11ValueStreamMapping_LeadTime

Module Twelve,Level one,Level one with wrapped text with wrapped text with wrapped text with wrapped text with wrapped text with wrapped text,Level two,Level three,Level four with wrapped text with wrapped text with wrapped text with wrapped text with wrapped text with wrapped text,#, 2001 ConceptFlow,Value Stream Mapping and Lead Times,1,ModuleObjectives,Bytheend of thismodule,theparticipantwillbeable to:,Discuss thedifference betweenoperationsimprovementandprocessimprovement,Identifyandmap avaluestream,Describethecomponentsoflead time,Discuss theimportance of leadtimereduction,2,ProcessesAnd Operations,Process- theflow of products/services/services fromone workertoanother,Operation- thediscretestageatwhicha workermayworkondifferentproducts,/,/services,/,/services,3,GroupExercise,Brainstorm andwriteona flipcharttwo lists -processesandoperations, thatexistinyourorganization,(,(s),4,Four PhenomenaOfProcess,F.B.Gilbreth,SHIP,Delay,(,(Storage,),),Transport,(,(Handling),Inspection,Processing,5,TwoTypesOfDelays,Process delays- delay of an entirelotbetweenprocesses,Lotdelays- occurswhen individualitemswaittofall in stepwithentirelots,6,Process Improvement Or OperationImprovement?,Production is anetworkofprocessesand operations,Butinimproving production, processphenomena shouldbegiventoppriority,7,What Is AValueStream?,Allactions,(,(valueand non-valueadded)currently required:,Todesignaproduct/servicefromconcept to launch,Toproduce aproduct/service fromraw material intothe armsofthe client,8,ValueStreamManagement,Lean EnterpriseInstitute,“.,.,.the processofincreasingtheratioofvaluetonon-value by identifying andeliminatingsources ofwasteintheoverallvaluestreamfor definedproduct/service families,ensuringthat thevaluestreamisprofitableandmeetsorexceedsclientrequirements”,9,IdentifyTheValueStream,Lean Thinking,Valuestreamisall actionsrequiredtobringaspecificservice/productthrough three critical tasks:,Problem Solving,InformationManagement,PhysicalTransformation,TheLeanEnterprise is thesumofall activitiesthatperform these three tasks,Isoftenmore thanone organization,10,BenefitsOfValueStreamMapping,Providesa simplebuttruepicture of whatishappening in theprocess,Calibrates yourteamtoa commonunderstanding of theprocess,Helpsanalyze aprocessbybreakingitdown intoits componentsteps,Providesa structuretowhichspecificdata canbeattached,Includestheflowofmaterialandthe flowofinformation,11,StepsInValueStreamMapping,Selectone product,/,/servicefamilybasedonend client,Have onepersonleadthemappingeffort,Mapthe currentstateatthe “door to door,”,” level,Mapthe desiredfuture leanvaluestream,Develop an implementation plantoachievethefuture state,12,Conduct Portfolio,Analysis,Understand Clients,Goals,&,& Objectives,E/T,=,=60Min,W/T,=,=60Min,VA/T =60Min,Develop Financial,Strategy,E/T,=,=5 Days,W/T,=,=120Min,VA/T =60Min,Model, RiskTol,Rate of Return,TimeHorizon,E/T,=,=1 Day,W/T,=,=30Min,VA/T =10Min,E/T,=,=2 Days,W/T,=,=90Min,VA/T =20Min,Develop Asset,Allocation Strategy,E/T,=,=1 Day,W/T,=,=10Min,VA/T =3Min,BuildPortfolioonAssetAllocation,E/T,=,=2 Days,W/T,=,=45Min,VA/T =30Min,Present Solution to,Client,E/T,=,=5 Days,W/T,=,=60Min,VA/T =40Min,Execute Strategy,E/T,=,=10Days,W/T,=,=1 Day,VA/T =2Hrs,“As,-,-Is,”,” Process,CycleTime:,E/T,=,=249 Hrs,W/T,=,=18.08Hrs,VA/T =6,.,.63Hrs,E/T,=,=Elapsed Time,W/T,=,=Work Time,VA/T =Value,-,-AddedTime,PortfolioReview Duration,Conduct Periodic,Reviews,E/T,=,=3 Days,W/T,=,=60Min,VA/T =40Min,Make Necessary,AdjustmentstoPlan,E/T,=,=2 Days,W/T,=,=30Min,VA/T =15Min,13,IconsForMappingTheCurrentProcess,14,IconsForMappingTheCurrentProcess,15,IconsForMappingTheCurrentProcess,Data box,Process box,Triangle,(,(inventory),Shippingicon (truck,railorair,),),Narrowline,(,(informationflow),Narrowlinewith wiggle,(,(electronicinformationflow),Broadarrow,-,- shipment of goods inboundoroutbound,Striped arrow -pushmovementofmaterial,Timelineshowing value added andnon,-,-valueadded,16,Icons,-,- Value StreamMap,Office,Data Box,Process Box,Inventory,Shipping(Truck),Information,Flow,Electronic Information Flow,ASSEMBLY,17,Icons,-,- Value StreamMap,ShipmentofGoods,(InboundorOutbound),Push MovementofMaterial,Timeline,LeadTime,ProcessingTime,ValueAdded,18,Tips ForMapping TheCurrent Process,Collect datayourselfbywalkingthepathwaysofmaterialand information,Walktheprocessrepeatedly,Beginwith aquick,“,“door,-,-to,-,-door”walk,Bringa stopwatchandgather yourown times,Mapentire streamyourself,Draw by handinpencil,19,LevelsOfAProcess,Terms,Core,Business,Process,(“Strategic”,),),BusinessProcesses,High Level ProcessMap,Detailed,Sub,-,-Process,Map,BusinessDevelopment,Sales,Underwriting,Contracting,Client,Service,Docs,Negotiate,Close,Underwriters,(ext.)Clients,(int.)Cust.ServiceDept.,Client,Tasks,Procedures,Supplier,Functional,Departments,Sub,-,-process,Detailed,Sub,-,-,process,Terms,20,The,“,“As-Is”MapShould ReflectThe ActualProcess,VersionsOfA Process,AtLeastThreeVersions,What YouThinkItIs.,.,.,What YouWould,Like It To Be.,.,.,What It Actually Is.,.,.,21,RelatingTheVersionsOfProcessMaps To LevelsOfPerformance,Time,Defects andWaste,Breakthrough,As-Is,=,= CurrentState,Could-Be,=,= BreakthroughState,ImprovementPeriod,Should,-,-Be,=,=Process Entitlement,Q,S,&,&C,$,Q:Quick,S:Simple,C:Easy,22,Typical ProcessData,Cycletime,Uptime,Inventory,BatchSizes,Numberofoperators,Numberofproduct/service variations,Working time,Scrap/reworkrate,Defectrate,(,(dpu),23,Time Definitions,Cycletime(C/T):how often aunitorproduct/serviceiscompleted by theoperation,;,; start to finish,Changeover time(C/O):timetoswitchfromproducingone product,/,/servicetype to another,Lead time(L/T):timeittakesforone unittocompletethe process,(,(includes NVAtime thatunitorproduct/servicewaitsbetweenoperations),TotalCycleTime: cumulativetimeittakesforunitorproduct/servicetocompleteall operations,(,(doesnot includewaittime betweenoperations),Uptimeiscalculated by dividing theactualtimeavailabletorun by thetime scheduledtorun,Working time(W/T):timeperperiod minus breaks,24,CycleTime- Theactualdurationofatask fromstarttofinish (thecalendartime),Work Time- Theshortesttime currentlypossibleforatask,Value-AddedTime- Theamountofthe worktimethat is actuallyvalue-addedtherestiswaste!,“Cycle,”,” Time,“Work”Time,“Value,-,-Added,”,” Time,Work TimeVersus Value-Added Time,25,Demo,OK?,1)Map,“,“As-Is”Process -,2)Prioritize Waste Opportunities,-,-,3)IdentifyLean Methodsand,AssignAction Items -,4)Map,“,“FutureState”, Perform,Demo,andDeploy -,Level0,Level1,Lean SolutionResponsibilityDue Date,Step-by-StepProcessForWasteElimination,26,BusinessProcess Example,-,-IdentifyTheValueStream ForTheProcess,Thetop-level value streamforasalesorderprocess:,C/T,=,=0,Initial,Contact,?,No,Yes,C/T,=,=5 min.,Wait for,SalesPerson,C/T,=,=10min,.,.,Sales,Pitch,C/T,=,=30min,.,.,Configure,Product/Service,C/T,=,=10min,.,.,Complete,OrderForm,C/T,=,=5 min.,Promise,toShip,C/T,=,=7 days,Pending,OrderQueue,C/T,=,=6 days,BatchSimilar,Orders,C/T,=,=3 days,CheckAvail.,C/T,=,=1 day,Work Order,Issued,27,Conduct Portfolio,Analysis,Understand Clients,Goals,&,& Objectives,E/T,=,=60Min,W/T,=,=60Min,VA/T =60Min,Develop Financial,Strategy,E/T,=,=5 Days,W/T,=,=120Min,VA/T =60Min,Model, RiskTol,Rate of Return,TimeHorizon,E/T,=,=1 Day,W/T,=,=30Min,VA/T =10Min,E/T,=,=2 Days,W/T,=,=90Min,VA/T =20Min,Develop Asset,Allocation Strategy,E/T,=,=1 Day,W/T,=,=10Min,VA/T =3Min,BuildPortfolioonAssetAllocation,E/T,=,=2 Days,W/T,=,=45Min,VA/T =30Min,Present Solution to,Client,E/T,=,=5 Days,W/T,=,=60Min,VA/T =40Min,Execute Strategy,E/T,=,=10Days,W/T,=,=1 Day,VA/T =2Hrs,Step 1,-,-Mapthe “As-Is”ValueStream,“As,-,-Is,”,” Process,CycleTime:,E/T,=,=249 Hrs,W/T,=,=18.08Hrs,VA/T =6,.,.63Hrs,E/T,=,=Elapsed Time,W/T,=,=Work Time,VA/T =Value,-,-AddedTime,PortfolioReview Duration,Conduct Periodic,Reviews,E/T,=,=3 Days,W/T,=,=60Min,VA/T =40Min,Make Necessary,AdjustmentstoPlan,E/T,=,=2 Days,W/T,=,=30Min,VA/T =15Min,28,Speed,“Ifthings seemunderyourcontrol,you,rejustnotgoingfastenough,”,”,MarioAndretti,“Itusedtobethat thebigate thesmall.Now thefast eattheslow”,GeoffYang,Institutional VenturePartners,29,Conduct Portfolio,Analysis,Understand Clients,Goals,&,& Objectives,E/T,=,=60Min,W/T,=,=60Min,VA/T =60Min,Develop Financial,Strategy,E/T,=,=5 Days,W/T,=,=120Min,VA/T =60Min,Model, RiskTol,Rate of Return,Time,Horizon,E/T,=,=1 Day,W/T,=,=30Min,VA/T =10Min,E/T,=,=2 Days,W/T,=,=90Min,VA/T =20Min,Develop Asset,Allocation Strategy,E/T,=,=1 Day,W/T,=,=10Min,VA/T =3Min,BuildPortfolioonAssetAllocation,E/T,=,=2 Days,W/T,=,=45Min,VA/T =30Min,Present Solution to Client,E/T,=,=5 Days,W/T,=,=60Min,VA/T =40Min,Execute Strategy,E/T,=,=10Days,W/T,=,=1 Day,VA/T =2Hrs,Step 2,-,-PrioritizeWaste,/,/,DefectOpportunities,“As,-,-Is,”,” Process,CycleTime:,CrossFunctional TeamPrioritizesOpportunities,Conduct Periodic,Reviews,E/T,=,=3 Days,W/T,=,=60Min,VA/T =40Min,Make Necessary,AdjustmentstoPlan,E/T,=,=2 Days,W/T,=,=30Min,VA/T =15Min,Red,GreatestPotentialBenefit,Yellow,Worthwhile Opportunity,E/T,=,=249 Hrs,W/T,=,=18.08Hrs,VA/T =6,.,.63Hrs,30,Step 3,-,-IdentifyLeanMethods andAssignAction Items,WasteOpportunityImpactEasePrioritySixSigma,/,/ LeanMethod,Conduct PortfolioAnalysis,Develop FinancialStrategy,Present Solution to Client,Execute Strategy,521,532,333,454,Provide Clienta simplechecksheetof,informationneeded,call centersworkas,Conciergefor thisfeature,Usingcall centersinmeetingwith advisors,informationisdirectlytypedinto websitefor,immediateinformationflowtoservices,Basedonreduced variation,client returnmeeting,isscheduledwithconfidence duringfirstvisit,Work variationreductionprojectto,understand howtogetthe clienttoyes,atgreater percentages at presentation,Process Blitz ActionItems,DuringProcessBlitzthecrossfunctionalteam identified,standardizationand technologicalsolutions to waste issues.Teamrecommended,only those technologysolutions thatwereavailable, butnotcurrently activated.,31,Conduct Portfolio,Analysis,Understand Clients,Goals,&,& Objectives,E/T,=,=60Min,W/T,=,=60Min,VA/T =60Min,Develop Financial,Strategy,E/T,=,=1 Day,W/T,=,=120Min,VA/T =60Min,Model, RiskTol,Rate of Return,Time,Horizon,E/T,=,=1 Day,W/T,=,=30Min,VA/T =10Min,E/T,=,=60Min,W/T,=,=60Min,VA/T =20Min,Develop Asset,Allocation Strategy,E/T,=,=1 Day,W/T,=,=10Min,VA/T =3Min,E/T,=,=2 Days,W/T,=,=45Min,VA/T =30Min,Execute Strategy,E/T,=,=5 Days,W/T,=,=1 Day,VA/T =2Hrs,Step 4,-,-Future State Map,FutureProcess,CycleTime:,E/T,=,=146 Hrs,W/T,=,=15.92Hrs,VA/T =6,.,.63Hrs,FutureStateMap,Conduct Periodic,Reviews,E/T,=,=3 Days,W/T,=,=60Min,VA/T =40Min,Make Necessary,AdjustmentstoPlan,E/T,=,=2 Days,W/T,=,=30Min,VA/T =15Min,Red,GreatestPotentialBenefit,Yellow,Worthwhile Opportunity,PreviousProcess,CycleTime:,E/T,=,=249 Hrs,W/T,=,=18.08Hrs,VA/T =6,.,.63Hrs,BuildPortfolioonAssetAllocation,Present Solution to Client,E/T,=,=5 Days,W/T,=,=60Min,VA/T =40Min,32,FutureLeanValueStream,Produce to clientdemand,Develop continuousone-piece flow,Control productionwithpull systems,Send theclientscheduletoonlyoneprocess,(,(the pacemaker),Leveltheproductionmixatthe pacemaker,Leveltheproductionvolumeatthe pacemaker,33,ImplementingThe FutureLean Value Stream,Beginwith completedmapoffuture value stream,broken downintoa seriesofconnectedflowsor,“,“loops”,Develop value streamplan,Exactly whatyou wanttodobywhen,stepbystep,Measurable goals,Clearcheckpointswith named reviewer(s,),),34,Advantages Of LeadTimeReduction,Shortdeliverytime to client,Quickly adapt to changesindemand,Lowwork-in-process,Minimizeexcessand obsolete advice/plansduetochanges,35,PhilipR.Thomas -Thomas Group,Inc,.,.,Totalcycletime (lead time,),) reductiondrivesthreeelementsofcompetitiveness:,Responsiveness: Abilitytomeetclient,slatestneed,Results Acceleration: Abilitytoaccelerateallimprovement,ResourceMinimization: Focus resourcesonremovingbarrierstocompetitiveness,36,PhilipR.Thomas -Thomas Group,Inc,.,.,Totalcycletime canbemeasuredandimproved,Mapping theprocess hasvisualimpact -how longdostepstake?,Shorter cycle timeresultsinmore cyclesoflearningforproblemsolving andprocess improvement (more feedback loops),37,BarriersToCycleTime Improvement,BusinessProcess Barriers,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,Culture Barriers,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,_,38,PhilipR.Thomas -Thomas Group,Inc,.,.,Visionisshortercycletime,less inventorycombinedwith lessrisk,Cycletime is composed of actionsinprogressandprocessing speed,Keyconcept: Do fewer actionsinprogress, do theremainingonesfaster,39,KeyLearningPoints,40,Objectives Review,Bytheend of thismodule,theparticipantwillbeable to:,Discuss thedifference betweenoperationsimprovementandprocessimprovement,Identifyandmap avaluestream,Describethecomponentsoflead time,Discuss theimportance of leadtimereduction,41,Trademarks andService Marks,SixSigmaisafederallyregisteredtrademarkofMotorola, Inc.,BreakthroughStrategyisafederallyregisteredtrademarkofSix Sigma Academy,.,.,VISION,.,.FORAMORE PERFECTWORLDisafederallyregisteredtrademarkofSix Sigma Academy,.,.,ESSENTEQisa trademarkofSixSigmaAcademy.,FASTART is atrademark of SixSigmaAcademy.,BreakthroughDesign is atrademark of SixSigmaAcademy.,BreakthroughLeanisa trademarkofSixSigmaAcademy.,DesignwiththePowerofSix Sigma is atrademark of SixSigmaAcademy.,LegalLean is atrademark of SixSigmaAcademy.,SSANavigator is atrademark of SixSigmaAcademy.,SigmaCALCisatrademarkofSix Sigma Academy,.,.,iGrafxisa trademarkofMicrografx,Inc,.,.,SigmaTRACisatrademarkofDuPont.,MINITAB is atrademark of Minitab, Inc.,42,Conduct Portfolio,Analysis,Understand Clients,Goals,&,& Objectives,E/T,=,=60Min,W/T,=,=60Min,VA/T =60Min,Develop Financial,Strategy,E/T,=,=5 Days,W/T,=,=120Min,VA/T =60Min,Model, RiskTol,Rate of Return,Time,Horizon,E/T,=,=1 Day,W/T,=,=30Min,VA/T =10Min,E/T,=,=2 Days,W/T,=,=90Min,VA/T =20Min,Develop Asset,Allocation Strategy,E/T,=,=1 Day,W/T,=,=10Min,VA/T =3Min,BuildPortfolioonAssetAllocation,E/T,=,=2 Days,W/T,=,=45Min,VA/T =30Min,Present Solution to Client,E/T,=,=5 Days,W/T,=,=60Min,VA/T =40Min,Execute Strategy,E/T,=,=10Days,W/T,=,=1 Day,VA/T =2Hrs,Step 2,-,-PrioritizeWaste,/,/,DefectOpportunities,“As,-,-Is,”,” Process,CycleTime:,CrossFunctional TeamPrioritizesOpportunities,Conduct Periodic,Reviews,E/T,=,=3 Days,W/T,=,=60Min,VA/T =40Min,Make Necessary,AdjustmentstoPlan,E/T,=,=2 Days,W/T,=,=30Min,VA/T =15Min,Red,GreatestPotentialBenefit,Yellow,Worthwhile Opportunity,E/T,=,=249 Hrs,W/T,=,=18.08Hrs,VA/T =6,.,.63Hrs,43,Conduct Portfolio,Analysis,Understand Clients,Goals,&,& Objectives,E/T,=,=60Min,W/T,=,=60Min,VA/T =60Min,Develop Financial,Strategy,E/T,=,=1 Day,W/T,=,=120Min,VA/T =60Min,Model, RiskTol,Rate of Return,Time,Horizon,E/T,=,=1 Day,W/T,=,=30Min,VA/T =10Min,E/T,=,=60Min,W/T,=,=60Min,VA/T =20Min,Develop Asset,Allocation Strategy,E/T,=,=1 Day,W/T,=,=10Min,VA/T =3Min,E/T,=,=2 Days,W/T,=,=45Min,VA/T =30Min,Execute Strategy,E/T,=,=5 Days,W/T,=,=1 Day,VA/T =2Hrs,Step 4,-,-Future State Map,FutureProcess,CycleTime:,E/T,=,=146 Hrs,W/T,=,=15.92Hrs,VA/T =6,.,.63Hrs,FutureStateMap,Conduct Periodic,Reviews,E/T,=,=3 Days,W/T,=,=60Min,VA/T =40Min,Make Necessary,AdjustmentstoPlan,E/T,=,=2 Days,W/T,=,=30Min,VA/T =15Min,Red,GreatestPotentialBenefit,Yellow,Worthwhile Opportunity,PreviousProcess,CycleTime:,E/T,=,=249 Hrs,W/T,=,=18.08Hrs,VA/T =6,.,.63Hrs,BuildPortfolioonAssetAllocation,Present Solution to Client,E/T,=,=5 Days,W/T,=,=60Min,VA/T =40Min,44,