Simulation of Cost Driven Value Stream Mapping

Abstract

Value stream mapping (VSM) is based on an analysis of the times required to carry out production processes throughout the customer-manufacturer-supplier logistics chain.The goal of VSM is to identify wastes and eliminate them, thereby increasing the added value of a product.The paper presents an extension of the VSM concept which is based on determining the costs associated with the necessary operations and determining, based on said costs, the total costs of the entire production process.When eliminating those activities that represent waste, we can, by simulating the total costs, determine the contribution of the implemented measure to the reduction of lead time and, above all, the reduction of costs and thus the economic efficiency of the production process.For the presentation, by simulating the identified cost effects of the anticipated changes, we can calculate the leanness cost index and, using portfolio analysis of the leanness of the production system, analyse the effects.The application of the proposed methodology is shown in the case of transition from individual to lean and agile series production of ceramic capacitors.

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