Value Stream Mapping

VSM

Value stream mapping (VSM) is a simple but effective Lean / Lean Six Sigma tool that provides a visual representation of the flow of materials or services and information through the organization. It captures all the actions (value added as well as non-value added) required to bring a product or service through the main flows essential to every product or service. It is an essential tool to identify waste, constraints and bottlenecks, reduce cycle time, reduce lead time and improve processes.

The best way to learn VSM once you have attended Value stream mapping (VSM) training ( part of Lean Training curriculum) is to actually map it. Below is a summary of the steps for value stream mapping:
1. Select a product family
2. Draw the current state value stream map
3. Design the future state value stream map
4. Develop an action plan to bring the organization from the current state to the future state value stream map

1. Select a product family
A product family is a group of products that pass through similar steps and common equipment. Each product family requires one VSM as drawing all the product family on one map is too complicated.

2. Draw the current state value stream map

• Begin with a quick Gemba (the place where work happens) walk of the entire end-to-end process.
• When drawing the current state VSM, begin with the processes that are most directly linked to the end customer, and travel upstream. Do not start from the raw material receiving and go downstream.
• Gather more information and data for the data boxes by Gemba walk.
• Draw the current state VSM
• Analyse the current state VSM
• Make a list of potential improvements
• Some of the common problems identified / improvement opportunities are as follows:
  – lack of smooth flow of process
  – poor information flow
  – excessive inventory
  – long lead time/cycle time
  – long set-up/changeover time
  – low equipment uptime and availability
  – high error/ defect rate

3. Develop the future state VSM
The objective of the future state VSM is to develop an agreed “ideal state” VSM. It is important to note that the ideal state is a state of optimized flow of the end-to-end value stream and not a fragmented, sub-optimised processes. Having many projects that improve sub-processes but do not contribute to overall end-to-end value stream may make everyone feel busy( some may even feel good!) but may not contribute to overall customer value improvement and business improvement, but will consume precious resources (time, manpower).

4. Develop an action plan
Once we have completed the current state VSM and future state VSM, as well as the list of potential improvements that will enable us to transform from current state VSM to future state VSM, the next step is to create an action plan and take action to implement the improvement plan. Use the current state VSM and future state VSM to communicate and get alignment throughout the process to stay focused.

Some important tips on VSM:
– always draw by hand using pencil. Post-it pads may come in very handy. Resist the temptation to use a computer.
– management commitment and support is critical to the success of the entire process. Engage the management by having regular reviews or toll-gating sessions.
– make VSM a common language within your organisation.
(Source : Learning to See: Value Stream Mapping to Add Value and Eliminate MUDA, 1999, by Mike Rother and John Shook)

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