What is value stream mapping and what are the benefits?

What is Value Stream Mapping?

Value Stream Mapping, or VSM, is a LEAN methodology and is used to visualize, analyze and improve processes required to deliver a product or service.

VSM represents and controls the entire information and material flow from origin to delivery to the end customer through the use of diagrams and symbols to chart the different activities.

It is an essential map for easily identifying waste, inefficiencies and opportunities for improvement.

Value Stream Mapping is essential to clarify everything that brings added and non-value to the customer, thus eliminating activities for which the consumer is unwilling to pay

In particular, it allows to visualize and optimize:

- The material flow, i.e., the process progress, from the raw material, to the finished product;

- The information flow, i.e., the passages of information from one office to another;

- The workflow of people and activities;

- The schedule of each activity.

Value Stream Mapping History

Value Stream Mapping originated in Toyota's production philosophy in the 1980s.?

Using this tool, the company was able to eliminate all kinds of waste, increasing efficiency exponentially. Today, VSM has become crucial for many continuous improvement teams, expanding not only in production, but also in areas such as IT, healthcare and logistics.

Value Stream Mapping Goals

VSM has a double goal:

• To improve each individual process in terms of productivity, efficiency and waste optimisation.
• To improve and optimise the entire organisation globally.

An excellent VSM is therefore not only concerned with optimising the individual business process or a part of the organisation, but to focus on improving efficiency overall.

Benefits of Value Stream Mapping

Benefits of value stream mapping include:?

1. Identifying and eliminating waste: thanks to VSM, you can see where waste accumulates within the production process, including overproduction, waiting, or unnecessary processing.
2. Visualisation of the entire value stream: all steps, both those that add value and those that do not, are shown, giving an overview of the entire flow.
3. Enabling continuous improvement: Value Stream Mapping highlights the current workflow, showing opportunities for continuous improvement

How to create Value Stream Mapping?

Value Stream Mapping is used to represent the starting point, to understand the current situation 'Current State', establish improvement strategies and define the future state of the process 'Future State'.

Current State

Current State Mapping, CSM, is essential to visualise the complete flow to realise a product or service.

The stages for drawing up the value stream map are:

1. Identify the main stakeholders, i.e. the customer, supplier and production control:
2. Report the customer's requirements in terms of volumes, order frequency, batches and delivery times;
3. Enter all information for process management;
4. Calculate the Takt Time (TT), the time frame required to manufacture products in order to guarantee an adequate level of customer satisfaction;
5. Indicate transport methods used and shipping frequencies;
6. Report supplier information and data (minimum delivery times and lots, supplier reliability, procurement lead time);
7. Identify all activities that make up the production process, reporting all production parameters (cycle time, set-up time, number of shifts and resources employed);
8. Calculate the process cycle time;
9. Calculate the total production time;
10. Calculate the process flow index, given by the ratio of the cycle time to the production lead time. It is an indicator of process efficiency, in fact, an index tending to 1 indicates an excellent production LT.

Future State

Future State Mapping aims to present the material and information flow streamlined by eliminating all waste.

Some solutions to represent this process are:

• Thinking outside the box;
• Analysing individual activities that might report problems or opportunities for improvement;
• Finding the 7 wastes identified by Lean Manufacturing;
• Reducing non-value-added activities;
• Focus first on low-cost improvement activities with immediate impact;
• Do not waste any ideas generated during the mapping phase of the current state.

Once the analysis has been carried out, you will proceed to make a second map, in order to obtain a balanced flow that allows the company to satisfy customers quickly and efficiently, without penalising production, quality and turnover.

The VSM symbols

Value Stream Mapping symbols vary from different organisations, but generally come under these four macro-categories: process, material, information and general.

Here in these tables we list the most frequently used symbols:

• Process

• Material

• Information

• General

How to develop VSM with the Kanban method

Kanban is one of the most reliable and easy-to-implement VSM tools.

It is an intuitive solution that allows the continuous improvement team to work and apply changes flexibly and in a short time.

Furthermore, you only need two tools to map the process: a Kanban Board and Kanban cards to assign tasks to each team member.

The steps for developing VSM with the Kanban method are:

1. Choose a Kanban Board: you should select the most convenient method to start mapping the flow. You can either adopt a board or software.
2. Define the map's purpose and the goals to be achieved: then you need to bring the team together and explain to them, the goals you want to achieve and assign tasks.
3. Divide and visualise the workflow activities: within the kanban board place three predefined steps: to-do, in-progress and done. A precise mapping of all activities will enable the team to have an overall view of the workflow.
4. Analysing the map: in this case it is necessary to select some metrics and indicators to monitor. These include:

• Lead time vs. takt time: both must be aligned, because even if you are fast during processing but take too long to send the order, you lose efficiency.
• Amount of WIP (work in progress): a key indicator in Lean methodology, as the higher the number of work in progress, the longer the lead time.

Value Stream Map Results

VSM brings multiple benefits to the production process:

• Provides a visualisation of the entire process and what is actually happening
• Highlights opportunities for improvement
• Provides a baseline for Lean implementation

In companies, usually 60% of work is waste, 35% of activities are without added value, but necessary, and only 5 % bring added value.

Reducing inventories, optimising space, and eliminating repetitive and non-ergonomic activities enable organisations to increase productivity and flexibility, and increase customer satisfaction.

If you want to change your company for the better, you have to re-examine all business processes, from production to administration.

Whether it is a manufacturing or service company, Value Stream Mapping is a key tool for innovating and streamlining the enterprise.

A map that is simple and flexible, able to adapt to your own business and future developments.

Sources

• https://www.make-consulting.it/value-stream-map-la-guida-completa/
• https://www.leanmanufacturing.it/strumenti/valuestreammapping.html
• https://kanbanize.com/it/lean-management-it/valore-spreco/vsm
• https://www.jpsconsulting.it/value-stream-mapping/