Value Stream Mapping
Value Stream Maps are a powerful way of of identifying and communicating big opportunities for increasing your return on total assets.
We create Value Stream Maps using an approach that has been modified for the process industry (food & beverage, liquids, sheet goods, solid & fluid packaging operations).
Value Stream Mapping as a type of modelling process that consists of four steps;
- select a discrete part of the supply chain based on an opportunity
- map the Current State
- agree and document points of greatest performance benefit using a Future State
- identify the Performance Centred Improvements and create a fully costed transformation plan
Value Stream Maps are created at 2 levels;
Supply Chain Level Value Stream Mapping
A Value Stream Map at the supply chain level is used to visually represent a total end-to-end supply chain. A simplified schematic is shown below.
The biggest issue with most supply chains is that each buffer is controlled by different people or departments. Consequently buffers fight against each other as the people controlling them strive for different, localised, performance outcomes.
Maximum flow for the supply chain is only achieved when the performance of each buffer is monitored and adjusted according to the needs of the entire supply system.
The measure of success with this Value Stream Map, is the positive impact it has on the ROI. To achieve this, improvements are identified on a Future State map. Metrics identified in a supply chain level Value Stream Map include;
- Lead time
- Inventory Turns
- Inventory carrying costs
- Perfect-order execution
- Demand Amplification
- Quality Performance
Factory Level Value Stream Mapping
A simplified factory level Value Stream Map is shown below.
For high technology process industries the drum of the supply chain is located at the company-owned, or 3rd party, factory. The successful operation of the supply chain is determined by how well buffers are regulated upstream and downstream of the drum so as to maximise the flow of raw materials and finished product to the customer.
A factory level Value Stream Map is used to identify high-value improvement opportunities within a factory.
Metrics used in the factory level Value Stream Map include;
- Every Product Every (EPE)
- Crewed time
- Usable time
- Utilised time
- External defects