Value Stream Mapping (VSM) is an important tool for implementing lean philosophy. The concept of Lean is a systematical approach to identify and eliminate waste through continuous improvement. The value stream initiates at the concept and ends when delivered to customer. In this case study a current state map is prepared and analyzed and suggested to improve the process. A case study is carried out at Lear Corporation Halol.
Keywords –Value Stream Mapping, Lean, Current State Map
1. Introduction
Companies are continually striving to increase productivity and output of their operations. Their goal is to satisfy the customer with the exact product, quality, quantity, and price in the shortest amount of time. Lean has been originally created and defined as the process of eliminating waste. [1] Toyota along with the support a system to reduce or eliminate waste and non-value added activities from the various processes. [3] A value stream is the set of processes required to transform raw materials into finished goods that customer’s value. Mapping of the value stream aids the identification of value adding and non-value adding activities. [2] Some examples are listed below:
Value-added activities
Cutting, Painting, Assembling etc.
Non-value added activities
Inspection, Sorting, Moving etc.
A value stream map is an end-to-end collection of processes that creates value for the customer.
Basically VSM has three types
1. Process VSM – In process VSM, material and information flow with in a particular cell or production line.
2. Factory level or door to door VSM –In factory level VSM, material and information flow within a four walls of a factory
3. Extended level VSM – Focusing material and informational flow of several companies.
In th...
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Works Cited
[1] Juan C Tinoco [2004] “Implementation of Lean Manufacturing”
[2] R.M.Belokar, Vikas Kumar, Sandeep Singh Kharb, “An application of value stream mapping in automotive industry”, IJITEE, July-2012, pp 152-157
[3]G.Saranya, Mr.S.B. Nithyananth, “Improvement of crankshaft assembly supply chain using lean techniques”, IJMER, Apr-2012, pp-403-406
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[4]Rahul R Joshi, Prof G.R.Naik, “Process improvement by using value stream mapping”, IJERT, July-2012.
[5]J.Dinesh, A.Prabhukarthi, “Reduction of lead time using value stream mapping in pump manufacturing industry”, MISSA, April-2013.
[6] Soniya Parihar, Sanjay Jain, Lokesh Bajpai, “value stream mapping: case study of assembly process”, IJERT, Oct-2012.
[7] Anderes Nielsen, “Getting started with value stream mapping, 2008.
[8] Rother M., J.Shook, “Learning to see”, Lean Enterprise Institute, 1998.
Value Proposition is defined as "A business or marketing statement that summarizes why a consumer should buy a product or use a service”. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings." To structure a proper value proposition for a company, you must view the business model and three identifying features of the business. These three features are the Goals, Core Activities, and the Product Market Focus. The goal of a company is what it aims to accomplish. In regards to Imperial Oil ltd., their main end goal would be to create profits for their shareholders and to increase the overall value of the company. With creating more value to the company, the business can use funds to access and develop more research and advance their technology in growing the corporation. The core activities of the business are what value creating tasks will help the business run properly and how t...
Lean Six Sigma is a methodology that creates processes within an organization to cut waste and improve the company’s performance. However, studies have shown that over the past decade applying Lean Manufacturing and Six Sigma can create problems for companies financially and potential problems for employees. Companies should take great care before implementing a Lean Six Sigma solution because in some instances, going lean can do more harm than good both financially for the organization as well as destroying employee loyalty and moral.
Persoon, T.J., Zaleski, S., & Frerichs, J., (2006) Improving preanalytic processes using the principles of lean production (Toyota Production System). Am J Clin Pathol. 2016 Oct;3(9):278-78. 2006 Jan;125(1):16-25.
For organizations who have committed to invest and deploy quality systems improvement programs, it is a huge task for every member who is a part of the transformation. The benefits are felt once completed and outweigh the cost from a long-term standpoint. Col. Larsen offers a compelling argument that Lean principles, when properly applied, also result in significant improvement and transcends industry boundaries. Leadership from all levels must challenge traditional approaches, communicate, and execute as a team to design and obtain excellence in governance of safety.
The definition of value discipline is a competitive plan/strategy which describes who a firm is and what they do. It is the essential piece of decision making for every strategic plan in the company. The decision making capabilities outlined by the value discipline shapes the culture of the company.
The tool essentially shows the chain of activities required to develop and deliver the products. The effectiveness of the organization vastly improves when all the key activities such as customer, vendor, suppliers and partner within the value chain working smoothly. The value chain used to reduce operational and production cost using low-cost producer strategy. If two service or products are delivery by two separate divisions for two different markets, there are functionality and process that can be integrated to save cost.
We encourage the development and application of innovations, best practices, Lean tools and techniques. In order to grow the capabilities of our workforce we provide bespoke training and support through commitment. As a result the company maintains a market head position and benefits from a fully engaged and satisfied workforce.
Value chain model highlights specific activities where the information systems could be applied. This model is set to identify leverage points in which IS could have a strategic impact to enhance company’s competitive position. The value chain perceives firm as a series of interconnected activities that add a margin of value.
Saha, A (2011) Mapping of Porter’s value chain activities into business functional units, http://www.managementexchange.com/hack/mapping-porter%E2%80%99s-value-chain-activities-business-functional-units accessed: 18 Jan 2014
Kumar S & Craig S, 2007, 'Dell, Inc.'s closed loop supply chain for computer assembly plants', Information Knowledge Systems Management 6, 197-214, IOS Press.
Value chain analyses a firm 's internal activities such as planning, production, and development, packaging and distribution so as to create value for clients. The function of the value chain is to identify the sources for cost reduction along with quality improvement. It means value chain is used to identify the strong and weak points, positive and negative points, the scope of improvement; in a nutshell, the advantages and disadvantages of the activities taking place in the system. The value chain is also called as a strategic analysis tool and it is a well-known concept in business management industry.
GM uses this system by containment, disposition, separation, and classification. Such a system guarantees that any outcome that does not comply with specified requirements is restricted from unintended use, restrained, and dispositioned by the administrators. Accompanied by this quality control is the verifying position where first-time quality and process capacity is advanced (Drew, 2011). Every team member is informed about any modifications in the production process and who and when to summon for assistance in the event of any quandary. Every team is also included in the problem solving to reach any improvement in goals.
During the project initiation stage the business problem or opportunity is outlined whilst simultaneously various TM techniques and tools can be adopted to enhance productivity and overall project success. Value engineering is a technique which can be adopted to seize the opportunity to add value in the early stages of the project. The value of a system’s outputs is optimized by crafting a mix of performance (function) and costs. Allocating time for this technique is crucial during the initiation phase, as it deals with the value process solely during the inception and conception of a new product.
Explain how the company’s value-chain activities can be better linked to create value for the company.
The organization traditionally concentrated on the lower end of IT value chain from 2000-2004, this shifted to higher value IT services in order to obtain the competitive advantage. Value chain offers organizations ways to improve value to its customers; it can also be defined as generic strategies of differentiation and cost leadership (O’Connell, 2010).