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LeanManufacturing

ValueStreamMapping

1LeanManufacturing

ValueStreamWhatisLean?Leanisathatfocuseson:CreatingvaluefortheCustomerEliminatingWasteContinuousincrementalimprovementThinkingProcess2WhatisLean?LeanisaWhatisaValueStream? “Alloftheactions,valueornonvalueaddedthatarerequiredtobringaproductfromconcepttolaunchorfromrawmaterialordertodelivery...”From“LeanLexicon”3WhatisaValueStream?From“LOrderFulfillmentValueStreamIdeally,we’dwantthematerials,informationandcashtoflowsmoothly(withoutinterruption)andasquicklyaspossiblethroughthisstream.SalesOrderReceiptRMOrder&ReceiptManufacturingPackagingDistributionDelivery/Service4OrderFulfillmentValueStreamLeanElementsValueStream=ValueProvidingProcessesPullPerfectionFlowValue5LeanElementsValueStream=VaValue“WhatisthewillingtoPayfor?”3TypesofCustomers:Theexternalend-userorpayingcustomerThedownstreamcustomerofanyinternalupstreamprocess.Yourcompanyasthecustomerofexternalsuppliers.Customer6Value“WhatistheFlowIdealflow=1pieceatatimeRatedeterminedbycustomerdemand-TakttimeWorkbalancedforeachpersonormachineTraveldistanceformaterials&peopleminimizedStandardWorkutilizedFlowwhatyoucan…Pullwhatyoucan’t…Requiresthatallstepsintheprocessbe:Capable=RighteverytimeAvailable=AlwaysabletorunAdequate=Capacitytoavoidbottlenecks7FlowIdealflow=1pieceataPhasesofLeanJourneyPhase1-Identify/MapValueStreamsPhase2-PrioritizeopportunitiesPhase3-UtilizeLeantoolstoeliminatewastePhase4-ControltheflowPhase5-LeanmetricsPhase6-Re-evaluateValueStreamsandbeginagain8PhasesofLeanJourneyPhase1-ItAllstartswithWaste

IdentificationIdentifyallformsofWastethroughoutourentireValueStreambefore:ReducingthewasteorEliminatingthewasteThiswillenableustoprioritizeoureffortsandfocusonthehighpotentialeventsfirst.9ItAllstartswithWasteIdent8WastesOverproductionInventoryWaitingTransportingUnnecessaryprocessingUnnecessarymotionDefectsUnderutilizationofpeople108WastesOverproduction10Over-ProductionProducingmorethanwhatthecustomerreallywants.WaystoOvercome:ReducesetuptimesSynchronizetimeandamountofprocessesCreatecompactlayoutsandvisibility11Over-ProductionProducingmoreInventoryExcessinventoryrequireshandling,space,$$,people,andpaperwork.WaystoOvercome:SynchronizeworkflowtoreduceaccumulationShortensetuptimeReduceleadtimeCellularlayoutsZeroQualityDefectsReducingallotherwastesreducesthewasteofinventory12InventoryExcessinventoryrequWaitingWaitingforupstreamprocessesduetopoorlayout,unbalancedworkloadorequipmentdowntime.WaystoOvercome:SynchronizeworkflowBalanceunevenloadsbyflexibleworkersandequipmentImplementpreventivemaintenancetoeliminatemachinedown-time13WaitingWaitingforupstreamprTransportationTransportationaddsNovaluetotheproduct.Ratherthanimprovethetransportation:ReduceitEliminateit.WaystoOvercome:Establishlayoutandlocationswhichreducesoreliminatestransportation14TransportationTransportationaUnnecessaryProcessingSamedataenteredinto3differentinformationsystems.(SAP,Access,Excel)Allunnecessary,orNon-ValueAdded,processingstepsshouldbeeliminatedWaystoOvercome:QuestionifprocessisnecessaryatallSimplifyUseStandardWorkReduceHandoffs/approvals15UnnecessaryProcessingSamedatUnnecessaryMotionMotionofpeople,machines,andproductsiswaste.WaystoOvercome:Studymotionandeliminateorreducemotionthroughimprovedlayouts.CellularManufacturingRethinkmaterialstorageJob/TaskCombinations16UnnecessaryMotionMotionofpeDefects(Correction)Makingdefectiveproductispure(muda)waste.FocusonpreventingdefectsNotfindingandrepairingdefectsWaystoOvercome:Mistake-prooftopreventdefectsNeverPassdefectsStandardWork17Defects(Correction)MakingdeWasteofUnderutilizingPeopleTheeighthwasteisnotfullyutilizingthetimeandtalentsofpeople.Whoarethe“real”experts?andwhatdotheyknow?18WasteofUnderutilizingPeoplePurposeofValueStreamMappingThepurposeofthevaluestreammapistolookatthebigpictureandtodevelopa“future-state”mapbyeliminatingallnon-valueaddedactivitiesandminimizingallnon-value-addedbutrequiredactivities.19PurposeofValueStreamMappinBasicCurrentStateMAPPINGTIPS1Cross-functionalTeamcompletesthemapStartatthecustomerendWalktheactualpathwaysofbothmaterialandinformationflow.Drawbyhandinpencil.20BasicCurrentStateMAPPINGTIValueStreamMappingIcons

ProcessIcons21ValueStreamMappingIcons

ProValueStreamMappingIcons

InformationFlowIcons22ValueStreamMappingIcons

Inf2323ProductionLeadTime=23.5daysValueAddedTime=184SecondsFrom"LearningtoSee"byMikeRotherandJohnShook

CurrentStateMap24ProductionLeadTime=23.5dayFutureStateQuestionsHowdowefocusontheLeadtime?UnderstandthetakttimeWhatareaintheprocesstriggersproduction?Willwebuildtoshippingortoasupermarket?Wherecanweusecontinuousflow?WhatitemsorEventsrequireProcessMapsHowdowesimplifyWheredowereducetravel&redundancy?Whatprocessimprovementscanwedo?

25FutureStateQuestionsHowdow•UsethelistoffuturestatequestionsHaveyourcross-functionalgroupbrainstormUtilize“outside”folksandyourselftoquestioneverythingYoucansketchfuturestateideasatthetabletodiscussIfyouwishuseanoverheadasimpletransparenciesbyhandtoshowyourideasAfteryouhaveidentifiedalloftheimprovementsandopportunitieswhatwouldyourmaplooklikeYoumayreviseyourmapseveraltimesasyousimplifyMakesureyoucantraceallkeyproductandinformationflow–Lookfordisconnectsoroversightsinyournewmapbyfollowingitthroughasagroup

exerciseWhatarethenewLeadandCycletimes(Leadtimeisthekey)TeamTipsFutureStateMapping26•UsethelistoffuturestaFromLearningtoSeebyMikeRotherandJohnShookFutureStateValueStreamMap27FromLearningtoSeebyMikeRBenefitsofValueStreamMappingHelpsyouvisualizemorethanthesingle-processlevelClearlydefinesLeadandCycletimesHascross-functionalaccuracyLinksthematerial&informationflowsProvidesacommonlanguageandbasetoworkfromProvidesablueprintforimplementationMoreusefulthanquantitativetoolsTiestogetherLeanconcepts&techniques28BenefitsofValueStreamMappi

Verysimply,aleanvaluestreamshouldproducewhatthecustomerneedswhenitisneededandwiththehighestqualityandthelowestcost.Todothatallprocessesmustbelinkedfromthefinalcustomerbacktotherawmaterialandallnon-valueaddedactivitymustbeeliminated.29Verysimply,aleanvaluestrLeadTimeReductionShorterLeadTime=SmallerdownstreamInventorySmallerOrderQuantity=SmallerdownstreamInventoryInventory=OrderQuantity/2+SafetyStockSafetyStock=DailyDemandxDemandStdDevxINVNORMAL(servicelevel)x√LeadTimeENRServiceLevel=98%30LeadTimeReductionShorterLeaVSMReferencesLearningtoSeebyMikeRotherandJohnShook31VSMReferencesLearningtoSeeLeanManufacturing

ValueStreamMapping

32LeanManufacturing

ValueStreamWhatisLean?Leanisathatfocuseson:CreatingvaluefortheCustomerEliminatingWasteContinuousincrementalimprovementThinkingProcess33WhatisLean?LeanisaWhatisaValueStream? “Alloftheactions,valueornonvalueaddedthatarerequiredtobringaproductfromconcepttolaunchorfromrawmaterialordertodelivery...”From“LeanLexicon”34WhatisaValueStream?From“LOrderFulfillmentValueStreamIdeally,we’dwantthematerials,informationandcashtoflowsmoothly(withoutinterruption)andasquicklyaspossiblethroughthisstream.SalesOrderReceiptRMOrder&ReceiptManufacturingPackagingDistributionDelivery/Service35OrderFulfillmentValueStreamLeanElementsValueStream=ValueProvidingProcessesPullPerfectionFlowValue36LeanElementsValueStream=VaValue“WhatisthewillingtoPayfor?”3TypesofCustomers:Theexternalend-userorpayingcustomerThedownstreamcustomerofanyinternalupstreamprocess.Yourcompanyasthecustomerofexternalsuppliers.Customer37Value“WhatistheFlowIdealflow=1pieceatatimeRatedeterminedbycustomerdemand-TakttimeWorkbalancedforeachpersonormachineTraveldistanceformaterials&peopleminimizedStandardWorkutilizedFlowwhatyoucan…Pullwhatyoucan’t…Requiresthatallstepsintheprocessbe:Capable=RighteverytimeAvailable=AlwaysabletorunAdequate=Capacitytoavoidbottlenecks38FlowIdealflow=1pieceataPhasesofLeanJourneyPhase1-Identify/MapValueStreamsPhase2-PrioritizeopportunitiesPhase3-UtilizeLeantoolstoeliminatewastePhase4-ControltheflowPhase5-LeanmetricsPhase6-Re-evaluateValueStreamsandbeginagain39PhasesofLeanJourneyPhase1-ItAllstartswithWaste

IdentificationIdentifyallformsofWastethroughoutourentireValueStreambefore:ReducingthewasteorEliminatingthewasteThiswillenableustoprioritizeoureffortsandfocusonthehighpotentialeventsfirst.40ItAllstartswithWasteIdent8WastesOverproductionInventoryWaitingTransportingUnnecessaryprocessingUnnecessarymotionDefectsUnderutilizationofpeople418WastesOverproduction10Over-ProductionProducingmorethanwhatthecustomerreallywants.WaystoOvercome:ReducesetuptimesSynchronizetimeandamountofprocessesCreatecompactlayoutsandvisibility42Over-ProductionProducingmoreInventoryExcessinventoryrequireshandling,space,$$,people,andpaperwork.WaystoOvercome:SynchronizeworkflowtoreduceaccumulationShortensetuptimeReduceleadtimeCellularlayoutsZeroQualityDefectsReducingallotherwastesreducesthewasteofinventory43InventoryExcessinventoryrequWaitingWaitingforupstreamprocessesduetopoorlayout,unbalancedworkloadorequipmentdowntime.WaystoOvercome:SynchronizeworkflowBalanceunevenloadsbyflexibleworkersandequipmentImplementpreventivemaintenancetoeliminatemachinedown-time44WaitingWaitingforupstreamprTransportationTransportationaddsNovaluetotheproduct.Ratherthanimprovethetransportation:ReduceitEliminateit.WaystoOvercome:Establishlayoutandlocationswhichreducesoreliminatestransportation45TransportationTransportationaUnnecessaryProcessingSamedataenteredinto3differentinformationsystems.(SAP,Access,Excel)Allunnecessary,orNon-ValueAdded,processingstepsshouldbeeliminatedWaystoOvercome:QuestionifprocessisnecessaryatallSimplifyUseStandardWorkReduceHandoffs/approvals46UnnecessaryProcessingSamedatUnnecessaryMotionMotionofpeople,machines,andproductsiswaste.WaystoOvercome:Studymotionandeliminateorreducemotionthroughimprovedlayouts.CellularManufacturingRethinkmaterialstorageJob/TaskCombinations47UnnecessaryMotionMotionofpeDefects(Correction)Makingdefectiveproductispure(muda)waste.FocusonpreventingdefectsNotfindingandrepairingdefectsWaystoOvercome:Mistake-prooftopreventdefectsNeverPassdefectsStandardWork48Defects(Correction)MakingdeWasteofUnderutilizingPeopleTheeighthwasteisnotfullyutilizingthetimeandtalentsofpeople.Whoarethe“real”experts?andwhatdotheyknow?49WasteofUnderutilizingPeoplePurposeofValueStreamMappingThepurposeofthevaluestreammapistolookatthebigpictureandtodevelopa“future-state”mapbyeliminatingallnon-valueaddedactivitiesandminimizingallnon-value-addedbutrequiredactivities.50PurposeofValueStreamMappinBasicCurrentStateMAPPINGTIPS1Cross-functionalTeamcompletesthemapStartatthecustomerendWalktheactualpathwaysofbothmaterialandinformationflow.Drawbyhandinpencil.51BasicCurrentStateMAPPINGTIValueStreamMappingIcons

ProcessIcons52ValueStreamMappingIcons

ProValueStreamMappingIcons

InformationFlowIcons53ValueStreamMappingIcons

Inf5423ProductionLeadTime=23.5daysValueAddedTime=184SecondsFrom"LearningtoSee"byMikeRotherandJohnShook

CurrentStateMap55ProductionLeadTime=23.5dayFutureStateQuestionsHowdowefocusontheLeadtime?UnderstandthetakttimeWhatareaintheprocesstriggersproduction?Willwebuildtoshippingortoasupermarket?Wherecanweusecontinuousflow?WhatitemsorEventsrequireProcessMapsHowdowesimplifyWheredowereducetravel&redundancy?Whatprocessimprovementscanwedo?

56FutureStateQuestionsHowdow•UsethelistoffuturestatequestionsHaveyourcross-functionalgroupbrainstormUtilize“outside”folksandyourselftoquestioneverythingYoucansketchfuturestateideasatthetabletodiscussIfyouwishuseanoverheadasimpletransparenciesbyhandtoshowyourideasAfteryouhaveidentifiedalloftheimprovementsandopportunitieswhatwouldyourmaplooklikeYoumayreviseyourmapseveraltimesasyousimpli

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