What is Value Stream Mapping?

Value Stream Mapping is a lean manufacturing technique, originating atToyota, that analyzes the flow of materials and information in the creation ofa product or delivery of a service. By scrutinizing the process and identifyingopportunities for improved efficiencies, a company is able to vastly enhancecustomer satisfaction as well as reduce costs.

Value stream mapping is a method often used in businesses seeking todevelop lean production environments. Most commonly this is within themanufacturing industry but increasingly managers are implementing similarprocesses within service industries.

The Value Stream Mapping Process

The implementation process is as follows:

- Identify the target product/service. This is a critical step as most organisationswill have a broad range of offerings and some will be significantly moreimportant to the financial health of the business than others. Ensure youprioritise the key areas first.

      - Create a current value stream map. The map should include all stages from conceptualisation/gatheringof raw materials right through to delivery to consumers. Usually it is best tojust sketch it out on a piece of paper. Sophisticated computer software can beused at a later stage but for now it is best to keep things simple.

      - Assess the current state value stream map. The flow efficiency should be examinedand instances of waste identified. It is important to be as honest andself-critical as possible at this stage. Don’t search for excuses – every currentfailing is an opportunity for improvement!

      - Draw a desired future state value stream map. Based on the current state map andthe shortcomings it has revealed, it is now time to design the target map forthe future. It’s important to balance aspiration with realism. An unattainablegoal is merely a method of avoidance.

      - Plan the changes required to achieve the future state map. Now it’s time to turndreams into practical steps. Setting time frames and allocatingresponsibilities are critical if the map is to become reality. Discuss the planwith all concerned and ensure it has the backing and support of the team.