Investigating the effect of value stream mapping on procurement effectiveness: a case study

Abstract

In order to find a new lean methodology to improve the process of procurement management, this paper takes the warehouse in the manufacturing enterprise as a case to study. During lean consulting service provision, the firsthand material which the research work needs through the spot inspection was collected. To analysis the whole procurement process, the procurement value stream map based on the data collected was plot. Then the whole procurement process can be seen in the procurement value stream map, including making procurement plans, audit, procurement, transportation, inspection, storage, classifying and receiving materials. According to the procurement value stream map, wastes and non-value activities in the procurement process can be easily found and the improvement methods can be prompted. The contribution of this paper main reflects in two aspects: (1) the procurement value stream mapping (P-VSM) enriches improvement methodology of procurement management; (2) the P-VSM methodology enlarges the application scope of lean tools on one side.