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Abstract
The paper addresses the method of value stream analysis, which is a tool for
helping manufacturing companies to go lean and to achieve larger control of
their value stream. It is a qualitative tool that is supposed to give an
understanding of the value stream/value chain as a basis for reducing the
pipeline of inventory and time compress the throughput time. Both physical
flow and information flow are dealt with. The approach is informed by and
conceptualized on basis of experiences in the Japanese automotive industry
and just-in-time production. Focus is product families and it includes suppliers
and customers. A subcontractor case in the automobile industry is analyzed.
Keywords: Value Stream Mapping, VSM, Lean manufacturing.
Introduction
A major activity in the journey towards lean is the effective management of the flow
of products and services through the series of the activities involved in providing
value to the customer, known as the value stream. This requires a detailed
understanding of all the processes involved so that non-value-added activities can be
identified and eliminated. Value stream mapping is a technique that can aid in
developing this required knowledge. This thesis provides a implementation of value
stream mapping throughout the process in the organization.
Since the 1980-s just-in-time production and related paradigms, such as lean
production, have been source of reference for restructuring manufacturing industry.
To a large extent the paradigms are empirical generalizations based on the success of
Japanese automobile industry in the 1980-s and later. Their way of organizing
production and the supply chain proved to be much more flexible and competitive
compared to the old technological paradigm (Lipietz1986). Just-in-time production
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makes up a set of principles related to the material flow and the control of it, quality
control, industrial relationships, relationships to suppliers, etc. (Kalsaas 1995).
Lean Production
Womack et al (1990) introduced the concept of Lean production in The Machine that
changed the World2. It is denoted lean because it does more and more with less and
less (Womack and Jones 1996). Japanese and in particular Toyotas way of making
cars and organize the production, make up the empirical and generalized background
for the Lean production concept, in
Which even some Japanese phrases are applied. In the late 1980s the authors
found the best practice in Japan and in Japanese plants in the West. At the core of the
lean production concept we find customized mass production of tangible products.
Lean Thinking followed up the Machine. Banish waste and create wealth in your
corporation (Womack and Jones 1996). Here the authors contracts lean thinking
into five principles: Precisely specify value by specific product, identify the value
stream for each product, make value flow without interruption, let the customer pull
value from the producer, and pursue perfection. It is argued that companies should
contribute to
Implement lean production to suppliers and customers. The integrated approach
across different companies in a stream is denoted the Lean Enterprise where the
authors integrate thoughts also found in the supply chain management concept (see
for instance Christopher 1992) and extended enterprise (see for instance Boyson et al.
1999), but also to some extent in the value system term (Porter 1985).
Hines and Taylor (2000) brings the lean thinking concept further towards
guidelines for implementation by addressing several analyzing and mapping
techniques. These are divided into six different steps; understanding waste, setting the
direction, understanding the big picture, detailed mapping, getting suppliers and
customers involved and finally checking the plan to fits the direction and ensuring
buy-in.
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Rother and Shook (1999) have published a workbook in value stream mapping
(VSM); whish is an important source of knowledge for Hydro Automotive Structures.
According to Hines and Taylor (2000, p. 21) VSM is a tool barrowed from Toyota
where it is denoted Big Picture Mapping
Case Study
A Indo-German Joint Venture Company situated in Mohali (India), manufacturer of
Anti vibration parts which is being supplied to various OEMs. The total turnover of
the company is 90 crores. The problem which is also a requirement of the OEM the
inventory should be as low as possible in the each process of the company (WIP). The
current status of the inventory is very high. Also department wise inventory
contribution is plotted in the Pie Chart. During management review meeting it was
decided to have fewer inventories on the shop floor. To achieve this team was made
and to start the project. It was decided to start Value stream mapping for the Whole
project to go Lean
Team Identification
Team is identified with members from different departments. This is important in
point of good coordination between the team members. .
Analyzing and Map Current Process
The current state map is a fancy way of saying what happens now or the as-is
process. The current state map should show all the process steps and sufficient detail
on how each step is completed and what happens to the items being processed. This
will enable us to spot the causes of problems and thus the means to improving the
flow, efficiency, reliability and flexibility of the process. It can be as detailed or as
simple as you need and can also exist in a number of different versions for
consumption by different internal or external groups
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For this case study List down all the current processes to know exact status of the
current process. Calculate the Customer Takt Time and Calculate the Current Takt
time (Calculation is given in Table -2). After the identification of the process stream
and Team formation, the next step is to analyze and Map the current process. List
down all the activities with cycle time and waiting time and draw the process map.
The Process mapping sheet for the current process is shown in Fig-. 2 in the page
attached at the last there are total 9 processes were identified
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The analysis of the map consists of identifying the various ways in which the Lean
principles can be applied. These are likely to include:
Moving from a push to a pull process
Reducing batching
Balancing the capacity of the different stages of the process
Eliminating non value-adding steps
Moving decision points to earlier in the process
Simplifying individual steps
Reducing the cycle times or changeover times of individual steps
Improving the flow of information between steps. As well as other specific
improvement activities.
Analyzing and Mapping the Future State
When all the possible improvements have been identified and considered, the next
stage is to develop a single, future state map to show how we want the process to
operate in the future. How far away this future is can vary, on the assumption that the
future state process will be arrived at after a number of sequential blitz events. The
new process is tested against the Lean principles and any waste or flow issues are
identified and removed. When we are convinced that we have a process that is as
good as it can be we draw up the future state map to enable us to explain the new
process to others.
Experience shows that most future state maps will need to be explained. Lean is
simple, but it is not always obvious. Even people who are painfully aware of the
inadequacies of their own processes can be reluctant to substantially change how they
operate.
After mapping of current process the team is decided to go through the each
process thoroughly and mark the area where the inventory is high and the also mark
the process where the inventory is accumulated. The outcome of the study is shown in
the Process mapping sheet as shown in Fig- 2. Also some other improvements are
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identified by team which can leads to improvement in the material handling and
process improvement. These are shown in the Table-1.
The Takt time is calculated after making future process mapping.
Current State
1 Day
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Conclusions
This paper has been intended to introduce educators to Value Stream Mapping
(VSM), which is becoming an essential tool for realizing lean manufacturing in actual
production settings. Essential concepts have been discussed, as have common
symbols and nomenclature, methodologies, and curriculum infusion techniques.
Educators should find this a useful resource base from which to work in order to
augment their current curricula. The results are shown in the form of current and
future process Mapping and improvement is shown in the reduction in inventory and
TAKT Time.
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