Value Stream Mapping October 2016 www hilti com

Value Stream Mapping October 2016 www. hilti. com Lean@Hilti I Value Stream Mapping 1

Agenda 1. 2. 3. 4. Introduction & Expectations § Who are we? Who are you? § Spotting Waste within the value chain- activity Value Stream Mapping– The theory § Overview of Value Stream: “Why VSM” ? § Map process : “AS IS” § Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization § Example 1 § Example 2 Value Stream Mapping simulation § www. hilti. com Game Lean@Hilti I Value Stream Mapping 2 2

Who are we? Sofia Albohaithi Lean Manager Northern Europe www. hilti. com Kostas Kefalakis Global Lean Manager Lean@Hilti I Value Stream Mapping 3

Outcomes/ Expectations Key expectations www. hilti. com Lean@Hilti I Value Stream Mapping 4

Ball game - 5 General rules Kick-off round 1. Create a process to pass over the ball within your team (team of min. 5) 2. You can‘t pass the ball to the person next to you 3. Everybody in your team must have had contact to the ball 4. The ball must return to the person who started with it 5. The ball must travel through the air www. hilti. com Lean@Hilti I Value Stream Mapping 5

Waste can be divided into 7 (+1) types Over information/production Transport/information transfer Inventory Motion Unused potential Defects Over processing/unsuitable methods Waiting www. hilti. com Lean@Hilti I Value Stream Mapping 6 6

An image instead of words… what’s going wrong? Functional Segmentation (Task bundling/ specialization/ spatial seperation/ department thinking) Push Connections (Lack of demand-orientation and lack of coordination) Big lots (Binder tradition) Media breaks and paper-based infos Serial Processing (In large lots with many interfaces) www. hilti. com Lean@Hilti I Value Stream Mapping 7

Uses and goals of value stream mapping (VSM) Added value of using value stream mapping Holistic view - Process mapping from a bird’s eye view - Common process understanding Redesign the value stream - Uncover weaknesses / potential - Alignment with LEAN principles - Restructuring the value chain Increasing competitiveness - Reducing throughput time (TPT) - Increasing performance level www. hilti. com Lean@Hilti I Value Stream Mapping 8

What is value and the value stream? Value This is the usage the customer is willing to pay for Value creation is increasing the value from raw materials up to the end product Value stream Contains all activities that are necessary to bring one or more products from raw materials into the form desired by the customer Supplier Mechanical manufacturing Preassembly Final assembly Customer Value creation steps www. hilti. com Lean@Hilti I Value Stream Mapping 9

Chain of effects of value stream mapping Process optimization with the support of the tool value stream mapping From analysis to optimization: Process step 1 Process step 2 Process step 3 Process step 4 Concentration of value generation Value Process step x Waste Reduction of throughput time (TPT) Higher quality Better service Customer www. hilti. com Improved flexibility Smaller stocks Reduced complexity Lower costs Company Lean@Hilti I Value Stream Mapping 10

Agenda 1. 2. 3. 4. Introduction § Who are we? § Spotting Waste within the value chain- activity Value Stream Mapping– The theory § Overview of Value Stream: “Why VSM” ? § Map process : “AS IS” § Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization § Example 1 § Example 2 Value Stream Mapping simulation § www. hilti. com Game tbc Lean@Hilti I Value Stream Mapping 11 11

Systematic optimization of a value stream Process structure on the way to the target value stream AS-IS value stream mapping Zero line in project AS-IS value stream analysis Value stream VISION detached Green field approach (free of restrictions) Uncovering weaknesses Value stream TO-BE 1 (Implementation step 1 of x) Quick wins first! Taking restrictions into consideration www. hilti. com Lean@Hilti I Value Stream Mapping 12

VSM workshop – Brown-paper approach AS-IS- Value Stream Map www. hilti. com Document flow Lean@Hilti I Value Stream Mapping 13

The weakness analysis follows the AS-IS map www. hilti. com Lean@Hilti I Value Stream Mapping 14

Agenda 1. 2. 3. 4. Introduction § Who are we? § Spotting Waste within the value chain- activity Value Stream Mapping– The theory § Overview of Value Stream: “Why VSM” ? § Map process : “AS IS” § Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization § Example 1 § Example 2 Value Stream Mapping simulation § www. hilti. com Game tbc Lean@Hilti I Value Stream Mapping 15 15

Product Development Key Improvements Project overview • A product requires development loops Development Prototyping Assembly Test • The average development loop time is 6 weeks • Teams can go through 30 loops in one project BEFORE • • Identified key value creation points Identified 26 issues/wastes Created 10 solutions & implemented 8 Eliminated ‘throwing over the wall’ communication, rework & firefighting Potential Impact 6 Weeks AFTER • ~30% time saving per dev. loop • Created a communication platform with clear roles & responsibilities confirming development loop target, timeline responsibilities, outcomes & learnings • Created smoother flow of development loops by creating a concurrent schedule 4 Weeks www. hilti. com Lean@Hilti I Value Stream Mapping 16

Agenda 1. 2. 3. 4. Introduction § Who are we? § Spotting Waste within the value chain- activity Value Stream Mapping– The theory § Overview of Value Stream: “Why VSM” ? § Map process : “AS IS” § Highlight weaknesses & improvement opportunities Examples of Value Stream Optimization § Example 1 § Example 2 Value Stream Mapping simulation § www. hilti. com Current VS future state VSM Lean@Hilti I Value Stream Mapping 17 17

Value Stream Mapping Game October 2016 www. hilti. com Lean@Hilti I Value Stream Mapping 18

Game structure Architects Engineers Builders Design Check Build Max Time: 45 Minutes www. hilti. com Lean@Hilti I Value Stream Mapping 19

Game Structure – Steps • Step 1: Orientation Together you need to build a tower • Step 2: Setup Split group into 3 teams, put separator pinboards in between each team – handout instruction sheets to each team (next page) • Step 3: Play Observe & time how long each process takes. Game ends • Step 4: Video (map) Show video on how to map the process • Step 5: Map Together the team maps the entire process • Step 6: Video (waste) Show video on identifying wastes in processes • Step 7: Waste Individually each person writes red post-its of wastes observed • Step 8: Vision state Together discuss how to create vision state • Step 9: Run game again (optional) Play game again in new state www. hilti. com Lean@Hilti I Value Stream Mapping 20

Architects – Instructions • Responsibilities 1. Receiving customer requirements 2. Designing the Marshmallow Tower 3. Communicating your design specifications to the Engineering group • Customer Requirements: • • Material Budget: • • • Customer wants the tallest possible spaghetti tower with a Marshmallow on top Measurement starts from the ground up to the Marshmallow 0 -30 cm: Poor customer satisfaction 30 -40 cm: Average customer satisfaction 50 -60 cm: Good customer satisfaction 60+cm: Great customer satisfaction 20 pieces of spaghetti 1 meter/yard of string 1 meter/yard of tape 1 marshmallow Communication rules: • You are allowed to communicate only via paper www. hilti. com Lean@Hilti I Value Stream Mapping 21

Engineers – Instructions • Responsibilities 1. 2. 3. 4. • Structural Requirements: • • Receiving design specifications from Architects Checking design against structural requirements (example below) Creating instructions on how to build the marshmallow tower (for the builders) Communicating instructions to the builders Minimum 2 spaghetti sticks are required per column (vertical spaghetti not horizontal spaghetti) Minimum 3 cm wide tape required to connect any two parts Structure is not allowed to have support structure apart from the ground (no taping to table legs or walls) Eg: 1 cm tape • 3 cm tape Communication rules: • • You are allowed to communicate only via paper You can only start your communication with architects after they start communicating with you www. hilti. com Lean@Hilti I Value Stream Mapping 22

Builders – Instructions • Responsibilities 1. 2. 3. 4. • Testing structural capability (Test budget: of 1 marshmallow 10 spaghetti sticks, 50 cm tape, 50 cm string) Receiving building instructions from Engineers Checking building design & instructions against building requirements (below) Building the Marshmallow Tower as per instructions Building Requirements: • • • When using 2 pieces of spaghetti together – You need to use tape to connect them in the middle (see diagram) You can build the tower only as per Engineering instructions You need to get approval from Engineering if you want to modify the design or instructions tape spaghetti • Communication rules: • • You are allowed to communicate only via paper You can only start your communication with engineers after they start communicating with you www. hilti. com Lean@Hilti I Value Stream Mapping 23

Questions to ask ourselves What can we remove? What control steps can we limit? What can we do concurrently? How do handovers take place? Are there any air gaps? Is there information starvation? Is there a skill bottleneck? Are we repeating processes? www. hilti. com Lean@Hilti I Value Stream Mapping 24 24

Backup www. hilti. com Lean@Hilti I Value Stream Mapping 25

Video? ad re Pre- www. hilti. com Lean@Hilti I Value Stream Mapping 26