Value Stream Mapping
Encyclopedia
Value stream mapping is a lean manufacturing
technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer. At Toyota, where the technique originated, it is known as "material and information flow mapping". It can be applied to nearly any value chain
.
environments to analyze and design flows at the system level (across multiple processes).
Although value stream mapping is often associated with manufacturing, it is also used in logistics, supply chain, service related industries, healthcare, software development
, and product development.
In a build-to-the-standard form Shigeo Shingo
suggests that the value-adding steps be drawn across the centre of the map and the non-value-adding steps be represented in vertical lines at right angles to the value stream. Thus the activities become easily separated into the value stream which is the focus of one type of attention and the 'waste' steps another type. He calls the value stream the process and the non-value streams the operations. The thinking here is that the non-value-adding steps are often preparatory or tidying up to the value-adding step and are closely associated with the person or machine/workstation that executes that value-adding step. Therefore each vertical line is the 'story' of a person or workstation whilst the horizontal line represents the 'story' of the product being created.
Value stream mapping is a recognised method used as part of Six Sigma methodologies .
However, software tools can also be used. A variety are available either as stand alone products or stencils/add-ons to products such as Microsoft Visio
, Dia
and iGrafx.
Lean manufacturing
Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination...
technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer. At Toyota, where the technique originated, it is known as "material and information flow mapping". It can be applied to nearly any value chain
Value chain
The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.-Firm Level:...
.
Implementation
- Identify the target product, product family, or service.
- Draw while on the shop floor a current state value stream map, which shows the current steps, delays, and information flows required to deliver the target product or service. This may be a production flow (raw materials to consumer) or a design flow (concept to launch). There are 'standard' symbols for representing supply chain entities.
- Assess the current state value stream map in terms of creating flowMura (Japanese term)Mura is traditional general Japanese term for unevenness, irregularity or inconsistency in physical matter or human spiritual condition. It is also a key concept in performance improvement systems such as the Toyota Production System. Mura is one of the three types of waste . Waste reduction is an...
by eliminating waste. - Draw a future state value stream map.
- Work toward the future state condition.
Applications
Value stream mapping has supporting methods that are often used in LeanLean manufacturing
Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination...
environments to analyze and design flows at the system level (across multiple processes).
Although value stream mapping is often associated with manufacturing, it is also used in logistics, supply chain, service related industries, healthcare, software development
Lean software development
Lean software development is a translation of Lean manufacturing and Lean IT principles and practices to the software development domain. Adapted from the Toyota Production System, a pro-lean subculture is emerging from within the Agile community....
, and product development.
In a build-to-the-standard form Shigeo Shingo
Shigeo Shingo
, born in Saga City, Japan, was a Japanese industrial engineer who distinguished himself as one of the world’s leading experts on manufacturing practices and the Toyota Production System. Shingo is known far more in the West than in Japan, as a result of his meeting Norman Bodek, an American...
suggests that the value-adding steps be drawn across the centre of the map and the non-value-adding steps be represented in vertical lines at right angles to the value stream. Thus the activities become easily separated into the value stream which is the focus of one type of attention and the 'waste' steps another type. He calls the value stream the process and the non-value streams the operations. The thinking here is that the non-value-adding steps are often preparatory or tidying up to the value-adding step and are closely associated with the person or machine/workstation that executes that value-adding step. Therefore each vertical line is the 'story' of a person or workstation whilst the horizontal line represents the 'story' of the product being created.
Value stream mapping is a recognised method used as part of Six Sigma methodologies .
Hand drawn or software tools
One main purpose is to deepen one's understanding of a value stream by drawing a map of it. In current-state mapping this is done while observing the actual value stream in situation. Thus, value stream maps are often drawn by hand in pencil; to keep the mapping process real-time, simple and iterative by allowing for simple correction.However, software tools can also be used. A variety are available either as stand alone products or stencils/add-ons to products such as Microsoft Visio
Microsoft Visio
Microsoft Visio , formerly known as Microsoft Office Visio, is a commercial diagramming program for Microsoft Windows that uses vector graphics to create diagrams.- Features :...
, Dia
Dia
Dia is free and open source general-purpose diagramming software, developed originally by Alexander Larsson. Dia uses a controlled single document interface similar to GIMP and Sodipodi.- Features :...
and iGrafx.
Associated analysis methods
Hines and Rich (1997) defined seven value stream mapping tools they are:- Process Activity Mapping
- Supply chain responsiveness matrixSupply chain responsiveness matrixA supply chain responsiveness matrix is a business term used to describe a tool that is used to analyze inventory and lead time within an organization.The matrix is one of a number of Value Stream Mapping tools...
- Product Variety Funnel
- Quality filter mappingQuality filter mappingQuality Filter Mapping is part of the Value Stream Mapping toolkit and is used to analyse processes/functions with respect to Quality.The results of a Quality Filter Map shows how much waste is being generated within an organisation at each stage of the process.Three types of Quality are measured...
- Forrester effect mappingForrester effect mappingThe Forrester Effect Map is a business technique used to analyse the disturbance on the supply chain of reorder activity.The tool is one of the seven Value Stream Mapping tools as defined by Hines and Rich....
- Decision point analysis
- Overall Structure Maps