Using Value Stream Mapping to identify key waste elimination opportunities, NCR, India-based IBG has improved its production lead time 56.11 per cent. Above all, in the process the percentage of Value Add time improved by a whopping 88.33 per cent, while the processing time was brought down by 27.73 per cent. The Value Stream Mapping procedure also unveiled that the WIP could be reduced by 65 per cent through Production Kanbans. The iron-fist control on WIP manifested as a 55 per cent reduction in reworks. The introspection brought upon by Value Stream Mapping also helped the company reduce the transportation distance of its goods by 30 per cent and the cost involved in transportation by 42 per cent. “The Value Stream Maps furnished by The IdeaSmith team helped us visualize the silos of information and procedures that were slowing down IBG’s path to success and the future state map presented enthralling potential. The IdeaSmith not only helped us identify our potential, but also helped us realize it,” highlights Chandani Sachdeva, MD, IBG.
Product: A typical jacket product family with; Daily customer demand of 700 pieces; Weekly shipment; Daily working hours are 8 hours(480 minutes) excluding lunch and tea breaks.
Madurai, India-based Penguin Apparels, another The IdeaSmith client, registered similarly stupendous findings and achievements. The factory improved its total cycle time by 47 per cent, lead time by 51 per cent and WIP by 57 days. Using Six Sigma, the defect rate was brought down by 63 per cent while the output went up by 23 per cent. Moreover, even the transportation distance was tamed by 61 per cent and the proportion of Value Add time was improved by 26 per cent. “Value Steam Mapping presented to us by The IdeaSmith was exciting as well as unnerving because of the possibilities it presented. But the journey was anchored by The IdeaSmith team,” averred Anbukani, Director, Penguin Apparels.
Penguin Apparels Essentials:
Product: A typical shirt product family; Daily customer demand of 750 pieces; Weekly shipment; Daily working hours are 8 hours (480 minutes) excluding lunch and tea breaks.
Understanding Value Stream Mapping
Value stream mapping is a very powerful tool used to identify waste in the entire value stream, defined as a set of activities required to convert raw material into finished goods. Touted to be a simple material and information flow analysis, the diagram traces the path of production and identifies key waste elimination opportunities. In most cases, but not all, managing inventory across the path of production can also address the top issues ailing any factory.
Why Value Stream Mapping delivers results?
It is important to understand that Value Stream Mapping in itself does not lead to tectonic shifts in the factory. Instead, a well-researched and well-developed Value Stream Map accurately identifies the hidden factory. Furthermore, the Current State Value Stream Map reports the floor activities as-is, i.e. simply recording the time spent at each stop made by the product. Based on such objective reporting and recording, the observer exposed to the aberrations in the system. E.g. at IBG, the aberration lied in the fact that WIP between sections, within sections and inventory in raw material (Fabric stores) and finished goods was high. Whereas at Penguin Apparels, the Value Stream Mapping highlighted the toxicity of setting the ironing and packaging departments in one line along with a high WIP between the sewing lines. In fact, at Penguin Apparels, the root cause pointed at a skill balancing issue. It was seen that most of the operators were skilled in only one or two operation, which alongside being responsible for decreasing production, also posed to be one of the biggest hurdle for increasing the model number.
How to analyse your Value Stream Map?
Once analyzing the Value Stream Map, the first aspect to be analysed is the capacity constraints i.e. if the cycle time is lower than (or equal to, at max) the takt time in all sections mapped. In case, the cycle time is lower than the takt time, then there is no capacity constraint ailing the operations and the departments. The team must now focus its energies and acumen on identifying and resolving issues such as machine reliability, inventory levels, defect rates, transportation and related costs, etc.