LEAN AND CLEAN VALUE STREAM MAPPING
Value stream mapping is a Lean process-mapping method for understanding the sequence of activities used to produce a product. During the Green Suppliers Network technical review, you will use value stream mapping to identify sources of non-value added time or materials; identify opportunities to increase efficiency; and develop a plan for implementing improvements. Value stream maps serve as a critical tool during the review process and can reveal substantial opportunities to reduce costs, improve production flow, save time, reduce inventory, and improve environmental performance. Conventional value stream mapping can overlook environmental wastes, such as: • • • Energy, water, or raw materials used in
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Exhibit 1 illustrates a conventional value stream map, shows how to denote process inputs and outputs, and provides example of where Green Supplier Network environmental metrics may exist in the product line.
Compare “Use” Verses “Need” Using a Materials Line In the past, value stream maps would examine the time it takes to produce a product and the proportion of that time that is value added─or the time spent actually working on the product. The timeline was a graphic representation that compared the two, but didn’t focus on the resources consumed and waste generated in making the product. A materials line is a variation of a timeline and can be developed for any type of resource (e.g., water, energy, total materials, and/or a critical substance used in the product). A materials line, located on the bottom of a value stream map, shows the amount of raw materials used by each process in the value stream and the amount of materials that end up in the product and add value from a customer’s perspective. For example, the materials line illustrated below compares the amount of water used and needed in the milling and parts washing processes in a product line.
Milling
Parts Washing
150K gal
2K gal Top line: Amount of water used
Water
Value Chain- Company developed sources of cocoa and Food and created tie up with Farmers to create a strong and sustainable value chain to provide them high quality supply at low cost (Mars Supply Relation, 2014). The company is also working with Third party supplier to reduce cost and emission. (Mars Product Transport, 2014)
“Lean is a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the **product at the pull of the customer in pursuit of perfection.” Lockwood [24].
“Value chain analysis is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation (Value chain analysis)”. Throughout the simulation, I was always thinking about what the primary goal is. Primary goal was to reduce costs and provide a good image rating to the community and nations Daily Durable was serving. The way Daily Durable added value was by focusing mainly on corporate social responsibility. The company donated to charities yearly as well as using green materials and using recycled boxes. Training was provided to all for diversity. Daily Durable donated to charities for children in need to not only improve image ratings but add value to the company. Training was provided each year to offer more opportunities within the company as well as for each employee’s current position to help them succeed. Once customers see they donate to children each year, they feel they are also donating each year as well. Using recycled boxes cut down on purchasing new boxes for shipping each time they shipped out footwear to wholesalers and plants. Therefore saves money in the short and long run. Green shoes are made from earth friendly materials like
Assessment of basic needs potential – Easier for producers of specialized industrial materials or equipment; More difficult for specialized consumer products.
Helgi Valur Fredriksson, Hamid Jafari (2010-05-21). To improvement the target company’s manufacturing process by applying lean principles, including using and analyzing the internal value stream mapping. As more and more companies have paid attention to implement lean thinking in their manufacturing process, the value stream mapping played an important role for many companies to make a transition from their traditional production systems to lean systems. The content and resources of this master thesis come from an American furniture company named KAMA which mainly produces office furniture with different components. Although there are various types of products, the authors merely focus on the office chair products. This research is an attempt
Use the Overhead Cost Activity Analysis in Exhibit 5 and other data on manufacturing costs to estimate product costs for values, pumps and flow controllers.
The value chain is one of the critical elements of a company’s strategy in today’s competitive world, because company’s profit depends on how the successful and efficient it runs its operations and how the end product appeals to the customers at a price that covers all the expenses of the company.
It is therefore important to use additional "flowcharts" control tables. These tables are used during the manufacturing process consists of the product and inspect the products while they are still in the billing process. This tool is quantifiable, its great advantage.100 pieces can be established that there are no problems during the receipt of primary material, nor in the process, but are displayed effects on stored products. Not only for this observation is displayed but the numbers is product defects not displayed until a certain point in the process.
This lean production technique involves using a range of “practices designed to reduce waste and improve productivity and quality” (Chase, Jacobs, & Aquilano, 2006). The JIT principles use tools, and techniques that allow Riordan Manufacturing “to produce and deliver products in small quantities, with short lead times, to meet specific customer need” (Chase, Jacobs, & Aquilano, 2006).
With the lean thinking process comes new ideas, systems and equipment that have been realistically applied to enhance the flow process. Methods used to deal with organization, standardization, exclusion of non-value added steps and overall visual control.
As time progress every business can find ways to be more efficient and effective. This can be achieved by analyzing each step of the process and find ways to eliminate "waste". "Waste" can be define here as variables of but limited to time, raw materials, employees, steps in the process, and or
A Value Stream Map is then created to identify process inefficiencies and value creating improvement opportunities
Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in
Fawaz A.A, Jayant, R. (2007). “Analyzing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study”, International Journal of Producti
The value chain analysis (shown in appendix) was also generated by Michael Porter. This model is referred to “identifying ways to increase the efficiency of the chain” (Investopedia, n.d.). Furthermore, the overall objective is to produce maximum value with minimum total cost and establish a competitive advantage.