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12th International Colloquium of Logistics and Supply Chain Management LOGISTIQUA 2019

June, 12-14
IUT de Montreuil, Université Paris8, France

Implementation of Lean through VSM


modeling on the distribution chain:
Automotive case

Yousra EL KIHEL,Aicha AMRANI, Yves DUCQ Driss AMEGOUZ


University of Bordeaux, Laboratory IMS Higher School of technology, Laboratory for Energy and
Bordeaux, France Sustainable Development of Fez, Morocco
Yousra.el-kihel@u-bordeaux.fr,aicha.@u-bordeau x. driss.amegouz@usmba.ac.ma
yves.ducq@u-bordeaux.fr

Abstract— The automotive industry in general is distribution system and expand the range of products while
characterized by a diversity of products and equipment distributing at low cost with an optimal time and
manufacturers who are dedicated to a production mainly for quality. Companies must implement strategies to optimize the
export to several destinations. This sector still lacks downstream logistics flow as well as the production flow optimization that
logistics competitiveness with a low quality/price ratio of we know with Lean (from Toyota automobile). Lean
transport. For these companies to remain competitive in a approaches reduce waste in the industrial sector and guide the
competitive world, improving downstream chain processes is construction of logistics flow by maintaining customer value
essential. Our contribution to meeting this challenge is to provide
as a guiding principle in modeling.
modeling using the VS M, "Value S tream Mapping" method of
the downstream distribution supply chain to identify waste such In this context, our problem is to analyses the entire
as waiting times for non-value-added activities (NVA). To do this, downstream supply chain. In our work, we consider as
we carry out an analysis of the causes and an action plan. A downstream logistics any logistical process beginning at the
future VS M map is being developed to reveal possible end of the production cycle that is to say after obtaining the
improvements that can better direct downstream flow shipments, finished product. Downstream logistics already starts in the
accelerate arrival at destinations and increase end customer company’s warehouses from the receipt of the finished
satisfaction. This work applied to an equipment manufacturer product at the shipping store to delivery to customers.
manufacturing electrical wiring for the automotive sector,
allowed the company to make quantified gains for the company On the other hand, this study enables managers to identify
that will be discussed. bottlenecks in the process, reduce delays and costs. This
approach we demonstrate by our VSM models will have a
Keywords—Automobile; Lean; downstream logistics chain; positive impact on the company’s performance.
VSM; Performance
Our contribution consists of analysing the current situation
I. INT RODUCT ION and applying the Value Stream Mapping (VSM) to the
With the major investments of the automotive industry, distribution logistics chain of an automotive industry cabling
manufacturers and equipment manufacturers, Morocco has company (ECA) in Morocco, a subsidiary of a French
become the first building hub on the African continent, ahead company based in Chiche near Nantes. This is an illustration
of South Africa with an international distribution [1]. of the expected challenge of downstream logistics modelling.
ECA exports products to 7 European countries. We can
Distribution is becoming more and more complex and therefore assume the challenge of improving downstream
expensive with the breadth of the distribution chain, the logistics.
different complex processes of distribution and the different
destinations. [2]. The article is organized as follows , a literature review of
the VSM tool, a description of a methodology based on the
To face this challenge, many organizations had to think, to PDCA approach and a presentation of the case study. We will
find creative solutions to improve the flexibility of their develop the value flow map of the current state of the
LOGISTIQUA 2019  June 12-14  IUT de Montreuil, Université PARIS8, France

downstream logistics chain and the proposal of a future map Villeréal [10] presents a T-modellingVSM Transportation
that allows to optimize the downstream logistics chain. Value Stream Mapping which provides a detailed description
of the storage and transportation operations and a simulation
II. LITERATURE REVIEW of the proposed model that has led to an improved efficiency
of the TOVE Index (Total Overall Vehicle Efficiency) of all
A. Lean Management operations in the company’s distribution process.
Lean techniques are inspired by the Toyota production A case study on the application of MSM in the automotive
system to improve the production of their plants. Toyota sector is presented by Rajenthirakumar and Shankar resulting
(TPS). [3] in a 67% decrease in cycle time by optimizing value-added
activities. [11]
Lean is a systematic process that tends to exclude all
sources of inefficiency from value chains and to satisfy Garza et al. [12] propose an environmental approach to E-
customer requirements and performance. It aims to optimize VSM value stream mapping based on the Deming PDCA
costs, delivery times and quality, while taking into account the wheel that improves environmental performance. The results
safety of staff and ergonomics at the work place. To achieve of its application can be an effective alternative for improving
such an objective, it is preferable to act on the 3 sources of the green performance of operations.
inefficiency: waste, flexibility and variability.
Hefner et al. [13] suggest an innovative approach called Q-
According to [4] Lean is described as a way of VSM (Quality Value Stream Mapping), It is a tool adapted for
eliminating or reducing productivity losses, by all the visualization, the design and analysis of quality assurance
actors in the process. measures for the manufacturing system in the electronics
industry.
B. The Value Stream Mapping VSM According to Rajendrakum [14] the application of the
The Value Stream Mapping is a descriptive mapping of the VSM on the production flow shows that non -value-added
flows in the process studied, which in absolute terms covers activities have been optimized such as waiting times, handling
the entire Supply chain from the supply of raw materials to the times, etc.
delivery to the customer). [6]. In conclusion, the approach, VSM (Value Stream
The origin of the value Stream mapping is developed by Mapping) is very effective and often used in the literature for
the engineer Taïchi Ohno at Toyota, to identify and eliminate production with possible extensions to transport,
waste sources [7]. Value chain mapping is one of the Lean environment...etc. We want to use MSM as a model to support
tools widely used by production companies, [8] to improve the analysis of automotive downstream logistics.
operational performance [9]. According to the literature review, this method is more
The value stream mapping allows: applied to the automotive industry, particularly to the supply
and production process, and very little work has begun to
 Supervise the value creation flow in the entire apply it to the downstream supply chain.
process.
 Evaluate the process and spread the ratio between the III. CASE STUDY
activity times (VA and NVA)
 Detail and specify the cycle times. Our case study was conducted at a cabling company in the
automotive industry “ECA” located in Morocco. Its official
 Identify sources of non-performance waste. headquarters is in France, the group is specialized in the
design and realization of electrical wiring for the automotive
 Show the interference between types of flows in the
sector (wiring for electric cabot). The finished products of the
logistics chain (raw material, information, finished
product. group are shown in Figure 1. The production is entirely
destined for export for all electrical and electronic industries
The utility of this method is to collect information and and more particularly for the major car manufacturers with
reduce costs by eliminating non-value-added tasks, its which the ECA France group achieves 55% of its turnover.
objective is to collect information about a process quickly and
visually to help target problems. Our work focuses on the downstream supply chain of the
Distribution process, which transports the finished product to
In recent years, it has been applied to other processes such several destinations (France, Germany..).
as the supply chain.
The application on our case study aims to analyse the
C. Areas of application downstream supply chain of distribution processes with the
In the literature, several research studies have applied the best tool of the Lean approach within the shipping warehouse
VSM tool for continuous improvement in different sectors of the company ECA, identifying NVA activities for
such as the automotive industry, electronics, continuous improvement of the performance of the
environment...among the latter are: downstream supply chain.
LOGISTIQUA 2019  June 12-14  IUT de Montreuil, Université PARIS8, France

A. Choice of product family


The first step is the identification of the product family,
The choice is identified by the ABC method.
Priority customers are those who represent 80% of orders
shipped, these products are classified by families.

B. Create Current State value stream map


To analyse the current status of the value flow mapping
The connectors The cables The sens ors “Value Stream Mapping” we have defined the following
principles.
Fig 1. ECA Finished Product  Start from the last point in the value creation chain
 Take note of the necessary information such as: the
IV. METHODOLOGY number of hours worked, the distances travelled, the
stocks, the quantity requested..., Figure 4 below shows
In this section, The methodology used to develop the value the time available in hours per week.
flow mapping is given in Figure 2. This approach is defined as .
part of the continuous improvement of the PDCA process to
structure the implementation of the control card D-VSM.

 The implementation of a Future


 Define strategic objectives and client
Action Plan.
requirements.
 Implementation of the action plan
 Communication and awareness of the
for the creation of the future state
VSM team.
of D-VSM.
 Define Process Steps and Gather Data.

 Identification of the product family


 Implementation of the future state  Analysis ,elimination and reduce
of the card. Non Value Added activities .
 Audit, evaluation analysis and  Creation of the current state of D-VSM
optimization.

Fig.2 PDCA Approach to D-VSM implementation


LOGISTIQUA 2019  June 12-14  IUT de Montreuil, Université PARIS8, France

Table 1 provides a description of all tasks in the


downstream supply chain.
Figure 3 shows the map of the current state of the
distribution with the different steps required. Each
task is presented by a box below, attached with a
data box that contains information such as the
number of shifts occupied in each workstation with the
cycle time of all tasks since the pickup, the
preparation of orders until delivery to customers
final. Figure 4 shows the available time per hour
scheduled in the week for each team.

Fig 4. Available time by hour

Tasks Description T asks Description

Pick-up: The accumulation of Packaging and shipping:


T1 finished product inventory requires T8 Pallets transferred to the
several pick-up rounds during the store and checked are now
rotation of all crews. ready to switch to stretch
film using handling
equipment.

T9 Movement of finished
T2 Bundling: Bundling means racking pallets: The finished pallets
in the shipping area. must be loaded while
respecting the priority of the
pallets to be the first to be
unloaded.

T 10 Loading: The filling of the


T3 FP/Client Sort: T he shipping area
trailer starts every time there
is divided into different zones in
order to store one lot per customer. are finished pallets while
complying with the applicable
loading standards.

T4 FP Sort/ Reference: In the Road Transport: Transport goods to the port


shipping area the sort can also be T 11 of Tanger M ed.
done by reference.

Palletizing: Palletizing of finished T 12


T5 Maritime Transport: Verification
products begins as soon as a
in Tanger M ed and boarding for
reference reaches the quantity
Algesiras.
required by the customer.

Transfer: Pallets with the required Warehouse delivery: Unloading


T6 packaging and quantity standards T 13 and storage of finished products
must be transferred using the RF in the warehouse of the company
gun from Store F to Store E ECA France.

Editing of the Dossier: Preparation of


T7 Final Customer Delivery: Final
the export file (Invoices, etc.) T 14
Product Distribution to
Customers.

T able II. Downstream Logistics Chain T asks


LOGISTIQUA 2019  June 12-14  IUT de Montreuil, Université PARIS8, France

Figure 3. Current state value stream map

C. CAUSES AND EFFECTS D. Futur state


To analyse malfunctions, an Ishikawa analysis diagram has The future map of the downstream logistic chain is
been developed to detect priority areas of action. Without modelled to provide useful proposals and recommendations
burdening this paper with the detail of the diagram, we report for improvement in order to evolve the As Is situation.
the key malfunctions: Ishikawa analysis tools and the VSM offer a glimpse.
 Insufficient space for order reception and
preparation.
 Packaging not optimized.
 Poor management of distribution flows.

Fig. 5. Future state value stream map


LOGISTIQUA 2019  June 12-14  IUT de Montreuil, Université PARIS8, France

Results and discussion: simplifies the process and helps reduce the complexity of the
distribution flow.
From a Lean point of view it is useful to unpack the
distribution system. The number of MSM “As Is” observation It will be carried out by 2 operators, the first concerned
steps is considered very high. We propose to create a with the filming and the other with the labelling of the finished
“generic” step to bring together the three tasks which are: product. This new organization reduces the number of
sorting finished products by reference, sorting finished inspection works and packaging optimization a reduction of
products by customer and grouping. This approach clarifies the delay as shown in Figure 7, presenting the delivery time
the key steps without burdening the model with the underlying before and after the proposal. At the "ECA France" level, the
steps. The advantage of making the bundling step generic is reduction in the deadline has increased the client’s satisfaction
the possibility of freely disposing inside the staff in order to rate by 40%. We continue to analyses possible areas of
avoid the dedicated tasks. The versatility of the operators is improvement.
another aspect favouring the elasticity of the system in order
to avoid inter-station waiting times. In summary, we obtained the following areas of
improvement through VSM modelling at the downstream
Figure 5 shows the future state map of the downstream logistics chain:
logistics chain. Our value chain mapping becomes shorter than
the current state. The total number of workstations in the  Reorganization of the downstream chain distribution
company is reduced to 8. This job optimization is not aimed at process.
a reduction of the staff but at "multipurpose" operators can be  Operator task specialization.
assigned to other tasks that add value.
 Implementation of 5S Lean which can be used to
For the first task, the number of operators involved in the improve the order preparation environment.
collection of finished products has increased to 2 as the
accumulation of inventory requires several rounds of pickup,  Reduce empty and sometimes unnecessary truck
which reduces the time of the collection cycle and unnecessary movements.
travel.
 Set up addressing in shelving to facilitate order
For product grouping, the 5S tool is implemented in the preparation.
shipping store in order to better organize the place of order
preparation and free up space.  Packaging at ECA Morocco for end-customers
provides optimization of delivery time and cost.
The tasks of sorting finished products by reference and by
customer are grouped into a single item whereas the grouping The figures obtained assess the effectiveness of the
of the finished product will be carried out by 3 operators. proposed distribution system compared to the existing
distribution system. The number of positions has been reduced
In the verification task, it is proposed to add an additional by eliminating non-value-added activities. The cycle time has
“RFID gun” tool to read and check the number of packages been improved by 20% thanks to the reactivity made possible
and pallets requested by the customer, prepared and reported by the versatility, the 5S, and the addition of a scan tool to
to the system. speed up operations (Table I).
The shipping store manager prepares only the task of In this figure we see that the blue blocks representing TC
editing the export file and not the control of the finished are less than CT in the initial situation. Also the partial
product. For this task we propose that it be carried out at the calculation of the delivery time is improved and a gain of 30%
production line of the quality control department method was found with the solutions deployed. Overall costs are also
(Quantity, Weight, and Volume). Overall, over the multitude reduced.
of tasks analyzed, the cycle time is halved for the tasks T able II. Summary of Results
analyzed. Figure 6 shows the comparison of the cycle time
between the current state and the future state of the
distribution process. We see a decrease of time in the creation Indicator Current Future Gain
of non-value-added which reaches 20%, this optimization carte carte (%)
comes back to the reorganization of the tasks to be carried out. Number of position 10 8 20
The task of packaging for end customers in Nantes is Cycle time 5999,6min 7429,25 19,25
currently generating wait times generating high outstanding
amounts and customers waiting for delivery due to packaging Delivery time ( Days) 10 7 30
delays. Cost of packaging 6249,52 1847,44 60
Now, in the Lean approach, we propose to chain operation (EUR)
n+1 as soon as the operation is not finished. The idea here is
to pack per customer as soon as the product is qualified and
ready for shipment. Packaging in “ECA Morocco” shipping Table II presents a summary comparison of the indicators of
stores and not at the parent company’s platform “ECA France” current and improved state.
LOGISTIQUA 2019  June 12-14  IUT de Montreuil, Université PARIS8, France

Acknowledgment

I would like to thank the director of the ECA company and the
entire team in the logistics department who welcomed me into their
company and who facilitated my research work.

References

[1] AMICA Association Marocaine pour l'industrie et le Commerce


Automobile. Opportunités et Perspectives Stuttgart . 2013.
[2] Y.EL KIHEL“Reference system selection methodology for
evaluation of downstream logistics performance: Case of the
automobile industry in Morocco”Nov.2018.
[3] T . Ohno, T oyota Production System: Beyond Large-Scale
Fig 6. Comaprison Cycle T ime betwen current State and Futur state
Production. CRC Press, 1988.
[4] J. P. Womack and D. T . Jones, “Lean Thinking—Banish Waste
and Create Wealth in your Corporation,” J. Oper. Res. Soc., vol.
48, no. 11, pp. 1148–1148, Nov. 1997.
[5] R. M. Belokar, V. Kumar, and S. S. Kharb, “An Application of
Value Stream Mapping In Automotive Industry: A Case Study,”
vol. 1, no. 2, p. 6, 2012.
[6] L. Campaner, “Application des outils Lean dans le cadre de
l’optimisation d’une ligne de conditionnement,” PhD T hesis,
2016.
[7] D. Kumar KR, “Application of Value Stream Mapping in Pump
Assembly Process: A Case Study,” Ind. Eng. Manag., vol. 04, no.
03, 2015.
[8] B. Villarreal, “T he transportation value stream map (T VSM),”
Eur. J Ind. Eng., vol. 6, no. 2, p. 216, 2012.
[9] J. A. Garza-Reyes, J. T orres Romero, K. Govindan, A. Cherrafi,
and U. Ramanathan, “A PDCA-based approach to Environmental
Value Stream Mapping (E-VSM),” J. Clean. Prod., vol. 180, pp.
335–348, Apr. 2018.
[10 ] B. Haefner, A. Kraemer, T. Stauss, and G. Lanza, “Quality Value
Stream Mapping,” Procedia CIRP, vol. 17, pp. 254–259, Jan.
Figure 7. Comparison delivery time betwen state current ana future card 2014.
[11 ] D. Rajenthirakumar and R. G. Shankar, “ANALYZING T HE
BENEFIT S OF LEAN T OOLS: A CONSUMER DURABLES
MANUFACT URING COMPANY CASE ST UDY,” Int. J. Eng.,
p. 5, 2011.
V. CONCLUSION

The objective of our study was to provide a methodology


based on the value Stream Mapping for the continuous
improvement of the distribution process of the downs tream
supply chain.
The PDCA approach has enabled us to structure the work
methodology, to analyse all the tasks of the process in order to
identify the tasks that have added value and to reduce or eliminate
non-value-added tasks.
As perspectives and in order to improve our study, we propose
to follow up the work of improvement in the platform located in
France where the cross -docking, the idea of conducting a
comparative study between the different distribution platforms
that are attached to the parent company to do a simulation of the
scenario proposed with the FLEXIM software.
From a research perspective, VSM modelling is a first step in
reducing the complexity of the distribution process in order to
guide future actions. In our future work, we want to link the
GRAI method that makes it possible to control a distribution
system with the VSM which allows to observe the variables of
actions and to link our method to the SCOR model which allows
to decrypt the critical phases from a process analysis point of
view.

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