See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/274714143 USING VALUE STREAM MAPPING AT APPAREL INDUSTRY: A CASE STUDY Conference Paper · October 2012 CITATIONS READS 3 17,124 1 author: Engin Akçagün Mimar Sinan Fine Arts University 32 PUBLICATIONS 87 CITATIONS SEE PROFILE All content following this page was uploaded by Engin Akçagün on 15 April 2015. The user has requested enhancement of the downloaded file. th 6 INTERNATIONAL TEXTILE, CLOTHING & DESIGN CONFERENCE - Magic World of Textiles th th October 07 to 10 2012, DUBROVNIK, CROATIA USING VALUE STREAM MAPPING AT APPAREL INDUSTRY: A CASE STUDY Engin AKÇAGÜN; Vedat DAL & Abdurrahim YILMAZ Abstract Companies who want to attain a competitive structure should analyze the existing situation and should have a structure that can respond quickly to fast-changing customer demands. One of the tools used to achieve this goal is value stream mapping method. Value stream mapping is a powerful tool that can show material and information flow on a single page with symbols. Future state map is drawn by asking a series of critical key question to improve the current state. The aim of this study, to describe the use of Value Stream Mapping in Apparel Industry. First of all, the current state of company has been prepared to describe the current position and problem areas. All process of outerwear takes 27-33 weeks at the current state. With asking critical questions future state map was prepared. At the future state map, the total process of outerwear is aimed to reduce to 9-14 weeks. Key words: Apparel, Value Stream Mapping, Value Added and Non-Value Added Operations 1. Introduction Competition increased by globalization forcing companies to produce more efficiently. Many manufacturing companies have experienced the drastic changes and are in a process of undergoing physical and cultural transformation to adopt the concept of lean thinking [1]. Womack et al. (1990) coined the term “lean production” in their book The Machine That Changed the World. Lean production (also known as „lean manufacturing‟ or just lean) refers to a manufacturing paradigm based on the fundamental goal of continuously minimizing waste to maximize flow [2]. For another definition; Lean manufacturing is a conceptual framework based on a few established principles and techniques and a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product [3]. Lean manufacturing encompasses many different manufacturing strategies and activities that are familiar to most industrial engineers. In the simplest form lean manufacturing is about: making the product flow the process; cutting waste; shortening the total manufacturing lead time for a product and continuous improvement [4], [1]. Womack and Jones (1996) provide the conceptual framework for categorizing all of the tools and practices of lean production into five basic areas [3], [5]: Define value: In the lean philosophy, “value” is determined by the end customer. It means identifying what the customer is willing to pay for, what creates “value” for him. The whole process of producing and delivering a product should be examined and optimized from the customer‟s point of view. Identify the value streams: So once “value” is defined, we can explore the value stream, being all activities –both value-added and non-value added- that are currently required to bring the product from raw material to end product to the customer [5].Next, wasteful steps have to be eliminated and flow can be introduced in the remaining value-added process. Flow: The concept of flow is to make parts ideally one piece at a time from raw materials to finished goods and to move them one by one to the next workstation with no waiting time in between. Pull: Pull is the notion of producing at the rate of demand of the customer. Strive to perfection: Perfection is achieved when people within the organization realize that the continuous improvement process eliminating waste and reducing mistakes while offering what the customer actually wants becomes possible [5], [6], [7]. th 6 INTERNATIONAL TEXTILE, CLOTHING & DESIGN CONFERENCE - Magic World of Textiles th th October 07 to 10 2012, DUBROVNIK, CROATIA Toyota‟s chief engineer, Taiichi Ohno and sensei Shigeo Shingo and is oriented fundamentally to productivity rather than to quality. The reason for this is that improved productivity leads to leaner operations which help to expose further waste and quality problems in the system. Thus the systematic attack on waste is also a systematic assault on the factors underlying poor quality and fundamental management problems [8]. In an internal manufacturing context, there are three types of preparation that are undertaken according to Monden [9]: Non-value adding (NVA), Necessary but non-value adding (NNVA) and, Value-adding (VA). This scheme proved to be more generic and was extended to different areas. In addition to this classification in Toyota production system there are seven commonly accepted wastes: overproduction, waiting, transport, inappropriate processing, unnecessary inventory, unnecessary motion, defects [8]. Lean Manufacturing uses tools like one-piece flow, Kaizen, inventory management, Poke-Yoke, 5S and scrap reduction to reduce manufacturing waste [10], [2]. A major activity in the lean journey towards lean is the effective management of the flow of products and services through the series of the activities involved in providing value to the customer, known as the value stream. A relatively recent tool to support and implement the lean philosophy is a Value Stream Mapping (VSM) [5]. VSM is a visual illustration of the entire value stream (from customer order entry through purchasing, manufacturing and shipping of the finished product) in facility [11], [1]. This study aims to use the Value Stream Mapping in apparel industry with a case study. The rest of this paper is set out as follows. The next section provides a review of literature relating to value stream mapping. The third sections sets out the research methods of study. The practice studies are in the fourth section. Results and conclusions are in the final section. 2. Literature Review 2.1. Value Stream Mapping: Rother and Shook (1999) explained that a value stream is comprised of all actions (both value added (VA) and non-value added (NVA)) that are required to bring a product or a group products from raw materials to the arms of customer. The ultimate goal of VSM is to identify all types of waste in the value stream and to take steps to try and eliminate these [5], [12], [13]. While researchers have developed a number of tools to optimize individual operations with in a supply chain, most of these tools fall short in linking and visualizing the nature of the material and information flow throughout the company‟s entire supply chain. Taking the value stream viewpoint means working on the big picture and not individual processes. VSM creates a common basis for the production process, thus facilitating more thoughtful decisions to improve the value stream [14]. On the other hand VSM is a pencil and paper visualization tool that shows the flow of material and information as a product makes its way through the stream [15]. Jones and Womack (2002) define the VSM as the process of visually mapping the flow of information and material as they are and preparing a future state map with better methods and performance. It helps to visualize the station cycle times, inventory at each stage (WIP), manpower and information flow across the supply chain. VSM enables a company to “see” the entire process in both its current and desired future state, which develop the road map that priorities the projects or tasks to bridge the gap between the current state and future (lean) state [1]. In VSM the first step is to choose a particular product or product family as the target for improvement. The next step is to draw a current state map that is essentially a snapshot capturing how things are currently being done. This is accomplished while walking along the actual process, and provides one with a basis for analyzing the system and identifying its weaknesses. The third step in VSM is to create the future state map, which is a picture of how the system should look after the inefficiencies in that have been removed. Creating a future state map is done by answering a set of questions on issues related to efficiency, and on technical implementation related to use lean tools. This map then becomes the basis for making the necessary changes to the system [5], [12]. 3. Research Methodology 3.1. Profile of Organization A case study was carried out to see the implementation VSM in apparel company. The company is producing outerwear in Istanbul since 1995 and employs 150 workers. th 6 INTERNATIONAL TEXTILE, CLOTHING & DESIGN CONFERENCE - Magic World of Textiles th th October 07 to 10 2012, DUBROVNIK, CROATIA 3.2. Methodology VSM is a part of lean manufacturing and transformation system. The steps of VSM application is shown at the Figure 1. As shown Figure 1, the first step is selection of the most important product family. The next step is to draw current state map. In the current state map the main problem areas, value-added and non-value added operations were identified. And while drawing the current state map, for the future state a vision should be improved. The next step is to draw future state map. Rother and Shook Shook (1999) developed a guide for developing a future state to analyze current state. The brief steps are: Calculation of Takt time, using continuous flow wherever possible, using of supermarkets to control the production, create an initial pull and process improvements for continuous improvements, and the production schedule should be as closely as possible to the demand. The last step is to make business plan for application and after application evaluation of results (lead time reduction, inventory reduction, productivity, etc.). Selection of Product Family Current Value Stream Mapping Future State Map Business Plan, Application Figure 1: VSM implementation steps 4. Practice Studies 4.1. Selection of Product Family As it mentioned, the first step of VSM is selection of product family. The company was producing different outerwear for different companies. Woolen fabric outerwear are the most important products for the company and Model X is the most produced product, due to this; this group of products was selected to draw VSM. 4.2. Drawing Current State Value Stream Map After selecting the product family the next step was drawing current state map. Figure 2 shows the current state value stream map of production. As seen in Figure 2, VA (Value Added) time is 8873 seconds and production lead time is 19,9 days. The firm works 9 hours a day and available time is found to be 9X60X60=32400 seconds. Takt time is calculated by proportioning with daily demand and daily demand is 200 pieces/day, so takt time is 9X60X60/200=162 seconds. When we analyzed company‟s fabric and accessories supply times the results are: It takes 6-8 weeks to get a fabric after ordering. For accessories the supply periods are a bit shorter than fabric but especially the zipper takes long periods. For the accessories supply times averagely 3-4 weeks. After production the delivery of the products to the customer takes 2-3 weeks. And the distribution of the products from the customer to the store takes 2-3 weeks. As a result 13-17 weeks takes for a product to produce and put it to the store. th 6 INTERNATIONAL TEXTILE, CLOTHING & DESIGN CONFERENCE - Magic World of Textiles th th October 07 to 10 2012, DUBROVNIK, CROATIA This was the production to store period, in addition to this; when we analyzed the sample production process, it was taking 14-16 weeks for a collection. The total production lead time was 27-33 weeks for the company at the current state. Current State Value Stream Map Customer Demand – 200 pieces/day Planning Order Fabric Supply Accessories Supply -1 Accessories Supply Purchasing Order CAD Delivery 6-8 Week Sales & Marketing Customer Production Team Delivery 3-4 Week Delivery per Week RM Warehouse No. Of Operators 3 Fabric Testing and Trimming Cutting Preparation No. Of Operators 4 CT= 564 sec. C/O= 30 sec. AT= 32400 No. Of Operators 29 CT= 4355 sec. C/O= 100 sec. AT= 32400 1 day 564 sec. Assembly Ironing & QC Warehouse No. Of Operators 17 CT= 2724 sec. C/O= 30 sec. AT= 32400 No. Of Operators 9 CT= 1230 sec. C/O = 0 AT= 32400 No. Of Operators 4 Contains finished products and logistics I I I I 1100 pieces 1250 pieces 780 pieces 640 pieces 5,5 days 6,25 days 4355 sec. Value added time: 8873 sec. Production Lead Time: 19,9 days 3,9 days 2724 sec. 3,2 days 1230 sec. Takt time: 162 sec. Figure 2: Current State Value Stream Map of Production 4.3. Drawing Future State Value Stream Map Based on the gap areas with the help of current state value stream map, some changes were proposed and implemented in the process. The biggest problem was the production stock inventory. It was causing long lead times and quality problems. It has been found that inventory level between cutting-preparation, preparation-assembly, assembly-ironing and ironing-warehouse was higher. It was reduced between cutting-preparation, preparation-assembly by supermarket system and was reduced between assemblyironing, ironing-warehouse by one-piece flow tool. Supermarkets were a good way to manage to inventory level. As seen in Figure 3, VA (Value Added) time is 8873 seconds and production lead time is 3,01 days after reducing inventory. The daily demand increased from 200 pieces/day to 210 pieces/day. Takt time is 154,2 seconds. By decreasing the stock level, right the first time rate was increased to 90%. In addition to this get a much more flexible production line and ship different models at the same time, lines were planned to separate into two lines for the future state. It is mentioned about the production area for future state at below. When we look at the total production lead time, one of the other biggest problem areas was fabric, accessories suppliers and shipping period‟s. It is causing because of the supplier‟s count and it was not too much. To reduce the supplier‟s lead times to 3-5 weeks the company planned to look for new suppliers. For the sample production and collection part, the design process was planned to reorganize. There was no plan for season collection preparing and it was causing to get longer the collection preparing lead-time. For this aim; a design timetable planned to make and collection part‟s lead-time was planned 6-9 weeks for future state. As a result the total lead time was planned 9-14 weeks for the future state. th 6 INTERNATIONAL TEXTILE, CLOTHING & DESIGN CONFERENCE - Magic World of Textiles th th October 07 to 10 2012, DUBROVNIK, CROATIA Current State Value Stream Map Customer Demand – 210 pieces/day Fabric Supply Delivery 3-5 Week Accessories Supply Production Planning & Logistics Order Kaizen Accessories Supply -1 Sales & Marketing CAD Customer Production Team Delivery 1-2 Week Delivery 1 Week Delivery per Week Super market for inventory reduction RM Warehouse No. Of Operators 3 Fabric Testing and Trimming Super market for inventory reduction Cutting Preparation No. Of Operators 4 CT= 564 sec. C/O= 30 sec. AT= 32400 No. Of Operators 29 CT= 4355 sec. C/O= 100 sec. AT= 32400 I 5S Ironing & QC Warehouse No. Of Operators 9 CT= 1230 sec. C/O = 0 AT= 32400 No. Of Operators 4 Contains finished products and logistics One-Piece Flow 1 days 1,42 days 564 sec. I Assembly No. Of Operators 17 CT= 2724 sec. C/O= 30 sec. AT= 32400 210 pieces 300 pieces 0,5 days Line Balancing and Layout Change 4355 sec. Value added time: 8873 sec. Production Lead Time: 3,01 days I I 20 pieces 0 pieces 0,09 days 2724 sec. 0 days 1230 sec. Takt time: 154,2 sec. Figure 3: Future State Value Stream Map of Production 5. Results and Conclusion Value stream mapping is an effective tool for implementing lean systems in industry and a very powerful tool to visual illustration of the entire value stream-customer order, production, and shipping. This study has outlined a case study in apparel industry. In this study an outerwear company was analyzed. Current state map and future state map were prepared and analyzed to highlight the benefits of lean system in Apparel Company. At the current state there was a huge waste in terms of high lead time, work in process inventory at the company. After this step, future state map was drawn. In the future state map there is a 84,8 % reduction in production lead time and 16-20 weeks reduction in total lead-time. Work in process inventory has drastically reduced at every stage of production process. As a result we can say that VSM is an ideal tool to reveal the wastes in value stream and identify problem areas. For the future study: It is possible to search lean production application for apparel companies with simulation. References [1] Grewal, C.: An initiative to implement lean manufacturing using value stream mapping in a small company, International J. Manufacturing Technology and Management, Vol.15, No.3/4, (2008), 404417. [2] Seth, D.; Gupta, V.: Application of value stream mapping for lean operations and cycle time reduction: an Indian case study, Production Panning & Control, Vol.16, No.1, (2005), 44-59. [3] Womack, J., & Jones, D.: Lean Thinking: Banish Waste and Create Wealth in Your Corporation, The Free Press, New York, NY, (1996) [4] Hancock, V., & Matthew, J.: Lean Production: Implementation Problems, IIE Solutions, 1998 [5] Rother, M.; Shook, J.: Learning to See: Value Stream Mapping to Add Value and Eliminate Muda, Lean Enterprise Institute, Brookline, M.A., (1999) [6] McDonald, T., Van Aken, E., & Butler, R.: Integration of simulation and value stream mapping in transformation to lean production, IIE Annual Conference, (2000) th 6 INTERNATIONAL TEXTILE, CLOTHING & DESIGN CONFERENCE - Magic World of Textiles th th October 07 to 10 2012, DUBROVNIK, CROATIA [7] Lian, Y. L.: An application of Simulation and value stream mapping in lean manufacturing, Proceedings of 14th European Simulation Symposium, (2002) [8] Hines, P.; Rich, N.: The seven value stream mapping tools, International Journal of Operations & Production Management, Vol.17, No.1, (1997), 46-64 [9] Monden, Y.: Toyota Production System: An Integrated Approach to Just in Time, Industrial Engineering and Management Press, 2nd Ed, Norcross, MA, (1993) [10] Felt, W.: Lean Manufacturing: Tools, Techniques and How to Use Them. CRC Press, 1998 [11] Russel, R.; Taylor, B.: Operations Management, 2nd Edition. Prentice Hall: Upper Saddle River, NJ., (1999) [12] Abdulmalek, F.; Rajgopal, J.: Analyzing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study, International Journal of Production Economics 107, (2007), 223-236. [13] Dal, V.; TURGUT, S.: Hazır giyim sanayinde değer zinciri analizi, ISO, (2010) [14] McDonald, T.; Elkins, D.; Smith, D.: Utilizing simulation to enhance value stream mapping: A manufacturing case application, International Journal of Logistics: Research and Applications 5 (2), (2002), 213-232. [15] Gurumurthy, A.; Kodali, R.: Design of lean manufacturing systems using value stream mapping with simulation, Journal of Manufacturing Technology Management, Vol.22, No.4, (2011), 444-473. Address of corresponding author: Engin AKÇAGÜN, Ph. D. Mimar Sinan Fine Arts University, Apparel Production Technology Program Bomonti Campus, Cumhuriyet Street, 34380, İstanbul, TURKEY Phone:+90 (212) 240 88 47 - 5675 Fax: +90 (212) 2408847 – 5671 E-Mail: engin.akcagun@msgsu.edu.tr Abdurrahim YILMAZ, Research Assistant. Mimar Sinan Fine Arts University, Apparel Production Technology Program Bomonti Campus, Cumhuriyet Street, 34380, İstanbul, TURKEY Phone:+90 (212) 240 88 47 – 5668 Fax: +90 (212) 2408847 – 5671 E-Mail: abdurrahim@msgsu.edu.tr Vedat DAL, Assoc. Prof. Marmara University, Faculty of Technology, Textile Engineering Department Göztepe Campus34722, Kadıköy, İstanbul, TURKEY Phone:+90 (216) 336-5770 – 664 Fax: +90 (216) 3378987 E-Mail: vedat@marmara.edu.tr View publication stats