Value Stream Map...

A value stream map is a lean technique used to document, analyze, and improve the flow of information or materials required to produce a product or service for a customer. 

> Identify and eliminate waste

> Review the flow of process steps and information from origin to delivery

> Has a system of symbols to depict various work activities and information flows

Value Stream Map extends on the Process Map

A process map is a work that should ideally happen as part of the process on the floor, whereas a value stream map is what actually happens. 

• NVA - Non-value-added work - actions that should be eliminated. 
• ENVA - Essential non-value-added work - wasteful actions but essential under operating procedures. 
• VA - Value Added work - Actions that add value to the work. 

1. Add time for each activity
2. Calculate total time
3. Calculate Total value-added time 
4. VA / Total Time = Process cycle efficiency (PCE) 

How to create a VSM?

Example of Pizza Delivery 

• Step 1: Identify the start and endpoints

• Step 2: Document the process steps

Next, indicate how many operators complete each step in the circle within each box. 

Next, include a data box to indicate:

1. CT or the cycle time - Time to complete each activity

2. CO - Change Over Time The time to switch between steps

3. Up Time - The percentage of time the machine is up and running. 

4. Yield - Percentage of parts that pass inspection. 

Next, indicate cycle time (CT) (shown in the diagram below). 

• Step 3: Add inventory and wait times. Connect the start and endpoints. Electronic flow lines represent customer call and electronic payment, a vertical-lined thick line is material pushed from one process to the other, and the solid thick line is shipment/delivery.

Use Inventory Triangles In between each phase to mark the number of parts in WIP. 

Add symbols at the shipment (scooter here) - to show method of shipment

• Step 4: Draw information flow:

- Draw information flow: Suppliers, Production control to represent people centrally coordinating between the suppliers and the pizza store - ensure raw material stock at pizza store doesn't' go below minimum prescribed level. 

- Then place lines of communications (straight lines (manual comms) and crooked lines)

- Add notes about the type of exchange, frequency of exchange and the media used

• Step 5: Create Timelines: 

- Finally create timelines at the bottom of the value stream map. The timelines will have three levels -- 

-- Value-added process

-- Essential non-value added process

-- Non-value added process

- Finally, add a databox at the bottom that houses - Total Cycle Time, Value Added Time and Process Cycle Efficiency

Another example of Value Stream Map (Call Centre)

Value Stream

This is for my own reference:

1. You are able to tell all the product / services your unit / vertical produces / offers.
2. You are able to map the products / services back to the teams (A 1-1 mapping or multiple teams that deliver a particular product / service. Efficiency decreases / time to market increases if there are multiple teams mapped to a product / service).

Value Stream Mapping (VSM) - How To

Value Stream Map: The Graphical Visualization of the Value Stream is called the Value Stream Map.

It shows the diagram of all the major steps involved in delivery a product or service from supplier to customer. 

How is it different from a Process Map?

It is a High-level process map, however with additional customer data, process data, information flows to get sense of where a value is added and where there is a waste.

It is used to:

1. Map flow
2. Understand dependencies
3. Identify and Understand sources of waste
4. Remove waste
5. Re-create an efficient process

* If you want to view a certain step in detail, you can then create a detailed process map for that particular process block.

What if you don't have hard data?

• Walk the process
• Observe
• Obtain estimates from people
• Get collective estimates of project team

VSM Limitations

Limitations of VSM:

1. Finding deficiencies and getting rid of them is not the way for improving performance of a system.

2.The definition of what a value stream is, is itself fuzzy:

a. It doesn't capture all specific actions

b. VSM should be typically applied to product, but often gets applied to product families with little guidance about what constitutes those families.

c. VSM is cumbersome when product variety is high and volume is low (Media team has more than 20 product / product families; and we are looking at only the 10 important activities in each stream, not looking at all the activities in each stream).