Premiere Manufacturing Case Study, Step 1

Background: The Present Situation

Premiere Manufacturing, Inc., is a Tier 1 automotive
supplier producing #4, #6, #8, and #10 coolant hoses for
six key customers. Over time, Premiere has been
making improvements through kaizen activities.
Recently the company replaced two screw machines
with two dual-spindle CNC machines, which have not
proven to be as reliable as expected.
Premiere Manufacturing Case Study, Step 1
(cont'd)
One of the Premiere’s key customers, Cord, Inc., has been
consolidating its supply base. Cord has been auditing and
analyzing their suppliers’ abilities to meet quality and delivery
demands while also reducing costs. Premiere’s long-term
agreement (LTA) with Cord is about to expire. Cord is willing to
keep dong business with Premier but is demanding:
 A 5 percent cost reduction annually over the next two years
 On-time delivery of 98 percent or higher
 A lead-time reduction from six weeks to less than two weeks.

The plant manager decides to sign the new LTA immediately,

because he does not want to run the risk of losing Cord’s
business. He also has confidence that his people can apply lean
tools and methods to achieve the performance goals that Cord
demands.
Selecting Value Streams

If your customer has not defined the value stream for

you, there are two reliable methods you can employ to
help you decide which value stream(s) to target for
improvement:
1. Product-quantity (PQ) analysis. Start with PQ analysis
first to see if some part numbers are run in volumes high
enough to make the choice an obvious one.
2. Product-routing (PR) analysis. Use product-routing
analysis if results from PQ analysis are inconclusive.
P-Q Analysis List (Pareto)
Figure 2-2. Pareto Chart – PQ Analysis
Showing a 20:80 Ratio
Sequence of Operations by Volume
Products with Same Process Route

Products with the same process

route Total volume
(i.e., value stream) required

W&I 26,600

Y&J 12,100
D, G & L 5,900
Sequence of Operations by Process in
Identifying Value Stream
Additional Considerations for
Value Stream Selection

 Initially choose a value stream that includes no

more than one machining operation
 Initially choose a value stream with no more than
3 raw material suppliers
 Choose a value stream that includes no more than
12 operations
Premiere Manufacturing Case Study, Step 2

The long-term agreement that Premiere has made with Cord commits
Premier to improving on-time delivery and cutting costs associated
with the manufacture of #4, #6, #8, and #10 coolant hoses. In effect,
this means that Cord has selected the target value stream on which
Premier needs to focus. Nevertheless, the core team performs a
product-routing analysis to form a clearer picture of the process routes
for each product type.
The product-routing analysis reveals some important facts:
 Products #4 and #6 share the same process route, while products #8 and
#10 share a slightly different process route.
 The process route for products #4 and #6 is slightly less complex than the
process route for products #8 and #10.
 The total volume of products #4 and #6 is 80 percent of the total quality
produced for Cord.
Premiere Manufacturing, Product-Routing
Analysis (grouped by process)

Volume Part Machining Deburring Crimping Welding Testing Marking

20,160 #4 ● ● ● ● ●

10,080 #6 ● ● ● ● ●

4,360 #8 ● ● ● ● ● ●

3,200 #10 ● ● ● ● ● ●
Premiere Manufacturing Case Study, Step 2
(cont'd)
In addition, analysis of ordering patterns over the past three
months shows that demand for #4 and #6 hoses is nearly
constant, whereas demand for #8 and #10 hoses is more
sporadic. Given these facts, the team reasons that it is best
to focus first on improving the process for making #4 and #6
hoses, then tackle the process for making #8 and # 10 hoses.

The team members meet with the value stream champion to

show him the results of their analysis. The champion
agrees with the product family the team has selected, and the
team records the product family in the value stream box on
the storyboard.
Key Concepts of Lean

 The cost reduction principle

 The seven deadly wastes
 Two pillars of TPS:
 JIT (just-in-time) production
 Jidoka (also known as autonomation)
 The 5S System
 Visual workplace
 Three stages of lean application
 Demand
 Flow
 Leveling
Cost Reduction Principle
Seven Deadly Wastes
Seven Deadly Wastes

 Over Production – not needed for immediate use

 Waiting – time between operations due to missing
material, unbalanced line or scheduling mistakes
 Transport – moving material more than necessary, often
caused by poor layout
 Processing – Doing more to product than necessary, i.e.,
inspection. Use Jidoka
 Excess Inventory – raw material, WIP and finished goods
 Waste of Motion – back and fort movement in operation,
searching for parts or tools, stretches, bends or twists
 Defects
Levels of Waste

Level One Level Two Level Three

Gross Waste Process & Method Waste Microwaste within
Process
 Work-in-progress  Long changeover Bending and reaching
–Poor plant layout –Poor workplace design – Double handling
–Rejects –No maintenance – Excess walking
–Returns –Temporary storage – Look for stock
–Rework
–Equipment problems – Paperwork
–Damaged product
–Unsafe method – Speed and feed
–Container size
– No SOP
–Batch size

–Poor lighting

–Dirty equipment

–Material not delivered

to point of use
Two Pillars of Toyota Production System

 JIT Production
 Continuous flow and ability to replenish a single part pulled by
customer
 Only those units ordered, just when needed in the exact amount
needed
 Jidoka (Autonomation)
 Automation to mistake proof
 Automation with a human touch
 Goal of zero defects with continuous flow
 Separate human work from machine work
 Develop Poka-Yoke devices
The Toyota Production System
Three Stages of Lean Production
Takt Time

Takt time = Available Production Time

Total Daily Quantity Required
Or = Time
Volume
Example:
Available production time
8 hours x 60 = 480 minutes
Minus two 10 minute breaks = - 20 minutes
Minus one 10 minute shift start meeting - 10 minutes
Minus 30 minutes lunch break = 30 minutes
Net 420 minutes
= 25,200 seconds
Suppose we need 420 parts per day
Takt time = 25,200 = 60 seconds
420
Pitch

Pitch is the amount of time – based on takt – required for an

upstream operation to release a predetermined pack-out
quantity of work in process (WIP) to a downstream
operation. Pitch is therefore the product of the takt time and
the pack-out quantity.
Pitch formula: Pitch – takt time x pack-out quantity
Note: Takt time is customer driven. Pack-out quantity may or
may not be
For example, if your takt time is 60 seconds and you want to
move 20 pieces at a time, you would set a pitch of 10
minutes.
Pitch is a compromise between producing large batches and
implementing one piece flow.
Advantages of Pitch

There are a number of advantages to producing in small

batches based on pitch instead of producing large
batches:
 A forklift is less necessary because you are working with
smaller lots.
 Safety improves because workers are lifting smaller quantities
 Inventory control improves
 Problems can be identified immediately
 You can react to a problem in a much shorter time than with
large batches
Takt Image

Takt Image is the vision of an ideal state in which

you have eliminated waste and improved the
performance of the value stream to the point that
you have achieved one-piece flow based on takt
time.
Buffer and Safety Inventories

Buffer Inventory Finished goods available to meet

customer demand when customer
ordering patterns, or takt time,
varies.
Safety Inventory Finished goods available to meet
customer demand when internal
constraints of inefficiencies disrupt
process flow.
Note: These inventories should be stored and tracked
separately. They exist for two
distinct reasons.
Buffer and Safety Inventories
Finished-Goods Supermarket

 Shipping must be able to withdraw finished goods for

shipment either from the end of line or from finished
goods warehouse
 A system used in shipping part of the value stream to
store a set level of finished goods and replenish them as
they re “pulled” to fulfill customer orders. Such a
system is used when it is not possible to establish pure,
continuous flow.
Note: The inventory level in the supermarket does not include buffer and
safety inventories
 They can also be used to store WIP in other parts of
Value Stream
Continuous Flow

 Continuous flow can be summarized in a simple

statement: “move one, make one” (or “move one
small lot, make one small lot”).
Continuous flow processing means producing or
conveying products according to three key
principles:
 Only what is needed,
 Just when it is needed,
 In the exact amount needed.
Continuous Flow – “Move one, Make One”
Push Versus Pull Production System
A Flow System May Compound Problems
Unless Processes Are Improved
Work Cells

 In a flow system, production should be piece by piece

or in small batches
 Equipment must not be grouped by categories, e.g.,
machining, grinding, welding, etc., but in a way that
minimizes transport waste
 Reconfigure operations into work cells – self
contained unit that includes several value added
operations
Planning Cell Layout

 Arrange processes sequentially

 Set the cell up for counterclockwise flow (promotes use
of the right hand for activities while the worker moves
through the cell).
 Position machines close together, while taking safety into
consideration for material and hand movement within a
smaller area.
 Place the last operation close to the first.
 Create U- or C-shaped, or even L-, S-, or V-shaped cells,
depending on equipment, constraints and resource
availability.
U-Shaped Cell Increases Flexibility
Line Balancing

 Some operations take longer than others – causes wait.

 Some operations need more than one operator
 Line balancing evenly distribute work within a value
stream in order to meet takt time and balances work load
 Line balancing starts with an analysis of current state by
conducting an operator balance chart
 Operator balance chart is a visual display of work
elements, time requirements and operators at each
location
Operator Balance Chart -- Step 1
Operator Balance Chart -- Step 2
Cycle Time

Cycle time is the time that elapses from the beginning of an

operation until its completion – in other words, it is the
processing time.
Don’t confuse this measure of processing time with takt
time, which is the measure of customer demand.
Total cycle time is the total of the cycle times for each
individual operation in a value stream.
This is also referred to as total value-adding time (VAT),
because this is the time during which value is actually being
added to the material as it flows through the process.
Balance Chart – Current and Proposed
Operator Balance Chart -- Step 3

Determine the number of operators needed by dividing total

product cycle time by takt time:

202 (TCT)
#Operators needed = 3.36
60 (takt time)

A requirement of 3.36 means that you do not really have enough

work to keep four workers busy, but there is presently more work
than three people can handle. This fact represents a problem, of
course. But it also presents an opportunity to design an improved
future state.
Standard Work Sheet
Quick Change-Over

 QCO Applied in Three States

 Distinguish between internal setup tasks that can be
performed only while the machine is shut down and external
setup tasks that can be performed while the machine is running
 Convert internal tasks to external tasks when possible;
improve storage and management of parts and tools to
streamline external setup operations.
Streamline all setup activities by implementing parallel
operations (dividing the work between two or more people),
using functional clamping methods instead of bolts,
eliminating adjustments, and mechanizing when necessary.
 Merely addressing the obvious things, like preparing and
transporting tools and equipment while the machine is still
running, can often cut setup time by up to 50 percent.
Autonomous Maintenance

 Basic element of TPM

 Steps in Autonomous Maintenance
1. Clean and inspect equipment.
2. Eliminate sources of contamination.
3. Lubricate components and establish standards for cleaning and
lubrication.
4. Train operators in general inspection of subsystems (hydraulics,
pneumatics, electrical, etc.).
5. Conduct regular general inspections.
6. Establish workplace management and control.
7. Perform advanced improvement activities.
In-Process Super Markets
Kanban System

 Origin of Kanban
 In Japanese, Kanban means card, billboard or sign
 It refers to inventory control card used in pull system
 Also used synonymously with inventory control system
in TPS
 Kanbans manage flow of material in and out of
supermarkets, lines and cells
 Can be used to regulate orders from the factor to
suppliers
Kanban Control of Material Flow
Types of Kanban
Kanban Rules

 Downstream operations or cells withdraw items from

upstream operations or cells.
 Upstream operations or cells produce and convey only if a
kanban card is present and only the number of parts
indicated on the kanban.
 Upstream operations send only 100-percent defect-free
products downstream.
 Kanban cards move with material to provide visual control.
 Continue to try to reduce the number of kanban cards in
circulation to force improvements.
FIFO Lanes
Characteristics of FIFO Lane

A FIFO lane has the following characteristics:

 Holds a designated number of parts between two processes
and is sequentially loaded.
 Is created in such a way that it is difficult– if not impossible –
to draw anything other than the oldest inventory first.
 Uses a signal to notify the upstream process to stop producing
when the lane is full, preventing overproduction (one of the
seven deadly wastes).
 Requires sequencing rules and procedures for upstream and
downstream processes to ensure that neither overproduces and
that time is not wasted.
 Requires discipline by the workforce to ensure FIFO integrity.
FIFO Lane Example

An upstream operation cuts steel rods for a cell that makes three
slightly different but related products. One product starts with a
3-inch diameter rod that is 8 inches long, the second product
starts with a 4-inch diameter rod that is 10 inches long, and the
third product starts with a 5-inch diameter rod that is 12 inches
long. Since the cell requires three different sized rods, you could
establish a FIFO lane to ensure that the rods are processed
downstream in the order that they were cut.

On the other hand, if each of the three products were made from
the same-sized steel rod, you could establish an in-process
supermarket from which parts could be pulled when needed.
Flow Using Supermarkets

Advantages:
 Allows for flow when using shared equipment.

 Better use of capital equipment when state-of-the-art technology

has not risen to small, more lean-oriented machines.
 Potential for enhanced labor balance.

Disadvantages:
ҳ Quality is harder to monitor and correct when producing in
small batches.
ҳ Erosion of takt image.

ҳ Space required for storage.

ҳ Loss of control.
Flow Using FIFO Lines

Advantages:
 Allows for flow when potential for chronic failure of upstream
process exists.
 Allows for flow during tool changes

 Allows for complex labor demand within an assembly

operation.
Disadvantages:
ҳ Quality is harder to monitor and correct.

ҳ Erosion of takt image.

ҳ Space required for storage.

ҳ Loss of control.
Level Production

Leveling involves evenly distributing over a shift or a

day the work required to fulfill customer demand. The
concepts and tools used to level production include:
• Paced withdrawal.
• Heijunka.
• Heijunka box.
• The runner.
Paced Withdrawal

 Moving small batches from one operation to the next

at timed intervals equal to pitch
 Used when there is no product variety in value stream
 Customers want product in pack-out quantity
 Paced withdrawals levels production by dividing
requirements into batches equal to back-out quantity
Heijunka (Load Leveling)

 Sophisticated method for Planning an leveling customer

demand when there is production variation.
 Heijunka uses paced withdrawal based on pitch but
breaks it into units based on variety and volume.
 Consider

Product A B C D E

Daily requirement 300 200 200 50 50

Pack-out quantity 25 25 25 25 25

# of Kanbans 12 8 8 2 2
Heijunka (Load Leveling) (cont'd)

Total units = 800

Available Production Time = 52,800 secs
Takt time = 66 secs
Standard Pack Quantity = 25 units
Pitch – 66 x 25 = 27.5 minutes
Ratio of A:B:C:D:E = 12:8:8:2:2
Or 3:2:2:0.5:0.5
Heijunka Box

 A physical device to manage level production

 In the example, we need
A:B:C:D:E = 3:2:2:0.5:0.5
Heijunka Box (cont'd)
Heijunka Box (cont'd)

 Product A is made during the first three pitch periods.

 Product B is made during the next two periods.
 Product C is made during the following two periods.
 Since production is based on pitch, it would be impractical to make
a half container of product D. Instead, it would make good sense to
run A-the high runner-for three more pitch periods before running
D. This helps sustain flow by minimizing changeovers.
 After running D, you would dedicate the next four pitch periods to
running two more containers of B and C respectively.
 Product E is made during the final pitch period of the first shift.
 The pattern established above repeats during the second shift.
Heijunka Box - Kanbans

The table below shows a simple way on one page

how different products are to be produced. One can
fabricate a box with slots in which kanbans are
placed showing the plan.
Runner Qualifications

Runner Qualifications:
• Understands value stream production requirements

• Communicates well

• Able to recognize and report abnormalities

• Understands lean concepts

• Understands the importance of takt time and pitch

• Works efficiently and precisely

Value Stream Map

Numerous ways to determine the slope of a value stream

map, e.g.,
→ You can define activities and measure the time it takes to

go from conceiving a product to launching it.

→ You can define the activities and measure the time it takes

from receiving raw materials to shipping finished parts to

a customer.
→ You can define the activities that take place from the time

an order is placed until cash is received for the finished

order.
Lean Material Flow

 Understand how information flows

 How production scheduling is achieved
 Keep asking –
 How do you know what to make next
 Mapping material and information flow allows a visual
representation of entire manufacturing
 Visualize how operations currently communicate with
production control and with each other
 See problem areas and sources of waste
 Locate bottlenecks and WIP
 See safety issues
 Mapping is a common language
Lines of Communication
Value Stream Map: Lines of Communication
Getting Ready

Three major preparation areas:

1) Draw rough sketches of main production operations
on a board.
2) Go to floor and start backwards from downstream
operations (i.e., shipping) and collect data using
Attribute Collection Check List. Data not needed to
be put on parking lot list.
3) Gather again and see that all data has been
collected.
Attribute Collection Checklist

 Total time per shift  Number of operators

 Regularly planned downtime occurrences  Reliability metrics – expressed in terms of

such as breaks and lunch that reduce available mean-time between failures, uptime, or
time overall equipment effectiveness (the product
 Total available daily production time of availability, performance, and quality
(subtract regularly planned downtime rates)
occurrences from the total time per shift)  Shifts on which the process operates

 Delivery schedules  Line speeds

 Number of parts per shipping container  Preventive maintenance schedules (important,

 Quantity of parts shipped per month and per because they can reduce net available time for
day (by part) a particular process)
 Cycle times  Disruptions in manufacturing flow

 Changeover times  Exceptions that may occur due to rework

 Work-in-process (WIP) amounts  _________________________________

 Actual lot sizes  _________________________________

 Pitch increments (if available  _________________________________

 Economic lot sizes (economic order-quantity)  _________________________________

Premiere Manufacturing Case Study: Step 4

In Step 2, the core implementation team at Premiere

Manufacturing chose to focus on the value stream for the #4
(0.25 inch) and #6 (0.125 inch) coolant hoses. In Step 3, the
team received a comprehensive overview of lean
manufacturing concepts. Now the team is ready to prepare
for mapping the current state.

The team convenes and sketches the main production

processes for the #4 and #6 hoses.
Machining Deburring Crimping Testing Marking Shipping
Step 4. Map the Current State
How to Map the Current State
Creating Current State Map

 Draw icons representing customer, supplier and

production control
 Some icons for customer supplier
 Customer icon in upper right hand corner of the sheet
 Supplier icon in the upper left corner
 Production control between customer and supplier
 Draw data box below customer icon and enter
customer requirements. Enter monthly, daily
requirements and number of containers each day
Calculating Daily Requirements

If demand is constant, calculating daily requirements is

simple. If you use the customer requirement data from the
case study cited earlier, you know that Premier ships on
average a total of 10,080 hoses per month to Cord, Inc. –
6,720 #4 hoses and 3,360 #6 hoses. You also know that
Premier ships 20 days per month. Therefore, if you divide
the requirements by 20, you can determined the average
number of hoses shipped per day:
• 10,080 hoses per month (20 days = 504 hoses (#4 and #6
combined) per day)
• 6,720 #4 hoses per month (20 days = 336 #4 hoses per day)

• 3,360 #6 hoses per month (20 days = 168 hoses per day)
Creating Current State Map (cont'd)

 Enter shipping and receiving data

 Draw a truck icon below customer and show delivery frequency
 Draw a shipping icon below customer truck
 Draw a direction arrow from shipping icon through customer
truck (as if arrow goes behind the truck) to customer icon
 Draw a truck icon below supplier and enter delivery frequency.
Draw direction arrow from supplier through supplier truck
(behind the truck) to main stream process in Value Stream
 Draw manufacturing operations at the bottom of the map
– upstream process on left and downstream process on
right. Label each process icon
 Add a notched line below process boxes on which we will record
production line
Current State Mapping
Creating Current State Map (cont'd)

 Enter process attributes in the data boxes in process icons. Show value added
time (cycle time), change-over time, available time, and up time in each box
 Attributes defined
 For each operation, availability is, in effect, the available production time. This is
determined by taking the shift time or total available production time – 8.5 hours
(510minutes) in the Premiere Manufacturing case study – and subtracting regular
planned down-time occurrences (a 30-minutes unpaid lunch and two 10-minute paid
breaks). Therefore, the available production time is 460 minutes, or 27,600 seconds.
 Changeover times given are per shift
 Changeover times are not considered planned downtime occurrences. Therefore, they
diminish an operation’s available production time to give you actual operating time.
 Uptime is calculated by dividing actual operating time by available time. Actual
operating time for each operation equals available production time minus changeover
time. For example, the uptime calculation for machining looks like this:
uptime = 27,600 seconds – 3600 seconds
27,600
uptime = 87%
 In upper right hand corner, shift time, planned breaks and total available
production time
Creating Current State Map (cont'd)
Creating Current State Map (cont'd)

Show information flow, both electronic and manual. In most cases,

information flows between customers and suppliers electronically.
 Draw communications arrows from the customer icon to the production
control icon, representing the customer’s forecasts and orders, and label
each arrow according to frequency.
 Draw communications arrows from the production control icon to the
supplier icon, representing production control’s monthly forecast and
weekly orders, and label each according to frequency.
 Draw a box representing the production supervisor in the middle of the
map.
 Draw a communication arrow between the production control icon and
the production supervisor box and label it according to the frequency
with which orders are released to the supervisor.
 Draw communication arrows between the production supervisor box and
the appropriate individual process boxes, and label each according to the
frequency with which orders are released to the individual operations.
Creating Current State Map (cont'd)
Creating Current State Map
Days of WIP on Hand

Calculating Days of WIP on Hand

You can determine days of WIP on hand by dividing the
total number of hoses shipped per day (504) into the
total amount of WIP between processes. For example,
there are a total of 3,500 partially manufacturing hoses
between Deburring and Crimping. Here’s how you
calculate days of WIP on hand between the two
processes:

3,500 hoses ÷ 504 hoses shipped per day = 6.94 or 7 days

Creating Current State Map
Lean Metrics
Financial Impact of Improvements
(Language of Money)
Basic Metrics

→ Inventory turns
→ Days of inventory on-hand
→ Defective parts per million (DPPM) or sigma level
→ Total value stream WIP
→ Total cycle time, or total value adding time (VAT)
→ Total lead time
→ Uptime
→ On-time delivery
→ Overall equipment effectiveness
→ First-time-through capability
→ Health and safety record (including OSHA recordable and
reportable incidents)
Metric Stratification

Uptime is the mathematical relationship between actual operating

time and net available production time.

Uptime = ____Actual operating____

Available production time

To calculate actual operating time, you need to keep track of

every loss that diminishes your available production time. It is
possible to calculate uptime for individual operations as well as
for an entire process. It is also possible – and in fact, extremely
helpful – to account for the most common types of individual
losses that diminish available production time:
→ Changeovers
→ Ideal time due to late delivery from an upstream operation, quality
problems, material irregularities, etc.
→ Breakdowns
Premiere Manufacturing Case Study, Step 5

After reviewing the list of common metrics and the customer’s requirements.
Premiere’s core implementation team drafts a list of the metrics that will work
best for tracking progress toward the targets. The team reviews the metrics
with management and gains their buy-in. Figure 5-3 shows the metrics and the
baseline figures determined during current-state mapping.

Metric Baseline Proposed

Total value stream WIP inventory 17,040 units TBD
Total product cycle time 170 seconds TBD
Total value stream lead time 34 days TBD
On-time delivery 88 percent TBD
Defective PPM--external 45 TBD
Uptime 84 percent TBD

Figure 5-3. Metrics and baseline measurements

Premiere Manufacturing Case Study, Step 5
(cont'd)
Total Value Stream WIP Inventory
The Team calculates total value stream WIP by totaling the amount of WIP
inventory on-hand between each operation.
Raw material prior to machining: 2,500 hoses
Between machining and deburring: 5,040 hoses
Between deburring and crimping: 3,500 hoses
Between crimping and testing: 2,000 hoses
Between testing and marking: 2,000 hoses
Between marking and shipping (finished goods): 2,000 hoses
Total inventory: 17,040 hoses

The team also calculates the number of days of WIP on-hand between each
operation. Daily WIP is determined by dividing the actual quantity of hoses by
the daily total quantity of hoses required by the customer. The team calculates
daily customer requirements (demand) by dividing the number of hoses required
per month (10,080)by the number of shipping days per month (20)
Premiere Manufacturing Case Study, Step 5
(cont'd)
Total number of hoses (#4 and #6) required per day:
10,080 hoses required per month + 20 shipping days per month = 504 hoses per day.
WIP calculations (#4 and #6 hoses combined):
Raw material prior to machining
2,500 hoses (504 hoses per day = 5 days on-hand
Between machining and deburring
5,040 hoses (504 hoses per day = 10 days on-hand
Between deburring and crimping
3,500 hoses (504 hoses per day = 7 days on-hand
Between crimping and testing
2,000 hoses (504 hoses per day = 4 days on-hand
Between testing and marking
2,000 hoses (504 hoses per day = 4 days on-hand
Between marking and shipping (finished goods)
2,000 hoses (504 hoses per day = 4 days on-hand
Total inventory (in days)
5 + 10 + 7 + 4 + 4 + 4 = 34 days on-hand
Premiere Manufacturing Case Study, Step 5
(cont'd)
Total Product Cycle Time
To determine the total product cycle time, also referred to
as total value adding time, the core implementation team
studies the current-state map and lists the cycle times for
each operation:
• Machining: 45 seconds
• Deburring: 5 seconds
• Crimping: 40 seconds
• Marking: 50 seconds
By adding together the cycle times for each operation, the
team calculates the following total product cycle time:
45 seconds + 5 seconds + 40 seconds + 30 seconds + 50
seconds = 170 seconds
Premiere Manufacturing Case Study, Step 5
(cont'd)
Total Value Stream Lead Time
To determine total value stream lead time, the team turns to the current-state map to see
how long it takes for material to flow through the process once an order was released to
the production floor. Here are the times (which, coincidentally, correspond to the
number of day of WIP between the operations):1
• 5 days prior to machining
• 10 days between deburring and crimping
• 7 days between deburring and crimping
• 4 days between crimping and testing
• 4 days between testing and marking
• 4 days between marking and shipping
5 + 10 + 7 + 4 + 4 + 4 = 34 days
A total value stream lead time of 34 days means that it takes at least this long to complete
a customer order. In other words, Premiere’s lead time is close to seven five-day work-
weeks! Given that the value-adding time or total value stream cycle time is just 170
seconds, the team realizes that the opportunity for improvement is tremendous.
_______
1
Although it is not always true that the lead time will equal the total number of days of WIP inventory in the
value stream, the measures are often very close. This is because the time that WIP is idle and waiting to be
processed is huge compared to the actual time that material is being processed.
Premiere Manufacturing Case Study, Step 5
(cont'd)
On-Time Delivery
Premiere’s shipment compliance or on-time delivery is only 88 percent due to the
following factors:
• Uptime issues at the machining operation
• Constantly shifting production schedules
• 95 percent on-time delivery on average between internal suppliers and customers,
resulting in cumulative on-time percentage of 81.4 percent (.95 x .95 x .95 x .95 –
81.4 percent)
Defective PPM-External
The team researches quality data and finds that the current internal defect rate,
expressed in parts per million (ppm), is 5,000. The defects are mainly produced by
the marking operation. Despite the high internal defect rate, Premiere passes on
relatively few of the defects to Cord. However, the external defect rate, 45 ppm, is
still high by lean manufacturing standards, because the goal of a lean enterprise is
zero defects. The team decides that it is important to track both internal and
external defect rates, but since the external defect rate is the best reflection of how
well Premiere is serving its customer, this is the metric that the team chooses to
display on the storyboard.
Premiere Manufacturing Case Study, Step 5
(cont'd)
Uptime
The team determines the cumulative uptime measure for the
value stream based on the uptime measures for each operation:
• Machining: 87 percent
• Deburring: 100 percent
• Crimping: 99 percent
• Testing 99 percent
• Marking: 99 percent
0.87 x 1 x 0.99 x 0.99 x 0.99 = 0.844 (84 percent)
After agreement is reached on all the data, the team transfers
the information to its Value Stream Management storyboard.
Identification of Waste

 Total value stream cycle time is 170 seconds, yet the

lead time through value stream is 34 days. Why ?
 10 days of inventory between machining and
deburring operation. Why ?
 Impact of changeover on inventory
 Production schedules being delivered daily to each
process. Processes independently making product
whether downstream process requires it or not.
Graphs or Charts
Mapping the Future State

The process for mapping the future state takes place in three
stages:
Customer demand stage – understanding customer demand
for your products, including quality characteristics, lead
time, and price.
Flow stage – implementing continuous flow manufacturing
throughout your plant so that both internal and external
customers receive the fight product, at the right time, in the
right quantity.
Leveling stage – distributing work evenly, by volume and
variety, to reduce inventory and WIP and to allow smaller
orders by the customer.
Mapping The Future State
Premier Manufacturing Case Study – Step 6,
Begin the Future-State Map
Premiere Manufacturing has committed to producing to takt
time and has reached consensus with supervisors and workers.
The customer, Cord, Inc., has agreed to accept daily deliveries
of 504 units in reusable containers of 24 units each but would
like to work toward flexible amounts. Cord will continue to
send a 30-day forecast and will now begin to send orders daily.
Premiere will continue to provide its supplier with a monthly
forecast and weekly orders. Over the short term, Premiere has
agreed to continue receiving weekly deliveries from their
supplier, ABC, Inc., but ABC is willing to work toward
providing more frequent deliveries if necessary.
Mapping the Future State

• Begin future state by drawing customer, supplier and

production control icon and communication arrows as
below:
 Customer icon in upper right corner
 Supplier icon in upper left corner
 Production control between customer and supplier icons
 Communication arrows running from customer to production
control and from production control to supplier
• Show orders and label forecast frequencies
• Draw shipping icon, trucks and arrows as shown. Enter
frequency of shipping and supplier frequency of shipping
• Enter customer requirements below customer
Mapping Future State
Step 6: Lean Guidelines

Demand
• What is the demand? In other words, what is the takt time?
• Are you overproducing, underproducing, or meeting demand?
• Can you meet takt time (or pitch) with current production capabilities?
• Do you need buffer stock? Where? How much?
• Will you ship finished goods right after the final operation or use a finished-goods supermarket?
• What improvement tools will you use to improve our ability to fulfill demand?
Flow
• Where can you apply continuous flow?
• What level of flow do you need?
a. “Move on, make one” (one-piece flow)?
b. Small lots?
c. Cell design? What type?
• How will you control upstream production?
a. In-process supermarket?
b. Kanban?
c. FIFO?
• What other improvement methods will help to achieve continuous flow?
Leveling
• What types of kanban cards will you use?
• How will kanban cards be distributed?
• Where in the process will you schedule production requirements?
• Will you use a heijunka box?
• What will the runner’s route be?
Step 6: Customer Demand Worksheet
Step 6: Customer Demand Worksheet
(cont'd)
Step 6: Customer Demand Worksheet (cont'd)
Premiere Manufacturing Case Study – Step 6,
Demand Stage: Determining Takt Time and Pitch
Takt Time
During Step 4, the team determined the available production time as 460 minutes (510
total available minutes minus 50 minutes of regularly scheduled breaks) or 27,600
seconds.
The team also determined that their customer, Cord, requires 504 hoses daily (10,080
hoses per month over a 20-day shipping month).
They calculate the takt time as follows:
Takt time = 27,600 seconds (available production time) ÷ 504 hoses (required
daily production quantity)
Takt time = 55 seconds per hose
Pitch
Cord has requested shipments in containers that hold 24 units. The team calculates the
pitch as:
Pitch = 55 seconds (takt time) x 24 units per container (pack-out quantity)
Pitch = 1,320 seconds or 22 minutes

The team adds this information to their storyboard (see following page).
 Determine Whether you Need Buffer and
Safety Inventories
Determined whether you need to establish buffer and safety
inventories by determining whether demand is stable and
whether you have the capacity and efficiencies to meet it.
Remember that you are improving the value stream to
ensure that you can meet customer demand now. You
cannot afford to wait until the future state is completed.
That could take six months – and very possibly, longer.
Buffer
Buffer Inventory
Inventory –– Finished
Finished goods
goods available
available to
to meet
meet customer
customer demand
demand when
when
customer
customer ordering
ordering patterns,
patterns, or
or takt
takt time,
time, varies.
varies.
Safety
Safety Inventory
Inventory –– Finished
Finished goods
goods available
available to
to meet
meet customer
customer demand
demand when
when
internal
internal constraints
constraints or
or inefficiencies
inefficiencies disrupt
disrupt process
process flow.
flow.
Premiere Manufacturing Case Study – Step 6, Demand
Stage: Establishing Buffer and Safety Inventories

The team decides to establish buffer and safety inventories with one day’s
worth of finished goods in each. The team adds the appropriate icons to the
future state map.
Finished-Goods Supermarket

A system used in the shipping part of the value stream

to store a set level of finished goods and replenish them
as they are “pulled” to fulfill customer orders. Such a
system is used when it is not possible to establish pure,
continuous flow.
Note: The inventory level in the supermarket does not include
buffer and safety inventories.

If you need to use a finished-goods supermarket, draw the

supermarket icon between the last operation and the shipping
icon on the future state map.
Premiere Manufacturing Case Study – Step 6, Demand
Stage: Establishing Finished-Goods Supermarket

The team decides to establish a finished-goods supermarket with

one day’s worth of inventory. Over the short term, it will be
necessary to schedule overtime periodically to keep the
supermarket stocked. The team adds the appropriate icon to the
future state.
Step 6. Map the Future State

Obstacle Solution

Fluctuations in customer demand Buffer inventory

Internal problems throughout the process Safety inventory

Inability to sustain a continuous flow from the Finished-good

most downstream operation to the customer supermarket

Remember, however, that all excess inventory is waste.

Work toward minimizing or eliminating buffer and safety
inventories and creating a continuous flow process in which
a finished-goods supermarket is not necessary.
Improvement Methods

In keeping with the idea that it is important to work toward

minimizing or eliminating “just-in-case” inventories, your
future-state map should also include the methods or tools
you will use to improve process capability, thus making it
easier to meet demand. Some improvement methods to
consider are:
→ 5S system of workplace organization and standardization

→ Quick changeover techniques

→ Autonomous maintenance

→ Methods analysis and standardized work

Premiere Manufacturing Case Study – Step 6, Demand
Stage: Determining Which Improvement Method to
Use
The team decides that the following improvement methods will help
make it possible to consistently meet customer demand:
1. 5S system. Improving flow and eliminating obvious wastes by
implementing the 5S system will pave the way for additional
improvements
2. Quick changeover. The 60-minute changeover at Machining
presents a serious obstacle to producing in smaller batches.
Implementing quick changeover (QCO) methods will help make
the process faster and flexible enough to satisfy demand.
3. Autonomous maintenance. After the 5S system is implemented
at each location autonomous maintenance (one of the five pillars
of a TPM initiative) will be introduced at Machining to eliminate
the small equipment problems that hurt overall process reliability.
Focus on Flow

 Where can you apply continuous flow?

 What level of flow do you need?
a. “Move on, make one” (one-piece flow)?
b. Small lots?
c. Cell design? What type?
 How will you control upstream production?
a. In-process supermarket?
b. Kanban?
c. FIFO?
 What other improvement methods will help to achieve continuous
flow?
a. Quick changeovers?
b. Autonomous maintenance?
Continuous Flow

Implementing continuous flow – or just-in-time (JIT)

production – ensures that the next downstream process has:
• Only those units needed
• Just when they are needed
• In the exact amount needed
For this to happen seamlessly, the tools for customer
demand – takt time, buffer and safety inventories, and a
finished-goods supermarket system – must already be
present so that you can work on flow without interrupting
regular, timely deliveries to your customer. We also highly
recommend that you implement the 5S approach to
workplace standardization and organization to address many
of the physical and psychological barriers to change.
Step 6: Continuous Flow Focus Icons
Line Balancing

Line balancing is the process by which you evenly

distribute the work elements within a value stream
in order to meet takt time.
Steps in Line Balancing

 Review the current cycle times and work element

assignments
 Create an operator balance chart.
 Determine the number of operators needed.
 Plan the changes needed to balance the work
among the target number of operators.
 Create a future-state operator balance chart.
Premiere Manufacturing Case Study – Step 6,
Flow Stage: Line Balancing

The core implementation team decides to redesign the line

for better flow. The first thing team members do is review
the current-state data, as shown in the table below.
Machine Deburr Crimp Test Mark

Cycle time 45 sec. 5 sec. 40 sec. 30 sec. 50 sec.

Changeover 60 min. 0 5 min. 5 min. 5 min.

Operators 1 0 1 1 1

Uptime 87% 100% 99% 99% 99%

Availability 27,600 27,600 sec. 27,600 27,600 sec. 27,600

sec. sec. sec.
Premiere Manufacturing Case Study – Step 6,
Flow Stage: Line Balancing (cont'd)
Next, the team creates an operator balance chart to compare the
cycle times of each operation to takt time. The balance chart shows
that the line is clearly out of balance (Figure 6-1)
Premiere Manufacturing Case Study – Step 6,
Flow Stage: Line Balancing (cont'd)
By dividing the total cycle time of 170 seconds by the 55 second takt time, the team
calculates that it should be possible to achieve takt time with three operators (currently
there are four)

Formula for Determining the Number of Operators

Number of operators = total cycle time
takt time

170 (total cycle time)

Number of operators = ________________ = 3.09 operators
55 (takt time) (or 3 operators)

After reviewing the current state, going to the shop floor, and talking to operators and the
production supervisor, the team decides to set a total cycle time target of 150 seconds. Achieving
this total cycle time should require only 2.7 operators.

150 (total cycle time)

Number of operators = ________________ = 2.7 operators
55 (takt time)
Premiere Manufacturing Case Study – Step 6,
Flow Stage: Line Balancing (cont'd)
Based on its discussions with operators, the team believes it can achieve the
new target by making the following changes:
 Improving programming and tooling maintenance to eliminate the need for
deburring – one operator required.
 Distributing the work of the three remaining operations between two operators.
Premiere Manufacturing Case Study – Step 6,
Flow Stage: Line Balancing (cont'd)
 Reducing changeover times in machining to 15 minutes
each. (Assuming two changeovers per shift, this means a
total of 30 minutes of changeover time per shift.)
 Achieving changeover times of less than one minute in the
crimping, testing, and marking operations.
The team decides that the value stream should operate with
three operators. Although the personnel requirement was
calculated as 2.7 operators at a total cycle time of 150
seconds, there is simply too much for just two operators.
The operator balance chart for the future state is shown in
Figure 6-2.
Step 6: Continuous Flow Worksheet
Premiere Manufacturing Case Study – Step 6,
Flow Stage: Cell Design
The team realizes that achieving a balanced line depends on applying
the principles of cell design. The plan is to keep machining as a stand-
alone operation and combine crimping, testing, and marking into one
cell. Team members add icons representing the following items to the
future-state demand map:
1. Two future-state cells:
• Machining
• Crimping/testing/marking
2. New attributes for each cell:
• Machining –
• Total cycle time: 45 seconds
• Changeover: 15 minutes
• # of changeovers: 2 per shift
• Crimping/testing/marking--
• Total cycle time: 105 seconds
• Takt time: 55 seconds
• Changeover: less than 1 minute
Determine How to Control Upstream
Production
At points in the system where continuous flow is not
achievable, you must determine how you will
control the flow of production. Review the process
for places where obstacles to continuous flow exist,
and determine whether you can:
• Use in-process supermarkets
• Use a kanban system
• Use FIFO lanes
• Use computer-assisted scheduling (MRP)
Premiere Manufacturing Case Study – Step 6,
Flow Stage: Controlling Upstream
Production
Team members are confident that reconfiguring the old line
into a process with two cells is a good way to sustain flow.
They believe that pulling this off will require in-process
supermarkets prior to machining and between machining
and crimping/testing/marking. A kanban system will also
be critical to sustaining flow. The team decides to defer
mapping this until it focuses on leveling production, when it
will have a better handle on how material will actually flow
though the value stream to meet customer demand.

In the meantime, the team draws two in-process

supermarkets on the future state map in the positions
mentioned above.
Controlling Upstream Production
Determine Which Improvement Methods You
Will Use
As you plan to work toward the goal of achieving one-piece
flow, your future-state map should include the methods or
tools you will use to improve flow. Some improvement
methods to consider again at this stage include:
→ 5S system

→ Quick changeover

→ TPM

→ Autonomous maintenance

→ Standardized work
Premiere Manufacturing Case Study – Step 6, Flow
Stage: Determining Which Improvement Methods to
Use
The team has already identified some improvements necessary for
achieving targets. Now it reconsiders its list of improvement methods
and draws icons at the appropriate places on the future-state map. Here
is the list of the improvement methods the team believes will be
necessary for creating and sustaining continuous flow:
1. 5S, TPM, autonomous maintenance, and QCO at machining
2. Standardized work at the crimping/testing/marking cell
3. QCO at the crimping/testing/marking cell
4. 5S at the crimping/testing/marking cell (to address problems with new
layout) and at shipping.
By identifying TPM as an improvement method, the core
implementation team in the premiere Manufacturing case study is not
calling for a true, plant wide TPM initiative, but an isolated application
of TPM methods.
Which Improvement Methods to Use
Focus on Leveling

Leveling Production is the means to achieve talk

image
• What types of kanban cards will you use?
• How will kanban cards be distributed?
• Where in the process will you schedule production
requirements
• Will you use a heijunka box?
• What will the runner’s route be?
How to Level Production

Leveling production means designing a system in which

information flow regarding customer demand is smoothly
integrated with the flow of material through the value
stream. To make this happen you must base your flow
either on paced withdrawal or a heijunka system.
The steps shown below outline the process for designing a
leveled manufacturing process.
1. Decide on the best method for monitoring production against the
pace of sales – paced withdrawal or a heijunka system, and design
or refine the kanban system, if necessary.
2. Determine the rout of the runner (material handler) and map all
material and information flow.
3. Determine which improvement methods you will use, and add
useful data to the map.
Step 6: Leveling Stage Icons
Step 1

1.Decide on Paced Withdrawal or a Heijunka System

and Design or Refine the Kanban System
Paced withdrawal can be used to move small batches when
there is not variety in the value stream and pitch increments
are identical. A heijunka system will help you level
production based on the volume and variety of the product
being manufactured. Review your current state data and the
demand and flow stage future-state maps, and determined
whether a heijunka system will be required. If you have
decided on using a kanban system to control upstream
production, you should also review and plan for the kanban
system at this point.
Stage 6: Leveling Stage Worksheets
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Decide on Paced Withdrawal or a Heijunka
System
The team reviews the following three facts, most of which were
determined earlier in the process of creating the future state:
• It will be necessary to crate a kanban system
• The customer has requested a container size of 24 units per container
• The containers can be reusable

Pitch has not changed since it was calculated while focusing on

demand, because takt time (55 seconds) and container size of 24
(pack-out quantity) have not changed.

Pitch = 55 (Takt Time) x 24 (Pack-out Quantity) = 1,320 seconds (22 minutes)

This means that every 22 minutes a container of 24 units must be

packed and ready to ship.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Decide on Paced Withdrawal or a Heijunka System
(cont'd)
Kanbans
The team decides that the value stream requires the
following types of kanbans in the following locations:
1. Withdrawal kanbans that will tell the runner (material handler)
how many units should be pulled from the finished-goods
supermarket and staged in shipping.
2. Production kanbans that tell operators in the
crimping/testing/marking cell how many units must be produced to
replenish those pulled from the finished-goods supermarket.
3. Signal kanbans at the in-process supermarket between machining
and the crimping/testing/marking cell that tell the machining
operator how many units have been pulled from the supermarket
4. Signal kanbans just upstream of machining that tell the supplier
how many units have been pulled from raw material inventory.
Step 6: Leveling Stage Worksheets
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Decide on Paced Withdrawal or a Heijunka System
(cont'd)
The team decides that machining will produce in batches
of 96 to 192 unites. The batch size, a multiple of the 24-
unit pack-out quantity, will depend on the number of
signal kanbans that have accumulated after machined
parts have been pulled from the supermarket between
Machining and the Crimping/Testing/Marking cell.

The team decides to wait to draw the icons representing

the kanbans. It will add the signal kanban icons when it
maps material and information flow in Machining; it will
add the withdrawal kanban and production kanban icons
when it maps the runner’s route.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Decide on Paced Withdrawal or a Heijunka System
(cont'd)
Heijunka or Paced Withdrawal?
The team decides to implement heijunka for the following
reasons:
1. A heijunka box, device used to implement a heijunka system,
provides a great means of visually controlling withdrawal
kanbans.
2. The team talks about the likelihood of creating one value stream
to produce #4, #6, #8, and #10 hoses, because the processes are so
similar. Given this likelihood, the team reasons that it would be
wise to familiarize people with heijunka now so that it does not
seem like such a big change when the value stream begins to
product four hoses instead of two.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Decide on Paced Withdrawal or a Heijunka System
(cont'd)
The team draws a heijunka box icon below the production control icon, with a
manual communication arrow running from production control to the heijunka
box. The entire pull system begins here. Since the ratio of customer demand
for the # 4 and # 6 hoses is 2:1, production control will place kanban cards in
the heijunka box in such a way that premiere makes two lots of #4 hoses for
every lot of #6 hoses that it produces (Figure 6-3).
Heijunka Box
Determine the Route of the Runner (Material
Handler) and Map All Material and Information
Flow

The runner, or material handler, will ensure that

pitch is maintained throughout the process. The
runner will follow a designated route, timed to work
within the pitch period, picking up and delivering
kanban cards, components, and tooling as needed.
It is also necessary to plan how the material and
information flow will work throughout the system
where pull will be established.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Determine the Route of the Runner, Map Material
and Information Flow, and Improvement Methods
Runner’s Route, Step 1
Now the team begins to draw the runner’s route:
1. A stick figure drawn beneath the heijunka box
icon represents the runner.
2. A team member draws a withdrawal kanban
halfway between the icon representing the runner
and the icon representing the finished-goods
supermarket. A dashed arrow running from the
runner icon to the supermarket icon is added.
The arrow bisects the withdrawal kanban icon.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Determine the Route of the Runner, Map Material
and Information Flow, and Improvement Methods (cont'd)

Runner’s Route, Step 2

1. The team draws a dashed arrow from the finished-
goods supermarket icon to the Shipping icon to
represent the next leg of the runner’s route.
2. Just beneath the dashed arrow, the team draws a
supermarket parts icon and a physical material
pull icon to show that the runner pulls parts from
the supermarket to stage for shipment.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Determine the Route of the Runner, Map Material
and Information Flow, and Improvement Methods (cont'd)

Runner’s Route, Step 3

1. The team draws a production kanban icon just
above and slightly to the right of the icon
representing the Crimping/Testing/Marking cell.
2. The team draws a dashed arrow running from
the Shipping icon to the
Crimping/Testing/Marking cell icon. The arrow
bisects the production kanban icon.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Determine the Route of the Runner, Map Material
and Information Flow, and Improvement Methods (cont'd)

Runner’s Route, Step 4

The team draws a dashed arrow from the
Crimping/Testing/Marking icon to the finished-
goods supermarket icon. This is all that is required
to show that the runner transfers finished goods
from the Crimping/Testing/Marking cell to the
supermarket.
Premiere Manufacturing Cast Study – Step 6, Leveling
Stage: Determine the Route of the Runner, Map Material
and Information Flow, and Improvement Methods (cont'd)

Runner’s Route, Step 5

After the runner transfers finished goods to the
finished-goods supermarket, he returns to the
heijunka box to retrieve the withdrawal kanban from
the next slot. The team draws a dashed arrow from
the finished-goods supermarket icon to the heijunka
box icon to document this last leg of the runner’s
route.
You may wonder where the runner gets the production kanbans. Production kanbans
are attached to containers of finished goods. When a runner pulls a container of
finished goods from the supermarket to stage for shipment, he or she also pulls the
production kanban from the container. The production kanban is then used to initiate
replenishment of the inventory that has just been pulled.
Mapping Material and Information Flow in
Machining
1. An operator from the Crimping/Testing/Marking cell will be responsible for
pulling required parts from the supermarket between that cell and Machining.
This is shown on the map by drawing a supermarket parts icon and a manual
material pull icon between the supermarket icon and the
Crimping/Marking/Testing cell icon.
2. When the Crimping/Testing/Marking cell operator pulls machined parts from
the in-process supermarket, the operator will also pull a signal kanban from
the container and place it in a special holder on the side of the supermarket
flow rack. The Machining operator will retrieve signal kanbans when he or
she delivers machined parts to the supermarket flow rack. To illustrate this
part of the plan the team draws a manual communication arrow and a signal
kanban icon from supermarket icon to the Machining icon. It draws a
material push arrow running from the Machining icon to the in-process
supermarket icon before Crimping/Testing/Marking.

Note: Even though Machining is not overproducing parts, a material push arrow is still drawn between the
operation and the in-process supermarket just downstream. This indicates that the production schedule in
Machining is not based strictly on what the Crimping/Testing/Marking cell has just pulled from the in-process
supermarket.
Mapping Material and Information Flow in
Machining
3. The Machining operator will be responsible for pulling containers from the
raw materials supermarket just upstream. To illustrate this plan, the team
draws a manual material pull icon and a supermarket parts icon between
the supermarket icon and the Machining icon.
4. The Machining operator will also be responsible for pulling signal kanbans
from raw material containers and placing the signal kanbans on a special
kanban post. The supplier’s truck driver will e responsible for collecting
the signal kanbans and taking them back to the supplier’s plant. To
illustrate this part of the plan, the team draws a kanban post icon between
the supermarket icon and the supplier truck icon. A manual communication
arrow and a signal kanban icon are drawn running from the kanban post
icon to the supplier icon.

Improvement Methods
The team decides to use Visual Controls, or Visual Workplace (VW), at the
crimping/testing/marking cell and the heijunka box. It adds these icons to
the map, along with lead times and total cycle time.
Create Kaizen Plans