Improving the performance of a Malaysian pharmaceutical warehouse supply chain by integrating value stream mapping and discrete event simulation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Abideen ◽  
Fazeeda Binti Mohamad
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Discrete Event ◽  
Integrated Approach ◽  
Value Stream Mapping ◽  
Content Type ◽  
Value Stream ◽  
Future State ◽  
The Future ◽  
Value Stream Map

Purpose Lean implementation is vastly incorporated in core manufacturing processes; however, its applicability in the supply chain and service industry is still in its infancy. To acquire performance excellence and thrive in the global competitive market, many firms are adopting newer methodologies. But, there is a stringent need for production simulation systems to analyze supply chains both inbound and outbound. The era of face validation is slowly disappearing. Lean tools and procedures that provide future state assumptions need advanced tools and techniques to measure, quantify, analyze and validate them. The purpose of this study is to enable dynamic quantification and visualization of the future state of a warehouse supply chain value stream map using discrete event simulation (DES) technique. Design/methodology/approach This study aimed to apply an integrated approach of the value stream mapping (VSM) and DES in a Malaysian pharmaceutical production warehouse. The main focus is diverted towards reducing the warehouse supply chain lead time by initially constructing a supply chain value stream map (both present state and future state) and integrating its data in a DES modelling and simulation software to dynamically visualize the changes in future state value stream map. Findings The DES simulation was able to mimic the future state lead time reductions successfully, which assists in better decision-making. Improvements were seen related to total lead time, process time, value and non-value-added percentage. Warehouse performance metrics such as receiving, put away and storage rates were substantially improved along with pallet processing time, worker and forklift throughput usage percentage. Detailed findings are clearly stated at the end of this paper. Research limitations/implications This study is limited to the warehouse environment and further additional process models and functional upgrades in the DES software systems are very much needed to directly visualize and quantify all the possible Lean assumptions such as radio frequency image identification/Andon (Jidoka), 5S, Kanban, Just-In-Time and Heijunka. However, DES has a leading edge in extracting dynamic characteristics out of a static VSM timeline and capture details on discrete events precisely by picturizing facility modification and lead time related to it. Practical implications This paper includes all the fundamental pharmaceutical warehouse supply chain processes and the simulations of the future state VSM in a real-life context by successfully reducing supply chain lead time and allowing managers in inculcating near-optimal decision-making, controlling and coordinating warehouse supply chain activities as a whole. Social implications This integrated approach of DES and VSM can involve managers and top management to support the adoption of anticipated changes. This study also has the potential to engage practitioners, researchers and decision-makers in the warehouse industry. Originality/value This study involves a powerful DES software package that can mimic the real situation as a virtual simulation and all the data and model building are based on a real warehouse scenario in the pharmaceutical industry.

Supply chain lead time reduction in a pharmaceutical production warehouse – a case study

2019 ◽  
Vol 14 (1) ◽  
pp. 61-88 ◽  
Author(s):  
Ahmed Zainul Abideen ◽  
Fazeeda Binti Mohamad
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Raw Material ◽  
Value Stream Mapping ◽  
Content Type ◽  
Value Stream ◽  
Lead Time Reduction ◽  
Future State ◽  
Time Reduction ◽  
Pharmaceutical Production

Purpose The purpose of this study is to apply value stream mapping (VSM) in Malaysian pharmaceutical production warehouse. A current and future state value stream map from the raw material receiving end to the production unit was developed to find out waste and unwanted lead time. It was very much essential to cut down the supply chain lead time at the initial phase as the raw material unloading, sorting, temporary storage and dispatch to production were seen contributing to a huge lead time build-up. Design/methodology/approach The study was initiated with the selection of a product family, construction of the current state map, identification of various wastes and the development of future state map. Findings The expected outcomes of the study include the quantification of wastes, improvement in value-added percentage and lead time reduction. Research limitations/implications The study was carried out in a single pharmaceutical company. The results of the study are deployable and can be functional in similar production organizations. Contrary to common VSMs that capture core production processes, this study provides strong insights that shall help design lean supply chains, especially in the pharmaceutical domain. This paper has also addressed the viability of the lean in the pharmaceutical warehouse and the reduction in lead time to improve demand forecasting, marketing and sales. Practical implications The results of this study have indicated that a significant reduction in pharmaceutical warehouse supply chain lead time is possible as a result of the implementation of VSM from the supply chain’s perspective. Social implications The insights from this study help in understanding the pharmaceutical supply chain risks and their outcomes. Originality/value The paper reports a real-time study conducted in a warehouse of a pharmaceutical organization. Hence, the contributions are original.

Managing industrial operations by lean thinking using value stream mapping and six sigma in manufacturing unit

2019 ◽  
Vol 58 (6) ◽  
pp. 1118-1148 ◽  
Author(s):  
Jagdeep Singh ◽  
Harwinder Singh ◽  
Amandeep Singh ◽  
Jashanpreet Singh
Keyword(s):  
Six Sigma ◽  
Lean Manufacturing ◽  
Lead Time ◽  
Manufacturing Industry ◽  
Value Stream Mapping ◽  
Lean Thinking ◽  
Content Type ◽  
Value Stream ◽  
Future State ◽  
Industrial Operations

Purpose The purpose of this paper is to cover the significance of lean thinking using value stream mapping and six sigma methodology in managing industrial operations. Design/methodology/approach Lean manufacturing is an efficient approach for identifying and eliminating waste through a continuous improvement via flow of the product/service at the pull of customer in chase of exactness. This study has been carried out in a manufacturing unit of Northern India that was suffering from high production lead time and work in progress (WIP) inventory. Findings The current state and future state maps for the critical product have been prepared. On comparison of both current and future state maps, it was observed that lead time has been reduced by 14.88 percent, processing time by 14.71 percent and wastage of material movement by 37.97 percent. As proposed in model, the WIP inventories have been reduced by 17.76 percent and workforce by 17.64 percent. Further it would lead to the profit of Rs161,800 per annum. Six sigma projects have been carried out to reduce rejections of the critical product P-19 under study. The total length of the product was undersize of the critical product. Root cause analysis technique has been used through strategic DMAIC implementation. Results of investigation demonstrated net savings of rupees 145,560 annually. Originality/value The paper demonstrates the practical application of lean thinking, showing how it can bring real breakthroughs in saving cost in the manufacturing industry.

scholarly journals Application of value stream mapping to enhance productivity by reducing manufacturing lead time in a manufacturing company: A case study

2021 ◽  
Vol 19 (1) ◽  
pp. 11-22
Author(s):  
Aditya S. Patil ◽  
Mahesh V. Pisal ◽  
Chandrakant T. Suryavanshi
Keyword(s):  
Lead Time ◽  
Value Stream Mapping ◽  
Value Stream ◽  
Lead Time Reduction ◽  
Current State ◽  
Future State ◽  
Short Lead Time ◽  
Time Gap ◽  
Value Stream Map

Lead time is a time gap between initiation and completion of the processes or product. The lead time directly affects productivity. Short lead time results in higher output thus add more value in a given period. Value stream map is an effective tool to describe the overall process from order to delivery. In this study, there is lead time reduction by generation current state and future state for a process using various techniques. Thus, the main aim of this work to enhance production by reduction of lead time. Finally, gain in production, reduction in lead time, and reduction in inventory between the stations are also reported.

Lean-Kaizen implementation

2018 ◽  
Vol 16 (1) ◽  
pp. 143-160 ◽  
Author(s):  
Sunil Kumar ◽  
Ashwani Dhingra ◽  
Bhim Singh
Keyword(s):  
Value Added ◽  
Value Stream Mapping ◽  
Inventory Level ◽  
Content Type ◽  
Value Stream ◽  
Road Map ◽  
Future State ◽  
Regular Production ◽  
Takt Time ◽  
Value Stream Map

Purpose The purpose of this paper is to present a road map to implement Lean-Kaizen concept using value stream mapping (VSM) to identify hidden continuous improvement opportunities in a small and medium-sized enterprise (SME) located at the non-capital region of India. Design/methodology/approach From the collected data, a current state map was prepared that indicated the current operating situation of selected SME. The takt time was calculated and those processes which attained higher cycle time (C/T) than takt time were identified. The continuous flow processing was achieved by adjusting C/T of each process and supermarket pull system was developed to control the production at the workstations. Finally, a future state map was developed that served as a guide for future lean activities. Few problems were identified to realize the future state. The “5-why” analysis was used for identifying root causes of these problems and Kaizen events were proposed as solutions. In this case study, one Kaizen event was identified in which brainstorming technique was used to control the variation caused by unorthodox fixture design for clamping and de-clamping of case product and thus eliminated non-value-added activities performed by the operator on a milling machine. Findings Before and after implementation of value stream map, the data obtained were analyzed and eliminated rework time, reduced inventory level, reduced lead time and C/T, improved productivity and product quality are presented as finding. Lean-Kaizen provides a better chance for every individual of the industry to have a hand in achieving organization’s goals to attain continuous progress in productivity and quality of the product. Even good understanding of the concept of lean tools and techniques by SMEs, the employee willingness and motivation to identify and eliminate wastes are found feeble. Originality/value This study is among best practices to identify hidden improvement opportunities in the regular production of the product to increase productivity and improve quality using value stream map. The research paper gives useful understandings to the lean implementers, Kaizen identifiers, consultants and researchers.

scholarly journals Optimasi Pelayanan Sertifikasi pada Supply Chain Lembaga Sertifikasi Halal

2019 ◽  
Vol 2 (4) ◽  
Author(s):  
Ahmad Shalihin ◽  
Juliza Hidayati ◽  
Khairunnisa
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Value Added ◽  
Value Stream Mapping ◽  
Value Stream ◽  
Current State ◽  
Future State ◽  
Big Picture ◽  
Document Flow ◽  
Flow Of Information

Di dalam dunia persaingan global persaingan antar kompetitor semakin ketat sehingga dalam faktanya bisnis usaha yang dijalankan perlu terus untuk dikembangkan dan dilakukan perbaikan sehingga perusahaan mampu tumbuh dan bersaing. Sebuah perusahaan yang bergerak di bidang sertifikasi halal mempunyai beberapa kriteria usaha yang disertifikasi meliputi industri pengolahan, restaurant dan rumah potong hewan. Fokus utama objek yang diteliti adalah industri pengolahan. Berdasarkan data historis sertifikasi halal selama 2 periode mengalami kenaikan secara terus menerus sehingga proses pelayanan dan penanganan dalam sertifikasi halal menjadi bertumpuk dan menjadikan aliran informasi dan aliran dokumen pada supply chain menjadi panjang dikarenakan sistem baru yang digunakan merupakan sistem sertifikasi secara online yang belum lama di adopsi. Proses sertifikasi halal memakan waktu sehingga kualitas pelayanan pada aliran informasi dan dokumen tidak maksimal dan berbedabeda, aliran informasi dan aliran dokumen yang tidak efisien waktu yang pada akhirnya membuat lead time proses sertifikasi menjadi panjang dan tidak efektif. Analisis menggunakan value stream mapping (VSM). Hasil yang dicapai berupa (1)big picture mapping current state map dan future state map, (2) mengetahui value added dan non value added pada proses aliran supply chain sertifikasi halal, (3) membuat skala prioritas terhadap 7 waste untuk meminimalisir pemborosan diproses sertifikasi, kemudian jenis pemborosan yang paling sering terjadi pada jenis pembororsan waiting (28%) dan proporsi waktu aktifitas value added (VA) sebesar (54%) dengan non value added (NVA) sebesar (46%). Setelah perbaikan didapatkan hasil proporsi waktu aktivitas menjadi sebesar value added (88%) non value added (NVA) berkurang menjadi sebesar (12%) berdasarkan rancangan aktivitas yang telah di operasikan berkurang dari 30 aktivitas menjadi 28 aktivitas dengan perbaikan waktu proses mencapai 37 hari dari 50 hari.   In the world of global competition, competition among competitors is getting tougher, so in fact, businesses that are run need to be continuously developed and improved so that companies are able to grow and compete. A company engaged in halal certification has several business criteria that are certified covering the processing industry, restaurants and abattoirs. The main focus of the object under study is the processing industry. Based on the historical data of halal certification for 2 periods, it has been continuously increasing so that the service and handling process in halal certification has accumulated and makes the flow of information and document flow on the supply chain lengthy because the new system used is an online certification system that has not been recently adopted. . The halal certification process takes time so that the quality of service in the flow of information and documents is not optimal and varies, the information flow and document flow are not time efficient which ultimately makes the lead time of the certification process to be long and ineffective. Analysis using value stream mapping (VSM). The results achieved in the form of (1) big picture mapping of the current state map and future state map, (2) knowing the value added and non value added in the halal certification supply chain flow process, (3) making a priority scale of 7 waste to minimize the waste of certification processing , then the type of waste that most often occurs in the type of waiting (28%) and the proportion of time value added activities (VA) of (54%) with non value added (NVA) of (46%). After the improvement, the result shows that the proportion of activity time is equal to value added (88%). Non-value added (NVA) is reduced to equal to (12%) based on the activity design that has been operated. 50 days. 

scholarly journals Improving Quality Control Process Through Value Stream Mapping

2018 ◽  
Vol 7 (2.29) ◽  
pp. 219
Author(s):  
Zulfa Fitri Ikatrinasari ◽  
Dan Kosasih
Keyword(s):  
Quality Control ◽  
Lead Time ◽  
Value Added ◽  
Maximum Efficiency ◽  
Value Stream Mapping ◽  
Process Time ◽  
Value Stream ◽  
Current State ◽  
Future State ◽  
Quality Control Process

PT. AEMI is one of the growing electronic component manufacturing company. By this time, Kaizen project has been run and managed to become a culture in PT AEMI. However, the project has not integrated, comprehensive and not yet has a long-term goals. Implementation of value stream mapping (VSM) in PT AEMI is expected to make Kaizen projects more focused and to produce increasing of the maximum efficiency. In addition, VSM Kaizen is believed to make the those programs more integrated, effective and comprehensive. This study aims to: (1) create a current state mapping in the Department of Quality Control PT. AEMI, (2) identify wastes in the Department of Quality Control PT.AEMI, (3) create a future state mapping at the Department of Quality Control PT. AEMI, (4) make a plan of improvement and analyzing the application. Stages of the study were as follows: (1) identification of work processes, (2) collect and analysis of work process time, (3) analysis of the current state mapping, (4) calculate of lead time and process time, (5) analysis of value added and non value-added activities, (6) analysis of wastes, (7) make a plan of future state mapping, (8) improvement design (improvement planning), (9) implementation of improvement, (10) analysis of the implementation of improvements. The results of this study are: 1) current state mapping at QC Department shows that the total lead time of 848 minutes where there is non-value added activity of 778 minutes. 2) identify waste on the handling process where the product movement from assembly to QC for 2 minutes, movement transactions from assembly to QC for 479 minutes and the waiting time at  inspection area for 727 minutes. 3) future state mapping at QC Department shows that the total lead time of 516.5 minutes where there is non-value added activity of 446.5 minutes. 4) the improvement to do is to change the lay out where final inspection is moved from QC to manufacturing so as to result in reduce of non-value added activity by 46%. 

scholarly journals MEMINIMASI PEMBOROSAN DENGAN LEAN MANUFACTURING PADA PROSES PRODUKSI DI PT. IE

2021 ◽  
pp. 1451
Author(s):  
Ahmad Ahmad ◽  
Helena JK ◽  
Andrean Yonathan
Keyword(s):  
Waiting Time ◽  
Cycle Time ◽  
Lean Manufacturing ◽  
Lead Time ◽  
Fault Tree Analysis ◽  
Value Stream Mapping ◽  
Tree Analysis ◽  
Value Stream ◽  
Current State ◽  
Future State

PT. IE is engaged in the business of making Lighting and Lampposts. Based on observations and interviews, there are still some wastes that arise in the flow of the production process, among which there are still many wastes of waiting time, transportation, movement and inventory. These wastes cause the product completion time to be longer and the resulting quality decreases. To eliminate or reduce waste, it is necessary to apply Lean Manufacturing. Lean Manufacturing is a systematic approach to eliminating waste and changing processes by identifying and reducing waste with continuous improvement and striving to create a production flow along the value stream by eliminating all forms of waste and increasing the added value of products to customers. From the Pareto diagram, it is found that transportation waste has the highest percentage of 26.21%, waiting time is 21.38%, motion waste is 19.31% and waste inventories are 15.17%. while the results of the Value Stream Mapping Current State Map mapping obtained a production lead time of 7,680 seconds and a total cycle time of 6,660 seconds and a PCE Current State Map value of 53.09%. Identify the root causes of waste using Fishbone diagrams, 5 Why Analysis, 5W+1H, Fault Tree Analysis and FMEA. After corrective actions have been taken, based on the Value Stream Mapping Future mapping there is a decrease in production lead time to 5,220 seconds and a decrease in total cycle time to 4,860 seconds and an increase in PCE Future State Map to 68.10% so that there is an increase of 15.01% which shows The company's production process has become more Lean.PT. IE bergerak dalam bisnis pembuatan Lighting dan Tiang Lampu. Berdasarkan observasi dan wawancara, masih terdapat beberapa pemborosan (waste) yang timbul di aliran proses produksi di antaranya masih banyak terjadi pemborosan-pemborosan waktu tunggu, transportasi, gerakan dan inventori. Pemborosan-pemborosan tersebut menyebabkan waktu penyelesaian produk menjadi lebih lama dan kualitas yang dihasilkan menurun. Untuk menghilangkan atau mengurangi pemborosan diperlukan adanya penerapan Lean Manufacturing.Lean Manufacturing merupakan pendekatan sistematik untuk mengeliminasi pemborosan dan mengubah proses dengan cara mengidentifikasi dan mengurangi pemborosan dengan perbaikan kontinu dan berupaya untuk menciptakan aliran produksi sepanjang value stream dengan menghilangkan segala bentuk pemborosan serta meningkatkan nilai tambah produk kepada pelanggan. Dari diagram Pareto ditemukan waste transportasi memiliki persentase paling tinggi sebesar 26,21%, waktu tunggu  21,38%, waste motion 19,31% dan waste inventories 15,17%. sedangkan hasil pemetaan Value Stream Mapping Current State Map diperoleh production lead time selama 7.680 detik dan total cycle time selama 6.660 detik serta nilai PCE Current State Map sebesar 53,09%. Identifikasi akar permasalahan pemborosan menggunakan diagram Fishbone, 5 Why Analysis, 5W+1H, Fault Tree Analysis dan FMEA. Setelah dilakukan tindakan–tindakan perbaikan, berdasarkan pemetaan Value Stream Mapping Future ada penurunan production lead time menjadi 5.220 detik dan penurunan total cycle time menjadi 4.860 detik serta ada peningkatan PCE Future State Map menjadi 68,10% sehingga ada peningkatan 15,01% yang menunjukan proses produksi perusahaan telah menjadi lebih Lean.

scholarly journals Increasing Productivity by Reducing Manufacturing Lead Time through Value Stream Mapping

2012 ◽  
pp. 225-229
Author(s):  
Renu Yadav ◽  
Ashish Shastri ◽  
Mithlesh Rathore
Keyword(s):  
Lead Time ◽  
Value Added ◽  
Value Stream Mapping ◽  
Mapping Technique ◽  
Inventory Level ◽  
Lead Times ◽  
Business World ◽  
Value Stream ◽  
Current State ◽  
Future State

To survive in today’s competitive business world, companies require small lead times, low costs and high customer service levels. As such, companies pay more effort to reduce their manufacturing lead times. Value stream mapping (VSM) technique has been used on a broad scale in big companies such as Toyota and Boeing. This paper considers the implementation of value stream mapping technique in manufacturing helical springs by railway spring manufacturing company. It focuses on product family, current state map improvements and the future state map. The aim is to identify waste in the form of non value added activities & processes and then removing them to improve the performance of the company. Current state map is prepared to describe the existing position and various problem areas.. Future state map is prepared to show the proposed improvement action plans. The achievements of value stream implementation are reduction in lead time, cycle time and inventory level. It was found that even a small company can make significant improvements by adopting VSM technology. It was concluded that if we adopt the VSM technique the company could reduce the manufacturing lead time from 36.86 days to 34.06 days.

scholarly journals Lean Thinking to Foster the Transition from Traditional Logistics to the Physical Internet

2020 ◽  
Vol 12 (15) ◽  
pp. 6053
Author(s):  
Vanessa Rodríguez Cornejo ◽  
Ángel Cervera Paz ◽  
Luis López Molina ◽  
Víctor Pérez-Fernández
Keyword(s):  
Supply Chain ◽  
Waiting Times ◽  
Value Stream Mapping ◽  
Lean Thinking ◽  
Value Stream ◽  
A Value ◽  
Physical Internet ◽  
The Right ◽  
The Relationship ◽  
Value Stream Map

This paper studies the relationship between Lean paradigms and the Physical Internet (PI). Lean thinking is a philosophy that allows one to obtain the right amount of the right items in the right place at the right time; it seeks to minimize waste and is flexible to change. In fact, applying Lean not only helps to reduce costs, but it also adds value and improves results across the supply chain. By using a value stream map, we can map the process from the supply chain to the customer, while trying not to add value activities. Such activities include excessive production, overstorage, waiting times poorly adjusted to needs, defects and rejects that require reprocessing, and, finally, unnecessary transport and movements. Storage, waiting times, and unnecessary transport and movements are at the core of the PI. A value stream map can also help to identify empty transport and unnecessary CO2 emissions. This study analyzes value stream mapping as a tool that can enable the objectives of the different Alliance for Logistics Innovation through Collaboration (ALICE) roadmaps for logistics innovation to be achieved, and can also allow PI principles to be reached on the established dates.

scholarly journals Improving productivity of road surfacing operations using value stream mapping and discrete event simulation

2017 ◽  
Vol 17 (3) ◽  
pp. 294-323 ◽  
Author(s):  
Zeeshan Aziz ◽  
Rana Muhammad Qasim ◽  
Sahawneh Wajdi
Keyword(s):  
Discrete Event Simulation ◽  
Discrete Event ◽  
Primary Data ◽  
Value Stream Mapping ◽  
Research Approach ◽  
Production Rates ◽  
Related Factors ◽  
Content Type ◽  
Value Stream ◽  
Event Simulation

Purpose The purpose of this paper is to investigate the integration of discrete event simulation (DES) and value stream mapping (VSM) to enhance the productivity of road surfacing operations by achieving high production rates and minimum road closure times. Highway infrastructure is one of the most valuable assets owned by the public sector. The success of national and local economies as well as quality of life of the general public depend on the efficient operations of highways. Ensuring smooth traffic operations requires maintenance and improvements of the highest standard. Design/methodology/approach Research approach involved the use of primary data collected from direct observation, interviews, review of archival records and productivity databases. Based on this, process maps and value stream maps were developed which were subsequently used to produce discrete event simulation models for the exploration of different optimisation scenarios. Findings This research highlights the synergistic relationship between VSM and DES in driving innovation in construction processes. Identified factors that affect roadworks process productivity include machine, manpower, material, information, environment and method-related factors. A DES model is presented to optimise the process and increase the production rates. A hybrid DES-VSM approach ensures an integrated approach to process optimisation. Research limitations/implications This study is an application of hybrid version of previously published DES-VSM framework in the manufacturing sector. The present study has extended and tested its applicability within road surfacing operations. The different what-if scenarios presented in this paper might not be applicable to other parts of the world owing to various constraints. The study has focused on addressing the waste production inherent in pavement laying process. Even though external variables could possibly influence pavement process, those were ignored to allow for in-depth focus on the process under consideration. Practical implications Road users are one of the most important stakeholders that will benefit from the positive implications of this study. Private resurfacing companies and transport departments can optimise their overall process and style of working by comparing their end-to-end process and work plans with the ones mentioned in this paper. It will boost the productivity of equipment like planners, pavers and other machines used for resurfacing operations. Originality/value Existing approaches to process modelling such as VSM and process diagrams are constrained by their effectiveness in the analysis of dynamic and complex processes. This study presents a DES-based approach to validate targeted improvements of the current state of road surfacing processes and in exploration of different optimisation scenarios.

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