Exercice

ACME Case
Steps to design Future State VSM

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Three Stages of Lean Application

Demand
Takt time
Pitch
Buffer inventory
Safety inventory
Finished-goods
supermarket

Leveling

Flow
Continuous flow
Work cells
Line balancing
Standardized work
Quick changeover
Autonomous
maintenance
In-Process
supermarkets
Kanban system
FIFO lanes
Production scheduling

LEAN SYSTEM

Paces withdrawal
Heijunka (load
leveling)
Heijunka box
The runner

As you proceed though the stages, the common principles or goals are to;
Stabilized your process, reviewing customer demand, equipment capabilities, labor
balance, and material flow

Standardize your process and the work

Simplify through Kaizen, after you have stabilized and standardized processes.
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Creating a Lean Future State VSM

The eight questions to build a Lean Value Stream
1. What is the Takt time ?
2. Build directly to the shipping or to a finished goods
supermarket ?
3. Where can continuous flow be used ?
4. Where are pull systems needed ?
5. At what single point (the pacemaker) in the value stream
is the production scheduled and triggered?
6. How is the production mix leveled at the pacemaker?
7. How is the production volume leveled at the pacemaker?
8. What process improvements are necessary for the future
state to become a reality?

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ACME Future State

Demand Stage
1. Takt Time

Available production time as 460 minutes (510 total

available minutes minus 50 minutes of regularly scheduled
breaks) or 27,600 seconds.
Customer, Cord, requires 504 hoses daily (10,080 hoses per
month over a 20-day shipping month).
Takt time = 27,600 seconds (available production time)
504 hoses (required daily production quantity).
Takt time = 55 seconds per hose

Pitch

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Cord has requested shipments in containers that hold 24

units. The team calculates the pitch as:
Pitch = 55 seconds (takt time) x 24 units per container
(pack-out quantity)
Pitch = 1,320 seconds or 22 minutes
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ACME Future State

Demand Stage
2. Build directly to the shipping or to a finished goods
supermarket?

Buffer InventoryFinished goods available to meet

customer demand when customer ordering patterns, or
takt time, varies.
Safety InventoryFinished goods available to meet
customer demand when internal constraints or
inefficiencies disrupt process flow.
Buffer and safety inventories are a hedge against uncertainty.
They create enough extra inventory to allow you to meet
demand while you are implementing your kaizen plans.
In general, neither should exceed two days worth of finished
goods.

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ACME Future State

Flow
3. Where can continuous flow be used ?
Perform Line Balancing

Formula for Determining the Number of Operators

Number of operators = total processing time takt time
Number of operators = 150 (Processing time) 55 (takt time)
Number of operators = 2.7 operators (or 3 operators)
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ACME Future State

Flow
3. Where can continuous flow be used ?

The new OBC need to be develop with 3 operators that means:

Achieving a balanced line depends on applying the principles of
cell design.
The plan in the case is to keep machining as a stand-alone
operation with a PT of 45 seconds with one operator and
combine crimping, testing, and marking into one cell with a PT of
105 with 2 operators to achieve a total PT of 150 seconds.

The result of that new balanced line is show next slide.

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ACME Future State

Flow
3. Where can continuous flow be used ?

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ACME Future State

Flow
4. Where are pull systems needed ?

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Pull system is needed at the supermarket of finished

goods in order to pull on the cell in just in time.
Pull system will be put in front of the cell with an in
process supermarket to pull on the machining parts in
just in time
And an other pull system will be needed for raw
materials with a supermarket to give signal of
replenishment to supplier in just in time

ACME Future State

Supermarket inventory
Process Lead Time at the cell = 105 sec
Process lead Time at machining = 45 sec
Kanban formula
K = (Demand x (( Tw + Tp) * (1+ 10%))) C
In our case Tp = CT x lot size or container size (containers will not
move until it fill in)
In our case we consider Tw = 0

Finished Goods inventory recommendation

K = ((504 27600) x (52.5 x 24 x 1.1)) 24
K = 1.05 = 1 but there is only one shipment per day in this case we
will consider the following calculation for the # of Kanban
K = 504 24 = 21 Kanban or containers

Before the Cell

K = ((504 27600) x (49 x 192 x 1.1)) 24
K = 7.33 or 8
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ACME Future State

Flow
5. At what single point (the pacemaker) in the value
stream is the production scheduled and
triggered?

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The cell Crimping/Testing/Marking will be the

pacemaker because it is the closes step before
shipping and it is the longest CT

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ACME Future State

Leveling
6. How is the production mix leveled at the
pacemaker?
Pitch = 55 (Takt Time) x 24 (Pack-out Quantity) = 1,320
seconds (22 minutes)
This means that every 22 minutes a container of 24 units
must be packed and ready to ship.
The team decides to implement heijunka for the following
reasons:
1. A heijunka box, a device used to implement a heijunka system,
provides a great means of visually controlling withdrawal
kanbans.
2. The team talks about the likelihood of creating one value stream
to produce #4, #6, #8, and #10 hoses, because the processes are
so similar. Given this likelihood, the team reasons that it would be
wise to familiarize people with heijunka now so that it does not
seem like such a big change when the value stream begins to
produce four hoses instead of two.
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ACME Future State

Leveling , continued
6. How is the production mix leveled at the
pacemaker?
Draws a heijunka box icon below the production control
icon, with a manual communication arrow running
from production control to the heijunka box.
The entire pull system begins here. Since the ratio of
customer demand for the #4 and #6 hoses is 2:1,
production control will place kanban cards in the
heijunka box in such a way that ACME makes two lots
of #4 hoses for every lot of #6 hoses that it produce
(see next figure).
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ACME Future State

Leveling , continued
Heijunka box

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ACME Future State

Leveling , continued
Runners Route
Step 1
1.A stick figure drawn beneath the heijunka box icon represents the runner.
2.A team member draws a withdrawal kanban icon halfway between the icon representing the runner
and the icon representing the finished-goods super market. A dashed arrow running from the runner
icon to the supermarket icon is added. The arrow bisects the withdrawal kanban icon.

Step 2
1.The team draws a dashed arrow from the finished-goods supermarket icon to the Shipping icon to
represent the next leg of the runner's route.
2.Just beneath the dashed arrow, the team draws a supermarket parts icon and a physical material
pull icon to show that the runner pulls parts from the supermarket to stage for shipment.

Step 3
1.The team draws a production kanban icon just above and slightly to the right of the icon
representing the Crimping/Testing/Marking cell.
2.The team draws a dashed arrow running from the Shipping icon to the Crimping/Testing/Marking
cell icon. The arrow bisects the production kanban icon.

Step 4
The team draws a dashed arrow from the Crimping/Testing/Marking icon to the fin ished-goods
supermarket icon. This is all that is required to show that the runner transfers finished goods from the
Crimping/Testing/Marking cell to the supermarket.

Step 5
After the runner transfers finished goods to the finished-goods supermarket, he returns to the
heijunka box to retrieve the withdrawal kanban from the next slot.
The team draws a dashed arrow from the finished-goods supermarket icon to the heijunka box icon to
document this last leg of the runner's route.

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Improvements methods
5S, TPM, autonomous maintenance, and QCO at
machining.
Standardized work at the crimping / testing /
marking cell.
QCO at the crimping/testing/marking cell.
5S at the crimping/testing/marking cell (to
address problems with new layout) and at
shipping.
TPM methods at machining.
Visual controls.
Improvement Methods
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The future state VSM for ACME

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