Thus, a current value stream mapping was drawn for detecting bottlenecks in the system as illustrated in Fig.1 (a).
It was found that there were waste processes occurring in involved departments. Based on limited time and budget,
processes in IQC department, warehouse and production departments were selected to analyze and decrease NVA by
using lean perspective and IT which is represented as TO-BE value stream mapping in Fig.1 (b).
First of all, component storage was changed from the warehouse to the production area as shown in Fig 2.Next, the
traditional inventory system was replaced by using the two-bin system. The reorder point of the bin size is
V
R dL Z L d (1)
where R is the reorder point, an average consumption is d , L is lead time, Z is an appropriate value from a table of
standard normal distribution probabilities and V d is demand during the replenishment lead time standard deviation.