Value stream mapping

Value stream maps are specialized forms of flowcharts. Flowcharts show the individual steps in a process, with each step represented by a visual shape on a page. Arrows travel from step to step, showing the order in which the steps occur. In value stream mapping, each step is scored by how it influences consumers' perception of a product's value.

By utilizing value stream mapping, businesses can fine-tune their production methods or creative processes. They can identify which steps are essential to the process and which steps increase or decrease value according to the consumer. In most cases, steps that have a lower score are viewed negatively, and steps with a higher score are viewed positively. Businesses can then maximize both worker efficiency and the perceived value of the product by shifting more focus to those steps that are viewed favorably.

Value stream mapping is used in numerous industries. These include manufacturing, where a value stream map might show the assembly process of a predesigned product. Other industries include software design and other creative pursuits, during which the value stream map might outline the creative or administrative processes used throughout the development of a product.

Background

The origins of value stream mapping coincide with the introduction of flowcharts. The first flowcharts appeared in the book Installing Efficiency Methods, written by Charles E. Knoeppel in 1915. The ideas behind value stream mapping, such as eliminating waste whenever possible, were used by numerous businesses throughout the twentieth century. However, the process came to be associated with Toyota after the car manufacturer pioneered the lean manufacturing movement in the 1950s. The lean manufacturing movement was an approach to assembly and manufacturing that focused on reducing as much waste as possible without impacting productivity.

Lean manufacturing proved to be a great success for Toyota. After seeing how Toyota's products and profit margins improved, other businesses began to institute lean manufacturing processes. Value stream maps, along with other efficiency-based exercises, became more widely used as well. They were also tied into the Six Sigma process, another program designed to reduce waste in business or manufacturing processes. By the 1990s, value stream maps were commonly used throughout the business world.

Overview

Value stream maps are specialized types of flowcharts. Flowcharts are diagrams that show processes, algorithms, or systems. They use specific shapes to visually depict the various steps of their chosen process, algorithm, or system. In most cases, each step is assigned a shape on the flowchart. These shapes are labeled, clearly identifying the step they represent. Arrows then connect the shapes, making the exact sequence of steps clear to the reader.

Value stream mapping uses a flowchart to analyze a process for waste. When building the chart, the writer lists every step in the process of creating a product. This can range from gathering raw materials to delivering the product to the consumer. Each step is then evaluated based on its value to the consumer. If a step makes the consumer feel that the final product is more valuable, it is given a higher score. If not, the step is given a lower score. Steps with a lower score are evaluated and may be cut from the process to improve efficiency.

When dealing with complicated processes, such as manufacturing diagrams and business models, value stream maps can become very large. For this reason, some value stream maps take weeks or months to draft properly. They may also take time to interpret correctly. Because steps are evaluated solely by their perceived value to the average consumer, some critical steps may be given a low score if they are not analyzed appropriately.

Value stream maps differ from other efficiency-based flowcharts because they focus on value to the consumer. Most businesses strive to maximize consumer value while minimizing waste in the process. This attracts the highest number of customers to a business and maximizes profit margins.

When carried out effectively, value stream mapping allows businesses to see exactly what parts of their production process are important to them and what parts are important to consumers. Executives can then emphasize these features by improving upon them to bring greater value to consumers or through additional advertisements that highlight their product's strengths.

Value stream mapping also allows business owners to see where their perspectives and consumers' perspectives diverge. For example, the various parts of the manufacturing process may do little to improve consumers' perception of value if they only care about the final product. To remedy this, business owners could advertise the positives of their manufacturing process, showing the consumer what additional value the manufacturing process provides to them. Alternatively, they could reduce the resources devoted to the manufacturing process, freeing up more funds to allocate to a step of the production process that increases consumers' perceived value. Finally, value stream mapping allows business owners to examine their own process critically. If a step in the chart does not score highly and is not essential to the final product, the business owner may elect to remove that step entirely.

Many organizations have shifted towards a focus of continuous improvement where value stream maps are regularly reviewed, updated, and refined to respond to changing conditions, market demands, and technological advancements. Value stream mapping can be used as part of an ongoing iterative process to support continuous improvement goals instead of a one-time event.

Value stream maps are used in numerous modern industries in the twenty-first century. In the software engineering industry, they can be used to track software creation from concept to finished product. In this circumstance, accurate value stream mapping allows experienced project managers to reduce downtime and streamline their workers' creative processes. In health care, value stream maps can be used to track the patient treatment process from admission, through treatment, to final discharge. In an office environment, value stream mapping can be used to cut waste and improve both employee and client satisfaction. In a supply chain business, it can be used to cut out wasteful steps that may be irrelevant to the consumer, reducing expenses and increasing profit margins.

Bibliography

"A History of Lean Manufacturing." Strategos Inc., Feb. 2016, www.strategosinc.com/just‗in‗time.htm. Accessed 20 Dec. 2017.

Irani, Shahrukh A., and Jin Zhou. "Value Stream Mapping of a Complete Product." Lean Manufacturing Japan, 4 Apr. 2009, www.lean-manufacturing-japan.com/white‗paper/value‗stream‗mapping‗of‗a‗comp.html. Accessed 8 Jan. 2025.

May, Emily. “Value Stream Mapping vs. Process Mapping: Definitions, Features, & Benefits.” ICAgile, 29 Feb. 2024, www.icagile.com/resources/value-stream-mapping-vs-process-mapping-definitions-features-benefits. Accessed 8 Jan. 2025.

Rahani, A.R., and Muhammad al-Ashraf. "Production Flow Analysis through Value Stream Mapping: A Lean Manufacturing Process Case Study." Procedia Engineering, vol. 41, 2012, pp. 1727–34.

Rocha, Luís. “Understanding Lean Manufacturing: A Kaizen Guide.” Kaizen.com, 27 Feb. 2024, kaizen.com/insights/understanding-lean-manufacturing-guide/. Accessed 8 Jan. 2025.

Terry, Jon. "What Is Value Stream Mapping?" Leankit, leankit.com/learn/kanban/what-is-value-stream-mapping/. Accessed 8 Jan. 2025.

"Value Stream Mapping." Six Sigma, 10 Jul. 2023, www.isixsigma.com/dictionary/value-stream-mapping/. Accessed 8 Jan. 2025.

"What Is a Flowchart," LucidChart, www.lucidchart.com/pages/what-is-a-flowchart-tutorial. Accessed 8 Jan. 2025.

"What Is Value Stream Mapping?" LucidChart, www.lucidchart.com/pages/value-stream-mapping. Accessed 8 Jan. 2025.