Circular value stream mapping methodology for sustainability in the production process

Abstract

Growing concerns about the environmental impact caused by industrial operations are spurring companies to seek more sustainable modes of production. As a response, traditional production management practices have evolved to also consider sustainability aspects, for example, the Lean philosophy incorporates Green manufacturing practices and the Green Lean approach emerged at the end of the twenty centuries to improve both the operational and environmental performance of organizations. However, this management strategy was built based on a linear mode of production i.e., take, make, use, and dispose. Shifting the mindset from a linear economy to a circular one requires the formulation of a new production system strategy, wherein production processes operate both circularly and efficiently. Many studies suggest that combining Circular Economy with Lean tools is a powerful way to address this. In essence, integrating circularity into Lean's philosophy creates a new management strategy that can be called Circular Lean. While extant research combining Lean and Circular Economy concerns mostly the business model level, there is a lack of research on how to bring Circular Economy thinking to the operations level. Recent literature indicates that one of the first steps to implementing a Circular Lean approach at the operational level is the identification of areas for improvement. Lean tools such as the Value Stream Mapping (VSM) can help companies analyze production processes from a circular perspective. However, the current visual representation of the VSM does not adequately capture the circularity of resources. As a consequence, potential areas for improvement that could enhance resource efficiency, waste reduction, and sustainable practices may be overlooked or undervalued. The absence of explicit consideration of circularity in the VSM limits its effectiveness in guiding companies towards a Circular Lean approach. To overcome these limitations, to effectively capture the circularity of resources or the potential circular flow, there is a need to adapt and enhance the VSM. This adaptation should involve a revised visual representation and a guide that facilitate the identification of opportunities for improvement aligned with the Circular Economy. In response to this call, the aim of this thesis is to develop a methodology that enables companies to analyze their production processes and facilitate their transition towards sustainability through the adoption of a Circular Lean approach. This methodology is based on the implementation of a Circular Value Stream Mapping tool (C-VSM).To achieve that, this thesis presents an analysis of how Green Lean strategies and tools were applied under the lens of Circular Economy. This is followed by the introduction of a revised version of the Value Stream Mapping that is capable of capturing circular flows in production process. Additionally, a set of guidelines is presented to aid companies in identifying opportunities for improvement. These guidelines have been developed by revising and updating the principles that should govern sustainable production operations in the transition towards a Circular Economy and smart industry models. These results are combined into a Circular Value Stream Mapping Methodology (C-VSMM) that companies can utilize to uncover potential areas where circular practices can be implemented in the production process.