Value stream mapping is a powerful tool for business process improvement. It helps you identify and eliminate waste, improve flow, and increase customer value. In this article, you will learn how to measure and improve the performance of your value streams using value stream mapping.
A value stream is the sequence of activities that deliver value to a customer, from the initial request to the final delivery. It includes both the value-adding and the non-value-adding steps, such as processing, waiting, transporting, inspecting, and storing. A value stream can span across multiple departments, functions, and systems.
Value stream maps provide powerful and insightful visuals for you, as a project lead, & the rest of your project team which includes your executive sponsor(s). Once completed, you can not only see the process, but who is interacting with it, how well its performing, cycle time (work time) per step, wait times between steps, lead time (end to end completion time including waits), & overall process efficiency in % as well as being able to calculate Sigma scores. Think of it like a flow diagram meets dashboard. I typically recommend a unique way of value stream mapping that provides unparalleled depth and clarity. Matt Rebeiro - Challenge the Status Quo #BusinessProcessImprovement #LeanSixSigma #ProjectManagement #ValueStreamMap #Process
An essential element in any value improvement is how the people at ALL levels in the organisation become engaged in the process. Too often, those who physically create the value are omitted from the process creation, because of poor communication, usually supported by a silo mentality. The days when any organisation can think it has all the answers residing in its senior management are long gone. The pace of change is such that for it to be truly successful, requires input from the whole team and in many cases additional external support, if the programme of change is to deliver sustainable benefits.
A value stream represents the series of steps or activities that deliver a product or service to a customer. It includes everything from the initial idea through production to delivery and after-sales support. Understanding your value stream helps identify where improvements can be made to enhance efficiency, reduce waste, and increase overall performance.
A value stream map is a visual representation of a value stream, showing the flow of materials, information, and people, as well as the key metrics, such as cycle time, lead time, inventory, and quality. To create a value stream map, you need to define the scope and purpose of the map, collect the data, and draw the map. When drawing the map, you should include customer and supplier icons, process boxes, data boxes, inventory triangles, information flows, material flows, and kaizen bursts. You can use tools such as check sheets, stopwatches, flowcharts, and interviews to gather the relevant information, and software such as Visio, Excel, or Lucidchart to draw the map. The map should depict the different elements of the value stream, including the external entities that interact with your value stream, the main steps or activities that add value to the customer, and the key metrics for each process.
To create a value stream map, start by identifying all the steps involved in delivering a product or service. Map out each step in sequential order, including inputs, outputs, and the flow of information or materials. Next, collect data on each step, such as time taken and resources used. Use this information to draw the map, showing the current state of the value stream. This visual representation helps identify areas for improvement and streamline processes.
A value stream map can help you identify sources of waste, inefficiency, and variation in your value stream. To analyze your map, ask yourself what value-adding and non-value-adding steps are present and how you can eliminate or minimize the latter. Additionally, consider the bottlenecks or constraints in the value stream and how you can increase the capacity or throughput of the bottleneck processes. Additionally, look for causes of variation or inconsistency in the value stream and how you can reduce the variation or standardize the processes. Lastly, consider the customer requirements and expectations for the value stream and how you can meet or exceed them.
Certainly! To analyze a value stream map, begin by examining each step for inefficiencies like delays, bottlenecks, or excessive waste. Look at metrics such as time, cost, and resources used in each stage. Identify non-value-adding activities and areas where improvements can streamline the process. This analysis helps you target specific steps for optimization, ultimately improving the overall performance of your value stream.
Designing a future state value stream map requires defining the future state goals and objectives, applying lean principles and best practices, and drawing the future state map. The target metrics and performance indicators should be identified, such as the amount of waste, cycle time, lead time, inventory, and quality to reduce or improve. Lean principles, such as pull, flow, takt time, continuous improvement, and customer focus, should be applied, as well as best practices, such as 5S, kanban, kaizen, and value stream management. The future state map should reflect the changes and improvements, and include an action plan and timeline for implementation.
A value stream map is not a one-time project, but a continuous process of improvement. To sustain the changes and the improvements in your value stream, you need to communicate and engage the stakeholders, such as the employees, the managers, the customers, and the suppliers. Share the vision, the goals, and the benefits of the value stream map, and solicit their feedback and input. Execute and monitor the action plan and the timeline for implementing the future state map, assign the roles and the responsibilities, allocate the resources and the budget, and track the progress and the results. Additionally, review and improve the value stream map periodically. Compare the actual performance with the target metrics, identify the gaps and the issues, and implement the corrective and the preventive actions.