More efficient supply chains in and between companies
Did you carry out the Value Stream Mapping (VSM) and feel that the company is ready for something new? If so, read on!
Case studies indicate potential reductions of about 50% in throughput time along with other major time savings, such as handling time by focusing on the activities in the supply chain which lie between the traditional "value creating" processes.
Value Stream Mapping (VSM) is generally limited to within the factory's walls. By doing this, you risk the analysis missing the parts of the flow that can have a huge impact on parameters such as capital binding and throughput time. There are often "hidden" activities in the supply chain, such as third-party suppliers, handling, transport, storage and administration. These activities are visualized in the "VSM – supply chain" process.
VSM – Supply chain starts by defining three new types of activities: administration, handling and transport. The activities (along with warehousing) are mapped when the image of the current situation is created and are targeted for improvement when the future scenario is set up.
Traditional VSM uses eight questions to move from the current to a future situation. A similar checklist has been created in VSM – supply chains, but this one only consists of six questions. The aim is to create, as far as possible, a continuous flow without overproduction in the supply chain, while also simplifying administration and management of the sourcing process.
Key indicators – output variables
The method uses a number of parameters (output variables), which are categorised into primary and secondary. The choice of key figures varies from company to company but must initially cover the three categories of quality, quantity and flexibility. At the same time, parameters such as safety, working environment and external environment must not deteriorate. The key figures and their values are determined by mapping the current situation and progress is assessed when the future supply chain is set up.
Supply chain workshop
Swerea IVF offers a workshop where the method is taught and tested on a selected value stream from the company, either an internal stream or the stream in a supply chain. The scope of the workshop varies depending on the type of value stream but it usually lasts two days.
- Download the report of the case study in pdf format
- More information about this and several other case studies
- Information sheet about the workshop in pdf format