product mix? Future State Is there an opportunity to balance the work load and/or different activities? How do we control work between interruptions? How will work be prioritised? How can we improve the flow, with fewer interruptions? What process improvements are necessary, to achieve the future state?

43. Future State Metrics 26 Quality Errors Cost Reducing errors, rework, handoffs, waiting and lead time Do Plan Change Delivery Lead time Customer service How well do you provide services (internal and external) Check Act

44. Future State – Blue Print Define how the plant will operate in the future (blueprint) Consider whether (remove waste / non value add activities) everything done currently at each stage is really necessary the impact if superfluous tasks was to be removed the process can be rearranged in a more efficient sequence a different flow layout or transport routing can be introduced Validate Customer Demand / Takt Time Draw the Future State Process Flow Map the Future State Material & Information Flow Future metrics & measures Assumptions / Parking Lot Outline an Implementation Plan 27

45. VSM – Measures & Targets

46. Process Measurements

47. VSM - Baseline & Targets

48. Targets & Measures

49. “To repeat what others have said, requires education; to challenge it, requires brains.” - Mary Pettibone Poole

50. Good Luck http://www.linkedin.com/in/anandsubramaniam