Stephen's Valve Company

Visteon Lean Academy
Welcome to Stephens Valve Company
Copyright 2005, Visteon Corporation
Stephens Valve Company

Stephens Valve Company
fabrication and assembly of hydraulic valves Competitive market
Goals and objectives of the Company:

high quality customer service
JIT delivery
low cost operations
Customer Value
Customer requires you to produce at a TAKT time of 15 seconds You have been given a factory layout and must use this for round 1 There will be further rounds where you will be expected to make improvements
Value Add and Waste

Value
Add Things that the customer is willing to pay for.
Waste
Activities which do not add value to the product
Waste
Overproduction Waiting
Defects
Waste (Muda)
Transporting Unnecessary Motion
Inappropriate Processing
Unnecessary Inventory
Final Assembly
Extrusion Flange Controller Upper Valve Body Lower Valve Body End Fitting
Assembly Bill of Materials

Completed Valve Assembly
Controller /Mount Assembly
Valve Body Assembly End Fitting
Valve Mount Assembly
Controller
Lower Valve Body
Upper Valve Body
Flange
Extrusion
Henrys House of Hydraulics, Slide 10
Organisation
4 operators 2 material handling 1 quality 1 planning 1 plant manager 1 customer 1 observer, process improvement consultant
Materials
Customer checksheet for delivery ( run for 20 pieces and check quality and delivery for each piece) Five tables MRP system Roll a Dice to get colour of finished product 1,2 = red 3,4 = yellow 5,6 = blue
Constraints - Round 1
Cannot
change layout Cannot change job descriptions Cannot change process Cannot change lot sizes Cannot add or eliminate people When facilitator says stop you must stop
Operating Metrics
Inventory
finished goods, and WIP of
control part Quality internal and to customer Delivery to the customer Customer Satisfaction Employee Satisfaction
Run round 1
3 minutes system fill Customer calls off parts Customer will log delivery and quality of finished goods
STOP - Collect Information

Use Measurables as created before round one to collect operating data. Team has 10 minutes to a) Plan priority actions b) Implement the actions c) You must complete a) before starting b)
Run round 2
3 minutes system fill Customer calls off parts TAKT is now 10 seconds Log delivery and quality of finished goods at customer
Round 3
What is the lowest TAKT you can deliver Customer will take the lowest bid which will ALSO guarantee delivery and quality Run at rate to prove quotation
Learning Points
Large batch sizes increase throughput time and inventory levels High inventory levels hide production and quality problems Products spend most time in the plant in non value add activity a
potential for waste reduction It is difficult to find problems in an UNSTABLE production process The following tools are basic to Lean Management
Measurement to track progress and identify opportunities
Workplace Organization and Visual Management Quality at every level zero defect mentality
Learning Points
Reducing batch size reduces throughput time and inventory levels Early detection of quality problems smoothes process flow and
enables batch size reduction Push production allows inventory to build, hiding problems and creating additional non-value added work The following tools help to get Stability:
Standardised Work
Quick Changeover to reduce WIP inventory Good preventative maintenance to increase availability and reduce WIP
inventory and throughput time
Learning Points
Pull production system enables control over inventory
levels, and creates an automatic production scheduling system Low levels of inventory make bottlenecks and other problems easy to spot Set up reduction enables batch size reduction Lower levels of inventory and pull production simplifies workplace organization which reduces non-value added work Dramatic improvements are possible without major capital investment Visual Factory is a basic tool for production management
Learning Points
Continuous flow enables batch of one capability Inventory levels can be dramatically reduced by
driving toward batch of one production Problems are easiest to spot and act on when internal customers and suppliers have little or no inventory between their operations Time to respond to changes in demand is driven by inventory, and is at its minimum with batch of one

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Stephen's Valve Company

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Visteon Lean Academy

Welcome to Stephens Valve Company

Copyright 2005, Visteon Corporation