Video Transcripts

9.4 Just-In-Time (JIT) Systems

VSM .Value Stream Mapping

Hi everyone, today’s video is to learn value stream mapping. There are three objectives.

The first objective is to draw the current state plan.

The second is to identify improvement opportunities.

And the third is to make a future state map.

But how do we do it?

I’ll tell you. We will show this by simulating a physical supply chain corresponding to the map on the screen.

Now, let us introduce the supply chain. The supply chain is about producing 2 varieties of these wheels: one is with a green cap, and one is with a yellow cap.

I will be the customer. I will give the order to Amrsha.

I’m the planner and the heart of the company. I take the order, make changes to it, and give it to Aishwarya.

I’m the supplier. I take the order from her, and I send the material to the receiving warehouse. I may also introduce some changes to achieve full load capacity of the truck.

Since I’m the planner, I also give the instruction to the departments of the company.

I’m Rashmi, and I received my order from the planner in the shop. My department procured the material from the receiving warehouse and our job is to stick these wheel caps to the wheels and keep it in the intermediary warehouse.

I’m Sakshi, I’m department two. My work is to attach a screw in the wheel.

I’m Shubhangi, and the operation here is to put the logo on the wheel and put it in the finished goods section. I also get my plan from Amrsha.

Can you see the correspondence between the physical simulation and the map? We’ve even tried to color code it for you.

Now that we have the process going in place, what else is missing? these details, we need the cycle time and the changeover time of each of these operations. Rashmi what is yours?

I have a cycle time of 10 seconds and a changeover time of one hour.

Sakshi.

My cycle time is 20 seconds and changeover time of two hours.

Shubhangi.

Well, I have to work according to the speed of the bottleneck, so my only work is to put the same drive logo, and that is why I have no changeover and my cycle time is of 10 seconds.

Great, let’s fill in the details now.

It is a combination of the information flow and the material flow. The dotted lines indicate the information, and the pink lines indicate the material’s flow.

So, what is the biggest advantage of VSM?

Kashyap, it is showing up non valuating activities and valuating activities in proportion to each other, you know the biggest non valuating activity, it is waiting, here is the waiting, that is the WIP contributed by these two.

The next step is to calculate the value adding and nonvalue adding time. Let’s start.

My value adding time is 10 seconds, but I have 15 inventory waiting.

So, how does it translate into time?

Each one would take 10 seconds, so 15 into 10, 150 seconds.

OK what about the next operation.

So, my value adding time is 20 seconds, and the inventory waiting is 7. So, total nonvalue adding time will come down to 140.

Alright so 20 seconds while waiting and 140 seconds of nonvalue adding. Great, Shubhangi.

So, my value adding time is just 10 seconds, and my inventory time is one, two, three. 3 into 10, 30 seconds.

So, now what I did was, I told you the time I put it up on the map. The triangle with an ‘I’ represents the inventory waiting, and this is the time that is waiting for, 4 into 10, 40 seconds for this process.

So, what will you do with this data?

Let me tell you. We will calculate the value adding ratio, where we will calculate the ratio, which is 40 above 370, which gives us 10.8% only.

That means almost 89% of the time is non value adding.

Yes.

Yeah, but it sleeps almost 90% of the time.

The current state map is now ready, it’s now ready, it’s on the diagram, and to understand it better, it’s also physically demonstrated.

This planner, she gave me so many changeovers! Doesn’t she realize I have a huge changeover time? I cannot finish this with a given plan, I’ll stick to whatever best I can do.

Since I’m the bottleneck of the process, I cannot sit idle, and I have to keep working with whatever I have.

What I get from Sakshi does not meet the plan. So, to utilize the capacity I produce what I get.

All these problem areas are the improvement opportunities which we can work upon. These improvement opportunities are shown by the starburst on the map. But how to work upon them?

Firstly, the planner makes only one plan and interacts only with the last operator. This creates the pull system of material flow.

I’ll be the happiest here.

Oh, and also we can add the supermarket and Kanban system here.

But what about the high changeover time?

We can use SMED.

And you can watch a video on SMED of us too on the same channel.

Now, this is our future state map and the change physical simulation. Amrsha will you tell us about it?

Sure, what I do according to this map is I give the order to the third operator. Here is your plan.

Thank you. So now, only I get the plan. So as soon as I start working on the piece, I take the Kanban card and put it in the Kanban order box.

So, now I will start working as per the common receipt. I will pull this much of material from the supermarket and start working on it, and I’ll also put this Kanban card to my previous operator.

Based on the Kanban, I can procure the material from the supermarket and start working on it, so using SMED my changeover time has drastically disappeared. I can produce whatever comes to me. Now that I’ve finished my operation, I take the Kanban card and the material and replenish the supermarket and wait for the next order.  

Here, we were able to achieve three things. The first, we could work with very less inventory. The second, is get down the non value adding time. And the third, that we were able to increase the value adding ratio.

I hope you understood by this physical simulation and diagram how to use the tool of value stream.