Benchmark - Value Chain and Process Improvement

Answer

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  Value Chain and Process Improvement

  Simatupang (2017) explains that value chain thinking is crucial for distinguishing the high-level and low-level processes in any organization. For this study, the value chain and process improvement will be on a book manufacturing company. 

  High-level Value Chain Steps for the Book Manufacturing Company

  Step 1: Ordering of paper reels and wrapper boards.

  Step 2: Ordering of other raw materials for the manufacturing process.

  Step 3: Paper ruling.

  Step 4: Printing the cover design of the book on the wrapper.

  Step 5: Laminating the wrappers.

  Step 6: The binding process.

  Step 7: Cutting and finishing the books into the required sizes.

  Step 8: Packaging the books and distributing them to various destinations. 

  Operational Sub-Processes from High-level value Chain Steps

  Step 1: The inspection of the reel sizes, specifications, and quantity. 

  The size, quantity, and specification of the board are also inspected.

  Step 2: The organization should note the inventory and place orders for other raw materials like threads, glue, ink, and oil, among others. 

  Step 3: The paper ruling machine is set up according to required and desired specifications. The papers are then printed as per the order. After that, the ruled papers are cut and stacked depending on the binding order initially placed. 

  Step 4: This work order is different for printing the wrappers. The machine is set up to print the desired and required design on the wrapper board. During this process, quality inspection is done to ensure quality products. The printed wrappers are then stacked in bundles. 

  Step 5: The stacked wrapper bundles are further cut according to the specifications and sizes of the lamination rolls. These rolls are mounted on the machine, which is then set up for the sub-process. Inspecting the quality of laminated wrappers is also part of this sub-process. 

  Step 6: This sub-process entails the preparation of the binding work. The printed wrappers and ruled papers are cut depending on the binding specifications. The books are then set aside to cool at room temperature. This process allows the glue used during the process to stick.

  Step 7: The books are further cut according to the order sizes and the total number of books noted at this level. 

  Step 8: Finished books are wrapped and packaged into boxes for shipping to different locations according to the placed orders. Shipping is done mostly using trucks. 

  Metrics For each level and sub-level in the High-value Chain Level

  Step 1: The organization should monitor the board inventory, paper reel inventory, and the lead time for placing orders. 

  Step 2: Monitoring of available raw materials inventory, buffer levels, and lead time for placement of orders. 

  Step 3: It is crucial to monitor the ruling's configuration, the ruling rate per hour, set up time for machine, and the ink levels in the machine. 

  Step 4: Checking of the set-up time for the printing machine and the rate of printing per hour. 

  Step 5: Checking of the number of boards after each hour of lamination and the set-up time for the lamination. 

  Step 6: Monitoring the number of books bound after an hour, the glue level, wrapper alignment, and milling level. 

  Step 7: Taking note of the book sizes and number of books cut within an hour. 

  Step 8: Checking the number of available trucks, truck capacity, books in each carton box, and the travel time. 

  Improvements Based on the Above Processes

  For this manufacturing company, the cutting process can be enhanced by regularly checking the final book size (Sehnem, 2017). Despite an automatic machine cutting the book sizes, there might be fluctuation in the cutting sizes due to electric or other mechanical instabilities. Therefore, random samples should be measured in each bundle to recognize if there are any necessary adjustments.