Sometimes it can be very challenging to identify and address wastes in business processes. Value Stream Mapping helps organizations identify wastes in specific (sub)processes of production. We will explain how this value stream analysis works, what types of wastes you can discover, and how you can create a VSM model yourself.
What is Value Stream Mapping?
Value Stream Mapping (VSM), also known as value stream analysis in Dutch, is a popular tool within the Lean methodology, hence the term VSM Lean. Value Stream Mapping is used to visualize a business process. This is done to identify and make visible the wastes in the process so they can be addressed. In this way, value stream analysis helps to make processes more efficient. For example, VSM can optimize workflows, reduce lead times, and improve quality – all by identifying and eliminating wastes.
What are the benefits of Value Stream Mapping?
Value Stream Mapping can be applied to any production process that involves repetitive steps and handoffs. This makes value stream analysis widely applicable. There are several benefits your company can reap by applying VSM Lean:
- Wastes are detected more quickly: By eliminating them, you can make the process much more efficient, for example, by limiting wait times and preventing overproduction.
- Customer satisfaction is increased: By eliminating wastes and streamlining the process, customers benefit from products that better meet their expectations and desires.
- Quality is improved: VSM Lean makes it easier to identify potential problems and their causes, allowing for quicker implementation of measures to solve the issues, enhancing overall quality.
- Lead times are shortened: Identifying and addressing bottlenecks in the process can shorten lead times and allow for faster response to customer needs.
- Efficiency, efficiency, and more efficiency: With Value Stream Mapping, you get to know the process better. This helps in quickly recognizing inefficiencies and reducing them step by step, continuously working towards a more efficient process.
What types of waste exist?
Value Stream Mapping can reveal various types of waste in a process. All these wastes significantly impact the overall efficiency of the process and the quality of the final product. The main types of waste include:
- Overproduction: Producing more inventory than needed to meet customer demand.
- Waiting: Time wasted waiting for materials, information, or approvals, often due to poor communication or suboptimal planning.
- Transport: Unnecessary transport of materials or information between processes, which can be both internal and external.
- Inventory: Excess inventory that incurs costs without adding direct value, with storage consuming unnecessary space.
- Movements: Unnecessary movements of people or equipment that do not add value to the process, often caused by poor preparation or inefficient workspace layout.
- Overprocessing: Performing more work than necessary to achieve the desired result.
- Defects: Errors or flaws that result in rework or rejection, often significantly reduced through automation and process conformity.
How does Value Stream Mapping work?
Value Stream Mapping works by visualizing the process from start to finish, including the flow of materials and information. A carefully assembled team searches for wastes in the process, identifying bottlenecks like wait times or overproduction and developing improvement strategies based on these findings. VSM examines an entire process to make it as efficient as possible.
How do I create a VSM?
Creating a Value Stream Mapping model may sound more challenging than it is. By following these steps, you can complete your VSM model:
Step 1:
Choose a product or a complete product group to include in your VSM model, allowing you to focus on a specific part of your offerings.
Step 2:
Document the current state of the product. This is easiest done through a step-by-step plan, including every step and wait time. The chart should describe all necessary steps to deliver the complete product.
Step 3:
Describe the ideal state for the product, again detailing all steps. Analyse the differences between the current and desired future state to identify bottlenecks and areas needing action.
Step 4:
Set priorities for action points and implement the necessary improvements to achieve the goal. Create a timeline to visualize deadlines, process times, and lead times, making progress easy to monitor.
Example of a VSM model
Imagine a car manufacturing factory seeking to identify wastes to improve efficiency and optimize customer satisfaction. They decide to apply VSM. A Value Stream Mapping example might be:
A team of engineers is assembled to scrutinize the entire process, possibly focusing on the whole car production or just one component. They use an online platform to quickly make deviations from the desired process visible. The team records their findings, identifying where materials are stored, how they are processed, and which machines are used. As they follow the flow of materials and information, they mark where wastes occur: overproduction, waiting times, or unnecessary transport, for example. After thorough analysis, a detailed map is created, showing the current process state and highlighting opportunities for improvement.
Optimize business processes with EZ-GO
The EZ-GO platform offers a digital and clear solution for optimizing business processes and implementing Value Stream Mapping. Through digital workflows and real-time insights, the platform enables companies to analyse processes, identify improvements, and increase efficiency. With features like automated reporting and task management, teams can collaborate to identify and eliminate wastes. We’d love to show you how this works through our EZ-GO demo.