Value Stream Mapping
A Value Stream Map (VSM) visualises the process of delivering value to customers, from start to finish. Originally developed as part of lean management techniques for manufacturing, it can be adapted to other industries.
The VSM highlights each step in the process, along with the handoffs between departments or teams. It can capture material or information flows, providing a clear picture of how work moves through the system.
Common phases considered in Value Stream Mapping include:
Demand: How the need for a product, service, or solution is identified
Design: How solutions are planned to meet the demand
Development: How the solution is created
Operations: How the solution is implemented and maintained
Outcome: How the success of the solution is evaluated
Support: The roles, resources, or activities that do not directly contribute to the product or service moving through the value stream, but assist in value-creation
The results
- A visual overview of the key processes which delivers value to customers
- Identification of improvement areas
When to use it
Improvement Initiatives: When identifying inefficiencies, waste or quality improvement opportunities in current processes
New Product and Service Development: When designing how new products or services will be delivered
Organisation re-designing: When seeking to re-design organisations to be more efficient and effective
Strengths
Visual
Supports identification of bottle-necks and inefficiencies
Facilitates cross-functional discussions
Weaknesses
Can be time-consuming
Can be complex
May be more difficult to apply in some contexts
How to use it?
What do I need to start?
- Insights on the current process
How to use it?
Who to involve?
Value stream mapping is best done with a team. Consider involving:
- People who are responsible for overseeing and managing aspects of the process
- Representatives from different parts of the business
- People who will be responsible for delivering improvements
Step by step
1
Clarify the scope
Define the specific product or service that will be the focus of the VSM. Ensure the scope is clear
Ask questions like:
- What is the primary product or service to be mapped?
- What are the start and end points of this process?
- Who are the customers of this product or service?
2
Form a cross-functional team
Assemble a team with members from different parts of the business involved in the process.
Ask questions like:
- Which departments are involved in this process?
- Who has the expertise to contribute?
- How can we ensure effective communication within the team?
3
Create the current state map
Visualise the current high level process flow.
Collect relevant insights on each step of the current process. This might be the time each step takes, the resources involved, and the outputs.
Ask questions like:
- Are the high level steps accurately represented?
- What are the specific detailed steps in the current process?
- How long does each step take?
- What resources are used in each step?
- How is information flowing between steps?
- What are the pain points?
4
Analyse the current state for inefficiencies
Assess the current state map and insights gathered through the processes.
Identify waste, bottlenecks, and non-value-added activities in the current process.
Ask questions like:
- Where are the delays and bottlenecks in the process?
- Which activities do not add value to the customer?
5
Brainstorm actions
Consider what actions could be taken to address the current inefficiencies.
Ask questions like:
- What quick wins could we implement to make immediate improvements?
- Which steps in the process could be eliminated or streamlined?
- How can we reduce bottlenecks or delays to improve flow?
- What resources (people, technology, tools) are needed to support these changes?
- Are there best practices or examples from other industries that we can apply here?
- How will we measure success once these actions are implemented?
6
Prioritise actions & assign responsibilities
Prioritise actions
Identify the most important actions. Ask questions like:
- Which activities have the most significant impact on customer’s perception of value?
- Where can we achieve the most considerable improvements like cost savings?
Assign ownership
Identify who is responsible for each action. Consider using RASCI to assign responsibilties