Value Stream Mapping Kit

Value Stream Mapping Guide

Introduction:

A value stream map is a visualisation tool that shows the flow of material and information as a product makes its way through the value stream. It provides a solid foundation for understanding how activities and operations are connected and forms the basis for analysing the process. It is a powerful Lean tool for eliminating waste from a system.

Lean is a management philosophy aimed at the elimination of waste, which is broadly defined as any activity that does not create value for the customer.

The 8 Lean Wastes:

•Defects

•Overproduction

•Waiting

•Not utilising talent

•Transport

•Inventory

•Motion

•Excess processing

Based on Lean thinking principles, the tasks performed can be classified into the following three categories:

1.Value-added: These tasks are the ones that genuinely move a product forward and create value that external customers are willing to pay for.

2.Non-value-added but necessary: These tasks may not move the product forward or create value that external customers are willing to pay for, but they are required under current circumstances.

3.Non-value-added: These tasks do not move the product forward and create no value for external customers. Such tasks should be identified and eliminated.

Value Stream Mapping (VSM):

Value Stream Mapping (VSM) is one of the critical tools in the implementation of Lean Manufacturing across organisations. It effectively reduces waste in any process by distinguishing between value-added and non-value-added activities.

VSM uses a universal language represented through symbols, making it an essential tool for analysing both material and information flow in a manufacturing system.

It assists in mapping the current state and developing a future state map, aiding in the achievement of continuous improvement goals.

Characteristics:

•The initial VSMs that companies perform are often door-to-door value streams, which map processes or internal operations within the organisation.

•A VSM must be detailed enough to allow for the identification of all non-value-added steps, no matter how small.

•The creation of a VSM is an iterative process. As interventions are undertaken to eliminate waste, the VSM evolves and must be re-evaluated in comparison to an “ideal” state. This iterative nature reflects the continuous improvement ethos of Lean.

Objectives:

The main objectives of Value Stream Mapping are to:

•Identify opportunities for improvement.

•Eliminate waste with the support of operational staff.

•Observe the material and information flow in real time, from customer order placement to the delivery of raw materials from suppliers and through to production.

•Represent the process visually to guide improvements based on a carefully developed plan.

Elements:

The five key elements of a Value Stream Map are:

1.Customer: A customer is a person or company that receives, consumes, or buys a product or service from your organisation.

2.Supplier: A supplier is an entity that provides goods and services to your organisation, usually a manufacturer or distributor.

3.Information flow: Symbolises the movement of information between people and systems required to convert a customer order into a product.

4.Material flow: Represents the flow of material from the procurement of raw materials to their conversion into products and delivery to customers.

5.Timeline: Located at the lowermost part of the VSM, the timeline indicates the value-added and non-value-added time associated with each operation.

Current State Map

The current state map visualises the entire ‘as-is’ process in the correct order of occurrence for participants. Mapping begins with the selection of product families, i.e. products with common features or similar processes. Interestingly, value stream maps are read from right to left — with the customer on the right, your organisation in the middle, and the supplier on the left.

The current state visualisation should enable participants to identify areas for improvement. These improvements are typically aimed at transforming from a push-based system to a pull-based system.

To identify root causes of issues, we recommend using our A3 Problem Solving Board.

Future State Map

The future state map is a streamlined version of the current state. Its goal is to develop a continuous flow wherever possible and embed a pull-based system. It uses supermarkets to control production when continuous flow is not possible upstream. It sends the customer schedule to just one process — the pacemaker — and develops the ability to make “every part every day” in processes upstream of the pacemaker.

The ultimate aim is to produce products at takt time — the rate at which a product must be manufactured to meet customer demand.

VSM Symbols:

For a comprehensive guide to VSM, download our PDF here.