Mappping Outsourced Activities in Value Stream Mapping

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Mappping Outsourced Activities in Value Stream Mapping
Dana Kristova, Member
Hi everybody, I would need an advice concerning the mapping of an outsourced activity in the production of one company where I'm working on my thesis. I haven't found any information about how to map the value stream when the production isn't all done in one company. In my case, the original company starts to work on the product and because it's the smaller one, the product is then transported to another company which has the needed equipment for the operation needed. Then the product is transported back to the original company. I would like to know how to map this flow.
If you have any experience with some similar case or if you have any ideas concerning how to map this, I would be very grateful for them. Thanks for your comments!

Mapping Outsourced Activities in VSM
Sandeep Ashtekar, Member
Dana, before jumping into VSM, you need to look into what business process are you trying to improve or needs improvement. From what you have mentioned, it looks like OTR along with various activities around supply chain management. Once you identify these processes at high level, you will find multiple sub processes under them that will be the issue you intend to tackle. In your case, order placement, forecasting, planning, replenishment, transportation and logistics seem to be processes that need to be considered. You can also refer to SCOR methodology.
For your case, please have a look on implementing JIT and Kanban that will help eliminate waste and unwanted inventory.



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