An application of simulation and value stream mapping in lean manufacturing

Physical factory layout redesigns or changes of the supply chain infrastructure involve high costs. Through simulation and value stream mapping, managers can see the impacts before the implementation and transform the organization into a lean one at minimal cost. In this paper, we investigate some relevant lean manufacturing literature where lean principles and tools are presented or utilized. Two simulation models are built for two respective scenarios, push and pull (kanban) systems. Model templates are explained and the key measurements such as lead times, throughput rates, value-added ratios are compared as well as evaluated. The effects of lean are clearly demonstrated by the simulation.