Friday, October 5, 2007

15. Value Stream Mapping

Value stream improvement, sometimes called “flow level kaizen,” is the best tool for identifying and planning opportunities for process kaizen. People often mistake value stream mapping for process mapping. Process mapping simply involves mapping any process. Value stream mapping involves mapping information and product flow for a given value stream. The mapping is done in such a way that allows one to visualize the current state and to plan and implement a future state with measurable goals.

Before value stream mapping was popular in the United States, organizations utilized process kaizen tools while largely ignoring their effect on the entire value stream. This led to successes in individual areas without the ability to demonstrate significant improvement to the value stream as a whole. Value stream mapping allows organizations to target the right areas for process kaizen and to track, measure, and demonstrate the effects that process kaizen improvements will have.

How does it do this? Firstly, current state value stream mapping allows an organization to identify waste and sources of waste. It forces people to ask why things are done a certain way, which uncovers many opportunities for improvement. The current state provides a baseline from which people can work to create a lean future state.

Future state mapping is a process by which organizations identify a lean future condition. This future condition includes things like continuous flow manufacturing wherever possible, supermarkets or FIFO lanes (depending on the degree to which the products are custom) where continuous flow is not possible, and level production. Finally, they identify the types of process improvements that need to be made to achieve the future state. We recommend conducting a brainstorming session to identify such improvements.

After the future state has been created, a critical part of value stream mapping is creating an implementation plan. Based on the future state map, an implementation plan identifies each activity required to achieve the future state, the responsible team/individual, and the due date. Activities on an implementation plan will typically include kaizen events and "Six Sigma" type projects. Targeting such activities improves their bottom-line effectiveness since each activity will be leading to value stream improvement.

Value Stream Mapping is primarily a planning tool. It allows an organization to identify waste and sources of waste for a given value stream, systematically create a lean future state with less waste, and plan the implementation of the future state.

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