Value Stream Mapping

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

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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.

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Value Stream Mapping Forum

Recent User Comments

    			 
  			   Juan Cruz - Mexico
  	       
  		     VSM Plan Example
  	  		 "I need to compare a VSM plan example. Please share a case if you can."
  			   
    	  		 8

    			 
  			   Bernie - USA
  	       
  		     4 VSM Phases
  	  		 "1. Current State Map of material flow and activities

2. Future State Map

3. Action Plan

4. Implementation

Note that the realization of the action plan typically requires changes in activities and processes, but may also require changes in behavior."
  			   
    	  		 2

    			 
  			   harshil - INDIA
  	       
  		     VSM 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??"
  			   
    	  		 7

    			 
              - England
  	       
  		     Value stream mapping
  	  		 "Challenge everything, assume nothing and continuously improve. Copyright Colin Holmes. This way, nothing is overlooked."
  			   
    	  		 0

    			 
              - Taiwan
  	       
  		     VSM for R&D
  	  		 "Under the serious financial crisis most companies are implementing downsising and lean processes for R&D, hoping to quickly promote the unique and specified products into the market."
  			   
    	  		 0

Best User Comments

    			   
    			     Joe O'Brien - US
  	         
  				   VSM in general
  				   "Always remember to use "Common Sense " in your VSM."
    			   
        	  		 4

    			   
    			     James - Richards
  	         
  				   VSM 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."
    			   
        	  		 3

    			   
    			     Matt Arias - US
  	         
  				   Collaboration VSM
  				   "Interview the frontline employees for their input.  This will help align buy-in with future implementation."
    			   
        	  		 0

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12manage for:

	● Vytis (Lithuania)	VSM in a Shop	"I am sure it is possible, no doubts. Waste can be found and eliminated everywhere. Read once again what is VSM and try it :)"
	● (Canada)	VSM in a Job Shop	"I implemented VSM in job shop environment. I broadly grouped products based on common processes and prepare VSM for the group rather than product."

● Tessa (UK)	Value Stream Mapping	"What do you mean with this, Joe?"
● Danish Noor (USA)	Nothing is common as common sense.	""There is nothing common as common sense". --- Danish Noor. If jobs, tasks & assignments are to be based on common sense, then why there is a need of knowledge management data base for problem like solution engineering? "
● Owen (Phillipines)	VSM trainings and seminar	"It's better if you provide trainings and seminars on Value Stream Mapping here in the Phillipines"
● (Netherlands)	Common sense	"Joe doesn't mean solely common sense (if you can define that). I think he means not to stare solely at the theory but to integrate your own intelligence as well. With which I agree in any case."
● (Singapore)	VSM in general	"Value stream mapping is best taken "As is" End user involvement will validate the mapping process, so that it is not a "perceived" map"

	● Dave Doane (US)	VSM	"Important to document the "as-is" VSM before focusing on waste. Looking for waste before understanding the system often leads to fixing the wrong problem."
	● Ken (USA)	Focus on Specific Process	"Focus on the specific process and it's inputs/output. Clearly define the process steps and what happens to the "product" at and in between the process steps all the way to the final output. As you walk, define and document, you will surely begin to "see" the opportunities appear right before your eyes. The main thing is to keep focus on the specific logistics function's process and not be distracted by the process steps of prior, feeder, and subsequent processes. Good luck."