A Quick Guide to Value Stream Mapping

Since becoming a Lean Six Sigma Greenbelt almost 1 year ago (time flies!) I have utilised the Lean Six Sigma (L6S) toolkit in various change initiatives with great success.

The DMAIC framework, core to the L6S methodology, provides a flexible structure around any process improvement project enabling the problem to be defined, measured, analysed, improved and controlled in that order.

DMAIC is a preferred approach for delivering change and the one tool that I have found particularly valuable is Value Stream Mapping. Pun completely intended.

Why?

Value Stream Mapping (VSM) comes from the Lean part of the framework, and is a way of thinking. Although most project teams I have worked with are not necessarily acquainted with the term, the concept is one all too familiar. Visualising the process as a stream of dependent and interrelated activities in a sequence, enables an overview of how the process is performing.

When people first look at a Value Stream often their response is one of curiosity.. Once you discover the tangible benefits offered by this tool, answering the question Why? is made a lot easier;

• Enables accurate measurement of the process, as it currently is, a snapshot, enabling a baseline against which process improvements can be measured.
• Increase the visibility of current performance and bottlenecks highlighting both the valuable and wasteful activities in the process – particularly powerful in end-to-end process improvement initiatives
• Removes subjectivity thanks to the use of data to capture performance at each step and performance of the process as a whole.
• Supports interpretation of the data by presenting the data in a visual format – a useful way of communicating key findings to the project team &/or wider business.

What is a Value Stream?

Value Stream Mapping is a visual tool that involves mapping out the high-level process, identifying waste, measuring the lead and process times at each stage and making recommendations based on some simple calculations.

The mention of maths may be temporarily off-putting for a lot of people (it was to me at first) but these statistics are meaningful – they assist with;

• Measurement of the performance of the current process, especially;
  • Volume of inputs, outputs & work in progress (WIP) for each step
  • Time it takes to process a single unit
  • Lead times or
  • Non-value add activities
• Highlighting any bottlenecks in the current process
• Providing valuable insight into the true capability of your process

When to Value Stream?

Thanks to its versatility a Value Stream Map can be utilised at each DMAIC phase. Here’s how I typically apply VSM in process improvement projects:

Define – To provide a high-level understanding of the process and can be used to outline what is & isn’t in scope (used after a SIPOC).

Measure – To assess current performance and capability of process, identify waste as well as helping to baseline current performance

Analyse – To enable effective root cause analysis and to “drill down” on any bottlenecks, lengthy lead times, extensive process times etc.

Improve – To prioritise change initiatives and to ensure the right things being fixed.

Control – To measure the impact of changes made to the process usually reflected in daily, weekly, monthly dashboard reporting using the Value Stream as the reporting wireframe.

As this demonstrates VSM can be used at each of the DMAIC phases; at the very start of a project to effectively capture a process and in the Control phase where the benefits (or disbenefits) of any changes made to the process can be measured.

VSM should not be considered as a one off practice. It should form part of your day to day continuous improvement efforts and also acts a powerful tool for convincing others that we are on or in fact off track.

How to Value Stream?

In this quick guide to value stream mapping I won’t go into detail as to how to complete a Value Stream. However, I will outline some essential rules that should be followed:

• Never Value Stream alone
• Process needs to be high-level (5 – 7 steps max)
• Use 1 (large) piece of paper
• Use post it notes (easier to make changes)
• Use standard symbols & templates if possible
• Use the most complete data you have

An example of a very basic Value Stream Map is included below. In this example the high-level process for placing an order online through to delivery is used:

To Conclude…

A key benefit of this tool is that it is possible to very quickly get visibility of how the process is performing, presenting the user with the immediate areas of focus.

Value Stream Mapping can be used at the very start of a project to effectively capture a process, but should not be considered as a one off practice. It is part of day to day continuous improvement and also a powerful tool for convincing others that we are on or off track.

Ultimately, the visual end product is easy to understand and interpret, meaning almost anyone can glance at the value map and almost instantly focus on areas of concern and/or where the process could be improved… a powerful tool for anyone who manages operational processes.

Value Stream Mapping is one of my favourite tools to use in process improvement initiatives, what's yours?