Value Stream Mapping is a great tool to visually display a process. Used properly, a VSM is a powerful business tool.

1. Value
Stream
Mapping
INPUT Process OUTPUT

2. Today’s Objectives
• What is the Value Stream
• What is a Value Stream Map (VSM)
• Tools needed
• Who should be involved
• Defining the scope
• Sections of a VSM
• The VSM is done, now what?

3. The Value Stream

4. Question: What is the 8th waste? Talent

5. What is a Value Stream Map?
• A visual way to review each step in the value
stream or process.
• Used to identify value (or lack of) in a process.
• Value must be in the eyes of the customer
– What your customer is willing to pay for
– Internal/External Customers
• Everything is a process, therefore everything
can be mapped.

6. Tools Needed For a VSM

7. All Stakeholders Involved!
• When doing a VSM it is VITAL to have ALL
stakeholders present.
• If it is not possible to have ALL stakeholders
then you must have a representative who can
speak for anyone not present
– For example, if you can’t pull an entire
department, take one or two people who know
the process.

8. Define Your Scope
• Where does the process begin/end
• It’s easy to get distracted by issues outside of
your scope
• Everyone has to agree on the scope
• Doesn’t matter how big or small the scope is

9. Different Types of Value
• Value Added
– Value is in the eyes of the customer
– If time permits, consider this for both external and
internal customers
• Non Value Added / Waste (8 wastes)
• Business Value Added / Regulatory
– Something that you determine is essential to your
business but may not be value added by the
customer
– Good time to look at your company policies...

10. Qualifying Steps
• Here’s a method to determine if a step is value
added.
– Would the customer see the value and be willing
to pay for it?
– Was it done right the first time?
– Did it change in form, appearance, or material
from the previous step?
– Is it required by law?
• Need to capture “waits” in a process too.
• Mark each step with which type of value it is

11. Best and Worst Times
• For each step, understand the fastest and
slowest times it could take to complete that
step.
• Large gaps in best/worst times will identify a
potential bottleneck in the process
• This is where the stop watch could come in
handy. However, for most processes, the
stakeholders will already have a good idea of
the best/worst times.

12. Inputs and Outputs
• Inputs and outputs need to be understood
and captured for each step in the VSM
• INPUTS
– Is there anything required for that step to
happen? Something from an external process?
• OUTPUTS
– Does that step produce anything? Information?
• There may not be a new INPUT or OUTPUT for
every step

13. Issues
• No-blame environment!
– Look to the process, not the individual
– “A bad system will defeat a good person every
time.” - W. E. Deming
• What prevents the step from flowing?
• Examples:
– Error(s)
– Misguided controls (inspector, a signature)
– miscommunication

14. Steps and Waits
Best Time
Worst Time
Input
Output
Issues

15. The VSM is done, now what?
• Eliminate non-value added and wasteful steps
• Take the “waits” out of the process
• Reduce the time it takes to complete the
bottleneck steps
• Generate a future state once the above is
done.
– Ensure ALL stakeholders are involved with this
• APPLY THE 5 WHYS!!!

16. Production VSM Example
Raw Materials
Previous Run Remove
Clean Up & Supplies to
Ends Tooling
Machine
Trials Run
New Tooling Raw Materials
through Machine Setup
Installed Checked
machine
Adjustments More Trials Samples
Run Starts
Made Run Approved
How long do your changeovers take?

17. Office VSM Example
• “Some-cool-data-that-everyone-can-use” report
• Originally started as a request
• Starting situation

18. Acct Mgr Admin
Order Entry Assistant President
Sales Mgr
Copy
Room Plant Mgr
Meeting
Room
Ops Mgr Equipment
Room

19. Office VSM Example
• “Some-cool-data-that-everyone-can-use”
report
• Originally started as a request
• Options
– Change her route

20. Acct Mgr Admin
Order Entry Assistant CEO
Sales Mgr
Copy
Room Plant Mgr
Meeting
Room
Ops Mgr Equipment
Room

21. Office VSM Example
• “Some-cool-data-that-everyone-can-use”
report
• Originally started as a request
• Options
– Change her route
– Just email it to everyone

22. Acct Mgr Admin
Order Entry Assistant CEO
Sales Mgr
Copy
Room Plant Mgr
Meeting
Room
Ops Mgr Equipment
Room

23. Office VSM Example
• “Some-cool-data-that-everyone-can-use”
report
• Originally started as a request
• Options
– Change her route
– Just email it to everyone
– Find out who really uses the info
– Just email it to them

24. Thank you!