Value Stream Mapping

General informations

8 steps of value stream design

 Creation Flow
• Flow is the ideal state of the Value Stream, where items
or services that are produced by the value stream are
continuously being transformed at an even pace and
synchronized with takt

 continuously: no waiting, no stopping

 transformed: only value‐adding work, no

unnecessary movement, motion or rework

 even pace: no peaks and troughs in activity, no

rushing

 takt: the rate of customer demand

 What is a value stream?
• Value Stream Mapping is the name used to describe the
informal method used at Toyota to communicate
current states and future state plans for improvement
of a process.

• At Toyota they are called “Material and Information

Flow Diagrams”.

• Value Stream Mapping is pencil and paper data

gathering using stop watches and tape measures.

• Get actual data, not historical data, as much as

possible.

• Work as a team, divide up tasks and get the facts as

best as you can. If actual data is not available, get a
range of historical data rather than an average.
 What is a value stream?
• The scope of Value Stream Mapping is typically from
“request to fulfillment” and can be as wide or as
narrow as the process you need to describe. Some
common types of Value Stream Maps are:

• Call to Cash: material and information flow

from customer request to collection of
payment

• Concept to Launch: material and information

flow from a new idea until production start up
 What is a value stream?
• Value Stream Mapping gives you the “big picture” view
of the overall process from request to fulfillment, rather
than just the individual processes within the Value
Stream.

• The Value Stream Map should show you where there

are opportunities to improve the flow of work as well as
for reducing waste (TIMWOODS) within individual
processes.

• The “big picture” view allows you to see how

information flow and material flow are connected,
where delays occur, and where workflow is complex.
 What is a value stream?
• All of the steps or activities required to fulfill a request
• Includes value added and non-value added
• Process flow (materials and information)
 Topics: Value and waste
• Value

 What customers are willing to pay for

 Changes form, fit or function of material
and/or information
 Something that delivers reusable knowledge

• Waste

 Anything that consumes resources but adds no

value
 Typically “TIMWOODS” (incl. energy, space,
safety, and environmental losses, etc.)
 Topics: Value and waste
What is Value Stream Mapping (VSM)? - YouTube
 Value stream focus &
lead-time reduction
• Focus on each product and its value stream
(information plus objects) rather than organizations,
assets, technologies, and career paths
• Ask which activities are waste and which truly create
value
• Enhance the value & eliminate the waste (TIMWOODS)
to optimize the whole!
• The best way to do this is to look at the flow of material
and information across an entire Value Stream. One of
the key indicators of the effectiveness of a Value Stream
is the Lead-time. Another one is inventory. The two
are very closely related. When you have shorter lead-
times and quicker changeovers you will be able to
respond with less inventory.
Value stream focus &
lead-time reduction
Why Value Stream Mapping?
“The 3 pillars”

Value Stream Mapping improved processes in a

systematical approach, develop people
and enhance team-building.
 What is a
value stream map?

• A VSM typically depicts the flow of materials and

information and their linkages

• A VSM integrates performance measures into the map,

such as leadtime, inventory, defects and other business
KPI´s related to the VSM.

• A Value Stream Map is a pictorial representation of the

value stream activities. A VSM contains both material
flow and information flow. Material flow examples are:
 Purchased Parts
 WIP
 Finished Goods
 Patient
 Orders
 What is a
value stream map?

• Information flow shows how each step in the process

knows what to do next. Examples are:
Planning
Request for shipment
PO
etc.

• Imagine the Value Stream as a loop beginning with a

request from the customer and ending back at the
customer when the request is fulfilled.

• Start at the top right of the paper and make a counter

clockwise loop. Use arrows to show the direction of
the flow.
 What is a
value stream map?

• The primary entity could be an order, a piece of

information, a piece of equipment, or a material
that flows through the process. The process acts on
the primary entity to add value and transform it to
what the customer wants.

• A VSM is much more than a process map as it is a

high level map showing linkages between material
flow and information flow and has a lot of metrics
attached to the map to highlight value and non-
value added areas.
 What is a
value stream map?

VSM’s usually depict a high-level view of the entire process

and contains lot more information than a regular process
map!
 What is a
value stream map?
• A tool for identifying, planning and communicating
continuous improvement!

• A working document that is frequently updated!

• A diagram of showing the details of a particular value

stream

• Differs from flow charting and other methods by

showing both material and information flow and their
linkages!
 Output of value stream
mapping tasks
• Current state map showing current material and
information flows

 wastes and systemic problems are identified

• Future state map showing target material and

information flows

 waste is reduced and lean systems are in place

• Work plan to achieve future state

 prioritised “change loops” with who and when

VSM activities (team)
 Different views on processes
How it ist What we What is What we
documented think … acutal … would like

• People usually think they have a pretty good

understanding of how a process works
• Oftentimes, the actual process works a little differently
• Completing a process map by walking the actual
process and talking with all those involved in the
process can help to understand the actual process.
• This will help highlight opportunities for improving the
process…leading to the map of “how you would like it
to be”.
 Value Stream Approach

• This way of thinking leads to continuous improvement

and to Operational Excellence

• VSM is also a PDCA approach

 How to create a
current state in VSM?
• Preparations:

• Select value stream (level of detail, product

family)

• Assemble the cross-functional team

(participants of this workshop)

• Pre-Walk the process as Owner or facilitator

• Inform Team about the VSM approach

(Kick-Off)
 How to create a
current state in VSM?
• VSM Event:

• Draw customer and all major processes, data

boxes, inventory/waiting times

• Add direction & format of information flow

• Complete data box for each activity

• Fill in timeline at bottom & calculate key ratios

• Identify improvement opportunities and draw

Kaizen bursts
 Current state VSM example

• It makes sense to draw it later on flipchart, to get a

consistent view and holistic understanding

• Flipchart display can help to develop “Kaizen Bursts”

Current state VSM example
 Current state VSM example

VSM of a project called Speedstar:

• On the right (in Blue) the involved parties (Design,
Marketing, development, purchasing, etc)
• White cards represent activities
• Red Cards: issues/Problems
• Green and yellow cards: improvement opportunities
• Green round circle on top are the milestones
Current state other version
 VSM Icons production

• VSM icons are needed for a common and holistic

understanding
• VSM icons are a part of systematical, standardized
approach
 VSM Icons office

TIPs:
• follow an order from start to finish (e.g. you can put a
sticker on the form) and measure how long it takes to
get through the entire process
• Asking the team for “most wastes, problems”, to define
and select the VSM
 Future state creation
the first basic steps

Calculate Eliminate Standardize

Tact Time TIMWOODS the flow
 Future state guidelines
• Takt Time (or: Takt Capability)

• Continuous Flow (Eliminate & Simplify first)

• FIFO

• Work Flow Cycle

• Standard Work for Flow

• Single Point Initialization

• Visual indicators

• Changes in Customer Demand

Detailed informations in workshop “Future state”

Future state VSM example
 Define improvement targets

• Follow the approach “SMART goals”

• Develop goals with the VSM team
• Goals must be a business impact to Hoshin targets
 Renew the Vision

• Future state is achieved

• Future state map becomes the current state map

• A new future state vision is created

• The vision is documented as a new future state map

• A new implementation plan in created