Value Stream Mapping _VERIFIED

There are often spots in the value stream where continuous flow is not possible and batching is necessary. Resist the temptation to schedule these process via an independent scheduling function. Instead, control their production by linking them to their downstream customers through a supermarket-based pull system.

By using supermarket pull systems, you will typically need to schedule only one point in the value stream. This point is called the pacemaker process. This is because how you control production at this process sets the pace of production for all upstream processes.

Value Stream Mapping

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Most assembly departments probably find it easier to schedule long runs of one product type and avoid changeovers. However, this creates serious problems for the rest of the value stream and customers, such as:

Value-stream maps are the blueprints for lean transformations and Learning to See is an easy-to-read, step-by-step instruction manual that teaches this valuable tool to anyone, regardless of his or her background.

This groundbreaking workbook breaks down the important concepts of mapping into an easily grasped format. The workbook, a Shingo Research Prize recipient in 1999, is filled with actual maps, as well as engaging diagrams and illustrations.

The process of creating a value stream map takes all the necessary people, processes, information and inventory, and displays them in a flowchart format. By visualizing all elements that go into creating a product or service, organizations can apply lean principles to reduce waste in specific areas of their processes.

Value stream maps can be created with flowchart software, and many products will have the core symbols necessary embedded within their symbol libraries. The example below shows what a typical value stream map might look like:

Today, Lean and Six Sigma are used across industries, including healthcare, technology, manufacturing and finance, and there is continued demand for experts with Lean Six Sigma knowledge. According to a study by PwC, 80-90% of tasks in typical business processes are wasteful because they do not add any value for the customer.

The process of drawing a value stream map can be done using a template, software, drawing or even on a whiteboard or piece of paper. Before creating your map, it will be helpful to think about and outline all the processes and stakeholders involved. From there, you can start to visualize how these process and stakeholders relate to each other.

There are a range of standardized symbols used for value stream mapping, including those for processes, identifying customers/suppliers and others. Popular flowchart software like Edraw and Lucidchart include them in their symbol libraries.

For example, a rope manufacturing company used value stream mapping to show the layout of its manufacturing floor. They organized its material flow, saving six and a half minutes per rope order, which is 33% of material handling time.

In another case, executives from an IT services company had never met each other in person until they performed a value stream mapping exercise. The value stream mapping exercise brought them together and highlighted areas where formal collaboration processes would improve communication across the entire organization.

Value-stream mapping, also known as material- and information-flow mapping,[1] is a lean[2]-management method for analyzing the current state and designing a future state for the series of events that take a product or service from the beginning of the specific process until it reaches the customer. A value stream map is a visual[2] tool that displays all critical steps in a specific process and easily quantifies the time and volume taken at each stage. Value stream maps show the flow of both materials and information as they progress through the process.[3]

Whereas a value stream map represents a core business process that adds value to a material product, a value chain diagram shows an overview of all activities within a company.[3] Other business activities may be represented in "value stream diagrams" and/or other kinds of diagram that represent business processes that create and use business data.

The purpose of value-stream mapping is to identify and remove or reduce "waste" in value streams,[2] thereby increasing the efficiency of a given value stream. Waste removal is intended to increase productivity by creating leaner operations which in turn make waste and quality problems easier to identify.[4]

There are two kinds of value stream maps, current state and future state. The current state value stream map is used to determine what the process currently looks like, the future state value stream map focuses on what the process will ideally look like after process improvements have occurred to the value stream.[3]

The current state value stream map must be created before the future state map and is created by observing the process and tracking the information and material flow.[14] The value stream map is then created using the following symbols:

Value-stream mapping analyzes both material (artifact) and information flow.[17] The following two resources exemplify the use of VSM in the context of software process improvement in industrial settings:

This type of mapping may be older than many people think. Examples of diagrams showing the flow of materials and information are contained in a 1918 book called Installing Efficiency Methods, by Charles E. Knoeppel. Later, this type of diagramming became associated with the vaunted Toyota Production System and the whole lean manufacturing movement, although it was typically called material and information flow mapping, process mapping or other names, not value stream mapping. The people most often credited with creating the Toyota Production System, starting in earnest in the 1950s, include: Shigeo Shingo (1909-1990), a Japanese industrial engineer, Toyota consultant and namesake of the Shingo Prize for lean excellence; and Toyota executives Taiichi Ohno (1912-1990); Kiichiro Toyoda (1894-1952) and Eiji Toyoda (1913-2014).

Value stream mapping, as with other good visualizations, serves as an effective tool for communication, collaboration and even culture change. Decision makers can clearly visualize the current state of the process and where waste is occurring. They can see problems like process delays, excessive downtime, constraints and inventory issues. And with the Future State and/or Ideal State VSM, they can see precisely how to improve.

While Value Stream Mapping is core to lean methods, it often requires a substantial investment of people and time to do it, and if not applied wisely, it can be wasteful in itself. You of course want profitable applications of value stream mapping.

It requires team members skilled in carrying out advanced VSM, and it may take days, weeks or even months to carry out some involved mapping projects. Think of it as a powerful tool central to lean methods, but not every circumstance lends itself to value stream mapping. You need to balance potential value with the work necessary to conduct the VSM.

In manufacturing: To find waste in the production process by analyzing each step of material handling and information flow. This is where lean methodology got its start in the 1950s at Toyota, and lean methods and value stream mapping remain key to manufacturing throughout the world. Of course, they have since spread to other fields and have become intertwined with Six Sigma methods and Lean Six Sigma.

Software engineering/development: To find inefficiencies in software development, from idea to implementation, including feedback loops and rework. Although some critics question the value of VSM in an agile development environment, others find it useful to gain efficiencies, such as reducing wait time between steps or reducing the need for rework.

Value stream mapping supports stream analysis by simplifying a complex system into a map. The map illustrates the outcomes of the value stream analysis, providing a visual tool to facilitate understanding and communication. The next section outlines the steps for completing a value stream analysis, creating a current state map, developing future and ideal state maps, and ultimately carrying out a lean plan. These steps are best practices for VSM and provide organization to value stream analysis, hopefully leading to the best possible outcome: an efficient and integrated material and information flow system.

As described in Principle #10, Organizing around value, the value stream concept is a critical underpinning of Lean thinking and is fundamental to SAFe. There are two types of value streams described in SAFe.

Simply put, organizing people around the DVS improves workflow, efficiency and accelerates time to market. This is accomplished by optimizing the flow of value to the Customer across divisions and functional departments through suppliers, channels, and the whole system.

To build and maintain these systems, multiple development streams may be required. For example, one development value stream supports the front-end loan origination services and credit scoring; another builds the core banking services.

Figure 4 illustrates a pattern for manufacturing a significant cyber-physical system, in this case, a passenger vehicle. This pattern shows fundamental differences between the development streams that directly support digital solutions and those that support products that must be manufactured before use.

In this case, the delivered value is not the product, but the specifications needed to manufacture and validate it. The focus is on Solution Intent, the repository of design specifications, manufacturing procedures, bills of materials, and so on, required to produce the device.

The four OVS patterns described earlier help define the DVS structure for optimal value delivery. Once initially identified, additional analysis is required to determine the DVS boundaries, people, solutions, and other deliverables. Figure 7 provides a Development Value Stream Canvas, a simple template that can capture and refine the emerging understanding. 17dc91bb1f