Thursday, November 18, 2010

VSM makes problems visible

Lean principles talk about making problems visible so that they can be solved. Value Stream Mapping focuses on charting activities as they happen in the process. The main goal of VSM is to make problems/waste visible.

But what happens next is equally important. Problems need to be acted upon. Lean practitioners need to identify what how to resolve problems or remove waste.
The following approach may help practitioners with problem solving:
1. Identify the list of problems in your area.
2. Measure the impact of the problem on external and internal customers and the organization's bottomline.
3. Prioritize by impact of the problem.
4. Undertake root cause analysis using 5 Why analysis or cause and effect diagram.
5. Identify root causes and corrective actions that can be implemented.

Problems are everywhere. Sometimes very prominent staring you in your face and other times hidden. The key is to find them as soon as they appear and fix them.

This actually resonates with what Philip Crosby said "It isn't what you find; it's what you do about what you find".

What problem solving technique do you use in your workplace? How do you identify problems? Send us your comments at info@sybeq.com.

Thursday, October 28, 2010

Using a Pull system not so Lean

One of the key lean tools is implementing kanban which uses the pull system. Lean is all about moving away from the traditional push system toward the pull system. In a lean enterprise, it is always recommended not to push parts or information to the next process step. The focus is to pull parts when the downstream process step requests for parts/information.

Some Lean practitioners rave about the pull systems they have implemented. However experienced Lean practitioners don't give much credit to pull systems. This is because...
1. Lean is all about removing waste.
2. When waste cannot be removed, there is inventory in process or at the final stage. This inventory needs to be managed in the best way possible. In such situations, a pull system is used.

Implementing the pull system is an indication that waste is still present. This is a good starting point for reducing waste but it is definitely the final goal. The Lean implementation team should not stop at implementing the pull system. In fact the team should continuously work toward removing waste altogether and not use the pull system.

As rightly said by Jeffery Liker in the book Toyota Way "Flow where you can, pull where you must". The ultimate goal to make value flow as smoothly as possible.

Monday, October 11, 2010

Information on Value Stream Maps

Value Stream Maps are used to map the flow of information and material in the value stream. This generic statement explains the purpose the value stream maps.
But new users struggle with how much detail about the value stream should be captured on the VSM.

What should be captured?
How should this information be displayed on the map?
In this post we will try to answer these questions.

A value stream map is a picture of your value stream. It's purpose is to find what is happening now which will help identify waste in the value stream. Once waste becomes visible Lean tools can be applied to remove it.

The following information could be helpful if captured on a value stream map..
1. The layout of the area will become evident once the map is complete. The amount of distance between process steps or user motions at the step or the physical movement of material and information.

2. The amount of time required by the user to process a unit. For example time required to verify one insurance claim at the claims verification step.

3. The amount of wait time at the process step. Wait time could be people waiting for material/information (no parts or claims to process) or material/information waiting to get processed (Average wait time for raw material in the incoming warehouse or wait time for claims process to begin).

4. Total time per unit at each process step. This is the addition of processing and wait time per unit.

5. Total lead or throughput time for the entire value stream. This is the time needed to make a single part or process a single insurance claim.

6. Time for rework and repair activity. This information needs to be captured if rework/repair is being tracked as part of the value stream. If this is considered as another value stream this information can be left out.

7. Interruptions in the flow of value as reworked parts/claims get reintroduced at a specific step in the value stream.

What kind of information do you capture on Value Stream Maps?

Tuesday, September 28, 2010

VSM during early stages of Lean implementation

How many Value Stream Maps should be created at the start of Lean implementation?
We typically hear this question from...
1. Users who have recently learned the Value Stream Mapping tool
2. Organizations who are new to Lean implementation, just starting out on their lean journey

Start the Lean implementation with a few (say 2 to 3) value stream maps for processes that have the most non value adding activities (waste).

Why just 2 to 3?
Because of several reasons..
1. Creating Value Streams is a time consuming activity.
- Teams creating these maps have to walk the value stream and capture information
about material and information flows.
- Teams have to then create the current state map, identify waste and the Lean
tools they plan to use, create the future state map.

2. After creating the maps in the meeting room, now teams have to actually go and implement the Lean tools in the value stream. This is the most challenging part as this may take anywhere from a few days to few weeks. There are many aspects of the implementation like corporate culture, motivation level of people, management involvement, complexity of the process that could play a role.

3. Getting rid of all the waste in the process may require several cycles of going from the current to the future state. After all Lean is a journey of continuously removing waste.

How many value streams have you worked with? How many value streams did you start with when your organization was in early phases of Lean implementation?
Send us your questions or comments at info@Sybeq.com

Thursday, September 23, 2010

Where to begin mapping Value Streams?

In the last post we talked about the different questions lean pratitioners have about implementing Value Stream Mapping.

The question of where to begin mapping value streams actually requires understanding the definition of value stream.
Lean practitioners need to have the ability to clearly identify and define a value stream.

A Value Stream is a stream of activities required to satify a customer need. The value stream starts with the customer who may be external or internal and ends where it is has a logical end. What this means is...
1. Start with the customer. First, define who is the customer and what do they need.
2. With this defined, start Walking the value stream backwards one step at a time.
3. Stop wherever it seems to be a logical stopping point.

While doing the above steps do not restrict the value stream by functions or departments. This is because a value stream may cross multiple departments. The ultimate goal of value Stream Mapping is to map how the stream works starting with the customer first and ends where it is a logical stopping point.

Do you face the challenge of where to begin mapping value streams? Tell us about your VSM implementation. Email: info@sybeq.com

Monday, August 30, 2010

How to Map Value Streams in the real world?

Over the years we have heard many questions about Value Stream Mapping from people who are new to VSM as well those who have used VSM before.
Questions like these are not uncommon...
Where to begin mapping the Value Stream?
How many Value Stream Maps should be created to begin Lean implementation?
What about overlapping Value Streams?
How to handle parallel Value Streams?
How much information should be captured on the Value Stream Maps?

We will try to address the above questions in the next few posts.

In this post we would like to address the reason for the above questions. The primary reason for VSM questions is the way most people think. In Lean thinking, Value is defined by the customer and it flows across multiple functions. The focus of VSM is to capture the flow of material and information across the functions by actually walking the stream. Additional information like process and wait time along with information about the person working at the process step is also captured on the Value Stream Map. Overall lead time can also be calculated and displayed on the map.

Most of the confusion around VSM is because people think about process maps or about the function/department they work in.
This is because most organizations still think about department efficiency or process steps. Value Stream Mapping crosses multiple functions in the organization.

The steps to map Value Streams is explained in the article How to Map Value Streams?on our website.

Saturday, August 21, 2010

Becoming lean without reducing mura

In the last post we covered the importance of balancing muri and mura to remove muda (waste) in the process. But what do you do when mura or unevenness in production cannot be controlled?

We often hear manufacturers say that production volumes change everyday sometimes every hour as the customer demand is constantly changing. In today's world the business has to do what the customer wants or be prepared to face consequences of lost sales, lost customer etc.
Most customers today demand what they need when they need it. Businesses that can cater to this need survive.
So how does the business remain lean inspite of these flucutations in production volume?

The business can be ready for such fluctuations by accounting for it beforehand. The manufacturer can plan for this by taking 3 simple steps...
1. Carry a small finished goods inventory to satisfy the customer demand in case the demand suddenly rises. The question becomes how much? Carry enough inventory to allow production to run smoothly without stressing the plant people and equipment. Carrying too much inventory is a form of waste and not recommended in a lean system. Too much inventory will hide problems and tie up cash in form of product cost, floor space occupied to store the product etc.

2. Plan for producing quantities that do not push the plant over limits. This will allow the plant to pace production so that the total cycle time is met. Process steps can be run below takt time to meet customer demand.

3. Leadership should think ahead with the foresightedness of planning for leveling the production load so that customer demand is met.

Do you experience irregularities in production? How do you manage such production irregularities and being lean at the same time?
Write to us at info@sybeq.com about your experiences and challenges in your lean journey.