Value-stream mapping, is known as "material- and information-flow mapping", is a lean method for studying the actual state and design a future state for the series of cases that take a product or service from the beginning of the specific process until it reaches the customer.

1. WHAT IS VALUE STREAM
MAPPING (VSM)?

2. VALUE STREAM MAPPING DEFINITION
• Value stream mapping (VSM) is defined as a lean tool that employs a flowchart
documenting every step in the process. Many lean practitioners see VSM as a
fundamental tool to identify waste, reduce process cycle times, and implement
process improvement.
• VSM is a workplace efficiency tool designed to combine material processing
steps with information flow, along with other important related data.
• VSM is an essential lean tool for an organization wanting to plan, implement, and
improve while on its lean journey.
• VSM helps users create a solid implementation plan that will maximize their
available resources and help ensure that materials and time are used efficiently.
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3. PROFITABLE APPLICATIONS OF LEAN VALUE
• The original VSM template was created by Toyota Motor Company
and implemented via material and process flowcharts.
• This VSM illustrated the necessary process steps that existed from
order entry to final product delivery and was useful for gaining a
wide-reaching view of the company’s activities.
• It allowed Toyota to remove nonessential activities that created waste
while maintaining the manufacturing process.
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4. • The "value stream" portion of the VSM system centers on how value
can be added to a product or service by changing the market form or
function to meet the customer’s needs.
• This includes adding features and functionality to a product or service
that benefit the customer without increasing wasted time and
materials (also called muda, the Japanese term for waste) on the
company’s side.
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5. SCOPING OUT YOUR VALUE STREAM MAP
• Consider an extended level map as the view of the values stream at
60,000 feet, the facility level map at 30,000 feet, and the process level
map at 10,000 feet.
• It is best to start at diagramming a facility level map before
attempting to draw a process level map or extended level map so you
do not optimize one area and sub optimize another.
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6. STEP 1: FORM A TEAM TO CREATE THE LEAN
VALUE STREAM MAP
• Form a cross-functional team of high-level managers and supervisors from
throughout your company.
• Representatives from multiple departments, such as sales, customer service,
inventory, operations, and beyond, will help ensure that information can be
passed freely back and forth, and that items don’t slip through the cracks.
• Consider also adding important suppliers to this group because an outside
perspective can be helpful.
• The ideal team size is about 10 members. Small teams can miss important items,
while large teams can end up being difficult to manage and coordinate.
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7. STEP 2: THE KAIZEN KICK-OFF – VSM PLANNING
• After you’ve formed your VSM team, your next step is to hold a three-
day kaizen event (see Table 1).
• Kaizen is Japanese and means "change for the better."
• During a kaizen, team members begin developing current and future
plans.
• Note: It’s important to include an individual with VSM experience to
help facilitate the kaizen event.
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9. • At the kaizen event, the team must complete four important steps:
• Determine the process family.
• Draw the current state map.
• Determine and draw the future state map.
• Draft a plan to arrive at the future state.
• Once these four steps have been completed and the team agrees
with the plans and tactics, the VSM team can proceed to the next
steps.
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10. STEP 3: THE PROCESS FAMILY – VSM PLANNING
• A process family, also known as a product family, is a group of
products or services that go through the same or similar processing
steps.
• To determine your process family, create a matrix similar to the
example shown in Figure 1 below.
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12. • Along the top row, write all the process steps your organization performs
from a 30,000-foot point of view.
• In the first column, write down the parts (e.g., components, stock keeping units,
finished good items, or services) your organization makes or provides.
• Place an X in the corresponding box if the part goes through the processing step.
• It’s important that this step is applied to all cross-functional teams and key
areas within your company.
• This helps ensure all vital steps are included and no steps are overlooked.
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13. STEP 4: IDENTIFYING SIMILARITIES
• Examine the matrix and look for sections that
have similar or identical processing steps.
• Also look for sections that share about 80% of the
steps. Consider items that share many of the same
steps and procedures that can be created
together—by the same workers using similar or
related steps—more efficiently in a manufacturing
cell.
• Once you’ve identified similarities, the team must
then identify which process family it will
concentrate on first. The list below represents
some common reasons for picking certain areas,
and they are areas that the VSM team should
consider:
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• Biggest "bang for the buck"
• Largest reduction in lead time or inventory
• Biggest impact to the customer
• Highest probability for success
• Most visible to stakeholders
• New product or service line
• Volume or quantity

14. B.Varun
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varun.me@srit.org
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