PR517 LEAN MANUFACTURING

LEAN MANUFACTURING TECHNIQUES – LECTURES 2&3

DR . R . A .EK ANAYAK E
DE PA RTMENT OF M A N U FAC TU RING A N D I N DU STRI AL E N GI NEER ING
Refe ren ce – L e a n i n Pra c t ice by L e a n S i x S i gm a Co m p a ny
Recap:
Create the Value Stream Map (VSM)
•Value Stream Mapping starts by mapping the current situation (Current State
Map).
•After analysing that current situation, a VSM is created of the 'ideal' situation
(Future State Map).
•A plan is then made to move from the 'current' state towards the 'ideal' state.
VSM Symbols – Process Flow
VSM Symbols – Material Flow
VSM Symbols – Material Flow
cont..
VSM Symbols – Information Flow
VSM Symbols – Information Flow
cont..
VSM Symbols – General Icons
Process of Value Stream Mapping
1. Scoping a team for the VSM
2. VSM Planning
3. Selecting a product/ product family
4. Creating the VSM – current state map
5. Creating the VSM – Future state map
6. Create an action plan
Scoping a team for the VSM
• Form a cross-functional team from throughout your company.
• Representatives from multiple departments (i.e., sales, customer service,
inventory, operations, and beyond) will help ensure all the information are
collected accurately.
• Can consider adding important suppliers to this group
Some consideration to select a product/ product family
• Largest reduction in lead time or inventory
• Biggest impact to the customer
• Highest probability for success
• Most visible to stakeholders
• New product or service line
• Volume or quantity
Create the Value Stream Map (VSM)
Step 1 - Determine the Scope
Step 2- Draw the Value Stream
Drawing the Value Stream consists of four elements:
1. What is the 'Voice of the Customer'?
2. What is the main process, what are the process transition points?
3. What are the sub-activities for each of the transition points?
4. Where is the waste, business value and customer value located in the process?
Create the Value Stream Map (VSM)
cont..
Item 1: The 'Voice of the Customer'
It is clear from the SIPOC who the customer(s) of the process is/are. However, it
is important to have a clear idea of what the customers expect from the process
in terms of time frame, costs and quality.

Item 2: The process transition points

A transition point is when a process moves from one department to the next, or
from one person to the next (which can be within the same department). Time
can also lead to a transition point, for instance when the orders are received in
the course of the week and the planning is made on Friday.
Process transition points are a major source of waste.
Create the Value Stream Map (VSM)
cont..
Item 3: Sub-activities for each transition point
For each of the transition points, the sub-activities are displayed.
Depending on the scope of the problem being tackled, the level of detail is
determined.

After the overall process has been drawn, it is indicated for all the sub activities
whether they add customer value or business value or can be considered waste.
This is an important step to make sure that the team has the right discussion.
The aim is to minimize the number of process steps and to organize the
remaining steps in such a way that flow is created.
Creating the VSM – current state map
• Collect the data and information by "walking the flow" (i.e., Gemba walks) and
interviewing the people who perform the task.

• Gather information including

➢Cycle time or processing time Changeover time
➢Reliability of equipment First pass yield
➢Quantities Number of operators and shifts
➢Hard copy information Electronic information
➢Inventory levels Queue or waiting times
 Draw the Value Stream
Current state VSM Mapping
Step 01 - Draw customer, supplier and production control icons.
Step 02 - Enter customer requirements per month and per day.
Step 03 - Calculate daily production and container requirements.
 Current state VSM Mapping
Step 04 - Draw outbound shipping icon and truck with delivery frequency.
Step 05 - Draw inbound shipping icon, truck and delivery frequency.
 Current state VSM Mapping
Step 06 - Add process boxes in sequence, left to right.
Step 07 - Add data boxes below.
 Current state VSM Mapping
Step 08 - Add communication arrows and note methods and frequencies.
Step 09 - Obtain process attributes and add to data boxes. Observe all times directly.
Step 10 - Add operator symbols and numbers.
 Current state VSM Mapping
Step 11 - Add inventory locations and levels in days of demand and graph at bottom.
Step 12 - Add push, pull and FIFO icons.
Step 13 - Add other information that may prove useful.
 Current state VSM Mapping
Step 14 - Add working hours.
Step 15 - Cycle and Lead Times.
Step 16 - Calculate Total Cycle Time and Lead Time.
Lead Time (LT)
Definitions
Process(ing) Time The time that is required to make one product or deliver one service, the net
processing time. Waiting times and storage are not included.
Process Lead time (PLT) Actual time for a product or service to get through the process
(sum of the wait time plus cycle times at each step along the critical path)
Process Cycle Efficiency PCE is a measure that indicates how efficient a process is measured in
(PCE) production time against the overall lead time.
Process time (VA) / Lead time (PLT) * 100%
Exit Rate The amount of work that is done per time unit, measured in the number of
services or products being delivered per time unit.
Little’s Law A quick estimate of the average lead time (PLT) can be calculated: Lead time
(PLT) = Work in progress (WIP) / Exit Rate
Available Work Time The net number of working hours per day that is available for production or
service provisioning (time present minus breaks, lunch, planned maintenance)
Takt Time The theoretically available process time per step for the delivery of a
product or service, which depends on the customer demand in relation
to the available work time.
Available working hours / customer demand
Setup Time of changeover C/O The time needed to change between the production of different
products. The C/O is the time from good product to another good
product, during which a setup took place.
Up time % The time that a machine can be used. The time that a machine is under
maintenance or needs to be changed is called down-time and is
deducted from the total time.
100% - downtime %
In-class Activity
Make 40 Boats within 10 Minutes.

1. Map VSM and calculate VA%

2. Map Process flow
Form the Team
1. Team Leader
2. Team members
3. Work study officer
4. Quality inspection officer
Mapping the Future State
The purpose of creating a “Future State” map is to eliminate sources of waste
identified in the Current State Map.

The Future State Map

• Will create the vision for implementing “Lean Manufacturing”.

• Will provide a clear platform on how things would change so that everyone will be
aligned/aware.

• Will surface opportunities for improvements.

Creating the Future State
𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒘𝒐𝒓𝒌𝒊𝒏𝒈 𝑻𝒊𝒎𝒆
𝑻𝒂𝒌𝒕 𝑻𝒊𝒎𝒆 =
𝑪𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝑫𝒆𝒎𝒂𝒏𝒅
Creating a Continuous Flow
Balancing the cycle time with Takt time
Operator Multitasking
Reducing the WIP of the Flow (one piece)

Process Improvement
Eliminating/reducing waste

Identify Constraints and come up with solutions to fix the issue