How to depict, many processes flows at one VSM current state? And How Calculate the Lead Time?

After my previous blog publication about  “How to depict the Inventory or the Process Cycle Times on VSM when those are in parallel? The right way….”  http://alexsibaja.blogspot.mx/2014/06/how-to-depict-inventory-or-process.html .

I have received some question; in regards of “what’s the best way to depict a process that has many different flows? And how calculate the Lead Time?” Obviously without any use of VSM Software.

First of all; I always teach to teams the manual method; if you have the capital to buy VSM software and it’s really needed; buy it and used it.

I understand that in many books about VSM and Lean Manufacturing; there is the classic example of VSM current state with just one Straight Flow, but we need understand that the authors of those books  (very good books by the way) needs to give a clear and easy example; to their readers to understand the “Basic Concepts” of how to create and understand the VSM Current state and see the opportunities like Waste, Non – Value –Added, Overburden and Unevenness.

Even on some Lean Trainings (some of them very expensive by the way) always shown a VSM Current State easy and straight flow, but again it’s for academic purpose.

The problem starts, when you return to your company, to see the production floor, and you just not have any Idea where to start, because the real process is very complicated and when you compare it with your training courses notes (VSM example) it's just doesn't match.

On real life, when you are analyzing a company, the processes may be very bad with a lot cruises between them, and different process flows that goes and comes; and you could make the mistake to depict the Current process as in the books or in the Trainings  (just one straight Flow) and not reflecting the reality; that at the end is the purpose of the VSM current state, to show the problems.

That’s why I always recommend depict the VSM as one Instantaneous Picture; as its is; that reflects all the process flows, mix of products, the comes and goes of products and flows etc. as much as possible. I also recommend to my teams; to read many books from different authors doesn't matter are from same subject; the authors experience and the examples can be very different from each other’s.

Here one example of VSM current state, that is not straight, please see, how it is draw.

Obviously; now is more complicated calculate the Lead Time right? But there is an easy way to do it:

Lead Time = [(Total WIP  pcs X Takt Time)]+ [Total Cycle Time]

And must important, practice on real life, forget about, games or simulations, go to Genba and see real flow, go and see for your self to thoroughly understand the situation (Genchi Genbutsu). 

You can at pictures to VSM if you want.

Classic example;

Then all you need to do is creates the Future VSM, remember; there is not just one Future State, there are phases.

Kaikaku カイカク- Steps “Radical Improvement or Change”.

As consultant, I have recommended to my customer different approaches or methods to reach the Lean Manufacturing Benefits as soon as possible, and in some special situation I have run a Kaikaku event rather that kaizens events.

Why Kaikaku?

To assure that every company remains competitive, Kaizen Efforts (dashed line) should be complimented with elements of revolutionary change or Kaikaku . The solid line above explains how this will take the company, to Global Lean Enterprise.

Without periodic Kaikaku efforts, our efforts at continuous improvements will be “too little, too late”.

The Kaikaku’s scope may be a Door to Door or End to End changes on the VSM (from current to future state), that means all the processes must be changed at one time since Material Receiving WH, Production Lines and Shipping Area (you may do this based on Customers or Products lines); or just one loop of the VSM plan transformation; but the all plant at the same time (as example; transforms all the production straight lines to U Cell layout in just one week – based on model line ofcourse).

Kaikaku proceeds in 4 phases:

1.   Set based: Training on “Deep” Lean Manufacturing Methods to clearly define the Goals , Objectives and Metrics , - for KPO team. Diagnostic and Planning – 1 week

2.   3P Kaizen: 3P as one of the most powerful and transformative Lean concepts leading to Kaikaku , offers potential to make "quantum leap” - for KPO Leaders and Management staff. Lean Design – 1 week Phase 1 & 2

3.   Plan Execution : Execute the End to End physical transformation , “Kaizen week” based on 3P design results. Lean Implementation. 1week preparation + 1week kaikaku

4.   Lean Transformation Support: SGA  teams gets in action to adjust the opportunities identified after main transformation  happened , on this phase the teams creates the specific methods that apply to their normal operation , however the original lean design   is maintained by the GM using the Genba walks. Lean sustaining  - 4 weeks.

1.- Set based: Training on “Deep” Lean Manufacturing Methods to clearly define the Goals , Objectives and Metrics , - for KPO team. Diagnostic and Planning – 1 week Phase 1 & 2  , NOT  production disruption

2.-  “3P Kaizen” :  3P as one of the most powerful and transformative Lean concepts leading to Kaikaku , offers potential to make "quantum leap” - for KPO (Kaizen Promotion Office) Leaders and Management staff. Lean Design – 1 week Phase 1 & 2  , NOT  production disruption

3.-  Plan Execution : Execute the End to End physical transformation , “Kaizen week” based on 3P design results. Lean Implementation. 1week preparation + 1week kaikaku.

4.- Lean Transformation Support: SGA (Small Groups Activities)  teams gets in action to adjust the opportunities identified after main transformation  happened , on this phase the teams creates the specific methods that apply to their normal operation , however the original Lean Design   is maintained by the GM using the Genba walks. Lean sustaining  - 4 weeks

Sustaining Actions.

• ·      Validate the actual data against the target set in the Team Charter in terms of Cost, Quality, and Delivery Schedule OTD.
• ·      Present to Evaluation Committee and Prepare follow up Kaizen Newspaper.
• ·      Present the line to evaluation Management team.
• ·       Identify further kaizen Needs and prepare Kaizen Newspaper.
• ·       Document new innovations in detail info/ pictures and share with KPO to Yokoten (Deploy or Copy) in other plants if its apply.
• ·      Remember …..Lean Journey Continues…

Kaizen Teian: The Ideas are worthless if they are not implemented; this is the right approach for productivity improvement.

I have visited some organizations that have implemented the Employee Suggestions System, but many of them have not obtained the benefits of this system directly reflected on P&L , and when I have reviewed the numbers of ideas summited v/s numbers of ideas accepted and implemented the rate is less than 3 %.

I have explained about their true concept of Ideas Suggestion System must be based on Kaizen Teian , that basically promotes the ideas implementations rather than just suggest ideas.

Kaizen Teian means 改善 (Kaizen): improvement and 提案 (Teian): proposal . Kaizen Teian is used for developing systems for Continuous Improvement Through Employee Suggestions or proposals but those must be implemented ASAP and must promotes small and easy improvements in order that the same operators are capable to implemented by their own. This Japanese-style proposal system for continuous improvement — is the most direct and effective method for channeling employees’ creative energies and hands-on insight.

Kaizen Teian cycle

The organizations competitive advantage is determined by the quality of their products, which is directly, correlated with the employee’s knowledge, attitude, and commitment at all the levels of the organization. As you know the creative ability is present in everyone, needing only to be developed through some system.

The company culture must be transform; to allow make grow and cultivate the creativity ability in all employees.

The Kaizen Teian system is created to promote participation from as many employees as possible. It has much higher participation than classic suggestion systems. In case of Kaizen Teian system most proposals are used, receive some kind of evaluation and will be rewarded with some kind of bonus. Even small proposal and ideas are welcomed and carefully collected, because even small proposal are considered to have educational values.

What needs to be done is to motivate people at all level to participate, write suggestions/proposals, implement, review/audit the same and award or give commendations. It this is done successful the Kaizen Teian will run smoothly and one idea will lead to another one and so on.

Benefits of implementing Kaizen Teian

1.            Improves profit

2.            Improves customer satisfaction

3.            Discovers hidden talents

4.            Promotes self-development

5.            Improves the motivation and morale of employees at each level

6.            Enhances communication between top bottom level

7.            Helps to build and improve team work

8.            Creates ownership and trust within each other

9.            Engages and empowers employees at all levels

10.        And improves the overall work environment

Here some examples of Kaizen Teian Implemented.

On the other side Western suggestions systems are designed to promote excellent, big result ideas, which are rewarded accordingly. These being stricter as compared to Kaizen Teian results in rejecting proposal as unsuitable after evaluation and employees often feel frustrated by the system and often do not bother to come up with suggestions at all. So the major drawback of Suggestion System is that such a system consumes time, and such a leisurely approach is no longer practical. What is required in this competitive era is promptness i.e. quick decision, judgment and implementation. And for this reason the focus has shifted to Kaizen Teian.

The following Table clearly presents the differences between Kaizen-Teian systems and Western type suggestions systems:

Image Source: http://www.michailolidis.gr

To conclude Kaizen Teian is a system or a formalized mechanism that encourages employees to contribute constructive ideas for improving the organization in which they work, and is beyond if the companies change the managers or administration.