Value Stream Mapping
Value Stream Mapping consists of four steps;
- select a portion of the supply chain
- map the Current State
- agree and document points of greatest waste reduction using a Future State
- create a fully costed transformation plan
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 Maps are created at 3 different 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 version 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, and very 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 ultimate 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. These improvements have a positive impact on the key leading flow metrics for an entire supply chain;
- Lead time
- Inventory Turns
- Inventory carrying costs
- Perfect-order execution
- Demand Amplification
- Quality Performance
Factory Level Value Stream Mapping
An actual factory level Value Stream Map is shown below. The details have been changed in order to protect client confidentiality.
For high technology process industries (such as food & beverage) the drum or drumbeat 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 establish key leverage points within a factory that can be used for increasing the flow of information and product.
Key leading flow metrics for the factory level flow console include;
- Every Product Every (EPE)
- Crewed time
- Usable time
- Utilised time
- External defects
A process map at the line level of a factory is where we get the base data for our Value Stream Maps.
For more information on our unique Process Mapping technique go to the Bullant Filters page.