Supply chain value stream mapping: a new tool of operation management

2016 ◽  
Vol 33 (4) ◽  
pp. 518-534 ◽  
Author(s):  
Manuel F. Suarez-Barraza ◽  
José-Á Miguel-Davila ◽  
C. Fabiola Vasquez-García

Purpose – The issue of the supply chain has been given much attention in recent decades, both in the academic arena as well as in the business world. It has become so important that organizations have begun to directly manage the supply chain, appointing specific managers to perform this function. New challenges now include a focus on supply to determine the right time and place for product delivery. Some authors indicate a close relationship between Total Quality Management and the supply chain regarding its philosophical and operational goals and perspectives. Lee (2004) goes even further by indicating that only organizations that devise agile, adaptable and aligned supply chains will be able to continue competing in today’s environment. Therefore, observing and measuring the supply chain at all times is critical for today’s organizations. The purpose of this paper is to describe the implementation of a tool called Supply Chain Value Stream Mapping (SCVSM) in order to thoroughly understand competitive priorities of volume and delivery (On-time Delivery (OTD)) for any supply chain in organizations. Design/methodology/approach – An exploratory case study was conducted. Two manufacturing company which have been established in Mexico with a robust supply chain for at least 20 years, were selected. The paper chronicles the implementation of SCVSM in both case studies. Three methods were used to gather data: direct observation; documentary analysis and semi-structured interviews. Findings – This paper proposes a new tool for operation management called SCVSM. Its development, refinement and applied in both case studies. The evidence shows that it is possible to apply the tool (SCVSM) to visualize the variables volume and OTD in supply chains. In consequence, this research has made a small empirical contribution to the theoretical field of supply chain quality management. Research limitations/implications – This paper has the same limitations as all other case-study-based research, including analysis subjectivity and questionable generalization of findings. There may well also be a theoretical gap in the geographic region because the paper only analyzes two companies established in Mexico. Practical implications – Derived to describe both case studies on how to apply the SCVSM tool it may prove to be of value to practitioners and managers involved in the field. Similarly, a section on managerial implications has also been included. Originality/value – The study contributes to the limited existing literature on the Supply Chain Quality Management and subsequently disseminates this information in order to provide impetus, guidance and support toward increasing the development companies in an attempt to move the Mexico manufacturing sector toward world class manufacturing performance.

Author(s):  
Antonina Tsvetkova ◽  
Britta Gammelgaard

PurposeThe purpose of this paper is to explore how supply chain strategies emerge and evolve in response to contextual influence.Design/methodology/approachA qualitative single-case study presents the journey of a supply chain strategy, conceptualised as the idea of transport independence in the Russian Arctic context. Data from 18 semi-structured interviews, personal observations and archival materials are interpreted through the institutional concepts of translation and editing effects.FindingsThe study reveals how supply chain strategies evolve over time and can affect institutional factors. The case study further reveals how contextual conditions make a company reconsider its core competencies as well as the role of supply chain management practices. The findings show that strategy implementation through purposeful actions can represent a powerful resistance to contextual pressures and constraints, as well as being a facilitator of change in actual supply chains and their context. During the translation of the idea of transport independence into actions, the supply chain strategy transformed itself into a form of strategic collaboration and thereby made supply chains in the Russian Arctic more integrated than before.Research limitations/implicationsMore empirical studies on strategy implementation in interaction with contextual and institutional factors are suggested. An institutional process perspective is applied in this study but the authors suggest that future research should include a human dimension by an exploration of day-to-day routines and challenges that employees face when strategising and the actions they take.Originality/valueThe study provides an understanding of how a new supply chain strategy emerges and how it changes during implementation. In this process-oriented study – merging context, process and strategy content – it is further shown that a supply chain strategy may affect the context by responding to contextual and institutional challenges.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings COVID-19 has had a dramatic and damaging effect on supply chains and distributors. This briefing considers why, and what strategies there may be to cope. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohita Gangwar Sharma

PurposeMany commodity supply chains suffer from an unfair value distribution across the supply chain like “Coffee Paradox.” This study explores the coffee supply chain to determine how the country of origin–geographical indicator can be used as a method of fair distribution of value and provenance across the supply chain effectuated by the blockchain technology. By looking at an exemplar case study for India, this study provides insights into diverse research streams and practice.Design/methodology/approachBased on the case method, analyzing the implementation of blockchain in the coffee industry by a leading Indian software implementation of the logic, dynamics and forces for a provenance model has been devised. It further adopts a stakeholder cum institutional theory framework to understand the logical implementation of a blockchain project embedded in a territorial logic for a commodity supply chain.FindingsThis study specifically looks at coffee which is representative of a commodity supply chain. It also explores how the malaise of unfair value distribution gets addressed by bringing farmers and the consumers on a common platform facilitated by blockchain technology. This study contributes to the literature on blockchain, territory, commodity and supply chain. Using stakeholder cum institutional theory, this study helps to explore how the implementation is successful by different actors in the supply chain through collaboration.Research limitations/implicationsThis study provides a new stream of multi-disciplinary study at the interface of supply chain, technology, international trade and geography.Practical implicationsBlockchains are embedded in the supply chain, and supply chains are embedded in territories. This linkage is paramount and the ability to make these blockchain projects successful requires the deep study of the interaction of territory, technology and actors from the provenance angle. De-commodification of coffee can be actualized through blockchain.Social implicationsThe coffee paradox and skewed value distribution is also a social problem wherein the farmers do not get the right price of their produce and are exploited. This case also highlights how this social malaise can be addressed and rightful and equitable distribution of value happens across the value chain.Originality/valueThis linkage between territory, blockchain, commodity supply chain and institutions has not been discussed in the literature. Adopting the territorial design approach, this study is an attempt to stimulate inter-disciplinary conversations and thereby create a provenance framework for commodity and research questions for scholars from different disciplines and divergent disciplinary perspectives.


2019 ◽  
Vol 11 (3) ◽  
pp. 493-514 ◽  
Author(s):  
Aatish Kumar Mishra ◽  
Ayush Sharma ◽  
Moraldeepsingh Sachdeo ◽  
Jayakrishna K.

Purpose The main purpose of this paper is to analyze the current state of a bonnet-manufacturing industry and to optimize the process by designing a future state map using simulation approach. Design/methodology/approach The case study approach has been proposed to highlight the applicability of value stream mapping (VSM) in an Indian bonnet manufacturing organization. The methodology used relies on formulation of VSM being the main tool used to identify the opportunities for classifying and eliminating bottlenecks with the help of various lean techniques. A contrast of present and past scenarios is highlighted to underscore the importance of using VSM with ARENA simulation. Findings Application of the proposed simulation approach has helped the organization reduce the cycle time significantly by 30 per cent over the entire production time. The average number of work-in-progress pieces has also decreased by about ten. In addition, enhancements have been seen with respect to ecological parameters, e.g. carbon footprint has been reduced to 83.7 percent across the process. Research limitations/implications The proposed approach of using a simulation-based VSM helps in reducing the time involved in traditional VSM method. This approach is also easy to implement at any organizational level. Practical implications It is believed that this paper will aid not just industrialists but also academic professionals to appreciate the role of simulation using ARENA in helping them understand how to attack the various problems faced by industries. The results of the study indicate that by applying this methodology, there will be a reduction not only in cost but also in environmental impacts. Originality/value The paper incorporates a real case study, which shows application of VSM for implementing lean principles in a bonnet-manufacturing industry. Break-even analysis presented fills the gap which previous literatures have been missing.


2019 ◽  
Vol 25 (5) ◽  
pp. 1145-1163 ◽  
Author(s):  
Per Engelseth ◽  
Judith Molka-Danielsen ◽  
Brian E. White

Purpose The purpose of this paper is to question the applicability of recent industry-derived terms such as “Big Data” (BD) and the “Internet of things” (IoT) in a supply chain managerial context. Is this labeling useful in managing the operations found in supply chains? Design/methodology/approach BD and IoT are critically discussed in the context of a complete supply chain organization. A case study of banana supply from Costa Rica to Norway is provided to empirically ground this research. Thompson’s contingency theory, Alderson’s functionalistic end-to-end “marketing channels” model, Penrose’s view of supply purpose associated with service provision, and particularities of banana supply reveal how end-to-end supply chains are complex systems, even though the product distributed is fairly simple. Findings Results indicate that the usefulness of BD in supply chain management discourse is limited. Instead its connectivity is facilitated by what is now becoming commonly labeled as IoT, people, devices and documents that are useful when taking an end-to-end supply chain perspective. Connectivity is critical to efficient contemporary supply chain management. Originality/value BD and IoT have emerged as a part of contemporary supply chain management discourse. This study directs attention to the importance of scrutinizing emergent and actual discourse in managing supply chains, that it is not irrelevant which words are applied, e.g., in research on information-enabled supply process development. Often the old words of professional terminology may be sufficient or even better to help manage supply.


2020 ◽  
Vol 40 (10) ◽  
pp. 1649-1660 ◽  
Author(s):  
Robert B. Handfield ◽  
Gary Graham ◽  
Laird Burns

PurposeUsing the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are developing, the authors report interview findings with two senior VPs from two multi-national corporations being disrupted by COVID-19. This study suggests how this and recent events will impact on the design of future global supply chains.Design/methodology/approachThe authors apply the constructal law to explain the recent disruptions to the global supply chain orthodoxy. Two interviews are presented from case studies the authors are developing in the USA and UK – one a multi-national automobile parts supplier and the other is a earth-moving equipment manufacture. Specifically, this is an exploratory pathway work trying to make sense of the COVID-19 pandemic and its impact on supply chain scholarship.FindingsAdopting the approach of Bejan, the authors believe that what is happening today with COVID-19 and other trade disruptions such as Brexit and the USA imposing tariffs is creating new obstacles that will redirect the future flow of supply chains.Research limitations/implicationsIt is clear that the COVID-19 response introduced a bullwhip effect in the manufacturing sector on a scale never-before seen. For scholars, the authors would suggest there are four pathway topics going forward. These topics include: the future state of global sourcing, the unique nature of a combined “demand” and “supply shortage” bullwhip effect, the resurrection of lean and local production systems and the development of risk-recovery contingency strategies to deal with pandemics.Practical implicationsSupply chain managers tend to be iterative and focused on making small and subtle changes to their current system and way of thinking, very often seeking to optimize cost or negotiate better contracts with suppliers. In the current environment, however, such activities have proved to be of little consequence compared to the massive forces of economic disruption of the past three years. Organizations that have more tightly compressed supply chains are enjoying a significant benefit during the COVID-19 crisis and are no longer being held hostage to governments of another country.Social implicationsAn implicit assumption in the press is that COVID-19 caught everyone by surprise, and that executives foolishly ignored the risks of outsourcing to China and are now paying the price. However, noted scholars and epidemiologists have been warning of the threats of pandemics since the severe acute respiratory syndrome (SARS) virus. The pundits would further posit that in their pursuit of low-cost production, global corporations made naive assumptions that nothing could disrupt them. Both the firms the authors have interviewed had to close plants to protect their workforce. It was indicated in the cases the authors are developing that it is going to take manufacturers on average one month to recover from 4–6 days of disruption. These companies employ many thousands of people, and direct and ancillary workers are now temporarily laid off and face an uncertain future as/when they will recover back to normal production.Originality/valueUsing the constructal law of physics, the authors seek to provide guidance to future scholarship on global supply chain management. Further, through two case studies, the authors provide the first insight from two senior VPs from two leading multi-national corporations in their respective sectors being disrupted by COVID-19. This study is the first indication to how this and recent disruptive events will impact on the design of future global supply chains. Unlike the generic work, which has recently appeared in HBR and Forbes, it is grounded in real operational insight.


2020 ◽  
Vol 32 (5) ◽  
pp. 923-938 ◽  
Author(s):  
Uta Juettner ◽  
Katharina Windler ◽  
André Podleisek ◽  
Maya Gander ◽  
Sandrina Meldau

PurposeIn a time where stakeholders increasingly demand social, environmental, and economic sustainability, mismanaging suppliers can impose substantial sustainability risks for a company and harm its reputation and business severely. This research explores the implementation of a corporate sustainable supplier strategy designed to cope with such risks from an agency theory perspective.Design/methodology/approachA case study of a multinational enterprise, a provider of leading mobility solutions in the realm of escalators, moving walkways and elevators, is conducted. Data is collected from multiple sources of evidence, including strategy documents, a focus group and semi-structured interviews.FindingsThe study identifies several implementation challenges and coping mechanisms in firstly, the agency relationships between the headquarter and the regional subsidiary units and secondly, the relationships between the regional subsidiary units and their suppliers.Research limitations/implicationsA framework conceptualising the implementation of sustainable supplier strategies is proposed. The framework positions the topic at the interface between supply chain sustainability risk, supplier quality management as well as agency relationships and identifies avenues for further research. The key limitations refer to the single case study methodology and the exclusion of suppliers in the data collection approach.Practical implicationsThe proposed framework can support multinational enterprises in developing corporate sustainability strategies and in implementing them in the supplier network.Originality/valueThe originality of the framework lies in the integrated approach combining supply chain sustainability risk, supplier quality management and triadic agency relationships.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Abideen ◽  
Fazeeda Binti Mohamad

Purpose Lean implementation is vastly incorporated in core manufacturing processes; however, its applicability in the supply chain and service industry is still in its infancy. To acquire performance excellence and thrive in the global competitive market, many firms are adopting newer methodologies. But, there is a stringent need for production simulation systems to analyze supply chains both inbound and outbound. The era of face validation is slowly disappearing. Lean tools and procedures that provide future state assumptions need advanced tools and techniques to measure, quantify, analyze and validate them. The purpose of this study is to enable dynamic quantification and visualization of the future state of a warehouse supply chain value stream map using discrete event simulation (DES) technique. Design/methodology/approach This study aimed to apply an integrated approach of the value stream mapping (VSM) and DES in a Malaysian pharmaceutical production warehouse. The main focus is diverted towards reducing the warehouse supply chain lead time by initially constructing a supply chain value stream map (both present state and future state) and integrating its data in a DES modelling and simulation software to dynamically visualize the changes in future state value stream map. Findings The DES simulation was able to mimic the future state lead time reductions successfully, which assists in better decision-making. Improvements were seen related to total lead time, process time, value and non-value-added percentage. Warehouse performance metrics such as receiving, put away and storage rates were substantially improved along with pallet processing time, worker and forklift throughput usage percentage. Detailed findings are clearly stated at the end of this paper. Research limitations/implications This study is limited to the warehouse environment and further additional process models and functional upgrades in the DES software systems are very much needed to directly visualize and quantify all the possible Lean assumptions such as radio frequency image identification/Andon (Jidoka), 5S, Kanban, Just-In-Time and Heijunka. However, DES has a leading edge in extracting dynamic characteristics out of a static VSM timeline and capture details on discrete events precisely by picturizing facility modification and lead time related to it. Practical implications This paper includes all the fundamental pharmaceutical warehouse supply chain processes and the simulations of the future state VSM in a real-life context by successfully reducing supply chain lead time and allowing managers in inculcating near-optimal decision-making, controlling and coordinating warehouse supply chain activities as a whole. Social implications This integrated approach of DES and VSM can involve managers and top management to support the adoption of anticipated changes. This study also has the potential to engage practitioners, researchers and decision-makers in the warehouse industry. Originality/value This study involves a powerful DES software package that can mimic the real situation as a virtual simulation and all the data and model building are based on a real warehouse scenario in the pharmaceutical industry.


2016 ◽  
Vol 23 (6) ◽  
pp. 1398-1422 ◽  
Author(s):  
Luís Miguel D. F. Ferreira ◽  
Cristóvão Silva ◽  
Susana Garrido Azevedo

Purpose – Companies need to excel in many areas to achieve a competitive advantage. This, together with pressure imposed by regulators and customers regarding sustainability concerns, leads companies to address sustainability in an integrated fashion across all management processes. The purpose of this paper is to suggest a model for the assessment of the environmental performance of a supply chain, based on four perspectives used in the balanced scorecard. Performance indicators are proposed based on the literature, as well as on the ISO 14031 and GRI standards, and were validated by a panel of experts. Design/methodology/approach – Based on a literature review on models for environmental performance management a novel model to assess the environmental performance of the supply chains (Env_BSC_4_SCPM) is proposed. Data collected from the first tier suppliers of an automotive industry case study are used to test the proposed model. Findings – The model developed was tested in a case study company, showing it ability to benchmark the company first tiers suppliers and products. The model is also useful as a decision support tool to define actions to be taken in order to improve the global environment performance of the supply chain. Research limitations/implications – The proposed model was developed to evaluate the environmental performance of supply chains. Nevertheless, the case study only takes account of the first tier suppliers, due to difficulties associated to data collecting for the other elements in the supply chain. Widening the frontiers, the next phase may include the application of this model to second, third and lower tier suppliers, as well as the final customer. Improvements in the model could also include the construction of a composite index to measure the environmental supply chain performance. Practical implications – The paper provides a model that can be used by practitioners to evaluate the environmental performance of their supply chain and to decide on actions to be taken to improve it. Originality/value – As stated by several authors, there has been limited research conducted in the field of environmental evaluation of supply chains. This paper proposes a novel model for the environmental performance of the supply chain and tests it using industrial empirical data.


2015 ◽  
Vol 26 (1) ◽  
pp. 42-60 ◽  
Author(s):  
Ville Hinkka ◽  
Maiju Häkkinen ◽  
Jan Holmström ◽  
Kary Främling

Purpose – The purpose of this paper is to propose a typology of radio frequency identification (RFID)-based tracking solution designs to fit differing fashion supply chains. The typology is presented as principles of form and function contributing toward a design theory of configurable RFID tracking for fashion logistics. Design/methodology/approach – The typology is developed based on a case study of a logistics service provider (LSP) interested in designing a tracking solution for different customers in fashion logistics. In addition to the LSP, four fashion retailers were involved in the study. The case study was carried out using a review of existing RFID tracking implementations in the fashion industry, analysis of an RFID tracking pilot conducted by the case company, and interviews with representatives of the retailers. Findings – By varying three design parameters (place of tagging, place of tracking start and place of tracking end) a tracking solution can be configured to fit the requirements and constraints of different fashion supply chains. In the fashion logistics context under investigation, such parameterization addresses retailer requirements, brings concrete and quantifiable benefits to both LSP and its customers, and enables incremental adoption of RFID tracking. Research limitations/implications – Although the typology is developed in the specific setting of a case company developing RFID tracking solutions for fashion logistics, the design parameters identified in the study can be used when considering configurable tracking solutions also in other domains and settings. However, further research is needed to evaluate the proposed typology in those settings. Practical implications – The proposed typology enables fashion companies to consider which configuration of RFID tracking best fits the requirements and constraints imposed by their particular supply chain. For fashion companies, who find adoption of RFID tracking difficult despite the obvious benefits, the proposed typology enables incremental implementation of supply chain-wide tracking. Originality/value – The developed typology, describing how RFID-based tracking solutions can be adjusted to fit the needs of fashion companies with differing supply chains and requirements, is novel. The typology is generalizable to most fashion logistics settings and probably to numerous other logistics domains.


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