Advertisement

Enhancing Collaborations by Assessing the Expected Financial Benefits of Improvement Projects

  • Romain Miclo
  • Matthieu Lauras
  • Franck Fontanili
  • Jacques Lamothe
  • Philippe Bornert
  • Guillaume Revenu
Conference paper
Part of the Proceedings of the I-ESA Conferences book series (IESACONF, volume 7)

Abstract

In the highly competitive world of today, firms try to maximize value for their customers and other stakeholders through the effective management of their networks. That is why companies must adopt changes, generally at a network scale, that often involve high costs and potentially allow high benefits. This paper deals with an original method able to quantify the financial impacts of a planned improvement project. This proposition is instantiated in a three-step methodology: (i) modeling the AS-IS collaborative flows through a Value Stream Mapping (VSM) method and making decisions regarding the potential improvements; (ii) assessing the expected business consequences of the improvement plan through a Discrete Event Simulation (DES) approach; (iii) converting the business evaluation in a financial dimension through a Value Stream Costing (VSC) step. The originality of this research work consists in coupling VSM, DES and VSC techniques in a unique and integrated method able to support decision-making by forecasting financial consequences of any improvement plan, at a network scale. A real application case from the construction industry sector is developed at the end of the paper to illustrate the benefits of our proposition.

Keywords

Collaborative network Supply chain Value stream mapping Discrete-event simulation Value stream costing 

References

  1. 1.
    Lian, Y.-H., & Van Landeghem, H. (2002). An application of simulation and value stream mapping in lean manufacturing. In Proceedings of the14th European Simulation Symposium.Google Scholar
  2. 2.
    Rother, M., & Shook, J. (1999). Learning to see: Value stream mapping to add value and eliminate Muda. Ed. Lean Enterprise Institute.Google Scholar
  3. 3.
    Fontanili, F., Lauras, M., & Lamothe, J. (2013). Pour une ingénierie d’entreprise plus performante par couplage entre modélisation de processus et simulation. In 10 ème Congrès International de Génie Industriel CIGI 2013, 12–14 juin.Google Scholar
  4. 4.
    Lian, Y-H., & Van Landeghem, H. (2007). Analysing the effects of Lean manufacturing using a value stream mapping-based simulation generator. International Journal of Production Research, 45(13), 3037–3058.Google Scholar
  5. 5.
    Abdulmalek, F. A., & Rajgopal, J. (2006). Analysing the benefits of lean manufacturing and value stream mapping via simulation: A process sector case study. International Journal of Production Economics, 107, 223–236.CrossRefGoogle Scholar
  6. 6.
    Singh, B., Garg, S. K., & Sharma, S. K. (2010). Value Stream mapping: literature review and implications for Indian industry. International Journal of Advanced Manufacturing Technology, 53, 799–809.CrossRefGoogle Scholar
  7. 7.
    Gjeldum, N., Veža, I., & Bilić, B. (2011). Simulation of production process reorganized with value stream mapping. Technical Gazette, 18(3), 341–347.Google Scholar
  8. 8.
    Murat Tabanli, R., & Ertay, T. (2012). Value stream mapping and benefit-cost analysis application for value visibility of a pilot project on RFID investment integrated to a manual production control system—a case study. International Journal of Advanced Manufacturing Technology, 66, 987–1002.CrossRefGoogle Scholar
  9. 9.
    Bosch-Mauchand, M., Siadat, A., Perry, N., & Bernard, A. (2010). VCS: Value chains simulator, a tool for value analysis of manufacturing enterprise processes (a value-based decision support tool). Journal of Intelligent Manufacturing, 23, 1389–1402.CrossRefGoogle Scholar
  10. 10.
    Sihn, W., & Pfeffer, M. (2013). A method for a comprehensive value stream evaluation. Manufacturing Technology, 62, 427–430.Google Scholar
  11. 11.
    Maskel, B., & Baggaley, B. (2003). Practical lean accounting: A proven system for measuring and managing the lean enterprise. Library of Congrees Cataloging-in-Publication Data. ISBN 1-56327-243-1.Google Scholar
  12. 12.
    Li, X., Sawhney, R., John, E., & Ramasamy, K. (2012). A comparative analysis of management accounting systems’ impact on lean implementation. International Journal of Technology Management, 57(1/2/3), 33–48.Google Scholar
  13. 13.
    Solding, P., & Gullander, P (2009). Concepts for simulation based value stream mapping. In Proceedings of the 2009 Winter Simulation Conference (wsc 2009), 1–4, 2172–2178.Google Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • Romain Miclo
    • 2
    • 1
  • Matthieu Lauras
    • 1
  • Franck Fontanili
    • 1
  • Jacques Lamothe
    • 1
  • Philippe Bornert
    • 2
  • Guillaume Revenu
    • 2
  1. 1.Industrial Engineering DepartmentToulouse University—Mines AlbiAlbiFrance
  2. 2.AGILEAToulouseFrance

Personalised recommendations