Value Stream Mapping with Simulation to Optimize Stock Levels: Case Study

Abstract

Value stream mapping (VSM) is a simple tool used to identify the waste present within the processes by mapping the current state. The future state is suggested to eliminate the waste. However, transition from current state to future state has always been a challenge in real life applications. One of the biggest challenge is to determine where to establish continuous flow and controlled stock levels due to numerous reasons, such as probabilistic characteristics of demand, unexpected behaviors, complexity etc. In this context, simulation is used to assess lean improvements, to analyze the system under scenarios based on suggested improvements and to optimize an objective, subject to constraints or requirements. In this paper, a simulation-based optimization approach is proposed to determine optimum stock levels in lean manufacturing, and a case study was carried out for a filter manufacturing department of a tobacco company. The results showed that stock level could be reduced by 50% while reducing the number of machines. (C) 2020 Jordan Journal of Mechanical and Industrial Engineering. All rights reserved