Value Stream Mapping

October 3rd, 2011 No comments

Value Stream MappingBusiness processes are similar to a river flowing in a natural direction and carrying information from point A to point B. Value Stream Mapping (VSM) is one of the techniques used in Lean Six Sigma for identifying areas of waste that need to be avoided in both manufacturing as well as office business processes. Aside from identifying areas of waste, VSM also helps in streamlining business processes for achieving higher productivity. VSM is based on scientifically proven methods, making it necessary for organization to employ profession Six Sigma consultants (VSM specialists) during the implementation stage.

The Initial Process

Implementing VSM is a long drawn process where the first step involves mapping the current flow of materials or information in key business processes of an organization. The mapping is done with the help of flowcharts that depict the flow of goods or information from one end to another. The flowchart also contains information about the average time taken for the completion of various sub processes. For generating a comprehensive flowchart, consultants often gather inputs from business heads, floor managers or factory workers. While creating the flowchart, key sub-processes are highlighted using specific icons. This helps in pinpointing areas where waste and inconsistencies are happening. The flowchart also helps in understanding the complexity of a business process, which needs to be simplified for increasing efficiency.

Future State of Value Stream Mapping

In the next step, VSM consultants discuss each step depicted in the flowchart with the management for finding out ways that would streamline and optimize the whole business process. In Six Sigma terminology, this is referred to as Future State Value Stream Mapping (FSVSM). A number of methods can be used during FSVSM process but only those need be selected that help in streamlining processes without affecting the day-to-day operations of an organization. One such method is Cellular Manufacturing, which can be used during FSVSM. Although it is a simple concept, it requires adequate planning on part of the consultants as well as the management. Takt Time is another method that is used for evaluating ‘lead-time’ of manufactured goods or services rendered. This method is commonly used in organizations where the main objective is to deliver goods or services in time, for e.g. courier companies. Another method is known as Kanban, which forms a part of Just In Time (JIT) manufacturing system. It helps in maintaining low inventory levels and work in progress without affecting the quality or volume of manufactured goods.

Effectiveness in Automotive and Other Manufacturing Industries

VSM has proven to be very effective in organizations that make use of large and complex assembly line manufacturing processes. Automobile manufacturing companies are probably the best examples as far as the effectiveness of VSM is concerned. Top automobile companies such as Ford and Toyota have successfully implemented VSM in their business processes, which have in turn helped these companies in manufacturing high quality products while reducing costs at the same time.

Although concepts of VSM are applicable in all types of manufacturing organizations, companies other than automobile companies may find it a little difficult to implement VSM word for word. Some consultants also feel that benefits associated with VSM are sometimes over-hyped when it comes to implementing VSM in non-automotive companies. Personal opinions may vary but what is certain is that VSM does help in reducing waste if implemented properly.

We suggest you to check out on lean software development and six sigma methodology.

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The Toyota Lean Manufacturing System

October 3rd, 2011 No comments

Toyota Production SystemIn Japan, the Toyota lean manufacturing system is referencing system of the standard lean manufacturing. The Toyota Production System (TPS) in Japan was already evolved from its beginning before it developed in North America. Kaizen, kanban or andon are Japanese terms being used in the lean manufacturing system in North America and even all over the globe. Every manufacturing system available in every country is using these Japanese terms originated from the Toyota lean manufacturing system.

The Value of the Toyota Lean Manufacturing System

The heart of the Toyota lean manufacturing system is value. Value is a particular customer desires to buy or even to pay, that is value means.  In the Toyota lean manufacturing system if there is a value then there is non-value as well. All aspects of the Toyota lean manufacturing processes are considered a wasted or of no value that is non value is all about.

The Toyota lean manufacturing system basically as an objective to acknowledge and eliminating the activities that are of no value while to be used as a tool in focusing all energies or resources in producing certain value-added characteristics.

The Toyota Lean Manufacturing System

Some sort of codification of several ideas into a set of workable harmonies is the Toyota lean manufacturing is about. To identify a particular customer and what or how value to the customer is is a system for a company who is adopted the Toyota lean manufacturing system. Therefore the employees and the companies can focus their energies into adding value to the goods guided by the Toyota manufacturing system.

The Toyota lean manufacturing system will be able to add value to the goods or product by describing the existing manufacturing process to the demands of the customer. The shareholders of the companies, the employee and the customers will all be satisfied eventually.

The Waste in the Toyota Lean Manufacturing System

To improve manufacturing processes the Toyota lean manufacturing system faces many obstacles in its aims. Although all energies and focuses must be directed towards the valued goods as wanted by the customer the waste has become the Toyota lean manufacturing system’s focus.  Objects are previous manufacturing process has categorized and defined wastes.

To expand this view into meaning that wasted are not only objects can be process of the manufacturing system however that is the Toyota lean manufacturing system taught.  The relationship between the end customers and resource is the Toyota lean manufacturing system rather defines waste in terms.

A waste for the Toyota lean manufacturing system therefore is anything which is not of interest to the customer but incurs expense to the organization.

Continuous improvement for all it process is what the Toyota manufacturing system keep pursuing. To improve the manufacturing process any looping process or redundant will have to be replaced or terminated.  Any changes are allowed by the Toyota lean manufacturing system itself to be adaptive and to be open.  Instant and immediate gains are achieved and acquired by identifying what wastes existing in the value stream.

The Plan of Toyota Lean Manufacturing System

By reducing the costs that can be incurred the Toyota lean manufacturing system lays out plan increase the profitability of companies. Value is done by tagging and knowing what the customers identify.  Thus reducing or eliminating any objects or any processes do not align with this value or do not add value to the object.

Then it can direct cost savings by eliminating wasted in the system when a company adopts the Toyota lean manufacturing system.

Companies can see the following improvements in their company by using the Toyota lean manufacturing system as soon as possible.

  • An increased productivity and morale of the employee
  • To reduce defects on the goods an improved delivery causing the satisfaction for the customer.
  • The goods will be in the market faster.

The Toyota lean manufacturing system is more focus in customer oriented as was said previously.

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The Advantages of Lean Manufacturing

October 3rd, 2011 No comments

Lean Manufacturing PrinciplesCompany aims to reduce unproductive and unnecessary tasks, behaviors in the work environment, activities by implementing strategies, techniques and initiatives is the process of lean manufacturing. Every organization is currently facing challenges to be able to keep their efficiency due to political and economy situation affecting all nations.

Company competitiveness, target boost, operational cost reduces can be achieved in lean manufacturing. Transportation, over production, scrap and defects, inventory, waiting, motion and over processing are “seven of waste” within the work environment are not totally eliminated but to alleviate them.

These are advantages of adopting lean manufacturing principles

By implementing lean manufacturing strategies and techniques, manufacturing time identified by lean manufacturing experts can be reduced.

Laborer wages, operational cost incurred from the use of energy ill significantly reduced when the manufacturing lead time is lowered. Generate savings from lower costs, widen their margins, increase earnings can helped by lean manufacturing.

Lean manufacturing effectively and clearly exhibit working space which is one of basic and primary factors that keep operations business going. By adopting effective and good lean manufacturing strategies and techniques, human resources and labor experts can estimate 5% to 30% of company physical floor space.

Perhaps your thought says the figures are miniscule and small, in fact that will significantly contribute to more savings and more efficiency. All companies will surely look after this kind of advantage. The manufacturing productivity can be increased as much as 75 percent to 125 percent in general if companies adhering and implementing to lean manufacturing practices.

The principle of Lean manufacturing processes is to target time and efforts.

Worker can be helped to do their tasks with much comfort and smooth pacing by elimination disturbing and unnecessary objects in the work place, practice, behavior and wastes. Lean manufacturing is necessary for companies to be able to achieve maximized productivity when workers work without any interruptions and distractions.

To profit relationships is the advantages in terms of waste.

To efficiently and gradually help raise up and boost earning and profits in companies is by reduction and elimination of wastes. The Company and its personnel can be helped by focus on demands and requirement of the customers if elimination unproductive activities and wastes, behaviors, tasks and objects in the work place. Sales will surely rise when customer satisfaction is achieved, that is the advantage of it. To improve services and the product offered to the customers can be established by a good relationship with them.

To achieve a good client or customer relations can be helped by lean manufacturing.

Lean structuring, rationalized and streamlined of the organization is another advantage of adopting lean manufacturing techniques among various companies. To help companies reduce labor costs and lead to generate savings eventually can be helped the elimination unnecessary and excess job positions. The Companies that adopting and practicing lean manufacturing surely brings that advantage of leanness upon organizations.

Culture Improvement Advantage

The conflicts, issues and problems within various companies around the world are caused by implementing and practicing different cultures. The cultures are standardized in lean manufacturing therefore in not eliminated unfavorable behaviors and practices of both management and the employees can be reduced.

Lean manufacturing makes the difference between personnel and management reach to a verging point in term of cultures adopted by companies which is the greatest advantage by companies who adopted lean manufacturing in terms of cultures.

Thus companies should really implement lean manufacturing companies in order to gain its advantages.

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