VSMFinal Finally

Waste Assessment and Waste Reduction in Bread Production by Using VSM as a Tool (Lobel's Bread, Bulawayo)
DEDICATIONS
To my parents, my brother Aaron, and wife, and also to my Precious for encouragement
Alphonse Marecha BEng. Final Year Project May 2008 NUST, Zimbabwe
ACKNOWLEDGEMENTS
I am deeply indebted to the following people My industrial supervisor, Mr. W. Goriwondo, for giving me the much needed academic guidelines, criticism, and ideas Management at Lobels Bread for giving me the environment needed for completion of this study, assisting me with information, and criticism. I especially thank Mr. Shaiso (Production Manager), Mr. Gwatidzo (Human Resources Manager), and Dennis (Maintenance Manager) Production supervisors and staff at Lobels Bread for helping me doing the project we actually did this together! I especially thank Trust, Pedzi, and Zivai. Other members of Lobels Breads administrative staff especially: Abbie for answering me questions about and supplying information on the companys ERP system; Maintenance Department staff especially Tawanda, Chris, and Aleck; also Mr. Tarwira, Sanjo, and Vuyelwa. My colleagues at NUST in helping me in their different ways some of which they are not even aware of especially Willo Dee, Tanaka, and Itai for reviews and comments. Many thanks go to the following guys who assisted in funding the project: Aaron, Abias, and Anselmo. I THANK YOU ALL!!!
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ABSTRACT
The purpose of the study outlined in this dissertation is to identify major wastes at a company (Lobel's Bread (Pvt) Ltd, Bulawayo) and develop a plan for reducing those using lean techniques. The company manufactures and sells bread and confectionery products. International competition and customer demands are forcing radical changes to occur in manufacturing. As a result, traditional manufacturing paradigms are being challenged and new manufacturing principles are being developed. In an internal manufacturing context, there are two types of operation that can be categorized: non-value adding (NVA) and valueadding (VA). Value stream mapping, which utilizes these types of operations, shall be used for waste reduction in the Lobel's production line. The basics of value stream mapping and a waste assessment model are given in Chapter Two (Literature Review). The model is based on a previous research done by Rawabdab (Rawabdab, 2005). Firstly, the major product at the company was selected based on a ProductQuantity Analysis given in Chapter Three. Secondly, the waste assessment was done to rank the wastes according to an indication factor also explained in the same chapter. Thirdly, Process Activity Mapping led to the drafting of a current state map that shows the state of events at Lobel's Bread during the time this study was carried out. The data used in this study was selected from the period February 2008 to May 2008 as explained in the first chapter. Lastly, the current state map was analysed and studied for waste reduction as explained in Chapter Four and the Future State Map shown in Appendices. The work leading to this dissertation was done in close consultation with management, supervisors, and staff at Lobel's. The major money-earning product at the company is the standard white bread as shall be proved in Chapter Three. Most of Lobel's Breads customers would be found in Bulawayo and it enjoys a modestif not a comfortablemarket share in the region. With the company venturing into retailing, expansion is imminent hence the need to reflect on waste awareness and cost-effective production. This study has been faced with some limitations as shall be outlined in the last chapter, which also gives recommendations for implementation and further work. The author has given a straight-to-the-point outlay, and wishes the reader some interesting reading. Alphonse Marecha
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NOTATION
W j k Fj Xj,k Ni Sj sj fj Yj Pj Yjfinal = Weight of waste relationship = Type of waste for each = Question number in Waste Assessment Questionnaire (WAQ) = Frequency of cells that were assigned a frequency not Zero = Product of waste of each relationship and a weight factor = Number of questions for each type of question in the WAQ = Score for each type of waste = New score for each type of waste = New frequency of cells that were assigned a weight not Zero = Initial indication (or ranking) factor for each type of waste = Probability of occurrence of a waste = Final indication factor for each type of waste
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DEFINITION OF TERMS
: Time required to change a process or machine from one product line to the next : A process where a product moves from one manufacturing Continuous Flow operation to the next, one piece at a time, without stopping. Current State Map (CSM) : A diagram that models the present-day conditions of a manufacturing process of a product or product family : The time that elapses from the beginning of a process operation Cycle Time (C/T) until its completion : Enterprise Resource Planning ERP : Movement of material or information. The idea of flow in lean Flow manufacturing is to have information and material to move uninterrupted as little as possible Changeover Time (C/O) Future State Map (FSM) Lead Time Lean Manufacturing Manufacturing Cell Muda NVA PQ Analysis Product Family Product Layout Pull System : A diagram that suggests ways to minimize wastes and the consequence loss of money : Time it takes to produce a product from beginning to end : The manufacturing concept of minimising waste : A group of machines or workstations that work in a continuous flow pattern : A Japanese word for waste and used in reference to wastes in a manufacturing system : Non-value Added : An analysis that shows Product versus Quantity; it can be in tabular form or graph. : A group of products that share the same resources and manufacturing process : Plant Facility Layout where the facilities are arranged according to sequence of product process requirements. : An alternative to scheduling individual processes, where the customer process 'withdraws' the items it needs from a supermarket and the supplying process produces to replenish what was withdrawn : An inventory system to control a set of WIP or inventory for upstream processes : Time taken to produce a specified quantity of product : Value Added : Information or material in the form that a customer is willing to pay for : Involves all the steps, VA, and NVA, required to complete a product or service from beginning to end : Visual representation of a Value Stream. A tool that helps reveal the wastes and problems with product flow
Supermarket Takt VA Value Value Stream Value Stream Mapping
Waste Work In Progress (WIP) Work Order (WO)
: Anything within a Value Stream that adds costs or time without adding value : Unfinished product that is in queue or waiting for additional processing : Documentation used on the shop floor to build the product. It includes prints.
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CONTENTS
CHAPTER ONE: INTRODUCTION................................................................................................................... 1 1.0 1.1 1.2 1.3 1.4 1.5 1.6 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3.0 3.1 3.2 3.3 3.4 3.5 3.6 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2 5.3 INTRODUCTION ...................................................................................................................... 1 AIM ......................................................................................................................................... 1 OBJECTIVES ........................................................................................................................... 1 SCOPE ................................................................................................................................... 1 JUSTIFICATION/BACKGROUND............................................................................................... 2 METHODOLOGY ..................................................................................................................... 3 CONCLUSION ......................................................................................................................... 3 INTRODUCTION ...................................................................................................................... 4 LEAN MANUFACTURING OVERVIEW ...................................................................................... 4 THE SEVEN W ASTES ............................................................................................................. 4 THE W ASTE ASSESSMENT MODEL ....................................................................................... 7 THE VALUE STREAM ............................................................................................................ 14 W ASTE REMOVAL INSIDE VALUE STREAMS ........................................................................ 16 THE SEVEN VALUE STREAM MAPPING TOOLS ................................................................... 17 MANUFACTURING PROCESS FLOW ..................................................................................... 24 CONCLUSION ....................................................................................................................... 24 INTRODUCTION .................................................................................................................... 25 OVERVIEW ........................................................................................................................... 25 RAW MATERIALS.................................................................................................................. 25 THE MAJOR PRODUCTS ...................................................................................................... 26 ANALYSIS OF THE CSM....................................................................................................... 27 W ASTE ASSESSMENT AND RANKING .................................................................................. 29 CONCLUSION ....................................................................................................................... 34 INTRODUCTION .................................................................................................................... 35 RESULTS FROM W ASTE RANKING ....................................................................................... 35 OVERALL RESULTS OF THE FUTURE STATE MAP ............................................................... 35 W ASTE REDUCTION METHODS ........................................................................................... 36 CONCLUSION ....................................................................................................................... 37 INTRODUCTION .................................................................................................................... 38 CONCLUSIONS ..................................................................................................................... 38 RECOMMENDATIONS ........................................................................................................... 38 LIMITATIONS OF THE STUDY ................................................................................................ 39
CHAPTER TWO: LITERATURE REVIEW....................................................................................................... 4
CHAPTER THREE: COMPANY AUDIT......................................................................................................... 25
CHAPTER FOUR: RESULTS.......................................................................................................................... 35
CHAPTER FIVE: DISCUSSIONS AND CONCLUSIONS ........................................................................... 38
REFERENCES ................................................................................................................................................... 40 APPENDICES..................................................................................................................................................... 41 APPENDIX A: APPENDIX B: APPENDIX C: APPENDIX D: APPENDIX E: SYMBOLS FOR VALUE STREAM MAPPING ........................................................................... 41 W ASTE ASSESSMENT MODEL ............................................................................................. 45 PROCESS ACTIVITY MAPPING ............................................................................................. 51 CURRENT STATE MAP (CSM)............................................................................................. 52 FUTURE STATE MAP (FSM)................................................................................................ 53
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LIST OF FIGURES
FIGURE 2.1 THREE MAIN CATEGORIES OF W ASTE ............................................................................................ 6 FIGURE 2.2 - EXAMPLE OF PROCESS ACTIVITY MAPPING ................................................................................... 19 FIGURE 2.3 - PRODUCT FLOW LAYOUT................................................................................................................ 24 FIGURE 3.1 - PQ ANALYSIS OF LOBEL'S BREAD'S PRODUCTS BY CATEGORY ................................................... 26 FIGURE 3.2 - BREAD CATEGORY PQ ANALYSIS .................................................................................................. 27 FIGURE 3.3 - W ASTE RANKING ............................................................................................................................ 34
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LIST OF TABLES
TABLE 2.1 EXAMPLE: W ASTES RELATIONSHIPS ................................................................................................. 7 TABLE 2.2 - CRITERIA FOR EVALUATING STRENGTHS OF WASTE RELATIONSHIPS .............................................. 8 TABLE 2.3 - RANGE DIVISIONS OF STRENGTH OF DIRECT RELATIONSHIPS ......................................................... 9 TABLE 2.4 EXAMPLE: RELATIONSHIP W EIGHTINGS BETWEEN DIFFERENT TYPES OF WASTES ........................ 9 TABLE 2.5 - W ASTE RELATIONSHIP MATRIX ........................................................................................................ 10 TABLE 2.6 - EXAMPLE OF A COMPLETED W ASTE ASSESSMENT QUESTIONNAIRE (WAQ)................................. 11 TABLE 2.7 EXAMPLE: NUMBER OF GROUPED ASSESSMENT QUESTIONS STEP 1........................................ 12 TABLE 2.8 - ORIGINAL W EIGHTS AS OBTAINED FROM THE WRM STEP 1 ....................................................... 12 TABLE 2.9 - DIVISION OF TABLE 2.8 BY NI VALUES STEPS 2 & 3..................................................................... 13 TABLE 2.10 - MULTIPLICATION OF TABLE 2.9 BY W EIGHT FACTOR (WK) STEP 4............................................ 13 TABLE 2.11 - THE SEVEN STREAM MAPPING TOOLS .......................................................................................... 18 TABLE 2.12 - ORIGINS OF THE SEVEN VALUE STREAM MAPPING TOOLS........................................................... 18 TABLE 3.1 - NUMBER OF GROUPED ASSESSMENT QUESTIONS WRA STEP 1 (II)........................................... 29 TABLE 3.2 - ORIGINAL W EIGHTS AS OBTAINED FROM THE WRM (PAGE 50) WRA STEP 1 (III)...................... 30 TABLE 3.3 - DIVISION OF TABLE 3.2 BY NI VALUES WRA STEPS 2 TO 3......................................................... 31 TABLE 3.4 - MULTIPLICATION OF TABLE 3.3 BY W EIGHT FACTOR (WK) WRA STEP 4..................................... 32 TABLE 3.5 - INITIAL INDICATION FACTOR YJ WRA STEP 5 ............................................................................... 33 TABLE 3.6 - FINAL INDICATION FACTOR AND RANKING (YJFINAL) WRA STEP 6................................................ 33 TABLE 3.9 - DECLARED BREAKAGES (FEB-MAY 2007)...................................................................................... 34 TABLE 4.1 - THE MAJOR THREE W ASTES ............................................................................................................ 35 TABLE 4.2 - CSM AND FSM COMPARISON.......................................................................................................... 35 TABLE A1 - VSM PROCESS MAPPING TOOLS ..................................................................................................... 41 TABLE A2 -VSM MATERIAL SYMBOLS ................................................................................................................. 42 TABLE A3 - VSM INFORMATION SYMBOLS .......................................................................................................... 43 TABLE A4 - VSM GENERAL SYMBOLS ................................................................................................................. 44 TABLE B1 - EXPLANATION OF W ASTE RELATIONSHIPS ....................................................................................... 45 TABLE B2 - W ASTES RELATIONSHIPS .................................................................................................................. 46 TABLE B3 - CRITERIA FOR EVALUATING STRENGTHS OF WASTE RELATIONSHIPS ............................................ 47 TABLE B4 - RANGE DIVISIONS OF STRENGTH OF DIRECT RELATIONSHIPS ........................................................ 47 TABLE B5 - RELATIONSHIP WEIGHTINGS BETWEEN DIFFERENT TYPES OF W ASTE ........................................... 48 TABLE B6 - W ASTE RELATIONSHIP MATRIX ......................................................................................................... 49 TABLE B7 - W ASTE ASSESSMENT QUESTIONNAIRE (WAQ) ............................................................................... 49
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CHAPTER ONE: INTRODUCTION

1.0 Introduction
The company researched is a producer of bread and confectionery foods. It boasts of a considerable chunk of the market in the Zimbabwean city of Bulawayo. This project shall analyse the Lobel's manufacturing processes and find out which stages add Value to the end product and which parts of their processes generate Waste (or non-value-add) and can therefore be improved with the view to reduce wastes. The technique to be used to eliminate the various wastes is Value Stream Mapping (VSM), which visually maps the flow of materials and information from the moment products enter as raw materials, via all process steps, until the moment that the products leave as finished products. The wastes under discussion are the seven wastes of lean manufacturing. Only a few wastes shall be selected for reduction according to the quantified ranking of the wastes relative to each other.
1.1
Aim
To make an assessment of and minimize major wastes in bread production for Lobel's Bread, using Value Stream Mapping as a tool.
1.2
1. 2. 3. 4.
Objectives
Conduct a waste assessment and quantify by rank the seven wastes of lean within the bread production process Establish the Current State Map of the overall process flow Identify areas where waste reduction is possible and develop the Future State Map Convert the improved work flow into a lean layout
To execute the above-mentioned aim, the project shall encompass the following objectives:
1.3
Scope
This project shall be done for the Bulawayo branch of Lobels Bread (Private) Limited, on one bread production line (henceforth referred to as Line 1). Value Stream Mapping can be used to analyse both the flow of information and the flow of a product in a manufacturing process. This project dissertation shall concentrate on both. Furthermore the implementation and training of personnel at the organisation chosen shall not be done but only a guideline shall be suggested.
1.4
Justification/Background
Management at Lobel's indicated that defect wastes and unnecessary inventory always gave them some problems in the plant. The waste ranking conducted in this document confirmed that defect waste ranked highest, followed by inventory and motion wastes. Awareness of the effect these wastes will subsequently lead to other wastes (since the wastes may have an intercourse with each other), made it necessary to find means to minimize them. The justification further comes from the major benefits of Value Stream Mapping as a waste minimization tool: it is a Lean 6S methodology i.e. a manufacturing improvement approach based on the premise that work is accompanied waste or non-value-added effort that should be minimized or eliminated. Waste is any activity that does not add value to the final product. Available evidence shows that VSM has been applied successfully to a number of bakeries in the United Kingdom and Lobel's cannot be an exception (MT Manufacturing Centre, 2007). Given examples show that savings in manufacturing costs can be realised through the elimination of the valueless material waste and through the useful use of human resource waste. Also by mapping the manufacturing processes involved, VSM helps visualise the production process at the plant level. Furthermore, the participation of the mixed bag of the VSM team during the initial and continual stages of its implementation brings a sense of teamwork when the different departments come to value each others jobs. A systematic and continuous identification and elimination of waste can lead to increased efficiency, improved productivity and enhanced competitiveness. Generally, companies that work towards the elimination of waste in their manufacturing processes realize the following benefits: lower raw material stock and associated holding cost, reduced work-in-process, and lower finished goods inventories; higher levels of product quality; increased flexibility and ability to meet customer demands; lower overall manufacturing costs; and increased employees' involvement Fundamentally, poor competitiveness is caused by the existence of large amounts of waste. Reduction of these non-productive activities (waste) eventually saves time and allows more resources to be allocated to improving throughput and profitability. The major benefits of this project can be analysed by considering the amount of money that is lost through wastes (and therefore money that should be saved).
1.5
Methodology
The purpose of this study is to use VSM to reduce wastes in the Lobel's Bakery by identifying the wastes with the seven wastes associated with lean manufacturing. Information used shall be based on oral sources, direct observation, and also on the data stored on the companys ERP system (known as the SAGE Pastel). The methodology adopted here shall be subject to the following assumptions: 1st assumption : 2nd assumption: 3 assumption:
rd
All pre-existing data is reliable and accurate. Top-level management will give support and backing. The model is created and the suggestions given are based on one product line (bread); factors outside this product line are not considered.
4th assumption: 5th assumption:
Not all suggestions may be effective at eliminating associated wastes The results of the study will only apply to the company that is the focus of the research.
The study will focus solely on bread Production Line 1 of Lobel's Bread. Bread has been selected because it comprises approximately 89.7% of the products that the bakery produces. Several other confectionery products are produced at the company but they have a low contribution towards the overall turnover value. Figure 3.2 (Page 27) shows the PQ analysis of the bread category (by turnover value) produced. The data used is for the six months to May 2007. This period has been selected because it represented the near-true operations of the company than after June when a directive from the Ministry Of Industry And International Trade to reduce prices resulted in low production levels and staff lay-offs.
1.6
Conclusion
In coming up with this project the author looks forward to a continuous improvement of the waste elimination/reduction system at the company. It is surprising to note that most organizations especially those in Zimbabwe are not quite aware of the waste or non-valueadd processes in their plants, especially the non-material ones. Although the scope of this project has been limited to a fast-food manufacturing industry, available literature show that it can also be applied to service industries like banks, hospitals, and the transport sectors. A briefing on the necessary adjustments needed for this shall be included in the next chapter (Literature Review).
CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction
An overview of lean manufacturing outlined in this chapter will describe how value stream mapping is a fundamental component of waste elimination. Lean thinking is a systematic approach for identifying and eliminating wastes. Value stream mapping is a fundamental aspect of lean. There are various mapping tools used to map the current state map and the future state map (shown in the appendix). Now, before the mapping is done, the wastes in the company have to be identified and quantified. A waste assessment model shall be developed based on the work of Ibrahim A. Rawabdab (Rawabdab, 2005). This shall be outlined in detail in this chapter. From these rankings shall the major wastes in the plant selected for minimization. This waste assessment model shall be involve an algorithm called Waste Ranking Algorithm (WRA).
2.1
Lean Manufacturing Overview
Lean is described as the removal of "muda." Muda is a Japanese word that means waste, specifically any human activity which absorbs resources but creates no value (Womack & Jones, 1996). In a manufacturing environment, piles of excess product or WIP waiting in queue are a waste; consuming floor space and increasing the time a product takes to flow through the plant. Forklifts transporting goods from one point to the next are waste. Unnecessary movements of people during the course of their work are wastes. These examples are considered wastes because they are activities that absorb resources but create no benefit for the customer. Lean is identifying and eliminating any wastes that do not create value. Lean revolves around the elimination of muda or waste, therefore it is important that this concept is well understood. The seven major forms of waste are listed in the section 2.2 below.
2.2
The Seven Wastes
2.4.2 Overproduction
Overproduction is regarded as the most serious waste as it discourages a smooth flow of goods or services and is likely to inhibit quality and productivity. Such overproduction also tends to lead to excessive lead and storage times. As a result defects may not be detected early, products may deteriorate, and artificial pressures on work rate may be generated. In
addition, overproduction leads to excessive work-in-progress stocks which result in the physical dislocation of operations with consequent poorer communication. This state of affairs is often encouraged by bonus systems that encourage the push of unwanted goods. The pull or kanban system was employed by Toyota as a way of overcoming this problem.
2.4.3 Time Waiting

When time is being used ineffectively, then the waste of waiting occurs. In a factory setting, this type of waste appears whenever goods are not moving or being worked on. This waste affects both goods and workers, each spending time waiting. The ideal state should be no waiting time with a consequent faster flow of goods. Waiting time for workers may be used for training, maintenance, or kaizen activities and should not result in overproduction.
2.4.4 Transporting
The third waste, transport, involves goods being moved about. Taken to an extreme, any movement in the factory could be viewed as waste and so transport minimization rather than total removal is usually sought. In addition, double handling and excessive movements are likely to cause damage and deterioration. The distance of communication between processes is proportional to time taken to feed back reports of poor quality and to do corrective action.
2.4.5 Inappropriate Processing

It occurs in situations where overly complex solutions are found to simple procedures such as using a large inflexible machine instead of several small flexible ones. The over-complexity generally discourages ownership and encourages the employees to overproduce to recover the large investment in the complex machines. Such an approach encourages poor layout, leading to excessive transport and poor communication. The ideal, therefore, is to have the smallest possible machine, capable of producing the required quality, located next to preceding and subsequent operations. Inappropriate processing occurs also when machines are used without sufficient safeguards such as poke-yoke devices, which results in poor quality goods.
2.4.6 Unnecessary Inventory

Work or product quantities that are beyond the absolute minimums needed tend to increase lead time, preventing rapid identification of problems and increasing space, thereby discouraging communication. Thus, problems are hidden by inventory. To correct these problems, they first have to be found. This can be achieved only by reducing inventory. In addition, unnecessary inventories create significant storage costs and, hence, lower the competitiveness of the organization or value stream wherein they exist.
2.4.7 Unnecessary Motion

This is unnecessary movement that involve the ergonomics of production where operators have to stretch, bend, and pick up, or walk to access data storage when these actions could be avoided. Such waste is tiring for the employees and is likely to lead to poor productivity and, often, to quality problems.
2.4.8 Product Defects

Anything that does not meet the customer requirements is considered a product defect. These bottom-line wastes because they are direct costs. The Toyota philosophy is that defects should be regarded as opportunities to improve rather than something to be traded off against what is ultimately poor management. Thus defects are seized on for immediate kaizen activity.
2.4.9 Three Main Categories of the Seven Wastes

The seven wastes can also be categorized into three main groups related to: man, machine, and material by means of activities or conditions that affect the fourth, namely, money. The man-group contains the concepts of motion, waiting, and overproduction; the machine-group contains over-processing waste; and the material-group contains transportation, inventory and defects waste. However, man and material overlaps in overproduction waste, whilst machine and material overlaps in defect waste. This classification is shown in Figure 2.1 below.
Unnecessary Motion OverProducing Time Waiting MAN
Transportation Product Defects Unnecessary Inventory MATERIAL MACHINE

Inappropriate Processing
Figure 2.1 Three Main Categories of Waste
NB:
Another category called Method shall be used in this analysis, which tends to encompass all of the seven wastes.
2.3
The Waste Assessment Model
The proposed waste assessment model commences by articulating the overlapping areas of the seven wastes and understanding the seven wastes relationships. A criterion was established to quantify the strength of direct relationships, thus leading to the creation of a waste matrix that classifies the strength of relationships using a scale ranging from very weak to very strong. Next, an assessment questionnaire was introduced. Within the context of the company, it was possible to rank waste by combining the relationship matrix and the results of the assessment questionnaire.
2.4.10 Seven Wastes Relationships

Discussing the relationships among wastes is complex because the influence of each type on the others can appear directly or indirectly. The following discussion addresses the effect of each type of waste on the other six types. Each type of waste is abbreviated using its initial: Overproduction Excess Inventory Defects Motion Waste Transportation Waste Inappropriate Processing : : : : : : O I D M T P
Each relationship would be assigned a hyphen -. For instance, O-I indicates the direct effect of overproduction on inventory. Below, Table 2.1 shows an example of which waste is affecting, and is affected, by the others.
Table 2.1 Example: Wastes Relationships
To
From
M X
O I D M P T W KEY X
X X
X X X
A relationship exists between the waste types A strong relationship exists within the same waste type No relationship whatsoever exists between the waste types
The different types of relationships would not be of equal weights. We have to know which type of waste contributes more to the wasteful activities on the shop flow. The waste assessment model develops a measurement criterion based on a questionnaire to quantify the strengths of the waste relationships (Table 2.2 below). The questionnaire consists of six questions and each answer has a specified weight ranging from 0 to 4.
Table 2.2 - Criteria for Evaluating Strengths of Waste Relationships
Question List Weight (1) Does i produce j? a. Always 4 b. Sometimes 2 c. Rarely 0 (2) What is the relationship between i and j? a. As i increases, j increases 2 b. As i increases j reaches a constant level 1 c. Random, depends on conditions 0 (3) The effect of j due to i a. Appears directly and clearly 4 b. Needs time to appear 2 c. Not often appears 0 (4) Eliminating the effect of i and j is achieved by: a. Engineering solutions 2 b. Simple and direct 1 c. Instruction solution 0 (5) The effect of j due to i mainly influences a. Quality of products 1 b. Productivity of resources 1 c. Lead time 1 d. Quality and productivity 2 e. Productivity and lead time 2 f. Quality and lead time 2 g. Quality, Productivity, and Lead time 4 (6) To what degree does the effect of i on j increase manufacturing lead time? a. High degree 4 b. Medium degree 2 c. Low degree 0
2.4.11 Developing Relationship Weightings

Developing the relationship weightings may be illustrated by a series of tables below. The explanation for the waste relationships is given in Table B1 (Appendix B). Table 2.4 gives an example (over-production relationships only) of the analysis that summarises the results related to the relationships and each answer assigned a weight according to Table 2.2. The weights when added together result in a summation as recorded in the Score column of Table 2.4. Score indicates the strength of each relationship, with a higher score indicating a
stronger relationship and vice-versa. The ranges of scores are as shown in Table 2.3 below. These ranges give the symbols that appear in the last column of Table 2.4.
Table 2.3 - Range Divisions of Strength of Direct Relationships
Range 17 to 20 13 to 16 9 to 12 5 to 8 1 to 4
Type of Relationship Absolutely necessary Especially important Important Ordinary closeness Unimportant
Symbol A E I O U
Table 2.4 Example: Relationship Weightings between Different Types of Wastes
Question Number Qn 1 2 3 4 5 6 Relati Relatio onshi Ans. Wght Ans. Wght Ans. Wght Ans. Wght Ans. Wght Ans. Wght Score nship O-I b 2 c 0 b 2 c 0 b 1 c 0 5 O O-D a 4 a 2 a 4 b 1 d 2 b 2 15 E O-M b 2 c 0 c 0 b 1 d 2 c 0 5 O O-T b 2 a 2 b 2 b 1 f 2 b 2 11 I U O-W c 0 c 0 c 0 a 2 e 2 c 0 4
2.4.12 Waste Relationship Matrix

The measurement criterion analysis would be organized in a matrix titled Waste Relationship Matrix (WRM). Each row indicates the effect of a certain waste on the other six wastes. Similarly, each column indicates to what extent a certain type of waste will be affected by others. An example of the WRM is presented in Table 2.5. The diagonal of the matrix was assigned with the highest relationship value, as by default, each type of waste will have the ultimate relationship with itself. The waste matrix represents real relationships among wastes. The weightings of each row or column, when totalled, give a score that represents the effect of a waste type on others or was affected by the others. This score is converted into a percentage to provide a more simplistic metric, as illustrated and summarized in Table 2.5. A scale of 10 (instead of 20 depicted by Table 2.3) may be chosen by dividing the Score values by a factor of 2 for ease of use and comparative exposition.
Table 2.5 - Waste Relationship Matrix
To From O I D M T P W Score Score (%)
O 10 2 4 0 2 3 1 22 5.00%
T 6 4 6 0 10 0 0 26 5.91%
P 0 0 0 3 0 10 0 13 2.95%
W 8 0 6 8 4 6 10 42 9.55%
Score Score (%) 36 28 37 36 26 32 25 440 8.18% 6.36% 8.41% 8.18% 5.91% 7.27% 5.68% 100%
2 8 2 10 7 5 5 10 6 9 6 10 4 4 2 2 6 5 10 4 0 42 45 30 9.55% 10.23% 6.82%
2.4.13 Waste Assessment Questionnaire

A waste assessment questionnaire (WAQ) would then be developed to allocate wastes in the production line. The WAQ may have as many questions as may suit the company under review. Each question represents an activity, a condition, or a behaviour that may lead to a specific type of waste. In the WAQ, From means that the question represents an existing type of waste that may lead to other wastes, with reference to the WRM To means that a question represents any existing type of waste that may have been caused by other types of waste Each question has three answers assigned weights of 1, 0.5, and 0. The questions were then categorized into four groups of Man, Machine, Material, and Method since each question is related to one of these categories. An example of a WAQ is shown in Table 2.6.
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Table 2.6 - Example of a Completed Waste Assessment Questionnaire (WAQ)
Qn. # (k)
QUESTION
TYPE
Category (1): Man Does Management transfer operators to various jobs and 1 machines so that operations can be performed by all individuals? Do supervisors provide the amount & quality of supervision 2 needed? Category (2): Material Do materials appear to be standing around piled up 12 unnecessarily on the receiving bay? Do production workers stand around waiting for materials to 13 arrive? 14 Are materials moved more often than necessary? 15 Do perishable materials go bad on a number of occasions? Category (3): Machine Are tests on the efficiency of the machines, standard to 16 manufacturers specifications, periodically conducted? 20 Are the MHE used suitable for the jobs that they do? 21 Is there alternative routing in case a critical machine fails? Category (4): Method Is warehouse space availability known in order to avoid 22 blockage of warehouse aisles? Is storage space used effectively for storage with aid of racks 24 and forklift trucks? 25 Do most of the products flow in one direction? Are the results of quality control, product testing, and 30 transportation passed on to Production Engineering? Answer ANSWERS: Symbol Weight, wk Yes a 1.0 To some extend b 0.5
To Motion From Motion
To Inventory To Waiting To Defects From Defects From Process From Transportation From Process To Transportation From Waiting From Motion From Defects No c 0
Now, each question will lead to a certain type of waste by a certain degree, depending on its answer and the final rank of wastes will depend on the combination of answers. Hence the assessment model suggests an algorithm (henceforth called Waste Ranking Algorithm or WRA in short) consisting of several steps as explained below.
2.4.14 The Waste Ranking Algorithm (WRA)

STEP 1: Count the From and To questions of the same type of waste in Table 2.6 to come up with something like Table 2.7. Utilize original weights of waste relationships as shown by the WRM (Table 2.5) and basing on Table 2.6 produce Table 2.8 that simplifies calculating the final score of existing waste types.
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Table 2.7 Example: Number of Grouped Assessment Questions Step 1
i 4 5 9 10 11 12
Type of Question From motion From transportation To motion To transportation To waiting To Inventory
No. of Questions (Ni) 3 3 4 10 4 5
Table 2.8 - Original Weights as Obtained from the WRM Step 1
Qn Type
Qn # (k)
Weighting, W j , k
Category (1): Man To Motion 1 From Motion 2 From Defects 3 From Motion 4 From Motion 5 SCORE
O 2 0 4 0 0 90
I 5 9 5 9 9 120
D 6 6 10 6 6 60
M 10 10 6 10 10 78
T 2 0 6 0 0 99
P 5 3 0 3 3 47
W 0 8 6 8 8 88
STEP 2:
Rearrange Table 2.8 and remove variation of the number of questions for each question type by dividing each weight in a row by the corresponding number of questions (Ni) for each question type (Table 2.9). Let
W Weight of Relationship j Type of Waste for each Qn Number, and k Question number
Sum the values of each column under each type of waste to obtain a score:
Sj
k 1
W j ,k Ni
for each Type of Waste j
Eqn. I
STEP 3:
Remove the effect of a null answer. For each type of waste represented by waste columns, count each cell that was assigned a weight. An example of the results is shown in Table 2.9 where
F j Frequency of Cells that were Assigned a Weight NOT Zero
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Table 2.9 - Division of Table 2.8 by Ni Values Steps 2 & 3
Qn Type Category (2): Material From Waiting To Waiting From Transportation From Inventory From Inventory
Qn # (k) 6 7 8 9 10
Weighting, W j , k N i
O 2.00 1.00 0.67 1.00 1.00
I 0.00 10.00 1.33 5.00 5.00
D 1.50 4.00 1.33 3.50 3.50
M 2.00 0.00 0.67 2.50 2.50
T 1.00 0.00 3.33 2.00 2.00
P 1.50 0.00 0.00 0.00 0.00
W 2.50 10.00 1.33 0.00 0.00
FINAL SCORE, S j Freq. of Non - Zero Scores, F j
41.83 24
91.92 28
86.50 30
57.50 26
49.50 17
22.25 14
81.33 25
The Final Score row was compiled using Eqn. I Answer the assessment questionnaire. As discussed previously, each question has three answers with assigned weights (wk) 1, 0.5, or Zero. Multiply the row values obtained in Table 2.9 obtained for each type of waste by the weight factor of each answer as shown in Table 2.10
STEP 4:
X j , k ( Row Value for each Type of Waste) (Weight Factor of each Answer) wk Ni Sum values in each column under each type of waste to obtain the new score:
s j wk
k 1 K
i.e X j , k
W j,k
W j,k Ni
for each type of waste j
Eqn. II
Count the number of non-zero terms in each column to obtain frequency fj.
Table 2.10 - Multiplication of Table 2.9 by Weight Factor (wk) Step 4
Qn Type k Ans. c c b b b b
wk
Weighting, w k W j , k
Ni
Category (3): Machine From Process 16 From Waiting 17 From Process 18 From Transportation 19 From Transportation 20 From Process 21
O 0.00 0.00 0.38 0.33 0.33 0.38 18.21 16
I 0.00 0.00 0.25 0.67 0.67 0.25 44.04 21
D 0.00 0.00 0.75 0.67 0.67 0.75 37.33 21
M 0.00 0.00 0.63 0.33 0.33 0.63 22.13 19
T 0.00 0.00 0.00 1.67 1.67 0.00 24.25 11
P 0.00 0.00 1.25 0.00 0.00 1.25 7.38 9
W 0.00 0.00 0.75 0.67 0.67 0.75 33.25 16
0 0 0.5 0.5 0.5 0.5
NEW SCORE, s j
Freq. of Non - Zero Scores, f j
The NEW SCORE was obtained from Eqn. II

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STEP 5:
Find an initial indication factor for each type of waste according to Eqn. III.
Yj
sj Sj
fj Fj
for each type of Waste j
Eqn. III
STEP 6:
Multiply the From and To percentages obtained from the WRM values (Table 2.5) with each other to obtain the probability of their occurrences (Pj). To reflect that the existence of each type of waste can affect others and also be affected by others, multiply Yj by Pj to obtain the final waste indication factor:
Y jfinal Y j Pj
Eqn. IV
Then finally rank the type of waste in descending order.
2.4
2.4.1
The Value Stream

General
Lean means eliminating wastes from a manufacturing system. The problem arises in how a manufacturing facility becomes lean. There are five steps to becoming lean (Womack & Jones, 1996): 1. Define the value 2. Identify the value stream 3. Flow the product 4. Pull 5. Strive for perfection
2.4.2
Defining the Value
The critical starting point for lean thinking is value. Value is the information or product that the customer is willing to pay for and can only be defined by the ultimate customer. The value is defined by the customer and created by the producer. From the customer's standpoint, this is why the producer exists (Womack & Jones, 1996). Many producers only want to make what they are already making and the customers will often settle for what they are offered. Producers do not see what the customer or consumer really wants. When the customer no longer accepts what they are given, producers tend to use techniques such as lowering pricing or offering a variation of the same in order to entice buyers to purchase their product. The first step in lean thinking is to determine what the value is in terms of the customer.
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2.4.3
Identifying the Value Stream (Value Stream Mapping)

a. The Value Stream
The second step in lean thinking is to identify the value stream. A value stream comprises all of the actions: VA and NVA, required to bringing a product from raw material into the hands of the customer (Duggan, 2002). A value stream map is a tool used to chart the flow of materials and information from the raw material stage, through the factory floor, to the finished product. The purpose of the map is to help identify and eliminate waste in the process. It is a systematic approach that empowers people to plan how and when they will implement the improvements that make it easier to meet customer demand (Tapping, Luyster
& Shuker, 2002). Value stream mapping is a visual representation of the material and
information flow of a particular product family (Tapping, Luyster & Shuker, 2002). Value stream mapping consists of the creation of a current state map and a future state map. b. The Current State Map
It charts the present flow of information and material as a product goes through the manufacturing process. A Present State Map shows work processes as they currently exist. This is vital both to understand the need for change and to understand where opportunities lie. c. The Future State Map
The future state map is a chart that suggests how to create a lean flow. The future state map uses lean manufacturing techniques to reduce or eliminate wastes and minimize non-value added activities. The future state map is used to help make decisions and plan future process improvement projects. d. Benefits of Value Stream Mapping
Value stream mapping has many benefits Mapping will help visualize the entire production of a product at a plant level, not just single process level. It is important to be able to understand the entire flow of a product at a plant level to best understand what to fix. A particular process may appear to be a problem, but when looking at the entire manufacturing process it may not be a problem at all. Value stream map will help identify the source of the real problems. Value stream maps will help show wastes and more importantly help identify the sources of waste.
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2.4.4
Flow the Product
Flow is the progressive achievement of tasks along the value stream so that once started, the product proceeds from raw material into the hands of the customer with no stoppages, scrap, or backflows (Womack & Jones, 1996). A product should seamlessly move forward from process to process without having to wait. Value added time to the product needs to be maximized and non-value added time minimized. In order to accomplish this, the product must continually be undergoing processing until finished. Efforts need to be directed at eliminating all impediments to continuous flow.
2.4.5
Pull
Pull is the concept of letting the customer pull the product from you as needed rather then
pushing products onto the customer (Womack & Jones, 1996). Pull is only making what the customer wants and only when the customer wants it. There is no forecasting or stocking. The idea is that nothing is made until it is needed, and then made as quickly as possible. Pull is created by having the ability to design, schedule, and make exactly what the customer desires when the customer wants it.
2.4.6
Strive for Perfection
There is no end to the ability to reduce costs, scrap, mistakes, space, etc. Perfection is an
unachievable goal. Therefore, there is always room for more improvement. Lean is always working towards improvement.
2.5
Waste Removal Inside Value Streams
As the focus of the value stream includes the complete value adding (and non-value adding) process, from conception of requirement back through to raw material source and back again to the consumers receipt of product, there is a clear need to extend this internal waste removal to the complete supply chain. However, there are difficulties in doing this. These include lack of visibility along the value stream and lack of the tools appropriate to creating this visibility. This paper aims to help researchers and practitioners remedy such deficiencies. The waste terminology described above has been drawn from a manufacturing environment, specifically from the automotive industry, and from a Japanese perspective. As a result some translation of the general terminology will be required to adapt it to a particular part of the value stream and to particular industries in non-Japanese settings. Consequently, a contingency approach is required to some extent. This would include the application by P.
16
Hines (Hines, 1997) of the kyoryoku kai (supplier association) to a range of UK-based industry sectors and the introduction by Jones (Womack, James, Jones, Daniel, 1996) of the Toyota production system philosophy to a warehouse environment. Jones has shown that the seven wastes required rewording to fit an after-market distribution setting. He therefore retitled the seven wastes as: 1. 2. 3. 4. 5. 6. 7. faster-than-necessary pace; waiting; conveyance; processing; excess stock; unnecessary motion; and correction of mistakes.
2.6
2.6.1
The Seven Value Stream Mapping Tools

Typology
The typology of the seven new tools is presented in terms of the seven wastes already described. In addition, the delineating of the overall combined value stream structure will be useful and will also be combined as shown in the left-hand column in Table 2.11. Thus, in order to make improvements in the supply chain it is suggested here that at least an outline understanding of the particular wastes to be reduced must be gained before any mapping activity takes place. Until now, however, there has been no decision support mechanism to help choose the most appropriate tool or tools to use (Hines and Rich, 1997).
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Table 2.11 - The Seven Stream Mapping Tools Mapping Tool Wastes / Structure Process Activity Mapping L H H H M H L M H L H L H M H M M L H L M L Supply Chain Response Matrix M H L Production Variety Funnel Quality Filter Mapping L Demand Amplificati on Mapping M M Decision Point Analysis M M L Physical Structure (a) Volume (b) Value
Overproduction Time Waiting Transport Inappropriate Processing Unnecessary Inventory Unnecessary Motion Product Defects
Overall L L Structure Notes: H = High correlation and usefulness M = Medium correlation and usefulness L = Low correlation and usefulness
The tools themselves are drawn from a variety of origins as show in Table 2.12. According to Peter Hines and Nick Rich (Hines and Rich, 1997) the tools are generally from specific functional ghettos and so the full range of tools will not be familiar to many researchers, although specific tools may be well-known to individual readers. Each of these is reviewed in turn before a discussion is undertaken of how they can be selected for use.
Table 2.12 - Origins of the Seven Value Stream Mapping Tools
Mapping tool (1) (2) (3) (4) (5) (6) (7)
Origin of Mapping Tool Industrial Engineering Time Compression/Logistics Operations Management New Tool Systems Dynamics Efficient Consumer response/Logistics New Tool
Process Activity Mapping Supply Chain response Production Variety Funnel Quality Filter Mapping Demand Amplification Mapping Decision Point Analysis Physical Structure Mapping
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2.6.2
Process Activity Mapping
As noted above, process activity mapping has its origins in industrial engineering. Industrial engineering comprises a group of techniques that can be used to eliminate from the workplace waste, inconsistencies, and irrationalities, and provide high-quality goods and services easily, quickly, and inexpensively. The technique is known by a number of names in this context, although process analysis is the most common. There are five stages to this general approach: 1. the study of the flow of processes; 2. the identification of waste; 3. a consideration of whether the process can be rearranged in a more efficient sequence; 4. a consideration of a better flow pattern, involving different flow layout or transport routeing; and 5. a consideration of whether everything that is being done at each stage is really necessary and what would happen if superfluous tasks were removed Process activity mapping involves the following simple steps: 1. First a preliminary analysis of the process is undertaken, followed by the detailed recording of all the items required in each process. The result of this is a map of the process under consideration. 2. The machine or area used for each of these activities is recorded, together with the distance moved, time taken, and number of people involved. 3. A simple flow chart of the types of activity being undertaken at any one time can then be made. 4. Next, the total distance moved, time taken and people involved can be calculated and recorded. The completed diagram (Figure 2.2) can then be used as the basis for further analysis and subsequent improvement. Often this is achieved through the use of techniques such as the 5W1H (asking: Why does an activity occur? Who does it? On which machine? Where? When? And How?).
Figure 2.2 - Example of Process Activity Mapping
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The base of this approach is therefore to try to eliminate activities that are unnecessary, simplify others, combine yet others, and seeks sequence changes that will reduce waste. Various contingent improvement approaches can be mapped similarly before the best approach is selected for implementation.
2.6.3
Supply Chain Response Matrix
The origin of the second tool is the time compression and logistics movement and goes under a variety of names. This mapping approach, seeks to portray in a simple diagram the critical lead-time constraints for a particular process. In this case it is the cumulative lead time in a Manufacturing and Distribution Company, its suppliers and its downstream retailer.
2.6.4
Production Variety Funnel
This approach originates in the operations management area. A similar method is IVAT analysis which views internal operations in companies as consisting of activities that conform to I, V, A or T shapes: I plants consist of unidirectional, unvarying production of multiple identical items such as a chemical plant. V plants consist of a limited number of raw materials processed into a wide variety of finished products in a generally diverging pattern. V plants are typical in textiles and metal fabrication industries. A plants, in contrast, have many raw materials and a limited range of finished products with different streams of raw materials using different facilities; such plants are typical in the aerospace industry or in other major assembly industries. T plants have a wide combination of products from a restricted number of components made into semi-processed parts held ready for a wide range of customerdemanded final versions; this type of site is typical in the electronics and household appliance industries. Such a delineation using the production variety funnel allows the mapper to understand how the firm or the supply chain operates and the accompanying complexity that has to be managed. In addition, such a mapping process helps potential research clients to understand the similarities and differences between their industry and another that may have been more widely researched. The approach can be useful in helping to decide where to target inventory reduction and making changes to the processing of products. It is also useful in gaining an overview of the company or supply chain being studied.
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2.6.5
Quality Filter Mapping
The quality filter mapping approach is a new tool designed to identify where quality problems exist in the supply chain. The resulting map itself shows where three different types of quality defect occur in the supply chain: (1) The first of these is the product defect. Product defect are defined here as defects in goods produced that are not caught by in-line or end-of-line inspections and are therefore passed on to customers. (2) The second type of quality defect is what may be termed the service defect. Service defects are problems given to a customer that are not directly related to the goods themselves, but rather are results of the accompanying level of service. The most important of these service defects are inappropriate delivery (late or early), together with incorrect paper work or documentation. In other words, such defects include any problems that customers experience which are not concerned with production faults. (3) The third type of defect is internal scrap. Internal scrap refers to defects produced in a company that have been caught by in-line or end-of-line inspection. The in-line inspection methods will vary and can consist of traditional product inspection, statistical process control or through poke-yoke devices. Each of these three types of defects is then mapped latitudinally along the supply chain. In This approach has clear advantages in identifying where defects are occurring and hence in identifying problems, inefficiencies and wasted effort. This information can then be used for subsequent improvement activity.
2.6.6
Demand Amplification Mapping
Demand amplification mapping has its roots in the systems dynamics work of Forrester and Burbidge (Forrester, 1958; Burbidge, 1984). What is now known as the Forrester Effect was first described in a Harvard Business Review article in 1958 by Forrester. This effect is linked primarily to delays and poor decision making concerning information and material flow. The Burbidge effect is linked to the law of industrial dynamics which states that: If demand is transmitted along a series of inventories using stock control ordering, then the amplification of demand variation will increase with each transfer. As a result, in unmodified supply chains generally excess inventory, production, labour, and capacity are found. It is then quite likely that on many day-to-day occasions manufacturers will be unable to satisfy retail demand even though on average they are able to produce more goods than are being sold. In a supply chain setting, manufacturers therefore have sought to
21
hold in some cases sizeable stocks to avoid such problems. This simple analytic tool can be used to show how demand changes along the supply chain in varying time buckets. This information then can be used as the basis for decision making and further analysis to try to redesign the value stream configuration, manage the fluctuations, and reduce the fluctuation or to set up dual-mode solutions where regular demand can be managed in one way and exceptional or promotional demand can be managed in a separate way.
2.6.7
Decision Point Analysis
Decision point analysis is of particular use for T plants (refer to Section 2.6.4) or for supply chains that exhibit similar features, although it may be used in other industries. The decision point is the point in the supply chain where actual demand pull gives way to forecast-driven push. In other words, it is that point at which products stop being made according to actual demand and instead are made against forecasts alone. Gaining an understanding of where this point lies is useful for two reasons: (1) In terms of the present, with this knowledge it is possible to assess the processes that operate both downstream and upstream from this point. The purpose of this is to ensure that they are aligned with the relevant pull or push philosophy. (2) From the long-term perspective, it is possible to design various what if scenarios to view the operation of the value stream if the decision point is moved. This may allow for a better design of the value stream itself.
2.6.8
Physical Structure
Physical structure mapping is a new tool which has been found to be useful in understanding what a particular supply chain looks like at an overview or industry level. This knowledge is helpful in appreciating what the industry looks like, understanding how it operates and, in particular, in directing attention to areas that may not be receiving sufficient developmental attention.
2.6.9
Using the toolkit
The use of this toolkit at this stage should not be confined to any particular theoretical approach to ultimate implementation. Thus the options can be left open at this stage over whether to adopt a kaizen or business process reengineering approach once the tools have been used. It is the authors belief that the framework does not constrain this choice process.
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2.6.10 Which Tool to Use?

The specific focusing of which tools to use in what circumstances is done using a simplified version of the Value Stream Analysis Tool (VALSAT Table 2.11). The first part of this process is to identify the specific value stream to be reviewed. Second, through a series of preliminary interviews with managers in the value stream, it is necessary to identify the various wastes that exist in the value stream that managers believe can and should be removed (reference should be made to the earlier discussion of the seven wastes). In addition, it is important to gain the views of these managers on the importance of understanding the complete industry structure, irrespective of which wastes are to be removed. This selection of tools is achieved by giving the interviewees a written overview of each of the wastes as well as an explanation of what is meant by the industry structure. At this stage, if necessary, descriptions of the seven wastes may be reworded in terms more appropriate to the industry under consideration. For instance, in the health-care industry the concept of overproduction may not have great value. However, to call this potential waste doing things too early instead may be more useful in getting the interviewees to relate the concept to their own situations. Once this has been done, the reworded seven wastes and the account of the overall structure are recorded as row nine in the VALSAT in Table 2.11. After this mapping process is complete, the researcher will be able to use each individual tool with its associated benefits to undertake more detailed analysis of the value stream with a view to its improvement. The various mapping tools described will help with whichever approach is chosen. In general, the removal of non-value adding waste is best done using a kaizen approach, whereas the removal of necessary but non-value adding waste requires a more revolutionary strategy wherein the application of business process re-engineering may be more appropriate.
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2.7
Manufacturing Process Flow
Lobels Breads bread production process can be described as product flow, where the machines are arranged according to the manufacturing steps required for that particular product. Figure 2.3 below shows a typical arrangement showing machine centres (M/Ci). M/C1 M/C2 M/C3 M/C4 M/C5
Figure 2.3 - Product Flow Layout
2.8
Conclusion
This chapter has outlined typology and decision-making process for the mapping of the value stream or supply chain. This general process is grounded in a contingency approach as it allows any researcher venturing into this field to choose the most appropriate methods for the particular industry, people and types of problem that exist. The typology is based around the identification of the particular wastes the researcher/company/value stream members wish to reduce or eliminate. As such, it allows for an extension of the effective internal waste reduction philosophy pioneered by leading companies such as Toyota. The waste ranking algorithm outlined in Section 2.4.14 forms the basis of the ranking presented in the next chapter (Chapter Three:) and allows the selection of wastes critical for minimization or possible elimination.
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CHAPTER THREE: COMPANY AUDIT

3.0 Introduction
The Lobel's bread production line is a dedicated flow line with a greater part being automated or semi-automated. The various operations needed to produce a loaf of bread are shown on the Current State Map (CSM) shown in Appendix D (Page 52). Since the process flow is almost a continuous one, cycle time has been shown as takt time in minutes per the 440 units of bread yielded from one mix done from the Mixer. The timeline at the bottom of the CSM show the VA and the NVA process times from entry of raw materials into the line to the end product. The state maps have been drawn on the assumption that the plant operates twentyfour hours, with three shifts of eight hours each. A waste assessment model was developed to rank the wastes in the Lobel's plant. The proposed waste assessment model commences by articulating the overlapping areas of the seven wastes. A criterion was established to quantify the strength of direct relationships, thus leading to the creation of a waste matrix that classifies the strength of relationships using a scale ranging from very weak to very strong. Next, an assessment questionnaire was introduced. Within the context of the bakery, it was possible to rank waste by combining the relationship matrix and the results of the assessment questionnaire.
3.1
Overview
Current State Map) shows the movement of material from
The CSM (Appendix D:
suppliers to the retailers. The second tier suppliers are not represented here. Most of the major raw materials are usually stored in the warehouse at another location about six kilometres away from the Lobel's plant before being moved to the online storage (called the Cage) at the factory. After this material is converted into bread, the product would be temporarily stored at Dispatch for shipping to the customers (Lobel's shops and retailers) for sale.
3.2
Raw Materials
The major raw materials in Lobel's bread manufacture are the following: (1) flour, (2) water, (3) yeast, (4) premix (a.k.a. emulsion), and (5) improvers. At the time of going to print the current state was such that flour, delivered in 50-kg bags is fed into the Mixer by means of a hopper and a screw conveyor. Water is piped and cold (required 0 5oC). Yeast used is fresh and needs to be conserved at the same temperatures as water to suppress its activity before
25
production. Emulsion is prepared inside the plant, as well as improvers. These would be mixed together in the mixer to produce dough.
3.3
The Major Products
As mentioned earlier (Section 1.5), the study focuses solely on bread Production Line 1 of the Lobel's Bread factory. This modular product comprises an average of almost 90% of the products that the bakery produces (see Figure 3.1) as compared to other products. The figures below show the PQ analysis of the bread units (by turnover value) produced for the four months to May 2007.
Lobel's Bread Turnovers (% ) by Product Category - Year 2007
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Bread Buns Cakes Product Category Rolls Others Feb Mar Apr May Average
Figure 3.1 - PQ Analysis of Lobel's Bread's Products by Category
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60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

Standard w hite loaf Farmhouse Super w hite Standard loaf w hole w heat Kitka bread Standard half-loaf Whole w heat halfloaf
Figure 3.2 - Bread Category PQ Analysis
Among the bread products the standard white loaf is predominant. However, mapping the value streams of the farmhouse loaf, the super-white loaf, and the standard whole wheat loaf would give a similar trend of events since they require almost the same manufacturing process as the standard white loaf.
3.4
3.4.1
Analysis of the CSM

Overview
The CSM is shown at the back of this document (Appendix D) and the VSM symbols used in the drafting of the CSM are defined in Appendix A. The map shows the movement of the product from the suppliers supplying raw materials, through stores and inventory control, via the production processes until its packed and loaded into trucks for distribution to retailers. The Process Activity Mapping data represented by Appendix C played a crucial role in coming up with the CSM, especially the timeline, process flow, takt, number of employees per process stage, and the process steps groupings. The analysis of the CSM may be grouped into four categories: raw material supply, stores and inventory, production, and loading and distribution. The production requirements are based on market demand that the sales people give to Production ideally once everyday.
3.4.2
Raw Material Supply
The raw materials outlined in Section 3.2 above come from different suppliers as per the orders placed by the Stores and Procurement department. Ideally, these would have had due communication of production requirements from Production Control as shown by the
27
communication lines on the CSM. Hence the responsibility for making sure that production raw materials are available for production is carried by Stores and Procurement. Some of the major raw materials like yeast and flour were supplied regularly according to arrangements with suppliers and excess over and above the capacity of the Cage and production requirements would be stored at the warehouse a distance from the factory.
3.4.3
Stores and Inventory
At the time when this study was conducted, there was no standard inventory control system for Production to use. However, RM stocks were monitored through a dual manual system carried out by Stores and Procurement and a duplication of the same input into the SAGE system by Accounts. The CSM only shows the temporary storage at the factory and not the warehouse. It is assumed that at the start of a production shift, Stores would be having enough stocks to last that shifts requirements.
3.4.4
Production
The bread production process has been segregated into basic seven stages: mix, divide-round, proof-mould, proof-back, cool, slice-pack, and loading. The timeline shows that the process consumes about four-and-half hours (274.33minutes) between transferring RM from the Cage and the time when a delivery truck has been loaded and ready for distribution, and comprises of about three and five-sixths hours VA time and three-quarter hours NVA time. Cooling time doesnt change much irrespective of the units released onto the floor for cooling. Unnecessary online inventory often appears during cooling of bread or when there happens to be default dough waiting to be either thrown away or recycled.
3.4.5
Loading and Distribution
This process consumes less than ten minutes of work in the production line if done under the standard work conditions. The ideal method in use required seven employees, bread-laden crates piled in tens, and assuming the workforce has been trained in how to handle the crates. There was no agreed number of bread units that the Dispatch department were supposed from Production for distribution.
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3.5
3.5.1
Waste Assessment and Ranking

Overview
The implementation of the waste assessment model passed through several reviews and improvements. The full discussion on waste assessment has been outlined in Appendix B (Page 45). The effect of each type of waste on the other six types was addressed. This was a complex task that required a lot of team work and consultation with the production department as each waste is interrelated to the others. Each type of waste was abbreviated using its initial. The waste assessment algorithm steps are applied on the assessment results as shown in 3.5.2 below.
3.5.2
STEP 1:
Implementing the Waste Ranking Algorithm (WRA)

(i) (ii) (iii) Answer the WAQ (the completed WAQ is shown in Table B7 Page 45 Counting the From and To questions of the same type of wastes. Calculating the final score of existing waste types. No. of Questions (Ni) 1 2 3 3 3 4 1 3 4 1 4 1
Table 3.1 - Number of Grouped Assessment Questions WRA Step 1 (ii)
i 1 2 3 4 5 6 7 8 9 10 11 12
Type of Question From overproduction From inventory From defects From motion From transportation From process From waiting To defects To motion To transportation To waiting To Inventory
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Table 3.2 - Original Weights as Obtained from the WRM (Page 49) WRA Step 1 (iii)
Qn Type Category (1): Man To Motion From Motion From Defects From Motion From Motion Category (2): Material From Waiting To Waiting From Transportation From Inventory From Inventory From Defects To Inventory To Waiting To Defects From Defects Category (3): Machine From Process From Waiting From Process From Transportation From Transportation From Process Category (4): Method To Transportation From Motion From Waiting From Motion From Defects From Motion From Overproduction From Process From Defects
Qn # (k) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SCORE
Weighting, W j , k
O 2 0 4 0 0 8 1 2 2 2 4 2 1 8 4 3 8 3 2 2 3 6 0 1 0 4 0 10 3 4 89
I 5 9 5 9 9 0 10 4 10 10 5 10 10 7 5 2 0 2 4 4 2 4 9 10 9 5 9 2 2 5 177
D 6 6 10 6 6 6 4 4 7 7 10 7 4 10 10 6 6 6 4 4 6 6 6 4 6 10 6 8 6 10 197
M 10 10 6 10 10 8 0 2 5 5 6 5 0 6 6 5 8 5 2 2 5 0 10 0 10 6 10 2 5 6 165
T 2 0 6 0 0 4 0 10 4 4 6 4 0 9 6 0 4 0 10 10 0 10 0 0 0 6 0 6 0 6 107
P 5 3 0 3 3 6 0 0 0 0 0 0 0 6 0 10 6 10 0 0 10 0 3 0 3 0 3 0 10 0 81
W 0 8 6 8 8 10 10 4 0 0 6 0 10 4 6 6 10 6 4 4 6 0 8 10 8 6 8 8 6 6 176
30
STEP 2: STEP 3:
(i) (ii)
Dividing each weight (Wj,k) by corresponding number of questions (Ni) Summing values under each type of waste (or column) to get a score
Finding frequency (Fj) of cells that were assigned a weight NOT Zero
Weighting, W j , k N i
Table 3.3 - Division of Table 3.2 by Ni Values WRA Steps 2 to 3
Qn Type Category (1): Man To Motion From Motion From Defects From Motion From Motion Category (2): Material From Waiting To Waiting From Transportation From Inventory From Inventory From Defects To Inventory To Waiting To Defects From Defects Category (3): Machine From Process From Waiting From Process From Transportation From Transportation From Process Category (4): Method To Transportation From Motion From Waiting From Motion From Defects From Motion From Overproduction From Process From Defects
Qn # (k) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
O 0.50 0.00 1.33 0.00 0.00 2.00 1.00 0.67 1.00 1.00 1.33 2.00 1.00 2.67 1.33 0.75 2.00 0.75 0.67 0.67 0.75 6.00 0.00 1.00 0.00 1.33 0.00 10.00 0.75 1.33 41.83 24
I 1.25 3.00 1.67 3.00 3.00 0.00 10.00 1.33 5.00 5.00 1.67 10.00 10.00 2.33 1.67 0.50 0.00 0.50 1.33 1.33 0.50 4.00 3.00 10.00 3.00 1.67 3.00 2.00 0.50 1.67 91.92 28
D 1.50 2.00 3.33 2.00 2.00 1.50 4.00 1.33 3.50 3.50 3.33 7.00 4.00 3.33 3.33 1.50 1.50 1.50 1.33 1.33 1.50 6.00 2.00 4.00 2.00 3.33 2.00 8.00 1.50 3.33 86.50 30
M 2.50 3.33 2.00 3.33 3.33 2.00 0.00 0.67 2.50 2.50 2.00 5.00 0.00 2.00 2.00 1.25 2.00 1.25 0.67 0.67 1.25 0.00 3.33 0.00 3.33 2.00 3.33 2.00 1.25 2.00 57.50 26
T 0.50 0.00 2.00 0.00 0.00 1.00 0.00 3.33 2.00 2.00 2.00 4.00 0.00 3.00 2.00 0.00 1.00 0.00 3.33 3.33 0.00 10.00 0.00 0.00 0.00 2.00 0.00 6.00 0.00 2.00 49.50 17
P 1.25 1.00 0.00 1.00 1.00 1.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.00 0.00 2.50 1.50 2.50 0.00 0.00 2.50 0.00 1.00 0.00 1.00 0.00 1.00 0.00 2.50 0.00 22.25 14
W 0.00 2.67 3.00 2.67 2.67 2.50 10.00 1.33 0.00 0.00 2.00 0.00 10.00 1.33 2.00 1.50 2.50 1.50 1.33 1.33 1.50 0.00 2.67 10.00 2.67 2.00 2.67 8.00 1.50 2.00 81.33 25
FINAL SCORE, S j
Freq. of Non - Zero Scores, F j
The Final Score row was compiled using Eqn. I (Page 12)
31
STEP 4:
(i) (ii) (iii) (iv)
Answering assessment questionnaire to obtain weight factor wk Multiplying the row values obtained in STEP 3 by wk Summing values under each type of waste to obtain the new score Finding the new frequency (fj) of non-zero terms
Weighting, w k W j , k N i
Table 3.4 - Multiplication of Table 3.3 by Weight Factor (wk) WRA Step 4
Qn Type
Ans.
wk
O 0.25 0.00 0.00 0.00 0.00 0.00 1.00 0.33 0.50 0.50 0.67 1.00 0.50 0.00 0.67 0.00 0.00 0.38 0.33 0.33 0.38 6.00 0.00 0.00 0.00 0.00 0.00 5.00 0.38 0.00 18.21 16
I 0.63 1.50 0.00 1.50 0.00 0.00 10.00 0.67 2.50 2.50 0.83 5.00 5.00 0.00 0.83 0.00 0.00 0.25 0.67 0.67 0.25 4.00 1.50 0.00 3.00 0.00 1.50 1.00 0.25 0.00 44.04 21
D 0.75 1.00 0.00 1.00 0.00 0.00 4.00 0.67 1.75 1.75 1.67 3.50 2.00 0.00 1.67 0.00 0.00 0.75 0.67 0.67 0.75 6.00 1.00 0.00 2.00 0.00 1.00 4.00 0.75 0.00 37.33 21
M 1.25 1.67 0.00 1.67 0.00 0.00 0.00 0.33 1.25 1.25 1.00 2.50 0.00 0.00 1.00 0.00 0.00 0.63 0.33 0.33 0.63 0.00 1.67 0.00 3.33 0.00 1.67 1.00 0.63 0.00 22.13 19
T 0.25 0.00 0.00 0.00 0.00 0.00 0.00 1.67 1.00 1.00 1.00 2.00 0.00 0.00 1.00 0.00 0.00 0.00 1.67 1.67 0.00 10.00 0.00 0.00 0.00 0.00 0.00 3.00 0.00 0.00 24.25 11
P 0.63 0.50 0.00 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.25 0.00 0.00 1.25 0.00 0.50 0.00 1.00 0.00 0.50 0.00 1.25 0.00 7.38 9
W 0.00 1.33 0.00 1.33 0.00 0.00 10.00 0.67 0.00 0.00 1.00 0.00 5.00 0.00 1.00 0.00 0.00 0.75 0.67 0.67 0.75 0.00 1.33 0.00 2.67 0.00 1.33 4.00 0.75 0.00 33.25 16
Category (1): Man 1 To Motion 2 From Motion 3 From Defects 4 From Motion 5 From Motion Category (2): Material 6 From Waiting 7 To Waiting 8 From Transportation 9 From Inventory 10 From Inventory 11 From Defects 12 To Inventory 13 To Waiting 14 To Defects 15 From Defects Category (3): Machine 16 From Process 17 From Waiting 18 From Process 19 From Transportation 20 From Transportation 21 From Process Category (4): Method 22 To Transportation 23 From Motion 24 From Waiting 25 From Motion 26 From Defects 27 From Motion 28 From Overproduction 29 From Process 30 From Defects
b b c b c c a b b b b b b c b c c b b b b
0.5 0.5 0 0.5 0 0 1 0.5 0.5 0.5 0.5 0.5 0.5 0 0.5 0 0 0.5 0.5 0.5 0.5
a 1 b 0.5 c 0 a 1 c 0 b 0.5 b 0.5 b 0.5 c 0 NEW SCORE, s j
Freq. of Non - Zero Scores, f j
The NEW SCORE was obtained from Eqn. II (Page 13)

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STEP 5:
Finding an initial indication factor (Yj) for each type of waste

O I 91.92 41.04 28 21 0.3349 D 86.50 37.33 30 21 0.3021 M 57.50 22.13 26 19 0.2813 T 49.50 24.25 17 11 0.3170 P 22.25 7.38 14 9 0.2132 W 81.33 33.25 25 16 0.2617
Table 3.5 - Initial Indication Factor Yj WRA Step 5
Sj
sj Fj fj Yj
41.83 18.21 24 16 0.2902
Yj is given by Eqn.III (Page 14) (i) (ii) (iii) Obtaining the probability of waste type occurrences (Pj). Multiplying Yj by Pj to obtain the final waste factor (Yjfinal) Ranking the type of waste in descending order.
STEP 6:
Table 3.6 - Final Indication Factor and Ranking (Yjfinal) WRA Step 6
O
Initial Indication Factor (Y j ) Pj Factor Final Indication Factor (Y jfinal )
Final Indication Factor ( % )
I 0.3349 60.45 20.25 19.7% 2
D 0.3021 85.61 25.86 25.1% 1
M 0.2813 55.27 15.55 15.1% 3
T 0.3170 34.57 10.96 10.6% 6
P 0.2132 21.29 4.54 4.4% 7
W 0.2617 53.77 14.07 13.7% 4
0.2902 40.54 11.76 11.4% 5
RANK
Yjfinal is given by Eqn. IV (Page 14)
3.5.3 Summary of the WRA

The answers and analysis of the assessment questions for the company are presented in Table 3.5. Table 3.6 summarises the assessment analysis and quantifies the strengths of the wastes relative to each other in order to come up with a ranking. Defects (D) waste ranks first and inappropriate processing (P) comes last as shown in the last row of Table 3.6. Figure 3.3 represents the ranking in graphical form.
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Final Indication Factor (%)
25.1 19.7 15.1 11.4 10.6 4.4 13.7
Figure 3.3 - Waste Ranking
Special Note on Defect Wastes:
Of all the declared breakages (defects) during the period
under review more than 80%emanated from the loading dock. This shows an area that requires special attention (analysis in shown in the table below).
Table 3.7 - Declared Breakages (Feb-May 2007)
Breakages Value From Feb Mar Apr May TOTAL % of Grand Total Slicing 13.35% Z$4,881,379 Z$12,448,429 Z$11,855,269 Z$23,976,854 Z$53,161,931 Loading 86.65% Z$6,425,650 Z$58,978,732 Z$100,272,558 Z$179,367,288 Z$345,044,228 TOTAL Z$11,307,029 Z$71,427,161 Z$112,127,827 Z$203,344,142 Z$398,206,159
3.6
Conclusion
The current state map explained in this chapter (Appendix D) has been used as a tool for improvements to be shown on the future state map (Chapter Four:). The major wastes as outlined before (shown shaded in Table 3.6) have been proved to be predominant at the company. Although the analysis has been limited to bread production Line 1, a similar analysis on the unfinished Line 2, may reveal an almost similar trend of events.
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CHAPTER FOUR: RESULTS

4.0 Introduction
The improved state of events emanating from the CSM shown in the previous chapter is shown on the diagram of the future state map (FSM) in Appendix E (Page 53). The researcher has decided to centralize this discussion on the first three highly ranked wastes. The waste ranking algorithm has shown that the wastes that really need to be minimized are as shown in Table 4.1 below displayed in increasing magnitude of the rank indication factor.
4.1
Results from Waste Ranking

Type of Waste Defects Rank 1 2 3 % of Total Wastes 25.1 19.7 15.1
Table 4.1 - The Major Three Wastes
Unnecessary Inventory Motion Waste
4.2
Overall Results of the Future State Map
A future state map (FSM) was created by implementing lean manufacturing techniques. The FSM is shown in Appendix E and the symbols used in the drafting have been explained in Appendix A (Page 41). Comparing the two maps shows a 16% increase in throughput and a more balanced floe line. The comparison is shown in Table 4.2 below.
Table 4.2 - CSM and FSM Comparison
CURRENT STATE MAP FUTURE STATE MAP NVA Time 43.2 min. 10.56 min. VA Time 231.13 min. 193.98 min. NVA 43.20 29.55 % of Time 100 18.7% 100 15.2% VA 231.13 193.98
Increased Throughput 231.13 193.98 100 16.0% 231.13 9.90 min. 10.56 min. 3.79 min. 0.97 min.
Average Takt Standard Deviation on Takt
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4.3
4.3.1
Waste Reduction Methods

Defects
The state maps helped visualize the whole process and pinpoint areas where defects were likely to emanate from. Of importance is the cooling stage, which in the current state map sort of created a bottleneck. This implied that bread units would then be taken before they are ready for slicing, leading to breakages and poorly handled products to be relegated to defects. If proper training on handling would be given to the final product handlers e.g. how to hold a loaf during de-panning or how to hold packed crates properly, defect waste could be reduced drastically. Most of the defects in bread production come from breakages where loading breakages contribute more than eighty percent of the total (see Breakages in Table 3.7 on Page 34). Defects caused by inappropriate processing sprout up once in a while. Considering the FSM and re-answering the WAQ would show that defect waste are reduced by a probable 20%.
4.3.2
Unnecessary Inventory
Ranked the second major waste in the company, inventory waste is caused by defects and poor planning in transportation, motion, and unbalanced process flow line. Line balancing techniques have been used in preparing the FSM and the standard deviation was improved by more than 70%. This may be used as a measure of eliminating waste caused by time delays. Also the introduction of a FIFO lane between cooling and packing ensures that no unnecessary product units would be kept waiting: the first to be cooled would be taken away for slicing and packing immediately when they are dry.
4.3.3
Motion Waste
The breakages shown to occur on the slicing machine and during loading (13.35 % and 86.65%, respectively) indicate that weak motion techniques were being used. This is because the wastes occur most on the manual process of loading and less so on the semi-automated process of slicing and packing. Also when referring to the Process Activity Mapping diagram and the state maps, we may that discover that the Cage (on-line storage) need to be considered for redesigning. The obvious suggestion would be to change the entrance to the Cage so that it is in easy access from the mixing area. Linking Production, Sales & Marketing, and Stores & Procurement departments together in the ERP would ensure electronic communication thus avoiding unnecessary motion by supervisors to gather and release production information. Then the loading of trucks should be considered for technical
36
capitalisation. The FSM suggests that instead of the Slicing department pushing products to dispatch for distribution let the Despatch guys pull the bread in batches that are economic to handle. This would reduce too much movement and fatigue, which contributes much to larking and to the consequent motion waste.
4.4
Conclusion
Further assessment of the wastes and the waste relationships by answering the WAQ would reveal a dramatic reduction in the three wastes discussed in 4.3 above. The reassigned wastes revealed that the theoretical waste reductions would bee as follows: Defects20.03%; Unnecessary Inventory18.70%; and Motion waste37.11%. Although the results derived from the waste assessment and the value stream maps have shown the importance of knowing the value adding processes in a process, much of the success remains in the implementation and continuous process improvement. Major discussions on this and other concerns are outlined in the next chapter.
37
CHAPTER FIVE: DISCUSSIONS AND CONCLUSIONS

5.0 Introduction
The purpose of this study was to reduce wastes and increase throughput of the standard loaf through the use of value stream mapping. The wastes were ranked in order to concentrate on reducing the major wastes only due to time limitations. Then a current state map was created and analyzed for potential areas of improvement. Lean manufacturing techniques were used to create a future state map that would reduce the major wastes and increase throughput. The future state map suggests that a modest average 25% wastes reduction could be achieved for the three major wastes discussed. In addition, a 16% increase in throughput could be realized. Value stream mapping has proven to be an excellent tool to analyze a manufacturing process. The current state map helped identify areas of potential improvement while the future state map suggested ways to reduce wastes and increase throughput.
5.1
Conclusions
The researcher concludes that value stream mapping is an effective tool to suggest ways to reduce wastes of lean manufacturing and hence increase the throughput of a manufacturing process. The CSM laid out the manufacturing process while the timeline comparing value added and non-value added times clearly showed large amounts of wastes. Many times process improvement efforts will focus on reducing set up times or increasing machine and operator efficiencies. The CSM shows that most of the waste in the process is in the nonvalue added times. Large reductions in lead-times can be achieved just by reducing time that the product waits in queue.
5.2
Recommendations
The researcher recommends that results from this study be used as a guide in determining future process improvement actions. Value stream mapping is a tool to help pinpoint areas of potential improvement and suggest ways to better them. The maps created by value stream mapping only focused on one product line and do not take into account other product mixes. Consideration must be taken into account for other products that are produced in the plant requiring the same resources. Other product families that are produced that use the same resources include most of the bread products other than the standard loaf that has been discussed. These products are similar in the fact that they are produced using much of the same equipment and manufactured in a similar fashion. Dramatic wastes reduction and
38
increased throughput can be achieved similar to the results seen in the standard loaf used in this study. The researcher also recommends mapping other products lines to create a better model of the plant floor. In addition, the map should extend further out into the organization to include customer service and engineering. Further research should be conducted in addition to this study to gain a larger model of the company.
5.3
Limitations of the Study
(1) The research was limited to the manufacturing process of the standard loaf on bread production Line 1 Bulawayo Branch of company Lobel's Bread (Pvt) Ltd. (2) There is a significant cost to complete the changes and implement the new system. (3) There are a limited number of people and resources that can be dedicated to the implementation and training.
(4)
Manufacturing space is very limited. The current facility has many structural walls and features that would be too difficult or expensive to move; changes must be made within the limits of the facility itself.
(5)
The time that was available to the researcher for carrying out this study was limited due to other commitments.
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REFERENCES
1.
Brandon, Lee, (2001), Value Stream Mapping, Spring 2001 IMfgE at Widuta State University, Paper #1 Burbidge, J. (1984), Automated Production Control With A Simulation Capability, Proceedings IFIP Conference Working Group 5-7, Copenhagen. Duggan, Kevin. (2002), Creating Mixed Model Value Streams, New York, Productivity Inc. Forrester, J. (July August 1958), Industrial Dynamics: A Major Breakthrough For Decision Makers, Harvard Business Review, pp. 37-66. Hines, P., Rich, N. (1997), The Seven Value Stream Mapping Tools, International Journal of Operations and Production Management, pp 17 Hines, P., Rich, N. (1997), The Seven Value Stream Mapping Tools, Lean Enterprise Research Centre, Cardiff Business School, Cardiff, UK, pp 46 64 Hines, P., Rich, N. and Hittmeyer, M. (1996), Competing Against Ignorance: Advantage Through Knowledge, International Journal of Physical Distribution & Logistics Management. James, R. (6 7 July 1995), Promotions update, Supply Chain Development Programme I, Workshop #8, Britvic Soft Drinks Limited, Lutterworth. Rawabdab, Ibrahim A. (2005), A Model for the Assessment of Wastes in Companies, International Journal of Operations and Production Management, Volume 25, Issue 8 2005 Research Paper Tapping, D., Luyster, T., & Shuker, T. (2002), Value Stream Management, New York, Productivity Inc. Womack, James, Jones, Daniel. (1996). Lean Thinking, New York, Simon & Schuster
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
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APPENDICES
Appendix A:
NB:
Symbols for Value Stream Mapping
Value Stream Mapping symbols are not standardized and there may be many variations. The most common symbols are presented here. It may also be necessary to create more symbols for specialized applications.
Table A1 - VSM Process Mapping Tools
- Represents the Supplier when in the upper left, the usual starting point for material flow. - The Customer is represented when placed in the upper right, the usual Customer/Supplier end point for material flow. - This icon is a Process, Operation, Machine, or Department, through which material flows. - Typically, to avoid unwieldy mapping of every single processing step, it represents one department with a continuous, internal fixed flow path. - In the case of assembly with several connected workstations, even if some WIP inventory accumulates between machines (or stations), the entire line would show as a single box. If there are separate operations, where one is disconnected from the next, with inventory between, and batch transfers, then use multiple boxes. This is a process Operation, Department, or Workcenter that other value stream families share. Estimate the number of operators required for the Value Stream being mapped, not the number of operators required for processing all products. This icon goes under other icons that have significant information/data required for analyzing and observing the system. Typical e.g. are: - FACTORY icons: - frequency of shipping during any shift, material handling information, transfer batch size, demand quantity per period, etc. - MANUFACTURING PROCESS icons:- C/T (Cycle Time); Time (in seconds) that elapses between one part coming off the process to the next part coming off; C/O (Changeover Time) - time to switch from producing one product on the process to another; Uptime- percentage time that the machine is available for processing; EPE ("Every Part Every") - a measure of production rate/s; Number of operators - use OPERATOR icon inside process boxes; Number of product variations; Available Capacity; Scrap rate; Transfer batch size (based on process batch size and material transfer rate) This symbol indicates that multiple processes are integrated in a manufacturing workcell. Such cells usually process a limited family of similar products or a single product. Product moves from process step to process step in small batches or single pieces.
Dedicated Process
Shared Process
Data Box
Workcell
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Table A2 -VSM Material Symbols
Inventory
- These icons show inventory between two processes. While mapping the current state, the amount of inventory can be approximated by a quick count, and that amount is noted beneath the triangle. If there is more than one inventory accumulation, use an icon for each. - This icon also represents storage for raw materials and finished goods. This icon represents: - Movement of raw materials from suppliers to the Receiving dock/s of the factory. - Or, the movement of finished goods from the Shipping dock/s of the factory to the customers This icon represents the pushing of material from one process to the next process. Push means that a process produces something regardless of the immediate needs of the downstream process. - This is an inventory supermarket (kanban stockpoint). Like a supermarket, a small inventory is available and one or more downstream customers come to the supermarket to pick out what they need. The upstream workcenter then replenishes stocks as required. - When continuous flow is impractical, and the upstream process must operate in batch mode, a supermarket reduces overproduction and limits total inventory. Supermarkets connect to downstream processes with this "Pull" icon that indicates physical removal. First-In-First-Out inventory. Use this icon when processes are connected with a FIFO system that limits input. An accumulating roller conveyor is an example. Record the maximum possible inventory. This icon represents an inventory hedge (or safety stock) against problems such as downtime, to protect the system against sudden fluctuations in customer orders or system failures. Notice that the icon is closed on all sides. It is intended as a temporary, not a permanent storage of stock; thus; there should be a clearly-stated management policy on when such inventory should be used. Shipments from suppliers or to customers using external transport.
Shipments
Push Arrow
Supermarket
Material Pull
FIFO Lane
Safety Stock
External Shipment
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Table A3 - VSM Information Symbols
Production Control
This box represents a central production scheduling or control department, person or operation. A straight, thin arrow shows general flow of information from memos, reports, or conversation. Frequency and other notes may be relevant. This wiggle arrow represents electronic flow such as electronic data interchange (EDI), the Internet, Intranets, LANs (local area network), WANs (wide area network). You may indicate the frequency of information/data interchange, the type of media used e.g. fax, phone, etc. and the type of data exchanged. This icon triggers production of a pre-defined number of parts. It signals a supplying process to provide parts to a downstream process. This icon represents a card or device that instructs a material handler to transfer parts from a supermarket to the receiving process. The material handler (or operator) goes to the supermarket and withdraws the necessary items. This icon is used whenever the on-hand inventory levels in the supermarket between two processes drops to a trigger or minimum point. When a Triangle Kanban arrives at a supplying process, it signals a changeover and production of a predetermined batch size of the part noted on the Kanban. It is also referred as one-per-batch kanban. A location where kanban signals reside for pickup. Often used with twocard systems to exchange withdrawal and production kanban. This icon represents a pull system that gives instruction to subassembly processes to produce a predetermined type and quantity of product, typically one unit, without using a supermarket. This icon is a tool to batch kanbans in order to level the production volume and mix over a period of time Scheduling using MRP/ERP or other centralized systems. Gathering of information through visual means.
Manual Info
Electronic Info
Production Kanban
Withdrawal Kanban
Signal Kanban
Kanban Post
Sequenced Pull Load Leveling MRP/ERP Go See
Verbal Information
This icon represents verbal or personal information flow.
43
Table A4 - VSM General Symbols
Kaizen Burst
These icons are used to highlight improvement needs and plan kaizen workshops at specific processes that are critical to achieving the Future State Map of the value stream. This icon represents an operator. It shows the number of operators required to process the VSM family at a particular workstation.
Operator
Other useful or potentially useful information. Other The timeline shows value added times (Cycle Times) and non-value added (wait) times. Use this to calculate Lead Time and Total Cycle Time.
Timeline
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Appendix B:
5.3.1 B1
Waste Assessment Model
Developing Waste Relationship Weightings
Table B1 - Explanation of Waste Relationships
OVER-PRODUCTION Over-production consumes and needs large amounts of raw materials stocking and O-I producing more WIP that consume floor space, and are considered as a temporary form of inventory that has no customer (process) that may order it. When Operators are producing more, their concern about the quality of the products will O-D decrease because of the sense that there exist enough raw materials to substitute defects. Over-production leads to non-ergonomic behaviour, which leads to non-standard working O-M methods with a considerable loss of Motion Time. Over-production leads to high Transportation effort to follow the over-flow of materials. O-T When producing more, resources will be reserved for longer times, thus other customers O-W will be Waiting, and larger queues form. INVENTORY WASTE The higher level of raw materials in stores can push workers to work more, so as to I-O increase profitability of the company. Increasing Inventory (RM, WIP, & FG) will increase probability of a product becoming I-D Defected due to lack of concern and unsuitable storing conditions. Increasing Inventory will increase Time for searching, selecting, grasping, moving, and I-M handling. Increasing Inventory sometimes block available aisles, making a production activity more I-T Transportation time consuming. DEFECTS WASTE Over-production behaviour appears in order to overcome the lack of product units due to D-O Defects. Producing Defects that may need to be re-worked means that increased levels of WIP exist D-I in form of Inventory. Producing Defects increases Time of searching, selection, and inspection, not to mention D-M that re-works are created which need higher training skills. Moving the Defective products to re-work station will increase Transportation intensity D-T (back streams) i.e. wasteful Transportation activities. Re-works will reserve work stations so that new products would be Waiting to be D-W processed. MOTION WASTE Non-standardised work methods leads to high amounts of WIP. M-I Lack of training and standardisation means the percentage of Defects increases. M-D When jobs are non-standard, Process Waste will increase due to lack of understanding the M-P available technology capacity. When standards are not set, time will be consumed in searching, grasping, moving, M-W packing, which results waiting. TRANSPORTATION WASTE Items are produced more than needed based on the capacity of the handling system so as T-O to minimise Transporting costs per unit. Insufficient number of Material Handling Equipment (MHE) leads to more Inventory that T-I can affect other processes.
45
MHE plays a big role in transportation waste. Non-suitable MHE can damage items that end up being Defects. When items are Transported anywhere, this means the probability of Motion waste T-M presented by double handling and searching increases. If MHE is insufficient, this means that items will remain idle, Waiting to be Transported. T-W INAPPROPRIATE PROCESSING In order to reduce costs of an operation per machine time, machines are pushed to operate P-O full time shift, which finally results in Over-production. Combination of operations in one cell will result directly to decrease WIP amounts P-I because of eliminating buffers. If the machines are not properly maintained, Defects will occur. P-D New technologies of Processes that lack training create the human Motion waste P-M When technologies used is unsuitable, setup times and repetitive downtimes will lead to P-W higher Waiting times TIME WAITING When a machine is waiting because its supplier is saving another customer, it may be W-O forced to produce more, just to keep it running. Waiting means more items than needed at a certain point, whether they are RM, WIP, or W-I FG. Waiting items may cause Defects due to unsuitable conditions. W-D T-D
Table B2 - Wastes Relationships
To
From
O --
I --
M X
O I D M P T W
-X
X X
-X
-X
X --
X X X --
46
Table B3 - Criteria for Evaluating Strengths of Waste Relationships
Question List Weight (1) Does i produce j? a. Always 4 b. Sometimes 2 c. Rarely 0 (2) What is the relationship between i and j? a. As i increases, j increases 2 b. As i increases j reaches a constant level 1 c. Random, depends on conditions 0 (3) The effect of j due to i a. Appears directly and clearly 4 b. Needs time to appear 2 c. Not often appears 0 (4) Eliminating the effect of i and j is achieved by: a. Engineering solutions 2 b. Simple and direct 1 c. Instruction solution 0 (5) The effect of j due to i mainly influences a. Quality of products 1 b. Productivity of resources 1 c. Lead time 1 d. Quality and productivity 2 e. Productivity and lead time 2 f. Quality and lead time 2 g. Quality, Productivity, and Lead time 4 (6) To what degree does the effect of i on j increase manufacturing lead time? a. High degree 4 b. Medium degree 2 c. Low degree 0
Table B4 - Range Divisions of Strength of Direct Relationships
Range 17 to 20 13 to 16 9 to 12 5 to 8 1 to 4
Type of Relationship Absolutely necessary Especially important Important Ordinary closeness Unimportant
Symbol A E I O U
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Table B5 - Relationship Weightings between Different Types of Waste
Question Number Qn 1 2 3 4 5 6 Relati Relatio Ans. Wght Ans. Wght Ans. Wght Ans. Wght Ans. Wght Ans. Wght Score nship onshi O-I b 2 c 0 b 2 c 0 b 1 c 0 5 O O-D a 4 a 2 a 4 b 1 d 2 b 2 15 E O-M b 2 c 0 c 0 b 1 d 2 c 0 5 O O-T b 2 a 2 b 2 b 1 f 2 b 2 11 I U O-W c 0 c 0 c 0 a 2 e 2 c 0 4 I-O c 0 c 0 c 0 b 1 e 2 b 2 5 O I-D a 4 a 2 b 2 b 1 a 1 a 4 14 E I-M a 4 b 1 b 2 b 1 e 2 c 0 10 I O I-T a 4 c 0 c 0 b 1 c 1 b 2 8 D-O b 2 b 1 a 4 c 0 e 2 c 0 9 I D-I b 2 b 1 b 2 b 1 e 2 b 2 10 I D-M b 2 c 0 a 4 b 1 e 2 b 2 11 I D-T a 4 b 1 a 4 b 1 c 1 b 2 13 E I D-W b 2 a 2 b 2 b 1 e 2 b 2 11 M-I a 4 a 2 a 4 a 2 e 2 a 4 18 A M-D b 2 c 0 a 4 b 1 d 2 a 4 13 E M-W b 2 c 0 b 2 c 0 d 2 c 0 6 O A M-P a 4 b 1 a 4 a 2 e 2 a 4 17 T-O c 0 c 0 b 2 b 1 c 1 c 0 4 U T-I b 2 b 1 b 2 b 1 f 2 c 0 8 O T-D b 2 c 0 b 2 b 1 f 2 c 0 7 O T-M b 2 c 0 c 0 c 0 f 2 c 0 4 U I T-W b 2 c 0 a 4 b 1 e 2 c 0 9 P-O c 0 c 0 b 2 a 2 e 2 c 0 6 O P-I c 0 c 0 c 0 a 2 c 1 c 0 3 U P-D b 2 a 2 a 4 a 2 a 1 c 0 11 I P-M b 2 c 0 c 0 a 2 g 4 b 2 10 I I P-W b 2 a 2 b 2 a 2 e 2 b 2 12 W-O c 0 c 0 c 0 b 1 b 1 c 0 2 U W-I a 4 a 2 a 4 a 2 g 4 a 4 20 A I W-D a 4 b 1 b 2 a 2 a 1 c 0 10
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Table B6 - Waste Relationship Matrix
To From O I D M T P W Score Score (%)
Score 36 28 37 36 26 32 25 440
Score (%) 8.18% 6.36% 8.41% 8.18% 5.91% 7.27% 5.68% 100%
10 2 8 2 6 0 8 2 10 7 5 4 0 0 4 5 10 6 6 0 6 0 9 6 10 0 3 8 2 4 4 2 10 0 4 3 2 6 5 0 10 6 1 10 4 0 0 0 10 22 42 45 30 26 13 42 5.00% 9.55% 10.23% 6.82% 5.91% 2.95% 9.55%
Table B7 - Waste Assessment Questionnaire (WAQ)
Qn. # (k)
QUESTION
TYPE
Category (1): Man Does Management transfer operators to various jobs and 1 machines so that operations can be performed by all individuals? Do supervisors provide the amount & quality of supervision 2 needed? Are contract workers adequately supervised and trained for 3 the job? Is proper training given to employees assigned to new 4 machines/jobs? Are positive steps taken to raise workers morale and work 5 interest? Category (2): Material 6 Is vendor lead time available to production schedulers? Are schedulers checked for material availability before release 7 to production? Are some raw materials received in unitized units as may be 8 necessary? Does production planning give warehouse/stores personnel 9 sufficient advance notice of items and stock activity? Are warehouse/stores personnel notified in advance of 10 planned inventory changes? Is there any excessive accumulation of materials waiting 11 reworks or return to vendors? Do materials appear to be standing around piled up 12 unnecessarily on the receiving bay? Do production workers stand around waiting for materials to 13 arrive? 14 Are materials moved more often than necessary? 15 Do perishable materials go bad on a number of occasions?
To Motion From Motion From Defects From Motion From Motion From Waiting To Waiting From Transportation From Inventory From Inventory From Defects To Inventory To Waiting To Defects From Defects
49
Qn. # (k)
QUESTION
TYPE
Category (3): Machine Are tests on the efficiency of the machines, standard to 16 manufacturers specifications, periodically conducted? Is the workload for each machine predictable in sufficient 17 detail? Once a machine has been installed, is there follow-up to see if 18 it performs according to specifications? Is material handling equipment (MHE) capacity adequate to 19 lift the heaviest jobs? 20 Are the MHE used suitable for the jobs that they do? 21 Is there alternative routing in case a critical machine fails? Category (4): Method Is warehouse space availability known in order to avoid 22 blockage of warehouse aisles? Is there satisfactory material numbering system that permits 23 easy reference, storage, and retrieval? Is storage space used effectively for storage with aid of racks 24 and forklift trucks? 25 Do most of the products flow in one direction? Is there a group or committee concerned with product quality 26 and standardisation of recipes? Do work standards have specific and known objectives such 27 as cost reduction per unit, work simplifications, and inventory control? 28 Can work imbalances be forecast in time to adjust them? Are work procedures screening out redundant and 29 unnecessary work? Are the results of quality control, product testing, and 30 transportation passed on to Production Engineering? Yes To some extend Answer ANSWERS: Symbol Weight, wk a 1.0 b 0.5
From Process From Waiting From Process From Transportation From Transportation From Process To Transportation From Motion From Waiting From Motion From Defects From Motion From Overproduction From Process From Defects No c 0
50
Appendix C:
Process Activity Mapping
51
Appendix D:
Current State Map (CSM)
52
Appendix E:
Future State Map (FSM)
53

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Waste Assessment and Waste Reduction in Bread Production by Using VSM as a Tool (Lobel's Bread, Bulawayo)

Supermarket Takt VA Value Value Stream Value Stream Mapping

Waste Work In Progress (WIP) Work Order (WO)

CHAPTER TWO: LITERATURE REVIEW....................................................................................................... 4

CHAPTER THREE: COMPANY AUDIT......................................................................................................... 25

CHAPTER FOUR: RESULTS.......................................................................................................................... 35

CHAPTER FIVE: DISCUSSIONS AND CONCLUSIONS ........................................................................... 38

CHAPTER ONE: INTRODUCTION

4th assumption: 5th assumption:

CHAPTER TWO: LITERATURE REVIEW

Lean Manufacturing Overview

The Seven Wastes

2.4.3 Time Waiting

2.4.5 Inappropriate Processing

2.4.6 Unnecessary Inventory

2.4.7 Unnecessary Motion

2.4.8 Product Defects

2.4.9 Three Main Categories of the Seven Wastes

Unnecessary Motion OverProducing Time Waiting MAN

Transportation Product Defects Unnecessary Inventory MATERIAL MACHINE

Figure 2.1 Three Main Categories of Waste

The Waste Assessment Model

2.4.10 Seven Wastes Relationships

2.4.11 Developing Relationship Weightings

Table 2.4 Example: Relationship Weightings between Different Types of Wastes

2.4.12 Waste Relationship Matrix

Table 2.5 - Waste Relationship Matrix

To From O I D M T P W Score Score (%)

2 8 2 10 7 5 5 10 6 9 6 10 4 4 2 2 6 5 10 4 0 42 45 30 9.55% 10.23% 6.82%

2.4.13 Waste Assessment Questionnaire

Table 2.6 - Example of a Completed Waste Assessment Questionnaire (WAQ)

To Motion From Motion

2.4.14 The Waste Ranking Algorithm (WRA)

Table 2.7 Example: Number of Grouped Assessment Questions Step 1

No. of Questions (Ni) 3 3 4 10 4 5

Table 2.8 - Original Weights as Obtained from the WRM Step 1

for each Type of Waste j

Table 2.9 - Division of Table 2.8 by Ni Values Steps 2 & 3

O 2.00 1.00 0.67 1.00 1.00

I 0.00 10.00 1.33 5.00 5.00

D 1.50 4.00 1.33 3.50 3.50

M 2.00 0.00 0.67 2.50 2.50

T 1.00 0.00 3.33 2.00 2.00

P 1.50 0.00 0.00 0.00 0.00

W 2.50 10.00 1.33 0.00 0.00

FINAL SCORE, S j Freq. of Non - Zero Scores, F j

for each type of waste j

O 0.00 0.00 0.38 0.33 0.33 0.38 18.21 16

I 0.00 0.00 0.25 0.67 0.67 0.25 44.04 21

D 0.00 0.00 0.75 0.67 0.67 0.75 37.33 21

M 0.00 0.00 0.63 0.33 0.33 0.63 22.13 19

T 0.00 0.00 0.00 1.67 1.67 0.00 24.25 11

P 0.00 0.00 1.25 0.00 0.00 1.25 7.38 9

W 0.00 0.00 0.75 0.67 0.67 0.75 33.25 16

0 0 0.5 0.5 0.5 0.5

Freq. of Non - Zero Scores, f j

The NEW SCORE was obtained from Eqn. II

for each type of Waste j

Then finally rank the type of waste in descending order.

The Value Stream

Defining the Value

Identifying the Value Stream (Value Stream Mapping)