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ECONOMIC ANALYSIS OF LEAD TIME USING VALUE STREAM MAPPING (VSM) IN
COMPANY OF CAPITAL GOODS
Everton Brisola Ferreira1, Jéssica Milhardo Miloco2, Márcio dos Santos3, Robson Morijo
de Oliveira4, Gustavo Benevides5.
ABSTRACT
The present research aims to demonstrate the application of the VSM tool in capital goods
industry. For capital goods industry, the strategy of production tends to be mixed between
make to order and make to stock, this kind of strategy has as consequence a long lead
time large investment and high added value and one of the causes of the long lead time is
due to the import of raw materials for the reduction of costs in Brazil. Considering the
problem of lead time, which the economic impact on production processes? This work
seeks to use VSM to respond. Whereas a large multinational organization, present in more
than 50 countries, it is necessary to the preservation of their identification. The
methodology was qualitative, whose approach was exploratory and descriptive, field
research was by case study that makes pertinent because it is a relevant case for
construction of a differentiated theory about tool use VSM, seeking greater scope in your
application and being used as a tool to aid strategic decision making. The analysis in a
general overview can generate false expectations with regard to productivity and
efficiency, leading to believe that a possible outsourcing part of the production process can
be advantageous, but when performing an analysis with on-the-spot survey, confronting
the company information with the market average, through the VSM, pointing to labor
costs by activity and engineering economic study noted a contrary vision. The index value
of the cycle efficiency (MCE) found was consistent with the values of literature 1-20%.
Keywords: Productivity, Efficiency, Lead time, and Value Stream Mapping (VSM).
1. INTRODUCTION
The speed of the changes concerning productive processes as is increasing
administrative considerably, primarily from the late 18TH century, driven by the industrial
revolution and the development of new technologies, by major inventions throughout the
19th century, culminating in the development of so-called scientific management, in the
early 20th century, until the so-called lean systems, in mid-century (PEINADO e GRAEML,
2007).
1
Everton Brisola Ferreira da Universidade de Sorocaba, Sorocaba-SP, Brasil. E-mail: evertonbf86@gmail.com
2
Jéssica MilhardoMiloco da Universidade de Sorocaba, Sorocaba-SP, Brasil. E-mail: je.milhardo@gmail.com
3
Márcio dos Santos da Universidade de Sorocaba, Sorocaba-SP, Brasil. E-mail: santosmd2010@hotmail.com
4
Robson Morijo de Oliveira da Universidade de Sorocaba, Sorocaba-SP, Brasil. E-mail: robsonmorijo@globo.com
5
Gustavo Benevides da Universidade de Sorocaba, Sorocaba-SP, Brasil. E-mail:guben76@gmail.com

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Traditional techniques developed mainly in the first three quarters of the 20TH
century and with inspiration and Fordist Taylorista, for the authors Corrêa e Corrêa (2010),
are no longer sufficient, by themselves, to resolve new complex issues that are addressed
by operations managers.
The constant changes in the field of the administration of direct production
operations managers to be more and more up to date and ready to face conditions
regarding production techniques, tools and methods.
In this context, the management of production becomes increasingly complex and
strategic, extending its scope of activity and, consequently, the concerns of its managers
who no longer remains attentive only to productive units, but must extend your gaze to the
entire supply chain.
According to the authores Womack and Jones (2004), is there a better way to
manage complex relationships inherent in the administration of the production, a more
strategic and comprehensive way called "lean manufacturing".
The incorporation of lean manufacturing to production processes even more for the
speech than to the practice, due to be more noticeable in large companies and mainly in
the automotive segment (WOMACK; et al, 2004). However, such implementation is linked
to the attitude of the company and of its professionals, because the "Lean manufacturing"
is not a tool or a fad, but a philosophy of work. One of its main objectives is the Elimination
of waste in production processes, such as downtime, unnecessary stock, and etc.
The display of these wastes is complex, but a tool that assists companies to see
this waste throughout the production process, as well as the real flow of value is the Value
Stream Mapping (VSM) or in the VSM at Portuguese (value stream Mapping). Value
stream mapping is walking the path of the entire process of transformation of material and
product information.
Shook (1999) points out the main advantages of using the VSM as an essential tool
to see the system:
-Help to show more than the individual processes;
-Help identify waste and their sources;
-Provides a common language to treat the manufacturing processes;
-Facilitates decision-making on the stream;
-Approaching concepts and lean techniques, helping to avoid the use of isolated
mode;
-Form a basis for the plan of implementation of the Lean Mindset;
-Presents the relationship between information flow and material flow;
-It is a qualitative tool that describes, in detail, what is the path to the production unit
operate in flow.

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To this end it is necessary the explanation of the technique of VSM, extending its
scope of application.
According to the author Erdmann (1998), this tool allows you to check the "lead
time", as is the time interval between the release of the production order to the moment
that the part or product is ready to be used. This makes it possible to see how the lawsuits
relate to each other and what impact has one over the other, affecting the efficiency of the
system.
On the theoretical/conventional exposure using the technique of the VSM, the
researchers propose an expansion in the use of this tool as follows:
To what extent the use of VSM analyzes the economic impact of the "lead time"
production processes in companies of capital goods?
The aim of this study is to conduct an economic analysis of the lead time of the
processes through the VSM in a company of capital goods.
2. THEORETICAL FRAMEWORK
This phase of the research was structured from the framework, the main theoretical
currents. The reference frame model below is presented and prioritizes the main technical
contributions on the theme.
Table 1- Main references:
Year Author (s) Contribution
1996 ShigeoShigo The Toyota Production System: from the point of
view of production engineering
1997 TaiichiOhno The Toyota production system: beyond large-scale
production
2003 Mike Rother, John
Shook
Value stream mapping to add value and eliminate
waste
2004 James P. Womack,
Daniel T
The machine that changed the world
2005 Jeffrey K. Liker Toyota Model: management principles from the world
largest manufacturer
2014 Fernanda De Negri and
Luiz Ricardo Cavalcante
Productivity in Brazil – Performance and
determinants
Source: The authors

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These theoretical currents have contributed to the state of the art of knowledge,
however, was held a structuring to justify basic theories for the present research as shown
below:
Figure 1: Structuring of the basic theories.
Source: The authors
2.1 Value Stream Mapping (VSM)
The need for integration of the company to the market, increasingly competitive,
changed the relationship between the elements that make up the production system. The
production system going on to address activities that add value to the company and to
satisfy customer needs, there is fluidity of materials through the processes without
interruptions and waste.
Ohno (1997) and Womack (1992) associate the concept of waste in the absence of
added value.Ohno (1997) states that "in production, waste refers to all elements of
production that only increase costs without adding value", for example: excess stocks,
people, equipment, etc.
This means taking into account the processes in a broad sense and not just
individual processes, seeking improvements in whole, not just isolated parts.
For an efficient product development is required for the creation of new and
profitable flow of value to the organization. This translates into a goal with two stages:
assess the value set by the client with maximum precision and, based on this evaluation,
eliminate or reduce waste that interfere in the development of the product that matches
that value. (LIKER and MOGAN, 2008).
To create a lean value stream can apply the technique of VSM. Value stream
mapping is a starting point for companies wishing to develop a structured plan for
improving productivity, profitability, quality, waste reduction and lead time (ROTHER e
SHOOK, 2003). The great goal of value stream mapping is to separate what adds value in
the eyes of the client what not aggregates, proposing improvements structured in order to

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obtain a stable process and an extended stream, producing what the client expects, at the
desired time and the value that he's willing to pay.
On the basis of the above, (SALGADO; et al, 2009) believes that the identification
and analysis of the waste factors (time, unnecessary activities, rework, etc.) can reduce
the lead time and costs, bringing a competitive advantage for the organization. The
mapping is a tool of communication, planning and change management, that drives the
decision making of enterprises in relation to the flow, allowing gains (LIKER and MEIER,
2006).
Many authors as Shingo (1996), Liker (2005), Ohno (1997), Womack (1998),
among others, argue that the presence of different manifestations of waste and/or losses
associated with the existence of certain events in the organizational structure as
completely unnecessary and VSM tool enables the visualization of the whole panorama of
the process. Having this tool as an ally, which would then be the economic gain with
decrease in activities that do not add value?
Based on this theoretical framework, this article aims to analyze the economic impact of
the lead time of the process through the VSM tool in a large company in the business of
capital assets located in the State of São Paulo, with approximately 800 employees.
2.2 Lead Time
According to Ravagnanie Son (2013), "lead time" is the period between the request
for an order until the delivery of the final product. A small order of a pre-existing item can
have only a few hours of "lead time", but a larger order of custom parts can have a "lead
time" for days, weeks or even months.
The "lead time" is a measure of time and is related to the flexibility of the production
system in responding to a client request, that is, the shorter the time of conversion of raw
materials into finished products, the lower will be the cost of the production system in
meeting the needs of customers (TUBINO, 1999).
Nishida (2009) argues that the "lead time" is one of the most important factors to
ensure the competitiveness of a company and expand its market expansion opportunities.
In conventional systems, accordance Tubino (1999), as the speed of response to
customers ' requests is low, the timing between "lead times and delivery deadlines is
obtained through previous training of both stocks of finished products as raw materials and
components. According to this author, this solution has been shown to be inadequate due
to a number of reasons among which we can highlight that stocks do not add value to the
products, constituting one of the major losses in productive systems. In addition, cover up
problems of quality, slowing the identification and correction of same.
To accompany the productive flow of an item, it is possible to identify distinct groups
of days that make up the "lead time" of that item as: the wait time, the runtime, the
inspection time and transport time. The run time is the time spent with the transformation
of raw materials into finished product, are the days of preparation, processing, and
dismounting. The inspection time is the time required to verify that the item was produced

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according to the required specifications. The transport time is the time spent to move the
item, according to his script, between the productive resources (TUBINO, 1999).
Moura (2006) draws attention to the fact that only part of the time match the actual
work and the remainder being occupied in non-productive activities, time-consuming,
concluding that the identification and elimination of dead times represent one of the main
areas of opportunity in supply chain management.
Companies that have this perspective and attack the non-productive times of the
production process cause direct impact on total lead time, with benefits, in according SURI
(1998), the reduction of costs in all stages of the product life cycle, greater customer
satisfaction, increased the company's market share and higher profits. Given these
advantages, more and more companies have invested efforts for the reduction of lead
time.
2.3 Productivity
Productivity is a central theme in the debate on economic development because it is
the factor that determines the long-term growth (FILHO e KOMATSU, 2014).
In the years 2000, Brazil went through a cycle of growth with income distribution
that was heavily based on the expansion of the demand, both for foreign commodities, as
domestic, derived from the increase of income and the incorporation of more people to the
labour market and consumption (Negri e Cavalcante, 2014). After the crisis of 2008,
however, this process seems to have lost the ability to, in isolation, to boost economic
growth. It is in this scenario that the productivity WINS relief in the economic debate. Not
because their performance in the recent period is different from the observed in recent
decades, but because productivity growth need, again, as a condition for the growth of the
economy (Negri e Cavalcante, 2014).
The management of productivity, according M (2012), embeds basically three
procedures:
a) the measurement of productivity;
b) the identification and analysis of the determinants of productivity bottlenecks and;
c) the definition and implementation of proposals for overcoming these bottlenecks.
Apparently, these processes are logically trivial, however, you can problematizá
them. Corroborating with Macedo (2012), the productivity is being perceived more as a
measure of efficiency in the production process than the production process of a company.
It is still common to the production process of a company restricted to their production
process. This vision captures the reality that this process is just one of the steps in the
production process of a company.
Brito et. al(2009), in their studies on the literature dedicated to the investigation of
the recent process of adjustment of productive structure, stresses the maintenance of a
dense and complex industrial fabric, in which the joints inter-industriais continue to play a
key role in industrial dynamics.

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The concept of productivity refers to the ability of the company to generate "product" in
your production process. The efficiency of this process is not restricted only to the "world"
of production.
The concept of productivity goes beyond the restricted aspects to the
production process, because the generation of value also depends
crucially the other steps of the production process: the purchase of
intermediate goods and services and the sale of goods and services
that the company produces [...] (MACEDO, 2012).
If the strategy of company purchases (quantity, quality, relation with suppliers,
supply logistics, etc.) is inadequate and/or its strategy and market results (distribution
logistics, sales volume, mark-up, market share, customer relationship, etc.) are
problematic, the efficiency of your production process can be compromised, despite the
excellence you can have in your production process.
The efficiency in production is a necessary condition, but not enough of the
productive process of the company. In this methodological perspective, the concept of
productivity is based on the value added by the productive process of the company.
2.4 Efficiency
Accordyng O’Hanlon and Peasnell (1998), Some companies have reduced their
production time for only a fraction of earlier levels in order to eliminate activities that do not
add value as inspection, handling and queues. This measure has helped to improve
efficiency by reducing the cycle time of delivery (lead time). O’Hanlon (1998) points out
that the processing time, which is regarded as a key measure of performance, delivery can
be best evidenced by the calculation of the efficiency of the manufacturing cycle or
Manufacturing Cycle Efficiency (MCE).
Manufacturing Cycle efficiency-MCE is measured as the amount of added value in a
process divided by the total time of lead time. It can be used to measure the cost reduction
potential (George, 2002).
Based on the calculation of MCE and efforts geared to industrial areas, George
(2002) drew up a table with the ideal percentages for the efficiency of her cycle on a
typical organization or belonging to a world class.

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Table 1- Cycle Efficiencies, typical and world-class.
Application Typical World-class
Usinagem 1% 20%
Manufacturing 10% 25%
Mounting 15% 35%
Continuous Manufacturing 30% 80%
Transactional business processes 10% 50%
Business processes-creative/cognitive 5% 25%
Source: Adapted from George studies, 2002.
3. METHODOLOGY
The present study used qualitative methodology, which was exploratory and
descriptive. As for the field investigation procedure was adopted the strategy of research
called case study, pertinent to the extent that this is a case in point for the differential use
of new theories surrounded use of the tool Value Stream Mapping (VSM). It is worth noting
that the exploratory researches are those which are intended to explain and provide
greater understanding of a particular problem. In this sense, this kind of research, the
researcher seeks greater knowledge on the subject in study (GIL, 2009).
For Yin (2014), the case study is an empirical research, the nature of contemporary
phenomena studies lies within its real-life context, especially when the boundaries
between phenomenon and context are not clearly defined.
A literature search was performed to identify the State of the art, with queries to
books, articles, theses and academic journals. This study aims to learn about the different
forms of scientific contribution to the theme proposed.
To give base and support for research, was conducted a literature review which has as its
central axis studies on: productivity, efficiency, and value stream lead time.
The data collection procedure was treated with extreme caution, because a
multinational organization and it is necessary to the preservation of their identification. The
data collection period was from January to September 2015.
The data collection took place through a history raised in the ERP system with SAP ®
software and then verified in situ, noted the average time of the stages of manufacture of
the product chosen family and so it was possible to raise the costs related to activities,
manpower, cost of raw materials and other components used in the assembly

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4. CASE STUDY
The case study is a large multinational company that is present in more than 50
countries. In Brazil, is located in the State of São Paulo for over 50 years, working in the
manufacture of capital goods.
The company operates with traditional methods of production, with great diversity of
products in its portfolio, but with low volume of production, the company adopts a mixed
strategy, MTO (Make To Order) and MTS (Make To Stoke). It was found that the products
undergo several work centers and offer various levels of processing.
The production process starts through demand forecasts and a 12-month forecast,
however, with a freeze on future of three months, that is, modifications can occur on a
monthly basis in that forecast, but the initial forecast of ninety days should be maintained
the title of planning as shown in Figure 2 below:
Figure 2. Examples of the initial forecast.
Source: survey data.
The goal of applying the VSM will be mapping the value chain of the family of
products which have the greatest volume of production in the manufacturing plant, object
of the case study, with the purpose to analyze the efficiency of manufacture through the
cycle lead time.
According to Rother and Shock (2003), production process is the sequence of
activities that aims to add value to the product, will be part of the process of applying the
VSM areas of collectibility, machining, welding, Assembly, painting/packing and dispatch,
as well as the stocks between these processes, called WIP, so as to cover the entire flow
of value of a product family.
Among the company's portfolio, was selected a family of products to describe the
current state of the company's processes, the chosen family represents 40% of the volume
of production, which to preserve the interests of the company will be named the product.
The data collected by the company may initially generate false expectations with regard to
productivity and production efficiency.
The table 2 demonstrates the data collected:
JAN FEB MAR APR MAY JUN JUL AGO SEPT OCT NOV DEC
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
demand demand demand demand demand demand demand demand demand
freezing
freezing
freezing
freezing
freezing
freezing
freezing
freezing
freezing

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Table 2- Cost statement Board of labor and raw materials.
Source: survey data.
The information described in the above table were confronted with the market
average (capital goods companies). And nevertheless, a simulation analysis, if the
company chose to make the machining step outside your organization, i.e. outsourcing this
process to completion through other companies. Therefore, this analysis will bring a
distinctive contribution to capital goods companies in Brazil.
4.1 Manufacturing processes
 Commercial: based on demand forecasts the company's commercial sector,
through ERP, emits the shopping sector need for raw materials to be consumed in
the next 90 days
 Shopping: shopping orders to suppliers, in general these vendors are national and
Asian smelters.
 Suppliers: in national castings, after confirmation of the order, the delivery lead
time from the raw material varies between 60 and 75 days. The Asian foundries the
same process has a lead time of 150 days.
 Receiving/stock: for both suppliers the receiving process is the same, at the time
of unloading a quality inspector conducts a detailed inspection of large parts and
inspection by sampling in other parts.
 PCP: with the entry of material in stock the PCP emits production orders (POS) to
the production sector.
 Machining: the processes are divided into several levels and work centers, gear
machining Division is performed through tracing, preparation for machining pallets
and then machining as CNC program.
 Inspection: After the machining process, before heading to new processes, the
parts undergo inspection for dimensional control.
HOURS $/HOURS TOTAL HOURS $/HOURS TOTAL HOURS $/HOURS TOTAL HOURS $/HOURS TOTAL
186 R$ 335,44 R$ 62.391,84 77 R$ 132,47 R$ 10.200,19 47 R$ 161,04 R$ 7.568,88 36 R$ 205,33 R$ 7.391,88
R$ 87.552,79
NATIONAL IMPORTED
R$ 90.790,00 US$
R$ 159.196,00
R$ 246.748,79
AXLE BUSHING ADJUSTMENT PACKING OTHER
TOTAL WORMANSHIP + MATERIALS
R$ 36.236,00 R$ 18.156,00 R$ 3.467,00 R$ 2.558,00 R$ 7.989,00
COST OF MATERIALS
MARGED
TOTAL MATERIALS
BEARINGS
ACTIVITIES OF THE WORKMANSHIP PROCESS
MACHINING WELD ASSEMBLY PAINTING
TOTAL WORKMANSHIP

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 Welding: welding processes all purchased components are welded to meet needs
of the Assembly process
 Assembly: parts and kits are assembled as machine which family belong.
 Painting: the machines are painted according to customer specification. After the
painting process the ink drying with a grace period of four hours in a covered.
 Packing: the machines are packaged as instructed in the process.
 Shipment: the machines are sent to the distribution centre for forwarding to the
client or is stocked.
4.2 Pointing system.
The appointment of hours in the process is done manually by the operators on a
card that accompanies the process order and is later appointed manually in the SAP
System. In addition to the appointment of productive hours card, there is a card for
appointment of unproductive hours that accompanies each work center, at this point card
by hand all the stops and hours of setup.
4.3 Value stream mapping
The VSM is composed of a series of symbols and data boxes, each with its
specificity. To start the mapping is necessary the use of standard data box, where the
most relevant information and basic of each process are collected and those that have
utility in the VSM are placed within data box, the information will be contained in them are:
 Cycle Time (T/C): time between the output of a component (part, product or
appropriate unit adopted) and the next in the same process;
 Setup time: Time for change in the production of one type of product to another;
 Availability (real machine): Time available per day, or in the process taking the
time to stop and maintenance;
 Working time Available: per shift in that process (excluding minutes of rest,
meetings and time of cleaning);
 Process time (TP): corresponds to the cycle time (T/C) added to the setup partially
or cleaning between batches in sequence because they are actions that occur
every batch;
 Number of people required to operate the process.
The first step is to draw customers in the process, that is, for whom the product is
intended and the mix in that family set in the study and the quantities of each item of this

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mix. After this, map the flow processes. The data boxes work with the information defined
for each process, positioned below. From this determine the intermediate stocks (stocks in
the process), based on the time required to maintain the continuous flow.
The next step is to draw the arrows of the process differ when the process is pulled
or pushed. The determination of the flow of information between processes is essential. A
stream pulled occurs when the client process determines the production in previous
processes that feed (when necessary). A stream pushed happens when processes are
controlled based on a schedule, without taking into account the real needs of the
customers processes, the situation found in the case study.
Then there is the flow of information which includes the programming of processes,
the frequency with which applications are carried out, the predictions and material
requests. You should consider the differences to the arrows on the flow of information and
electronic information flow.
For the study of the VSM were considered the time based on the system and
confirmed by the authors, and in situ observations of the process undertaken for this
mapping.
The VSM depicts the flow of information and material in the entire chain, illustrating
each production sector and the islands of standing materials (WIP) between processes.
The processes are listed in the default data with analysis information, drawn at the bottom
of the map.
Figure 3 below shows the example of the current state value stream map of the company,
object of study.
Figure 3: current state value stream map of the company.
Source: the authors

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5. ANALYSIS AND DISCUSSION OF THE RESULTS
In the capital goods industry, the strategy of production tends to be mixed between
make to order and make to stock, however, in this study the main characteristic is make to
stock. This kind of strategy in capital goods companies have as a consequence a long
lead time, large investment and high added value.
One of the causes of the long lead time is due to the import of raw materials for the
reduction of costs, these costs after the product be internalized, arrive at 30% below value
compared to national product.
When the raw material is imported from Asian smelters, the first premise is that the
minimum lot above a container of 24 metres.
The company studied the most productive processes are conducted internally in
their own plant, the equipment are shared with other families of products and feature a
long high inventory, in addition to the process receive supplies are stored upon receipt
until your need. Even for the stock, the value stream mapping demonstrates intermediate
stocks in each step of the process (WIP).
The chain's value flow long, lasting an average of 102 days, resulting in a working
capital of 3.5 times a year, but for the capital goods segment to measure manufacturing
cycle efficiency (MCE) expected for the manufacturing process, according to George
(2002), the typical value is 10% and the world class the expected value is 25%. The case
study was found the value of 14.52%, which proves that the value found inside of the
values specified in literature as the equation below:
With regard to the comparative analysis between producing internally or outsource
the usinagem follows table X.
Table X – Cost of labor-internal development vs. outsourcing of usinagem
Source: Research data.
Current state
Own
Development
(MOD)
Time (h)
Development
Outsourcing
Machining
Time (h)
MACHINING 62392,00 186 155980,00 0
WELDING 10200,00 77 10200,00 77
MOUNTING 7569,00 47 7569,00 47
PAINTING 7392,00 36 7392,00 36
TOTAL 87553,00 181141,00

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Noting the time variable, although it is a 186 economy hours, if the option for
outsource machining, however the cost of third-party development is about 2.5 times
higher. Nevertheless, there is a peculiarity in the segment of capital goods, which refers to
know-how. It is worth noting that in capital goods industries it is very pricey investment in
productive infrastructure and knowledge, ensuring a quality product is something that
requires time, knowledge and financial resources.
Engineering economic study it was found that it is more feasible to develop
production internally, even with the lead time of operation more extended in time. These
notes can be found in the table Y.
Table Y- Simulation of time used for production processes (internal x outsourcing)
Estado atual
Internal time
(h)
standardization
Time outsourcing
(h)
standardization
MACHINING 186 2,27 0 1,00
WELDING 77 1,89 77 1,89
MOUNTING 47 1,67 47 1,67
PAINTING 36 1,56 36 1,56
Appointed result
Mean Time
(standardization)
A = 1,85 B = 1,53
Source: Research data.
Analyzing the gain of time, one can show that there is a 17.30% reduction
compared to the standard time of the machining operation, which would justify the
adoption of outsourcing. However if analysed the process of outsourcing on the light of the
concept of opportunity cost of capital, you can point out that the company would lose $ 1
million each, R$ 768,037 .84 what makes outsourcing. These notes can be observed in
table Z.

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Tabela Z – Economic and financial analysis of the opportunity cost of capital (own
development vs. outsourcing of labor and usinagem process)
Cost simulation
Standardized
average cost
Operating
Cost
Average cost x
operating cost
Return on weighted
analysis cost U$ 1
million
VAR %
1- Own development 4,14 87.553,00 R$ 362.469,42 R$ 637.530,58 176%
2- Development
outsourcing
Usinagem
4,24 181.141,00 R$ 768.037,84 R$ 231.962,16 30%
Source: Research data.
6. FINAL CONSIDERATIONS
The light of the present study allowed understanding the application of flow analysis
tool VSM in productive of the company concerned and the various opportunities for the
implementation of those that are not adopted, so that opens up a wide field for new
research as it relates to economic analysis of operations, since this kind of analysis
basically limits the strategic areas and organisations in this way shows a lack of this kind
of analysis and information on the basis of the organizations.
Although the present study is limited to an analysis of the flow of a company's value
specifies the branch of capital goods, it was found that the VSM tool can be applied
differently in the various levels of organizations, assisting in strategic decision-making.
It was observed, as shown in the discussions which, by means of calculations of
lead time and MCE, the company study showed the worldwide standards of manufacturing
and, added to this, economic engineering proves that the opportunity cost of capital in
relation to the outsourcing of the machining process, offered no financial advantage. As
evidenced in the analysis and discussion, we can point out that the company would lose $
1 million each, R$ 768,037 .84 what makes outsourcing, besides giving up much of their
know-how.
With the completion of this study, it appears that the VSM tool also opens a little
explored, making feasibility studies and comparisons between the selection of suppliers for
the production of capital goods, which can be performed economic analysis of acquisition
of raw materials of domestic and imported castings, verification of your lead time and
costs.

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