Lean Management I Assignment 2: Value Stream Assessment and Load Balance Diagrams Create, analyze and submit the items requested below based upon the Basin-Deals.com scenario provided. 1. Create a Value Stream Map (VSM) for Basin-Deals.com's order fulfillment operation. You can draw this by hand if that's easier and more efficient. 2. What is the % Value Added Time? 3. Create a Load Balance Diagram (LBD) for Basin-Deals.com's order fulfillment operation based upon a single 8-hour ( 480 minute) shift. Comment on the interpretation of the diagram and possible recommendations. 4. Based on the VSM, the LBD and the scenario description, provide a list of the wastes (TRIMWOOD) you see or suspect in the operation and where they occur. 5. Which operation do you suspect might benefit from a spaghetti diagram most? Why? As a boutique online retail provider, Basin-Deals.com has essentially 5 process steps every order must pass through before an order is filled. The Basin-Deal.com sees approximately 870 orders each 30 -day month and operates 24 hours a day, 7 days a week, Orders arrive from customers the outside the operation and after going through the order fulfillment process are either filled or denied for various reasons. The order load is unpredictable day to day and unbalanced hour to hour. The end-product of the Basin-Deals.com team is a fulfilled order shipped within 24 hours. A summary of the key processes based on observation of the last 48 hours are as follows: Process Information 1. Order intake: Orders can arrive via web portal or phone call. Orders placed via phone are entered through the web portal regardless. All orders require some staff intervention. The order intake staff sits at a desk for their entire shift, except for breaks of course. Order intake process information are observed as follows: a. Order information collection and recording with 1 Order Intake staff. b. Cycle time is about 2 minutes c. There is no change over time d. The Intake Staff is available 95% of the time e. There is typically no waiting to place an order f. The Order Intake staff uploads to the Basin-Deals.com proprietary order fulfillment system called "BDO Express" 2. Credit Check: A Financial Analyst categorizes orders by priority code. The Financial Analyst accesses the BDO Express system to get each order one-at-a-time. The Financial Analyst then checks credit history and credit availability for payment. The Financial Analyst often logs in and out of many system, internal and external to Basin-Deals.com, to get the appropriate information while orders wait for further processing. a. The process has one Financial Analyst b. Cycle time is about 3 minutes c. There is no change over time d. A Financial Analyst is always available e. On average there are 2 orders waiting to be checked f. The Financial Analyst uploads the credit approval status to the BDO Express system. The Financial Analyst also creates a paper Order Form with the same information for Order Picking. 3. Order Picking: Orders are manually picked by multiple staff, depending upon the product types requested on the order forms received. a. Manual process with 6 Order Picking staff avallable to pull orders. Staff move from area to area and rack to rack depending upon the order placed. b. Average cycle time is about 60 minutes c. There is no change-over required d. Availability of staff to pick orders is 100% e. There are typically 12 orders waiting to be picked at any given time f. Order Picking Staff updates the Order Form and returns it to an Order In-Basket signifying that the order has been picked. Order status is also updated in the BDO Express system. 4. Order Packaging: Orders are custom packaged depending upon the type of item(s) in the order. a. Manual process with 9 staff b. Cycle time is 90 minutes on average c. A change-over of the packaging area is required for packing equipment and material type, and cleaning at the end of this process. Change-over takes about 5 minutes per order. d. Staff avallability at this step is about 90% e. There are generally about 8 orders waiting to be packed at any given time. f. Order Packaging staff update the BDO Express system once the entire order has been packaged. 5. Logistics: Completed packages are staged at a dock and loaded into 3rd Party Logistics providers' vehicles depending upon the contents of the packaging. a. There are two Logistics staff b. Cycle time to complete logistics for each package is about 10 minutes on average c. There is no change-over time d. Staff availability to disposition orders is about 70% e. There are typically 7 orders waiting for logistics disposition. After logistics disposition there are typically 3 orders, on average, at the end of the shift either waiting for special transport arrangements, or waiting due to some other issue - missing information, missing paperwork, illegible information, etc. These issues are nearly always resolved by the end of the next shift ( 8 hours) f. Since these orders are waiting to for disposition, the Logistics staff spend a lot of time running around expediting orders to resolve these various issues. Once resolved, Logistics staff update the order status electronically in the BDO Express system. The paper Order Forms are updated by Logistics, and are collected and filed at regular intervals