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VALUE STREAM MAPPING

Value Stream Maps are blueprints for your organization's Lean transformation. Value stream mapping is a Lean tool that is useful for all types of organizations. It can be used for both the main profit stream and the administrative stream. The Value Stream Map tool:
  Shows flow of process steps required to complete a product, service or administrative function from order to delivery
  Reveals waste and measures process performance
  Links material and information flow
  Gets employees involved in planning and deploying a process improvement plan
  Gives managers and executives a picture of the entire process to produce a product, provide a service or perform an administrative function

Mapping the Value Stream
Value stream mapping begins by involving your employees who are doing the work. This approach ensures that everyone is aware of the process as it works today, agrees on current performance of that process, and is involved in planning its improvement. image of the 4 step value stream mapping process

The work group (employees who know specific details of the process) is identified and does the following:

Step #1: Draw a Current State value stream map to see and understand how work is presently done. The work group measures the process time (the amount of work done to complete a task) and lead time (the total time to provide a product or service from order to delivery).
Step #2: Draw a Future State map to improve the cost, service, and quality of the product/service delivered to an internal or external customer.
Step #3: Plan a focused implementation effort which will make significant changes in a short period of time.
Step #4: Implement the plan, of course! But, with a true focus on PDCA (plan/do/check/act) and monthly management reviews to understand problems and remove barriers.


  The process improvement (Kaizen) plan envisioned in value stream mapping is based on understanding the current state, setting process improvement goals that are tied to business and operational goals and making a plan to effectively achieve them.  

Value Stream Mapping and Value Stream Management Made Simple
Many of LTG's Publications help you understand what to do and how to do it beginning with Learning to See, a value stream mapping instruction manual. Co-authored by LTG partner John Shook, Learning to See was awarded the Shingo Prize for Excellence in Manufacturing Research. Learning to See contains a sample case study that walks you step-by-step through the value stream mapping process.

After that publication, we have published other books: The Complete Lean Enterprise and Value Stream Management for the Office, plus an in depth training publication, Mapping to See, whcih encompasses critical areas of a transformation to address while improving value streams.

Value Stream Map Examples
Below are summaries of results from two companies applying the theory and practice of value stream mapping using Administrative Lean™. The tables compare Current and Future State value Stream metrics, and show results when Lean techniques are put to effective use to reduce process time and lead-time and improve quality.

 1. Engineering New Process Value Stream

 Metric

Current State

Future State

Improvement

 Lead time (days)

255

183

28%

 Process time (hours)

240

129

46%

 Number of meetings

2

0

 

 Number of operations

15

9

40%

 

 2. Vehicle Material Cost Analysis

 Metric

Current State

Future State

Improvement

 Lead time (days)

128

49

62%

 Process time (hours)

161

59

63%

 Number of meetings

22

2

90%

Conclusion
The value stream perspective shows process flow from a systems view, and reveals how to measure performance of that system. The value stream map and the process improvement plan based on that map are used to put Lean thinking to effective use throughout the organization.

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