Value Stream

Mapping
Value stream mapping is an analytical tool
meant to drive process improvement.
 The Fundamentals of Value Stream Mapping

A value stream map, also known as VSM, is a detailed flowchart made for visualizing a single
process. By route of visualization, the users have a chance to single out a process and analyze it
for potential improvement opportunities. The goal is to pinpoint areas that could be optimized into
something faster and less wasteful, therefore creating a more valuable product for the customer.

One of the main concerns this strategy takes on is being able to address both value and non-
value-added activities. Waste is directly linked to non-value-added activities because, by
definition, customers are not willing to pay for those steps or services. Overall, the ability to
streamline a process and make it only contain valuable actions should be the goal of every
process. However, value stream mapping isn’t just about throwing a sketch of a flowchart onto
a piece of paper and calling it done. The strategy requires intense team collaboration, data
gathering, and critical decision-making skills.

This guide will be covering all the essentials you need to know to be able to implement a value
stream map with the right intentions, as well as be successful in your improvement efforts.

Sample Value Stream Map

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 Using VSM Symbols

One of the most important steps for creating a value stream map is knowing how to use the
various symbols the map employs in its unique visual landscape of information. There are four
different categories listed below of symbols that are used regularly.

Process Symbols Material Symbols

Supplier/Customer Inventory
raw material coming from the supplier or put between two processes where an
delivered to the customer inventory item is either made or ordered.
Make sure to include the inventory count.

Dedicated Process Flow Shipment

single process in which there is continuous notates when product is being shipped
internal material flow. to customers or if supply is coming from
suppliers.

Shared Process Push Arrow

single process that is shared shows material being pushed from one
among other departments. stage to the next within a process.

Data Box Material Pull

shows the need for data marks the physical removal
to analyze the current system. of product as it is purchased.

Work Cell
shows multiple smaller steps
to finish within one work cell.

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 Information Symbols General Symbols

Production Control Batched Kanban Kaizen Burst

notates the use of a centralized is used for multiple Kanban notates issues within a process that are
control department that may also cards arriving at once. essential to remedy for the success of the
take care of scheduling. created value stream map.

Manual Info Kanban Post Operator

notates the need for information notates where all Kanban materials represents the employee(s)
flow from conversation, memos, are for operators to utilize. in charge of a step.
or reports.

Electronic Info Load leveling Timeline

notates the flow of digitized used to make sure the number of shows the time spent waiting
information. Kanban cards coming is consistent and processing times.
and varied.

Production Kanban Sequence Pull Ball Idea

for supplying parts to a is used to directly instruct a proposed improvements
process downstream, process to create specific items for and solutions.
an order.

Withdrawal Kanban MRP/ERP Quality Problem

is used to alert operators that notates the use of centralized used to mark a problem within
material is needed for planning systems. the process.
a process.

Signal Kanban Go and See

is for reordering material once it used to indicate the necessity for
reaches the minimum. in person observation such as
checking inventory.

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 As you can see, there are a lot of symbols that can be used in VSM. Every one of these symbols
is important for the success of a value stream map. The trouble is trying to find the sweet spot
when it comes to either too much information or not enough. To find it, explore your options, or
perhaps get other people’s input on the finished VSM. Revisions are not uncommon for these
flowcharts because remember, improvement is the whole goal and that doesn’t leave out the
improvement tool itself.

VSM Calculations

The other important aspect of value stream mapping is gathering the necessary data and
calculating the time it takes to complete each step. It’s best to directly observe and gather the
necessary data for a complete VSM so the data is current.

Value stream mapping calculations can then be done with any gathered data. Those include:

• Customer Demand which is based off how many units a customer needs in a
certain period.

• Total Production Time Available which accounts for the ideal time it takes for an item to be
completed to meet customer deadlines. That calculation is:

((Hours per shift – (Break minutes per shift/60)) x (shifts per day) = Total Production Time Available

• Takt Time is measured by taking the calculated Total Production Time Available and
dividing that by the customer demand. This calculation is essential for building a productive
and efficient schedule.

Next is knowing the cycle time. This is calculated by summing the individual process steps it
takes to finish an entire product or larger step. There are two different cycle times that should
be a part of the value stream process.

Those are the potential cycle time which is the time between completion of one part to the
next, all with no interruption in gathering data. This is done usually with a stopwatch and 30
sequential repetitions of the step.

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 The other is what’s called the actual cycle time. This considers how many good parts were
completed, which includes the losses from defective parts. This is done by taking data from the
past two days and dividing the number of good parts by the time it took to make everything.

Lastly, once all the data collection and other calculations are complete, the user can determine
the total value-added time which is the total time spent that produces good product and
determine the non-value-added time which is the time spent waiting.

These calculations give the user the ability to see where improvements can be made within the
entire process taking place, an important part of the visualization process.

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 Performing a Value Stream Analysis

Before getting started with creating a value stream map, it’s important to narrow down the
scope of the proposed analysis effort. Pick only one process to analyze thoroughly! Not only
will this increase the rate of success regarding improvement but picking only one process will
also make the task simpler and less confusing for those involved.

There are eight steps involved in performing a successful value stream map analysis:

1. Identify Value – Value is defined as something that someone is willing to spend money on.
Before getting into making a VSM, ask yourself, what is it that customers and clients value about
this product or service? This can end up being a long list involving the product’s features, how
quickly it can be made and delivered, longevity, or even how much it costs to function.

2. Determine the Problem – In general, the problem is a loss in value because of how a certain
process is done. value stream mapping is always about the customer. If something is taking too
long the customer may go looking somewhere else for a similar product, or perhaps there’s an
issue with quality control and it’s leading to more defective product.

3. Define the Process Steps – There is a happy medium between too much information and not
enough. Keep this in mind while observing the work taking place. Document each significant
step such as where a product moves to and when rather than labeling when screws get placed
on the material. There is a time and place for that, and it is not in a value stream map.

4. Gather Critical Data – This step can either be done with past documentation or by going out to
gather fresh data yourself. The latter is often the best option even though it takes more time. This
is because out-of-date data can skew the results of your VSM efforts.

5. Create a Timeline – Not only are the steps within a creation process important, but the time it
takes to complete each step is critical. This is often where improvements are found. Reducing
the time to complete a certain step increases value for the customer because the final product
can be delivered that much faster.

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 6. Identify Any Waste – Now that all the steps in the value stream map have been detailed,
identifying any waste or areas where improvements can be made comes next.

7. Reflect – Upon completion of the VSM make sure to give yourself and other employees time to
reflect on what is there.

8. Create a Future State VSM – Take the identified areas of improvement after performing a
VSM analysis and place those onto a new future state map. This will serve as the goal for all
improvements needing to be made.

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 Tips for a Successful VSM Strategy

Now that we’ve discussed the basic steps it takes to create and evaluate a Value Stream
Map, there are some important tips to know that will further your success when it comes to
improving the workplace.

The first of those tips being getting those involved in company leadership on board with the
idea of value stream mapping. Everyone should have the goal of improving the workplace for
not only customer satisfaction, but also for employee retention. With that being said, it’s not
a problem of getting people involved, but rather getting people on the same page about what
exactly needs to be improved.

The next best practice recommendation we have involves taking on just one process.
Oftentimes taking on more than one process involves making such a complicated VSM that
it becomes useless. A good rule of thumb here is to use between four and fifteen process
symbols/process boxes per VSM. Once you reach over 30, the entire improvement effort
becomes a waste of time.

Another important bit of information that helps the value streaming process easier is the use
of an ideal state map. Unlike a future state map specifically designed to be a “road map” for
achieving necessary improvements, the ideal state map is for creating the absolute best-case
scenario of a process. Ideal state maps are often made before the value stream map whereas a
future state map is often created after the value stream map.

The last tip we have is to go observe the process that is currently taking place. Choosing to
draw up a Value Stream Map means utilizing Gemba as a tool for data gathering and setting
aside time for process observation. This helps ensure what is going into the future VSM is
something that is achievable in terms of improvement.

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 Where Can Value Stream Mapping be Used?

As mentioned before in this guide, value stream mapping is incredibly useful for visualizing the
complete sequence of steps required to deliver a product or service to the company’s clientele.
It doesn’t just include manufacturing though! Value stream mapping is regularly used in other
business models such as the examples below:

Manufacturing centered around value stream mapping directly works to improve efficiency
and increase the company’s output of product in relation to demand. They do this by
mapping everything out from the very beginning with their trusted suppliers, all the way to
their customer base. VSM also helps to identify bottlenecks and other areas of improvement
in the manufacturing process.

Supply Chain Management is incredibly inefficient without value stream mapping. VSM
within supply chain management allows for finding wasteful practices and preventing costly
delays throughout the entire process.

Software Engineering and Development can use value stream mapping to benefit from
reducing the time between process steps as well as eliminating or minimizing the need to
rework what had already been completed.

Service Industries often use value stream mapping to serve external customers by
improving the value of an existing product as well as finding hidden waste.

Healthcare is a surprising user of value stream mapping. Utilizing VSM within a healthcare
setting can bring administrator attention to bottlenecks causing exorbitant wait times and
other hospital related time constraints.

Administrative Departments are primarily concerned with internal affairs. By implementing

value stream mapping into this area of work, the administrative team can discover new ways
on how to best take care of their workers.

Finance centered value stream mapping is primarily for pinpointing the costs of each
process and whether or not those costs are unnecessary. It’s well known that large financial
firms use this strategy to match high-cost, repetitive tasks with automation.

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As can be seen here, value stream mapping is an incredibly versatile Lean manufacturing strategy.
The resourcefulness aspect is excellent for adaption to other departments within a business.

The Eight Benefits of Using a Value Stream Map

If you’ve decided to implement a value stream mapping strategy to your workplace, it’s
important to know why the method can be beneficial to the users. We’ve already touched on
the basics of VSM, now is the time to talk about how it will affect the working community and
industry practices.

1. First on the list is waste identification. By visually articulating the process from the
supplier to the customer, the user can accurately pinpoint where non-value adding
steps are occurring.

2. VSM is easy to learn, and it revamps the company’s focus on what is valued and
what does not have value for the customer.

3. Increasing efficiency is another excellent attribute that VSM holds. By using this
strategy, a company can gather data in the form of takt time, lead time, and cycle
time. All of which can be used to pinpoint where time is becoming an issue of waste.
That wasted time can take the form of bottlenecks or even machine breakdowns.

4. Improvement to cross-functional collaboration is an important aspect to overall

company efficiency and movement towards teamwork for completing shared goals. If
upper management, operations, shipping, suppliers, etc. work together, then there will
be a better understanding from department to department on what everyone does.

5. Improved product quality is next. Remember, it’s all about the customer! Make
the effort to go down and see what is going on during a process to gather data.
Improvements regarding time directly translate into not only better products, but
products that take less time to make and get to the customer.
 6. Use the completed VSM to compare and aid in transition with new VSMs. Use the
data found in the first VSM to help with others down the road. While not all the
necessary data will be there, at least there will be some sort of foothold for future
improvement efforts.

7. Value stream mapping is easily critiqued by the workforce. The fact that VSMs are
inherently easy to read makes accessibility to employees much more feasible. They
will have enough knowledge to potentially give corrections to the existing VSM for
more accuracy.

8. VSMs can be multiuse. Value stream maps work excellently alongside Kaizen, JIT,
and 5S since they all share the same goal of waste elimination.

Identifying and Reducing Waste with Value Stream Mapping

Waste reduction is essential for value stream mapping, as that is where the non-value-added
time lies. There are several Lean strategies at the disposal of employees and management to
help find wasteful practices within an industry.

The Japanese word Kaizen directly translates to

“continuous improvement,” or “change for the better.”
Improvement in Kaizen terms is a methodical practice that
involves five basic tenants: teamwork, personal discipline,
improved moral, quality, and suggestions for improvement.
By following these the company can eliminate waste,
produce a standardized process, and build good
housekeeping skills. Kaizen fits in extremely well with value
stream mapping because it addresses any process issues
after the VSM has been completed. Check out Creative
Safety Supply’s free guide on Kaizen.

Free Kaizen Guide

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Kanban can be implemented virtually or physically with a
Kanban board, bins, etc. The main idea behind this strategy
is to visualize the workflow in a way that allows the user to
limit the WIP items for managing the workflow in a way that
benefits the suppliers, manufacturers, and the customers.
Kanban is perfect to use alongside value stream maps as
they are both visually centered strategies that complement
each other’s waste elimination abilities. VSM for finding
the waste, and Kanban for managing the waste. Check out
Creative Safety Supply’s free guide about Kanban.

Free Kanban Guide

Gemba is the last strategy and one of the most important

to use during the VSM creation process. Meaning “the real
place” or referring to the location where value is created,
Gemba is an important step in understanding what exactly
goes on during a specific process. Managers, employees, or
other leadership members must go down to the production
floor and observe a process. This is the time where they can
ask operators clarifying questions and even collect data for
a value stream map. Without Gemba, the rate of success
regarding improvements will most likely decrease because
of the lack of knowledge about the chosen process. For that
reason, it’s important to participate in this activity! Check
out Creative Safety Supply’s free guide on Gemba. Free Gemba Guide
 Tools for Success

There are a handful of tools Creative Safety Supply offers that may help your facility along
during a value stream mapping event. The first of those tools being whiteboards! Our dry-erase
whiteboards are resistant to ghosting, include the mounting hardware, are magnetic, and can be
outfitted with any vinyl-printed decal that we make. The best part is that these whiteboards can
be used for anything you can think of; value stream mapping is an excellent candidate. Facilities
can also use them for activities such as Kanban and Kaizen to support VSM improvements.

Shop 5S and Lean Whiteboards

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 Signs and floor tape are also excellent choices when it comes to VSM. However, these are
mostly centered around the standardization and overall improvements waiting to be made
within the facility. For example, floor tape can be used for marking where objects belong on
the shop floor and even reminding workers of forklift pathways. Signs can be used to remind
workers of specific procedural requirements or to remember to wear PPE in the area. Use these
tools to further improve your workplace after a value stream map analysis to get rid of waste,
and therefore help keep your workers productive and safe.

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 Labels can be used for danger or warning reminders, pipe markings for maximum
communication, for inventory management practices, and more. These visual reminders work
well regarding the effort needed in standardization within a facility, especially after value stream
mapping analyzation. LabelTac® Industrial Label Printers are an excellent choice for outfitting
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 Summary and Final Tips

Overall, value stream mapping uses a variety of flowchart symbols and data calculations that
allow the user to gather a visual understanding of how a single process works. By focusing
on waste identification and elimination, the company can make informed decisions on
improvement opportunities that directly enhance the value of the product while simultaneously
reducing the amount of non-value-adding activities from the process.

With that, we encourage you to explore this option for your facility if it is right for you! Take
these tips and apply them to your VSM method:

• Only map one process at a time. This will be the most efficient in terms of productivity and
waste elimination.

• Involve your coworkers. Getting a second opinion can reveal mistakes and open new
opportunities for workplace improvement.

• Employ other Lean methods to help you with your newly found VSM improvement
opportunities.

• Explore visual reminder tools to incorporate a more standardized environment for

employees. This helps strengthen the changes made after a VSM analysis and ensures
that those changes stick around long into the future.

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