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Editor's Note: Take a look at our featured best practice, Lean - Value Stream Mapping (VSM) (157-slide PowerPoint presentation). Value Stream Mapping (VSM) is a lean management technique used to analyze the flow of materials and information currently required to bring a product or service to a Customer. The goal of value stream mapping is to reduce the end-to-end lead time of a process by highlighting and eliminating [read more]
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There are tons of “value”-driven management frameworks. Value Stream Mapping (VSM) is one of the most well known–but, do you know what exactly this methodology refers to?
VSM is Lean Management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. Like most Lean models, VSM is often associated with manufacturing processes. However, it is used in Logistics, Supply Chain, Service-related industries, Healthcare, Software Development, Product Development, and Administrative and Office processes.
The goal of VSM is to identify, to demonstrate, and to decrease waste in the process. Waste is defined as any activity that does not add value to the final product. The word is often used to demonstrate and decrease the amount of “waste” in a manufacturing system. VSM can thus serve as a starting point to help management, engineers, production associates, schedulers, suppliers, and customers to recognize waste and identify its causes.
Our Value Stream Map is a visual representation of the flow of materials from supplier to customer through your organization as well as the flow of information. This enables us to see at a glance where the delays are in your process, any restraints, and excessive inventory. It is primarily a communication tool, but can also be used as a Strategic Planning and Change Management tool.
We can construct a Value Stream Map following an 8-step process, depicted below. VSM is a team effort. It should involve representatives from all of the areas within the process being mapped. This creation of a Value Stream Map should be facilitated and led by an expert with experience in creating Value Stream Maps.
Step 1. Select your sponsor and set expectations.
Step 2. Select your team.
Step 3. Select process to be mapped.
Step 4. Collect data and produce Current State map.
Step 5. Critique the Current State.
Step 6. Map the Future State.
Step 7. Create an action plan and deploy.
Step 8. Measure the benefits.
Here are couple examples of Value Stream Maps.
Interested in learning more about Value Stream Mapping? Have a look at these very in-depth training decks and templates on Flevy: https://flevy.com/business-toolkit/value-stream-mapping.
For shorter primers on various management topics, including Value Stream Mapping, take a look at the FlevyPro Library of business frameworks: https://flevy.com/pro/library/frameworks.
You can download in-depth presentations on Value Stream Mapping and 100s of management topics from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives.
For even more best practices available on Flevy, have a look at our top 100 lists:
These best practices are of the same as those leveraged by top-tier management consulting firms, like McKinsey, BCG, Bain, and Accenture. Improve the growth and efficiency of your organization by utilizing these best practice frameworks, templates, and tools. Most were developed by seasoned executives and consultants with over 20+ years of experience.
