Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

4.3.3 Detailed Analysis and Time Study of Processes: Basic Process Analysis and Value-Stream Mapping

Intended learning outcomes: Explain an example of a basic process analysis. Describe value-stream mapping.

A time study is a representation of the exact temporal sequence of the operations of a process.

Time study can be required in order to identify improvement or optimization potentials. Time study is one of the typical tasks of an industrial engineer. Actual stopwatch timing is often used to establish standard hours, or standard times. These are also often needed for capacity planning (also see here Chapter 13).

A suitable technique of detailed process analysis documents the results of a time study. The same technique can be used for the documentation of the process improvement.

A basic process analysis is a detailed analysis of the process plan on-site that, operation by operation, explains the exact percentages of the total lead time.

Figure shows an example of a basic process analysis. Its form has been chosen similar to [Shin89], and it thus belongs to the Toyota Production System.

Fig.        Example of a basic process analysis.

For purposes of illustration, we show only the most important columns. By this tool, the information from the more general tools can also be verified on-site. In a practical sense, this means that you must physically follow the course of the data flow and flow of goods of an order. At the same time, the people processing the order can give information on the flow. By gathering and comparing all this information, you also gain insight into the degree to which employees have mastered the process.

The “basic process analysis” technique was further developed, mainly in the USA, to what is known today as “value stream mapping.”

The value stream encompasses the processes of creating, producing, and delivering a good or service to the market. It may be controlled by a single business or a network of several businesses ([APIC16]).

Value stream mapping is a paper and pencil tool that helps you to see and understand the flow of material and information as a product or service through all of the value-adding and non-value-adding process steps.

Figure shows an example of a value stream map of a mortgage deal with normal priority together with the value-added rate of the lead time of this process.

Fig.        Value-stream mapping.

  • The value-adding activities are the procure­ment of all relevant data, analysis in the front office, and analysis in the back office required for larger business, followed by release and, finally, processing in the front office (that is, preparation of all documents and forms).
  • The non-value-adding activities are shown together with their duration on the upper part of the typical process time line. They will be given special attention — as indicated by the triangular symbols. As with basic process analysis, the objective is to identify avoidable non-value-adding activities and thus to identify “waste.”

Course section 4.3: Subsections and their intended learning outcomes