Theory and manual of the value chain

PRESENTATION

What is intended with this manual is that it will serve in the future as reference material and didactic support that will be in the library of the UANE school (Universidad Autónoma del Noreste).

Which we believe will be of great use to students, especially engineering students.

OBJECTIVE

At the end of this value chain manual, the student of this school (UANE) will be in constant learning in recent areas or subjects so that in the not too distant future a good engineer will be instructed.

CHAPTER I

VALUE CHAIN

It is a tool which helps us to identify sources of competitive advantage. The purpose is that in the activities carried out within a company they can contribute to a good improvement and the aforementioned potential competitive advantage.

It was described and popularized by Michael Poter.

Our production line and activities (including for all types of processes up to communication within the same employees):

Purposes:

Identify the activities of added and non-added value which tells us that the added value is that in which all the activities of transformation of a product and those of non-added are those in which although they are present it does not affect or does not transform of any kind to the product itself, an example of this is to store, transport, inspections, etc. Value chain are all the steps, whether added or non-added value, required for the transformation and taking the raw material to the customer.

VALUE CHAIN MAPPING

WE WILL FOLLOW THE RAW MATERIAL UNTIL THE OPERATIONS:

THE VALUE CHAIN MAPPING TOOL IS USED:

TABLE TO IDENTIFY THE PRODUCT FAMILIES:

	EQUIPMENT AND PROCESS STEPS
SOL 1	SOL2	RET. BURR	PAINTING	ASSEMBLY	SELECT TEST
PRODCT.	one	X		X	X	X
two	X		X	X	X
3		X			X	X
4	X				X
5	X			X	X

VALUE CHAIN:

The steps that companies follow in their continuous improvement processes are the following:

Find a change agent.

Find a teacher (instructor who can take your learning curve).

Create a crisis to motivate an action plan throughout the company.

But all these companies have jumped to a step that is:

Take something important and start eliminating waste quickly.

This is the most critical and is the one that all companies overlook it. Fully map the value chain of all product families, unfortunately, it is found that very few companies have followed the suggestion to carry out this step.

WIP: work in process (work in process) everything that is in process which is not raw material and finished product.

Kaizen offensive or continuous improvement activities. These well-intentioned activities or exercises to fix a small part of the value chain of each product add value to only a small part of the entire chain.

But then this flow of value (value added activities) is taken into inventory growth and deteriorates the next step in the value chain.

Example:

There will not be improvements in the service and quality of customers, there will be no benefits for the supplier, there will be limited effectiveness as well as the waste control standards of the entire value chain since it is near or around said operation improved will be seen distributed.

What is value chain mapping?

A value chain is all the actions of both added and non-added value that are required to take a product through the essential channels to do:

That the product flows from the raw material to the customer's hands.

That the flow is designed from concept to launch.

Thinking from the perspective of the value chain means working on the whole not only on individual processes and thus improving the whole and not just one part.

Our analysis will understand the flow of plant distribution (door-to-door) including landings to customer plants and parts of suppliers.

The leader in value chain mapping

note: The value strean manager

To move away from functions you need a person with responsibilities and leadership to understand a product family, its value chain and thus improve it. It is suggested that this person have the ability to report to the senior management of your locality. In this way he will have the strength to make the change happen.

TYPES OF KAIZEN

EPISODE 2

TRAINING TO analyze a value chain.

Objective:

1.- Introduce the elaboration of a map of the value chain in a way About the facilities.

2.- Develop their ability to "see the flow" and design future states of a Value Chain

VALUE CHAIN IMPROVEMENT AND PROCESS IMPROVEMENT

Value chain: These are all the steps, both VA and NPV required, to take the product from raw material to the customer.

PREPARATION OF A VALUE CHAIN MAP

A) Follow the production sequence of a product, from start to finish, and draw a visual representation of each process in the material and information flows.

B) Then draw using icons "a future state map" of how the value should flow.

USING THE VALUE CHAIN MAP AS A TOOL

Understanding how the plant actually works. The basis for the future state.

Designing a lean flow.

FOCUS ON A PRODUCT FAMILY

Determine the path of the product family:

Steps and similar assembly equipment.

VALUE CHAIN MANAGERS

Every value chain needs a value chain manager.

Assign responsibility for mapping the future state and realizing lean value chains to line managers with the ability to make change across functional and departmental boundaries.

LEVELS OF A VALUE CHAIN

CURRENT STATE DRAWING

An understanding of how the plant currently works.

Material and information flowsDraw using iconsStart with the 'door to door' flow You must go through the flow and get current states (Not standard hours and draw by hand, with pencil) The basis of the future state

«ACME STAMP» DATA GROUP

The stamping company acme produces various components for vehicle assembly parts.

This case concerns a single product family: a sub-assembly of steel brackets in two types: an assembly for the left and one for the right for the same car model.

These components are shipped to the customer.

Production processes:

For this family of products they involve sealing a metal part followed by welding and subsequent assembly. The components are then stored and shipped to the vehicle assembly plant on a daily basis. Switching between the "LH" type (left hand drive) and the type «RH» (driving on the right) the brackets require a 1 hour change in sealing and a change of model of 10 minutes of welding processes. The steel rolls are supplied by the company of Michigan steels, and deliveries are Tuesdays and Thursdays.

Customer requirements:

18,400 pieces per month 12,000 "LH" type 6,400 per month "RH" type The plant operates in 2 shifts Returnable packages with 20 brackets in a tray and up to 10 trays per pallet. A daily shipment from the assembly plant per truck.

Working time:

20 days per month2 operating shifts in all production departments8 hours each shift, with overtime if necessary2 breaks of 10 min. for each shift Process manual stops during breaks Unpaid meal

The production control department:

Receives the customer's forecast on 90/60/30 and enters them into their MRP. Issues the 6-week forecast to the Michigan steel company via MRP. Secures the steel coil weekly by faxing an order to the company of Michigan steel Receives a daily customer order Generates weekly departmental MRP requirements based on customer orders, WIP inventory levels, F / G inventory levels, and anticipated waste and downtime Issue weekly production schedules for The sealing station, the welding station and the assembly station Issues the shipment schedule to the shipping department daily.

Process information:

The whole process occurs in the following order and each part goes through all the processes.

1.- Stamping (the press makes parts for many acme products)

The 200 ton automated press feeds automatically Cycle time: 1 second (60 pieces per minute) Model change: 1 hour (piece by piece) Machine reliability: 85% Observed inventory:

2.- Welding 1

Process manual with one operator Cycle time: 39 seconds Model change time: 10 minutes Machine reliability: 100% Observed inventory:

3.- Welding 2

Process manual with one operator Cycle Time: 46 seconds Model Change Time: 10 minutes Machine Reliability: 80% Observed Inventory:

4.-. Assemble 1

Process manual with one operator Cycle time: 62 seconds Model change time: none Machine reliability: 100% Observed Inventory:

5.-. Assemble 2

Process manual with one operator Cycle time: 40 seconds Model change time: none Reliability: 100% Finished merchandise inventory observed:

6.- Shipping Department

Removes the finished merchandise to the warehouse, stores them for the next truck shipment to the customer

TEAM TIPS

1. Draw a map of the current state.

He goes over the basic treatment steps and calculates the assembly in takt time in his team's work area, each drawing while in the plant. Be sure to draw both the material and information flows. Always present to the operators and digitals what you do: »The drawing of the total factory flows as part of the training session. »Show them your drawings. Select a draftsman and compare your current state map drawings in the team area. Calculate lead time versus process time. Make map high transparency and select presenters.

2. Presentation of your current state map:

All team members come up front with the presenter. Declare the product family and takt Present your high transparency. (Less than 5 minutes) Start with the customer and information flow within the facility. Declare lead time vs. process time What are the issues you see? Where did you find the push and overproduction? Share any future thoughts you have so far.

CHAPTER 3

OVERPRODUCTION

We can see the fundamental issues with batch-and-push mass production on the current state map of the ACME company. Each process in the value chain functions as an isolated island.

As a result, while the value-added time to produce a product is very short, the total time a product takes to travel the plant is very long.

To reduce this time, from raw material to finished product, rather than trying to eliminate waste. Many lean implementation efforts have been “seven-waste,” the chasers of waste.

Once the mass production problems have been viewed in a way that reveals the problems at the root, the company can work on finding original solutions.

CHARACTERISTICS OF A VALUE CHAIN

What we really want to do is, lean manufacturing, get a process to do only what the next process needs, when it needs it.

What we try to do is link all the processes, from the final consumer to the raw material in a light flow, without deviations that generate short time, high quality and low costs.

So how within the facility can you get a process that produces only what the next process needs when it needs it?

Fortunately, we can follow Toyota's guiding steps…

TAKT TIME

Synchronize the production rhythm, so that it matches the sales rhythm.

Takt time = Time available per shift / Customer demand per shift

Example: = 27,000 sec / 455 pieces = 59 seconds

Outcome:

We have as a result that the client is buying this product every 59 seconds. The objective, to produce a product and its components.

Guide # 1: Production in your own time takt

The takt time is calculated by dividing the client's demands for each shift (in units), within your time available work (in seconds).

The takt time is used to synchronize the rhythm of production with the rhythm of sales, particularly in the pacemaker process.

Producing in takt time requires a great effort of concentration to:

Provide a rapid response to problems Eliminate causes of wasted time Eliminate time in model changes and assembly-type processes

Note:

In some industries, such as distribution, product styles, and industry processes, there can be some creativity that classifies them as "units" of customer demand. One solution is to define "units" as how much work can be done in the bottleneck process in a takt time of say 10 minutes.

Guide # 2: Develop a Continuous Flow When Possible

Continuous flow refers to the production of one part at a time, where each item is immediately passed from one process to the next without stagnation.

The icon that we use to indicate continuous flow is simply the process box. In your future state drawing, each process box should describe a flow area.

Sometimes you want to extend the limit of a pure continuous flow, because the process of connecting a continuous flow also appends all its lead times and lost times.

A good approach may be to start with the combination of continuous flow and some “pull / FIFO” (first-in and first-out push).

The continuous flow range is then extended as an improved reliability process, and the time changes are reduced to almost zero, and smaller.

Guide # 3: Use “supermarkets” for production control where continuous flow does not extend the chain

Some processes are designed to operate very fast or very slow cycle times and need to change models to make various family products (eg stamping, molding, die cutting). Some processes, as well as suppliers, are far away and ship in one piece at the same time, it is not realistic.

Guide # 4: Try to send the client the program of only one production process.

Through push supermarkets systems, you will typically need to program only one “door-to-door” point in the value chain.

Note that the material moves from the pacing process to the finished product, it needs to occur as flow.

With the use of products and workstations, the programming of a product will need to be increased.

Guide # 5: Distribute the production of different products even in overtime.

Most assembly departments are probably easier to schedule their long runs of a product type and avoiding model changes, but that creates serious problems for the rest of the value chain.

Balancing the mixed product, means the distribution of a different product over a period of time.

Example:

Instead of assembling type “A” products during the morning, and all type “B” products during the afternoon, balancing refers to repeatedly alternating the type “A” and type “B” models.

Future state map

Drawing the future state map

Future state map:

The purpose of value chain mapping is to highlight the main sources of waste and eliminate it through the implementation of a future state value chain that helps us make it happen in a short period of time. The objective is to build a production chain where individual processes are linked to the customer, in addition to the continuous flow of production, each process obtains the possible production that the customer needs when they need it.

Suppose we are working in a factory on the process of a product, a certain amount of waste in a value chain will be the result of product design, the processing of proven machinery and the remote location of some activities. These characteristics of the current state can probably be changed immediately. Unless you are involved in the introduction of a new product, the first iteration of our future state map should take the product designs, process technologies and at the given plant location, search and remove sources as soon as possible. waste that is not caused by these characteristics.

The most common way for people to draw a current state map is by following a list of questions. So that you develop the concepts of your future state, based on the answers to our questions, mark with red directly the ideas of your future state, about your current state. Once you have captured your ideas in this way, you can draw a future state map.

Key questions for the future state.

What is takt time?

Where can you use the continuous flow process?

Where will you need the supermarket system in order to get the production control process?

At what point in the production value chain (“the pacing process”) will you schedule production?

How will you level the production of mixed production in the pacemaker process?

What increment of work will you consistently release and eliminate the pacemaker process?

Drawing the future state map.

If we look once more at the current state map of the Acmé company, in the direction of the bracket column, what problem do we notice? Perhaps most striking are the large amounts of inventory, the disconnected processes driving production forward, and the driving time compared to the short process time.

Question 1.- What is the Acmé takt time for the chosen family product?

The calculation of the takt time begins with the available work time available for each change in the Acmé assembly area, which is 28,800 sec. (8hrs.) From here the time not worked is subtracted, which is, 2 breaks of 10 minutes per change. The customer demands 460 units per change which is then divided by the available working time to give a takt time of 60 seconds.

Available work time = 28,800 - 1,200 = 27,600 per change.

Available work time / Customer demand = 27,600 / 460 units per change.

Assembly takt time = 60 seconds.

The meaning of the takt time number is to know the customer's demand within his available working time. Acmé needs to produce a bracket every 60 seconds in its assembly process.

The takt time is a reference number defined by the customer, and cannot be modified by Acmé stamping machine.

Question 2.- Should Acmé build brackets for small companies or directly to shipments?

In Acmé, the brackets are small parts that vary in 2 ways.

Acmé can use the customer's 30-day forecast to determine the sum of the production capacity needed in the next period. Since the customer buys tray multiples of 20, this is the simple Kanban-sized option. Which is, each tray of 20 left and 20 right brackets, has a production Kanban in it.

Question 3.- Where can Acmé introduce continuous flow?

The stamping operation cycle is very fast and changes several times due to product lines. So, incorporating it into a continuous flow, which means slowing your cycle to the closest takt time and dedicating yourself to the bracket product family.

Examining the 2 assembly workstations, we note that their cycle is not far off and the takt time is close. These workstations are also dedicated to the bracket (product family), so seamless flow in assembly is certainly a possibility.

This prevents "Acmé" from using a continuous flow from the welding area to assembly.

REACHING THE FUTURE STATE

The estimate flow map is just a tool. Unless you achieve. The future state plotted - and achieve parts of it within a short period of time. Your estimate flow map is almost useless. This final section of "learning to see" discusses the development and use of a annual estimate flow plan and concludes with managerial guidelines for the development of simple estimate flows.

THE PLAN MAY BE A COMPACT DOCUMENT INCLUDING THE FOLLOWING TO REACH YOUR FLOW OF FUTURE STATUS ESTIMATES ITEMS

1.- Any detailed map at the process level that is necessary

2.- An annual estimate flow plan.

AN EXAMPLE OF FLOW CURVES OF ESTIMATES.

SUPPLIER SUPPLIER

PRODUCTION CONTROL PRODUCTION CONTROL CLIENT

CUSTOMER CURVE, FLOW STAGE (DIRECTION OF)

PACEMAKER CURVE LOOP.

FLOW / PACEMAKER LOOP

CURVE 1: PACEMAKER CURVE.

Goals;

Develop a continuous flow from welding to assembly (cell)

Optimize work items to reduce total cycle time.

Goals:

Eliminate welding installation-change time

Developing circulation systems with supermarkets for finished goods

(Delete programs).

Develop routes for material handlers between supermarkets and cells.

CURVE 2: STAMPING CURVE.

Goals:

Establish circulation system with the supermarket of stamped parts

(Delete the stamping program)

Goals:

Develop a circulation system with the supermarket of steel rolls.

Introduce daily supply of rolls.

CURVE 3: ROLL SUPPLIER CURVE

Goals:

Develop a circulation system with the supermarket of steel rolls.

Goal:

Only 1.5 days of roll inventory in the supermarket.

KABAN

It is defined as "A highly effective and efficient production system".

It means in Japanese: 'instruction label'. Its main function is to be a work order, that is, an automatic steering device that gives us information about what is going to be produced, in what quantity, by what means and how to transport it.

It has two main functions:

Production control.- Integration of the different processes and the development of a system. And… Process improvement.- Improvement in the different activities, such as elimination of waste, reduction of set-up, organization of the work area, preventive and productive maintenance, etc.

Basically KANBAN will serve us for the following:

1.- Be able to start any standard operation at any time.

2.- Give instructions based on the current conditions of the work area.

3.- Prevent unnecessary work from being added to orders already started and prevent excess unnecessary paperwork.

ANOTHER KANBAN FUNCTION

1.- Elimination of overproduction.

2.- Priority in production, the KANBAN with more importance is put first than the others.

3.- Material control is facilitated.

INFORMATION NEEDED ON A KANBAN LABEL

1.- Part number of the component and its description.

2.- Name / Number of the product.

3.- Required quantity.

4.- Type of material handling required.

5.- Where it should be stored when finished.

6.- Reorder point.

7.- Sequence of assembly / production of the product.

Advantages of using JIT and KANBAN systems.

1.- Reduction of inventory levels.

2. - Reduction of WIP (Work in Process).

3.- Reduction of downtime.

4.- Flexibility in the scheduling of production.

5.- Breaking down administrative barriers

6.- Teamwork and quality circles.

7.- Cleaning and maintenance (housekeeping).

8.- Provide fast and accurate information.

9.- Avoid overproduction.

10.- Minimize waste.

GLOSSARY

CLIENT: Person who regularly uses the services of a professional or company.

VALUE CHAIN: These are all actions of both added value and non-added value that are required to carry a product.

WORK STATION : Department in which a product is processed.

CURRENT STATE: Diagram of the plant in which it is in the way it is.

FUTURE STATUS: Diagram showing the desired improvements of our plant or company.

STANDARD PACKAGING The minimum that can be sent of product.

MATERIAL FLOW: The processes in which a product is produced.

INFORMATION FLOW Important data or references about our supplier or client.

CONTINUOUS FLOW: It refers to producing a piece in its moment or at the moment.

FIFO: First in, first out (first input, first output).

INVENTORY: Large establishment divided into departments, where the product is located to move to another product workstation also known as a warehouse.

KAISEN: The ongoing improvement that involves everyone - senior management, managers and workers. Kaizen is everyone's business.

KAIZEN FLOW: Kaizen flow map of the process value chain.

KAIZEN PROCESS: Kaizen of production elimination of waste.

MUDA: The kaizen system of continuous improvement has as one of its fundamental pillars the continuous fight in the elimination of waste and waste

SUPPLIER : Person or company that provides or supplies everything necessary for a purpose to large groups, associations, communities, etc.

TAKT TIME: It is how often you should produce a part, based on the windows, to meet customer requirements.

ADDED VALUE: Product flows from raw material to the customer's hands.

NO ADDED VALUE: That the flow is designed from its concept to its launch.

WIP: Work in process (work in the process) everything that is in process that is not raw material and finished product.

ANNEXES

TIPS OR RECOMMENDATIONS TO MAKE CURRENT STATE DIAGRAM:

1.- Always take the current state information as you walk through the flow of material and information for yourself.

2.- Start with a quick walk to the entire value chain ¨ door to door ¨.

3.- Begin in the Departures area and work your way back through the process. (It is the first thing the client observes).

4.- Take your chronometer and do not trust the standard times or any information that you do not obtain personally (do not assume what is happening).

5.- Map the entire value chain yourself.

6.- Always draw by hand with a pencil, always bring your sketch to the production floor.

INFORMATION NEEDED IN THE PROCESS BOXES:

C / t: cycle time of each operation.

C / o: model change time.

Uptime: time that the machine is working, optimal process time.

EPE: sizes of trading lots.

Number of operators.

Number of different products.

Pack size (how many products in the pack).

Actual work time.

Scrap percentage.

TIPS TO CALCULATE TAKT TIME:

Review the basic process Calculate the cycle time Always draw the floor Write ideas and improvements Calculate the total time with the improvement Make a chain transparency Everyone in the team must be in front for the minimum exposure 5 minutes with the client Identify problems Capture any future thoughts

CONDITIONS TO CALCULATE TAKT TIME:

A) You have to provide a quick response (within takt time) the problems.

B) Eliminate the causes of unplanned downtime.

C) Eliminate the model change time of the whole value chain.

BIBLIOGRAPHY

http: //www.computerworld.comLearning to see by James Womack, Bob Jones Editorial Shingo Prize (information).

CONCLUSION

With the development of the manual we learned how to handle it and the improvements that can be made within a plant in order to analyze each process that is carried out to see the errors within it and not only improve it but always be constantly change and never let it decline in any process to give a better service and quality.

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