Chapter 5

1. Chapter 5 Team Building Value Stream Mapping

2. Work Teams A group of people collaborating to achieve a common goal. “A team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.”

3. Success? Yes Success? Identify necessary skills Building the Team Identify people with these skills Talk to potential team members Negotiate with their supervisor Renegotiate with top management No Yes No Assemble the team Build fallback positions / Adjust schedules / Partial participation / Notify stakeholders of consequences

4. Characteristics of Effective Teams • High levels of two-way communication • Team members from diverse backgrounds • A clear sense of project mission • A productive understanding of team interdependencies • Cohesiveness  • A high level of trust • A shared sense of enthusiasm  • A common “results” orientation • Common goals and measurements • Team members know their role on the team

5. Reasons Why Teams Fail • Poorly developed or unclear goals • Poorly defined project team roles & interdependencies • Lack of project team motivation • Poor communication • Poor leadership • Turnover among project team members • Dysfunctional behavior or disruptive acts

6. Constraints on Building the Team It is important to consider the following constraints when staffing the project • Type of organizational structure • Employment agreements • Preference on project team members • Other projects • Priority of projects

7. Stages in Group Development • Stage 1 Tentative (Forming) – members become acquainted • Stage 2 Emotional (Storming) – conflict begins • Stage 3 Attainable (Norming) – members reach standard agreements • Stage 4 Mastery (Performing) – the work is performed • Adjourning – group disbands

8. Team Development Stages 5. Adjourning Convene Trust Flexible Supportive Confident Efficient High Morale Quiet Polite Guarded Impersonal Business-like High Morale 4. Performing 1. Forming Inclusion Productivity Productive Testing Organized Infighting Conflict over control Confrontational Alienation Personal agendas Low morale Establish procedures Develop team skills Confront issues Rebuilding morale Control 3. Norming Cooperation 2. Storming

9. Building High-Performing Teams Make the project team tangible • Use publicity • Encourage unique terminology & language Reward good behavior with non-monetary rewards • Flexible, creative, practical Develop a personal touch • Lead by example • Positive feedback for good performance • Be accessible & consistent

10. Tools for Identifying & Analyzing Problems • SOP • VSM • Histogram • Scatter Diagram • Control Chart • Process Capability Study • Error Proofing • Brainstorming • 5 Why’s • Defect Check Sheet • Pareto Chart • Process flowcharting • Cause & Effect Diagram

11. Analyze Measure Improve Control Continuous Improvement Plan • Plan – Do – Check – Act Model (PDCA) • Define – Measure – Analyze – Improve – Control Model (DMAIC)

12. Brainstorming 1. Clearly state the problem in the form of a question and make sure that all team members understand the question. 2. Allow each team member to present his or her ideas. 3. Record each suggestion exactly as it was stated. Make no preliminary judgments on ideas. 4. Decide which ideas should be acted upon first, which ones can wait, and which ones aren't applicable. 5. Decide how each idea will be acted upon. Determine who is responsible and when those actions will be done by. 6. Document all results for use in future meetings or as evidence that the problem is fixed. 7. Create a file somewhere in the department to document what problems have been fixed and what problems still need to be worked on. 8. If a project is generated, make sure that everyone understands who is Responsible, who is Accountable, who are the key Contacts, and whom we should keep Informed throughout the project.

13. Although this technique is called "5 Why’" you may find that you will need to ask the question fewer or more times than five before you find the issue related to a problem. 5 Why Analysis • A method of rapidly determining the root cause of a problem • Developed by Taiichi Ohno, he kept asking “why” until he was satisfied the answer showed him what was really the source of the problem • It generally took him 5 “whys” to get there • 5 Whys should be used by individuals or teams to quickly assess and determine the source of the problem

14. 5 Why Example Direct Cause My house was destroyed by fire Because the drapes caught on fire Why Event Why Because we had a fire in the fireplace Because the furnace did not work and it was cold Why Why Because the shut-off valve was broke Because the valve had a defective seal Why Root Cause

15. Direct Cause Event Contrib. Cause Basic reason for Event Look for the “Root Cause” Rarely is “operator error” an acceptable answer Root Cause

16. EVENT Why? Son comes home with “D” on test DIRECT CAUSE Didn’t know material Why? Out late with new girlfriend Didn’t Study. The Cause Chain CONTRIBUTING CAUSE ROOT CAUSE

17. Defect Check Sheet

18. Focus on the “Vital Few” The Pareto Chart • Alfredo Pareto (1848-1923) • 80-20 rule • Vital few & trivial many (Dr. Joseph Juran) Where would you focus your attention?

19. Pareto Diagram (cont.) Etching #1 Problem $$ wise Soldering #1 Problem Frequency wise

20. Process Flow Charting A process flow diagram (sometimes called a flowchart), is a visual representation of all the major steps in a process. It helps us understand the process better, identify critical or problem areas, and identify improvements. Non-value added steps should be identified and removed. Each step should be assessed with regard to both input and output variables. In building a process flow diagram, we will use five standard symbols.

21. Vendor Supplied Components and PC Boards Vendor Shaded area represents waste. (Hidden factory) Q.C. Repaired or Fail Use as is Pass Auto Insertion Q.C. Scrap/Rework Fail Pass Hand Assembly Fail Q.C. Pass Post Wave Q.C. Assembly Q.C. Auto Test Ship Pass Pass Pass Solder and Touch-Up Cleaning Fail Fail Scrap/Rework Fail Scrap/Rework Process Flow Chart

22. Levels of Maps Maps can be created for many different levels of the process. Just like highway maps… You can use a map of the USA… or if you need more detail, a map of the state... or if you need more detail, a map of the city. Mapping works much the same way. Depending on the detail you need, create the map at that level. If you need more detail, then create a more detailed map of the sub-process. High Level Detail

23. Cause and Effect Diagrams • Is a visual brainstorming tool to help visualize and categorize potential root causes • Causes are usually categorized into four to six headings, each with subsets that identify sources of variation • This tool allows you to question the ideas and assign a C-N-X based on if / how the potential cause is controlled

24. Cause and Effect Diagram • Represents meaningful relationships between an effect and its causes.

25. Cause & Effect Diagrama.k.a. Fishbone, Ishikawa Diagram

26. Cause and Effect Diagram with CNX

27. Cause & Effect C/N/X’s C =those variables which must be held constant and require standard operating procedures to insure consistency. Consider the following examples: the method used to enter information on a billing form, the method used to load material in a milling or drilling process, the autoclave temperature setting. N = those variables which are noise or uncontrolled variables and cannot be cheaply or easily held constant. Examples are room temperature or humidity. X = those variables considered to be key process (or experimental) variables to be tested in order to determine what effect each has on the outputs and what their optimal settings should be to achieve customer-desired performance.

28. Standard Operating Procedures (SOPs) • Are your instructions written clearly? • Are they written such that there is no misinterpretation? • Are the procedures considered “Best Practices” by all? • Are they documented in controlled documents recognized by our quality system?

29. Example of a “Poor” SOP

30. Histogram • Describes the variation in the process. • Graphically displays the process capability.

31. Scatter Diagram • Display values for two variables for a set of data. • Used to determine if a cause and effect relationship exist

32. Control Charts • a.k.a. Shewhart charts or process-behavior charts • An SPC tool used to determine whether or not a manufacturing or business process is in a state of statistical control. • Measure the effects from experimenting with the “Vital Few” variables • A technique for problem solving and the measuring the resulting quality improvement.

33. Control Charts

34. Lean Enterprise Workplace safety, order, cleanliness Flow and Pull Production Six Sigma Quality Empowered Teams Visual Management Pursuit of Perfection The workplace is safe, orderly, and very clean There is a relentless pursuit of perfection Member teams are empowered to make key decisions Visual Management to track performance and open the company to all people Products are built “Just In Time,” to customer rate based demand Six Sigma Quality is built into the product and the process The 5 step process • Specify value • Understand the value stream • Flow • Pull • Pursue perfection

35. Value Stream • The value stream identifies all of the company’s activities, both value added and non-value added from the supply of a product to its ultimate customer.

36. What is Value Stream Mapping? • A method of creating a “one page picture” of all of the processes that occur in the value stream. • Similar to process flow charting, VSM differs in that it includes both the material and information flows.

37. Why Use Value Stream Mapping? • It helps us to visualize product flow. • It helps us to “see” waste. • It shows the relationship between material and information flow. • The gap between current and future state maps forms the implementation plan towards creating a Lean business system. Eliminating business waste is not the problem, finding it is. -Taiichi Ohno

38. VSM Steps • Pick the product or product family to map (improve). • Create the “Current State” VSM. • Create the “Future State” VSM. • Develop an action plan to make the FSVSM the CSVSM.

39. VSM Step #1 • Pick the product or product family to map (improve). • Pick a value stream • VSM should focus on product/product families or series of processes where competitive pressures are high, customer satisfaction is low, or for products that represent the largest share of the sales volume • Best when they begin with an initial goal, such as, reducing product or service lead times • Gain executive sponsor approval

40. VSM Step #2 • Create the “Current State” VSM • Form a team and select a team leader • Educate the team in VSM methodology • Decide the scope of the VSM, and brainstorm the initial map • Get an initial walk through of the process • Use pencil • GO TO THE GEMBA! • Everyone creates an initial “rough draft” map • Walk the process – collect data – record what you see • Compare maps and determine any missing information • Build the final Current State VSM

41. Collect data on…. • Available time • Scrap rates • Resource availability • Variations • Software • Tools • Equipment • Cycle times • Changeover times • Inventory queues • Batch sizes • Number of Operators • Container sizes • Reports and forms

42. Drawing the Material Flow Icons required to draw the material flow. • Process box • Data box CVA 1 MILLING Cycle time = 50 seconds Changeover time = 1800 seconds Production Batch size=1 OEE = 75% Net available time = 27000 seconds

43. Material Flow - Guidelines • One box per process • Where processes are not linked, • check for inventory build up. • Ask: “How does the following process know what to take from this inventory next?”

44. Value Stream Lead-Time • Value Stream Lead-time = Inventory Qty Customer Demand • This gives you the value stream lead-time as seen through the eyes of the customer.

45. Milling Drilling I Cycle time 50 sec's Nat 20250 Sec’s OEE 75 % Cycle time 60 sec's NAT 20250 Sec’s OEE 75% 300 3.53 days 60 sec’s 50 sec’s Value Stream Lead-Time • Example • Inventory = 300 components • Customer Demand = 85 components per day • Value Stream lead time = 3.53 days Customer Demand = 85 p/day

46. VSM Step #3 • Create the “Future State” VSM • Begin with CSVSM “Starbursts” • Identify and prioritize changes • Draw the Future State Map • Identify and prioritize changes • Validate senior management support • Goal for improvement with realistic time frame for each targeted area of improvement

47. Identify and prioritize changes • Identify the opportunities to eliminate or reduce the non-value added activities • Dream about perfection • Identify and use best practices • Use the eight key questions • Be open to the concept of completely changing or eliminating the entire process Think

48. Key Questions for the Future State • Demand • What is the Takt Time? (Customer demand) • Should we build to ship or to replenish a supermarket? • Material Flow • Where can we use continuous flow? • Where are Kanban’s required? • Information Flow • What single point in the production chain (pacemaker process) will trigger production? • How will you level the production mix at the pacemaker process? • What increment of work will you release and take away at the pacemaker process? • Supporting Improvements • What process improvements will be necessary for the value stream to flow as your future state design specifies?

49. Customer Demand • Takt Time • “Takt” is a German word meaning rhythm or beat • Often associated with the “takt” a conductor sets with his orchestra • Like a heartbeat it should not be arrhythmic • Takt Time is a key principle in Lean enterprise • It sets the “beat” of the organization in synch with the customer Bach

50. What is Takt Time? • Operational Takt Time • The rate to which a product must be produced to meet the customers expectation for delivery • No more - No less Takt Time = available time total pieces required • Do not confuse cycle time with Takt Time Cycle time relates to what we can do Takt Time relates to what we need to do