Value Stream Mapping

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Value Stream Mapping (VSM) is a visual tool for analyzing material and information flow from customer order to delivery.

Illustration explaining Value Stream Mapping

Definition

Value Stream Mapping (VSM) is a lean tool that visualizes the complete flow of materials and information required to bring a product or service from order to delivery. Unlike simple process maps, VSM includes quantitative data: cycle times, changeover times, inventory levels, information flow, and timeline showing both processing time and wait time. VSM reveals where value is added and where waste accumulates, typically showing that actual processing time is a tiny fraction of total lead time. Current state maps reveal improvement opportunities; future state maps guide transformation.

Examples

A current state VSM for a machined part showed 45 minutes of processing time spread across a 6-week lead time. The map revealed inventory accumulation between each process step, batch processing creating delays, and information flow that triggered production weekly rather than daily. These insights guided transformation planning.

Key Points

  • VSM shows both current state (reality) and future state (target)
  • The timeline reveals value-adding versus non-value-adding time
  • Information flow is as important as material flow
  • VSM should be done on paper at the gemba, not in conference rooms with software

Common Misconceptions

VSM is just a fancier process map. VSM includes quantitative data, timeline analysis, and future state design that distinguish it from basic process documentation. The analytical framework differs fundamentally.

VSM is a one-time documentation exercise. VSM should drive action. Current state maps identify opportunities; future state maps guide implementation. VSM without follow-through improvement is wasted effort.