Value Stream Mapping

Topics: Value stream mapping, Value added, Process management Pages: 5 (1784 words) Published: April 27, 2012
Value Stream Mapping is a method of creating a “ One page picture “ of all the processes that occur in a company, from the time a customer places an order for a product, until the customer has received that product. Several things are correlated with value stream maps in businesses. Some examples include value-adding processes, non-value-adding (waste) processes, and cycle time. That being said, the process that we chose to analyze is Barnes and Noble, Inc. supply chain. This process includes many activities such as, receiving, sorting, inspection, packaging, and storage. The table below lists the performance metrics that will be used in the creation of the value stream map. Table 1. Performance Metrics|

Cycle Time | Total cycle time 1 hour and 40 minutes |
Capacity| 5,000 books per week |
Utilization | 40% ( 2,000 books per week) |
Yield Rate| 90% ( warehousing , non-manufacturing) |

In the present paper, the role value stream maps play in businesses will be investigated. The following literature reviews attempt to demonstrate the importance of the value stream map to companies that use them. In an article by Magnier, he says that the goal of a value stream map is to depict material and information flows across and throughout all value-adding processes required to produce and ship the product to the customer. Two specific points were addressed for determining how a value stream map can be beneficial to a company in the article. First, during the team creation of a value stream mapping, businesses and manufacturing waste that occur in the processes can be easily identified (Magnier, 2003). Second, once the current state value stream mapping is created, it becomes the baseline for improvement and for the creation of a future state value stream mapping. The FSVSM can then be used as a world class manufacturing implementation road map (Magnier, 2003). Next the topic of waste in companies is addressed, as it relates to individual value streams. In a research article by Hines and Rich the most common waste a company incurs were discussed in great detail. These types of waste include overproduction, waiting, transport, inappropriate processing, unnecessary inventory, unnecessary motion, and defects. Overproduction is regarded as the most serious waste as it discourages a smooth flow of goods or services and is likely to inhibit quality and productivity. Such overproduction also tends to lead to excessive lead and storage times. As a result defects may not be detected early, products may deteriorate and artificial pressures on work rate may be generated. In addition, overproduction leads to excessive work-in-progress stocks which result in the physical dislocation of operations with consequent poorer communication. This state of affairs is often encouraged by bonus systems that encourage the push of unwanted goods (Hines & Rich, 1997).

When time is being used ineffectively, then the waste of waiting occurs. In a factory setting, this waste occurs whenever goods are not moving or being worked on. This waste affects both goods and workers, each spending time waiting. The ideal state should be no waiting time with a consequent faster flow of goods. Waiting time for workers may be used for training, maintenance or kaizen activities and should not result in overproduction (Hines & Rich, 1997).

The third waste, transport, involves goods being moved about. Taken to an extreme, any movement in the factory could be viewed as waste and so transport minimization rather than total removal is usually sought. In addition, double handling and excessive movements are likely to cause damage and deterioration with the distance of communication between processes proportional to the time it takes to feedback reports of poor quality and to take corrective action (Hines & Rich, 1997).

Inappropriate processing occurs in situations where overly complex solutions are found to simple procedures such...

Cited: Delivery Times, Shipping Rates, and Tax Information. (n.d.). Retrieved February 26, 2012, from Barnes & Nobles:
Hines, P., & Rich, N. (1997). The seven value stream mapping tools. International Journal of Operations & Production Management, 46-62.
Improvement, I. f. (2008). Retrieved February 28, 2012, from NHS:
Magnier, P. (2003, January 31). Retrieved February 25, 2012, from
Van Oss, P. (2006, November 13). Lean Manufacturing Demystified. Hudson Valley Business Journal .
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