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BPMJ
20,6
922
Received 16 July 2013
Revised 17 September 2013
5 October 2013
Accepted 11 October 2013
Business Process Management
Journal
Vol. 20 No. 6, 2014
pp. 922-949
r Emerald Group Publishing Limited
1463-7154
DOI 10.1108/BPMJ-07-2013-0098
A process improvement approach
based on the Value Stream
Mapping and the Theory of
Constraints Thinking Process
Tatiane Pereira Librelato, Daniel Pacheco Lacerda,
Luı́s Henrique Rodrigues and Douglas Rafael Veit
Research Group on Modeling for Learning – GMAP,
Universidade do Vale do Rio dos Sinos – UNISINOS, Sa~o Leopoldo, Brazil
Abstract
Purpose – The purpose of this paper is to present a case of integration between the processes
modeling by using the Value Stream Mapping (VSM) and the Thinking Process of the Theory of
Constraints (TP-TOC) through the analysis of productive processes of an organization, indicating the
complementary aspects between them and their benefits to the organization.
Design/methodology/approach – The paper uses a company of the Brazilian automotive industry
as the administering site. The research began by identifying the organization’s processes and choice of
a family of products to model according to the VSM approach. The integrated view between the losses
in the process (VSM) and the unwanted effects of the adding value process were analyzed by using the
Current Reality Tree. After the analysis, different improvement procedures are proposed based on
the lean principles. Finally, a work plan is presented based on the previous steps aiming to achieve the
proposed future state.
Findings – The analysis of this case helps to understand and identify the causes of the current
problems in the processes studied, providing an integrated view between the losses in the process and
the prioritization of steps for the elimination of such losses. The approach in its initial administration
was robust and the solution steps were promising. By integrating these approaches, it was possible
to verify improvement opportunities by identifying the losses and the basic causes that sustain the
unwanted effects in the processes at the same time.
Originality/value – The study proposes an approach that enables a systematic and systemic
analysis of the processes at organizations through the combined use of process modeling through the
VSM and TP-TOC. Simultaneously, the losses in the processes and the unwanted effects are identified.
Thus, through the construction of an effect-cause-effect robust logic, both losses in particular and the
unwanted effects in general can be prioritized in order to maximize the improvement efforts in the
processes.
Keywords Value Stream Mapping, Theory of Constraints, Current Reality Tree,
Toyota Production System
Paper type Case study
1. Introduction
In order to attend the needs of the market in the competitive environment, production
systems have included a wide variety of concepts, models and management methods.
As a consequence, there is a need in companies to install flexible and integrated
production systems in a systemic and continuous way (Antunes et al., 2008). In order to
improve the flow and orient operations, Ford introduced a system that brought the
The authors thank the National Counsel of Technological and Scientific Development (CNPq),
an agency of the Brazilian Government, for supporting and encouraging the research.
origins of just-in-case, based on the limits of the physical space as a way to control Theory of
work-in-progress (Goldratt, 2009). While Ohno constructed a system that originated Constraints
just-in-time ( JIT) based upon the control of the inventory quantity, Goldratt focussed
on a system that created the Theory of Constraints (TOC) based on time, to avoid Thinking
queuing (Goldratt, 2009). Process
Beyond the adoption of a specific production model, companies have constructed
hybrid models seeking to create a productive system that best adapts to the company’s 923
needs. However, it is not uncommon to find companies that have introduced these
approaches in their processes without achieving the expected results. This may occur
because of various reasons, among them: lack of understanding of the existing
problems in the manufacture systems; inadequate preparation for a new approach;
excessive confidence that the new system will resolve the problem; inadequate
software; and imprecise data (Rodrigues and Mackness, 1998). A useful approach for
combating such problems is process modeling as proposed by the Value Stream
Mapping (VSM) (Lasa et al., 2009).
Lacerda et al. (2010) suggest that one of the ways to understand the dynamics of the
processes is through process modeling, which among its objectives is the construction
of a homogeneous vision of the organizational processes. Among the approaches of
process modeling is VSM, a methodology that can assist in re-organizing the
manufacture systems, based on the application of distinct interconnected tools in a
holistic or systemic manner (Rother and Shook, 2003).
On the one hand, VSM can contribute to the identification and improvement of
processes, as its main strengths involve the identification of losses (wastes) in the
process and standardization of data in simple language, contributing for the
identification and solution of problems (Lasa et al., 2008). On the other hand, although
it offers an integrated view and identifies the losses in the processes of an organization,
the literature survey on VSM has not encountered a structured method of analysis and
problem solution to be used in the systems redesign (future state map). Being so, from
the VSM point of view, there are no mechanisms that allow the prioritization of actions
or the rationalization of efforts to improve so as to act on the basic causes that sustain
the losses, and/or the undesired effects from a TOC point of view. It is worth
mentioning that the use of these two instruments is a complement, namely, VSM is a
tool that assists in the identification of the problem, whereas the Process Thinking of
the TOC contributes in finding the root of this problem. This combination is justifiable
as the utilization of VSM in a long production chain may deviate the focus of the
analysis, turning in this way the usage of focus instrument such as Current Reality
Tree (CRT) useful as it directs the attention to the root of the problem.
Another important issue is the originality in the combination of these two
instruments. The investigation held in data banks revealed that there were no
publications using a combined VSM and TP-TPC approaches.
Lasa et al. (2008) propose that the redesign of processes through VSM includes more
innovative concepts, as in the case of lean production, as well as other conceptual
contexts as observed in the TOC. Lasa et al. (2008) discuss the adaptation between the
theory and practice of VSM, its more strengths and weaknesses as well as the main
aspects that should be considered for obtaining the best results. Although the study
advances to action plan seeking improvement in the processes, VSM is not an
instrument that would give priority to problem solving. As part of their conclusions,
Lasa et al. (2008) point to the need for a combined use of VSM with other conceptual
contexts such as TOC for the elaboration of more robust future states.
BPMJ Thus, Lacerda et al. (2010) propose the integrated use of process engineering and
20,6 the Thinking Process of the Theory of Constraints (TP-TOC), pointing out that the
combination of modeling processes and TP-TOC could contribute for obtaining
a systematic view of the problems encountered, and consequently an improved process
redesign. In this way, TP-TOC can contribute to understand the undesired effects
(problems and/or losses) and their prioritization in a systemic and integrated way (Hsu
924 and Sun, 2005; Chakravorty and Atwater, 2006; Kim et al., 2008; Watson et al., 2007).
Lacerda et al. (2010) suggest an approach that allows for the systemic and systematic
analysis of the current processes within organizations through the use of process
engineering and TP-TOC. However, they do not measure the intensity of the problems
and do not advance to an action plan for the elimination of the identified problems.
Within this context, the objective of this paper is to map and analyze the process of
aggregating value in the production of consumer goods. One of the article’s
contributions is the effort of jointly using VSM and TP-TOC in theoretical and
conceptual terms. In the theoretical survey of the proponents, no attempt of joint
utilization of these two approaches has been found in the operations literature. From an
empirical point of view, its importance relies on the identification and suggestion of
improvements in the process. The central issue of this research is to identify how
the combined use of VSM and TP-TOC can assist a company to improve its processes.
The general objective is to analyze the losses and undesired effects in the process of
aggregating value in the company through the analysis of VSM and CRT combining
the two approaches to subsidize decision making. The work that follows first presents
the theoretical framework of the research on VSM, Toyota Production Systems (TPS)
and the TP-TOC. In the second part, the paper proceeds with the presentation of
the case study and concludes with a brief analysis of the results.

2. Theoretical background
As a result of the bibliographical revision, a number of concepts and tools that have
contributed for the understanding of the identified managerial problems and that
orient the work plan within the organization will be presented. Here, only the
conceptual fundamentals that have sustained the research will be shown.

2.1 VSM
Value chain is every action – adding value or not – necessary to produce a product
or service within the flow of work, starting from raw material up to the hands of the
client. Aggregating value is the result of exclusive or specific activities that companies
can develop to raise their efficiency and efficacy instead of an isolated product or
service. Thereby, value is the solution to the client’s problems (Rother and Shook, 2003).
One of the main properties of VSM is to uphold the continuous improvement of the
production system (Rother and Shook, 2003). Originally, VSM was conceived as an
instrument to assist the analysis and improvement of industrial processes. However, its
use did not remain restricted to the linear processes and neither to the shop floor
environment Braglia et al. (2006) propose a new framework for the use of VSM in
non linear and complex productive systems. Coronado and Lyons (2007) suggest the
use of VSM combined to a managerial scorecard in the supply chain. Barber and Tietje
(2008) propose the use of VSM as a way to aggregate value to the sales process. Garrett
and Lee (2011) identify VSM, associated with other lean concepts as a means to
aggregate value to the administrative processes in the construction sector. Bonaccorsi
et al. (2011) adapted VSM and present an approach for the analysis and improvement
of the processes in pure services. Cookson et al. (2011) suggest the application of VSM Theory of
for the elimination of losses in the processes associated to emergency situations in the Constraints
health area. Scalera et al. (2012) suggest the use of VSM associated with the Lean Office
approach to improve operations of services and processes in public administration. Thinking
In this way, VSM can be used in the administrative environment, where it focusses on Process
the information flux and assists in the planning and concentration of the lean activities
in order to reach the planned future state (Tapping and Shuker, 2003). 925
The VSM is a tool that assists in the comprehension of the flow of materials and
information by using a pencil and a piece of paper (Chen and Meng, 2010). In the map,
the basic standard is a flow of a physical product, from left to right; at the bottom of the
map, there is the information flow starting from the order until the product, from right
to left on the upper side.
VSM shows how each process is informed as to when to proceed and what to do
for the client process (the next process), as well as the identification of the material
and information movements (Rother and Shook, 2003). The modeling construction
follows well defined steps, starting from the selection of the product family, followed
by the designs of the current and future state, and finally, the last step involves the
elaboration of a work plan (Clifford and Brian, 2008).
In the VSM, it is sought to highlight the sources of losses and eliminate them by
building a future state that can become a reality in a short period of time. Considering
the value chain, perspective means considering the system as a whole, not just
individual processes or local optimizations (Rother and Shook, 2003). Such perspective
is aligned with the TOC (Goldratt, 1990b, 1994).
The elimination of losses is the main focus of the TPS, having the elimination of
stocks and cost reductions as a consequence, as a way to raise the company’s
competitiveness. The main objective of the TPS consists in enabling organizations to
respond rapidly to the demand fluctuations (Shingo and Dillon, 1989). One of the core
elements for the development of the TPS consists in understanding that the effort for
the improvement in the productive systems has to prioritize a view of the process,
connected to the flow of the materials or services. This vision implies a shift in the
focus of control from people to productive flows.
The pillars that sustain the TPS are JIT and autonomation (Ohno, 1998). JIT means
that, in a flow process, the correct and necessary parts for the assembly will reach the
assembly line at the moment that they are necessary and in the right quantity. JIT
production is a unified philosophy that requires reorganizing the operational activities
so as to minimize activities that do not have added value, aligning operations and
balance them according to the demand ( Joahansson et al., 1993). On one hand, the TPS
is concerned about eliminating everything that does not aggregate value to the
product, while on the other hand it also has to focus on the effort of machinery use,
production lines performance and employees’ improvement. For this reason,
automation is considered to be the TPS’ other pillar (Ohno, 1998).
All these concerns exist in the TPS context because it seeks to create an atmosphere
in which “doing right the first time” becomes the goal, and where quality is projected
and constructed in every activity, instead of being inspected later ( Joahansson et al.,
1993). In this context, the Kaisen activities are essential for improving the processes,
aiming to eliminate losses (Shingo and Dillon, 1989). Also known as continuous
improvement, Kaizen can be seen as a procedure for product and process excellence
(Stewart, 2011). In the context of continuous improvement, the size of each leap is not
important; what is important is the probability of continuous improvement.
BPMJ 2.2 Identification of losses (wastes)
20,6 Losses are operations, utilization of completely unnecessary materials or movements
that create costs, do not aggregate value, which therefore should be eliminated. Losses
have been divided in seven groups: overproduction, transportation, over-processing,
defects, motion, waiting and inventory (Shingo and Dillon, 1989).
The loss from overproduction is seen as the most difficult to be eliminated as is
926 can be hidden in other losses. It is subdivided in overproduction of quantity and
overproduction because of anticipation. In the overproduction of quantity, losses
occur because there is produced a quantity larger than necessary, creating excess of
products or parts. The loss of overproduction because of anticipation occurs when
the products or parts are stocked waiting to be consumed or used in other stages of the
production process raising in this way the financial costs of the company.
For Shingo and Dillon (1989), the phenomenon of transport does not increase the
added work, it merely elevates the cost of performance in the shop floor. Therefore,
transport is an activity that does not aggregate value and as such, it should be one of
the priorities in the efforts of cutting down costs. The loss of transport is associated
with unnecessary transport.
Losses in processing per se, are activities performed during process that can be
eliminated. The elimination of such activity should not affect the product’s basic functions.
Losses from fabrication of defective products is the result of the creation of products
that present some of their quality characteristics below the established quality
standard. For this reason they do not satisfy the requirements of application. During
the production flux, other losses can be generated such as losses in waiting, moving
and stocking among others. Among all losses, this is the one most visible and the one
that most impacts on the client as it can put to risk the programming of quantities to be
delivered as the raw material was consumed and partly wasted.
Losses from movement are related to the unnecessary movements performed by the
operators in the execution of a task. Losses for waiting originate when a time interval
occurs in which no task or operation is executed. Loss from waiting the workers occurs
when the worker needs to remain near the machine following the process from the
beginning to the end. Loss from waiting the machine occurs when a piece of machinery
remains stopped due to delays of raw material supply or due to lack of balance in the
production flux.
Loss by stock occur by excessive maintenance of raw material stocks in the stockage
area or material in the processing of the productive process, or finished products. The
largest barrier for the diminishing of losses by stock is the advantage that stocks
represent in minimizing the synchronization problems among processes. The diminishing
of stocks is the main instrument to achieving lead time. Therefore, for Shingo and Dillon
(1989), in order to reduce lead time one must work on reducing stock losses.
The process improvement is connected with the way how the processing,
inspection, transportation, process waiting and lot waiting phenomena can be
upgraded. From all the above, only processing aggregates value; the rest can be seen as
losses. It is important to distinguish the product flow (process) from the workflow
(operations) and analyze them separately in order to perform significant improvements
to the process (Shingo and Dillon, 1989). Some of the main changes for reaching the
processes improvement are summarized in Table I.
Next, some elements of the TP-TOC will be briefly presented. The aim is not to offer
an exhaustive account on the topic but rather offer a framework of the concepts used
for this research.
Type of improvement Major changes and tools
Theory of
Constraints
Improvement in
processing
It can be potentiated by improving the product itself by means of value
engineering or by improving the manufacturing methods from the production
Thinking
engineering point-of-view. It is possible to obtain substantial improvements Process
when seeking ways to prevent problems from happening, rather than fixing
them after their occurrence
Improvement in In order to attack the root causes of losses due to defective products
927
inspection manufacturing, it is necessary to establish inspection systems to prevent
defects (Poka-yoke), enabling the inspection to be 100% through physical or
mechanical control
Improvement in Real improvements in the handling of materials do not only make the
transportation transportation better through forklifts, transportation ducts and other means,
but also eliminate transportation itself as much as possible. The goal consists
in increasing the production efficiency, which is achieved with the
improvement of the processes layout
Improvement in stock The existence of socks is fundamentally rooted in the lack of synchronization
between processes and may be linked to the global organization of the
productive system. In order to attack the root of this problem it is necessary to
establish a policy that seeks to level the amount, synchronization and the flow
of part unitary, associated to the adoption of small-lots production, being the
Single Minute Exchange of Die (SMED) the main technique that allows it.
The simple elimination of the stock does not solve these basic problems. The
instability causes are what should really be eliminated. As an irregular
production flow (defects, machine breakdowns, excessive preparation time,
etc.) is corrected, the stock will gradually decrease and consequently will be
eliminated. Therefore, effective actions to eliminate stock losses involve
layout improvements, production synchronization tools and tools that
improve the reliability of the production flow Table I.
Elimination of losses
Source: Adapted from Shingo and Dillon (1989) through the improvements

2.3 TP-TOC
The TOC was developed in the 1980s by Eliyahu Goldratt (Goldratt, 1990a), although
its roots can be found in the 1970s with the introduction of the Optimized Production
Technology-OPT software (Goldratt, 1989). It was nevertheless through his book,
The Goal, published in 1984, that the principal heuristics of the OPT were revealed
(Goldratt and Cox, 1984).
The TOC is based on the restriction concept (physical resources, organizational
policies, indicators, market). Constraint is everything that limits the organization from
achieving its goal (Goldratt, 1990a). For the TOC, all systems (the totality of the parts
that interact to attain a certain objective) – for example, companies and social
organizations – have restrictions that limit their growth (Goldratt, 1990a, b). Only an
effective action on restrictions produces an improvement in the system as a whole.
From these initial developments, the TOC has consolidated its principles and
premises in different areas: Costs and Indicators (Goldratt, 1990b); Thinking Process
(Goldratt, 1994); Project Management (Goldratt, 1997); Integrated Management
Systems (Goldratt et al., 2000); Behavioral aspects (Goldratt, 2008); Supply Chain
Management (Goldratt, 2009).
Beyond the aforementioned areas, there is a significant number of work applied in
large companies such as 3M, Amazon, Boeing, Delta Airlines, Ford Motor Company,
General Electric, General Motors and Lucent Technologies, as well as in governmental
BPMJ organizations like Pretoria Academic Hospital, British National Health Service, United
20,6 Nations, NASA, United States Department of Defense (Air Force, Marine Corps and
Navy) and the Israeli Air Force (Watson et al., 2007; Cox and Schleier, 2010).
The evolution of the TOC has been described in various texts (Blackstone, 2001;
Watson et al., 2007; Kim et al., 2008).
Thereby, the TOC has proved to be a viable alternative for the management of
928 productive systems, taking into consideration and advancing on the concepts of the
TPS and of the Mass Production (Goldratt, 2009). For some authors, the TOC is offered
as a general theory in the area of operations management (Gupta and Boyd, 2008).
In this context, the TP-TOC becomes one of the TOC principles. The potential of the
TP-TOC for process analysis is shown in Lacerda et al. (2010), Taylor et al. (2006) and
Taylor and Thomas (2008). However, there is scarce research on the approximation
between the TOC and VSM logics, and in particular with the logic of the TPS Losses
Elimination (Wu et al., 2010).
The TP-TOC is a set of tools that can be used individually or logically integrated.
It is one of the major lines of the TOC (Kim et al., 2008), reflecting on the factors that
impede a system to achieve its aims.
The TP-TOC can be considered as an identification, analysis and problem solving
method (Antunes et al., 2008) that allows the identification of central problems and
the offer of win-win solutions and the overcoming of possible obstacles for the
implementation of the solution (Cox and Schleier, 2010). This process uses a scientific
method that can assist in the comprehension of a complex problem, seeking to reply
questions about what to change, what for and how to create change (Lacerda et al.,
2010). In order to respond to these three fundamental questions, the TOC has
elaborated five tools represented in Table II.
The logic of the TP is based upon the effect-cause-effect relationship and in the
critical vision of reality, which seeks to identify the reason why things happen and not
how they happen (Musa et al., 2005).
This relationship analysis is sustained by the assumption that the undesired effects
exist because of reduced number of causes. The critical view of the reality, on the
other hand, has the objective of verbalizing the assumptions that were adopted in
the construction of the effect-cause-effect relationships and in the preparation of
alternative proposals (Lacerda et al., 2011). These instruments are used to deduce the

Central Question Tools Target

What to change? Current Reality The essential goal of the Current Reality Tree (CRT) is the
Tree – CRT definition of the central problems found in a specific system
What to change Evaporating The Evaporating Clouds aim at verbalizing assumptions that
it into? Clouds – EC cause the central problems, seeking innovative solutions
(injections)
Future Reality The goal is to ensure the effectiveness of the solution and check
Tree – FRT the positive and the negative effects that may arise
How to cause Prerequisite The Prerequisite Tree is used to split the injection well.
the change? Tree – PRT Intermediate goals that must be achieved so that the injection
is implemented are set
Table II. Transition The Transition Tree is responsible for setting up an action plan
Thinking process Tree – TT objective, seeking to eliminate the core problems identified above
of the Theory
of Constraints tools Source: Adapted from Cox and Schleier (2010)
causes from the undesired effects, what has to be made for their correction and how Theory of
corrective actions have to be implemented. Thus, the TP-TOC tools can be applied in Constraints
any type of problem-situation if combined with the intuition and the knowledge of the
people intimately involved with the problem (Kim et al., 2008). Thinking
Thereby, the CRT’s assumption is that all complex systems have an inherent simplicity Process
(Goldratt, 2008). In a complex system with various interconnected and undesired effects
that reinforce themselves, a small sum of basic causes sustains the perceived problems. 929
For this reason, CRT is constructed upon the logic of effect-cause-effect, seeking to
identify the basic causes that sustain the undesired effects (Shoemaker and Reid, 2005).

3. Methodological approach
According to the recommendation of various authors, the qualitative approach has
been as the appropriate one through the analysis of an illustrative case (Edwards, 2001;
Sobh and Perry, 2006). Therefore, it is an empirical investigation on a contemporary
phenomenon in the real life context.
Yin (2011) considers the validity of the theoretical construct as problematic in the
research based upon study cases. In order to increase the validity of the construct three
tactics are suggested (Yin, 2011; Voss et al., 2002):
(1) the use of multiple sources of evidence;
(2) cross-evidence; and
(3) evaluation through key informers (or triangulation).
There were used multiple identification sources for the identification of losses and the
undesired effects. First, direct observation was used for the modeling of the general
situation and to visualize some undesired effects. Second, interviews were used with
different actors involved in the process with the objective to obtain a more precise
evaluation of the aspects observed. Finally, these information were crossed with
information collected from data presented in the managerial information system.
An additional procedure for the CRT was the collective discussion and the logical
validation tests of the CRT. Through the CRT construction it has been made possible to
establish a logic sequence of the undesired effects both perceived and observed is
furthermore based upon sources of evidence that allows different approaches in the
collection and analysis of data, permitting the suggestion of a number of improvements
adapted to the reality of the unit (Yin, 2011). The objective of the research was
exploratory, which is useful when the research questions are vague, helping to
formulate a problem or define it with greater precision, identifying alternatives for
action and obtaining criteria for approaching the problem without the need to elaborate
hypothesis to be tested (Hair et al., 2011).
The collection of data for research in documents, semi-structured interviews,
observation and open experience of the investigators were chosen for this work. The
search for multiple sources of evidence was sought to reinforce the aspects of validity of
the study as recommended by Mentzer and Flint (1997). The target population sample for
the interviews was defined through a non-probabilistic sample where the inclusion or
exclusion of elements in a sample depends on the researcher (Hair et al., 2011).
The criterion used was the relevance of the functional areas of the company that
have some of the information that the research will require, including – as part of the
samples – individuals working in the Planning and Production Control (PPC),
purchasing, engineering, marketing, production, receiving and dispatch areas.
BPMJ An effort has been made through the proposed case study to map the key-processes
20,6 through the VSM technique, proposed by Rother and Shook (2003). The information
was collected by the researchers, going through the choice of family of products and
repeatedly monitoring the whole value stream and starting the dispatching. Thus,
information was collected on each process in addition to the results of the information
obtained through the semi-constructed interviews.
930 Based on this information, a map of the current state was elaborated, followed by an
identification of losses and undesired effects of the process. Thereon, a work plan was
created, proposing actions for achieving the desired goal (the future state proposed).

4. Case unit
The organization that served as the object of the study is a medium sized company of
the automotive industry, located Southern Brazil and with around 400 employees.
It produces original automotive loudspeaker kits and is the supplier for the main
automotive industries of the country, as well as for other clients. In this segment, rapid
delivery is a must for the client. The new products and automotive sound solutions
contribute to the company’s innovative image, especially as far as design and capacity
are concerned.
The company invests in quality and technology in the manufacture process, but it
also has a field return rate and internal reproofs of lots produced considered higher
than the accepted rates of the organization. The internal characteristics of process
synchronization make the production cycle longer, creating a considerable amount of
resources allocated in stocks of raw materials in process.
This scenario is the result of the combination of various factors. Among them, the
immaturity of the quality management system, which contains procedures and
operational instructions with little standardization, relying on the knowledge and
ability of the operators in their work positions. Another factor is the predominant
manual processes and operations, combined with a high labor rotation. In spite of that,
the company manages to maintain its quality; however, with high costs and irregular
time cycles.
Recent legislative changes have reduced the cycle (billing  dispatching).
In addition, the organization is going through an increase in the sales of up to
6 inches of woofers, sold in pairs commonly called “kit,” especially in the original kits
segment, which makes necessary the allocation of additional resources in the sales
department. Some improvements were implemented; however, the organization has been
unable to attend the real demand of the market in terms of model variation and volume.
In order to adapt to this scenario, the company sought to acquire a deep
understanding of the production process, demonstrating concern about the chain’s
long-term losses. Without any alteration in the company’s processes, the problems will
intensify and the “symptoms” will appear in all of the company’s processes. It has been
observed, however, that there is no consensus as to the real cause of the problem.
Besides that, the indicators used to monitor the plant and its growth do not answer the
real production condition, as they are exclusively concerned with the use of resources.

4.1 Selection of the family of products and the map of the current state
This first step is characterized by the identification of the family of products. For this
study, the 6-inch kit of loudspeakers – product “X” – was chosen as the family of
products. The selection criterion has been its share of sales, as it is the product with
the highest volume in the portfolio of the “Y” company, representing 25 percent of the
total volume of kits sales produced by the company. In the current state map, as Theory of
shown in Figure 1, three stages that demonstrate each step of the process have been Constraints
identified.
The first stage is the planning and sales processes. The sales planning begins in the Thinking
commercial area, which consequently originates the buying and production plan. Process
A forecast of monthly sales for a five-month horizon is elaborated based on statistical
data and confirmed client demand, which is adjusted during the month as sales occur. 931
This sales forecast is sent to PPC, which programs the various resources involved in
the productive process. The “Y” client demands have to be billed within four hours
after its execution and dispatched in one business day.
The second stage deals with the process of identifying the needs and acquisitions of
supplies. Upon receiving the sales forecast, PPC details the needs through the Material
Requirement Planning, which informs the purchase orders.
The third stage is linked to the productive process and material warehouse up to the
dispatch. Manufacturing orders issued by the PPC initiate the manufacturing process.
Tweeter assembly processes, screws kit and frame and bung injection are performed
according to the script and stored in the raw materials warehouse. Subsequently, these
components supply the assembly process of the speaker which, in turn, supplies the
final packaging. After the final packing, there is still the end-of-line inspection and then
the approved lot is sent to in the dispatch.

Sales
PCP
Sales forecast
Supplier
Firm orders

Monthly MRP
SUPPLIER
lead time=90 days
daily production orders CICLE 1
CICLE 2 Need for Client
boarding

RECEIVING
CT= 28.800
4 Expedition

DT=52

21
CICLE 3
8,478
IFL
CT=1,200
DT=26

WAREHOUSE ASSEMBLY 1 INJECTION 1 INJECTION 2 ASSEMBLY 2

26
CT=9 CT=40 CT=10 CT= 10
CT=5,400 ET=7,200 ET=5,400 DTC=140
ET=420
DTC=147 DTC=53 DTC=53 DTF=28 ASSEMBLY 3 PACKING
4 DTF=71.5 DTF=125 DTF=125 1
15 1 1 CT=14 CT=168
ET=168 ET=168
DTC=474
15 2
19 2,867 0 15 83
556

PREFINISHED

SUPPLY PREFINISHED

cycle time CT Processing time 1.90 hours

exchange time (setup) ET Production time 90.5 days
Distance traveled by the component DTC DPC 867 meters
Distance traveled by prefinished DTF DPF 349.5 meters
Distance DT Figure 1.
Current state map
Source: Authors (2013)
BPMJ There is a sequence of what has to be produced programmed by the PPC. The
20,6 information that goes to the production line and to the warehouse that supplies the line
is given through the production map and a copy of the production orders to the sectors.
There are two production diaries filled in by the lines. The first one refers to the
number of times the line has stopped, registering the time duration each time the pieces
would not reach the last position. The second diary refers to the scrap and rework
932 control, in which the non-approved pieces in the audio test are registered in a
predefined list that explains the reasons for the rejection or whether the piece was sent
back to the conveyor belt to be worked on again or was disposed as scrap. None of the
diaries contemplate time reductions in the conveyor belt, as time starts counting only
after the conveyor belt is completely deactivated, therefore concealing problems that
create time variation.
The next step consists in analyzing the collected data, pointing out the most critical
items. The identification of the most critical data and their analysis are then
cross-examined with the data collected from the researchers’ observations as well as
with the critical elements pointed out in the interviews (mentioned in the methodology)
based on the verbalization of the undesirable perceptions of those interviewed.
Thus, the data collected along the VSM process were classified, recombining the
quantitative and qualitative findings to address the initial propositions of this study
by using the CRT (Figure 2) as proposed by the TOC. This tool was chosen to assist in
the definition of the central problems found in the system, analyzing and formalizing
these perceptions in effect-cause-effect relations.
Based on the CRT, certain undesired effects can be illustrated. For example, the
line stop times are not always correctly registered, generating errors both as a result
of the manual registry and because of the confusion between what is the cause of the
stop and what are the effects of the line stop, therefore turning the analysis into
a complex issue.
Another important point to be mentioned is the packaging. The identification tags
are printed in the warehouse and sent to the assembly line along with the rest of the
components. In the assembly line, they can be mixed up, torn or lost, thus enquiring
the additional printing of new tags. In the case of pieces that turned into scrap
during the process, or in the case of change in the programming, there might be
leftovers creating unnecessary costs.
In order to better understand these points, the construction of the CRT is presented
next.

4.2 The CRT construction process

The first step to be concluded in the construction of the CRT is the list of undesired
effects that appear in each problem. In this research, these undesired effects were listed
according to Table III. The undesired effects were classified as to the observation
point-of-view, pointing within them the critical points of each of these areas and the
undesired effect associated with each specific critical point.
After having the list of undesired effects concluded and validated through
a discussion with the participants of the CRT construction, the step effect-cause-effect
begins; that is to say, the undesired effects are grouped, originating relationship
segments which give rise to the final assembly of the CRT.
The first segment of the verified relationship in this research is about the undesired
effects related to quality problems, and supplier, product and process development.
In Figure 2, the effect-cause-effect relationships can be observed, starting from basic
 35. There is Theory of
waste on
defective
52. There is a Constraints
lack of semi-
products finished Thinking
production components Process
34. Rework is 51. Raw
necessary material
933
50. There is semi-finished lack
scrap in preparation occurs

49. Raw
material scrap is
generated

48. There is a large number of quality

deviations

56. Other lots

have already been
produced without
46. There are 47. There are the necessary
errors in errors in corrections
product process
specification specification
55. There is a delay in
informing the supplier
of non-conformity
9. The project
development is not
standardized 8. There is a delay in
receiving inspection

4. 70% of the Color codes:

33. There are little components are Figure 2.
reliable suppliers imported Root Cause First relationships
segment of the
Undesired Effect
construction of the CRT
Source: Authors (2013)

causes such as low reliability of the suppliers (emphasizing that 70 percent of the
components used in the production of the family of products is imported) development
of the project.
This CRT segment proceeded in the effect-cause-effect chain, converging into
unwanted effects arising from other underlying causes. Thus, the set of CRT segments
expressed the undesired effect that was the target of the study.
In this segment, the final effects included rework, lack of semi-finished components,
lack of raw material and the visualization of what Shingo and Dillon (1989) and Ohno
(1998): identify; loss by producing defective products.
A second relationship segment can be observed in the human resources case.
Figure 3 reveals the lack of rotation among workstations and the low level of response
 (CRT)
20,6

934
BPMJ

Table III.

Current Reality Tree

List of undesired effects
(UE) for constructing the
Point-of-view Critical points highlighted Effect

Planning and Daily adjustments in production and purchase
production control plans
High levels of scrap and rework
Causes of variations are not fully known
Various scheduling points
Large number of production orders
Uncertainty in stock availability
Little reliable production process
Production released in slack time
Production in lots larger than demand
Variation between sales planned and sales made
Commercial Virtual inventory is used for billing
Uncertainty in meeting the delivery deadlines
Disapproval of lots already finished
Materials Purchasing larger quantities than necessary
Uncertainty as to actual consumption of materials (period)
Supply problems
Excessive time spent in negotiating the replenishment of stocks
Some items planned are not produced to the detriment of other
volumes that arise
Difficulty in synchronizing production to completion of lots
Difficulty in meeting delivery deadlines
Lack of synchronization in the process
Difficulty in adequately controlling the manufacturing orders
Frequent adjustments in production scheduling
Scheduling of small lots with higher costs
High inventory
Inventory increase
Difficulty in fully meeting the production plan
Uneven stock (sometimes low, sometimes above necessary)
Insecurity in sale negotiation
Uncertainty in meeting the pre-scheduled boarding
Inventory increase
Lack of materials to meet the production plan
Inventory lack or excess
Lack of materials to meet the production plan

(continued)
Point-of-view Critical points highlighted Effect

Production Distance between the stock and the material consumption
management point for line preparation
Little efficient board records
Production rhythm reduction
Low response to motivational incentives in the production plant
Ergonomics
Little time dedicated to training
Raw material in non-conformity in line
Waste logic High levels of inventories and unevenness
Distance between the stock and the point of consumption
Manufacturing date stamp in external label
Material leftovers returned to the origin point
Semi-processed parts waiting in line to be processed
Excessive inventory between the operations and the production Waste in stock
released in slack time
High levels of scrap and rework
Operators / suppliers easily tired. High preparation times and released
in slack time, increase in the inventory in preparation, increasing in
internal logistics costs
Difficulty in assessing the sources of variation
Difficulty in meeting the production target
High rates of turnover and absenteeism
Lack of rotation among workstations, need for great physical and
repetitive efforts in the workstations, high rates of turnover and
absenteeism
Most operators are not multifunctional
High levels of scrap and rework
Overproduction in some processes – increase in costs
Time spent in transportation not adding value
Waste in processing itself
Waste in unnecessary movement
Waste in waiting
Waste in manufacturing defective products

Source: Authors (2013)

Constraints
Thinking
Process
935
Theory of

Table III.
BPMJ 35. There is
20,6 waste on
defective
products
production
34. Rework is
necessary
936
33. There are lots of
failures of the finished
products

32. The operators

are not
multifunctional

31. There is
little time
dedicated to
training

10. There are high turnover and

absenteeism indexes

6. There is a
low response 7. Physical and repetitive efforts
to motivational of the operators are identified
Figure 3.
incentives Color Codes:
Second segment of the
process of building Root Cause
2. There is a lack of rotation
relationships CRT –
among workstations Undesirable Effect
questions regarding
hand-work
Source: Authors (2013)

to the motivational stimuli as basic causes. As a consequence, these basic causes have
an impact on rework and the manufacture losses due to defective products.
Another basic cause which sustains the third relationships segment of undesired
effects in the construction of the CRT is the low accuracy of the sales planning as
illustrated in Figure 4. This basic cause, originated from a number of undesired effects
such as the growth of the inventory, stock in process and emission of unnecessary
purchase orders consequently leads toward two more of the seven losses identified
by Shingo and Dillon (1989) and Ohno (1998): the loss by stock, and the loss by
unnecessary movement.
These undesired effects, favored by the distance between the stock point and the
point of line preparation materials consumption, as well as the elevated preparation
 20. There are high preparation
21. The operators /
Theory of
times, released in slack time
suppliers tend to get Constraints
more tired
Thinking
19. Waste
57. Unnecessary
Process
on inventory
movement waste
18. The distance between the occur 937
stock and the material
consumption point for the line
preparation is big

17. There is an inventory

increase
16. There are unnecessary
transportations

15. Unnecessary
purchases are made 14. Material leftovers are
returned to the warehouse

12. There
are material 13. There is a
leftovers lack of raw
materials

11. There is
uncertainty
regarding the
consumption of
materials

5. The planned items are not

produced in detriment of other
volumes that come up
Color Codes
1. There is a variation between sales planned and Root Cause
Figure 4.
sales made
Undesirable Effect Change in sales planning –
the third segment relations
Source: Authors (2013)

time, make operators waste their time. This waste occurs as a result of the
consumption of their time in activities that are not a priority, instead of concentrating
on those tasks of immediate implementation. This situation cases increased stress and
tiredness to the operators and reveals a connection with the second segment of the
relationships previously presented.
In order to conclude these relationship segments, one must observe that the final
undesired effects of each segment have some kind of relationship with one another.
Being so, the undesired effects reinforce the effect-cause-effect relationships and
finalize the last relationships segment of the CRT construction process.
Undesired effects such as the rework, which appears on the first and second
relationship segments, the lack of raw material and semi-finished goods originating
BPMJ from the first segment, the elevated preparation times and released in slack time, plus
20,6 the tiredness of the operators and production line feeders that finalize the third
relationships segment are considered to be the causes of another effect: that of the
variation between the planned time and the real time.
These relationships are expressed in Figure 5, where the origins of the perceived
effects are pointed out (i.e. they were identified so that it would be possible to verify
938 which relationships segment they came from).
As from the variation between the time planned and the real time, this fourth
segment triggered a series of undesired effects that had not been referred yet and
that can be identified as three more waists, according to Shingo and Dillon (1989)
and Ohno (1998): waste in processing per se, overproduction waste losses and waiting
waste.
After this relationship segments’ construction operation, the increase of the
inventory under elaboration and consequently the extended lead time appear as the
main undesired effects identified by CRT.

45. The lead time is long

30. There is waste on waiting 44. There is an inventory increase in preparation

29. There is
overproduction 43. The virtual inventory is
waste used for billing
28. There are pieces in the line to be processed

42. There is
27. The production is released in slack time and larger lots uncertainty in the
sale negotiation 41. There is
uncertainty on
stock availability
26. There is a difficulty in assessing the
sources of variation 40. There is uncertainty in the completion of
deliveries
25. Waste of
processing itself 39. It is more difficult to synchronise the
production
24. The variation causes are
not fully known
37. Date stamp on 38. Reprogramming of the various 54. The extra stock
manufacturing label manufacturing orders in progress replenishment is needed

23. Line rhythm

reduction is not 36. There is variation between the planned time and the real time 53. Adjustments in
22. The
measured the purchase plan
performance is
are necessary
locally
measured

52. There is a
21. The operators / lack of semi-
suppliers tend to get finished
more tired 34. Rework is
necessary components
51. Raw
20. There are high preparation material
times, released in slack time lack
occurs
Effects originated from the third Effects originated from the first and
relationship segment second relationship segments

Color Codes:
Figure 5.
Root Cause
Fourth segment relations
Undesired Effect
of undesirable effects
Source: Authors (2013)
Based on the four relationship segments, it is possible to finalize the CRT, grouping Theory of
these segments into one tree, in compliance with the effect-cause-effect Constraints
relationships, starting from the basic causes to reach the problem to be solved.
In Figure 6, the result of these steps is presented through the design of the final Thinking
version of the CRT. Process
It is possible to realize that the analyzed items are systemically related to each other,
and as such they cannot be understood or analyzed in isolation. 939
The items pointed out as critical by one of the company’s area have impact in other
areas in effect-cause-effect relationships that transcend the departmental barriers.
For example, the physical tiredness of the operators, which technically would be an
ergonomic problem, has an impact on the insecurity of the delivery deadlines of the
commercial area. Thus, it can be said that the proposed changes for problem solving in
one area can offer solutions for other problems of the system as a whole.
Thereby, an analysis of the CRT process offers a detailed representation of the
effect-cause-effect relationships, and makes it possible to focus the efforts of improving
on the points that attack the undesired effects, as well as the wastes of the TPS logic.
Therefore, this structuring presents itself as an instrument for focussing on the
improvement of processes through a wide logical analysis.
After the CRT is structured, the basic causes are grouped for the purpose of being
eliminated for the research problem solution.
To deal with the perceived undesired principle, the basic causes were categorized
into internal and external ones; namely, those that were the result of internal aspects of
the company and those resulted from external factors (market, suppliers, etc.) Table IV
represents this basic causes division.
In order to further the problem solving of the situation under analysis, a map of the
future state has been constructed according to the VSM methodology. The following
section makes the proposal executed explicit.

4.3 Improvement proposal – the “future state” map

According to Figures 1-6, the largest time consumption occurs because of the low
availability of the multifunctional operators, of the long distances and high levels of
rework, followed by the alteration in the process.
In order to facilitate the future state construction, a questionnaire suggested by
Rother and Shook (2003) was answered, which summed up with the rest of the mapped
points and suggested actions, offering the data for the elaboration of the first future
state map. The map demonstrates the process design after the implementation of the
suggested actions visualized in Figure 7.
According to the new proposal, the reduction of the distance that the materials have
to go through and, as a consequence, the external set up time (preparation and
production line feeding) is only possible with the implementation of the kanbans,
which in turn require a layout change in order to become viable.
Besides that, the cellular layout can contribute for short training periods and
for the approximation between the production of semi-finished goods and the point of
consumption, reducing the stock in process. It can also contribute for the reduction
of materials handling costs and control and production planning.
The new production cells would be supplied by supermarkets managed by kanban,
also improving the information flow.
Kanban has to be the regulator of the stock level between the processes, which
will restrict the quantity of pieces circulating without the need for a constant
BPMJ
20,6 45. The lead time is long

30. There is waste on waiting 44. There is an inventory increase in preparation

29. There is
overproduction 43. The virtual inventory is
waste used for billing
940 28. There are pieces in the line to be processed

42. There is
27. The production is released in slack time and larger lots uncertainty in the
sale negotiation 41. There is
uncertainty on
stock availability
26. There is a difficulty in assessing the
sources of variation 40. There is uncertainty in the completion of
deliveries
25. Waste of
processing itself
39. It is more difficult to synchronise the
production
24. The variation causes are
not fully known
37. Date stamp on 38. Reprogramming of the various 54. The extra stock
manufacturing label manufacturing orders in progress replenishment is needed

23. Line rhythm

22. The reduction is not 36. There is variation between the planned time and the real time 53. Adjustments
performance measured in the purchase
is locally plan are necessary
measured

35. There is
waste on 35. There is
20. There are high preparation 21. The operators / waste on 52 There is a
defective
times, released in slack time suppliers tend to get defective lack of semi-
products
more tired production products finished
production components
19. Stock
waste 57. Unnecessary 34. Rework is
movement waste necessary 51. Raw
occur material
18. The distance between the lack
stock and the material 50. There is semi-finished occurs
consumption point for the line scrap in preparation
33. There are lots of
preparation is big
failures of the finished
products 49. Raw
17. There is an inventory material scrap is
increase generated
16. There are unnecessary
transportations
32. The operators 48. There is a large number of quality
15. Unnecessary are not deviations
purchases are made multifunctional
14. Material leftovers are
returned to the warehouse 56. Other lots
have already been
12. There produced without
are material 13. There is a 31. There is 46. There are 47. There are the necessary
leftovers lack of raw little time errors in errors in corrections
materials dedicated to product process
training specification specification
55. There is a delay in
11. There is informing the supplier
uncertainty 10. There are high turnover and of non-conformity
regarding the absenteeism indexes 9. The project
consumption of
development is not
materials
standardized 8. There is a delay in
receiving inspection
5. The planned items are not 6. There is a
low response 7. Physical and repetitive efforts
produced in detriment of other
to motivational of the operators are identified
volumes that come up
incentives
4. 70% of the
2.There is a lack of rotation 3. There are little components are
1. There is a variation between sales planned and
among workstations reliable suppliers imported
sales made
Color codes:
Figure 6. Root Cause
Current Reality Undesired Effect
Tree (CRT)
Source: Authors (2013)
External causes Internal causes
Theory of
Constraints
Low availability of multifunctional manpower High level of rework
High time of replenishment and line preparation
Thinking
Variation between the sales planned and the Lack of rotation among workstations Process
sales performed
Few suppliers are reliable There is a big distance between the replenishment
point and the consumption point
941
70% of the components are imported High work in process
Uncertainty in stock availability Table IV.
Division of the basic causes
Source: The Authors (2013) in internal and external ones

PPC intervention. It will also function as an instrument for the control and adjustment
of production vis-a`-vis consumption variation.
In addition, the visual variation would confer reliability for the commercial area to
negotiate client deliveries, and according to the pulled programming logic, PPC must
feed only one point – the puller process, which in turn will feed the rest, contributing
for the visual management. Packaging should be the puller process as it is the only
point to receive production orders.
Between the packaging and dispatch, it is the only point in which the flow
should be continuous as a way to make PPC viable. Thus, and in accordance
with the redesigned process, it becomes possible to implement the improvement
process that should contribute in the costs reduction, improving times and product and
information flows. The next step is to plan the implementation of the identified
opportunities.

4.4 Implementation plan

The last round of VSM is to prepare and actively initiate by using an implementation
plan that describes how the transition from the current state to a future state is planned.
Table V briefly represents how this transition will take place on a weekly basis.
In addition, there are some implicit points in the implementation plan that deal
with less technical and more human aspects. One of them is that the human factor is
the main differentiating element, being the agent responsible for the success of
any change.
For this reason, the employees’ involvement in the improvement activities is very
important (Stewart, 2011). The flow (lean) should be developed with respect by those
involved, but should not be confused with respect for old habits (Rother and Shook,
2003). In the context of the improvement hereby suggested, an awareness-raising is
necessary; a cultural contamination of the company as a whole, creating an atmosphere
that reinforces the encouragement for breaking paradigms.
Furthermore, many people are involved in the implementation (lean) and all of them
need to understand the mapping of the value flow so as to be able to read the future
state map (Lasa et al., 2008). It is for this reason that the involvement of the human
resources staff is fundamental, as the technical changes will also push the need for
a change in the human side of the flow. Another important factor is that the efforts
for improvement are effective when applied strategically in the context of the
creation of the flow value (Rother and Shook, 2003). This is why the involvement of
the top administration staff is also considered fundamental for the success of the
 20,6

942
BPMJ

Figure 7.
The future state map
PCP Sales
Sales forecast
Supplier Firm orders
MRP

SUPPLIER
lead time = 90 dias daily production orders
cone 3.13.xx

RECEIVING Client
CT 28.800
2

ASSEMBLY 1 Need for boarding

CT 9
ET 420
DTC 147
WAREHOUSE 15

CT 5,400
INJECTION 1
4
CT 40
ET 7,200
DTC 53 ASSEMBLY 3 PACKING IFL Expedition
1
CT 14 CT 168 CT 1,200
ET 168 ET 168 ET
DTC 158 DTC DT 26 DT 52
INJECTION 2 15 2 2
1
CT 10
ET 5,400
DTC 53
1 cycle time CT 1.90 hours
exchange time ET
Distance traveled by the component DTC 616 meters
Distance traveled by prefinished DTF 0 meters
ASSEMBLY 2 Distance DT 78 meters

CT 10
ET 0
DTC 140
1

Source: Authors
 Action Plan – Schedule
Theory of
Id. ACTIVITY
Estimated deployment in weeks Constraints
1 2 3 4 5 6 7 8 9 10 11 12
1 Changing the layout Thinking
1.1 Ergonomic Evaluation Process
1.2 Redesign and approximation of operations
1.3 Quote and buy printer
1.4 Review of work instructions 943
1.5 Operationalization of change
1.6 Training of operators
2 Implementation of kanbans
2.1 Calculation doslotes and cards
2.2 Purchase materials (cards, pictures, etc.).
2.3 Making cards
2.4 Acquisition of the missing parts
2.5 Training of operators
3 Monitoring
3.1 Establishment of controls
3.2 Training of operators
4 Evaluation
4.1 Remap process
12 weeks
Table V.
Source: Authors Work plan

implementation (Lasa et al., 2008), going beyond the budget approval and turning it to
a maximum priority, cutting across the functional and departmental limits.
People have an active role in the implementation of the future state and should feel
benefitted by it. These benefits can come in various ways: as an increase in the
company’s competitiveness, an improved working environment, increased confidence
among employees and administrators, among other benefits, being fundamental that
continuity is achieved in the process of continuous improvement and the achievement
of the expected results through change. Thus, the time table of activities summed to
the observation of the implicit facts of implementation contributes directly to the
achievement of the new map of the process toward the expected results, acting as
a supervisor – as far as the pre-requisites are considered – and as the sequence of
events at the same time.
It is worth mentioning that some factors can affect the result of the plan of final
action. The support of the sponsor of the project and all those involved in change is
fundamental. Beyond of the involvement of the stakeholders a competent management
of change is necessary, respecting the cultural traces of the company and promoting a
high-level involvement of everyone in the process. Even though the proposed approach,
based on CRT dynamics which develops a reflective and collaborative comprehension
of change, change management is still necessary. In the development of the project,
risk evaluations is also necessary to be considered. Therefore, change and risk
management becomes a vital factor of success.

4.5 Analysis of the potential benefits promoted by change

The future state map proposes the improvement of the process, transportation and
stock. As a result of this proposal, it is expected to achieve an improved distribution of
the main production operations. The achievement of simpler flows means larger
easiness to plan and control operations. By the new proposal, PPC starts feeding a
BPMJ single point of programming which helps to rapidly and reliably plan the whole flow in
20,6 accordance with the mix of defined products. While the simplification of the process
reduces the need of productions release in slack time, it also offers primary gains for
the company that go beyond the competitive advantage per se, based on time but also
on costs. This becomes evident not only through the physical effort reduction
workstations but also through the optimization of resources destined to the financing
944 of stocks.
Having stock replenishment limited by the kanban, which has not been
monetarily calculated, the purchase of materials should occur when it is really
necessary and not as a result of a projected sale anymore. This brings a sense of
reliability in the materials area for implementing the purchasing orders along with
reducing the stock levels. This reduction contributes for the effective distribution
of the resources spent, including the reduction of the occupied area (storage),
stockage costs, urgent costs allocation requests, cargo reception costs and other
expenses such as insurance.
Additionally, the reliability of the information of the materials to be purchased,
products to be produced and availability of pieces also contribute for obtaining
secondary gains for the company, such as reliability for negotiating contract deadlines,
something which cannot be measured quantitatively.
Besides costs reduction, the suggested improvement will also bring additional gains
for the production management. The elimination of crossflow, reducing the distance to
go through, minimizes the transfer and the waiting time of sequentially dependent
operations. The introduction of the cellular layout will allow all tasks to be implemented
taking the proximity among cells into consideration, which aims at minimizing
the dislocation costs that do not aggregate value to the product. The information
flow will also improve as people and machines responsible for the implementation
of the cells activities have complete access to the information on the arrangement of
the cells tasks.
An additional result of the research is the structured approach it offers for reducing
dependency upon the manager’s ability for successful conclusion of the project. For
Argyris and Schön (1996), organizations learn when their individual members, or
a significant fraction of it learns. A possible test to confirm whether there has been
organizational learning is the performance of the new action under observation. It can
be concluded that the research has managed to reach a better result in the organization
in which it was applied. However, it has not been made possible to observe an action
conducted solely from the members of the organization.
There are also secondary gains, such as improved quality of life in the working
environment, as the reduction of the distance besides the elimination of the loss by
movement will also bring improvement in the ergonomic conditions, contributing for
the construction of a safe and healthy environment. This process restructuring also
tends to bring an increase in the employees’ satisfaction, caused by the tendency of
change in the business mentality which perceives them as partners that should be
respected and mainly heard in the decision-making process. Therefore, the
organizational climate improvement can also bring a rise in productive efficiency.

5. Final considerations
The case unit of this research faces problems in its productive process that result in a
non-reliable, inflexible, unpredictable and slow production cycle, having elevated
stocks and delivery delays as a consequence. Thus, the objective of this paper was to
analyze the productive process of this company and propose an improvement plan. Theory of
The study presented improvements that made the reduction of the total lead time Constraints
possible, as well as a more reliable and predictable productive process in terms of
delivery, having a reduction of the stock in process as a consequence. Therefore, the Thinking
suggested improvements – although not intended to resolve all the production Process
problems of the company or to implement a complete production model proposed by
the TPS or the TOC – represent small steps toward a mentality for lean process 945
improvement. From the analyzed organization point-of-view, the approach has proved
to be sufficient for the creation of a consensus of the problems to be resolved. In this
way, it has been possible to concentrate the improvement efforts to the topics that will
potentiate the elimination of the observed undesired effects.
In theoretical terms, this paper has contributed by illustrating a combination of
the VSM and the TP-TOC. On the one hand, VSM contributes for the structuring of the
productive process and for the identification of losses that occur in its implementation.
Another important aspect is the representation of the information flow that mobilizes
the productive process in order to implement its objectives. On the other hand, the
TP-TOC contributes for the analysis of this productive process in various aspects.
First, the collective elaboration of the CRT allowed the construction of a common vision
of the associated problems in the analyzed productive process. Second, the
construction of effect-cause-effect relationships allowed a wide understanding of the
perceived problems. Third, starting from the identification and measurement of wastes
through the VSM, it has been possible to comprehend which are the basic causes that
sustained the problems. In this way, if VSM was used in an isolated way, the real
causes that sustained the wastes would not have been revealed.
In order to highlight the results and implications of this research some points have
to be considered which are relevant in this work. The first point deals with the
convergence structure of CRT. According to Cox and Schleier (2010), there are
innumerous actions in the system that will contribute for the improvement of its
performance, however, there is not enough time, money or available resources to
implement all these actions. Furthermore, for Cox and Schleier (2010), this vision
was broken by Pareto with his 80-20 rule in which he proved that 20 percent of the
elements contribute for 80 percent of incidences. In this way, as not all action can be
implemented, it is important to have focus.
It is important to note that the Pareto rule is only correct when there is no
interdependence and variability among the elements of the system. In organizations
there are innumerous interdependent and variable relations among elements
however, only a small part of these elements define their functioning: the restrictions.
Using Pareto’s vocabulary (Goldratt, 1990b) and Cox and Schleier (2010) affirm that
in organizations, 0.1 percent of the elements dictate 99.9 percent of the results.
It is within this context that the usage of the CRT presents itself as a useful
instrument for focus. Mapping a long value chain can result in focus loss. CRT has the
power to evidence the political or managerial restrictions that other traditional
improvement instruments would not identify following Goldratt’s 0.1-99.9 rule.
The use of CRT without VSM would allow for the definition of a supreme undesired
effect not necessarily supported by facts and data without a more accurate analysis
of the intensity of the problem. The construction process of the CRT has created
knowledge in the group and contributed for prioritizing (focussing) and formulating
the action plan. It is interesting to notice that these aspects were not encountered in
similar work.
BPMJ From VSM’s side, it offered the necessary basis for a systematic analysis of the
20,6 process. This systematic methodology of structuring the productive process allowed
the identification of the wastes to be dealt with recognized by CRT. Besides that, the
measured wastes contributed for bringing to the surface and sustaining the undesired
effects beyond individual perceptions. In this way, the combined use of the VSM and
the TP-TOC seems promising. Nevertheless, other studies will be necessary to confirm
946 or refute the results identified in this research. In terms of future studies it is suggested
that a combined implementation of VSM with the TP-TOC is applied in other processes
and industries for a validation in other environments. Another aspect that is worth
mentioning is the need for more research aligned with the Mode 2 (Gibbons et al., 1994).
This research represents an attempt to produce knowledge (Mode 2) as presented by
Gibbons et al. (1994). Another possibility the research offers is the evaluation of the
results of the joint application of the Thinking Process of the TOC along with other
approaches. This kind of research could contribute for the improvement of the
understanding of the benefits and limitations of its use. Thereby, a research to apply
the process of focussing the TOC on the design of the VSM future state map seems
relevant. Another item revealed is the need for similar studies that replicate the
approaches hereby used, so as to allow comparison and advancement of this combined
use of theories.
A future study will consist in the need of a systemic comprehension of the TPS
wastes logic, as this paper sought to make a first attempt of the joint utilization of these
approaches – which in spite of its limitations, presents a promising perspective for
future studies.

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Corresponding author
Dr Daniel Pacheco Lacerda can be contacted at: dlacerda@unisinos.br

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