Value Stream Mapping (VSM)

Introduction

Value stream mapping is a lean manufacturing technique used to analyze the flow of materials and information currently required to bring a product or service to a consumer. At Toyota, where the technique originated, it is known as "material and information flow mapping".

1. Goal

The goal of VSM is to identify, demonstrate and decrease waste in the process. Waste being any activity that does not add value to the final product, often used to demonstrate and decrease the amount of ‘waste’ in a manufacturing system.As a result, VSM is primarily a communication tool, but is also used as a strategic planning tool, and a change management tool.

2. Where is it used?

• Value stream mapping is commonly used in Lean environments to identify opportunities for improvement in lead time.
  
• Although value stream mapping is often associated with manufacturing, it is also used in logistics, supply chain, service related industries, healthcare, software development, and product development.
  
  

3. Implementation

• Identify the target product, product family, or service.
  
• Draw a current state value stream map, which shows the current steps, delays, and information flows required to deliver the target product or service. This may be a production flow (raw materials to consumer) or a design flow (concept to launch). There are 'standard' symbols for representing supply chain entities.
  
• Assess the current state value stream map in terms of creating flow by eliminating waste.
  
• Draw a future state value stream map.
  
• Implement the future.
  
  

4. Hand drawn versus tools

• The goal is to create a map, with minimum delay, while observing the target process in situation. Thus, value stream maps are usually drawn by hand in pencil to keep the mapping process simple and allow for simple correction.
  
• However, software tools are emerging as an alternative. A variety are available either as stand alone products or stencils/add-ons to products such as Microsoft Visio, allCLEAR and iGrafx FlowCharter.

Example

In this section, there is an example of "Step by Step guide to Value Stream Mapping". For more details, see Value Stream Mapping How-to guide

Benefits of Value Stream Mapping

From the example above, we can get the benefits of VSM.

• "See the flow" of your value stream and wastes in the flow.
  
• View all products from a system perspective.
  
• Understanding both material and information flows of your value stream.
  
• Draw a blueprint for Lean transformation—the Future State Map.
  
• Prioritize activities needed to achieve the Future State.