ABSTRACT
This chapter looks at how to conduct a performance assessment of professionals' supply chain to establish a baseline, and quantitatively and qualitatively assess the gaps in supply-chain optimization. A good initial point to start the assessment would be Value Stream Mapping (VSM). VSM is the mapping of the flow of material, product, and information through each value stream. A value stream is a sequence of activities required to produce and supply a specific good or service. One of the goals for supply-chain optimization is to create uninterrupted flow throughout the value stream, from external suppliers to external customers. Uninterrupted flow is achieved by minimizing work-in-process, minimizing waiting and queues, utilizing visual management to minimize the physical flow of information, while striving for one-piece product flow. The value stream analysis revealed that the assembly line’s performance is hindered by parts shortages.
