Astana IT University

Value Stream Mapping

Course name: Business process engineering

Group: ITM-2204
From: Liana Rakhimzhanova, Madina Turgumbay, Diana Zhakupova
To: Mohamed Ibrahim

Astana
2024
 1. Value Stream Map:

1. Use your chart to highlight potential areas of waste. Augment your chart with waste
symbols.
2. Where are the most urgent matters to address with regards to waste?
3. What is the ratio between value added and non-value added time?
4. How could the ratio be improved?
5. What is the takt time and how does this help to recognise waste?
6. What is the total quality rating for this process?

2. Urgent Matters:
Waiting Times: The excessive waiting times between stages are the most urgent waste to
address. They contribute significantly to the long lead time and impact customer satisfaction.
Quality Issues: Defects at various stages add quality costs and delay shipments. Improving
quality control throughout the process is crucial.

3. Value Added vs. Non-Value Added Time:

Process Time (VA): 93 mins (3 + 10 + 15 + 25 + 40)
Waiting Time (NVA): 30 hours (1 + 2 + 4 + 2 + 24)
Ratio: VA/NVA ≈ 0.003 or 0.3
1 ratio: 3/0=infinitely
2 ratio: 10/60= 0.16
3 ratio:10/120=0,08
4 ratio: 15/240=0,0625
5 ratio:25/120=0,20
6 ratio: 40/1440=0.028
This highlights a very low proportion of value-added activity compared to non-value added
waste.

4. Improving the Ratio:

● Reduce waiting times by streamlining the workflow, using pull systems, and
addressing resource constraints.
● Improve quality control to minimize defects and rework.
● Implement automation and lean manufacturing principles to eliminate unnecessary
steps and optimize material handling.

5. Takt Time and Recognizing Waste:

Takt time for 42 orders/day and 14 hours work time: 20 minutes/order (14 hours * 60 minutes
/ 42 orders)
Takt time helps identify non-value added activities that exceed the available time for each
order.
The current lead time (34+ hours) significantly exceeds the takt time, indicating waste and
inefficiency.

6. Takt time is the time it takes to finish a product to meet demand. For example, if a
customer orders a new product every hour, the team needs to finish it in an hour or less. That
means the takt time must be less than an hour. If the team takes longer than an hour (the cycle
time), then the process will need to be streamlined or minimized in order to align with the
takt time.

7. Total Quality Rating:

Average quality percentage across stages: (98 + 100 + 94 + 98 + 100 + 98) / 6 ≈ 97.3%.
While seemingly high, the defects still contribute to significant quality costs and delays.
Continuous improvement in quality control is necessary.