Lean Day 2

Principles of Lean

1. Identify Customers and Specify Value   (Customer Value Checklist)

2. Map the Value Stream                             (VSM As-Is )

3. Create Flow

4. Respond to Pull

5. Pursue Perfection

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VSM terminologies

CT (Cycle Time)                = Actual Process Time + In-built delay time.

TPT (Throughput time)     = CT + Queue Time+ Move Time+ Inspection Time + Waiting

FPY (First Pass Yield)        = Total good output / Total Input

RTY (Rolled ThruPut Yield) =  FPY (Process 1) x FPY (Process 2) .......... x FPY (Process N)

LT (Lead Time)                     =  Customer IN  to Customer OUT time.

Change Over time (CO)        = Time taken to change over from one type to another type.

WIP  (Work In Progress)        = Time when Work Started but not completed yet.

Customer Takt time                = Total available working time / Customer demand (# of units).

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VA, NVA, and BVA

Process Efficiency (PE)  = VA x 100 / VA + NVA

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VSM:

Steps in Value Stream Mapping:

0. Select product family (choose the product family as per Customer Takt time requirement)
1. Collect customer information (product family, volume, delivery frequency).
2. Tour the plant to identify & map the sequence of the main process.
3. Draw supplier information, collect data for critical parts, map the process flow
4. Draw information flow (Production schedule, communication system, interaction, ordering forecast)
5.Start collecting data from the last process in the sequence & fill out the data boxes, count inventory & map inventory locations.
6. Draw material flow & process interaction (Push, Pull, etc.)
7. Calculate Value Added, Non-Value Added, Process Efficiency.
8. Analyze each activity.
9. Identify Kaizen points

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