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Value Stream Mapping

Value stream mapping is a lean management technique used to analyze and improve the flow of materials and information required to deliver a product or service to customers. It involves creating current and future state maps that visually depict the process flow. Key tools used in value stream mapping include process activity mapping, supply chain response matrices, quality filter mapping, production variety funnels, demand amplification mapping, decision point analysis, and physical structure diagrams. These tools help identify waste, reduce cycle times, and design improved future state processes. Value stream mapping is especially useful for high-volume, low-variety production environments.

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Ali Raza Anjum
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293 views

Value Stream Mapping

Value stream mapping is a lean management technique used to analyze and improve the flow of materials and information required to deliver a product or service to customers. It involves creating current and future state maps that visually depict the process flow. Key tools used in value stream mapping include process activity mapping, supply chain response matrices, quality filter mapping, production variety funnels, demand amplification mapping, decision point analysis, and physical structure diagrams. These tools help identify waste, reduce cycle times, and design improved future state processes. Value stream mapping is especially useful for high-volume, low-variety production environments.

Uploaded by

Ali Raza Anjum
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Value Stream Mapping

Ali Raza Anjum


Shabir Naqvi
Rafay Fazal
Immad Azim
Waqar Khalid
Hunnain
Asma Paracha

What is a Value Stream?


A Value Stream is the set of all the specific actions required to bring a
specific product through the three critical management tasks of any
business: problem solving, information management, physical
transformation (Womack & Jones).

Value stream mapping is a lean-management method for analyzing


the current state and designing a future state for the series of events
that take a product or service from its beginning through to the
customer.

At Toyota, it is known as "material and information flow mapping" It


can be applied to nearly any value chain (Wikipedia).

As per Six Sigma a value stream mapping is a lean enterprise


technique used to document, analyze and improve the flow of
information or materials required to produce a product or service for
a customer. Value stream mapping is hard work because it requires
looking at a process as if every step is non-value-added and is costing
the organization time and resources. The Five Whys is an easy way to
root out as many non-value-added steps as possible.

As per R. Keith Mobley, Principal, Life Cycle Engineering, Value


stream mapping is a visual means to depict and improve the flow of
manufacturing and production process, as well as the information
that controls the flow of materials through the process.

value stream mapping as the fundamental tool to identify waste,


reduce process cycle times, and implement process improvement.

When To Use Value Stream Maps?


for identifying the inherent waste and losses within an operation.
Use Value Stream Mapping for high-production
, low-variety product mixes with few components and sub-assemblie
sand dedicated equipment.

Using the Method


Planning and Preparation. Identify the target product family or service.
Create a charter, define the problem, set the goals and objectives, and
select the mapping team. Socialize the charter with the leadership team.
Draw while on the shop floor a current state value stream map, which
shows the current steps, delays, and information flows required to deliver
the target product or service. This may be a production flow (raw materials
to consumer) or a design flow (concept to launch). There are 'standard'
symbols for representing supply chain entities.
Assess the current state value stream map in terms of creating flow by
eliminating waste.
Draw a future state value stream map.
Work toward the future state condition.

Seven Tools of VSM


Supply Chain Response Matrix
Process Activity Mapping
Production Variety Funnel
Quality Filter Mapping
Demand Amplification Mapping
Decision Point Analysis
Physical Structure

Supply Chain Responsiveness Matrix


It is a tool that is used to analyze inventory and lead time within an
organization. The matrix is one of a number of Value Stream Mapping
tools. The matrix is represented by showing lead time along the XAxis and inventory along the y axis. The result shows where slow
moving stock resides.

Supply Chain Response Matrix

Value Stream Mapping


Process Activity Mapping

What is Process Activity Mapping


A method for depicting process / Information Flow
Logical presentation of business Process

Identify Key steps and stake holders (who does what)


Identify value adding and non value adding activities
Improve the process

When we should use it


To Gain clarity of the process
Who does what over what time
To understand current situation of the process
Identify time constraints and other constraints
Current turnaround times

If you want to move from current business process to


futuristic process flow
If any improvement required or not
Value adding components vs non value adding
components.

Step 1 (All stakeholders on board)

Identify all the stake holders involved in process.


A team consisting of all the stakeholders

Few experienced facilitators/neutral people would be a plus

Step 2 (Awareness of the process mapping symbols )


Everyone in team should be aware of different
symbols involved in process mapping
Option: sticky notes to get the symbol shapes

Step 3 (Key players and process)


Identify Key players.

Write them individually and place them on left


of process map.

Step 4 (Concuss for start and end point)


Identify start and End Point.
Consensus between all stakeholders.

Step 5 (Enrich the process details)


Identify all the steps and stakeholders involved
between start and end point.
Use a time scale as well to gauge turnaround time.

Step 6 (Identify Waste)


Identify steps
Value adding steps
Non value adding steps

Step 7 (Future State)


Remove non value adding steps
between start and end point.
Create a future state

Step 8 (Implement Plan)


Implement Plan.
See the results.

QUALITY FILTER MAPPING


It is part of the Value Stream Mapping toolkit and is used to analyze
processes/functions with respect to Quality.
The results of a Quality Filter Map shows how much waste is being generated
within an organization at each stage of the process.
Three types of Quality are measured as part of the model:
Product Quality Defective Item provided to customer
Defect Quality Defective item found prior to receipt by customer
Service Quality Defects that affect the ability of the supplier to provide
the service or product to the customer
Quality failures/defects are represented as a ratio (typically parts per million)
Results of Quality Filter Mapping are commonly used to feed into continuous
improvement plans.
A revised map is then generated after implementation of improvement plans
to measure the result of improvements.

Product Variety Funnel

Product Variety Funnel


Illustrates how company/supply chain
operates.
Complexity to be managed.
Where to target inventory reduction.
Making changes to processing of products.
Gain overview of company/supply chain.

Demand Amplification Mapping

Demand Amplification Mapping


How demand changes along supply chain.
Decisions and analysis can be carried out using this
info.
Manage fluctuations
Redesign value stream
Reduce fluctuation.

Decision Point Analysis

Decision Point Analysis


Decision point point where actual demand
pull gives way to forecast driven push.
Where products stop being made according to
actual demand and are made against forecast only.
This tool shows where this point is.

Decision Point Analysis


We need to know where this point is for two
reasons:
1. Knowing where this is, it is possible to assess
processes operating downstream and upstream
from this point. Making sure they are working to the
same push/pull philosophy.
2. Long-term, various scenarios to view operation of the
value stream if the point is moved can be carried out.

Physical Structure

Physical Structure
Understand how the industry operates.

Shows supply chain a industry level.


Brings attention to areas that may not receive
sufficient developmental attention.

Volume Structure
Various tiers both in supplier and distribution area,
with assembler as middle point.
Depicts number of organizations involved area of
each part is proportional to how many organizations
are in it.

Cost Structure
Similar to volume structure.
Area of diagram is directly linked to value-adding
process (cost-adding process).
Makes it possible to analyze value adding required in
final product as its sold.

Conclusion
Data from all of the tools can be integrated.
Different tools highlight differing issues.
Therefore more accurate key priorities are
highlighted
E.g. if supply chain response was used individually, its
supplier lead time would be identified. However, when
data from quality filter mapping is added, on time
delivery would be identified.

Conclusion
Goldratts Theory of Constraints has been
seen as having a conflicting approach to lean.

Synergies Between TOC and Lean


TOC identifies potential improvements that
will make a big difference.
TOC identifies the constraints that Lean can
then target for waste reduction provides
focus.

Synergies Between TOC and Lean


Lean has useful tools and philosophy and its
techniques enable understanding of the system
and its dependencies clearly.
TOC helps to identify and quantify the
opportunities for improvement.
Both encourage pull rather than push.

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