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# Supplier Development at SysInteg (A) - CURRENT STATE MAP & MCT CALCULATIONS

## Instructions for Students:

1Refering to case Exhibit 6, examine the placement of the "Days" and "Mins" data in the Castle Wall of the map below
2Review the NVA, VA and nNVA classifications prepared by the VSM particiants as shown in the Quick Reference row below. Note any questions on the VSM participant's classifications
3Using the "Days" and "Mins" cells in the rows in the Castle Wall below, examine the development of Tables A, B and C in the MCT Calculations below.
4Accept the NVA, VA and nNVA classifications as shown below in the Quick Reference row, and then use Kaizen Bursts to identify areas for improvement or steps to be eliminated. Refer to case Exhibit 5. (e.g. See example at inventory between Receive & Schedule)
5Reduce/eliminate times at your "Kaizen Burst" points using your best judgements and discuss your rationale with a classmate.
Then prepare a modification of the MCT calculations using the "Days" and "Mins" cells in the rows of the Castle Wall to enter new time values. These values will be used in the Tables A, B and C "MCT calculations".
6 Be prepared to share your modified MCT calculations spreadsheet in class complete with Kaizen bursts, new values, eliminated processes and rationale
Notes:
1 The expected course of analyses and improvement thinking is CURRENT STATE --> CURRENT STATE WITH KAIZEN BURSTS --> FUTURE STATE (new values, no bursts) Kaizen
However, for this exercise retain the Kaizen bursts on your FUTURE STATE MAP for the classroom discussion. bursts
2 The actual FUTURE STATE version prepared by the VSM participants will be distributed at the end of the class

time - should be
reduced)
value

## TRAVEL to REVIEW SOURCE PACK &

RECEIVE SCHEDULE 1st ARTICLE DIMENSIONAL SUPPLIER CERTIFICATION ACCEPTED PICK INSPECTION XSQS SHIP
Inv 1 Inv 2 Inv 3 Inv 4 Wait Inv 5 Inv 6 Inv 7 Inv 8 Table A
Castle Days 1 45 1 0 12 2 3 0 0 1 0.5 0 65.5 NVA
Wall Mins 10 5 90 150 60 20 5 10 30 15 30 80 VA
Quick reference NVA VA NVA VA NVA nNVA nNVA NVA nNVA NVA VA VA VA NVA VA NVA nNVA nNVA 345 nNVA
Description of MCT Calculations for NVA, VA and nNVA times:
1 This document should be used along with a copy of the Current State Map (case Exhibit 6) in hand. Table B
2 Table A Calculations- This is the Problem-Free Lead Time 78.1 NVA
NVA Sum of lead time (days) in castle wall. (see yellow row above). 80 VA
Inv 1 1 370 nNVA
Inv 2 45 60% require attention

CONTACT RESPONSE OF
Inv 3 1 VENDOR CORRECTION Table C
Inv 4 12 Wait 12.6 NVA
Travel 2 21 0 VA
Wait 3 15 10 25 nNVA
Inv 5 0
Inv 6 1 60% of actual lead time, as 60% end up in this loop.
Inv 7 0.5 b Lead time is 21 days for this loop
Inv 8 0
SUM 65.5 DAYS
VA Sum of Value Adding process times (minutes). The VA processes (see Quick Reference row above) as determined by the VSM participants in the Current State are:
Schedule 5
Review Cert 20
Accepted 5
Pick 10
Source Insp 30
SUM 80 MINUTES
nNVA Sum of all other process times (minutes) (see Quick Refernece row).
1st Article 90
Dimensional 150
Travel Supplr 60
XSQS 15
Pack & Ship 30
SUM 345 MINUTES
3 Table C Calculations- This is the Problem Lead Time.
NVA 60% of 21 days = 12.6 Days. As 60% of the items "fail" and enter this loop MEP/VSM participants decided to consider only 60% of the time. However for the problem-free flow line (Table A) it considered 100% as it was the "ideal" case.
VA Zero as there is no VA time in this process loop (Problem Area)
nNVA Sum of all other processes in the Castle Wall (lower row).
Contact 15
Response 10
SUM 25 MINUTES
4 Table B Calculations-This is the Total Lead Time (MCT)
NVA Sum of A & C
VA Sum of A & C
nNVA Sum of A & C