Continuing Education: Business Development Workshop: Value Stream Mapping for Drilling Engineers

Speaker: Dr. Shahrukh A. Irani
Speaker Dr. Shahrukh A. Irani
Dr. Shahrukh A. Irani is the President of Lean and Flexible, llc, a consulting company that delivers advisory, training and implementation services focused on Lean for high-mix low-volume manufacturing (aka JobshopLean).  Currently, he is the President of the Houston Senior Chapter of the Institute of Industrial and Systems Engineering.  Previously, ...

Dr. Shahrukh A. Irani is the President of Lean and Flexible, llc, a consulting company that delivers advisory, training and implementation services focused on Lean for high-mix low-volume manufacturing (aka JobshopLean).  Currently, he is the President of the Houston Senior Chapter of the Institute of Industrial and Systems Engineering.  Previously, from 2012-2014, he worked as the Director of IE Research at Hoerbiger Corporation of America, Inc. (HCA), Houston, TX, to gain invaluable industry experience.  In that position, he undertook projects to demonstrate the viability of JobshopLean in HCA’s high-mix low-volume (HMLV) manufacturing facilities.  Prior to this industry job, from 1996-2012, he was an Associate Professor in the Department of Integrated Systems Engineering (ISE) at The Ohio State University (OSU).  His research at OSU produced JobshopLean, a comprehensive methodology to adapt Lean for high-mix, low-volume (HMLV) small and medium enterprises (SME).  Also, his team developed the PFAST (Production Flow Analysis and Simplification Toolkit) software that facilitates the implementation of JobshopLean.  During his sixteen years at OSU, he received the Outstanding Faculty Award for excellence in teaching from the ISE department’s graduating classes of 2002, 2003, 2004, 2005, 2006 and 2009 and the 2002 Charles E. MacQuigg Outstanding Teaching Award from the College of Engineering.  He served as the Director of the Facilities Planning and Design (FAPAD) division of the Institute of Industrial Engineers for 1999-2001 and 2001-2003.  He is the Editor of the Handbook of Cellular Manufacturing Systems (1999, John Wiley).  In 1996, he was voted Young Engineer of the Year by the Minnesota Federation of Engineering Societies and the Minneapolis Chapter of the Institute of Industrial Engineers.

Full Description

Why Use Value Stream Mapping? 

Any business thrives by delivering innovative products (or services) to its customers faster, better and at a lower cost than its competitors!  To deliver a service or to build a product, a business executes a single process (or multiple linked processes).  Each process consists of a sequence of steps that consume resources (labor hours, equipment hours, energy, materials, floor space, office overhead, etc.).  Each step costs money because it consumes resources to execute it!  Unfortunately, every step in the current process may not deliver value to the customer.  A step could be: 

  • A VA (value-added) step because it is “an activity that physically changes the shape or character of the product”

OR

  • A NVA (non-value-added) step because it is “an activity that consumes more than the absolute minimum of materials, machines, manpower, etc. required to produce the product”

OR    

  • A NNVA (necessary but not value-added) step because it is “an activity that creates no value but is necessary given the limitations of the current system”.

If they knew, the customer would want to pay only for the VA steps that were performed to deliver the product.  But the reality is that the customer ends up paying also for the unnecessary NNVA and NVA steps that were performed to deliver the product!    

 

The Seven Wastes in the Operations of Any Business

Studies have shown that a business only adds value to a product for less than 5% of the Lead Time they quoted to the customer.  As for the rest of the Lead Time, it is NNVA (necessary but not value-added) or NVA (non-value-added).[1]  Every NVA or NNVA activity is waste that (1) increases the price that is charged to the customer for the product (or service) and (2) increases the time it takes to deliver the product (or service) to the customer.  The NVA and NNVA activities that are performed every day in the office and the shop floor are the Seven Forms of Waste:

  • Over-production: Producing more than is needed, faster than is needed or earlier than is needed.
  • Inventory: Any inventory that is in excess of market demand or actual consumption.
  • Over-processing: Redundant effort, such as excessive number of steps, high setup time on the equipment used for any processing step or high cycle time on the equipment used for any processing step.
  • Waiting: Idle time that occurs when co-dependent events are not synchronized due to poor or non-existent scheduling.
  • Scrap and Rework: Extra effort and resources needed when a process has to be repeated to repair, rework or replace a defective product delivered to a customer.
  • Transportation: Any movement of material, people, tools, etc. that does not directly support the actual production of a product.
  • Employee Motion: Any movement of people which does not add value to the product delivered to a customer. This includes meetings and other communications to convey or share information that is either unnecessary or available in the company’s ERP (Enterprise Resource Planning) system.
  • Unfortunately, there is an Eighth Waste = Unused Employee Creativity! This waste results when management refuses to (or fails to) engage with and listen to their skilled and experienced employees who come forward with good ideas to improve core business operations.  When low morale, apathy, resentment, etc. start to affect the performance of employees, both the business and its customers suffer!  

 

Agenda

Duration

Topic for the Session

8.00 – 9.00 a.m.

Overview of Value Stream Mapping (VSM)

9.00 – 10.00 a.m.

·      Icons used in a Current State Map

·      Icons used in a Future State Map

·      How to use a Value Stream Map to identify:

1.   The different types of waste in a process (or system)?

2.   Production delays in a process (or system)?

3.   Process improvement opportunities in a process (or system)?

4.   Logistical problems in a process (or system)?

5.   Scheduling problems in a process (or system)?

6.   Etc.

10.00 – 10.15 a.m.

Break

10.15 – 11.15 a.m.

1.      Case Study: This video describes a VSM event that was conducted at Jotul North America to evaluate and improve operation of their assembly line to manufacture gas-fired stoves.

11:15 a.m. – Noon

Discussion:

·     How can VSM be applied in the drilling industry?

·     Are there other tools that complement VSM?

·     What are the limitations of VSM? 

·     Is there a better alternative (or alternatives) to VSM?

Noon

·      Workshop Evaluation

·      Adjournment

 

[1] SOURCE: www.LeanManufacturingTools.org

Organizer Mike Redburn

281-754-8629         Direct


307.214.7518           Cell


mredburn@newpark.com

When?

Fri, Jan. 12, 2018
8:30 a.m. - 12:30 p.m. US/Central

How Much?

A $5 donation for the SPE-GCS Scholarship Fund has automatically been added to the registration fee. Use OptOut in the Discount Code field if you do not wish to donate at this time.
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Where?

SPEI Houston Training Center
10777 Westheimer Rd., Suite 1075
Houston, TX 77042
United States

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