Case: Value Stream Mapping

Value stream mapping involves frst developing a baseline map of the current situation of a company's external and/or internal operations, and then applying lean concepts, developing a Future state map that shows improved operations. Exhibit 12.16, for example, shows the current state with a production lead time of 4.5 days. This system is abatch/push system (indicated by striped arrows) resulting in long delays and inventory build ups. Exhibit 12.17 shows the Future state map with aproduction lead time of 0.25 day. This was accomplished by moving to acontinuous-flow pull system and attacking the seven wastes. Value stream mapping uses a number of special icons and display Format of boxes and flows. For a more complete discussion of the methodology, see Jared Lovellep.

\fSuppliers Production control (ERP) Customer Daily Daily Machine 1 Combine Machine 2 Assembly FIFO 90 machines I and 910 2 into a single machine cell 5 min Production .25 day One-piece 1.2 min One-piece 2.2 min lead = .25 day flow flow Process time = 3.9 min. Source: Jared Lovelle, "Mapping the Value Stream," NIE Solutions 33, no. 2 (February 2001), p. 30