Value Stream Mapping

Value Stream Mapping: The Search for Adding Value and Eliminating Waste

By Team TranZact | Published on Sep 1, 2023

Value Stream Mapping (VSM) helps produce and deliver goods. It leads to on time customer service. This process includes visualizing and laying out the entire output using standard symbols for each step.

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This gives a clearer picture and visibility and avoids any confusion that might arise. This is done not only for raw materials but also for information about various streams and flows.

What Is Value Stream Mapping?

Value Stream Mapping means understanding the importance of each production step in creating the final product. This happens when all the steps are carefully planned and carried out correctly.

This also helps remove unnecessary steps from the customer's viewpoint and leads to a cost-effective process.

VSM improves repeatable processes by reducing time off. Using value stream mapping symbols, the optimizer optimizes product delivery and helps identify waste production.

The History Of Value Stream Mapping

Value Stream Mapping is not a new concept. Its roots go back to 1918.

The idea was mentioned in a book called "The Installing Efficiency Methods" by Charles E. Knoeppel. Toyota Motor Corporation is often credited for popularizing this process. They found smart ways to make items efficiently and cut out wasteful steps.

Toyota adopted flow mapping in the 1990s and used real value stream mapping examples to show its efficiency. Today, lots of different industries use this idea to make their work better and make customers happier.

Read Also: Profit From Waste: How to Manage Your Scrap Inventory

The Benefits Of Value Stream Mapping

Value stream mapping is a powerful tool that brings many advantages to businesses. It helps them understand and improve the way they do things, making processes smoother and more efficient.

VSM is very beneficial for business sustainability, and here are a few other reasons why.

1. Reducing unnecessary production steps not only minimizes waste generation but also aids in pinpointing its underlying causes.

2. Once the team identifies periods that generate waste, they can actively improve their behavior, culture, and communication.

3. This process helps the team focus more on the customer's needs and views rather than on the company's mistakes.

Value Stream Mapping Examples

Value stream mapping can be done effectively using various software with the core symbols stored in the libraries for the users.

  • A Value Stream Mapping template is also helpful, as it is available in different designs.
  • If not in an online mode, one can also create a map on a whiteboard similar to a flowchart.
  • Post-its and other such items can be used to add supplementary information.
  • One can also make a Value Stream mapping ppt to speed up production.

Read Also: Portfolio, Program, And Project Management, What Are The Differences?

The Challenges Of Value Stream Mapping

Even though there are many advantages to using this mapping technique, one must be aware of the challenges to avoid them.

1. Particular focus must be put on the Return on Investment (ROI) while launching new production methods.

2. This process is highly cross-functional and difficult. So, it requires the involvement of experienced staff.

3. Reducing waste can be challenging because fear and uncertainty may arise during the process.

4. Conducting value stream mapping is essential, but overdoing it can cause problems.One should maintain a balance between all production processes for decent working.

Value Stream Mapping Use Cases

The VSM (Value Stream Mapping) process is really useful for different types of businesses. Its impact depends on the area it's used in.

In a supply chain (the steps a product goes through to reach the customer), this process helps make things faster. It figures out where things are slowing down and helps to reduce them. It also finds places where things are being wasted by looking at each step in how information is passed along.

Here are some common use cases for Value Stream Mapping:

  1. Faster Time

  2. Less Waste

  3. Same Process

  4. New Stuff

  5. Continuous Improvement

  6. Capacity Planning

Read Also: What Is Corporate Performance Management (CPM)?

Uncovering and Minimizing Waste through Value Stream Mapping

Value Stream Mapping data helps find and reduce waste in a simple way.

  • It shows where tasks are inefficient, so you can make them better.
  • By using this method, you can save time, money, and resources.

The Value Stream Mapping Symbols

To understand the mapping process, one must know about the standard icons. These value stream mapping metrics lead to a better understanding of the charts by people from different professional backgrounds.

The icons are available for:

1. Material flow

  1. Process

  2. Process shared

  3. Customer/supplier

  4. Inventory Box

2. Information Flow

  1. Manual info flow

  2. Electric info flow

  3. Signal kanban

  4. Kanban post

3. General

  1. Kaizen lightning burst

  2. Operator

  3. Quality problem

  4. Safety stock

Read Also: Ultimate Industrial IoT (IIoT) Implementation Guide For Businesses

Creating a Value Stream Map: A Step-by-Step Guide

The issue faced from the consumer's standpoint is the deciding factor behind the motive of mapping. It could range anywhere from late delivery issues to product improvements. Let us see how you can create a value stream map.

Empower the right team

A team is the driving force of a project. Having a team that unites with each other makes working extremely easy.To succeed, you need a skilled team, and it's important to have enough budget ready to avoid delays.

Process bounding

This refers to concentrating on the smaller things that cause issues. It leads to efficient problem solving When mapping, concentrate on the specific problem that has come up. Instead of looking at the whole process, focus on a particular area.

Map the limited process

When reviewing the mapping, be thorough and responsible. Relying only on firsthand experiences can lead to production mistakes..

Collection of data

The process data needs to be included in the map efficiently. It consists of information on the number of people involved, wait time, working hours, downtime, and more

Assessment of the current map

Investigation leads to solutions. One must thoroughly review the current working plan to avoid mistakes in future mapping.

Designing the future map

The new map should align with the company's vision.

Implementation

As easy as it sounds, this might be one of the most challenging processes.

Read Also: Maximum Stock Level: Definition and Calculation

Leveraging Value Stream Mapping for Continuous Delivery Optimization

For continuous delivery(CD), the application of the value stream mapping is not necessarily required. People have successfully set up CD pipelines without using mapping techniques. While value stream mapping can provide insights, it's not a strict requirement for achieving effective CD. The main focus is on the

  • automation
  • collaboration
  • efficient processes.

How To Start Value Stream Mapping?

VSM process is gaining more exposure each day due to its high advantages. Even though it might be complex to set up initially, it smoothens the production process.

If you want to set up a map for your business easily, connect with TranZact today. Here are a few reasons why you should choose TranZact.

  • TranZact provides specialized guidance and support for easy value stream mapping setup.
  • TranZact ensures a smooth VSM integration process, making it accessible to businesses of all sizes.
  • TranZact offers customized approaches, matching VSM with your specific business needs for maximum impact.

Faqs On Value Stream Mapping

1. Who started Value Stream Mapping?

Toyota Motor Corporation started using Value Stream Mapping. It's a way to make work better in companies. Toyota used it to make their processes faster and waste less.

2. Is Value Stream Mapping only for big companies?

No, small businesses can use Value Stream Mapping too, not just big ones. Even small companies can use it to make their work smoother and better. It helps them find problems and make things work well.

3. Can we use mapping in hospitals?

Yes, mapping is useful in hospitals too. It helps doctors and nurses work better. They can see how patients move and get treatment. It makes things faster and patients get better care.

4. Does mapping change how people work in offices?

Yes, mapping can make work better in offices. When people in the office find problems and make solutions together, they feel happier and work better. This makes the office a nice place to work.

5. What does Handoff mean?

Handoff is like passing a toy from one friend to another. In work, it's when one group finishes a part of a job and gives it to the next group. This helps the work keep going without stopping.

6. Why do we do mapping?

We do mapping to make customers happy. When customers need something, we want to do it the best way. Mapping helps us find what's not good and fix it. This makes customers like what we do and everything works well.


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TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.