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Value Stream Design
Advanced training
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 2
Value Stream
Value stream perspective gives an overall picture of all processing steps, from raw
material of the suppliers to finished goods for the customer.
Value stream analysis Value stream design
Describes the current path of a product
"ramp-to-ramp" and visualizes material
and information flow
Draws up the future state, showing how
the value stream should be developed
during the next 6 - 18 months
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Flow Kaizen and Process Kaizen
Both, improvement of the value stream and elimination of waste at the shop floor are
necessary, improvement in one improves the over.
– Improvementof the value stream (Flow Kaizen) focuseson material and information flow, which
requires a higher-level perspective.
– Elimination of waste at single processing steps (Process Kaizen) focuseson flow and interaction of
people and process.
Focus: complete material and information flow
Raw material Finishedproduct
Value stream
I
Inventory
Softpart
machining
Process
Heat
treatment
Process
Hard
machining
Process
Assembly
Process
I
Inventory
I
Inventory
Focus: individual
process
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Value Stream Map
Based on a standardized structure, value stream maps make material and information
flow transparent.
Processingsteps /
Materialflow
Lead time bar
Supplier Customer
Control/
Informationflow
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Outside
Sources
Manufacturing
process
Data Box Inventory Truck shipment
Movement of
finished goods
Movement of
prod. material
Movement by
PUSH
Transfer of lim.
quantities of
material by FIFO
Supermarket Withdrawal
Material
handler
Operator
Value Stream Symbols I
Value stream maps use standardized set of symbols.
Symbols: Material flow
300 pieces
MO +
WE
max. 20 pieces
FIFO
WT= 27 600
CT= 50s
....
Costumer
Assembly
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Manual
information flow
Electronic
information flow
Information
Load/Mix
leveling
Production
Kanban
Withdrawal
Kanban
Signal Kanban
Kanban
post box
Kanban arriving
in batches
"Go See"
production
scheduling
ConWIP
Change over
wheel
Problem/
Issue
Workshop/
Measure
Value Stream Symbols II
Value stream maps use standardized set of symbols.
Symbols: Information flow / Kaizen
Weekly
schedule
Con.
WIP
SMED
workshop
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Value stream design
Value stream analysis
➊ Define system boundary
➋ Selectan appropriate productfamily
➌ Understand customerrequirements
➍ Detectprocesssteps and inventory
➎ Detectmaterial flow
➏ Detectinformation flow
➐ Draw the time line
Currentstate map
➊ Eliminate waste in the material flow
➋ Assignproducts to resources
➌ Realize takt time
➍ Create continuous flow
➎ Create pull using supermarkets
➏ Define the pacemakerprocess
➐ Level the productmix
Future state map = Process vision
Procedure
Drafting Current state and Future state map happens in 7 steps each.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Define System Boundaries
Value stream analysis and design may focus on the total value stream as well as on
sub areas – but always ramp-to-ramp.
Total value stream
Supplier Schaeffler Customer
Supplier Plant B Customer
Plant A Plant C
Soft part
mach.
Heat
treatm.
Hard
mach.
Assem-
bly
Plant A Plant C
Company level
Plant level
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
▪ Excluded process steps, customers or suppliers has to be documented.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Select an appropriate Product Family
In order to create maximum benefit Value stream analysis should start at the product
family with highest annual turnover. Priority results from an ABC-Analysis.
▪ In addition, the percentage of annual demands has to be mentioned.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
Mio. $ 12,3 5,8 3,8 2,1 1,8 1,6 0,2
Percent 44,6 21,0 13,8 7,6 6,5 5,8 0,7
Cum % 44,6 65,6 79,3 87,0 93,5 99,3 100,0
Product family others
V
IV
II
VII
I
III
30
25
20
15
10
5
0
100
80
60
40
20
0
Annual
turnover
in
Mio.
$
Percent
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Identification of Product Families
A Product-Process-Matrix subsumes product families according to similar processes
at the same manufacturing equipment in the same process sequence.
▪ The Product-Process-Matrix fits to a product portfolio that can be sufficiently differentiated
by occupied equipment.
▪ In addition product families can be identified by detection of process families and a
subsequent analysis of analogous product features within these families.
Process steps/ Equipment
Turning Washing Heat treatm. Grinding Assembly Packaging
F-… ✗ ✗ ✗ ✗ ✗
F-… ✗ ✗ ✗ ✗ ✗
F-… ✗ ✗ ✗ ✗
F-… ✗ ✗ ✗
F-… ✗ ✗ ✗
F-… ✗ ✗ ✗
…
Products
Product
family
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Understanding Customer Requirements
Mapping the current state always starts with detection and visualization of customer
requirements.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
▪ Important information are average and variation of annual demands as well as
purchased types of the product family.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Available working time
Determination of Takt Time
Takt time results from dividing available working time by average of customer
demands.
Available working time
Daily customer demands
900 min
Available working time
Average of
daily customerdemands
750 pieces
Takttime
72 s
500
250
1,000
750
1,250
pieces
Jan Mar May Jul Sep Oct Dec
History
today
Plan
Shift duration 480 min.
Number of daily shifts * 2
Total of breaks – 60 min.
Available working time = 900 min.
⌹ ⌸
Breaks
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
▪ For current state map determination of takt time bases on historical data, for
the future state map expected customer demands has to be used (in regard to
the time frame of the process vision).
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Detection of Process Steps and Data
Process steps are drawn below the customer requirements and supplemented with
relevant process data.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
▪ All process data should be gathered on the shopfloor.
Don't believe in system data, at least check their reliability.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Process Data for Value Stream Analysis
Process data are crucial for value stream analysis. According to the process specifics
different data has to be gathered.
Process with
Process data
1 resource
more than 1
resource
batches
CT: Cycle time ✗ ✗ ✗
PT: Processing time ✗ ✗
WTP*: Working time if varies from general working time
C/O: Changeovertime ✗ ✗ ✗
OEE: Overall Equipment
Effectiveness
✗ ✗ ✗
LS: Lot size ✗ ✗ Batch size
NR: Number of resources ✗
AA: Scrap rate ✗ ✗ ✗
NA: Rework rate ✗ ✗ ✗
TTP*: Processspecific takt time if varies from takt time
Process
CT = 0,080 min
OEE = 0,64
…
*P = process specific value
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Indication of Inventory
Between the process steps the inventory is indicated as it has been detected on the
shopfloor. That needs counting all products waiting in front of a process step.
▪ It does not matter, whether the inventory lies in front of or behind a resource or at a
supply area, each material between 2 process steps has to be summarized.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Detection of Material Flow
Internal material flow between the process steps as well as external material flow to
the customer and from the suppliers has to be indicated according to their logic.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
▪ For evaluation of supplier reliability to the customers delivery quantities
and frequencies has to be known.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Detection of Information Flow
Beginning at the customer the information flow toward production control, suppliers
and all individually scheduled process steps is indicated.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
▪ "Go See" production scheduling means adjusting schedules based on
checking current inventory levels in the shopfloor.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Drawing the Timeline
The timeline visualizes the waste in the value stream by outlining the long waiting time
between the process steps.
▪ The ratio between lead time and processing time (value adding time)
of a single product indicates the process efficiency.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Current State Map
The result of the value stream analysis is a clear overall picture of material and
information flow.
▪ Mapping of relations is more important than an in-depth analysis of details.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Identification of Weak Spots
By means of the current state map sources of waste and obvious weak spots can be
indicated in the visualized process.
3 5
1
2
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
4
6
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Current State Map
Drawing the current state map and analyzing the process requires strong team work.
Example: IWK, Seg. 03, Product family DFC
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Future State as Process Vision
Drawing the future state map is the crucial activity of a value stream workshop and
defines how the process will look like in near future.
Future state
Definition of the
process vision is
to be continuously
repeated!
Vision of today is
the current state
of tomorrow!
Currentstate
Process
vision
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Takt-Principle
Requirement of the Future State
The definition of the future state process requires the implementation of the 3 main
principles of LEAN Production in order to produce synchronously to the takt time.
Flow-Principle Pull-Principle
Manufactured parts flow to
the next process step
without interruption.
The following process
withdrawal only the parts
which are needed.
Production to the takt time
by leveling work load.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Value stream design
Value stream analysis
➊ Define system boundary
➋ Selectan appropriate productfamily
➌ Understand customerrequirements
➍ Detectprocesssteps and inventory
➎ Detectmaterial flow
➏ Detectinformation flow
➐ Draw the time line
Currentstate map
➊ Eliminate waste in the material flow
➋ Assignproducts to resources
➌ Realize takt time
➍ Create continuous flow
➎ Create pull using supermarkets
➏ Define the pacemakerprocess
➐ Level the productmix
Future state map = Process vision
Procedure
Drafting Current state and Future state map happens in 7 steps each.
▪ Basis for designing the future state is the analyzed current state map and
panned turnover for time frame of the process vision.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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After
Elimination of Waste I
Short lead times can be achieved by consequent elimination of waste in the process.
Value adding Waste Value adding Waste
Time Time
Before
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Elimination of Waste II
Non-value-adding process steps should be eliminated from the process vision – as far
as technological possible. Therefore, the current process has to be scrutinized.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ Usually, process steps can not be eliminated without adjustment of processes
upstream or downstream, since the quality level must be constant.
▪ Deburring doesn'tincrease the value in
customer'seyes,but is only required by the
press upstream
▪ Elimination of the processstep requires
technologicaladjustmentof the processes
upstream,e.g. pressing free of burr
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Process 4
Process 3
Process 2
Process 1
Assignment of Products to ResourcesI
Unambiguous assignment of products / product families to available resources leads
to smooth material and information flows.
Regarding to product family
▪ Unambiguous assignment of
several product families to
manufacturing equipment
▪ Flow-principle for each product
family
▪ Assignment of responsibilities over
complete process chain
▪ Undirected material flow according
to free capacities
▪ Huge manual effort for production
scheduling
Focus on capacity utilization
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
differentpaths of a productover the
resources of the several process steps
definite path of a productover a defined
resource in each process step
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Assignment of Products to ResourcesII
During the assignment of product families to resources technological feasibility and
available capacity have to be confirmed.
▪ If technological and capacitive requirements are fulfilled, a product family should be
assigned to only one resource chain.
▪ The assignment of more than one product family to a single resource results in
multiple material flows that merge and branch out.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
Arbeitstage p.a. 250 X Zuordnung zur Produktion auf dieser Ressource
(X) technologisch kann die Type auf der Ressource gefertigt werden
- Type kann technologisch nicht auf der Ressource gefertigt werden
OEE [%]
ZZ(mittel) [min]
Nettoarbeitszeit pro Arbeistag [min]
Type Stk. / Monat Stk./Monat Stk./Monat Stk./Monat
F-………. 15.000 X 15.000 X 15.000 - 0 0 0 0
F-………. 6.790 - 0 X 6.790 - 0 0 0 0
F-………. 24.450 - 0 - 0 X 24.450 0 0 0
F-………. 21.300 - 0 X 21.300 (X) 0 0 0 0
F-………. 12.900 - 0 - 0 X 12.900 0 0 0
F-………. 4.620 X 4.620 - 0 (X) 0 0 0 0
F-………. 8.560 (X) 0 (X) 0 X 8.560 0 0 0
F-………. 23.500 - 0 - 0 X 23.500 0 0 0
F-………. 101.500 X 101.500 - 0 - 0 0 0 0
F-………. 15.320 X 15.320 (X) 0 - 0 0 0 0
F-………. 7.850 (X) 0 (X) 0 X 7.850 0 0 0
F-………. 4.350 (X) 0 X 4.350 (X) 0 0 0 0
F-………. 2.340 - 0 X 2.340 (X) 0 0 0 0
F-………. 6.770 - 0 - 0 X 6.770 0 0 0
Summe 136.440 49.780 84.030
resultierende Produktionskapazität 148.026 48.340 86.283 11.813 86.283 86.283
Kapazitätsdeckung 11.586 -1.440 2.253 11.813 86.283 86.283
Auslastungssstatus 92% 103% 97% 0% 0% 0%
Prozess 2
Ressource 1 Ressource 2 Ressource 3
Ressource 1 Ressource 2 Ressource 3
Prozess 1
70%
0,133
1350
55%
0,32
1350
65%
0,226
1440
21%
0,5
1350
65%
0,226
1440
65%
0,226
1440
Kapazitätsabgleich
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Cycle
time
Takt time
Bottleneck
Overcapacity
Realization of Takt Time
Production and assembly have to follow takt time. Otherwise, waste is caused by
overproduction or by breaking the customer requirements.
Cycle
time
Takt time
In takt time
– Leveling of workload by elimination
of bottlenecks and downsizing of
capacities
– Unleveled workload cause
bottlenecks and overcapacities
Out of takt time
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Prozessspezifische Kundentakte
vs. effektive Zykluszeiten
0,000 min
0,200 min
0,400 min
0,600 min
0,800 min
1,000 min
1,200 min
1,400 min
Prozess
1
Prozess
2
Prozess
3
Prozess
4
Prozess
5
Prozess
6
Prozess
7
Prozess
8
Prozess
9
Prozess
10
Prozess
11
Prozess
12
Prozess
13
Prozess
14
Prozess
15
Prozess
16
Prozess
17
Prozess
18
Prozess
19
Prozess
20
Zeit [min]
OEE-Verluste
Mittlere Zykluszeit
Prozessspezifischer Kundentakt
Takt Time vs. Cycle Time
Comparison of takt time and cycle time figure out, whether it can be produced in takt
time or whether the process has to be adjusted.
▪ While comparing cycle time and takt time the Overall Equipment Effectiveness
(OEE) has to be mentioned, which increases the effective cycle time.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
Kundentakt
vs. effektive Zykluszeit Kundentakt
Kundentakt = 1,2 min
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Process specific Takt Time
For multiple value streams with branches or various working time the resulting takt
time varies between the process steps.
Prozessspezifische Kundentakte
vs. effektive Zykluszeiten
0,000 min
0,200 min
0,400 min
0,600 min
0,800 min
1,000 min
1,200 min
1,400 min
Prozess
1
Prozess
2
Prozess
3
Prozess
4
Prozess
5
Prozess
6
Prozess
7
Prozess
8
Prozess
9
Prozess
10
Prozess
11
Prozess
12
Prozess
13
Prozess
14
Prozess
15
Prozess
16
Prozess
17
Prozess
18
Prozess
19
Prozess
20
Zeit [min]
OEE-Verluste
Mittlere Zykluszeit
Prozessspezifischer Kundentakt
▪ Analyzing branched value streams effective cycle times have to be compared
with the corresponding process specific takt time.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Assembly/
Packaging
Material Flow / Linkage of Processes
While drawing the process vision only lean material flow principles should be
considered.
FIFO-Lanes
Directly linked Supermarket-Pull
Continuous production with
one-piece-flow
FIFO
Material flow with continuous
machining sequence and
controlled WIP
Material flow controlled by
withdrawal from the
supermarket
WIP / Lead time
1 2 3
Montieren
Assembly Packaging Assembly Packaging
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
max. 20 pcs.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Realization of Continuous Flow I
Continuous flow means producing without summarizing parts to lots, but flow of
material from one process step to the next without interruption.
One piece flow
Material flows from step to step
without break
Material is sent ahead
from step to step in lots
Lot production
WIP Raw
material
WIP
Finished
good
A B C
Raw
material
Finished
good
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ One-piece-flow does not always mean "one" piece, it can also mean sending-ahead
the smallest technological processing quantity.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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One-piece-flow
▪ No WIP
▪ Short lead time
Realization of Continuous Flow II
Continuous flow means the directly linked of subsequent process steps. In the value
stream map linked process steps melt into one process box.
Diskontinuierliche Losfertigung
300 pcs
Finishing
CT = 0,080 min
OEE = 0,80
Grinding
CT = 0,080 min
OEE = 0,64
Rough-Grinding
CT = 0,075 min
OEE = 0,80
▪ High WIP
▪ Long lead time
Lot production
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ Process data of continuous flow process boxes regard to the equipment
as a whole.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Decision criteria for continuous flow
Priority objective is to establish continuous flow. Therefore, several preconditions
have to be fulfilled.
Preconditions for realization of continuous flow
 Required invest has to generate payback according to given rules.
 Process steps have to be organizationally and technologically harmonized (shift model,
batch size, changeover time, temperature)
 The effective cycle time of the flow has to comply with the takt time.
 The material flows continuously, without branching.
Since directly linked of process steps reduces the
Overall Equipment Effectiveness, OEE has to be
explicitly checked:
Process2
Process1
Total OEE
OEE
OEE 
=
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
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Decision tree "Continuous flow"
Using the decision tree can simplify the decision whether the link-up of the process
steps to continuous flow is feasible.
Entscheidungsbaum
Direkte Kopplung
Technologische
Wartezeiten zwischen den
Prozessen notwendig?
Prozesszeiten stark
unterschiedlich?
Kapazitätsverlust durch
eindeutige Zuordnung
akzeptabel?
Effektive Zykluszeit
kleiner als Prozess-
kundentakt?
Mehrfache
Bearbeitung auf einer
Ressource notwendig?
Verzweigt sich der
Wertstrom?
Ist das Schichtmodell
anpassbar, falls
unterschiedlich?
One piece flow über
räumliche Distanz
wirtschaftlich?
Verringerung der
räumlichen Distanz
vertretbar?
Ja
Nein Nein
Ja
Ja
Nein
Nein
Direkte Kopplung
Ja
Ja
Ja Nein
Nein
Ja
Ja
Nein
Ja
Nein
Nein
Entscheidungsbaum
Supermarkt / FIFO
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ If one of the criteria is not fulfilled, the process steps has to be separated by
FIFO-Lanes or Supermarket-Pull.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 37
Realization of Supermarket-Pull
If the extent of continuous flow is limited, the material flow between the process steps
should be organized by Supermarket-Pull.
➊ ➋ ➌ ➍ ➎ ➏ ➐ WSD
Supermarket Pull-Principle
– Process upstream only produces in
order to replenish withdrawn products
– Number of Kanban cards limits the
inventory
– "Whenever something is missing,
replenish it!"
Push
– Material flows to the process step
downstream based on an estimation
what might be needed
– Undefined, uncontrolled inventory
I Process 2
Process 1 Process 2
Process 1
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Page 38
Definition Supermarket
A supermarket is a defined inventory between two process steps, which controls the
production loop upstream according to the withdrawn quantity of a specific product.
Supermarket
▪ Only the withdrawn product
is scheduled
Assembly
Insert
molding
➊
➌
➋
▪ Realization of FIFO while
withdrawal
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 39
Definition Supermarket
A supermarket distinguishes from B-Storage and FIFO-Lane by referring to a certain
product and by controlling the production loop upstream.
B-Storage
▪ no control function
▪ no specific types
▪ no specific assignment to a
certain resource upstream
FIFO-Lane
▪ Controlling the upstream
process via min./max.
inventory
▪ no specific types
▪ defined assignment to a
certain resource upstream
Supermarket
▪ Controlling the upstream
production loop via Kanban
▪ for specific types
▪ defined assignment to a
certain resource upstream
Assembly
Insert mold.
Assembly
Insert mold.
Assembly
Insert mold.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 40
Decision Criteria for Supermarket
The decision for realizing a Supermarket-Pull bases on comparison of resulting
inventory and response time.
Pro
Supermarket
▪ If the response time is longer than the fixing horizon given by
customers for their orders or delivery schedules
▪ If the control effort for continuously consumed products should be
reduced
Where
Supermarket?
▪ Upstream to a process step that increases the number of product
types, in order to reduce stored types and replenishment time
▪ Between supplier and main branch, in order to separate
replenishment time of finished goods from purchase of raw material
or components (variation of delivery time and quantity)
▪ In front of the customer, in order to separate the process from
variation of customer demands
Contra
Supermarket
▪ If resulting worth and space of the defined inventors is too high or
inventory turnover is too less
▪ Decision results from ABC- and XYZ-Analysis
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 41
Decision Criteria for Supermarket
Depending on the consumption of a product results average inventory value and
average days on hand.
Inventory
ø stock
max. stock
Time
Safety stock
Continuous consumption
▪ Average stock value is almost centric
between maximum inventory and safety
stock
Inventory
ø stock
max. stock
Time
Safety stock
Discontinuous consumption
▪ Average inventory value is close to the
maximum inventory value
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 42
Decision Criteria for Supermarket
For the decision pro or contra supermarket the product portfolio has to be analyzed
regarding to stability of consumption and to the value structure.
ABC-Analysis
Focus on products with highest value
Value
A B C
XYZ-Analysis
Focus on products with low variation of
consumption
Consumption
▪ X-Products
▪ Y-Products
▪ Z-Products
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
Number of products Time
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 43
ABC Analysis
Regarding to the value classification of a product varies the decision to establish a
supermarket-pull.
ABC Analysis
Evaluation of products regarding to their
value
Value
Number of products
A B C
▪ Calculation of the value bases on production costs (GPC) at the appropriate value-added
step and on the annual demand of the product
Distribution of values TYP
80% of turnover (mostly 10%
of the products)
A
15% of turnover (mostly 20%
of the products)
B
5% of turnover (mostly 70% of
the products)
C
Value classification
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 44
XYZ Analysis
Regarding to the stability of consumption of a product varies the decision to establish
a supermarket-pull.
XYZ Analysis
Classification regards to the coefficient
of variation
Consumption
▪ X-Product
▪ Y-Product
▪ Z-Product
Time
▪ XYZ analysis should base on real customer demands within an representative
time frame.
CV* TYP
CV ≤ 0,2 X
0,2 < CV ≤ 0,5 Y
CV > 0,5 Z
Coefficient of variation CV
*Suggestion, adjust for individual cases
CV =
Standard deviation
Mean
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 45
Establishing supermarket-pull in the main branch of the value stream fits best for
products with high value and less variation of consumption.
Decision Criteria for Supermarket
▪ Due to the high value of
products in the main branch
of the value stream only such
with continuous consumption
and in consequence short
waiting time should be
controlled by withdrawal
downstream.
Supermarket in the main branch of the value stream
A-Product
B-Product
C-Product
Consumption variation
t t
t
Value
Make to order
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
X-Product Y-Product Z-Product
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 46
At the inflow into the main branch of the value stream also for components with less
value and higher variation of consumption supermarket-pull can be realized.
Decision Criteria for Supermarket
A-Product
B-Product
C-Product
X-Product Y-Product Z-Product
Make to order
t t
t
Value
Supermarket
Consumption variation
▪ Consumption control can be
extended also to such
components with higher
variation of consumption,
especially for such with less
value.
▪ A missing product of the
category C/Z will also stop
the flow in the main branch.
▪ Therefore, the supermarket
is primarily used for
safekeeping the availability of
components.
Supermarket at the inflow into the main branch
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 47
Decision Tree "Supermarket / FIFO"
Using the decision tree can simplify the decision whether supermarket is suitable or
compulsory.
Auftragsfixierungs-
horizont kleiner als
Reaktionszeit?
Vereinfachte Steuer-
ung kompensiert den
Bestandsaufbau durch
Supermarkt?
Verbrauch der
Prozessprodukte auf
durch mehrere
Verbraucher?
Nein
Nein
Supermarkt
FIFO
Ja
Nein
Ja
Ja
Entscheidungsbaum
Supermarkt / FIFO
➊ ➋ ➌ ➍ ➎ ➏ ➐ WSD
▪ If one of the criteria is fulfilled, supermarket-pull should be established. Otherwise,
material flow between process steps has to be maintained by a FIFO lane.
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Page 48
Definition of FIFO-Lane
A FIFO-lane is a possibility to realize material flow between physically separated
process steps keeping the machining sequence.
Using a defined (minimum/) maximum WIP in a FIFO-lane the production upstream can
be controlled.
FIFO-Lane
Process 1 Process 2
FIFO
FIFO
Process 1 Process 2
Max. Pcs
*ConWIP = constant "Work in Process"
FIFO
Process 1 Process 2
ConWIP
*
Control by WIP in FIFO-lane Control by separate signal
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
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Page 49
Branching of Value Stream
Due to the usage of products in following process steps FIFO-lane or supermarket are
suitable at dividing branches of the value stream.
FIFO-Lane
▪ Unambiguous assignment of products
to a certain process step downstream
Supermarket
▪ Multiple usage of products in several
process steps downstream
Process 2
Process 3
Process 1
Process 2
Process 3
Process 1
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
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Page 50
Merging of FIFO-Lanes
Where multiple value streams are merged the machining sequence in FIFO-lanes has
to be separately considered and controlled.
Merging FIFO-Lanes Multi-FIFO
▪ Technological restrictions at processes
downstream
▪ Applying FIFO only within the groups
▪ No technological restrictions
▪ Safekeeping of FIFO needs logistical
effort
Process 1
Process 2
Process 3
Process 1
Process 2
Process 3
FIFO
FIFO
FIFO
▪ If FIFO is annulled special rules has to be defined for machining sequences
(e.g. changeover scheduling for heat treating programs)
➊ ➋ ➌ ➍ ➎ ➏ ➐ WSD
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Page 51
Definition of Pacemaker Process
Production schedules should only be sent to one process step in the value stream – to
the pacemaker process.
Scheduling the pacemaker process
▪ Scheduling only at the pacemaker
process
▪ Process steps upstream are controlled
by consumption control
▪ Central scheduling of each process
step by MRP
▪ Additional coordination between the
process steps necessary
Scheduling each process step
Control
MRP
MRP
I
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ Production control for process steps upstream are done at the shopfloor level
by Kanban cards.
Process 2
Process 1 Process 2
Process 1
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Page 52
Definition of Pacemaker Process
Scheduling the production at the pacemaker process defines Pull for material flow
upstream and FIFO-Push downstream.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ At the pacemaker process the product becomes order specific.
Material flow upstream and downstream to the pacemaker process
MRP
Process 2
Process 1 Process 3
max. 20 pcs
FIFO
… …
▪ Upstream (leftward) to the pacemaker
process material results in consumption
control (Pull)
▪ It will be produced, only what was
already withdrawn
▪ Downstream (rightward) to the
pacemaker process material flow
results in order control
▪ Material flows away over the following
process steps as FIFO-Push
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Page 53
Response time including delivery time must be shorter than fixing horizon given by
customers for their orders or delivery schedules.
Make-to-stock
▪ Defined finished products are stored in the
supermarket, delivered according to the
customercall-offs and refilled afterwards.
▪ Response time is short, but inventory of
finished goods is very high.
Make-to-order
▪ If lead time through the process
downstream is short enough, the
pacemakerprocessis further upstream.
▪ Lead time from scheduling the order to
delivery has to be predictable.
Response Time to the Customer
Assembly +
Packaging
Bearing
assembly
Insert Molding
FIFO FIFO
Customer
Assembly +
Packaging
Bearing
assembly
Insert molding
FIFO FIFO
Customer
MRP
Consumption control Order control
▪ The shorter the fixing horizon given by the customer the further downstream the
pacemaker process has to be established.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
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Page 54
Leveling the Product Mix
Production of several products should be proportionally leveled over available
working time at the pacemaker process.
Every Part Every Interval (EPEI)
▪ Continuous reduction of lot sizes
results in high flexibility
▪ Production according to customers
demand
▪ Low flexibility requires high inventory of
finished goods
▪ Avoided changeovers result in
production of huge lots
Huge lot sizes
Week1 Week2 Week3 Week4
A
B
C
D
E
400 A 200 A
200 B
200 B
200 C
200 C
100 D
100 E
Week1 Week2 Week3 Week4
A
B
C
D
E
weekly 150 A, 100 B and 100 C
as well as 50 D or 50 E in rotation
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ EPEI is not equal for all products, but the multiple of the shortest interval
(for the example given: A-C every week, D/E every second week)
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Page 55
Leveling the Product Mix
The Changeover wheel defines a optimal changeover sequence for all products, which
are produced at a certain resource.
▪ According to the given
turning direction
products are set-up
Others (order
controlled products):
▪ At the changeover
wheel one or more
placeholders have to
reserve capacity for
ordercontrolled
products.
▪ The shorter the
required response
time for these
products the more
placeholders have to
be considered.
▪ Width of a slot for a
certain productdoes
not correspond to it
quantity
▪ A certain productma
y have more than
one slot at the
changeoverwheel.
Changeover wheel
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 56
Calculation of EPEI*
Downtime
According to EPEI and to a given percentage of daily changeover time lot sizes can be
determined.
▪ 10% of available working time
should be used for changeovers.
▪ Lot size corresponds to the quantity
that is withdrawn within EPEI.
▪ Longest EPEI corresponds to one
revolution of the changeover wheel.
*EPEI = Every Part Every Interval
days
5
days
4,4
1350
10%
120
5
time
changeover
daily
time
Changeover
EPEI
day
min
min

=


=

=
Time left for
changeovers
∑ Equipment
uptime
Time to run for
the daily
demand of
the 5 products
C/O 1
C/O 2
C/O 3
C/O 4
C/O 5
Leveling the Product Mix
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ Reduction of EPEI can be achieved by reduction of changeover time.
Available
working
time
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 57
Reduction of changeover
costs for each changeover
Resulting smaller lot sizes
for each product
Resulting smaller average size
of the supermarket
Leveling the Product Mix
Current state
Future state
€
E
D
C
B
A
E
D
C
B
A
E
D
C
B
A
t
E
D
C
B
A €
t
€
E
D
C
B
A
t
E
D
C
B
A €
t
Run of inventory of product A
average
inventory
average
inventory
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
Run of inventory of product A
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 58
Consumption controlled products via supermarket
Order controlled products via FIFO-lane
→ FIFO →
Insert
Molding
Press
Assembly Shipping
▪ In the assemblyordercontrolled
as well as consumptioncontrol-
led products are assembled.
Therefore,productionsequence
has to be given.
▪ The changeoverwheel defines
sequence of consumption
controlled products and reserves
capacity of order controlled
products waiting in the FIFO-
lane.
▪ If order controlled products arrive
very seldom,a "right of way" rule
can be installed.
Order control and consumption control at one resource
→ FIFO →
Leveling the Product Mix
Combination of order control and consumption control requires clearly defined and
communicated rules.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 59
Future State Map
Result of the value stream design is the future state map that showing the process that
is to be realized during the following months.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ The time line has to be completed with average days on hand of the products in
supermarket and FIFO-lanes to figure out the improvements.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 60
Future State Map
Drawing the future state map requires creativity and courage to challenge the given
state. But it is worth.
Example: IWK, seg. 03, product family ZMS
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
▪ The process vision has to be SMART (specific, measurable, agreed to,
realistic and time bound).
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 61
Dimensioning the FIFO-Lane
Dimensioning a FIFO-Lane depends on the parameters of the connected processes.
Influencing parameters for FIFO-lanes
 Distance
 Changeover times
 Downtimes
 Varying cycle times
▪ The assumption in the following slides is, that the process downstream is no bottle neck.
Therefore the FIFO-lane buffers material, if downtimes occur at the process downstream.
▪ If downtimes occur at processes upstream, the FIFO-lane might very well run out of
material.
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Page 62
Dimensioning the FIFO-Lane
FIFO-Lanes should hold the possibility to buffer material in case of downtimes, so the
process upstream does not need to stop production.
Maximum
Inventory
Average
Inventory
▪ The maximum inventory defines the length of the FIFO-Lane.
▪ The max. Inventory is influenced by various factors.
▪ The simplified formula for the dimensioning is influenced by the max.
calculated inventory for each factor:
▪ Referring to the average inventory the waiting time in the FIFO-Lane
is calculated.
1,5
]
[
inventory
max.
]
[
inventory pcs
calculated
pcs
max 
=
0,5
]
[
inventory
]
[
inventory pcs
max
pcs
Ø 
=
     
pcs
unit
time
P
pcs
Ø
unit
time TT
inventory
time
waiting 
=
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 63
Dimensioning the FIFO-Lane
The number of transports between to separated processes defines the quantity, the
FIFO-Lanes must be able to take.
Large distance in the factory or to external processes
example:
FIFO
Insert Molding
CT = 0,085 min
WTP = 450
min/Shift
Assembly
CT = 0,043 min
700m
]
[
CT
]
[
transports
of
number
]
[
time
working
]
[
inventory
pcs
min
1
Process
shift
1
shift
min
pcs
max

=
FIFO
pcs
min
shift
shift
min
pcs
max
0,085
4
450
324
.
1
]
[
inventory

=
=
▪ The space for the max. inventory needs to be reserved behind the process upstream as
well as in front of the process downstream. The inventory will be physically existent just
once.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 64
Dimensioning the FIFO-Lane
Producing different products with varying cycle time depending on the type, longer
than the takt time, will create temporary inventory, the FIFO-lane must be able to take.
Cycle time variations
FIFO
Assembly
CT = 0,035 –
0,175 min
TTP = 0,056 min
LS = 1.000 pcs
]
[
TT
]
)[
TT
(CT
size
lot
]
[
inventory
pcs
min
P
pcs
min
P
max
pcs
max
−

=
pcs
min
pcs
min
max
056
,
0
)
056
,
0
(0,175
1.000
125
.
2
inventory
−

=
=
Insert Molding
example:
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 65
Dimensioning the FIFO-Lane
FIFO-lanes must be able to take temporary inventory that the process upstream
produces while the process downstream is still on change-over.
Change-over of the process downstream
FIFO
Insert Molding
CT =0,085 min
C/O = 90 min
Assembly
CT = 0,043 min
C/O = 120 min
]
[
CT
]
[
time
c/o
]
[
inventory
pcs
min
1
process
min
2
process
pcs
max =
pcs
min
min
max
0,085
120
1.412
inventory =
=
example:
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 66
Dimensioning the FIFO-Lane
FIFO-lanes must even be able to take temporary inventory that the process upstream
produces while the process downstream has to deal with downtimes.
Downtimes of the process downstream
FIFO
Insert Molding
CT =0,085 min
Assembly
CT = 0,043 min
MTTR* = 40 min
]
[
CT
]
[
MTTR
]
[
inventory
pcs
min
1
process
min
2
process
pcs
max =
pcs
min
min
max
0,085
40
471
inventory =
=
*MTTR = Meantime to repair
example
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 67
Dimensioning the FIFO-Lane
Regarding the influencing factors the FIFO-lanes can be dimensioned.
Maximum
Inventory
Average
Inventory
 











P
Ø
max
TT
pcs
min
inventory
min
inventory
pcs
Ø
0,056
1.594
min
90
time
waiting
0,5
3.188
1.594
]
[
inventory

=
=

=
=
▪ The FIFO-lane length is calculated generously and therefore needs to be checked
constantly and shortened if necessary.

factor
safty
inventory
max
pcs
pcs
max
MTTR
C/O
CT
Transport
1,5
2.125
3.188
]
[
inventory
471
inventory
412
.
1
inventory
125
.
2
inventory
324
.
1
inventory
factors
g
influencin

=
=
=
=
=
=





▪ The maximum inventory defines the length of the FIFO-Lane.
▪ Referring to the average inventory the waiting time in the FIFO-Lane
is calculated.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 68
FIFO-Lanes in front of Bottle Necks
Scheduling bottle necks with FIFO-lanes
If the process downstream is a bottle neck, the FIFO-lane must cover downtimes of the
process upstream without stopping the bottle neck.
bottle
neck
Process 2
FIFO
Min./Max.
▪ To schedule the process upstream the FIFO-lane needs to cover a certain minimum
inventory due to downtimes.
 
]
[
CT
]
[
R/O
inventory
pcs
min
2min
process
min
1
process
pcs
min =
]
[
TT
]
)[
TT
(CT
]
[
size
lot
]
[
inventory
pcs
min
2
process
pcs
min
2
process
1max
process
pcs
process1
pcs
min
−

=
 
  ]
[
CT
transports
of
number
]
[
time
working
inventory
pcs
min
2min
process
shift
1
shift
min
pcs
min

=
▪ OEE-losses caused by C/O
▪ OEE-losses caused by cycle time variations
▪ periodical transports caused by distance
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 69
Dimensioning the Supermarket
A supermarket has to cover a certain range of variation in customer call-offs and
replenishment time.
▪ Covering variation increases the inventory in the supermarket.
max. call-off amount
= average call-off amount
+ range to cover
max. replenishmenttime
= average replenishmenttime
+ variability in replenishmenttime to cover
average customer
call-off
range to cover
amount
time
replenishment
time
time
variation in
replenishment
time to cover
average
replenishment
time
customer call-off replenishment time
peaks are not regarded
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 70
Dimensioning the Supermarket
Regarding to the maximum customer call-off and the maximum replenishment time the
dimensions of the supermarket can be calculated.
▪ According to the max. inventory the size of the supermarket can be
calculated.
▪ The Replenishment Time (RT) is the time it takes the process
upstream to refill the supermarket.
▪ RT = EPEI + lead time of process loop upstream
▪ The size of the supermarket depends on the quantity in the containers.
     
unit
time
max
unit
time
pieces
max
pcs
max T
R
off
-
call
ustomer
c
nventory
i 
=
 
 
 
HU
pcs
pcs
max
HU
container
in
quantity
inventory
units
handling
of
amount =
Maximum
Inventory
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 71
Dimensioning the Supermarket
Continuous consumption and periodical refill of the supermarket lead to average
inventory smaller than the maximum inventory.
Average
inventory
▪ The average inventory defines the waiting time and the capital binding
costs in the supermarket.
▪ The ratio between max. inventory and average inventory bases an
expertise.
▪ The day on hand (= waiting time) results from the average inventory
and the process specific takt time (TTP).
▪ The inventory value in the supermarket results from the average
inventory and the production costs.
    7
,
0
inventory
inventory pcs
max
pcs
Ø 
=
     
pcs
unit
time
P
pcs
Ø
unit
time TT
inventory
hand
on
days 
=
     
 
= pcs
$
pcs
$ costs
production
Ø
inventory
Ø
value
inventory
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 72
Location of Supermarkets in the Process
A supermarket to the customer keeps variations of customer call-offs out of
production and guarantees high delivery performance.
Supermarket to the customer
Shipping
Assembly
Press
Insert Molding
Kula
Assembly
● Consequences: example:
• High finished goods inventory value 173,460 pcs ≙ 555,072 $
• Long ∅-days on hand 8,500 min ≙ 5.9 days
• max. number of products 24 products
• min. response time to customer call-offs 1 day
1x day
F
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 73
Location of Supermarkets in the Process
 

 
 
 



























 

 

pcs
costs
production
inventory
$
Ø
time
takt
pcs
min
inventory
min
min
Ø
inventory
pcs
Ø
leadtime
cycle
wheel
over
change
RT
off
call
max.
for
factor
demand
daily
Ø
day
pcs
pcs
max
Ø
Ø
Ø
max
max
max
$
3.20
173,460
$
072
,
555
value
inventory
0.049
173,460
8,500
hand
on
days
247,800
0.7
173,460
inventory
days
7
1.3
27,238
247,800
inventory

=
=

=
=

=
=


=
=
+
=
−
● Consequences: example:
• High finished goods inventory value 173,460 pcs ≙ 555,072 $
• Long ∅- days on hand 8,500 min ≙ 5.9 days
• max. number of products 24 products
• min. response time to customer call-offs 1 day
A supermarket to the customer keeps variations of customer call-offs out of
production and guarantees high delivery performance.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 74
Location of Supermarkets in the Process
The further the supermarket is located upstream, the less inventory und number of
products need to be stored. But the response time increases.
Supermarket upstream
Shipping
Assembly
Press
Insert Molding
Kula
Assembly
● Consequences: example:
• Inventory value of components 25,161 pcs ≙ 20,129 $
• reduced ∅-days on hand 1,233 min ≙ 0.85 days
• reduced number of products 5 products
• increased response time to customer call-offs 3 days
1x day
FIFO
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 75
Location of Supermarkets in the Process
The further the supermarket is located upstream, the less inventory und number of
products need to be stored. But the response time increases.
● Consequences: example:
• Inventory value of components 25,161 pcs ≙ 20,129 $
• reduced ∅-days on hand 1,233 min ≙ 0.85 days
• reduced number of products 5 products
• increased response time to customer call-offs 3 days
 

 
 
 

























 

 

pcs
costs
production
inventory
$
Ø
time
takt
pcs
min
inventory
min
min
Ø
inventory
pcs
Ø
leadtime
cycle
wheel
over
change
RT
off
call
max.
for
factor
demand
daily
Ø
day
pcs
pcs
max
Ø
Ø
Ø
max
max
max
$
0.80
25,161
$
128
,
20
value
inventory
0.049
25,161
1,233
hand
on
days
35,944
0.7
25,161
inventory
days
1.2
1.1
27,238
35,944
inventory

=
=

=
=

=
=


=
=
+
=
−
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 76
Location of Supermarkets in the Process
Supermarkets to the suppliers keep the production running when suppliers have
delivery problems.
Supermarket to the suppliers
Shipping
Heat treatm.
● Consequences: example:
• inventory of incoming goods (turned rings) 95,309 pcs ≙ 38,123 $
• reduced ∅-days on hand 4,904 min ≙ 3,4 days
• min. number of products 1 products
1x day
FIFO
1x wk.
FIFO
Grinding
…
FIFO
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 77
Location of Supermarkets in the Process
Supermarkets to the suppliers keep the production running when suppliers have
delivery problems.
● Consequences: example:
• inventory of incoming goods (turned rings) 95,309 pcs ≙ 38,123 $
• reduced ∅-days on hand 4,904 min ≙ 3,4 days
• min. number of products 1 products
 

 
 
 



























 

 

pcs
costs
production
inventory
$
Ø
time
takt
pcs
min
inventory
min
min
Ø
inventory
pcs
Ø
leadtime
cycle
wheel
over
change
RT
off
call
max.
for
factor
demand
daily
Ø
day
pcs
pcs
max
Ø
Ø
Ø
max
max
max
$
0.40
100,072
$
029
,
40
value
inventory
0.049
100,072
4,904
hand
on
days
142,962
0.7
100,072
inventory
days
5
1.05
27,238
142,962
inventory

=
=

=
=

=
=


=
=
+
=
−
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 78
Planning the Implementation
Start to implement the future state in loops, beginning at the customer and going
upstream. Use workshops and projects to realize the actions necessary.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
main loop
(pacemaker loop)
production loop
upstream
Supplier loop
▪ By starting with the main loop the customer realizes improvements and the
process gains stability.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 79
Planning the Implementation
Define actions for each of the production loops to make the process vision come real.
continuous
flow
time
studies
SMED
WS
implement
SM
Supplier-
Kanban
production
leveling
implement
delivery
schedule
▪ Kaizen-Bursts mark the necessary actions.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
continuous
flow
implement
SM implement
SM
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 80
Planning the Implementation
The identified actions need to be prioritized and put in a chronological order.
Potential
Importance high
low
high
1
2
5
6
7
8
9
4
3
Action List
1. Implementfinished goods SM
2. Time studies
3. Create continuous flow in main
loop
4. Implementproductionleveling
5. ImplementcomponentSM
6. Create continuous flow in
productionloop upstream
7. SMED workshop at press
8. Implementincoming goodsSM
9. ImplementsupplierKanban
10.Implementdelivery schedule
10
low
▪ Start with the most important actions, that have a big impact on productivity.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 81
Planning the Implementation
After prioritizing the actions create a workshop schedule and define responsibilities
and due dates.
➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
45 53
52
51
50
49
43
42
Nov.
Oct.
48
47
46
Dec.
44
MOVE Trainer
Workshop … 10/19/09 - 10/25/09
today
note
responsible
Action
Review
close-out
presentation
Close-out 12/21/09
MOVE Trainer
Workshop …
…
11/12/09
MOVE Trainer
Workshop … 11/2/09 - 11/8/09
supported by
Dep. xyz
…
…
…
Project leader
Project …
12/6/09
10/26/09
Schulze
Action… 11/19/09
Meier
Action…
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 82
Targets of a value stream workshop:
▪ Visualizing current state processes in a value stream
▪ Identify waste and potentials
▪ Create a accepted process vision with due dates
▪ Create an action list with responsibilities
Workshop-Targets
A value stream workshop defines targets and actions to achieve improvements and
make the production lean.
Value stream analysis can be combined with other
analyses:
▪ analysis of handling steps
▪ analysis of space and distances
▪ analysis of the ordering process via SWIMLANE
Referring to the process vision the following
workshops should be performed:
▪ layout vision
▪ logistic vision
Gesamtverantwortung für Workshop:
Verantwortung für Vorbereitung:
Systemgrenze:
Ansprechpartner / temporär Telefon:
1 7 1
2 8 2
3 9 3
4 10 4
5 11 5
6 12 6
Datum: Datum:
Uhrzeit: Uhrzeit:
Workshoptitel:
Kick-Off Präsentation Zwischenpräsentation Abschlusspräsentation
Flächenreduzierung -40% Fertigungszeiten -20%
Umlaufbestand -70% Wiederbeschaffungswert -10%
Durchlaufzeit -70%
Rüstzeit -50%
Ort: Ort:
Datum:
Uhrzeit:
Ort:
Datum:
Uhrzeit:
Ort:
Ziele des Workshops:
Datum:
Seite: von:
Teilnehmer
Workshop-Definitionsblatt
Tägliche Kurzpräsentation
der Ergebnisse
Qualitativ
Ist-Zustand
Quantitativ
räumlich und inhaltlich:
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 83
Workshop-Participants
The results of a value stream workshop depends on the motivation and participation of
participants, who can provide the workshop team with valuable information.
Department: Function: attendance notes
segment leader LT Seg. decision maker
production leader PV
Business Unit
purchasing
sales
maintenance
maintenance
health and safety
quality
ergonomics
production
production
logistics
logistics
scheduling
scheduling
MOVE
MOVE
human resources
Participation at Kick-off und close out
shop council
▪ Full time participation means 100% presence and active cooperation.
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 84
Workshop-Agenda
The agenda in the workbook bases on the 7 steps for each Value Stream Analysis and
Value Stream Design.
▪ The agenda can be adjusted depending on the situation.
Time Monday Tuesday Wednesday Thursday Friday
08:00
09:00 Greetings, Presentation
round, Department
inspection
10:00 Basics MOVE
Short training Value
11:00
12:00
12:30 Lunch Lunch Lunch Lunch Lunch
13:00 Final presentation
14:00
15:00
15:30
16:00
16:45 Feedback discussion Feedback discussion Feedback discussion Feedback discussion
17:00
Day
solution
Actual-Map with
customers requirements
and Process
Finished Current State Future State-Map
including Material Flow
Finished Future State
Map, List of actions
Workshop plan,
Final presentation
Agenda "Value Stream Mapping and Design"
4. Detect Process Steps
and Inventory
5. Detect Material Flow
0. Define Basis for VSD
1. Eliminate Waste in
Material Flow
2. Assign Products to
Resources
5. Plan FIFO Lanes
6. Define Peacemaker
Process
Team allocation (who
does what)
Potential assessment,
Workshop planning
Preparation Final
presentation and dry
running
1. Define System
Boundary
2. Select Product Family
3. Understand Customer
Requirements
6. Detect Information
Flow
7. Draw Timeline
Identify Waste and
Potentials
3. Realize Takt Time
4. Create continous Flow
5. Plan Kanban-
regulation and
Supermarket
7. Level the Product Mix
Identify necessary
Process optimisation,
Divide the
implementation in one-
steps
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 85
Preparation of the Value Stream Workshop
Besides basic preparations value stream workshops use different data and working
materials.
➊
➋
➌
➍
➎
➏
➐
➊
➋
➌
➍
➎
➏
➐
VSA VSD
▪ Data for products
▪ products,demands
▪ printed and cut value stream
symbols
▪ Data of resources
▪ OEE, C/O, …
▪ Data of customer
requirements
▪ demands
▪ delivery quantities and
sequences
▪ delivery reliability
▪ Data of suppliers
▪ demands
▪ delivery quantities and
sequences
▪ delivery reliability
Future
Current
▪ Data for products
▪ products,demands
▪ Data of resources
▪ demand of other
segments forassigned
resource
▪ Data for products
▪ demands,variations,
handling units
▪ printed and cut value stream
symbols
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 86
Workbook
To support the preparation and accomplishment a workbook has been created.
▪ The workbook can be found at:
???
Uhrzeit Montag Dienstag Mittwoch Donnerstag Freitag
08:00
09:00
10:00
11:00
12:00 Vorbereitung
Abschlusspräsentation
und Trockenlauf
12:30 Mittagspause Mittagspause Mittagspause Mittagspause Mittagessen
13:00
14:00
15:00
15:30
16:00
16:45 Tagesabschluss Tagesabschluss Tagesabschluss Tagesabschluss
17:00
Tages-
ergebnis
Ausgewählte Produkt-
familie, IST-Map mit
Kunden-anforderungen
Fertiges IST-Map,
Identifizierte
Schwachstellen und
Potentiale
SOLL-Map mit
Materialfluss
Fertiges SOLL-Map
Maßnahmenliste
Workshopplan,
Abschlusspräsentation
Agenda "Wertstromanalyse und -design"
4. Erfassen
Prozessschritte,
Prozessdaten und
Bestände
5. Erfassen der
Materialflüsse
0. Definieren Basis für
WSD
1. Beseitigen
Verschwendungen im
Prozess
2. Zuordnen von
Produkten auf
Ressourcen
5. Definieren und
Abschätzen von
Supermärkten und FIFO-
Bahnen
6. Definieren
Schrittmacher
Grundlagen MOVE
Kurzschulung Wertstrom
Priorisieren
Verbesserungs-
maßnahmen und
Workshopplanung
Begrüßung,
Vorstellungsrunde,
Bereichsbegehung
Abschlusspräsentation
1. Systemgrenzen
definieren
2. Auswahl
Produktfamilie
3. Erfassen
Kundenanforderungen
6. Erfassen
Informationsflüsse
7. Erstellen Zeitleiste
Identifizieren
Schwachpunkte und
Potentiale
3. Ermitteln Kundentakt
4. Definieren Bereiche
mit kontinuierlicher
Fließfertigung
5. Definieren
Supermärkte und FIFO-
Bahnen
7. Definieren Steuerung
des Produktmix
Erstellen Zeitleiste für
SOLL-Prozess,
Abschätzen Supermärkte
und FIFO-Bahnen
Identifizieren
Verbesserungs-
maßnahmen
Prozesskundentakte
0,000 min
0,020 min
0,040 min
0,060 min
0,080 min
0,100 min
0,120 min
0,140 min
Prozess
1
Prozess
2
Prozess
3
Prozess
4
Prozess
5
Prozess
6
Prozess
7
Prozess
8
Prozess
9
Prozess
10
Prozess
11
Prozess
12
Prozess
13
Prozess
14
Prozess
15
Prozess
16
Prozess
17
Prozess
18
Prozess
19
Prozess
20
Zeit [min]
OEE-Verluste
Mittlere Zykluszeit
Prozessspezifischer Kundentakt
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 87
Wertstrom-Workshop
Präsentationsmaster
Clouse Out Presentation
The close out presentation should be performed in an enlarged audience.
Besides the team members others should be invited:
▪ plant manager and segment leader of other segments
which are suppliers or customers
▪ MOVE-Trainer of other segments
▪ other involved departments:
maintenance, quality, logistics
▪ The close out presentation should include the
current process, the process vision and all
relevant findings.
▪ For details use the original current and future
state map.
▪ A close out presentation master can be found at: (german website)
MOVE > MOVE Umsetzungsstandards > Wertstrom
20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010
Page 88
Thank you for your attention!
move@schaeffler.com

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value stream maping advnaced training and guide

  • 2. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 2 Value Stream Value stream perspective gives an overall picture of all processing steps, from raw material of the suppliers to finished goods for the customer. Value stream analysis Value stream design Describes the current path of a product "ramp-to-ramp" and visualizes material and information flow Draws up the future state, showing how the value stream should be developed during the next 6 - 18 months
  • 3. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 3 Flow Kaizen and Process Kaizen Both, improvement of the value stream and elimination of waste at the shop floor are necessary, improvement in one improves the over. – Improvementof the value stream (Flow Kaizen) focuseson material and information flow, which requires a higher-level perspective. – Elimination of waste at single processing steps (Process Kaizen) focuseson flow and interaction of people and process. Focus: complete material and information flow Raw material Finishedproduct Value stream I Inventory Softpart machining Process Heat treatment Process Hard machining Process Assembly Process I Inventory I Inventory Focus: individual process
  • 4. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 4 Value Stream Map Based on a standardized structure, value stream maps make material and information flow transparent. Processingsteps / Materialflow Lead time bar Supplier Customer Control/ Informationflow
  • 5. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 5 Outside Sources Manufacturing process Data Box Inventory Truck shipment Movement of finished goods Movement of prod. material Movement by PUSH Transfer of lim. quantities of material by FIFO Supermarket Withdrawal Material handler Operator Value Stream Symbols I Value stream maps use standardized set of symbols. Symbols: Material flow 300 pieces MO + WE max. 20 pieces FIFO WT= 27 600 CT= 50s .... Costumer Assembly
  • 6. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 6 Manual information flow Electronic information flow Information Load/Mix leveling Production Kanban Withdrawal Kanban Signal Kanban Kanban post box Kanban arriving in batches "Go See" production scheduling ConWIP Change over wheel Problem/ Issue Workshop/ Measure Value Stream Symbols II Value stream maps use standardized set of symbols. Symbols: Information flow / Kaizen Weekly schedule Con. WIP SMED workshop
  • 7. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 7 Value stream design Value stream analysis ➊ Define system boundary ➋ Selectan appropriate productfamily ➌ Understand customerrequirements ➍ Detectprocesssteps and inventory ➎ Detectmaterial flow ➏ Detectinformation flow ➐ Draw the time line Currentstate map ➊ Eliminate waste in the material flow ➋ Assignproducts to resources ➌ Realize takt time ➍ Create continuous flow ➎ Create pull using supermarkets ➏ Define the pacemakerprocess ➐ Level the productmix Future state map = Process vision Procedure Drafting Current state and Future state map happens in 7 steps each.
  • 8. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 8 Define System Boundaries Value stream analysis and design may focus on the total value stream as well as on sub areas – but always ramp-to-ramp. Total value stream Supplier Schaeffler Customer Supplier Plant B Customer Plant A Plant C Soft part mach. Heat treatm. Hard mach. Assem- bly Plant A Plant C Company level Plant level ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA ▪ Excluded process steps, customers or suppliers has to be documented.
  • 9. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 9 Select an appropriate Product Family In order to create maximum benefit Value stream analysis should start at the product family with highest annual turnover. Priority results from an ABC-Analysis. ▪ In addition, the percentage of annual demands has to be mentioned. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA Mio. $ 12,3 5,8 3,8 2,1 1,8 1,6 0,2 Percent 44,6 21,0 13,8 7,6 6,5 5,8 0,7 Cum % 44,6 65,6 79,3 87,0 93,5 99,3 100,0 Product family others V IV II VII I III 30 25 20 15 10 5 0 100 80 60 40 20 0 Annual turnover in Mio. $ Percent
  • 10. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 10 Identification of Product Families A Product-Process-Matrix subsumes product families according to similar processes at the same manufacturing equipment in the same process sequence. ▪ The Product-Process-Matrix fits to a product portfolio that can be sufficiently differentiated by occupied equipment. ▪ In addition product families can be identified by detection of process families and a subsequent analysis of analogous product features within these families. Process steps/ Equipment Turning Washing Heat treatm. Grinding Assembly Packaging F-… ✗ ✗ ✗ ✗ ✗ F-… ✗ ✗ ✗ ✗ ✗ F-… ✗ ✗ ✗ ✗ F-… ✗ ✗ ✗ F-… ✗ ✗ ✗ F-… ✗ ✗ ✗ … Products Product family ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
  • 11. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 11 Understanding Customer Requirements Mapping the current state always starts with detection and visualization of customer requirements. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA ▪ Important information are average and variation of annual demands as well as purchased types of the product family.
  • 12. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 12 Available working time Determination of Takt Time Takt time results from dividing available working time by average of customer demands. Available working time Daily customer demands 900 min Available working time Average of daily customerdemands 750 pieces Takttime 72 s 500 250 1,000 750 1,250 pieces Jan Mar May Jul Sep Oct Dec History today Plan Shift duration 480 min. Number of daily shifts * 2 Total of breaks – 60 min. Available working time = 900 min. ⌹ ⌸ Breaks ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA ▪ For current state map determination of takt time bases on historical data, for the future state map expected customer demands has to be used (in regard to the time frame of the process vision).
  • 13. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 13 Detection of Process Steps and Data Process steps are drawn below the customer requirements and supplemented with relevant process data. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA ▪ All process data should be gathered on the shopfloor. Don't believe in system data, at least check their reliability.
  • 14. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 14 Process Data for Value Stream Analysis Process data are crucial for value stream analysis. According to the process specifics different data has to be gathered. Process with Process data 1 resource more than 1 resource batches CT: Cycle time ✗ ✗ ✗ PT: Processing time ✗ ✗ WTP*: Working time if varies from general working time C/O: Changeovertime ✗ ✗ ✗ OEE: Overall Equipment Effectiveness ✗ ✗ ✗ LS: Lot size ✗ ✗ Batch size NR: Number of resources ✗ AA: Scrap rate ✗ ✗ ✗ NA: Rework rate ✗ ✗ ✗ TTP*: Processspecific takt time if varies from takt time Process CT = 0,080 min OEE = 0,64 … *P = process specific value ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
  • 15. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 15 Indication of Inventory Between the process steps the inventory is indicated as it has been detected on the shopfloor. That needs counting all products waiting in front of a process step. ▪ It does not matter, whether the inventory lies in front of or behind a resource or at a supply area, each material between 2 process steps has to be summarized. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
  • 16. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 16 Detection of Material Flow Internal material flow between the process steps as well as external material flow to the customer and from the suppliers has to be indicated according to their logic. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA ▪ For evaluation of supplier reliability to the customers delivery quantities and frequencies has to be known.
  • 17. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 17 Detection of Information Flow Beginning at the customer the information flow toward production control, suppliers and all individually scheduled process steps is indicated. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA ▪ "Go See" production scheduling means adjusting schedules based on checking current inventory levels in the shopfloor.
  • 18. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 18 Drawing the Timeline The timeline visualizes the waste in the value stream by outlining the long waiting time between the process steps. ▪ The ratio between lead time and processing time (value adding time) of a single product indicates the process efficiency. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
  • 19. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 19 Current State Map The result of the value stream analysis is a clear overall picture of material and information flow. ▪ Mapping of relations is more important than an in-depth analysis of details. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
  • 20. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 20 Identification of Weak Spots By means of the current state map sources of waste and obvious weak spots can be indicated in the visualized process. 3 5 1 2 ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA 4 6
  • 21. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 21 Current State Map Drawing the current state map and analyzing the process requires strong team work. Example: IWK, Seg. 03, Product family DFC ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA
  • 22. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 22 Future State as Process Vision Drawing the future state map is the crucial activity of a value stream workshop and defines how the process will look like in near future. Future state Definition of the process vision is to be continuously repeated! Vision of today is the current state of tomorrow! Currentstate Process vision
  • 23. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 23 Takt-Principle Requirement of the Future State The definition of the future state process requires the implementation of the 3 main principles of LEAN Production in order to produce synchronously to the takt time. Flow-Principle Pull-Principle Manufactured parts flow to the next process step without interruption. The following process withdrawal only the parts which are needed. Production to the takt time by leveling work load.
  • 24. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 24 Value stream design Value stream analysis ➊ Define system boundary ➋ Selectan appropriate productfamily ➌ Understand customerrequirements ➍ Detectprocesssteps and inventory ➎ Detectmaterial flow ➏ Detectinformation flow ➐ Draw the time line Currentstate map ➊ Eliminate waste in the material flow ➋ Assignproducts to resources ➌ Realize takt time ➍ Create continuous flow ➎ Create pull using supermarkets ➏ Define the pacemakerprocess ➐ Level the productmix Future state map = Process vision Procedure Drafting Current state and Future state map happens in 7 steps each. ▪ Basis for designing the future state is the analyzed current state map and panned turnover for time frame of the process vision.
  • 25. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 25 After Elimination of Waste I Short lead times can be achieved by consequent elimination of waste in the process. Value adding Waste Value adding Waste Time Time Before ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 26. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 26 Elimination of Waste II Non-value-adding process steps should be eliminated from the process vision – as far as technological possible. Therefore, the current process has to be scrutinized. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ Usually, process steps can not be eliminated without adjustment of processes upstream or downstream, since the quality level must be constant. ▪ Deburring doesn'tincrease the value in customer'seyes,but is only required by the press upstream ▪ Elimination of the processstep requires technologicaladjustmentof the processes upstream,e.g. pressing free of burr
  • 27. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 27 Process 4 Process 3 Process 2 Process 1 Assignment of Products to ResourcesI Unambiguous assignment of products / product families to available resources leads to smooth material and information flows. Regarding to product family ▪ Unambiguous assignment of several product families to manufacturing equipment ▪ Flow-principle for each product family ▪ Assignment of responsibilities over complete process chain ▪ Undirected material flow according to free capacities ▪ Huge manual effort for production scheduling Focus on capacity utilization ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD differentpaths of a productover the resources of the several process steps definite path of a productover a defined resource in each process step
  • 28. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 28 Assignment of Products to ResourcesII During the assignment of product families to resources technological feasibility and available capacity have to be confirmed. ▪ If technological and capacitive requirements are fulfilled, a product family should be assigned to only one resource chain. ▪ The assignment of more than one product family to a single resource results in multiple material flows that merge and branch out. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD Arbeitstage p.a. 250 X Zuordnung zur Produktion auf dieser Ressource (X) technologisch kann die Type auf der Ressource gefertigt werden - Type kann technologisch nicht auf der Ressource gefertigt werden OEE [%] ZZ(mittel) [min] Nettoarbeitszeit pro Arbeistag [min] Type Stk. / Monat Stk./Monat Stk./Monat Stk./Monat F-………. 15.000 X 15.000 X 15.000 - 0 0 0 0 F-………. 6.790 - 0 X 6.790 - 0 0 0 0 F-………. 24.450 - 0 - 0 X 24.450 0 0 0 F-………. 21.300 - 0 X 21.300 (X) 0 0 0 0 F-………. 12.900 - 0 - 0 X 12.900 0 0 0 F-………. 4.620 X 4.620 - 0 (X) 0 0 0 0 F-………. 8.560 (X) 0 (X) 0 X 8.560 0 0 0 F-………. 23.500 - 0 - 0 X 23.500 0 0 0 F-………. 101.500 X 101.500 - 0 - 0 0 0 0 F-………. 15.320 X 15.320 (X) 0 - 0 0 0 0 F-………. 7.850 (X) 0 (X) 0 X 7.850 0 0 0 F-………. 4.350 (X) 0 X 4.350 (X) 0 0 0 0 F-………. 2.340 - 0 X 2.340 (X) 0 0 0 0 F-………. 6.770 - 0 - 0 X 6.770 0 0 0 Summe 136.440 49.780 84.030 resultierende Produktionskapazität 148.026 48.340 86.283 11.813 86.283 86.283 Kapazitätsdeckung 11.586 -1.440 2.253 11.813 86.283 86.283 Auslastungssstatus 92% 103% 97% 0% 0% 0% Prozess 2 Ressource 1 Ressource 2 Ressource 3 Ressource 1 Ressource 2 Ressource 3 Prozess 1 70% 0,133 1350 55% 0,32 1350 65% 0,226 1440 21% 0,5 1350 65% 0,226 1440 65% 0,226 1440 Kapazitätsabgleich
  • 29. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 29 Cycle time Takt time Bottleneck Overcapacity Realization of Takt Time Production and assembly have to follow takt time. Otherwise, waste is caused by overproduction or by breaking the customer requirements. Cycle time Takt time In takt time – Leveling of workload by elimination of bottlenecks and downsizing of capacities – Unleveled workload cause bottlenecks and overcapacities Out of takt time ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 30. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 30 Prozessspezifische Kundentakte vs. effektive Zykluszeiten 0,000 min 0,200 min 0,400 min 0,600 min 0,800 min 1,000 min 1,200 min 1,400 min Prozess 1 Prozess 2 Prozess 3 Prozess 4 Prozess 5 Prozess 6 Prozess 7 Prozess 8 Prozess 9 Prozess 10 Prozess 11 Prozess 12 Prozess 13 Prozess 14 Prozess 15 Prozess 16 Prozess 17 Prozess 18 Prozess 19 Prozess 20 Zeit [min] OEE-Verluste Mittlere Zykluszeit Prozessspezifischer Kundentakt Takt Time vs. Cycle Time Comparison of takt time and cycle time figure out, whether it can be produced in takt time or whether the process has to be adjusted. ▪ While comparing cycle time and takt time the Overall Equipment Effectiveness (OEE) has to be mentioned, which increases the effective cycle time. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD Kundentakt vs. effektive Zykluszeit Kundentakt Kundentakt = 1,2 min
  • 31. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 31 Process specific Takt Time For multiple value streams with branches or various working time the resulting takt time varies between the process steps. Prozessspezifische Kundentakte vs. effektive Zykluszeiten 0,000 min 0,200 min 0,400 min 0,600 min 0,800 min 1,000 min 1,200 min 1,400 min Prozess 1 Prozess 2 Prozess 3 Prozess 4 Prozess 5 Prozess 6 Prozess 7 Prozess 8 Prozess 9 Prozess 10 Prozess 11 Prozess 12 Prozess 13 Prozess 14 Prozess 15 Prozess 16 Prozess 17 Prozess 18 Prozess 19 Prozess 20 Zeit [min] OEE-Verluste Mittlere Zykluszeit Prozessspezifischer Kundentakt ▪ Analyzing branched value streams effective cycle times have to be compared with the corresponding process specific takt time. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 32. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 32 Assembly/ Packaging Material Flow / Linkage of Processes While drawing the process vision only lean material flow principles should be considered. FIFO-Lanes Directly linked Supermarket-Pull Continuous production with one-piece-flow FIFO Material flow with continuous machining sequence and controlled WIP Material flow controlled by withdrawal from the supermarket WIP / Lead time 1 2 3 Montieren Assembly Packaging Assembly Packaging ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD max. 20 pcs.
  • 33. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 33 Realization of Continuous Flow I Continuous flow means producing without summarizing parts to lots, but flow of material from one process step to the next without interruption. One piece flow Material flows from step to step without break Material is sent ahead from step to step in lots Lot production WIP Raw material WIP Finished good A B C Raw material Finished good ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ One-piece-flow does not always mean "one" piece, it can also mean sending-ahead the smallest technological processing quantity.
  • 34. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 34 One-piece-flow ▪ No WIP ▪ Short lead time Realization of Continuous Flow II Continuous flow means the directly linked of subsequent process steps. In the value stream map linked process steps melt into one process box. Diskontinuierliche Losfertigung 300 pcs Finishing CT = 0,080 min OEE = 0,80 Grinding CT = 0,080 min OEE = 0,64 Rough-Grinding CT = 0,075 min OEE = 0,80 ▪ High WIP ▪ Long lead time Lot production ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ Process data of continuous flow process boxes regard to the equipment as a whole.
  • 35. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 35 Decision criteria for continuous flow Priority objective is to establish continuous flow. Therefore, several preconditions have to be fulfilled. Preconditions for realization of continuous flow  Required invest has to generate payback according to given rules.  Process steps have to be organizationally and technologically harmonized (shift model, batch size, changeover time, temperature)  The effective cycle time of the flow has to comply with the takt time.  The material flows continuously, without branching. Since directly linked of process steps reduces the Overall Equipment Effectiveness, OEE has to be explicitly checked: Process2 Process1 Total OEE OEE OEE  = ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 36. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 36 Decision tree "Continuous flow" Using the decision tree can simplify the decision whether the link-up of the process steps to continuous flow is feasible. Entscheidungsbaum Direkte Kopplung Technologische Wartezeiten zwischen den Prozessen notwendig? Prozesszeiten stark unterschiedlich? Kapazitätsverlust durch eindeutige Zuordnung akzeptabel? Effektive Zykluszeit kleiner als Prozess- kundentakt? Mehrfache Bearbeitung auf einer Ressource notwendig? Verzweigt sich der Wertstrom? Ist das Schichtmodell anpassbar, falls unterschiedlich? One piece flow über räumliche Distanz wirtschaftlich? Verringerung der räumlichen Distanz vertretbar? Ja Nein Nein Ja Ja Nein Nein Direkte Kopplung Ja Ja Ja Nein Nein Ja Ja Nein Ja Nein Nein Entscheidungsbaum Supermarkt / FIFO ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ If one of the criteria is not fulfilled, the process steps has to be separated by FIFO-Lanes or Supermarket-Pull.
  • 37. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 37 Realization of Supermarket-Pull If the extent of continuous flow is limited, the material flow between the process steps should be organized by Supermarket-Pull. ➊ ➋ ➌ ➍ ➎ ➏ ➐ WSD Supermarket Pull-Principle – Process upstream only produces in order to replenish withdrawn products – Number of Kanban cards limits the inventory – "Whenever something is missing, replenish it!" Push – Material flows to the process step downstream based on an estimation what might be needed – Undefined, uncontrolled inventory I Process 2 Process 1 Process 2 Process 1
  • 38. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 38 Definition Supermarket A supermarket is a defined inventory between two process steps, which controls the production loop upstream according to the withdrawn quantity of a specific product. Supermarket ▪ Only the withdrawn product is scheduled Assembly Insert molding ➊ ➌ ➋ ▪ Realization of FIFO while withdrawal ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 39. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 39 Definition Supermarket A supermarket distinguishes from B-Storage and FIFO-Lane by referring to a certain product and by controlling the production loop upstream. B-Storage ▪ no control function ▪ no specific types ▪ no specific assignment to a certain resource upstream FIFO-Lane ▪ Controlling the upstream process via min./max. inventory ▪ no specific types ▪ defined assignment to a certain resource upstream Supermarket ▪ Controlling the upstream production loop via Kanban ▪ for specific types ▪ defined assignment to a certain resource upstream Assembly Insert mold. Assembly Insert mold. Assembly Insert mold. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 40. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 40 Decision Criteria for Supermarket The decision for realizing a Supermarket-Pull bases on comparison of resulting inventory and response time. Pro Supermarket ▪ If the response time is longer than the fixing horizon given by customers for their orders or delivery schedules ▪ If the control effort for continuously consumed products should be reduced Where Supermarket? ▪ Upstream to a process step that increases the number of product types, in order to reduce stored types and replenishment time ▪ Between supplier and main branch, in order to separate replenishment time of finished goods from purchase of raw material or components (variation of delivery time and quantity) ▪ In front of the customer, in order to separate the process from variation of customer demands Contra Supermarket ▪ If resulting worth and space of the defined inventors is too high or inventory turnover is too less ▪ Decision results from ABC- and XYZ-Analysis ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 41. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 41 Decision Criteria for Supermarket Depending on the consumption of a product results average inventory value and average days on hand. Inventory ø stock max. stock Time Safety stock Continuous consumption ▪ Average stock value is almost centric between maximum inventory and safety stock Inventory ø stock max. stock Time Safety stock Discontinuous consumption ▪ Average inventory value is close to the maximum inventory value ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 42. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 42 Decision Criteria for Supermarket For the decision pro or contra supermarket the product portfolio has to be analyzed regarding to stability of consumption and to the value structure. ABC-Analysis Focus on products with highest value Value A B C XYZ-Analysis Focus on products with low variation of consumption Consumption ▪ X-Products ▪ Y-Products ▪ Z-Products ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD Number of products Time
  • 43. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 43 ABC Analysis Regarding to the value classification of a product varies the decision to establish a supermarket-pull. ABC Analysis Evaluation of products regarding to their value Value Number of products A B C ▪ Calculation of the value bases on production costs (GPC) at the appropriate value-added step and on the annual demand of the product Distribution of values TYP 80% of turnover (mostly 10% of the products) A 15% of turnover (mostly 20% of the products) B 5% of turnover (mostly 70% of the products) C Value classification ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 44. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 44 XYZ Analysis Regarding to the stability of consumption of a product varies the decision to establish a supermarket-pull. XYZ Analysis Classification regards to the coefficient of variation Consumption ▪ X-Product ▪ Y-Product ▪ Z-Product Time ▪ XYZ analysis should base on real customer demands within an representative time frame. CV* TYP CV ≤ 0,2 X 0,2 < CV ≤ 0,5 Y CV > 0,5 Z Coefficient of variation CV *Suggestion, adjust for individual cases CV = Standard deviation Mean ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 45. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 45 Establishing supermarket-pull in the main branch of the value stream fits best for products with high value and less variation of consumption. Decision Criteria for Supermarket ▪ Due to the high value of products in the main branch of the value stream only such with continuous consumption and in consequence short waiting time should be controlled by withdrawal downstream. Supermarket in the main branch of the value stream A-Product B-Product C-Product Consumption variation t t t Value Make to order ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD X-Product Y-Product Z-Product
  • 46. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 46 At the inflow into the main branch of the value stream also for components with less value and higher variation of consumption supermarket-pull can be realized. Decision Criteria for Supermarket A-Product B-Product C-Product X-Product Y-Product Z-Product Make to order t t t Value Supermarket Consumption variation ▪ Consumption control can be extended also to such components with higher variation of consumption, especially for such with less value. ▪ A missing product of the category C/Z will also stop the flow in the main branch. ▪ Therefore, the supermarket is primarily used for safekeeping the availability of components. Supermarket at the inflow into the main branch ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 47. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 47 Decision Tree "Supermarket / FIFO" Using the decision tree can simplify the decision whether supermarket is suitable or compulsory. Auftragsfixierungs- horizont kleiner als Reaktionszeit? Vereinfachte Steuer- ung kompensiert den Bestandsaufbau durch Supermarkt? Verbrauch der Prozessprodukte auf durch mehrere Verbraucher? Nein Nein Supermarkt FIFO Ja Nein Ja Ja Entscheidungsbaum Supermarkt / FIFO ➊ ➋ ➌ ➍ ➎ ➏ ➐ WSD ▪ If one of the criteria is fulfilled, supermarket-pull should be established. Otherwise, material flow between process steps has to be maintained by a FIFO lane.
  • 48. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 48 Definition of FIFO-Lane A FIFO-lane is a possibility to realize material flow between physically separated process steps keeping the machining sequence. Using a defined (minimum/) maximum WIP in a FIFO-lane the production upstream can be controlled. FIFO-Lane Process 1 Process 2 FIFO FIFO Process 1 Process 2 Max. Pcs *ConWIP = constant "Work in Process" FIFO Process 1 Process 2 ConWIP * Control by WIP in FIFO-lane Control by separate signal ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 49. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 49 Branching of Value Stream Due to the usage of products in following process steps FIFO-lane or supermarket are suitable at dividing branches of the value stream. FIFO-Lane ▪ Unambiguous assignment of products to a certain process step downstream Supermarket ▪ Multiple usage of products in several process steps downstream Process 2 Process 3 Process 1 Process 2 Process 3 Process 1 ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 50. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 50 Merging of FIFO-Lanes Where multiple value streams are merged the machining sequence in FIFO-lanes has to be separately considered and controlled. Merging FIFO-Lanes Multi-FIFO ▪ Technological restrictions at processes downstream ▪ Applying FIFO only within the groups ▪ No technological restrictions ▪ Safekeeping of FIFO needs logistical effort Process 1 Process 2 Process 3 Process 1 Process 2 Process 3 FIFO FIFO FIFO ▪ If FIFO is annulled special rules has to be defined for machining sequences (e.g. changeover scheduling for heat treating programs) ➊ ➋ ➌ ➍ ➎ ➏ ➐ WSD
  • 51. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 51 Definition of Pacemaker Process Production schedules should only be sent to one process step in the value stream – to the pacemaker process. Scheduling the pacemaker process ▪ Scheduling only at the pacemaker process ▪ Process steps upstream are controlled by consumption control ▪ Central scheduling of each process step by MRP ▪ Additional coordination between the process steps necessary Scheduling each process step Control MRP MRP I ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ Production control for process steps upstream are done at the shopfloor level by Kanban cards. Process 2 Process 1 Process 2 Process 1
  • 52. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 52 Definition of Pacemaker Process Scheduling the production at the pacemaker process defines Pull for material flow upstream and FIFO-Push downstream. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ At the pacemaker process the product becomes order specific. Material flow upstream and downstream to the pacemaker process MRP Process 2 Process 1 Process 3 max. 20 pcs FIFO … … ▪ Upstream (leftward) to the pacemaker process material results in consumption control (Pull) ▪ It will be produced, only what was already withdrawn ▪ Downstream (rightward) to the pacemaker process material flow results in order control ▪ Material flows away over the following process steps as FIFO-Push
  • 53. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 53 Response time including delivery time must be shorter than fixing horizon given by customers for their orders or delivery schedules. Make-to-stock ▪ Defined finished products are stored in the supermarket, delivered according to the customercall-offs and refilled afterwards. ▪ Response time is short, but inventory of finished goods is very high. Make-to-order ▪ If lead time through the process downstream is short enough, the pacemakerprocessis further upstream. ▪ Lead time from scheduling the order to delivery has to be predictable. Response Time to the Customer Assembly + Packaging Bearing assembly Insert Molding FIFO FIFO Customer Assembly + Packaging Bearing assembly Insert molding FIFO FIFO Customer MRP Consumption control Order control ▪ The shorter the fixing horizon given by the customer the further downstream the pacemaker process has to be established. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 54. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 54 Leveling the Product Mix Production of several products should be proportionally leveled over available working time at the pacemaker process. Every Part Every Interval (EPEI) ▪ Continuous reduction of lot sizes results in high flexibility ▪ Production according to customers demand ▪ Low flexibility requires high inventory of finished goods ▪ Avoided changeovers result in production of huge lots Huge lot sizes Week1 Week2 Week3 Week4 A B C D E 400 A 200 A 200 B 200 B 200 C 200 C 100 D 100 E Week1 Week2 Week3 Week4 A B C D E weekly 150 A, 100 B and 100 C as well as 50 D or 50 E in rotation ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ EPEI is not equal for all products, but the multiple of the shortest interval (for the example given: A-C every week, D/E every second week)
  • 55. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 55 Leveling the Product Mix The Changeover wheel defines a optimal changeover sequence for all products, which are produced at a certain resource. ▪ According to the given turning direction products are set-up Others (order controlled products): ▪ At the changeover wheel one or more placeholders have to reserve capacity for ordercontrolled products. ▪ The shorter the required response time for these products the more placeholders have to be considered. ▪ Width of a slot for a certain productdoes not correspond to it quantity ▪ A certain productma y have more than one slot at the changeoverwheel. Changeover wheel ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 56. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 56 Calculation of EPEI* Downtime According to EPEI and to a given percentage of daily changeover time lot sizes can be determined. ▪ 10% of available working time should be used for changeovers. ▪ Lot size corresponds to the quantity that is withdrawn within EPEI. ▪ Longest EPEI corresponds to one revolution of the changeover wheel. *EPEI = Every Part Every Interval days 5 days 4,4 1350 10% 120 5 time changeover daily time Changeover EPEI day min min  =   =  = Time left for changeovers ∑ Equipment uptime Time to run for the daily demand of the 5 products C/O 1 C/O 2 C/O 3 C/O 4 C/O 5 Leveling the Product Mix ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ Reduction of EPEI can be achieved by reduction of changeover time. Available working time
  • 57. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 57 Reduction of changeover costs for each changeover Resulting smaller lot sizes for each product Resulting smaller average size of the supermarket Leveling the Product Mix Current state Future state € E D C B A E D C B A E D C B A t E D C B A € t € E D C B A t E D C B A € t Run of inventory of product A average inventory average inventory ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD Run of inventory of product A
  • 58. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 58 Consumption controlled products via supermarket Order controlled products via FIFO-lane → FIFO → Insert Molding Press Assembly Shipping ▪ In the assemblyordercontrolled as well as consumptioncontrol- led products are assembled. Therefore,productionsequence has to be given. ▪ The changeoverwheel defines sequence of consumption controlled products and reserves capacity of order controlled products waiting in the FIFO- lane. ▪ If order controlled products arrive very seldom,a "right of way" rule can be installed. Order control and consumption control at one resource → FIFO → Leveling the Product Mix Combination of order control and consumption control requires clearly defined and communicated rules. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 59. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 59 Future State Map Result of the value stream design is the future state map that showing the process that is to be realized during the following months. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ The time line has to be completed with average days on hand of the products in supermarket and FIFO-lanes to figure out the improvements.
  • 60. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 60 Future State Map Drawing the future state map requires creativity and courage to challenge the given state. But it is worth. Example: IWK, seg. 03, product family ZMS ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD ▪ The process vision has to be SMART (specific, measurable, agreed to, realistic and time bound).
  • 61. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 61 Dimensioning the FIFO-Lane Dimensioning a FIFO-Lane depends on the parameters of the connected processes. Influencing parameters for FIFO-lanes  Distance  Changeover times  Downtimes  Varying cycle times ▪ The assumption in the following slides is, that the process downstream is no bottle neck. Therefore the FIFO-lane buffers material, if downtimes occur at the process downstream. ▪ If downtimes occur at processes upstream, the FIFO-lane might very well run out of material.
  • 62. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 62 Dimensioning the FIFO-Lane FIFO-Lanes should hold the possibility to buffer material in case of downtimes, so the process upstream does not need to stop production. Maximum Inventory Average Inventory ▪ The maximum inventory defines the length of the FIFO-Lane. ▪ The max. Inventory is influenced by various factors. ▪ The simplified formula for the dimensioning is influenced by the max. calculated inventory for each factor: ▪ Referring to the average inventory the waiting time in the FIFO-Lane is calculated. 1,5 ] [ inventory max. ] [ inventory pcs calculated pcs max  = 0,5 ] [ inventory ] [ inventory pcs max pcs Ø  =       pcs unit time P pcs Ø unit time TT inventory time waiting  =
  • 63. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 63 Dimensioning the FIFO-Lane The number of transports between to separated processes defines the quantity, the FIFO-Lanes must be able to take. Large distance in the factory or to external processes example: FIFO Insert Molding CT = 0,085 min WTP = 450 min/Shift Assembly CT = 0,043 min 700m ] [ CT ] [ transports of number ] [ time working ] [ inventory pcs min 1 Process shift 1 shift min pcs max  = FIFO pcs min shift shift min pcs max 0,085 4 450 324 . 1 ] [ inventory  = = ▪ The space for the max. inventory needs to be reserved behind the process upstream as well as in front of the process downstream. The inventory will be physically existent just once.
  • 64. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 64 Dimensioning the FIFO-Lane Producing different products with varying cycle time depending on the type, longer than the takt time, will create temporary inventory, the FIFO-lane must be able to take. Cycle time variations FIFO Assembly CT = 0,035 – 0,175 min TTP = 0,056 min LS = 1.000 pcs ] [ TT ] )[ TT (CT size lot ] [ inventory pcs min P pcs min P max pcs max −  = pcs min pcs min max 056 , 0 ) 056 , 0 (0,175 1.000 125 . 2 inventory −  = = Insert Molding example:
  • 65. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 65 Dimensioning the FIFO-Lane FIFO-lanes must be able to take temporary inventory that the process upstream produces while the process downstream is still on change-over. Change-over of the process downstream FIFO Insert Molding CT =0,085 min C/O = 90 min Assembly CT = 0,043 min C/O = 120 min ] [ CT ] [ time c/o ] [ inventory pcs min 1 process min 2 process pcs max = pcs min min max 0,085 120 1.412 inventory = = example:
  • 66. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 66 Dimensioning the FIFO-Lane FIFO-lanes must even be able to take temporary inventory that the process upstream produces while the process downstream has to deal with downtimes. Downtimes of the process downstream FIFO Insert Molding CT =0,085 min Assembly CT = 0,043 min MTTR* = 40 min ] [ CT ] [ MTTR ] [ inventory pcs min 1 process min 2 process pcs max = pcs min min max 0,085 40 471 inventory = = *MTTR = Meantime to repair example
  • 67. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 67 Dimensioning the FIFO-Lane Regarding the influencing factors the FIFO-lanes can be dimensioned. Maximum Inventory Average Inventory              P Ø max TT pcs min inventory min inventory pcs Ø 0,056 1.594 min 90 time waiting 0,5 3.188 1.594 ] [ inventory  = =  = = ▪ The FIFO-lane length is calculated generously and therefore needs to be checked constantly and shortened if necessary.  factor safty inventory max pcs pcs max MTTR C/O CT Transport 1,5 2.125 3.188 ] [ inventory 471 inventory 412 . 1 inventory 125 . 2 inventory 324 . 1 inventory factors g influencin  = = = = = =      ▪ The maximum inventory defines the length of the FIFO-Lane. ▪ Referring to the average inventory the waiting time in the FIFO-Lane is calculated.
  • 68. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 68 FIFO-Lanes in front of Bottle Necks Scheduling bottle necks with FIFO-lanes If the process downstream is a bottle neck, the FIFO-lane must cover downtimes of the process upstream without stopping the bottle neck. bottle neck Process 2 FIFO Min./Max. ▪ To schedule the process upstream the FIFO-lane needs to cover a certain minimum inventory due to downtimes.   ] [ CT ] [ R/O inventory pcs min 2min process min 1 process pcs min = ] [ TT ] )[ TT (CT ] [ size lot ] [ inventory pcs min 2 process pcs min 2 process 1max process pcs process1 pcs min −  =     ] [ CT transports of number ] [ time working inventory pcs min 2min process shift 1 shift min pcs min  = ▪ OEE-losses caused by C/O ▪ OEE-losses caused by cycle time variations ▪ periodical transports caused by distance
  • 69. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 69 Dimensioning the Supermarket A supermarket has to cover a certain range of variation in customer call-offs and replenishment time. ▪ Covering variation increases the inventory in the supermarket. max. call-off amount = average call-off amount + range to cover max. replenishmenttime = average replenishmenttime + variability in replenishmenttime to cover average customer call-off range to cover amount time replenishment time time variation in replenishment time to cover average replenishment time customer call-off replenishment time peaks are not regarded
  • 70. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 70 Dimensioning the Supermarket Regarding to the maximum customer call-off and the maximum replenishment time the dimensions of the supermarket can be calculated. ▪ According to the max. inventory the size of the supermarket can be calculated. ▪ The Replenishment Time (RT) is the time it takes the process upstream to refill the supermarket. ▪ RT = EPEI + lead time of process loop upstream ▪ The size of the supermarket depends on the quantity in the containers.       unit time max unit time pieces max pcs max T R off - call ustomer c nventory i  =       HU pcs pcs max HU container in quantity inventory units handling of amount = Maximum Inventory
  • 71. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 71 Dimensioning the Supermarket Continuous consumption and periodical refill of the supermarket lead to average inventory smaller than the maximum inventory. Average inventory ▪ The average inventory defines the waiting time and the capital binding costs in the supermarket. ▪ The ratio between max. inventory and average inventory bases an expertise. ▪ The day on hand (= waiting time) results from the average inventory and the process specific takt time (TTP). ▪ The inventory value in the supermarket results from the average inventory and the production costs.     7 , 0 inventory inventory pcs max pcs Ø  =       pcs unit time P pcs Ø unit time TT inventory hand on days  =         = pcs $ pcs $ costs production Ø inventory Ø value inventory
  • 72. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 72 Location of Supermarkets in the Process A supermarket to the customer keeps variations of customer call-offs out of production and guarantees high delivery performance. Supermarket to the customer Shipping Assembly Press Insert Molding Kula Assembly ● Consequences: example: • High finished goods inventory value 173,460 pcs ≙ 555,072 $ • Long ∅-days on hand 8,500 min ≙ 5.9 days • max. number of products 24 products • min. response time to customer call-offs 1 day 1x day F
  • 73. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 73 Location of Supermarkets in the Process                                           pcs costs production inventory $ Ø time takt pcs min inventory min min Ø inventory pcs Ø leadtime cycle wheel over change RT off call max. for factor demand daily Ø day pcs pcs max Ø Ø Ø max max max $ 3.20 173,460 $ 072 , 555 value inventory 0.049 173,460 8,500 hand on days 247,800 0.7 173,460 inventory days 7 1.3 27,238 247,800 inventory  = =  = =  = =   = = + = − ● Consequences: example: • High finished goods inventory value 173,460 pcs ≙ 555,072 $ • Long ∅- days on hand 8,500 min ≙ 5.9 days • max. number of products 24 products • min. response time to customer call-offs 1 day A supermarket to the customer keeps variations of customer call-offs out of production and guarantees high delivery performance.
  • 74. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 74 Location of Supermarkets in the Process The further the supermarket is located upstream, the less inventory und number of products need to be stored. But the response time increases. Supermarket upstream Shipping Assembly Press Insert Molding Kula Assembly ● Consequences: example: • Inventory value of components 25,161 pcs ≙ 20,129 $ • reduced ∅-days on hand 1,233 min ≙ 0.85 days • reduced number of products 5 products • increased response time to customer call-offs 3 days 1x day FIFO
  • 75. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 75 Location of Supermarkets in the Process The further the supermarket is located upstream, the less inventory und number of products need to be stored. But the response time increases. ● Consequences: example: • Inventory value of components 25,161 pcs ≙ 20,129 $ • reduced ∅-days on hand 1,233 min ≙ 0.85 days • reduced number of products 5 products • increased response time to customer call-offs 3 days                                         pcs costs production inventory $ Ø time takt pcs min inventory min min Ø inventory pcs Ø leadtime cycle wheel over change RT off call max. for factor demand daily Ø day pcs pcs max Ø Ø Ø max max max $ 0.80 25,161 $ 128 , 20 value inventory 0.049 25,161 1,233 hand on days 35,944 0.7 25,161 inventory days 1.2 1.1 27,238 35,944 inventory  = =  = =  = =   = = + = −
  • 76. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 76 Location of Supermarkets in the Process Supermarkets to the suppliers keep the production running when suppliers have delivery problems. Supermarket to the suppliers Shipping Heat treatm. ● Consequences: example: • inventory of incoming goods (turned rings) 95,309 pcs ≙ 38,123 $ • reduced ∅-days on hand 4,904 min ≙ 3,4 days • min. number of products 1 products 1x day FIFO 1x wk. FIFO Grinding … FIFO
  • 77. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 77 Location of Supermarkets in the Process Supermarkets to the suppliers keep the production running when suppliers have delivery problems. ● Consequences: example: • inventory of incoming goods (turned rings) 95,309 pcs ≙ 38,123 $ • reduced ∅-days on hand 4,904 min ≙ 3,4 days • min. number of products 1 products                                           pcs costs production inventory $ Ø time takt pcs min inventory min min Ø inventory pcs Ø leadtime cycle wheel over change RT off call max. for factor demand daily Ø day pcs pcs max Ø Ø Ø max max max $ 0.40 100,072 $ 029 , 40 value inventory 0.049 100,072 4,904 hand on days 142,962 0.7 100,072 inventory days 5 1.05 27,238 142,962 inventory  = =  = =  = =   = = + = −
  • 78. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 78 Planning the Implementation Start to implement the future state in loops, beginning at the customer and going upstream. Use workshops and projects to realize the actions necessary. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD main loop (pacemaker loop) production loop upstream Supplier loop ▪ By starting with the main loop the customer realizes improvements and the process gains stability.
  • 79. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 79 Planning the Implementation Define actions for each of the production loops to make the process vision come real. continuous flow time studies SMED WS implement SM Supplier- Kanban production leveling implement delivery schedule ▪ Kaizen-Bursts mark the necessary actions. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD continuous flow implement SM implement SM
  • 80. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 80 Planning the Implementation The identified actions need to be prioritized and put in a chronological order. Potential Importance high low high 1 2 5 6 7 8 9 4 3 Action List 1. Implementfinished goods SM 2. Time studies 3. Create continuous flow in main loop 4. Implementproductionleveling 5. ImplementcomponentSM 6. Create continuous flow in productionloop upstream 7. SMED workshop at press 8. Implementincoming goodsSM 9. ImplementsupplierKanban 10.Implementdelivery schedule 10 low ▪ Start with the most important actions, that have a big impact on productivity. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD
  • 81. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 81 Planning the Implementation After prioritizing the actions create a workshop schedule and define responsibilities and due dates. ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSD 45 53 52 51 50 49 43 42 Nov. Oct. 48 47 46 Dec. 44 MOVE Trainer Workshop … 10/19/09 - 10/25/09 today note responsible Action Review close-out presentation Close-out 12/21/09 MOVE Trainer Workshop … … 11/12/09 MOVE Trainer Workshop … 11/2/09 - 11/8/09 supported by Dep. xyz … … … Project leader Project … 12/6/09 10/26/09 Schulze Action… 11/19/09 Meier Action…
  • 82. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 82 Targets of a value stream workshop: ▪ Visualizing current state processes in a value stream ▪ Identify waste and potentials ▪ Create a accepted process vision with due dates ▪ Create an action list with responsibilities Workshop-Targets A value stream workshop defines targets and actions to achieve improvements and make the production lean. Value stream analysis can be combined with other analyses: ▪ analysis of handling steps ▪ analysis of space and distances ▪ analysis of the ordering process via SWIMLANE Referring to the process vision the following workshops should be performed: ▪ layout vision ▪ logistic vision Gesamtverantwortung für Workshop: Verantwortung für Vorbereitung: Systemgrenze: Ansprechpartner / temporär Telefon: 1 7 1 2 8 2 3 9 3 4 10 4 5 11 5 6 12 6 Datum: Datum: Uhrzeit: Uhrzeit: Workshoptitel: Kick-Off Präsentation Zwischenpräsentation Abschlusspräsentation Flächenreduzierung -40% Fertigungszeiten -20% Umlaufbestand -70% Wiederbeschaffungswert -10% Durchlaufzeit -70% Rüstzeit -50% Ort: Ort: Datum: Uhrzeit: Ort: Datum: Uhrzeit: Ort: Ziele des Workshops: Datum: Seite: von: Teilnehmer Workshop-Definitionsblatt Tägliche Kurzpräsentation der Ergebnisse Qualitativ Ist-Zustand Quantitativ räumlich und inhaltlich:
  • 83. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 83 Workshop-Participants The results of a value stream workshop depends on the motivation and participation of participants, who can provide the workshop team with valuable information. Department: Function: attendance notes segment leader LT Seg. decision maker production leader PV Business Unit purchasing sales maintenance maintenance health and safety quality ergonomics production production logistics logistics scheduling scheduling MOVE MOVE human resources Participation at Kick-off und close out shop council ▪ Full time participation means 100% presence and active cooperation.
  • 84. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 84 Workshop-Agenda The agenda in the workbook bases on the 7 steps for each Value Stream Analysis and Value Stream Design. ▪ The agenda can be adjusted depending on the situation. Time Monday Tuesday Wednesday Thursday Friday 08:00 09:00 Greetings, Presentation round, Department inspection 10:00 Basics MOVE Short training Value 11:00 12:00 12:30 Lunch Lunch Lunch Lunch Lunch 13:00 Final presentation 14:00 15:00 15:30 16:00 16:45 Feedback discussion Feedback discussion Feedback discussion Feedback discussion 17:00 Day solution Actual-Map with customers requirements and Process Finished Current State Future State-Map including Material Flow Finished Future State Map, List of actions Workshop plan, Final presentation Agenda "Value Stream Mapping and Design" 4. Detect Process Steps and Inventory 5. Detect Material Flow 0. Define Basis for VSD 1. Eliminate Waste in Material Flow 2. Assign Products to Resources 5. Plan FIFO Lanes 6. Define Peacemaker Process Team allocation (who does what) Potential assessment, Workshop planning Preparation Final presentation and dry running 1. Define System Boundary 2. Select Product Family 3. Understand Customer Requirements 6. Detect Information Flow 7. Draw Timeline Identify Waste and Potentials 3. Realize Takt Time 4. Create continous Flow 5. Plan Kanban- regulation and Supermarket 7. Level the Product Mix Identify necessary Process optimisation, Divide the implementation in one- steps
  • 85. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 85 Preparation of the Value Stream Workshop Besides basic preparations value stream workshops use different data and working materials. ➊ ➋ ➌ ➍ ➎ ➏ ➐ ➊ ➋ ➌ ➍ ➎ ➏ ➐ VSA VSD ▪ Data for products ▪ products,demands ▪ printed and cut value stream symbols ▪ Data of resources ▪ OEE, C/O, … ▪ Data of customer requirements ▪ demands ▪ delivery quantities and sequences ▪ delivery reliability ▪ Data of suppliers ▪ demands ▪ delivery quantities and sequences ▪ delivery reliability Future Current ▪ Data for products ▪ products,demands ▪ Data of resources ▪ demand of other segments forassigned resource ▪ Data for products ▪ demands,variations, handling units ▪ printed and cut value stream symbols
  • 86. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 86 Workbook To support the preparation and accomplishment a workbook has been created. ▪ The workbook can be found at: ??? Uhrzeit Montag Dienstag Mittwoch Donnerstag Freitag 08:00 09:00 10:00 11:00 12:00 Vorbereitung Abschlusspräsentation und Trockenlauf 12:30 Mittagspause Mittagspause Mittagspause Mittagspause Mittagessen 13:00 14:00 15:00 15:30 16:00 16:45 Tagesabschluss Tagesabschluss Tagesabschluss Tagesabschluss 17:00 Tages- ergebnis Ausgewählte Produkt- familie, IST-Map mit Kunden-anforderungen Fertiges IST-Map, Identifizierte Schwachstellen und Potentiale SOLL-Map mit Materialfluss Fertiges SOLL-Map Maßnahmenliste Workshopplan, Abschlusspräsentation Agenda "Wertstromanalyse und -design" 4. Erfassen Prozessschritte, Prozessdaten und Bestände 5. Erfassen der Materialflüsse 0. Definieren Basis für WSD 1. Beseitigen Verschwendungen im Prozess 2. Zuordnen von Produkten auf Ressourcen 5. Definieren und Abschätzen von Supermärkten und FIFO- Bahnen 6. Definieren Schrittmacher Grundlagen MOVE Kurzschulung Wertstrom Priorisieren Verbesserungs- maßnahmen und Workshopplanung Begrüßung, Vorstellungsrunde, Bereichsbegehung Abschlusspräsentation 1. Systemgrenzen definieren 2. Auswahl Produktfamilie 3. Erfassen Kundenanforderungen 6. Erfassen Informationsflüsse 7. Erstellen Zeitleiste Identifizieren Schwachpunkte und Potentiale 3. Ermitteln Kundentakt 4. Definieren Bereiche mit kontinuierlicher Fließfertigung 5. Definieren Supermärkte und FIFO- Bahnen 7. Definieren Steuerung des Produktmix Erstellen Zeitleiste für SOLL-Prozess, Abschätzen Supermärkte und FIFO-Bahnen Identifizieren Verbesserungs- maßnahmen Prozesskundentakte 0,000 min 0,020 min 0,040 min 0,060 min 0,080 min 0,100 min 0,120 min 0,140 min Prozess 1 Prozess 2 Prozess 3 Prozess 4 Prozess 5 Prozess 6 Prozess 7 Prozess 8 Prozess 9 Prozess 10 Prozess 11 Prozess 12 Prozess 13 Prozess 14 Prozess 15 Prozess 16 Prozess 17 Prozess 18 Prozess 19 Prozess 20 Zeit [min] OEE-Verluste Mittlere Zykluszeit Prozessspezifischer Kundentakt
  • 87. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 87 Wertstrom-Workshop Präsentationsmaster Clouse Out Presentation The close out presentation should be performed in an enlarged audience. Besides the team members others should be invited: ▪ plant manager and segment leader of other segments which are suppliers or customers ▪ MOVE-Trainer of other segments ▪ other involved departments: maintenance, quality, logistics ▪ The close out presentation should include the current process, the process vision and all relevant findings. ▪ For details use the original current and future state map. ▪ A close out presentation master can be found at: (german website) MOVE > MOVE Umsetzungsstandards > Wertstrom
  • 88. 20.01.2021 Advanced training Value stream design MOVE-Office State: 04/12/2010 Page 88 Thank you for your attention! move@schaeffler.com