Understanding Muda and Value Stream Analysis

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Questions and Answers

What does Takt time represent in value stream mapping?

The rate of demand for a product or service. (correct)
The duration of customer service interactions.
The time required to train employees.
The time taken for product delivery.

Which of the following best defines cycle time?

The time between one part coming out of a process and the next part coming out. (correct)
The total time taken from start to finish of a process.
The waiting time experienced by a customer.
The speed at which a customer completes a transaction.

What is the primary purpose of redefining value in terms of the whole product or service?

To create more complex products.
To improve individual worker efficiency.
To reduce the cost of raw materials.
To view the product from the customer's perspective. (correct)

What does changeover time in a process signify?

The duration from the last good product of one variety to the first good product of another. (A) Signup and view all the answers

Why is identifying bottlenecks important in value stream mapping?

To reduce total waiting time and improve efficiency. (C) Signup and view all the answers

Which of the following does NOT add value to a product or service?

Waiting time during production (D) Signup and view all the answers

What is defined as a process step that transforms the shape or property of a product or service?

Value Adding Activity (C) Signup and view all the answers

What is the main focus when identifying the value stream?

The customer's perspective (C) Signup and view all the answers

In the context of the value stream, what do 'waste' and 'cost' together represent?

Expenditure (C) Signup and view all the answers

How is value addition determined?

By the willingness of the customer to pay (D) Signup and view all the answers

What is one of the first steps in defining value according to the principles mentioned?

Recognize who your customer is (D) Signup and view all the answers

What encompasses all activities required to transform raw materials into a finished product?

Value Stream (A) Signup and view all the answers

Which of the following best describes 'muda'?

Activities that do not add value to products or services (B) Signup and view all the answers

What is the cycle time (C/T) for the Shipping operation?

40 Sec (C) Signup and view all the answers

Which operation has the highest availability percentage?

Assembly 1 (B) Signup and view all the answers

What does the Value Added (VA) ratio represent?

Total cycle time of all operations to deliver one unit divided by production lead time (B) Signup and view all the answers

What does a decrease in quality result in?

Increased costs due to rework (A) Signup and view all the answers

Which of the following is NOT a benefit of focusing on quality at the source?

Decreases production speed (A) Signup and view all the answers

According to the content, which term implies mistake-proofing a task?

Poka Yoke (C) Signup and view all the answers

What is the effective cycle time concept primarily used for?

To identify bottleneck processes for improvement (D) Signup and view all the answers

What is indicated by the Lead Time of 23.6 days?

The time customers wait for product delivery (B) Signup and view all the answers

What is the formula for calculating Value Added time (VA)?

Time spent in actually transforming the product or service in a way that the customer is willing to pay for (D) Signup and view all the answers

What is the definition of Order Lead Time?

The time from order to cash cycle (C) Signup and view all the answers

How is Inventory Lead (Wait) time in days calculated?

Quantity of inventory divided by Daily customer requirement (A) Signup and view all the answers

What does the Value Adding Ratio measure?

The proportion of transforming time in relation to throughput time (A) Signup and view all the answers

Which of the following best describes the term 'Throughput time'?

The total time taken for products to move through the entire production process (B) Signup and view all the answers

What components contribute to Making / Processing / Production Lead Time?

Sum of all process cycle times + sum of inventory lead times across the value stream (B) Signup and view all the answers

Which of the following is not a part of calculating Value Added time?

The time products spend waiting for processing (C) Signup and view all the answers

When calculating the current state for production planning, what is important to map?

All process cycle times and their associated inventory lead times (C) Signup and view all the answers

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Study Notes

Muda

Muda is Japanese for waste
Activities or expenditures that are not directly adding value to the customer
There are many types of Muda including Overproduction, Waiting, Defects, Transportation, Inventory, Motion, and Processing
Value addition is what the customer is willing to pay for

Value Stream

All activities required to transform raw materials or information into a finished product or service
The process of identifying and understanding the value stream is critical for identifying opportunities for waste reduction and process improvement

Defining Value

The customer's perception of value is paramount
Traditional perspectives of 'value' should be challenged through dialogue with customers
The customer should be at the center of decision-making to define what they truly value in both product & service

Key Concepts

Takt Time = The rate of demand is calculated by dividing the available work time by the customer's needs
Cycle Time: The time between one product being completed in process and the next product in the same process
Changeover Time: Time between one product type being completed in process and the beginning of the next product type
Value Added Time (VA): The time spent transforming the product/service in a way that adds value to the customer
Inventory Lead Time: The time it takes to replenish a certain quantity of inventory
Order Lead Time: The time it takes to process an order from receiving to shipping
Processing Lead Time: Production lead time is a summation of all processing time to complete a product plus the total inventory time
Value Adding Ratio: The proportion of time spent transforming the product in relation to the total time in the system (VA time / Throughput time)

Quality

Quality is a mindset
Focus on Quality at Source: Implementing quality controls within each stage of production
Quality increases as cost decreases - Investing in quality at source results in less rework and lower costs overall
Customer wants quality, not quality checkers: Customer wants a product or service that is inherently quality, not just a check or a checker.
Poka Yoke: Implementing 'Mistake-proofing' mechanisms within the production line to prevent errors from happening in the first place

The Value Stream Mapping Process

Identify the product/service family
Create a current state map
Calculate the VA ratio to identify potential for improvement
Identify bottleneck processes to implement improvement (Effective Cycle Time is a concept that helps pinpoint areas that slow down production)

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