Value stream mapping

Value stream mapping is a lean manufacturing technique used to analyze and design the flow
of materials and information required to bring a product or service to a consumer. At Toyota,
where the technique originated, it is known as "material and information flow mapping". It can
be applied to nearly any value chain.

Implementation
1. Identify the target product, product family, or service.
2. 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.
3. Assess the current state value stream map in terms of creating flow by eliminating waste.
4. Draw a future state value stream map.
5. Work toward the future state condition.
Applications

Value stream mapping has supporting methods that are often used in Lean environments to
analyze and design flows at the system level (across multiple processes).

Although value stream mapping is often associated with manufacturing, it is also used in
logistics, supply chain, service related industries, healthcare, software development, and product
development.

In a build-to-the-standard form Shigeo Shingo suggests that the value-adding steps be drawn
across the centre of the map and the non-value-adding steps be represented in vertical lines at
right angles to the value stream. Thus the activities become easily separated into the value stream
which is the focus of one type of attention and the 'waste' steps another type. He calls the value
stream the process and the non-value streams the operations. The thinking here is that the non-
value-adding steps are often preparatory or tidying up to the value-adding step and are closely
associated with the person or machine/workstation that executes that value-adding step.
Therefore each vertical line is the 'story' of a person or workstation whilst the horizontal line
represents the 'story' of the product being created.

Value stream mapping is a recognized method used as part of Six Sigma methodologies.

Metrics

A key metric associated with value stream mapping is lead time.

Hand drawn or software tools

One main purpose is to deepen one's understanding of a value stream by drawing a map of it. In
current-state mapping this is done while observing the actual value stream in situation. Thus,
value stream maps are often drawn by hand in pencil; to keep the mapping process real-time,
simple and iterative by allowing for simple correction.

An effective way of doing this as a group is to cover a wall with butcher paper and provide
adhesive notes to each work team, ideally color coding each group. Each group writes their tasks
on individual notes and apply them to the paper in sequence. Lines are drawn between the steps
to indicate the work flow. This way the tasks can easily be moved around, as other steps come to
mind.

However, software tools can also be used. A variety are available either as stand-alone products
or stencils/add-ons to products.