Value Stream Mapping

for Capacity Planning and

Verification

Ford Production System 1

 Key Elements of Value Stream Map
• Process Flow
• Material Flow
• Information Flow
• Process Metrics Data
• Customer Requirements
• In-Process Inventory (WIP)
• Lead Times for Each Process Step

Value Stream Mapping is a visual means of outlining the limiting factors of

a manufacturing operation, highlighting the restrictions, bottlenecks and
contributors to inefficiencies in a complex manufacturing system.
Ford Production System 2
 Process Metrics Data
• Cycle Time (C/T)
• Changeover Time (C/O) & Frequency
• First Time Through (FTT)
• No. of Product Variations
• No. of Operators
• Uptime or Availability
• Overall Equipment Effectiveness
• Operating Pattern
When utilizing surrogate process data in capacity planning, historical data
from stable manufacturing sources must be adjusted based on unique design
& process complexity and re- validated as soon more data is available
Ford Production System 3
 How to build

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 How to build

Value Stream Mapping

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Value Stream Mapping

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Value Stream Mapping

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 How to build

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 How to build

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 How to build

Value Stream Mapping 11

 How to Calculate Takt Time
• Ten Steps to create a Value Stream Map (continued)
10. Calculate takt time for the process
– Seconds available per day / Daily customer demand
Takt Time is the time in which a finished part or
product is demanded by the customer. Noted in
sec/part.
• Determine the rate at which product or services must be
delivered in order to meet customer demand
• Jobs Per Hour or Capacity Planning Volumes (CPV) can be
converted into takt time.
 APW – Average Production Weekly ( 5 days operation)
 MPW – Maximum Production Weekly (6 days operation)
 Annual Volumes to Weekly Volumes – divide by 47.2 weeks/year

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 How to Calculate Takt Time

The goal is to match production rate with customer demand.

• Synchronize the pace of production to match the pace of
sales
Total Available Operating Time
Takt Time =
Customer Demand
calculated for a given time period

• Example: Customer needs 1800 pieces per week and the

supplier is running Two -10 hour shifts with 2 - 15 minutes
paid break per shift: How often is a part required?
342,000 sec / 1800 pcs = 190 sec or 3.18 min Takt Time
(19 hrs × 5 days x 60 min × 60 sec = 342,000)

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 Capacity Planning & Verification Value Stream Map

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 Linkage of Subtier to Tier 1
Capacity Planning & Verification

Tier 1 Value Streams Subtier Value Chain

Sub Tier
Capacity
Planning &
Verification

Tier 1 Supplier’s submission of Capacity Planning & Verification Capacity

Analysis Report (CAR) must include Subtier Capacity Confirmation
Value Stream Mapping
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 Linkage of Value Stream Map to
Capacity Analysis Report (CAR)

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Sources of OEE Degradation
Recognizing Key Contributors

Ford Production System 17

 Contributors to OEE Degradation

OVER PRODUCTION
 Labor and Overhead Measurables driving utilization of
people and equipment

 Losses from out of stock conditions

 Losses from blocked and starved conditions

 Material produced to speculative demand

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Ford Production System
 Contributors to OEE Degradation

MOTION

 Poor workstation configuration and

organization

 Work imbalance

 Visual Factory not implemented

 Standardized Work not implemented

Ford Production System 19

 Contributors to OEE Degradation

CONVEYANCE
 Long distances from operation to operation

 Material Handlers not on scheduled routes

 Warehouse on or off site

 Distance between receiving and point of use

 Handling excess inventory

Ford Production System 20

 Contributors to OEE Degradation

CORRECTION
 Poor, slow quality feedback

 Incremental inspection done outside process

station

 Repair operations are viewed as acceptable

 Few effective Error Proofing devices in use

 Standardized work not in place

 Product/process incompatibility

 Product over-complexity

Ford Production System 21

 Contributors to OEE Degradation

INVENTORY (EXCESS)
 Mass Production mindset, batch and queue

 Unpredictable productivity

 Infrequent delivery / shipment of materials internally and

externally

 Schedules not linked between processes

 Visual Factory not in use to control

 Large containers / batch sizes

Ford Production System 22

 Contributors to OEE Degradation

WAITING
 Waiting for support, information, and/or materials

 Low Overall Equipment Effectiveness and high machine

downtime

 Unbalanced operations

 Long and inconsistent lead times

 Continual production schedule fluctuations

 Watching automated machines

 Undisciplined meetings

Ford Production System 23

 Contributors to OEE Degradation

OVERPROCESSING
 Standards unknown / unclear to operators

 Customer specifications are vague or fluctuate

 Product testing and re-testing occurs

 Functional departments have misaligned goals and poor

communication

 Concept that more is better

Ford Production System 24

 Achieving Sustainable Manufacturing
Five Growth Phases
• Production schedule smoothing,
Level volume and mix distributed
Production evenly over time
• Steady workload

• Marketplace based pull replenishment (linked

Pull System to customer withdrawal)
• Inventory management/discipline (JIT)

• All operations and work stations synchronized to pace of

Synchronous customer demand rate (TARGET TIME)
Production • All work stations balanced (standardized work)

• Improved product flow, ideally single piece (batch of 1)

Continuous • Flow from value-add station to value-add station
Flow • Where flow is not possible, reduce batch sizes and work in process (WIP)

• Process is under control and predictable output

Stability • Basic workplace organization in place (to recognize abnormalities)
• Begin the elimination of waste using FPS tools

Ford Production System 25

 Value Stream Mapping Capacity Threshold Analysis
Focus Elements
Potential
Focus Elements Threshold Assessment
Mitigation Actions
• Subtier Value Chain • OEE Improvement
Value Stream Constraints • Bottleneck Operation • Rebalancing Operation

• Validity of OEE and Changeover

assumptions for multiple part • Banking Plan
Equipment Shared variants • Qualify Back-Up Manufacturing
• Impact of Launch Ramp Up Plan Sources
Loading Robustness to Capacity Availability • Rebalancing Operation
• Impact of OEE shortfalls & • OEE Improvement
Degradation

Process & Quality • Process Capability Corrective

• Process Capability and resupply
Actions – Design, Tooling &
Stability impact on OEE
Process Improvement
• Alignment of Industrialization • Establish Robust Capacity Prove-
timing with Ford Launch Ramp Up Out plan utilizing lessons learned
Industrialization Ramp Up Schedule • Bank Planning for parts requiring
Lead Times • Support of Increased Premium mix long lead industrialization ramp up
beyond tooled capacity during • Add resources to compress
launch ramp up industrialization timing

Back Up Equipment & • Contingency planning for launch, • Qualify back up sources for
Resources bottleneck and unstable operations constraint operations

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