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Procedia Computer Science 200 (2022) 660–668

3rd International
International Conference
Conference onon Industry
Industry 4.04.0 and
and Smart
Smart Manufacturing
Manufacturing

Digitization of processes in manufacturing SMEs - value stream

mapping and OEE analysis
Dorota Klimecka-Tatara*, Manuela Ingaldia
a
Czestochowa University of Technology, al. Armii Krajowej 19b, 42-201 Czestochowa, Poland

Abstract

Revolution 4.0 and the resulting changes in process management have a very large impact on the meaning and
method of obtaining digital data. The Industry 4.0 principles are already based on transparency and clarity of data
throughout the process. In addition, the assumptions of modern management methods (Lean) affect the need for
changes in creating value by minimizing losses in the area of operations that do not add value and the transparency
of operations that add value. It seems particularly difficult to introduce changes (in line with the trends of the 21st
century) in small and medium-sized enterprises (SME) from the manufacturing sector, as SMEs show maturity in
the area of management at a very low level. This paper presents the results of the vale stream mapping analysis
supported by the OEE coefficient analysis (Overall Equipment Effectiveness). Based on the conducted research, it
was found that the partial digitization of the one production operations in SMEs has a positive effect on the course
of the process. Creating a running chart for the variability of TPM (Total Productive Maintenance) indicators helps
to improve the organization and efficiency of work.
© 2022 The Authors. Published by Elsevier B.V.
© 2022 The Authors. Published by ELSEVIER B.V.
This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
This is an open
Peer-review access
under article underofthethe
responsibility CCscientific
BY-NC-ND license of
committee (https://creativecommons.org/licenses/by-nc-nd/4.0)
the 3rd International Conference on Industry 4.0 and Smart
Peer-review
Manufacturingunder responsibility of the scientific committee of the 3rd International Conference on Industry 4.0 and Smart
Manufacturing
Keywords: process digitalization, VSM, value stream mapping, OEE, process flow, smart manufacturing

1. Introduction

The industrial revolution mainly focuses on large corporations and companies. Corporations and large production
companies can boast of both the possibility of quick data processing (statistical, production, etc.), which are the

* Corresponding author. Tel.: +048-343-250-426.

E-mail address: d.klimecka-tatar@pcz.pl

1877-0509 © 2022 The Authors. Published by ELSEVIER B.V.

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the 3rd International Conference on Industry 4.0 and Smart Manufacturing

1877-0509 © 2022 The Authors. Published by Elsevier B.V.

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the 3rd International Conference on Industry 4.0 and Smart Manufacturing
10.1016/j.procs.2022.01.264
 Dorota Klimecka-Tatar et al. / Procedia Computer Science 200 (2022) 660–668 661
2 Author name / Procedia Computer Science 00 (2019) 000–000

basis for improvement activities. Large financial resources are conducive to digitization of data, as well as the
implementation of smart manufacturing algorithms. At the present time, SMEs still rarely invest their capital in the
development of digitization of production data, which results in unsatisfactory work and process effects [1–3]. There
are numerous barriers to the development of modern technologies [2,4–6]. Any action to integrate people with the
new concept of process management meets resistance from employees, including fear of being replaced or having
inadequate skills. These barriers focus not only on the social and economic aspects, but also on the technological
possibilities of enterprises. This research proves that even in the case of manual creation of digital data by
employees using simple production management and maintenance functions (elements of Lean Production and
TPM), development is possible [7]. The purpose of the paper is to present the method of managing material and
physical flows in small and medium-sized manufacturing enterprises. To evaluate the impact of digitization and key
data retrieval in order to identify actions to correct the flow.

1.1. Industry 4.0 in small and medium-sized enterprises

The implementation of the Industry 4.0 principles currently is an indispensable factor for the enteprises pursuit of
excellence. In practice, the introduction of the Industry 4.0 concept is a big challenge for many industries. In
particular, small and medium-sized enterprises (SMEs) face the greatest difficulties and barriers in the field of
modern technologies and methods. The implementation of such innovative technologies requires a complex set of
procedures (which is a very weak point of SMEs) created on the basis of existing models for assessing technological
position. In industry 4.0, business management is to some extent based on the monitoring and analysis of collected
data. Typical elements of smart manufacturing are process, human / machine and paper / digital data. The main
assumption is to create a digital interaction mechanism for human-to-human, human-to-object and object-to-object
across the entire production process [8]. For Industry 4.0, the main technology is represented by cyber-physical
systems - the concept of the Internet of Things. However, creating a set of digital data necessary for company
management poses a great challenge also from the point of view of company management strategy assessment,
modern machinery, as well as process monitoring and control [9–14]. Rauch et al. propose an application of model
for SMEs with clear overview of existing Industry 4.0 concepts, and supports SMEs in defining their individual
strategy to introduce Industry 4 [15]. From the other side, Liu et al. consider strategies for implementing the
Industry 4.0 concept in SMEs based on the economic cost control and investment effect - taking into account human
capital investment, R&D investment etc. [16]. However, Müllner assumes that assign business model implications
through Industry 4.0, refer to the Business Model Canvas. The key resources and value proposition are among the
most affected elements of the business model, whereas channels are the least affected [17].

1.2. Process visualization - visualization based on graphics and digital data

Process visualization can rely on various process management techniques and tools. According to the Lean
principles, process visualization is primarily a graphical representation of the process flow, from the customer order
to the distribution [18,19]. According to the Lean concept, process visualization aims to systematize successive
operations (actions) in the context of value adding [20,21]. Value-adding operations (VA) are those that make a
product more useful and the customer wants to pay for it. Value-adding operations are the key elements of graphic
visualization - each participant in the process is aware of their presence. On the other hand, other elements of the
process are operations that do not add value (non-value adding – NVA), i.e. operation of which occurrence in the
process is often necessary, but not crucial from the customer's point of view (it does not make the product more
useful). The entire arrangement of VA and NVA operations complements the graphical representation of the
process, which is often used in value streams and values in the analysis. However, the purpose of graphic
visualization is to identify and expose the occurrence of non-value adding operations. Identifying the NVA makes it
possible to make a decision on the reorganization of the process or improvement in accordance with the Kaizen
philosophy (improvement in small steps). Generally, the graphical visualization of the process primarily supports the
improvement of the process based on minimizing losses during its course, i.e. lean production. In the graphical
method of process visualization, all informations are obtained from the observation of the process flow, procedures
662 Dorota Klimecka-Tatar et al. / Procedia Computer Science 200 (2022) 660–668
Author name / Procedia Computer Science 00 (2019) 000–000 3

regulating the methods of operation, and the review of processed documents. It is rather a long-term method and
unfortunately carries the risk of error.
Process visualization on the basis of digital data enables quick and thorough knowledge of the course of all
components of the business process. Visualization based on digital data allows to see opportunities for improvement
that would not be possible to develop in a traditional way. Only on the basis of the analysis and visualization of
digital data, it is possible to immediately notice any deviations from the standard, expected process flow. It should
be noted that also in the case of graphic visualization, unnecessary operations can be revealed, but only numerical
analysis (digital data) gives information about the scale of these phenomena and what impact they have on the final
evaluation of the process. The fundamental differences between the indicated types of process visualization are the
fact that graphical analysis can be performed by anyone, however, digital analysis requires appropriate preparation
in the field of data acquisition. This seemingly small difference becomes a key barrier for SMEs in implementing
modern concepts such as Industry 4.0 (5.0) and smart manufacturing. Therefore, it is advisable that the methods of
process visualization should be treated inseparably - they should complement each other [22–25].

2. Methods

Two basic improvement tools were used in the research: value stream mapping (VSM) and TPM indicators
[19,21]. The main goal of the research was to determine whether the implementation of (often expensive)
digitization solutions will improve the efficiency of system-managed production processes in small production
companies. The goal was achieved based on the introduction of changes in the collection of numerical data at
selected workstations (by assumption, at workstations that were determined as those that generate the greatest
number of losses). The main assumption was to estimate the possibility of collecting digital data directly from the
discussed areas of the process. For this purpose, mapping of the value stream for the production process (in this case
for the injection molding processes) was carried out, the data on the map was enriched with the analysis of the OEE
(Overall Equipment Effectiveness) coefficient components. OEE indicator quickly provides information about the
possibilities and use of machines as well as the effectiveness of the production process organization [26,27]. The
OEE was determined only for the operation that determines the process flow time – operation 3 and is identified as a
bottleneck.
Value stream mapping (VSM) is based on the basic principles of Big Picture analysis. Value stream mapping
method (VSM) with appropriate development is a tool used form smart manufacturing system of an SMEs [18,22].
For this purpose, in accordance with the methodology of the VSM analysis, 5 areas on the map were selected, which
were visualized on the basis of observations and data review - 5 areas have been defined [19,20]:
• area 1 – Order and product requirements;
• area 2 – Internal information management
• area 3 – Material supply management
• area 4 – Integration of material and information flows
• area 5 – Time completion of flows and non-value adding (NVA) and value adding operations (VA).
On the basis of the current state map (CSM), a diagnosis was made of the area that causes the greatest losses
in the process. The area in which the occurrence of muda was selected. Muda - according to Toyota Management
System and Six Sigma methodology, there are various types of losses, e.g. overproduction, unnecessary movements,
defects, over-storage, waste of time, unused potential, excessive consumption of materials [28]. On the other hand,
the VSM has been enriched with parameters enabling the determination of OEE as a process flow denterminant.
The OEE indicator, in line with the general principle of TPM analysis, was based on digitized data for operations
and included: quality, availability and productivity. Data that made it possible to determine the dependence
of changes in the parameters of the OEE indicator in a given period, calculated on the basis of formula (1)
supplemented by formulas (2) (3) and (4):

𝑂𝑂𝑂𝑂𝐸𝐸 = 𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 · 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 · 𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄 · 100% (1)

Availability takes into account the loss of availability, i.e. all events causing a production stop, i.e. unplanned
breaks (e.g. breakdowns) and planned changes (e.g. retoolings and calibrations).
4 Author name / Procedia Computer Science 00 (2019) 000–000
Dorota Klimecka-Tatar et al. / Procedia Computer Science 200 (2022) 660–668 663

𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑜𝑜𝑜𝑜 𝑐𝑐ℎ𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎−𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑜𝑜𝑜𝑜 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠

𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 = (2)
𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 𝑜𝑜𝑜𝑜 𝑐𝑐ℎ𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎

Performance takes into account the loss of performance resulting from interruptions as well as slowing down the
cycle when starting the machine.

𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 (𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎𝑎)

𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 = (3)
𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡 (𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝) 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑛𝑛 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣

Quality takes into account the loss of quality. It takes into account the number of defects and reduced
performance when starting the machine.

𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑜𝑜𝑜𝑜 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝−𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑜𝑜𝑜𝑜 𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑𝑑

𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄𝑄 = (4)
𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛𝑛 𝑜𝑜𝑜𝑜 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝

The data was collected during a typical production month when the production project is already underway. The
research period covered 31 working days.

3. Results and discussion

Figure 1 presents the current state map (CSM) for the production of products in injection molding processes. The
entire process is carried out according to the general scheme presented on the map.

Fig. 1. Current state map (SCM) for the production of products in injection molding processes - based on VSM analysis

Figure 1 and Table 1 describe (illustrate) all the required areas of the map, and on the basis of the review and
analysis of adding and non-value adding operations, the operation that determines the process flow rate and is the
source of all delays was selected. The difficulty in the entire analysis is the fact that VSM illustrates a production
664 Dorota Klimecka-Tatar et al. / Procedia Computer Science 200 (2022) 660–668
Author name / Procedia Computer Science 00 (2019) 000–000 5

process owned by a small and medium-sized enterprise with a very unsystematic organizational structure and
unstable management processes. The preliminary inspection concluded that the main problem in the management of
the discussed process is the fact that employees do not act in accordance with the procedures and rules established at
the start of the process.

Table 1. Operation characteristics as components of the entire production process (value adding operations)
Efficient
Workstation Number of Number Quality
No Characteristic of operation processing, C/T
flow, min operators of shifts control
%
Operation 1 Composition preparation 65 92 60 1 2 -
Operation 2 Filter processing 95 63 60 1 2 -
Operation 3 Two-stage injection 36 50 18 1 2 -
Operation 4 Conditioning 1485 97 1440 1 2 SPC

Table 1 presents a simplified characteristic of operations as components of the entire production process.
In addition, until the research was carried out, the company did not use digitized data, which would largely inform
about the need to introduce corrective actions for the process.
For further analysis, an operation was selected with an effective machine utilization rate of only 50% (operation
3). In order to find out what is the cause of such large wastage (losses), an attempt was made to thoroughly analyze
the indicators for the operation. As it results from the review of the production process, the operator on station 3 did
not record or measure the parameters that are necessary to determine OEE for the station. For this purpose, it was
possible to configure the injection machine with software that allowed data to be downloaded independently
or entered manually (manually entered number of defects - products that did not meet the requirements of visual
inspection). Based on the collected data, a report was prepared showing the variability of the OEE coefficient rate.
The running graph appeared in a progressive manner, and the operator / service system could react to problems
arising in the process.
Fig. 2 presents charts for individual indicators characteristic (distribution of the indicator values with the trend
function in the analyzed period for: availability, performance, quality and OEE) for the discussed operation. The
comparison of the indicators variance is presented in Fig. 3.

a) b)
 Dorota Klimecka-Tatar et al. / Procedia Computer Science 200 (2022) 660–668 665
6 Author name / Procedia Computer Science 00 (2019) 000–000

c) d)

Fig. 2. Distribution of the indicator values with the trend function in the analyzed period:
(a) availability - A; (b) performance - P; (c) quality - Q; (d) OEE

Fig. 3. Comparision of the indicator values distribution: availability (A), performance (P), quality (Q), OEE

Based on the review of the changes in the basic parameters affecting the value of OEE coefficient (Fig. 2 and 3),
it was noticed that the performance trend (trend function presented in Fig. 2b) increases with the work progress.
Unfortunately, at the same time, slight changes in the level of availability and product quality are observed. That is,
along with the increase in machine performance, a slight decrease in the level of product quality (in the context of
the entire series) is observed. The consequence of which is an almost constant value of the OEE coefficient - more or
less 50%.
On the basis of the conducted analysis, the elements that determine such a low availability of the machine were
also identified. It turns out that with the increase in the performance of machine in the process, many errors are
made, which result in a reduction in availability (Fig. 2a). Among the reasons causing such large losses in the
effective use of the device, the following should be mentioned (fig. 4): process start, failure, changeovers and others.
 Author name / Procedia Computer Science 00 (2019) 000–000 7

666 Dorota Klimecka-Tatar et al. / Procedia Computer Science 200 (2022) 660–668

a) b)

Fig. 4. Structure of losses: (a) Structure of machine availability losses; (b) the structure of time losses in relation to effective production

The presented overview of losses in the efficiency of the process course clearly indicates that in small and
medium-sized enterprises it is necessary to introduce data digitization. The manuscript presents the results of the
digitization pre-test at selected workstations, which means that all operational and downtime times as well as the
number of products and defects were measured. Even the manual creation of data from the process flow resulted in
an increase in the performance of the machine (fig 2b) - the value of performance tends to increase over the course
of research days. Charts created in a rolling manner resulted in increased activity of operators on the workstation.
Unfortunately, in this case there was also a significant reduction in the quality of products (fig. 2c). The increase in
performance and a decrease in quality as a consequence did not have a greater impact on the OEE coefficient. The
reduction in quality could also be caused by a significant number of errors provided, the effects of which were noted
in a large share of the process of losses (losses such as failure and unplanned changeovers) – fig. 4. The presented
results show how SMEs, with minor changes, can regulate the efficiency of production. In particular, in SMEs, the
implementation of general changes to the overall data collection process could not be achievable due to high costs.
The limitation in this type of study is primarily the fact that only one operation was taken into account for the
analysis. The operation, which in the research period was the weakest element in the flow of the process, and the
time of its effective work constituted only 50%. Such an operation for the process flow was clearly a bottleneck that
has a significant impact on the process rate. Regarding the Lean principles, where value-adding and non-value-
adding operations are considered, it should be noted that the 50% loss of machine efficiency also means that this
operation is a significant source of muda (waste).

4. Conclusions

The purpose of the paper is to present the method of managing material and physical flows in small and medium-
sized manufacturing enterprises. To evaluate the impact of digitization and key data retrieval in order to identify
actions to correct the flow.
Based on the carried out analysis and the presented results, it can be concluded:
• partial digitization of the one production operations in SMEs has a positive effect on the process flow;
• process visualization with a running chart for the variability of TPM (Total Productive Maintenance)
indicators motivate to improve the organization and efficiency of work;
• process visualization - value stream mapping (VSA) - with the interaction of visualization with digital data
(e.g. OEE) is a complementary set of information for the implementation of new production management
concepts - in particular in SMEs.
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8 Author name / Procedia Computer Science 00 (2019) 000–000

Acknowledgements

Publication financed from statutory research of the Czestochowa University of Technology SPB-600-3016/2021.

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