Title: Application of Value Stream Mapping in a Manufacturing Firm in Bosnia and Herzegovina
Abstract: The goal of this study is to examine one of the pivotal tools in the lean production methodology, a method known as value stream mapping (VSM). The paper aims to practically implement the VSM methodology within a manufacturing company and by doing so not only identify improvement potentials but also quantify their potential effects. The study practically applies the VSM method within a production environment. The implementation of the VSM method was done within a medium sized organization that produces parts and delivers them directly to one of Europe’s biggest automotive OEM`s. The initial process information and the process of current state mapping within the chosen organization were recorded and key manufacturing statistics were analyzed. Amongst others, some of the most notable problems detected were high inventory levels as well as a low uptime KPI on the level of the entire value stream. Solutions aimed at eliminating the sources of waste within the value stream through the application of lean production techniques were suggested. The result of the undertaken research proves that through the application of value stream mapping not only can sources of waste be identified, but also through the application of methods such as 5S and SMED, considerable process improvements can be achieved. The values presented in the later part of this paper must be regarded with a 10% margin of error. The data compiled in this case study is a mixture of observed and recorded values through visits to the production sites and internal company reports. The conclusions of this research can be reinforced by the implementation of VSM in other production companies. The conclusions of this research may serve as an initial point for middle and top management within production companies to assess the state of their production value streams and later on implement different lean production techniques. The conclusions of the research can enforce the importance of VSM as well as encourage further research into either creating a framework for quantifying lean improvement.