The application of cost-based value stream mapping to a container loading analysis

Abstract

Lean production emerged in the 1990’s as an academic term, with the publication of the book ‘The Machine that Changed the World’. The philosophy was born out of the Toyota Production System, with the objective to eliminate waste within firms. Originally applied to the manufacturing industry, the philosophy has been applied to other industries such as services and healthcare with varying levels of success. However, to date, very little research has been conducted in the agricultural sector. The aim of the study is to use the Lean tool Value Stream Mapping to determine its ability to improve performance within a logistics setting, through conducting a cost analysis on container utilisation for an existing New Zealand dairy company. A case study methodology was used in the study to draw a non-traditional Value Stream Map, which was then used to conduct the cost analysis. The results of the project suggest that container utilisation could be improved through reducing the pallet weight load.