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VSM - OMLP Minute

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Aitan Lawit

on 29 December 2013

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Transcript of VSM - OMLP Minute

How do we define value?
We don't... the customer does.
Value is anything
we're willing to pay for.
Everything else is waste
and not my problem.
Step 2: Follow the material flow
Work your way back from the customer to the supplier
Define each operation in terms of cycle Time, C/O & Setup Time, Batch Size, Operators, Workstations, Yields, Uptime
An operation is defined as anywhere where WIP builds
Note the WIP between operations in WIP Triangles

Step 1: Start at the customer
Understand customer demand and available time
Calculate takt time for the value stream

Step 4: Map Information Flow
Work your way back from the customer to the supplier
Visualize how information is communicated

Step 3: Compare Value Add Time to Lead Time
Draw a ladder line where the lower portions represent value add time and the upper portions represent non value add time
For each operation, mark value add time on the lower ladderline using cycle time
For each queue, mark non value add time on the upper ladderline using wait time (WIP divided by takt time)
Calculate Value Add Time by adding value add time across all operations
Calculate Lead Time by adding non value add time across all queues to value add time

Value Stream Mapping is a tool that helps us...
visualize how we deliver value to our customers in terms of material and information flow
identify opportunities to eliminate waste
communicate actual process vs. perceived process to stakeholders
Low frequency, high quantity deliveries from supplier (2500 every Monday)
Step 5: Identify Waste
Use lean principles to identify waste where there are large buckets of non-value added time. Remember, the customer is not paying for this waste
Prioritize these opportunities for improvement and come up with an action plan to implement.
Remove the waste from the value stream!

WIP between Cut and Assemble Operation
Applications to Parck:
Create a wing-to-wing value stream map of the entire TTBA process to understand the value add vs non value add time.
Create individual value stream maps for each value segment of the TTBA process (housing, detectors, rotors, etc.)
Understand how material and information flows through the value stream.
Identify waste in the process and prioritize opportunities for improvement
Step 6: Map out Future State
Based on the improvements made, map out the process again with the new flow and lead time based on the improvements you have made to eliminate waste
Note: You will never be able to eliminate all waste. World class manufacturing processes are approximately 10% value add time. There will always be opportunity for improvement!

Batching within Cut Operation
Low Yield at Test operation. Inspection add end of value stream
Don't forget that value stream mapping is scalable.
The customer can be the next step in the process.
Full transcript