WE - EWCO Notes PDF

NVA = Waste = Muda Eliminate……………..Eliminate…………………Eliminate KANZEN INSTITUTE ASIA PACIFIC KANZEN INSTITUTE ASIA PACIFIC  MUDA Activity =...

NVA = Waste = Muda Eliminate……………..Eliminate…………………Eliminate KANZEN INSTITUTE ASIA PACIFIC KANZEN INSTITUTE ASIA PACIFIC  MUDA Activity = MUDA (Waste) + Work (Value Adding) Expenditure = Waste + Cost Raw Material / Delivered Product / information Service Value Adding Activity Non-Value Adding Activity A process step that transforms the shape, Process steps that take time, resources, or property, characteristic or feature of a product space, but do not add value to the product or or service in the direction specified by the service and thus doesn’t add value to customer customer Value addition is what the customer is willing to pay for ! KANZEN INSTITUTE ASIA PACIFIC  The Value Stream “Wherever there is a product or service for the customer, there is a value stream. The Challenge lies in seeing it” Rother & Shook Learning to See, 2004 Value Stream = All activities that are currently required to transform raw materials and information into a finished product and service. How do you identify the value stream? Look at the material from a customer perspective – they want to know where their material is Coming from KANZEN INSTITUTE ASIA PACIFIC  Define Value Firstly recognize who your customer is! Start by challenging traditional definitions of “Value” – Dialogue with the customer Define value in terms of the whole product / service including service components - look through the eyes of the customer Critical need to accept redefined value Target cost is a part of Value definition – what is the Muda free cost KANZEN INSTITUTE ASIA PACIFIC  WHY STUDY VALUE STREAM Web check Queue Boarding Queue Queue Queue Security Waiting Gate (2 checks) ID Check Regular Check in 30 s 120 s 60 s 30 s 3 min 5 min 15 min 10 min Sum of all activity times = 240 seconds or 4 minutes Waiting time = 33 min Actual time taken from entry to boarding ??? Why? Because bottlenecks created due to individual efficiencies KANZEN INSTITUTE ASIA PACIFIC  Key Concepts in VSM Takt time = Rate of demand = Available work time / Customer requirement Eg. Demand is 1000 units. Available time is 500 hrs. Takt Time = 30 mins / 0.5 hrs. Cycle time : time between one part coming out of a process to next part coming out of the process Changeover time (Setup): Time between last good product of one variety to the first good product of another variety in the same process. Value added time (VA) = Time spent in actually transforming the product or service in a way that the customer is willing to pay for Inventory Lead (Wait) time in days = Quantity of inventory/ Daily customer requirement Order Lead Time= Order to Cash cycle Making / Processing / Production Lead Time = Sum of all process cycle times + sum of inventory lead times across the value stream Value Adding Ratio = VA time / Throughput time is a measure of the proportion of time in which the material is transformed in relation to the total time in the system KANZEN INSTITUTE ASIA PACIFIC  Map the current state – Value Adding Ratio 6 Week- Production 90/60/30 Forecast Day Forecast Planning XYZ Ltd Coils Plc Weekly Daily Fax Order 18.400 pcs / Month 1270m Coils MRP -12.000 „Left“ - 6.400 „Right“ Weekly Schedule Tray = 20 Pieces Tues. Daily Ship and Fri. 2 Shifts Schedule Current State Map- Calculate production Leadtime and value added time 1x Daily Stamping S. Weld 1 S. Weld 2 Assembly 1 Assembly 2 Shipping 200 T Coils 4.600 L 1.100 L 1.600 L 1.200 L 2.700 L Staging 5 days 1 2.400 R 1 600 R 1 850 R 1 640 R 1 1.440 R C/T = 1 Sec. C/T = 39 Sec. C/T = 46 Sec. C/T = 62 Sec. C/T = 40 Sec. Production C/O = 1 Hour C/O = 10 Min. C/O = 10 Min. C/O = 0 C/O = 0 Lead Time = Availability=85% Availability=95% Availability=80% Availability=95% Availability=95% 23,6 Days 27.600 Sec. avail. 2 Shifts 2 Shifts 2 Shifts 2 Shifts Value Added EPE = 2 Weeks 27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail. 27.600 Sec. avail. Time = 188 Sec. 5 Days 1 Sec. 7,6 Days 39 Sec 1,8 Days 46 Sec. 2,7 Days 62 Sec 2 Days 40 Sec 4,5 Days KANZEN INSTITUTE ASIA PACIFIC  Time to Serve Value Adding Ratio Total cycle time of all operations to deliver one unit VA ratio = Production Lead Time Tool: Value Stream Mapping 1. Identify Product/Service family 2. Make a current state VSM 3. Calculate VA ratio – gives potential for improvement 4. Identify bottleneck processes for improvement (Effective Cycle time concept) KANZEN INSTITUTE ASIA PACIFIC  QUALITY - Quality is a mindset - As Quality increases, Cost decreases. Because it is rework free now. - Always focus on Quality at Source. - QC is Muda. Customer wants QUALITY and not a QUALITY checker. - Poka Yoke – Mistake proofing / Idiot-proofing a task. KANZEN INSTITUTE ASIA PACIFIC  KANBAN - Pull Method to replenish Incventory - Withdrawal Kanban & Production Kanban. - 2 Bin system. KANZEN INSTITUTE ASIA PACIFIC Visual Management KANZEN INSTITUTE ASIA PACIFIC Visual Management KANZEN INSTITUTE ASIA PACIFIC Visual Management KANZEN INSTITUTE ASIA PACIFIC Visual Management KANZEN INSTITUTE ASIA PACIFIC