Scrap Value Stream Mapping (S-VSM): a new approach to improve the Supply Scrap Management Process

In this work, an innovative methodology to improve the Supply Scrap Management Process (SSMP), based on Value Stream Mapping (VSM), is presented. VSM is one of the best tools to map a process and eliminate its critical issues, that produces good results if applied to production processes, but can be ineffective for management processes as the SSMP. Therefore, the main objective of this work is to overcome this limitation. The proposed approach taking the name Scrap Value Stream Mapping (S-VSM) and integrates concepts from VSM and other Lean Production (LP) and World Class Manufacturing tools. It is structured in five steps. The definition of the process borders and the identification of categories of loss through the first four steps of Cost Deployment is the first step. Then, the SSMP is subdivided in its Accounting and Physical Streams and the current state is drawn. Next, wastes and critical issues are analyzed and their root causes are determined by using some of LP tools. In step four, improvements are proposed and the future state is drawn. Furthermore, potential savings, in terms of €, are estimated. In the last step, a methodology to monitor the effects of implemented improvements is defined. A case study taken from the application of the S-VSM within automotive company is presented.