Supply chain value stream mapping: a new tool of operation management

Abstract

Purpose – The issue of the supply chain has been given much attention in recent decades, both in the academic arena as well as in the business world. It has become so important that organizations have begun to directly manage the supply chain, appointing specific managers to perform this function. New challenges now include a focus on supply to determine the right time and place for product delivery. Some authors indicate a close relationship between Total Quality Management and the supply chain regarding its philosophical and operational goals and perspectives. Lee (2004) goes even further by indicating that only organizations that devise agile, adaptable and aligned supply chains will be able to continue competing in today’s environment. Therefore, observing and measuring the supply chain at all times is critical for today’s organizations. The purpose of this paper is to describe the implementation of a tool called Supply Chain Value Stream Mapping (SCVSM) in order to thoroughly understand competitive priorities of volume and delivery (On-time Delivery (OTD)) for any supply chain in organizations. Design/methodology/approach – An exploratory case study was conducted. Two manufacturing company which have been established in Mexico with a robust supply chain for at least 20 years, were selected. The paper chronicles the implementation of SCVSM in both case studies. Three methods were used to gather data: direct observation; documentary analysis and semi-structured interviews. Findings – This paper proposes a new tool for operation management called SCVSM. Its development, refinement and applied in both case studies. The evidence shows that it is possible to apply the tool (SCVSM) to visualize the variables volume and OTD in supply chains. In consequence, this research has made a small empirical contribution to the theoretical field of supply chain quality management. Research limitations/implications – This paper has the same limitations as all other case-study-based research, including analysis subjectivity and questionable generalization of findings. There may well also be a theoretical gap in the geographic region because the paper only analyzes two companies established in Mexico. Practical implications – Derived to describe both case studies on how to apply the SCVSM tool it may prove to be of value to practitioners and managers involved in the field. Similarly, a section on managerial implications has also been included. Originality/value – The study contributes to the limited existing literature on the Supply Chain Quality Management and subsequently disseminates this information in order to provide impetus, guidance and support toward increasing the development companies in an attempt to move the Mexico manufacturing sector toward world class manufacturing performance.