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Value Stream Mapping in Industry

In: Business and Management

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Value Stream Mapping

1

Value Stream Mapping Definition
• Value Stream Mapping (VSM):
– Special type of flow chart that uses symbols known as "the language of Lean" to depict and improve the flow of inventory and information.

2

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 to service)

3

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
4

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

5

What Is Value Stream Analysis?

Planning tool to optimize results of eliminating waste current state VSM future state VSM

+

+

Lean Basics

=
6

Value Steam Mapping Steps

Next Future State

Future State

Current State

Original State

7

Apply Five Simple Principles
• Specify value from the standpoint of end customer • Identify the value stream for each product family • Make the product flow • So the customer can pull • As you manage toward perfection VALUE
Perfection
VALUE STREAM

PULL

FLOW

8

What is the Value that Flows?
Specify value from the standpoint of the end customer Ask how your current products and processes disappoint your customer’s value expectation:
• • • • • price? quality? reliable delivery? rapid response to changing...

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