How do you identify the value stream for your business process?

1 Define the scope and purpose

Before you start mapping, you need to define the scope and purpose of your VSM project. What is the process you want to improve? Who are the customers and stakeholders involved? What are the goals and objectives of the VSM? How will you measure the results? Having a clear scope and purpose will help you focus on the most relevant and valuable aspects of your process.

2 Identify the customer and value

The next step is to identify who is the customer of your process and what value they expect from it. The customer can be an external or internal entity, such as a buyer, a supplier, or another department. The value is the outcome or benefit that the customer receives from your process, such as a product, a service, or a solution. You need to understand the customer's needs, expectations, and satisfaction levels to determine what value means for them.

3 Map the current state

The current state map is a visual representation of how your process operates today, from the customer's point of view. You need to collect data and information about the steps, inputs, outputs, resources, roles, and metrics of your process. You can use symbols, icons, arrows, and labels to illustrate the flow of materials, information, and activities. You also need to identify the wastes, inefficiencies, and bottlenecks that reduce the value of your process.

4 Analyze the current state

Once you have mapped the current state, you need to analyze it to identify the gaps and opportunities for improvement. You can use tools and techniques such as value-added analysis, cycle time analysis, spaghetti diagrams, or root cause analysis to evaluate the performance and effectiveness of your process. You need to compare the current state with the customer's value and identify the sources of waste, variation, and delay.

5 Design the future state

The future state map is a visual representation of how you want your process to operate in the future, based on the customer's value. You need to apply the principles and practices of lean thinking, such as eliminating waste, optimizing flow, reducing variation, and increasing customer focus. You need to redesign and simplify your process steps, inputs, outputs, resources, roles, and metrics to achieve the desired outcomes and benefits.

6 Implement and monitor the future state

The final step is to implement and monitor the changes and improvements that you have designed for your future state. You need to plan and execute the actions, tasks, and resources required to transform your process. You also need to monitor and measure the results and impacts of your VSM project. You need to collect feedback and data from the customers and stakeholders to evaluate the value and performance of your process.