Application of The Value Stream Mapping as an Improvments at SMARTRAC Technology (MALAYSIA) Sdn Bhd

Abstract

This project presents the application of the VSM as improvements at Smartrac Technology (Malaysia) Sdn Bhd. A process is the transformation of raw materials into finished goods. An operation is the interaction of information, operator, machine and materials. The objectives of this project are to study critical wastes in production line through VSM under the concept of Lean Manufacturing and to recommended new design layout for the case study industry based on Lean Manufacturing techniques. Lean is about performance more with less time, less inventory, less space, less labour, and money. The methodology was first define and select the critical line or product family, creates the current state of the VSM, generate the future state of VSM and lastly developed an action plan to make the future current state become the current state. The tool of VSM used in this project successfully achieved its objective to identify waste and proposing the solution for regarding problems. The Lead Time was reduced by 69.5%.The value added ratio was also increased by 225.65 %, from 0.023% to 0.0749%. By studying the handling time, a new proposed operation was determined and been simulated by the MOST results was improvements of 15.8 %. A new proposes layout for the company also had been suggested considering all the products involves. VSM was a magical tool that possibly wills reveals of all the data, problem, process, operation and also the overall flow of processes to make a certain product. This tool was developing a Lean thinking for the management for continuous improvement in time by time