Value Stream Mapping Consulting Services: Visualize Flow & Unlock Value

Value Stream Mapping

Value Stream Mapping (VSM) is a Lean methodology used to view and understand the current state of a manufacturing process, or any operational process, visually and quantitatively. Most importantly, the analysis that goes into creating the map identifies and quantifies waste and inefficiencies. Analysis is often the first step on your Lean journey.

VSM flowcharts identify areas for improvement and provide data on the potential benefit. The future state value stream map is a great tool to communicate waste in the current state. This valuable Lean tool is utilized to create alignment for change, including continuous improvements in a company’s operations, departments, and supply chains.

VSM explores the flow of raw materials, information, personnel, and the delivery of products and services to customers. (Note that VSM is often misunderstood and confused with Lean Process Flow Mapping, which maps the flow of information using post-it notes or in-process mapping software, and does not include data or quantification of waste.)

There are two types of Value Stream Maps – the first is focused on a small scope; the second maps a multi-function, cross-company process. An example of a small scope could be a single production cell or department, such as purchasing.

An example of a multi-function, cross-company process could be an entire manufacturing plant or an end-to-end supply chain, where rising complexity requires clear visibility.

Value Stream Map

Small scope process mapping is relatively easy and quick to create, providing data on cycle times, wait times, and inventory. We often use this type of value stream map before creating a more detailed Process Flow Map to ground the Lean team members and Management in the current state’s performance. Estimates of times and inventory can be made and filled in later when time studies and system data are gathered.

The VSM depicts the flow of material and information moving from the initial state, through the transformation process, to customer deliverables, helping teams optimize workflow. Along the way, the different activities and functions involved are portrayed to highlight interactions and waste.

Pictograms are used to represent select functions and movements, with action items for optimization displayed by a starburst. The image below shows an end-to-end patience flow.

The VSM includes the cycle time needed for each activity, whether it is a move, some other waste, or a value-added element, allowing teams to assess process efficiency step by step. The wait times are shown between process steps.

Other potential or non-value added waste, such as excess inventory, is shown or referred to in a separate document that captures the total waste in this process. This ‘map’ helps the team to visualize the current state and provides a roadmap for improvement

Value Stream Analysis for Process Improvement

Sometimes the scope of the Value Stream process requires deeper analysis. For this type of Value Stream, we don’t create a typical value stream map; the focus, instead, is the analysis. Therefore, we have renamed this type of project – Value Stream Analysis. This methodology is used to:

• Initiate Lean process improvements within a manufacturing plant and other applicable operational environments: By identifying multiple initiatives, local Lean experts can systematically address each situation using Kaizen events and Lean Six Sigma projects.
• Identify waste and bottlenecks in an entire supply chain to increase speed, reduce lead time, and reduce customer cost
• Document the current state of a process that should be standardized at multiple company sites, but has been over-localized (and may contain waste), such as spare parts purchasing or inventory management

When implementing value stream mapping, it is important to select a team of experts from a cross-section of the organization, including representatives familiar with supplier processes. These people must be given the time to gather the data in small sub-teams and to meet as the full team to create the VSM. The data needed can include:

• Time studies of labor time
• Inventory
• Equipment cycle time
• Equipment changeover or set-up time
• Equipment downtime
• Scrap
• First pass yield
• Maintenance time/costs
• And more!

VSM is a great way to begin your Lean journey

The more complete the data, the more robust the value stream analysis.

As the data is gathered, it is important for the team to keep two elements of Lean Thinking in mind: 1) look for and document any waste they find, and 2) use the data to quantify waste.

Waste can include quick-win opportunities within their business processes that require immediate attention. Some of these quick-wins our consulting firm has identified and eliminated include hazards and safety violations, mistake-prone processes that affect customer satisfaction, and other ‘just do it’ improvements that can be fixed that day.

Other wastes may need more organized and planned Lean methodologies, such as Lean Six Sigma projects or kaizen events, to streamline future state business processes. These are categorized as one of the 8 wastes that Lean seeks to eliminate:

1. Extra motion – extra movement required by the people doing the work
2. Overproduction – creating more than what customers need
3. Unnecessary work content – adding more value to the product or service than customers are willing to pay
4. Waiting – bottlenecks that slow down customer service, delivery, or product
5. Inventory – buying extra inventory beyond what is needed to buffer against demand spikes or disruptions
6. Rework – doing any step a second time, including the need to check or audit other people’s work
7. Product travel – extra movement of product within and across facilities
8. Underutilized People – Not fully utilizing the brainpower of your people

Utilizing these classifications helps team members and stakeholders organize Lean improvements and eliminate waste.

Once all data has been gathered and inefficiencies identified, the next objective is to ensure the waste is either unitized or annualized. Unitizing is the process of getting costs on a common unit-of-measure, such as cases, weight (kg or pounds), or ‘eaches’.

When unitizing is not logical or is too difficult, we will annualize the waste. The intent of both is to quantify all waste into an annual cost to the business that can be sorted from greatest to least in a Pareto 80/20 type analysis.

The last step is to start at the top and summarize the Lean Six Sigma workflow. Perhaps the improvement is from quality and would need Six Sigma analysis to eliminate. A long equipment setup would use quick-changeover analysis and implementation. Waste within information flows would benefit from Process Flow Mapping. This extra step makes the entire analysis actionable.

Getting Input

Lean’s foundation is a deep and profound respect for the people who do the work. This is why we always work with a cross-functional team of people within our client’s organization. However, we want to go deeper and get even broader input. Once the current state has been agreed to and is on display, other associates from the organization are asked to provide feedback.

Value Stream Mapping and Analysis will help your organization create and sustain a Lean value stream. Supply Velocity can help create this future state.

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