Achieving Lean Warehousing Through Value Stream Mapping

Abstract

This article applies value stream mapping (VSM) in a distribution warehouse after identifying and categorizing different warehousing wastes. The study suggests solutions for the reduction of each type of waste and employs lead time as the metric to understand the overall effectiveness of the suggested remedies. The distribution warehouse faced severe stock-out situations and high lead time for all deliveries. Current state and future state maps were utilized for mapping the current and revamped system, respectively. While existing studies on lean warehousing have utilized VSM to study a specific type of waste, this study extends it to include all types of warehousing waste, classifies them into seven types and provides a real case study along with evidence for improvement schemes for each category. This research, employing a case study, suggests an integrated lean warehousing method for design and operation of distribution warehouses.

Dilemma/research question/purpose: Can the warehouse avoid stock-outs and decrease the lead time by identifying and reducing or eliminating the seven types of wastes in the warehouse operations?

Theory: Lean management principle applied to a warehouse using value stream mapping to eliminate wastes.

Type of the case: A problem-solving using lean tools carried out in a warehouse.

Protagonist: Not needed.

Options: Allow the current state to continue causing stock-outs and high lead times, or identify and reduce the wastes in the warehouse operations and avoid stock-outs, decrease lead times, and improve the overall efficiency of the warehouse.

Discussions and case questions: Is it possible for the firm to go one step further than what the future state map has shown in the study? What other lean tools do you see fit to reduce or eliminate the types of waste outlined in this article?