Module 02 – Section 09 – Gathering Data (Part A)
We are going to capture or data on a value stream map and I am actually show you what it means so
everybody can relate what we are doing to what the map should look like, ok? This is going to take a few
minutes. We are not going to ask you to draw the map, just follow with me.
The first thing we are going to do when draw a value stream map is draw the customer on the right hand
side with the customer requirements as of today. The requirements are 10 per day, however I am
negotiating a contract for 24 planes per day if can guarantee we can get 24 planes out per day. Can we
get out 24 right now? (No) No. So we don’t have this contract yet. As we go through and added the
workstations, every time we added value at workstation 1,2,3,4.
Now, inspection, WS 5. Is there any value added at work station 5? (Student response, Quality is
important for the customer, so I’m pretty sure YES”) No, let’s cover the test. (Muffled student in
background with comment) Even if we did it right the first time, does the customer care about it? (Yes)
Because this is a customer requirement. Is it value for the customer? The customer expects the
inspection. In most companies, inspection is needed to ensure good product goes out. In this case, a
very rare case, the inspection is value added. In most companies, inspection is not value added, it is a
necessity. Otherwise you are passing on defects to the customer. With the government, US Air Force,
Canadian Air Force, they want the inspection done for the records, and for obvious reasons.
So we have identified all of the process boxes, 1,2,3,4,5, and then on to shipping in the map and as we
go down the list, we actually counted the inventory at the end of the day? When we count the inventory,
we find a certain number of pieces, or assemblies between each work station. That’s what we did. There
are about 60 sets of parts in the back, so that’s what’s in our warehouse, so we have put that number in
there as well.
We get weekly shipments from SVI (Sky View Industries) and that is how we fill up our warehouse
weekly.
Here is the inventory between each workstation at the end of the day.
What is cycle time? I want to talk to you a little bit. Cycle time represents the number of seconds, or
minutes in this case, that it took to do one operation at workstation one. So one plane to another, how
many seconds did it take to do that? The answer becomes the cycle time. So as we add up the cycle
time for each of these, some of you may have noticed that it takes a little longer to do work station 2?
(Muffled Student response in background.) So you are starting to realize that putting that data down is
very important. In looking at the chart above, you will notice that it took longer to complete a unit at
workstation 2. What about at workstation 3, we had a set up time and we have to realize the set up time.
Course notes, Lean 101, Module 2 Section 9
[Link]
It was 30 Seconds, which translates to 30 minutes, so we’re So we are starting to show on a graph how
we are producing the product.
Is this making sense right now? So far? Ok we are looking at the data and here’s our utilization for the
company, it is 80%.
This is showing the utilization of the product, This is how productive we are.
And our available time is 430 minutes out of a day. How do we come up with 430 minutes?
60 minutes per hour x 8 hour day = 480. Less 30 minutes for lunch and two 10 minute breaks per day =
430 minutes. (Student response, muffled, Breaks) I am too good to you guys.
We have in our company identified how much value added time we are spending on these particular
planes.
Course notes, Lean 101, Module 2 Section 9
[Link]
And then also, with the inventory, we have translated it into the number of days of supply.
We are saying that at ten planes per day and we have 5 parts here, we have a 1/2 days worth of
inventory here. At ten parts between station 3 & 4 we have one days worth of inventory. With 48 parts
between station 1 and 2, we have 4.8 days of supply. In our system, a lot of days when you add it up and
take a look at the value added process. 13.3 days is the number and we have a total of 87 seconds
which translates to 87 minutes of Value Added Time.
Here is the number of days supply and the number of value added minutes.
The value stream map does not end with the material flow. We are actually looking at the information
flow as well. So from the customer we get quarterly sales forecasts, with daily ordering, with drawing
some of the information flow. It goes into our MRP System, we then send a monthly forecast to our
supplier,
Course notes, Lean 101, Module 2 Section 9
[Link]
The value stream map does not end with the material flow. We are actually looking at the information
flow as well. So from the customer we get quarterly sales forecasts, with daily ordering, with drawing
some of the information flow. It goes into our MRP System, we then send a monthly forecast to our
supplier, with weekly deliveries, we have a weekly a schedule,
And remember how you read that we have daily checks at Work Stations 3, 4, & 5? We have the “Go
See” icons, the glasses. It tells you to go see those work stations and make you daily checks. Is this
wasteful or not? Probably wasteful.
We are just trying to get an idea of how we are doing business today. And this gives us just a little bit of a
graph of how much inventory we are sitting on, where its flowing, flowing towards shipping to get 10 per
day out and we are trying to develop an understanding of our business after day 1. So we can make
improvements. It’s interesting; I had two people come to me during the break and I asked them what we
can do to improve and I think that after Day 2, after we do the brainstorming as a group, we will have a lot
more suggestions.
Course notes, Lean 101, Module 2 Section 9
[Link]