ASSIGNMENT

Supply chain management

Submitted To: Prof. Zia Ur Rehman

Submitted By: Tehreem Athar

MC – 018

M.com 1.5 Morning

 VALUE STREAM MAPPING
Value stream mapping is a flowchart method to illustrate, analyze and improve
the steps required to deliver a product or service. A key part of lean
methodology, VSM reviews the flow of process steps and information from origin
to delivery to the customer. As with other types of flowcharts, it uses a system of
symbols to depict various work activities and information flows. VSM is
especially useful to find and eliminate waste. Items are mapped as adding
value or not adding value from the customer’s standpoint, with the purpose of
rooting out items that don’t add value.
TIME-BASED PROCESS MAPPING:
In short, traditional TBPM is a technique for mapping the performance of a
process with respect to time (Gregory and Rawling, 1997). The term was first
introduced by Professor Goran Persson (Norwegian School of Management) and
the context of its application is portrayed in relation to business processes within
a holistic supply chain system. It emphasizes on reducing the amount of time
consumed by business processes; the key to achieving time compression is to
remove waste and refocus the sequence of the activities so that time consumption
is reduced for the total supply chain system.

PROCESS ACTIVITY MAPPING:

A Process Map is a schematic diagram that represents processes as sequences of
time-‐based activities. It considers the whole process – paying particular attention
to interfaces between different types or stages of processes.

A Process Map lays out clearly the step-by-step flow of a process by tracking the
flow of material, information and/or service through all its steps. It provides a
hierarchical method for displaying processes that provides a visual representation
of the workflow either within a process - or the whole operation.

SUPPLY CHAIN RESPONSE MATRIX:

A Supply Chain responsiveness matrix is one such tool, used for analyzing stock,
process and lead-time. It is constructed by reviewing stages of the companies’
process and reviewing the inventory and lead time associated with each step –
then displaying the results pictorially.
In the example below we can see that the process takes 33 days to complete and there is 48 days
(lead time) inventory within the supply chain with a total lead time therefore of 81 days.
Example Supply Chain Responsiveness matrix

The approach does have some drawbacks however as there may be valid reasons for some
“overstocking” for example – risk avoidance mitigating obsolescence, batch break buying.
These may all account for surplus inventory but have been made with appropriate rationale.

However given these drawbacks, SCRM has many benefits:

* Once produced the diagram is very easy to understand
* Can help improvement teams “home in” on areas which have large stock holdings
* Can show areas that may represent quick win improvement targets.

Production variety funnel:

A brewing industry case. Develops a new value stream or supply-chain mapping
typology. This seven-map typology is based on the different wastes inherent in
value streams.

Quality Filter mapping:

Quality Filter Mapping is part of the Value Stream Mapping  toolkit and is used to
analyze processes/functions with respect to quality.
The results of a Quality Filter Map shows how much waste is being generated
within an organization at each stage of the process.
Three types of quality are measured as part of the model:

1. Product Quality – Defective Item provided to customer

2. Defect Quality – Defective item found prior to receipt by customer
3. Service Quality – Defects that affect the ability of the supplier to provide
the service or product to the customer
Quality failures/defects are represented as a ratio (typically parts per million).
Results of Quality Filter Mapping are commonly used to feed into continuous
improvement plans. A revised map is then generated after implementation of
improvement plans to measure the result of improvements.

Demand Amplification mapping:

The tendency in any multistage process for production orders received by each
upstream process to be more erratic than actual production or sales at the next
downstream process. This also is called the Forrester Effect (after Jay Forrester at
MIT who first characterized this phenomenon mathematically in the 1950s) and
the Bullwhip Effect.

The two main causes of demand amplification as orders move upstream are: (a)
The number of decision points where orders can be adjusted; and (b) delays while
orders wait to be processed and passed on (such as waiting for the weekly run of
the Material Requirements Planning system). The longer the delays, the greater
the amplification as more production is determined by forecasts (which become
less accurate the longer the forecasting horizon) and as more adjustments are
made to the orders (by system algorithms adding "just-in-case" amounts).
Value Adding time Profile:
Value added time is the time spent that improves the outcome of a process. This is
typically just the processing time associated with production. All of the other
intervals associated with a process, such as wait time and queue time, contribute
nothing to the outcome and so are considered non-value added time.

Example:
Value added time is made up of processes that improve products. The only value
added time process in the cycle time example is the process time. This is the
amount of time it takes to actually produce the product. Obviously, production
time is a value added time because it creates a product from raw materials. The
product is improved at the end of the process time.