VSM and VSD of production and logistics processes

Geared to optimize logistics, this project comprised the optimization of storage areas currently in use, the fractal allocation of the internal depot to the production lines, the introduction of production control according to the pull principle, and the definition of a new concept for internal material provisioning with the goals of boosting productivity and enhancing manufacturing flexibility.

Assembled by Agamus, the joint task force began with a systematic analysis employing Value Stream Mapping (VSM) and Value Stream Design (VSD) tools.
This analysis revealed the necessity of first optimizing and stabilizing manufacturing processes, and then defining the optimized logistical processes in a successive step.

The potential detected in production processes was tapped in the course SMED workshops and workshops centered on optimizing workflows. The transfer of know-how from Agamus to the customer is vital factor: It ensures implemented improvements are sustainable and initiates a continuous improvement process.

The factors that provided the underpinning for setting up an optimized logistical system were the successful stabilization of the manufacturing processes and the decoupling of prefabrication and assembly. The pull principle was introduced in production control by way of a supermarket.

Working on the basis of the VSM survey and the defined VSD, the new flow of materials was implemented along with the appropriate intermediate steps. This entailed mastering the challenge presented by the combination of a classic lot size manufacturer and a flexible assembly area.

The receiving warehouse was reorganized and inventory quantities redefined in a further step. This required parameters to be redefined at the individual product level in accordance with factors such as delivery reliability, supply quality and distance from the supplier. This served to achieve the goal of optimizing employed storage space. At the same time, storage space was allocated to the different fractals. This reorganization of the warehousing system was a prerequisite for optimizing internal transport.

For the purpose of internal materials provisioning, the existing trailer concept was redefined according to the principles of a milk run. New routings, capacities and frequencies were computed to ensure optimum provisioning of fractals.

In just three months time, the project achieved the following results:

• Setup time decreased in accordance with the target agreement.
• Flexibility increased.
• Inventories were reduced in accordance with the target agreement.
• Storage space utilization was optimized.

Alongside these financially quantifiable results, this project attained the vital success of developing factory employees’ know-how through intense training and coaching.

Thomas Möller, Agamus Consult