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Purpose

The purpose of this paper is to implement a value stream map (VSM) in a lean environment by automating the collection and distribution of production data. This on‐line RFID‐based facility performance monitoring (ORFPM) system for manufacturing environments combines RFID technology and wireless internet to track movement of material and then provide the user with a real‐time VSM, even if they are not able to supervise the production flow in the facility.

Design/methodology/approach

To ensure the ORFPM system operates well in the industrial environment, two sets of laboratory layouts are simulated, one being a job shop and the other being a cellular layout.

Findings

The results indicate that the system is able to successfully transmit data via wireless Internet, develop a database for transportation time and lead time, and automatically generate a real‐time VSM.

Originality/value

This proposed system is able to use RFID technology to track the material flow in production systems, automatically generating and providing VSM to users with real time data and then allowing users to remotely supervise the performance of their production facility.

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