What is the difference between VSAW and VSDW?

VSAW is the value stream analysis of the existing warehouse with key figures, VSDW the design of the future value stream with segmentation and measures. In the app, switching on design principles turns the current-state map into the future-state map.

How is customer takt calculated in a warehouse?

Operating time divided by daily volume. In the app that is two shifts of 7.5 h for 4,800 lines, so 54,000 s / 4,800 = 11.25 s per line.

What does the flow ratio tell you?

It is the ratio of processing time to lead time. In the current state of the app, 6.9 min of processing face a lead time of 10.6 h, giving a flow ratio of 1.1 %.

Does every minute saved save money?

No. Staff are deployed as whole persons; as long as a measure frees nobody, costs stay the same (cost remanence). In the app FIFO, levelling and cross-docking shorten time and reduce inventory but do not lower costs.

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Warehouse Value Stream

About this app

VSAW, VSDW and activity-based costing at DC Neckar: a 3D warehouse with visible material flow above a live value stream map with data boxes, inventories, push, FIFO, pull and timeline. Seven design principles rebuild map and building; activity-based costing shows cost per order and the payback of each measure.

With explain mode: an AI tutor walks you through the app, points out what matters in the scene and answers your questions.

Analysing and designing the warehouse value stream

Value stream mapping after Rother and Shook shows processes, inventories and information flows on one map. In the warehouse, mapping the current state is called VSAW (Value Stream Analysis Warehouse) and designing the future state VSDW (Value Stream Design Warehouse). Each process gets a data box with process time, staff, shifts, availability and utilisation. Customer takt is operating time divided by daily volume. The flow ratio relates processing time to lead time. Activity-based costing assigns costs to sub-processes through cost drivers and gives costs per order and per line.

What the app shows

At the top, goods flow through a 3D building of the fictional distribution centre DL Neckar; below it the value stream map is drawn live with inventory triangles, push arrows, FIFO lanes and timeline. At 4,800 lines a day in two shifts the customer takt is 11.25 s per line. In the current state, inspection is the bottleneck, order lead time is 10.6 h and the flow ratio 1.1 %. With all seven design principles lead time drops to 2.45 h and the flow ratio rises to 3.2 %. Cost per order falls from €13.82 to €11.02, and the investment pays back after 0.86 years.

What you can try

Switch the seven measures on and off one by one: inspection in the flow, FIFO and pull, levelling, cross-docking, fast-mover zone, bulky-goods segment and pick-and-pack. Map and building rearrange each time, and the key figures show current, future and difference. In the cost calculation you see which measure saves money and which saves only time and inventory. Try FIFO alone in front of the bottleneck: the lane fills up and the trucks wait. The costing compares orders with one and with ten lines against a flat rate per line. All values are teaching assumptions.

Frequently asked questions

What is the difference between VSAW and VSDW?: VSAW is the value stream analysis of the existing warehouse with key figures, VSDW the design of the future value stream with segmentation and measures. In the app, switching on design principles turns the current-state map into the future-state map.
How is customer takt calculated in a warehouse?: Operating time divided by daily volume. In the app that is two shifts of 7.5 h for 4,800 lines, so 54,000 s / 4,800 = 11.25 s per line.
What does the flow ratio tell you?: It is the ratio of processing time to lead time. In the current state of the app, 6.9 min of processing face a lead time of 10.6 h, giving a flow ratio of 1.1 %.
Does every minute saved save money?: No. Staff are deployed as whole persons; as long as a measure frees nobody, costs stay the same (cost remanence). In the app FIFO, levelling and cross-docking shorten time and reduce inventory but do not lower costs.

Subject: Warehouse and factory planning

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