VSM 001 Value Stream Mapping Day 1 Value

VSM 001 Value Stream Mapping Day 1 Value Mapping Stream 1

VSM 001 Value Stream Mapping Introductions Jan Vlasak 2

VSM 001 Value Stream Mapping Agenda • Current State Map • Future State Map • Value Stream Plan 3

VSM 001 Value Stream Mapping Agenda Day 1: Topic/Activity Opening Introduction Goals of Workshop Review of Lean Principles Break Introduction to Value Stream Current State Map Exercise 1 – Customer Loop Lunch Report-outs Exercise 2 – Internal Loop Report-outs Break Exercise 3 – Supplier Loop Current State Report-outs Opportunities In Future State Example Future State Map Adjourn Time 8: 00 AM 8: 15 AM 8: 30 AM 8: 35 AM 9: 00 AM 9: 20 AM 10: 05 AM 11: 00 AM 12: 45 PM 1: 00 PM 2: 25 PM 2: 40 PM 2: 55 PM 3: 45 PM 4: 05 PM 5: 00 PM 5: 45 PM 4

VSM 001 Value Stream Mapping Agenda Day 2: Topic/Activity Introduction Day 2 Exercise 4 – Customer Loop Break Report-outs Exercise 5 – Internal Loop Report-outs Lunch Exercise 6 – Supplier Loop Obstacles Value Stream Plan Exercise 7 - VSP Final Report-outs Break The Value Stream Team Closing Comments Time 8: 00 AM 8: 15 AM 9: 30 AM 9: 45 AM 10: 00 AM 11: 45 AM 12: 00 AM 12: 45 PM 1: 30 PM 2: 00 PM 2: 15 PM 3: 00 PM 3: 45 PM 4: 00 PM 4: 15 PM 5

VSM 001 Value Stream Mapping Company Strategy • Growth • Competitive Position 6

VSM 001 Value Stream Mapping Cost Reductions • Customer Price • Labor Inflation • Increase Earnings 7

VSM 001 Value Stream Mapping Keys to Lean Production • Work Place Organization • JIT Production • Six Sigma Quality • Empowered Teams • Visual Management • Pursuit of Perfection 8

VSM 001 Value Stream Mapping Key Factors for Lean Success • Strategic Vision • Strong Line Management Leadership • Expert Training and Support • Aggressive Performance Targets and Tracking • Impatience 9

VSM 001 Value Stream Mapping “Becoming the Best” • The Answer; • Develop a Deep Understanding of Our Processes at their Broadest Levels and Not Just Continue to Improve Individual Work Units • Working Together to Add Value to our Company 10

VSM 001 Value Stream Mapping Our Needs • Tools to Support Linkages Between Processes • Emphasis on Processes and Systems • Horizontal Organization Based on Teamwork • Leadership and Followership • Commitment and Involvement 11

VSM 001 Value Stream Mapping Performance • Operational Performance Determines Financial Results • Lean Enterprise Is the Key to Successful Operational Performance 12

VSM 001 Value Stream Mapping The AM of Tomorrow • Complete Understanding of Lean Principles • Commitment and Discipline to Live by these Principles • Sense of Urgency to Exceed the Targets and Deadlines • Commitment to Strive for Perfection 13

VSM 001 Value Stream Mapping Potential Benefits • Inventory Reduction • Quality Improvement • Productivity Improvement • 12% Reduction in Overall Cost 14

VSM 001 Value Stream Mapping Why are we Here? 15

VSM 001 Value Stream Mapping Goals of the Workshop • • • L earn to See E stablish a Plan A ct on Opportunities D rive Change E nable Teams R educe Lead Time 16

VSM 001 Value Stream Mapping Think Lean 17

VSM 001 Value Stream Mapping Waste • Waste is Only the Symptom of a Deeper Problem • Focus on the Source Rather than the Symptom 18

VSM 001 Value Stream Mapping Overproduction Parts Parts • Definition: • Producing More than Needed • Producing Faster than Needed 19

VSM 001 Value Stream Mapping Takt Time Available Work Time Customer Demand 20

VSM 001 Value Stream Mapping One Piece Flow Make One, Move One!!! Process A B C D 21

VSM 001 Value Stream Mapping Pull System “Production” KANBAN “Withdrawal” KANBAN Customer Process Supplying Process Product Supermarket 22

VSM 001 Value Stream Mapping Selecting the Point of Pull P O P Process A Process B Process C Process D FLOW 23

VSM 001 Value Stream Mapping Why Small Lots? • Drive C/O Time Reduction • Flexibility • Reduce Inventory • Reduce Lead Time 24

VSM 001 Value Stream Mapping Leveling 25

VSM 001 Value Stream Mapping A Brief Introduction to Value Mapping Stream 26

VSM 001 Value Stream Mapping The Improvement Process • Employee Involvement • Training and Development • Model Work Unit • 20 Keys Assessment • Traditional • Learning • Leading • World Class • Best in Class 27

Results VSM 001 Value Stream Mapping Improvement on all work units since introduction of the AM Performance System Factor Improvement PPM. ………………. . 91. 3 % Scrap ………………. 57. 6 % Training hrs. /Employee ………. . . 182. 2 % Suggestions/employee ……. . …. 347. 5 % Labor cost % of sales ………. … 36. 4 % WIP hours ……………. 91. 6 % Changeover time ……………. … 72. 5 % Lead time ……………. . 87. 0 % 28

VSM 001 Value Stream Mapping Production Space = 30% Entrance R Cut Draw Operator 1 Operator 2 Exit F/A Spin 29

VSM 001 Value Stream Mapping Opportunities = 70% 30

VSM 001 Value Stream Mapping Why? ? ? • Opportunities in Work Units Vs. • Opportunities between Work Units 31

VSM 001 Value Stream Mapping F L O W Stamping C/T = 4 Sec. Sub-Assembly C/T = 60 Sec. Final Assembly C/T = 60 Sec. 32

VSM 001 Value Stream Mapping The Next Chapter in AM’s Success Story Value Stream Mapping 33

VSM 001 Value Stream Mapping What is a Value Stream? All the Actions Involved in Making a Part 34

VSM 001 Value Stream Mapping Establishing Flow Information Production Flow Material 35

VSM 001 Value Stream Mapping Elimination of Waste A Broadened Perspective • Identify and Target the Source of Waste in the Entire Value Stream, rather than Just the Work Unit 36

VSM 001 Value Stream Mapping Adding Value • Establishing the Vision • Reducing the Lead Time 37

VSM 001 Value Stream Mapping Benefits of Value Stream Mapping • Big Picture Approach • Links Material/ Information Flow • Team Growth 38

VSM 001 Value Stream Mapping Visionary Tool • Planning • Communication • Implementation 39

VSM 001 Value Stream Mapping The Current State Map 40

Sub-Assembly Supplier Stamping VSM 001 Value Stream Mapping Finished Goods Inventory C/O Time Down Time Takt Time Customer Assembly 41

VSM 001 Value Stream Mapping The Future State Map 42

VSM 001 Value Stream Mapping A Lean Stream!!! Sub-Assembly Cycle Time C/O Time Stamping Finished Goods Inventory Down Time Final Assembly 43

VSM 001 Value Stream Mapping Annual Value Stream Plan • This Plan Visually Displays: • Step-by-Step Implementation Plan • Measurable Goals • Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers • The Value Stream Plan will Play a Fundamental Role in the Optimization of your Value Stream 44

VSM 001 Value Stream Mapping Management’s Role • See Overall Flow • Develop the Vision • Lead Implementation • Support EI Teams • Make Sure Everyone Understands! 45

VSM 001 Value Stream Mapping Management’s Commitment • Eliminate Overproduction • Support Lean Principles • Willingness to Take Risks 46

VSM 001 Value Stream Mapping “Whenever there is a product for a customer there is a value stream The challenge lies in seeing it” AM 47

VSM 001 Value Stream Mapping The Current State Map Practice Makes Perfect 48

VSM 001 Value Stream Mapping It’s Time to Practice • At this Time Please Read through the Example Data Set for General Exhaust • We will Begin Drawing the Example Current State Map in Just a Few Minutes 49

VSM 001 Value Stream Mapping Data Set for General Exhaust • Customer • General Auto • Customer Information • 20, 000 pieces per month • Container size = 300 pieces • Customer operates on two shifts • Two deliveries to customer per week • General Auto 50

VSM 001 Value Stream Mapping Data Set for General Exhaust (continued) • General Exhaust Production Control Department • Electronically receives General Auto’s 13 week forecast and enters into MRP • Electronically issues 13 week forecast to General Components • Receives daily firm order fax from General Auto • Secures components through daily fax to General Components • Generates daily departmental schedule based on MRP 51

VSM 001 Value Stream Mapping Data Set for General Exhaust (continued) • Production Process: • Sub-Assembly 1 Sub-Assembly 2 Final Assembly • Work Time: • 20 Days per months • 2 shifts in all production departments • 8 hours per shift • 2 ten minute breaks per shift and unpaid lunch 52

Data Set for General Exhaust (continued) VSM 001 Value Stream Mapping • Final Assembly • 3 operators • Takt Time = 55. 2 seconds • Cycle Time = 55 seconds • Total Work Content = 146 seconds • Changeover Time = N/A • Uptime = 85% • Observed Inventory • . 75 Days work in progress • 3. 5 Days finished goods • Shipped to truck from final assembly finished goods 53

VSM 001 Value Stream Mapping Data Set for General Exhaust (continued) • Sub-Assembly 2 • 3 operators • Takt Time = 55. 2 seconds • Cycle Time = 55 seconds • Total Work Content = 130 seconds • Changeover Time = N/A • Uptime = 90% • Observed Inventory • . 5 Days work in progress • 1 Day finished goods 54

VSM 001 Value Stream Mapping Data Set for General Exhaust (continued) • Sub-Assembly 1 • 1 Operator • Takt Time = 27. 6 seconds • Cycle Time = 24 seconds • Total Work Content = 24 seconds • Changeover Time = 30 minutes • Uptime = 97% • Observed Inventory • 2 days raw material • . 25 days work in progress • 1 day finished goods 55

VSM 001 Value Stream Mapping Data Set for General Exhaust (continued) • Supplier • General Components • Supplier Information • Stampings • Delivery to General Exhaust • (1) time per day • Container size = 300 pcs • Two shift operation 56

VSM 001 Value Stream Mapping Always Start With the Customer!!! Work Upstream from There 57

VSM 001 Value Stream Mapping What to Look For. . . • Information Flow from the Customer • Forecasts • Firm Order • Instruction to Produce • Movement of Material • Inventory • Future Opportunities! 58

VSM 001 Value Stream Mapping Exercise 1: Customer Loop • Walk through the Entire Process (Upstream) • Sketch Value Streams for the Customer Loop • Gather Data for the Customer Loop Worksheet • Capture Information Flow • Return to Room 59

VSM 001 Value Stream Mapping Worksheet Exercise 1: Customer Loop 1. Who are the customers and where are they located? 2. How many pieces does the customer require per month? 3. What is our delivery frequency? 4. What is the container size (pieces per container)? 60

VSM 001 Value Stream Mapping Worksheet Exercise 1: Customer Loop 5. How many shifts does the customer run? 6. In detail, describe how customer orders are placed (Kanban, MRP, forecasts, firm orders, etc. ) 7. Where is the point of pull? 8. How much finished goods inventory did you find (count it!)? 61

VSM 001 Value Stream Mapping Worksheet Exercise 1: Customer Loop 9. Does any safety or buffer stock exist? 10. How is buffer and safety stock distinguished from finished goods inventory? 62

VSM 001 Value Stream Mapping 11. Map the Material and Information Flow Customer Loop 63

VSM 001 Value Stream Mapping Report Outs Customer Loop 64

VSM 001 Value Stream Mapping What We’ve Accomplished • Understanding Customer Requirements • Established Current State of Information and Material Flow • Have Started to Think About Future Opportunities 65

VSM 001 Value Stream Mapping Internal Loop • Tie the Customer Loop to Internal Processes • Establish the Relationship between Internal Processes 66

VSM 001 Value Stream Mapping What to Look For. . . • Define Plant Level Processes • Data Box Information • Takt Time, # of Operators, C/O Time, Work Unit Cycle Time, Total Work Content, Uptime %, # of Shifts, Available Operating Time • Capture All Inventory • What Initiates Production? • Future Opportunities! 67

VSM 001 Value Stream Mapping Exercise 2: Internal Loop • If Needed, Walk through the Entire Process (Upstream) • Sketch Value Streams for the Internal Loop • Gather Data for the Internal Loop Worksheet • Capture Information Flow • Return to room 68

VSM 001 Value Stream Mapping Worksheet Exercise 2: Internal Loop 1. Define the processes involved in the production of the part from a plant level (bird’s eye) perspective. Ex. Stamping Work Unit Sub-Assembly Final Assembly 2. For each of the plant level processes find the Takt Time, # of Operators, Work Unit Cycle Time, Total Work Content, Changeover Time, Uptime %, Number of Shifts, Available Operating Time (in seconds). 69

VSM 001 Value Stream Mapping Worksheet Exercise 2: Internal Loop 3. For each of the plant level processes count and calculate the finished goods, work in progress, and raw materials inventory. 4. How do the production work units know when and what to produce? (Be very specific about this process) 70

VSM 001 Value Stream Mapping 5. Map the Material and Information Flow Internal Loop 71

VSM 001 Value Stream Mapping Report Outs Internal Loop 72

VSM 001 Value Stream Mapping What We’ve Accomplished • Understand Relationship between Internal Processes • Current State of Information and Material Flow • Identified Future Improvement Opportunities 73

VSM 001 Value Stream Mapping Supplier Loop • Tie Internal Loop to Supplier • Understand Flow of Information and Material 74

VSM 001 Value Stream Mapping What to Look For. . . • Capture All Inventory • Establish Current Information and Material Flow • From Storage to the Work Unit • From Supplier to Storage • Understand Raw Material and Component Requirements • Future Opportunities! 75

VSM 001 Value Stream Mapping Exercise 3: Supplier Loop • If Needed, Walk through the Entire Process (Upstream) • Sketch Value Streams for the Supplier Loop • Gather Data for the Supplier Loop Worksheet • Capture Information Flow • Return to Room 76

VSM 001 Value Stream Mapping 77

VSM 001 Value Stream Mapping Worksheet Exercise 3: Supplier Loop 2. Describe in detail how we decide we need more material and how we inform our supplier of our needs (MRP, Kanban, Forecasts, Firm Orders). 3. How do we decide how much raw material inventory we need? 78

VSM 001 Value Stream Mapping 4. Map the Material and Information Flow Supplier Loop 79

VSM 001 Value Stream Mapping Report-Outs Current State Map (Putting It All Together) 80

VSM 001 Value Stream Mapping The Future State Map Practice Makes Perfect 81

VSM 001 Value Stream Mapping It’s Time to Practice • Please Review the Example Current State Map • We will Begin Drawing the Future State Map Shortly 82

VSM 001 Value Stream Mapping Opportunities in Containerization • Small Container Quantity • Increases Flexibility • Reduces Customer Fluctuation • Overall Benefit • Reduces Inventory Dollars 83

VSM 001 Value Stream Mapping Takt Time = Available Operating Time Pieces = 28, 800” - 1, 200” 500 pcs = 55. 2” per piece Sets Pace of Production to Match Customer Demand 84

VSM 001 Value Stream Mapping Effects of Container Size • Current State Example (takt time * container size) = min per container 60 seconds (55. 2” * 300 pieces) 60 seconds 276 minutes 60 minutes (4 hrs 36 m) 85

VSM 001 Value Stream Mapping Effects of Container Size • Future State Example (takt time * container size) = min per container 60 seconds (55. 2” * 25 pieces) = 23 min 60 seconds 86

VSM 001 Value Stream Mapping Container Size Small Containers = Improved Flexibility Delivery Frequency 87

VSM 001 Value Stream Mapping Fluctuation Caused by Container Size 88

VSM 001 Value Stream Mapping Fluctuation Caused by Container Size 89

VSM 001 Value Stream Mapping Opportunities in Delivery Pitch • Even Delivery Pitch • Drives Constant Takt Time • Reduces Fluctuation • Overall Benefit • Reduction in Inventory 90

Time between shifts Pick-Up (2, 500 pcs/truck) 7: 00 am Wednesday 7: 00 am Friday Truck 1 = 2, 760’ = 66. 24” Takt 460 min 460 min 400 min 460 min T W 60 min Truck 2 = 1, 840’ = 110, 400” 460 min M = 165, 600” Takt VSM 001 Value Stream Mapping Th = 44. 16” 60 min F 91

VSM 001 Value Stream Mapping Opportunities in Kanban • Pull System • Links Production to Customer Demand • Aids in Visual Control • Identifies Opportunities for Improvement • Overall Benefit • Improves Material Control • Prevents Overproduction • Reduces Inventory 92

VSM 001 Value Stream Mapping Pull System “Production” KANBAN “Withdrawal” KANBAN Customer Process Supplying Process Product Supermarket 93

VSM 001 Value Stream Mapping Selecting the Point of Pull P O P Process A Process B Process C Process D FLOW 94

VSM 001 Value Stream Mapping Opportunities in Leveling • Leveling Post • Reduces Customer Demand Fluctuation • Reduces Delivery Pitch Fluctuation • Pulls Product Based on Takt Time • Overall Benefits • Eliminates Scheduling • Levels Customer Demand 95

VSM 001 Value Stream Mapping Forecast Week 1 Part A 5300 Average 5000 Difference 300 2 4700 5000 -300 3 5200 5000 200 4 4800 5000 -200 Average 5000 96

VSM 001 Value Stream Mapping Customer Fluctuation 97

VSM 001 Value Stream Mapping Leveling Post Average 1000 Avail. Sec 55, 200 Takt Time 55. 2 Container Size 25 # Containers 40 98

VSM 001 Value Stream Mapping Opportunities in Takt Time Production • Takt Time Post • Produce to Takt Time • Enables Visual Management • Prevent Overproduction • Overall Benefits • Identifies Labor Opportunities • Lowers Inventory • Eliminates Scheduling 99

VSM 001 Value Stream Mapping Takt Time Post 6 1 st Shift 0 0 6 6 1 2 6 1 8 6 2 4 6 3 0 6 3 6 6 4 2 6 4 8 6 5 4 7 0 0 7 0 6 7 1 2 7 1 8 7 2 4 7 3 0 Part A 100

VSM 001 Value Stream Mapping Opportunities in the Work Units • Uptime • TPM • BOS Charting • Team Problem Solving • Overall Benefits • More Capable Processes • Employee Involvement 101

VSM 001 Value Stream Mapping Track Downtime and Improvement Activities on BOS Chart Key Measurable – Target – Trend Line Data Analysis – Pareto Improvement Activities Improvement Tracking 102

VSM 001 Value Stream Mapping Opportunities in and between Work Units • Continuous Improvement Tools • Standardized Work • Work Balance • Bottleneck Improvements • Overall Benefits • Adding Value/ Removing Waste • Improving Flexibility 103

Work Balance VSM 001 Value Stream Mapping Current State Sub-Assembly 2 Final Assembly 104

Work Balance VSM 001 Value Stream Mapping Future State Final Assembly 105

VSM 001 Value Stream Mapping Opportunities in and between Work Units • Pull System • Withdraw Only What you Need • Replenish What is Taken • Overall Benefits • Flexibility in Production • Prevents Overproduction • Reduces Inventory 106

VSM 001 Value Stream Mapping Pull System Assumptions: • • • Production Schedules Will Always Change Production Will Never Go According to Schedule It Is Human Nature to Overproduce Withdrawal Kanban Production Kanban Preceding Process Store New Product Following Process Needed Product 107

VSM 001 Value Stream Mapping Opportunities in and between Work Units • Changeover • Decrease Changeover Time • Increase # of Changeovers • Drive Small Lot Production • Overall Benefits • Flexibility in Production • Reduction in Inventory • Better Inventory Turns 108

VSM 001 Value Stream Mapping CHANGEOVER Work Unit_____ SHIFT_____ AVG. GOAL 18. 0 16. 0 14. 0 MINUTES 12. 0 10. 0 8. 0 6. 0 4. 0 2. 0 17 18 19 20 21 22 13 14 15 16 17 18 19 20 21 22 23 24 25 10. 0 10. 0 10. 0 25 16 12 24 15 11 23 14 10 12 9 11 10 8 9 7 8 6 7 5 6 4 5 3 4 2 3 1 2 13 LAST 1996 YTD MO 1 LAST MO YTD 1996 - DAY C/O #1 C/O #2 C/O #3 C/O #4 C/O #5 C/O #6 C/O #7 C/O #8 AVG. 16. 3 14. 7 13. 2 GOAL 18. 0 109

VSM 001 Value Stream Mapping 110

3 6 1 Game Board 5 Supply Table 2 VSM 001 Value Stream Mapping 4 5 4 2 1 Tool Storage Die Storage Dance Chart Example Paper Storage 111

VSM 001 Value Stream Mapping Opportunities in the Supplier Loop • Supplier Development • • Identify Key Suppliers Reduce Container Size Increase Delivery Frequency Kanban!!! • Overall Benefit • Inventory Reduction • Cost Reduction 112

VSM 001 Value Stream Mapping The Future State Map It is Time To Draw 113

Value Stream Mapping VSM 001 Value Stream Mapping Day 2 Value Mapping Stream 114

VSM 001 Value Stream Mapping Exercise 4: Customer Loop • Step 1 • Review Takt Time Calculation • Step 2 • Opportunities with Containerization • Effect of Container Time • Fluctuation due to Container Quantity • Future State Proposal for Container Quantity 115

VSM 001 Value Stream Mapping Exercise 4: Continued • Step 3 • Opportunities with Customer Pull Timing • Identify Delivery Pitch • Calculate Inventory Held Due to Pitch • Future State Delivery Frequency/Timing • Step 4 • Opportunities with Leveling • Calculate Leveling Post • Develop Point of Pull • Future State Leveling System 116

VSM 001 Value Stream Mapping Exercise 4: Continued • Step 5 • Opportunities in Takt Time Production • Determine Kanban Delivery Frequency to Cell • Future State Takt Time Post • Step 6 • Map the Future State Customer Loop 117

VSM 001 Value Stream Mapping Worksheet 1 Takt Time Calculation 1. Formula: Takt Time = Available Operating Time Pieces 2. Takt Time Results: 118

VSM 001 Value Stream Mapping Worksheet 2 Opportunities with Containerization 1. Effect of container time: 2. Fluctuation due to container quantity (Graph): 3. Future state proposal for container quantity 119

VSM 001 Value Stream Mapping Worksheet 3 Opportunities with Customer Pull Timing 1. Identify delivery pitch: 2. Calculate inventory held due to pitch: 3. Future state delivery frequency and timing: 120

VSM 001 Value Stream Mapping Worksheet 4 Opportunities with Leveling 1. Calculate leveling post: 2. Develop point of pull: 3. Future state leveling system: 121

VSM 001 Value Stream Mapping Worksheet 5 Opportunities in Takt Time Production 1. Determine kanban delivery frequency to the work unit: 2. Future state takt time post: 122

VSM 001 Value Stream Mapping Worksheet 6 Map the Future State Customer Loop 123

VSM 001 Value Stream Mapping Report-Outs Future State Map Customer Loop 124

VSM 001 Value Stream Mapping Exercise 5: Internal Loop • Step 1 • Are BOS Charts Being Used? • Identify the Main Causes of Downtime • What Steps Can We Take to Achieve Best-in-Class Levels of Uptime (97%)? 125

VSM 001 Value Stream Mapping Exercise 5: Continued • Step 2 • Identify Manual and Walk Time • Identify any Bottlenecks • Calculate Labor Requirements • Does this Labor Requirement Reflect what You Witnessed on the Line? • Do Opportunities Exist to Combine Work Units in the Value Stream Based on Labor Requirements? 126

VSM 001 Value Stream Mapping Exercise 5: Continued • Step 3 • Map the Future State Internal Loop 127

VSM 001 Value Stream Mapping Worksheet 1 Uptime % 1. Are BOS charts being used? 2. Identify the main causes of downtime: 3. What steps can we take to achieve Best-in-Class levels of uptime (97%)? 128

VSM 001 Value Stream Mapping Worksheet 2 Standardized Work 1. Identify manual and walk time: 2. Identify any bottlenecks: 3. Calculate the labor requirements: 4. Does this labor requirement reflect what you witnessed on the line? 5. Do opportunities exist to combine work units in the value stream based on labor requirements? 129

Worksheet 3 Map the Future State Internal Loop VSM 001 Value Stream Mapping 130

VSM 001 Value Stream Mapping Report-Outs Future State Map Internal Loop 131

VSM 001 Value Stream Mapping Exercise 6: Supplier Loop • Step 1 • Opportunities with Kanban • Are Parts Ordered Based on Usage? • Are Supplier Kanbans Being Used to Order Parts? • Are Move Cards Used to Deliver Raw Materials to the Work Units? • Step 2 • Opportunities with Delivery Frequency • Can Inventory be Reduced with an Increase in Delivery Frequency? 132

VSM 001 Value Stream Mapping Exercise 6: Continued • Step 3 • Opportunities with Containerization • Do Component Container Sizes Match Finished Goods Container Size? • Step 4 • Map the Future State Supplier Loop 133

VSM 001 Value Stream Mapping Worksheet 1 Kanban 1. Are parts ordered based on usage? 2. Are Supplier Kanbans being used to order parts? 3. Are move cards used to deliver raw materials to the work unit? 134

VSM 001 Value Stream Mapping Worksheet 2 Delivery Frequency and Containerization 1. Can inventory be reduced with an increase in delivery frequency? 2. Do component container sizes match finished goods container sizes. 135

Worksheet 3 Map the Future State Supplier Loop VSM 001 Value Stream Mapping 136

VSM 001 Value Stream Mapping Report-Outs Future State Map Supplier Loop 137

VSM 001 Value Stream Mapping Understanding the Future State Drawing the Map • Put Pencil to Paper!!! • Remember: • Start with the Customer • Include Material and Information Flows • Data Boxes!!! 138

VSM 001 Value Stream Mapping Report-Outs Future State Map (Putting Opportunities Together) 139

VSM 001 Value Stream Mapping Implementation Making the Future State a Reality 140

VSM 001 Value Stream Mapping Continuous Improvement Cycle • Plan • Developing the Improvement Plan • Do • Support the Implementation • Check • Analyze the Results • Act • Standardize the Process 141

VSM 001 Value Stream Mapping How Do We Implement? • Break Implementation Into Steps • Customer Loop • Internal Loop • Supplier Loop 142

VSM 001 Value Stream Mapping . . . How Do We Implement. . . • Develop Implementation Packet • Current State Map • Future State Map • Supporting Documentation (Standard Work Studies, etc. ) • Value Stream Plan 143

VSM 001 Value Stream Mapping Value Stream Plan • The Plan Visually Displays: • Step-by-step Implementation plan • Measurable Goals • Clear Checkpoints with Listed Deadlines, Ownership, and Named Reviewers 144

VSM 001 Value Stream Mapping Key Points for Planning • Produce to Takt Time • Eliminate Overproduction • Pull Product Based on Customer Demand • Kanban • Point of Pull • Leveling • Establish Continuous Flow 145

VSM 001 Value Stream Mapping Outline the Plan • For Each Value Stream Loop • Establish the Objectives • Determine the Measurable Goal 146

VSM 001 Value Stream Mapping Plant Level Objective Goal Reduce lead-time Measurable 9 Days to 4 Days 147

VSM 001 Value Stream Mapping Customer Loop Goal Measurable Decrease Container Quantity 300 Pieces to 25 Pieces Increase Delivery Frequency 2 per Week to 1 per Day Finish Goods Pull System Inventory 1. 75 Days of F/G 148

VSM 001 Value Stream Mapping Internal Loop Goal Measurable Increase Uptime % Best in Class - 97% Establish Continuous Flow (0) Inventory Between Work Units Reduce Changeover Time (30) to (15) Minutes Internal Pull System Production/Move Cards 149

VSM 001 Value Stream Mapping Supplier Loop Goal Measurable Implement Kanban Supplier Cards Increase Delivery Frequency 4 times per Day Decrease Container Quantity 300 Pieces to 25 Pieces 150

Yearly Value Stream Plan Date: Champion: Plant-Level Objective Value Stream Loop Value Stream Objective Goal (Measurable) Specific Scheduling Deadlines (on Monthly Basis) VSM 001 Value Stream Mapping Product Family: Owner Reviewer and Review Dates 1 2 3 4 5 6 7 8 9 10 11 12 1 Customer 2 Internal 3 Supplier 151

Date: 10/29/99 Champion: Bill Green Plant-Level Objective Yearly Value Stream Plan Value Stream Loop Value Stream Objective Goal (Measurable) Loop Reduce Finished Goods Inventory 1 Customer 2 Internal 3 Supplier Specific Scheduling Deadlines (on Monthly Basis) VSM 001 Value Stream Mapping Product Family: Sub-Muffler Owner Reviewer and Review Dates 1 2 3 4 5 6 7 8 9 10 11 12 Dec Cont. Qty. 300 to 25 Inc. Del. Freq. 2 /wk to 1/D FG Pull System 1. 75 Days Finished Goods Inc. Uptime % BIC 97% Cont. Flow (S/A 2 to F/A) 0 Inv. Between work units Reduce C/O Time 15 minutes Int. Pull Sys. Prod. Move Cards Kanban Supp. Cards Inc. Del. Freq. 4/Day Dec. Cont. Qty. 300 to 25 Gold Team Joan Smith 2/28/00 4/15/00 5/29/00 Blue Team John Doe 5/30/00 7/30/00 8/30/00 Red Team Jim Smith 9/30/00 10/15/00 12/30/00 152

VSM 001 Value Stream Mapping Exercise 7: Value Stream Plan • Step 1 • Develop Value Stream Plan • Step 2 • Discuss Roadblocks to Implementation • How Do We Eliminate Roadblocks 153

Yearly Value Stream Plan Date: Champion: Plant-Level Objective Value Stream Loop Value Stream Objective Goal (Measurable) Specific Scheduling Deadlines (on Monthly Basis) VSM 001 Value Stream Mapping Product Family: Owner Reviewer and Review Dates 1 2 3 4 5 6 7 8 9 10 11 12 1 Customer 2 Internal 3 Supplier 154

VSM 001 Value Stream Mapping Report-Outs The Value Stream Plan (Putting Ideas Into Action) 155

VSM 001 Value Stream Mapping The Value Stream Team Prepare the organization to see opportunities for improvement and turn those opportunities into reality 156

VSM 001 Value Stream Mapping Identify the Value Streams • End of the Chain • Completion of the final product • Next move is to the Customer • Move Upstream • Identify the internal suppliers • Final step is supplied parts 157

VSM 001 Value Stream Mapping Choose the Model • Practice Makes Perfect! • Begin with the less complicated • Move to the more difficult 158

VSM 001 Value Stream Mapping Establishing the Team • Selecting the Team • Who are the people in the value stream • What type of resources are required • Function of the Team • Analyze Value Stream Together • Hold Frequent Meetings to Monitor Progress • Eliminate Obstacles Together 159

VSM 001 Value Stream Mapping Transfer the Knowledge • Start the Process • Check Understanding • Current State Map • Clear Up Confusion • Future State Map • Get Commitment • Develop the Plan 160

VSM 001 Value Stream Mapping Things to Remember • Benchmark the Current Condition • Dedicate the Resources • Monitor the Progress • Evaluate the Results • Celebrate Success • Continue the Pursuit of Perfection!!! 161

VSM 001 Value Stream Mapping Be Impatient! 162