Investigating the effect of value stream mapping on operational losses: a case study

Abstract

Purpose One of most important tools for lean production is value stream mapping (VSM), which identifies and reduces errors, losses, waiting time and improves value adding time, leading to enhanced product quality through empowering production unit in terms of production risk and cost reduction in the long term. This paper aims to present a general concept for production flow, such that value stream can be fully understood. For this purpose, this research investigates the effect of value stream on operational losses and analyzes the process that has been conducted in preview step operationally, using the discovered pattern. Design/methodology/approach In this research, related processes were evaluated after the review of the relevant literature and after extracting operational basics of lean approach using a questionnaire, such that all factors affecting operational losses and VSM were assessed. Then comparison between the result of current state map and the result of future state map were done and analyzed. Cronbach’s alpha was calculated to test the designed questionnaire’s reliability, which resulted in an acceptable level of 0.845. The structural equation modeling method through SPSS and Smart–Partial Least Square was applied to analyze the data and test the hypotheses. Findings The results reveal that implementing required changes and corrections will lead directly to production process improvement, which, in turn, results in higher customer satisfaction because of cost reduction and quality enhancement. Also, tests of the hypotheses confirm that VSM affects six operational losses, namely, equipment failures, set-up and changeovers, idling and minor stoppages, reduced speed operation, scrap and rework and startup losses. Research limitations/implications Though this study was done in a single manufacturing company, the implementation of this study delivers important results that can be deployed in other such manufacturing companies. Practical implications This tool helps to identify loss points, make right decisions, and choose the best methods and lean tools for improvement. The surveyed company can integrate lean principles and tools and achieve better results using this tool. Also, this tool could be used to analyze the process and to define necessary changes before changing the process components. Originality/value This study contributes to the body of knowledge in manufacturing research as the study regarding the effects of improvement opportunities identified through VSM on operational losses is still something new.