Posted: April 26th, 2015

Value Stream Mapping (VSM) Report

Value Stream Mapping (VSM) Report

Order Description

The three options for this assignment:
Option 1: Work Experience Value Stream Map
Option 2: Primary Data Value Stream Map
Option 3: Secondary Data Value Stream Map

Report Structure:
Section 1: Executive Summary(5%)
Section 2: ‘Current State’ Value Stream Map(30%)
Section 3: ‘Future State’ Value Stream Map(30%)
Section 4: Value Stream Improvement(30%)
Section 5: Conclusion(5%)

Assessment Methods

Assessment Details:

The module is examined by one piece of coursework comprising an individual assignment focusing on a Value Stream Mapping (VSM) Report, including detailed Current and ‘Future State’ Value Stream Maps. This individual assignment represents 100% of the total marks for the module. Further details about the assignment can be found below and more details will be provided at the start of the semester:

Value Stream Mapping (VSM) Report

“All we are really trying to do in lean manufacturing is to get one process to make only what the next process needs when it needs it. We are trying to link all processes – from the final consumer back to raw material – in a smooth flow without detours that generates the shortest lead time, highest quality, and lowest cost.”

(Rother and Shook, 2009)

Background: Value Stream Mapping (VSM) originates from the Toyota Motor Corporation and has been applied to a wide variety of firms, supply chains and industries (e.g. automotive, aerospace, defence, electronics, R&D, health care services, financial services, investment banking, insurance, etc) (Rother and Shook, 2009). At Toyota, Value Stream Mapping (VSM) is called Material and Information Flow Mapping and is used to depict different ‘current states’ and ‘future states’ of the firm and its supply chain. The Value Stream Mapping (VSM) approach focuses on the big picture by mapping the supply chain of a particular product or product group and improving the performance of the whole supply chain rather than just optimising individual processes. Firms that use Value Stream Mapping have found that it helps to improve information visibility, eliminates waste and non-value adding activities, reduces lead times, generates a continuous flow of products and adds value.

The three options for this assignment

For this assignment, students are required to produce a Value Stream Mapping (VSM) Report for a product and identify how its supply chain could be improved in the future. You can complete this assignment in three different ways. Each student must choose only one of the following three options for this assignment.

Option 1: Work Experience Value Stream Map: If you are familiar with a product/service and its supply chain from your work experience, past employment or your current job, then this can form the basis of your value stream mapping assignment. In particular, you might want to use information collected from your company and face-to-face interviews with managers/employees to help construct a detailed value stream map for a particular product. Following ABC production analysis, you might want to focus on one of the following types of product: (i). Runners: A product that is purchased daily and accounts for the majority of the company’s demand (i.e. A items), (ii). Repeaters: A product that is purchased less frequently and accounts for a moderate share of demand (i.e. B items), (iii). Rogues: A product that is ordered infrequently and in variable amounts (i.e. C items), (iv). Problematic products: A particular product that is generating problems for the company and its supply chain, or (v). New product: A new product that has only recently been launched via an existing/new supply chain. In previous years a wide range of Work Experience value stream maps have been produced, these include Liquefied Natural Gas (LNG), petroleum, pet food, automotive components, aerospace parts, Chilli Powder, luxury fashion clothes and even dynamite explosives!

Option 2: Primary Data Value Stream Map: Some students choose to collect primary data for this assignment by visiting local factories, attending factory tours or interviewing managers to collect detailed information about the supply chain. Please note that factory tours in the UK are very popular, so you may have to book in advance and access is not always guaranteed. Past students that have used this approach have studied consumer goods products, components for the oil and gas industry, charity clothes, alcoholic beverages, aerospace components, and automotive door frames.

Option 3: Secondary Data Value Stream Map: An alternative approach is to select a product/service and supply chain that you are interested in and wish to understand more about. Students often select a product from a company they wish to work for in the future, or a company they would like to study for their dissertation. You can find lots of information about different products and their supply chains by looking at company websites, industry reports, trade journals, magazines, newspapers, press releases, online videos, conferences, MS PowerPoint presentations, and past academic research. If you are choosing this option, I would strongly recommend that you collect as much information as possible about the company, its product and its supply chain at the start of the semester (i.e. weeks 1 and 2) to see if there is enough data to complete the value stream mapping assignment. Past students have used this approach to create value stream maps for Coca-Cola drinks, frozen foods, IPhones, laptops, computer components, etc.

Report Structure

Title Page: Each report should contain a title page that clearly identifies your student ID number, degree (MSc …), module code (BMAN70292), and the title of your report. A Contents Page that lists the main sections of the report with the accompanying page numbers should follow this.

Section 1: Executive Summary:

The report should begin with an Executive Summary (1 paragraph) that provides a clear overview of the report and the key findings for managers. This should be followed by a paragraph that outlines the background details about the company, its product, supply chain and the industry.

[5% of the marks, for executive summary section]

Section 2: ‘Current State’ Value Stream Map

Using the Value Stream Mapping (VSM) approach, describe and justify what you believe to be a plausible supply chain for your chosen product/service. Identify the key production processes, material flows, product flows, information flows, financial flows and supply chain relationships that have the greatest influence over the performance of this supply chain. Students will receive high marks for their ability to ‘critically evaluate’ the problems with the existing supply chain, such as identifying bottlenecks, long lead times, production waste,  non-value adding activities, scheduling problems, poor supply chain communication, excessive inventory, stock out risks, capacity constraints, order backlogs, disruption risks, logistical/ transportation delays or sustainability issues. Students are also required to provide a detailed “Current State” Value Stream Map to help illustrate the problems with the existing supply chain. On this value stream map, students should provide details of the existing flow of materials, products, information and finance using the established icons. All current state value stream maps must include details of these flows between the supplier, the firm (and its internal processes), and its customers. Where possible, students should also include a ‘extended value stream’ map that graphically illustrates the flow of products across the whole supply chain (i.e. from the source, supplier’s suppliers, suppliers, the firm, warehouses, distributors, and customers/retailers/end users). It is recommended that students choose a particular product or a ‘product group’ (i.e. a group of similar products) rather than attempting to map the value streams for a large number of different products. It is important to remember that Value Stream Mapping focuses on the ‘big picture’ (i.e. the supply chain system), not just individual processes, and improving the whole supply chain not just optimizing its parts. Students are not required to calculate precise inventory levels, cycle times, changeover times, uptimes, delivery times, capacity levels, and lead times, but if you have access to some of this information then it can be incorporated into the report. To develop a “current state” value stream map, Rother and Shock (2009) suggest that you follow a four-step process:

STEP 1: Identify the end customer’s requirements
STEP 2: Draw the basic processes within the firm/organization.
STEP 3: Identify and map material flow from suppliers
STEP 4: Map and include information flows along the Value Stream

[30% of the marks]
Section 3: ‘Future State’ Value Stream Map

Imagine you are the Supply Chain Director for this product. How would you fix these problems and improve the supply chain’s performance? Illustrate your answer with examples of practical applications from the SCM literature and the “real world” (e.g. Case Studies, industry examples, etc). For example, you might use past research that has investigated how similar firms have transformed their supply chains by implementing Vendor Managed Inventory (VMI) to reduce the bullwhip effect, or using Collaborative Planning Forecasting and Replenishment (CPFR) to improve supply chain coordination. Students will receive high marks in this section by supporting their managerial recommendations with references to the SCM theories, strategies, practices and systems covered in this module. For instance, if you are recommending that a supply chain needs to become more responsive to consumer demand, then you could examine the changes Zara made to its logistics, operations, and sourcing strategies to build an agile supply chain (e.g. the Zara Fast Fashion System). You should also provide a detailed ‘Future State’ value stream map to help illustrate how the new supply chain would operate. For example, previous students have developed ‘future state’ value stream maps to identify how a ‘current state’ supply chain can be changed into a lean supply chain or a supply chain that is less susceptible to disruption risks. Alternatively, the ‘future state’ value stream map might depict how a supply chain could be designed to prevent and mitigate the impact of the bullwhip effect, or address a particular strategic concern experienced by the firm and its supply chain (e.g. excessive inventory, long lead times, poor supply chain coordination, order backlogs, etc).  High marks will be awarded to students that demonstrate ‘originality’ during their discussion for how the value stream could be changed to develop a long-term competitive advantage for the firm
.
[30% of the marks]

Section 4: Value Stream Improvement

Now that you have identified the ‘future state’ of the value stream, your next task to explain how the Supply Chain Director should change their existing Supply Chain Management (SCM) practices to achieve this goal. Within this section, you need to critically evaluate how you would use different SCM theories, models and practices to improve the supply chain for this product and transform the value stream from its ‘current state’ to the ‘future state’. Here you can make strategic, tactical and operational recommendations that managers could then implement. Examples might include developing a new agile SCM strategy, acquiring shares in key suppliers in Asia to prevent counterfeiting, and installing an online order tracking system to improve information visibility across the supply chain.

Students should draw upon the Supply Chain Management literature to support their recommendations and use the theories, models and practices from this module. In addition, students can also recommend new Supply Chain Management (SCM) practices the firm could use to improve supply chain performance, as long as these are supported with references and sources to the academic/industry literature.
[30% of the marks]

Section 5: Conclusion

Finally, a conclusion paragraph should be included into the assignment that provides an overview of the key findings from your Value Stream Maps and your improvement recommendations for managers.

[5% of the marks, for the conclusion]

Building a Value Stream Map:

To draw your Value Stream Maps you can use pens or pencils on an A4 sheet of paper or draw the map using Microsoft PowerPoint (note: you can use the icons provided on the lecture slides). In addition, for this assignment you can also develop your own value stream icons and symbols and then incorporate them into your value stream map (along with text boxes, such as ‘comment boxes’) to identify how it can be improved in the future (e.g. where there is a long lead time, inadequate suppliers, supply disruption risk, sustainability concerns, etc).

Report Format

Word Length: The word length limit for this report is 2,500 words. The title page, contents page, reference list, appendix and any tables, figures, diagrams or graphs will not be included in the word count.

References: The report should include references to articles and sources from the Supply Chain Management (SCM) literature (i.e. more than just the main textbooks). All reports should be properly referenced using an appropriate style – the Harvard Referencing System is recommended as being straightforward and easy to use. A full reference list should also be provided at the end of the report containing the references for all sources used within the report. It is recommended that students reference at least 20 academic journal articles/books within this report and include additional references that focus on the details of the company, the product, its supply chain, etc.

Appendix: Any additional information should be included in an Appendix to provide further details about the product, the supply chain or industry background. However, the information in the Appendix will not be marked.

Writing Format: Reports should be completed in Times New Roman font style (font size 12) in Microsoft Word (or a similar word processing program), with 1.5cm spacing between lines and a 2.54cm boarder margin around each page. However, boarder margins can be increased for the pages that contain the value stream maps. Page numbers should be clearly displayed at the bottom of each page.

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