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VSM – Current & Future

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How to maximise the overall flow?

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VSM – Current & Future

  1. 1. VSM – Current & Future<br />How to maximise the overall flow?<br />Anand Subramaniam<br />
  2. 2. 2<br />“If you are going through hell, keep going.” <br />- Sir Winston Churchill <br />
  3. 3. 3<br />Highlights<br />VSM – Overview<br />VSM – Current State<br />VSM – Future State<br />Measures & Targets<br />
  4. 4. VSM Overview <br />
  5. 5. VSM – Why, What, When, Who etc<br />5<br />Focuses on maximising the overall flow<br />Spans the entire value chain, from raw materials receipts to finished goods delivery<br />Forms the basis of an improvement plan and a common language<br />Key tool for Lean implementation makes process & problems visible.<br />Is a qualitative tool for identifying and eliminating waste (or muda)<br />VSM<br />Involves drawing - current state, future state & an implementation plan<br />Paper and pencil tool to help you visualise and understand the linkage between material and information flow<br />Highlights Suppliers, Inputs, Process, Outputs and Customers (SIPOC)<br />Aligns organisations processes, creates a sense of teamwork / ownership<br />
  6. 6. Value & Non Value Add<br />6<br />Non Value Add<br />Any activity that consumes time and / or resources & does not add value to the service or product for the customer. <br />These activities should be eliminated, simplified, reduced, or integrated.<br /><ul><li> Required – Legal / regulatory
  7. 7. Unnecessary - Waste</li></ul>Value Add<br />Any activity the customer values (and is willing to pay for)<br /><ul><li> Who are your customers?
  8. 8. What do they really want?</li></ul>To be considered “value add”, a process step must have YES to all these questions<br /><ul><li> Does the customer care?
  9. 9. Does it change form / function?
  10. 10. Is it done right the first time?
  11. 11. Is it required by law or regulation?</li></li></ul><li>VSM Principles<br />Diagnostic Tool <br />Reveals hidden symptoms of larger problems<br />Strategic Planning Activity<br />Helps prioritise opportunities for improvement<br />Results in an implementation plan<br />Macro-Level - Visual Representation<br />Information flow<br />People and material flow<br />Each process block represents a handoff or a break in the timeline<br />Contains Relevant Metrics<br />Lead time – throughput / turnaround / flow time<br />Cycle time – touch / process time<br />7<br />
  12. 12. Definitions<br />Process Name: A brief name for the process for which the VSM is being conducted / process being proposed for improvement. Include key steps and activities<br />Customer(s): Identifies the customer(s) of this process, both internal and external to the process itself. Include VOC/ VOB / VOA <br />Supplier: The internal and/or external persons/entities that provide information, documents, supplies, people, etc. for the process.<br />Boundaries of this Process: Defines specifically where this process begins and ends for the purposes of this intervention. This includes nailing the scope using the SIPOC process.<br />Problem Statement: The reason(s) you want to change this process. Use of 5w & 2H – to change, improve, merge, create or do nothing.<br />
  13. 13. Definitions (Contd.)<br />Value Added: Any activity that adds to the form or function of the work or any activity that the customer** is willing to “pay” for.<br />Non-Value-Added: Any activity that consumes resources but creates no value for the customer. Any activity that is not necessary and considered as a waste (use 8w). <br />C-T Cycle Time or Lead Time: The amount of time it takes to complete one step / item from the end of the previous step to the end of the current step. Includes changeover time, wait time,)<br />C-O Change Over Time: The amount of time it takes to change over from the end of the previous step to the beginning of this step.<br />V-A% Value Added %: An estimate of the percentage of Value-Added Time within the Cycle Time for the step. This is what the customer would be willing to pay for – change in form or function) <br />
  14. 14. Definitions (Contd.)<br />R-N-V-A% Required Non Value Added %:An estimate of Non-Value-Added Time that is required by law, rule, regulation, or other mandate.)<br />U-T Up Time %: The percentage of time a person / machine is available<br />F-P-Y First Pass Yield %: The percentage of time that quality standards are met the FIRST time <br />Parking Lot: Issus and concerns might come up that may not be directly related to process flow. Issues not related to process flow should be "parked" and addressed in another manner - outside of the process mapping exercise. <br />
  15. 15. VSM – Current State<br />
  16. 16. Current - Process Challenges<br />Duplication of effort<br />Too many hand-offs / approvals / workarounds<br />Lack of skills / training<br />Lots of travel<br />High WIP<br />Waste in process – bottlenecks / backlogs <br />Challenges<br />Different prioritisation rules<br />Lots of waiting / lead times<br />Lost time - people looking for work and / or re-work loops to correct errors<br />Lack of communication<br />Too many Dead zones - places where work gets held up or lost<br />Slow throughput/ turnaround<br />
  17. 17. Where does one start?<br />13<br />VSM Scope<br /><ul><li>VSM Charter / Scope
  18. 18. Process Boundaries / Scope
  19. 19. SIPOC
  20. 20. Spaghetti
  21. 21. Product Family
  22. 22. Start with a single product family
  23. 23. Current & Future State
  24. 24. Collect data on process & system
  25. 25. Be specific
  26. 26. How many finished part numbers in family?
  27. 27. How much is demanded?
  28. 28. How often?
  29. 29. Verify & repeat the Process
  30. 30. Develop Implementation Plan</li></ul>Product Family<br />Current state drawing<br />Future state drawing<br />Work plan & implementation<br />
  31. 31. VSM Charter<br />Vision<br />Mission<br />Improvement Objectives<br />Strategic Plan<br />Critical Success Factors<br />Constraints<br />Process Description<br />Manual / Auto System<br />Metrics / Measures<br />Process - Start / End <br />High Level Scope<br />Benefits Realisation<br />Process Champion<br />Stakeholders<br />Assumptions<br />Risk & Tolerance<br />Drivers<br />Roles & Responsibilities<br />14<br />
  32. 32. VSM - Boundary<br />Current State<br />Define the boundaries<br />Define the value<br />Identify the tasks and flows of material and information between them<br />Identify resources for each task and flow<br />Create the current state map<br />Future State (Design)<br />Visualise the “Ideal State” and design the future state map<br />Identify value added and waste from Current State<br />Reconfigure the process to eliminate waste & to add “value”<br />Implementation Plan<br />Develop Action plans and track<br />15<br />
  33. 33. Defining Boundary - Specifics<br />Before launching on VSM, define the Start and End points<br />Prepare As-Is physical map – How / where (inputs to outputs)<br />Prepare As-Is geographical map - area(s) where process is performed<br />Add process control information flow to as-is physical map<br />A logical starting point - where Inputs cannot be returnedto the preceding step. <br />Capture the process as it is actually performed and include workarounds, rework, informal activities, feedback loops etc<br />In lean, we commonly define “work-in-process” is anything you can’t ship to the customer or return to the supplier<br />Add As-Is process metrics - counts, rates<br />The number of parts required by customers<br />The number of machines and operators available to work on parts<br />The rates that process steps work on parts (Takt at varied times)<br />
  34. 34. Material & Information Flow<br />Use the “SIPOC” document to map the product flow<br />Map the whole value stream by conducting a “walk through” of the actual process and collect information<br />Start with the final step and walk backwards (customer perspective) <br />Outline major process blocks<br />Chunk of activities that occur before a handoff<br />Don’t get bogged down to many details, use assumptions / parking lots<br />Bring your stopwatch and do not rely on information that you do not personally see <br />Numbers or percentages – use the best data available to you. An estimate, while not 100% accurate, is still closer to being accurate than nothing<br />Draw by hand and use a pencil<br />
  35. 35. Takt Time<br />18<br />Enables “continuous flow” and minimum inventory<br />
  36. 36. 19<br />Takt Time - Example<br />Takt time is flow at the speed of customer demand.<br />Need to complete a unit every 66 sec to satisfy average customer demand<br />
  37. 37. Product Family Matrix<br />
  38. 38. Data Collection – Process Analysis<br />21<br />
  39. 39. Value Stream Map<br />
  40. 40. VSM – Future State<br />
  41. 41. Future VSM – Improve / Eliminate <br />24<br />Takt Time<br />Just in Time<br />Waste Elimination<br />Continuous Flow<br />Set-up Reduction<br />Pull Production<br />Look for..<br />Standard Work<br />Line Balancing<br />6S / Workplace Organisation<br />Total Productive Maintenance<br />Level Production<br />Mistake Proofing<br />
  42. 42. VSM – Future State Questions<br />25<br />Where, when and how will scheduling be done?<br />How often will we check our performance to customer needs? <br />What does the customer really need?<br />What should be the Takt time?<br />How do we perform load leveling and what will be the product mix?<br />Future State<br />Is there an opportunity to balance the work load and/or different activities? <br />How do we control work between interruptions? How will work be prioritised? <br />How can we improve the flow, with fewer interruptions? <br />What process improvements are necessary, to achieve the future state?<br />
  43. 43. Future State Metrics<br />26<br />Quality<br />Errors<br />Cost<br />Reducing errors, rework, handoffs, waiting and lead time<br />Do<br />Plan<br />Change<br />Delivery<br />Lead time<br /> Customer service<br />How well do you provide services (internal and external)<br />Check<br />Act<br />
  44. 44. Future State – Blue Print<br />Define how the plant will operate in the future (blueprint)<br />Consider whether (remove waste / non value add activities)<br />everything done currently at each stage is really necessary <br />the impact if superfluous tasks was to be removed <br />the process can be rearranged in a more efficient sequence<br />a different flow layout or transport routing can be introduced<br />Validate Customer Demand / Takt Time<br />Draw the Future State Process Flow<br />Map the Future State Material & Information Flow<br />Future metrics & measures<br />Assumptions / Parking Lot<br />Outline an Implementation Plan<br />27<br />
  45. 45. VSM – Measures & Targets<br />
  46. 46. Process Measurements<br />
  47. 47. VSM - Baseline & Targets<br />
  48. 48. Targets & Measures<br />
  49. 49. “To repeat what others have said, requires education; to challenge it, requires brains.”<br />           - Mary Pettibone Poole<br />
  50. 50. Good Luck<br />http://www.linkedin.com/in/anandsubramaniam<br />