scholarly journals Application of Value Stream Mapping in E-Commerce: A Case Study on an Amazon Retailer

2022 ◽  
Vol 14 (2) ◽  
pp. 713
Author(s):  
Yanfang Qin ◽  
Hongrui Liu

In recent years, the e-commerce market has grown significantly, and the online retail market has become very competitive. Online retailers strive to improve their supply chain operations to reduce costs and to improve customer satisfaction. Value stream mapping (VSM), a tool created by the lean production movement to identify and reduce errors, losses, and lead time and to improve value-added activities, has been proven to be effective in many manufacturing processes. In this study, we investigate the application of value stream mapping (VSM) in the supply chain of an e-commerce retailer on Amazon. By visualizing the entire supply chain with VSM, the waste that is produced during the delivery process from the retailer to the customer was identified. The five whys method was then applied to find the root cause of the waste. Furthermore, a scoring method was developed to evaluate and compare two different supply chain logistic models to identify a strategy for improvement. This study provides a systematic methodology to understand, evaluate, and improve the entire e-commerce supply chain process utilizing VSM. It was demonstrated that the methodology could improve supply chain management efficiency, customer satisfaction, and cost reduction.

Author(s):  
Gökçe Çiçek Ceyhun

Distribution consists of moving and storing a product from the supplier to customer during the supply chain process. Distribution process is crucial decision of a company due to its effects on supply chain cost and customer satisfaction. In the competitive environment of the business, all companies aim to minimize delivery costs and maximize customer satisfaction by applying optimum distribution network design. The design of effective distribution network requires critical decisions as the location and the capacity of distribution centers together with logistic activities, which consist of transportation and inventory process. The purpose of this research is to define a deep literature review regarding definition of distribution network, distribution channels, selection of distribution, and the factors affecting distribution network design. After reviewing a comprehensive literature on distribution network design, this chapter includes suggestions.


Author(s):  
Alok K. Verma ◽  
Harsh Hirkannawar ◽  
Jyotsna Devulapalli

Lean Manufacturing is a powerful philosophy, which advocates minimization of waste throughout the value stream both within the organization and enterprise which includes the supply chain. A concept, which was first used by automobile manufacturers to enhance their operational efficiencies, Lean focuses on driving out non-value added activities from a company’s operation, while streamlining its value added activities. A number of companies in the United States have adopted the Lean Manufacturing philosophy to reduce cost and increase efficiency. To augment the existing training programs five new simulation tools in Ship Design Processes, Supply Chain Integration, Ship Repair Processes, Value Stream Mapping and Scheduling were developed under a grant from National Shipbuilding Research Program (NSRP) by Old Dominion University, Northrop Grumman Newport News and South Tidewater Association of Ship Repairers. The paper will discuss the design, development and implementation of two of these new simulation tools.


2013 ◽  
Vol 844 ◽  
pp. 450-453 ◽  
Author(s):  
Jaruwan Promngurn ◽  
Nikorn Sirivongpaisal ◽  
Sakesun Suthummanon ◽  
Wanatchapong Kongkaew ◽  
Pallapat Penchamrat

Application of a lean concept to supply chain management for the block rubber industry is presented. It seeks to reduce the total systemwide cost by reducing wastes throughout the supply chain. Value stream mapping is used to identify non value added activities in the chain. Four major stakeholders are included: rubber grower, minor collector, major collector, and manufacturer. Four study steps are involved: 1) collection of data for a supply chain model constructed; 2) creation of a value stream map and identification of non value added activities; 3) analysis of root causes of non value added activities, or wastes, identified in the first two steps; and 4) proposal of practical guidelines to reduce or eliminate the wastes. Results show that transportation contributes the second highest cost after personnel cost, but is more practical to be trimmed. Hub-spoke concept along with vehicle routing analysis is recommended to be further explored in depth for practical implementation.


2017 ◽  
Vol 7 (2) ◽  
Author(s):  
Iveline Anne Marie ◽  
Dedy Sugiarto ◽  
Dara Mustika

There were wastes in the supply chain flow of PT. XYZ which leads to long lead time in the delivery of customer orders. The result is that the company's planned delivery targets are not fulfilled. The objective of this research is to identify waste and cause of waste and to propose improvement to eliminate waste in PT XYZ supply chain so as to reduce lead time and achieve delivery target as an effort to improve company performance with Lean Supply Chain approach. In this research we use VALSAT to minimize waste and non value added activities in supply chain flow. Based on Value Stream Mapping and analysis of waste we proposed improvements that is application of acceptance sampling method on raw material inspection, application of p control chart on assembling process and store warehouse, 2 days battery storage time limit with kanban card proposed and also change of process sequence of lead part casting. Based on the projection, we got the decrease of manufacturing lead time and the increase of process cycle efficiency from 51.47% to 73.69%.


Author(s):  
Ahmad Shalihin ◽  
Juliza Hidayati ◽  
Khairunnisa

Di dalam dunia persaingan global persaingan antar kompetitor semakin ketat sehingga dalam faktanya bisnis usaha yang dijalankan perlu terus untuk dikembangkan dan dilakukan perbaikan sehingga perusahaan mampu tumbuh dan bersaing. Sebuah perusahaan yang bergerak di bidang sertifikasi halal mempunyai beberapa kriteria usaha yang disertifikasi meliputi industri pengolahan, restaurant dan rumah potong hewan. Fokus utama objek yang diteliti adalah industri pengolahan. Berdasarkan data historis sertifikasi halal selama 2 periode mengalami kenaikan secara terus menerus sehingga proses pelayanan dan penanganan dalam sertifikasi halal menjadi bertumpuk dan menjadikan aliran informasi dan aliran dokumen pada supply chain menjadi panjang dikarenakan sistem baru yang digunakan merupakan sistem sertifikasi secara online yang belum lama di adopsi. Proses sertifikasi halal memakan waktu sehingga kualitas pelayanan pada aliran informasi dan dokumen tidak maksimal dan berbedabeda, aliran informasi dan aliran dokumen yang tidak efisien waktu yang pada akhirnya membuat lead time proses sertifikasi menjadi panjang dan tidak efektif. Analisis menggunakan value stream mapping (VSM). Hasil yang dicapai berupa (1)big picture mapping current state map dan future state map, (2) mengetahui value added dan non value added pada proses aliran supply chain sertifikasi halal, (3) membuat skala prioritas terhadap 7 waste untuk meminimalisir pemborosan diproses sertifikasi, kemudian jenis pemborosan yang paling sering terjadi pada jenis pembororsan waiting (28%) dan proporsi waktu aktifitas value added (VA) sebesar (54%) dengan non value added (NVA) sebesar (46%). Setelah perbaikan didapatkan hasil proporsi waktu aktivitas menjadi sebesar value added (88%) non value added (NVA) berkurang menjadi sebesar (12%) berdasarkan rancangan aktivitas yang telah di operasikan berkurang dari 30 aktivitas menjadi 28 aktivitas dengan perbaikan waktu proses mencapai 37 hari dari 50 hari.   In the world of global competition, competition among competitors is getting tougher, so in fact, businesses that are run need to be continuously developed and improved so that companies are able to grow and compete. A company engaged in halal certification has several business criteria that are certified covering the processing industry, restaurants and abattoirs. The main focus of the object under study is the processing industry. Based on the historical data of halal certification for 2 periods, it has been continuously increasing so that the service and handling process in halal certification has accumulated and makes the flow of information and document flow on the supply chain lengthy because the new system used is an online certification system that has not been recently adopted. . The halal certification process takes time so that the quality of service in the flow of information and documents is not optimal and varies, the information flow and document flow are not time efficient which ultimately makes the lead time of the certification process to be long and ineffective. Analysis using value stream mapping (VSM). The results achieved in the form of (1) big picture mapping of the current state map and future state map, (2) knowing the value added and non value added in the halal certification supply chain flow process, (3) making a priority scale of 7 waste to minimize the waste of certification processing , then the type of waste that most often occurs in the type of waiting (28%) and the proportion of time value added activities (VA) of (54%) with non value added (NVA) of (46%). After the improvement, the result shows that the proportion of activity time is equal to value added (88%). Non-value added (NVA) is reduced to equal to (12%) based on the activity design that has been operated. 50 days. 


Nowadays automobile industry, as manufacturers structure and construct vehicles all-inclusive, their supply chains become progressively perplexing with difficulties in the method of profitability and investor worth value such as excess inventory over the production network and absence of permeability of providers. So as to expand the aggressiveness of the automotive industry with store network, here lean administration idea is incorporated as lean supply chain management (LSCM).The Lean supply chain is utilized to streamline the business forms by wiping out waste and non-value added activities. The association between lean and SCM is one of the techniques for expense and time decrease to improve the viability. The lean supply chain is likewise centered around advancing the procedure of all production network and scanning for rearrangements. This research paper is proposed a lean supply chain managementvalue stream mapping (LSCM-VSM) is utilized to dispense with waste and improved operational methodology and efficiency. It is a procedure of envisioning mapping stream of information and producing the future-state map with better strategies and execution. The exploratory outcomes demonstrate the production lead time (PLT) by executing the proposed LVSM and future more assesses the total cycle time (TCT) and value-added ratio(VA%) of a value stream.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joerg Leukel ◽  
Vijayan Sugumaran

PurposeProcess models specific to the supply chain domain are an important tool for the analysis of interorganizational interfaces and requirements of information technology (IT) systems supporting supply chain decision-making. The purpose of this study is to examine the effectiveness of supply chain process models for novice analysts in conveying domain semantics compared to alternative textual representations.Design/methodology/approachA laboratory experiment with graduate students as proxies for novice analysts was conducted. Participants were randomly assigned to either the diagram group, which worked with “thread diagrams” created from the modeling grammar “Supply Chain Operation Reference (SCOR) model”, or the text group, which worked with semantically equivalent textual representations. Domain understanding was measured using cognitively demanding information acquisition for two different domains.FindingsDiagram users were more accurate in identifying product-related information and organizing this information in a graph compared to those using the textual representation. The authors found considerable improvements in domain understanding, and using the diagrams was perceived as easy as using the texts.Originality/valueThe study's findings are unique in providing empirical evidence for supply chain process models being an effective representation for novice analysts. Such evidence is lacking in prior research because of the evaluation methods used, which are limited to scenario, case study and informed argument. This study adds the diagram user's perspective to that literature and provides a rigorous empirical evaluation by contrasting diagrammatic and textual representations.


2018 ◽  
Vol 7 (2.29) ◽  
pp. 219
Author(s):  
Zulfa Fitri Ikatrinasari ◽  
Dan Kosasih

PT. AEMI is one of the growing electronic component manufacturing company. By this time, Kaizen project has been run and managed to become a culture in PT AEMI. However, the project has not integrated, comprehensive and not yet has a long-term goals. Implementation of value stream mapping (VSM) in PT AEMI is expected to make Kaizen projects more focused and to produce increasing of the maximum efficiency. In addition, VSM Kaizen is believed to make the those programs more integrated, effective and comprehensive. This study aims to: (1) create a current state mapping in the Department of Quality Control PT. AEMI, (2) identify wastes in the Department of Quality Control PT.AEMI, (3) create a future state mapping at the Department of Quality Control PT. AEMI, (4) make a plan of improvement and analyzing the application. Stages of the study were as follows: (1) identification of work processes, (2) collect and analysis of work process time, (3) analysis of the current state mapping, (4) calculate of lead time and process time, (5) analysis of value added and non value-added activities, (6) analysis of wastes, (7) make a plan of future state mapping, (8) improvement design (improvement planning), (9) implementation of improvement, (10) analysis of the implementation of improvements. The results of this study are: 1) current state mapping at QC Department shows that the total lead time of 848 minutes where there is non-value added activity of 778 minutes. 2) identify waste on the handling process where the product movement from assembly to QC for 2 minutes, movement transactions from assembly to QC for 479 minutes and the waiting time at  inspection area for 727 minutes. 3) future state mapping at QC Department shows that the total lead time of 516.5 minutes where there is non-value added activity of 446.5 minutes. 4) the improvement to do is to change the lay out where final inspection is moved from QC to manufacturing so as to result in reduce of non-value added activity by 46%. 


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