What is Value stream mapping? – Lean Tool

Value Stream Mapping is a Lean tool which is jotted down with paper and pencil. It is helpful in identifying the flow of information and material of a product or service which passes through the value stream.

This value stream map of Lean is different from the process map of Six Sigma in the following four ways:

1. Value stream mapping enables gathering a much broader information range than that done by process mapping typically.
2. It is placed at a higher level (5 to 10 boxes) than the process maps.
3. It is employed at a broader level, that is, right from receipt of raw material to the delivery of finished product.
4. It enables identification of focus for future sub-projects, projects, and/or Kaizen events.

In order for an action to be value added, it must fulfill the following three requirements:

1. Payment is guaranteed by the customer for this action.
2. The action must be performed in the right manner at the first instance itself.
3. It must effect a change in the product/service in some way.

When you check the ‘Seven elements of waste’, you can further split into the following ways for categorization:

1. Percentage True Value Added
2. Percentage True Non-Value Added
3. Percentage Necessary Waste (which is a legal requirement)

A value stream map, also called the end-to-end system map, focuses on the information and management systems pertaining to basic process, rather than mere product activity. It aids in reducing the cycle time because it enables you to understand not only the process flow, but also the decision-making flow.

Ideally, you can first have your process mapped, and then you can map the information flow above it. This helps in enabling the process flow to start. While coming to cost and quality, value always equates quality over the cost. It means that the quality increases as cost reduces. There are times when costs increase as we tend to improve the quality. But an improved quality gradually leads to reduction of costs like hidden or opportunity costs in the long term.

Types of Value steam maps

There may be several types of value stream maps, herein we are going to discuss five different types of VSM. Actually, the use of the value stream mapping can be depending on the specific purpose of the analysis. So, let’s check each:

1. Current state mapping. In this type of value stream map are covers the current state of manufacturing processes. It may include the flow of the materials, time details, resources details, and associated details for each step.
2. Future state mapping. This type of map describes the roadmap with visualize possible future state in the mapping. It can manufacture processes require any enhancements in the current processes, this map will help you to understand how the map will be look like after changes.
3. VSM for material flow. This is actually typical value stream map where you can describe the full map of the material flow. It may contain map – from raw materials to delivery of the goods to customers.
4. Value stream mapping for Information flow. This is actually little different type of map. Herein, the map will be directive shows the flow of information through a process. It may generally contain communications between one department to another department.
5. Extended value stream mapping. This is actually extended version of the materials flow map. In this map we can include suppliers, partners and interested parties in the process.

Here we show different types of maps that uses for a different type of perspective, and level of requirements. It is also possible; a manufacturing unit can manage multiple types of maps to increase visualization of processes.

Using value steam mapping

When you wish to improvement, and want to increase efficiency of the processes, you can create value stream mapping. Using the VSM, you can visualize of manufacturing processes, where entire flow can describe on visual steps with associated details. Here as below, some points are describing which is showing – how this tool is helpful in the manufacturing units:

1. Identifying inefficiencies in processes. The VSM is specific tool where you can visualize process steps on the map format. Obviously, by reviewing the map, you can easily identify inefficiencies and causes that affecting efficiency of processes.
2. For reduce lead time. The mapping can help to management for identifying areas where lead times can be possible to reduce. That may be make the processes more responsive.
3. Easier to improve quality. Using the value stream mapping, the management can get better ideas about the processes, and its weak sides. The management can identify where defects, and errors are occurring. Hence, it will be easier to implement corrective actions, and improve the overall quality of the product.
4. Optimize resources. The analysis of the flow of materials via value stream mapping can be helpful for management to understand the uses of resources, labor, material, and equipment as well. At end of analysis the management can identify the ways to optimize the resources as per its needs.
5. Making easier communications. As you know, the value stream mapping is encouraging cross-functional collaboration & communications. It may be requiring making better communications for internal and external communications.
6. Continuously improve. The VSM needs frequently review and improvement. The management should monitor and improve the processes accordingly.

Example

Here we are going to take an example to make the clear entire topic with simpler.

Suppose a company “TuberZ” manufacturing carbon steel tubes, they wish to improve their processes using the value stream mapping. Here we going to show you, how to maps may help the manufacturer for improvement.

Current State Map.

The TuberZ creates a current state map of their processes, which may include following steps:

1. Raw material procurement. Note that, the TuberZ is following cold draw process, hence they will purchase carbon steel tubes with big sizes.
2. Manufacturing process. Usually, each industry has its own manufacturing processes. Herein with example, the manufacturer follows – RM Cutting, Furnace process, draw process, Straightening, Pickling, etc. are as basic processes. However, the process map also includes the inspection at each level & stage of production plus final testing and inspection.
3. Inventory and warehousing. In the map, inventory details are also required to include.
4. Shipping. The tubes are shipped to customers.

After creating the current state map, the manufacturer identifies several areas for improvement. These are as below:

1. Long lead times for raw material procurement and manufacturing process.
2. Inefficient layout of the manufacturing process.
3. Large inventory levels that tie up cash and space.

Future State Map.

The manufacturer creates a future state map to visualize, how their process could operate after implementing improvements.

The future state map includes the following changes:

1. The company focus on implementation of a just-in-time (JIT) inventory system. They may reduce inventory levels and free up space.
2. To reduce lead times and increase efficiency, the company will be focus on layout of the manufacturing process for improvement.
3. For track progress and identify bottlenecks, the company make the changes to implement a visual management system.
4. Implement a continuous improvement program to identify and eliminate waste.

Implementation.

Herein the implementation phase, the manufacturer can implement the changes that improve the overall processes, in the future state map. These are including as below:

The TuberZ company can create a relationship with reliable supplier to minimize the lead time for raw materials purchase.

It is also possible to restructure entire manufacturing processes to reduce material handling, that will be increase flow.

Visual Management system – To track progress.

Implement a continuous improvement program – To identify and eliminate waste.

Results.

After implementing the changes, the TuberZ has achieved following results:

1. Lead times for raw material purchase is reducing.
2. In the manufacturing process, efficiency increase at all levels of process.
3. Inventory levels is reducing & free space increasing in the warehouse.
4. On-time delivery performance has been improved.
5. Customer satisfaction increased.

This simple example has covered all the possible details which can help people who wish to increase the efficiency and productivity of their manufacturing processes.