Material flow, in the context of supply chain management and manufacturing, refers to the continuous movement of raw materials through the production chain. From the procurement of raw materials to production steps till delivery, all fall under the material flow. An efficient material flow design offers a myriad of benefits, such as:
- Reduced Labor Cost: Strategically optimized material flow chart can minimize the need for manual management, leading to lower labor costs.
- No Delays: When materials operate on a systematic pattern, you can estimate bottlenecks and implement quick solutions to ensure timely delivery.
- Accurate Inventory Management: Knowing how much raw materials are being used in real-time aids in inventory maintenance.
When processes are uneven and materials sit in storage or are stopped mid-production, it costs the company time, money, and resources. Having excess inventory on hand can result in extended lead times and defective problems, and a poor flow of materials can make it hard for managers to reorder materials on time.
Mapping a Material Flow System
Value stream maps are a tool used to evaluate the current manufacturing process before beginning the journey of Lean or to periodically assess a Lean program. The flow of materials can be tracked on a value stream map, making it easier for managers to identify issues in the system and areas for improvement.
A VSM is a map of the facility with the path of materials laid out from start to finish. It also indicates the amount of time it takes for the materials to move through the workplace. Usually included in these maps are how long certain tasks take, how often orders for materials are placed, and unplanned stoppages.
Leaders then look to identify the spots in the flow of material that are not adding value to the company or the customer. These are the areas that can be optimized or improved for increased efficiency and productivity. Other Lean tools and programs can be utilized to improve material flow like Kanban cards and boards, and it can be beneficial to implement a material flow program like Plan for Every Part (PFEP).
