Originally introduced by Toyota, Value Stream Mapping (VSM) is the process of analyzing the flow of resources needed in order to ultimately deliver a good or service to a customer. Those resources can include raw materials, information, and even conceptual ideas. The overall goal of applying this system as an analytical tool is to identify and eliminate waste in organizational processes. In doing so, businesses can streamline their production and design flows which ultimately leads to lower costs, increased efficiency, and an improved customer experience.
In this article, we ll take a brief tour of Value Stream Mapping. I ll explain how the discipline is implemented and describe the ways in which it is similar to and differs from a Six Sigma initiative.
The Broad Purpose
Before we explore the basic steps of implementing VSM, it s important to understand its broad purpose. Every business process that results in a deliverable requires materials and information. For example, the production of a car involves metal, plastic, glass, and other parts. It also involves information, research, and other data used throughout the platform.
The goal of Value Stream Mapping is twofold: first, to identify areas of a business s production or design flow in which waste exists and second, to eliminate or, at least reduce that waste. Those flows might include the production of a single product, a group of products, or the delivery of any type of service. In effect, the analysis can be applied to any system that contributes to the production of an organization s products or services.
Basic Steps Of Implementation
At its simplest, there are 5 steps to implementing Value Stream Mapping. The first step is to isolate the process that will be analyzed. As noted, this can include the production or deliver of any product or service. The second step is to create a system map which illustrates every element that contributes to the production or design flow. It should quantify the levels of materials, information, research, time requirements, communication needs, and any other input.
Next, the project team should review the process inputs in order to identify areas of waste. For example, if the current production flow requires fewer raw materials than are currently used in order to produce a given deliverable, the excess quantity must be identified. The fourth step requires the project team to design a new production flow that eliminates the waste. A byproduct of this step is the construction of a new system map. The final step in Value Stream Mapping is to implement the new map.
Value Stream Mapping Vs. Six Sigma
The purpose of Value Stream Mapping is similar to that of a Six Sigma initiative. Both are implemented with the goal of improving efficiency and reducing or eliminating waste. But, the manner in which they re implemented varies in a number of ways.
First, a system map provides a broader overview than a Six Sigma process map. Second, a Six Sigma project is normally focused on a singular process. It can and should be expanded to include all systems within an organization, but at its core, it still deals with individual processes. Third, a VSM initiative is often used with the ancillary goal of planning future projects. The results of the initiative specifically, identifying wasted resources can lead to the reallocation of those resources.
Value Stream Mapping has its origins in Lean Manufacturing. While that suggests the analytical tool is best applied in manufacturing environments (for example, production assembly lines), it can be used in any environment which supports the flow of materials and information. And though VSM takes a different approach than Six Sigma in order to identify and eliminate waste, both can be used to reduce costs and improve organizational efficiency.
Author Resource:-
This information on six sigma and lean processes is provided by BMGI, a leading education and consulting firm in the lean six sigma field, check them out online at http://www.bmgi.com
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