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tion rate of the pacesetter is changed? It establishes a new rate for every other
process in the value stream. Now, if the leveled schedule product mix were
adjusted, all processes would need to adjust to support the new mix.
This type of incremental leveling or squeezing of the value stream forces the
improvement process. It’s a planned and controlled process that will incrementally
drive continuous improvement in a specific manner. If inventory in the supermar-
ket is reduced, for example, the effect on the supplying processes should be pre-
dictable. This may force a changeover more frequently, which forces the need for
shortened changeover times. Each change in a standard element of the value stream
will force the need for improvement and create a specific and predetermined result.
Points of Control
Within a connected value stream there are specific “points of control” that will
influence other processes in the value stream. Because of the connected nature
of the value stream, an adjustment to the point of control will require an adjust-
ment to all processes that supply the control point. And since the point of con-
trol is the primary operation within the value stream that must be closely man-
aged in order to create consistent output of the value stream, managing it allows
you to effectively understand how to maximize the entire value stream.
One key point of control is the leveled schedule. It provides a standardized
core that is used to establish takt time. The pacesetter process uses this takt time
to establish a beat that will be followed by all other operations. Understanding
the point of control allows managers to effectively troubleshoot operations and
drive continuous improvement.
If the pacesetter consistently produces the desired volume of product and is
capable of producing the correct product mix and sequence according to the lev-
eled schedule, the value stream is consistently meeting the customer requirement
(the next step would be cost reduction). If, however, the pacesetter is unable to
fulfill the requirement of the leveled schedule, the first place to stand in the circle
is at the pacesetter. From this vantage point it is possible to evaluate whether the
pacesetter is being supplied properly. If not, look upstream to find the weak
link. If so, look at the pacesetter to determine if he or she is being blocked by a
downstream operation. (The rules forbid overproduction, so if a downstream
process is blocking the pacesetter, it will be visibly evident.) The creation of visible
connections allows quick identification of flow stoppages, simplifying manage-
ment of the value stream.
Point of Control for Managing Inventory
The point of control for inventory management is the kanban. Reducing the
number of kanbans within the system will reduce total inventory quantity.