Level7BAOEAssignment20201 level7bamodelanswer
Operational Excellence – Business Value Stream Map and Improvement Identification
1
Lecturer Name: Finbarr Sheehy
Subject: Level 7 BA in Pharmaceutical Business Operations – Operational Excellence
Assignment Title Operational Excellence – Business Value Stream Map and Improvement Identification
The learning outcomes for this module are as follows,
1. Discuss the key principles that define business success in any organisation.
2. Define the principles and applications of lean thinking and the associated tools used to create value and
eliminate waste in a defined process.
3. Map typical processes from start to finish and identify critical activities & parameters (cycle times, yields,
etc.) for each aspect of the process.
4. Define the principle of the six-sigma methodology and the associated tools used to identify root cause,
eliminate defects and reduce variation in an existing process.
5. Describe the concept of corrective action preventative action (CAPA) and correctly apply the
methodology to the pharmaceutical industry.
6. Correctly utilise concepts of data visualisation to analyse, understand, trend and present data in a coherent
manner.
The learner will identify a business that they are familiar with and develop a value stream map of a specific
product line for that business. They will identify areas of value and non-value, citing typical measures that are
appropriate for that business. The learner will finally identify potential lean tools and solutions that will optimise
the process.
Assignment Details Percentage
In Excel, construct a Value Stream Map of a business process. This process can be
of your own choosing but must outline the following items,
❑ Details of the Customers
❑ Details of the Customer Requirements – Quantities, Frequencies,
Deliveries
❑ Demands defined of the Suppliers
❑ An outline of the internal process flow
❑ For each process step outline some critical parameters, examples could
include duration, inventory, yield, wastage, resources, etc.
❑ An identification of Value-Add Activities and Non-Value Add Activities
❑ Details of Customer deliveries
40%
2
❑ Identify some potential improvements in the Value Stream based on your
observations. These improvements can relate to the lean wastes or process
instabilities or errors. Provide some evidence that supports your reason for
improvement. This evidence can be estimated data, observations, blockages,
delays, excess inventory,
etc.
20%
❑ Pick two areas you identified for improvement and suggest how improvements to
these processes could be implemented using the lean tools of 5S, SMED, Kanban,
error proofing or otherwise. The use of Process mapping would also be important
to define the process before and after the improvement.
30%
❑ Redraw the overall Value Stream Map with the improvements implemented and
indicate the potential benefits that these changes could make to the overall Value
Stream.
10%
Word/Page
count:
Overall Assignment is 5- 10 pages Total %: 50% of marks for OE module
Submission
details:
Submit softcopy of assignment on Moodle. Assignment can be submitted as a single
document or as multiple documents.
Additional
Information:
Marks Awarded for under the following headings:
Clarity of the Value
Stream
Map (VSM)
Clarity on potential
improvements
Clarity on
application of Lean
Tools and
Methods
Clarity on the
Revised VSM
40 20 30 10
Learning outcomes addressed and assessed in this assignment:
1. Define the principles and applications of lean thinking and the associated tools used to create value and
eliminate waste in a defined process.
2. Map typical processes from start to finish and identify critical activities & parameters (cycle times, yields,
etc.) for each aspect of the process.
3. Define the principle of the six sigma methodology and the associated tools used to identify root cause,
eliminate defects and reduce variation in an existing process.
4. Correctly utilise concepts of data visualisation to analyse, understand, trend and present data in a coherent
manner.
3
Grading Scheme for the Assignment
Criteria
Descriptor
Clarity of the Value Stream
Map (VSM)
Clarity on potential
improvements
Clarity on application
of Lean Tools and
Methods
Clarity on the
Revised VSM
Weighting to
total 100
40 20 30 10
80-100
Great clarity in the
explanation of the
proposed value stream.
The VSM is well
constructed and described
in a language that is
understood. The VSM has
excellent detail in terms of
it components – customer,
product/service, process
steps, measurements and
symbols. Extensive
evidence of reading of top
quality sources.
Great clarity in the
explanation of potential
improvements in the
VSM. The improvements
are relevant and
described in a language
that is understood. The
benefits of such
improvements are well
documented and well
researched.
Great clarity in the
explanation of how
the lean tools could
be utilised to make
improvements in the
VSM.
A wide range of tools
are identified and
the improvements
are explained in
detail.
Exceptional clarity
on the presentation
of the
revised VSM.
Benefits are
demonstrated, and
impacts illustrated
in the VSM.
70-79
Very good clarity in the
explanation of the
proposed value stream.
The VSM is well
constructed and described
in a language that is
understood. The VSM has
very good detail in terms of
it components – customer,
product/service, process
steps, measurements and
symbols. Very good
evidence of reading of top-
quality sources.
Very good clarity in the
explanation of potential
improvements in the
VSM. The improvements
are relevant and
described in a language
that is understood. The
benefits of such
improvements are well
documented and well
researched.
Very good clarity in
the explanation of
how the lean tools
could be utilised to
make improvements
in the VSM.
A
range of tools are
identified and the
improvements are
explained in detail.
Very good clarity
on the presentation
of the revised VSM.
Benefits are
demonstrated, and
impacts illustrated
in the VSM.
60-69
Good clarity in the
explanation of the
proposed value stream.
The VSM is well
constructed and described
in a language that is
understood. The VSM has
very good detail in terms of
it components – customer,
product/service, process
steps, measurements and
symbols. Very good
evidence of reading of top-
quality sources.
Good clarity in the
explanation of potential
improvements in the
VSM. The improvements
are relevant and
described in a language
that is understood. The
benefits of such
improvements are well
documented and well
researched.
Good clarity in the
explanation of how
the lean tools could
be utilised to make
improvements in the
VSM.
A range of tools are
identified and the
improvements are
explained in detail.
Good clarity on the
presentation of the
revised VSM.
Benefits are
demonstrated, and
impacts illustrated
in the VSM.
51-59 The explanation of VSM is
clear but needs some
interpretation and
simplification. Some
elements of ‘cut and paste’
evident in the explanation.
The model is referenced
from sources, some of
which are
considered of
good quality.
The explanation of the
potential improvements
is clear but needs some
interpretation and
simplification. Some
elements of ‘cut and
paste’ evident in the
explanation. The
benefits of such
improvements are well
referenced from some
limited sources.
Reasonable clarity in
the explanation of
how the lean tools
could be utilised to
make improvements
in the VSM. A limited
range of tools are
referenced and the
improvements are
explained.
Reasonable clarity
on the presentation
of the revised VSM.
Benefits are
demonstrated but
are generic in
nature.
4
Criteria
Descriptor
Clarity of the Value Stream
Map (VSM)
Clarity on potential
improvements
Clarity on application
of Lean Tools and
Methods
Clarity on the
Revised VSM
Weighting to
total 100
40 20 30 10
40-50 The explanation of VSM is
provided but needs some
interpretation. Strong
elements of ‘cut and paste’
evident in the explanation.
The VSM is referenced
from limited sources, some
of which are considered of
reasonable quality.
The explanation of the
potential improvements
provided but needs
some interpretation.
Strong elements of ‘cut
and paste’ evident in the
explanation. The
benefits are referenced
from limited sources,
some of which are
considered of
reasonable quality.
Adequate clarity in
the explanation of
how the lean tools
could be utilised to
make improvements
in the VSM. A very
limited range of tools
are
referenced and
explained.
Adequate clarity
on the presentation
of the revised VSM.
Some limited
benefits are
demonstrated but
are generic in
nature.
31-39 The explanation of VSM is
poorly provided.
Significant elements of ‘cut
and paste’ evident in the
explanation.
The model is referenced
from extremely limited
and/or unknown sources,
blogs articles, Wikipedia,
etc.
The explanation of the
potential improvements
is poorly provided.
Significant elements of
‘cut and paste’ evident
in the explanation. The
elements are referenced
from extremely limited
and/or unknown
sources, blogs articles,
Wikipedia, etc.
Poor clarity in the
explanation of how
the lean tools could
be utilised to make
improvements in the
VSM. Very limited
range of tools are
referenced and
explained.
Poor clarity on the
presentation of the
revised VSM. Some
limited benefits are
demonstrated but
are generic in
nature.
0-30 The explanation of VSM is
unclear with no evidence of
research and explanation.
Significant evidence of ‘cut
and paste’ in the
explanation. A significant
lack of references of quality
or relevance.
The explanation of the
potential improvements
is very poorly provided.
Significant elements of
‘cut and paste’ evident
in the explanation. The
elements are referenced
from extremely limited
and/or unknown
sources, blogs articles,
Wikipedia, etc.
Very poor clarity in
the explanation of
how the lean tools
could be utilised to
make improvements
in the VSM. Very
limited range of tools
are referenced and
explained.
Very poor clarity
on the presentation
of the revised VSM.
Some limited
benefits are
demonstrated but
are generic in
nature.
Pleasenote: Students MUST retain a hard/soft copy of ALL assignments as well as a receipt issued and
signed by a member of Faculty as proof of submission.
Innopharma Education
Assignment Cover Sheet
Learner name:
Student Number:
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:
Uploaded to Moodle: Yes: No:
Additional Info:
Date due:
Date submitted:
Plagiarism disclaimer:
I/We understand that plagiarism is a serious offence and have read and understood the college policy on
plagiarism. I/We also understand that I/We may receive a mark of zero if I/We have not identified and
properly attributed sources which have been used, referred to, or have in any way influenced the
preparation of this assignment, or if I/We have knowingly allowed others to plagiarise my/our work in this
way.
I/We hereby certify that this assignment is my/our own work, based on my/our personal study and/or
research and that I/we have acknowledged all material and sources used in its preparation. I/we also
certify that the assignment has not previously been submitted for assessment and that I/we have not
copied in part or whole or otherwise plagiarised the work of anyone else, including other students.
Signed & dated:
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
5
00
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
3
0 minutes,
from Monday to Friday, with occasional overtime.
WORKING SHIFTS PER DA
Y
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 m
in
100 units
510 min
4
80 min (
2
8 800 s)
6
0 min
30 min
NET WORKING TIME PER SHIFT
CUSTOMER DEMAND
TAKT TIME =
= 288 s/unit = 4,8 min/unit
1
H
O
TE
L
I
N
W
E
S
T
C
O
R
K
P
LA
N
N
I
N
G
S
U
P
P
L
I
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
=
5
0
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
n
g
m
ac
hi
ne
/ L
oa
di
ng
1
O
P
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15
m
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l
oa
di
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/
Lo
ad
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1
O
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AT
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3
m
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P
re
pa
rin
g
P
la
st
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B
ag
s 1
O
P
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AT
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1
m
in
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Va
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Lo
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1
O
P
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AT
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50
m
in
D
A
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D
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D
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D
A
IL
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S
H
IP
P
IN
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C
H
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D
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LE
O
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D
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R
:
M
at
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: L
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D
et
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nt
Q
ua
nt
ity
: 5
0
l
M
at
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ia
l 2
: B
le
ac
h
Q
ua
nt
ity
: 1
0
l
O
R
D
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R
:
M
at
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ia
l:
P
la
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B
ag
s
Q
ua
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ity
: 2
00
D
A
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D
irt
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Li
ne
n
C
ol
le
ct
io
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W
E
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K
LY
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nl
oa
di
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15
m
in
1
op
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or
W
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LY S
H
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IN
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on
W
ed
ne
sd
ay
an
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Fr
id
ay
C
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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
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:
4,
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m
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/
un
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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
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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
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3
m
in
I
U
nl
oa
di
ng
/
Lo
ad
in
g
1
O
P
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R
AT
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3
m
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re
pa
rin
g
P
la
st
ic
B
ag
s 1
O
P
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R
AT
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1
m
in
I
Va
n
Lo
ad
in
g
1
O
P
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R
AT
O
R
15
m
in
D
A
IL
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D
A
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D
A
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D
A
IL
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S
H
IP
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C
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U
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O
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R
:
M
at
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ia
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: L
au
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D
et
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ge
nt
Q
ua
nt
ity
: 5
0
l
M
at
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ia
l 2
: B
le
ac
h
Q
ua
nt
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: 1
0
l
O
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:
M
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P
la
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: 1
00
D
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IL
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irt
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C
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ct
io
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W
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nl
oa
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15
m
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W
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H
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P
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G
on
W
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Pr
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Pr
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3
7
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