VALUE STREAM MAPPING

WHAT IS VALUE

STREAM MAPPING?

DESCRIPTION

The Value Stream

Mapping method

(VSM) is a

visualization tool

oriented to the Toyota

version of Lean

Manufacturing (Toyota

Production System). It

helps to understand

and streamline work

processes by using

the tools and

techniques of Lean

Manufacturing. The

goal of VSM is to

identify, to demonstrate and to decrease waste in the process. Waste is defined as any activity that does

not add value to the final product. The word is often used to demonstrate and decrease the amount of

"waste" in a manufacturing system. VSM can thus serve as a starting point to help management,

engineers, production associates, schedulers, suppliers, and customers to recognize waste and identify its

causes. As a result, Value Stream Mapping is primarily a communication tool, but it can also be used as a

strategic planning tool. And as a change management tool.

 

In order to do this, the Value Stream Mapping method visually maps the flow of materials and information.

From the moment that the products are entering the back door as raw materials. Via all manufacturing

process steps. Until the moment that the products leave the loading dock as finished products.

Mapping out the activities in the manufacturing process with cycle times, down times, in-process inventory,

material moves, information flows, helps to visualize the current state of the process activities and guides

towards the future desired state.

The process usually includes mapping the "Current State" and the "Future State". These then serve as the

foundation for other Lean Manufacturing strategies.

 

HISTORY OF VALUE STREAM MAPPING

The use of waste removal to achieve competitive advantage inside organizations, was pioneered in the

1980s by Toyota's chief engineer, Taiichi Ohno, and sensei Shigeo Shingo and is oriented fundamentally

towards productivity rather than towards quality. The reason for this is thought to be that improved

productivity leads to leaner operations which help to expose further waste and quality problems in the

system. Thus the systematic attack on waste is also a systematic assault on the factors that are underlying

poor quality. And on fundamental management problems. The seven commonly accepted wastes in the

Toyota production system were originally (reformulation by Jones between brackets):

1. Overproduction (faster than necessary pace).

2. Waiting.

3. Transport (conveyance).

4. Inappropriate processing.

5. Unnecessary inventory (excess inventory).

6. Unnecessary motion.

7. Defects (correction of mistakes).

Peter Hines and Nick Rich have suggested the following tools (Article: "The seven value stream mapping

tools" - International Journal of Operations & Production Management, Vol. 17, No. 1, 1997, pp. 46-64.).

 

SEVEN VALUE STREAM MAPPING TOOLS

1. Process activity mapping. Origin: Industrial Engineering.

2. Supply chain response matrix. Origin: Time compression/logistics.

3. Production variety funnel. Origin: Operations Management.

4. Quality filter mapping.

5. Demand amplification mapping. Origin: Systems Dynamics.

6. Decision point analysis. Origin: Efficient Consumer Response/logistics.

7. Physical structure mapping.

 

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VALUE STREAM MAPPING FORUM

Recent User CommentsHarshada - Ind

ia

Value Stream

Mapping

Training

"Is there any training program to implement VSM in

any organization? Preferably VSM in Automobile

Industry..."

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Farooq

Omar - Pakist

an

Value Stream

for Design

Engineering

and PMI

"Hi everyone, I use a value stream process for design

engineering that also works in conjunction with PMI's

project management principles.

For those who aren't familiar with these principles,

they incorporate "project" fundamentals that initiate,

plan, execute, monitor & control & close a project.

Through my value stream there are a set of

requirements for each major phase. At least for the

teams I manage, this seems to be a good process for

the design engineers to follow."

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Michael

Lundgren - Sw

eden

Value Stream

Management

in IT Services

"Hi, I'm currently looking in to the "cost and benefits"

of implementing value stream management in a

global IT function.

We have gone through a period of cost cutting and

have further needs to reduce cost. Hence value

stream management seems like a potential approach.

I'm looking for companies (preferably in the service

sector) that are using VSM to discuss experiencies.

Appreciate your comments."

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Bernie - USA Changes in

Behavior

"Note that the realization of the action plan in VSM

typically requires changes in activities and

processes, but may also require changes in

behavior."

   1

Prakash

Saitwal - India

Value Stream

Mapping

Software

"In what way will a software program help with value

stream mapping? What are the criteria of selecting

the most suitable software program.

Please provide help in getting answers to these

problem."

   4

Prakash

Saitwal - India

Defining Value

Stream

Mapping

Areas

"I am in process of implementing "value stream

mapping" as a tool to serve industries. I am facing

constraints in the implementation.

After documenting the process under review and

charting the present value stream, what is the process

to identify the areas having least value addition and

are on highest priority of value stream optimization."

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Dana

Kristova - Cze

ch Republic

Mappping

Outsourced

Activities in

VSM

"Hi everybody, I would need an advice concerning the

mapping of an outsourced activity in the production

of one company where I'm working on my thesis. I

haven't found any information about how to map the

value stream when the production isn't all done in one

company. In my case, the original company starts to

work on the product and because it's the smaller one,

the product is then transported to another company

which has the needed equipment for the operation

needed. Then the product is transported back to the

original company. I would like to know how to map

this flow.

If you have any experience with some similar case or

if you have any ideas concerning how to map this, I

would be very grateful for them. Thanks for your

comments!"

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Van

Hooijdonk - Th

e Netherlands

The Idea

Behind Lean

VSM

"Basically VSM is done to map the set of operations,

required for a product to launch from order to delivery

to the market, considering both value-added and non

value added operations. This mapping method is

often used in lean transformations to find and

eliminate waste in the value stream.

A lean transformation can be compared to a river

stream, in which you want your boat (the product) to

flow without getting stuck on rocks (problem causers).

To ease the flow, the water level (stock level, lead

time) could be increased; the boat will not get stuck.

Though it would create a rough stream (high costs)

and eventually even abandonment of the ship

(rejected sales).

Better is to keep a minimum water level (lean) and to

clear all the rocks (uncertainty, unreliability, scarcity

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and more) in the stream. VSM is used to constantly

identify the rocks, clear them, and lower the water

level again."

Juan

Cruz - Mexico

VSM Plan

Example

"I need to compare a VSM plan example. Please

share a case if you can."   11

Farooq Omar

– Pakistan

4 VSM Phases "The 4 Phases in VSM are:

1. Current State Map of material flow and activities

2. Future State Map

3. Action Plan

4. Implementation"

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Best User Comments harshil - INDI

A

VSM in a job

shop

"I am currently working in a company where I have

been told to implement VSM. But the problem is that

its manufacturing activities are like a job shop and

there is no repeatability.. Is VSM possible in this

environment??"

   10

Joe

O'Brien - US

VSM in

general

"Always remember to use "Common Sense " in your

VSM."   8

James - Richa

rds

VSM within

Logistics

Operations

"I am currently in the process of mapping the supply

chain within our facility. Having read both Value

Stream Mapping (Tapping, Luyster & Shuker) and

Learning to See (Rother & Shock) I should be

focusing on a product family to assess the value and

the waste rather than the overall material flow within

the said process. What I wish to capture is the waste

within the logistics support functions. For example

good receipt into store and engine dispatch from store

rather than the flow of material throughout the internal

process. Any ideas in the right direction would be

greatly appreciated."

Reproduced form a live webinar for the audience

to give them a better ‘creative’ tool to open

directional mindset.

Autorization : Farooq Omar. International

Executive Fast Track Association., USA

Course coach : Mr. Hussnain Javed

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