Value Stream Mapping

BY Naik Ddevang

Value Stream Mapping Definition

• Value Stream Mapping (VSM):

– Special type of flow chart that uses symbols

known as "the language of Lean" to depict

waste and improve the flow of inventory

and information.

• VSM follows a products production path

from beginning to end, and draw a visual

representation of every process in the

material information flows. Mapping the

value stream allows us to look at our

business from a different perspective, or

with ‘fresh’ eyes.

Value Stream Mapping Purpose

• Provide optimum value to the

customer

through a complete value

creation process

with minimum waste in:

– Design (concept to customer)

– Build (order to delivery)

– Sustain (in-use through life cycle

Value Stream Mapping Purpose• It helps us visualize more than just the process level-lets

us see from door to door (and beyond)

• It allows us to see the sources of waste.

• It shows linkage, or lack therefore, between the flow of

information and the flow of material- VSM is the only

tool to include critical information flow and much of lean

depends on how information flow is handled.

• It provides a common language and assists in clearly

communication future state ideas.

• It helps target improvement projects on the right

opportunities that will make a real difference to

performance and flow.

• VSM facilitates the selection of appropriate tools as

needed to archive future state vision.

• It provides a blueprint for implementation. Would you

build a new house without a blueprint.

• It ties together various lean concepts and techniques.

Why ?

• Many organizations pursuing “lean”

conversions

have realized that improvement events alone

are not enough

• Improvement events create localized

improvements, value stream mapping &

analysis

strengthens the gains by providing vision and

plans that connect all improvement activities

• Value stream mapping & analysis is a tool that

allows you to see waste, and plan to eliminate

it.

What Is Value?

• A capability provided to a customer

– of the highest quality,

– at the right time,

– at an appropriate price,

• as defined by the customer.

• "Value" is what the customer is buying.

• What do you currently do for the customer?

• What should you do for the customer?

• You must provide your customer with a good value

proposition.

• A value proposition offers:

• 1 Time

• 2 Quality

• 3 Cost

What Is ValueStream Analysis?

• Planning tool to optimize results of

eliminating waste

Current State VSM+Idea+Lean Basic+Future State

VSM

Where there is a value from your customers point of

view there is a value steam. The challenge lies in

identifying it.

1 On-time delivery improvement.

2 Productivity improvement.

3 Manufacturing lead time reduction.

4 Reduction in sales break – even point.

5 Finished goods inventory removed.

6 All obsolete machinery removed.

Value Steam Mapping Steps

• Select a product family: Identify the unit of

analysis.

• Current State Map: Gather data on your

material and information flow on the work

flow.

• Define Ideal State: Think of where you want

to go in an ideal situation. Making of a

perfect system.

• Future State Map: Draw a future State map

that uses the principal of flow and pull.

• Action Plan: Create an action plan to

implement the future state map you have

created.

Apply Five Simple Principles

• Value

• Value Stream

• Flow

• Pull

• Perfection

What does the Value stream provides

• A visual tool to show how value flows to the

customer in your organization.

• A 2D representation of your value stream

map.

• A clear summary statement which helps

you to communicate a shared vision.

• Measurable goals.

• A continuous improvement plan.

• A system blueprint for how the value

proposition can be improved for the

customer.

• Understanding of how much production

time is value and non value.

What is Flow?

• "ITEMS" flow through a value stream

• – In manufacturing, materials are the items

• – In design & development, designs are the

items

• – In service, external customer needs are

the items

• In admin., internal customer needs are the

items

• Analysis begins with part of a total value

stream,

• That part of the value stream has

customers too

Value Stream Mapping ProcessSymbols