Value Stream Mapping (VSM)

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Synonyms
Value Stream Analysis, Lean Process Mapping

Definition

What is Value Stream Mapping?

Value Stream Mapping (VSM) is a Lean management technique aimed at analyzing the current state and designing a future state for the series of events that take a product or service from inception to the customer. It’s a visual tool primarily used in the manufacturing industry, but it’s also applicable in the service sector and administrative processes.

Understanding Value Stream Mapping

The main goal of VSM is to identify every step in a process and eliminate waste. It allows for better understanding of how work is currently being performed (value stream), and how to improve it. It can be broken down into two main parts:

  • The ‘current state’ map: It shows the process as it is at present.
  • The ‘future state’ map: It shows the process as it should be to add more value to the customer.

Benefits of Value Stream Mapping

VSM can offer significant benefits, such as:

  • Identifying waste in the system.
  • Reducing process cycle times.
  • Improving product or service quality.
  • Increasing customer satisfaction.

Usage Examples

1. In a manufacturing company, VSM can be used to identify bottlenecks in the production process, enabling the company to streamline operations and reduce waste.

2. In a software development team, VSM can help to visualize the development process, allowing the team to identify areas of inefficiency and improve workflow.

3. In a healthcare setting, VSM can be used to improve patient flow, resulting in reduced waiting times and increased patient satisfaction.

Historical Context

Value Stream Mapping originated in the Toyota Production System (TPS) where it was known as ‘Material and Information Flow Mapping’. It has since been adopted by Lean manufacturing and has found application in various industries.

Misconceptions

  • VSM is not a standalone tool but should be used as part of a wider Lean methodology.
  • Creating a VSM does not automatically lead to improvements – it’s a tool for identifying opportunities for improvement.

Comparisons

  • Unlike traditional process mapping, VSM not only maps the process steps but also the flow of materials and information.
  • While Six Sigma focuses on reducing variability, VSM focuses on eliminating waste.

Related Concepts

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