What is “Value Stream Mapping” (“VSM”)?

Value Stream Mapping is a technique that can help you reduce the lead times for completing services or processes, or making products. The method will help you and others on your team “see” the process, including both value added activity and waste, so that you know where to focus your improvement efforts first.

The tool was first popularized in the United States after the publication of Mike Rother and John Shook’s book, “Learning to See” in 1998. While VSM is commonly applied to Manufacturing processes, it can be used on any product, process or service, independent of industry or application.

How Does VSM Differ from Other Process Mapping Techniques?

Value Stream Mapping is the best method for mapping the Material Flow and Information Flow for a product family, service or process, from Supplier to Customer. It is different from other forms of process mapping in that the VSM method provides a complete picture of these flows in a “circular” fashion, where Material Flow goes from Supplier through the Organization to the Customer, and Information Flow goes from the Customer, through the Organization, to the Supplier.

This unique “circular” nature of Value Stream Mapping the two flows enables the organization to gain a “big picture” of how well it is using its resources in order to meet customer needs. It also enables you to see the total process lead time, the amount of value added activity and the amount of non-value added activity, and clearly identifies areas for improvement.

How to Get Started with Value Stream Mapping

Start by identifying a product, service or process to map that is of strategic importance to your organization (or to your customers).

Next, select the team that will work together to develop your Value Stream Maps. Like most Continuous Improvement and lean methods, Value Stream Mapping, works best when there is a cross-functional team collaborating together. You will want to pick people who have experience with the product/service/process, as well as those who are less familiar for their “fresh” perspectives. VSM Teams work best with around seven people included, but your team may be a bit smaller or larger.

Value Stream Mapping is sometimes referred to as “System Kaizen” because it takes a holistic view of everything you are doing to satisfy customer needs for a particular product line or process. Often, the things that a VSM team identifies for improvement, are “big” things that require leadership support and buy-in. Because of this, Value Stream Mapping is normally performed by the senior leaders of an organization.

Creating Your Maps

Once you have assembled a team, you will need some basic VSM training. Your team will “go and see” to study the process firsthand so that you can map the Current State Value Stream Map (CSVSM). You will collect process data along the way, enabling your team to calculate the process lead time and identify value added and non-value added activities and opportunities for improvement. Ideas for improvement, known as “Kaizen Clouds,” are added throughout the mapping process.

Next, your team gets to be creative. It’s a bit like looking into a crystal ball: review the Kaizen Clouds, and envision a Future State Value Stream Map (FSVSM) that eliminated or reduces waste, and incorporates the improvements. Map You will map out this Future State process with the improvements included. Re-calculate the process lead time, and the amount of value added versus non-value added time.

You will want to capture all improvement actions that enable the FSVSM to become reality in “Kaizen Bursts”.

The Path to Improvement: Kaizen Roadmap

Finally, compare the two maps, review the Kaizen Bursts, and create flow “loops” (groups of processes and projects that taken together, will create a logical progression of improvement). Prioritize your Kaizen Bursts by which ones need to be completed first. Next, create a Kaizen Roadmap that includes a description of each project, the expected outcomes, assign it to a project champion, and propose timing for completion. Follow-up and planning for the projects and tasks included on the Roadmap is critical to transform from the Current State to your vision for the Future State. As you complete projects and tasks from the Roadmap, be sure to update your CSVSM (keep a copy somewhere to document the baseline so you can determine the impact of your changes!) to reflect the improvements. Over time, as you implement more and more of the Roadmap, you will start to approach the FSVSM you first envisioned. At this point, it may be time to revisit the mapping process and create a new FSVSM and Kaizen Roadmap to continue the process of pursuing perfection.

Business Process Improvement/ Business Process Kaizen (BPK)

Value Stream Mapping is an ideal method for understanding and improving your business processes. The mapping process can look slightly different from manufacturing and service maps. There are often multiple “layers” of mapping used in Business Process Improvement, starting from the “highest” level map and drilling down through the VSM down to the detailed process level. Cross functional Process Flow Maps are often used in conjunction with VSM in BPK.