Premium Essay

Lean Management

In: Business and Management

Submitted By cgfg
Words 2842
Pages 12
Value Stream Map for MIA Mobility Current State.

The value stream map (Figure 1.) for MIA Mobility, a retailer of medical supplies directed at

people over 65, details the process for inventory items from purchase, through in-store storage and

display, to final sale and delivery. Inventory purchase orders are placed with a lead time of three days, as

MIA Mobility expects to keep only one week of inventory on shelves and in shortage stock. This time

frame allows delivery of orders three days to receive items. Once the goods are received, verifying the

delivery takes 2 hrs and move into the in-store stock room takes 45 minutes. Store shelves are

replenished each day, with items being pulled from the stock room and placed on display shelves during

times when employees are not directly providing service to customers. Estimated time for customer

purchase is based on the time to enter, seek, find, select, and transact for the desired item in-store (Guidon

Performance Solutions, 2009). The estimated time for customer purchase in the current state is a lead

time of 15 minutes prior to the checkout process and 5 minutes to complete the checkout process.

The replenishment process is also shown in Fig.1 with utilization of the inventory management

system. Inventory data is entered and stored at the following points: receiving, which enters the total

items received during the last shipment; storing, which tracks volumes in the stock room for in-store sale

and delivery of online purchases; and checkout, with perpetual tracking of outgoing items for both in-

store and online purchases. Physical counts of in-store inventory are conducted at one-month periods and

are not included in the process time.

The data summary table describes the total time for online and in-store movement of items from

the retail supplier to the...

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