Assignment 1 - Value Stream Mapping Ordering goods over the internet. The following is a list of activities that need to be performed as part of an on-line retail system. For the purposes of this exercise the list of activities has been kept simple. 1. Customer orders goods over the internet 2. Supplier receives and processes the order. If the goods are not in stock the customer receives a message on the web page advising lack of availability. 3. The components are collected from the warehouse ready for inspection 4. The components are checked against the order. If components do not match order go back to step 3. 5. The components are packed ready for shipping 6. The order is shipped 7. Customer receives delivery of the order. The following is a list of estimated times for each activity with a quality rating.

N.B process time is average Your task 1. Using the information available, draw up a simple Value Stream Map (VSM) to illustrate the current process. 2. Use your chart to highlight potential areas of waste. Augment your chart with waste symbols. 3. Where are the most urgent matters to address with regards to waste? 4. What is the ratio between value added and non-value added time? |5. How could the ratio be improved? 6. What is the takt time and how does this help to recognise waste? 7. What is the total quality rating for this process?

Process Customer Order orders processe goods d Component s collected Component Component s checked s packed against order Order shippe d Metrics 0 1 hour 2 hours 4 hours 2 hours Waiting Time (NVA) 24 hours 3 mins 10 mins 10 mins 15 mins 25 mins Process time (VA) 40 mins 3 mins 73 mins 203 mins 458 mins Lead Time 603 mins 2083 mins 100 94 98 100 98 1 2 N 8 B 20 60 Quality % 98 Quality 0 cost (/$/) Available 14 Hrs work time 14 Hrs 14 Hrs 14 Hrs 14 Hrs 14 Hrs 42 42 42 42 42 Customer 42 order demand s per day Takt time 20 Mins 20 Mins 20 Mins 20 Mins 20 Mins 20 Mins