Business Value Stream Map and Improvement Identification

Business Value Stream Map
and Improvement Identification
UNIVERSITY NAME
Level 8
Lean Operations and Deviations Management
Student Name:
Student ID Number:
Submission Date:

Table of Contents
Introduction................................................................................................................................3
Value Stream Map......................................................................................................................3
Potential improvements..............................................................................................................4
Application of lean tools............................................................................................................4
Redrawing of Value Stream Map...............................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8
List of Figures
Figure 1: Current Layout of Value Stream Map........................................................................3
Figure 2: Revised Layout of Value Stream Map.......................................................................6

Introduction
Value stream mapping (VSM) is a tool for lean improvement that helps to improve
the material and information flow within an organisation (Tyagi, et. al., 2015). The objective
of VSM is to improve processes by eliminating waste and non-value adds activities (Meudt,
Metternich and Abele, 2017). It is in relation to the value and non-value adding steps to
identify the processes related to waste management. Moreover, it aids in visualizing few
techniques or tools for product creation to the end customers. VSM has also emphasis on
gaining an understanding of the process improvement via systematic analysis.
Value Stream Map
Annual Production Plan
Weekly Orders
Market Forecast
Monthly Orders
Weekly schedules
2days 4days 3 days 5 days 1day 5days Total Lead time: 20days
2minutes 5 minutes 10minutes 2 minutes 1minutes Value added time: 20 minutes
Production
Control
Supplier 1 Supplier 2
C/T : 2 minutes
C/O : 120 min
Uptime = 70%
No of operators = 2
Waste = 25 lbs
Recieving Milling
C/T : 5 minutes
C/O : 180 min
Uptime = 75%
No of operators = 3
Waste = 15 lbs
Welding
C/T : 10 minutes
C/O : 300 min
Uptime = 55%
No of operators = 1
Waste = 5 lbs
Painting
C/T : 2 minutes
C/O : 30 min
Uptime = 90%
No of operators = 2
Waste = 10 lbs
Assembly
C/T : 1 minutes
C/O : 60 min
Uptime = 80%
No of operators = 1
Waste = 15 lbs
Inspection
Customer
Shipping
5 days
2 days
30 50 70 80 10 20
Figure 1: Current Layout of Value Stream Map
A simple graphical format of current state of an imaginary ABC manufacturing
company has beenconstructed. ABC produces automobile parts and supply these parts to a
major automobile company. The customer typically places order of 20 parts in every 5 days.
ABC company receives a stock of 30 various parts from suppliers in every 2 days. A typical
internal procedure involves receiving of raw materials from suppliers, milling, welding,
painting, assembly, inspection and shipping to the customer (Boonsthonsatit and Jungthawan,
2015). For each process, cycle time, changeover time, uptime, waste materials and number of
operators are given.