Value Stream Mapping
Why and how to do a Value Stream Mapping?
Value Stream Mapping (VSM) is a Lean Management tool used to visually map out the flow of materials, information, and processes that go into creating a product or providing a service. The purpose of VSM is to identify waste and inefficiencies in the ramp-to-ramp process and to create a plan to eliminate them. Ramp-to-ramp describes the beginning and the end of the process you want to analyze. Ideally, this is the entire process, from getting the order to shipping the product or delivering the service. The characteristic of a good Value Stream is to get one process to make what the following process needs when it needs it.
Advantages of Value Stream Mapping:
- It helps to identify areas of waste: Value Stream Mapping helps to identify areas of waste in the process, including overproduction, excess inventory, waiting, defects, and excess motion. Once identified, these areas can be targeted for improvement or eliminated entirely.
- It helps to improve efficiency: By identifying areas of waste, Value Stream Mapping helps to improve efficiency by streamlining the entire process and creating a common language. This can lead to reduced lead times, increased throughput, and lower costs.
- It provides a clear picture of the ramp-to-ramp process: VSM provides a clear and concise visual representation of the entire process, including the flow of materials and information. The visualization makes it easier to identify bottlenecks and areas of waste.
- It promotes collaboration: VSM involves input from all functions team members, which promotes collaboration and communication. As a result, this can lead to a better understanding of the entire process and a shared commitment to continuous improvement.
- It is a qualitative tool by which you describe how your facility should operate to create flow. Numbers are good for creating a sense of urgency or before/after measures. Value-stream mapping is suitable for describing what you will do to affect those numbers.
How to do Value Stream Mapping:
Define the scope:
Determine the product or service to be mapped and the boundaries of the process to be mapped. The PQPR helps to select the right product family. A family is a group of products with similar processing steps and common manufacturing machines. The choice of product family is very important. It may not be necessary to map value streams for whole products. We should select the specific products that the customer is really interested in.
Create a current state map:
Create a visual representation of the current state of the process, including all materials, information, and activities involved in producing the product or providing the service.
Some mapping tips:
- Always collect current state information by walking along the paths of material and information flows.
- Start with a quick walk along the entire door-to-door value stream to get a feel for the flow and sequence of processes. After the quick walk, go back and gather information about each process.
- Start at the shipping end and work upstream rather than starting at the receiving dock and working downstream. This way, you will start with the processes most directly linked to the customer, which should set the pace for other processes further upstream.
- Bring your stopwatch, and do not rely on standard times or information you have not personally obtained. Numbers in a file rarely reflect current reality. File data may reflect times when everything was going well, such as the first three-minute die change this year or the first time since the plant opened that no expediting was required. Your ability to visualize a future state depends on personally going where the action is and understanding and timing what is happening. (Possible exceptions to this rule are data on machine uptime, scrap/rework rates, and changeover times).
- Few examples of typical process data are C/T (Cycle Time), C/O (Changeover Time), Uptime (on-demand machine uptime), EPE (production batch sizes), Number of Operators, Number of Product Variations, Pack Size, Working Time (minus breaks), Scrap Rate.
- Map the whole value stream yourself, even if several people are involved. Understanding the whole flow is what value stream mapping is all about. If different people map different segments, no one will understand the whole.
- Always draw by hand in pencil. Start your rough sketch on the shop floor while you are doing your current state analysis, and clean it up later - again by hand and in pencil.
The definition of time measures used in Value Streams:
Analyze the current state map:
Analyze the current state map to identify areas of waste and inefficiencies.
| Type of Waste | Description - General | Prevention - General |
|---|---|---|
| Overproduction | Producing more than what is needed or producing too early | Implement just-in-time (JIT) production and use a pull system instead of a push system. Research processes, and use data to guide decision-making on inventory and sales materials. |
| Waiting | Idle time between processes or waiting for materials or information | Reduce setup times and improve scheduling, Improve equipment maintenance and resource allocation, and streamline the R&D and project approval processes. Improve response times and customer communication, and encourage interdepartmental communication. |
| Transportation | Moving materials or products unnecessarily | Optimize material and product flow and minimize transport time and distance. Encourage collaboration and communication to avoid unnecessary transport. Use digital marketing tools and optimize payment processes. |
| Processing | Performing unnecessary steps or using inefficient processes | Simplify processes, eliminate unnecessary steps, and focus on essential features for product design and sales proposals. Use data-driven decision-making for market research and financial analysis, and streamline approval processes. |
| Inventory | Excess inventory that ties up capital and space | Implement just-in-time (JIT) inventory management and develop efficient supply chain processes. Digitize marketing materials to reduce storage needs, and optimize financial decision-making processes. |
| Motion | Unnecessary movement of people or equipment | Optimize the workspace layout to eliminate/minimize unnecessary movement and increase efficiency. Encourage remote work options where applicable, and use digital tools to streamline communication and collaboration. |
| Defects | Rework, scrap, and other quality issues that require additional resources to fix | Implement a quality control system and encourage regular testing and review processes to prevent defects from occurring. |
| Not Utilizing Skills | Not providing opportunities for professional development or not leveraging the strengths of team members. | Implement training and development programs to enhance the skills and knowledge of team members and create a culture of continuous improvement. Provide opportunities for employees to collaborate and share knowledge. |
Create a future state map:
Create a visual representation of the ideal state of the process, including all improvements that will be made to eliminate waste and inefficiencies. The following questions give a guideline and sequence on how to create a Future State Map:
- What is the takt time?
- Should the value stream build to a finished goods supermarket or directly to customer orders?
- Where can one-piece flow be implemented?
- What is the pacemaker process?
- What supermarket pull systems will be used between disconnected processes?
- How will the pacemaker schedule and withdraw production to create level volume and mix?
- What are the Kaizen events, projects, and Lean Methods that are needed to implement the future state?
- What is the priority sequence of the Kaizen events and projects?
Implement the improvements:
Implement the improvements identified in the future state map, and monitor the process to ensure that the improvements are effective. The following principles should guide lean measures for performance:
- Principle 1: Measures should encourage desired front-line behavior.
- Principle 2: Measures should provide information for senior management to make decisions.
- Principle 3: Principle 1 overrides Principle 2.
Review and update the process:
Review the process periodically to ensure that it continues to be efficient and effective. Make updates as needed to ensure that the process remains optimized.
The ramp-to-ramp process could also be for selected internal processes. Value Stream Mapping can be applied to the production process and other departments within a company, including sales, marketing, finance, and other support functions. The basic steps of VSM remain the same across all departments, but the specific processes and value streams will vary depending on the department.
For example, in R&D, the value stream may include the flow of information from market research to product development to testing and validation.
The VSM for R&D will help identify areas of waste and inefficiency in the product development process, such as delays in information flow, unnecessary testing, or excessive rework.
The result can be faster time to market and increased product quality.
In the sales department, VSM can be used to map out the sales process from lead generation to closing the deal.
This can help identify areas of waste and inefficiency in the sales process, such as long lead times, too much paperwork, or redundant steps.
Once identified, improvements can be made to streamline the sales process, which can lead to faster deal closing times and increased revenue.
In the marketing department, VSM can be used to map out the process of creating and launching a marketing campaign.
This can help identify areas of waste and inefficiency, such as redundant tasks, unclear communication, or inefficient use of resources.
Once identified, improvements can be made to streamline the marketing process, which can lead to faster campaign launch times and more effective marketing efforts.
In the finance department, VSM can be used to map out the process of creating financial reports or managing cash flow.
This can help identify areas of waste and inefficiency, such as excessive paperwork or redundant steps.
Once identified, improvements can be made to streamline the finance process, which can lead to faster and more accurate financial reporting and improved cash flow management.
In other support functions, such as human resources or IT, VSM can be used to map out the process of hiring new employees or providing IT support.
This can help identify areas of waste and inefficiency, such as redundant tasks, excessive wait times, or unclear communication.
Once identified, improvements can be made to streamline these processes, which can lead to faster and more effective support for employees and improved overall efficiency for the company.
Overall, Value Stream Mapping can be applied to any process within a company to identify areas of waste and inefficiency, create a plan for continuous improvement, streamline processes, and improve overall efficiency and effectiveness. VSM can also help to promote collaboration and communication across all company departments, leading to a better understanding of the overall value stream and a shared commitment to continuous improvement.
