Value Stream Mapping for the Process Industries Creating a Roadmap for Lean Transformation

Providing a framework that highlights waste and its negative effects on process performance, value stream maps (VSMs) are essential components for successful Lean initiatives. While the conventional VSM format has the basic structure to effectively describe process operations, it must be adapted and expanded to serve its purpose in the process industry.This book describes in detail how to create a complete VSM for a process industry manufacturing operation. Detailing the unique features of process operations and why they require additions and adjustments to traditional VSMs, the book walks readers through the steps in analyzing the map. It explains how to scope improvement projects, prioritize them, and then use future state VSMs to illustrate and motivate systemic improvement. In doing so, it supplies readers with a roadmap for a complete Lean transformation. Describes how to analyze the map for waste and flow issues so that they can be reduced and even eliminated Provides examples of the calculations needed for the flow parameters in data boxes Explains how the VSM concept can be applied to the entire supply chain Includes strategies for engaging your entire workforce in map creation The book introduces a target manufacturing process and uses it to describe how to create a complete VSM. The target process is complex enough to illustrate the issues often encountered in mapping a process industry operation, but straightforward enough to explain all of the mapping considerations and decisions.The book includes real examples of how VSMs brought much greater clarity to the real issues the processes faced and cases where the insight enabled management to avoid costly, inappropriate investments.

The Value of MappingA Focus on Flow Rather Than on FunctionSummaryValue Stream Mapping FundamentalsIntroduction to Value Stream MappingMaterial Flow Major Process Steps Data Boxes Process Box and Process Data Box Inventory Data Box Transportation Data Box Customers Data Box Supplier Data BoxMaterial and Information Flow IconsInformation FlowThe Third VSM Component—The TimelineParallel EquipmentLevel of DetailSummaryVSM Enhancements for Process OperationsDistinguishing Features of Process Operations That Require a Different VSM ApproachCapital Intensive vs. Labor IntensiveMaterial Flow Patterns—SKU Fan OutProduct Changeover Issues Are ComplexProduct Families—Selecting a Target Product or FamilyTakt Rate vs. Takt TimeUnits of ProductionGenerating the MapTime UnitsWhere to BeginSummaryAdditional Good Mapping PracticesGood VSM PracticesMap Layout—Flow DirectionLevel of DetailLevel of PrecisionParallel EquipmentLogical Flow vs. Geographic ArrangementSupport ProcessesComputer Tools vs. Brown PaperQualified Guidance and CoachingSummaryOur Focusing Problem—A Synthetic Fiber ProcessProcess OverviewRaw MaterialsStep 1: PolymerizationStep 2: Fiber SpinningStep 3: Draw–AnnealStep 4: Cut—BaleFinished Product Storage and ShippingOrder Processing and Production SchedulingThe Synthetic Fiber Manufacturing VSMDeveloping the Material FlowCalculating Data Box ParametersProcess Step Data Boxes Overall Equipment Effectiveness (OEE) Calculating Availability Calculating Performance Calculating Quality Calculating OEERemaining Factors Another Example of OEESupplier Data BoxesCustomer Data BoxesInventory Data BoxesTransportation Data BoxesSummaryMaterial Flow Rates and TaktCalculating TaktBalesRope Takt in GaylordsAnnealed Product TaktFilament TaktFlake, Spinning, and Polymer TaktRaw Material TaktSummaryCompleting the Data Boxes: Utilization, Delivery Frequency, and Days of SupplyUtilizationTransportation FrequencyInventory Days of SupplySummaryMapping the Information FlowWhy Map Information Flow?Fiber Manufacturing Information FlowCapacity Constraint ResourcesAdditional Information Mapping ToolsSummaryDeveloping the TimelineTimeline PrinciplesFiber VSM TimelineCash Flow Cycle TimeSummaryFinding the Waste—Analyzing the MapGeneral Impressions from the Current StateInventory OpportunitiesBaler ReliabilitySpinning YieldLong Campaign Cycles (EPEIs)Hot Roll Draw–AnnealUncoordinated SchedulingCapturing Potential OpportunitiesScoping the OpportunitiesInventory Opportunities 1. Raw Material Inventory in Rail Cars Is Too High 2. Flake Inventory Is High 3. Filament Inventory Is High 4. Rope Finished Product Inventory in Gaylords Is Too High 5. Right Size the Cutter Box Inventory 6. Bale Finished Product Inventory Is Too High Equipment Opportunities 7. Spinning Changeover Losses Are High; Spinning Utilization Is High 8. Baler Reliability Is Poor 9. Changeover Improvement—Balers 10. Reduce the Baler Campaign Cycle (EPEI) 11. Mothball One Baler 12. Hot Roll Draw–Anneal Reliability and Yield Wastes 13. Mothball One Polymer ReactorSystem-Wide Opportunities 14. Implement Virtual Cellular Flow 15. Filament Tub FIFOs after Implementation of Virtual Cells 16. Implement Pull Replenishment across the Value Stream 17. Drop the 60 Very Low Demand SKUsSummaryImplementation Strategy and SequenceStrategy for Implementation of ImprovementsRiverside Fiber Plant Future StatesFuture State Generation 1Future State Generation 2Future State Generation 3SummaryFuture State Value Stream MapsWhy a Future State VSM?Future State 1 MapFuture State 2 MapFuture State 3 MapSummarySupply Chain MappingWhy a Supply Chain Map Is ImportantSupply Chain WastesEffects of Wastes at the Supply Chain LevelSupply Chain Map ComponentsFuture State Supply Chain MapSupply Chain Map ExampleSummaryVSM as a Way of Engaging EmployeesOrigin of the ProblemA New Paradigm on the Role of LaborThe Nature of EngagementSummaryA Roadmap for Continuous ImprovementSummaryBenefits of Developing a VSMOperations That Have Benefitted from Using a VSMProcessing of Large Rolls in a Sheet Goods PlantBottling Salad DressingCooling Towers in Polyethylene ProductionProducing Waxes for Coating Cardboard BoxesImproving a Capital Project Execution SystemSummaryAppendix A: Process Industry CharacteristicsCharacteristics That Distinguish the Process Industries Equipment Is Large and Difficult to Relocate Processes Are Difficult to Stop and Restart Capital Intensive vs. Labor Intensive Hidden WIP Product Differentiation PointsSummaryAppendix B: SMED PrinciplesSMED OriginsSMED ConceptsProduct Changeovers in the Process IndustriesSummaryAppendix C: Cellular FlowTypical Process Plant Equipment ConfigurationsCellular Manufacturing Applied to Process LinesSummaryAppendix D: Pull Replenishment SystemsWhy Is Pull Important?What Is Pull?Pull in AssemblyDifficulties in Process PlantsPush–Pull InterfaceConWIPVisual SignalsWhen to Start Pulling: The Sequence of ImplementationValue Stream FocusShowing Pull on a Value Stream MapSummaryAppendix E: Cycle Stock and Safety StockCycle Stock and Safety StockCalculating Cycle Stock Fixed Interval Replenishment Model Fixed Quantity Replenishment ModelSafety Stock Variability in Demand Variability in Lead Time Combined VariabilityExample—Cut–Bale 2 Safety StockSummaryAppendix F: Product WheelsIntroduction to Product WheelsProduct Wheels DefinedBenefits of Product WheelsProduct Wheel ApplicabilityProcess Improvement TimeSummaryAppendix G: Additional Reading

Jennifer S. King is an operations research analyst with MCR LLC, analyzing operational impacts of emerging FAA technologies and developing cost and performance models to support airline investment decisions. Prior to that, she spent five years with the Department of Defense developing discrete event simulation models to assist the army in setting reliability requirements for new platforms, and analyzing performance of weapon systems alternatives. Her prior publishing experience includes editing textbooks and developing mathematics problems and solutions for ExploreLearning. She is the co-author of The Product Wheel Handbook—Creating Balanced Flow in High Mix Process Operations (Productivity Press, 2013).Jennifer has degrees in Mathematics and Psychology from the University of Virginia, and a master’s degree in Operations Research from the University of Delaware. She is a member of INFORMS.Peter L. King is the president of Lean Dynamics, LLC, a manufacturing improvement consulting firm located in Newark, Delaware. Prior to founding Lean Dynamics, Pete spent 42 years with the DuPont Company, in a variety of control systems, manufacturing systems engineering, Continuous Flow Manufacturing, and Lean Manufacturing assignments. That included 18 years applying Lean Manufacturing techniques to a wide variety of products, including sheet goods like DuPont™ Tyvek®, Sontara®, and Mylar®; fibers such as nylon, Dacron®, Lycra®, and Kevlar®; automotive paints; performance lubricants; bulk chemicals; adhesives; electronic circuit board substrates; and biological materials used in human surgery. On behalf of DuPont, Pete has consulted with key customers in the processed food and carpet industries. Pete retired from DuPont in 2007, leaving a position as Principal Consultant in the Lean Center of Competency. Recent clients have included producers of sheet goods, lubricants and fuel additives, vitamins and nutritional supplements, and polyethylene and polypropylene pellets. Pete received a bachelor’s degree in Electrical Engineering from Virginia Tech, graduating with honors. He is Six Sigma Green Belt certified (DuPont, 2001), Lean Manufacturing certified (University of Michigan, 2002), and is a Certified Supply Chain Professional (APICS, 2010). He is a member of the Association for Manufacturing Excellence, APICS, and the Institute of Industrial Engineers.He served as president of IIE’s Process Industry Division in 2009–2010. Pete is the author of Lean for the Process Industries—Dealing with Complexity (Productivity Press, 2009), and several published articles on the application of Lean concepts to process operations. He is the co-author of The Product Wheel Handbook—Creating Balanced Flow in High Mix Process Operations (Productivity Press, 2013). He has been an invited speaker at several professional conferences and meetings. He has presented seminars and taught courses across the globe on the application of Lean concepts to process operations.