...Introduction: Lean manufacturing: Lean manufacturing is a systematic approach of identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection. Lean manufacturing is a comprehensive approach to eliminating waste from your operation. It is a systematic methodology that uses various tools to achieve the goal of reduced waste. The principle of lean manufacturing is to reduce cost through continuous improvement that will eventually reduce the cost of services and products, thus growing more profits. Waste: Waste can be defined as a substance or a thing that is no longer useful in a process. Waste is in fact anything that adds cost, but not value to a product. Toyota executive Taiichi Ohno identified seven types of wastes in manufacturing system, namely: Overproduction- It is considered to be the worst of the wastes, as it multiplies the other 6 wastes and hides your true capability, thereby causing you to make bad decisions such as turn work away or invest in unnecessary additional capacity. Defects- It is also pure waste as poor quality is produced. Time, energy and materials are consumed needlessly, and even if the customer is not lost, you still need to do the work again. Inventory- It is the worst of all the 7 wastes. It ties up cash, requires labor, energy and fixed assets to manage it, and moreover it provides a false sense of comfort by hiding problems. Motion- In terms of ease...
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...Mapping (VSM) Definitions • Value: What the Client wants from the process • Value stream: Includes all the processes and activities used to design, produce and deliver the product or service to the Client. --- All the steps – both value added and non value added – required to take a product or service from its raw materials state into the waiting arms of a happy customer. • Value Stream Map: Special type of flow chart that uses symbols from the “Language of Lean” to depict and improve the flow of inventory and information. Typ. VSM Value Stream • “Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.” -Learning to See, Lean Enterprise Institute VSM • Value stream mapping is a lean manufacturing technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer. • VSM is a technique for identifying value-adding activities and eliminating nonvalue adding activities to optimise processes • Activities are generally divided into three categories: – (1) non-value adding (NVA); – (2) necessary but non-value adding (NNVA); and – (3) value-adding (VA). • In a formal sense, two depictions of the status are made: – Current state of VSM (CVSM) – Future state of VSM (FVSM) • Each scenario is depicted pictorially using standard symbols • We have to work on moving from CVSM to FVSM 5 Value Stream Mapping Steps Procedure for VSM • ...
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...1Part A1 1. Introduction Contemporary projects varying from putting a human onto the moon to constructing a residential shopping center are astoundingly sizable, costly and complex. Managing such projects to ensure on time delivery while within the budget limitation is not an easy task. The complication of such projects arises when there exists large interdependence of activities (Taylor 2012:17). Particularly, certain activity may have one or more predecessors, in which it requires completion of other activities upon initiating (ibid). In dealing with such projects consisting of substantial dependency relations, managers seek to determine the most effective method of graphical process representation. This paper will first introduce the two forms of network diagram: Activity on the Arc and Activity on the Nodes. Following which, comparison and contrast based on their flexibility and effectiveness are carried out to determined the optimal method for project managers. 2. The Network Diagrams The network diagram is a useful tool for graphical representation of precedence association between the activities in a project (Larson & Gray, 2011:158). In an activity on the arc network diagram, an arrow is used to represent each activity, which is referred to as an arc (Anderson et. al, 2012:585). A circle called node is used to indicate the start and end of each activity (ibid). The node is often referred to in conjunction with the term event, which represents the finishing...
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...at threat from a number of security risks and what is needed is a security method to allow for these risks to be evaluated and ensure that appropriate security countermeasures are applied. Abstract E-commerce security is a complex issue; it is concerned with a number of security risks that can appear at either a technical level or organisational level. This paper uses a systemic framework, the viable system model (VSM) to determine the high level security risks and then uses baseline security methods to determine the lower level security risks. Security methods The aim of the research was too combine a information systems modeling method with a baseline security method to form a hybrid security method. This method could be used to evaluate high and low level security risks associated with e-commerce. The methods used in this model are the viable system model (VSM) and baseline security approach. The VSM is used to model an organisation's basic functions and associated data flows, whilst the baseline security approach is used to implement appropriate security countermeasures. The viable system model (VSM) Information Management & Computer Security 11/5 [2003] 238-242 # MCB UP Limited [ISSN 0968-5227] [DOI...
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...APPLICATION OF VALUE STREAM MAPPING AS A METHOD TO REDUCE CYCLE TIME TO SUPPORT LEAN MANUFACTURING SYSTEM AHMAD NUR AIZAT BIN AHMAD A project report submitted in partial fulfillment of the requirement for the award of the degree of Master of Engineering (Manufacturing) Faculty of Mechanical and Manufacturing Engineering University Tun Hussein Onn Malaysia APRIL 2011 V ABSTRACT In the manufacturing industry, lean manufacturing becomes popular as a beneficial way in the pursuit of better system efficiencies. The purposes of this study were to identify waste using lean manufacturing technique, determine causes to the waste through the value stream mapping method and to propose solution to improve workplace environment. Asian Composite Manufacturing Sdn. Bhd. (ACM) has been chosen as the company to conduct case study for this research. ACM is a joint venture company based in Bukit Kayu Hitam, Kedah, Malaysia owned equally by The Boeing Company and Hexcel Corporation. The business of the joint venture is the manufacturer of flat and contoured primary (Aileron skins, spoilers and spars) and secondary ( flat panels, leading edge, trailing edge and MISC component) structure composite bond assemblies and sub-assemblies for aerospace industries. There are some waste activities identified during observation including unnecessary transportation, excessive motions, inventories and waiting. In order to reduce this waste, some of lean manufacturing...
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...Lehman Brothers’ Collapse – A VSM Perspective Introduction Lehman Brothers is a name that today almost everyone across the globe is familiar with. It was started as a small general store in the year 1844 in Montgomery, Alabama by a German immigrant Henry Lehman. Their next big step was in the year 1950, when Henry and his brothers Emanuel and Mayer joined together to form the Lehman Brothers. The firm kept on growing in the following years at a decent pace, as the USA economy prospered. However, their journey to become the fourth largest investment bank in USA was not an easy one. They had to survive the rail-road bankruptcies in the late 1800s. Then, they had to face the great Depression era of 1930s, followed by World War I and II. In the year 1994, they were successful in evading the capital shortage due to the American Express incident. They even came out of the Long term capital management collapse and the Russian default in the year 1998. So, one thing is for sure that the Lehman Brothers indeed had a troubled past. But they always managed to come out of it successfully. However, it was not the same story for them always. The combination of collapsing US housing market and the Lehman Brothers’ blindfolded rush into the sub-prime mortgage market proved too fatal for the organization. On September 15th, 2008 when the fourth largest investment bank in USA filed for bankruptcy, it had an asset worth $639 billion and a debt of $619 billion. Their bankruptcy filing was the...
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...processing errors • Over-processing due to duplicate client records, or redundant data entry requirements • Movement due to physical dispersion of process participants • Printing, copying, and transporting of documents instead of transmitting/storing electronically Identifying, eliminating, or reducing such waste will enable firms to improve productivity, redeploy resources, increase customer satisfaction, and reduce costs. But waste can be pervasive and not easily identified. One Lean technique that can help uncover waste is Value Stream Mapping. A Value Stream Map (VSM) provides an end to-end view of a process, as well as the availability, capacity, and performance of each step in the process. The VSM should include both physical flows and information flows. A Current State VSM shows the process as it is today and highlights opportunities to reduce waste in the current process. Future State VSMs depict how the process may look in the future, after improvements are implemented. This makes Value Stream Mapping a powerful visioning and communication tool. Raising efficiency by applying lean techniques to banking operations There is often skepticism whether Lean, which originated in the manufacturing world, applies to the financial services industries. As banks are very process-intensive with complex flows of information across the business, Lean offers an enormous potential for operational improvement by eliminating process wastes. Rework...
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...Lean Supply Chain and its Effect on Product Cost and Quality: A Case Study on Ford Motor Company Summary: This paper mainly focuses on reviewing the implementation of lean supply chain (LSC) in manufacturing industries by using four-step problem solving process. Also, taking Ford Motor Company as a typical case to address how companies follow the Toyota steps to apply LSC in their daily management. First of all, the author introduces the background of how LSC developed in the Toyota Motor Corporation’s big success. Three presents perfect and develop the concept of eliminate wastes and reduce non-value added (NVA) operations, and improve the value added (VA). “ The VA activities are those that customers are willing to pay money for tangible goods or intangible functions.” Meanwhile, the NVS work mostly contains wastes. The author throws out a very critical method in LSC, which is Value Stream Mapping. VSM, as a tool to identify VA and NVA in the process, plays an important role in Lean Supply Chain. Since, it can provide a visual flow to decision making, highlight and expose wastes, explain the link between information and material flow, and finally come up with a plan that can reduce the wastes and benefit the future improvement. In the following part, the author uses four-steps problem solving process to label the problems, define the tasks, highlight the obstacles, and propose the solutions. During the whole process, there are some key factors to impact the decision-making...
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...Wastes to be eliminated are overproduction, excess inventory, delay, transportation, rework, underutilization of people and facilities. Wastes should be eliminated to achieve better connectivity between operations. It improves response time to customer demand, reduces inventories, reduces working capital requirements, improves productivity. It is executed by using various lean tools such as 5S, Value Stream Mapping(VSM), Kanban and Kaizen.This paper mainly uses Value Stream Mapping (VSM) and layout changes to solve...
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...UNIVERSITY OF STRATHCLYDE GRADUATE SCHOOL OF BUSINESS MASTER OF BUSINESS ADMINISTRATION STRATEGY ANALYSIS & EVALUATION ASSIGNMENT 2005 The VSM Group Prepared by: Name Intake Reg No. Ivan HO MacNab 200455775 Vui Soon HO MacMaster 200352369 Franco LEE MacNab 200492442 Kim Loong NG MacNeil 200459087 Roland TAN MacNeil 200459176 1 EXECUTIVE SUMMARY 1 2 VSM GROUP 1 2.1 Organisational Purpose 1 2.2 Corporate Governance 2 2.3 Stakeholders 2 2.4 Organisational Performance 2 3 MACRO ENVIRONMENT 2 3.1 PESTEL Analysis 2 3.2 Scenario Building 3 4 SEWING MACHINE INDUSTRY 3 4.1 Global Business Environment 3 4.2 Market Analysis & Structure 3 4.3 Industry Analysis 4 4.4 Competitor Analysis 4 4.4.1 Market Segmentation 4 4.4.2 Strategic Group Analysis (SGA) 5 4.4.3 Customer Value 5 5 STRATEGIC CAPABILITIES 6 5.1 Resources and Competencies 6 5.2 Diagnosing Strategic Capability 6 5.3 Development of New Competencies 7 6 COMPETITIVE/BUSINESS STRATEGY 7 6.1 Basis of Competition 7 6.2 Sustaining Competitive Advantage 7 6.3 Basis of Future Competitive Strategy 7 7 STRATEGIC OPTIONS 8 7.1 Improvement on Operating Profits 8 7.1.1 Production Relocation 8 7.1.2 Revenue Growth 8 7.2 Long-term Growth and Strategies 8 7.2.1 Market Diversification 9 7.2.2 Revenue Diversification...
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...Abstract: Process industries, especially textile industries, have automatic machinery which are highly inflexible and have high volume/low variety products. This nature of the textile industry makes implementing lean manufacturing techniques a challenge; hence implementing lean techniques in a textile industry has been taken up as a challenge. We have chosen a combination of value stream mapping (VSM), 5S, kanban, kaizen, poka-yoke, and visual controls to improve the processes. The findings of this study reveal that a thorough analysis of the process, setup, and changeover time (CO), use of colour coding for identification of volume-mix, use of kaizen and quality circles which empower the workforce, are some of the various keys to a successful lean implementation in a textile industry. Keywords:Project manegement; lean manufacturing; agile manufacturing; value stream mapping; VSM; supply chain management. 1 Introduction What Is a Project Manager? SECTION 1: INTRODUCTION TO PROJECT MANAGEMENT Project management is the art of matching a project's goals, tasks, and resources to accomplish a goal as needed. We say "as needed" because one has limited time, money, and resources (human and machinery) with which to accomplish a goal. One can think of a project as a process. Figure 1 shows this process as a simplified block diagram. Figure 1: Simple Project Management System The process involves inputs and outputs. Successful projects "do the right things, with the right...
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...been undertaken on the implementation of lean within various industries, the many tools and techniques that form the “tool box”, and its integration with Six Sigma (mainly through case studies and action research), there has been little written on the journey towards the integration of the two approaches. This paper aims to examine the integration of lean principles with Six Sigma methodology as a coherent approach to continuous improvement, and provides a conceptual model for their successful integration. Design/methodology/approach – Desk research and a literature review of each separate approach is provided, followed by a view of the literature of the integrated approach. Findings – No standard framework for lean Six Sigma or its implementation exists. A systematic approach needs to be adopted, which optimises systems as a whole, focusing the right strategies in the correct places. Originality/value – This paper contributes to knowledge by providing an insight into the evolution of the lean Six Sigma paradigm. It is suggested that a clear integration of the two approaches must be achieved, with sufficient scientific underpinning. Keywords Lean production, Six sigma Paper type Literature review 1. Introduction The Toyota Production System (TPS) provided the basis for what is now known as lean thinking, as popularised by Womack and Jones (1996). The development of this approach to manufacturing began shortly after the Second World War, pioneered by Taiichi Ohno and associates...
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...BUS 307 – Operations Management & Quantitative Techniques Michael Dennis-Leigh July 23, 2012 Spend Analysis I. Introduction The current condition of the economy in the United States (US) and increased economic pressures has reinvigorated many companies to rethink their purchasing practices. One of the best ways for a company to evaluate its spending patterns is through a spend analysis. “A spend analysis is the process of determining what is being spent, with whom and for what” (Hingorani, 2010, p. 58). In order to accomplish this task companies must use software programs to import and aggregate data from multiple systems. This paper will explore several components of the spend analysis process including the risk of using software programs alone to analyze spending patterns; how Lean Six Sigma processes might be useful when developing a spend analysis process, and why it is important to involve multiple functional areas, most notably finance. II. Relying on Software Alone While software programs offer a great platform for organizing data they do not provide a method of cleansing data. What I mean is, spend data can be housed in many different databases, and trying to consolidate the data correctly can prove to be very difficult. Ever heard of the saying “garbage in, garbage out”? That is exactly what you might get relying solely on software programs to complete your spend analysis. This is where analytical skills and critical thinking...
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...Business Process Management Journal A systematic review of Lean Six Sigma for the manufacturing industry Saja Ahmed Albliwi Jiju Antony Sarina Abdul halim Lim Article information: Downloaded by North South University At 22:57 26 January 2016 (PT) To cite this document: Saja Ahmed Albliwi Jiju Antony Sarina Abdul halim Lim , (2015),"A systematic review of Lean Six Sigma for the manufacturing industry", Business Process Management Journal, Vol. 21 Iss 3 pp. 665 - 691 Permanent link to this document: http://dx.doi.org/10.1108/BPMJ-03-2014-0019 Downloaded on: 26 January 2016, At: 22:57 (PT) References: this document contains references to 63 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 961 times since 2015* Users who downloaded this article also downloaded: Saja Albliwi, Jiju Antony, Sarina Abdul Halim Lim, Ton van der Wiele, (2014),"Critical failure factors of Lean Six Sigma: a systematic literature review", International Journal of Quality & Reliability Management, Vol. 31 Iss 9 pp. 1012-1030 http://dx.doi.org/10.1108/IJQRM-09-2013-0147 M.P.J. Pepper, T.A. Spedding, (2010),"The evolution of lean Six Sigma", International Journal of Quality & Reliability Management, Vol. 27 Iss 2 pp. 138-155 http:// dx.doi.org/10.1108/02656711011014276 Diego Pacheco, Isaac Pergher, Guilherme Luís Roehe Vaccaro, Carlos Fernando Jung, Carla ten Caten, (2015),"18 comparative aspects between...
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...Abstract - The aim of this paper is to present that how Value stream mapping (VSM) can be applied to restaurant industry and especially fast food sector. The purpose was to identify wastes and how these can be reduced and/or eliminated by the help of value stream. A case study in Pakistan based restaurant has been carried out to illustrate this. A current state value stream map has been developed. Value stream map highlights opportunities to improve wastes and problems along the restaurant supply chain. Results indicated a non value adding steps of 29% at the processing. Value stream can be readily applied to restaurant industry. Keywords – Value stream mapping, Restaurants, Pakistan I. INTRODUCTION The concept of fast food goes back half a century, yet has found its way into the Pakistani market only a decade or so back. With the introduction of many foreign brands finding their way into the country, in the late nineties, the Pakistani market has finally become accustomed to manufacturing and providing service in such a way that goes around the wholesome fast paced scenario. As time has passed, Pakistani restaurants have picked up the technique to play alongside the foreign players. Now we can see that many local brands have established their image on the fact that they provide not only locally designed food, enveloping the fast food concept. Hence we can say that fast food has evolved and redesigned the whole Pakistani restaurant market. In the past five years...
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