Medrana, Meilin Denise D.

Drill Exercise
2
AIS3B

Analyzing Value Flow

The previous topic introduces us to lean manufacturing specifically the value stream mapping.
The main purpose of this is to eliminate waste and maximize customer value under the
manufacturing process. Almost all organizations use this business tool to mitigate risks and
identify unwanted waste that may harm the business. But for a business to do this, they must
analyze the value flow by examining the current status of the system. They must keep an eye
on their actions that can potentially add value and distinguish it from waste creating room for
improvement. This is why analyzing value flow is essential because this outlines how the
business operations are carried out. Some examples of how this automotive company can make
its value flow beneficial are through identifying lean waste in the value stream map such as the
process and inventory. If we take a closer look at the value stream map, we can determine that
painting takes up too much time (7 minutes) compared to milling (2 minutes), welding (4
minutes), and assembly (2 minutes). In addition, it also states that due to the process of
painting, hazardous waste amounted to 60 lbs.

On the other hand, the largest percent uptime was for assembly and inspection that amounted
to 93%. Moreover, the EHS (Environment, Health, and Safety) team can also help with
identifying risks and hazards to workers. The EHS team can contribute strategic ideas on how
they can utilize their resources without having to sacrifice a lot of costs. Furthermore, the
automotive company could also improve their lead time of 30 days by analyzing the different
processes inside the organization such as receiving time and shipping time so they can improve
in speeding up the process to eliminate wastes. Analyzing value flow is significant in every
business because it can produce quality products that can boost employee and customer
engagement.

References:

 US EPA, O. (2016, November 25). Lean & Environment Toolkit: Chapter 3. US EPA.

https://www.epa.gov/sustainability/lean-environment-toolkit-chapter-3
 https://www.lucidchart.com/pages/value-stream-mapping#:~:text=Examples%20are
%20inventory%20type%20and,of%20your%20Value%20Stream%20Map.