Value Stream Mapping

Quick Start

Defining A Value Stream

A series of steps that must be performed in the
proper sequence to create value for a customer
The complete value stream includes information
flow and product or material flow

The value stream includes all steps; value-added

and non value-added

If there is a product, service or process for a customer,

there is a value stream.
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Why Value Stream Map?

Helps you visualize more than just the process level
Allows you to see the sources of waste
Define key leverage points for improvements
Displays linkage between information and material flow
- Admin processes may show linkage between information flow and the
actions that result from the information flow

VSM creates a common understanding of reality and

the improvement possibilities.

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Value Stream Levels

Process Level
Facility Level
(Cell or Department)

Extended Value Stream

Multiple Facilities: (Includes Suppliers & Customers)

Choose the level appropriate for your scope.

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The VSM Process Overview

Current State
Identify key process steps for delivering product/service to customer
Utilize information from go see (Gemba) or interviews
Include key metrics with each step
Include lead time and cycle time data
Identify Undesirable Observations (UDOs)
Determine data gaps that need to be collected
Identify flow of information from end customer to beginning of process
Include systems that provide information
Record the frequency and type of information
If information is your product you can identify origin of information

Determine if the Value Stream steps are VA or NVA

Analyze wastes and determine improvements

Develop action plan to make improvements

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7 Steps to Utilizing a Value Stream Map

1.
2.
3.
4.
5.

Identify scope of the Value Stream Map

Identify VSM team lead and participants
Organize and conduct a tour of area to go see
Map the high level process and gather key data
Identify the value stream (product/process
alignment and the critical path)
6. Create the Current State Value Stream Map
Material Flow
Information Flow
VA/ NVA classification
7. Identify the Waste
Identify areas of opportunities for improvement
Develop an Action Plan to make the improvements
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Step 3: Go See the Product/Service

If the process is visible:
Process map at high level
Walk the process and record individual process steps, UDOs*, cycle
time, distance, # of people, quality, etc.
Ask operators questions
Note metrics, materials, machines, WIP**, finished goods

If the process is not visible:

Create detailed process map

Include UDOs, cycle time, distance, # of people, quality, etc.
Provide process map to all operators
Interview employees involved in process
Analyze portions of process which are visible
Utilize VOC surveys to collect key data points
Validate findings with operators

*UDO (Undesirable Observation) any observation about the process that is not ideal
**WIP (Work In Process inventory) inventory that is contained in the process
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Step 4: Map the High-Level Process

Example: Generating an estimate for a customer

2 days between processes

Gather
Info

Input Boundary

Analyze
Info

Develop
work-up

30 minute cycle time

Input data
into file

Collect
Sub-quotes

On-Line Tool

6 people involved

Prepare
Estimate

Approval
Meeting

WIP
Output Boundary

Having 4 to 10 process steps is common

Review the scope if you have more or less
Consolidate detailed process steps into higher level value stream steps
Determine key data to collect, WIP, Distance, Time, # of people, quality, etc.
Capture any variation within the process

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Step 4: Identify Key Data Elements

Example: Generating an estimate for a customer

Gather
Info
Cycle Time:

Analyze
Info

Who:
Missing data to
be collected
prior to VSM

24 hrs

2 hrs

48 hrs
1

Transport:
WIP:

Input data
into file

4 hrs

Wait Time:
# of People:

Develop
Takeoff

8 hrs

Ops

4
Sales/Ops

Approval
Meeting

8 hrs

2
Phone

Prepare
Estimate
2 hrs

24 hrs

Manual
2

Collect
Sub-quotes

6
E-mail

3
Sales/Ops

E-Mail
3

Sales

Sales

If data not available, use averages based on operators assessment

Check old records, files, reports, etc.
Additional data collection by surveys/interviews
Finalize data during the Identify Materials Flow step
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Step 5: Identify the Value Stream

Determine critical path and area for improvement

Whenever there is a product for a customer, there is a

value stream. The challenge lies in seeing it.
Learning to See by Rother and Shook

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Value Stream Map Operational example

DOWNTIME 15%

REC

STAGE

WIP 870
WIP 696
QTIME

QTIME
72H

MELT
903M

INSP
CHEM

Hold
Furnace

Cast
903

LOT 75K

P/T 8H
WIP 8 COILS
120K

P/T 3 HR
15K
WIP

P/T 6N

DOWNTIME 15.5%
INSP
PROFILE

7%
SCRAP

1.
2.
3.
4.

STORE

WIP
746K
QTIME
8 1OK

STAGE

WIP
108K
8HR
Q/T
8

BREAKDOWN
911

LOT 1 COIL
TIME .1
WIP 15K

Map major process steps

I.D. Value (green/ yellow) / Non-value (red)
Capture all times, quantities
Prioritize areas to improve

LEAD

2231.1

VA

210.1

X SHIPPED PER DAY

850K
1.870 WIP BEING WORKED
4.276 WIP BEING STORED

Step 6: Create the Current State VSM

Map the Material Flow

Map the Information Flow

Classify VA and NVA activities

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VSM Symbols

FIFO
Information

First in
First out control

max 10

People
required
Things pulled
by next process

Electronic
Information

Things pushed
to next process

Waiting

Transport

Pull system
Paper trigger
Pull system
Returnable
container

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Inventory
Pieces

In

InputBasket

Out

OutputBasket

Step 6: Map the Materials Flow

No
Process

No
standard
work

Cycle Time:

Gather
Info

Analyze
Info

Develop
Takeoff

Input data
into file

Collect
Sub-quotes

Prepare
Estimate

Approval
Meeting

4 hrs

8 hrs

24 hrs

2 hrs

4 hrs

2 hrs

2 hrs

Wait Time:
# of People:

Too many
people

8 hrs

48 hrs

Transport:

Manual

8 hrs
1

Manual

WIP:

Who:

Sales

Ops

24 hrs
1

E-mail
4

Sales/Ops

8 hrs
2

Phone
1

Sales/Ops

2
E-mail

Push

Material flows from left to right

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E-Mail
2

Sales/Ops

Sales

Sales

Include all key data for each process step

Include UDOs

Come to agreement on process steps as a team

UDO

8 hrs

Step 6: Map the Information Flow

Sales Funnel
Sales

Database

Customer

Leader
1-5 days
75 Estimates
per month

Sales
Estimator

Representative

2-5 days

Information should flow right to left, always starting with customer

Cycle times can be averages or ranges

The more detail you include, the more waste you will see
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Step 6: Identify VA & NVA

Sales Funnel Database

Sales Leader

Customer

1-5 days

75 Estimates
per month

Sales Representative
Estimator
2-5 days

No
Process

No
standard
work

Gather
Info

Analyze
Info

4 hrs

8 hrs
8 hrs

# of People:

Transport:

Develop
Takeoff
24 hrs
48 hrs

2
Manual

Who:

Sales

Ops

VA/NVA

VA

NVA

Sales/Ops
VA

Prepare
Estimate

Approval
Meeting

4 hrs

2 hrs

2 hrs

24 hrs
1

8 hrs

8 hrs

E-mail
4

Collect
Sub-quotes

2 hrs
8 hrs

Manual

WIP:

Input data
into file

Too many
people

Phone
1

2
E-mail

E-Mail

Sales/Ops
NVA

Sales/Ops

Sales

Sales

NVA

NVA

NVA

Customer cares
Changes form, fit or function
Correct
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Step 7: Use the VSM to Identify Waste

Identify areas of opportunities for improvement

Develop an action plan to make the improvements

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Step 7: Use the VSM to Identify Waste

Sales Funnel Database
Customer

Sales Leader
1-5 days

Sales
Representative

Estimator
2-5 days No

No
Process

standard
work

Gather
Info

Analyze
Info

4 hrs

4
Sales/Ops
VA

2 hrs

2 hrs

2
Phone

1
Sales/Ops
NVA

Cycle times too long

3
Sales/Ops
NVA

8 hrs
2

E-mail

6
E-Mail

2
Sales
NVA

3
Sales
NVA

Time Value Map

Too much queue time between steps

No process standardization

Transportation issues
Too many people involved in Approval
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Approval
Meeting

8 hrs

1
E-mail

Prepare
Estimate

4 hrs

24 hrs

Too
many
people

Collect
Sub-quotes

2 hrs
8 hrs

Manual
2
Ops
NVA

Input data
into file

24 hrs

48 hrs

Manual
2
Sales
VA

Develop
work-up

8 hrs
8 hrs

# of People:
Transport:
WIP:
Who:
VA/NVA

75
Estimates
per month

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43 days

Step 7: Identify Areas of Improvements

Improvements should be made based on waste
analysis identified during VSM activity.
Example: Opportunities identified in the
Generating an Estimate for a Customer VSM :
- Create standard work for operators to follow
- Develop templates to use when Developing Quotes
- Remove NVA steps when possible
- Streamline information flow from Customer to Estimator
- Mitigate interruptions to flow estimate (reduce queue

time)
- Improve policies with Sales to obtain timely quotes
- Reduce the number of people required for the Approval
Meeting

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Step 7: Create An Action Plan

Action plans are critical to successfully implementing
VSM improvements
Determine improvement projects, schedules and
owners
- Immediate improvements (2 - 5 days): Kaizen Events
- Medium term improvements (3-6 months): Lean/ GB projects
- Long term improvements (6+ months): Lean Expert/ BB
projects

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Step 7: Create An Action Plan

Identify the high impact improvements and long
term and short term actions
high

Sweet Spot

High Hard

Just Do It

Dont Do

Impact

low

high

Effort

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Value Stream Mapping

Quick Start