part of Caterpillar Group,
USA and multinational design, development and manufacture
of diesel engines
Staff:
3500 personnel
Products & Processes:
200,000 engines/year of 40
hp - 300 hp rating.
Engine
Manufacture
Improvement Activities
Why do Value Stream Mapping?
"For us it is a tool that enables the
value stream to be examined both inside Perkins and beyond it.
Working with our suppliers we can use measurement and the maps
to identify areas of greatest potential improvement."
"In addition the map enables us to monitor the current
state and understand the effect that specific improvement activities
have on achieving our strategic goals of increased percentage
of value added activities and reduced product lead time."
"We also wanted to train key Change Agents within our supply
base and enable our suppliers to carry out this activity themselves
and sustain year on year QCD improvements."
Jim Shaw, Supply Chain Development
Manager
Company Expectations
Leadtime reductions throughout
the Supply Chain
Integration of systems and processes with customers
and suppliers
Total on-time delivery as a standard
A greater understanding of where value is added
to the customer
Removal of interface wastes between the supplier
and customer
"Perkins total supply chains take
too long to react to customer requirement and are inherently
not cost-effective. A revolution is required"
Jim Shaw, Supply Chain Development
Manager
Value Stream Mapping - Participants
Perkins activities (three
total)
Team Coaches
Team Leaders
Operators
IF trained supplier change agents
IF trained Perkins change agents
Supplier activities
Company Directors
Manufacturing Management
Engineering
Operators
IF trained supplier change agents
IF trained Perkins change agents
What to Value Stream Map?
Parts or Product families were selected
for mapping based on their strategic importance to both the
customer and supplier. Strategic importance was assessed using
the parts turnover value and volume required.
Areas chosen need to be conuctive to rolling
improvements out to similar areas.
The
Future State
Pull instead of Push systems
Improved workplace organisation
Controlled supermarkets instead of buffer stocks
Supplier Kanbans
OEE improvements through applying the Common
Approach Building Blocks and tools.
Typical benefits identified
Capacity improved by potential £1.76
million per year in increased turnover
Labour cost due to overtime reduced by £276,000
Supply base leadtime reduced by up to 45%
Greater structure and alignment in Supplier and
Customer improvement activities
Reduced interface wastes between the customer
and supply base
- transport costs
- inventory held
- unnecessary material handling
Learning Points and Observations
It is a relationship building tool
for the Customer and Supplier
Senior Management needs to be directly involved
Correct data is required to give a true picture
of the current situation
Communication and employee awareness are essential
Once the focus product was agreed, generating
the map was relatively straight forward
The team as a whole must be part of the decision
making process to define the current state map, future state
map and action plan to achieve it.
All observations are from both Perkins and the suppliers involved.
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