Extended value stream mapping: creating a supply chain view of phytosanitary compliance for export timber

Abstract

This research examines expanding Value Stream Mapping (VSM) from a single organisation tool to a supply chain tool. VSM is a lean production tool that is used to identify areas of waste, traditionally in manufacturing processes internal to a single organisation. This research will adapt and apply a supply chain view of VSM in the context of New Zealand timber exports with a focus on phytosanitary compliance. Phytosanitary regulations are an important part of international trade as it allows for countries to ensure that products entering their country are free from contaminants, such as pests and diseases. New Zealand must meet other countries phytosanitary requirements in order to enforce our biosecurity measures. Meeting these phytosanitary regulations for export adds cost and reduces efficiencies across the supply chain, reducing this impact while still maintaining a high standard would be beneficial to the export industries in New Zealand, this research will focus on the timber industry. This research uses a multi case study approach to apply VSM to create six current state maps for the phytosanitary compliance processes in the supply chain for sawn timber being exported to Australia and a selection of countries in Asia. The research outlines the traditional methods used in VSM and suggests an adapted method of applying VSM to processes that cross multiple organisational boundaries for a supply chain view. A single future state map is then created, with suggested industry changes. The research objectives are to apply VSM across multiple organisations in a supply chain, to identify the current state map of the processes involved with meeting phytosanitary compliance requirements for Australia and several countries in Asia for sawn timber, and to suggest a future state map for the phytosanitary compliance system in New Zealand. Overall, it was found that the current phytosanitary processes are well managed in New Zealand and meets the requirements of our key export customers. However, the application of a supply chain VSM view has revealed some wastes that could improve the process. This research adds to the established Lean systems literature with an adapted supply chain VSM approach.