Application of Value Stream Mapping in Global Manufacturing Environment

With the global value chain establishment, the globalisation sourcing is the current normal practice in most of multinational companies. Some organisations focus on their core competencies and out-source previously in-house value-added process to external and third-party sub-contractors. Many companies reported that the limited knowledge about their upstream suppliers has resulted knowledge exchange about their critical sub-tier suppliers. The purpose of the research paper is to evaluate the applicability of Kraljic Portfolio Model, Lean and Agile techniques with Value Steam Mapping (VSM) tools and established frameworks at a Malaysian manufacture of IT storage product, to address their supply disruption challenges through direct supplier and sub-tier suppliers. This study aims to determine theories and techniques able to optimise value chain with critical sub-tier supplier through the changes of strategic and operational plans within the organisation and its supply chains.