Operational Excellence - Business Value Stream Map and Improvement Identification
Michelle_Michy
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Assignment Type: Individual: Group:
Course: BOAPB Stage/year:
Module: OPERATIONAL EXCELLENCE
Study Mode: Full-time: Part-time:
Lecturer Name: FINBARR SHEEHY
Assignment Title: Business Value Stream Map and Improvement Identification
No. of Pages: 7 Word Count:
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Overview
The chosen company provides linen rental and laundry services. Customers are mainly the hotels and B&Bs in West Cork and Kerry, within no more than ninety minutes drive away distance. That ensures flexibility and ability to meet all customer's needs, even for unexpected and non-scheduled deliveries.
Company's core business includes the linen renting and collecting it from the customer after using, for washing, drying, folding and packaging for the next delivery. From the wide range of different linen products the company offers, analysis has been made for the group of bedroom and bathroom linen. The customer is a busy hotel in West Cork with a demand for delivery of 500 units per week. Deliveries are made with the company's own van twice weekly. Work takes place in one shift, 8,5 hours with a lunch break for 30 minutes, from Monday to Friday, with occasional overtime.
WORKING SHIFTS PER DAY
HOURS PER SHIFT
LUNCH TIME PER SHIFT
CUSTOMER DEMAND PER DAY
AVAILABLE TIME PER SHIFT
NET WORKING TIME PER SHIFT
DOWNTIME PER SHIFT STEAMER
DOWNTIME PER SHIFT WASHING MACHINE
Process Data
1
8,5
30 min
100 units
510 min
480 min (28 800 s)
60 min
30 min
NET WORKING TIME PER SHIFT CUSTOMER DEMAND
TAKT TIME =
= 288 s/unit = 4,8 min/unit 1
H O
TE L
IN W
E S
T C
O R
K
P LA
N N
IN G
S U
P P
LI E
R 1
S U
P P
LI E
R 2
P R
O D
U C
T IO
N
W A
S H
IN G
C /T
= 50
m in
C /O
= 70
m in
U P
TI M
E : 9
8%
Y IE
LD : 6
0
O P
E R
AT O
R S
: 1
D R
Y IN
G /
FO LD
IN G
C /T
= 20
m in
C /O
= 60
m in
U P
TI M
E : 9
5%
Y IE
LD =
60
O P
E R
AT O
R S
: 3
PA C
K IN
G IN
B A
G S
C /T
= 15
m in
Y IE
LD =
30
O P
E R
AT O
R S
: 1
D E
LI V
E R
Y
C /T
= 90
m in
O P
E R
AT O
R S
: 1
S O
R TI
N G
C /T
= 30
m in
O P
E R
AT O
R S
: 1
I
Tr an
sp or
t t o
w as
hi ng
m
ac hi
ne / L
oa di
ng
1 O
P E
R AT
O R
15 m
in
I
U nl
oa di
ng /
Lo ad
in g
1 O
P E
R AT
O R
3 m
in
I
P re
pa rin
g P
la st
ic
B ag
s 1
O P
E R
AT O
R 1
m in
I
Va n
Lo ad
in g
1 O
P E
R AT
O R
50 m
in
D A
IL Y
D A
IL Y
D A
IL Y
D A
IL Y
S H
IP P
IN G
S C
H E
D U
LE
O R
D E
R :
M at
er ia
l 1 : L
au nd
ry D
et er
ge nt
Q ua
nt ity
: 5 0
l M
at er
ia l 2
: B le
ac h
Q ua
nt ity
: 1 0
l
O R
D E
R :
M at
er ia
l: P
la st
ic B
ag s
Q ua
nt ity
: 2 00
D A
IL Y
D irt
y Li
ne n
C ol
le ct
io n
W E
E K
LY
I
U nl
oa di
ng 15
m in
1 op
er at
or
W E
E K
LY S H
IP P
IN G
on W
ed ne
sd ay
an d
Fr id
ay
C U
S TO
M E
R D
E M
A N
D P
E R
W E
E K
D ou
bl e
D uv
et C
ov er
s 10
0 S
in gl
e D
uv et
C ov
er s
20 0
B at
h S
he et
s 20
0
60 m
in
50 m
in
3 m
in
20 m
in
1 m
in
15 m
in
14 0
m in
Pr od
uc tio
n Le
ad T
im e:
1 94
m in
Va lu
e A
dd ed
T im
e: 8
5 m
in Pr
oc es
s C
yc le
E ffi
ci en
cy : 4
3, 8%
TA K
T TI
M E
: 4,
8 m
in /
un it
W E
E K
LY
O R
D E
R S
W E
E K
LY
O R
D E
R S
W E
E K
LY O
R D
E R
S 50
0 un
its p
er w
ee k
C U
R R
EN T
ST AT
E VA
LU E
ST R
EA M
M A
P FO
R L
IN EN
S ER
VI C
E C
O M
PA N
Y IN
C O
R K
2
Analysis
After mapping the current value stream for the chosen product group, it is possible to identify the waste in the process. There are many lean tools for eliminating waste and creating the flow of the process. The first key principle of the lean process approach is to identify the value and define it by the customer's need.
In our case, the hotel in West Cork expects delivery of 500 units (duvet covers, bath sheets), clean, folded and packed. Delivery is made on Wednesday and Friday upon customer's request.
Looking at the current VSM of the company process, it’s visible where are the bottlenecks of the process. Two phases of the process have non-value added times longer than expected:
Transporting sorted linen to the washing machine (15min) Preparing delivery and loading the van (50min)
Identifying the
bottlenecks in the
process
Analyse actual times required to perform different tasks of the process
Define the waiting time before each step
See how many operators are involved at each process step
Define the inventory between last operation and the customer
3
Low Value Added
Activities
People are moving to much around
trying to find something
No capacity for
improvments
Activities are not synchronized, there’s waste
of time
Problems in material transport
Lack or excess
of stocks
The first step will be to identify why those phases appear to be so long and then apply some tools to improve the process. The application of Lean Six Sigma tools in service companies is focused on decreasing non-value added tasks, reducing deadlines for delivery while keeping the quality of the service.
PROJECT 1 Current State Transporting sorted linen to washing is non-value added activity of 15 min. When the driver arrives at the site, he unloads the van at the entrance of the warehouse. Laundry operator sorts the linen. Trollies are needed to transport the linen to the washing machine. Trollies are outside, so the operator needs to bring them in first, then load the sorted linen and transport the trollies to the other side of the warehouse. The washing station is 120m away from the sorting point, which results in such a long time for the activity.
4
Future State Sorting will be relocated and will be part of the laundry unit. The driver will unload the bags directly into the trollies and the laundry operator will transfer them to a new sorting area. Time taken for the job should be decreased to from 15min to 3min(80%).
Unloading
S or
tin g
Drying/ Folding
Washing
Packaging S
to ra
ge I
Trollies
12 0m
Unloading
Sorting
Drying/ Folding
Washing
Packaging
S to
ra ge
I
Trollies
Delivery
5
PROJECT 2 Current State Operations on the steamer require 3 people. Two operators are needed for inserting wet duvet cover into the steamer and one operator is on the opposite side, taking out dried and folded duvet. The goal is reducing the number of operators in this part of the process.
Future State Special extension part of the steamer which facilitate inserting has been shown as a good investment. It will reduce number of operators in drying and folding process from 3 to 2.
PROJECT 3 Current State There is a problem during the process of packaging because one operator is not enough to pack the clean linen in time, so the delivery operator needs to wait too long and he’s not able to load complete order for the shipping.
Future State The third operator from the steamer will be transferred to the packaging area, sothere will be 2 operators in the future to prevent a delay in delivery. Non-value added time goes from 50 min to 15min.
PROJECT 4 Current State The company had complaints from the customer regarding torn plastic bags which caused dirtiness on delivered products. That’s not acceptable and needs to be addressed immediately.
Future State Till the end of the year plastic bags will gradually be replaced with textile bags. With textile bags there will be no tearing and order will reach the customer safe and clean. Textile bags can be used multiple times, so the investment is based on the cost reasonableness.
6
H O
TE L
IN W
E S
T C
O R
K
P LA
N N
IN G
S U
P P
LI E
R 1
S U
P P
LI E
R 2
P R
O D
U C
T IO
N
W A
S H
IN G
C /T
= 50
m in
C /O
= 70
m in
U P
TI M
E : 9
8%
Y IE
LD : 6
0
O P
E R
AT O
R S
: 1
D R
Y IN
G /
FO LD
IN G
C /T
= 20
m in
C /O
= 60
m in
U P
TI M
E : 9
5%
Y IE
LD =
60
O P
E R
AT O
R S
: 2
PA C
K IN
G IN
B A
G S
C /T
= 15
m in
Y IE
LD =
60
O P
E R
AT O
R S
: 2
D E
LI V
E R
Y
C /T
= 90
m in
O P
E R
AT O
R S
: 1
I
Tr an
sp or
t/ Lo
ad in
g
1 O
P E
R AT
O R
3 m
in
I
U nl
oa di
ng /
Lo ad
in g
1 O
P E
R AT
O R
3 m
in
I
P re
pa rin
g P
la st
ic
B ag
s 1
O P
E R
AT O
R 1
m in
I
Va n
Lo ad
in g
1 O
P E
R AT
O R
15 m
in
D A
IL Y
D A
IL Y
D A
IL Y
D A
IL Y
S H
IP P
IN G
S C
H E
D U
LE
O R
D E
R :
M at
er ia
l 1 : L
au nd
ry D
et er
ge nt
Q ua
nt ity
: 5 0
l M
at er
ia l 2
: B le
ac h
Q ua
nt ity
: 1 0
l
O R
D E
R :
M at
er ia
l: P
la st
ic B
ag s
Q ua
nt ity
: 1 00
D A
IL Y
D irt
y Li
ne n
C ol
le ct
io n
W E
E K
LY
I
U nl
oa di
ng
15 m
in 1
op er
at or
W E
E K
LY S H
IP P
IN G
on W
ed ne
sd ay
an d
Fr id
ay
C U
S TO
M E
R D
E M
A N
D P
E R
W E
E K
D ou
bl e
D uv
et C
ov er
s 10
0 S
in gl
e D
uv et
C ov
er s
20 0
B at
h S
he et
s 20
0
48 m
in
50 m
in
3 m
in
20 m
in
1 m
in
15 m
in
10 5
m in
Pr od
uc tio
n Le
ad T
im e:
1 57
m in
Va lu
e A
dd ed
T im
e: 8
5 m
in Pr
oc es
s C
yc le
E ffi
ci en
cy : 5
4, 1%
TA K
T TI
M E
: 4,
4 m
in /
un it
W E
E K
LY
O R
D E
R S
W E
E K
LY
O R
D E
R S
W E
E K
LY O
R D
E R
S 50
0 un
its p
er w
ee k
FU TU
R E
ST AT
E VA
LU E
ST R
EA M
M A
P FO
R L
IN EN
S ER
VI C
E C
O M
PA N
Y IN
C O
R K
h 1 S
O R
TI N
G
C /T
= 30
m in
O P
E R
AT O
R S
: 1
h 2
h 3
h 4ORDER :
M at
er ia
l: Te
xt ile
B ag
s Q
ua nt
ity : 1
0 S
U P
P LI
E R
3
7
