Exploratory approaches for improved cost effectiveness and profitability: Utilizing mathematical analysis and value stream mapping on production floors

Abstract

This paper focuses on the application of Value Stream Mapping (VSM) within the context of the electronics manufacturing industry, aiming to improve its operational efficiency and financial performance. The study thoroughly analyzes costs, integrating VSM to justify economic benefits. Data was collected directly from the manufacturing floor to create a current state map, enabling the identification of non-value-added activities and sources of waste. Areas for potential improvement were pinpointed to reduce or eliminate these inefficiencies. By implementing these proposed enhancements, the paper outlines a future state map for the electronics manufacturing process and presents the results of applying Value Stream Mapping. Comparing the current and future state maps, the study reveals that embracing Lean principles, in conjunction with Value Stream Mapping, can significantly benefit the electronics manufacturing industry. Specifically, it can reduce production lead times by 67.84% and decrease costs by 8.69%. This research underscores the financial implications of adopting Value Stream Mapping, illustrating that by combining Lean principles with VSM, industries can offer rapid customer responses at lower costs, a crucial factor for improving competitive performance in the existing market landscape.