Value Stream Mapping for the process industries: creating a roadmap for lean transformation PDF
Preview Value Stream Mapping for the process industries: creating a roadmap for lean transformation
Lean Methods & Implementation / Value Stream Management “Value Stream Maping has become a key tol for implementing Lean thinking and VALUE STREAM MAPPING positive change across our business. This book describes in detail the process by which Pete King has helped many organizations like ours to delight customers and F O R T H E relentlessly drive out waste ... a must-read for any executive wanting to facilitate a transformation journey within the process industries.” —Steve Anderson, Global Vice President of Supply, Afton Chemical “Pete King has developed an international reputation as a leading authority on the PROCESS INDUSTRIES subject of Lean in the process industries. ... From diagnosing the major wastes and inhibitors to flow, to designing and executing a roadmap, Pete offers everything required to deliver true operational excellence from Value Stream Mapping.” —Pete Wright, Managing Director & Principal Consultant, Pico Consulting Ltd. “A must-read for practitioners and consultants alike . Food, pharma, and chemical C reating a Roadmap for Lean Transformation processes are, by their nature, different and need an adapted approach. Peter King’s deep, hands-on experience provides the process industry with a state-of-the-art toolkit to eliminate waste and reach breakthrough performance.” —Hans van Oosteren, Managing Partner, Improvium “The book is very practical in its organization: for each theoretical step, King includes real-world examples. ... It's remarkable how he managed to include so much knowl- edge and experience into a book that is so pleasant to read.” —Henrique Fagundes, Operations Implementation Leader, McKinsey & Company “This is the first book I have read on this subject that goes into the required level of depth and detail to clearly demonstrate the path to a complete Lean transformation.” —John Cockburn-Evans, Fellow, Institution of Chemical Engineers; Certified Professional Coach; Senior Consultant & Lean Coach, DuPont Sustainable Solutions This book describes, in detail, how to create a complete VSM for a process industry manufacturing operation. Identifying the unique features of process operations, it explains why they require adjustments to traditional VSMs. Walking you through the steps of analyzing the map, it explains how to scope improvement projects, prioritize them, and then use future state VSMs to illustrate and motivate systemic improvement. The authors introduce a target manufacturing process and use it to demonstrate how to create a complete VSM. The target process is complex enough to illustrate the common issues encountered in mapping a process industry operation, but straightforward enough to provide a clear understanding of the logic behind all of the mapping considerations and decisions. K23644 IS:NB -879 -1 -284 -8674 8 P e t e r L . Ki n g 9 0 0 0 0 9 7 8 1 4 8 2 2 4 7 6 8 8 J e n n i f e r S . Ki n g KIN G • KI N G V A L U E S T R E A M M A P P I N G F O R T H E P R O C E S S I N D U S T R I E S VALUE STREAM MAPPING F O R T H E PROCESS INDUSTRIES VALUE STREAM MAPPING F O R T H E PROCESS INDUSTRIES Creat ing a Roadmap for Lean Transformat ion Peter L. King Jennifer S. King Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Group, an informa business A P R O D U C T I V I T Y P R E S S B O O K CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2015 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20150224 International Standard Book Number-13: 978-1-4822-4769-5 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Contents Acknowledgments ................................................................................... xi Introduction ..........................................................................................xiii 1 The Value of Mapping ........................................................................ 1 A Focus on Flow Rather Than on Function...................................................... 2 Summary ............................................................................................................ 4 2 Value Stream Mapping Fundamentals ............................................... 5 Introduction to Value Stream Mapping ............................................................. 5 Material Flow ...................................................................................................... 7 Major Process Steps .................................................................................... 7 Data Boxes ................................................................................................. 7 Process Box and Process Data Box ........................................................... 8 Inventory Data Box ...................................................................................11 Transportation Data Box .......................................................................... 12 Customers Data Box ................................................................................. 13 Supplier Data Box .................................................................................... 13 Material and Information Flow Icons ...............................................................14 Information Flow ..............................................................................................14 The Third VSM Component—The Timeline ................................................... 18 Parallel Equipment ........................................................................................... 21 Level of Detail .................................................................................................. 21 Summary .......................................................................................................... 21 3 VSM Enhancements for Process Operations .................................... 25 Distinguishing Features of Process Operations That Require a Different VSM Approach ................................................................................................. 25 Capital Intensive vs. Labor Intensive ............................................................... 25 Material Flow Patterns—SKU Fan Out ............................................................ 26 Product Changeover Issues Are Complex ....................................................... 29 Product Families—Selecting a Target Product or Family ............................... 30 Takt Rate vs. Takt Time ................................................................................... 30 Units of Production ...........................................................................................31 v vi ◾ Contents Generating the Map ......................................................................................... 33 Time Units ........................................................................................................ 34 Where to Begin ................................................................................................ 34 Summary .......................................................................................................... 34 4 Additional Good Mapping Practices ................................................ 37 Good VSM Practices ......................................................................................... 37 Map Layout—Flow Direction ........................................................................... 37 Level of Detail .................................................................................................. 38 Level of Precision ............................................................................................. 38 Parallel Equipment ........................................................................................... 38 Logical Flow vs. Geographic Arrangement ..................................................... 39 Support Processes ............................................................................................ 41 Computer Tools vs. Brown Paper .................................................................... 44 Qualifed Guidance and Coaching .................................................................. 45 Summary .......................................................................................................... 45 5 Our Focusing Problem—A Synthetic Fiber Process ......................... 47 Process Overview ............................................................................................ 47 Raw Materials ................................................................................................... 48 Step 1: Polymerization ..................................................................................... 48 Step 2: Fiber Spinning ...................................................................................... 48 Step 3: Draw–Anneal ....................................................................................... 49 Step 4: Cut—Bale ............................................................................................. 50 Finished Product Storage and Shipping ...........................................................51 Order Processing and Production Scheduling .................................................51 The Synthetic Fiber Manufacturing VSM ......................................................... 52 6 Developing the Material Flow .......................................................... 55 7 Calculating Data Box Parameters .................................................... 59 Process Step Data Boxes.................................................................................. 59 Overall Equipment Effectiveness (OEE) .................................................. 60 Calculating Availability ......................................................................61 Calculating Performance ................................................................... 62 Calculating Quality ........................................................................... 62 Calculating OEE ................................................................................ 62 Remaining Factors .................................................................................... 62 Another Example of OEE ......................................................................... 63 Supplier Data Boxes ......................................................................................... 64 Customer Data Boxes ...................................................................................... 64 Inventory Data Boxes ...................................................................................... 65 Transportation Data Boxes .............................................................................. 65 Summary .......................................................................................................... 66 8 Material Flow Rates and Takt .......................................................... 67 Calculating Takt.................................................................................................67 Contents ◾ vii Bales ................................................................................................................. 68 Rope Takt in Gaylords ..................................................................................... 68 Annealed Product Takt .................................................................................... 68 Filament Takt .................................................................................................... 71 Flake, Spinning, and Polymer Takt.................................................................. 72 Raw Material Takt ............................................................................................ 72 Summary .......................................................................................................... 72 9 Completing the Data Boxes: Utilization, Delivery Frequency, and Days of Supply .......................................................................... 75 Utilization ......................................................................................................... 75 Transportation Frequency ................................................................................ 78 Inventory Days of Supply ................................................................................ 79 Summary .......................................................................................................... 81 10 Mapping the Information Flow ........................................................ 83 Why Map Information Flow? ........................................................................... 83 Fiber Manufacturing Information Flow ........................................................... 83 Capacity Constraint Resources ......................................................................... 84 Additional Information Mapping Tools ........................................................... 88 Summary .......................................................................................................... 89 11 Developing the Timeline .................................................................. 91 Timeline Principles........................................................................................... 91 Fiber VSM Timeline .......................................................................................... 92 Cash Flow Cycle Time ..................................................................................... 96 Summary .......................................................................................................... 96 12 Finding the Waste—Analyzing the Map........................................... 97 General Impressions from the Current State ................................................... 98 Inventory Opportunities .................................................................................. 98 Baler Reliability .............................................................................................. 100 Spinning Yield .................................................................................................101 Long Campaign Cycles (EPEIs) .......................................................................101 Hot Roll Draw–Anneal ....................................................................................101 Uncoordinated Scheduling .............................................................................101 Capturing Potential Opportunities .................................................................103 13 Scoping the Opportunities ............................................................ 105 Inventory Opportunities .................................................................................105 1. Raw Material Inventory in Rail Cars Is Too High ..............................105 2. Flake Inventory Is High ......................................................................107 3. Filament Inventory Is High .................................................................107 4. Rope Finished Product Inventory in Gaylords Is Too High ............. 108 5. Right Size the Cutter Box Inventory .................................................. 108 6. Bale Finished Product Inventory Is Too High ....................................110 viii ◾ Contents Equipment Opportunities ...............................................................................111 7. Spinning Changeover Losses Are High; Spinning Utilization Is High 111 8. Baler Reliability Is Poor.......................................................................112 9. Changeover Improvement—Balers .....................................................112 10. Reduce the Baler Campaign Cycle (EPEI) ........................................113 11. Mothball One Baler ...........................................................................113 12. Hot Roll Draw–Anneal Reliability and Yield Wastes ........................114 13. Mothball One Polymer Reactor .........................................................114 System-Wide Opportunities ............................................................................115 14. Implement Virtual Cellular Flow .......................................................115 15. Filament Tub FIFOs after Implementation of Virtual Cells ..............117 16. Implement Pull Replenishment across the Value Stream .................117 17. Drop the 60 Very Low Demand SKUs ..............................................118 Summary .........................................................................................................118 14 Implementation Strategy and Sequence ........................................ 121 Strategy for Implementation of Improvements ..............................................121 Riverside Fiber Plant Future States .................................................................122 Future State Generation 1 ...............................................................................124 Future State Generation 2 ...............................................................................124 Future State Generation 3 .............................................................................. 126 Summary .........................................................................................................127 15 Future State Value Stream Maps .................................................... 129 Why a Future State VSM? ................................................................................129 Future State 1 Map ......................................................................................... 130 Future State 2 Map ..........................................................................................132 Future State 3 Map ......................................................................................... 134 Summary ........................................................................................................ 136 16 Supply Chain Mapping .................................................................. 139 Why a Supply Chain Map Is Important .........................................................139 Supply Chain Wastes .......................................................................................140 Effects of Wastes at the Supply Chain Level ..................................................141 Supply Chain Map Components .....................................................................142 Future State Supply Chain Map ......................................................................143 Supply Chain Map Example ...........................................................................144 Summary .........................................................................................................148 17 VSM as a Way of Engaging Employees ............................................149 Origin of the Problem .....................................................................................149 A New Paradigm on the Role of Labor ..........................................................150 The Nature of Engagement .............................................................................151 Summary .........................................................................................................153 18 A Roadmap for Continuous Improvement ......................................155 Summary .........................................................................................................157
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