VSM, Value stream mapping, Value stream Example

What Is VSM?

Value stream mapping is also called as value stream analysis  or lean process mapping.  Value stream Mapping is defined as lean toll that map each process.  This a good tool to map the waste., recuce cycle time and implement process improvement including reducing delivery  time.

VSM is  designed to map material process step and information flow to gather.  VSM will also identify the bottle neck process of the organisation and help you to improve your Productivity.

Benefits Of VSM

  • Reduce cycle time
  • Reduction of defect & waste
  • Decreased cost
  • Same output with less input
  • Remove unwanted operation
  • Reduce operation time

A targeted and systematic waste reduction that in most circumstances will deliver significant cost reductions through low cost or no-cost improvements. A lot of the continuous improvement (kaizen) focused on eliminating the 7 wastes, typically require rethinking current practices and not significant capital investment.

Below are the few more  benefits of value stream mapping.

1. The Value Stream Map as a Strategic Management Tool
Value stream mapping activities can get everyone onto the same page from senior management, through middle management to the operations, administration, sales, and logistics teams. The process places to focus and priority on improving the core process that generates revenue. Value stream mapping can even help remove political agendas – now that’s a great outcome by itself.

2. Enhancing Sales and Operation Planning through Value Stream Mapping
Value stream mapping helps identify, manage, and eliminate bottlenecks to improve demand management and customer service. A fully developed sales and operation planning process involves monthly capacity reviews and the development of mitigation strategies. It is easy to see how a well-defined value stream map will help sales and operations maximize customer service, reduce inventory and create that level load so important in the development of a just-in-time (JIT) operation. Takt time will be easily calculated from confirmation of demand, and then used to create a balanced workforce plan for the period.

3. The Value Stream Map as a DashBoard for the Operations of the Business
The standards for developing a value stream map help you identify, communicate and define solutions to eliminate waste. To improve, each process should have several key performance indicators (KPIs), demonstrating that the process is in control and improvements are being implemented to achieve targets. Incorporate these and suddenly you have an operations dashboard.

4. Labour Planning and Workforce Development Planning through Value Stream Mapping
Using the principles of value stream mapping in the development of step changes will improve planning and impact favorably on project budget control, and will assist in realizing the benefits that have been more effectively quantified. Besides, the step-change will demonstrate the new relationship between man, material, machine, and method. A gap analysis will then be able to be more effectively conducted, with plans to close skills gaps executed promptly.

5. Value Stream Mapping for Resource Prioritisation
The cost and prioritization of support functions is a challenge for most businesses. In manufacturing, the maintenance activity is typically a constant form of debate. A maintenance regime for every piece of the value stream to ensure its success is what total productive maintenance (TPM) is all about. Logically using the value stream could cut the debate waste. Also, the seemingly uncontrolled activities and costs associated with IT management seem to be a common problem in many organizations today. It would be hard to argue alternative agendas over initiatives and resources that are logically prioritized and directed towards streamlining, improving, and supporting the key processes.

So, these are five reasons to start using value stream mapping as a mechanism to focus resources on the adoption of lean manufacturing principles. There are several ways to start recording your value stream map. Good old pen and paper is a great start. We recommend transitioning to Microsoft Excel at some stage, especially when you introduce KPI’s. Finally, there are several specialized software tools available that can make the mapping process more efficient

Implementation Plan

Step-1:- Identify the product
The first step, identifying the product, consists of choosing which specific product the VSM (VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)will focus on. Prepare a product and operation matrix as pet the below-mentioned figure. Considered the product that covers all the process so no operation is overlooked


Step-2:- Create a current VSM
After the product used has been chosen, an initial VSM (VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)of the current process is created which include cycle time, TAKT time, work in progress (WIP), set up time, downtime, number of workers, and scrap rate.

Step-3:- Evaluate the current map, identify problem areas
Following the completion of the current map, the team evaluates the process and the steps involved. All this information is then compiled on a map and analysis is performed. On a typical VSM, every step of the process is included. For each step, parameters could include cycle time, TAKT time, work in progress (WIP), set up time, downtime, number of workers, and scrap rate. A VSM (VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)identifies where value is added in the manufacturing process. It will also show all other steps where there is a non-added value. After analyzing and evaluating the current process of the product, the problem areas can be identified.

Step-4:- Create a future state VSM
Once you have changed the current process to minimize problem areas completely, you can create a final state VSM.

Step-5:- Implement the final plan.
The last step of the value stream mapping process is to implement new ideas, which will, in turn, create a more efficient lean manufacturing process

11 Effective TIPS For VSM (VALUE STREAM MAPPING) Implementation

Conventions and Symbols- Often people call things value stream maps, but they’re not developed, drawn, or acted upon with the correct methodology. They might be value stream maps in spirit, but they do not follow true VSM (VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)techniques. Some might cover an entire wall of a room with brown butcher paper and use color-coded notes for every single step in a process. It’s not long before hundreds of Post-Its cover the wall. It’s impressive. It takes a lot of work, and now they have every step down to the nitty-gritty detail, but it is so overwhelming that they become paralyzed in trying to make any improvements.

The best practice is to draw maps on 11- × 17-in. paper (or A3) using generally accepted standard symbols or icons. By sticking to the standard of symbols, anyone trained in VSM (VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)should be able to read your maps.

1. Draw It by Hand First – Some VSM (VALUE STREAM MAPPING) software programs help you draw maps and perform many data manipulations. In my opinion, you should learn to draw it by hand first, because it will help you better understand the methodology By putting pencil to paper, you emerge yourself in the mapping process, and that’s how it becomes real. Yes, it may seem like a struggle at first, but with practice, it becomes easier. The day you can grab a piece of paper, start discussing a problem with a colleague, and draw a map is the day you start to understand the power of VSM.

Also, maps should be temporary. Once you reach your future state, that becomes the current state and you repeat the process of continuous improvement. Paper and pencil allow you to update maps easily, with no overprocessing waste.

If you decide to use software instead of paper and pencil, make sure you are using it for the right reasons, such as for the ability to send a map electronically, and not just to make your maps look prettier.

2. Determine the Process Families—Product Families- Many organizations skip this step because they are not sure how to do it, they think their processes are overly simple when they are not, or they think it is too hard to do. Never skip this step. If you do, you may be setting yourself up for future difficulties.

Many job shop managers say they never make the same thing twice. This might be true, but they probably fabricate items that go through the same or similar processing steps. This is why, instead of a product family, I like to use the term process family, which also makes it easier to apply to office functions

By grouping jobs into different process families, you can achieve better flow and an overall improvement in a job shop environment. For instance, an improvement team at one high-product-mix machine shop wrote the number sequence of process steps as that particular part went through the shop. From there they determined that there was an even better sequence of operations and that combining some operations would make it easier to produce the part at a lower cost than originally quoted. From that point on, when they prepared a quote, they made sure to review their process family matrix to ensure they had the best order of operations

3. Limit the Number of Process Boxes- When you create your process family matrix, try to keep it at the appropriate level or scope. Limit the VSM (VALUE STREAM MAPPING)to between 10 and 15 steps. Detailing more than 15 steps may make it too complicated.

VSM (VALUE STREAM MAPPING)is scalable, so one process of your door-to-door map (showing everything from the initial order through shipping and receiving payment for that order) still should have only 10 to 15 steps. One of those steps may be “fabricating.” This can be broken up into another departmental-level map that also may have10 to 15 steps: laser cutting, bending, hardware, welding, and so forth. If a map has more than 15 steps, you might want to consider combining steps and renaming the process.

4. Use a Team to Create the Maps and a Plan- Having one person create the map means you used only one brain and two hands. The information gathered may be biased or, even worse, incorrect. Decisions need to be made for what is best for the entire value stream, and that’s hard to do with only one person. Make sure you use a good cross-functional team to walk the shop floor, analyze part flow, gather the information, and then draw the map.

Ideally, someone with experience in VSM (VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)should lead the initial meetings. A person who has drawn several maps can help determine the process families with the team, teach the team the correct way to collect data and information, show how to draw the maps, coach toward a better future state, and facilitate a successful event.

5. Start With Basic Building Blocks- If you’re trying to create a manufacturing cell when basic concepts such as 5S, standard work, or teamwork are not even present in an organization, good luck. I’m not saying that you can’t jump to a more complex technique or practice right away, but you will have a higher probability of success if you have a start on the basic concepts. This also goes for lean concepts like pull systems and kanban as well as total productive maintenance. Start with some of the basic principles and tools first before you try to implement something more complex.

6. Don’t Expect Everything to Show up on the Map- Even though the maps will give you great information and insights for improvement, they typically do not have other enterprise-wide initiatives that an organization should undertake during its lean journeys, such as 5S workplace organization and standardization. A company needs to have 5S everywhere, and VSMs may show only an area or process that needs 5S, not the entire facility. Also, other important functions like communication and training do not usually show up as an action item on a VSM, but these functions are extremely important while implementing lean concepts.

7. Appoint a Value Stream Manager- The value stream manager should ensure that the organization implements the plan to attain a future state. Such a manager can see the whole value stream and work with teams to implement the plan. If you do not appoint the appropriate person as a value stream manager, the maps and plans may languish in the ether.

8. Follow the Plan- A company might take all the time and trouble to create the plan—and then fail to implement it. What a waste! Managers at one company created their plan and decided to do other things that popped up during the next six months. They stayed in their old mode of fire fighting instead of using the plan to improve the value stream. They even decided to redecorate the office (not on the plan) with new furniture instead of focusing on more important projects. Creating the plan isn’t the most important thing—implementing that plan is.

9. Update the Maps- One of my favorite questions I received while presenting at a conference was “How often should we be updating our maps?” I replied, “Basically, whenever there is a change, probably once a month or so.” There was a long pause and then the person said, “I guess we are a little behind.” I asked, “When was the last time you updated your map?” He said, “Two years ago.” You need to keep the maps updated, and it’s easy to do if you use paper and pencil. We use these maps to communicate. If you don’t show your progress, you are not communicating effectively.

10. Post Maps Where People Will See Them- Question: “Where are your maps?” Wrong answer: “In my desk drawer.” Correct answer: “Posted on our lean communication board.”
Don’t hide your maps. A key benefit of displaying your value stream maps is to communicate what is going to happen at your organization over the next few months or during the next year. Many people resist change because they fear the unknown. Posting the maps with the plan removes or eliminates this fear. It’s also a way to start discussions and obtain buy-in and ideas for improvement. Don’t hide your maps; be proud of them!

11. Start With the Big Picture- Begin with a door-to-door VSM (VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)(VALUE STREAM MAPPING)of one of your process families. Try not to dive into a departmental or cross-functional map before developing the higher-level map. By seeing the big picture, you will be able to make better decisions about your value stream. If you dive into a lower-level VSM, you may not get the results you were hoping for.

This goes hand in hand with No. 4, limiting the number of process boxes. If you initially draw a giant map (especially as described in No. 1), you can get lost in detail and focus on elements that may not have a dramatic effect on overall efficiency.

The massive map may, for example, uncover problems with welding fixtures. That’s fine, but a door-to-door map—one that identifies welding as part of the “fabrication” step—shows a different story. The map reveals that fabrication takes five days, but order entry and engineering takes 10 days. The broader map shows where to start—in this case, order entry and engineering. Drawing a detailed map here will probably reveal significant waste, and show you where you will get the biggest bang for your improvement buck.

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