Thursday, 17 October 2013

Lean Manufacturing and Value Stream Mapping are Emerging Business Challenges

Lean manufacturing refers to the techniques, processes, initiatives and strategies implemented by businesses in order to reduce unproductive and unnecessary activities, tasks and behaviors from the work environment. With economic slowdown around the world, companies are facing tough challenges in making profits. Therefore, the technique strives to improve competitiveness and remove waste so that more value is received by the consumers. In such an environment, businesses produce only what the customer needs and demands. The focus is on manufacturing processes so that the products are consumer-friendly. When lean principles are followed strictly by a company it is called lean enterprise. These companies have common characteristics; focus on customer and purpose, organizational alignment, knowledge, empowered employees and flexible workforce are some of the characteristics of an enterprise.


A simple yet powerful tool used for analysis and visualization of the production process through mapping is called value stream mapping or VSM. The technique originated from Toyota, the car manufacturer. It is nothing but a graphic representation of the processes in the information and material flow. Real-time data gathered is extremely important because ground data is often outrageously different from calculated or estimated data. This proven tool is suited for different types of industries. It is perfect for creating organizational changes positively and producing benefits in quality, cost and flexibility. However, VSM should be properly applied. This means that the common mistakes that undo the process of stream mapping must be avoided. One significant step is to ensure that there is a VS map before starting the process. If the steps are followed correctly, there will no waste of time and resources.

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