Value stream mapping is an excellent tool to optimize your business operations. I’ve watched it turn around failing businesses and make them more efficient and profitable.
It’s a visual process that helps you identify waste and inefficiencies in your processes. It also gives you a step-by-step guide to make improvements that your customers will appreciate. You’ll learn how to make operations more efficient, increase productivity, and improve customer satisfaction.
What is Value Stream Mapping?
This technique has a deep history. Here’s a brief overview:
- VSM originated from Toyota Motor Company’s material and process flowcharts.
- The term “value stream map” emerged in the 1990s.
- Mike Rother and John Shook introduced VSM to the Western world with their 1998 book “Learning to See.”
- Early material and information flow diagrams can be traced back to 1918 in Charles E. Knoeppel’s book “Installing Efficiency Methods.”
A value stream map comprises various elements. These are process steps, information flows, inventory points, a timeline, as well as data boxes, customer requirements, and supplier info.
Value stream maps come in different variations:
- Current state maps to illustrate the existing process flow.
- Future state maps to showcase the improved or ideal process.
- Ideal state maps to show the perfect process with no constraints.
Value stream mapping is a key tool for any business that wants to improve its processes. It’s especially helpful if your goals are to reduce lead times, minimize costs, or increase customer satisfaction.
Benefits of Value Stream Mapping
Value stream mapping has many benefits for your business. I’ve personally experienced the following benefits in various businesses and industries.
The main benefit is identifying and removing waste. VSM helps you identify non-value activities, so you can then minimize or eliminate them. This, in turn, makes your process more efficient. Your operations will be more lean and productive.
Improved communication and collaboration are also key benefits. VSM essentially creates a visual of your processes, making it easier for teams to understand and talk about improvements. As a result, you’ll see better collaboration across departments.
VSM also facilitates continuous improvement. It provides a benchmark to measure against, so you can use it to set improvement goals and then track your progress over time. This is critical of VSM and ensuring long-term success.
Another major benefit is using it to make more strategic decisions. VSM gives you a high-level overview of your processes, so you can make data-driven decisions when allocating resources and making process adjustments. This is especially true with techniques like decision tree analysis.
The most important benefit is ensuring your processes align with customer value. VSM helps you see the big picture, so you can ensure that you’re only doing what actually improves customer satisfaction.
In my experience, these benefits are all compounded over time. As you execute VSM more and more, you’ll see larger and larger process improvements.
Steps to Create a Value Stream Map
There are several steps to value stream map. I’ve walked many teams through this process, and this is how you can do it effectively.
First, select the product family or process you will map. Choose a narrow product line or service. This focus will make your value stream map more manageable and significantly more valuable.
Then, define the current state. At this stage, you’ll collect initial information about the process you need to analyze. What is the basic flow of the process? Who are the key stakeholders?
Gather data and observe the process. This step is critical. Spend time in the shop watching the process unfold, and gather any timing, inventory, or information flow data.
- Now, draw the current state map. When doing this, be sure to capture the following:
- The process steps
- Information flows
- Inventory
- Cycle time/lead time
- Quality data
Analyze the current state and look for improvement opportunities. Where are the bottlenecks? Where is there waste?
Then, draw the future state map. What does the improved process look like?
Finally, build an implementation plan. What changes will you need to make to move from the current state to the future state? Who needs to do what and by when?
Keep in mind it may take you several iterations to arrive at the right answer as you gather more information and make changes.
Value Stream Mapping Symbols and Icons
Process symbols:
- Represent different operations. You will use these to show the steps in your process that add value. These are typically rectangular boxes with a specific label.
Inventory symbols:
- Represent where materials or information are waiting. These are typically triangles in VSMs, and the size of the triangle indicates the amount of inventory.
Information flow symbols:
- Represent how data moves through the process. This is often an arrow. A straight arrow usually indicates electronic flow, while a squiggly arrow typically indicates manual information transfer.
Material flow symbols:
- Represent how physical goods move through the process. This is usually a straight arrow pointing in the direction of flow. The thickness of the arrow can indicate volume.
People and transportation symbols:
- Represent how items or information move between process steps. You may see an icon of a truck (shipping) or an icon of people (manual transport).
Data boxes and timeline symbols:
- Provide quantifiable information. These attach to process boxes, and these symbols provide details like cycle time, lead time, and various qualities.
Here is a quick cheat sheet of some common VSM symbols:
| Symbol | Description |
|---|---|
| Rectangle | Process step |
| Triangle | Inventory |
| Straight arrow | Electronic information flow |
| Zigzag arrow | Manual information flow |
| Truck icon | Shipping |
| Clock | Timeline |
Mastering these symbols is the key to creating effective value stream maps.
Team Composition for Process Flow Analysis
Building the right team is critical to effective value stream mapping. I’ve found the optimal team size for value stream mapping is around 10 people. This allows for a variety of perspectives without feeling too cumbersome.
Your team should have a clear structure with assigned roles and responsibilities. You’ll typically require:
- a team leader
- process experts
- data analysts
- team members from different departments
Each team member will offer different insights into the mapping process.
It’s essential that the team is cross-functional. You should have members from various departments within your organization. This might include:
- people from the production floor
- customer service
- finance
- IT
By including members from various departments, you’ll build a more thorough map.
You’ll also need leadership support to succeed with value stream mapping. Make sure upper management is bought in. Their support will communicate the importance of value stream mapping to the rest of the organization.
Preparing and training team members is also essential. Some team members may not be familiar with value stream mapping. Train them on:
- the basic principles of value stream mapping
- the symbols
This will guarantee that everyone is speaking the same language during the value stream mapping process.
Lastly, pay attention to team dynamics. Create an environment where each team member feels comfortable voicing their ideas and observations. Encourage open communication and ensure there’s mutual respect for others’ opinions.
In my experience, selecting the right team and adequately preparing them leads to more accurate maps and more impactful improvements. So spend the time to carefully select and prepare your team.
Value Stream Mapping Levels
You can do value stream mapping at various levels within your organization, and each level offers different insights and benefits.
Extended value stream mapping is the 60,000-foot view. At this level, you map the entire supply chain, including suppliers, customers, and all major processes in between. Use this level when you need an understanding of your overall business ecosystem.
Facility level mapping is the 30,000-foot view. This is mapping the flow within a single location or plant. This is useful if you’re looking to find major inefficiencies between departments or production lines.
Process level mapping is the 10,000-foot view. This is mapping a very specific workflow or procedure. Use this level if you want to identify bottlenecks and waste in a single process.
Selecting the right level for your VSM is important. Think about your goals and resources. Extended VSM takes more time and requires more coordination, but the view is more comprehensive. Process VSM is faster, but the view isn’t as broad.
I typically suggest you start with facility level mapping. It’s a good compromise between detail and scope, and from there, you can either move higher or lower based on what you need to see.
Keep in mind that these levels are interrelated. Making improvements at one level will in turn affect the others. Consider this as you decide how you want to map your VSM.
Value Stream Mapping Tools and Software
You can create value stream maps manually or with software. Each method has its own benefits. I have used both methods throughout my career, so I can provide some insights.
Manual mapping involves using large sheets of paper and sticky notes. This is a very hands-on activity and encourages team involvement. It’s excellent for initial brainstorms and can be very interactive.
Alternatively, various digital tools and software are available to help you create a VSM. The benefit of using these tools is data control and analysis. It’s easier to update and share maps, and many tools offer templates and symbol libraries to help you get started mapping more quickly.
Here’s a comparison of common VSM software:
| Software | Pros | Cons |
|---|---|---|
| Lucidchart | Easy web solution | Basic features |
| Microsoft Visio | Great Office integration | Steep learning curve |
| eVSM | Designed specifically for VSM | Can be costly |
| Edraw Max | Lots of templates | Overkill for most features |
When choosing the right software, consider your team’s technical abilities, budget, and long-term VSM plans. Some companies use a combination of manual and digital mapping methods.
Just keep in mind that the software is just a software. The true value comes from analyzing your maps and making improvements.
Optimizing Process Flow Analysis
These tips are the best value stream mapping tips I can offer you.
- Select the right stakeholders. Choose individuals with a deep understanding of the process. Also, don’t forget about including those upstream and downstream of the process you’re mapping.
- Think like the customer. Continuously ask yourself whether a step truly adds value from the customer’s perspective. This will help you make sure you’re focusing on the most important improvements.
- Use standard symbols and notations. It’s easier to compare maps if everyone uses the same symbols. Use standard VSM symbols and notations whenever possible.
- Validate with process owners. Make sure the owners of the process agree that your map is accurate. They can provide valuable insight and help you avoid misrepresenting anything.
- Prioritize improvement ideas. You can likely only implement a few changes at a time. Identify the lowest hanging fruit and changes that will have the biggest impact. You may find applying lean tools useful here.
- Give yourself enough time to implement changes. Change doesn’t happen overnight. You should be aggressive in encouraging change, but you also need to be realistic.
- Keep your map updated. VSM is not a one-time thing. If anything in the process changes, update your map. If any changes are made as a result of your map, update the map.
Following these tips will help ensure your value stream maps are accurate and useful, and it will also help you get more buy-in and drive more improvements from your VSM efforts.
Common Pitfalls in Value Stream Mapping
Value stream mapping is a great tool, but it’s not without its challenges. Many organizations make mistakes when value stream mapping. Here are the most common value stream mapping pitfalls.
- Failing to receive leadership support. If you don’t have support from leadership, your value stream mapping project will fail. If leaders don’t understand the value, they won’t align resources to make it happen.
- Inaccurate mapping due to poor data. Don’t rush the data collection step. Make sure you have accurate data about every step in your process.
- Failure to include non-value-adding activities. Don’t underestimate the power of non-value-adding steps. Sometimes, these steps are actually the most valuable.
- Leaving out key stakeholders. If you leave someone out of the value stream mapping process, you may realize it later and have to start over. Additionally, you may miss out on some of the best improvement ideas, or they may resist the changes.
- Not spending any time on the future state map. The current state map isn’t nearly as important as the future state map.
- Failing to follow through with any improvements. Many people stop at the future state map and never actually make any changes. If you’re going to make a value stream map, ensure you’re actually going to drive some changes in your organization.
Keep these pitfalls in mind, and you can plan to avoid them. This will help ensure you’re successful with value stream mapping.
Process Flow Optimization Examples
Here are some examples of value stream mapping in the real world. I’ve personally seen VSM revolutionize operations in each of these industries.
Example from the manufacturing industry:
- Problem statement: Furniture production line had long lead times
- VSM process: Mapped the current state and discovered bottlenecks in the assembly
- Results and benefits: Reduced lead time by 30% and increased productivity by 15%
Examples from the service industry:
- Problem statement: High customer dissatisfaction in a call center
- VSM process: Mapped the customer journey and found unnecessary transfers
- Results and benefits: Reduced call time by 40% and increased customer satisfaction scores by 25%
Example from the healthcare industry:
- Problem statement: Long patient wait times in an emergency department
- VSM process: Mapped patient flow from entry to discharge
- Results and benefits: Reduced non-emergent wait times by 50% and improved resource allocation
These cases demonstrate the versatility and power of VSM. Whether you’re in manufacturing, services, or healthcare, VSM can drive significant improvements.
Remember each organization is unique. While these examples are inspiring, your results may vary. The key is to apply VSM principles consistently and persistently.
Combining Workflow Analysis with Additional Lean Techniques
Value stream mapping is not used in a vacuum. It is most effective when combined with other lean tools and methodologies. I’ve personally found this integration to be essential for sustainable improvement.
VSM also pairs well with kaizen events.
A three-day Kaizen event is ideal to create a current state and future state map.
VSM gives you the macro view, and Kaizen allows you to make rapid improvements.
Pairing VSM with Six Sigma is also effective.
Use VSM to identify opportunities for improvement, and then use Six Sigma to perform a detailed analysis and create a solution.
Combining VSM with 5S significantly improves the 5S process.
VSM helps you discern where 5S will make the greatest impact on process flow and efficiency.
Using VSM within Lean project management helps you establish a roadmap of improvement projects.
It enables you to prioritize the projects and ensure they all align with the broader process goals.
VSM and continuous improvement are a natural fit.
Regularly performing value stream maps ensures your improvement efforts are always based on reliable data.
By combining these tools, you build a strong system for continuous improvement.
Each tool reinforces the other tools you use and the broader lean strategy.
Remember, the goal isn’t to use every tool.
Instead, select and combine the tools that best help you overcome your specific challenges and achieve your specific goals.
A Few Last Words
Value Stream Mapping is an excellent process improvement tool, and I’ve witnessed it turn around struggling manufacturing plants into efficient, lean machines. You now know how to implement VSM in your business. Just remember that effective VSM implementation takes commitment patience, and a learn-it-all attitude.
Keep it simple and tackle one process at a time, building from there. With experience, you’ll become adept at spotting waste and improvement opportunities. Your path to operational excellence starts today. So go apply VSM in your business and good luck!
