Value Stream Mapping  VSM Study with example

→ Value Stream Mapping is an improvement tool which is visualizing the entire process of manufacturing or service representing both material and information flow.
→ It is one of the best Lean Manufacturing Tool as well as Lean Management Tool.


Value Stream Mapping Introduction:

→ T. Ohno from Toyota Production gave the concept of a Value Stream Mapping in 1988.
→ It was introduced as 'Material and Information Flow Mapping’.
→ Later it is named as Value Stream Mapping by John Shook and Mike Rother.
→ Value Stream Mapping puts all the information in one place and it is a very much effective method as compared to other tools like process mapping or any other tools.
→ It is an improvement tool which is visualizing the entire process of manufacturing or service representing both material and information flow.
→ This tool is also used in Six Sigma Projects.



➤ What is Value?

→ "Value" is a product or service that the customer is buying.
→ It is a capability to provide a product or a service having the highest qualityat an appropriate price, and at the right time as defined by the customer.
→ Customer’s expectation of value may be, price, quality, reliable delivery, rapid response to changing needs, etc.……

➤ What is a Value Stream?

→ “Value Stream” is to identify the wasteful activity or process from the system and eliminate it from the system.
→ This happens by checking all small activities or process from start to end process which is necessary to convert all input into an output.
→ Value chain refers to all of the activities within an organization.
→ While a Value Stream focuses on that activity or process which adds value in a service or in a product.

➤ What is Value Stream Mapping?

→ Value Stream Mapping is a graphical tool that helps us to see and understand the flow of process and information as a product and service.
→ Then you look for opportunities to eliminate or reduce Waste in the process.
→ A value stream usually includes people, tools and technologies, physical facilities, and communication channels, etc...
→ The Value Stream includes value-added activity and non-value added activity throughout the process from start to end.
→ In the majority, the Value Stream Mapping is associated with the manufacturing process.
→ Value Stream Mapping can also be applied in various industries like Product development, Service related industries: e.g. healthcare, insurance, hospitality, and logistics, etc…
→ VSM Study is one of the important in Lean Six Sigma Project.

 ➥ Different things flow through the Value Stream as mentioned below:

→ In manufacturing or distribution, materials flow.
→ Patients flow in health services
→ Information flows in office areas.
→ Internal customer flows in administration.
→ So, in various system service, information, or products flow through a value stream.

➤ Reason for Value Stream Mapping & Analysis

→ Find out the relationship between process steps
→ We can get information about the current process
→ We can have an actual illustration of the process
→ For setting the improvement targets for the organization
→ Identify improvement opportunity
→ Provide product or service the highest quality, at an appropriate price, and at the right time as defined by the customer
→ Design (concept to a customer)
→ Build (order to delivery)
→ Sustain (in-use through the life cycle to service)



➤ Objectives of Value Stream Mapping:

→ To identify improvement possibility in the process.
→ By eliminating lean wastes from the process and improve the performances of the process.
→ To improve the process efficiency.
→ Satisfy our customer with our service.
→ Performance improvement of the process.

Team Members of VSM Study Project:

→ Executive Sponsor
→ Process Owner
→ VSM Coach (Facilitator)
→ Workshop/office Participants

➤ Role of the members in VSM

➥ Executive Sponsor:

→ Executive Sponsor is the owner of the Charter
→ He/She decide the team members for the project
→ Executive Sponsor is responsible for ensuring members participation in the project 
→ Ongoing project status is presented by the Executive Sponsor.
→ He/She takes part in define the scope, start the project, Active team member of review, audit & follow-ups committee

➥ Process Owner:

→ The process is responsible for the whole process flow.
→ He/She leads the VSM project from beginning to end.
→ Process Owner takes ownership during the VSM event
→ All project meetings, progress, and MOMs are maintained by the Process Owner.
→ Ensures action item pre-work is complete for scoping, workshop/office, and reviews
→ Conduct the review of the implementation plan at a certain interval.
→ He/She gives information to sponsor about the progress of the project.

➥ VSM Coach:

→ VSM coach provides coaching to Process Owner and team.
→ He/She is responsible for defining the scope of the project.
→ Gives training to VSM team and give coaching to the team.
→ VSM Coach gives training on Lean Manufacturing and Lean Process to the team.
→ Provide training on lean skills to all participants.

➥ Workshop/office Participants:

→ Participate in the VSM project as a Subject Matter Expert (SME)
→ All Workshop/office Participants are responsible for the process steps.
→ They support the VSM project for successfully run.
→ The group as per project requirement

How to create a Value Stream Mapping?:

→ VSM is a team exercise so all department's representative should participate in this event.
→ Value Stream Mapping project should be lead by the expert and can guide other team members for the successful project. 
→ The best method of making Value Stream is by hand using a pencil and A3 drawing sheet.
→ During creating the process map all participants should be involved in this activity is always a better decision.
→ Begin with a quick walk along the entire process to process.
→ Always trust on your own taken data
→ Map the whole value stream yourself.

Value Stream Mapping Process Steps:

  1. Gather Data & Information
  2. Create a Current State Map
  3. Future State Map & Action Plans
  4. Execute the Plan
  5. Align
Value Stream Mapping Process Steps



➤ Step 1 - Gather Data and Information:

→ Gather Information:
→ Define the start & end of the process
→ Define the criteria for data collection
→ Walk and observe the actual workplace and process
→ Take all information related to each and every step.
→ Measure actual lead time, actual cycle time, on-time delivery rate, and defect rate, etc...

➤ Step 2 - Create a Current State Map in VSM Study:

→ Record the detail about the current flow material or information.
→ Make an analysis of the data
→ In the current state of value stream map, we have to mention the actual readings or data of the process.
→ In this stage, we do not have to worry about the future of the process.
→ We have to mention just as the process is and it should show the real picture of the ongoing process.
→ Then after we can check the possibility of improvement.

➥ VSM Study Symbols:

→ We need to understand the symbols that are using in Value Stream Mapping.
→ There are many symbols used in Value Stream Mapping.
→ The different symbols are used for a different activity that is mentioned in the below picture.
→ By using these symbols we can make a more clear understanding of the process.

Value Stream Mapping Study Symbols


Value Stream Mapping Study Symbols 01

➥ Collecting Data and Time Studies in VSM Study:

→ The very important step of Creating the Value Stream Mapping is collecting the data.
→ There are a few ways in which we get information.
→ The first, we get the data directly from the industry by contacting all relevant personnel. 
→ Take process flow and work instruction data from the company, as well as observed
→ The process in actual, and conduct own time studies to get exact information about the processing time.
→ During the walk carefully observe all process steps and ask as many as possible questions.
→ And collect all data related to that process.

➥ Some examples of data you should gather in the VSM Study are as follows:

→ No. of work in progress
→ Cycle Times for each process
→ Inspection or testing time
→ Check for the wasteful activity
→ Waiting time and working time etc…

➥ Process Steps in VSM Study:

→ Mention the process flow as actual it is.
 Write down all process steps in the process box and add all data in this box related to the process
 Note down inventory days, delay time, wait time, and working time
→ Then calculate all working time and waiting time.
→ Find out the value stream efficiency or Process Cycle Efficiency as calculation mentioned in the below picture.

➥ Analysis of the Current State Map in VSM Study:

→ The current state map is a way of saying “what happens now” or the “as-is” process.
→ It should provide all process related information like how the items are being processed and what happens in each step?
→ This information helps us to find out the root cause of problems.
→ So we can improve our process flow by eliminating the root cause.
→ And we can improve the process efficiency, reliability, and flexibility.


Create a Current State Map in VSM Study

➤ Step 3 – Future State Map & Action Plans:

→ Discuss the ideal state
→ Develop the future state map & action plan
→ Build a draft timeline for implementation
→ Communication & training as required

➥ Creating an Ideal and Future State Value Stream Map in VSM Study:

→ Define what we want to achieve the target so that we can focus our efforts on achieving our future State.
→ The expert should create an ideal Value Stream Map which is the best process.
→ The ultimate goal of your value stream mapping exercise should be approved by senior management.
→ The simplest way to achieve the target is to plan a series of improvements and divide into a various lean event like 5S Methodology, Do-it, Burst, Kaizen Event,  and Project.
→ We can highlight the improvement opportunity by using kaizen burst symbol on our current state map.


Creating an Ideal and Future State Value Stream Map in VSM Study

➥ Analysis of Future State Map in VSM Study:

→ In the future state, map analyzes and reduce the waiting time, so overall time will decrease and performance will increase.
→ By using a Pareto chart or ABC analysis we can easily find our the bottleneck area where we have to work on a priority basis.
→ Then take any of bottleneck process and further analyze on a micro basis, find out the improvement scope and eliminate the Lean Wastes from the process.

Analysis of Future State Map in VSM Study

➤ Step 4 – Execute the Plan:

→ Implement improvements
→ Conduct Workshops, events, projects, bursts per the implementation plan
→ Achieve value stream objectives
→ Create an environment of Continuous Improvement or Kaizen.
→ During the execution of plan eliminate all wasteful activity from the system or process flow.


➤ Step 5 – Align & Analysis of Current State and Future State :

→ Arrange Value Stream Alignment Meeting
→ Periodic basis (based on action plan schedule)
→ Review event implementations & results
→ Evaluate the impact to value stream metrics (individual events and overall)
→ Review next quarter events
→ Inspect changes in a business environment
→ Communicate results
→ Update value stream as required
→ Update implementation plan as required
→ Address resistance and sustainment issues


Analysis of Current State and Future State

Keys Points for Successful VSM Study:

→ Select the right person in the VSM project team.
→ Give specific decision-making authority to the team member for the successful project run.
→ All team member give their participants with effectively and efficiently.
→ Always attack the process, Don't attack people
→ Frequently analyze the progress of the project and motivate people for a successful project.



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