Value Stream Mapping

Identifying and decreasing waste. Explanation of Value Stream Mapping of Ohno and Shingo ('91). Jones ('95). Hines and Rich. ('97)

Value Stream Mapping

What is Value Stream Mapping? Description

The Value Stream Mapping method (VSM) is a visualization tool oriented to the Toyota version of Lean Manufacturing (Toyota Production System). It helps to understand and streamline work processes by using the tools and techniques of Lean Manufacturing. The goal of VSM is to identify, to demonstrate and to decrease waste in the process. Waste is defined as any activity that does not add value to the final product. The word is often used to demonstrate and decrease the amount of "waste" in a manufacturing system. VSM can thus serve as a starting point to help management, engineers, production associates, schedulers, suppliers, and customers to recognize waste and identify its causes. As a result, Value Stream Mapping is primarily a communication tool, but it can also be used as a strategic planning tool. And as a change management tool.

In order to do this, the Value Stream Mapping method visually maps the flow of materials and information. From the moment that the products are entering the back door as raw materials. Via all manufacturing process steps. Until the moment that the products leave the loading dock as finished products.

Mapping out the activities in the manufacturing process with cycle times, down times, in-process inventory, material moves, information flows, helps to visualize the current state of the process activities and guides towards the future desired state.

The process usually includes mapping the "Current State" and the "Future State". These then serve as the foundation for other Lean Manufacturing strategies.

History of Value Stream Mapping

The use of waste removal to achieve competitive advantage inside organizations, was pioneered in the 1980s by Toyota's chief engineer, Taiichi Ohno, and sensei Shigeo Shingo and is oriented fundamentally towards productivity rather than towards quality. The reason for this is thought to be that improved productivity leads to leaner operations which help to expose further waste and quality problems in the system. Thus the systematic attack on waste is also a systematic assault on the factors that are underlying poor quality. And on fundamental management problems. The seven commonly accepted wastes in the Toyota production system were originally (reformulation by Jones between brackets):

Overproduction (faster than necessary pace).
Waiting.
Transport (conveyance).
Inappropriate processing.
Unnecessary inventory (excess inventory).
Unnecessary motion.
Defects (correction of mistakes).

Peter Hines and Nick Rich have suggested the following tools (Article: "The seven value stream mapping tools" - International Journal of Operations & Production Management, Vol. 17, No. 1, 1997, pp. 46-64.).

Seven Value Stream Mapping Tools

Process activity mapping. Origin: Industrial Engineering.
Supply chain response matrix. Origin: Time compression/logistics.
Production variety funnel. Origin: Operations Management.
Quality filter mapping.
Demand amplification mapping. Origin: Systems Dynamics.
Decision point analysis. Origin: Efficient Consumer Response/logistics.
Physical structure mapping.

Value Stream Mapping Forum (12)

Value Stream Mapping Training
"Is there any training program to implement VSM in any organization? Preferably VSM in Automobile Industry..."

Value Stream for Design Engineering and PMI
"Hi everyone, I use a value stream process for design engineering that also works in conjunction with PMI's project management principles.
For those who aren't familiar with these principles, they incorporate "project" fundamentals that initiate, plan, execute, monitor & control & close a project.
Through my value stream there are a set of requirements for each major phase. At least for the teams I manage, this seems to be a good process for the design engineers to follow."

Value Stream Management in IT Services
"Hi, I'm currently looking in to the "cost and benefits" of implementing value stream management in a global IT function.
We have gone through a period of cost cutting and have further needs to reduce cost. Hence value stream management seems like a potential approach.
I'm looking for companies (preferably in the service sector) that are using VSM to discuss experiencies. Appreciate your comments."

Changes in Behavior in Value Stream Mapping
"Note that the realization of the action plan in VSM typically requires changes in activities and processes, but may also require changes in behavior."

Value Stream Mapping Software
"In what way will a software program help with value stream mapping? What are the criteria of selecting the most suitable software program.
Please provide help in getting answers to these problem."

Defining Value Stream Mapping Areas
"I am in process of implementing "value stream mapping" as a tool to serve industries. I am facing constraints in the implementation.
After documenting the process under review and charting the present value stream, what is the process to identify the areas having least value addition and are on highest priority of value stream optimization."

Mappping Outsourced Activities in Value Stream Mapping
"Hi everybody, I would need an advice concerning the mapping of an outsourced activity in the production of one company where I'm working on my thesis. I haven't found any information about how to map the value stream when the production isn't all done in one company. In my case, the original company starts to work on the product and because it's the smaller one, the product is then transported to another company which has the needed equipment for the operation needed. Then the product is transported back to the original company. I would like to know how to map this flow.
If you have any experience with some similar case or if you have any ideas concerning how to map this, I would be very grateful for them. Thanks for your comments!"

Value Stream Mapping Plan Example
"I need to compare a VSM plan example. Please share a case if you can."

4 Value Stream Mapping Phases
"The 4 Phases in VSM are:
1. Current State Map of material flow and activities
2. Future State Map
3. Action Plan
4. Implementation"

Value Stream Mapping in a job shop
"I am currently working in a company where I have been told to implement VSM. But the problem is that its manufacturing activities are like a job shop and there is no repeatability.. Is VSM possible in this environment??"

Value Stream Mapping Quotes
"Challenge everything, assume nothing and continuously improve. Copyright Colin Holmes. This way, nothing is overlooked."

Value Stream Mapping within Logistics Operations
"I am currently in the process of mapping the supply chain within our facility. Having read both Value Stream Mapping (Tapping, Luyster & Shuker) and Learning to See (Rother & Shock) I should be focusing on a product family to assess the value and the waste rather than the overall material flow within the said process. What I wish to capture is the waste within the logistics support functions. For example good receipt into store and engine dispatch from store rather than the flow of material throughout the internal process. Any ideas in the right direction would be greatly appreciated."

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