Value Stream Mapping (VSM)
Value Stream Mapping (VSM) is an analysis tool, used to determine which steps in a process truly add value, with an eye toward reducing or eliminating those steps that add nothing but cost, time or features that are not of value to the customer.
Value stream mapping is a top level process, which is to say that it looks at sub-processes, rather than incremental steps in those processes. For instance, order picking of components is a sub-process which would be addressed, but placing those parts in bins, labeling them, and distributing them to their individual workstations would not be looked at in the value stream mapping exercise. The Map should be only as detailed as it absolutely needs to be.
From taking the order, checking inventory, picking or ordering components, assembly and test, order checking, packaging, on to shipping, would be a typical value stream mapping checklist. Each of these sub-processes takes a particular amount of time, and bears a specific cost in man-hours and overhead, and each of them also adds value to the product. But what if there were an inspection process between assembly/test and order checking, would that necessarily add value? Perhaps it would, but not necessarily so.
Also, if upon checking inventory, it is determined that additional components must be ordered from a supplier, that involves a two week lead time, is that a value add? Probably not. If not, then there is an opportunity to eliminate two weeks from the order processing. Such a reduction may, in itself, actually add value, if it allows you to deliver more quickly than your competition.
It is not uncommon for manufacturing facilities to have a two to four week process time for a product to which value is being added for only a handful of hours. That is usually because the order spends most of its time sitting in various queues between different steps in the process. Six or seven days may pass, although the product only spends two or three hours in actual processing. Here’s an excellent opportunity to attack those areas that are adding no value – the queues.
At this point, many organizations would implement a lean process, such as Kaizen, Kanban or Just In Time, in order to reduce the time lost from all that queue time. However, it’s important to remember that such processes are solutions, and not part of the value stream mapping process.
It is very important to draw a graphic representation, or MAP, of the process as it exists, annotating the time and number of operators involved in each step. Identify those areas that add little or no value, and look for ways to reduce or eliminate that waste.
A second step is to draw a map of what you would LIKE the process to be. Again, annotate the time and operators you would LIKE to see included. Assume that anything is possible, and then find a way to achieve it!
The value stream mapping process, as stated, is an analysis tool, but identifying problems accomplishes nothing, if solutions are not implemented. Kaizen (Japanese: kai, for change, and zen, for for the good) often works extremely well, as a method of implementing changes mapped out during the value stream mapping process. But Kaizen is NOT a one-time effort. Like value stream mapping, it is a repetitive effort, striving for continuous improvement. To realize the benefits of Value Stream Mapping, you must be committed to implementing the necessary changes, and then repeating the process… over and over again.
EVERYTHING can be improved, if you strive to do so.
Written by: Matt
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Tagged as business planning, management, PDCA, process optimization, quality management, strategic management, value stream mapping + Categorized as Business, Economy articles, Ladership & Management