Supply Chain Academy

Group Exercise – VSM Completion and Reflection

1

Supply Chain Academy 2

WCM Supplier Academy – Speaker Introduction

Eric Dvorachek – Senior Manager Supplier Development Supply Chain Operations Oshkosh Corporation

Supply Chain Academy

Supply Chain Academy

3

Supply Chain Academy4

Facilitator: CI Joe

Event: Lean Quad Production VSM Project Team Leader: Bob Bilder

Last Updated: 10/8/2020 CIE Date:

No. Opportunity Action Owner

Target

Completion

Date

Results (Estimated

Savings Expected)

%

Statu

s

Comments

1 Cut change over time in half. Organize a change over reduction project. CI Joe 10/8/202050% Reduction in

Change Over time25% 50% 75% 100%

Standard Work

5S

SMED (Not covered in this event)

2 Rebalance the line.

Line balance analysis has helped to determine the optimal

distribution of value-added work. The fender base will be

moved from Body to Chassis. The roll bar will be moved

from Body to Trim. New standard work has been developed

to reflect the move.

Bob Bilder 10/8/2020

Assembly time less than

30 seconds at all

stations.

25% 50% 75% 100%

Value Stream Mapping

Capacity Management

Standard Work

3 Implement Cellular Manufacturing.

The Body and Trim stations will swap places to create a

cellular flow through the facility and minimize material transit

time.

Bob Bilder 10/8/2020Transportation time cut to

2 seconds or less25% 50% 75% 100%

Value Stream Mapping

Standard Work

4Implement a production pull system reacting

to customer demand.

Assemblers will build assemblies based on next station

needs.Bob Bilder 10/8/2020 65% Reduction in WIP 25% 50% 75% 100%

Value Stream Mapping

5S

Capacity Management

Standard Work

5Implement a Kit and Pull strategy for raw

material.

Material will be removed from the manufacturing floor to a

common stock room. Emmet 10/8/2020

50% increase in

production floor space25% 50% 75% 100%

PFEP (See PFEP Bootcamp)

5S

Mistake Proofing

Standard Work

5.1

Material will continue to be organized by workstation.

A new team member will generate standard kits to be

delivered to the stations on a milk run.

Emmet 10/8/2020100% OTD or parts line

side.

5.22 non-standard components will be delivered via a Kanban

card at the workstation.Emmet 10/8/2020

50% reduction in on-hand

inventory of low volume

conponents

6Cut machine downtime occurance in half.

(MTBF = Mean Time Between Failure)

Improvement to our preventive maintenance strategy and

systemBob Bilder 10/8/2020

50% Reduction in

unplanned Dwontime25% 50% 75% 100%

TPM

Standard Work

7Cut average machine repair time in half.

(MTTR = Mean Time to Repair)Make improvements to our spare parts strategy Bob Bilder 10/8/2020

50% Reduction in MTTR 25% 50% 75% 100%

TPM

5S

Standard Work7.1 Develop standard repair tool kits Bob Bilder 10/8/2020

8 25% 50% 75% 100%

9 25% 50% 75% 100%

Continuous Improvement Event (CIE) Action Plan

Supply Chain Academy 5

Single Point Scheduling

Change Over Reduction

Pull System

Line Balance

Inspector Repairs

Defects?

KEEP YOUR CURRENT AND FUTURE STATE VALUE STREAM MAPS. YOU WILL NEED THEM.

Material Strategy

Supply Chain Academy

Materials Supplier

Customer

MRP

Production

Control

Future Condition Value Stream Map

Chassis Body Trim Inspect

1Associates Staff

26Cycle Time Sec

40.5 Sec

10Changeover

Loss Per ItemSec

2.5Downtime

Loss Per ItemSec

90 Sec

41 Sec 35 Sec

45 Sec

17 Sec

0 Sec45 Sec0 Sec

2Transport

TimeSec

0Queue Sec 90Queue Sec 45Queue Sec 45Queue Sec 0Queue Sec

1Associates Staff

29Cycle Time Sec

5Changeover

Loss Per ItemSec

5Downtime

Loss Per ItemSec

2Transport

TimeSec

1Associates Staff

28Cycle Time Sec

5Changeover

Loss Per ItemSec

0Downtime

Loss Per ItemSec

2Transport

TimeSec

1Associates Staff

15Cycle Time Sec

0Changeover

Loss Per ItemSec

0Downtime

Loss Per ItemSec

2Transport

TimeSec

Cycle

Tim

e (

se

c)

Station5

10

15

20

25

30

35

40

45

50

55

60

65

Chassis Body Trim Inspect

TAKT

313.5 Sec

180

133.5

Idle

Time

Station

TIme

Idle Time + Station Time = Production Lead Time =

6

Current State Results:

Product Idle Time = 765 Sec

Total Station Time = 165 Sec

Product Lead Time = 930 Sec = 15.4 Min

Supply Chain Academy

7

Let’s see what that looks like in the factory…

Supply Chain Academy8

Metrics

# Safety Incidents 1

# Defects 4

Final Ending Inventory for Chassis (from chassis sheet) $450

Final Ending Inventory for Body (from body sheet) $3,850

Final Ending Inventory for Trim (from trim sheet) $1,200

# Unsold (WIP) at Inspect/Ship 2

Unsold (WIP) Inventory Cost $2,400

# Units sold at Inspect/Ship 16

Sold Inventory Cost $19,200

# Scrap at Inspect/Ship (found at inspect/ship) 4

Scrap Inventory Cost $4,800

# Scrap (Re-inspects) (found by customer) 0

Scrap (Re-inspects) Inventory Cost $0

Total Inventory Costs $31,900

# Defective Quads Sold to Customer 0

Re-inspection Fees (# Defective Quads Sold * $1000) $0

# Customer Orders Missed 9

$ Loss for Missed Orders (# Missed Orders * $600) $5,400

Total Costs $37,300

# Units Delivered & Accepted 16

Revenue (# Good Quads Sold * Revenue) $28,800

Total Profit/Loss (Revenue - Costs) ($8,500)

On Time Delivery 64%

Pre-Event KPIs

# Safety Incidents 0

# Defects 1

Final Ending Inventory for Chassis (from chassis sheet) $500

Final Ending Inventory for Body (from body sheet) $600

Final Ending Inventory for Trim (from trim sheet) $350

# Unsold (WIP) at Inspect/Ship 0

Unsold (WIP) Inventory Cost $0

# Units sold at Inspect/Ship 24

Sold Inventory Cost $28,800

# Scrap at Inspect/Ship (found at inspect/ship) 1

Scrap Inventory Cost $1,200

# Scrap (Re-inspects) (found by customer) 0

Scrap (Re-inspects) Inventory Cost $0

Total Inventory Costs $31,450

# Defective Quads Sold to Customer 0

Re-inspection Fees (# Defective Quads Sold * $1000) $0

# Customer Orders Missed 1

$ Loss for Missed Orders (# Missed Orders * $600) $600

Total Costs $32,050

# Units Delivered & Accepted 24

Revenue (# Good Quads Sold * Revenue) $43,200

Total Profit/Loss (Revenue - Costs) $11,150

On Time Delivery 96%

Post Event KPIs

Supply Chain Academy

9

So…now what?