Value Stream Analysis in Military Logistics: The Improvement in Order Processing Procedure

Abstract

Military logistics is a complex process where response times, demand uncertainty, wide variety of material references, and cost-effectiveness are decisive for combat capability. The demanding flexibility can only be achieved by improving supply chain management (SCM) to minimize lead times. To cope with these requirements, lean thinking can be extended to military organizations. This research justifies and proposes the use of lean methodologies to improve logistics processes with the case study of a military unit. In particular, the article presents the results obtained using value stream mapping (VSM) and value stream design (VSD) tools to improve the order processing lead time of spare items. The procedure starts with an order generation from a military unit that requests the material and ends before transportation to the final destination. The whole project was structured, considering the define–measure–analyze–improve–control (DMAIC) problem-solving methodology. The results show that the future state map might increase added-value activities from 44% to 70%. After implementation, it was demonstrated that the methodology applied reduced the lead-time average and deviation up to 69.6% and 61.9%, respectively.