Evaluation of Value Stream Mapping Application in Pasta Manufacturing: A Case Study of Golden Pasta Company, Lagos

Abstract

Over the years manufacturing industries faced persistent increase in global competition to the extent that most industries find it difficult to make profits. This unfavorable trend in global competition coupled with high costs of production were responsible for the new trend in business. In order to survive in today’s fiercely competitive market, and remain profitable while producing at a lower cost, many manufacturing outfits started thinking on the best way to eliminates wastes through the lean methodology. This work evaluated the application of lean approach of wastes elimination through the application of Value Stream Mapping (VSM) techniques. The manufacturing operations of Fava Long Goods 3 (FLG3) production line of Golden Pasta Company (GPC) was carefully understudied. Data collected from the company’s Enterprise Resource Planning system (ERP) and shop floor including feedback from the customers were analysed and evaluated. The results of the evaluation of these data were used to derive the Value Stream Mapping parameters for the developing the current state map and exposure of pasta manufacturing activities that accumulated to wastes generation. A Kaizen Blitz, a lean improvement workshop was held at the workplace where improvement suggestions were made towards the elimination of the wastes. The improvement suggestions were approved and implemented using a series of Value Stream Mapping techniques such as 5S, Kanban pull system, Supermarket pull system, Single Minute Exchange of Die (SMED), Kaizen idea sheet, Lean implementation tracking sheet and root-cause analysis to remove all the identified wastes. The results of the lean implementation showed that Production Lead Time (PLT) was massively reduced from 34.4 hours to 5.04 hours with a 85.3% waste reduction. A practical approach of implementing the value stream mapping, using Microsoft Visio 2016 software was suggested. An actual cost savings of N158, 515,200 was realised after third quarter (nine months) of lean implementation between September 2016 and June 2017. This was revealed in the Financial Statements of Accounts approved by the General Manager/Director of the Golden Pasta Company.