...(Strategy Compass GmbH, Value chain analysis by Porter) 1 Key impact points The above diagram illustrates some of the major activities Kiva carries out as an organization in their process of delivering value to their borrowers through collaboration with lenders and field partners. Kiva’s activities makes economic, social and environmental impacts at many points on their value chain. Below are seven key impacts of Kiva’s work, both positive and negative. These impacts need to be taken account of and measured carefully if Kiva is to continue to evolve in their efforts to use lending to alleviate poverty. Each impact is listed under the point along the value chain they are most connected. Economic Positive Primary activities > Operations > Lending program Brings affordable capital to people in need that allows them to engage in economic activity. An estimated 2.5 billion adults around the world do not use the services of a bank or other financial institution (McKinsey, 2010). Kiva loans are able to serve these same people who are not being served by conventional banks. Negative Primary activities > Operations > Lending program Many of Kiva’s field partners charge a high interest rate. Regardless of the source of capital, the partners are typically microfinance institutions that rely on interests they collect to carry out their work. The smaller the loan, the higher the interest rate due to the high transaction costs that must be covered. Thi...
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...Value stream mapping in fast food restaurants Imran Khan Afridi1, Asim Khan1 1 Nust Business School, NUST, Islamabad, Pakistan (1imranafridi@live.com 1asim_3mba@yahoo.com) Abstract - The aim of this paper is to present that how Value stream mapping (VSM) can be applied to restaurant industry and especially fast food sector. The purpose was to identify wastes and how these can be reduced and/or eliminated by the help of value stream. A case study in Pakistan based restaurant has been carried out to illustrate this. A current state value stream map has been developed. Value stream map highlights opportunities to improve wastes and problems along the restaurant supply chain. Results indicated a non value adding steps of 29% at the processing. Value stream can be readily applied to restaurant industry. Keywords – Value stream mapping, Restaurants, Pakistan I. INTRODUCTION Lean manufacturing organization will think more on its customers rather than about running machinery to maximize capacity in order to cover labor and overhead costs. A study by [1] indicates that lean manufacturing can result in a 50% reduction of human effort, tools investment and manufacturing space. This paper will examine how time and cost reductions can be made along the restaurant supply chain in the restaurant industry by the help of Value stream mapping to analyze the processes involving in the making and identifying key areas of waste and probable solutions to overcome these. Value stream mapping...
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...Abstract - The aim of this paper is to present that how Value stream mapping (VSM) can be applied to restaurant industry and especially fast food sector. The purpose was to identify wastes and how these can be reduced and/or eliminated by the help of value stream. A case study in Pakistan based restaurant has been carried out to illustrate this. A current state value stream map has been developed. Value stream map highlights opportunities to improve wastes and problems along the restaurant supply chain. Results indicated a non value adding steps of 29% at the processing. Value stream can be readily applied to restaurant industry. Keywords – Value stream mapping, Restaurants, Pakistan I. INTRODUCTION The concept of fast food goes back half a century, yet has found its way into the Pakistani market only a decade or so back. With the introduction of many foreign brands finding their way into the country, in the late nineties, the Pakistani market has finally become accustomed to manufacturing and providing service in such a way that goes around the wholesome fast paced scenario. As time has passed, Pakistani restaurants have picked up the technique to play alongside the foreign players. Now we can see that many local brands have established their image on the fact that they provide not only locally designed food, enveloping the fast food concept. Hence we can say that fast food has evolved and redesigned the whole Pakistani restaurant market. In the past five...
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...total revenue can increase dramatically. These practice (YM) can be applied in diferentes industires like airlines, hotel, chains, rental car agencies, restaurants, etc. Value stream mapping A ‘Value Stream’ (VS) is all the actions (both value-added and non-value-added) currently required to bring a product through the main flows essential to every product. VSM is a mapping tool that maps not only material flows but also information flows that control the material flows (it links the information flow to the process flow). It allows to visualize the process flow from a systems perspective . Advantages of VSM VSM Provides a big picture perspective that helps focus on improving the whole process, not just optimizing bits and pieces. Other benefits of value stream mapping is that help to identify where the waste is in your business process. Also, makes it easy to make improvements to your business because relates the manufacturing process steps to other components of the supply chain viz. distributors, suppliers and production control, shows the linkage between the information flow and material flow and links Production Control and Scheduling (PCS) functions to Shopfloor Control. Disadvantages of VSM There some disadvatages of VSM, form example: - requires training on symbols and mapping techniques. - Lacks any economic measure for “value” - Fails to map multiple products that do not have identical routings - Fails to relate plant...
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...Value Stream Mapping 1 Value Stream Mapping Definition • Value Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information. 2 Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) 3 Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4 What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying 5 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM + + Lean Basics = 6 Value Steam Mapping Steps Next Future State Future State Current State Original State 7 Apply Five Simple Principles • Specify value from the standpoint of end customer • Identify the value stream for each product...
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...Abstract - The aim of this paper is to present that how Value stream mapping (VSM) can be applied to restaurant industry and especially fast food sector. The purpose was to identify wastes and how these can be reduced and/or eliminated by the help of value stream. A case study in Pakistan based restaurant has been carried out to illustrate this. A current state value stream map has been developed. Value stream map highlights opportunities to improve wastes and problems along the restaurant supply chain. Results indicated a non value adding steps of 29% at the processing. Value stream can be readily applied to restaurant industry. Keywords – Value stream mapping, Restaurants, Pakistan I. INTRODUCTION The concept of fast food goes back half a century, yet has found its way into the Pakistani market only a decade or so back. With the introduction of many foreign brands finding their way into the country, in the late nineties, the Pakistani market has finally become accustomed to manufacturing and providing service in such a way that goes around the wholesome fast paced scenario. As time has passed, Pakistani restaurants have picked up the technique to play alongside the foreign players. Now we can see that many local brands have established their image on the fact that they provide not only locally designed food, enveloping the fast food concept. Hence we can say that fast food has evolved and redesigned the whole Pakistani restaurant market. In the past five years...
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...Value Stream Mapping 1 Value Stream Mapping Definition • Value Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information. 2 Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle to service) 3 Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it 4 What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, as defined by the customer. • "Value" is what the customer is buying 5 What Is Value Stream Analysis? Planning tool to optimize results of eliminating waste current state VSM future state VSM + + Lean Basics = 6 Value Steam Mapping Steps Next Future State Future State Current State Original State 7 Apply Five Simple Principles • Specify value from the standpoint of end customer • Identify the value stream for each product...
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...Lean Supply Chain and its Effect on Product Cost and Quality: A Case Study on Ford Motor Company Summary: This paper mainly focuses on reviewing the implementation of lean supply chain (LSC) in manufacturing industries by using four-step problem solving process. Also, taking Ford Motor Company as a typical case to address how companies follow the Toyota steps to apply LSC in their daily management. First of all, the author introduces the background of how LSC developed in the Toyota Motor Corporation’s big success. Three presents perfect and develop the concept of eliminate wastes and reduce non-value added (NVA) operations, and improve the value added (VA). “ The VA activities are those that customers are willing to pay money for tangible goods or intangible functions.” Meanwhile, the NVS work mostly contains wastes. The author throws out a very critical method in LSC, which is Value Stream Mapping. VSM, as a tool to identify VA and NVA in the process, plays an important role in Lean Supply Chain. Since, it can provide a visual flow to decision making, highlight and expose wastes, explain the link between information and material flow, and finally come up with a plan that can reduce the wastes and benefit the future improvement. In the following part, the author uses four-steps problem solving process to label the problems, define the tasks, highlight the obstacles, and propose the solutions. During the whole process, there are some key factors to impact the decision-making...
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...OM CHAPTER 7 PROCESS SELECTION, DESIGN, AND ANALYSIS DAVID A. COLLIER AND JAMES R. EVANS OM, Ch. 7 Process Selection, Design, and Analysis ©2009 South-Western, a part of Cengage Learning 1 Chapter 7 Learning Outcomes learning outcomes LO1 Describe the four types of processes used to produce goods and services. LO2 Explain the logic and use of the product-process matrix. LO3 Explain the logic and use of the service-positioning matrix. LO4 Describe how to apply process and value stream mapping for process design. process maps. LO5 Explain how to improve process designs and analyze LO6 Describe how to compute resource utilization and apply Little’s Law. OM, Ch. 7 Process Selection, Design, and Analysis ©2009 South-Western, a part of Cengage Learning 22 Chapter 7 Process Selection, Design, and Analysis called to make an airline flight reservation just an hour ago. The telephone rang five times before a recorded voice answered. “Thank you for calling ABC Travel Services,” it said. “To ensure the highest level of customer service, this call may be recorded for future analysis.” Next, I was asked to select from one of the following three choices: “If the trip is related to company business, press 1. Personal business, press 2. Group travel, press 3.” I pressed 1. I was then asked to select from the following four choices: “If this is a trip within the United States, press 1. International, press 2. Scheduled training, press 3. Related...
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...Copper Kettle Catering. – Case Study Abstract This case study will answer specific questions surrounding founders Wayne and Janet Williams’s full-service catering company, Copper Kettle Catering. Copper Kettle Catering is known as one of the largest catering business in Raleigh. The company’s competitive priorities are high-quality food, delivery reliability, flexibility and cost. Operations include two distinct processes; deliver only and deliver and serve. This case study will also discuss Copper Kettle Catering’s competitive priorities, the changing nature of the customer and the lean concepts and practices the company can implement to increase flexibility, reduce lead times and lower costs in order to stay competitive with small specialty caterers targeting specific well-defined market segments. The Millers must also consider any barriers to implementing a lean system to meet the demands of menu flexibility and faster response times. Keywords: lean systems Copper Kettle Catering. – Case Study Synopsis Copper Kettle Catering is known for their catering services that provides box luncheons and deliver and serve services for large parties, dinners and weddings. Demand for deliver only services are constant with a changing product mix. The planning horizon is short. In contrast, the deliver and serve side process has a more seasonal demand with a longer planning horizon with customers booking dates weeks or months in advance. Both processes are supported by food...
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...Defining value chain architectures: Linking strategic value creation to operational supply chain design Matthias Holweg a, Petri Helo b,n a b Judge Business School, University of Cambridge, UK Department of Production, Faculty of Technology, University of Vaasa, Finland art ic l e i nf o Article history: Received 31 May 2012 Accepted 13 June 2013 Available online 28 June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail...
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...FINANCE IN VALUE CHAIN ANALYSIS—A SYNTHESIS PAPER microREPORT #132 OCTOBER 2008 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. FINANCE IN VALUE CHAIN ANALYSIS—A SYNTHESIS PAPER microREPORT #132 The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS INTRODUCTION ................................................................................. 1 OBJECTIVE ................................................................................ 1 DEFINITION ................................................................................ 1 IMPORTANCE ............................................................................. 1 REPORT STRUCTURE ................................................................. 1 THE VALUE CHAIN ANALYSIS (VCA) FRAMEWORK ..................... 3 ANALYTICAL VCF FRAMEWORK WITH CASE-STUDY ILLUSTRATIONS ................................................................................ 7 UNDERSTANDING THE CURRENT CASH FLOW AND CREDIT STRUCTURE (ANALYTICAL PHASE) ............................................ 7 Intra-firm Finance ......................................................... 8 Finance Services Provision .......................................... 9 Inter-firm Finance (Governance) ................................ 10 UNDERSTANDING...
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...DEFENSE ACQUISITION REVIEW JOURNAL Joint Strike Fighter Courtesy of Lockheed Martin Corporation 172 Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. 1. REPORT DATE 2. REPORT TYPE 3. DATES COVERED 2004 4. TITLE AND SUBTITLE N/A 5a. CONTRACT NUMBER 5b. GRANT NUMBER 5c. PROGRAM ELEMENT NUMBER The Lean Enterprise-A Management Philosophy at Lockheed Martin 6. AUTHOR(S) 5d. PROJECT NUMBER 5e. TASK NUMBER 5f. WORK UNIT NUMBER 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) Office of the Under Secretary of Defense for Acquisition Technology & Logistics 9820 Belvoir Road Fort Belvoir, VA 22060-5565 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES)...
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...A HANDBOOK FOR VALUE CHAIN RESEARCH Prepared for the IDRC by Raphael Kaplinsky and Mike Morris* We are grateful to colleagues in both our individual institutions and in the Spreading the Gains from Globalisation Network (particularly those participating in the Bellagio Workshop in September 2000) for discussions around many of the issues covered in this Handbook and also to Stephanie Barrientos, Jayne Smith and Justin Barnes. An Important Health Warning or A Guide for Using this Handbook Lest anyone feel overwhelmed by the depth of detail in this Handbook, especially with respect to the sections on methodology, we would like to emphasise at the outset: this Handbook is not meant to be used or read as a comprehensive step by step process that has to be followed in order to undertake a value chain analysis. We know of no value chain analysis that has comprehensively covered all the aspects dealt with in the following pages, and certainly not in the methodologically sequential Handbook set out below. Indeed to try and do so in this form would be methodologically overwhelming, and would certainly bore any reader of such an analysis to tears. Our intention in producing a Handbook on researching value chains is to try and comprehensively cover as many aspects of value chain analysis as possible so as to allow researchers to dip in and utilise what is relevant and where it is appropriate. It is not an attempt to restrict researchers within a methodological strait-jacket...
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...Lean Supply Chain Management Principles and Practices Professor Deborah Nightingale October 3, 2005 Lean Supply Chain Management Learning Points • Lean supply chain management represents a new way of thinking about supplier networks • Lean principles require cooperative supplier relationships while balancing cooperation and competition • Cooperation involves a spectrum of collaborative relationships & coordination mechanisms • Supplier partnerships & strategic alliances represent a key feature of lean supply chain management ESD.61J / 16.852J: Integrating the Lean Enterprise Page 2 © Deborah Nightingale, 2005 Massachusetts Institute of Technology Theory: Lean Represents a “Hybrid” Approach to Organizing Interfirm Relationships • “Markets” (Armʼs Length): Lower production costs, higher coordination costs • • • Firm buys (all) inputs from outside specialized suppliers Inputs are highly standardized; no transaction-specific assets Prices serve as sole coordination mechanism • “Hierarchies” (Vertical Integration): Higher production costs, lower coordination costs • • Firm produces required inputs in-house (in the extreme, all inputs) Inputs are highly customized, involve high transaction costs or dedicated investments, and require close coordination • “Lean” (Hybrid): Lowest production and coordination costs; economically most efficient choice-- new model • • • Firm buys both customized...
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