Outline = The Future-State Map = Key questions for building the Future-State = Drawing the Future-State MapSE eth The Future State Map = The purpose of value stream mapping is to identify and eliminate sources of waste by implementing a future-state value stream that can become a reality within a short time. = The goal is to build a chain of production where the individual processes are linked to their customer(s) either by continuous flow or pull, and each process gets as close as possible to producing only what its customer(s) need when they need it = The first iteration in your future-state map should seek to remove as quickly as possible all sources of waste. Subsequent iterations can address the product design, technology and location issues.The Future State Map tere ede one Ren) Wer seerES The Future State Map = The following set of questions is a very useful aid for drawing the future state map. As you develop your future state concepts, answer the questions in roughly the following order.2 Key Questions for Future State 1) What is the takt time, based on the available working time of your downstream processes that are closest to the customer? 2) Will you build to a finished goods supermarket from which. the customer pulls, or directly to shipping? (The answer to this question depends on several factors such as custamer buying patterns, the reliability of your processes, and the characteristics of your product. Building directly to shipping will require either areliable, short-lead-time, order-to-delivery stream, or more safety stock. Fortunately, your order-to-delivery lead time involves only those processes from the pacemaker process downstream to delivery.)2 Key Questions for Future State 3) Where can you use continuous flow processing? 4) Where will you need to use supermarket pull systems in order to contro! production of upstream processes? 5) At what single point in the production chain (the “pacemaker am of the pacemaker process need to occur as a flow.) 6) How will you level the production mix at the pacemaker process?Key Questions for Future State 7) What increment of work will you consistently release and take away at the pacemaker process? 8) What process improvements will he necessary for the value stream to flow as your future-state design specifies? (This is the place to note any equipment and procedural improvements that will be necessary, such as reducing changeover time or improving machine uptime. We use the kaizen lightning burst icon to indicate these points in the process.)SS Order to Delivery Lead Time Delivery Lead Time ——————> DESIGN PURCHASE | MANUFACTURE | ASSEMBLE | SHIP << Delivery Lead Time >) INVENTORY _ | MANUFACTURE | ASSEMBLE | SHIP Delivery Lead Time, MANUFACTURE | INVENTORY | ASSEMBLE | SHIP MANUFACTURE | ASSEMBLE _| INVENTORY| SHIP ENGINEER-TO- ORDER MAKE-T0- ORDER ASSEMBLE- TO-ORDER Delivery Lead Time ——_—») <— MAKE-T0- STOCK2 Drawing the future state map = Looking back at Acme’s example, what problems (waste) do we notice? m Perhaps the most striking are the large amounts of inventory, the unconnected processes (each producing to its own schedule) pushing their output forward, and the long lead time in comparison to the short processing time. = Q: What can be done about this? = A: We will let the key questions be our guide.EE Question1 :What is Acme’s takt time for the chosen product family? = The takt time calculation starts with the available working time for one shift in one’s assembling area, which is 28,800 seconds (8 hoursx60x60 sec). = From this you subtract any nonworking time, which is two 10 minute breaks per shift. = The customer demand of 460 units per shift (920 units per day divided by two shifts) is then divided into the available working time to give a takt of seconds. Available Working Time: 28,800 - 1200 = 27,600 seconds per shift Available Working Time 27,600 see. + 480 units per shift Customer Demand ‘Acme Steering Bracket Assembly Takt Time= This takt time means that in order to meet customer demand within its available work time, Acme needs to produce a steering bracket every 60 seconds in its assembly operation. = This number does not include time for equipment downtime, changeovers between left-drive and right- drive brackets, or for producing scrap. m= Acme may decide to cycle assembly faster than takt, if it cannot immediately eliminate downtime problems for example, but the takt time is a reference number defined by the customer and cannot be changed by Acme stamping (unless available working time or product family is changed).SE Note: = Always try to cycle the pacemaker process faster but as close as possible to takt time. = Asignificant gap between takt time and cycle time indicates the existence of production problems that cause unplanned downtime. = When you compensate for production problems by cycling much faster than takt, the incentive to eliminate those problems disappears. = If you cycle faster than takt, there should be a plan for closing the gap.Question # 2: Should Acme build steering brackets to a fi goods supermarket or directly to shipping? ple: Building to # Supermarket mharket schedules assembly (Acme's choica) G “Lo Example: Bullding Directly to Shipping Production Control sahadulaa eeacrbly ASSEMLY ==|-(-= At Acme, steering brackets are small (easy to store) and relatively inexpensive parts that have only two varieties. = The customer's demand rises and falls somewhat unpredictably, and Acme is uncertain about the reliability of future-state changes to be made. m Hence, Acme has opted to begin with a finished goods supermarket and move closer to “produce to shipping” in the future.= Since the customer buys in multiples of 20-bracket trays, this is the simple choice for “kanban size”. = That is, each tray of twenty left-drive or right drive brackets in the finished goods supermarket has one production kanban on it. = As the shipping department withdraws trays from the supermarket to stage them for delivery, the kanban from trays are sent back to assembly, essentially saying, “The customer has just consumed twenty left-drive (or right- drive) brackets, make another 20”.SE Question # 3: Where can Acme introduce continuous flow? = The “operator balance chart” below summarizes the current total cycle times for each process. Aeme stamping curront cycle times >SE = Can we include stamping operation in continuous flow? = The stamping operation cycles very quickly (1 second per part). Incorporating stamping into a continuous flow, means dedicating it to the steering bracket product family and slowing its cycle to near takt time. The stamping is also used to serve several other product lines. It's better not to incorporate it. = Ideally we would purchase and use a smaller press— “right sized tool”—to include the press into the continuous flow cell but such machine does not exist yet! = lItmakes more sense to run Acme’s stamping press as a batch operation and control its production with a supermarket based pull system.= The cycle time of two assembly workstations are not too far a part and close to takt time. These workstations are also already dedicated to the steering bracket product family —+ continuous flow in assembly is possibility = The same is true for two welding workstations What prevents Acme from using continuous flow all the way from welding through assembly, a condition with no inventory (or a maximum of one piece at automated processes) between steps’ = In fact nothing. The lean approach is to: place these four processes immediately adjacent to each other (typically in a cellular arrangement), distribute the work elements so that each operator's work is just below takt ime and have the operators carry or pass parts from one process step to the next.How many operators do we need and how do we distribute the work? Acme stamping current cycle times takt time C ¢ r ry H A i é i iH 4 4 i iu= Total work content = 187seconds; Takt= 60seconds. = Number of operators = TWC/Takt= 187/60= 3,12 to run welding and assembly in a continuous flow at takt. 1 Four operators would be quite underutlized, but (as is) a redistribution of work elements won't simply eliminate the need for a fourth operator. = Our next option will be to eliminate waste through process kaizen to bring the work content under the takt time ceiling so that three operators will be sufficient. A kaizen target might be to reduce each operator's work content to 55 seconds or less (or $ 185 seconds total). = [f that fails, use of some overtime may be necessary. = Reassign the fourth operator and the material handler who currently moves parts between the isolated processes to other activities that actually create value.SS Acme stamping weld/assembly cell cycle times after process kaizen takt time Pee rl ° Hy FO= To allow production to takt time and mix leveling a pacemaker process should ideally incur little or no changeover time and so that it can change over very frequently = The left-drive to right-drive welding-fixtures changeover times will need to be reduced from the current ten minutes to a few seconds. = Focused attention on improving the reliability of the second spot welder (perhaps through an improved maintenance approach) will also be needed = What else? Relocate processes, multi-skilled labour = Notice that on this future-state map the four welding and assembly process boxes have been combined into one process to indicate the continuous flow. A small schematic sketch of a cell inside the process box also indicates the cellular manufacturing idea.State Street ‘Assembly “12,000'1" = 6,800" Tay = 70 ase Shits First. View of the Future-State Map Showing Takt Time, Weld/Assembly Cell ‘and the Finished Goods Supermarket G T= SEAMEN = 3, | WELD + ASSY"Producing to Takt and Continuous flow targets to eliminate which types of waste and sources of waste? What types of waste do you see in the CSM? = WIP & Finished Goods Inventories Why is there Inventory? (What are the sources of waste?) Overproduction caused by Batch and Push production, caused Ny Changeover time Downtime Distant stations/Transportation Unbalanced operations The way information is conveyedES Lean Solution: = Do not overproduce -Produce to Takt (not to schedule) and what customer needs/consumes. © Eliminate changeover time © Eliminate downtime and other instability issues = Achieve Continuous flow = (Move stations together and) Eliminate transportation « Balance operations (also to eliminate Waiting).ES eth Question # 4: Where will Acme need to use supermarket pull systems? = Acme has already decided to produce steering brackets to a finished goods supermarket (see Question # 2). = Two additional supermarkets: one for stamped parts and one for coils, are necessary (plus, finished goods supermarket.)EE eth Stamped Parts Supermarket = Pull system design begins with customer requirements, and stamping’s customer here is the weld/assembly cell. The cell currently requires approximately 600 LH and 320 RH stamped parts per day. = Containers for the stamped parts should be sized to allow “close-to- the-fingertips” placement in the cell, not primarily for the convenience of the stamping or material handling departments! Small containers allow Acme to keep both LH and RH stamped parts in the cell at all times. = Each container in the cell —for example a bin that holds 60 stamped parts, or about one hour of current steering bracket assembly —will have a withdrawal kanban with it.= When a cell operator begins taking parts out of another bin, its withdrawal kanban is given to the material handler so that he /she joes to the stamping supermarket and “withdraws” another bin of those parts. = Acme can attach a production kanban to each bin of 60 stamped parts in the supermarket. Every time the material handler removes a in from the supermarket, a production kanban will be sent back to the stamping press. = This instructs Stamping to produce 60 parts, place them in a bin, and move it to a specified location (the “market address") in the stamping supermarket. a While withdrawal kanban triggers the movement, a production kanban triggers the production of parts.SS = Now stamping no longer receives a schedule from production control. With mapping icons, the flow looks like this: eee STAMPING: weeeeee > cece > R= However, there is a problem with this pull system! With a cycle time of one second per piece and a changeover time of one hour, stamping would take one hour to setup to run only 60 seconds (60pieces) of production. = Until changeover time on the press is greatly reduced, replenishing what is withdrawn from the stamping supermarket on a bin-for-bin basis is clearly not practical. = Due to changeover time, stamping need to produce batches larger than 60 pieces between changeovers. With the initial goal of “Every Part Every day” (Guideline #7), stamping’s target batch size for steering brackets would be approximately 600 LH and 320 RH pieces (which will still require changeover-time reduction). = Stamping will keep1 days of parts in its supermarket, one-half day extra to allow for replenishment delay and some stamping problems.= So Acme will use a signal kanban to schedule stamping. Whenever the number of bins remaining in the supermarket drops to a trigger (minimum) point, a signal kanban (often a metal triangle) for left or right drive parts is brought from the supermarket to the stamping press. m When a triangle kanban arrives at the stamping press’ scheduling board, it initiates a changeover and production of a predetermined batch size of a specific part. Stamping still does not receive a schedule from production control.2 Drawn with icons, the flow now looks like this: | Every 60 or 300 RH eces STAMPING " t pow WELD + ASSY.. — Coils supermarket = To build a plant-level lean value stream, the future state map should also show a third supermarket at the receiving dock, which holds coils of steel. = Even though Acme's steel supplier is not ready to receive kanban and produce according to them, Acme can still attach an internal withdrawal anban to every coil and send those kanban to its own production control department whenever another coil is used. = Production control can then order coils based on actual usage, instead of based on MRP'’s best guess of what future usage will be. = Once production control has made the day's order for coils, the corresponding kanban can be placed in kanban slots at the receiving dock. = These indicate the day that coils should arrive. If there are kanban still left in yesterday's receiving slot, then something is wrong at the supplier.= Currently the steel supplier is shipping coils bi-weekly. By lining up other customers along a “milk run” delivery, it may be possible to get the necessary amount of steel on a daily basis, even if the steel supplier does nothing to reduce its minimum batch size for slitting coils. = Simply moving to daily delivery could eliminate 80% of the inventory at Acme, while providing smooth, steady demand for the steel supplier. = For now, we will reduce coils inventory to 2 days.(ete press) EI # Fe 2 tatcn r-\F ¥ Second View of the Future-State Map Shuwiny Staripiny und Raw Material ‘Supermarkets. att) State Sireat ‘Assembly 200 a0 Tay 20 pease Ti 1 SdaysSh Our Progress So Far = We have now proposed a cell of the type many firms have implemented in the past few years, the introduction of pull to control stamping production and coil delivery, “Every Part Every day’ in stamping, and instituting milk runs for the delivery from the raw material supplier to Acme = By constructing “before and after” table, for the current state and the future state so far, we can see that a large amount of waste has been removed through these actions.SS Our Progress So Far Acme Stamping Lead Time Improvement ils | Stamped |Weld/Assy | Finished | Production] —Toval Coils | “Parte Wir | “Goode. | Lead'Time Irmentory urns Before| 5Days | 76Days | 6.5Days | 45Days |23.6Days| 10 SoFar| 2Days | 15Days g 45Days | 8Days 30 Inventory turn: a measure of how quickly materials are moving through a facility or through an entire value streamEE Information Flow = What happens to the information sent from the customer once it reaches Acme? = In the current case, the weekly schedule is fed over the weekend into the computerized MRP which then send instruction by Monday morning to each department-Stamping, Welding | & II, and Assembly | & Il about what to make the coming week. = Then, as additional information is received each night and as each department reports back periodically to the MRP on what it actually did that day (because production does not go as scheduled), the daily production schedules are continually adjusted to bring what Acme is making into synchronization with what the customer wants. = If the rest of the information flow at Acme is not fundamentally changed, it will be very difficult to operate a lean value stream.SE Question # 5: What single point in the production chain (the pacemaker process) should Acme schedule? = Inthe Acme example, the scheduling point is clearly the welding/assembly cell. We cannot schedule any further upstream (at the stamping process) because stamping is a shared process. = This single scheduling point will regulate Acme's entire steering- bracket value stream. = Welding/assembly cell is called the Pacemaker.Question # 6: How should Acme level the production mix at the pacemaker process? = Our daily demand is 46 trays; 30 trays of left-drive brackets (600 pieces) and 16 trays of right-drive brackets (320 pieces). = When the daily demand is shipped, 46 kanbans will come back to weld/assembly cell to be replenished. Example: Building to a Supermarket The aupermarkat schadulas aaeembly (Aeme'a choica) ri ; ASSEMBLYSS The weld/assembly cell will be tempted to batch-produce these parts. That is, produce 30 trays of left-drive brackets, and then changeover to make the 16 trays of right-drive brackets (i.e. Produce Every Product Every Day): ———— -:= From the cell's perspective, this seems to make sense because it minimizes the number of required weld-fixture changes. However, from a value stream perspective batching is the wrong way to go. = Batch-producing brackets in assembly will increase the impact of problems, lengthen the lead time, as finished goods supermarket is increased. = Instead if the weld/assembly cell levels the mix brackets it produces evenly over the shift, the stamping press will have time to react to cell's pulls for left-drive and right-dive parts— = With Every Product Every Shift leveling, which requires more frequent changeovers, the cell's production mix of trays of brackets would look like this: Every Product Every Shift leveling: SH >=: ESS Or (Every Product Every Hour) leveling: RLLRLLRLLRLLRLLRLLRLLRL LRLLRLLRLLRELRLLRLLRLLR:ES Volume and Mix leveling together m How can we ensure that kanban coming back to the weld/assembly cell, which are the production instructions, come back in a sequence that levels the mix of products over the shift (EPEshift) and levels the volume? Example: Bullding to a Supermarket Tho suparmarat sheds aeeombly Aca’ coi) al s)- ih Y 7a SATE G — idSE Option A: = Production Control can place withdrawal (“move”) kanban corresponding to the customer order in a scheduling box near the shipping dock in a mixed, left-drive/right-drive sequence. = A material handler then pulls these kanban out of the scheduling box one-by-one at certain intervals (every 20 minutes) and moves trays of brackets from the finished goods supermarket to the staging area one-by-one according to the withdrawal kanban. = As each tray is pulled from the supermarket, the production kanban on those trays are brought back to the cell in time increments and a left/right drive pattern that mirrors exactly the mix and pitch increment that production control had setup.acne enka Option A (One Kanban ata TimeSE Option B: = Production control sends today’s customer order to the material handler, who pulls all the corresponding trays out of the finished goods market at once and stages them for shipment. = Pulling the trays produces a batch of production kanban, which are placed in a scheduling box near the cell, in a mixed, left-drive/right- drive sequence. = The weld/assembly material handler then pulls production kanban out of the scheduling box one at a time at certain intervals (every 20 minutes) and as a result assembly produces in a left-drive/right-drive mixed pattern.———— Batch of Kanban One Kanban ata Time OXOX}- fae? Option B \ P| oR= The drawback of Option B compared to Option A: In B an entire batch of finished goods is moved to shipping at once. Lean manufacturing strives to avoid or minimize batching as much as possible, always getting closer and closer to continuous flow. = However, option A does require someone to repeatedly move one tray at a time (at the pitch increment) not only from the’ weld/assembly cell to the finished goods supermarket, but also from finished goods to the shipping dock. = Option A is adopted. = Note: 2 days worth of finished goods inventory is targeted-as we ship daily!EEE Question # 7: What consistent increment of work should Acme release and take away at the pacemaker process? Returning all 23 kanbans (one shits wort) tothe cell al once would provide no tak image to the cell. Batching the volume of work instructions like this must be avoided. How will Acme provide takt image to the weld/assembly cell, and how frequently will it check production there? = Anatural increment of welding/assembly work in Acme's case is the 60 second takt time x20 pieces per tray = 20 minutes. This is the steering-bracket pitch, which corresponds to one kanban for one tray of 20 steering brackets. Does this mean that every 20 minutes someone walks over to the weld/assembly cell and ‘asks, "How are things going?” = No! Pitch means Acme will practice paced release of work instruction, one kanban at a time, and paced withdrawal of finished goods at its weld/assembly cell. = This can be done with a load leveling (Heijunka) box.a | Ry ssteoring or ‘cotumn in Acme's steering- bracket load leveling box represents a 20 minutes pitch increment, The two rows are designated for the left-drive and right-drive kanban Every 20 minutes, a material handler brings the next increment of work (kanban) to the weld/assembly cell and moves the just-finished tray of brackets to the finished goods area. If a tray is not finished at the 20-minute pitch increment, then Acme knows there is a problem (for example a problem with the spot welding equipment) that needs attention. Acme load-leveling box for steering brackets weld/assembly cell gets kanban from left to right at pitch increment ‘one row par produEE Question # 8: What process improvements will be necessary for Acme’s value stream to flow as the future-state design describes? Achieving the materi and information flows we envision for Acme requires the following proces: provements: = Elimination of the long change-over time (10 minutes to change between left-drive and right-drive fixtures) in welding, to make possible continuous flow and mixed production from welding through assembly. 1 Improvement in on-demand uptime of the second spot-weld machine, as it will now be tied to other processes in a continuous flow. * Elimination of waste in the weld/assembly cell, to reduce total work content down to 165 seconds or less (which allows use of 3 operators at the current demand level). = Reduction in changeover time and batch sizes at the stamping press, to allow faster response to downstream usage. The goals are “Every Part Every day’ and then “Every Part Every shift’ We mark these items on our future state map with the kaizen lightning burst icon.= We should figure out how to use the existing stamping technology in a less wasteful way. The secret here is to have the stamping press, which also stamps parts for other product families in the plant, make smaller batches of the two parts our value stream needs and make them more frequently. This will require additional reduction of the changeover time. = Methods for reducing setup times on a stamping press are well known (SMED) and a reduction in time to less than ten minutes can be achieved. Now, we can have the press making only about 300 left-drive stampings and 160 right-drive stampings (Every Product Every shift), then producing parts for other values streams, then making lefts and rights on the next shift. = EPE on stamping press will now equal “Every Product Every shift’! This way the stamped parts inventory can be reduced by about 85% (from 7.6 days to 1 day). Coil inventory can also be reduced to1.5 hie now | Why?