Q.1. By looking at the company’s supply chain, it is apparent that a lot of time is wasted in between production and assembly. A total of seven days are used waiting and loading goods in the ship before transportation. After the arrival of goods in the United States, the company has to wait an extra five days as customs inspects the goods. This brings to total twelve days where the company goods sit at either the China port or the American ports doing nothing. While creating a value stream map, it is essential to look at this wastage of time. This wastage of time courses a rapid effect in that it affects some other areas of the supply chain. The diagram below represents a new VSM that will see the company cat cost while at the same time create a new supply chain.
Take less than a day by cutting the
transport
Cut unnecessary storage cost
Reach customers from assembly
Q.2. Risk in the company’s supply chain is in the transport and storage department. According to the value stream map done above, it is apparent that the company takes well over a month between manufacturing and assembly. This presents a significant risk to the company since the company is unable to meet the demands between customer satisfaction and maximizing profits.
Q.3. By looking at the value stream map of the company, one can see where the opportunities are. The biggest opportunity that the company has is looking for a way in which to source for the needed materials from within the country. This will help in eliminating wasted time and reduce the cost the company goes through while transporting goods.
