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

The Value of Mapping
A Focus on Flow Rather Than on Function
Summary

Value Stream Mapping Fundamentals
Introduction to Value Stream Mapping
Material Flow
     Major Process Steps
     Data Boxes
     Process Box and Process Data Box
     Inventory Data Box
     Transportation Data Box
     Customers Data Box
     Supplier Data Box
Material and Information Flow Icons
Information Flow
The Third VSM Component—The Timeline
Parallel Equipment
Level of Detail
Summary

VSM Enhancements for Process Operations
Distinguishing Features of Process Operations That Require a Different VSM Approach
Capital Intensive vs. Labor Intensive
Material Flow Patterns—SKU Fan Out
Product Changeover Issues Are Complex
Product Families—Selecting a Target Product or Family
Takt Rate vs. Takt Time
Units of Production
Generating the Map
Time Units
Where to Begin
Summary

Additional Good Mapping Practices
Good VSM Practices
Map Layout—Flow Direction
Level of Detail
Level of Precision
Parallel Equipment
Logical Flow vs. Geographic Arrangement
Support Processes
Computer Tools vs. Brown Paper
Qualified Guidance and Coaching
Summary

Our Focusing Problem—A Synthetic Fiber Process
Process Overview
Raw Materials
Step 1: Polymerization
Step 2: Fiber Spinning
Step 3: Draw–Anneal
Step 4: Cut—Bale
Finished Product Storage and Shipping
Order Processing and Production Scheduling
The Synthetic Fiber Manufacturing VSM

Developing the Material Flow

Calculating Data Box Parameters
Process Step Data Boxes
     Overall Equipment Effectiveness (OEE)
          Calculating Availability
          Calculating Performance
          Calculating Quality
          Calculating OEE
     Remaining Factors
     Another Example of OEE
Supplier Data Boxes
Customer Data Boxes
Inventory Data Boxes
Transportation Data Boxes
Summary

Material Flow Rates and Takt
Calculating Takt
Bales
Rope Takt in Gaylords
Annealed Product Takt
Filament Takt
Flake, Spinning, and Polymer Takt
Raw Material Takt
Summary

Completing the Data Boxes: Utilization, Delivery Frequency, and Days of Supply
Utilization
Transportation Frequency
Inventory Days of Supply
Summary

Mapping the Information Flow
Why Map Information Flow?
Fiber Manufacturing Information Flow
Capacity Constraint Resources
Additional Information Mapping Tools
Summary

Developing the Timeline
Timeline Principles
Fiber VSM Timeline
Cash Flow Cycle Time
Summary

Finding the Waste—Analyzing the Map
General Impressions from the Current State
Inventory Opportunities
Baler Reliability
Spinning Yield
Long Campaign Cycles (EPEIs)
Hot Roll Draw–Anneal
Uncoordinated Scheduling
Capturing Potential Opportunities

Scoping the Opportunities
Inventory 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 Reactor
System-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 SKUs
Summary

Implementation Strategy and Sequence
Strategy for Implementation of Improvements
Riverside Fiber Plant Future States
Future State Generation 1
Future State Generation 2
Future State Generation 3
Summary

Future State Value Stream Maps
Why a Future State VSM?
Future State 1 Map
Future State 2 Map
Future State 3 Map
Summary

Supply Chain Mapping
Why a Supply Chain Map Is Important
Supply Chain Wastes
Effects of Wastes at the Supply Chain Level
Supply Chain Map Components
Future State Supply Chain Map
Supply Chain Map Example
Summary

VSM as a Way of Engaging Employees
Origin of the Problem
A New Paradigm on the Role of Labor
The Nature of Engagement
Summary

A Roadmap for Continuous Improvement
Summary

Benefits of Developing a VSM
Operations That Have Benefitted from Using a VSM
Processing of Large Rolls in a Sheet Goods Plant
Bottling Salad Dressing
Cooling Towers in Polyethylene Production
Producing Waxes for Coating Cardboard Boxes
Improving a Capital Project Execution System
Summary

Appendix A: Process Industry Characteristics
Characteristics 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 Points
Summary

Appendix B: SMED Principles
SMED Origins
SMED Concepts
Product Changeovers in the Process Industries
Summary

Appendix C: Cellular Flow
Typical Process Plant Equipment Configurations
Cellular Manufacturing Applied to Process Lines
Summary

Appendix D: Pull Replenishment Systems
Why Is Pull Important?
What Is Pull?
Pull in Assembly
Difficulties in Process Plants
Push–Pull Interface
ConWIP
Visual Signals
When to Start Pulling: The Sequence of Implementation
Value Stream Focus
Showing Pull on a Value Stream Map
Summary

Appendix E: Cycle Stock and Safety Stock
Cycle Stock and Safety Stock
Calculating Cycle Stock
     Fixed Interval Replenishment Model
     Fixed Quantity Replenishment Model
Safety Stock
     Variability in Demand
     Variability in Lead Time
     Combined Variability
Example—Cut–Bale 2 Safety Stock
Summary

Appendix F: Product Wheels
Introduction to Product Wheels
Product Wheels Defined
Benefits of Product Wheels
Product Wheel Applicability
Process Improvement Time
Summary

Appendix G: Additional Reading

Biography

Peter L. King, Jennifer S. King

Value Stream Mapping has become a key tool for implementing Lean thinking and positive change across our business. This book describes, in detail, the process by which Pete King has helped many organizations like ours to delight customers and relentlessly drive out waste. A must-read for any executive wanting to facilitate a transformation journey within the process industries.
—Steve Anderson, Global Vice President of Supply, Afton Chemical

Pete King has developed an international reputation as a leading authority on the subject of Lean in the process industries. In this book, he superbly condenses his decades of practical experience into a clear and highly effective guide. From diagnosing the major wastes and inhibitors to flow, to designing and executing a roadmap, Pete offers everything required to deliver true operational excellence from Value Stream Mapping.
—Pete Wright, Managing Director & Principal Consultant, Pico Consulting Ltd.

A must-read for practitioners and consultants alike. So far, Lean initiatives in the process industry have been handicapped by the fact that all good books on Value Stream Mapping refer to discrete manufacturing. Food, pharma, and chemical processes are, by their nature, different and need an adapted approach. Peter King’s deep, hands-on experience provides the process industry with a state-of-the-art toolkit to eliminate waste and reach breakthrough performance.
—Hans van Oosteren, Managing Partner, Improvium

The book is very practical in its organization: for each theoretical step, King includes real-world examples. More than a book on VSM, it offers us a meaningful and complete discussion about process industry productivity. As he explains the different parts of the map, King skillfully guides us through various practical approaches used to eliminate waste and create flow. It is remarkable how he managed to include so much knowledge and experience into a book that is so pleasant to read.
—Henrique Fagundes, Operations Implementation Leader, McKinsey & Company

Peter has based this book on his extensive experience, to create a clear guide which will be invaluable for both leaders and Lean professionals. The user will be able to use the VSM to identify waste and remove bottlenecks, following the real examples from both the discrete product and process industries. This is the first book I have read on the subject that goes into the required level of depth and detail to clearly demonstrate the path to a complete Lean transformation.
—John Cockburn-Evans, Fellow, Institute of.Chem.E.; Certified Professional Coach; Senior Consultant & Lean Coach, DuPont Sustainable Solutions