A Research on the Application and Effect of the Value Stream Management in China's Air Conditioner Manufacturers - A Case Study of Midea

The enhancement of the competitive strength and flexibility are important to every enterprise. Based on the theory of value stream and its application in Midea, our research was committed to banishing waste in the production process of air conditioner and strengthening Mideapsilas competitive power. COIL production line was chosen as the research object, and all actions in its value stream were classified as value-added and non-value-added after collecting the raw data about the take time, staff, materials, etc. Furthermore, procedure analysis and the principle of ECRS were applied in line balancing and the evaluation of effects brought by these methods was made. The result has shown that, for Chinapsilas air conditioner manufacturers, the implementation of value stream management can significantly increase their output and reducing their cost at the same time.