Capacity augmentation with VSM methodology for lean manufacturing

Purpose – The purpose of this study is to enhance the output of a manufacturing set-up in phases, by identifying the wastages in the existing line and, thereby, reducing them. Design/methodology/approach – Feasibility checking and optimization of capacity enhancement of a processing line have been discussed. Value stream mapping (VSM) methodology has been used as a data-driven decision-making tool to identify the constraints in the current state and subsequent states. The future state has been achieved in stages using VSM tool of lean manufacturing, coupled with the management philosophy of Theory of Constraints. An example of an Indian company has been added to demonstrate the suitability of the approach. Findings – The proposed approach addresses an important issue of phased increase in customer demand and the process of accommodating it through multi-phased maneuvering of productive capacity at constraint points instead of enhancing the capacity at one go. The underlying problem of capacity enhancement has been addressed using lean principles and the optimum feasible option has been designed so that the increase in cost is minimized along with satisfying the stepwise increase in demand. Research limitations/implications – This research work is applicable to the manufacturing sector. Originality/value – This paper proposes a methodology for phased upgrading of a production flow-line in keeping with a steady increase in customer demand. Here, VSM has been applied in a phased manner, and the constraint in the current state as well as in each subsequent phase has been identified and removed.