Using the Value Stream Mapping and Overall Equipment Effectiveness to Improve Productivity: A Literature Review

In the industries with high capital investment, the manufacturer has to spend a big amount of money for purchasing equipment. To overcome this imposed pressure the investor should utilize all the resources very efficiently for higher productivity and need to meet the customer’s ever increasing demands. This paper reviews both value stream mapping (VSM) and overall equipment effectiveness (OEE) system for optimizing the production efficiency which leads to gain high productivity. VSM is used to identify and eliminate the existing wastes and establishes a better material flow with a shorter lead time, cycle time, and faster product transfer. On the other hand, OEE contributes to reduce the losses in operating time, performance rate and quality. In this paper, the application of VSM and OEE is reviewed together with their advantages as well as their contribution to improve the dimensions of productivity. Besides, the review shows that limited research has been done to take the advantage of combined VSM and OEE system. Finally, a framework of using both VSM and OEE is developed to achieve the target of productivity improvement.