Value Stream Mapping
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Value Stream Mapping is a Lean Six Sigma methodology [1] often used to help organisations understand which part of business processes add "value" to the end product or service being produced and which parts of their processes add waste (or non-value add) and can therefore be removed. As such - Value Stream Mapping is often utilised within continuous improvement programs.
Generally defined as the entire material and information flow of a product or service from a producer to a consumer, it is method of visually mapping a product's production path from "door to door". It includes all the actions that are required to bring a product through the main flow. It shows the linkage between the information flow and the material flow.
Each task within the flow is broken out to describe the process or cycle time, downtime, set-up time, scrap rate, inventory (work-in-process) and number of employees. The overall map produces a picture of the order flow (total number of orders per day), the lead time (total time to produce one unit), and the Overall Equipment Effectiveness. The result is a picture of the operating effectiveness of the flow.
Once complete, the flows are broken down and measured by value vs. non-added value processes as a snap shot of the "current state" of the value stream. Next a "future state" is produced depicting a lean process with most of the waste removed. Now action steps can easily be identified to eliminate the non-value added steps within the process in order to meet customer demand within the "takt time" (usually expressed as units per time period).
The process of value stream mapping helps to visualize the waste in the system and forms the basis of the implementation plan. It is much more useful than quantitative tools and works well with other layout diagrams that produce a tally of non-value added steps, lead time, distance traveled, the amount of inventory, etc.
A key element of Value stream mapping is the use of measures or Key Performance Indicator (KPI's). Productivity, Not right first time and stock turns are just some of the typical measures that can be applied during the VSM process and where they don't exist within a business Value stream mapping encourages their deployment as part of the Future state.
Although Value Stream Mapping is often associated with manufacturing, it is equally applicable to Logistics, Supply Chain and some service related industries.
Hines and Rich (1997) defined seven Value Stream Mapping tools[2] they are:
1 Process Activity Mapping
2 Supply Chain Responsiveness Matrix
3 Product Variety Funnel
4 Quality filter mapping
5 Forrester effect mapping
6 Decision point analysis
7 Overall Structure Maps
[edit] See also
[edit] External Links
Value Stream Mapping Case Studies
Value Stream Mapping How to guide
