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Understanding Value Stream Mapping

Value stream mapping is a technique used to analyze and design the flow of materials and information required to bring a product or service to a customer. It is a visual representation of the entire process, from the initial raw materials to the finished product, including all steps, delays, and decisions along the way. The goal of value stream mapping is to identify and eliminate waste, streamline the workflow, and improve efficiency and productivity.

If you need to understand how work is flowing through a process, what steps are performed, what is adding value and what is not, value stream mapping is the process improvement tool. The best way to perform value stream mapping is by following a sample of transactions as they flow through the process from beginning to end, tally the time spent on value-adding tasks (creating, building, ordering, processing, etc.) versus nonvalue-adding tasks (waiting, storing, traveling, fixing, holding, re-working, etc.). From here, we can prioritize effort to reduce the highest volume of nonvalue-adding activities.

Value stream mapping typically involves creating a detailed map or diagram of the current process, including all the steps and activities involved in creating a product or delivering a service. The map includes information about the materials, equipment, and people involved, as well as the flow of information and materials. Once the current state map is created, we can develop a future state map that identifies opportunities for improvement and eliminates waste.

Value stream mapping can be a powerful tool for identifying and eliminating waste and improving efficiency in manufacturing and service delivery processes. We often use it with other Lean manufacturing techniques, such as 5S, Kanban, and total productive maintenance (TPM).

The step-by-step process for value stream mapping typically involves the following steps:

  1. Identify the product or service being mapped: The first step is to identify the product or service that is being analyzed and to determine the scope of the value stream mapping exercise.
  2. Gather data and information: The next step is to gather data and information about the current process, including details about the materials, equipment, people, and information flows involved. This may involve observing the process, collecting data from process records and reports, and interviewing process participants.
  3. Create the current state map: The current state map is a visual representation of the process as it currently exists, showing all the steps and activities involved in creating the product or delivering the service. The map should include information about the flow of materials and information, the time and resources required at each step, and any delays or bottlenecks.
  4. Identify waste and opportunities for improvement: Once we have created the current state map, the next step is to identify opportunities for improvement and waste. This may involve identifying unnecessary steps, redundant activities, and opportunities to streamline the workflow.
  5. Develop the future state map: The future state map is a visual representation of the ideal process, incorporating the improvements identified in the previous step. It should show the streamlined, efficient process that results from eliminating waste and improving efficiency.
  6. Implement the improvements: The last step is to implement the improvements identified in the future state map. This may involve changing the process, equipment, or training, as well as establishing new policies and procedures to support the improved process.

We typically use value stream mapping when an organization is looking to improve efficiency and productivity in its manufacturing or service delivery processes. It can be especially useful in the following situations:

  • When an organization is experiencing bottlenecks or delays, by identifying and eliminating waste, value stream mapping can help organizations eliminate bottlenecks and reduce delays, improving efficiency and productivity.
  • When an organization is introducing a new product or service, by mapping out the entire process from start to finish, value stream mapping can help organizations identify opportunities for improvement and streamline the workflow for the new product or service.
  • When an organization is looking to reduce costs, by identifying and eliminating waste, value stream mapping can help organizations reduce costs and improve competitiveness.
  • When an organization is looking to improve quality, by identifying and eliminating waste, value stream mapping can help organizations improve the quality of their products and services.
  • When an organization is looking to increase customer satisfaction, by streamlining the process and reducing delays, value stream mapping can help organizations deliver products and services to customers more quickly and effectively, leading to enhanced customer satisfaction.

 Common Mistakes

Some common mistakes people make when doing value stream mapping include:

  • Not involving all stakeholders: It is important to involve all stakeholders in the value stream mapping process, including employees, managers, and customers, to ensure that the map accurately reflects the process, and all perspectives are considered.
  • Focusing only on the production process: Value stream mapping should consider the entire process, from raw materials to the finished product, including all steps, delays, and decisions along the way. Focusing only on the production process can lead to missed opportunities for improvement.
  • Not considering non-value-adding activities: It is important to identify and eliminate non-value-adding activities, as these activities do not contribute value to the customer and can lead to waste and inefficiency.
  • Not following through on improvement plans: It is important to implement the improvements identified in the value stream map to realize the benefits of the process. Failing to follow through on improvement plans can undermine the value of the value stream mapping exercise.
  • Not regularly revisiting the value stream map: The process and the organization's needs may change over time, so it is important to periodically revisit and update the value stream map to ensure it remains accurate and relevant.

Best Practices

Here are some tips from experts on how to do value stream mapping effectively:

  • Involve all stakeholders: It is important to involve all stakeholders in the value stream mapping process, including employees, managers, and customers, to ensure that the map accurately reflects the process, and all perspectives are considered.
  • Focus on the entire process: Value stream mapping should consider the entire process, from raw materials to the finished product, including all steps, delays, and decisions along the way. This will help identify opportunities for improvement throughout the process.
  • Identify and eliminate waste: One of the major goals of value stream mapping is to identify and eliminate waste. Look for activities that do not add value to the customer and consider ways to eliminate or streamline them.
  • Use visual tools: Value stream mapping is a visual tool, so use charts, diagrams, and other visual aids to represent the process. This will make it easier to understand and communicate the process.
  • Regularly review and update the map: The process and the organization's needs may change over time, so it is important to periodically review and update the value stream map to ensure it remains accurate and relevant.
  • Follow through on improvement plans: It is important to implement the improvements identified in the value stream map to realize the benefits of the process. Make a plan and follow through on it to ensure that we realize the improvements.

For more information on other powerful tools and techniques, we recommend checking out our Management Consulting Toolkit.


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