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    Supply Chain Mapping Using VSM

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    akthaks14
    VSM or Value Stream Mapping is typically used to improve manufacturing operations but can also be applied to map supply chain networks. The document describes using a case study to map the supply chain of a skincare product launched in the UK market. Key steps included selecting the product, identifying the distribution channel, mapping the physical locations and material/information flows to create a current state map, and then developing alternatives to eliminate seven types of waste according to Lean principles. This included suggestions such as smaller and more frequent production batches, on-site quality inspections, daily store ordering, and centralized project management communication. The lesson is that meaningful supply chain improvements can be identified through relatively lower-detail mapping without specialized tools or expertise.

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    Supply Chain Mapping Using VSM

    Uploaded by

    akthaks14
    29 views5 pages
    VSM or Value Stream Mapping is typically used to improve manufacturing operations but can also be applied to map supply chain networks. The document describes using a case study to map the supply chain of a skincare product launched in the UK market. Key steps included selecting the product, identifying the distribution channel, mapping the physical locations and material/information flows to create a current state map, and then developing alternatives to eliminate seven types of waste according to Lean principles. This included suggestions such as smaller and more frequent production batches, on-site quality inspections, daily store ordering, and centralized project management communication. The lesson is that meaningful supply chain improvements can be identified through relatively lower-detail mapping without specialized tools or expertise.

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    VSM or Value Stream Mapping is typically used to improve manufacturing operations but can also be applied to map supply chain networks. The document describes using a case study to map the supply chain of a skincare product launched in the UK market. Key steps included selecting the product, identifying the distribution channel, mapping the physical locations and material/information flows to create a current state map, and then developing alternatives to eliminate seven types of waste according to Lean principles. This included suggestions such as smaller and more frequent production batches, on-site quality inspections, daily store ordering, and centralized project management communication. The lesson is that meaningful supply chain improvements can be identified through relatively lower-detail mapping without specialized tools or expertise.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    29 views5 pages

    Supply Chain Mapping Using VSM

    Uploaded by

    akthaks14
    VSM or Value Stream Mapping is typically used to improve manufacturing operations but can also be applied to map supply chain networks. The document describes using a case study to map the supply chain of a skincare product launched in the UK market. Key steps included selecting the product, identifying the distribution channel, mapping the physical locations and material/information flows to create a current state map, and then developing alternatives to eliminate seven types of waste according to Lean principles. This included suggestions such as smaller and more frequent production batches, on-site quality inspections, daily store ordering, and centralized project management communication. The lesson is that meaningful supply chain improvements can be identified through relatively lower-detail mapping without specialized tools or expertise.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Supply Chain Mapping Using VSM

    VSM or Value Stream Mapping is a tool originated by Toyota as part of Toyota Production
    System, which is primarily used to improve performance in a shop floor environment. The
    concept is very practical then supply chain management professionals adapt VSM as a
    supply chain network mapping method.

    However, a major constraint for VSM is that it requires extensive data. Then, this article will
    explain how to simplify the analysis using an actual case study.

    - Select Product: This project is an example of the customer who is the retailer in the UK who
    offers skincare products to the international market. The product launch delay will cause lost
    sales, bad customer service, bad brand image and brand's switching. Then, the product
    included in the analysis should be strategically important because too many products mean
    too many details on the map.

    - Identify Distribution Channel: From the first step, we already know who are the members of
    the supply chain at the upstream level. Then, we should know the distribution channel so we
    can add downstream members in the value stream.

    - Map Physical Location: At this stage, we should be ready to put the physical locations in a
    value stream. After that, we should add the material flow into the map. Production cycle time
    can be added to the map here.
    From the above example, every supplier sends raw materials to a manufacturer for final
    assembly.

    - Identify Information Flow: According to this map, each supplier needs to send the samples
    to a retailer for approval before the commercial production run. Information flow covers the
    order status, product testing and purchasing info. There are 2 types of information flow
    (manual and electronic information). At this stage, it's called a Current State Map.

    - Develop Alternatives: At this point, a project team should try to identify 7 waste based on
    the Lean Manufacturing Principle. After that, a brainstorming session should be conducted to
    find a way to eliminate waste. More info for this example is as below,
    1. Overproduction - producing one big batch can cause an idle time in the downstream
    process. If raw material suppliers produce a smaller batch for assembling, a retailer in the UK
    will get some finished goods earlier.

    2. Defects - the defects from an upstream process can cause trouble to the downstream
    process. Counting on an in-house inspection is not enough. It is useful to send a quality
    inspector to conduct an on-site inspection to minimize defects and re-inspection at a
    downstream process (as in six sigma initiative.)

    3. Unnecessary Inventory - the cost of storage space in urban areas is very expensive. If
    retail stores reduce the ordering frequency from weekly to 2 times a week or even daily
    ordering, inventory holding costs and logistics cost will be significantly reduced.
    4. Unnecessary Motion - retail stores usually have a limited storage space, then the pack
    size of the product is usually smaller. If the concept of store-ready packaging is utilized, a
    merchandiser's warehouse doesn't have to break carton of 24 units into a carton of 6 units,
    this helps to save an unnecessary motion in pack process. 

    5. Unnecessary Processing - also, a merchandiser's warehouse can make the drop-shipping


    direct to retail stores. This eliminates Unnecessary Processing at a retailer's warehouse.

    6. Unnecessary Transportation - many retailers in the UK use suppliers in more than one
    country for similar products to spread supply risk. Anyway, suppliers in China and Thailand
    have to ship products via feeder vessel to a bigger port in Malaysia or Singapore for the
    vessel to Europe. The consolidation of cargo at the only one port may help to increase the
    negotiation power with shipping lines. The result will be the possibility to use direct vessel
    (less transit time) and decrease a cargo shut off in case of low space availability. 
    7. Waiting - the retailer has to wait for the product samples from each supplier for approval,
    this usually causes a production delay. In order to reduce waiting time at the retailer,
    communication should be done through the centralized system (instead of communication
    between the merchandiser and each supplier). Visibility to current project management
    status will help a retailer to make a timely decision and each supplier will have to speed up
    the process to catch up with others.

    Lesson Learned from Supply Chain Mapping Case Study


    As you can see, you can discover ways to improve supply chain operations through supply
    chain network mapping exercise without the need for any special software or strategic
    planning guru.

    Many VSM books suggest that a production cycle time, inventory level, quality level,
    capacity, non-value added activities should be on the map. This is pretty normal for the
    automobile industry, but it's difficult to do in other industries. Anyway, the supply chain
    network mapping with lower levels of details can also yield good results.

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