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Value Stream Mapping
BY Naik Ddevang
Value Stream Mapping Definition
• Value Stream Mapping (VSM):
– Special type of flow chart that uses symbols
known as "the language of Lean" to depict
waste and improve the flow of inventory
and information.
• VSM follows a products production path
from beginning to end, and draw a visual
representation of every process in the
material information flows. Mapping the
value stream allows us to look at our
business from a different perspective, or
with ‘fresh’ eyes.
Value Stream Mapping Purpose
• Provide optimum value to the
customer
through a complete value
creation process
with minimum waste in:
– Design (concept to customer)
– Build (order to delivery)
– Sustain (in-use through life cycle
Value Stream Mapping Purpose
• It helps us visualize more than just the process level-lets
us see from door to door (and beyond)
• It allows us to see the sources of waste.
• It shows linkage, or lack therefore, between the flow of
information and the flow of material- VSM is the only
tool to include critical information flow and much of lean
depends on how information flow is handled.
• It provides a common language and assists in clearly
communication future state ideas.
• It helps target improvement projects on the right
opportunities that will make a real difference to
performance and flow.
• VSM facilitates the selection of appropriate tools as
needed to archive future state vision.
• It provides a blueprint for implementation. Would you
build a new house without a blueprint.
• It ties together various lean concepts and techniques.
Why ?
• Many organizations pursuing “lean”
conversions
have realized that improvement events alone
are not enough
• Improvement events create localized
improvements, value stream mapping &
analysis
strengthens the gains by providing vision and
plans that connect all improvement activities
• Value stream mapping & analysis is a tool that
allows you to see waste, and plan to eliminate
it.
What Is Value?
• A capability provided to a customer
– of the highest quality,
– at the right time,
– at an appropriate price,
• as defined by the customer.
• "Value" is what the customer is buying.
• What do you currently do for the customer?
• What should you do for the customer?
• You must provide your customer with a good value
proposition.
• A value proposition offers:
• 1 Time
• 2 Quality
• 3 Cost
What Is Value
Stream Analysis?
• Planning tool to optimize results of
eliminating waste
Current State VSM+Idea+Lean Basic+Future State
VSM
Where there is a value from your customers point of
view there is a value steam. The challenge lies in
identifying it.
1 On-time delivery improvement.
2 Productivity improvement.
3 Manufacturing lead time reduction.
4 Reduction in sales break – even point.
5 Finished goods inventory removed.
6 All obsolete machinery removed.
Value SteamMapping Steps
• Select a product family: Identify the unit of
analysis.
• Current State Map: Gather data on your
material and information flow on the work
flow.
• Define Ideal State: Think of where you want
to go in an ideal situation. Making of a
perfect system.
• Future State Map: Draw a future State map
that uses the principal of flow and pull.
• Action Plan: Create an action plan to
implement the future state map you have
created.
Apply Five Simple Principles
• Value
• Value Stream
• Flow
• Pull
• Perfection
What does the Value stream provides
• A visual tool to show how value flows to the
customer in your organization.
• A 2D representation of your value stream
map.
• A clear summary statement which helps
you to communicate a shared vision.
• Measurable goals.
• A continuous improvement plan.
• A system blueprint for how the value
proposition can be improved for the
customer.
• Understanding of how much production
time is value and non value.
What is Flow?
• "ITEMS" flow through a value stream
• – In manufacturing, materials are the items
• – In design & development, designs are the
items
• – In service, external customer needs are
the items
• In admin., internal customer needs are the
items
• Analysis begins with part of a total value
stream,
• That part of the value stream has
customers too
Value StreamMapping Process
Symbols

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Optimize Customer Value with Value Stream Mapping

  • 1. Value Stream Mapping BY Naik Ddevang
  • 2. Value Stream Mapping Definition • Value Stream Mapping (VSM): – Special type of flow chart that uses symbols known as "the language of Lean" to depict waste and improve the flow of inventory and information. • VSM follows a products production path from beginning to end, and draw a visual representation of every process in the material information flows. Mapping the value stream allows us to look at our business from a different perspective, or with ‘fresh’ eyes.
  • 3. Value Stream Mapping Purpose • Provide optimum value to the customer through a complete value creation process with minimum waste in: – Design (concept to customer) – Build (order to delivery) – Sustain (in-use through life cycle
  • 4. Value Stream Mapping Purpose • It helps us visualize more than just the process level-lets us see from door to door (and beyond) • It allows us to see the sources of waste. • It shows linkage, or lack therefore, between the flow of information and the flow of material- VSM is the only tool to include critical information flow and much of lean depends on how information flow is handled. • It provides a common language and assists in clearly communication future state ideas. • It helps target improvement projects on the right opportunities that will make a real difference to performance and flow. • VSM facilitates the selection of appropriate tools as needed to archive future state vision. • It provides a blueprint for implementation. Would you build a new house without a blueprint. • It ties together various lean concepts and techniques.
  • 5. Why ? • Many organizations pursuing “lean” conversions have realized that improvement events alone are not enough • Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities • Value stream mapping & analysis is a tool that allows you to see waste, and plan to eliminate it.
  • 6. What Is Value? • A capability provided to a customer – of the highest quality, – at the right time, – at an appropriate price, • as defined by the customer. • "Value" is what the customer is buying. • What do you currently do for the customer? • What should you do for the customer? • You must provide your customer with a good value proposition. • A value proposition offers: • 1 Time • 2 Quality • 3 Cost
  • 7. What Is Value Stream Analysis? • Planning tool to optimize results of eliminating waste Current State VSM+Idea+Lean Basic+Future State VSM Where there is a value from your customers point of view there is a value steam. The challenge lies in identifying it. 1 On-time delivery improvement. 2 Productivity improvement. 3 Manufacturing lead time reduction. 4 Reduction in sales break – even point. 5 Finished goods inventory removed. 6 All obsolete machinery removed.
  • 8. Value SteamMapping Steps • Select a product family: Identify the unit of analysis. • Current State Map: Gather data on your material and information flow on the work flow. • Define Ideal State: Think of where you want to go in an ideal situation. Making of a perfect system. • Future State Map: Draw a future State map that uses the principal of flow and pull. • Action Plan: Create an action plan to implement the future state map you have created.
  • 9. Apply Five Simple Principles • Value • Value Stream • Flow • Pull • Perfection
  • 10. What does the Value stream provides • A visual tool to show how value flows to the customer in your organization. • A 2D representation of your value stream map. • A clear summary statement which helps you to communicate a shared vision. • Measurable goals. • A continuous improvement plan. • A system blueprint for how the value proposition can be improved for the customer. • Understanding of how much production time is value and non value.
  • 11. What is Flow? • "ITEMS" flow through a value stream • – In manufacturing, materials are the items • – In design & development, designs are the items • – In service, external customer needs are the items • In admin., internal customer needs are the items • Analysis begins with part of a total value stream, • That part of the value stream has customers too