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Summary of 4 pages for the course BUSINESS at Saxion (The solutions)

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Chapter 6: Case Value Stream Mapping
1.What is the big advantage of value stream mapping?

B. It provides a visual overview of value and non-value-adding activates as well as
improvement projects (kaizen) in the bigger picture, so that sub-optimization are avoided as
much as possible.

2. What is WIP in the above VSM? So no stock of raw material and final stock!

The WIP is the total stock minus raw material and the ending stock (finished goods). You take
both the small and large.
= 1000+1250+1050+2300 = 5600 pieces
You do not include the cycle time in the shipping process in your analysis.

3. The company works in 1 shift.8 hours per day, including two 30-minute breaks. A working
consists of 5 working days. In the VSM you can see that an average of 3200 pieces are
delivered per week.
Calculate the task time??
Task time = Daily Availability/ Daily Demand
Daily availability = 7*60*60 = 25200 seconds per day
5 working days = 3200/5 = 640 pieces per day
Task time = Daily availability/ Daily demand
= 25200/640 = 39,375 seconds per piece

4.How many days of stock is there between “press” and “pierce &form”?
The pieces of press and piece and form = 1000+1250 = 2250 pieces
2250/640 = 3.5 days

5. What is the total lead time in days for the entire process (Excluding Staging)? Include the 5
days’ supply of “raw material” in your calculation?
5 days stock for Press (raw material)
2250 stock between Press and Pierce &Form corresponds to 2250/640 = 3.5 days
3350 stock between “Pierce & Form” and “Finish Grind” 3350/640 = 5.2 days
1475 stock between “Finish Grind” and “Shipping” corresponds to 1475/640 = 2.3 days
Total = 16 days

6. The LSS GB want to know how great the Flow Efficiency is in the process?
Calculate the value-added percentage of the processes within this VSM. Use a lead time of
16 days.
The total lead time = 16*420* 60 = 403200 seconds
The sum of the cycle time is 12+35+34= 81 seconds
The value-added percentage = cycle time/lead time = 403200/81 = 0,02 %

7. He now wonders whether the goods flow sufficiently because the capacities of the
stations are synchronised.

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