Value stream mapping to create value and eliminate muda

2. Karlstad Business School
Handelshögskolan vid Karlstads Universitet
Course code: FEAD50
Course name: Logistics
Title of the work: Value-Stream Mapping to Create Value and
Eliminate Muda
Date of Submission: 2012-11-16
Name of the student:
Family name Given name Person number
El Bouassami Mohammed 19801027-T297
Shurrab Hafez 19870801-7754
Name of the teacher: Martin Behre, Jonas Larsson
Name of the administrator: Frania Johansson

3. I
ABSTRACT
The challenges business confronts nowadays are increasing. The customer is
becoming more and more customized than before. The competiveness is getting more
complicated and comprehensive. The money is becoming more expensive than ever. The
inflation rates are being not the same over short periods of time. All of these conditions
and others impose restrictions and determine special specifications and criteria to the
successful business. It may be easier to run a business than to sustain it within the supply
chain. It may be more difficult to plan and control an efficient supply chain.
The shortest successful way is to learn from others, who had to improve themselves
radically to survive in the market. Acme stamping & wire forming corporation has
presented a worth telling example of a business wanted to survived when the others were
being better. The main issue was that the value within the supply chain was getting
greater by eliminating wastes and adopting lean thinking of pull systems. Acme
incorporated lean thinking as a new approach to adopt. The first tool Acme used to see
how the value flows within its business is Value Stream Mapping “VSM”. This report
exposes how Acme used VSM to analyze the value flow, by drawing the Current State
map, and then improve it, by drawing the Future State map. Many key issues are
discusses, where not all of results could be generalized. That led to conclude that a part of
what Acme did to gain the benefits of adopting lean could be desirable for industries that
have similar aspects, while the other part may be adjusted to fit other businesses and
industries.
It was difficult to rule out that a business may not get the same expected benefits as
other kind of businesses do. Moreover, the choice of lean thinking in the first place may
not be the best choice under some conditions. But no doubt that when lean thinking is
adopted properly, it is worth it.
Key words: Supply chain, value stream, value stream mapping, flow, process

4. II
TABLE OF CONTENTS
ABSTRACT................................................................................................................................I
TABLE OF CONTENTS...........................................................................................................II
LIST OF TABLES & FIGURES ............................................................................................. III
1. INTRODUCTION ..........................................................................................................- 1 -
2. METHODOLOGY .........................................................................................................- 2 -
3. THEORY ........................................................................................................................- 2 -
3.1. Value Stream Mapping (VSM)................................................................................- 3 -
3.2. Why Value Stream Mapping ...................................................................................- 3 -
3.3. The Seven Wastes....................................................................................................- 4 -
3.4. Steps to Value Stream Mapping ..............................................................................- 5 -
4. CASE STUDY: ACME STAMPING & WIRE FORMING Co ....................................- 6 -
4.1. The Construction of the “Current State Map”.........................................................- 6 -
4.2. The Relevant Information of the Information Flow ................................................- 7 -
4.3. The Relevant Information of the Material Flow......................................................- 7 -
4.4. The Construction of the Future State Map ..............................................................- 9 -
4.4.1. Takt Time .........................................................................................................- 9 -
4.4.2. Finished Product Buffer Decision....................................................................- 9 -
4.4.3. The Continuous Flow.......................................................................................- 9 -
4.4.4. Setting Buffers................................................................................................- 10 -
4.4.5. Pacemaker Process .........................................................................................- 10 -
4.4.6. Production Mix Leveling ...............................................................................- 10 -
4.4.7. Consistent Increment of Work .......................................................................- 11 -
4.5. Discussion..............................................................................................................- 12 -
5. CONCLUSION.............................................................................................................- 14 -
6. REFERENCES .............................................................................................................- 15 -

5. III
LIST OF TABLES & FIGURES
Table 1- The data of Acme Steering Bracket Production Processes......................................- 8 -
Table 2- Acme load-leveling box for steering brackets .......................................................- 11 -
Table 3- Acme Stamping Lead-Time Improvement ............................................................- 12 -
Figure 1- Value Stream Mapping tool....................................................................................- 4 -
Figure 2- The Current State Map of LH and RH Brackets Flow ...........................................- 8 -
Figure 3- Steering Bracket Future State Map.......................................................................- 11 -

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1. INTRODUCTION
There are several definitions of the term „Supply Chain‟, but in general we can say
that a Supply Chain is a combination of all the different independent activities what are
connected together through the flow and transformation of a basic product (for example
raw material) to the ready to consume goods for end customers. In another word Supply
Chain is sort of organization of several operations that is adding value to either products
or services for the benefits of the customer. We can talk about Supply Chain just when a
number of conditions are fulfilled. For example it should be formed of more than one
organization, where these organizations don‟t belong to the same ownership, but at the
same time those companies are very cooperative in matter of adding value to a product
during all kind of flow process. The function of Supply Chain in the production sector is
based mainly on four kinds of flows. Material flow starting with raw material at the
beginning of the supply chain until the finished product, information flow is a
fundamental factor for each supply chain in both directions; such information flow could
be demand, forecasting etc. The third flow is financial flow (the money flow), which is
the backbone of any supply chain and without it is impossible to continue functioning.
Finally, the commercial flow is the ownership of the goods during material flow in supply
chain changes from one company to another until the end customer. (Lu. 2011)
For many years, and because of its positive outcomes lean thinking principals has
been applied in all kind of industries and services, aiming to reduce defects, and waste
concerning material, work process, time consumed, information, and minimize costs
without affecting the product added value for the end customer, so we can say that each
non- value adding activity is a waste that should be eliminated. Similarly, and in order to
make supply chain lean, there are several steps that should be followed to achieve lean
within supply chain. Starting with waste reduction because it is a fundamental factor to
reach lean, and where all supply chain members should work together to eliminate all the
non- added value elements. Demand management is also important in matter of how
companies manage to master the demand and also cooperation with their customers and
suppliers. Other key to be lean is by introducing standardization of the process, because it
ameliorates the continuous flow to function smoothly through both company and supply
chain. Lean thinking also relies on engaging people by motivating everyone in the

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organization from top leaders to basic workers without forgetting the important role of
operators and engineers. Collaboration is also one of the tips to be lean, it helps
cooperation between organizations within supply chain by minimizing the business risk
of all partners. Last but not least, lean theory is basically relying on continuous
improvement, so there is always need for effort to improve products, services or process.
(Lu. 2011)
The question that appears on the surface is how to identify, and recognize waste
within a supply chain in order to eliminate it. The answer for this question is by using a
lean manufacturing tool called Value Stream Mapping (VSM), where it´s used to analyze
and evaluate work process in a manufacturing operation. The purpose of this paper is to
cover the basics of Value Stream Mapping, answering the following questions:
 What is Value Stream Mapping?
 Why using Value Stream Mapping?
 What are the wastes that should be eliminated?
 What are the steps for Value Stream Mapping?
Beside the theoretical part, this paper presents a real case study of a company where
value stream mapping approach were used to improve productivity and capacity
utilization, to give the reader a better understanding of this tool.
2. METHODOLOGY
The method used in this report has been based on relevant books, scientific articles
and lecture materials that corresponded to our purpose. Identification of VSM has been
used in the theoretical part, and also a case study has been presented and discussed.
3. THEORY
When we are talking about value stream, we mean by that both value added and non-
value added actions that took a place during all the stages process of making a product
starting from raw material until its final destination between customer hands. Meanwhile
value stream mapping is a task to draw a graphical overview of the material, information,
and process flow within value stream.

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3.1. Value Stream Mapping (VSM)
The concept of Value Stream Mapping was originally developed by Taiichi Ohno
and the Operations Management Consulting Division of Toyota to help suppliers learn
the Toyota Production System. VSM is a tool that helps us to see and understand all the
processes that occur in a company, using a flow of drawn diagram showing the process to
reflect the current state of the operation from the time a customer place an order for a
product, until he receive it. Value Stream Mapping is well known for identifying waste
within manufacturing, production and business processes, helping removing non-value-
adding steps in a supply chain. The non-value actions are identified in each step and
between each step by their waste of time and resources. The process is analyzed for
opportunity to drastically reduce and simplify it to the fewest actions necessary.
Eliminating waste the proportion of value adding time in the whole process rises and the
process throughput speed is increased. This makes the redesigned process more effective
(the right things are being done) and more efficient (needing fewer resources). The goals
behind it to depict material and information flow across all value adding processes
needed to made and deliver goods to the customer. Value Stream Mapping highlight all
of the processes either value adding and also non-value adding production stages.
(Vinodh et all, 2010)
3.2. Why Value Stream Mapping
There are several reasons why value stream mapping tool should be used. At the time
of creation of value stream mapping, business and manufacturing waste can be easily
identified, it helps to see clearly waste in the flow and also the source of it in the value
stream. This tool allow us to visualize the relation between the information flow and the
material flow, it form the basis of an implementation plan. It is also it is much more
useful than other tools and layout diagrams that produce a tally of non-value-added steps,
lead time, distance traveled, the amount of inventory, and so on. Value stream mapping
provide the means to see the material, process and information flows by which you
describe in detail how your facility should operate in order to create productive flow.
Value stream mapping is a good tool that helps describing what you are actually going to
do to affect the results of your finding during drawing value stream diagram, it supports
the prioritization of continuous improvement activities at the values stream. As the visual
representation of every process is created, it becomes the baseline for improvement and

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for the creation of a Future State Value Stream Mapping, and finally it provides the basis
for facility layout. (Vinodh et all, 2010)
Figure 1- Value Stream Mapping tool (source: (Lu. 2011))
3.3. The Seven Wastes
As we mentioned earlier, waste elimination is the key factor for a successful business
both in productivity and profitability. The inventory in supply chain processes can be
done in effective way adding value to the end product, or non-adding value in this case
waste to the production of a good or service. Actually in lean thinking there are seven
major wastes, where the seven wastes is a concept from Toyota production system
created by Taiichi Ohno. The seven wastes consist of the following:
 The waste of overproduction: Is making more than the customer requires, or
pushing product to the next downstream customer too soon, it can also be
purchasing more than it is necessary.
 The waste of unnecessary inventory: is the storage of products or information
which does not add value for the customer and it costs money.
 The waste of waiting: It can be the waste of people waiting for things, like
information or materiel, or it can be a product or information waiting for the next
step in the process.
 The waste of transportation: Transportation is when we are moving a product or
information it does not come more valuable, thus there is waste.

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 The waste of inappropriate processing: Is the waste within the process itself, for
example we might use equipment or software that is inadequate, such as using
Excel for a database, or using a piece of equipment that is designed for a large
batches when we are trying to implement one peace flow.
 The waste of unnecessary motions: Actually, this is a people waste we can often
observe people walking around to find information, supplies or tools. This adds
no value.
 The waste of defects: Costing time and money, it can be products that are
defects, or information that is inaccurate or missing. (Harrison. A, Van Hoek. R,
2008)
3.4. Steps to Value Stream Mapping
Value Stream mapping tool is concentrate on the analysis and improvement of
manufacturing environments. VSM is based mainly on four major consecutive stages,
where the stages are:
 Selecting a product family: A family is a group of products that uses the same
production process, so the first stage of VSM is the selection of a product
family. Before starting, and since customers care only about their specific
products (not all the products produced by the company) it is necessary to focus
on one product family, because it is difficult, and quite complicated to do
mapping for more than one family product at the same time.
 Drawing the current state map: We can´t develop a future state map without
analyzing the current process situation. In order to create a current state map, it
is recommended to collect current state data while walking the flow beginning
with a walk along the entire value stream looking for waste as walking. There is
a need to your own stop watch and never rely on information or time that you
did not get by yourself. Independent drawing of the whole value stream by hand
using a pencil, even many people are involved is another key for a successful,
and better understanding of a current state map.
 Future state map: As we knew the purpose of value stream mapping is to detect
all sources of waste within a supply chain, and later on trying to eliminate these
waste by implementing a future state map. For drawing a future state map it is
very useful to answer a set of questions: What is takt time for the selected

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product family? Should build steering brackets directly to shipping or to a
finished goods supermarket/buffer?
 Where continuous flow could be introduced? Where buffers would be set? What
the pacemaker process? How should Acme level the production mix at the
pacemaker process? What consistent increment of work should be released and
taken away at the pacemaker process? What process improvements will be
necessary for a company value stream to flow as the future-state design
describes? Based on answers for these questions is it relevant then to develop a
future state map. All the questions will be answered in a real case study later on
in this paper.
 The value stream map: The future state map gives us a guideline of the inventory
that should be done. This paves the way to design a yearly value stream plan
based on the analysis of the future based map. (Lasa et all. 2008)
4. CASE STUDY: ACME STAMPING & WIRE FORMING
Co. (Rother & Shook, 2003)
Acme Stamping & Wire Forming Corporation is a business has been run before 30
years to produce different components of automobiles, which are supplied to the
assembly plants. Acme‟s production system has been changed to be responsive with the
evolution of supply chain challenges. The products have been grouped into product
families to be analyzed and then taken into a new world with the least possible waste. The
case shows how Acme employed Value Stream Mapping “VSM” to analyze and detect
the leanness, or waste level, of one of its product families, which is a steel instrument-
panel bracket subassembly in two types, one each for left-hand and right-hand driver
versions of the same automobile model.
The main objective of considering the case is to show how VSM could be used
helpfully and efficiently to present a comprehensive representation of the current state of
a certain flow “Current State Map”, and what the desired flow characteristics could be to
maximize the value of the supply chain “Future State Map”.
4.1. The Construction of the “Current State Map”
The first step is taken to analyze the flow is the construction of the “Current State
Map”, which in turn should reflect the most interesting and critical information needed to
detect where the improvement could be applied to increase the value. This requires

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identifying the relevant measures and gathering a valid data upon it. Then the figures that
used as standards to represent the flow elements and relationships is constructed to reflect
the real current state of the value stream to be studied, which is in this case the left-hand
and right-hand bracket. And finally, filling the relevant data has been gathered to the
constructed map.
4.2. The Relevant Information of the Information Flow
The State Street Vehicle Assembly Plant is the customer of this product family. It
receives the orders in a daily basis and sends 90/60/30-day forecasts to Acme, which are
entered to Acme‟s MRP. The order size is 12000 left-hand brackets and 6400 right-hand
brackets. Acme receives a weekly Faxed order of coil steel from Michigan Steel Co. and
issues 6-week forecast to them via MRP. The order size is 500 coil and the possible days
to be delivered on are Tuesday and Thursday. Acme‟s production control department
generates MRP-based weekly departmental requirements, such as customer order, WIP
inventory levels, F/G inventory levels, and anticipated scrap and downtime, and issues
weekly schedules to the processes.
4.3. The Relevant Information of the Material Flow
The production runs 2 shifts a day, and the processes are stamping, wielding,
assembling, packaging and shipping respectively. The total pure available production
time is 27600 sec. per shift, as there are 20 minutes should be set per shift as a break and
other similar kind of waste. The coils are held 5 day before getting into the stamping
process. There is an operator assigned to each process. The coils are pushed to the
stamping process according to FIFO queuing order. The cycle time of the stamping
machine is 1 second and the machine uptime is %85, while the time it takes to
changeover from left-hand to right-hand bracket and vice versa is 1 hour. Stamping
process in not dedicated only to this product family. Thus, the changeover is set every
two weeks to maximize the productivity and minimize the cost. Table “1” presents the
data of all Acme steering bracket production processes.

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Table 1- The data of Acme Steering Bracket Production Processes (source: (Rother & Shook, 2003))
Process
Cycle
Time
(sec.)
Changeover
Time
(sec.)
Uptime
(%)
WIP next to the process
(unit), L: lift, R: right (D): Day of Demand
Stamping 1 3600 85 4600 L - 2400 R 7.6 D
Welding “1” 39 600 100 1100 L - 600 R 1.8 D
Welding “2” 46 600 80 1600 L - 850 R 2.7 D
Assembly “1” 62 - 100 1200 L - 640 R 2 D
Assembly “2” 40 - 100 2700 L - 1440 R 4.5 D
After the required information and data are gathered, the Current State map is built
up using standard figures to a complete view. The gathered information and data are
entered to specified figures. Figure “2” shows the complete view of the Current State map
including a timeline exposes the value-added and non-value-added time over it.
Figure 2- The Current State Map of LH and RH Brackets Flow (source: (Rother & Shook, 2003))

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4.4. The Construction of the Future State Map
Acme has mapped the ideal value stream as a target to reach to. This map is
constructed upon lean thinking. Many problems, such as changeover time, are assumed to
be resolved when mapping is being done.
8 key questions guide the construction of Future State map. These questions are:
1. What is takt time of Acme for the selected product family?
2. Should Acme build steering brackets directly to shipping or to a finished goods
supermarket/buffer?
3. Where continuous flow could be introduced?
4. Where buffers would be set?
5. What the pacemaker process?
6. How should Acme level the production mix at the pacemaker process?
7. What consistent increment of work should be released and taken away at the
pacemaker process?
8. What process improvements will be necessary for Acme‟s value stream to flow as the
future-state design describes?
4.4.1. Takt Time
The take time is the amount of cycle time that allows one-unit production to meet the
total demand. The takt time = = = 60 sec. The
unexpected downtime of the production is not included in this 60 sec. So Acme may
produce faster than a unit per 60 second to recover the uncontrollable downtime events.
4.4.2. Finished Product Buffer Decision
The main factor helps in taking this kind of decision is the margin of uncertainty, or
the validity of forecast estimates. For Acme‟s case, the uncertainty level is relatively
high. So the decision has been taken to produce to a finished product buffer.
4.4.3. The Continuous Flow
The changeover time plays the main role in deciding where to assign a continuous
flow. The highest cycle time of the processes is 62 second, which is near the takt time.
The choice of buying another stamping machine was then very expensive, while
considering the same process with one hour changeover to introduce one piece flow is
impractical. Acme considered wielding and assembly processes to be grouped into one

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piece flow, as the reduction of 10 minutes changeover of the wielding processes was both
possible and feasible. The sum of relevant cycle time is 187 sec. By dividing this by the
takt time, the required number of operators is therefore 3,12. Assigning 4 operators could
be seen as an underutilization of resources, while considering continuous improvement to
assign 3 operators seems to worth it. If the cycle time for an operator out of three is
improved to be 56 sec. Then, assigning three operators fits by setting a kaizen target that
the total cycle time should not exceed 168 sec. Besides, another kaizen target that
wielding machine should always be available is to be considered as well.
4.4.4. Setting Buffers
The constraints of stamping machines leading that a buffer should be set up next to it
additionally to the one is set for the coils. According to lean concepts the batch size
should be adjusted to be , which is 60 part. But the current changeover makes it
impossible to follow. So Acme established a transitional phase, where the batch size is
initially 320 RH and 600 LH, and then by kaizen targets and production leveling the
batch size is 60 units for both products. This all contributes to a clear target of changing
to lean by moving from setting changeover every part every two weeks to every day,
shift, hour, and then to the period of time it needs to produce one batch. But Acme could
be able to reduce the changeover to less than 10 minutes, which allowed to changeover
every part every shift.
The contract changes with the supplier should be conducted in order to receive daily
orders. As the uncertainty of demand is critical, Acme will hold a half day of demand as a
safety level.
4.4.5. Pacemaker Process
The pacemaker process is the point of flow where scheduling is assigned to. It should
be the one is located at the end, downstream, of the material flow. For Acme‟s case, it is
the wielding/assembly cell.
4.4.6. Production Mix Leveling
The pacemaker process is scheduled so that to meet the demand and takt time. The
customer demand is not consistent, which requires that the production mix should be
leveled so that to be responsive and flexible. According to the daily demand of the
brackets, the demand of LH is twice of RH demand. So the mix could be RLL RLL RLL

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RLL RLL RLL RLL RLL RLL RLL RLL RLL RLL RLL RLLR over 2 shifts, R: right-
hand bracket and L: left-hand bracket.
4.4.7. Consistent Increment of Work
The brackets are packaged together in trays. Each tray contains 20 brackets. So the
consistent increment of work, which called unit pitch, is the time it takes to produce a
tray. For Acme‟s case, the steering-bracket pitch is 20 minutes. Table “2” shows how the
schedule looks like.
Table 2- Acme load-leveling box for steering brackets (source: (Rother & Shook, 2003))
shift 1 7 720
740
8 820
840
910
930
shift 2 4 420
440
5 520
540
610
630
Left Drive L L L L L
Right Drive R R R
By replacing FIFO queuing system by production and withdrawal Kanban, and
decreasing the level of finished products inventory to 2 days, the Future State element is
complete to present. Figure “3” presents the Future State map of Acme‟s selected product
family.
Figure 3- Steering Bracket Future State Map (source: (Rother & Shook, 2003))

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Table “3” presents Acme stamping lead-time improvements influence. The total
business turns have been improved from 10 turns to 52 turns a year.
Table 3- Acme Stamping Lead-Time Improvement (source: (Rother & Shook, 2003))
Coil
Stamped
Parts
Wield/Ass
WIP
Finished
Goods
Production
Lead Time
Total
Inventory
Turns
Before 5 Days 7.5 Days 6.5 Days 4.5 Days 23.6 Days 10
Continuous
Flow & Pull
2 Days 1.5 Days 0 4.5 Days 8 Days 30
With Leveling 1.5 Days 1 Day 0 2 Days 4.5 Days 53
4.5. Discussion
Acme case study represents a normal industrial business within a normal supply
chain that is aimed to be planned and controlled efficiently and competitively by being
responsive with the global change to lean thinking and Just-in-time. That requires
analyzing the potential of the business by an efficient tool such as Value Stream
Mapping. At the beginning, the Current State map is drawn to present and analyze the
current situation of the value stream. That required gathering all relevant information and
data and linking the standard icons and figures the represent the real flow elements. Then,
eight questions are answered as a guiding roadmap for drawing the Future State map,
which represents how the flow looks like after applying all required changes and
matching lean targets.
The flow of information starts upstream from the customer in the supply chain,
which is State Street Assembly co. for Acme case. So much as the information of demand
provided by State Street fits a curve without critical uncertainty, the change toward
agility and lean thinking becomes easier and more desirable. But Acme receives data that
includes critical demand uncertainty, which makes the necessity of buffers inevitable.
Such uncertainty may likely result from many issues, such as the product life cycle curve
or marketing deficiency within the subsequent businesses of the supply chain. The
uncertainty of demand is extended into the supply chain, and most likely to become
greater upstream (bullwhip effect). For instance, Acme receives 30/60/90 day forecasts
from its customer, while it sends 6 week forecasts to Michigan Steel co. Michigan Steel
sends large fixed order size in certain days, in contrast with the flexibility needed for lean
philosophy. Thus, Acme should study some terms of the agreement that had been
conducted with Michigan Steel so that Acme receives smaller order size without
restrictions for specific days. Thereby, Acme could reduce the coils inventory level.

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On the other hand, the material flow of Acme‟s steel brackets starts by receiving
coils stay two weeks before being processed. Then, the value passes through a series of
processes including work-in-process in between. Finally, the finished brackets, LH & RH
brackets, are packaged into trays and shipped to State Street Assembly. The impediments
of the flow could be easily seen in the Current State map, but hardly removed by practical
and economical solutions. Long changeover times, machine downtime, underutilization
of people, and relationships with suppliers are the main obstacles that slowed down the
flow and made it harder to reduce the batch size and inventory levels. There are many
tools that contribute in the reduction of changeover time such as SMED, motion study,
training, autonomation, and special-purpose machines. Other areas of knowledge are
considered to minimize the downtime including total productive maintenance “TPM”,
safety, change management, and ergonomics and human factors. Besides, the flow of
other businesses, within the same supply chain of Acme, is also important and could not
being ignored. The flow should be running smoothly along the whole supply chain, which
requires that other business leaders have to be responsive and cooperative with the
changes Acme sets, which are in the interest of the whole supply chain. Such changes are
expressed about as Kaizen targets. Kaizen targets are translated into value stream plans.
As the value stream is divided into loops, each plan of value stream plans is assigned to a
loop and concerns with the Kaizen targets that are located in that loop. The value stream
plan is supported by set of procedures that enable reaching the Kaizen targets. The
improvements are then tracked and reviewed periodically.
Once Kaizen targets are reached, it would be simple to economically justify why lean
is worth it. Nowadays, the success in business is not measured only by how much profit
the business gets, but also how quickly the money runs the business is getting back. The
quicker the business cycle, the more desirable is in the stock market. If the example of
Acme is analyzed and seen in terms of lead-time improvement, it will be completely clear
that the business cycle, when Kaizen targets are reached, is very light, relatively, to run
quickly with minimum possible waste and risk. If the impact of the improvement in
Acme stamping lead time alone is exposed, it could be realized that even incorporating
expensive solutions for changing to be lean is worth it. According to Table “3”, the
amount of cash kept in hand is significantly greater, or the amount of debt to pay with
interest for debtors is significantly smaller, which makes the investment safer.

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Table “3” shows also that Acme could not take a direct step to the lean world. There
is always a mushy zone, transitional phase, to pass through. The type of industry makes
this matter tailor-made. Besides, other kinds of constraints may enforce business owners
to be innovative, such as country regulations, distances, suppliers‟ culture, transportations
infrastructure, technological limitations, prices fluctuation, and other global changes. For
Acme, the decision was to get the production continuously flow for wielding and
assembly process after resolving downtime and changeover issues. For stamping process,
it could be impossible and economically infeasible to get rid of the changeover time. So,
Acme didn‟t reduce the batch size and inventory level, as much as it did for wielding-
assembly unit. That required increasing the buffers spaces a little bit for all other
inventories, until it is possible that the changeover time is significantly minimized. Once
it is possible, the leveling of the production mix is more efficient and helpful to reduce
overall inventory levels, as shown up in the table.
5. CONCLUSION
The report reviews informative information about the usability of Value Stream
Mapping to eliminate muda. The most important aspect of Value Stream Mapping is that
it makes the flow more visible, which enables analyzing it, and then detect where the
impediments of the flow are located. The case study of Acme steering brackets makes it
easier to imagine how Value Stream Mapping could help to guide the improvement
process toward agility and lean performance. The point, where many constraints are
located, indicates that it needs attention to be paid. It is very significant that the
production processes in any business of the supply chain continuously flow. This requires
that changeover times should be eliminated, and downtime event should be minimized
and recovered. Reducing the levels of underutilization of people, WIP, overproduction
and other types of waste should also have a well attention. Each type of waste could be
eliminated by using a group of tools and practices. For example, the changeover time
itself could be minimized by SMED, motion study, training, and autonomation.
Some improvement could not be achieved within a single business to pay its way,
where the whole supply chain should be involved in. The Bullwhip Effect is a clear
evidence of how the demand variations are amplified upstream. Thus, the ideal supply
chain to be controlled is where its elements could move together to capture larger market.

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6. REFERENCES
Harrison, A. Van Hoek, R. (2008). Logistics Management and strategy competing
through the supply chain, Pearson Education.
Lasa, I. Laburu, C. & Vila, R. (2008), An evaluation of the value stream mapping tool,
Business Process Management Journal, pp. 39-52.
Lu. D. (2011). Fundamentals of Supply Chain Management, Dr. Dawei Lu & Ventus
Publishing ApS.
Rother, M. and Shook, J. (2003). “Learning to See”, Lean Enterprise Institute, pp. 19-
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S. Vinodh, K.R. Arvind, M. Somanaathan, (2010), Application of value stream mapping
in an Indian camshaft manufacturing organisation", Journal of Manufacturing
Technology Management, pp. 888-900.