United Technologies Lean Transformation
Lean / Value Stream
Mapping Overview
...1
Agenda
Lean Principles
United Technologies Vision
What is Value Stream Mapping
Seven Steps to Lean
Building Lean Organization
...2
Roots of Lean Thinking
Ford: Highland Park: 1913
GM: Mixed Model - Batch Process: 1930-1940
Ohno: American Supermarkets: 1950s
Toyota Production System: 1945-1970-now
Lean
...3
Womack and Jones
Lean Thinking 5 principles:
1- Specify value
2- Map the flow of value
3- Make value flow
4- Pull from the customer
5- Seek perfection
Jim Womack and Dan Jones,
Lean Enterprise Institute, USA & England
...4
United Technologies
Continuous Improvement Flight Path
Lean Transformation
2003
First Cell Achieves Gold
2002
First Cells Achieve Silver
Supply Chain Excellence
2000
ACE Launch
1998-1999
Q+
1986-1990
KAIZEN
1993-1996
...5
Vision
Current Supply Chain
(weeks)
Order
Cycle
Procurement
Cycle
Assembly Delivery
Cycle
Cycle
FAB
Customer
Order
Raw Material
Manufacturing
FINL
A
Assembly
& Test
Shipping
Supply Chain Vision
(days)
...6
The Transformation
Its all about
Connecting
the Dots
...7
Adding a tool to the ACE Toolbox
Value Stream
Management
5S
Passport
Market FeSetanda
dbackrd Work
ly
s
Root Cau Ana
M
se Corrisetciaske Proofng
ive Action
Process Manatg
ement
Process Cer
tifcation
...8
What is a Value Stream?
All activities both value added and nonvalue added required to bring product
from raw material to the customer
Value Stream
CUSTOMER
Producer
A
Raw
Material
Producer
B
Producer
C
Warehouse
Assembly &
Text
Customer
Finished
Product
...9
What is Value Stream
Mapping?
Implementation
Plan
Future State
Map
Current State
Map
Product Family
Defnition
...10
Example of a Current State Map
6 Week
Forecast
Weekly Fax
Raw Material
Supplier
90/60/30
day forecasts
Production
Control
Weekly Schedule
300 parts
C/T = 5 hr.
C/O = 10 min.
Uptime = 80%
5 hours
Assembly
350 parts
C/T = 10 hr.
C/O = 10 min.
Uptime = 80%
30 days
200 days
Daily
Schedule
Producer B
Producer A
Customer
Daily
Order
50 parts
C/T = 20 hr.
C/O = 10 min.
Uptime = 80%
5 days
35 days
10 hours
Shipping
20 hours
Leadtime
= 270 days
Processing
time = 35 hrs.
...11
What defines a Process on a Value Stream Map?
Where inventory stops an accumulates
Mill
Turn
Grind
Assy
How many processes are there? 4
Mill
Turn
Grind
How many processes are there now?
Assy
1
...12
Example of a Future State Map
6 Week
Forecast
Weekly Fax
Raw Material
Supplier
90/60/30
day forecasts
Production
Control
Daily
Schedule
Batch
Part
Producer
Total Work
<30 hrs
20 days
10 hrs
Shipping
Assy &
Test
Set-up
25 days
Customer
Daily
Order
2 days
15 hrs
Lead-time
= 47 days
Processing
time = 25 hrs.
...13
Value Stream Mapping Advantages
Measures value from a customers perspective
Focus is on lead time
Shows a system view
Links the material and information flows
Enables the organization to identify waste
Provides a roadmap for continuous
improvement & change
...14
The Future State is Defined Using
Seven Basic Principles of Lean
1- Takt time
2- Finished goods strategy
3- Continuous flow
4- Pull System
5- Schedule only one point
6- Pitch
7- Interval
(EPEI=Every Part Every Interval)
...15
1st: Takt Time
Synchronize the pace
of production to the
pace of sales
...16
2nd: Finished Goods Strategy
Build to Stock
Build to Order
or
Hybrid
...17
Batch & Queue Processing
3rd: Continuous Flow
Process Process
Process A
B
B
Process
A
Process
One-Piece Flow
10 minutes
Process
C
10 minutes
10 minutes
3 min.
30++
12order
min.
Lead-time : ? minutes for total
First In First Out Flow
Process 1
FIFO
Process 2
...18
4th: Pull System
Pull when flow is not possible
production
kanban
withdraw
kanban
supplying
process
customer
process
new
product
withdrawn
product
supermarket
Customer goes to supermarket and gets what they need when they need it
Supplier produces to replenish what was withdrawn
...19
5th: Schedule Only One Point
Pacemaker
Customer
Supermarket
flow
Pull
Customer
FIFO
FIFO
Flow
...20
6th: Interval
(EPEI = Every Part Every Interval)
...21
7th: Pitch
...22
Future State - What to expect
Operational Changes
Drumbeat
Pitch
EPEI
Flow / Pull / Pacemaker
Set the pace
Level the volume
Level the mix
What do I work on next
Business Performance Changes
Lead-time
Inventory
Quality
Total Product Cost
Market Growth
decreasing
decreasing
increasing
decreasing
increasing
...23
Building the Lean Organization
Every one of us must realize that:
the company is in business because of our customers
Our customers have choices
those choices lay with our competition
waste adds cost, time, and service interruption thus
giving the advantage to the competition
...24
Supporting the Lean Organization
At every level
Understand what is important to the customer
See the flow of value
Recognize waste
Solve problems that interrupt the flow of value
Continuously improve the flow of value
...25
