File G: Value Stream Cost Analysis
Exercise Using Simplified File F Template
Stream Capacity Exercise
This file presents an exercise that will step you through the use of the BMA Value Stream Cost Analysis template included as
File F. It is a simplified method of the value stream cost analysis template provided with the first edition of this book.
We suggest going through this exercise prior to using the template provided as File F. It assumes a one-process value stream. The
Template is suitable for more complicated value streams having many proceses.
Employee Productive Capacity
Employee Non-Productive Capacity
Employee Available Capacity
Quantity Required per Month
Unit of Measure
Employee Cycle Time (per Crew)
Internal Change Over Time Sec
External Change-Over Sec
Labor Hours per shift
# Shifts per day
Average Batch Size
Scrap Rate
Rework Rate
Downtime %
Inspection %
Inspection Time Sec
5S & Clean Up Time per Day
Meetings & reporting per day
TPM Time per Day
Other Non-Productive - User defined
Other Non-Productive - User defined
Crew Size
# cells
Number of Employees
Days per month
Social Time
44%
49%
7%
10000
Units
60
10800
0
7.50
1
500
20%
20%
10%
10%
120
10
30
0
0
0
2
2
5
20
0%
3
6
7
1
2
Total Available Employee Time 2,700,000
Productive Time 1,200,000
Change Over Time Sec 216,000
Scrap & Rework Time 480,000
Downtime 270,000
Inspection Time 120,000
5S & Clean Up Time
60,000
Meetings & reporting 180,000
Total Non-Productive Time 1,326,000
5
Calculate the Employee Capacity for
this small value stream.
Step 1. Calculate the Total Available Employee Time
(#employees x #days x Labor Hrs per shift ) x 3,600
seconds
Step 2. Calculate the Employee Productive Time
(Qty per Month x Cycle Time x Crew Size)
Step 3. Calculate the Employee Productive Capacity Percentage.
(Employee Productive Time / Total Available Time)
Step 4. Calculate the change-over time, scrap & rework time,
downtime, inspection time.
C/O = (quantity/batch size) x Change-over time
Scrap/rework = Qty x (scrap + rework rate) x Cycle Time x
Crew size
D/T = Downtime% x Total Available Time
Inspection= (Inspect% x Quantity) x Inspection time
Step 5. Calculate the Total Non-Productive Time
Step 4 plus 5S & meetings
Step 6. Calculate the Employee Non-Productive Capacity
Percentage
4
Total Non-Prod Time / Total Available Time
Step 7. Calculate the Employee Available Capacity Percentage.
100% - (Prod. Capacity + Non-Prod Capacity)
Employee Productive Capacity
Employee Non-Productive Capacity
Employee Available Capacity
Quantity Required per Month
Unit of Measure
Employee Cycle Time (per Crew)
Internal Change Over Time Sec
External Change-Over Sec
Labor Hours per shift
# Shifts per day
Average Batch Size
Scrap Rate
Rework Rate
Downtime %
Inspection %
Inspection Time Sec
5S & Clean Up Time per Day
Meetings & reporting per day
TPM Time per Day
Other Non-Productive - User defined
Other Non-Productive - User defined
Crew Size
# cells
Number of Employees
Days per month
Social Time
44%
49%
7%
10000
Units
60
10800
0
7.50
1
500
20%
20%
10%
10%
120
10
30
0
0
0
2
2
5
44%
24%
32%
10000
Units
60
2700
0
7.50
1
300
16%
10%
0%
0%
120
10
30
0
0
0
2
2
5
20
0%
20
0%
Total Available Employee Time 2,700,000
Productive Time 1,200,000
Change Over Time Sec 216,000
Scrap & Rework Time 480,000
Downtime 270,000
Inspection Time 120,000
5S & Clean Up Time
60,000
Meetings & reporting
180,000
Total Non-Productive Time 1,326,000
2,700,000
1,200,000
90,000
312,000
0
0
60,000
180,000
642,000
The employee capacity has
changed as a result of the kaizen
improvements.
Change-over = 2700 sec
Batch size = 300
Scrap = 16%
Rework = 10%
Downtime = 0%
Inspection = 0%
Calculate the employee capacity
after the kaizen
Employee Productive Capacity
Employee Non-Productive Capacity
Employee Available Capacity
Quantity Required per Month
Unit of Measure
Employee Cycle Time (per Crew)
Internal Change Over Time Sec
External Change-Over Sec
Labor Hours per shift
# Shifts per day
Average Batch Size
Scrap Rate
Rework Rate
Downtime %
Inspection %
Inspection Time Sec
5S & Clean Up Time per Day
Meetings & reporting per day
TPM Time per Day
Other Non-Productive - User defined
Other Non-Productive - User defined
Crew Size
# cells
Number of Employees
Days per month
Social Time
44%
49%
7%
10000
Units
60
10800
0
7.50
1
500
20%
20%
10%
10%
120
10
30
0
0
0
2
2
5
44%
24%
32%
10000
Units
60
2700
0
7.50
1
300
16%
10%
0%
0%
120
10
30
0
0
0
2
2
5
67%
31%
3%
12000
Units
60
2700
0
7.50
1
300
16%
10%
0%
0%
120
10
30
0
0
0
2
2
4
20
0%
20
0%
20
0%
2,700,000
1,200,000
90,000
312,000
0
0
60,000
180,000
2,160,000
1,440,000
108,000
374,400
0
0
48,000
144,000
642,000
674,400
Total Available Employee Time 2,700,000
Productive Time 1,200,000
Change Over Time Sec 216,000
Scrap & Rework Time 480,000
Downtime 270,000
Inspection Time 120,000
5S & Clean Up Time
60,000
Meetings & reporting
180,000
Total Non-Productive Time 1,326,000
Increase sales by 20%
Reduce the number of people
from 5 to 4
Calculate the employee capacity
after the kaizen