Value Stream Mapping - Explained
What is Value Stream Analysis?
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What is Value Stream Mapping?
Value stream mapping, also known as value stream analysis, is a method for analyzing the value delivery process in a business. More specifically, it is primarily used to create a graphical or visual representation of the value chain in a business. This includes mapping operations and administrative processes. Collectively, this is known as the flow value or a value flow visualization.
Value stream mapping is used to increase efficiency by minimizing waste and more efficiently allocating resources - such as time, labor, materials, equipment, and information. It helps identify inefficiencies, such as process bottlenecks. Value stream mapping is integrated into quality management and lean management approaches.
The Value Streaming map originated as part of Toyota’s version of Lean Manufacturing (Toyota Production System).
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How Does the Value Streaming Map Work?
The Value Stream Mapping method visually maps the flow of materials and information through all phases of the production process.
This includes documenting the manufacturing process with cycle times, down times, in-process inventory, material moves, information flows.
The process usually includes mapping the "Current State" and the "Future State". These then serve as the foundation for other Lean Manufacturing strategies.
This process allows one to visualize all of the process activities and provides a guide towards the future desired state.
Waste is any activity that does not add value to the final product.
The seven commonly accepted wastes in the Toyota production system were originally (reformulation by Jones between brackets):
- Overproduction (faster than necessary pace).
- Transport (conveyance).
- Inappropriate processing.
- Unnecessary inventory (excess inventory).
- Unnecessary motion.
- Defects (correction of mistakes).
VSM can thus serve as a starting point to help management or those in the production process to recognize waste and identify its causes.
Peter Hines and Nick Rich have suggested the following tools (Article: "The seven value stream mapping tools" - International Journal of Operations & Production Management, Vol. 17, No. 1, 1997, pp. 46-64.).
- Process activity mapping. Origin: Industrial Engineering.
- Supply chain response matrix. Origin: Time compression/logistics.
- Production variety funnel. Origin: Operations Management.
- Quality filter mapping.
- Demand amplification mapping. Origin: Systems Dynamics.
- Decision point analysis. Origin: Efficient Consumer Response/logistics.
- Physical structure mapping.