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Ananth VSM Guide

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Thank You
Thank you for downloading this Ebook. We are sure that this book would
add tremendous value to you in terms of providing practical knowledge and
implementation tips on various lean tools.
We recommend you to:
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Why this Ebook?
There are so many websites, books, videos on Lean manufacturing in the internet.
Then why we have created this Ebook?
1.
2.
3.
Easy to understand & Less Jargons - We have created this book with a
simple idea of explaining Lean in a simple and easy way and touch more than
1,00,000 people.
Implementation Tips: The existing resources do not provide an in-depth /
Step by Step approach of the Implementation Procedure. i.e. How do I start
implementing Lean in my company?
Holistic Approach: The existing resources are focused on explaining the
Lean Tools in bits and pieces. Except for some of the well-known books
written on Lean, only a very few articles discuss about the holistic philosophy.
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Jargons
Practical Tips for
Implementation
Holistic
Approach
Audience for this Ebook
If you belong to any of following categories of people, this book is for you.
Management
Representatives
This Ebook would help you in understanding the lean philosophy and tools on a
holistic manner. It helps you in spreading Lean in your company. You can use this as
a training material for people.
Shop Floor
Engineers /
Supervisors
This Ebook would help in creating a basic understanding for you on Lean tools and
philosophy. Would be a useful tool for training your team members. Would help in
implementing projects and Career Growth
Second Gen
Entrepreneurs
This Ebook would work as a Guide for you to focus on the implementation of Lean in
your company. It throws light on the common challenges companies face during
implementation and ways to overcome them
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About me
I am the Managing Partner and Principal Consultant of
Hash Management Services LLP, a boutique business
advisory firm working with manufacturing companies in
implementing Lean Manufacturing Initiatives.
Email: pananth@hashllp.com
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Linkedin: ananthpalaniappan
Twitter: pananth
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About me
Over the last 10 years, we had worked with more than 100
companies in helping them in the Lean Journey and had
trained more than 10,000 professionals on the Lean and
related topics. Trained over 1500 people in the last 4 months
through Webinars
Email: pananth@hashllp.com
Linkedin: ananthpalaniappan
Twitter: pananth
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Some of our clients are VKC Group, Venus Water Heaters,
Paragon Footwear, JK Tyres, Amaron Batteries, Farida Group,
etc.
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About me
We help in implementing Continuous Flow
Production, 5S, Single Minute Exchange of Dies
(SMED), PokaYoke, Load Levelling, Kaizen, Kanban
and other Lean Tools.
Email: pananth@hashllp.com
Linkedin: ananthpalaniappan
Twitter: pananth
www.hashllp.com
Ananth holds a B.E. (Mech) degree and a PGDM in
Marketing and Operations from IFMR. Earlier, he had
worked as a Senior Engineer in Titan Industries and
as a Consultant at Deloitte’s Strategy and Operations
Practice.
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Results and Testimonials
0
2
0
t
h
p
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g
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yr
C
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f
o
s
a
H
M
h
2
,
P
L
L
s
1. Reduced the Change
over
time
by
e
c
i
v
more than r50%. From 25 mins to
e
S
less than
11 mins
t
n
e
m
e
g
2.
Won the Best TPM project a
an
Awarded in Japan
3. More than 20 Kaizen implemented
in 3 days
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Results and Testimonials
0
2
0
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p
o
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i
yr
C
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f
o
s
a
H
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h
2
,
P
L
L
1. Reduced the Change
over
time
s
e
c
i
from 40 mins
to less than 20 mins
v
r
e
S
t
n
2. Identified
the NVA in European
e
m
Machinery
and
improved
the
e
g
a
an output by 10%
3. Reduced Transportation by
creating a Continuous Flow
Production
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Results and Testimonials
0
2
0
2
,
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1. Improved Productivity
by
30%
e
c
i
v
r
t
h
g
i
yr
f
o
s
a
H
M
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e
S
2. Worked
with their vendors to
t
n
e
improve
their output by more than
m
e
g
40%
a
an
3. Reduced Setup time in their EVA
machine to less than 20 mins
(from more than 1 hour)
p
o
C
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My Mission
Our Mission:
1. Work with More than 100 Companies per year on
implementing Lean
2. Train More than 1 Lakh people on Lean
Manufacturing every year
Email: pananth@hashllp.com
Linkedin: ananthpalaniappan
Twitter: pananth
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3. Touch More than 1 Million people through Social
Media (Youtube, LinkedIn, Facebook, etc.) every
year
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Contents of this Ebook
1. Work Vs. Waste
2. Seven Wastes & the Biggest Poison
3. Introduction to Value Stream Mapping
4. Data to be collected for VSM
5. Creating Current State VSM
6. Ten Important Concepts
7. Seven Steps to create Future State VSM
8. Conclusion
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1. Work Vs. Waste
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Work Vs. Waste
Work = Physical or Chemical Change in the Product
A Process that physically or chemically
transforms / changes / shapes a product
or service which is eventually sold to a
customer.
In other words, the activities which increase
the value of a product is called Value
Added (VA) activity for which the customer
will be willing to pay for.
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Work Vs. Waste
Waste = No Physical or Chemical Change to the Product
A Process that takes time, resources,
space and effort but does not add any
value to the product or service, for which
the customer will not be willing to pay
eventually affecting the profit margin of the
company. NVAs are also called as Wastes.
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Work Vs. Waste
More than 95% of the time spent inside a factory is Waste
All companies have NVAs, Studies show
WORK
5%
that in a typical manufacturing unit, VA time
constitutes to less than 5% of the total lead
time.
We cannot eliminate all the NVAs, some of
them can be eliminated and many of them
can be reduced.
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WASTE
95%
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Work Vs. Waste
Example: Consider a Batch production in a Stamping
operation (Batch size 1000 pieces)
In this Stamping, Operation, the Value Added time is just the 1
second required for the Punch and Die to stamp the product.
But once the activity is done the product waits in the bin for
the remaining 999 pieces, before moving to the next
operation.
So, in this case, the Work is 1 Second (stamping time) and
the Waste is 999 seconds (waiting time)
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2. Seven Wastes
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Seven Wastes (in Muda)
1. Transportation
1
2. Inventory
2
3. Motion
4. Waiting
3
4
5
5. OverProduction
6. OverProcessing
6
DEFECT
7. Defects
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7
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1. Transportation
Transportation is moving the product from one place to another. In other
words, transportation does not add value, but only changes the location.
Yes, the product has to be transported from one machine to another and
from one section to another. It is not possible completely remove the
transportation waste, However the transportation can be reduced through
effective layout.
Examples of Transportation:
•
•
•
Conveyors
Forklifts
Movement between shops
How to identify this waste:
•
•
•
Multiple storage of materials
Multiple movement of materials
Poor facility layout
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2. Inventory
Inventory is the stock that is present in the company. You may be
thinking, How can it be a waste?
When the material is stored as inventory, there is no transformation
that happens in the product. So it is considered as a waste.
Inventory can be classified into 3 types. Raw Materials (RM), WorkIn-Progress (WIP) and Finished Goods (FG).
We consider WIP to be the biggest enemy of Lean (we would explain
this in the later slides)
Examples of Inventory:
•
•
•
Too much WIP in the shop floor
Large warehouse to store RM and FG
Strategic purchase of RM
How to identify this waste:
•
•
•
High Set up times and high WIP in shop floor
Long lead times for engineering change
Long supply channels / Lead times of purchased products
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3. Motion
Any movement of people, that does not add value to the product. In
other words operator moving to pick or place a component does not
add any value to the product. Similarly, bending/ leaning to pick a
product frequently causes fatigue to the people and can reduce the
productivity. Motion waste can be reduced by placing the components/
tools at right place which reduces the operator movement.
Examples:
•
Materials/Tools kept at distance making the operator stretch/ bend
How to identify this waste:
•
•
•
•
Looking for tools and parts
Excessive reaching or bending
Material too far apart
Poor cell/process layout
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4. Waiting
Idle time in which no Value Addition takes place to the product. People/
machine/ Material waiting for the other is a waste. Some common examples
are Machine break-down, Changeover time, Set-up time etc.
Examples:
•
•
•
People waiting for machines or materials
Machine waiting time - Absenteeism, No Raw Materials
Material waiting time - breakdown / set-up change
How to identify this waste:
•
Person watching machines run/ waiting for machines to complete the
process
•
•
Materials placed in bins /storage racks
Machines halted during setup, Changeover or breakdown is a waste
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5. Over Production
Producing more than what the next process requires, Producing at a faster
pace than needed.
Examples:
•
•
Stock in between process (WIP)
Excess Capacity machines
How to identify this waste:
•
•
•
•
Unbalanced material flow
Producing ahead of demand
Large lot sizes or Batch processing
Inventory stockpiles
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Overproduction locks the
Working capital of the unit
6. OverProcessing
Efforts / Activities that are added to compensate for the inefficiencies in the
operations. These activities do not add any value, but looks like Value Adding
activities. It’s very difficult to identify them.
Examples:
•
•
•
Multiple counting and packing of the products in between stages
Multiple inspections
Numbering / in individual parts
How to identify this waste:
•
•
Multiple Stages of Inspections
•
•
Redundant approvals, Extra copies and excess information
Barcoding / numbering / identification systems which do not reach the
customers
Inefficient policies and Procedures
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7. Defect
Producing defective components is a waste. The defective product has to
be reprocessed again to meet the customer requirements which takes
time and effort.
Examples:
•
•
•
Warranty replacements
Rework
Scrap
DEFECT
How to identify this waste:
•
•
Extra floor space, tools & equipments for Defects handling
Extra man power to inspect, rework and repair
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The Biggest Poison in every
company?
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WIP is the Biggest Poison
WIP hides high set up times, poor quality, high
transportation, waiting and high breakdown of machines; all
the wastes we had read earlier.
Imagine the overall operations as a ship and there are so
many wastes (rocks) at the bottom of the sea. The water
level is the WIP. If the water level is high, the ship will sail
without hitting the rocks. But when the water level is low,
the ship starts to get hit by the rocks.
h
s
This is the most critical phase, as many companies revert to a
H
f
the earlier production methods (of having high WIP)
o
t
h
g
i
So the problems continue to remain forever… yr
p
o
C
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a
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WIP
High
Setup time
F
Br req
ea ue
kd nt
ow
ns
High ate
r
t
c
e
Def
Reducing the WIP, solves Problems
Eliminating WIP means, there is no choice but to work on
the wastes and reduce / eliminate the wastes.
When the WIP is reduced, all the major issues in
C
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h
ig
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y
p
o
f
o
t
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s
a
H
a
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n
the factory would ‘show up’.
t
n
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c
i
rv
s
e
,
P
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0
2
0
2
e
S
F
Br req
ea ue
High
kd nt
ow
Setup time
ns
High ate
r
t
c
e
Def
Reducing the WIP, solves Problems
Pressure to revert back to old ways. Lean Fails…
There would be pressure from all the sides to revert to the old way
of working (with high WIP). Don’t revert to the old ways of working.
Now these issues have to be addressed one by one, so that the
productivity improves.
One of the primary reason lean initiatives fail across many
organizations is because, having more WIP means there is no
pressure for the people to solve the issues. So they would
continue to work in the same way and no results would be achieved
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Magic Pill = Continuous Flow
Creating Continuous Flow (Single Piece Flow) would reduce
WIP
Single Piece Flow (Small batch Production) would eliminate WIP
which would result in all the wastes getting eliminated / reduced.
For e.g. Transportation is reduced as each piece needs to be moved
immediately to the next operation. So the processes have to be set
close to each other (layout has to be modified). Similarly Change-over
time has to be reduced as no WIP means the entire line will stop
during change over.
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Continuous Flow is
the Foundation of all
Lean Initiatives
All lean tools depend on Continuous Flow
Without Continuous Flow, all other tools fail
All the lean tools are designed to work better along with Continuous
Kanban
Kaizen
Flow system.
Value
Stream
Mapping
If there is no flow of the products, Wastes would start
e
ic
v
r
PokaYoke
e
S
t
en
accumulating.
SMED
E.g. Change-over time reduction would be possible by Single
Minute Exchange of Dies (SMED). However, if there is no flow, and
high WIP, there is no pressure for the teams to reduce the change
over time. They can take as much time as they want for changeover.
But if there is less WIP, the entire line would stop during the change
over. So there is a pressure for the team to reduce the change-over
r
y
p
h
ig
time. In this case, SMED cannot be skipped and would be followed
automatically
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o
C
5S
n
a
Line
Balancing
TPM
s
a
H
f
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M
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g
a
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,
P
L
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s
Continuous Flow
TQM
0
2
0
2
3. Introduction to Value Stream
Mapping (VSM)
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What is a Value Stream
All the activities inside a factory (from Raw Materials to
Finished Goods)
Before learning about Value Stream Mapping, let us discuss about Value Stream. It is all
the activities (both VA and NVA) currently required to complete a product. i.e., from the RM
stage to FG stage.
RM
I Operation
II
Operation
III
Operation
Value gets added at each stage
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FG
Value Stream Mapping (VSM)
Value Stream Mapping(VSM) is a pencil and paper tool which maps the entire process
(both VA & NVA) currently required to bring a product to the customer. Unlike other tools
VSM captures both Material flow and Information flow of a process. It helps in identifying
the source of Non Value Adding(NVA) activities in a Value stream.
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Value Stream Mapping (VSM)
3 Portions in a Value Stream Map
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Value Stream Mapping (VSM)
1. Material Flow
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Value Stream Mapping (VSM)
2. Information Flow
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Value Stream Mapping (VSM)
3. Ratio of CT time to Lead Time
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Some Guidelines for VSM
For mapping the value stream, the initial step is to
identify the Product Family you want to focus on.
The next step is to create the VSM for that product
family. We can call this VSM as Current State VSM,
because we are mapping the existing state.
This VSM is the baseline for the future and the
improvement projects would be planned based on
the current state VSM. The team can then create a
Future State VSM to understand the changes that
would be done and the benefits of the improvement
projects.
Product family
Current State VSM
Future State Map
Action Plan for
Implementation
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Product family
What is a Product Family?
Assembly Steps & Equipments
A Product family is a group of products that
pass through similar processing steps and
over common equipment in your downstream
process. In simple words, products having
same operations
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PRODUCTS
Select a product which goes through most
of the processes in your unit. In many
cases this would be the high Volume / Value
product in your company. Select that product
to start creating the VSM.
A
1
2
3
X
X
X
4
X
5
6
X
X
X
X
X
X
7
8
A Product
Family
B
X
X
X
C
X
X
X
D
X
X
X
X
X
E
X
X
X
X
X
X
F
X
X
X
X
X
G
X
X
X
X
X
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Current State Map
What is a current state map?
Current state map, as the name
implies it maps the existing processes
(for a product) which happens inside
the plant.
Process level
Single plant Level
It is advisable to work in a single plant
level(at the initial stages) and later
create VSM across multiple units
Multiple plants
Across companies
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Icons used in VSM
Material Icons
Represents
Notes
C
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h
ig
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o
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Data box
0
2
This box indicates that a process, where the
flow is continuous(material is flowing). A
separate box to be drawn for every
disconnected operations.
Manufacturing Process
Outside sources
,
P
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0
2
e
m
e
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S
This icon is used to indicate the customers,
suppliers and outside manufacturing processes
h
s
a
H
a
M
Used to record the information regarding a
manufacturing process, department, customer
etc.,
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Icons used in VSM
Material Icons
Represents
Notes
Truck shipment
Movement of
p
o
CProduction material by
PUSH
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a
M
t
n
e
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g
a
n
h
s
a
H
h
ig
r
y
0
2
Inventory available, both in terms of Count and
Time (Or days)
Inventory
f
o
t
s
e
,
P
L
L
0
2
c
i
rv
e
S
Note the frequency of shipments
Material that is produced and moved forward
before the next process needs it, usually based
on a schedule
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Icons used in VSM
Material Icons
Represents
Notes
0
2
0
2
,
P
Movement of Finised
L
Frequency of shipments and the quantities
L
Goods to the customer
s
e
c
i
v
r
e
S
t
n of parts that is used to
A controlled inventory
e
Supermarket
m
schedule production
at an upstream process
e
g
a
n
a
M
h
s
a
Withdrawalf H
Pull of materials usually from a supermarket
o
t
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g
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r
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p
o
Indicates to limit quantity and ensure FIFO flow
C
First-In, First-Out (FIFO)
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of material between process, Maximum quantity
Sequence
should
be
noted.
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Icons used in VSM
Information Icons
Represents
Notes
Manual Information
flow
Electronic Information
flow
f
o
t
s
e
,
P
L
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p
o Information
C
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Ex: Production schedule or Shipping schedule
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Ex: Information through Electronic data
exchange . E.g Mails, SAP, Oracle software
a
M
h
ig
r
y
0
2
Describes an Information flow
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Icons used in VSM
Information Icons
Represents
Notes
Production Kanban
(dotted line indicates
Kanban Path)
h
s
a
H
h
g
Withdrawal
Kanban
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2
The “One-per-Container” Kanban. Card or
device that tells a process how many of what
can be produced and gives permission to do so.
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S
Card or device that instructs the material
handler to get and transfer parts (i.e., from a
supermarket to the consuming process)
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Icons used in VSM
Information Icons
Represents
Notes
0
2
0
2
,
P
Highlights improvements needed at L
specific
L
“Kaizen Lightning
processes that are critical to achieving
the
s
e
c
Burst”
Value-stream vision. Can be used
to plan Kaizen
i
v
r
Workshops
e
S
t
n
e
m
e
g
a
n
a
Buffer or Safety stock
“Buffer”
or “Safety stock” must be noted
M
h
s
a
H
f
o
t
h
g
i
r
y
p
o
Represents a person viewed from above
C Operator
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4. Data to be collected
for VSM
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Data to be collected in VSM
1. Cycle Time (C/T) - time gap between 2 pieces from the line - in seconds (Note down the value added and
Non- Value added time Separately)
2. Changeover time (C/O) - Time to switch over from producing one product type to another - in seconds
3. Number of people - Number of people required to operate the process - in numbers
4. WIP before and After the process
5. Available working time - The available working time per shift at that process(minus the break time, meeting
time & Cleaning time) - in seconds
6. EPEx (Every Part Every___) - Measure of Production batch size
7. Machine up-time - Actual machine working time - in percentage
8. Pack size/ Bin size - Volume of the bin or the quantity contained in the bin
9. Rejection% & rework %
10. Transportation - If there is transportation of material, note the distance travelled
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Some Lean measurements
Material Icons
Cycle time (C/T):
VA Time
,
P
L
L
0
2
How often a part or product actually is completed by a process. Also the
time it takes an operator to go through all of their work elements before
repeating them.
e
S
c
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rv
s
e
t
n the product in a way
Time of those work elements that actually transform
e
that the Customer is willing to pay for. em
g
a
n
a
M
h
s
a
H
Lead Time (L/T):of
t
The time it takes
one piece to move all the way through a process or a
h
g
i
value stream,
from start to finish. Envision timing a marked from part as it
r
y
p
moves
from beginning to end.
o
C
Value-Adding Time (VA):
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0
2
Guidelines
How to collect data for VSM
• Start with a product family that’s getting produced in a single plant
• Always collect current state information while walking along the actual pathways of material and
information flows yourself
• Begin with a quick walk along the entire door-to-door value stream - to have an idea
• Begin at the Delivery Stage and work upstream
• Bring your own stopwatch and do not rely on standard times or information given by others
• Map the whole value stream yourself - don't do in bits or outsource
• Always draw by hand in Pencil - No computers please
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Guidelines
A few mapping tips
•
Stand at a distance from the operator - do not disturb him/her. Tell them that you are just
observing and not to be nervous. let them continue at their own pace
•
Do not start measuring the time immediately. Observe the process in detail for at least 5
cycles. What is the work happening in the process?
•
After 5 cycles, note the sub-activities in the process - loading, unloading, switching on the
machine, cleaning the burr, etc. - note it down in the sheet
•
•
After another 5 cycles - start measuring the time - this is the total cycle time
•
Totally - 20 Cycles for 1 operation
After another 5 cycles - Measure the time of the Value Added activity (physical/chemical
change in the product)
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5. Current State VSM
Step 1: Material Flow
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Current State Map
How to draw the Customer requirement?
Get yourself with a A3 paper and walk across
the entire process flow to under stand the
process to have an idea of the process. Now
start creating the map by drawing an Factory
icon and note down the customer
requirements(Month requirement, Variant,
Shipment schedule and Bin/ tray quantity) in
the Data box icon
Data given in the right side is an example of
how to draw the data
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Factory
Data box
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XYZ
Company
15000 nos
10000 - LH
5000- RH
25 pieces/ tray
Current State Map
How to draw the Process box?
Example
Now start observing the process from the final operation and
start moving upstream. Note down the data(Cycle time,
Changeover time, No. Of operators, No. Of machines, Uptime,
Shift time, No. Of Shifts) for each process in the process box.
A Process box indicates a process or an area of material flow
(ideally a continuous flow). Example, an assembly process
with 3 activities done by 1 person in a table, would be drawn
as 1 box. But if the product moves to the next table, it would
be drawn as another box.
Assembly #1
Process box
1
C/T = 34sec
Data box
Material flow to be drawn from Left to Right according to the
Process flow sequence, not based on the layout
C/O = 45mins
Uptime = 100%
2 shifts
27600 sec. avail.
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Current State Map
How to represent Inventory between stations?
As you move past the processes you may
notice inventories piled up between
processes. Capture the inventory locations
with the inventory triangle(Shown right side) in
between process and Note down the
inventory quantity below each triangle.
If the inventory is in more than one place,
then draw a triangle for each location.
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I
3150 pieces
2 days
XYZ Assembly
company
15000 pieces/month
- 10000 “L”
- 5000 “r”
A sample of how process are to
be indicated in the VSM
Tray - 25 pieces
2 shifts
PRESS
I
WELDING 1
I
WELDING 2
I
ASSEMBLY 1
I
ASSEMBLY 2
I
SHIPPING
I
200T
Coils
8 days
Staging
5000L
3000R
1
900L
700R
1
1200L
700R
1
1000L
600R
1
2500L
1500R
1
C/T = 1.5
C/T = 50 Seconds
C/T = 40 Seconds
C/T = 30 Seconds
C/T = 60 Seconds
C/O = 50 minutes
C/O = 14 minutes
C/O = 12 minutes
C/O = Nil
C/O = Nil
Uptime = 85%
Uptime = 85%
Uptime = 90%
Uptime = 95%
Uptime = 95%
27,600 sec
2 Shifts
2 Shifts
2 Shifts
2 Shifts
EPE = 1 week
27,600 sec
27,600 sec
27,600 sec
27,600 sec
Material Flow
Current State VSM
Step 2: Information Flow
& the CT/LT ratio
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Current State Map
What are the other data that are to be collected?
Note down the other data such as,
•
Shipment from supplier
•
Information flow from the customer
•
Information flow to the production
processes & supplier
•
Pull or Push movement between the
process
Information Flow
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Current state map
How to calculate the Lead time and processing time?
Draw a timeline under the process boxes and
inventory triangles to compile the production
lead time.
Lead time
Lead time (in days) for each inventory triangle
can be calculated as
Inventory Quantity
Lead time (in days)
Daily Customer req.
2 days
90 Sec
Adding up all the lead time gives the Total
production lead time of the process.
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Value Adding time
PRODUCTION
CONTROL
1/2/3 month
Forecasts
45 days
forecast
XYZ Steel
Company
Daily
requirement
ERP
Week
requirement
XYZ Assembly
company
15000 pieces/month
- 10000 “L”
- 5000 “r”
Tray - 25 pieces
750 ft coils
Information Flow
2 shifts
Week schedule
Daily
schedule
2x week
2x Daily
WELDING 1
PRESS
I
I
5000L
3000R
1
C/T = 1.5 Seconds
900L
700R
1
C/T = 50 Seconds
Material Flow
ASSEMBLY 1
I
I
200T
Coils
8 days
WELDING 2
ASSEMBLY 2
I
I
Staging
1200L
700R
1
1000L
600R
1
2500L
1500R
1
C/T = 40 Seconds
C/T = 30 Seconds
C/T = 60 Seconds
C/O = 50 minutes
C/O = 14 minutes
C/O = 12 minutes
C/O = Nil
C/O = Nil
Uptime = 85%
Uptime = 85%
Uptime = 90%
Uptime = 95%
Uptime = 95%
27,600 sec
2 Shifts
2 Shifts
2 Shifts
2 Shifts
EPE = 1 week
27,600 sec available
27,600 sec available
27,600 sec available
27,600 sec available
8 days
10.6 days
1.5 Seconds
2 days
50 Seconds
SHIPPING
2.1 days
2.5 days
40 Seconds
30 Seconds
CT Vs Total Lead Time
5.3 days
60 Seconds
30 days
181.5 seconds
PRODUCTION
CONTROL
1/2/3 month
Forecasts
45 days
forecast
XYZ Steel
Company
Daily
requirement
ERP
Week
requirement
XYZ Assembly
company
15000 pieces/month
- 10000 “L”
- 5000 “r”
Tray - 25 pieces
750 ft coils
2 shifts
Week schedule
Daily
schedule
High
WIP
High
Transportation
WELDING 1
PRESS
I
I
P
r
oo
5S
5000L
3000R
1
900L
700R
1
ASSEMBLY 1
I
I
200T
Coils
8 days
WELDING 2
ASSEMBLY 2
I
I
Staging
1200L
700R
1
1000L
600R
1
2500L
1500R
1
C/T = 1.5 Seconds
C/T = 50 Seconds
C/T = 40 Seconds
C/T = 30 Seconds
C/T = 60 Seconds
C/O = 50 minutes
C/O = 14 minutes
C/O = 12 minutes
C/O = Nil
C/O = Nil
Uptime = 85%
Uptime = 85%
Uptime = 90%
Uptime = 95%
Uptime = 95%
27,600 sec
2 Shifts
2 Shifts
2 Shifts
2 Shifts
EPE = 1 week
27,600 sec available
27,600 sec available
27,600 sec available
27,600 sec available
8 days
10.6 days
1.5 Seconds
2 days
50 Seconds
SHIPPING
2.1 days
2.5 days
40 Seconds
30 Seconds
5.3 days
60 Seconds
30 days
181.5 seconds
6. Ten Important Concepts
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1. Takt Time
Takt time is the customer requirement rate of a product. Takt time is calculated by dividing
the customer demand per day to available working time per day(in seconds)
Available working time per day
Takt time
Customer requirement per day
“Takt time is the Heartbeat of the Line”
For example: If the customer demand rate is 500nos per day for a product and if the
company works 1 shift per day, then
Available time - (8hours *60minutes *60seconds) *90% efficiency = 25900 seconds
Takt time = 25900/500 = 51.84 sec
i.e., every 51.84 seconds the line should produce 1 product
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2. Bottleneck Activities
What is a Bottleneck operation?
Bottleneck operation is the process for which the cycle time of the process is higher than
the Takt time. There can be more than one bottleneck operation.
c
i
rv
Consider the takt time for the following process as 51.8 seconds, then
Process A
Process B
a
M
C/T = 40 sec
C
h
ig
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y
p
o
f
o
t
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m
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g
a
n
t
n
e
S
C/T = 75 sec
h
s
a
H
Bottleneck
operation
All the improvement projects should be done on the bottleneck operation.
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s
e
,
P
L
L
0
2
0
2
Process C
C/T = 50 sec
Bottleneck Activities
•
Output of the line is determined by the Bottleneck Activities
•
To improve the line’s output, cycle times of the bottleneck activities have to be reduced (to
less than take time requirements)
•
Do NOT reduce the cycle times of Non-Bottleneck Activities
•
•
It will not have any impact on the overall output of the line
Even a small reduction of cycle time in the bottleneck activity would have a big impact on the
output of the line
•
For E.g in our previous example, the current output is 25900/75 = 345 pieces. If the cycle
time is reduced to 65 Seconds, the output of the line will be = 25900/65 = 398 pieces
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3. Kaizen
Kaizen = Continual Improvement
Kaizen means continual improvement through small changes. Kaizen/ Focussed
improvement is the process improvement in strategically important areas (Bottleneck
operation).
v
r
e
s
e
ic
Improvement is like sunlight Lot of energy, but dispersed(Wasted). Focussed
improvements concentrates the energy (Little energy), but concentrated and aligned
enables significant(Large) improvements.
m
e
g
a
n
t
h
Improvement
C
p
o
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g
i
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y
f
o
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s
a
H
n
e
S
t
a
M
Focussed
Improvement
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0
2
0
2
,
P
LL
Kaizen = Focused
Improvement done in
the Bottleneck
Activities
What is Kaizen?
• Process Improvement
•
in Strategically Important Areas (bottleneck
Operations)
•
Significant Improvements
• Sustainable Improvements
•
Speedily Executed Improvements
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4. Line Balancing
What is Line Balancing?
The cycle times of the various processes vary and this creates Waiting and OverProduction
inside the line. To smoothen the output of the line, Line Balancing is necessary.
“Line balancing is optimising the workload across all processes in a cell or value stream
to remove bottlenecks and excess capacity”
Line balancing can be done by observing the process for their work elements (VA time vs. NVA
time in the process) and doing Kaizen in the process.
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Line Balancing
Example
0
2
In this example, there are 4 processes.
0
2
Cycle times of processes should not vary
,
P
more than 10%
L
L
s
e
c
i
65 erv
S
t
n
e
53
m
e
g
a
n
Similarly D takes only 26 sec, whereas C
takes 53 sec to complete 1 piece. So D would
be “Waiting”.
of
Line Balancing should be done in such a way
that the cycle times of all operations are
almost equal (less than 10% variation)
t
h
g
i
r
y
a
M
Cycle time
Cycle time of A is only 30 seconds, whereas
B takes 65 seconds to complete 1 piece. So
there would be WIP piling between A and B
(Over Production).
70
h
s
a
H
30
26
p
o
C
A
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B
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C
D
Line Balancing
What is Line Balancing?
Combine A and D so that 1 operator becomes free. Create
a cell concept where B and C would work independent
and Activities A and D would be done by 1 person
70
65
Some ways of Line Balancing:
2.
3.
h
s
Break the high cycle time activity into 2 or more
a
H
operations
f
o
t
h
Combine 2 or 3 low cycle time operations
g
i
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y
p
o
C
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a
M
a
n
e
g
e
m
53
Cycle time
1. Focus on the real VA time inside the process. Try to
remove the loading, unloading, tool travel time,
increase the machine speed, increase the depth of cut,
etc.
t
n
e
S
c
i
rv
s
e
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,
P
L
L
0
2
0
2
56
30
26
B
C
A&D
5. Supermarkets
Fixed Quantity Shelf for storing materials
A Supermarket in lean manufacturing is similar to a
conventional supermarket, where a predetermined
quantity will only be allowed to be stored.
Wherever continuous flow is not possible (Very fast
process, Supplier is very far away, one process
serving multiple product lines, etc), Super market
system can be practiced. E.g. a conventional heat
treatment oven operating in Batch Production. You
cannot operate it in single piece flow. So, you may
want to create a supermarket before the oven.
h
s
a
H
f
o
t and is
The supermarket icon is open on the Lefthside
g
i
denoted on the supplying process. This
is because
r
y process.
the super market belongs to Supplying
p
o
C
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a
M
e
m
e
g
a
n
t
n
Supermarket icon
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0
2
Quantity stored in the
supermarket is FIXED.
Once the quantity is
available, the previous
process stops producing
c
i
rv
e
S
s
e
,
P
L
L
0
2
6. Kanban
What is a Kanban?
,
P
L
Kanban is a visual stock management system. It is used to maintain the inventory level. A L
s
signal is sent to produce when the product is consumed through a card/ signboard/ visual
e
c
i
indicator.
v
r
e
S
A “Production” Kanban triggers production of parts, while a “withdrawal” tkanban is a
n
e
shopping list that instructs the material handler to get and transfer parts.
m
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g
a
n
a
M
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s
a
H
f
o
t
h
g
i
r
y
p
o
Production
Withdrawal Kanban
C Kanban
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0
2
0
2
Supermarket and Pull System
C
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h
ig
r
y
p
o
f
o
t
h
s
a
H
a
M
e
m
e
g
a
n
t
n
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e
S
c
i
rv
s
e
,
P
L
L
0
2
0
2
7. Pacemaker Process
Send the Production Plan (Schedule) to the Pacemaker
0
2
0
2
,
In batch processing, production scheduling has to be done at various levels. When using a P
L
Pull system, you will typically need to schedule only one Production process, and this iss L
called Pacemaker process. Typically, pacemaker processes are present after the ice
va
Supermarkets. Material moves from the Pacemaker process to the downstream in
r
e
S
continuous flow
t
n
e
Pacemaker process
m
e
g
a
n
a
M
h
s
a
Process
3
H
Process
2
Process 1
f
o
t
h
g
i
r
y
p
o
C
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8. Load Levelling (Heijunka)
How to distribute the Production of Different products
evenly?
Do not schedule long runs of one product type and avoid changeovers, It eventually
creates high WIP / FG in the shop floor.
s
e
c
i
v
E.g. Instead of assembling all the “Type A” products in the morning and all “Type rB”
e
products in the afternoon, try to alternate repeatedly between “Type A and Type
B”, else
S
t
n
make One hour once changeovers
e
m
e
g
a
n
a
M
A
A
A
A
A
A
B
B
B
B
B
B
h
s
a
H
f
o
t
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g
i
r
y
p
A
B
A
B
A o B
A
B
A
B
A
B
C
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,
P
L
L
0
2
0
2
9. Pitch
•
Smallest standard Quantity that can be planned in the line
•
Normally the Carton Box Quantity can be taken as the pitch
•
For e.g. If the final product is packed in a box of 50 , Pitch of the line
is 50
•
The Production plan can be given in terms of the Pitch
•
We can plan the line to change to another product based on the Pitch
(50 Nos)
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10. Cell Layout
•
A Cell Layout is used when a product flows through a dedicated set of
A
machines / processes
•
The cycle times of these machines are balanced in such a way that no of
operators are less than the number of machines
•
t
n
e
g
e
m
I.e. An operator can load machine A, and move to the Machine B for
a
n
a
M
loading. He/She need not stand and watch the machine running
h
s
a
Sometimes
the
cells
are
designed
in
such
a
way
that 1 operator operates
•
H
f
o
t
around 3 to 4 machines. He would justhmove in a circle inside the cell for
g
i
r
y
p
loading. All unloading would take place automatically.
o
C
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e
S
c
i
rv
s
e
,
P
L
L
0
2
0
2
Operator
B
C
D
Time for Poll 1
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7. Seven Steps to create Future
State VSM
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Future state map
What is Future state map?
A Future State Map identifies improvement to be
made to the value stream that will shorten the
overall lead time.
Always aim for a future state that is free from the
lean wastes to achieve the optimum production.
C
www.kaizenclub.co.in
h
ig
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p
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s
a
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M
e
m
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a
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t
n
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c
i
rv
s
e
,
P
L
L
0
2
0
2
e
S
T
I
M
W
O
O
D
Future State Map
7 Steps to reduce wastes - Future State
1. Develop Continuous flow wherever possible
2. Produce to your Takt time
3. Use Supermarkets to control production where continuous flow is not possible
4. Try to send the customer schedule to only one production process
5. Distribute the production of different products evenly at the pacemaker process
6. Create an “initial pull” by releasing and withdrawing small increments of work at the pacemaker
process
7. Develop the ability to make “Every Part Every Day” (later improve to shifts, hours , etc)
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1. Develop continuous flow
Continuous Flow reduces
wastes
Benefits of Continuous Flow Production
1. Less WIP means less supervisory effort
2. Better Quality as the mistakes are
corrected immediately
3. No waiting of the materials
4. Less mixups and handling related issues
f
o
5. Overall, we had seen an increase of 25%t
h
g
improvement in productivity, becauserithe
y
operator’s effort in NVA reduces (like
p
o
counting, transportation, etc) C
www.kaizenclub.co.in
h
s
a
H
a
M
e
m
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g
a
n
t
n
Batch
Processing
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c
i
rv
s
e
,
P
L
L
0
2
0
2
e
S
Continuous
flow
2. Produce to Takt Time
Reduce all the cycle times to less than Takt Time
2
,
P
L
1. This is where the line supervisors / incharges play a major role
1st Level
2. Time and Efforts have to be spent on identifying the bottleneck
activities and to reduce the cycle times to less than the Takt Time
requirements
r
e
S
t
n
1. First level in reducing Cycle time: Focus on the Obvious
e
wastes in the processes. Based on the current cycle time, how em
g
much can we produce and how much we are producing now?
na
a
M
2. Second Level: Focus on reducing the NVAs inside the
cycle
h
s
a
time. Unloading, Frequent stops in the process,H
operator doing
f
other work (counting, packing, etc)
o
3.
t
h
g
i
r
Third Level: Focus Deeply on the process.
Slow Speed,
y
p etc.
Excess Tool movement, Depth ofocut,
C
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0
2
0
L
2ndsLevel
e
c
i
v
3rd Level
3. Use Supermarkets to control production
Use Supermarkets for managing the WIP and the Flow
Whenever a process cannot be put inside a line, use supermarkets to manage the flow
1. When the machine is designed for Batch Processing - e.g. Oven for baking, Heat treatment, Powder Coating Curing
machine, etc.
2. Machines with very high capacity - E.g. Press operations (Stamping / blanking, etc) typically have 1 or 2 sec cycle
times. In our experience, these machines have higher capacity than the downstream processes.
3. Subcontracting Process - materials which go outside the walls of the company for subcontracting
4. High Cycle Time Operations - In some cases the cycle times of the process cannot be reduced beyond a limit. In that
case where this process’ cycle time is significantly higher than the rest of the process, we have no option to move the
process out of the line and put the other activities in the line. Example: This process has to be run 2 or 3 shifts, but the
other activities can be managed in 1 shift
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4. Send the schedule to only one process
Send the schedule to Pacemaker Process
0
2
0
2
,
In batch processing, production scheduling has to be done at various levels. When using a P
L
Pull system, you will typically need to schedule only one Production process, and this iss L
called Pacemaker process. Typically, pacemaker processes are present after the ice
va
Supermarkets. Material moves from the Pacemaker process to the downstream in
r
e
S
continuous flow
t
n
e
Pacemaker process
m
e
g
a
n
a
M
h
s
a
Process
3
H
Process
2
Process 1
f
o
t
h
g
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y
p
o
C
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5. Distribute the production of different products
evenly in the pacemaker process
Load Levelling
Do not schedule long runs of one product type and avoid changeovers, It eventually
creates high WIP / FG in the shop floor.
E.g. Instead of assembling all the “Type A” products in the morning and all “Type B”
products in the afternoon, try to alternate repeatedly between “Type A and Type B”, else
make One hour once changeovers
A
A
A
A
A
A
B
B
B
B
B
B
A
B
A
B
A
B
A
B
A
B
A
B
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6. Create an Initial Pull
How to Create an initial Pull?
What will happen if you release large batch of work?
•
No sense of takt time / No pull from the downstream process
•
Work happens unevenly - extra burden on people
•
Difficult to monitor - are we behind or ahead of schedule?
•
Responding to customer order changes becomes difficult
Start with small, consistent quantity schedules ( 5 to 60 minutes of work)
•
Pitch = time taken to fill One Carton size / Bin Size = takt time X carton size
•
E.g. if takt time is 30 seconds and carton size is 20 pieces; pitch = 30X20 Sec = 10 min
•
Plan based on 10 min pitch. i.e. Once in 10 min there can be a change in the
production. Production plan cannot change in between.
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7. Develop the ability to make “Every Part Every Day”
How to make “Every Part Every Day”?
•
Shorten the Change-Over Process
•
Run Smaller Batches
•
Every Part Every Day
•
Later improve to every shift, hour, pitch
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Future State VSM
So far, we have discussed the guidelines for creating future State
VSM. A sample Future State map is given in the next page
1. Develop Continuous flow wherever possible
2. Produce to your Takt time
3. Use Supermarkets to control production where continuous flow is not possible
4. Try to send the customer schedule to only one production process
5. Distribute the production of different products evenly at the pacemaker process
6. Create an “initial pull” by releasing and withdrawing small increments of work at the
pacemaker process
7. Develop the ability to make “Every Part Every Day” (later improve to shifts, hours , etc)
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Sample Current State VSM
PRODUCTION
CONTROL
1/2/3 month
Forecasts
45 days
forecast
XYZ Steel
Company
Daily
requirement
ERP
Week
requirement
750 ft coils
Week schedule
High
WIP
High
Transportation
WELDING 1
PRESS
I
200T
Coils
8 days
P
r
oo
5S
5000L
3000R
1
900L
700R
1
C/T = 1.5 Seconds
C/T = 50 Seconds
C/O = 50 minutes
C/O = 14 minutes
Uptime = 85%
Uptime = 85%
27,600 sec
2 Shifts
EPE = 1 week
27,600 sec available
8 days
10.6 days
1.5 Seconds
a
n
I
I
C
50 Seconds
f
o
t
h
ig
r
y
p
o
1
h
s
a
H
a
M
t
n
e
m
e
g
WELDING 2
I
XYZ Assembly
company
1200L
700R
c
i
rv
s
e
,
P
L
L
0
2
2 shifts
Daily
schedule
e
S
ASSEMBLY 1
ASSEMBLY 2
SHIPPING
I
I
Staging
1000L
600R
1
2500L
1500R
1
C/T = 30 Seconds
C/T = 60 Seconds
C/O = 12 minutes
C/O = Nil
C/O = Nil
Uptime = 90%
Uptime = 95%
Uptime = 95%
2 Shifts
2 Shifts
2 Shifts
27,600 sec available
27,600 sec available
27,600 sec available
2.1 days
2.5 days
40 Seconds
Tray - 25 pieces
0
2
C/T = 40 Seconds
2 days
15000 pieces/month
- 10000 “L”
- 5000 “r”
30 Seconds
5.3 days
60 Seconds
30 days
181.5 seconds
PRODUCTION
CONTROL
1/2/3 month
Forecasts
45 days
forecast
XYZ Steel
Company
Daily
requirement
ERP
Week
requirement
XYZ Assembly
company
Daily
schedule
750 ft coils
COIL
20
COIL
20
1x Day
OXOX
PRESS
Sample Future
State VSM
Welding + Assembly
200 T
1
(at the press)
EPE = 1 shift
2 days
C/O < 10 minutes
t
h
1.5 days
g
i
r
y
C
p
o
1.5 seconds
of
e
g
a
n
a
M
n
e
m
L
S
t
R
c
i
v
r
e
20
Bin
20
s
e
,
P
L
L
h
s
a
H
0
2
2 shifts
1x Daily
2 days
Created a Cell with
3 operators combined 4
operations
Total work
<180 sec
Uptime = 100%
2 Shifts
2 days
180 Seconds
Tray - 25 pieces
Staging
C/O < 1 minute
2 days
0
2
SHIPPING
Takt time = 74 secs
C/T = 60 secs
15000 pieces/month
- 10000 “L”
- 5000 “r”
5.5 days
181.5 seconds
PRODUCTION
CONTROL
1/2/3 month
Forecasts
45 days
forecast
XYZ Steel
Company
Daily
requirement
ERP
Week
requirement
XYZ Assembly
company
Daily
schedule
750 ft coils
COIL
20
COIL
20
1x Day
OXOX
PRESS
Sample Future
State VSM
Welding + Assembly
200 T
1
(at the press)
EPE = 1 shift
2 days
C/O < 10 minutes
t
h
1.5 days
g
i
r
y
C
p
o
1.5 seconds
of
e
g
a
n
a
M
n
e
m
L
S
t
R
c
i
v
r
e
20
Bin
20
s
e
,
P
L
L
h
s
a
H
Total work
<180 sec
Uptime = 100%
2 Shifts
180 Seconds
0
2
2 shifts
1x Daily
Using
Supermarkets for
managing the WIP
2 days
2 days
Tray - 25 pieces
Staging
C/O < 1 minute
2 days
0
2
SHIPPING
Takt time = 74 secs
C/T = 60 secs
15000 pieces/month
- 10000 “L”
- 5000 “r”
5.5 days
181.5 seconds
PRODUCTION
CONTROL
1/2/3 month
Forecasts
45 days
forecast
XYZ Steel
Company
Daily
requirement
ERP
Week
requirement
XYZ Assembly
company
Daily
schedule
750 ft coils
COIL
20
COIL
20
1x Day
OXOX
PRESS
Sample Future
State VSM
Welding + Assembly
200 T
1
(at the press)
EPE = 1 shift
2 days
C/O < 10 minutes
t
h
1.5 days
g
i
r
y
C
p
o
1.5 seconds
of
e
g
a
n
a
M
n
e
m
L
S
t
R
c
i
v
r
e
20
Bin
20
s
e
,
P
L
L
h
s
a
H
Total work
<180 sec
Uptime = 100%
2 Shifts
180 Seconds
0
2
2 shifts
1x Daily
Kanban for
Withdrawal and
Production
2 days
2 days
Tray - 25 pieces
Staging
C/O < 1 minute
2 days
0
2
SHIPPING
Takt time = 74 secs
C/T = 60 secs
15000 pieces/month
- 10000 “L”
- 5000 “r”
5.5 days
181.5 seconds
PRODUCTION
CONTROL
1/2/3 month
Forecasts
45 days
forecast
XYZ Steel
Company
Daily
requirement
ERP
Week
requirement
XYZ Assembly
company
Daily
schedule
750 ft coils
COIL
20
COIL
20
1x Day
OXOX
PRESS
Sample Future
State VSM
Welding + Assembly
200 T
1
(at the press)
EPE = 1 shift
2 days
C/O < 10 minutes
t
h
1.5 days
g
i
r
y
C
p
o
1.5 seconds
of
e
g
a
n
a
M
n
e
m
L
S
t
R
c
i
v
r
e
20
Bin
20
s
e
,
P
L
L
h
s
a
H
Total work
<180 sec
Uptime = 100%
2 Shifts
180 Seconds
0
2
2 shifts
1x Daily
From 30 Days, the
lead time reduced
to 5.5 days
2 days
2 days
Tray - 25 pieces
Staging
C/O < 1 minute
2 days
0
2
SHIPPING
Takt time = 74 secs
C/T = 60 secs
15000 pieces/month
- 10000 “L”
- 5000 “r”
5.5 days
181.5 seconds
Benefits of VSM
1. Gives a clear understanding of the operations - bird’s eye view
2. VSM brings out the bottleneck activities and other wastes present in the
operations
3. Helps in identifying the improvement projects that needs to be done
4. Results can be measured for the entire value stream, not for particular
operations / sections. In some companies we have seen that improvement
in some sections, would not translate into overall line improvements
(because they would have worked on non-bottleneck activities)
5. Everyone in the team can use the same language, so communication
among the members is easy
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8. Conclusion
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Things we learnt so far…
1. Work Vs. Waste
2. Seven Wastes & the Biggest Poison
3. Introduction to Value Stream Mapping
4. Data to be collected for VSM
5. Creating Current State VSM
6. Ten Important Concepts
7. Seven Steps to create Future State VSM
8. Conclusion
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What Next?
Lean Master Course
30 Days Online Video Course
With Implementation & Certification
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Lean Master Course
Listed Price
The Course Covers:
1. History of Lean Manufacturing
Rs. 14,999 + GST
2. Basics of Lean Mfg
3. Work Vs. Waste
4. Seven Wastes of Lean Mfg (Muda)
5. Mura and Muri
6. Why WIP is considered as the biggest waste in the company?
7. What is the One Magic Pill to reduce all the wastes?
8. Introduction to Lean Tools
Buy Lean Master Course: https://
9. Value Stream Mapping in Detail
www.instamojo.com/pananth/lean10. Ten Concepts in VSM
11. Creating Future State VSM
master-course-the-best-online-video12. 5S In Detail
cou-831ef/?discount=lc80
13. Single Minute Exchange of Dies - SMED in Detail
14. PokaYoke - In Detail along with Source Inspection
15. TPM - in Detail along with OEE
16. Overall Equipment Effectiveness (OEE)
Only For You
17. TQM - In Detail
Rs. 4,999 + GST
18. TEN Steps to implement Lean in your company
19. Challenges Faced in Lean Implementation and how to solve them?
20. Conclusion of the Course
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What you’ll get from the Lean Master Course
1. Create Current State and Future State Value Stream Map - for your company
2. Master of all the Lean Tools - IN-DEPTH Knowledge
3. Show Amazing Productivity Improvements and Cost Savings in your company
4. Confidence in taking up larger projects in Lean Mfg
5. Become a True Lean Leader in the organization
6. Ability to train others on Lean Mfg
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Write to us to implement Lean
Manufacturing in your organization or
to provide Training for your team members
Send mail to pananth@hashllp.com
Or
Call Ananth - 9176613965
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Thank You
You can reach us through following ways:
pananth@hashllp.com
www.hashllp.com
+91 91766 13965
http://www.youtube.com/c/HashManagementServicesLLP
https://in.linkedin.com/in/ananthpalaniappan
Join kaizenclub.co.in community in LinkedIn to get ebooks,
pictures and learning materials related to Lean. Click here
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Sources for this Ebook
1.
The Machine That Changed the World - James Womack, Daniel Jones and Daniel Roos
2.
Learning to See - John Shook and Mike Rother
3.
A Revolution in Manufacturing - Shigeo Shingo
4.
Zero QC and Pokayoke - Shigeo Shingo
5.
The Toyota Way - Jeffrey Liker
6.
And so many articles and books
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