Value Stream Mapping: the secrets of the method
Have you ever heard of Value Stream Mapping? Do you know what it means?
It is a graphic visualisation method that arose in the 1980s in Toyota plants. Its objective? To optimise performance by reducing waste in production processes.
Initially used in an industrial context, VSM can be applied to a large number of very different activities (Import-Export, Retail, etc.).
Let's see together what it is, what its connection is with Lean Manufacturing and the DevOps approach, and how to create a strategy for its implementation.
What is Value Stream Mapping?
Definition
Value Stream Mapping (VSM), literally Value Stream Mapping, is a tool that makes it possible to visualise the entire process along the value chain from the moment an article is ordered until it is delivered to the customer.
The objective is not the improvement of a single process, but rather a global and continuous optimisation over time, capable of increasing organisational efficiency.
Links with Lean Manufacturing and DevOps practices
Lean Manufacturing, literally 'lean production' in Italian, is a method used in industry to eliminate waste and increase profits.
Value Stream Mapping is one of the most important techniques in Lean Manufacturing.
VSM is also very important in the DevOps approach, a practice in which one of the main objectives is to accelerate software release times. For this reason, a map that makes the value stream explicit makes it possible to recognise improvement opportunities earlier, so that the process can be speeded up considerably.
How to develop a VSM strategy
VSM in 5 steps
The VSM strategy can be implemented through 5 steps.
To implement them perfectly, you may want to consider hiring a competent and responsible change management Value Stream Manager.
Step 1: choosing the product
First, you should identify the product (or a product family) for which you want to analyse and visualise the process graphically.
This choice depends particularly on the size of your company: for a small company, analysing all products at the same time may be the right choice; in the case of more structured companies, on the other hand, it is much more practical to divide up the company's value streams and carry out differentiated analyses. In the latter case, one usually starts by carrying out the VSM analysis for the most important products, and only then assesses the other value streams.
Step 2: Realisation of the Current State Map
The Current State Map provides a snapshot of the current state of the product in the value stream. It is during this phase that inefficiencies can be more easily identified and actions to be taken for process improvements (" kaizen") evaluated.
To design it, the flow of materials and the flow of information must be analysed:
- Material flow: determines which are the main production steps in the plant, the timing, the number of dedicated resources and the amount of stock along the process.
- Information flow: determines what forecasts and orders are provided by customers and suppliers. The time taken to process this information is determined.
Step 3: Implementation of the Future State Map
The Future State Map identifies the target to be achieved, i.e. how the product is envisioned in the future within the value stream.
The VSM provides for an extremely reduced lead-time (the time it takes for the part to pass through the factory), so that the production process is only set in motion at the moment a customer request arrives (just-in-time production).
Step 4: Draw up a roadmap to reduce waste
In this step, a plan is drawn up to be implemented with all the actions to be carried out in a precise order and with a well-defined timeline.
First, an exhaustive list is drawn up of all the tasks to be carried out in order to realise the improvements. Then, priorities are set in a logical order. The plan must include time estimates, cost estimates and the people responsible for each task.
The Lean Master Plan is ready! All that remains is to implement it.
Step 5: Take action
The plan is executed in the short and medium term. The time frame for implementing the Lean Master Plan depends essentially on the size of the company: it may take a few months for SMEs, but may take a few years for more structured companies.
☝It is important to monitor the results achieved (by means of KPIs) on a regular basis: in the event of unforeseen events, corrections can be made on the fly, even adjusting the future status.
The right tools
Carrying out Value Stream Mapping on a sheet of paper is now a decidedly outdated practice. Today, there are several software solutions that allow you to realise quality VSMs in a short time.
eVSM allows a large number of KPIs to be displayed graphically, and offers differentiated functionalities depending on the sector in question.
Smartdraw provides the user with more than 70 maps, and is rich in graphical tools for drawing any business process.
Finally, Creately is a software used worldwide by more than 4 million users, and offers a high-level user experience.
A process of continuous improvement
For Value Stream Mapping to work at its best, it must become an integral part of the corporate strategy: it is therefore essential that the improvement process is continuous.
And you, what do you think about Value Stream Mapping? Have you already experienced it in your company? Let us know by commenting below!
Article translated from Italian