Value Stream Mapping in the Supply Chain

Abstract

The objective of this research was to use value stream mapping as a tool to identify waste in processes used to supply contactors to XYZ Company. XYZ Company lacked lean processes that resulted in overproduction and increased inventory costs. These processes extended from XYZ Company’s operations to the contactor supplier’s operations. This project showed how high level value stream maps can identify waste and provide substantial return on investment savings. Identifying opportunities in the supply chain was necessary to meet the customer’s expectations and compete in the world market. Lean manufacturing has a history of providing lower cost items. Now companies are working with their suppliers to provide cost reductions by eliminating waste between their operations. Project teams can use lean tools and create future state processes. The project approach helps to connect subject matter experts to process experts, providing for better solutions positively impacting costs, time, and use of materials. This research shows how to save costs by providing a simpler solution.