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VSM A CASE SUTDY AT APPAREL INDUSTRY

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USING VALUE STREAM MAPPING AT APPAREL INDUSTRY: A CASE STUDY
Conference Paper · October 2012
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6 INTERNATIONAL TEXTILE, CLOTHING & DESIGN CONFERENCE - Magic World of Textiles
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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].
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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.
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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.
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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.
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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
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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:
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Free Press, New York, NY, (1996)
[4] Hancock, V., & Matthew, J.: Lean Production: Implementation Problems, IIE Solutions, 1998
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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)
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October 07 to 10 2012, DUBROVNIK, CROATIA
[7] Lian, Y. L.: An application of Simulation and value stream mapping in lean manufacturing,
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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
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