Improving Value Stream Mapping for Business Organizations
For any business organization to achieve its maximum profitability motive, it has to improve and evaluate its value stream mapping from time to time. According to Dinis-Carvalho et al. (2015), value stream mapping is a method of managing lean strategies for the analysis of present product flow and redesigning it to effectively and efficiently meet the future market demands with minimal resource wastage as possible. It focuses on the flow of either a good or service from the mainstream raw material throughout the entire processes involved in making the final product accessible to the final consumer with highly sustainable and reduced wastage within the processes (Faulkner, & Badurdeen, 2014). Therefore, this essay will elaborate in entirety the lean-management analysis of process involved in the flow of products for Deere Inc.; the types of wastes and recommendations to be implemented in the realization of a dependable future value mainstream.
The Lean Manufacturing Processes of Deere Inc.
Deere Inc. is one a leading manufacturer in the world and is a renowned company when it comes to intensive promotion of its products targeting the final consumer at a fair price and relatively higher quality as compared to its market competitors. By the year 2016, Deere Inc. was rated as a leader in the lean manufacturing processes (Porteous & Rammohan, 2013). It has a working policy of continuous improvement to enable it to produce high-level quality products, at a significantly lower cost, and within the minimal time possible. This action is necessary to help it conduct production processes with minimal waste in line with the universal principle of lean manufacturing. As a rule of the thumb, the ultimate goal of production of any organization is for the product to reach the final consumer. To ensure this objective is achieved efficiently, Deere Inc. currently operates within the following parameters of value stream mapping as part of lean manufacturing; exemplary in the chart:
Evaluation
Evaluation involves the extraction and collection of only necessary inputs. The production process involves the change of raw materials to finished commodities. Also known as manufacturing, it involves the creation of form utility. The process involves close monitoring of Work-In-Progress to ascertain the level of productivity. The finished products are stored in the warehouse as they wait shipment to the final consumers' destination. Stock control techniques used are First In First Out (FIFO) to necessitate up-to-date branding and fashion lead from competing firms. The physical movement of products from the warehouse to the point of consumption is done. The carriers used are for Deere Inc. Consumption is the ultimate goal for production. Deere Inc. ensures the customers receive quality products, at a lower cost to obtain the value for the paid price. Just like any other production firm, Deere Inc. exhibits the fundamental expectation of a manufacturing organization by assembling the necessary materials in readiness for manufacturing. However, the challenge here is the quantity of the primary inputs, as at times it surpasses the planned level. This action eventually leads to waste of some materials.
Production Process
As to production, Deere Inc. uses a capital-intensive method of production alongside a huge pool of labor force. This would mean that there is the little maximization of direct labor as to be attributed in the final commodities. For a lean manufacturing to be efficient, Clark, Silvester & Knowles (2013) indicate that the labor quality needs to be improved to match the costs incurred for it. In Deere Inc., the cost of human capital is high with minimal output hence evidence of weakness in lean manufacturing. Furthermore, waste of overproduction can arise due to excess labor, and the excess output may lack market, and if any, the sales price will reduce. The production processes employed by Deere are not entirely lean-compliant since one production process has to be completed in the entire production cycle for the other product to begin getting processed in the same step. The waiting time incurred is wastage to the company.
Warehousing
Warehousing is an important function for any manufacturing organization. Deere Inc. seems to have taken this idea into account by using the FIFO inventory control scheme but with little attention to defects which may arise due to storage of Work-In-Progress products. In the event these products get defective, wastage shall have occurred right from the raw materials which were used yet the production process ended up being incomplete. Besides, work-in-progress is evidence of overproduction, which is also a waste.
Transport
Transport is a physical activity in which an organization moves the commodities from the point of production to the point of consumption. Deere Inc., at the moment, uses their carriers as part of minimizing transport cost within nearby places. Besides, it does so as part of an after-sales service scheme. Either way, this action increases the chance of incurring waste in case of damage to its product should the carrier get accidents. Liability for a self-carrier organization is inevitable. Customer satisfaction is at the helm of Deere Inc.'s objective. It does so through quality assessment programs, equipping its employees with relevant customer relationship skills, and benchmarking against itself and other competitors in the provision of quality products to their customers.
Projection and Recommendations
Upon making improvement in its value stream map, Deere Inc.'s production process will experience an improved lean management system. At the raw materials stage, the company would realize that the use of high-quality materials to manufacture products is less costly compared to when it uses low-quality ones which end up being costly and with minimal life in the production cycle. This plan would assist Deere Inc. to overcome wastage due to the acquisition of raw materials. The wastages due to inappropriate processing and overproduction would be addressed through adequate and expertise production planning. For instance, instead of acquiring new machines regularly, Deere Inc. can consider maintenance of the existing machines unless they are broken down beyond repair. The storage capacity in the warehouse would increase when the footwears are properly arranged, thereby reducing the wastes due to damage and inappropriate lead time focus. According to Sundar, Balaji, & Kumar (2014), lean manufacturing minimizes wastage that would arise from improper and excess storage of products. When shipping their products, Deere Inc. should carry the required optimum capacity to avoid chances of its products getting damaged. To minimize defects identifiable at the point of consumption, the company needs to initiate a proactive quality assurance mechanism during the production process, which will guarantee defect-free end products. The funds that would otherwise be used to reschedule the production processes or re-works will be significantly minimized.
Analysis and Recommendations
From the evaluation of the current value stream map for Deere Inc., it is clear that lean manufacturing has not been fully achieved in every production process. Necessary actions need to be incorporated within the system to enhance its future value streams, which will incur negligible waste. First, the company needs to carry out expert analysis of annual demands for its products to competently project the required amount of primary inputs and the costs to be incurred for production. Production cost includes elements of direct materials, direct labor, and direct overheads (Shepherd, 2015). At the production stage, Deere Inc. should competently maximize the available labor force through informed production planning techniques. Maximum utility enhances the effectiveness of employees, thereby reducing the waste labor cost. Further, adopting the use of Just-in-Time techniques would help, so that production is only scheduled upon order placement rather than producing to wait for demand. For the warehouse wastes to be minimized, proper product arrangement needs to be done besides embracing the latest models of inventory management. The holding costs would better be minimized if Deere Inc. uses the all-time EOQ model. The economic order quantity is widely used to minimize the total ordering and holding costs for commodities. As to shipment, it is worth noting that the liability due to damage and pilferage of products under transit would accrue to Deere Inc. when it uses their carriers. To eliminate such liability and subsequent losses, the company should consider outsourcing transit services for all their commodities. Finally, as aforementioned, the quality of products at the point of consumption should be guaranteed. According to Carlborg, Kindström & Kowalkowski (2013), product quality due to value stream mapping enhances customer satisfaction. For this to be effective, the company needs to conform to quality assurance and control standards to maintain quality consistency in their production process.
References
:Carlborg, P., Kindström, D., & Kowalkowski, C. (2013). A lean approach for service productivity improvements: synergy or oxymoron?. Managing Service Quality: An International Journal, 23(4), 291-304.
Clark, D. M., Silvester, K., & Knowles, S. (2013). Lean management systems: creating a culture of continuous quality improvement. Journal of clinical pathology, jclinpath-2013.
Dinis-Carvalho, J., Moreira, F., Bragança, S., Costa, E., Alves, A., & Sousa, R. (2015). Waste identification diagrams. Production Planning & Control, 26(3), 235-247.
Faulkner, W., & Badurdeen, F. (2014). Sustainable Value Stream Mapping (Sus-VSM): methodology to visualize and assess manufacturing sustainability performance. Journal of cleaner production, 85, 8-18.
Porteous, A., & Rammohan, S. (2013). Integration, Incentives and Innovation Nike’s Strategy to Improve Social and Environmental Conditions in its Global Supply Chain. Stanford Institute for the Study of Supply Chain Responsibility, Stanford, CA.
Shepherd, R. W. (2015). Theory of cost and production functions (Vol. 2951). Princeton University Press.
Sundar, R., Balaji, A. N., & Kumar, R. S. (2014). A review on lean manufacturing implementation techniques. Procedia Engineering, 97, 1875-1885.
