Value Stream in Lean Manufacturing

This way the IT department can understand what the higher level and lower level employees need for system stability and a better graphical interface. Another plan of action would include the method of Systems Development Life Cycle or SDLC. The phases of this method are planning, analysis, system design, implementation and operation. First we must plan on what exactly we are trying to accomplish. We know we need to upgrade the Riordan Manufacturing system. Next we must analyze the system and look for problematic errors. A project proposal can be essential to launching a system analysis (Farah, 2013). These are things to keep in mind: understand the business situation or problem, understand the significance to the problem in the organization, think of alternate solutions, the use of computer information systems for solutions, find people interested in the solving the problem (Farah, 2013). This plan is used to decrease redundancies, errors, and increase security. Finding all the weak spots in the company will help in the improvement of integrating an updated efficiently functioning system. Feasibility is important to account for when upgrading the system. Integrating a CRM will help to work with customers and understand their needs and wants to benefit the company and the relationship with their customers. Designing the system will involve knowing what kind of software is needed to store and

It is observable that the standard procedure issue restricting company progress is a notably derelict network. The Enterprise Resource Planning (ERP) and Materials Requirements Planning (MRP) servers are outdated and stand out from the rest of the systems set up. Integration of the servers will be executed to address the company’s customer relation, human resource, sales and order, finance and inventory issues. Integration will be the goal after upgrades are incorporated in the system’s infrastructure. Recurrent technological advancement compels innovation in apt acknowledgement of agile enterprise. It is essential for Riordan to transition appropriately to sustain a contemporary pace that equals the requirements of strong customer levels. The overall decision making process rudimentary to Riordan’s organizational headway entails agile enterprise in its management system. Primarily, Riordan must contend with its inventory system as manual implementation causes status delay which can halt production, sales, purchasing, and overall deference from the

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1. Define value creation and the components that can be used to determine value creation per unit. How is value creation related to competitive advantage?

Networked organizations are known for promoting flexible, adaptive and creative business environments. However, a company must be able to maintain operational process control. Randy Fields constantly encouraged his employees at all levels to be creative in new technology innovation. For example, an accounts payable clerk introduced the idea of automating recurring invoices, which led to the development of a new automated system that was used by all of the stores. Randy welcomed these types of system innovations. He wanted to put as much intelligence and decision making controls into the store computers as possible.

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The current environment, for Riordan 's departments, is requiring increased labor in order to process information. The slow consolidation of the operational processes of two divisions with different operation software has become a financial threat to Riordan Manufacturing. Each of the divisions lacks modern technology that is needed to run a highly efficient corporation. Therefore, there is not enough information being shared between customers, sales, finance, manufacturing, and management. The upgrades will make their performance consistent with more rapidly and more efficient company locations; corporate headquarters,

Value Stream Mapping (VSM) allows user to create a concrete plan to make most efficient use of the available resources. VSM is one of the most powerful lean tool for an organization in implementing and improving on its lean journey. VSM shows the all the process from order entry to delivery. The value stream in a VSM is the point at which value is actually added to the product or service by changing its market form or function. Value adding activities can be things like: machining, assembly, welding, folding and so on.

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

* Implement a Pull System where customer demand dictates the production level. Visual controls are used to trigger upstream links in the value stream to initiate additional productions. Automatically signals replenish the parts of upstream links without the need to prepare paperwork such as a material requisition.

If a firm hopes to deliver value to its customers, it is important for said firms to understand how and where value is created and potentially lost. In today’s business environment, implementing traditional value chains are resulting in firms falling behind…losing its competitive advantage. Today’s value chains are a blend of both traditional and virtual value chains. Grounded in both value chains is technology. Those firms that adopt emerging enterprise technologies are able to move at a faster pace becoming more efficient and effective than their counterparts and competition. Enterprise technology affords firms the ability to coordinate and streamline business processes/activities thereby improving the value chain.These technologies intergrate a variety of different applications, protocols and formats. The more commonly known formats are Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM). For the purpose of this paper, this discussion will focus on Enterprise Resource Planning.

Value chain has been increasingly used in businesses as a tool to increase cooperation between production chain units in order to decrease delivery times of products/ services to consumers and coordinating communication between those units, this in return will reduce inventories and increase customer satisfaction. Enterprise technology has been used as an important tool in streamlining business process and making the value chain of an organization better. Its use has played a significant role in the coordination all the business processes in organizations from warehousing, procurement, production, marketing and sales, quality control and delivery to customers. The different technologies used include; Enterprise Resource Planning (ERP), Customer Relationship Management and Supply Chain Management.

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.

This project work has given very good information on the usage of the major tools of Value stream mapping. It has also provided me knowledge on the Single piece flow, Cell design, material presentation & super market to support for the Takted manufacturing assembly cell. A lot of analysis like PQ, Capacity Analysis, line balancing for cell design and super market, material presentation & water spider for wastes elimination from the assembly process.

Productivity improvement must now focus on value creation rather than on minimization of inputs. Higher customer value is created when the products and services meet customer needs for utility, timeliness, esteem,