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Current State VSM - Order Fulfillment Loop
Customer
%C&A = 70%

PO

Excel

SAP System
2x
weekly

Account data
Sales Order

Sales

2 hrs.

Review &
approve PO
25

5

4 hrs.
15 mins.

2 hrs.

PT = 5 mins.
%C&A = 90%

PT = 15 mins.
%C&A = 90%

2 hrs.

Enter Order

Run Credit
1 Check

Value Stream Loop: Domestic Order Fulfillment
Current State Value Stream Map
Customer Demand: 150 orders / day

Warehouse On-time delivery = 55%

2 hrs.

PT = 20 mins.
%C&A = 99%

2 hrs.
5 mins.

Shipper

Finance

Order Entry

4 hrs.

Approval

Pick and ship
order
5

2 hrs.
20 mins.

10 hrs.

PT = 15 mins.
%C&A = 99%

10 hrs.
15 mins.

PT = Process Time
LT = Lead Time
C&A = % Complete & Accurate
AR = Activity Ratio (PT/LT x 100)
RFPY = Rolled First Pass Yield

Total LT = 20.9 hrs.
Total PT = 55 mins.
AR = 4.38%
RFPY = 55.6%

Published in: Business, Technology
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