By Daniel T. Jones, James P. Womack
Winner of the 2003 Shingo Prize!By deciding on all of the steps and time required to maneuver a regular product from uncooked fabrics to accomplished items, the authors express that just about ninety percentage of the activities and 99.99 percentage of the time required for the worth chain's present nation create no worth. furthermore, the mapping approach truly indicates call for amplification of orders as they commute up the worth circulate, gradually transforming into caliber difficulties, and gradually deteriorating transport functionality at each aspect up circulation from the customer.The mapping method takes managers step by step via an development approach that converts the conventional price move of remoted operations into a fantastic future-state price movement within which worth flows from uncooked fabrics to shopper in exactly 6 percentage of the time formerly wanted. The dramatically enhanced worth movement additionally removes pointless delivery hyperlinks, inventories, and handoffs, the foremost drivers of hidden connectivity costs.Applying the strategy to a pragmatic instance, the authors convey how 4 businesses sharing a price circulation can create a win-win-win-win-win destiny during which all people, together with the tip shopper, might be at an advantage.
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Additional info for Seeing the Whole: Mapping the Extended Value Stream (Lean Enterprise Institute)
Example text
3 Shifts m. ~ r::I:J:-=D~ RM56h. WIP110h. 25d. 0d. ) 4 21 (3) Value Creating = 8 Sters 26 " " 6 Pallets - = :3% ! Dock IPhaMotors r ~ Harlingen, TX 8 =@ 600 m. -~ ect/ve -v. x Day "-" 2000 m. 5hlp 6 atc h = 6 Pallets Defective = 3% % Orange, NJ 960Vehicles Defective = 1% RM 50 h WIP2h. 1 Ime In. 5 d. 5d. 107HT 5hip ~atc~ . 5d. 3 da y s Valu~ = 3281 sec. Creatlng Ti Ime 54 7 . m/n. e"e, ",,'" ",m 5 J. Mapping the Information Flovv The team has now completed mapping the physical flow of the product hut the value stream map is only half clone.
Total Steps Gar Company Cross-Dock: Alpha Motors, EI Pa so, TX 57. Unload truck 58. Cross-Dock 59. Store awaiting full truck 60. Reload truck for daily direct ship Value Total Value Creating Steps Time Create Time 10m 10m 12h 10m Transport link 6 61. Direct ship to West Orange, NJ by truck 96h (2000 miles) Gar Company's State Street Assembly Plant: Alpha Motors, West Orange, NJ 62. Formally receive 63. Convey to storage area 64. Store awaiting need 65. Convey to kitting area 66. Transfer to assembly bins 67.
Why does this growing variation exist? For the simple reasonsthat production problems occur in every plant (even the leanescl),transportproblems occur on every link, feedback on current conditions and amounts of product on hand is never completely accurate,and large minimum production and shipment quantities cause very smallchanges in the amounts needed downstreamto produce much largerchangesin the amountsrequested and produced upstream. To take the worst-case example, if ODewiper is discovered to be defective at the assembly plant and the re-order amount is just on the edge of ODenew pallet (containing 320 wipers in our example) the re-order will jump to 2 pallets -or a total of 640 wipers -even though a -as only ODeadditional wiper is needed.