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Value Stream Mapping

Value stream mapping ( VSM) is the basic and most important tool for the implementation of lean practices. Here basic idea of value stream mapping and how to map your value stream is explained in brief. As many organizations begin their journey towards a lean enterprise they are finding the road can be difficult and filled with obstacles. The question that is most asked is where do we begin? Businesses many times take a haphazard approach to lean implementation without establishing a clear direction or roadmap for the company. Each organization requires a different approach to implementing lean based on the business environment, the goals and objectives of the business, and the current manufacturing environment. Value stream mapping (VSM) is an excellent place to start the lean journey and understand the sources of waste in a company’s operation.

Before we define Value Stream Mapping and the benefits it provides, let’s step back and first review the definition of Lean Manufacturing. Lean Manufacturing is the elimination of The 7 Manufacturing Wastes. A lean manufacturing process is one that continuously strives to eliminate waste, thereby increasing the percentage of time devoted to value-adding activities. The more value you can add in your overall process, the more effective your operation will be. As long as you focus your efforts on waste elimination, you are on your way.

There are many techniques that will help you to eliminate waste in your organization. For one, creating manufacturing cells can eliminate the wastes of material handling, excessive motion, work-in-process inventory and more. Employing Total Productive Maintenance (TPM) can eliminate the wastes of unplanned downtime, waiting, defective parts and others. Effective 5S or the 5 pillars of the visual workplace is a systematic process of workplace organization that has many benefits: higher quality, lower costs, reliable deliveries, and improved safety. Quick-changeover methods will reduce your setup costs and batch sizes (inventory). Even changing the layout of the plant will often eliminate the wastes of transportation, over-production, unnecessary processing and other wastes.

These are all excellent tools, but are often not applied to the right areas of the business until an organization begins Identifying Your Value Streams. To begin a Lean journey Value Stream Mapping is a critical initial step in lean conversions.

Value Stream Mapping is a method of visually mapping the flow of materials and information from the time products come in the back door as raw material, through all manufacturing process steps, and off the loading dock as finished products. This is the Value Stream.

Mapping out the activities in your production process with cycle times, down times, in-process inventory, material moves, information flow paths, will help you visualize the current state of the process activities and guide you towards the future desired state.

The process includes physically mapping your "current state" while also focusing on where you want to be, or your "future state" map, which can serve as the foundation for other Lean improvement strategies discussed above.

VSM can serve as a starting point to help management, engineers, production associates, schedulers, suppliers, and customers recognize waste and identify its causes. The goal is to identify and eliminate any activity that does not add value to the final product. Value Stream Mapping can be a communication tool, a business-planning tool, and a process change management tool.

Value stream mapping - benifits

1. Helps visualize the production process .

2. Helps you see more than waste¬- it helps you see the sources of waste in your value stream.

3. Shows the linkage between the information flow and the material flow.

4. Makes decisions about the flow apparent, so you can discuss them.

5. Forms the basis of an implementation plan.

6. Ties together lean concepts and techniques to enable improvements that show up in your organization's bottom line.

One of the first things you notice when completing a value stream map of your current operation is how eye-opening an experience this can be, especially if you complete the map with a cross-functional team of people from the organization (which is the best way to go about this effort). It is amazing how things that many of us think are common knowledge is complete revelations to others. So the first benefit of the process is creating a common understanding of just how and when things occur.

Once you have generated a value stream map, problem areas stand out very clearly. You will see places where inventory is building up, both before and after production processes. You will see where long machine setup times and unplanned downtime are an impediment to flow. You will see evidence of unbalanced labor, or machine time, between processes creating delays. You will see how low first pass yield rates in certain processes drastically curtail the entire process flow. You will see just how many areas of the company schedule and expedite the production process. You will also see how the rate of customer demand equates to your rate of production. In short, you will easily identify the place, or places, in the value stream where you will need to start your waste elimination efforts.

Once you have completed the value stream map for your current operation, you will be able to visualize how things could operate. This vision will be the basis of your future value stream map. In this value stream map, you will have the ability to eliminate processes that add no value and combine or streamline those that do. You will highlight areas where your suppliers can provide better services. You will eliminate redundant and unnecessary information flows. All of these changes will support your organization's goal of providing the highest level of service to your customers.

Value stream mapping is a powerful tool that will optimize resources, streamline operations, and eliminate waste within any organization. Generating current and future value stream maps and combining them with a detailed implementation plan to transition from one to the other is an ideal way to begin your company's lean transformation.

Value Stream Analysis: Mapping the Current State

A current state value stream map will enable you to see the complete door-to-door flow in your facility and to identify and prioritize areas for improvement. Before you create a current state map, you should have already identified the value stream you want to analyze. You will need the following items before you begin:

1. Pencil and eraser (Always map using a pencil because you will make mistakes.)

2. Paper (11” X 17” is best)

3. Stopwatch to obtain process, cycle, and set-up time data. (Don’t make the mistake of relying on standard times in the system.)

Below is a list of the information you will be collecting at each process step:

1. C/T Cycle Time – how often a part is completed by a process. Use a stopwatch if necessary. (In some cases, machines will give you this information).

2. C/O Changeover time – the time required to switch from producing one product type to another type.

3. Uptime – the percentage of time in which a machine or process is available on demand.

4. EPE (production batch sizes) - the batch size expressed in time (days, etc.). EPE stands for “every part every _____.”

5. Number of operators

6. Number of product variations

7. Pack Size – the number of items in a shipment

8. Working Time (minus breaks)

9. Scrap Rate



Begin with the customer’s requirements. Draw the outside source symbol to indicate the customer’s location to which your product ultimately goes. Draw a data box and record the customer requirements (units required/month, pack size, etc.). There may be multiple customers. Next, continue working backwards with the step just before product arrives at the customer, the shipping method. Again, using the appropriate icon, note how frequently product is shipped to your customer(s). For example, if you ship via truck on Tuesdays and Thursdays, show the truck icon with “Tues and Thurs” written inside.

Next, go to your shipping process and draw a process box for shipping. Collect any of the relevant process data and enter it in a data box. Before the shipping operation, draw an inventory icon and indicate how much inventory is waiting for shipment.

You are now ready to analyze the production processes. The process box should indicate one area of material flow. Working backwards, create process boxes for each area of material flow. Collect and note all appropriate process data, and show inventory in between process boxes. The last step in the product flow portion of a current state value stream map is to show the transportation of incoming materials and the supplier(s), again using the outside source symbol.

After the physical product flow portion is complete, you need to create the information flow portion of the current state value stream map. This portion is drawn above the physical flow, and it generally begins with the customer’s requirements again. Using process boxes and information boxes, map the information flow from the customer’s requirements back to your supplier(s). For example, your customer gives you a monthly forecast (information box), which is fed into your production control system (process box). The production control system creates a forecast for raw materials that you give to your suppliers.

Lastly, you must tie in your information to your physical product flow. For each physical process step, ask each operator how he/she knows what to work on next. This is a key question that will reveal how effective the information flow is. Draw an arrow from the information flow item that answers this question to the physical flow process box. For example, if there is an assembly operation that is based on a weekly schedule, draw a line with an arrow from the weekly schedule to the assembly process box. Then ask the question, "where does the weekly schedule come from?" The answer is typically production control. Another example is your shipping process. Your shipping process might be based on sales orders entered into your system; draw a line from your sales order system to your shipping process box. After you've done this for all of your physical processes, your current state value stream map is complete.

You are now ready to analyze this current state map, and create a lean future state value stream map.

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