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Supply Chain/Value Stream Map

In the context of the theory of constraints, John and Richard at HMC have determined that the subassembly area within its plant is the bottleneck or constraint that is affecting its ability to deliver the quantities being ordered by the customer. The subassembly area process requires 24 hours to supply the parts. Depending on the mix of products scheduled to be built in the main assembly area, if the required parts are not available from the suppliers or molding department, production interruptions begin to occur in as little as 18 hours. Create a value stream map of the process and submit it with a report (900 words) with suggestions for removing the constraint.

The following are the process steps for the subassembly area:

1.Orders from main assembly area are received at 8:00 a.m.
2.Subassembly supervisors translate orders into a subassembly area schedule (2 hours).
3.After creating the schedule, components are ordered from the warehouse. It usually takes 2 hours to send the faxes and e-mails. The components arrive at the subassembly area 4 hours after the order is placed.
4.After receiving the order from the warehouse, the on-hand components are shipped to the subassembly area (4 hours), any shortages are noted, and any missing parts from the order are expedited from the appropriate supplier and usually arrive within 12 hours.
5.After ordering parts from the warehouse, the supervisor orders the molded parts required from the molding department. It takes the molding department 4 hours to put the correct tools in the machines and then 8 hours to produce the required parts and move them to the subassembly area.
6.After receiving and verifying all of the required molded parts and supplier components, the subassembly process begins (2 hours). Completed subassemblies are then sent to the main assembly area within 4 hours.

Solution Preview

See attachment for value stream map.

Supply chain or value stream mapping provides networks with the means to design interrelated processes in order to satisfy end-customer needs. There are various commercial and practical reasons to establish supply chains in organizations. The problem in the supply chain process is due to the handoffs between processes, disciplines and organizations that may cause waste in the system. Elimination of this waste leads to an effective supply chain management. The paper will focus on the creation of value stream map for a company to remove the constraint that is affecting its abilities.

It is a case of HMC where John and Richard have determined various constraints in its subassembly area. It is determined that subassembly area within the plant is the bottleneck, and that it is responsible for affecting the ability of the company in terms of quantities that are being ordered by the customers. As per the estimation, subassembly area requires 24 hours to supply quantities from one part to another. On the basis of scheduled product mix for the main assembly area, it is assumed that required parts are not available from the suppliers, molding department and production department.

According to the steps involved in the process of supply chain, it should be 24 hours. Realistically various interruptions begin to occur in 18 hours. As per the value stream map, the process begin at 8: 00 am and then supervisors take 2 hours to translate it into the schedule required by subassembly area. After creating this schedule, 2 hours are required to send ...

Solution Summary

The supply chain and value stream map are examined. The subassemblies which are sent to the main assembly area within four hours are given.